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Connecticut: Delinquent Taxpayers and New Exemptions

  • Aug 14, 2014 | Gail Cole

 If you're late paying sales tax in Connecticut, you may soon be required to remit payments on a weekly basis.

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.

Delinquent taxpayers

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

Looking ahead

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.

Keeping track of sales and use tax changes can eat up a lot of time and resources. Learn how sales tax automation software helps businesses save on both.

photo credit: 401(K) 2013 via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.