This weekend’s tax holiday will bring buying boost
Published: 08-08-2024 4:41 PM |
Thousands of people in Hampshire County are expected to take advantage of the state’s tax-free weekend this Saturday and Sunday on the 19th anniversary of the shopping holiday in the state.
During the holiday, most retail items with a price up to $2,500 purchased for personal use will be exempt from state’s 6.25% sales tax. Meals, motor vehicles, gas, tobacco, alcohol and marijuana products are not subject to the sales tax break. Internet sales during the weekend are eligible for the tax break, however, as are rental products, provided that payment is made in full during the weekend.
Though individual items are limited to the $2,500 price tag, items can be combined, leading to potentially hundreds of dollars in savings for larger purchases.
The tax holiday has been in effect every year since 2004, with the exception of 2009 during the worldwide global recession. State lawmakers have often set the tax holiday during the month of August, a time when retail sales in the state would otherwise be lower. Though meant to juice economic activity in the state, it has often been criticized by some politicians on Beacon Hill for not actually stimulating activity but instead simply shifting buying patterns.
According to the Department of Revenue, last year’s tax holiday increased indirect state tax revenues by $3.54 million through increased economic activity, while the state lost out on $36.94 million in foregone tax revenue.
Regardless, consumers and businesses alike are eagerly awaiting the weekend’s boost in buying power and sales.
At YES Computers, an independent computer store on Northampton’s Pleasant Street that specializes in Apple products, is bracing for what it anticipates will be its busiest weekend of the year.
“The month of August is busier for us then the Christmas season,” said Mark Wineburg, owner of YES Computers. “It’s a bit of the back to school crowd, and then you have people who have been waiting for the tax-free weekend to make a large purchase.”
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Wineburg said customers can also take advantage of the tax-free weekend by placing orders for products in advance, and can even pick up the product at a later date if they have plans for the weekend. As long as the billing payment goes through on the weekend of Aug. 10-11, the tax exemption applies.
He added that after seeing countless sales tax weekends, which the store has participated in since the inception of the holiday, it now feels like more than simply a good purchasing opportunity for people.
“It’s not just about the money, it’s become something of a community event,” Wineburg said. “We put out drinks, and we get the widest selection of customers coming in during the weekend. It’s like a tax refund, so why not take advantage of it?”
A similar sentiment is being felt at Manny’s Appliances in Hadley, where customers seek out deals on refrigerators, air conditioners and other household electronics during the weekend.
“It’s craziness. It’s like a big party,” said Monte Newman, who manages the Hadley store. “I’ve done every tax day since they started doing it, and you can do two months worth of your businesses in that week.”
Newman said the store still has some promotional sales items left over from Independence Day, though most products will be priced normally. But most still fall well within the $2,500 limit for purchase.
“You can do a whole kitchen with products under $2,500,” Newman said. “It definitely peps up the economy here.”
The tax holiday is also beneficial for businesses that otherwise wouldn’t make much in sales during the late summer months. At Gardener’s Supply Co. in Hadley, which sells a variety of plants and related garden accessories, the tax holiday provides a welcome bump in between the spring and fall seasons, which are the best time for planting, said store manager Eric Tideman-Mau.
“It’s typically busier than it would normally be,” Tideman-Mau said. “We see people pick up more trees, which are a higher cost item, in order to get the biggest tax reduction.”
Shoppers at Gardener’s Supply can also combine the advantage of the tax holiday with existing sales. The store began a sale at the beginning of the month for fall planting, offering between 30-40% off on select perennials, trees and shrubs for planting.
“Fall is potentially the best time for gardening,” Tideman-Mau said. “People always think of the spring, but fall is a good time to figure out what holes are in your garden and what the best way to fill them is.”
Further up the Valley, stores in Greenfield are also offering promotional opportunities that coincide with the holiday. Places like Bicycle World, at 104 Federal St., and jewelry retailer Moldavite Dreams at 176 Main St. in Greenfield, are two examples of stores looking to further encourage sales by offering a 10% discount on purchases.
Alexander MacDougall can be reached at amacdougall@gazettenet.com.