The state Department of Revenue Services (DRS) has extended the filing and payment deadlines for hundreds of millions of dollars in sales and room occupancy taxes that were due Tuesday.
The decision to extend the monthly payments due March 31 to May 31, follows an executive order signed Monday by Gov. Ned Lamont that aims to provide relief for small businesses statewide amid the COVID-19 outbreak.
“The state needs to be taking all steps possible to provide relief to our small businesses,” the governor said in a statement.
Small businesses that qualify for the automatic extension include taxpayers that have $150,000 or less in annual sales tax liability. Taxpayers that have $150,000 or less in annual room occupancy tax also qualify.
DRS says taxpayers are required to use 2019 calendar year sales and occupancy payments to determine if they qualify for relief.
“DRS acknowledges that small businesses may need additional time to access their records and consult with their tax preparer,” said Acting DRS Commissioner John Biello. “Taxpayers who file and pay on or before the extended deadlines will not be subject to any penalties or interest.”
In addition to personal income tax, Connecticut’s largest sources of tax revenue for fiscal year 2019 came from the sales and use tax, which generated $4.3 billion, or 23% of the state’s total revenue.
Connecticut generates more than $100 million annually from its 8.65% hotel room occupancy tax.
The extension comes two weeks after DRS granted an extension of Connecticut filing deadlines for certain annual tax returns in order to support businesses during the COVID-19 outbreak.
