Dry Cleaning Establishments Tax Information
- What's New 2022
- Who Must Register and File the Dry Cleaning Establishment Surcharge Return
- Dry Cleaning Establishment Surcharge
- How to File
- When to File
- Interest and Penalties
- Form OP-374, Connecticut Dry Cleaning Establishment Surcharge, is required to be electronically filed and paid for periods beginning on or after January 1, 2023.
All dry cleaning establishments, except independent drop stores as defined below, must register each location with the Department of Revenue Services (DRS) and display a Dry Cleaning Establishment Surcharge Certificate at each location in order to legally conduct business in Connecticut. Registration must be renewed each year.
Independent “drop stores” are locations that only accept clothing or other fabrics that are to be laundered or dry cleaned elsewhere. Independent drop stores in Connecticut must be registered as retailers and collect sales and use taxes on their gross receipts from dry cleaning services and laundry services. For additional information, see Policy Statement 2022(1), Sales and Use Tax on Dry Cleaning Services and Laundry Services, Dry Cleaning Establishment Surcharge, and Business Use Tax Obligations.
Businesses that are required to file the Dry Cleaning Establishment Surcharge Return may register online through myconneCT. Go to myconneCT, under Business Registration, click New Business/Need a CT Registration Number? There is no fee for registering for the dry cleaning establishment surcharge.
Use myconneCT to file taxes, make payments, view filing history, and communicate with the agency simply and more efficiently on virtually any mobile device, including laptops, tablets, and smartphones, 24 hours a day, 7 days a week.
A dry cleaning establishment surcharge of 1% of the gross receipts from dry cleaning services performed at each dry cleaning establishment must be paid to DRS for all dry cleaning services performed. For additional information, see Policy Statement 2022(1), Sales and Use Tax on Dry Cleaning Services and Laundry Services, Dry Cleaning Establishment Surcharge, and Business Use Tax Obligations.
How to File
Form OP-374, Connecticut Dry Cleaning Establishment Surcharge Return, can be filed and paid electronically using myconneCT. DRS myconneCT allows taxpayers to electronically file, pay, and manage state tax responsibilities.
On or before the last day of the month following the end of the calendar quarter.
Interest and Penalties
If this is a late or amended return, compute the interest at the rate of 1% per month or fraction of a month from the due date until the date of payment. Interest is based on the amount that should have been remitted on time.
Late Payment Penalty
If tax is due, the penalty for underpayment of the surcharge is 10% of the surcharge due or $50, whichever is greater.
Late Filing PenaltyThe Commissioner of Revenue Services may impose a $50 penalty for the late filing of any return or report that is required by law to be filed.