Shoppers looking to dodge taxes will have their chance this weekend. During Saturday and Sunday, August 14 and 15th, a Sales Tax Holiday will allow buyers to purchase most items under $2,500 without paying the state’s 6.25 percent sales tax. The state government approved this initiative last week as part of a broader Economic Development Bill. Compared to the previous tax-free weekend in 2008, retailers anticipate significantly higher sales volumes, largely because the tax rate has increased from 5 percent to 6.25 percent. According to Alan Belinfante of Revere’s Beach Sales, “The last time we had a sales tax holiday, it was at 5 percent,” “Now, with 6.25 percent, that’s a big jump. That’s 20 percent more tax savings and I think people will act on that.” The store, like most major retail chains, is preparing aggressively. “These sales tax holidays are important because businesses can grow their volume in a slow time and August is usually a slow retail month,” explained Belinfante. “It gives business a chance to keep their employees working and working overtime…It just gives everybody a little bump.”
Preparation efforts extend across the region’s stores. Chelsea’s Home Depot location has already begun implementing changes. Maria Reyes, specialty assistant store manager, noted that “We’re preparing the store and making sure there will be enough staffing to take care of the customer demand,” “The tax-free days always seem to be a big hit. We do have a lot of special buys coming in and a lot of promotions happening for the weekend.” The store plans to remain open until midnight on both Saturday and Sunday. Beach Sales in Revere will also extend operations, running from 8 a.m. to 6 p.m. Saturday and 10 a.m. to 6 p.m. Sunday. Meanwhile, the Saugus Lowe’s is layering in additional incentives. Michael Chenard, Lowe’s director of environmental affairs, shared that “There is no better time for Massachusetts residents to purchase ENERGY STAR and WaterSense products,” “These products can significantly reduce energy and water consumption and decrease utility bills throughout the year for the homeowner.” The 10 percent discount applies specifically to Energy Star appliances purchased during the tax-free period.
Across all participating retailers, consensus emerged about what customers would target. Big-ticket purchases like televisions, refrigerators and washing machines are expected to drive traffic. “I think it will be major appliances people have been holding off on and, again, large screen TVs will be hot,” Belinfante stated. “Large ticket items like appliances are a big item on tax-free day,” Reyes added. “We will be having a credit promotion for the customers that have a Home Depot card – 12 months with no interest and low payments.” Certain categories remain ineligible for the exemption and will continue to be taxed. These include motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products, and any single item priced above $2,500.