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.
Legislative changes such as those recently enacted in Connecticut are one good reason to implement an automated sales tax solution. Learn more.
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.