Energy Star and Water Sense Sales Tax Holiday

There’s a  sales tax holiday this weekend for Energy Efficient Appliances  and Water Sense Products September 19 – 21, 2014 starting at 12:01 a.m.

Floridians will pay no sales tax on purchases of up to $1,500 of ENERGY STAR appliances and WaterSense products. However, a person is limited to a single purchase of each specific type of Energy Star or WaterSense product that has a sales price of $500 or more. There are no quantity limits for qualifying items with  a sales price less than $500.

Qualifying ENERGY STAR products|KitchAnn Style

Qualifying ENERGY STAR products:
Air purifiers
Ceiling fans
Clothes washers
Dehumidifiers
Dishwashers
Freezers
Light bulbs
Refrigerators
Room air conditioners
Swimming pool pumps
Water heaters
Qualifying WaterSense products:
Bathroom sink faucets
Faucet accessories
High-efficiency toilets and urinals
Showerheads
Weather- and sensor-based irrigation controllers

 

 

 

 

 

 

 

 

Dryers are not listed because they do not meet Energy Star qualifications. Installations Charges may be tax exempt too. It get’s a little tricky but if you purchase a qualifying product that does not become part of the home and remains tangible personal property when installed, the item plus the labor are exempt if their total is less than $1,500.

Example: An Energy Star window air conditioner unit for $350 plus $100 install. The $450 total purchase qualifies.

Example: A WaterSense toilet is sold by a contractor for $465 with installation for $125. The $590 total does not qualify.

If you want to buy a Service Warranty on your new Dishwasher, it too may be exempt. If the retail sale of an item is exempt from tax, the charge for a service warranty sold with the item is also exempt when the total is less than $1,500.

WaterSense products|KitchAnn Style

Understanding Coupons and Rebates.  The price of a qualifying item is not limited to the amount paid by a customer.

Example: The Energy Star refrigerator you want is $1,795. The retailer is offering 10% off. Your purchase of $1,615.50 qualifies for the first $1,500 to be exempt. You pay sales tax on the remaining $115.50

Example: You purchase an Energy Star freezer for $1,549. The manufacturer is offering an instant $50 rebate at the time of purchase. Although you pay $1,499, the price remains the same for the retailer. They will receive $1,499 from you and $50 from the manufacturer. The first $1,500 is exempt and you pay sales tax on the remaining $49.

If the retailer – not the manufacture;, were offering the rebate in the example above, the $1,499 purchase would have been tax exempt.

Computer-shopping-kitchen-studio-of-naples

If you like to shop on the internet the good news is that if your order is accepted within the holiday period for immediate delivery, it qualifies for exemption – even if it ships after the tax holiday ends.

Shipping and handling charges are part of your purchase total and follow the same exemption rules. If you purchase multiple items on a single receipt, the shipping and handling charges must be fairly assigned to each item to determine if an item is exempt during the holiday.

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