GOVERNOR SIGNS SALES TAX HOLIDAY BILL - AUGUST 14 AND 15

Governor Deval Patrick recently signed legislation providing for a two-day sales tax holiday for items purchased on August 14 and 15. The sales tax exemption is limited to non-business purchases at retail of single items of tangible personal property costing $2,500 or less. The sales tax exemption is limited to tangible personal property purchased for personal use only and excludes purchases of motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, and tobacco products. In addition, if the purchase price of any single item that would otherwise qualify for the sales tax holiday exemption under this legislation exceeds $2,500, the entire purchase price is subject to the sales tax and not just that amount which exceeds $2,500.

The law will benefit both consumers and sellers. Legislators intend the law to have the effect of boosting sales for retailers and delivering discounts to their customers.

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