Connecticut Governor Malloy signed the state’s budget bill, May 4th. The bill has far ranging effects on taxation in the state including raising multiple tax rates and requiring sales tax collection by remote sellers. The changes will go into effect on July 1. A representative at the State Department of Revenue stated this morning that more information should be available on their website in the next several days.
Here is a brief synopsis of changes to the sales tax:
- Sales and Use Tax Rates: the general rate will increase from 6% to 6.35%
- Remote Seller Nexus (Amazon) Provision: out -of-state on-line retailers will be required to collect sales and use tax on purchases made as a result of referrals from in-state affiliates
- Sales and Use Tax Exemptions Eliminated: any exemptions are eliminated in this year’s budget including the exemptions for non-prescription drugs and clothing and footwear under $50, and knitters beware sales tax will now apply to your purchases of yarn. Stock up now!