Braintree, MA (PressExposure) August 04, 2011 -- "The Commonwealth of Massachusetts will not be collecting the 6.25 percent sales tax on tangible purchases of $2,500 or less that are for personal use," explains Thomas Astore, Tax Director at Rodman & Rodman, P.C. "Business purchases and purchases made by corporations remain taxable. All Massachusetts businesses normally open during this weekend and selling taxable items of tangible personal property are required to participate in this sales tax holiday."
Rodman & Rodman, P.C., is a CPA firm specializing in tax expertise and business strategy for small and medium sized companies throughout New England and beyond.
According to Rodman, consumers will be able to enjoy tax savings in compliance with the following rules that will be in effect for the weekend:
Business purchases are excluded, which also means any purchase made with a business check or business credit card.
All services are excluded. Only tangible purchases are eligible. Airline tickets and sporting events are considered services.
Motor vehicles (which include ATVs and small motorcycles), motorized boats, telecommunications services (including prepaid calling arrangements and cards), gas, steam, electricity, tobacco products and meals are excluded from the sales tax holiday. But, telecommunications equipment (cell phones and related items for personal use) are eligible.
Any single item with a price that is in excess of $2,500 is excluded. If the single item's price exceeds $2,500, it will be taxed in full. For example a $3,000 plasma TV will be taxed on the entire $3,000 sale price.
When more than one item is purchased at the same time, and each item has a price of $2,500 or less, then all of the items may be rung up on one receipt and all the items are tax-free.
There is no sales tax on clothing unless the sale price exceeds $175. For an article of clothing exceeding this amount, the $175 will be deducted from the price and the remaining amount will be taxed.
If a store coupon or discount provided by a retailer or manufacturer reduces the sales price of the item, the discounted sales price determines whether the sales price is within the sales tax holiday price threshold of $2,500 or less.
Prior sales and lay-a-ways do not qualify for the tax-free status under any circumstances.
Special order items such as furniture are eligible so long as they are ordered and paid in full on the sales tax holiday weekend, and the cost of each item is $2,500 or less, even if delivery is made at a later date.
Internet purchases are exempt from sales tax as long as they do not exceed $2,500 (and meet other criteria) and are made and paid for on August 13th or 14th, Eastern Standard Time.
For more information, visit the Massachusetts Department of Revenue at http://www.mass.gov or for tax questions contact Rodman & Rodman, P.C. At (617) 965-5959.
From business valuations, taxation, audits, fraud detection and prevention services and succession planning to a variety of accounting IT services including software selection, implementation and training, the team at Rodman & Rodman serves as comprehensive advisors to clients. For individual clients, the company offers personal advisory services such as planning for real estate transactions, obtaining financing, estate planning and retirement planning as well as planning for college education. The Rodman & Rodman Green Team is a specialized green energy and clean technology accounting and tax services practice within Rodman & Rodman, P.C.
The company's offices are located at 3 Newton Executive Park in Newton and 25 Braintree Hill Office Park in Braintree, MA. For more information, visit their website at http://www.rodmancpa.com or contact (617) 965-5959.