If you’re looking to make some energy-efficient or water-conscious upgrades to your home, this is a great month to take the plunge. Texas holds its co-occurring Energy Star and water-efficient products sales tax holidays annually over Memorial Day weekend. This year, the sales tax reprieve will be in effect from Saturday, May 25, through midnight Monday, May 27. There’s no limit on the number of qualifying items you can buy, and no exemption certificate is required to buy items tax-free.
Any product that displays a WaterSense label is eligible to be purchased free of sales tax, whether its planned use is for personal or business purposes. Labeled items include faucets, showerheads and toilets. Certain other water-conserving products are also tax-free during the holiday weekend but only when bought for use at your residential property. These items include soaker and drip-irrigation hoses, moisture controls for sprinkler and irrigation systems, mulch, rain barrels, plants, soil and compost.
The Energy Star-labeled products that qualify for tax exemption include air conditioners (priced $6,000 or less), refrigerators (priced $2,000 or less), ceiling fans, lightbulbs, clothes washers, dishwashers and dehumidifiers.
Bear in mind that some Energy Star-labeled products do not qualify and are still taxable during the holiday, including water heaters, clothes dryers, freezers and stoves. Also, be aware that air conditioners and refrigerators purchased for prices higher than the allowable amounts will be taxed in full. The same caveat applies to delivery charges that increase an item’s total price beyond the cap. For example, if an Energy Star refrigerator costs $1,995 but has a $50 delivery charge, tax will be due on the total $2,045 amount.
For more information on how to take advantage of this year’s tax holiday, visit comptroller.texas.gov.