The Great Texas 2008 Energy Star Sales Tax Holiday

Texas shoppers get a break from state and local sales and use taxes on purchases of certain energy efficient products from 12:01 a.m. on Saturday, May 24 through 11:59 pm on Monday, May 26, which is Memorial Day.

The products qualifying for the exemption are:

• air conditioners priced under $6,000, both 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

The Energy Star logo will identify products that qualify for the tax holiday

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 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 the items are both paid for and delivered to the purchaser during the exemption period; or 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. Layaway plans can be used to take advantage of the sales tax holiday.

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.

Charges for installation of qualifying items purchased during the sales tax holiday may qualify for exemption depending on whether the items are permanently attached to or installed in real property and whether the realty is residential or nonresidential.

Items that are free-standing or mobile, such as clothes washers, dehumidifiers, refrigerators, portable dishwashers and window or room air conditioning units are tangible personal property. If an item retains its identity as tangible personal property after installation, then installation charges billed by the seller of the item also qualify for the sales tax holiday exemption - even if the installation is performed after the holiday period is concluded.

Labor charges are not taxable on new construction and residential repair and remodeling jobsites. Therefore, no tax is due on charges for installing items such as ceiling fans, programmable thermostats or central air conditioning units in residential property or during a new construction project.

Sellers may not advertise or in any way promise to pay or not charge sales tax that is due on the sale of taxable items. Sellers may, however, advertise that tax is included in the sales price of the taxable items that they sell.

Copyright Environment News Service (ENS) 2008. All rights reserved.