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Shoppers and retailers poised to cash in on sales tax-free week despite limited savings opportunity

With increasing competition from online shopping, Connecticut’s tax-free holiday encourages people to shop locally.

HARTFORD, Conn. — They say the only certainties of life are death and taxes. But starting Sunday, you can avoid at least one of those. Sales tax-free week begins Sunday and runs through Saturday, Aug. 26.

Connecticut is one of 19 states to have some sort of sales tax holiday. It launched in 2000 with clothing and footwear under $100 tax-free. But with inflation and rising prices, nowadays you can’t get as much bang for your buck.

The registers are already ringing over at Mickey Finn’s in Berlin, where most customers don’t even know sales tax-free week exists. 

“We discuss it with them,” said David Skolnick, the manager of Mickey Finn’s in Berlin. “We bring it up and they’ll be like, oh, well we will be back next week. We had no idea it was happening. So I just wish the state would do a better job putting it out there.”

The items are exempt from the state's 6.35% sales tax for one week each year. It’s not just clothing and footwear, diapers are actually included as part of sales tax-free week. It’s an item that’s price has risen by 20% in just the last year.

But even with inflation, Connecticut’s threshold for tax-free purchases hasn’t expanded above $100. Still, shoppers seem poised to save. 

"Definitely. So we can save some money. Back to school shopping. It’s a great opportunity,” said Christine Scannell of West Hartford. “She does uniforms for school so that’s a really big thing now that uniforms are mandatory so I definitely plan on taking advantage of it,” said Nicole Ortiz of Hartford.

Over at Hope & Stetson in West Hartford, the specialty boutique is hoping to cash in on that back-to-school rush. 

“We have so many teachers in town who shop with us. I think they benefit most from tax-free week. And we have colleges too so we are expecting to see a lot of college girls back in the area shopping,” said Brianna Borg.

With increasing competition from online shopping, Connecticut’s tax-free holiday encourages people to shop locally. It’s only available at brick-and-mortar retailers and saves consumers about $6 million a year. 

"The more small businesses we have in town the better. I think we have so many unique pieces that you are not going to find on Amazon or in the big chain stores,” added Borg.

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Skolnick added, “Next week is going to be a big deal for us and we are going to be stocked, staffed, and ready.”

Connecticut’s tax-free week does feel antiquated compared to neighboring states like Massachusetts, where there’s a tax-free weekend on almost all items under $2,500 and where clothing under $175 is tax-free year round.

Matt Caron is a reporter at FOX61 News. He can be reached at mcaron@fox61.com. Follow him on Facebook, X and Instagram.

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