You Don't Qualify for Tax Free Weekend!!!
So Tax Free Weekend in Massachusetts is Saturday August 11, and Sunday August 12. We all rush and buy things we have held off buying all year. That extra 6.25% of savings seems so worth it.
Suprisingly though, I happened to look at the tax code to find out what is not eligible for the tax saving, and was very surprised. I am a business owner, and my husband operates a small business out of of home. It's usually a good time to purchase printers, computers and other electronics, right? Wrong!!! Purchases by a business are exempt. Purchases for business use at home are also exempt! In fact see below for more exemptions.
A recently enacted statute provides for a Massachusetts "sales tax holiday weekend," i.e., two consecutive days during which most purchases made by individuals for personal use will not be subject to Massachusetts sales or use taxes. St. 2011, c. 86 ("the Act"). The Act provides that the sales tax holiday will occur on August 13 and 14, 2011 and on those days, non-business sales at retail of single items of tangible personal property costing $2,500 or less are exempt from sales and use taxes, subject to certain exclusions. The following do not qualify for the sales tax holiday exemption and remain subject to tax: all motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products and any single item whose price is in excess of $2,500. The Act charges the Commissioner of Revenue with issuing instructions or forms and rules and regulations necessary to carry out the purposes of the Act.
II. Purchases Qualifying for the Exemption
The exemption applies to sales of tangible personal property bought for personal use only. Purchases by corporations or other businesses and purchases by individuals for business use remain taxable. Purchases exempt from the sales tax under G.L. c. 64H are also exempt from use tax under G.L. c. 64I. Therefore, eligible items of tangible personal property purchased on the Massachusetts sales tax holiday from out-of-state retailers for use in Massachusetts are exempt from the Massachusetts use tax.
III. Specific Rules
The following rules are to be applied by retailers in administering the Massachusetts sales tax holiday exemption:
A. Non-Exempt Sales. All sales of motor vehicles,  motorboats,  meals,  telecommunications services,  gas,  steam, electricity, tobacco products  and of any single item whose price is in excess of $2,500, do not qualify for the sales tax holiday exemption and remain subject to tax.
B. Threshold. When the sales price of any single item is greater than $2,500, sales or use tax is due on the entire price charged for the item. The sales price is not reduced by the threshold amount. For example, if an item is sold for $3,000, the entire sales price of the item is taxable, not just the amount that exceeds $2,500.
Pam Crawford, ABR,e-PRO®,CRS,CDPE,LMC
Owner, REALTOR®, Managing Partner, MBA, BSBA
RE/MAX Professional Associates
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