If you’ve been needing a new AC unit or refrigerator, this Memorial Day weekend is the time to buy in Texas. The state is once again giving Texas shoppers (and that means all of us at Square Cow Movers and All of Our Texas Friends) a break by holding the ENERGY STAR® Tax Holiday.
When and What You Can Buy Tax-Free This Memorial Day
The tax break start at 12:01am on Saturday May 25th and end at 11:59pm Monday May 27th. Both in-store and online purchases made during that time period will be eligible for the tax exemption as long as they are purchased from a Texas-based business or one that does business in Texas.
*Important Note About Online Sales: the purchase must be made AND accepted by the seller for immediate delivery within the tax holiday period in order for items to qualify.
Eligible Tax-Free Items Include:
- Incandescent and fluorescent light bulbs
- Ceiling fans
- Programmable thermostats
- Clothes washers
- Refrigerators priced at $2,000 or less
- Air conditioners priced at $6,000 or less
You might be wondering why water heaters and clothes dryers aren’t on the list. That’s because only ENERGY STAR rated items listed in the Tax Code Section 151.333 qualify.
Delivery and Installation Charges – This is Where it Can Get Tricky
Anyone who’s bought an appliance or system like those on the list above know that there are often fees beyond the actual equipment – and Texas officials have accounted for them. Delivery and Installation charges may affect 1.) whether you get the tax break at all and 2.) taxes you have to pay on those additional costs.They are serious about the monetary limits on AC units and refrigerators. If delivery and installation charges are a part of the cost it could push these items above their limits and make them ineligible for the tax break. So you have to look beyond the sticker price before selecting an item. Ask the sales rep to run up the total for the item and see what you can do about lowering that if it does go too high.
Things to Note on Delivery and Installation:
- If a flat rate for delivery is charged for multiple items (even taxable ones) the entire cost of the delivery is tax-free.
- If there are delivery fees per item those need to be listed separately so you can get a tax break of the delivery costs of qualifying items.
- Installation fees for free-standing items are tax-free even if installation occurs after the tax holiday.
- Installation of permanent fixtures which are an improvement to residential real property, like an AC unit, is usually tax free even outside the tax holiday.
- If separately stated, installation fees for permanent fixtures, which are an improvement to residential real property, will not be considered part of the sale and therefore won’t push the price over the maximum limit.
If you need one of the items listed don’t miss your opportunity to save potentially hundreds of dollars this Memorial Day.
Original Source: https://squarecowmovers.com/take-advantage-of-the-energy-star-tax-free-weekend-this-memorial-day
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