Sales Tax Exemption for Weatherization Products is repealed by legislature during its Dec 2015 Special Session.
An unwelcome surprise buried in the special session's "fix" to state government's current year $350 million deficit is the repeal of the sales tax exemption for weatherization products and CFL light bulbs. The repeal is effective on Jan. 1, 2016, and is applicable to sales occurring on or after that date. DRS Issued a Special Notice stating its interpretation of the new law - see SN 2015(11).
The one line repeal was buried in the special session's 112 pg deficit mitigation bill as section 49, and reads simply: "Sec. 49. Section 12-412k of the general statutes is repealed. (Effective January 1, 2016, and applicable to sales occurring on or after said date)"
This was a surprise because all the politicians said they would deal with the $350 million state budget deficit by not raising taxes. Semantics aside, repealing a tax exemption is effectively raising taxes. This is another reason to not trust your government and puts another nail in the home building industry's coffin at the same time we're all trying to break out and rise again.
Contractors and homeowners thinking of purchasing any of the weatherization products listed in sec. 12-412k below should place those purchase orders and follow the DRS guidance linked above prior to Jan. 1 to save 6.35% in sales tax.
The tax exemption section, 12-412k, that is now repealed, reads as follows. Subsection (a) defines weatherization products. Subsection (b)'s reference to "the provisions of this chapter shall not apply ..." means the sales tax shall not apply to residential weatherization products or CFL light bulbs:
"Sec.12-412k.Exemption for residential weatherization products and compact fluorescent light bulbs. (a)For purposes of this section, "residential weatherization products" means programmable thermostats, window film, caulking, window and door weather strips, insulation, water heater blankets, water heaters, natural gas and propane furnaces and boilers that meet the federal Energy Star standard, windows and doors that meet the federal Energy Star standard, oil furnaces and boilers that are not less than eighty-four per cent efficient and ground-source heat pumps that meet the minimum federal energy efficiency rating.
(b)Notwithstanding the provisions of the general statutes, the provisions of this chapter shall not apply to sales of any residential weatherization products or compact fluorescent light bulbs."