EagleTribune.com, North Andover, MA

Merrimack Valley

Tax holiday keeps local stores busy

By Crystal Bozek
Staff Writer
Published: August 17, 2008

It was necessity that drove Tara Silva out to the stores yesterday. She was just lucky that it happened to be a tax-free holiday weekend.

Silva's air conditioner broke on Friday.

"I probably saved like $25," the North Andover resident said as she loaded the box in her pickup truck outside Home Depot in Methuen. "It doesn't seem like a lot, but I wasn't even expecting to spend anything, so at least I saved something."

This is the fifth year in a row that Massachusetts has held a "tax-free holiday weekend," during which customers can avoid the 5 percent sales tax on most goods under $2,500, except for meals, gas, tobacco products, cars and boats.

The tax holiday continues today.

Across the state, business owners and lawmakers are waiting to see if the tax-free lure will boost sales at some businesses like it has in past years. If yesterday was any indication, things are looking good.

Dick Dube, owner of Dick's TV Inc. in Methuen, said he sold as many televisions yesterday as he typically sells in a month.

"It was a tiresome day," he said. "We did very good, though — about as good as last year. People kept calling, asking if I was open tomorrow, and I said, 'No, you have to come in today.' It was packed."

In some places, people were lining up to purchase large-screen televisions, kitchen appliances, home improvement equipment and laptop computers, having waited for this weekend like they do the day after Thanksgiving or the weekend after Christmas.

But here in the Merrimack Valley — a stone's throw away from tax-free New Hampshire — not everyone was buying into the 5 percent savings.

"I live right down the street from New Hampshire," Methuen resident Dylan Goddard said, laughing, after shopping for books at Borders. "If I want something big, I don't have to wait for a holiday."

Still, the bargain-hunters were out in droves despite yesterday afternoon's torrential rain, with some retailers trying to sweeten the tax-free deal with added savings.

Linda Beaulieu of Haverhill was out looking for school supplies for her children while they spent the day at Chuck E. Cheese with their dad.

"I figured I'd get this out of the way," she said. "I still have to pick up some clothes, but they're always tax free."

What you should know heading to the stores today

r The state's 5 percent sales tax will be waived for most goods $2,500 or less.

r Clothing is always tax-free.

r Motor vehicles, meals, gas, airline tickets and tobacco products remain taxable.

r Layaway items do not qualify.

r Bundled goods, like computer packages, only qualify for the tax exemption if the price of the entire bundle is less than $2,500.

Photos