State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Connecticut (CT)

CT Sales Tax - Name of Tax and General Application:

Connecticut imposes a tax on the privilege of performing retail sales in the state. This is called a "sales tax". Additionally, there is a tax imposed on the use, storage, acceptance and consumption of tangible personal property or taxable services within Connecticut whether obtained inside or outside of the state. This tax is called a "use tax".

CT Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Connecticut requires retailers to collect and pay use tax who (1) maintain a place of business in the state directly or by agents, (2) have any employees or representatives selling or delivering in the state, regularly soliciting sales of tangible personal property by outdoor advertising, catalogs, flyers, radio, etc., or (3) are registered as Connecticut retailers.

CT Local Tax - Do Localities Impose Tax?

No, Connecticut does not impose local sales tax.

CT Resale Certificate Renewal Agreements:

The resale certificate is used in place of proof that goods or services were purchased with the intent to resell them.

CT Resale Certificate Renewal Periods

Resale certificates are valid for as long as the purchaser is a reseller of the items covered in the certificate, but the law states that they should be renewed at least every three years.

CT Statute of Limitations

Later of three years from the end of the calendar month following the period for which the assessment relates or from the date the return was filed.