Back-to-school tax holiday on tap
Despite a back-to-school tax holiday that’s stingier than usual — courtesy of the state legislature’s belt-tightening — college students and families looking to outfit their younger children are still expected to flock to the region’s malls and shopping centers next week.
From Sunday through Saturday, Aug. 22, most individual items of clothing and footwear priced under $100 will be exempt from Connecticut’s 6.35 percent sales tax, a comedown from the $300 threshold in place during the previous 14 years of the program’s existence.
According to the Department of Revenue Services, this year’s tax holiday will cause the state to forgo an estimated $6 million in tax revenue, about $1 million less than in 2014.
“I don’t see it being that big an issue,” David DelVecchio, general manager of the Tanger Outlets at Foxwoods Resort Casino, said of the change, which lawmakers adopted as part of the budget they approved in June. “It’s meant to give families a break, and people who are shopping for their kids typically aren’t buying things that are over a hundred dollars. That’s a pretty expensive pair of sneakers or jeans.”
The exemption applies only to articles of clothing and footwear and not to such accessories as jewelry, handbags, luggage and sunglasses.
It applies to each eligible item, regardless of how many items are listed on a single invoice, and to items sold by mail, telephone or over the Internet.
Eligibility for the exemption is determined after any discounts are applied. Take, for example, the purchaser of a $120 jacket who presents a 20-percent-off coupon. The discount reduces the item’s price to $96, rendering it untaxable.
In a news release, Kevin Sullivan, the Department of Revenue commissioner, pointed out that many retailers schedule sales to coincide with the tax-free week, which always begins the third Sunday in August.
“Connecticut consumers plan their back-to-school shopping and retailers plan some of their best bargains around the annual tax-free week,” Sullivan said. “We hope everyone will take the opportunity to make their shopping dollars go farther and give a boost to our state’s economy.”
At the Foxwoods mall, most of the outlets are participating through next week in a coupon program offering 20 percent off the price of single items. During the tax-free week, the Mashantucket Pequot Tribe, which owns Foxwoods, will waive the 1 percent tribal tax it levies on mall merchandise.
The Tanger Outlets in Westbrook are also hoping to make the most of the tax holiday week.
“On top of our normal pricing, we’re doing a lot of promotions,” said John Dolishny, the mall’s general manager. “We’ve got a back-to-school scavenger hunt for kids, some of the stores are setting up tents in the parking lots and we’re having a model search and a fashion show featuring the stores’ clothing.”
Dolishny said the tax-free week is typically one of the mall’s busiest and that he expects this year’s will be no different.
“I still think people will react positively to it,” he said.
Twitter: @bjhallenbeck
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