The rush is on today for the kickoff of Massachusetts’ sales tax holiday weekend, with retailers expecting shoppers to fill their stores and snap up big ticket items.
Bay State stores are expecting to ring up a lot of sales, even though it’s the 11th year that shoppers are getting a break on the 6.25 percent state sales tax on most items with price tags of $2,500 or less.
“Anytime a consumer has an opportunity to save money it’s a big deal,” said Linnea Kelliher, regional director of marketing for mall owner Simon Property Group. “It’s definitely a win-win for both our stores and our shoppers, and we expect to be busy.”
Simon, which owns 13 malls and two outlet centers in Massachusetts, has extended its hours at many of them to take advantage of the sales tax reprieve. It’s holding special events such as the TeenVogue “Back-to-School Saturday” from noon to 3 p.m. at the South Shore Plaza that will feature a “glam squad” doing mini-makeovers, deejay, photo booth and free Flash Tats. Malls also will reward random shoppers with giveaways, from truffles to gift cards, and will award a prize an hour from 1 p.m. to 4 p.m. today to shoppers who register to enter at guest services desks.
“Having (the sales tax holiday) in August is the perfect time for back-to-school shopping,” Kelliher said. “Families take advantage of that to get those kind of big-ticket items — college students getting their stuff ready for their dorm rooms, their electronic devices.”
The state Department of Revenue has a handy guide (1.usa.gov/1L5SXPZ) detailing the ins and outs of the sales tax holiday, including the exceptions. When the price of any single item is more than $2,500, for example, sales tax is due on the entire price — except for clothing. In Massachusetts, there is no sales tax on articles of clothing unless the price is more than $175. During the sales tax holiday, if a woman buys a $2,550 wedding dress, she only has to pay tax on $2,375 ($2,550 minus $175). When coupons are used for a purchase during the sales tax holiday, the discounted price, not the original price, determines whether the item is within the $2,500 sales tax holiday threshold.
And if a consumer returns an item bought during the sales tax holiday and exchanges it for an identical or similar item for the same price, no sales tax must be paid when the return is made, even if the sales tax holiday has ended.
