Sales tax holidays for water-efficient and ENERGY STAR products set

Graphic courtesy of Texas Comptroller

Certain Water-Efficient Products and ENERGY STAR products will be tax free during the 2018 Sales Tax Holiday Saturday, May 26 through Monday, May 28. 

The Texas Comptroller’s office estimates shopperswill save about $10.7 million in state and local sales tax during the Memorial Day weekend sales tax holidays.

“Saving energy and water is especially important with Texas’ hot summers,” Texas Comptroller Glenn Hegarsaid. “Much of our state is already in drought, and we know triple-digit temperatures are just days away. The ENERGY STAR and Water-Efficient Products sales tax holidays can help all Texans save money now and natural resources later in the hot, dry summer season.”

There is no limit on the number of qualifying items you can buy, and you do not need to give the seller an exemption certificate to buy items tax-free. During the holiday you can you can buy, rent or lease certain ENERGY STAR-labeled items tax-free. Some of these items include air conditioners with a sales price of $6,000 or less, refrigerators with a sales price of $2,000 or less and dishwashers. Programmable thermostats are also available however they will need to have had an ENERGY STAR label before Dec. 31, 2009. All products with a WaterSense label or logo will be considered tax-free. Some non-labeled water-conserving products are also tax-free including mulch, rain barrel and much more. However unlike WaterSense-Labeled products, non-labeled items are only exempt from tax when it is purchased for residential use. 

Delivery, handling and other similar charges are a part of the sales price, meaning these costs will need to be factored into refrigerators ands air conditioners (because of the price cap) before they are considered tax-free. If the item purchased is tax-free then the additional costs of delivery, handling, transportation and installation of freestanding items will also be tax-free.

For more information visit comptroller.texas.gov/taxes. 

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