Harbor ASI
Deliverable 02 · Verified

Product Taxability Matrix

Every product category, in every state where Hearthstone has nexus, classified as taxable / exempt / partial — with the controlling citation, the rate, and the strongest counter-argument an auditor could raise. Click any cell for the proof. Harbor reports “cannot prove” where no controlling authority exists rather than guessing.

736 determinations465 well-settled271 judgment calls (with counter-arguments)56 flagged <85% confidence
CategoryALAZARCACOCTDCFLGAHIIDILINIAKSKYLAMEMDMAMIMNMSMONENVNJNMNYNCNDOHOKPARISCSDTNTXUTVTVAWAWVWIWY
Furniture21.0%
Bedding & Bath Linens17.0%
Kitchen Electrics & Appliances12.0%
Cookware & Tabletop10.5%
Home Décor & Wall Art9.0%
Storage & Organization7.5%
Candles & Home Fragrance5.5%
Outdoor & Patio5.0%
Loungewear, Robes & Slippers3.5%
Gourmet Food & Snacks2.2%
Candy & Confections1.3%
Gift Cards2.5%
Shipping & Delivery Charges1.8%
Protection Plans (optional)1.2%
In-Home Design Services0.6%
Assembly & Installation0.4%
TTaxableEExemptPartial / capped?Cannot prove <85% confidence
Massachusetts

Loungewear, Robes & Slippers

Proved
Partial6.25% effective
Determination

Massachusetts exempts clothing only up to $175 per item; the portion of any item's price above $175 is taxable. Most Hearthstone loungewear SKUs fall under the cap and are exempt; premium robes above $175 are partially taxable.

Authority
§ G.L. c. 64H § 6(k) — first $175 per item exempt
⚖ Auditor's counter-argument

An auditor may assert the threshold applies per transaction rather than per item, or that bundled robe-and-towel sets are taxable in full.

Hearthstone's rebuttal

Massachusetts applies the exemption per item, not per invoice (G.L. c. 64H § 6(k) — first $175 per item exempt). Bundled sets must be itemised so the apparel component retains its exemption; Hearthstone's POS itemises at the SKU level.