HARTFORD — Connecticut is stepping up efforts to collect state sales taxes not being paid by online and out-of-state retailers.
Current state law requires out-of-state sellers with a substantial economic presence in the state to collect and remit Connecticut sales tax. But the Department of Revenue Services estimates at least $70 million is being evaded annually.
DRS Commissioner Kevin Sullivan says it’s unfair when only in-state businesses “bear the burden of tax collection and the pricing disadvantage of including sales tax” while out-of-state businesses offer the same goods and services, but sales tax-free.
Sullivan says DRS plans to close this loophole for big retailers doing business in Connecticut, not out-of-state companies doing a modest amount of business in the state.
The effort is being supported by the Connecticut Retail Merchants Association.
