Tax-Free Shopping Begins Sunday

Don't give in to that impulse purchase just yet.  If you wait two more days, you can save the state's 6% sales tax on clothing and footwear that costs less than $300. 

The tax-exempt week begins on Sunday, August 15 and will continue through Saturday, August 21.

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

"There's no sunset on it," said Sarah Kaufman, Director of Communications for the Department of Revenue Services. " Every year we get calls starting about May from retailers confirming it's still there. We tell them it's not going away."

In Westport, some retailers like the tax discount, but believe it doesn't add a significant amount of business.

"It's not a big selling point," said Kristy Larson, manager of Soleil Toile.

The reason why people don't flock to the lingerie and swimsuit store is because there aren't many people around, according to Larson. She said that many Westporters are still on vacation and won't be back for another week.

Clothing that costs less than $50 is tax exempt year round, so next week's holiday applies to items that cost between $50 and $300. At Metro Swimwear, located across from the Westport Weston Family Y, the majority of the items cost less than $50.

"I wouldn't say there's a huge bump [in business]," said Mary Cleveland, manager. "There are probably some forward thinking people who shop for the next [swim] season."

In past years, she said many shoppers were unaware of the tax exemption, so the final price was a pleasant surprise for them.

"That happens an awful lot," Larson said.

The shoppers' savings means less money for the state.  Kaufman said Connecticut expects to forego $3.5 million in revenue this year, slightly more than the $3.1 million shoppers saved last year.  That's just fine with her.

"The program is an overall benefit to the state," Kaufman said.  "It's spurring on the economy.  People have an opportunity to save money.  They take the savings from sales tax and they put it into other purchases."

While some stores don't see a huge impact, others, such as the Goodwill Store, see a significant increase in buying.

"Tax free [shopping] is good for business," said Dorothy Viets, manager of community relations. "We send out e-mails and post signs to let [customers] know. It does work."