In the realm of economics, two key factors that significantly impact consumers’ lives are purchasing power and inflation. The ability to afford goods and services and the stability of prices are crucial indicators of economic well-being.
High inflation rates can erode the purchasing power of individuals, leading to a decrease in their standard of living.
Furthermore, inflation can distort price signals and hinder the efficient allocation of economic resources, slowing major purchases for most consumers.
The latest Consumer Price Index report wasn’t particularly eye-catching. According to Bureau of Labor Statistics data released on December 12, 2023, the inflation gauge that measures price changes for a basket of goods and services fell slightly to 3.1% for the year ending in November.
However, in Florida, you can still save.
Florida Governor Ron DeSantis signed a sales tax holiday in 2023 on Energy Star appliances that runs through June 30, 2024, and many Floridians are unaware.
The year-long tax “holiday” allows shoppers to avoid paying sales taxes when they buy certain appliances and gas stoves.
“With so many programs going on in the state, and only a small percentage of people actively needing to replace their appliances, the sales tax exemption on Energy Star washers, dryers, and refrigerators is often overlooked. Many customers have only heard about it once they are in our showroom or find out once they start doing some online research about replacing their appliance. The exemption on gas ranges and gas cooktops is also a huge money saver for residents right now as well,” said Jason Horst, Director of Marketing at Famous Tate.
Consumers can purchase qualifying Energy Star appliances exempt from tax during the 2023-2024 Energy Star Appliances Sales Tax Holiday period.
“With the sales tax exemption on Energy Star Qualified refrigerators, customers are saving an average of $150-$200 in sales tax on the most popular models, and the max purchase price was raised to $4,500 this year, so almost all freestanding models are now eligible. That includes luxury brands like Bosch, LG, GE Profile, Samsung, and KitchenAid,” said Horst.
Passed by the Florida Legislature and signed into law by Gov. Ron DeSantis, the sales tax holiday began on Saturday, July 1, 2023, and extends through Sunday, June 30, 2024.
The sales tax holiday does not apply to the rental or repair of any of the qualifying items.
However, if you need a new washer, dryer, or any major appliance, you still have time to save and save big.
“Most of today’s washers are now Energy Star qualified, and customers can choose from both front loading and traditional top loading styles. Many premium dryers are now Energy Star qualified so customers can save the sales tax on both. Washers and dryers selling for $1,500 or less each are eligible, and customers are averaging $90-$120 in additional savings when they replace the pair,” said Horst.
Remodeling your kitchen? There is no limit on the number of qualifying items that can be purchased for noncommercial use tax-exempt, so the sales tax savings can outpace the slowly dropping inflation.
Eligible Appliances
During the sales tax exemption period, buyers are not required to pay sales tax on specific appliances with an Energy Star rating. It’s important to note that not all appliances qualify for the exemption.
To identify eligible appliances, look for the Energy Star label affixed to the product. The following appliances meet the criteria for the sales tax exemption:
1. Clothes Dryer
A clothes dryer with a sales price of $1,500 or less is eligible for the sales tax exemption. Whether you’re in need of a new dryer or looking to upgrade your current one, this is an excellent opportunity to save money on an energy-efficient model.
2. Refrigerator or Combination Refrigerator/Freezer
If you’re in the market for a new refrigerator or combination refrigerator/freezer, you’re in luck! During the sales tax exemption period, models with a sales price of $4,500 or less qualify for the exemption. This is a significant saving opportunity for those aiming to reduce their energy consumption.
3. Washing Machine
Say goodbye to high utility bills and hello to energy-efficient laundry days! Washing machines with a sales price of $1,500 or less are eligible for the sales tax exemption. Upgrade to an Energy Star-rated washing machine and enjoy both savings and environmental benefits.
4. Water Heater
In need of a new water heater? Look no further! Water heaters with a sales price of $1,500 or less qualify for the sales tax exemption. By choosing an energy-efficient model, you can reduce your energy consumption and save money on your purchase.
While the Florida Energy Star Sales Tax Holiday provides an excellent opportunity to save on energy-efficient appliances, it’s important to be aware of the terms and limitations associated with the exemption. Here are a few key points to keep in mind:
- The sales tax exemption only applies to purchases made for personal use. It does not apply to appliances purchased for trade, business, or resale purposes.
- The exemption is not applicable to appliance rentals. It only applies to the purchase of eligible appliances.
- To qualify for the exemption, the appliances must be Energy Star-rated and meet the price criteria specified for each category.
The Florida Energy Star Sales Tax Holiday presents a unique opportunity for residents to save money while investing in energy-efficient appliances.
Take advantage of this exemption period to upgrade your home with Energy Star-rated appliances and save now.
The Tampa Free Press will be covering each of the Florida sales tax holidays that run into 2024 in our new Home and Garden section.
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