Connecticut Seeks Lost Sales Tax Revenue From Online Sales | Connecticut Public Radio
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Connecticut Seeks Lost Sales Tax Revenue From Online Sales

Mar 28, 2017

Connecticut is stepping up efforts to collect state sales taxes not being paid by online and out-of-state retailers.

Current state law requires out-of-state sellers with a substantial economic presence in the state to collect and remit Connecticut sales tax.

But the Department of Revenue Services estimates at least $70 million is being evaded annually.

DRS Commissioner Kevin Sullivan said it's unfair when only in-state businesses "bear the burden of tax collection and the pricing disadvantage of including sales tax" while out-of-state businesses offer the same goods and services, but sales tax-free.

Sullivan said DRS plans to close this loophole for big retailers doing business in Connecticut, not out-of-state companies doing a modest amount of business in the state.

The effort is being supported by the Connecticut Retail Merchants Association.