Attleboro Businesses Ready for Tax-Free Holiday

Budget conscious shoppers throughout the state should be gearing up for a big weekend of savings with this year’s tax free weekend and local businesses are hoping for an uptick in sales.

Sen. James Timilty (D-Walpole) announced the two-day tax-free sales holiday, which will omit the 6.25 percent sales tax for the weekend of August 13-14 on purchases up to $2,500.

“I am pleased to see that we have taken the necessary steps to stimulate the local economy while providing relief to taxpayers,” Timilty said. “This is a big win for consumers and retailers alike.”

According the Massachusetts Department of Revenue, the sales tax holiday is expected to save consumers $20 million this year.

Allyson Devau plans to take advantage of Timilty's effort. "I hope to buy tires for my horse trailer," she said. 

Consumers are not the only ones that benefit from the weekend.

“We certainly do see a boost in sales,” Attleboro Jewelers Manager, Jeff Read says. 

The only issue Read has with the weekend is that it was announced at the beginning of this month, giving retailers only two weeks to prepare.

“It’s a positive thing, but I wish they gave you more time to prepare,” Read said.

Shan Fong of First Response Computer Service, down the road from the jewelry store says that his business does not typically see much of a boost as they are known mainly as a repair shop and there is no tax on labor.

“We do sell a few more computers,” Fong said.

Those looking to save big on a very large purchase, such as a car, will be out of luck as purchases are limited to $2,500. Additionally, if you did find a car at that price, automobiles are not included in the tax-free holiday and will be subject to regular taxation.

“We haven’t seen any (impact on sales) since they’ve been doing it,” said Gordon Gill of County Auto Sales.

In fact, there are many exceptions to the tax-free weekend aside from auto sales that consumers should be aware of before heading out the door to make that big purchase. 

Motorboats, meals, telecommunications services (such as prepaid phone cards), natural gas, steam, electricity and tobacco products are all items that are subject to their regular taxes during the weekend.

Canoes, kayaks and rowboats, however, would still be eligible for tax exemption as long as they are under $2,500.

Another fact consumers should be aware of is that the limit of $2,500 extends to individual items, not a total sale price of multiple items. For example, someone buying a $2,000 television and a $2,000 computer at the same time would not have to pay tax on either item as they are both under $2,500 though the total is $4,000.

Layaway sales also do not qualify for the tax free weekend and rain check purchases only qualify if the rain check is used during the tax-free weekend. A rain check received during the weekend, but not used during the weekend will be taxed.

Rental items do qualify as long as the rental period is for 30 days or less, not for motor vehicles or motorboats, and the rental is paid in full during the tax free weekend.

A full list of the rules and regulations regarding this year’s tax free holiday can be found on the Department of Revenue’s website.