Rell Promotes Sales Tax-Free Week For Back-To-School Sales

By Stephen Singer

Associated Press

FARMINGTON — The state will forfeit more than $3 million next week when the state temporarily suspends its sales tax for back-to-school shopping. And both political parties want to cash in on the good will during this election year.

Republican Gov M. Jodi Rell, flanked by shoes on a rack and mannequins modeling clothing, appeared at a Farmington mall Tuesday to urge a smattering of customers to shop heartily between August 15 and 21, when items costing up to $300 each will be exempt from the state’s six percent sales tax. Items that cost up to $50 each are exempt year-round from the tax.

“We came to share some good news with you,” Ms Rell told about half a dozen curious shoppers who gathered to see what all the commotion was about.

Rep Arthur O’Neill, R-Southbury, and Senate minority leader Lou DeLuca, R-Woodbury, appeared with the governor and said the tax exemption was a Republican idea.

The revenue loss is “not a huge drain, but more symbolic” that lawmakers will forfeit revenue to boost economic activity, Mr O’Neill said.

Mr DeLuca compared it to the federal tax cuts pushed by President Bush, which he said have helped improve the economy.

“The Democrats are experts on how to spend rather than how much to give to taxpayers,” he said.

But Democratic Lt Gov Kevin Sullivan credited the Democrat-controlled General Assembly for enacting the tax holiday.

Republicans “were there at the signing,” he said. “It didn’t happen without the initiative of the majority.”

Officials of the Connecticut Retail and Merchants Association praised the tax exemption, but said they have no statistics on corresponding sales.

Anecdotes show that retailers score large sales increases during the week the sales tax is dropped, and decline afterward when the tax reappears, Mr Sullivan said.

“The best that can be said is that it’s a nice thing,” he said.

Lawmakers initially decided to eliminate this year’s tax-exemption week in response to revenue shortfalls. But the legislature reversed course and enacted the exemption as the economy improved.

Twelve states and Washington, D.C., have enacted the tax holiday, including neighboring New York and Massachusetts, according to the Federation of Tax Administrators.