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Virginia: October 2014 Sales Tax Holiday


 Drying clothes this way is always tax-free in Virginia.

 

Virginia will have a sales tax holiday for certain energy efficient products from 12:01 a.m. on October 10 through midnight on October 13, 2014. The Virginia October Sales Tax Holiday for Energy Star and WaterSense Qualified Products was recently extended through July 2017.

The tax-free period applies to:

  • Products affixed with an Energy Star or WaterSense label;
  • Products costing $2,500 or less; and
  • Products purchased for noncommercial or personal use.

Qualifying Energy Star products:

  • Air conditioners
  • Ceiling fans
  • Compact fluorescent light bulgs
  • Dehumidifiers
  • Dishwashers
  • Refrigerators
  • Washers
  • Washing machines

Qualifying WaterSense products:

  • Bathroom sink faucets
  • Faucet accessories
  • Landscape irrigation controllers
  • Showerheads
  • Toilets
  • Urinals

The fine print

Clothes dryers and freezers sold on their own are not eligible for the Virginia tax-free period. However, when non-eligible products are sold together, as a single unit, with qualifying merchandise, “the full unit will qualify for the Energy Star and WaterSense Sales Tax Holiday, provided the price of the full unit does not exceed $2,500.” Examples include stackable washer/dryer combinations and refrigerator/freezer combinations.

But wait! “If an item qualifying for the exemption is sold as a package with an item that does not qualify for the exemption, such as a separate washer and dryer, sold as a set, the full package price will be subject to the sales tax, even if the collective price of the items falls below the Energy Star Holiday required threshold cost.”

Both shoppers and retailers are advised to visit the Virginia Department of Taxation’s October Sales Tax Holiday webpages for additional fine print. During sales tax holidays, it is essential that sales tax is not be collected on qualifying items but collected on taxable non-qualifying items.

Do you sell qualifying products in Virginia? Automated sales tax software ensures businesses collect and remit the proper sales tax in all states where they do business. Learn more.

photo credit: Shira Golding via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.