During the COVID-19 pandemic, the Comptroller encourages all taxpayers to continue practicing social distancing and support and buy from Texas businesses while saving money on tax-free purchases of certain water-efficient and water-conserving products during the annual Texas Water-Efficient Products Sales Tax Holiday. There is no limit on the number of qualifying items you can buy, and you do not need to give the seller an exemption certificate to buy items tax free.
The 2021 holiday begins Saturday, May 29, and goes through Monday, May 31 (Memorial Day).
To promote social distancing, the Texas Comptroller’s office wants all taxpayers to know that during the Water-Efficient Products Sales Tax Holiday, you can buy certain water-efficient and water-conserving products online or by telephone, mail, custom order, or any other means (including in-store purchases) that qualify for sales tax exemption when either
A seller accepts an order when the seller has acted to fill the order for immediate shipment.
An order is filled for immediate shipment regardless of whether the shipment is delayed due to a backlog of orders, or because stock is currently unavailable to, or on back order by, the seller.
The Comptroller’s office urges all taxpayers buying certain water-efficient and water-conserving products at their local retailers to practice appropriate social distancing as described in the Center for Disease Control and Prevention guidelines during the sales tax holiday.
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
Examples of items that qualify for the exemption include
Examples of items that do not qualify for the exemption include
*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 can buy WaterSense® products tax free to keep in inventory. An exemption or resale certificate is not required.
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.
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.
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.
Purchasers can buy certain water-efficient and water-conserving products during the annual Texas Water-Efficient Products Sales Tax Holiday. If you pay sales tax on these items during the sales tax holiday, you can ask the seller for a refund of the tax paid. The seller can either grant the refund or provide their customer with Form 00-985, Assignment of Right to Refund (PDF) that allows the purchaser to file the refund claim directly with the Comptroller's office.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.