SALT Report 2276 – The Texas Comptroller issued a reminder that on Memorial Day weekend shoppers will be able to purchase certain energy efficient products tax free in Texas. The 2013 Energy Star sales tax holiday starts on Saturday, May 25, and ends on Monday, May 27.
The following Energy Star products qualify for the exemption:
- Air conditioners priced at $6,000 or less
- Refrigerators priced at $2,000 or less
- Ceiling fans
- Incandescent and fluorescent light bulbs
- Clothes washers
- Dehumidifiers, and
- Certain programmable thermostats
If you sell qualified energy efficient products tax-free during the sales tax holiday you do not need to include receipts from those sales in the Taxable Sales section of your sales tax return. When these items are sold you are not required to charge sales tax, therefore you are not required to remit any tax on these items. However, if you do collect tax during the sales tax holiday then you must remit it to the state.
The following are examples of how to report sales made during the sales tax holiday:
- During the sales tax holiday, an appliance store sells a dishwasher for $850 and does not collect tax. The appliance store should report the $850 in Total Sales (Item 1), but should not include the $850 in the Taxable Sales column.
- An appliance store sells a qualifying dishwasher for $850 and a non-qualifying dryer for $990 during the holiday. When the appliance store completes its sales tax return, the amount shown in Total Sales should be $1840, the total of all sales made during the reporting period. The amount shown in Taxable Sales should be $990, the price of the non-qualifying dryer.
The Comptroller’s bulletin also addresses the application of sales tax to Internet and catalog sales, layaway plans, delivery charges, and installation charges, as well as the manner in which retailers can advertise the sale.
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