CT Annual Tax Free Week!
Items not subject to the exemption. For purposes of the exemption, clothing and footwear do not include:
Any special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for the athletic activity or protective use for which it was designed.
Jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items carried on or about the human body but not worn on the body in the manner characteristic of clothing, and
Articles of clothing considered safety apparel are fully exempt under a separate exemption in Conn. Gen. Stat. §12-412(91). (See Policy Statement 2004(4), Sales and Use Tax Exemption for Safety Apparel).
See the DRS website’s frequently asked questions (FAQs) for more details about what is considered exempt clothing and footwear during the exclusion week.
Cash Discounts, Coupon Sales, and Rebates: Cash discounts are price reductions that a store offers its customers, such as back-to-school sales. Tax is calculated on the final sales price (after all reductions have been taken). To determine if an item of clothing or footwear will be taxed during the exclusion week, the retailer should use the reduced sales price after the cash discount is deducted from the full or original sales price.
Example: A retailer sells a coat for $115. The retailer offers a 20% discount on the coat during the exclusion week. The sales price of the coat is reduced to $92 after the discount is taken. The coat is not taxable because it costs less than $100 during the exclusion week.
Coupons result in an immediate reduction of the sales price of an item when the coupon is presented to the retailer. Tax is calculated on the final sales price of the item after all coupons and other reductions have been applied. A retailer, a manufacturer, or another third party may issue coupons. To determine whether an item of clothing or footwear costs less than $100, the retailer should use the sales price after the face value of the coupon (or any higher value given to the coupon by the retailer) is deducted from the original sales price.
Example: A retailer sells a coat for $120. The retailer has a 25% off coupon in its advertising flyer, which the customer presents when buying the coat during the exclusion week. The sales price after the coupon is used is $90.00. The coat is not taxable because it costs less than $100.
“Buy one, get one free” and similar offers. If a retailer offers “buy one, get one free” or “two for the price of one” on items of clothing or footwear during the exclusion week, the exemption applies as long as the total sales price for each item is less than $100.
However, if a retailer offers “buy one, get one for a reduced price,” the two prices cannot be averaged to qualify both items for the exemption.
Example: A retailer sells a suit for $130 and offers a second suit for half price when bought with the first suit. The first suit costs $130 and does not qualify for the exemption. The second suit costs $65 (half price) and does qualify for the exemption. Together the two suits cost $195. The retailer cannot average the price of the two suits, to $97.50 apiece, to qualify both suits for the exemption.
Rebates, unlike discounts and coupons, do not reduce the sales price of an item. The tax applies to the sales price of an item before the customer obtains a rebate from a manufacturer or third party. The customer gets a rebate separately after the retail sale of the item.
Rain Checks: An article of clothing or footwear costing less than $100 that is purchased during the exclusion week using a rain check is not taxable. If a retailer issues a rain check to a customer during the exclusion week for an article of clothing or footwear costing less than $100 and the customer purchases the item after the exclusion week has ended using the rain check, the item is taxable.