Mark Your Calendars: ‘Tax Free Week’ 8/16 – 8/22
If you are planning on Back-to-School shopping, heads up! Beginning Aug. 16 through Aug. 22, articles of clothing or footwear under $100 will be sales tax free. The sales tax holiday is approaching, but the rules have changed.
The state used to allow you to buy items under $300 without paying a sales tax. Beginning this year, that threshold has been lowered to $100. This change is a direct result of the final state budget (which I strongly opposed and voted against) passed by the majority party and signed by the governor, which essentially adds to the already heavy tax burden on hard-working families.
Since sales tax is calculated after the use of any coupons or discounts, if the final price is less than $100, the sale is exempt from taxes. Clothing or footwear under $100 put on layaway is also tax-free.
Tax Free Week was first enacted in 2000, and applies to most clothing and footwear purchases intended for everyday use.
Goods not covered under the program include, but are not limited to:
• Clothing or footwear specifically designed for athletic activities: football cleats, specialty boots for fishing, hiking, skiing and other activities, as well as wet suits, helmets and headbands, etc.
• Accessories: jewelry, handbags luggage, umbrellas, wallets, watches, etc.
This one-week exclusion applies to clothing sales made by Connecticut and out-of-state retailers to Connecticut customers.
Please consult with your local retailer, or the Department of Revenue Services (DRS) website: http://www.ct.gov/drs for information about the Connecticut Sales Tax Holiday Week, including of qualifying and non-qualifying items.
BACK TO SCHOOL SHOPPING FACTS
• $630 Amount the average family with children in grades K-12 plans to spend on back-to-school shopping
• $899 Amount the average college student or college family plans to spend on back-to-college shopping.
*Source – National Retail Association