Blumenthal Warns Consumers About Home Depot

Connecticut Attorney General Richard Blumenthal recently requested Home Depot officials review whether the company improperly collected sales tax on some temporarily tax-exempt energy conservation products, and arrange refunds if it did.

Section 4 of Public Act 05-02, adopted last October, exempts from sales tax certain energy conservation products sold between November 25, 2005 and April 1, 2006.

The Attorney General’s office learned through consumer reports and its own investigation that Home Depot has properly applied the temporary sales tax exemption to some eligible home weatherization products, but not others.

Specifically, investigators from Mr Blumenthal’s office purchased and were charged sales tax on several items — vinyl foam weather seal and a vinyl door sweep — that should be exempt under the law.

In a letter, Mr Blumenthal urged Home Depot to conduct a review to determine whether sales tax was inadvertently charged and provide refunds to consumers improperly taxed. He also urged the company to update equipment and better train personnel to ensure that the law is fully followed.

“We need to insulate consumers against careless cracks in this vital tax exemption,” Mr Blumenthal said. “Consumers are entitled to every dollar of discount on every eligible product. Inconsistent and incomplete compliance undermines energy conservation.

Products subject to the temporary tax exemption include programmable thermostats, window film, caulking, window and door weather strips, insulation, water heater blankets, water heaters that met the federal Energy Star standard, natural gas furnaces not less than 85 percent efficient.

The law also exempts propane furnaces and doors that meet federal Energy Star standards, ground-based heat pumps that meet minimum federal energy efficiency ratings and boilers that have an annual fuel utilization efficiency of 85 percent or greater.