MA Tax-Free Weekend: What To Know

BELMONT, MA — Gov. Charlie Baker said one way to help small businesses recover from the economic impacts of the pandemic is to shop during the upcoming 14th annual tax-free weekend.

"Please show your support for the businesses in your community," Baker said from inside WheelWorks bicycle shop in Belmont, Tuesday.

Massachusetts sales tax-free weekend begins Saturday Aug. 29 and will run through Sunday, Aug. 30. People will be able to buy most — but not all — items under $2,500 without having to pay the state 6.25 percent sales tax.

Former Gov. Mitt Romney started the weekend "holiday" in 2004 as a way to help stimulate the economy. Almost every year since then, legislators have designated one or two days for tax-free shopping. After a two year hiatus in 2016 and 2017, Baker signed a law requiring one weekend every August to be set aside as a sales tax holiday, which costs the state around $25 million each time it's enacted.

This year, Massachusetts is one of 16 states to hold the event amid pandemic.

Although it's called a "tax-free" weekend, there is a limit to what qualifies during the weekend. It only applies to items that cost up to $2,500. The sales tax will still be there when you pick up the check at a restaurant, or pay for cars, boats or other vehicles. It also won't apply to your gas pump tax, any utilities or tobacco products, marijuana or alcohol.

Proponents of tax-free holidays say it helps working families stretch their dollars, and it helps local businesses get shoppers. And as thousands of businesses suffer after months of closures or severe drop in customers who had been instructed to stay home, officials are hoping it will provide a much-needed boost to them.

As the state heads into the tax-free weekend, Baker and Lt. Gov. Karyn Polito said the state was also beginning a $2 million campaign set to run the rest of the year to encourage people to shop locally.

"We need to remind people that they need to shop like jobs depend on it, because, frankly, they do," Massachusetts Retailers Association President Jon Hurst said.

The administration plans to use $500,000 from the budget of the Massachusetts Office of Travel and Tourism and $1.5 million from the federal coronavirus relief fund to run ads.

"Where you shop, dine and travel matters," Polito said. "Local businesses, many of which are family owned," she said. "They fill a key need in our communities."

Small businesses are responsible for employing about half the workforce, according to Baker.

Who qualifies for the sales tax holiday?
The sales tax holiday applies to retail items for personal use only, according to the state website. Businesses purchases are still taxable.

What about internet sales?
Yes. If you order and pay for an eligible item over the internet on the sales tax holiday, Eastern Daylight Time, that item will qualify for the sales tax holiday exemption, according to the state website —even if the item is set to arrive after the sales tax holiday weekend.

What else?

Earlier Tuesday, the Baker administration announced nearly $10 million in federal funding to local and state public safety agencies in an effort to help them respond to the pandemic.

As of Monday, of the 1,581,978 who had taken tests to see if they had the coronavirus, some 116,421 people had tested positive in Massachusetts. Of those who had it, 8,717 had died because of complications associated with it.

Baker said the state was doing well compared with other states, and encouraged travel and shopping within the commonwealth.

Read more:

• MA Small Business Hit Harder Than Most By Coronavirus ...
• New Testing Program Seeks To Help Reopen, Keep Open MA Schools
• MA Slows Reopening, Adds New Restrictions Amid ...
• 70% Of MA School Districts Bringing Students Back Next ...
• 10 Communities At High Risk Of Coronavirus Infections

Patch reporter Jenna Fisher can be reached at Jenna.Fisher@patch.com or by calling 617-942-0474. Follow her on Twitter and Instagram (@ReporterJenna).