Don't Mess With Taxes

Missouri taxpayers who have federal tax refunds burning holes in their pockets have a tax-saving way to spend that money.

Today, Thursday, April 19, is the start of the state's annual Show-Me Green Sales Tax Holiday. Since 2009, this week-long event provides buyers the opportunity to purchase qualifying new Energy Star appliances without paying any state sales tax on the items.

That's an immediate savings of 4.225 percent that, during the other 51 weeks of the year, would be added to these appliances' prices.

Plus, depending on where you live (or travel to buy), the sales tax savings could be larger. Local jurisdictions can choose to participate in Missouri's annual spring sales tax holiday.

Savings vary by location: The map below shows the handful of counties, cities and special taxing jurisdictions that will waive collection of their sales taxes this year.

Click image to see larger PDF version from Missouri Department of Revenue.

For folks who are textual rather than visual, the Missouri Department of Revenue (MDOR) says the cities that are participating in the 2018 Show-Me Green Sales Tax Holiday — that is, city sales tax in these locations will not be collected on qualifying items — are:

Counties, other taxing areas: Counties that will waive their sales taxes on the energy-efficient products this week are Adair, Cass, Clay, Gasconade, Jackson, Macon, Moniteau, Nodaway, Perry, Platte, Ste Genevieve and Washington.

And the districts that usually collect special taxes but won't during the 2018 Show-Me Green Sales Tax Holiday are:

• 370/Missouri Bottom Rd/Taussig Rd Transportation Development District
• Antioch Center Community Improvement District
• Belton Town Centre Transportation Development District
• Central Jackson County Fire Protection District
• Columbia Mall Transportation Development District
• Douglas Square Transportation Development District
• Douglas Station Transportation Development District
• Fulton South Business 54 Transportation Development District
• Hawthorne Development Transportation Development District
• Kingsmill Transportation Development District
• Raintree Lake Village Transportation Development District
• Richardson Crossing Community Improvement District
• Strother Interchange Transportation Development District
• Tori Pines Commons Community Improvement District
• Town Plaza Community Improvement District
• Tuileries Plaza Transportation Development District
• US Hwy 65 & Truman Dam Access Rd Transportation Development District
• Victoria Crossing Community Improvement District

The savings could be significant for shoppers in certain areas where a variety of sales taxes that usually are collected are, for this next week, aren't.

Eligible purchases: So what can Show-Me shoppers buy tax-free during this week?

The Missouri Department of Revenue says the following Energy Star certified appliances qualify:

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

Still taxable: Some popular household appliances, however, will still be taxed. These are trash compactors, conventional ovens, ranges and stoves. All of these products, according to the Energy Star website, do not receive an energy star rating.

Missouri officials say that although its law technically lists the non-certified products in anticipation that they one day may receive the Energy Star rating, sales tax still will be collected on those appliances during the Show-Me Green Sales Tax Holiday.

Also, the law allows retailers that sell less than 2 percent of the qualifying merchandise can offer a sales tax refund in lieu of officially participating in the sales tax holiday.

Pay attention to price, too: In addition to buying a new appliance that qualifies for the Energy Star tax holiday savings, you also have to keep an eye on the overall price.  

The sales tax exemption applies to products priced up to $1,500. The exemption applies to each appliance, not your overall shopping bill. So you can buy a super-duper clothes washer for $1,500 and its companion dryer for $1,500 and not owe sales tax on either.

The price limit and exclusion of some appliances during Missouri's tax holiday week underscore why it's so important for shoppers to be educated and aware.

Make sure you know the sales tax holiday's rules carefully. To help you do just that, MDOR answers consumer questions about the Show-Me Green Sales Tax event at a special FAQ web page.

Happy, and tax-saving, shopping.

You also might find these items of interest:

• Tax holidays are popular, but bad tax policy 
• 6 shopping tips to maximize sales tax holiday savings  
• Tax holidays mean use taxes for out-of-state-shoppers