State law requires a business to register for a Sales and Use Tax Permit if the business intends to sell goods or provides any taxable services in this state. A retailer or service provider that fails to collect the tax can lose its permit to conduct business in Connecticut and may owe penalty and interest in addition to the tax. This publication provides basic information to help businesses avoid costly errors. See Related Forms and Publications for a list of publications with more detailed information on specific subjects. A business that sells , rents or leases tangible personal property , including but not limited to home appliances, automobiles, craft items, household furnishings, antiques, VCRs and tapes, jewelry, stereo and TV equipment, computers, and computer software must collect sales tax.
Some services are also taxable.
The tax on computer and data processing services is being phased out through a series of annual rate reductions. Sales of Internet access services, otherwise taxable as computer and data processing services, will be exempt from sales and use taxes effective July 1, 2001. The rate for the sale of repair or renovation services to residential real property is being reduced annually and is scheduled to be completely phased out, effective July 1, 2001. A business must register before it makes any sales. The use tax generally applies to taxable tangible personal property or services on which the seller did not impose Connecticut sales tax.