A luxury tax on jewelry remains in the proposed Connecticut state budget, according to a Jewelers of America action
The new luxury tax is expected to mean that jewelers would now have to levy a 7 percent tax on items over $5,000. It also impacts watches over $1,000. The provision is included in an agreement struck between Dem. Gov. Dannel P. Malloy and Democrats in the Connecticut legislature. The legislature is due to vote on the budget next week, according to the local press.
The tax would not be in addition to Connecticut’s current sales tax, which is currently at 6 percent, but set to increase in 6.35 percent in the budget.
In its action alert, JA argued “the proposed tax is not only
damaging to jewelry businesses, but the cost to the state and to the businesses
to administer the tax will offset any revenue yield to the state.”
The group says Connecticut jewelers can contact state
legislators about the issue here.
Don’t miss a
story! Subscribe to JCK’s e-newsletter here.