Sales tax relief for sellers of meals in Connecticut

Connecticut’s recently-enacted budget included legislation authorizing sales tax relief for sellers of meals. Under the legislation, certain sellers of meals can keep 100% of the sales tax collected during one of the following weeks, as selected by the establishment:

  • Aug. 1, 2021, to Aug. 7, 2021;
  • Dec. 12, 2021 to Dec. 18, 2021; or
  • May 15, 2022, to May 21, 2022

Qualifying taxpayers must: (1) sell meals as an eating establishment, caterer or grocery store, and (2) be included in Section 72 of the North American Industries Classification System (NAICS), 2017 edition.

Under Connecticut statute, "meal" means food products which are furnished, prepared or served in such a form and in such portions that they are ready for immediate consumption and includes food products which are sold on a "take out" or "to go" basis and which are actually packaged or wrapped.

NAICS Section 72 comprises the Accommodation and Food Services industry group and includes businesses that provide customers with lodging and/or prepared meals, snacks, and beverages for immediate consumption. Specifically excluded from the section are civic and social organizations, amusement and recreation parks, theaters and other recreation or entertainment facilities providing food and beverage services.

On July 29, 2021, The Department of Revenue Services (DRS) issued Special Bulletin TSSB 2021-6 regarding this sales tax relief provision. According to the bulletin, sellers taking advantage of the relief will be required to provide information regarding the sales of meals during its selected week. The information will need to be provided at the time the seller files its sales tax return for the period that includes the selected week. No additional details regarding the information reporting requirements is currently available, but DRS advises sellers to monitor the DRS website, as additional information is expected soon.

What does CohnReznick think?

Although the guidance issued thus far is limited we will continue to monitor for additional guidance, as promised by DRS, so that our clients can take advantage of this opportunity for sales tax relief.


Corey Rosenthal, JD, Principal, Practice Leader, State and Local Tax Services


Cynthia Galamgam, JD, LLM, Senior Manager, State and Local Tax Services 


Subject matter expertise

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    Contact Corey Corey+Rosenthal
    Corey Rosenthal

    JD, Principal, Practice Leader, State and Local Tax (SALT) Services

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Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.