Massachusetts is gearing up for their annual sales tax holiday, set to take place on Saturday, August 10, and Sunday, August 11, 2024. During these two days, most retail items priced at $2,500 or less will be exempt from the state’s sales tax, offering shoppers a chance to save on back-to-school shopping and other purchases.
Who Qualifies?
The sales tax holiday applies to anyone purchasing eligible retail items for personal use. However, purchases made by corporations or for business use are not eligible for the exemption.
What’s Exempt and What’s Not?
Items such as meals, motor vehicles, motorboats, telecommunications services, and alcoholic beverages remain taxable and do not qualify for the exemption. Additionally, any single item priced over $2,500 is not eligible.
Internet Sales and Layaway
Online purchases made on the designated days, regardless of delivery timing, qualify for the exemption as long as they are paid for during the holiday weekend. Layaway sales, however, do not qualify for the exemption.
Rentals and Clothing Exemptions
Rentals of eligible items up to 30 days are included in the exemption, except for motor vehicles and motorboats. Clothing items are exempt unless they exceed $175 in price, in which case only the amount over $175 is taxable.
Retailer Participation
All Massachusetts retailers selling taxable tangible property must participate in the sales tax holiday if they are open for business on August 10 and 11, 2024.
Limits and Returns
There is no limit to the number of items an individual can purchase tax-free as long as each item is $2,500 or less. If an item exceeds this limit, sales tax applies to the entire purchase amount.
Post-Holiday Considerations
Items purchased during the sales tax holiday weekend that are later exchanged or returned will not be subject to retroactive taxation. Retailers are required to refund any sales tax collected in error during the exempt period.
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