Governor Reminds Consumers Sales

Tax-Free Week Is August 17–23

Governor M. Jodi Rell reminds Connecticut residents of the opportunity to take a holiday from the state sales tax on clothes and shoes during the week of Sunday, August 17, through Saturday, August 23.

“Each year, Connecticut residents and businesses look forward to this holiday from the sales tax,” Gov Rell said. “Shoppers are able to get more for their money, and retailers see an increase in business, which benefits the state’s overall economy. This week in August has become very popular.

“Sales Tax-Free Week may signal the end of summer for school children, but it is a great time of year for shoppers and retailers,” Gov Rell said. “Between end-of-summer sales and back-to-school shopping, Sales Tax-Free Week enables both residents and tourists to make the most of their shopping dollars on clothing and footwear purchases.”

During Sales Tax-Free Week, individual items of clothing and footwear priced less than $300 are exempt from the 6 percent Connecticut sales and use tax. For one week only, the increased exemption replaces the standard exemption for clothing under $50.

The Sales Tax-Free Week is in its ninth year. Consumers saved $3.8 million in taxes during the 2007 Sales Tax Free Week.

“Sales Tax-Free Week is the perfect time for shoppers to make some of those higher-priced purchases, like much-needed winter coats,” Gov Rell said. “Items like this can be placed on layaway and still benefit from the tax savings. Also, any coupons or discounts that bring the final price of an item under $300 benefit from the exemption.

“The summer holiday from the state sales tax helps shoppers maximize their household budgets, helps retailers with increased sales, and gives Connecticut’s economy a boost,” the governor said.

Exceptions to the tax-free week include accessories and sports equipment. Sales tax on purchases costing $300 or more is calculated on the full cost of the item.

For answers to questions about the Connecticut Sales Tax-Free Week for both consumers and retailers, the Department of Revenue Services has posted details on its website at www.ct.gov/drs. The website also has links to other publications to help consumers understand the regular sales and use tax exemption on clothing and footwear.