My company owns an apparel store in Massachusetts. We sell bathing suits and various swimming accessories. I'm trying to understand if we should be charging sales tax on all of our merchandise. Can you explain?

ANSWER

The BIDaWIZ Team's Answer:

In the state of Massachusetts, clothing is generally exempt from the sales tax. However, sellers must charges sales tax on any individual clothing item that costs more than the $175 exemption. Thus, if a bathing suit costs $250, you would need to collect sales tax of $4.68 or 6.25% on the $75 difference. In addition, please note that bathing caps used for swimming are subject to sales tax. Thus, if a customer purchases both a suit and a swimming cap, you would be obligated to bifurcate the purchase as part of it is subject to sales tax. This is referenced in Massachusetts Law Part I, Title IX, Chapter 64H.