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The policy statement makes it clear that exempt entities must follow specific guidelines and submit the proper information to the Connecticut Department of Revenue Services at least three weeks in advance to purchase meals and lodging tax exempt for a specific event. It is also possible that the department will issue a blanket exemption certificate to certain exempt organizations. The policy statement also outlines the procedures for specific exempt organizations that are allowed to purchase meals and then resell them tax exempt at up to five events per year. (Policy Statement 2003(4), January 13, 2004.)


Dell Catalog Sales has a service repair contract with BancTec USA, Inc, an unrelated computer repair company. Under the contract BancTec will perform onsite repairs for Dell Catalog Sales consumers when computer issues can not be resolved by Dell Catalog's technical support department over the phone and the customer has previously purchased a Dell service contract. Dell Catalog Sales does not have any physical presence in Connecticut. They sell computers by advertising through national media and they only accept orders in Texas placed by telephone, facsimile, mail, email, or through the internet. All Dell Catalog Sales deliveries are made through common carrier. The argument against Dell Catalog Sales was that BancTec was acting as a representative of Dell to service Dell computers. However, it was agreed that Dell had no direct control over BancTec operations. It was ruled that BancTec performed a minimal number of on-site calls based on the revenue allocations for all Dell customer service contracts. (Dell earned 90% and BancTec earned 10%) As a result, it was ruled Dell Catalog Sales does not have more than a slight presence in Connecticut and this is below the threshold necessary to establish nexus in the state. Dell Catalog Sales agrees that sales of service contracts by BancTec to Connecticut customers are taxable. (Connecticut Superior Court, Dell Catalog Sales v. Commissioner of Revenue Services., July 10, 2003.)


During the week of Sunday, August 17, 2003 through Saturday, August 23, 2003 clothing and footwear generally considered necessary for day-to-day activities and priced under $300 will be exempt from Connecticut sales and use tax. This replaces during the every-day exemption for these items when they cost less that $50 for the week. Items such as special clothing and footwear designed for athletics or protective use, jewelry, wallets, and umbrellas remain subject to tax. (Sales Tax Holiday, Department of Revenue Services, August 20, 2003)


Act 1 (HB6802) of 2003 imposes a 5% gross receipts tax on satellite companies. The law effects both satellite companies located in the state of Connecticut and those located out of state that sell to subscribers that are located in Connecticut. The law also disallows deductions for commissions, rebates or other payments. Currently, the tax is due from the broadcast companies but, like cable providers, satellite broadcasters may ultimately pass on the taxes to the consumer. (State of Connecticut, HB 6802, June 30 Special Session, Public Act No. 03-1)


The Department of Revenue Services in Connecticut has created a spreadsheet program to assist taxpayers in tracking their use tax from mail order and internet purchases. (Press Release, Connecticut Department of Revenue, January 6, 2003.)



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