Issue Alert: August 12 & 13, 2006 will be a
AUGUST 11, 2006 -- A recently enacted statute provides for a Massachusetts “sales tax holiday weekend,” i.e., two consecutive days during which most purchases made by individuals for personal use will not be subject to Massachusetts sales or use taxes. St. 2006, c. 204, §§ 1 - 5 (“the Act”). The Act provides that the sales tax holiday will occur on August 12 and 13, 2006 and on those days, non-business sales at retail of single items of tangible personal property costing $2,500 or less are exempt from sales and use taxes, subject to certain exclusions.
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 is in excess of $2,500. The Act charges the Commissioner of Revenue with issuing instructions or forms and rules and regulations necessary
to carry out the purposes of the Act.
Two changes from the sales tax holiday of 2005 are the exclusion of prior sales and layaway sales from the holiday. The Act creating the 2006 sales tax holiday provides, “Eligible sales at retail of tangible personal property … are restricted to those transactions occurring on August 12, 2006 and August 13, 2006. Transfer of possession or payment in full for the property shall occur on one of those days, and prior sales or layaway sales are ineligible.”
Full information on the sales tax holiday is available by clicking here: http://www.dor.state.ma.us/rul_reg/tir/TIR_06_13.htm.
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