Ah, Massachusetts. So many firsts: the first public park in the U.S., the first American university (Harvard, of course), first basketball game in the U.S., the first state Constitution, the first American subway system (take that, New York)…
But when it comes to figuring out a budget, Massachusetts doesn’t feel the need to be first; the Commonwealth likes to take it right down to the wire. And this year is no different.
Weeks after most states announced their sales tax holiday for 2011 (or lack of one), Massachusetts was still hedging. Now, with just a little less than a month to go before school starts, Gov. Deval Patrick has announced a two day sales tax holiday in the Commonwealth.
“The terms and conditions for the holiday will be identical to those of previous holidays,” according to the Massachusetts Department of Revenue. That means that retail sales for items costing $2,500 or less are exempt from sales and use taxes, subject to certain exclusions. Exclusions include, among other things, cigarettes, cars, trucks, motorboats and gas. Ordinarily, sales and use taxes in the Commonwealth are imposed at a rate of 6.25%.
The sales tax holiday isn’t being labeled a “back to school” event but the timing is generally in line with other states’ proclaimed “back to school” sales tax holidays. Many states use the holiday as an opportunity to give parents a break from the sales taxes associated with school supplies, dorm furnishings and clothing. In Massachusetts, however, it’s worth noting that sales of individual items of clothing costing $175 or less are generally exempt from sales tax year round.
The Bay State is likely the last of the states to make such an announcement before the school year begins – but if that changes, I’ll let you know. In the meantime, you can see a complete list of back to school sales tax holidays here.