BOSTON - Massachusetts shoppers and retailers are preparing for a weekend sales tax holiday this weekend after Governor Charlie Baker signed the legislation Friday afternoon.
Baker signed the bill authorizing the tax-free weekend ahead of his Saturday deadline.
Massachusetts has not had a sales tax holiday weekend since 2015, so here's what shoppers can expect:
Items exempt from sales tax
- The 6.25 percent sales tax is waived for in-store and online purchases made on Aug.11 and 12.
- Single items that are $2,500 or less are exempt (anything over is charged sales tax)
Cars, boats, meals, tobacco, marijuana products, utilities, and layaway purchases.
How will clothing be taxed?
Normally, clothing is tax-free if the item is $175 or less. This weekend, if your single item is more than $2,500 you have to pay tax on the full amount (less $175).
Retailers were already moving ahead with plans for the tax-free weekend on the assumption it will occur. Some are already advertising the tax discounts.
The state revenue department has already issued "draft" regulations for implementing the sales tax holiday.
This weekend, there will be a Sales Tax Holiday in Massachusetts. I am pleased to sign, as part of the #EconDev bill, this provision into law to support our small businesses and give our residents a break. #BuyInMA pic.twitter.com/K3EshXTqYm— Charlie Baker (@MassGovernor) August 10, 2018
An economic development bill approved by lawmakers in the final moments of the formal legislative session last week includes a provision waiving the 6.25 percent sales tax on most store items this Saturday and Sunday.
The bill includes a permanent sales tax holiday every August, starting in 2019.
The Associated Press contributed to this report.
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