A tax-free weekend for appliance stars

Retailers hope break on efficient models energizes sluggish sales

Anxious appliance retailers hope the state's first sales tax holiday on Energy Star appliances this weekend gives them a much-needed boost. But they aren't taking any chances. Many are rolling out promotions and discounts on top of the tax savings to entice skittish shoppers to buy.

Andy Pittman, owner of Jeffreys Appliance Center on Capital Boulevard in Raleigh, is discounting some appliances another 5 percent to 10 percent.

The state's 43 Home Depot stores will offer 10 percent off any appliance of $299 or more, which includes Energy Star appliances.

Lowes Home Improvement will also have additional discounts, said spokeswoman Karen Cobb, though she declined to offer specifics before the release of the chain's advertisements later this week.

The tax holiday works much like the school supplies sales tax holiday the state holds each August, except that this time, it's Energy Star-rated appliances that are exempt from the 6.75 percent tax rate. So, on a $500 appliance, you would save $33.75 in tax. But with some appliances costing much more than that, the savings could really add up.

The state's three-day sales tax holiday was created this year by the General Assembly to encourage the use of energy-efficient products.

North Carolina joins Texas, Georgia and Virginia in offering such a holiday. Cobb said they have been "wildly popular" in other states.

Still, despite the increasing cost of energy, North Carolina's first Energy Star sales tax holiday has not generated a lot of buzz.

To get the word out, Pittman has been promoting his sale on his Web site, mailing letters to previous customers and having his staff call anyone who has expressed interest in buying an appliance in the past 60 days.

He's even opening the store on Sunday, when it is usually closed.

At Garner TV & Appliance, there will not be any additional sales, but Amgad Saad said he and his family are expecting a good weekend, which will be welcomed.

"Last year was a record year for us, so to be 10 percent down in an industry that's 20 percent down is actually good," he said

The slump in home building, commercial construction and home improvement has slowed appliance sales.

In the face of decreased business, some manufacturers such as Whirlpool have been laying off workers.

At Jeffreys, Pittman said he hasn't been replacing people as they've quit, reducing his staff from 15 to 10 over the past year.

"If the economy were not in the shape it was in, I would guess it could be our biggest weekend ever," Pittman said. "Right now, people need a reason to come in."

The Energy Star program was introduced in 1992. Since then, more than 2.5 billion Energy Star products have been purchased by consumers. In 2007 alone, consumers purchased 500 million Energy Star products.

"In general, they're very popular for customers who are looking to save that additional money," said Home Depot spokesman Craig Fishel. "In 2008, as energy costs in some cases have skyrocketed, we have seen increased interest in energy-efficient products."

And, for shoppers who are considering an appliance purchase later in the year or next year, Andy Pittman of Jeffrey's Appliance Center said the deals likely won't get any better.

"All of our manufacturers are having big price increases in December and January mostly," he said. "It's anywhere from 9 to 12 percent."