No Sale Tax On Energy Star Products
EL PASO — During Memorial Day weekend, Texas shoppers get a break from state and local sales and use taxes on purchases of certain energy efficient products.
The 2008 Energy Star sales tax holiday begins at 12:01 a.m. on Saturday, May 24, and ends at 11:59 p.m. on Monday, May 26 (Memorial Day).
The products qualifying for the exemption are:
– air conditioners priced under $6,000 (room and central units)
– clothes washers (but not clothes dryers*)
-ceiling fans, dehumidifiers, dishwashers, light bulbs (incandescent and fluorescent), programmable thermostats
– refrigerators priced under $2,000.
Qualifying products will display the Energy Star logo, which may appear on the appliance, the packaging or the Energy Guide label.
Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy.
Earning the Energy Star means a product meets strict energy efficiency guidelines set by these two federal agencies.
There is no limit on the number of qualifying items one can purchase during this sales tax holiday, and an exemption certificate is not required.
The tax-free holiday also applies to Internet and catalog sales of eligible products, provided that (1) the items are both paid for and delivered to the purchaser during the exemption period; or (2) the purchaser orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.
The retailer accepts an order when the retailer has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an “in date” stamp on a mail order and issuing a confirmation verifying the date the seller accepted the order. An order is considered “for immediate shipment” even if delivery or shipment may be delayed because of a backlog of orders or because an item is temporarily out of stock or on back order by the seller.
Layaway plans can be used to take advantage of the sales tax holiday. Layaway sales of eligible products qualify for the exemption when either the final payment on a layaway order is made and the merchandise is given to the customer during the exemption period, or the item is selected by the customer and the order is accepted into layaway by the retailer during the exemption period for immediate delivery upon full payment, even if delivery is made after the exemption period.
Delivery, shipping, handling or transportation charges connected to the sale of a qualifying item purchased tax free during the sales tax holiday also qualify for the exemption. Such charges are included as part of the sales price of qualifying products sold during the holiday whether separately stated or not. For example, assume a retailer sells an Energy Star-rated dishwasher tax-free during the sales tax holiday and charges the customer an additional fee for delivery. The entire amount billed to the customer for the purchase and delivery of the qualifying appliance is exempt from tax, even if the delivery charge is separately stated or billed after the sale.
