Form Tir 07-12 - The 2007 Massachusetts Sales Tax Holiday Weekend (Page 3 of 5) in pdf

holiday exemption if the property is actually purchased after the sales tax holiday.

J. Rentals. Generally, rentals of tangible personal property except motor vehicles and m

are eligible for the sales tax holiday, even if the rental period covers days before or after th

providing payment in full is made during the sales tax holiday weekend.

K. Rebates. A rebate is a refund of an amount of money by the manufacturer of a produc

retail purchaser of the product. If a vendor sells tangible personal property to a customer

a manufacturer's rebate to reduce the sales price at the time of the sale, the rebate is gen

treated as a cash discount and is excluded from the sales price. The discounted sales pric

determines whether the sales price is within the sales tax holiday price threshold of $2,500

If a vendor sells tangible personal property to a customer who will receive a rebate after th

by mailing a coupon to the manufacturer), the full purchase price of the property determine

the sales price is within the sales tax holiday price threshold of $2,500 or less, and tax mu

charged on the full purchase price if it is over $2,500.

If a vendor offers a customer a cash discount upon the purchase of tangible personal prop

customer also receives a rebate from the manufacturer of the property after the sale, only

discount given by the retailer is excluded from the sales price for purposes of the sales tax

exemption. The amount of the manufacturer's rebate is not deducted from the sales price

L. Internet Sales. If a customer orders an item of eligible property over the Internet, the

exempt if it is ordered and paid for on August 11 or 12, 2007, Eastern Daylight Time. Gen

customer pays for an item when the seller receives a credit card number, a debit authoriza

check, or a money order. The actual delivery can occur after the holiday period. For exam

customer orders a computer over the Internet with a sales price of $2,000 and charges the

credit card at 1:00 p.m. (EDT) on August 12, 2007; the computer has a delivery date of Se

2007. The sale is exempt since the computer was ordered and paid for during the sales ta

M. Splitting of Items Normally Sold Together. Articles normally sold as a single unit m

to be sold in that manner. Such articles cannot be priced separately and sold as individua

order to obtain the sales tax holiday exemption.

N. Returns. Generally, sales tax may only be refunded to a retail customer on returns wi

of the sale. G.L. c. 64H, § 1. For the 90 day period following August 12, 2007, when a cu

returns an item that could have qualified for the sales tax holiday exemption, the vendor m

credit or refund sales tax to the retail customer unless (1) the customer provides a receipt

that shows the tax was paid or (2) the seller’s records show that tax was paid. Sellers ma

own return policies. This requirement is not intended to change or extend a seller’s return

O. Erroneously Collected Taxes. Customers who were erroneously charged sales tax b

for an exempt purchase should take their tax paid receipt to the vendor to obtain the refun

vendor has previously remitted the erroneously collected tax to the Department, the vendo

an application for abatement of the erroneously collected tax within 3 years upon satisfact

evidence that the vendor has credited or refunded the tax to the purchaser.

IV. Responsibilities of Retailers

A. Participation. All Massachusetts businesses normally making taxable sales of tangib

property that are open on August 11 and 12, 2007 must participate in this sales tax holiday

B. Erroneous Collection. Any sales or use tax erroneously or improperly collected by a

August 11 and 12, 2007 must be remitted to the Department of Revenue.

C. Certification of Nonbusiness Use by Purchaser. Normal business records showing

Form Tir 07-12 - The 2007 Massachusetts Sales Tax Holiday Weekend Page 3