Connecticut sales tax holiday, August 2016

Connecticut’s 16^th annual tax-free week runs August 21-27, 2016.

During the sales tax holiday, a wide variety of clothing and footwear with a sale price of under $100 is exempt from Connecticut sales and use tax. Bargains are plentiful, and not just because of the lack of tax. According to Connecticut Department of Revenue Services Commissioner Kevin B. Sullivan, “Many retailers schedule sales to coincide with sales tax-free week, which helps shopper save even more money because sales tax is applied after the use of any coupons or discounts. So while the price of an item may start above the $100 tax threshold, after discounts are applied, it becomes less than $100 and is not subject to sales tax that week.”

Certain products are subject to tax even when meeting the price restriction. These include, but are not limited to:

• Boots (fishing, mountain climbing, paddock, riding, ski)
• Martial arts attire
• Shoes (ballet, bicycle, bowling, cleated, football, golf, track, jazz, tap, turf)
• Ski pants
• Waders
• Wet suits

The more tax consumers save, the less revenue the state accumulates. The 2016 tax-free period is expected to reduce state sales and use tax revenue by approximately $4.5 million. Learn more about the Connecticut sales tax holiday.

Participation in the tax-free week is mandatory for retailers selling in Connecticut. Tax automation software facilitates compliance. Learn how it works.