Hartford Business Journal

8 HARTFORDBUSINESS.COM | AUGUST 10, 2026 Politics & Policy Stephen Bosse, executive vice president of the New Balance store at The Shops at Evergreen Walk in South Windsor, expects Connecticut's expanded Sales Tax Free Week to drive a busy back-to-school shopping season. HBJ Photo | Steve Laschever Buying Power Retailers expect boost after CT expands sales tax holiday limit the tax exemption. "When it went down to $100, it just crushed the week," Bosse said, noting that many athletic shoes now cost well over that amount. He expects shoppers to respond quickly. "The $300 is a really nice relief for people," Bosse said. "We have fami- lies of four to six that come in here. It adds up very quickly." The annual sales tax holiday has become so important to Bosse's busi- ness that he said it surpasses even the holiday shopping season. "Tax-free week for us in this retail location is bigger than any week of the year," he said. "Bigger than Black Friday. Bigger than Christmas. … We do more business in that one week than in some months." Connor Nolan, vice president of leasing for Greenwich-based Brand Street Properties, owner of The Shops at Evergreen Walk and Blue By David Krechevsky davidk@hartfordbusiness.com C onnecticut retailers expect one of the busiest back-to-school shopping seasons in years after state lawmakers approved the most significant expansion of the annual Sales Tax Free Week in more than a decade. Beginning with this year's tax holiday, scheduled for Aug. 16-22, shoppers can buy qualifying clothing, footwear, backpacks and school supplies costing up to $300 per item without paying the state's 6.35% sales tax. The previous limit was $100 per item. The changes, approved earlier this year by the General Assembly, restore the $300 threshold that lawmakers lowered in 2015 during the state's budget crisis. The legislation also expands the list of eligible merchan- dise and creates a separate year- round sales tax exemption for many nonelectronic school supplies. The state estimates the expanded tax holiday will reduce revenue by about $3 million — less than 0.05% of the roughly $6.5 billion Connecticut collects annually from sales and use taxes. Last year's fiscal analysis projected the tax holiday would reduce revenue by between $2 million and $3 million. Retailers say the new threshold better reflects today's higher prices and should encourage shoppers to spend more during one of the busiest retail periods outside the holiday season. "Prices have gone up on every- thing," said Kate Terricciano, president of Southington-based Image Marketing Consultants, which represents shopping centers that include The Shops at Ever- green Walk in South Windsor, West Hartford's Blue Back Square and Connecticut Post Mall in Milford. "Sometimes you get your kid a pair of sneakers, and they're easily $150. Now we're happy that the state has kept up with those consumer trends." Terricciano said the expanded tax holiday should draw not only back-to- school shoppers but also consumers looking to buy fall clothing or get an early start on holiday shopping. "We're hoping to see those bigger purchases — coats, shoes, boots, new fall wardrobe updates," she said. 'Bigger than Black Friday' For some retailers, the higher threshold restores a promotion that had lost much of its impact after the state lowered the qualifying purchase limit to $100. Stephen Bosse, executive vice president of the New Balance loca- tion at The Shops at Evergreen Walk, said virtually every shoe and clothing item in his store will now qualify for Kate Terricciano WHAT QUALIFIES FOR SALES TAX FREE WEEK? Tax-free (items under $300 each) • Most clothing • Most footwear • Backpacks • School supplies Not tax-free • Jewelry • Handbags • Luggage • Wallets • Watches • Umbrellas • Specialty athletic/protective gear Source: Department of Revenue Services

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