State To Step Up Sales Tax Collections From Online Retailers

HARTFORD, Conn. (CBS Connecticut) – Connecticut tax officials say they’re stepping up efforts to collect sale tax not remitted by online and out-of-state retailers.

The Department of Revenue Services estimates that the state loses out on at least $70 million dollars in revenue not collected from out-of-state retailers making sales to Connecticut residents.

Current state law requires out-of-state sellers of goods that have a substantial economic presence in the state to collect and remit sales tax.  If not, the Department of Revenue Services is authorized to require disclosure of untaxed sales and pursue collection.

“This is a matter of fundamental fairness,” DRS Commissioner Kevin Sullivan said. “Businesses should be able to compete on a level playing field.  That’s not possible when out-of-state retailers promote, facilitate, contract and deliver the same goods and services as in-state businesses but only Connecticut businesses bear the burden of tax collection and the pricing disadvantage of including sales tax.”

Under state law, consumers are responsible for paying the “use tax” for untaxed goods and services.

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