Tuesday, April 12, 2011
Anyone thinking about buying an energy-efficient appliance, furnace or air conditioner might want to postpone the purchase a few days to qualify for a state sales tax exemption.
From Tuesday, April 19, through Monday, April 25, Missourians buying many Energy Star qualified appliances won’t pay a state sales tax during the Show-Me Green Sales Tax Holiday.
This is the third year of the sales tax holiday that was established by legislation approved by the Missouri General Assembly in 2008.
Although the state sales tax will be waived on qualified Energy Star appliances, city and county sales taxes will be collected on Energy Star qualified appliances in Callaway County and most other counties throughout Missouri.
The only Missouri counties participating in the Show-Me Green Sales Tax Holiday are Adair, Cass, Gasconade, Johnson, Macon, Moniteau, Nodaway, Ste. Genevieve and Washington.
Fulton and other Central Missouri cities are not participating in the sales tax holiday.
Even though some counties and cities are not participating in their share of the sales tax, the state sales tax of 4.225 percent will not be collected on Energy Star qualified appliances in Callaway and all other Missouri counties.
Energy Star labeled appliances that qualify for the sales tax exemption are clothes washers, refrigerators, freezers, dishwashers, water heaters, furnaces, air conditioners, and heat pumps.
The sales tax exemption only applies to the first $1,500 on each appliance. If an appliance costs more than $1,500, the regular sales tax rate is in effect for the purchase price above $1,500.
Although the legislation lists other appliances that are eligible for the sales tax savings, not all of the listed appliances have yet met Energy Star guidelines for conserving energy.
Examples of appliances that currently are not eligible for the Energy Star sales tax exemption are clothes dryers, trash compactors, conventional ovens, ranges and stoves.
Some other products that qualify for Energy Star designations are not eligible because they are not specifically listed in the legislation creating the tax break. These include lighting fixtures, office equipment and home electronics.
Andrew Loeffler, a Sears sales representative at the Fulton store in the Commons shopping center, said the local store is offering a wide variety of Energy Star appliances. “Qualifying appliances for the state sales tax exemption for the week of April 19 to 25 include clothes washers, refrigerators, freezers, dishwashers, water heaters, and air conditioners,” Loeffler said.
Bud Campbell, a Garrett & Campbell owner, said his store in Fulton at 523 Nichols St. has Lennox air conditioners, furnaces and heat pumps that will qualify for the Energy Star sales tax exemption.
Alana M. Barragan-Scott, director of the Missouri Department of Revenue, said the actual purchase of qualified appliances must take place during the sales tax holiday period between April 19 and April 25.
Barragan-Scott noted that out-of-state purchasers can benefit from Missouri’s sales tax holiday by shopping in Missouri.
“Our friends from Kansas, Illinois, Iowa and other states that border Missouri can benefit from this sales tax holiday just as much as Missourians,” Barragan-Scott said.
“No matter where people shop in Missouri, they will save at least 4.255 percent, which is the state’s share of the sales tax, and that’s a significant savings,” she said. “However, people also need to know what kind of appliance is best suited for their homes and what other potential savings are available.”
She noted that some manufacturers also offer rebates on purchases of Energy Star appliances. Retailers sometimes offer special Energy Star deals during the week of the tax holiday.
Any qualified appliance must have the Energy Star label on it. Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy. The program allows manufacturers of appliances to voluntarily label selected appliances if they meet certain government-imposed criteria.