Sunday starts annual tax holiday

During Connecticut”™s 15th annual tax holiday week, a $6 million loss for the state will be a gain for shoppers.

From Aug. 16-22, retailers will not charge the state sales and use taxes for most items of clothing and footwear costing less than $100, according to  the Department of Revenue Services.

The legislature reduced the tax-free maximum from the yearly $299.99 to $99.99 in this year”™s biannual budget. The state expects to forego about $6 million in sales and use tax, about $1 million less than in 2014.

Department of Revenue Services Commissioner Kevin B. Sullivan said the annual “tax holiday” has become a staple of Connecticut”™s back-to-school shopping season. Many retailers schedule sales to coincide with sales tax-free week.

According to the National Retail Federation, a Washington, D.C.-based trade association, the combined spending for back-to-school and college shopping is second to the winter holiday shopping season. In a recent NRF study, families with children grades kindergarten through 12 reported planning to spend an average of $630 on pre-school shopping.

Laura Budd, marketing associate at the New Canaan Chamber of Commerce, said she put information about the tax holiday in the chamber’s newsletter. She said the tax savings is a good incentive for residents to shop local.

“It”™s a terrific opportunity for families to take advantage when they”™re in the process of making back-to-school investments,” Budd said. “I know the stores aware of it and are getting stocked for back to school. I”™m sure it will be a mutually beneficial week for the stores and the shoppers.”

More information about what is and is not exempt during the week is available at www.ct.gov/drs.