Taxes are coming!

June 28, 2011

As you know, I did not support the Governor’s budget, which increased state spending and included the largest tax increase in our history.

With that said, it is important for all of us to be ready for what’s coming. Here are some important dates to remember:

AUGUST 1ST:

Income Tax:

You will see more money come out of your paycheck to make up for the income tax increase that is retroactive to January 1, 2011.

The inheritance tax has also been increased and will be retroactive to January 1, 2011 as well. Be sure to check with your tax preparer.

To see the revised withholding tables click here [PDF].

WHEN YOU FILE NEXT TAX SEASON:

Property Tax Credit:

The property tax credit is reduced from $500 to $300.

The FULL LIST is available by clicking www.ct.gov/drs/site/default.asp

JULY 1ST

Sales and Use Taxes:

  • The general sales and use tax rate increases from 6% to 6.35%;
  • The room occupancy tax increases from 12% to 15%;
  • Renting or leasing of a car for 30 days or less increases to 9.35%;
  • Luxury tax of 7% for cars more than $50,000, boats more than $100,000, jewelry more than $5,000, clothing or footwear, handbag, luggage, umbrella, wallet or watch more than $1,000.

Service Taxes:

  • Valet parking provided at any airport;
  • Yoga instruction provided at a yoga studio;
  • Motor vehicle storage services;
  • Packing and crating services;
  • Motor vehicle towing and road services;
    livery services;
  • Pet grooming, pet boarding services, and pet obedience services;
  • Services in connection with a cosmetic medical procedure;
  • Manicure services, pedicure services and all other nail services; and
    Spa services.

New Taxes:

  • Clothing and footwear under $50;
  • Nonprescription drugs and medicines, and smoking cessation products; and
  • Cloth or fabric for noncommercial sewing, and yarn for noncommercial use.

Sin Taxes:

  • Cigarette tax will increase to $3.40 per pack.
  • Cigar tax will be $.50 cents per cigar.
  • Alcoholic beverage tax will increase by 20%.

I have worked and will continue to work to cut state spending instead of raising taxes. I will do all I can to elect a fiscally-conservative majority to the State Senate in 2012.