Connecticut: Reminder- Sellers of Meals May Retain Sales Tax

The Connecticut Department of Revenue Services recently issued Taxpayer Services Special Bulletin 2021-06, which addresses special tax relief for sellers of meals. Recall, under the budget implementing legislation (Senate Bill 1202), an establishment that sells “meals” may retain 100 percent of the sales taxes it collects on meals during one week in fiscal year 2022. “Meals” is defined under Connecticut law to mean “food products which are furnished, prepared or served in such a form and in such portions that they are ready for immediate consumption, including food products sold on a “take out” or “to go” basis and which are actually packaged or wrapped. Any establishment that sells meals and is included in the accommodation and food services industry sector (sector 72 of the North American Industrial Classification System) is eligible to participate. This includes hotels, casinos, caterers, food service contractors, as well as restaurants, snack bars, taverns, etc. The establishment may select one of three different weeks: August 1, 2021 to August 7, 2021; December 12, 2021 to December 18, 2021; or May 15, 2022 to May 21, 2022. If a seller decides to take advantage of the benefit afforded by the Connecticut General Assembly, the seller will be required to provide information about the sales of meals it made during the applicable week. This information will be provided at the time the seller files Form OS-114, Connecticut Sales and Use Tax Return, for the period that includes the applicable week. Please contact Cheryl Ladyzhets with questions.