SALT Report 2135 – In his 2014-2015 Budget, Connecticut Governor Dannel Malloy proposed that the state offer a tax amnesty program and that they reinstate the sales and use tax exemption for clothing and footwear.
Clothing and Footwear Exemption
In his budget proposal, the Governor stated that beginning July 1, 2014 the exemption for clothing and footwear costing less than $25 would be reinstated and effective July 1, 2015 the exemption would increase to $50.
Tax Amnesty Program
Governor Malloy proposed that the state offer a tax amnesty program in FY 2014. The Governor’s budget provides $1.83 million in funding for the Department of Revenue Services to implement and administer the program. The funds will be used to support advertising and to offset the cost of consultant services, temporary tax workers, and information system modifications. The Governor’s office estimates that the tax amnesty program will result in $25 million in additional revenue for the state.
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