Massachusetts Creates Permanent Annual Sales Tax Holiday

Massachusetts Governor, Charlie Baker, signed a bill to enact a permanent and annual sales tax holiday beginning August 1, 2019. The Massachusetts legislature will set the dates of the holiday each year, but it will always occur over a concurrent Saturday and Sunday in August.

The sales tax holiday will apply to nonbusiness retail sales of tangible personal property with a price of up to $2,500 per item. The holiday will not include:

  • telecommunications;
  • tobacco products;
  • marijuana products;
  • alcoholic beverages;
  • gas;
  • steam;
  • electricity;
  • motor vehicles; or
  • motorboats

During the annual sales tax holiday, vendors will continue to comply will all reporting requirements, including, but not limited to, return filing requirements, which will remain in effect for transactions occurring during the holiday. (H.B. 4640, Laws 2018, July 1, 2019).

Posted on July 30, 2018