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updated 03:33, Wed October 03, 2007

Ga.: Tax-Free Holiday on Energy Efficient Items Begins Thursday

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ATLANTA (AP) -- Retailers, consumers and the environment may benefit from this week's state and local sales tax break on energy efficient light bulbs, appliances and other products.

The Home Depot Inc. expects to see a solid increase in the sale of appliances in Georgia during the four-day tax holiday that begins Thursday.

"Whenever we do these holidays, and we do them in a number of states, the response from customers is pretty huge," said Bob Baird, vice president of merchandising for kitchens and appliances at the Atlanta-based company. "I think they like the idea of not having to pay tax."

A number of states, including Georgia, Virginia, Oklahoma and Massachusetts, have annual tax-free days on the sale of certain items. Depending on the state, the items include school supplies and clothes. Georgia and Virginia allow for separate tax-free days on the sale of energy efficient items.

From Thursday at 12:01 a.m. until Sunday at midnight, consumers in Georgia will not have to pay state and local sales taxes on Energy Star qualified appliances and products that cost $1,500 or less. Georgia sales taxes run as high as 8 percent depending on where a person lives and what he or she buys.

Energy Star is a designation for products that meet strict energy efficiency criteria set by the U.S. Environmental Protection Agency and U.S. Department of Energy. According to Georgia officials, many Energy Star qualified appliances use 30 percent less energy than conventional models.

Many of Home Depot's appliances qualify for the tax-free holiday, Baird said.

Qualified appliances and products include dishwashers, clothes washers, air conditioners, ceiling fans, fluorescent light bulbs, dehumidifiers, programmable thermostats, refrigerators, doors and windows.

Home Depot, which has 86 stores in Georgia, plans to run advertisements reminding people about the holiday. Home Depot customers this weekend also will get an additional 10 percent off on appliances over $297.

"It's a pretty good double dip they get," Baird said.

Baird said the company expects a strong jump in sales of appliances in Georgia this weekend because of the tax holiday.

Karen Cobb, a spokeswoman for Lowe's Cos., said the Mooresville, N.C.-based chain has 59 stores in Georgia and more than 3,900 items that qualify for the state's tax-free holiday.

"This type of event is very important to consumers," Cobb said.

She declined to say how the holiday has affected sales at Lowe's stores in Georgia in past years. This marks the third year for Georgia's energy-efficiency tax holiday.

Besides the boon for retailers, Georgia officials say the tax holiday will help the environment by promoting products that are energy efficient.

Georgia Gov. Sonny Perdue is encouraging residents to take advantage of the holiday and buy Energy Star products to help families save on their utility bills, reduce energy consumption and "enable us to be good stewards of the environment."

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