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From August 19-25, 2007, Connecticut is offering a sales tax holiday on clothing or footwear which costs less than $300 per item. This holiday not include protective clothing, athletic gear or clothing accessories.


A policy statement set forth by the Connecticut Department of Revenue provides guidelines for imposing sales and use taxes on employment agency services as well as agencies that provide personnel services. Clarification of certain terms is provided, including “agencies,” “employee,” and “employment services.” In addition, numerous topics are discussed, such as 1) the resale treatment for personnel services; 2) the exclusion for professional employee organizations; and 3) the exclusion for leased employees. This policy statement, 2006(7), supersedes policy statement 93(3.2), Taxation of Services by Employment Agencies and Agencies Providing Personnel Services. (Policy Statement 2006(7), Taxation of Services by Employment Agencies and Agencies Providing Personnel Services, Connecticut Department of Revenue Services, March 30, 2007)


The Connecticut Department of Revenue Services sent letters to certain businesses who file sales tax use tax returns regarding a change in their filing frequency, effective January 1, 2007. Under the new rules, taxpayers, whose annual liabilities have been $1,000 and below, have been asked to switch to an annual filing status. Annual returns for 2007 will be due January 31, 2008. (DRS E-News, Connecticut Department of Revenue Services, March 2, 2007)


Connecticut is offering a sales and use tax exemption for energy-efficient, weatherization products, effective June 1, 2006 though June 30, 2007. The exemption is applicable for various sales and purchases including: 1) sales made by Connecticut retailers, 2) sales made by out-of-state retailers required to collect Connecticut use tax on sales to retailers, and 3) purchases by Connecticut customers on which they would otherwise be required to self-assess use tax. Additional exclusions and regulations apply. (Special Notice 2006(1), Connecticut Department of Revenue Services)


Effective July 13, 2005, a retailer, if not otherwise engaged in business in the state of Connecticut, which participates in trade shows at the Connecticut Convention Center does not create sales tax nexus. Such retailers, therefore, are not subject to Connecticut sales and use tax even if they have employees or other staff present at trade shows, provided that no sales are made. The retailers’ activities must be limited to displaying goods or promoting services and any orders received must be sent outside the state for acceptance and fulfillment. In addition, the retailer’s participation in the trade shows cannot exceed 14 days during the retailer’s income year for federal income tax purposes. Further regulations and rules do apply. (Revision of 1958, Title 12 Taxation, Chapter 219 Sales and Use Taxes)



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