Connecticut State Sales Tax – A Quick Guide for Businesses

The State Spot Light Series – CT

Connecticut State Flower

Connecticut State Sales Tax Rate: 6.35% (Not including local rates)
Phone number to the CT Department of Revenue Services:
860-297-5962. There is an automated service

Economic Nexus?

Yes, but with added stipulations.

Threshold: $250,00 sales or more
AND
200 transactions

Also required is solicitation of sales, that can be anything from an email blast, to mailed newsletters or catalogs. Almost anything that involves a business intentionally contacting a customer to get sales

Effective: December 1, 2018

Connecticut State Sales Tax Due Dates:

Connecticut State Sales Tax Due Dates 2019
Business and Tax Return Due Dates (CT DRS)

When a business registers in Connecticut, they are set up to file either monthly or quarterly. If a business sells less than $1,000 in the prior 12 months, they are automatically switched to a yearly filing status. Conversely, if a business makes more than $4,000 in 12 months, the business is switched to monthly due dates.

Sales Tax Holiday?

Yes. Connecticut state sales tax holiday actually goes for a week, instead of the more common weekend. It is held on the third Sunday in August to the following Saturday. It applies to clothing, footwear, and some accessories that cost less than a hundred dollars. See the full list of examples here, from the CT Department of Revenue Services.

Connecticut State Flag

Amazon Fulfillment Center?

Yes, Amazon does have 2 warehouses in the state, so sellers beware. Always remember that Amazon moving your product to warehouses in specific states can trigger nexus.

Weirdest Tax Law:

Yoga mat

Connecticut residents have one of the highest tax burdens in the United States, but high taxes aren’t the only things that raise eyebrows. Connecticut has very specific lines on what is exempt and what is taxable. For example, while going to a sporting event in Connecticut is not taxable, if you attend any athletic courses for yourself at a yoga studio, you will be taxed. Coin operated car washes are also on the taxable list.

 

We’re making our way though all fifty states. Check out our State Spotlight category to see all that we’ve done so far.

Please note: this blog is for informational purposes and should not to be considered, or used in place of, professional advice for your specific situation.

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