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Tuesday, August 13, 2013

Crisco applauds sales tax moratorium week

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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