Report: New CT Law Will Expand the Amount of Retailers Who Need to Charge State Sales TaxJune 20, 2018
The state sales tax rate, of 6.35 percent, is coming to the Internet, thanks to a new law supported by wide margins in the legislature and signed by the governor.
A new law signed by Gov. Dan Malloy (D-Conn.), and supported by both chambers of the legislature without a ‘nay’ vote, will expand the amount of retailers who must charge Connecticut’s sales tax rate of 6.35 percent.
Bloomberg BNA reported:
Connecticut has become the sixth state to require marketplace facilitators to collect and remit sales and use tax on behalf of their third-party sellers.
Gov. Dannel Malloy (D) signed the law (Act 18-152) June 14. The law requires e-commerce giants such as Amazon.com Inc., eBay Inc., and Etsy Inc. to collect and remit tax on transactions by third-party sellers that move merchandise over their platforms if they have at least $250,000 in annual in-state sales.
The law also requires online retailers without a physical presence in the state to collect and remit the state’s 6.35 percent sales and use tax if they have at least $250,000 in annual in-state sales and 200 separate transactions.
Bloomberg BNA‘s Aaron Nicodemus quoted an e-commerce advocate, Steve DelBianco, saying this “will be seen by Connecticut voters as a new tax.”
24/7 Wall Street reported earlier this year that Connecticut’s sales tax collections per capita ($1,137) was eighth-highest in the nation. That per-capita collection – and, perhaps, the ranking –may climb in future years thanks to the new law.
Want to see more content like this?
Sign up for Email updates.