By Kathy Kennedy
State Rep., R-119
Kathy Kennedy
A main staple in the month of August has always been the annual tax-free week right before Connecticut students head back to school. This year legislators fought back attempts by the governor to end the weekly tax break event which benefits so many state families.
Per state statute, the 19th annual Sales Tax Free Week begins on Aug. 18, the third Sunday of August, and runs until the following Saturday, Aug. 24.
Tax Free Week was first enacted in 2000, and applies to most clothing and footwear purchases intended for everyday use. Goods not covered under the program include items that are solely intended for use in sporting activities and accessories such as jewelry, watches, handbags, and wallets.
According to the National Retail Association, the average families with children in grades kindergarten through twelfth grade spend about $600 on back-to-school shopping. To better ease the financial burden, the annual one-week sales and use tax exclusion eliminates the sales tax on clothing and footwear costing less than $100.
Since its inception, Connecticut shoppers have received approximately $4.2 million in sales and use tax savings each year during the state’s annual sales tax holiday.
Customarily, Connecticut retailers offer additional clothing and footwear discounts during Sales Tax Free Week, resulting in even more savings. Sales Tax Free Week is a great platform to promote Connecticut’s retail sector, and an opportunity for shoppers to take advantage of savings and incentives.
Connecticut’s one-week tax holiday applies to each eligible item of clothing or footwear sold for less than $100, regardless of how many items are sold to a customer on the same invoice. Tax is calculated on the final sales price of an item, after all reductions and coupons are applied. Items that cost $100 or more are subject to sales and use tax for the entire price of that item.
Considering how many state residents utilize the tax benefit holiday, one could make a serious case that Connecticut should expand the program and give more tax relief to Connecticut’s middle-class families.
Unrelated to the tax-free week, but just as important for some, parents and college students should remember that college textbooks for students enrolled at institutions of higher education are exempt from sales and use taxes if the student presents a valid student identification card to the retailer. Read more here.
As always, if you have questions about this issue or any other concern about our state government, please contact me by phone at 1-800-842-1423 or by email at Kathy.Kennedy@housegop.ct.gov.