CCH Tax Day Report
The Texas sales tax holiday for purchases of energy-efficient appliances and water-efficient and water-conserving products will take place during the Memorial Day Weekend, from May 27 (Saturday) through May 29, 2017 (Monday).
Energy Star Products
The following energy-efficient products that display the Energy Star logo can be purchased tax free: qualified air conditioners priced at $6,000 or less; refrigerators priced at $2,000 or less; ceiling fans; fluorescent light bulbs; dishwashers; dehumidifiers; and clothes washers (clothes dryers are not included). More information is available at https://comptroller.texas.gov/taxes/publications/96-1331.php.
Water-Efficient and Water-Conserving Products
Water-efficient products that display a WaterSense® label or logo can be purchased tax free for personal or business use. These include showerheads, sink faucets, and high-efficiency toilets. Contractors, landscapers and other service providers can buy WaterSense products tax free to keep in inventory.
Also exempt are water-conserving products when purchased for residential use to conserve or retain ground water, recharge water tables, or decrease ambient air temperature (limiting water evaporation).
Examples of water-conserving products include: soaker or drip-irrigation hoses; moisture controls for a sprinkler or irrigation system; mulch; rain barrels; permeable ground cover surfaces that allows water to reach underground basins, aquifers or water collection points; plants, trees and grasses; water-saving surfactants; and soil and compost.
Water-conserving products can only be bought for personal residential use. Since the exemption does not apply to water-conserving products used for business, lump-sum contractors cannot buy water-conserving products tax free to keep in inventory until ready for use in new or existing residential property or in new commercial property. Lump-sum contractors must continue to pay tax on these items.
A complete list of eligible items can be found at https://comptroller.texas.gov/taxes/publications/98-1018.php, http://comptroller.texas.gov/taxinfo/taxpubs/tx98_1018.html.
The complete newsletter is available at https://www.comptroller.texas.gov/taxes/.
Tax Policy News, Texas Comptroller of Public Accounts, May 2017