The Connecticut state legislature, in an effort to repair the budget deficit, repealed the sales tax exemption for residential weatherization products and compact fluorescent light bulbs. Effective Jan. 1, 2016 consumers will now have to pay sales tax on products including but not limited to: programmable thermostats; insulation; water heaters and water heater blankets; and windows and doors that meet the federal Energy Star standard. According to the Connecticut Department of Revenue Services (DRS), in order to exempt the items from sales tax, they must be delivered/received by Dec. 31, 2015 OR a deposit must be taken for orders prior to Jan.1, 2016 AND the product must be removed from inventory or accounted for in your inventory control system by Dec. 31, 2015. As there is no stated requirement for a specific percentage deposit, a $1 deposit would be allowed. If you are unable to pull the product from inventory or account for it as sold in your inventory control system by Dec. 31, 2015, then the product would not be considered tax exempt.
Updated on January 14, 2016 3:30pm