Governor Rell: Connecticut’s Annual

Sales Tax-Free Week Runs August 16-22

This Year’s Tax-Free Week Especially Welcome for

Shoppers Amid Tough Economic Times, Governor Says

            Governor M. Jodi Rell today said that as households across Connecticut look for ways to stretch their shopping dollars, consumers should remember that the state’s annual sales tax-free week can help maximize back-to-school budgets. This year’s event runs from Sunday, August 16, through Saturday, August 22.

            During the Sales Tax Holiday Week, most individual items of clothing and footwear priced under $300 are exempt from Connecticut’s sales and use tax. During that week, the increased exemption replaces the standard exemption for clothing under $50. For purchases costing $300 or more, sales tax is calculated on the full cost of the item.

            “Every year, shoppers and retailers look forward to the third week in August as a way to boost their bottom line,” Governor Rell said. “And given the present state of the economy, the Annual Sales Tax Holiday Week has become even more important. Consumers can get the most for their money and merchants see an increase in sales – everyone benefits.”

            Governor Rell said many retailers schedule sales to coincide with sales tax-free week. This helps shoppers save even more money because sales tax is applied after the use of any coupons or discounts. Some items may start above the $300 threshold, but after discounts are applied they become less than $300 and are no longer subject to the tax that week.

            Connecticut has offered the week of sales tax-free shopping on clothing and shoes for nine years. The state’s non-partisan Office of Fiscal Analysis has projected that the state will forgo about $3.3 million during the 2009 holiday. However, Governor Rell said the benefits of the program to the state’s consumers and businesses far outweigh this temporary revenue loss.

            Check the Department of Revenue Services (DRS) Web site at www.ct.gov/drs for information about the Connecticut Sales Tax Holiday Week. The DRS Web site also has links to other publications to help consumers understand the regular sales and use tax exemption on clothing and footwear.

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