Taxable product categories in Massachusetts include: These classifications require businesses to accurately identify taxable items and apply the correct sales tax rate, ensuring compliance and avoiding penalties. Proper classification affects pricing strategies, inventory management, and tax reporting processes, enabling businesses to maintain accurate financial records and comply with state tax laws. - Tangible Personal Property: Clothing (over $175), electronics, appliances, furniture. - Prepared Foods and Meals: Restaurant and take-out meals. - Alcoholic Beverages: Beer, wine, spirits. - Tobacco Products: Cigarettes, cigars, other tobacco products. - Motor Vehicles and Boats: Cars, motorcycles, boats. - Digital Goods and Services: E-books, music downloads, software, SaaS. - Utilities and Energy: Electricity, gas for non-residential use. - Rental Services: Equipment, vehicles, vacation rentals. - Construction Materials: Building supplies. - Certain Educational Supplies: Textbooks and specific materials.