Tucked in Gov. Ned Lamont’s budget proposal is the elimination of Connecticut’s sales tax free week, a popular time for families to do their back-to-school shopping.
Eliminating the weeklong tax holiday would save the state about $5 million a year, Lamont’s budget office estimated.
During one week in August, clothing and footwear costing less than $100 a piece is exempt from the state’s 6.35 percent sales tax. When the program began in 2000, the exemption amount was $300. The sales tax free week became even more popular when the state eliminated a previous yearround sales tax exemption on clothing and footwear costing less than $50 in 2011.
“Sales Tax Free Week has become an anticipated tradition in Connecticut, offering savings on a variety of clothing and footwear purchases at a time of year when families do their back-to-school shopping,” Department of Revenue Services Commissioner Scott Jackson said in a news release last August. “Sales Tax Free Week is a great platform to promote Connecticut’s retail sector, and an opportunity for shoppers to take advantage of savings and incentives.”
Gov. Ned Lamont pitches tolls, union giveback and an expanded sales tax to close a two-year $3.7B deficit »
To close a projected two-year budget deficit of $3.7 billion without raising the income tax or sales tax rate, Lamont has also proposed expanding the sales tax to include a variety of items and services that are not currently taxed, including legal services, tax preparation services, haircuts, massages, parking, college textbooks and newspapers.