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The Connecticut Department of Revenue Services has changed its position on whether electricity generation qualifies as “processing.” They ruled that since electricity generation does not apply materials and labor to existing tangible personal property, it is not included under the state’s definition of processing. Under the new ruling, the utility is no longer exempt. (Ruling No. 2004-2, Connecticut Department of Revenue Services, June 18, 2004)

(09/10/2004)

Effective July 1, 2004, a subscription for magazines and newspapers, including publications containing only puzzles, will be exempt from sales tax. Payments made before July 1, 2004 for a subscription period beginning before July 1, 2004 are taxable. Payments made before July 1, 2004 for a subscription period beginning on July 1, 2004 or after are fully exempt. Over-the-counter sales of magazines have been and remain subject to tax, however, over-the-counter and honor box sales of newspapers on or after July 1, 2004, are exempt. (Connecticut Department of Revenue Services Special Notice, July 16, 2004.)

(08/05/2004)

The planned phase-out in Connecticut of 1% tax on computer and data processing services was repealed. These services remain taxable at the 1% rate. (Connecticut Department of Revenue Services Special Notice, July 16, 2004.)

(08/05/2004)

Retailers that have two or more places of business for which a seller’s permit is required and have been issued two or more seller’s permits, and have places of business located in two or more Connecticut towns are required to make an additional report annually to the Department of Revenue Services. On each additional report, the retailer must provide a breakdown by Connecticut town of the sales tax they collected for each calendar quarter. (Connecticut Department of Revenue Services Special Notice, July 16, 2004.)

(08/05/2004)

On Sunday, August 15, through Saturday, August 21, clothing and footwear costing less than $300 will be exempt from state and local sales tax. The exemption does not apply to clothing and footwear specifically intended for athletic purposes or to accessories and jewelry. (Act 218 (S.B. 35), Laws 2004)

(07/28/2004)

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