Connecticut Tax Free Week: August 21-27

The economy is bad. The world, national and state news regarding financial markets, debt, recessions, is grim. In Connecticut,  that were enacted in an effort to eliminate the state’s massive deficit, but the end result may still not be enough.

“There’s been a lot of angst the last few weeks,” said Tony Sheridan, president of the Chamber of Commerce of Eastern Connecticut. “These have been tough weeks on everybody, from the small merchant to the retiree. There is a huge amount of uncertainty.”

Two of the changes were an increase in the retail tax from 6 percent to 6.35 percent, and the elimination of no tax levied on purchases under $50.

One bright spot for both retailers and consumers alike, however, is Tax-Free Week, which runs from Aug. 21-27. During this period, the state will not levy taxes on clothing and footwear purchases under $300.

The tax holiday week began in 2000 and has been an August staple in the state ever since. In 2006 the legislature considered doing away with the week, but quickly reconsidered. The Department of Revenue Services oversees the program.

“The tax exempt week is very important,” Sheridan said. "It provides a little relief, like a couple of good aspirins when you have a bad headache.”

To read the legalese about the week, click here.