Each year the state of Virginia honors a sales tax holiday for Energy Star and WaterSense qualified products. This holiday is observed between 12:01 on the Friday before the second Monday of October and ends at 11:59 PM the following Monday. These four days offer shoppers the opportunity to save money on many Energy Star appliances. The 2009 Energy Star holiday will take place Friday, October 9, 2009 through Monday, October 12, 2009.
Energy Star Qualified Products
An “Energy Star qualified product” is defined as a product that meets the energy efficiency guidelines developed by the United States Environmental Protection Agency and the United States Department of Energy and is authorized to carry the Energy Star label. In addition to saving the environment, many consumers benefit from savings related to their utility bills.
WaterSense Qualified Products
A “WaterSense qualified product” is defined as a product that has been certified as water-efficient by the WaterSense program which is sponsored by the U.S. Environmental Protection Agency. Such products are indicated by the WaterSense label.
Energy Star Products Eligible for the Sales Tax Exemption
Numerous items are exempt for state and local sales tax during the Energy Star and WaterSense sales tax holiday if it costs $2,500 or less. Not having to pay these taxes can make the task of shopping a little more rewarding for the budget-conscious consumer.
Examples of Eligible Energy Star Items
- Clothes washers
- Freezers and refrigerators
- Central air conditioners and room air conditioners
- Ceiling fans
- Programmable thermostats
Examples of Eligible WaterSense Items
- Bathroom sink faucets
- Faucet accessories
- Toilets
Energy Star and WaterSense Sales Tax Exemption Exclusions
Note that the exemption is not allowed for items that are rented during the period or purchased for use in a trade or business. For more detail about exempt appliances, please refer to the Virginia Department of Revenue’s sales tax FAQ page. Also provided in this guidance are answers to frequently asked questions about the Energy Star and WaterSense sales tax holiday as summarized below.
Participating Retailers
What types of stores participate in the Virginia sales tax holiday? All retailers must legally participate in the Energy Star sales tax holiday and not charge tax on eligible items.
Layaway Purchases
Are items purchased on layaway eligible for the sales tax exemption? Yes. Eligible items purchased that were placed on layaway prior to the sales tax holiday are exempt if the final payment is made during the tax-free period. Additionally, the sale of eligible items under a layaway plan are exempt from sales tax if the buyer chooses an item and the store accepts the order during the sales tax holiday, even if the item is delivered after the holiday period.
Rain Checks
Are goods purchased using rain checks eligible for the sales tax exemption? Yes, but only if the eligible item is delivered during the sales tax period.
Refund of Sales Tax
How does a buyer get a refund of sales tax if the store charged the wrong tax? If a retailer charges the wrong sales tax, a buyer must return to the retailer with a copy of the receipt to obtain a refund.
Internet, Mail Order, and Telephone Purchases
Do purchases made via the Internet qualify to be exempt from sales tax? Yes. In fact sales made online on the Internet, by mail order, telephone, or other non-storefront locations qualify for the exemption for eligible items. To qualify, the buyer must order and pay for the item during the sales tax period and the retailer must accept the order and take action to fill the order for immediate delivery.
Current Virginia Sales Tax Rates
Please visit the Virginia Department of Revenue website for the current sales tax rate.
Virginia Sales Tax Holiday for Back-to-school Supplies
Each year the state of Virginia honors a sales tax holiday for back-to-school items. This holiday is observed between 12:01 on the first Friday of August and ends at 11:59 PM on the following Sunday. These three days offer shoppers the opportunity to save money on many back-to-school essentials and other items. In 2009, the sales tax holiday will run from August 7th through August 9th.
References:
- Virginia Department of Revenue website
The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers.
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