Contractors Home Appliances on Riverdale Street in West Springfield is one of the stores looking forward to the tax-free weekend in Massachusetts. (Don Treeger / The Republican file photo)

Massachusetts’ tax-free weekend is Aug. 17 and 18, and shoppers have already been out searching for purchases they want to make without paying the 6.25% state sales tax.

"Everybody is looking to save a buck here or there," said Jim Kennedy, an owner at Competitive Edge Ski & Bike in Easthampton and East Longmeadow.

The tax-free period falls in between seasons for Competitive Edge, toward the end of bicycling and before most folks start seriously thinking of skis.

Some customers will make it a point to buy car racks — a $500-or-so investment — during tax-free weekend, Kennedy said.

Others order skis, at a cost of $200 to $900. They don’t have to take immediate delivery in order to get the savings.

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This is Pieroway's Furniture at 139 Myron St. in West Springfield is looking forward to the tax-free weekend. (Hoang 'Leon' Nguyen / The Republican)

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Pieroway's Furniture owner Mike Ouimette. (Hoang 'Leon' Nguyen / The Republican)

Mike Ouimette, owner of Pieroway's Furniture in West Springfield and Ludlow, said tax-free weekend is the busiest time of the year.

"People go nuts over the six and a quarter percent," he said.

As many merchants do, he observed that it wouldn’t be the same if he just advertised a 6.25% discount.

"It wouldn't do anything," he said. "People figure they are stealing from the government."

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What is tax free weekend?

On Saturday and Sunday, Aug. 17 and 18, the state will suspend collection of the 6.25% sales tax on single items of tangible personal property costing $2,500 or less.

Does that go for everything?

The sales tax exemption doesn't apply to telecommunications services, tobacco products subject to excise, marijuana or marijuana products, natural gas, steam, electricity, motor vehicles, motorboats, meals or alcoholic beverages.

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States schedule tax holidays for back-to-school shopping. (Bob Gathany / bgathany@al.com)

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The meals tax will remain in place during tax-free weekend. Pictured is a lobster dinner at the Anchor House Restaurant in Wilbraham. (Don Treeger / The Republican file photo)

Meals tax

The 6.25% Massachusetts meals tax and the local option are still in force and won't go away over the tax-free weekend. Meals had been exempted in previous years but were not included in the 2018 state law making the annual tax holiday permanent.

The sticking point had to do with the state's refusal to exempt alcohol and how that would make it difficult for restaurants to figure a check.

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Alcohol will continue to be taxed during the tax-free holiday. Pictured is a Key lime pie martini at Lulu's Pizzeria & Family Restaurant in Enfield. (Don Treeger / The Republican file photo)

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Sales tax will still be charged on cars. (File photo)

Cars and trucks

The weekend sales tax exemption doesn't apply to anything the consumer would have to register with the state. That means buyers will pay sales tax on cars, boats, motorcycles and the like. But not, for example, a lawnmower.

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Recreational marijuana will continue to be taxed during the tax-free weekend. This is a grow room at the INSA marijuana dispensary in Easthampton. (Don Treeger / The Republican file photo)

Dude, marijuana doesn't count? Bummer.

Marijuana and marijuana products are excluded from the tax-free weekend.

Marijuana is new to the list now that retail sale to adults is legal and the state has licensed recreational marijuana shops.

Massachusetts' tax on adult-use cannabis includes a 6.25% sales tax, a 10.75% excise tax, and up to a 3% local option tax for cities and towns.

All that adds up to a 20% tax.

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What about gasoline at the pump?

Motor fuels are subject to a separate state excise tax. You will still pay that excise tax this weekend.

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(AllisonCarey / The Plain Dealer)

What about clothing?

Massachusetts doesn't charge sales tax on clothing unless the price is over $175, according to the state Department of Revenue. For items over $175, shoppers pay tax on the difference — for example, someone buying a $200 coat pays tax on $25.

On the sales tax holiday, clothing between $175 and $2,500 won't be taxed. For items over $2,500, shoppers will pay tax on the total amount minus $175. For example, someone buying a wedding dress for $2,550 would pay tax on $2,375, according to the state Department of Revenue.

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(Allison Carey / The Plain Dealer)

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Appliance stores are busy during the tax-free weekend. Contractors Home Appliances in West Springfield is one of the stores looking forward to tax free weekend in Massachusetts. (Don Treeger / The Republican file photo)

Buying in bundles

When several items are offered for sale at a single price, the entire package is exempt if the sales price of the package is $2,500 or less, according to the state Department of Revenue.

Items that are priced separately and are to be sold as separate articles will qualify for the sales tax holiday exemption if the price of each article is $2,500 or less.

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School supplies are popular items during tax holiday weekends across the country. (Joe Songer / jsonger@al.com)

Examples of bundled products

A computer package including a CPU, keyboard, monitor, mouse and printer with a single sales price of $3,500 would not qualify for the sales tax holiday exemption because the single sales price of the package is more than the sales tax holiday threshold amount of $2,500.

If a customer purchases a personal computer for $3,000 and a printer for $200 — with the items priced and sold separately — the computer will not qualify for the exemption because the sale price is more than the tax holiday threshold. The printer, though, would qualify because it is under the limit.

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(Jeff Chiu / Associated Press file photo)

The exemption is figured by item. If you buy speakers, a stereo receiver and a turntable for more than $2,500 in one day, you get the tax exemption for items priced under $2,500.

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Provided photo

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Coupons and discounts

The purchase price is considered to be the price after a coupon or discount. So if the regular price is greater than $2,500 but you have a 25% off coupon that takes you under the limit, you get the exemption.

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Before you go shelling out big bucks on a fancy meal, the Massachusetts tax holiday doesn't quite apply to everything. Posted by MassLive on Monday, August 5, 2019

Shop now

Some consumers are going this week to pick out their purchases and write up their orders before the busy weekend. Those folks will qualify if they pay for the items on Saturday or Sunday. They can take delivery later.

What about internet sales?

Massachusetts collects sales tax on internet sales.

If customers order an eligible item over the internet on the sales tax holiday (that is, during Eastern Daylight Time), that item will qualify for the exemption, according to the state. And, like buying items at brick-and-mortar stores, customers don't have to take delivery during the tax-free weekend. They only have to order and pay for the item during the tax-free weekend.

What about layaway sales?

Layaways are not eligible for the sales tax holiday exemption.

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Lawnmowers, no matter what you do with them, will be tax-free during weekend. (Melanie Maxwell / AnnArbor.com)

Do rentals qualify?

Yes, the state says, if the items rented qualify for the exemption. This means cars and motorcycle rentals don't count.

The rental must be paid in full during the holiday weekend. But the rental can be for as long as 30 days.

Out of state, out of luck

Connecticut customers can't come to a Massachusetts store to buy, have the appliances delivered to Connecticut and still get the exemption. Retailers must charge Connecticut taxes if the appliances are delivered in Connecticut.

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Enfield Square Mall in Connecticut. (The Republican file photo)

What about Connecticut?

The Nutmeg State has its own tax-free shopping promotion during the week from Aug. 18-24. But Connecticut's exemption is only on clothing and shoes priced under $100.

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