Under Massachusetts Legislation making the Sales Tax Holiday permanent, the MA Department of Revenue has set the dates for the 2022 event as August 13th and 14th.
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, appliances, electronics, etc.).
- Each item’s cost must be no more than $ 2,500.00
- Items “bundled” that normally cost less than this limited amount, alone, will qualify, but items normally sold together for a price exceeding the $ 2,500.00 limit cannot be “unbundled and will be taxable.
- If the price exceeds the $ 2,500.00 “cap”, the first $ 2,500.00 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 $ 2,500.00 “cap”, so make sure that they are separately stated in the bill.
- 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 of the dates to be ready to make the purchase, once those dates “roll around”.
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 luck with your bargain hunting!
Mark H. Misselbeck, C.P.A., M.S.T. is a Tax Principal at Katz, Nannis + Solomon, P.C. If you have any questions or would like to speak with one of our tax professionals, please contact our office at 781-453-8700.