Post Content

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.

Written By:

Recent Posts

Prep Early for Next Tax Season posted on May 20

Filing season is finally over and we know the last thing on your mind is next tax season. But did you know that if given more prep time, you could be saving yourself lots of stress and time? Start planning for next tax season now   …Continue Reading Prep Early for Next Tax Season

DOR’s Participation in the Family Court Workshops posted on Apr 22

Once a month, the Department of Revenue’s Child Support Enforcement (CSE) lawyers and staff volunteer to be a part of the Family Court Workshops for Mothers and Fathers at the Suffolk County Probate & Family Court in Boston. The workshops, a joint venture between community   …Continue Reading DOR’s Participation in the Family Court Workshops

DOR Ruling Favorable in First Circuit Judgment posted on Mar 17

The United States Court of Appeals for the First Circuit issued judgments in the Department of Revenue’s (DOR) favor last month, finding that taxpayers in Bankruptcy proceedings cannot discharge late filed tax returns. The court consolidated two similar cases brought before them involving a total   …Continue Reading DOR Ruling Favorable in First Circuit Judgment