Don't Mess With Taxes

It seems that I've become an honorary Bay State tax blogger of late, what with the John Kerry yacht sales tax flap and now Massachusetts' 2010 state sales tax holiday.

But I'm still getting questions about the latest tax holiday to be added to this August's no-tax events. So I beg the indulgence of readers in the other 49 states and D.C. for a few more minutes.

Gov. Deval Patrick has not yet signed the legislation creating a Massachusetts tax holiday on Aug. 14 and 15, but I did call his office today and was assured that he will make it official soon. (Update: Patrick signed the bill into law on Aug. 5.)

So to answer the questions I've been getting about what is tax free on that weekend, here's the deal.

Most items purchased next weekend in Massachusetts will be sales-tax-exempt if they cost less than $2,500.

There are a few exceptions. The Secretary of the Commonwealth notes that the following purchases will remain subject to sales tax: cars, boats with motors, meals, gasoline, tobacco utilities and layaway items.

There is, however, a new tax-free item this year: alcohol purchased at liquor stores.

The addition of packaged adult beverages is a nod to Massachusetts liquor store owners, who complained back in 2009 when, for the first time, the state applied its sales tax to alcoholic beverages.

Even with this decidedly grown-up product now in the tax-free mix, I'm still going to keep the Massachusetts sales tax holiday in the "back-to-school" category because of its timing.

That and the fact that while booze usually isn't considered an academic necessity, it might be on the to-buy list for some college-age students!

Related posts:

• Massachusetts tax holiday Aug. 14-15
• No Massachusetts tax holiday…yet
• Sales tax holidays 2010
• Memorial Day sales tax holidays
• Show Me sales tax savings
• State use taxes tend to be useless
• State Tax Departments