Connecticut to Tax Website Hosting Services, October 2015
- Jul 7, 2015 | Gail Cole
Charges for the creation, development, hosting and maintenance of a website will be subject to a 1% sales and use tax in Connecticut, effective October 1, 2015.
Computer and data processing services as defined in Conn. Gen. Stat. §12-407(a)(37)(A) and Conn. Agencies Regs. §12-426-27(b)(1) have been subject to the reduced 1% sales and use tax rate since July 1, 2001. However, the creation, development, hosting and maintenance of websites was excluded from the tax until recent legislative changes.
Additional guidance will be released by the Connecticut Department of Revenue Services in the coming weeks.