ENERGY STAR® Sales Tax Holiday
You can buy certain energy-efficient products with the ENERGY STAR logo tax free during the ENERGY STAR Sales Tax Holiday. There is no limit on the number of qualifying items you can buy, and you do not need to give an exemption certificate to the seller during this sales tax holiday.
This year’s holiday period begins Saturday, May 27, and goes through midnight Monday, May 29 (Memorial Day).
ENERGY STAR Products Qualifying for Tax Exemption
You can buy the following items tax free during the holiday if the items display the ENERGY STAR logo:
- air conditioners (with a sales price of $6,000 or less)
- refrigerators (with a sales price of $2,000 or less)
- ceiling fans
- incandescent and fluorescent light bulbs
- clothes washers
Certain Additional Charges Are Part of the Sales Price
Delivery, shipping, handling and transportation charges are part of the sales price. If the ENERGY STAR item being purchased is exempt, the delivery charge is also exempt. Consider these charges when determining whether an item can be purchased tax free during the holiday.
For example, you purchase an ENERGY STAR refrigerator for $1,995 with a $50 delivery charge, for a total sales price of $2,045. Because the total sales price of the refrigerator exceeds the $2,000 cap for refrigerators, tax is due on the $2,045 sales price.
Layaway sales of eligible products qualify for the exemption when:
- the customer makes final payment and receives the merchandise during the holiday period or
- the customer selects an item and places it on layaway during the holiday for immediate delivery upon full payment, even if delivery is made after the holiday ends
A person performing work under a contract for new construction or for residential repair and remodeling is a contractor. See Rule 3.291 – Contractors. A person repairing or remodeling nonresidential property is a taxable service provider. See Rule 3.357– Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance.
Contractors and taxable service providers can buy ENERGY STAR products tax free to keep in inventory. An exemption or resale certificate is not required.
Contractors and taxable service providers can sell ENERGY STAR products tax free that are incorporated into real property under a separated contract during the holiday.
Examples of products incorporated into real property include central air conditioning units, ceiling fans and built-in appliances such as dishwashers. This exemption applies to both residential and business customers.
For more information, contact us at Tax Help or call 1-800-252-5555.