Connecticut Addresses on Internet Services and On-Line Sales

In a policy statement, the state of Connecticut looks at the tax issues surrounding the internet. Charges for internet access services are exempt from tax as of July 1, 2001. If a Connecticut retailer accepts online orders and ships or delivers them to a Connecticut address, the retailer is responsible to collect tax on the transaction. If a purchaser of property is not assessed tax by the retailer, they are responsible to self-assess the appropriate 6% tax. Electronically delivered software is taxable at 1%. Creation and maintenance of web sites is an exempt service. Web site providers may also be considered agents for sellers in the state, depending on the scope of the services provided. If the web site provider located in Connecticut performs other services, such as billing or collecting billing, it could be considered an agent. (Policy Statement 2004(2), Connecticut Department of Revenue Services, Nov 3, 2004)

Posted on November 30, 2004