The Commonwealth of Massachusetts starts their first tax holiday in two years on August 14, 2010. Although most states intend the tax free holiday to help parents get a discount on school clothes, the Massachusetts tax free days restrictions are less specific and include items that are certainly not school supplies, such as wine.
When Governor Deval Patrick signed the bill governing the 2010 Massachusetts tax free weekend rules he said, "I am particularly pleased that the bill includes a sales tax holiday, as it will give individuals, families and businesses the immediate economic boost we so critically need."
What are the 2010 Massachusetts Tax Free Weekend Rules?
On August 14 and 15, 2010, there will be no tax charged to individuals who are buying personal property that costs less than $2500 per item. Businesses will have to pay tax on purchases, and people who are buying items for business purposes are supposed to pay tax on those purchases.
The tax rules are tricky for people who are buying items that cost more than $2500. According to "TIR 10-10: The 2010 Massachusetts Sales Tax Holiday Weekend," if something costs more than $2500, the entire amount is taxed. This means that if someone buys a $2500 watch, there will be no tax in Massachusetts during the sales holiday. If someone buys a $3500 watch on the same 2010 tax weekend, the entire amount will be taxed.
The only exemption to the rule about Massachusetts sales over $2500 is applied to clothing. If someone buys a single article of clothing that costs more than $2500, the first $175 will be tax free in 2010. The threshold is per item, not per bill. The entire sales bill can be more than $2500 and be tax free, as long as no single item is over $2500.
What Items are Included in the 2010 Massachusetts Sales Tax Holiday?
There are very few restrictions placed on people buying personal property during the Massachusetts sales tax holiday in 2010. It is easier to list what is taxed, rather than what is exempt. According to the Massachusetts Department of Revenue, the following items will be taxed on the no tax day:
- boats
- cars
- electricity
- gas
- meals
- steam
Or course, anything that goes over $2500 is subject to tax. There are complicated rules for items that are bundled, on sale, or on layaway. If something is sold as a set, like shoes, they can not be separated to get the discount. If something is bundled, like a bracelet and a ring that could be sold separately but are sold together for a discount, the item valued at under $2500 is not taxed. If something is normally over $2500 but the store offers a discount or the customer uses a discount, it is not taxed.
Items that were put on layaway before August 14, 2010 will be charged sales tax, even if the bulk of the payment takes place on August 14 or 15, 2010. Items that have to be special ordered during the sales tax holiday will not be taxed, so it is safe to order items that need to be customized or delivered. If someone has a rain check for an item and buys it during the 2010 sales tax weekend, there will not be tax even if the rain check was issued before the sales tax holiday.
All stores must participate in the Massachusetts sales tax holiday, and online stores with a physical presence in Massachusetts will not charge sales tax on internet purchases during the 2010 tax weekend. As long as the item is under $2500, being purchased by an individual as personal property, and isn't one of the few restricted items, a customer in Massachusetts can save a lot of money shopping August 14 and 15, 2010.
For more information about 2010 Sales Tax Weekend, read Tax Free Weekend 2010: Go School Shopping During the Tax Holiday and Tax Free Weekend 2010: States Start School Shopping Tax Holiday. Maryland is also having a Shop Maryland tax holiday.
Sources
- " TIR 10-10: The 2010 Massachusetts Sales Tax Holiday Weekend " was issued by Massachusetts Department of Revenue on August 5, 2010.
- Governor Patrick's quotation comes from " Governor Patrick Signs Economic Development Bill Into Law." This August 5, 2010 press release was issued by The Official Website of the Governor of Massachusetts.
Alex Sharp - Alex Sharp is a teacher who has been keeping Suite101 readers up to date with the latest in audio- and e-book gadgetry since 2008.
