Newegg, an online California-based computer hardware and consumer electronics company, will begin collecting sales tax on sales made to people in Connecticut on July 1, 2018.
Officials from the state Department of Revenue Services said the company previously did not collect sales tax in Connecticut.
The state began billing Connecticut taxpayers for use tax due on the sale of taxable goods because sales tax had not been collected by the retailer.
“This is exactly what we asked online retailers to do in the first place and I am glad Newegg has now agreed,” Department of Revenue Services Commissioner Kevin Sullivan said in a statement. “While DRS did offer Connecticut taxpayers a settlement opportunity to avoid two years of interest and penalty, we much prefer the simpler and fairer solution of retailers collecting the tax. While this does not affect use tax payments billed prior to March 7, 2018, DRS has ceased additional Newegg-related use tax collection efforts based on future Newegg compliance on and after July 1, 2018.”
The use tax is the tax you are required to pay when you use a taxable good or service in Connecticut on which you did not pay sales tax to a retailer.
The use tax is 6.35 percent for most goods and services, 7.75 percent for luxury items including jewelry with a sales price of more than $5,000 and most motor vehicles with a sales price of more than $50,000, 9.35 percent for the rental or leasing of a passenger motor vehicle for 30 consecutive days or less and 1 percent for computer and data processing services.
Learn more about Connecticut’s “use tax” and what it means for you.