'Green tax holiday' begins in Virginia today

On your mark, get set, go buy light bulbs!

Virginia's "green tax holiday" begins this morning and runs through Monday night -a time when consumers can buy energy-saving appliances, water-saving household goods and those eco-friendly light bulbs without also shelling out the state's 5 percent sales tax.

It is the second year for the tax break, and a small part of the state's overall plans to reduce energy consumption, encourage a greener ethic among Virginians and create markets for new-age appliances and housewares.

"I am pleased to give consumers another opportunity to save money and conserve resources through the purchase of ENERGY STAR and WaterSense high-efficiency products," Gov. Timothy M. Kaine said in a statement.

Retailers in Hampton Roads, however, are not expecting a mega-buying spree over the long weekend. A teetering economy and mounting concerns about jobs and income are likely to keep shoppers for big-ticket appliances at home - and not just for this weekend, several merchants predicted.

"I don't think anyone's expecting a big bump" from the tax holiday, said Susan Mil-hoan, president and chief executive officer of the Retail Alliance, based in Norfolk.

Last year, the inaugural holiday resulted in a savings of about $166,000 in sales tax revenues - "not a particularly big amount," Milhoan said. The state's back-to-school tax holiday, by contrast, encouraged much more shopping and savings, she said.

A report by Virginia officials summarizing the 2007 green holiday cited "robust" activity statewide, with Wal-Mart saying sales of eco-friendly light bulbs jumped 230 percent and Sam's Club noticing a 162 percent increase in sales of Energy Star products.

Items that will be exempt from the state sales tax this weekend include any dishwasher, clothes washer, air conditioner, ceiling fan, compact fluorescent light bulb, dehumidifier, programmable thermostat or refrigerator that the U.S. Environmental Protection Agency has certified under its Energy Star program.

In addition, products carrying the WaterSense label - sinks, faucets, toilets, among others - fall under the tax-free umbrella.

Used, certified appliances and goods also are part of the program.

There are plenty of caveats, however.

To qualify, products cannot cost more than $2,500 apiece. And the holiday applies only to items purchased for "noncommercial home and personal use" - not for business, trade or resale purposes, according to state code.

Several local merchants said they wished the state would expand the eligibility list, especially to contractors, who want to install green appliances in new or remodeled homes.

"That would help, for sure," said Tim Hillegass, owner of Hillegass Lighting Corp. in Chesapeake. His big product for sale this weekend: green lighting, fixtures and bulbs.

State officials responded that they worry about bad actors taking advantage of the holiday, loading up on goods and selling them later for a small profit.

"We're always looking to improve the program, improve our consumer education," said Mike Abbott, a spokesman for the state Department of Mines, Minerals and Energy. "It's a big task."

Scott Harper, (757) 446-2340, scott.harper@pilotonline.com