Ryan Announces Connecticut Sales and Use Tax Changes Effective July 1, 2011.

HARTFORD, Conn., July 7, 2011 /PRNewswire/ -- Ryan (www.ryan.com), a leading global tax services (http://www.ryan.com/Practice-Areas.aspx) firm with the largest indirect tax (http://www.ryan.com/Transaction-Tax.aspx) practice in North America, today announced that Connecticut's budget bill (Senate Bill 1239 - Public Act No. 11-6) increases tax rates, repeals certain sales tax exemptions, and makes several services taxable services. The following tax rate increases are applicable to sales occurring after June 30, 2011 and to services beginning with the first billing period that includes July 1, 2011.

The general state sales and use tax rate increases to 6.35%, and the hotel occupancy tax will be 15%. Tax on rentals of motor vehicles for 30 days or less will increase to 9.35%.

In addition, the bill provides that 7% sales or use tax is due on the sale or use of the following:

• A vessel for more than $100,000
• A motor vehicle for more than $50,000
• Jewelry for a sales price of more than $5,000
• Clothing or footwear, including handbags, luggage, umbrellas, wallets, and watches for more than $1,000

The bill also repeals the following exemptions effective July 1, 2011:

• Clothing or footwear intended to sell for less than $50
• Non-prescription medicines
• Smoking-cessation products
• Valet parking at airports
• Services used in operating solid waste-to-energy facilities
• Services provided in the voluntary evaluation, prevention, treatment, containment, or removal of hazardous waste or other contaminants of air, water, or soil as part of services to industrial, commercial, or income-producing real property
• Yoga instruction provided at a yoga studio

The bill provides that the following services are taxable services effective July 1, 2011:

• Motor vehicle storage services, including storage of motor homes, campers, and camp trailers (Storage unit rentals were taxable prior to this bill.)
• Packing and crating services provided on a stand-alone basis (Packing associated with the sale of a taxable item has been and continues to be taxable.)
• Motor vehicle towing and road services (Motor vehicle repair services have been and continue to be taxable.)
• Intrastate transportation services provided by livery services, including limousines, community cars or vans, with a driver (Transportation by taxi, motor bus, or ambulance is not considered as an intrastate transportation service. Scheduled public transportation or services provided in connection with funerals are also excluded from the definition of an intrastate transportation service.)
• Pet grooming and boarding services, except when provided as an integral part of a veterinary service
• Pet obedience training
• Services in connection with a cosmetic medical procedure (Cosmetic medical procedure includes hair transplants, cosmetic injections, soft tissue fillers, dermabrasion and chemical peel, laser hair removal, laser skin resurfacing, laser treatment of leg veins, and sclerotherapy. It does not include reconstructive surgery, which means surgery performed on abnormal structures caused by or related to congenital defects, developmental abnormalities, trauma, infection, tumors, or disease, including procedures to improve function or give a more normal appearance.)
• Manicure and pedicure services
• Spa services

About Ryan

Ryan is a leading global tax services firm, with the largest indirect tax practice in North America and the seventh largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. In 2010, Ryan received the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the award-winning myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 900 professionals and associates serves many of the world's most prominent Fortune 1000 companies. More information about Ryan can be found at www.ryan.com.

SOURCE Ryan