Annotate Legal Connecticut Business Sale Forms For Free

The sales tax rate of 6.35% applies to the retail sale, lease, or rental of most goods (including digital goods, which are described in Special Notice 2019(8), Sales and Use Taxes on Digital Goods and Canned or Prewritten Software) and taxable services. However, see Special Sales Tax Rates Apply to Certain Sales.

To sum it up, articles of clothing or footwear priced at $1,000 or less are taxed at Connecticut's regular sales tax rate of 6.35%. But articles of clothing, footwear (and some accessories) priced at $1,000 or higher are taxed at Connecticut's higher rate of 7.75%.

There is a $100 fee for registering to collect sales and use tax. After registering, you will receive a Sales and Use Tax Permit that should be displayed conspicuously for your customers to see.

Although Connecticut doesn't have a general business license requirement, you do have to register with the Department of Revenue and get a Connecticut State Tax Identification Number. This state tax ID is required to do business in the state, and is different from your LLC's federal EIN number.

Tangible products are taxable in Connecticut, with a few exceptions. These exceptions include certain groceries, some clothing, safety gear like firearm locks, child car seats and bike helmets, compact fluorescent bulbs, college textbooks, medical equipment and certain motor vehicles.

For information on how to obtain a federal determination letter of exemption for the organization, you may contact the Internal Revenue Service at 1-877-829-5500. SN 95(10), Exempt Purchases by Exempt Organizations, provides additional information about the Connecticut exemption process.