Sales tax holiday set for Energy Star and WaterSense products

In the market for a new kitchen appliance? Want a new clothes washer or ceiling fan? Considering updating your bathroom with new faucet fixtures or toilet?
Or are you just thinking about buying some compact fluorescent light bulbs to replace the conventional bulbs throughout your house to save on electricity?
All those products and more will be sold sales-tax-free in Virginia during the Columbus Day holiday weekend of Oct. 8-11.
That’s during an annual sales tax holiday for purchases of products meeting the Energy Star and WaterSense qualifications, when certain energy-efficient appliances will be exempt from the Virginia sales tax.

Eligible products must be priced at $2,500 or less for each item.
They must also be purchased for noncommercial home use or for personal use.

WHAT’S EXEMPT?   
The exempt Energy Star items include dishwashers, clothes washers, refrigerators, air conditioners, ceiling fans, compact fluorescent light bulbs, and programmable thermostats that carry the Energy Star designation.
The exempt WaterSense items include bathroom sink faucets, faucet accessories and toilets.
In addition, retailers may choose to also absorb the tax on other items during the holiday period, but they are responsible for paying the tax on those items to the Department of Taxation.
Complete information on the Energy Star and WaterSense Sales Tax Holiday has been posted online at the Virginia Department of Taxation’s website, www.tax.virginia.gov.

GENERAL ASSEMBLY Enacts SALES TAX RATES & TAX-FREE HOLIDAYS    
Under Virginia law, most purchases are subject to both state and local sales and use taxes.
The tax rate is generally 5 percent of the cost price, with the rate on sales of food for home consumption set lower, at 2.5 percent.
A sales tax holiday is a temporary period of time during which purchases of certain items are exempt from the sales and use taxes.
Following legislation first enacted by the 2007 Session of the Virginia General Assembly, Virginia now has three annual sales tax holidays in each calendar year.
Next month’s upcoming sales tax holiday follows on the one last month for qualifying school supplies and clothing purchases.
That one takes place every year on the first full weekend of August (Friday, Saturday and Sunday).
The other tax-free holiday that takes place in Virginia will be held for at least the next two calendar years.  The current law provides for it to take place as a recurring event, beginning May 25 at 12:01 a.m. until 11:59 p.m. May 31.
But currently this holiday is set to expire in July of 2012.

Phyllis Cook
Staff reporter