August 18, 2021

State of Connecticut Provides Relief on Meals Tax

By Timothy Rooney, Manager, Tax & Business Services

State of Connecticut Provides Relief on Meals Tax State & Local Tax

Legislation recently enacted by the Connecticut General Assembly provides relief for restaurants and related establishments that collect and remit sales tax on meals in Connecticut. The State of Connecticut Department of Revenue Services (DRS) recently outlined the specifics of this program in Taxpayer Services Special Bulletin 2021-6.

This relief program enables eligible businesses to retain the 7.35% tax that is collected on sales during one of three specified weeks as detailed below. To qualify for this benefit, the business must be classified with an NAICS (North American Industrial Classification System) code in section 72, which includes restaurants, drinking establishments, and hotels, among others. DRS states that each business must make a determination as to its qualification under this classification system.

If eligible, the business may select one of the following weeks to retain sales tax on meals:

  • August 1, 2021 through August 7, 2021
  • December 12, 2021 through December 18, 2021
  • May 15, 2022 through May 21, 2022

Eligible businesses should continue to compute and track sales tax collected during their selected week and report this benefit on Form OS-114 (Connecticut Sales and Use Tax Return).

For additional information on this sales tax relief program or other pandemic-related relief programs, contact your local Marcum tax and business services professional.