Gov. Ned Lamont has announced that Connecticut will hold its annual Sales Tax-Free Week from Sunday, August 18, to Saturday, August 24. This is the 24th year that the sales tax relief week has been offered.
During this weeklong sales tax holiday, retail purchases of most clothing and footwear items priced under $100 are exempt from the Connecticut sales and use tax. The exemption during Sales Tax-Free Week applies to each eligible item costing under $100, regardless of how many of those items are sold to a customer on the same invoice.
“This year’s tax-free holiday lands a little earlier to give families a head start for the back-to-school season, which will be here before we know it,” Lamont said. “As always, I encourage shoppers to take the time to stop by some of Connecticut’s local businesses and support our amazing small business community.”
Lt. Governor Susan Bysiewicz said, “Parents and caregivers can save on needed clothing and everyday footwear items to help their kids kick off the school year with confidence. I hope our residents will take advantage of these savings and shop at their local small businesses, allowing those dollars to be reinvested in their communities.”
Online sales of clothing or footwear costing less than $100 sold during Sales Tax Free Week are not subject to sales tax when the customer pays the full purchase price or is fully charged for the item during Sales Tax Free Week regardless of when the item is delivered.
If the online payment was made before the Sales Tax-Free Week, even if the item was delivered during Sales Tax Free Week, the item would be subject to sales tax. If an item is backordered and the online payment is not charged until such time as the delivery takes place after the Sales Tax-Free Week, sales tax would apply on the charge.
Multiple items that qualify for exemption during the Sales Tax Free Week can be purchased at one time and all such items will still qualify for exemption. For example, if a customer purchases several items at the same time and each item that is purchased costs less than $100, sales tax will not apply on the total charge.
Sales tax is calculated on the final price paid for the item after all coupons and other reductions have been applied. If a retailer offers a discount to reduce the price of an eligible item to less than $100, no sales tax is collected. Similarly, if a retailer accepts a coupon from a customer when buying an eligible item, the sales tax is calculated on the price of the item after the coupon is applied. Therefore, if the coupon reduces the price of the item to under $100, the item is not subject to tax during the tax-free week.
