Connecticut Use Tax

Article ID: 58677  

Question
Connecticut Use Tax

Answer

Connecticut taxpayers owe use tax on purchases of taxable goods or services when Connecticut sales tax is not collected at the time of sale. Most often, this results from purchases made online or out-of-state. Together, sales and use taxes ensure that taxable purchases of goods and services used in Connecticut are treated equally and fairly.

If Connecticut sales tax is not paid to the retailer at the time of purchase, Connecticut law requires that the purchaser pay use tax directly to DRS.

You must pay use tax on taxable goods, whether purchased, leased or rented, and taxable services. Taxable goods include: furniture, jewelry, automobiles, appliances, cameras, computers, and computer software. Taxable services include: repair services to your television, motor vehicle, or computer; landscaping services for your home; and reupholstering services for your household furniture.

Use tax rates are the same as sales tax rates. The general rate is 6.35% for purchases of taxable goods or services, which includes digital goods effective. However, the sales tax rate on certain items of tangible personal property is 7.75%. The rate on computer and data processing services is 1%. The rate for vessels, motors for vessels, and trailers used for transporting a vessel is 2.99%


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Views: 3165 Created on: Jun 15, 2013