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Connecticut sales tax permits to be renewed biennially

  • Jun 30, 2017 | Gail Cole

 Connecticut sales tax permits must now be renewed every two years.

The Connecticut Legislature has adopted more measures to improve tax compliance and reduce the lag between tax collections and remittance. Already, as of January 1, 2017, the Connecticut Department of Revenue Services (DRS) does not renew seller’s licenses to any person or entity with an outstanding return. Now the state is reducing the period during which sales tax permits are valid, and allowing the department more flexibility in imposing more frequent collection requirements.

Sales tax permits to be renewed more frequently

Between July 1, 1985, and October 1, 2003, sales tax permits in Connecticut were valid for two years. Since then, they have been valid for five years. With the enactment of House Bill 7312 (Act 17-147), “Any permit issued on or after October 1, 2017, shall expire biennially on the anniversary date of the issuance of such permit unless renewed in accordance with such procedure and application form as prescribed by the commissioner.”

Enhanced sales tax remittance

The measure also grants flexibility to the DRS “in deciding when to end the requirement that certain taxpayers remit the sales tax.” The commissioner may require any delinquent taxpayer “to remit the tax collected during a weekly period on a weekly basis.” Weekly remittances are in addition to — not in lieu of — monthly or quarterly returns. For additional details, see the text of the bill.

Every state develops its own rules and regulations regarding sales tax permits, and failure to obtain or renew proper permits can lead to penalties, as in New York. Tax automation software helps businesses comply with changing sales and use tax requirements in all states. Learn more.

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.