Texas – Sales Tax Holiday

SALT Report 1361 – The Texas Comptroller of Public Accounts has announced the dates for the annual sales tax holiday available on purchases of energy efficient products.  The sales tax holiday will take place Saturday, May 26, 2012, through Monday, May 28, 2012.

During this period, purchases of the following products will be exempt from sales and use tax:

  • Air conditioners priced at $6,000 or less
  • Refrigerators priced at $2,000 or less
  • Ceiling fans
  • Incandescent and fluorescent light bulbs
  • Clothes washers
  • Dishwashers
  • Dehumidifiers, and
  • Programmable thermostats
During the sale there is no limit to the number of qualifying items that can be purchased during the tax holiday and an exemption certificate is not required.
Internet and Catalog Sales
The tax-free holiday also applies to Internet and catalog sales of eligible products, provided that:
  • The item is paid for and delivered to the purchaser during the exemption period; or
  • The purchaser orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.

Delivery Charges

Delivery, shipping, handling or transportation charges connected to the sale of a qualifying item purchased tax free during the sales tax holiday also qualify for the exemption. Such charges are included as part of the sales price of qualifying products sold during the holiday whether separately stated or not.

However, if the delivery charge is a flat rate per package or delivery address and the amount charged is the same regardless of how many items are included in the package or delivery, for purposes of the exemption the total charge may be attributed to one of the items in the package rather than proportionately and separately allocated between the items.

Installation Charges

Charges for installation of qualifying items purchased during the sales tax holiday may qualify for exemption depending on whether the items are permanently attached to or installed in real property and whether the realty is residential or nonresidential.

Items that are free-standing or mobile, such as clothes washers, dehumidifiers, refrigerators, portable dishwashers and window or room air conditioning units are tangible personal property. If an item retains its identity as tangible personal property after installation, then installation charges billed by the seller of the item also qualify for the sales tax holiday exemption – even if the installation is performed after the holiday period is concluded.

Reporting Sales Tax on Items Sold During the Sales Tax Holiday

If you sold qualifying products tax-free during this year’s energy star sales tax holiday, don’t include receipts from those sales in Taxable Sales (Item 2) of your sales tax return.

If you were not required to and did not charge sales tax, then you are not required to remit any tax on those items.  However, if you collected tax, then you must send it to the state.

For Further Information:

Texas Comptroller of Public Accounts – Tax Publication 96-1331