Debbie’s Daily Dose of Food for Thought
"Taxes, after all, are dues that we pay for the privileges of membership in an organized society." –Franklin D. Roosevelt
President Roosevelt may be right, but it is still difficult to get used to higher taxes. I visited the State of Connecticut Department of Revenue Services website to read and have a better understanding of the new laws. Here is an overview of the recent changes that took place on .
Sales Tax
Connecticut’s sales tax has been raised from 6 percent to 6.35 percent. Also, clothing and footwear costing under $50 are now taxable, as are non-prescriptions drugs, products to help you stop smoking, and cloth, fabric and yarn for non-commercial use.
Use Taxes
The room occupancy tax for hotel rooms has changed from 12 percent to 15 percent. Car rentals tax rates have been raised from 6 percent to 9.35 percent for passenger vehicles rented for less than 30 days and “luxury” items will now be charged 7 percent tax. For more details about this, click here.
New Taxable Services
Many services are now taxable. A few of them include yoga classes held at a studio, valet parking at airports, pet grooming and boarding, and spa and manicure services. To view the entire list, click here and scroll down to the “New Taxable Services” section.
Sales Tax Free Week
Lucky for us, the “Sales Tax Holiday” week will still take place this year! Clothing and footwear costing less than $300 will be tax exempt from Sunday, Aug. 21 through Saturday, Aug. 27. It might be a good idea to do your back-to-school and fall shopping during this time.
