Martin O'Malley Proposes “Sales Tax Holiday�

Measure Would Apply to Energy Efficient Applicances and Help Consumers Save on Energy Bills and Conserve Energy

BALTIMORE, MD (May 18, 2006) – Today, Martin O’Malley announced that as Governor, he will propose a state “sales tax holiday� on energy efficient household appliances and products to help Maryland families save on increasing energy costs and conserve energy at the same time. The measure, which is part of the comprehensive O’Malley/Brown Energy Plan, would allow Maryland families to forgo paying state sales tax on energy efficient household appliances and products during select time periods each year.

“With skyrocketing gasoline prices and Governor Ehrlich’s PSC now going to court allow the 72% energy rate-hike to stand this July, our state simply must do more to help Maryland’s hardworking families save money on their energy bills and conserve energy,â€? said Martin O’Malley. “This state ‘sales tax holiday’ makes sense for Maryland families, it makes sense for Maryland businesses and it makes sense for the environment.â€?

The state “sales tax holiday� would apply to all energy-efficient appliances (washers, dryers, water heaters dishwashers and air-conditioning units for example) and other products such as energy efficient windows, insulation, doors, plastic window sealers, and energy efficient light bulbs that produce significant savings in utility costs for families and small business owners. At the same time the use of these money-saving products will also reduce energy consumption and strengthen the environment.

Standing with O’Malley in front of the Home Depot in Baltimore County, Mike Taylor of Dundalk stated, “This tax holiday is great news for me and my family. With the PSC’s 72% rate hike in my energy bills only weeks away, this will help my family save energy and save money at the same time.�

According to the American Council for an Energy Efficient Economy, replacing a 20-year old refrigerator with a new energy efficient model would on average save customers $65 a year in power bills and also reduce CO2 contributions by one ton a year. According to the US Department of Energy, replacing a single-pane window with an “Energy Star� model will save Maryland families $270 a year on average.

The state “sales tax holiday� would be applicable to appliances and products that would qualify under US Department of Energy Guidelines for under the Energy Policy Act of 2005, and would be available to residential and small business customers. Such holidays will not only help consumers but have proven to be a boon to retailers as well.

Maryland previously had a point-of-sale tax credit for energy efficient appliances. However, the Maryland tax credit programs were allowed to expire under the Ehrlich Administration.