Sales Tax Fairness Victory in Connecticut

When Connecticut Gov. Dannell Malloy signed the state budget into law on Wednesday, May 4, advocates of sales tax fairness won a significant victory. Included in the state budget is an affiliate nexus provision that requires remote retailers with broad networks of online affiliates in the state to collect and remit sales tax. Connecticut joins Arkansas, Colorado, Illinois, New York State, North Carolina, Rhode Island, and South Dakota in enacting sales tax fairness laws. The Connecticut sales tax fairness law goes into effect on July 1, 2011.

“This represents a tremendous victory for Connecticut independent booksellers and, indeed, for all Main Street retailers,” said ABA CEO Oren Teicher. “As is most often the case with any advocacy campaign, sales tax fairness in Connecticut didn’t happen overnight. It took persistence and patience over the course of a few years. We are very thankful for the efforts of the Connecticut Retail Merchants Association, the New England Independent Booksellers Association, and the independent coalitions that joined with us in support of sales tax fairness. And most importantly, we are grateful to the independent booksellers in Connecticut who have been such dedicated and effective advocates for sales tax fairness.”

Earlier this month, ABA member booksellers Suzy Staubach of UConn Co-op in Storrs and Patience Banister from Bank Square Books in Mystic, along with ABA public policy staff, met with Tim Bannon, the governor’s chief of staff, regarding sales tax fairness. In addition, this year, ABA has written the governor’s office several times regarding the current sales tax inequity that is negatively impacting Connecticut bookstores.

“I am very pleased that the Legislature passed, and Gov. Malloy signed, a budget that includes sales tax fairness,” said Staubach. “Bricks-and-mortar retailers throughout Connecticut will benefit. And I know I speak for all the booksellers in Connecticut in expressing gratitude to ABA for all the hard work and help getting us to this day, especially [ABA Senior Public Policy Analyst] Dave Grogan and [ABA Content Officer] Dan Cullen.”

Teicher urged booksellers to contact their legislators in both their store and home districts to thank them for passing a sales tax fairness provision in the budget. Booksellers can find their legislator here.