This post was contributed by a community member. The views expressed here are the author's own.

Business & Tech

Tax Free Week Ends With A Whimper For Local Businesses

Tax Free Week ended on Saturday. According to local, independently owned stores; it did not significantly affect sales.

The state-wide tax-free week ended Saturday, but according to local merchants not enough residents were aware of it to make a big impact in sales.

The state's 10th annual Sales Tax-Free Week allows shoppers to purchase individual items of clothing and footwear priced under $300 without paying the usual 6% sales tax. This year's tax-free week ran from Saturday, Aug. 14th through Saturday, Aug. 21st. 

Terrance Alturi, manager of Ken's Custom Tailors in the Southbury Plaza has not seen an increase in his stores sales.

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

"Customers were actually surprised when I told them it was tax free week," he said.

Stores may not have seen an increase of sales but Roberta Hawley, Manager of Quo Vadis in the Southbury Green said there has been an increase in the number of shoppers. 

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

"I have seen more people out shopping, but there is a lot of confusion regarding tax free week," said Hawley.  "Many shoppers don't understand that it is the state of Connecticut that drives tax free week. Customers come in asking about jewelry and other accessories, when it only applies to specific items such as clothing."

Normally during the year shoppers are not charged tax for clothing and shoes that cost under $50, according to the Connecticut Department of Revenue. During tax-free week, that $50 amount is raised to $300.

Some larger chain stores in Southbury declined requests for interviews, but the small number of independent stores see the holiday as a minor motivator. When customers are only saving a maximum of 18 dollars, stores are finding that the Tax Free incentive is not large enough to drive revenue. 

"I like to use it as a marketing tool in addition to other sales," said Hawley.  "It may bring more people out, but its more of a psychological inducement." 

Although his store has not seen an increase in sales, Alturi views the week as a positive thing for our state,

"Over all I think it is a good thing, especially for the parents who have kids, and especially in this economy," said Alturi.

The Tribury Chamber of Commerce could not be reached for comment.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?