Sales tax holiday for energy-efficient appliances set for April

Consumers in a handful of Southeast Missouri cities will have an opportunity to go green and save money next month during the first Show-Me Green Sales Tax Holiday.

The state's 4.225 percent sales tax will be eliminated from April 19 to 25 on certain energy-efficient home appliances. Nine counties, 57 cities and eight special districts have opted to suspend taxes in their jurisdictions, which could mean savings of up to 8 percent.

Dexter, Jackson, Marble Hill and Perryville will waive their city sales taxes, while the Town Plaza Community Improvement District, the property that houses NARS, Hastings and Buffalo Wild Wings on William Street in Cape Girardeau, will eliminate its 1 percent sales tax on qualifying appliances.

The exemption applies to the first $1,500 on certain new Energy Star-certified appliances. Qualifying purchases are clothes washers, refrigerators, freezers, dishwashers, water heaters, furnaces and air conditioners.

Utility bill savings

Created by the U.S. Environmental Protection Agency, the Energy Star program allows manufacturers of appliances to voluntarily label appliances that meet certain criteria. The goal is to promote appliances that perform as well or better than similar appliances while using less energy. According to energystar.gov, Americans have saved $19 billion on utility bills and avoided greenhouse gas emissions equivalent to those from 29 million motor vehicles through the program.

The tax holiday comes at a time when retailers are struggling to turn a profit. In a recent article on bloomberg.com, Whirlpool chief executive officer Jeffrey Fettig said appliance sales in the U.S. for his company, the world's largest appliance maker, will fall 10 percent in 2009.

Lana Durham, manager of Clark Appliance Center in Cape Girardeau, said she hopes the holiday results in increased sales. However, she is unsure whether the average consumer will have the money to buy qualifying appliances.

"Some stores may have additional refinancing, but how many can truly qualify for it?" Durham said. "That will be one of the big factors as to whether it's successful or not. There may be only a limited amount of people who can truly afford the products."

Regardless of the outcome, Durham said the holiday is a win-win for the environment and the struggling economy.

"At this point we need to do something to jump-start the economy," Durham said. "It's a good faith gesture for the state to do this, and I believe it will help the businesses and those who buy the products in the long run."

Larry Craft, warehouse manager at Brauer Supply Co. in Jackson, said any incentive for customers to purchase appliances is welcome news.

"It's good for us and the consumer," Craft said.

Jackson Mayor Barbara Lohr said the sales tax holiday is another effort on the city's part to promote its green initiatives. City-sponsored programs include its E-cycle event April 25, in which residents have a chance to dispose of electronic equipment, and Park Day on May 2, in which residents clean up City Park. Lohr said the city plans to add a green tip each month to its utility bills, with a target starting date in April.

"If this holiday tips them over to the purchase of an energy-efficient appliance, then it is a good thing all around," Lohr said. "In times like this we want to do everything we can to stimulate the economy."

Cape Girardeau Mayor Jay Knudtson said the city remains committed to participating in the annual tax holiday on back-to-school items but declined to participate in the green holiday because it does not "have the luxury or capacity to forgo any revenue."

bblackwell@semissourian.com

388-3628

Pertinent addresses:

Jackson, MO

Perryville, MO

Cape Girardeau, MO

Marble Hill, MO