How to shop certain appliances, water conservation products tax-free

If you’ve had your eye on a new shower head for your bathroom or upgrades to your sprinkler system, you can save money during the Texas Water-Efficient Products Sales Tax Holiday. Consumers can also save the sales tax on certain Energy Star appliances this weekend.

The sales tax holiday begins on Saturday, May 25, and lasts through Memorial Day on Monday, May 27. Read on for the rules consumers need to know.

WATER CONSERVATION ITEMS

You may be more familiar with the annual Back-to-School Sales Tax Holiday in August, but the water efficiency holiday has been around nine years. It falls on Memorial Day weekend, giving consumers a small break on local and state sales taxes.

The Texas Comptroller’s office said any items with a WaterSense label are tax-free for business or residential use. You can find a list of WaterSense products, from toilets to outdoor irrigation controllers, here.

You can also save the sales tax on other items planted or installed to conserve water. Unlike WaterSense items, these are tax-exempt when purchased for residential property only. The Texas Comptroller’s office lists examples including a soaker or drip-irrigation hose, rain barrel, mulch, plants, trees, grass, soil, and compost.

“We all know in Texas, those hundred-degree days hit fast and furious and they last well into September, October. This is the weekend to replenish those supplies that you might have and save money,” Texas Comptroller of Public Accounts Spokesperson Kevin Lyons said.

According to the Texas Comptroller's Office, stores apply the sales tax exemption automatically.

That includes online retailers. The comptroller’s office said consumers get the sales tax break if the retailer takes payment during the sales tax holiday – even if the item is delivered after the holiday ends.

Keep in mind, that retailers typically wouldn’t charge a consumer until the item ships. Kevin Lyons explained: As long as the retailer charges your card during the sales tax holiday, consumers should get the tax savings. If a consumer orders something during the eligible period but the card isn’t charged until the item is shipped after the sales tax holiday, a consumer will not get the tax savings.

You can read more from the comptroller’s office here.

ENERGY STAR SALES TAX HOLIDAY

Certain Energy Star appliances are also tax-free, including refrigerators that cost $2,000 or less, air conditioners with a sales price of $6,000 or less, ceiling fans, washing machines, dishwashers, and dehumidifiers. There are Energy Star appliances that would not qualify for the sales tax exemption – including attic fans, freezers, and clothes dryers. You can read more about the items eligible for the sales tax break holiday here.

Delivery and shipping charges are part of the item's sales price. If you're considering an item with a price cap, like a refrigerator, the delivery charge could put you over the cap. As the comptroller's office explains: if you buy a qualifying refrigerator for $1,995 plus a $50 delivery charge, the total sales price would exceed the $2,000 cap. That would mean the sales tax is due for the entire $2,045 sales price.

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