United States

Connecticut: Commissioner of Revenue Services Announces Intent to Pursue Online Retailers

Apr 03, 2017
From KPMG TaxWatch

Loading the player...

On March 28, 2017, Connecticut’s Commissioner of Revenue Services announced in a media release that the state is stepping up efforts to enforce collection of sales and use taxes by Internet retailers with a significant volume of sales into the state. In the release, Commissioner Kevin Sullivan stated that current Connecticut law “requires out-of-state sellers of goods that have a substantial economic presence in the state to collect and remit sales tax.” Although a handful of states has recently adopted, by statute or regulation, specific economic nexus standards for sales and use tax purposes, Connecticut is not one of those states. However, in addition to affiliate and click-through nexus statutes, the definition of “engaged in business in the state” (which has been in place since 1989) is broad and includes retailers engaging in regular or systematic solicitation of sales of tangible personal property in Connecticut by various means, provided such retailer made 100 or more retail sales from outside Connecticut to destinations within Connecticut during a particular twelve-month period. Furthermore, in 2013, the Department of Revenue Services revoked guidance issued shortly after the Quill decision in 1992. In this now-revoked guidance, the Department had stated that, in light of Quill, it would not require out-of-state retailers that have merely an "economic presence" in Connecticut to collect Connecticut use tax.

In the recent announcement, the Commissioner warned that if affected retailers do not collect and remit, the Department of Revenue Services is authorized to require disclosure of untaxed sales and pursue collection. While compliance has significantly increased in recent years, Revenue Services estimates that “at least $70 million is being evaded annually.” Please stay tuned to TWIST for future updates on challenges to Quill.


For more information about TWIST or to view archived episodes, please visit our TWIST homepage.

 Subscribe to TWIST via iTunes, or  Subscribe via RSS.

To receive TWIST e-mails each Monday morning, make sure that state, local and indirect is checked off as one of your topics of interest on the KPMG TaxWatch registration site.


The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.