Connecticut Specifies Methods for Weekly Sales Tax Remittance

Enacted legislation specifies the methods for weekly sales tax remittance in Connecticut, effective January 1, 2018. The Commissioner of the Connecticut Department of Revenue Services is authorized to require any taxpayer who is delinquent to remit sales tax on a weekly basis. The enacted legislation requires such taxpayers to remit the tax through a service provider certified by the Streamlined Sales Tax Governing Board unless they elect to establish a separate account with a financial institution and deposit into that account the taxes collected or received within two business days of that collection or receipt. If this option is selected, the taxpayer may select a bank, Connecticut credit union, federal credit union, an out-of-state bank with a Connecticut branch, or an out-of-state credit union that maintains an office in Connecticut.

If a taxpayer withdraws funds from that account for any purpose other than to remit tax due, the person will be guilty of larceny and each unauthorized withdrawal will constitute a separate offense. A taxpayer’s choice for weekly remittance is irrevocable and remains in effect until the commissioner notifies the taxpayer that they are no longer required to weekly remit the tax. The commissioner is prohibited from waiving any penalties imposed on taxpayers who must remit sales tax on a weekly basis. Taxpayers that are obligated to file monthly or quarterly returns, including taxpayers who must remit sales taxes on a weekly basis, are required to file returns electronically and make each weekly remittance via electronic funds transfer (EFT). (Ch. 36 (H.B. 7109), Laws 2017)

Posted on November 28, 2017