Connecticut Issues Reminder of Rate Decrease Cancellation

In a press release, the Connecticut Department of Revenue Services reminds taxpayers that the sales and use tax rate will not decrease and will remain at 6%. Previously in September 2009, a law was passed to decrease the sales and use tax rate from 6% to 5.5%, beginning January 1, 2010. This rate decrease was contingent on the general fund’s gross tax revenue not falling below 1% of the initial budget estimates. Consequently, the rate decrease has been cancelled because the tax revenue projections developed by the Office of Policy and Management, the Office of Fiscal Analysis, and the Office of the State Comptroller all show tax revenues falling below 1% of the initial estimates. (Press Release, Connecticut Department of Revenue Services, December 21, 2009)

Posted on January 6, 2010