New CT Sales Tax Law

New Connecticut Sales and Use Tax Law Mandates Filing of Sales Tax Return To Renew Sales Tax Permit.

By Benjamin P. Michaelson

Connecticut’s Governor, Dannel Malloy, signed Public Act 16-3 into law recently. Among other changes (such as apportionment sourcing rules for both businesses and individuals and an estate tax reduction for investments in CT Innovation or CT Next investment programs), the changes also affect Connecticut’s sales and use taxes.

Historically, a business selling taxable goods or services within the State of Connecticut would only be ineligible to have their Sales Tax Permit renewed if they had outstanding taxes owed at the time of renewal; under the new law, the permit will not be renewed even if no tax was due, if no return is filed.

Practically speaking, if you sell (or want to be able to sell in compliance with applicable laws) taxable goods or services in the State of Connecticut, file your sales tax returns timely, even to show $0 tax due (which is good practice for a host of reasons anyway). Failure to do so will result in your permit not being renewed starting on January 1, 2017.