HARTFORD – State Sen. Joseph J. Crisco, Jr., D-Woodbridge, vice-chair of the legislature’s Commerce Committee,
today underscored the dual purpose in Connecticut’s week-long sales tax
moratorium next week.
The annual event is meant to provide direct
assistance to families by temporarily eliminating
the 6.35 percent sales tax for what is traditionally one of the busiest
weeks of the year in terms of retail sales.
The sales tax hiatus is also intended
to spur sales, help retailers clear shelves and move merchandise, and
increase foot traffic in traditional hubs of back-to-school preparation, Crisco said.
According to the state Department of Revenue
Services, the state is prepared to forgo some $7 to $8 million in
sales tax revenue to provide this economic stimulus.
“This initiative has now been part of
Connecticut’s landscape for more than a dozen years, giving families
across our state a helping hand as they face significant expense getting
children outfitted for the new school year,” Crisco said.
“The cumulative savings of that sales tax on
classroom supplies, clothing, footwear, and cold weather gear adds up
to a meaningful amount very quickly.”
Connecticut’s sales tax-free week
applies to most clothing and footwear purchases of individual items that
cost under $300; Connecticut is one of only two states to schedule a
full sales tax-free week.
“In terms of generating a boost for our
local economy, I liken our sales tax hiatus to any other tax credit or
exemption we have in state statute – an investment of state revenue with
an expected return of increased sales and
overall economic activity,” Crisco said.
“A 6.35
percent savings is often enough to encourage people from neighboring
states to visit or stop off and shop in our state.”
“And if residents and visitors work up
an appetite while shopping, that’ll potentially help Connecticut’s
restaurant businesses, too,” Crisco added.
Connecticut’s sales tax-free week begins each year on the third Sunday in August and runs through the following Saturday, Crisco said.
This is a press release from Crisco's office.
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