FAIRFIELD, Conn. Carolyn Lanham stopped by Bobs on the Post Road on her way home from work because she happened to see the clearance racks for its annual summer sidewalk sale. She had completely forgotten that Thursday evening was her last chance to buy what she saw tax free. But once she was reminded that July 1 would bring higher sales taxes and fewer exemptions, she decided to stock up on a few more things.
Actually, I forgot all about" the new taxes, Lanham said. But I probably will buy a little more.
Friday starts the state's new fiscal year, which means that Connecticuts new taxes go into effect. The states sales tax rate is now 6.35 percent for most items, up from the old rate of 6 percent. A few big-ticket items will see even higher increase: Cars costing more than $50,000, jewelry costing more than $5,000, boats worth more than $100,000 and single items of clothes that cost more than $1,000 will all carry a 7 percent rate.
Lanham said she wasnt worried about the 7 percent bracket she doesn't shop among those large price tags anyway. But for the rest of the increases, she takes a measured approach, saying it would help and hurt the state and Fairfield. She can see how the shift would help the states budget, but at her level she admits it will cause some changes.
I think itll hurt in regards to people shopping like myself, Lanham said. Ill be more careful about the things that I buy. But well see.
But Fridays change wont bring just higher tax rates. The new policy also eliminated a list of items and services formerly exempt from sales taxes. All clothing is now taxable, including the once-safe items under $50. And those planning to make their own clothes wont beat the system cloth, fabric and yarn carry the same 6.35 percent rate.
Also no longer exempt are services such as manicures, spa services, yoga classes, pet grooming, valet parking at airports and limousine services. But Lanham, who works at the homeless shelter Operation Hope, said she was not concerned about the luxuries being taxed, but the necessities. The state also got rid of exemptions for stop-smoking aids and non-prescription medications.
That can really hurt them, Carolyn said, referring to the people who visit Operation Hope. Now were looking at more people sick and suffering because of something they already cant afford to pay for. Now they definitely cant afford to pay for [medications].
How do you feel about the new taxes?
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