A political PR stunt: CT annual sales tax-free week ahead

From Sunday August 17 to Saturday August 23, clothing and footwear costing less than $100 will be free of CT sales tax. Sales tax holidays are popular with elected officials because they offer direct discounts to consumers in a highly visible way.

CT Governor Lamont (D) says, "Our annual sales tax holiday gives CT consumers some extra savings during the busy back-to-school retail season. I encourage everyone to take advantage of these savings and, as always, support our many locally owned small businesses."

Salt in the wounds. When a politician touts this benefit, it just reminds citizens that CT sales taxes of 6.35% are unnecessarily high all year round. Massachusetts has a 6.35% sales tax but exempts clothing items costing less than $175 from its sales tax all year round. New York has a 4% sales tax (excluding Manhattan which has 8.8%), and also exempts clothing costing less than $110 all year round. The largest back-to-school costs for most parents include computers and books. These are not part of the CT plan.

Inflation killed the $100 benefit. The sales tax-free week was initiated in CT in the year 2000 and it started at a maximum of $300. In 2015 the $300 maximum was lowered to $100. That $100 number hasn't changed in the last ten years, even though inflation has eroded the price of a dollar by 26.5%. Accounting for inflation, the $100 maximum is now only worth $73.50. That doesn't cover much these days.

Greenwich, CT State Senator Ryan Fazio (R), who just announced a run for governor in 2026, says this is a nice PR stunt for leadership in a state government with the third-highest taxes in the country, who have refused to deliver real long term tax relief."

Between the Lines:

It's a political PR stunt and everyone knows it.

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