Md. Code Regs. 03.06.01.44

Current through Register Vol. 51, No. 19, September 20, 2024

Section 03.06.01.44 - Tax-Free Weekend for Certain Energy Efficient Equipment

A. Definitions.

(1) In this regulation, the following terms have the meaning indicated.

(2) Terms Defined.

(a) "Compact fluorescent light bulb" means a fluorescent light bulb that has been compressed into the size of a standard-issue screw-in incandescent light bulb.

(b) "Energy Star product" means an air conditioner, clothes washer, clothes dryer, furnace, heat pump, standard size refrigerator, compact fluorescent light bulb, dehumidifier, boiler, or programmable thermostat that has been designated as meeting or exceeding the applicable Energy Star efficiency requirements developed by the U.S. Environmental Protection Agency and the United States Department of Energy and is authorized to carry the Energy Star label. For the period July 1, 2014 through June 30, 2017, "Energy Star product" also means a light-emitting diode (LED) light bulb that meets or exceeds the same Energy Star efficiency criteria.

(c) "Solar water heater" means a system composed of equipment designed to heat water by the use of solar energy.

(d) "Standard size refrigerator" means a refrigerator with a factory-built, self-contained cabinet that is marketed for use in a private residence or household, whether or not used in a private residence.

B. Exempt Sales

(1). The sales and use tax does not apply to the sale of a qualified Energy Star product or a solar water heater that is sold between 12:01 a.m. on the Saturday immediately preceding the third Monday in February and 11:59 p.m. on the third Monday of February, beginning in February 2011 and on such dates each February thereafter.

(2) Requirements for Exemption.

(a) The sale is considered made during the tax-free period if the contract of sale and payment for the product takes place during the specified period, even if delivery of the product is delayed until after the period.

(b) For lay-away sales, the sale will be considered to be made during the tax-free period if the contract of sale is entered into and the initial payment is made during the specified period and the product is removed from normal inventory and set aside for the purchaser at that time.

(c) A product purchased pursuant to a rain check is not eligible for exemption unless the contract of sale and payment for the product takes place during the specified period.

(d) The initial lease payment for a qualifying product will be exempt from sales and use tax if the lease agreement is entered into and the first payment is made during the specified period.

(e) For catalogue or internet sales, the sale will be considered to be made during the tax-free period if the transaction is completed, payment is made, and the vendor has taken action to immediately fulfill the order during the specified period.

(3) If sales and use tax is paid on the sale of an item that qualifies for exemption, the person paying the tax may apply to the Comptroller for a refund pursuant to COMAR 03.06.03.05.

(4) In addition to record-keeping requirements under Tax- General Article, §11-504, Annotated Code of Maryland, vendors and purchasers of Energy Star products and solar water heaters shall keep records or documentation identifying the items as meeting the requirements for the exemption under this regulation for a period of 4 years from the date of the sale.

Md. Code Regs. 03.06.01.44

Regulation .44 effective June 11, 1969
Regulation .44 adopted as an emergency provision effective January 20, 2011 (38:4 Md. R. 261); emergency status extended to December 6, 2011 (38:14 Md. R. 787); emergency status expired December 6, 2011
Regulation .44 amended effective 42:3 Md. R. 314, eff.2/16/2015