New Connecticut Sales Tax Exemptions in 2015
- Nov 17, 2014 | Gail Cole
Update, 7.1.2015: The clothing exemption is not restored. Clothing costing less than $50 remains subject to sales tax. See the DRS for additional information.
2015 will bring a couple of new sales and use tax exemptions for the taxpayers of Connecticut.
Clothing and footwear costing less than $50 per item (or pair) will be exempt from Connecticut sales tax, effective July 1, 2015.
Under the law, clothing and footwear do not include the following:
- Special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for the athletic activity or protective use for which it was designed. (Alas, your kids’ cleats are taxable.)
- Jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items carried on or about the human body but not worn on the body in the manner characteristic of the clothing intended for the sales tax exemption.
It is not unusual for clothing to be exempt, or at least partially exempt, from sales tax. In fact, sales tax laws around clothing can get a little crazy. For example, there is a partial exemption for clothing in both Massachusetts and New York, but for different amounts. And numerous states, including Connecticut, offer an exemption for clothing during annual sales tax holidays.
Nonprescription drugs and medicines
Effective April 1, 2015, nonprescription drugs and medicines for use in or on the body are exempt from sales tax. This applies to the following:
- Vitamin and mineral concentrates
- Dietary supplements
- Natural or herbal drugs or medicine
- Cough, cold, asthma, allergy or antihistamine products
- Antacids, laxatives, anthelmintics, emetics, and antiemetics
- Analgesics, antibiotic, antibacterial, antiviral, antifungal, antidiarrheal, and steroidal medicines
- Antiseptics, astringents, and anesthetics
- Any ear, eye, or nose medication.
The exemption does not apply to cosmetics, dentifrices, mouthwash, shaving and hair care products, soaps, or deodorants.
Easy come, easy go, easy come again.
Connecticut provided the same sales and use tax exemption for nonprescription drugs and medicines in the past, but eliminated it in 2011. It is anyone’s guess how long this exemption will endure.
Read the ins and outs of both exemptions in 2013 (PA 13-184).
Manage sales tax exemptions in the cloud. Learn more.