Massachusetts Sales Tax Holiday, August 2014
- Aug 8, 2014 | Gail Cole
The Secretary of the Commonwealth of Massachusetts has announced dates for the August 2014 sales tax holiday. It will take place August 16 and 17. Nothing like leaving things to the last minute.
The Massachusetts sales tax holiday has been controversial since 2004, when the first one took place, and it must be approved by lawmakers each year. Earlier this spring, the Massachusetts Senate rejected a proposal to establish an August tax free period even while acknowledging that the Legislature would reconsider the issue later in the summer. Opponents say such tax-free periods cost the state $20 to $25 million in lost revenue. But as Senator Gale Candara (Wilbraham) notes, “[I]t’s a very popular event every year. People love to see the government go without its taxes.”
Retailers will have to act quickly to prepare for the sales tax holiday, which waives sales tax “for purchases less than $2,500.” Tax remains in effect for sales of motor vehicles, boats, tobacco and food.
More than a dozen states are offering sales tax holidays in 2014, and many take place this month. How does your business prepare for tax-free periods?