This weekend 8/14/10 – 8/15/10 , Massachusetts will have a Tax Break Holiday.
- Many non-business retail items costing $2,500 or less are exempt from the sales tax, but some items –motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products, and anything else costing more than $2,500 – are not.There is no sales tax on beer, wine and alcohol during the holiday. There is also no sales tax on single items of clothing that cost up to $2,500.
My question is… IS IT WORTH IT???
I know we are saving the 6 – 7 % sales tax, but would you race to the store to buy something you did not have the money for if they advertised 6-7% savings?? HELL NO you would not. So why does every one rush out during Tax Holidays?
They do because they “believe” they are saving big. They think, I was going to buy this big ticket item – laptop, iPod, iPhone, flat screen tv - in 6 months, but I can save on the tax if I buy it now. What they do not always consider is that during these holidays, even though the stores have sales, they may not be getting the best price. You are saving 6-7 % now, but you could have saved 20% – 50% if you waited for a clearance sale.
Now I am not saying there are not going to be great deals to be had. I am sure there will be some great sales on Back-To-School items, especially clothing, where you can buy now and save. BUT I am saying you need to do your homework. Find out what the price trends have been – especially for big ticket items.
Do not be swept away by all the perceived savings. Running out NOW and charging something you do not have the money for in order to save 6-7% is not logical. Think about it… you do not have cash so you charge that new computer NOW to save on the tax. Now you are paying 11-25% interest (or whatever the going rate is) in order to save 6 – 7 % – YOU ARE LOSING MONEY!
If you have the money and were planning the purchase then have at it – every little savings helps. I just want everyone to use your brain before you see $$ in your eyes and get in over your head on purchases that are not and should not be in your budgets!
Let us know if you have heard of any great tax holiday sales…
So what do you think… Is it worth it? Have you gotten any great TAX FREE savings during past tax holidays?
I think you do need to be choosy. Ours in Virginia was this past weekend and we bought school supplies and clothes. Granted, I was planning to make these purchases anyway and I don’t carry a balance on my card, so I don’t have to worry about interest.
Delaware is only about two hours away. If I really wanted a tax holiday for a big ticket item, I’d head up 95. There’s no sales tax there every single day!
If you buy things on the internet some of the sites don’t charge tax. ex. Amazon.com
R.K. – YES that is true!! Thanks for the reminder!
If I lived in MA, I’d go a wee bit north to New Hampshire where there is no sales tax 365 days a year. But I already live in NH!
Valid point Brian – lots of people do that all the time – LOL! Forgot to mention that!