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A sales tax holiday is on tap for the weekend of August 14-15 now that Gov. Deval Patrick has signed an Economic Development bill that includes a provision for the sales tax holiday.

The rules of the road for this holiday are virtually the same as for all the previous sales tax holidays. Many non-business retail items costing $2,500 or less are exempt from the sales tax, but some items –motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products, and anything else costing more than $2,500 – are not.

The sales tax exemption applies to sales of tangible personal property bought for personal use only; purchases by corporations or other businesses and purchases by individuals for business use remain taxable.

There is no sales tax on beer, wine and alcohol during the holiday. There is also no sales tax on single items of clothing that cost up to $2,500.

The Department of Revenue estimates that taxpayers will save somewhere between $20 million and $23 million over the holiday period. There was no sales tax holiday last year. In previous years, the holiday has saved taxpayers between $15 million and $17 million.

For detailed information on the sales tax holiday weekend, DOR has published a Technical Information Release. For a copy of the announcement of the bill signing, and details on other provisions of the economic development law the Governor signed today, click here.

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