Is there tax on lottery tickets?

Well, it's almost that time of year again. A time when we as retailers love what we do for a living. A time for wallets to empty and stuff our coffers. A time when even the stupidest question is answered with a smile because we know you're going to drop a chunk of change. A time where every person feels a certain sense of entitlement and satisfaction that they can stick it to the man.
No, not Christmas.
Not back to school time either.

Tax free weekend.

For those of you unfamiliar with this great and glorious time, allow me to educate you. Here in the Commonwealth of Massachusetts (as well as several other, glorious states) state sales tax is lifted in order to jump start the economy. All single, tangible items costing less than $2,500 and purchased for personal use are eligible under the tax-free promotion. However, like all good things, there are a few catches. Any items purchased by corporations over the weekend for business use remain taxable items. Alcoholic beverages fall under the tax-free exemption, but all sales of motor vehicles, boats, meals, gas, and tobacco products do not. Now you may be saying to yourself "Who cares?" I do. Before the weekend hits, my store is usually a ghost town. It's a great time to catch up on a lot of work. People are just waiting for me to open the store on Saturday morning so they can start shopping. It's almost like the beginning of the marathon. I feel like I should be standing at the front door, looking at my watch and holding a starting pistol in the air.

"Ladies and gentlemen, start your carriages!"

That'd be sweet. But the people who are in the store that week typically don't buy anything. They just window shop and ask lots of questions. You see, in the week leading up to the tax holiday, I will be hit with so many senseless and imbecilic questions, all I can do is smile. In Massachusetts, the state sales tax is 6.25%. It used to be 5%. For some reason, many people can't seem to add that extra 1.25% and figure out how much tax money they will be saving. I try to tell people its easy: you save $6.25 for every hundred you spend. Simple, right? No. And when people ask me how much they are going to save this weekend I can give them that simple answer:

Him: "How much will I save on this item?"

Me: "Well, its $149.99 so you'll save $6.25, plus another $3 and some change, so about $9.50."

Now I just did some simple math to arrive at my answer but this guy looked at me like I was fuckin' rain man. Definitely $9.50, definitely $9.50

Him: "Are you sure?" No pal I just made the numbers up.

Me: "Yes, sir. You know roughly $9.50, it will actually be a little less than that I just rounded it off." If you want I can get my abacus and we can do it again.

Him: "Shouldn't it be more than that?" Would someone get my abacus please.

Me: "You'd think so, but that's what you're going to save."

Him: "Well, better in my pocket than theirs!" You betcha, and better to have your $149.99 in my pocket than yours!"

But I don't judge. Not everyone has a mind for numbers. But, like that guy, everyone likes sticking it to the government. Even though their potential is limited. Now, if you really wanted to make a splash you'd make a bunch of small purchases under $2500. You see, because the tax-free exception relates to single items, you will not be taxed on the overall sum of your purchases. Therefore, if you buy a TV for $2,400, a receiver for $800, and a new cell phone for $199, you will still pay no tax over the weekend. Sales tax on $2400 would be $150. Now that's a substantial savings. However, the average person isn't going to make a bunch of big purchases. In fact, the average dollar amount spent is roughly $300 per shopper over the course of the weekend. That's $18.75 per person. Not even twenty bucks!
Taxes are nothing new. But when this time of year rolls around everyone seems to check their brain at the door and forgets what taxable and what isn't. People get so confused. Take a few examples. Sales of food for human consumption (not pet food, sorry Fido - pay your taxes), other than meals sold by a restaurant, generally are tax-exempt. Sales of individual items of clothing costing $175 or less also generally are exempt. Sales tax is due only on the amount over $175 per item. Good thing that doesn't apply to food, that'd be one wicked big lobster! But still I will hear: "Is there tax on this?" Because it's easier to ask me than to know it for yourself. And when I have to say, "yes", it's also easy to get pissed at me like I just kicked you in the nuts.
But the real fun comes after the weekend has occurred. That's when you get a ton of people coming in thinking they can still pay no taxes because they couldn't make it in over the weekend. This is the time when people can do math in their heads like a savant. And their stories are priceless.

Her: "But I couldn't come in this weekend so couldn't you just give me no taxes now?"

Me: "Unfortunately, ma'am, the tax holiday has ended and we can no longer lift the sales tax."

Her: "Come on, it's only $3.75. I had to go to a funeral this weekend." Wow, two day funeral...bummer.

Me: "I'm sorry ma'am, but the regulation is pretty strict. The government expects me to pay those taxes so I have to collect them from your purchase. There's not much I can do."

Her: "Oh you can, you just don't want to!" Ding!Ding!Ding! Now you're getting it!

It is unfortunate when someone misses out on a deal, but rules are rules. And, if I lift them for her, I have to lift them for everyone. Pretty soon it will be total anarchy. Left is up, black is right, the shoe is on the other glove, dogs and cats living together...mass hysteria! She should actually feel lucky. Rhode Island does not have a tax free weekend. Neither does Vermont or Maine...

Don't tell her about New Hampshire.