VA's Energy Sales Tax Holiday: Not Such a Bright Idea

By: TheGreenMiles
Published On: 9/25/2007 9:16:18 PM

Allow me to do some Malcolm Gladwell-style consumer psychology:  Why doesn't the Maytag Repairman ever tell you washers are on sale?

Because people don't buy appliances like they buy other products.  Unlike that car you might be persuaded to trade-in for a newer model because of a cash-back offer or that morning cup of coffee you might be swayed to get at Krispy Kreme because of a discounted donut, you buy new appliances only when the old ones break

Think about it.  Have you ever been in Sears and said, "I like the washer we have, but dang it, this sale is too good to pass up.  I'm throwing out our perfectly good current one."  That's why Maytag preaches brand reliability -- whenever you do need a new dishwasher, they'll be there. 

So why would you throw out your perfectly-good refrigerator just because Virginia has declared an EnergyStar Sales Tax Holiday October 5-8?  If Virginia is really interested in promoting energy efficiency, shouldn't it offer an incentive that will be there whenever your old fridge kicks the bucket?

But, as the Virginian-Pilot detailed back in February, "it gets worse":

What home appliance uses the most energy? The furnace. What appliance is completely excluded from [Del. John] Cosgrove's bill? The furnace. (Isn't it curious that the furnace is the most expensive home appliance most people will ever buy, and excluding it from the sales tax would actually cut into state revenue?)

And still it gets worse. Cosgrove has so inartfully worded his legislation, that you don't even have to buy the most energy-efficient "Energy Star" appliances to get the tax break, you just have to buy appliances that meet "energy-saving efficiency requirements."

Well guess what? You can't buy or sell new air conditioners or water heaters that don't meet Environmental Protection Agency and Department of Energy efficiency standards. Thus, all new appliances qualify for the tax break.

In short, the Chesapeake Republican has written a tax break that almost nobody will get, that doesn't apply to the largest energy hog in your house and doesn't actually encourage people to buy the most energy-efficient appliances. There's a word for that: worthless.

Thanks to Vivian for first catching this editorial back in February.

Comments



Home Depot has Maytag at 10% off right now (humanfont - 9/25/2007 9:50:18 PM)
People replace appliances all the time not just becuase they are broken. It is a sad state of our consumeristic society.


Not quite a "gotcha" (TheGreenMiles - 9/25/2007 10:03:36 PM)
Where did I say appliances are never ever on sale?  But find me a commercial where Gordon Jump is pitching half-price washer-dryers and I'll eat my post. 

For the record, there is only one item that you can almost never find for a discounted price: cat litter.  Because they know they have you over a barrel on that one.  You can only hold out so long.



Missed opportunity? (Kindler - 9/25/2007 10:13:22 PM)
If the state actually promoted the idea so that people knew about it in advance, it might be a good idea.  But I doubt that 1 out of 100 had any idea until your posting. 

At the very least, it'll be the time to line your attic with compact fluorescent bulbs!

(BTW, the state site only mentions Energy Star products, not any others, so I don't see how anybody would have grounds to request a tax break for other products.)



Maybe his heart is in the right place? (Teddy - 9/25/2007 10:23:44 PM)


Who really benefits? (David Campbell - 9/26/2007 2:22:01 PM)
Who might benefit from buying a lot of appliances at one time of the year?  Developers, who might buy enough for a whole development when they could save on taxes and store them until installation.

Someone ought to propose a tax holiday on Energy Star appliances year-round, to incent individual homeowners to pay a little extra for energy efficient appliances.



Who really benefits? (David Campbell - 9/26/2007 2:27:28 PM)
Who might benefit from buying a lot of appliances at one time of the year?  Developers, who might buy enough for a whole development when they could save on taxes and store them until installation.

Someone ought to propose a tax holiday on Energy Star appliances year-round, to incent individual homeowners to pay a little extra for energy efficient appliances.