Connecticut Sales “Tax-Free Week”
in Its 17th Year
Clothing and Footwear Less than $100 Is Sales Tax-Free August 20-26
August means back-to-school shopping, and once again, many items of clothing and footwear can be purchased without paying Connecticut sales tax during “tax-tree week.” The event, now in its 17th year, runs during the third week in August, beginning Sunday, August 20 through Saturday, August 26.
During the “sales tax holiday” week, most individual items of clothing and footwear priced under $100 are exempt from Connecticut Sales and Use Tax. For items costing $100 or more, sales tax is calculated on the full purchase price.
Said Department of Revenue Services (DRS) Commissioner Kevin B. Sullivan, “In Connecticut and other states, the sales tax holiday generally falls around back-to-school season and getting a sales tax break certainly helps. Just as important, retailers will add promotional inducements such as discounts, so there’s a price savings plus a tax savings and the ability of consumers to upscale their purchases. While the price of an item may start above the $100 taxable threshold, after discounts are applied, it could drop to less than $100 and is not subject to sales tax that week.”
“Retail sales are an important part of any state economy, including the jobs involved. While the research is mixed on whether there is actually more business done over time due to sales tax holidays, it’s a helpful way to promote retail shopping -- all of which employ people that support the sales,” said Commissioner Sullivan. “The economic boost more than makes up for the Sales Tax Holiday.
This year, the state expects about $4.1 million in Sales and Use Tax exemptions during the August sales tax holiday week.
On the DRS website visitors can find more details in Informational Publication, IP 2015(22), Annual One-Week Sales and Use Tax Exclusion on Clothing and Footwear Costing Less than $100. The publication outlines what is and is not exempt during the week, as well as rules about the use of coupons, exchanges, and layaway.