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April 17, 2009

First Show-Me Green Sales Tax Holiday Makes Its Debut April 19-25

Citizens will be able to save money, conserve energy and stimulate the economy by participating in the first Show-Me Green Sales Tax Holiday, which runs Sunday, April 19, through Saturday, April 25.

The holiday means a savings of at least 4.225 percent to people who purchase new ENERGY STAR ® qualified appliances in Missouri during the holiday.  The reduced price represents the elimination of the state’s sales tax from the purchase.

Gov. Jay Nixon noted the many benefits of the new tax holiday.

“Consumers win because they will get a discount on some appliances, and they will save money on their future utility bills,” Gov. Nixon said.  “Appliance dealers win because they will sell more products and get much-needed foot traffic into their stores.  And everyone wins when we improve our environment by using energy more efficiently.  It’s a win-win-win situation.”

The creation of the Show-Me Green Sales Tax Holiday was part of legislation (Senate Bill 1181) approved by the Missouri General Assembly in 2008.  This is the first year the holiday has been implemented, and it will be held the same time in future years.

Karen King Mitchell, director of the Missouri Department of Revenue, noted that several local governmental entities have also opted to participate in the holiday.  This means that some purchases will be exempt not just from the state sales tax, but also city, county and special district sales taxes.  Nine counties, 58 cities and eight special districts (all listed below) have opted to participate in the holiday.

“Anyone who buys a qualified appliance in Missouri will be exempt from paying the state sales tax,” Mitchell said.  “But people can obtain maximum savings in towns or cities where the local governments have decided to participate in the holiday.  In some cities, the tax savings jump from 4.225 percent to nearly 8 percent.”

“During these tough economic times, saving money is important to everyone,” Mitchell added.  “The Show-Me Green Sales Tax Holiday represents an ideal time to buy energy-efficient appliances because you can get them at a reduced price and also save money on your future utility bills.”

Mitchell stressed that to qualify for the tax savings, the appliances have must have the ENERGY STAR label on them.  ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy.  The program allows manufacturers of appliances to voluntarily label selected appliances if they meet certain criteria. The goal is to promote appliances that perform as well or better than similar appliances while using less energy.  The program has saved businesses and consumers billions of dollars since its inception in 1992.

ENERGY STAR-labeled appliances that qualify for the sales tax exemption are:

  • Clothes washers
  • Refrigerators
  • Freezers
  • Dishwashers
  • Water heaters
  • Furnaces
  • Air conditioners
  • Heat pumps

Although SB 1181 listed other appliances eligible for the sales tax savings, not all appliances have met ENERGY STAR guidelines.  Examples of appliances NOT eligible for the sales tax exemption are clothes dryers, trash compactors and conventional ovens. Lighting fixtures, office equipment, home electronics, televisions and other non-appliance ENERGY STAR-labeled products are also not eligible for the sales tax exemption since they are not specifically listed in SB 1181.

The sales tax exemption only applies to the first $1,500 on each appliance.  If an appliance costs more than $1,500, the regular sales tax rate is in effect for any of the purchase price above $1,500.  The purchase of the appliance must also be made during the sales tax holiday, even if delivery of the appliance is made after April 25.

Gov. Nixon also noted that Missouri citizens are not the only ones who can benefit.

“I would encourage our neighbors in Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska to shop in Missouri April 19th through the 25th and take advantage of the great savings this holiday provides,” he said.

Counties that have opted to participate in the holiday and have eliminated their county sales taxes on qualified purchases are:  Adair, Crawford, Daviess, Gasconade, Johnson, Morgan, Pettis, Ripley and Ste. Genevieve.

Participating cities are:  Airport Drive, Arnold, Aurora, Ava, Bethany, Bowling Green, Branson West, Brookfield, Butler, Carrollton, Cottleville, Dardenne Prairie, Desloge, Dexter, Fenton, Fredericktown, Fulton, Gladstone, Hannibal, Hazelwood, Hermann, Hillsboro, Ironton, Jackson, Kahoka, Kansas City, Kirksville, Lee’s Summit, Lexington, Macon, Marble Hill, Maryville, Memphis, Mexico, Osceola, Overland, Pacific, Perryville, Platte City, Raymore, Republic, Richmond, Rock Hill, Rock Port, Rolla, Salem, Salisbury, St. Charles, Ste. Genevieve, Sunset Hills, Tarkio, Town & Country, Union, Unionville, Warrensburg, Warsaw, Washington and Willow Springs.

Participating districts are:  Antioch Center Community Improvement District (CID) (Kansas City), Central Jackson Fire Protection District, Independence Events Center CID, Joachim-Plattin Ambulance District (Jefferson County), Performing Arts CID (Kansas City), Phoenix Center CID (Washington, MO), South Metropolitan Fire Protection District (Raymore), and Town Plaza CID (Cape Girardeau).

Additional information regarding the Show-Me Green Sales Tax Holiday can be obtained at http://dor.mo.gov/tax/business/sales/taxholiday/green/ or e-mail us at: salesuse@dor.mo.gov.