Gov. M. Jodi Rell said this week that as households across Connecticut look for ways to stretch their shopping dollars, consumers should remember that the state’s annual sales tax-free week can help maximize back-to-school budgets. This year’s event runs from Sunday, Aug. 15, through Saturday, Aug. 21.

During the Sales Tax Holiday Week, most individual items of clothing and footwear priced under $300 are exempt from Connecticut’s sales and use tax. During that week, the increased exemption replaces the standard exemption for clothing under $50. For purchases costing $300 or more, sales tax is calculated on the full cost of the item.

“Every year, shoppers and retailers look forward to the third week in August as a way to boost their bottom line,” Rell said. “And given the present state of the economy, the Annual Sales Tax Holiday Week has become even more important. Consumers can get the most for their money and merchants see an increase in sales — everyone benefits.”