HARTFORD, CT— August means back-to-school shopping, and once again, the state will forego millions in sales tax revenue in order to give families a break on clothing and footwear.
The event, now in its 18th year, begins Sunday, Aug. 19 and runs through Saturday, Aug. 25.
During the “Sales Tax Free Week,” most individual items of clothing and footwear priced under $100 will be exempt from the sales tax. For items costing $100 or more, sales tax is calculated on the full purchase price.
Connecticut shoppers are expected to benefit from approximately $4.8 million in sales and use tax savings during this year’s state’s annual sales tax holiday. Last year, the state gave up about $4.1 million in sales tax revenue during the holiday week.
“Sales Tax Free Week has become an anticipated tradition in Connecticut, offering savings on a variety of clothing and footwear purchases at a time of year when families do their back-to-school shopping,” Connecticut Department of Revenue Services Commissioner Scott Jackson said.
“Sales Tax Free Week is a great platform to promote Connecticut’s retail sector, and an opportunity for shoppers to take advantage of savings and incentives,” Jackson added.
This one-week exclusion applies to clothing sales made by Connecticut and out-of-state retailers to Connecticut customers.
The exclusion applies to each item sold. For example, it applies to each item of clothing or footwear sold, regardless of how many items are sold to a customer during the transaction.
Articles of clothing and footwear that are normally sold as a unit (for example, a pair of shoes) must continue to be sold in that manner; they cannot be separated and sold as individual items to qualify for the exclusion.
Example: A suit normally sells for $150. The retailer cannot sell the pants for $75 and the suit coat for $75 in order to allow a shopped to qualify for the tax exemption. However, if the pants and the coat are normally sold as separate items with separate price tags, the exclusion may apply to each item sold.
Legislation enacted in 2015 reduced the exemption to clothing and footwear costing less than $100 per item.
Connecticut’s sales and use tax is 6.35 percent.
For more information on the rules and regulations of Sales Tax Free Week, visit this website.
