Connecticut Will Lose $4 Million In Revenue During Sales Tax-Free Week

Aug 18, 2017

Connecticut’s sales tax-free week goes ahead from this Sunday, despite the state’s continuing fiscal crisis. The Department of Revenue Services has estimated it will forgo about $4 million in sales tax during the course of the week.

Items of clothing and footwear priced under $100 are exempt from sales tax. The week has been a staple of the back-to-school period for the past 17 years in Connecticut.

Tim Phelan, President of the Connecticut Retail Merchants Association, said allowing the week to go ahead is the right decision.

“Most legislators, because this is a bipartisan issue, see the value to consumers of the sales tax-free week,” he said. “Retailers of course, use it as an opportunity to showcase their products and their customer service, and all the value that they bring. But the bottom line is, consumers benefit this week.”

Phelan said it's also an opportunity for brick-and-mortar stores to compete on a level playing field with online retailers, many of whom do not charge sales tax.

Sales tax-free week lasts through Saturday, August 26.