Before I started this blog (can you believe it's been two years?) I was pretty oblivious to what was going on in Boston, so I have a feeling this will be news to some of you. Especially you college kids who spend all your time drinking ... I mean studying. Sales tax is about to increase from 5% to 6.25%
Struggling retailers in Massachusetts are rolling out huge discounts and blasting e-mails and letters to consumers, urging them to make big purchases before the 5 percent sales tax increases to 6.25 percent on Aug. 1.
The tax increase applies to nearly all retail sales. Current exemptions, such as the sale of food (other than restaurant meals) and individual items of clothing costing $175 or less, remain in effect. But the state has repealed the exemption for alcoholic beverages purchased at shops; those, too, will be taxed at 6.25 percent starting in August.
If you've got some shopping you need done, better do it soon. Then again, I know lots of folks that do their big ticket item shopping in NH where there isn't any sales tax (although I believe you're not supposed to do that).
Click (here) to read the article.
Struggling retailers in Massachusetts are rolling out huge discounts and blasting e-mails and letters to consumers, urging them to make big purchases before the 5 percent sales tax increases to 6.25 percent on Aug. 1.The tax increase applies to nearly all retail sales. Current exemptions, such as the sale of food (other than restaurant meals) and individual items of clothing costing $175 or less, remain in effect. But the state has repealed the exemption for alcoholic beverages purchased at shops; those, too, will be taxed at 6.25 percent starting in August.
If you've got some shopping you need done, better do it soon. Then again, I know lots of folks that do their big ticket item shopping in NH where there isn't any sales tax (although I believe you're not supposed to do that).
Click (here) to read the article.
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Email me at beantownblog@gmail.com
Email me at beantownblog@gmail.com
Elana Said,
You can shop in NH as long as you pay your sales tax on your income taxes each year. MA offers a 'safe harbor' amount based on income. Although, you do have to keep track of items > $1000. [http://is.gd/1Gcai] I've found, if I've bought a particularly large ticket item, the $45 or so on the income tax is often less than what I've spent out of state and on the Internet through the year.
5% of $45 = $900
If I've bought a $1200 item, the tax is $60 in addition to the $45. But I do quite a bit of Internet shopping.
Your alternative to the safe harbor is to keep track of ALL your out of state purchases (including items in states such as NY where the sales tax is higher than MA) and figure out exactly what you owe.
Posted on 7/21/09, 5:18 AM