Connecticut: Delinquent Taxpayers and New Exemptions
- Aug 14, 2014 | Gail Cole
During the last year, Connecticut Department of Revenue Services (DRS) has issued a special notice: 2014 Legislative Changes to the Sales and Use Taxes, Room Occupancy Tax, Prepaid Wireless E -9-1-1 Fee and Admissions Tax.
A new policy towards delinquent taxpayers is scheduled to take effect at some point in early 2015. Certain delinquent taxpayers may be required to remit sales and use tax payments on a weekly basis. For these taxpayers, reporting periods will run Saturday through Friday and payments will be due the following Wednesday. DRS will contact affected taxpayers with additional information early next year.
Some delinquent taxpayers may have noticed another new policy that took effect July 1, 2014. The Department of Motor Vehicles is no longer granting or renewing a license to buy or sell cars to applicants with delinquent sales taxes. This new policy impacts taxpayers in the following industries:
- Car dealers (new and used)
- Motor vehicle repairers
- Motor vehicle limited repairers
The special notice also describes legislative changes that will not take effect until spring and summer, 2015.
Effective July 1, 2015, sales of clothing and footwear (“intending to be worn on or about the human body”) and costing under $50 per article or pair are exempt from sales and use tax.
Effective April 1, 2015, sales of certain nonprescription drugs (“for use in or on the body”) are exempt from sales and use tax. Examples include but are not limited to: analgesics, antihistamines, antiseptics, dietary supplements, steroidal medicines and vitamins. The following items are not eligible for the exemption: cosmetics, dentifrices, deodorants, hair care products, mouthwashes, shaving products, and soaps.
Additional information is available on the DRS special notice.
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