Connecticut’s annual tax-free week will cost the state an estimated $4.1 million in lost tax revenue, according to the Department of Revenue Services; not good news for the cash-strapped state, but certainly a boon for consumers.
The 17th annual tax-free week runs Aug. 20-26, and allows shoppers to buy clothing and footwear priced under $100 without paying sales and use tax. For items costing $100 or more, sales tax is calculated on the full purchase price.
“Retail sales are an important part of any state economy, including the jobs involved,” Revenue Services Commissioner Kevin B. Sullivan said. “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.”