CT’s tax-free week will cost state $4.1 million in lost revenue

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 17^th 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.”