taxes

Water-Efficient Products Sales Tax HolidayMay 26-28, 2018

You can buy certain water-efficient and water-conserving products tax free during the Water-Efficient Products Sales Tax Holiday. There is no limit on the number of qualifying items you can buy. If you are a contractor, landscaper or other service provider, see the link at the bottom of the page for specific information.

The 2018 holiday begins Saturday, May 26, and goes through Monday, May 28 (Memorial Day).

WaterSense Products

During the holiday period, you can buy any product tax free that displays a WaterSense label or logo. These items can be bought for either personal or business purposes.

Water-Conserving Products

You can also buy certain water-conserving products tax free during the holiday period.

Unlike WaterSense-labeled items, these items are only exempt when you buy them for use at your residential property.

You can buy items tax free during the holiday that are used or planted for:

  • conserving or retaining groundwater;
  • recharging water tables; or
  • decreasing ambient air temperature, and so limiting water evaporation.

Examples of items that qualify for the exemption include:

  • a soaker or drip-irrigation hose
  • a moisture control for a sprinkler or irrigation system
  • mulch
  • a rain barrel or an alternative rain and moisture collection system
  • a permeable ground cover surface that allows water to reach underground basins, aquifers or water collection points
  • plants, trees and grasses
  • water-saving surfactants
  • soil and compost

Examples of items that do not qualify for the exemption include:

  • construction/building materials
  • awnings and other items used to create shade
  • air conditioners*
  • ceiling fans*
  • sprinklers

*Certain air conditioners and ceiling fans can be bought tax free as part of the Energy Star Sales Tax Holiday during Memorial Day weekend.

Contractors, Landscapers and other Service Providers

WaterSense Products

Purchases

Contractors, landscapers and other service providers can buy WaterSense products tax free to keep in inventory. An exemption or resale certificate is not required.

Sales

Contractors, landscapers and other service providers can sell WaterSense products tax free under a separated contract during the holiday period. This exemption applies to residential and business customers.

Water-Conserving Products

Purchases

Since the exemption does not apply to water-conserving products used for business, lump-sum contractors cannot buy water-conserving products tax free to keep in inventory until ready for use in new or existing residential property or in new commercial property. You must continue to pay tax on these items.

Service providers repairing and remodeling commercial property, and all separated contractors, must give a resale certificate to the seller for water-conserving products bought during the holiday period.

Sales

Separated contractors can sell water-conserving products tax free only to individual customers for their residences during the holiday period. Sales to businesses are taxable.

For more information, contact us at Tax Help, or call 800-252-5555.

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06/2017