Connecticut shoppers are gearing up once again for back to school shopping. In many households this is an expensive venture. Our state aims to help ease this burden by exempting clothing and shoes under $300 from the 6% sales tax for one week beginning Sunday August 16th. The tax free holiday runs through Saturday August 22nd.
This will be the 7th year Connecticut has celebrated this popular shopping week. Since its inception it has saved taxpayers over $3 million dollars. The exclusion applies to each item sold, regardless of how many items are sold to a customer on the same invoice. However, the exclusion does not apply to any portion of the price of an item that costs $300 or more. The exclusion week replaces the regular exemption for articles of clothing or footwear costing less than $50 which remains in effect for all other periods.
Tax free week although popular among families shopping for students is not exclusive to back to school shopping. It is also a tool to spur consumer spending, and is a part of the economic development in the state. Retailers benefit from the week as well and look forward to it each year.
The Sales and Use Tax Exclusion is regulated by the Department of Revenue Services. More information on it can be found on their website at http://www.ct.gov/drs/cwp/view.asp?a=1514&q=318566.
As always I encourage anyone with questions to contact my office for more information at 860 240 0381 or via email at rob.kane@cga.ct.gov
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