MASSACHUSETTS – Massachusetts’ annual two-day sales tax-free day is this weekend, just in time for back-to-school shopping.
Massachusetts’ 2024 Sales Tax Free Day will be held on August 10 and 11, offering consumers 6.25 percent off most smaller items. Some retailers – including those that help with back-to-school shopping – will be holding special sales to entice consumers even more.
However, there are a few rules you should know before visiting the shops at your local mall or downtown shopping area.
One thing you should definitely keep in mind: the discount only applies to goods that cost $2,500 or less.
What not to qualify?
Restaurant bills, cannabis, alcohol and tobacco, gasoline, utilities (including phone plans), and expensive purchases such as cars and boats (which typically cost over $2,500 anyway).
Who is the holiday for?
Ordinary consumers. Businesses cannot claim the VAT rebate. Individuals making business purchases must pay the tax.
What about the Internet?
The holiday also applies online. Sales tax is not charged on Internet purchases made on Saturday and Sunday during Eastern Daylight Time. Delivery time is not important.
More on this $2,500 limit
There are a few things to note about the $2,500 limit. The limit only applies to individual items – so if you buy five items that cost $2,500 each, you won’t pay sales tax on any of them at a single retailer, even if the total is well over $2,500.
Also remember that you must pay the full amount of sales tax on any item that exceeds the $2,500 limit. For example, an item that costs $3,500 will be taxed in full at 6.25 percent, not just the $1,000 over the limit.
(When it comes to clothing, residents never pay taxes on items that cost $175 or less. Here’s an example from state law: “A customer purchases a wedding dress for $2,550 during the sales tax-free period. Taxes are due on $2,375, $2,550 – $175.”)
rental
The VAT exemption also applies to some rental items, excluding cars and motorboats.
“If you rent an item that qualifies for the VAT exemption, you can use the VAT exemption for rentals of up to 30 days,” says the state tax office. “However, the rent must be paid in full on the holiday weekend.”
Have you been charged taxes?
If a retailer accidentally charges you sales tax on items that are exempt from sales tax during the holidays, government agencies recommend that you request a refund through the retailer’s customer service department.
