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Connecticut – Budget woes increase sales taxes in more than just a rate increase

Posted by salestax on May 10, 2011

Well, the CT Governor signed it – so, here are the highlights of changes to be effective July 1, 2011 for the sales tax side of things.

· Rate increase from 6%-6.35% (where do they come up with these odd rates?).

· Luxury tax at 7% (i.e. cars over $50K; jewelry over $5K).

· Personal services now taxed: Mani/Pedi, Massages, Pet Grooming

· All clothing now taxed– even if less than $50. (Luxury rate, if item is over $1,000)

For more information on the total Sales Tax changes coming to Connecticut in July, see the budget bill (Senate Bill 1239). It’s long, but start around section 88 – a little less than 2/3 down for the sales tax pieces (some great bed-time reading). http://www.cga.ct.gov/2011/TOB/S/2011SB-01239-R00-SB.htm

Otherwise, for a more concise snapshot, KPMG summarizes it well: http://www.us.kpmg.com/microsite/taxnewsflash/2011/May/11224.html

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