Tips for taking advantage of the upcoming Sales Tax-Free Weekend.

The accounting team at Rodman & Rodman, P.C., of Newton, Mass. offers tips for retailers and consumers regarding the special rules that apply during Massachusetts’ Sales Tax Holiday Weekend on Saturday and Sunday, August 13th & 14th.

Rodman & Rodman provides accounting, tax and business services to small and medium-sized companies throughout New England.

The Commonwealth of Massachusetts will not be collecting sales tax on tangible personal property sold by retailers to the general public at a price of $2,500 or less on the weekend of August 13th. The tax-free days do not apply to business to business sales.

Here’s a quick overview of applicable rules:

• When the price of a single item exceeds the $2,500 maximum, then the entire sales price of the item is taxable.

• 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 items are tax-free.

• Bundled items, such as computer packages that include computer, monitor, keyboard and printer in a single sales price only qualify for tax exemption if the price of the entire bundle is less than $2,500.

• Corporate and other business purchases as well as individuals purchasing items for business use remain taxable.

• Special order items such as furniture are eligible for the sales tax holiday 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. Generally, a customer pays for an item when the seller receives a credit card number, a check, or the buyer and seller enter into financing arrangements.

• A special order purchase made before the sales tax holiday that is not paid for in full will qualify for the holiday if the retail customer pays the entire remaining balance due during the sales tax holiday weekend.

• Motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products and any item in excess of $2,500 remains taxable.

"Both retailers and consumers should be aware of the sales tax rules to ensure a pleasant shopping day all around. Consumers will be able to save five percent on many big-ticket items such as flat screen televisions. Retailers can take advantage of the day by offering special promotions to generate even more foot traffic and sales. It’s win-win all around," noted Steve Rodman, CPA, MST and President of Rodman & Rodman, P.C.

Rodman & Rodman, P.C.
Founded in 1961, Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies throughout New England. With a focus on strategic planning, Rodman & Rodman goes beyond traditional accounting services and takes a proactive approach when serving clients to increase, preserve and sustain clients’ financial net worth.

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. Rodman & Rodman, P.C. is located at 3 Newton Executive Park in Newton, Mass. For more information, visit their website at www.rodmancpa.com or contact Jen Reading at (617) 965-5959.