This Memorial Day weekend, Texans can save on sales tax on ENERGY STAR appliances using the state’s fifth annual sales tax holiday.
The state-wide promotion runs from May 28–30 and will help residents cut energy costs by allowing them to purchase one of the following ENERGY STAR–certified appliance upgrades without having to pay a single cent in sales tax:
--Air conditioners, up to $6,000
--Clothes washers, but not clothes dryers (ENERGY STAR doesn’t label clothes dryers because most use about the same amount of energy)
--Light bulbs, incandescent and fluorescent
--Programmable thermostats manufactured up to December 31, 2009 (ENERGY STAR no longer rates programmable thermostats, but any ENERGY STAR–rated programmable thermostats manufactured before January 1, 2010 that are still in stock are eligible) --Refrigerators, up to $2,000
What if I Want to Buy Online or Through a Catalog?
You can shop online or through a catalog and still qualify for the sales tax exemption as long as the ENERGY STAR–certified appliance is paid for and the retailer accepts the order between May 26–28. In such cases, the appliance may be shipped after May 28.
What About Out-of-Stock, Backordered and On-Order Appliances?
If the ENERGY STAR–certified appliance is backlogged, temporarily out of stock or on order by the retailer, you’ll still qualify for the sales tax exemption as long as you purchase the appliance between May 26–28.
How Does the Sales Tax Holiday Work With Layaway Plans?
You’ll be able to qualify for the sales tax exemption as long as you complete your order and the ENERGY STAR–certified appliance is accepted into layaway between May 26–28. You can also qualify for the sales tax exemption on an ENERGY STAR–certified appliance already in layaway if you make your final payment between May 26–28.
Are Delivery Charges Tax Exempt?
Some delivery charges will qualify for the sales tax exemption. Several factors determine the tax-exempt status of your order — including if you have a mix of eligible ENERGY STAR–certified appliances and non-eligible items and whether you are charged a flat delivery fee or not — so make sure to ask your retailer for more information on delivery charges before you place your order.
Are the Installation Charges for My New Appliance Also Tax Exempt?
Whether or not the installation of ENERGY STAR–certified appliances qualifies for the sales tax exemption is somewhat complicated and depends on several factors like the type of installation and the nature of the jobsite. For more information on the tax-exempt status of installations, contact the Texas Comptroller of Public Accounts, your installer or contractor.
Window on State Government, Texas Comptroller of Public Accounts, “ENERGY STAR Sales Tax Holiday Information for Sellers Memorial Day Weekend: May 26-28, 2012.”