Tax-Free Shopping for Children's Clothing Ends

Shoppers be warned: July 1, the new sales tax rules and rates will take effect for the State of Connecticut. The tax rate will increase from the current 6 percent to 6.35 percent. Additionally, all clothing items will now be subject to sales tax. Previously, sales tax only applied to clothing items costing more than $50.00.

The new tax rates affect everyone, but parents shopping for clothes for their children are uniquely impacted by the increase because most children’s items are priced under $50.00.

“Basically, it stinks,” says Barbara Reinken, the owner of the ‘tween boutique, Stuf, located in Byram, just over the Connecticut state line from New York. Her clientele is especially impacted. “I have a lot of customers who used to cross the border to shop knowing they’d pay no sales tax.”

Westchester County’s sales tax rate is currently over 7 percent, so Barbara hopes the lower tax rate just over the state line will still entice shoppers. “I don’t think we’ll see a dramatic drop in sales, but everything—I mean everything—is affected by price, especially these days. We’ll probably see fewer impulse buys, or maybe a mom will come in and buy one or two fewer items.”

Deeper into Fairfield County, Conn., retailers don’t benefit as much from shoppers crossing state lines to take advantage of the now nearly extinct zero sales tax rule on lower priced items. Children’s boutiques like Chloe’s Closet in Fairfield are even offering pre-tax increase discounts and sales in an effort to take advantage of the remaining days of tax-free shopping for children’s clothing.

But with moms across the region paying more attention to the bottom line, most children’s clothing retailers are bound to feel the impact of the increase. And as for the current uncertain economic climate and the accompanying tax increase, Barbara finds it rather unfashionable.“In all my years in business, I’ve never seen anything like it.”

Moms, will the new tax rules affect how you shop for your kids and yourselves? Share your thoughts here.

Click here to follow Daily Voice Norwalk and receive free news updates.