RALEIGH -- A higher sales tax means North Carolina consumers will get a larger break when they purchase energy-efficient appliances compared to a year ago.
The sales-tax holiday on so-called Energy Star appliances like clothes washers, freezers and air conditioners will be held Friday, Saturday and Sunday statewide.
The holiday was first held last November when the sales tax rate consumers paid on merchandise was 6.75 percent in most counties. Now, it's 7.75 percent.
Fran Preston with the North Carolina Retail Merchants Association says retailers are planning special sales on the products to coincide with the holiday.
Other Energy Star items that qualify for the sales tax exemption include refrigerators, some heat pumps, ceiling fans, dehumidifiers and programmable thermostats.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
How
does this help the consumer??
There is a flaw in the logic. Example -- I buy a "qualified" appliance for $1000.
Last Year, the cost, including sales tax, would have been $1,065.
This year, the cost, including sales tax, would be $1,075.
But this weekend, I can avoid the sales tax and only pay $1,000.
Last year, on the same weekend, I could avoid the sales tax and only pay $1,000.
$1,000 Last Year; $1,000 This Year. Same Price.
Where's the savings touted resulting from the sales tax waiver?? Granted, the consumer avoids the sales tax.
BUT, this article would have one believe the increase in sales tax will yield greater savings than the same week-end last year.
Was the math calculated in Raleigh??
Gee, aren't we lucky?
The tax break is only "bigger" this year because the Democratic governor and Democratically controlled legislature decided to nail us the other 362 days of the year. (And for anything other than appliances this weekend.)
So don't be thinking that a bigger tax break this weekend is a good thing. Over the rest of the year, you'll lose more than you save.