#MIDDLEBURY #TAXFREEWEEK
Sunday, Aug. 21, through Saturday, Aug. 27, is the one week out of the year when the state of Connecticut does not collect sales tax on certain clothing and footwear items. This is limited to items with prices of $100 or less. With the sales tax at 6.35 percent, this is a savings of $6.35 on a $100 item.
The Connecticut Department of Revenue Services posted this basic information on its website:
Nontaxable Sales of Clothing or Footwear During the “Sales Tax Holiday”: Sales or purchases of clothing or footwear costing less than $100 per item are not subject to Connecticut sales and use taxes during the exclusion week.
This one-week exclusion applies to clothing sales made by Connecticut and out-of-state retailers to Connecticut customers.
Exclusion applies to each item sold. The exclusion applies to each item of clothing or footwear sold, regardless of how many items are sold to a customer on the same invoice. However, for any item that costs $100 or more, sales tax applies to the entire price of that item.
Articles normally sold as a unit. Articles that are normally sold as a unit (for example, a pair of shoes) must continue to be sold in that manner; they cannot be separated and sold as individual items to qualify for the exclusion.
Example: A suit normally sells for $150. The retailer cannot sell the pants for $75 and the suit coat for $75 in order to qualify the suit for the exclusion. However, if the pants and the coat are normally sold as separate items with separate price tags, the exclusion may apply to each item sold.
Details on the website include the information that discounts and coupons may reduce an item’s price below $100. If they do, that item is tax free as its cost is less than $100.
For a list of examples of clothing and footwear that are and are not sales-tax exempt this week, visit this site.
