DRS: Sales and Use Tax Changes

Sales and Use Tax Changes

 

Effective from passage (June 3, 2004); applicable to sales occurring on or after January 1, 2002:
  • HOSPITAL GIFT SHOPS OPERATED BY NON-PROFIT ORGANIZATIONS: There is a new exemption for sales of tangible personal property by an exempt 501(c)(3) organization on the premises of a hospital (gift shops).  2004 Conn. Pub. Acts 201, Sections 11 and 12.

Effective from passage; applicable to sales occurring on or after the effective date (May 12, 2004):

  • COIN AND CURRENCY SERVICES: Coin and currency services provided to a financial service company by or through another financial services company are not subject to sales or use tax.  The new law excludes "coin and currency services provided to a financial service company by or through another financial services company" from taxable private investigation, protection, patrol work, watchman and armored car services. “Financial services company” is defined in Conn. Gen. Stat. § 12-218b(a)(6)(A) – (H).  2004 Conn. Pub. Acts 136, Section 44.

Effective July 1, 2004:

  • COMPUTER AND DATA PROCESSING SERVICES: The termination of the the tax on computer and data processing services that was scheduled to take place on July 1, 2004 was repealed. Therefore, computer and data processing services remain taxable indefinitely at 1%. 2003 Conn. Pub. Acts 1 (June 30 Spec. Sess.), Sections 95 & 96.

  • SALES OF NEWSPAPERS AND OF MAGAZINES BY SUBSCRIPTION: The exemption from sales and use taxes for the sales of magazines by subscription, including publications containing only puzzles, and for the sales of newspapers (by subscription and otherwise) is restored. However, sales tax will continue to apply to over-the-counter sales of magazines. 2003 Conn. Pub. Acts 1 (June 30 Spec. Sess.), Section 98.

  • SALES TAX EXCLUSION WEEK ON ITEMS OR CLOTHING AND FOOTWEAR COSTING UNDER $300:  The annual sales tax exclusion week for articles of clothing or footwear costing under $300 during the week each year beginning with the third Sunday in August and ending the next Saturday has been restored.  For 2004, the sales tax exclusion week for articles of clothing or footwear costing under $300 is Sunday, August 15 - Saturday, August 21.  2004 Conn. Pub. Acts 218, Section 13.

  • SALES TO ACUTE CARE, FOR-PROFIT HOSPITALS: There is a new sales tax exemption for sales of tangible personal property and services to an acute care, for-profit hospital that is operating as such as of the effective date, for the purposes of such hospital in connection with constructing and equipping any facility of such hospital for which a certificate of need was filed before and is pending on the effective date of this section.  (This exemption replaces the exemption added in the 2003 Special Session for medical equipment and supplies sold to and by acute care for-profit hospitals that would have been effective for sales occurring on and after July 1, 2005.)  2004 Conn. Pub. Acts 2 (May Spec. Sess.), Sections 103 and 104.

  • CLEAN ALTERNATIVE FUEL VEHICLES, CONVERSION EQUIPMENT AND FILING STATION EQUIPMENT: The sales tax exemptions for clean alternative fuel vehicles, conversion equipment and filling station equipment in Conn. Gen. Stat. Sections 12-412(67) - (69) has been extended to include sales made prior to July 1, 2008.  These exemptions were previously set to expire on July 1, 2004.  2004 Conn. Pub. Acts 231, Section 1.

  • Any retailer with sales in more than one town in Connecticut that files a sales and use taxes return shall “disaggregate” the information in the return to indicate by town the amount of tax collected.  This exemption is effective for calendar quarters commencing on or after July 1, 2004. More information on this requirement will be forthcoming.  2004 Conn. Pub. Acts 2 (May Spec. Sess.), Section 25.

Effective October 1, 2004 

  • PASSENGER MOTOR VEHICLES UTILIZING HYBRID TECHNOLOGY: There is a new sales tax exemption for sales of any passenger car utilizing hybrid technology that has an EPA estimated highway gasoline mileage rating of at least 40 mpg.  The exemption is effective for sales made on or after October 1, 2004 but prior to October 1, 2008.  2004 Conn. Pub. Acts 231, Section 7.