Are sales tax changes coming to Connecticut?

On Behalf of | Feb 15, 2019 | Sales Tax

Lawmakers in Connecticut are trying to decide if they should increase taxes on certain products that are for sale in the state. Sales tax laws are frequently changing, so this is not an out-of-the-blue thing. It is something that business owners and residents need to follow, though, because if changes are made, they need to adjust how much they collect or pay on these items.

So, what products are under review for new or increased sales tax? First up is wheelchair ramps — the most recent proposal would make these items exempt from sales tax. Second is liquid vaping products — it is proposed that these products be taxed at the same rate as cigarettes and other tobacco products. Third up is gym memberships — it is proposed that these be sales tax exempt. The fourth and final item to be discussed here is home-sharing services, such as Airbnb — lawmakers would like to see a sales tax increase of 6.35 percent.

One state representative has suggested that state sales tax be increased from .5 percent to 6.85 percent for all other items. The money raised from this tax increase would go back to town and cities that need it. Numerous people are in opposition of this proposal and believe it will cause people to leave the state.

Other sales tax proposals are also currently under review by Connecticut lawmakers. If any of them pass, people will need to adjust how much they collect or pay in sales tax. Should any mistakes be made, it could come back to bite them when their tax returns are reviewed. Those who have questions about sales tax laws and how these laws affect them can turn to an experienced tax attorney for answers.

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