Connecticut shoppers are poised to get a one-week tax break, beginning Sunday.
The state's annual Sales Tax Free Week, which runs through Aug. 21, exempts retail purchases of most clothing and footwear priced under $100 from Connecticut's 6.35% sales and use tax. The exemption applies to each eligible item costing under $100, regardless of how many of those items a customer purchases.
The sales tax holiday, which costs the state about $5 million in lost tax revenue, applied to clothing and footwear costing less than $300 per item in past years and was ultimately scaled back. However, many retailers are expected to offer additional discounts during the week, which is a popular time for back-to-school shopping.
Connecticut Retail Merchants Association President Timothy G. Phelan said the week gives residents an opportunity to save money and also "reconnect with local retail businesses that have endured the business challenges of the past year and a half,” referring to the pandemic.
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“The COVID-19 economy, this year, has put retail businesses, particularly smaller independent retailers under increasing pressure, just to stay in business and to stay in business here in Connecticut,” Phelan told state lawmakers earlier this year during a public hearing.
Details about Connecticut’s Sales Tax Free Week, including a list of items that are exempt or taxable, can be found on the Department of Revenue Services website.
