It’s the weekend when area residents can buy back-to-school supplies and other goods without paying VAT.
Massachusetts again has tax-free days on Saturday and Sunday, eliminating the 6.25% state tax on most items under $2,500.
The tax-free weekend traditionally takes place in August to stimulate shopping during the retail sector’s slow period and to enable families to save money on school supplies.
“Retailers and consumers look forward to this weekend every year,” said Jack Lank, president of the United Regional Chamber of Commerce, which serves many communities in the region. “Tax-free weekends typically see more purchases of major consumer goods such as appliances, mattresses and furniture.”
Attleboro authorities also believe the weekend will benefit local businesses.
“The city is very excited about the upcoming sales tax free day and, as always, encourages its residents to shop local and welcomes customers from neighboring communities,” said Christopher McDermott, the city’s new economic development director, who held the same position in Mansfield.
“This holiday is designed to help both businesses and shoppers by giving the latter an extra incentive to make that purchase they may have been putting off,” McDermott added.
Christopher Carlozzi, director of the National Federation of Independent Businesses Massachusetts, said, “When you shop local, more of your hard-earned money stays in the community.”
“Main Street is the backbone of our economy, creating good-paying jobs and supporting charities that keep our communities thriving.”
Even with online purchases, the usual tax is spared, regardless of when the items are delivered.
The tax-free weekend does not apply to the purchase of motor vehicles, motorboats, meals, alcoholic beverages, tobacco products, marijuana products, telecommunications services such as prepaid calls, natural gas, steam or electricity.
Critics say that the tax-free weekend does not generate much new economic activity, but simply leads to a shift in consumer purchasing.
The tax-free program is approved by the state parliament every year.
The 2023 tax-free weekend brought in $3.54 million in indirect tax revenue and cost the state about $37 million in lost sales tax revenue, the IRS said.
The Better Business Bureau offers the following shopping tips for tax-free periods:
- Find out which items are exempt from tax.
- Know the cost limits.
- Don’t let the advertising confuse you.
- Set your budget before you go shopping. It’s easy to go over budget when you think you’re getting a good deal on an item.
- To ensure you get the most benefit from tax-free sales, start with the most expensive items, such as a computer. Such items are often in high demand during tax holidays.
- Use multiple money-saving opportunities at once to maximize your savings. Keep an eye out for coupons and cashback offers.
