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March 17, 2010

Missouri's Second Show-Me Green Sales Tax Holiday to Occur April 19-25

COLUMBIA - The director of the Missouri Department of Revenue today encouraged citizens considering buying major appliances to participate in Missouri's second Show-Me Green Sales Tax Holiday in April.

"It's appropriate that we begin this campaign for the Green Sales Tax Holiday today," said Alana M. Barragán-Scott.  "Green is the color associated with St. Patrick's Day, and green is the color of the state's annual sales tax holiday.  People can 'go green' by purchasing energy-efficient appliances, they can 'save green' when they don't have to pay the state sales tax and reap the benefits of lower utility bills, and appliance retailers can 'make green' when citizens come to buy appliances."

Barragán-Scott made her comments at Downtown Appliance Home Center in Columbia.  The Department of Revenue will also be promoting the sales tax holiday in Warrensburg and Belton later this week.

The Show-Me Green Sales Tax Holiday runs from April 19-25.  People who purchase new ENERGY STAR® qualified appliances in Missouri during the holiday will save at least 4.225 percent off the purchase.  The reduced price represents the elimination of the state's sales tax from the purchase.

Barragán-Scott 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.  Eight counties, 51 cities and 12 special districts (all listed below) have opted to participate in the holiday.  The director stressed, however, that citizens should take the time before next month's holiday to look for what is best for their needs.

"No matter where people shop, they will save at least 4.225 percent, and that's a significant savings," she said.  "However, people also need to know what kind of appliance is best suited for their home and what other potential savings are available.  Some manufacturers offer rebates on purchases of ENERGY STAR® appliances, and local appliance retailers sometimes offer special deals during the week of the tax holiday."

The Department of Natural Resources is also working with the U.S. Department of Energy to distribute rebates to Missourians who purchase selected ENERGY STAR® appliances.  The program is tentatively scheduled to begin April 19.  For more information on this program, go to http://www.dnr.mo.gov/transform/energizemissourirebate.htm.

This is the second year the Show-Me Green Sales Tax Holiday will be held.  The creation of the holiday was included in Senate Bill 1181 from 2008.  The sales tax holiday is especially timely for this year, the director said.

"During these challenging economic times, saving money is important to everyone," Barragán-Scott said.  "The Show-Me Green Sales Tax Holiday represents an ideal time to buy these appliances not only because they will be available at a reduced price, but - because the appliances are energy efficient - many people will also save money on their future utility bills."

The director stressed that the actual purchase of the appliance must take place during the sales tax holiday between April 19th and the 25th.  Any qualified appliance must also have the ENERGY STAR® label on it.  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

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.

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, conventional ovens, ranges and stoves. Lighting fixtures, office equipment, home electronics and other non-appliance ENERGY STAR®-labeled products are also not eligible for the sales tax exemption.

Although Columbia is in central Missouri, Barragán-Scott noted that out-of-state purchasers can benefit from sales tax holiday by shopping in cities that lie on the state's border.

"Our friends from Kansas, Illinois, Iowa and the other states that border Missouri can benefit from this sales tax holiday just as much as Missourians," she said.  "I encourage our out-of-state neighbors to come to Missouri between April 19th and 25th and get a good deal on an energy-efficient appliance."

Counties that opted to participate in the holiday and will waive their county sales taxes on qualified purchases are:  Adair, Cass, Gasconade, Johnson, Macon, Pettis, Ste. Genevieve and Washington.

Participating cities are:  Airport Drive, Arnold, Aurora, Belton, Bethany, Bowling Green, Brookfield, Butler, Cottleville, Desloge, Dexter, Fenton, Fredericktown, Fulton, Gladstone, Hannibal, Hazelwood, Hermann, Hillsboro, Ironton, Jackson, Kahoka, Kirksville, Lee's Summit, Lexington, Macon, Maryville, Memphis, Oak Grove, Osceola, Park Hills, Perryville, Platte City, Potosi, Raymore, Republic, Richmond, Rock Hill, Rock Port, Rolla, Salem, Salisbury, St. Elizabeth, Ste. Genevieve, Sunset Hills, Tarkio, Town & Country, Union, Warrensburg, Washington and Willow Springs.

Participating districts are:  Antioch Center Community Improvement District (CID) (Kansas City), Belton Town Centre Transportation Development District (TDD), Central Jackson (County) Fire Protection District, Columbia Mall TDD, Douglas Square TDD (Lee's Summit), Douglas Station TDD (Lee's Summit), Hawthorne Development TDD (Warrensburg), Raintree Lake Village TDD (Lee's Summit), Richardson Crossing CID (Arnold), Strother Interchange TDD (Lee's Summit), Town Plaza CID (Cape Girardeau) and U.S. Highway 65 & Truman Dam Access Road TDD (Warsaw). 

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Frequently asked questions about the Show-Me Green Sales Tax Holiday are answered at http://dor.mo.gov/tax/business/sales/taxholiday/green/faq.htm.

Contact Information

JoDonn Chaney, Director of Strategy and Communications
Phone: (573) 751-8222
Email: JoDonn.Chaney@dor.mo.gov