Guide to Massachusetts’ sales tax holiday this weekend
Guide to Massachusetts’ sales tax holiday this weekend, Aug. 10-11, 2024
What will you be buying?
SALES TAX YEAR ROUND. OR IS IT A LOCAL WOMAN ASKED FOR OUR HELP AFTER SHE WAS CHARGED SALES TAX DUE TO A LOOPHOLE IN THE LAW, AND IT RAISES QUESTIONS ABOUT HOW OFTEN MISTAKES LIKE THIS HAPPEN WHEN BUYING SPORTS RELATED GEAR. SO I BOUGHT THIS JACKET FOR MY HUSBAND, UH, THIS SUMMER ON REI ONLINE. AT FIRST IT SEEMED LIKE JUST A ROUTINE ONLINE TRANSACTION, BUT THEN BEN DENG SAYS SOMETHING CAUGHT HER EYE ABOUT THIS JACKET’S PRICE. AND I KNOW AFTER DISCOUNT, IT SHOULD BE UNDER 100. BUT WHEN I CHECKED MY CREDIT CARD, IT WAS OVER 100, SO SHE DOUBLE CHECKED HER RECEIPT AND SAW SHE WAS CHARGED SALES TAX. BUT IN MASSACHUSETTS, ARTICLES OF CLOTHING UNDER $175 ARE SUPPOSED TO BE TAX FREE. BEN THOUGHT IT WAS A MISTAKE. I EXPECT NO SALES TAX SHOULD BE CHARGED ON THIS JACKET. THE SALES TAX WAS JUST $6, BUT FOR BEN IT WAS THE PRINCIPAL, SO SHE REACHED OUT TO REI ASKING FOR A REFUND. THEY TURNED HER DOWN, SAYING THE JACKET IS TAXABLE BECAUSE STATE LAW ALLOWS TAX ON QUOTE, SPECIAL CLOTHING OR FOOTWEAR, PRIMARILY DESIGNED FOR ATHLETIC ACTIVITY OR PROTECTIVE USE. AND THIS IS A CYCLING JACKET. BEN CHECKED HER RECORDS AND FOUND SHE ALSO WAS CHARGED SALES TAX BY RADIO.COM FOR A SIMILAR JACKET PURCHASED LAST YEAR. YOU THINK IT COULD BE WIDESPREAD? I BELIEVE SO, YEAH. WHO KNEW THERE WAS AN EXCEPTION TO THE STATE SALES TAX LAW? EVERYONE IS KIND OF UNDERSTOOD. IF IT’S LESS THAN $175, YOU DON’T HAVE TO PAY SALES TAX, BUT THERE’S ACTUALLY A WHOLE LIST OF EXCEPTIONS, INCLUDING FOR PROTECTIVE OR ATHLETIC CLOTHING. BUT THAT WASN’T THE END OF THE ROAD FOR THIS STORY. BEN RETURNED THE JACKET TO AN REI STORE WHERE SHE SAYS A SALES CLERK WAS ALSO SURPRISED SHE WAS CHARGED TAX, SO HE RANG IT UP IN STORE AND NO TAX, WHICH IS ACTUALLY CORRECT. WHY WE TURN TO EDGAR DWORSKY, FOUNDER OF CONSUMER WORLD ORG AND A FORMER MASSACHUSETTS ASSISTANT ATTORNEY GENERAL TO EXPLAIN IT. THE TROUBLE IS, THERE’S AN EXCEPTION TO THE EXCEPTION, WHICH SAYS, BUT IF IT CAN BE WORN AS AN EVERYDAY GARMENT, THEN YOU DON’T PAY SALES TAX. SO WHILE CLOTHING SPECIFICALLY FOR ATHLETICS OR PROTECTIVE USE IS TAXABLE, THE TAX IS NOT CHARGED. IF IT’S SOMETHING THAT CAN ALSO BE WORN FOR NORMAL USE, LIKE BEN’S JACKET. SHE TRIED EXPLAINING THAT TO REI, BUT THEY WOULDN’T BUY IT. YOU WOULD CERTAINLY HOPE THAT ANY RETAILER WOULD LISTEN TO A LEGITIMATE CUSTOMER COMPLAINT, BUT DWORSKY SAYS HE’S NOT SURPRISED GIVEN THE COMPLEXITIES OF SALES TAX LAW, SALES TAX LAW IS A NIGHTMARE. THERE ARE SO MANY NUANCES AND NOT JUST OUR LAW, BUT LAWS OF THE OTHER 49 STATES, I HONESTLY DON’T KNOW HOW RETAILERS CAN COPE WITH IT. AND IN A STATEMENT TO US, REI IS STANDING BY ITS DECISION TO CHARGE SALES TAX. THEY ARGUE THE JACKET IS DESIGNED SOLELY FOR ATHLETIC PURPOSES, BUT OTHER RETAILERS WHO SELL THAT VERY SAME JACKET DON’T CHARGE TAX, INCLUDING THE MANUFACTURER AND REI, DID NOT EXPLAIN WHY TAX WAS NOT CHARGED IN STORE EXCEPT TO SAY THEY’RE WORKING TO IDENTIFY ANY IRREGULARITIES BETWEEN THEIR ONLINE AND THEIR IN-STORE SYSTEMS. SO THE BOTTOM LINE HERE, WHEN YOU BU
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Guide to Massachusetts’ sales tax holiday this weekend, Aug. 10-11, 2024
What will you be buying?
Expect busy parking lots outside stores this weekend as Massachusetts waives its sales tax for many purchases. The state’s 6.25% sales tax will not be collected on Saturday and Sunday for most personal purchases up to $2,500.Despite inflation, which has been significant in recent years, that cap on the maximum price has not changed since the state’s very first sales tax holiday 19 years ago. According to an inflation calculator, that amount in 2004 would be equivalent to just over $4,000 today. The Massachusetts sales tax holiday went from a tradition to a legal requirement with the passage of a law in 2018. The tax break applies only to items bought for personal use and cannot be applied to purchases made by or for businesses. It also does not apply to any item worth more than $2,500 and does not apply to layaway sales. List of items that do not qualify:MealsMotor vehiclesMotorboatsTelecommunications servicesGasSteamElectricityTobacco productsMarijuana or marijuana productsAlcoholic beveragesAny single item whose price is more than $2,500For additional details, state officials have prepared this guide.
Expect busy parking lots outside stores this weekend as Massachusetts waives its sales tax for many purchases.
The state’s 6.25% sales tax will not be collected on Saturday and Sunday for most personal purchases up to $2,500.
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Despite inflation, which has been significant in recent years, that cap on the maximum price has not changed since the state’s very first sales tax holiday 19 years ago. According to an inflation calculator, that amount in 2004 would be equivalent to just over $4,000 today.
The Massachusetts sales tax holiday went from a tradition to a legal requirement with the passage of a law in 2018.
The tax break applies only to items bought for personal use and cannot be applied to purchases made by or for businesses. It also does not apply to any item worth more than $2,500 and does not apply to layaway sales.
List of items that do not qualify:
- Meals
- Motor vehicles
- Motorboats
- Telecommunications services
- Gas
- Steam
- Electricity
- Tobacco products
- Marijuana or marijuana products
- Alcoholic beverages
- Any single item whose price is more than $2,500
For additional details, state officials have prepared this guide.