Governor M. Jodi Rell Thursday urged Connecticut consumers to take advantage of the state’s 10th annual sales tax-free week – a tax holiday that allows shoppers to purchase individual items of clothing and footwear priced under $300 without paying the usual 6 percent sales tax. This year’s tax-free week runs from Sunday, August 15 through Saturday, August 21.
“This summer has been one for the record books, with more than 20 days with high temperatures of 90 degrees or more and humidity that – at times – has been more reminiscent of South Carolina than southern New England,” Governor Rell said during a news conference at Westfarms Mall in Farmington. “But we also know that the fall – that glorious time of cool nights and vibrant color – is not far away.
“Parents of school-age children are especially sensitive to this change of seasons, because it’s time for back-to-school shopping – and that’s why Connecticut times its yearly Sales Tax Free week for August,” the Governor said. “Both consumers and retailers benefit from this annual end-of-summer ritual: Families get a price break and store owners get increased ‘foot traffic’ in their stores. That’s good for our economy and, in turn, good for keeping and growing jobs – our top mission right now.”
The sales tax free week increases the usual $50 exemption on clothing and footwear. Special clothing or footwear primarily designed for athletic activity or protective use, accessories, and jewelry do not qualify for this exemption.
“Connecticut has one of the longest-running sales tax holidays and is one of the few states to give shoppers and retailers the benefit of an entire week of tax-free shopping,” said Department of Revenue Services Commissioner Richard Nicholson.
Governor Rell noted that retailers often plan sales to coincide with the annual sales tax holiday. Shoppers can take advantage of sales, coupons and store discounts to build on the savings from the tax exemption. Because sales tax is applied after the use of any coupons or discounts, if the final price is less than $300, the sale is exempt. Layaways and rentals of clothing or footwear under $300 are also tax-free during the week. For purchases of $300 or more, sales tax is calculated on the full cost of the item.
“I urge everyone to take advantage of this opportunity to save on the purchases they need to make before fall,” Governor Rell said. “The state expects to forego about $3.5 million in sales tax revenue from this week but we believe it is well worth that investment to benefit residents and retailers alike.”
For answers to questions about the Connecticut Sales Tax Holiday Week, the Department of Revenue Services (DRS) has posted details on its website at www.ct.gov/drs. The DRS website also has links to other publications to help consumers understand the regular sales and use tax exemption on clothing and footwear.
