Form Tir 07-12 - The 2007 Massachusetts Sales Tax Holiday Weekend printable pdf download

TIR 07-12: The 2007 Massachusetts Sales Tax

Holiday Weekend

I. Introduction

A recently enacted statute provides for a Massachusetts “sales tax holiday weekend,” i.e.,

consecutive days during which most purchases made by individuals for personal use will n

subject to Massachusetts sales or use taxes. St. 2007, c. 81, §§ 1-6 (“the Act”). The Act

that the sales tax holiday will occur on August 11 and 12, 2007 and on those days, non-bu

sales at retail of single items of tangible personal property costing $2,500 or less are exem

sales and use taxes, subject to certain exclusions. The following do not qualify for the sale

holiday exemption and remain subject to tax: all motor vehicles, motorboats, meals,

telecommunications services, gas, steam, electricity, tobacco products and any single item

price is in excess of $2,500. The Act charges the Commissioner of Revenue with issuing

or forms and rules and regulations necessary to carry out the purposes of the Act.

II. Purchases Qualifying for the Exemption

The exemption applies to sales of tangible personal property bought for personal use only

by corporations or other businesses and purchases by individuals for business use remain

Purchases exempt from the sales tax under G. L. c. 64H are also exempt from use tax und

64I. Therefore, eligible items of tangible personal property purchased on the Massachuse

holiday from out-of-state retailers for use in Massachusetts are exempt from the Massachu

tax.

III. Specific Rules

The following rules are to be applied by retailers in administering the Massachusetts sales

exemption:

A. Non-Exempt Sales. All sales of motor

vehicles,[1] motorboats,[2] meals,[3]

telecomm

services,[4] gas,[5]

steam, electricity, tobacco

products[6]

and of any single item whose pr

excess of $2,500, do not qualify for the sales tax holiday exemption and remain subject to

B. Threshold. When the sales price of any single item is greater than $2,500, sales or u

on the entire price charged for the item. The sales price is not reduced by the threshold a

example, if an item is sold for $3,000, the entire sales price of the item is taxable, not just

that exceeds $2,500.

Exception: Under G.L. c. 64H, § 6(k) there is no sales tax on any article of clothing unles

price exceeds $175; in that case, only the increment over $175 is subject to tax. If, on the

holiday, the price of an article of clothing exceeds the threshold, the first $175 may be ded

the amount subject to tax. The threshold amount is not increased by $175.

Examples:

A customer buys a suit on the sales tax holiday for $600. No tax is due.

A customer buys a wedding dress on the sales tax holiday for $2,550. Tax is due on $2,3

- $175).

C. Multiple Items on One Invoice. Where a customer is purchasing multiple items on th

holiday, separate invoices do not need to be prepared. As long as each individual item is

Form Tir 07-12 - The 2007 Massachusetts Sales Tax Holiday Weekend

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