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MA Sales Tax Holiday THIS WEEKEND

 

Sales Tax Relief is on the way!

As the Massachusetts Legislature closed out its latest session, after a two year hiatus, it included a sales tax holiday for the weekend of August 11 and 12, 2018.

If you plan to take advantage of this “holiday”, some basic points to keep in mind are:

  • The purchase must be fully paid for, but a credit card charge or merchant arranged loan will cover this requirement (think furniture, etc.).
  • Each item’s cost must be no more than $2,500.
  • Items “bundled” that normally cost less than this, alone, will qualify, but items normally sold together for a price exceeding the $2,500 limit will not be taxable. 
  • By the same token, items normally sold as a unit may NOT be broken out to bring the sales price under the $2,500 “cap”.
  • If the price exceeds the $2,500 “cap”, the first $2,500 is NOT exempt – this is a “cliff” – if you go over it, the entire purchase is taxable.
  • Delivery and shipping charges are excluded from consideration of the “purchase price” in testing the $2,500 “cap”.
  • A purchase made on either date for out-of-stock items or for future delivery will also be exempt, so long as the purchase is paid for on either date.

If you’re considering a significant purchase, consider shopping around in advance to be ready to make the purchase.

If you can identify the make, model and features of your desired merchandise, keep an eye out for “deals”, since retailers often “goose” sales by offering discounts/special pricing for this event.

Good bargain hunting to you!

 

Mark H. Misselbeck, C.P.A., M.S.T. is a Tax Principal at Katz, Nannis + Solomon, P.C. If you would like to speak with one of our tax professionals, please contact our office at 781-453-8700.

 
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Katz Nannis + Solomon PC
Katz Nannis + Solomon PC
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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