Massachusetts Gov. Deval Patrick has signed a bill that provides for a sales tax holiday effective August 14 and August 15, 2010. Many non-business retail items with a selling price of $2500 or less are exempt from sales and use tax. Non-qualifying items include motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products and items with a selling price exceeding $2500. When the price of a single item exceeds $2500, sales or use tax is due on the entire price charged, not on the excess amount over $2500. If multiple items are purchased at the same time, there is no limit on the amount of tax-free purchases an individual can make, so long as each item is less than $2500. Sales tax will not be charged on beer, wine and alcohol purchased for off-premise consumption during the tax holiday. The sales tax exemption applies to items bought for personal use only. Purchases by businesses and purchases by individuals for business use are still subject to tax. (Technical Information Release 10-10, Massachusetts Department of Revenue, August 5, 2010). (08/10)