2 days ago
Massachusetts to cut sales tax from items up to $2,500 during tax-free holiday
CHICOPEE, Mass. (WWLP) – Mark your calendars because August 9th and 10th is when the sales tax will be cut from items under $2,500 in Massachusetts.
The tax-free holiday is a time for small business to boost their sales and bring in new customers looking to save money. The increase in sales during the tax-free weekend last year generated $3.54 million in indirect tax revenues due to increased economic activity, according to the Department of Revenue.
During this weekend, most retail items of up to $2,500 purchased for personal use will be exempt from a 6.25 percent sales tax. This is a great opportunity for consumers to purchase items as prices on store shelves spike, driven in part by federally imposed tariffs.
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Meals
Motor vehicles
Motorboats
Telecommunications services
Gas
Steam
Electricity
Tobacco products
Marijuana or marijuana products
Alcoholic beverages
Any single item whose price is more than $2,500
An item of clothing is exempt from the sales tax unless the piece of clothing costs more than $175. For items that cost more than $175, the amount over $175 is only subject to tax.
Any item will qualify for the tax exemption if you order and pay for an eligible item over the Internet during the tax-free weekend and during Eastern Daylight Time. No sales tax is due on that purchase, even if the delivery occurs after the sales tax holiday weekend. Layaway sales do not qualify during the tax-free weekend.
In Massachusetts, all retailers must take part in the sales tax holiday. If you are taxed in error during the weekend, the business is responsible for giving you a refund of the tax you paid.
The Massachusetts law was put into place in 2018, which was sponsored by Senator Adam Gómez (D-Springfield) and Representative Carole A. Fiola (D-Fall River).
'Lowering costs for Massachusetts residents and supporting local businesses is critical for our communities in this time of economic uncertainty,' said Senate President Karen E. Spilka (D-Ashland). 'I'd like to thank Senator Gómez, my colleagues in the Senate and our partners in the House for their work to set this year's sales tax holiday.'
'This year's temporary suspension of the sales tax will bring consumers needed economic relief while boosting revenue for small businesses and retailers,' said House Speaker Ronald J. Mariano (D-Quincy). 'I want to thank Chair Fiola and my colleagues in the House, along with our partners in the Senate, for their annual support for this economic development initiative.'
'The sales tax holiday is a wonderful opportunity for our residents to get out into their communities, support local businesses, get their kids ready for school in fall or make a purchase that they've been putting off,' said Senator Gómez, Senate Chair of the Joint Committee on Community Development and Small Businesses. 'I am glad that our leaders here in the Legislature have been able to work and get this done again for our residents this year, and I look forward to hearing how residents are able to make the most of the tax reprieve.'
'I was proud to sponsor the legislation establishing this year's sales tax holiday that helps boost our economy and provides support and relief for our residents and small businesses,' said Representative Fiola, House Chair of the Joint Committee on Economic Development and Emerging Technologies. 'This is an important weekend that helps bolster our economy and I applaud my colleagues in passing this legislation to provide individuals, families and businesses across the Commonwealth with some relief.'
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