A weeklong break in paying sales taxes on many items may give Connecticut shoppers an extra incentive to stock up on necessities or an excuse to pick up items that have long been on their wish lists. Connecticut’s 18th annual sales tax free week starts Sunday and runs until Aug. 25.
“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,” said Connecticut Department of Revenue Services Commissioner Scott Jackson.
“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 said.
What is sales tax free week?
The 6.35 percent sales tax will be waived on retail purchases of most clothing and footwear items priced under $100, according to the Connecticut Department of Revenue Services.
The tax holiday is mandated by state law, but there are some exemptions of which items will be waived of their sales taxes.
What items will still have sales tax?
Any item priced at or above $100.
In addition, jewelry, handbags, fishing and ski boots, wallets and umbrellas all fall under the list of items that will still be taxed even if the price tag is under $100. Some items that aren’t frequently bought don’t make the cut either. You’ll still pay the sales tax if you want to buy lobster bibs, potholders, tap shoes or tennis gloves.
What if an item is already on sale?
As long as the price you pay at checkout is under $100 for an item that is eligible, the item is exempt from the sales tax. For example, if you purchase a pair of jeans that has been discounted from its original price of $120 to $90, you won’t have to pay the sales tax.
Can I still use coupons?
Yes. And you can save even more if you do. Tax is calculated on the final sales price of the item after all coupons and other reductions have been applied. So, if you manage to keep the cost of an item below $100 by using a coupon discount, the item is now sales tax exempt. Some retailers offer additional discounts or coupons to compound the savings for their customers.
What about online purchases?
It’s a little more complicated. But, as long as you pay for an item of clothing or footwear that is under $100 during the sales tax exemption week, you will not have to pay sales tax. If the item is ordered during the exemption week, but you don’t pay for the item until after the week has ended, the item will still be taxed.
Will handling and shipping charges put me over the $100 maximum?
No. The handling and shipping charges won’t be factored in when determining whether you owe sales tax. For example, If you buy a tax exempt item at a total of $97 dollars and an added shipping and handling fee brings your total to $102, the item will still be sales tax exempt.