Annual Tax-Free Shopping Week in Connecticut

The 11th annual Sales Tax Free Shopping Week has kicked off in Connecticut, and lasts until Saturday. Residents are currently enjoying tax-free shopping on most clothing and footwear, which started Sunday.

The Department of Revenue Services says items below $300 are exempt from Connecticut state sales tax, which just increased to 6.3 percent from the former rate of 6 percent.

Items placed on layaway August 21-27 are also exempt from tax, as are internet sales made during the week.

Items that are considered “day-to-day” wear are exempt from tax. Special clothing and athletic or protective footwear do not qualify for tax exemption, nor do accessories or jewelry.

Kevin Sullivan, a Department of Revenue Services commissioner, told NBC Connecticut that the tax holiday costs the state over $7.4 million in lost income.

The tax-free event is designed to spur retail activity, and to save back-to-school shoppers much needed money during the economic downturn.

Maryland and Massachusetts just concluded their state sales tax holidays this weekend, and earlier this month, Alabama, Florida, Louisiana, and 13 other states held tax-free weekend events.

The Department of Revenue Services for the state of New York is prohibited to answer questions about a tax exemption event in the state this year, but spokesperson for the Department of Taxation and Finance, Susan Burns, spoke to The Christian Post.

Burns confirmed that the state of New York has not participated in a sales exempt event since 2006 and will not hold one this year. The decision to have a tax-free sales event lies within the state budget, and lawmakers this year have ruled out the option.

New Yorkers currently enjoy tax-free purchases of clothing items and footwear that costs under $55. After April 1, 2012, New York State will revert back to its 2006 policy of clothing and footwear under $110 going untaxed, Burns told CP.