Thousands of people in Hampshire County are expected to take advantage of the state’s tax-free weekend this Saturday and Sunday to mark the 19th anniversary of the state’s shopping holiday.

During the holidays, most retail items priced at $2,500 or less purchased for personal use are exempt from the 6.25% state sales tax. Meals, motor vehicles, gasoline, tobacco, alcohol and marijuana products are not subject to the sales tax reduction. However, internet sales on weekends are exempt, as are rental products, provided payment is made in full on the weekend.

Although individual items are capped at $2,500, items can be combined, potentially saving hundreds of dollars on larger purchases.

The tax holiday has been in effect every year since 2004, except for 2009 during the global recession. State lawmakers have often scheduled the holiday for the month of August, a time when retail sales in the state would otherwise be lower. Although it is intended to stimulate economic activity in the state, it has often been criticized by some politicians on Beacon Hill for not actually stimulating activity but merely changing purchasing behavior.

According to the IRS, the tax exemption increased the state’s indirect tax revenues by $3.54 million last year due to increased economic activity, while the state lost $36.94 million in tax revenues.

Regardless, consumers and businesses alike are eagerly awaiting the weekend boost in purchasing power and sales.

YES Computers, an independent computer store specialising in Apple products on Pleasant Street in Northampton, is gearing up for what is expected to be its busiest weekend of the year.

“August is busier for us than the Christmas season,” says Mark Wineburg, owner of YES Computers. “There’s the back-to-school market, and there are people who have been waiting for the tax-free weekend to make a big purchase.”

Wineburg said customers can also take advantage of the tax-free weekend by ordering products in advance and even picking up the product at a later date if they have plans over the weekend. As long as the bill payment is received on the weekend of Aug. 10-11, the tax exemption will apply.

He added that it is now more than just a good shopping opportunity for people after the countless sales tax weekends the store has participated in since the holiday was introduced.

“It’s not just about the money, it’s become a community event,” Wineburg said. “We put out drinks and have the biggest selection of customers on the weekend. It’s like a tax refund, so why not use it?”

A similar mood can be felt at Manny’s Appliances in Hadley, where customers seek weekend deals on refrigerators, air conditioners and other home electronics.

“It’s crazy. It’s like a big party,” said Monte Newman, who runs the Hadley store. “I’ve spent every tax day doing this since it started, and you can get two months’ worth of stuff done in that week.”

Newman said the store still has some special offers left over from Independence Day, but most products are priced at their regular price. However, most are still well under the $2,500 purchase limit.

“You can outfit an entire kitchen with products for under $2,500,” Newman said. “It definitely stimulates the economy here.”

The tax exemption is also beneficial for businesses that otherwise wouldn’t do much business in the late summer months. At Gardener’s Supply Co. in Hadley, which sells a variety of plants and related gardening supplies, the tax exemption provides a welcome break between spring and fall, the best time for planting, said store manager Eric Tideman-Mau.

“It’s usually busier than usual,” Tideman-Mau said. “We see people buying more trees that are more expensive to get the biggest tax break.”

Shoppers at Gardener’s Supply can also combine the tax exemption with existing offers. The store launched a fall planting sale earlier this month, offering 30-40% off select perennials, trees and shrubs for planting.

“Fall may be the best time for gardening,” Tideman-Mau said. “People always think of spring, but fall is a good time to figure out what holes are in your garden and how best to fill them.”

Further up the valley, stores in Greenfield are also offering specials to coincide with the holiday. Shops like Bicycle World at 104 Federal Street and jewelry retailer Moldavite Dreams at 176 Main Street in Greenfield are two examples of stores looking to further boost sales by offering 10% off purchases.

Alexander MacDougall can be reached at [email protected].