Connecticut: Tax Increases

Tomorrow CT residents will be subject to two new taxes.  On October 1, 2019, grocery store shoppers will see a new sales tax on prepared foods. The additional tax is 7.35% and is part of the June state budget.  It is hoped that this will lead to an additional $100m in taxes over the next 24 months. 

The law is a little strange (and thus confusing though).  A purchase is only taxable for five or fewer fast food items including bagels and cookies. North Haven’s Republican Leader Senate Len Fasano held up a rotisserie chicken at a Capitol news conference and said:

“If you were to walk out with this chicken and a soda today, you would not be taxed on either. After Oct. 1, because they’re going to deem the soda as part of the chicken, you’re going to get taxed on the chicken and the soda. If you just bought the soda, you wouldn’t be taxed. But because you buy it together, someone has to make the determination that it’s part of the meal. That’s what [the state tax department] is saying.”

And if you buy the donuts at your local Dunkin Donuts, no matter how many you purchase the tax will not apply.  It is only grocery stores.

In addition, digital download tax increase will jump from 1 to 6.35 percent.