2007 Sales Tax Holiday Weekend Announced

Massachusetts shoppers will enjoy sales-tax-free shopping on August 11-12, 2007. The bill exempts shoppers from the state’s 5 percent sales tax on purchases up to $2,500. The following do not qualify for the sales tax holiday exemption and remain subject to tax: all motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products and any single item whose price exceeds $2,500. Governor Deval Patrick signed a tax-holiday bill on August 2, 2007, allowing for a sales tax holiday for the fourth year in a row. By doing so, the state hopes to encourage sales at a traditionally slow time of year.

Purchases exempt from the sales tax under G. L. c. 64H are also exempt from use tax under G.L. c. 64I. Therefore, eligible items of tangible personal property purchased on the Massachusetts sales tax holiday from out-of-state retailers for use in Massachusetts are exempt from the Massachusetts use tax.

For specific purchases that qualify for exemption, rules, and examples please refer to the Massachusetts Department of Revenue's website for more detail: www.mass.gov.

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