Connecticut hits sales tax record in first full year of pandemic

STAMFORD, Connecticut (AP) – Connecticut broke its previous sales tax collection record in the pandemic’s first full fiscal year, helped by federal COVID-19 aid and a recovering economy.

The Stamford Advocate reported that nearly $ 5.3 billion had been raised for the 12 months to the end of June, which was an increase of $ 633 million from the previous year. That’s enough to cover a year of operating expenses for the state’s public universities and community colleges, the newspaper reported.

Sales tax earnings from previous years were between $ 20 million and $ 200 million. The recent increase is attributed to individuals and businesses spending federal pandemic relief funds as travel and entertainment restrictions have gradually eased. A real estate boom in the region has also contributed.

Connecticut collects 6.35% on most purchases, with a few exceptions for items such as food and luxury vehicles. Income taxes, the state’s primary source of revenue, generated $ 10.3 billion in the fiscal year ending in June. This represented a 9% increase, but was still $ 500 million less than the amount collected in fiscal 2018, reported The Advocate.

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