Don't Mess With Taxes

Attention West Virginians! If you need a new refrigerator then you can pick one up anytime between now and Nov. 30 and not have to pay state sales tax on the appliance.

The Mountaineer State's third Energy Star Sales Tax Holiday began Sept. 1 and runs through Nov. 30.

During the three-month sales tax holiday, West Virginian shoppers won't have to pay the state's 6 percent sales and use tax on any appliance that:

• Has been designated as an Energy Star product, 
  
• Costs $5,000 or less, and 
  
• Is for noncommercial home or personal use.

Watch out for purchase details: Shipping and handling charges, however, might be taxable. They also could determine whether the appliance you want is tax-free.

Delivery charges that are not counted in the price of the product are taxable if they are separtately stated on the bill. So if you buy a $4,975 refrigerator that has a clearly noted  $50 delivery charge, the ice box itself is sales-tax free, but you'll pay sales tax on the $50.

And don't try to get out paying tax on the shipping fee. It could cost you even more.

If that $50 delivery cost is not specifically delineated on your receipt or purchase order, it will be counted as part of the appliance's price.

But that then means that tax officials would view the fridge's overall cost as $5,025 and that makes it too expensive to qualify for the no-sales-tax treatment.

The delivery price taxation rules and other guidelines concerning the energy-efficient appliances tax holiday are included in the West Virginia Department of Revenue official notice.

Related posts:

• Tax-free washers and weapons
• Show Me sales tax savings
• Tax holidays: Bonanzas or bogus?
• Sales Tax Holidays 2010
• West Virginia tax tidbit: retiree income exemptions

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