Taxes are coming!

June 20, 2011

Hartford, CT – Senator Toni Boucher (R-Wilton) is alerting constituents that taxes are coming. Senator Boucher says Connecticut has a spending problem that has not been addressed. Adding, increases in state spending will continue for the next two years – during the worst economic crisis since the great depression.

“These higher costs to the taxpayer have accompanied the largest tax increase in state history,” said Senator Boucher. “While I did not support, or vote for the Governor’s budget this year and offered a detailed alternative no tax increase budget, it is important for you to plan ahead.”


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 estate attorney.

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


Property Tax Credit:

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


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 $.40 per pack.
  • Cigars tax will be no more than 50 cents per cigar.
  • Alcoholic beverage tax will increase by 20%.

The FULL LIST is available by clicking