Connecticut Senate Bill SB00167

Connecticut 2012 Regular Session

• Introduced: 2/21/12
• Refer: 2/21/12

Caption

An Act Concerning An Exemption From The Petroleum Products Gross Earnings Tax For Cosmetic Grade Mineral Oil.

Impact

If enacted, the bill would directly amend subsection (b) of section 12-587 of the general statutes. By exempting cosmetic grade mineral oil from the gross earnings tax, it may encourage manufacturers to reduce prices or invest more in product development. The potential economic implications could be significant for manufacturers and retailers in the cosmetics sector, possibly leading to increased competition and innovation in the market.

Summary

SB00167 proposes an exemption from the petroleum products gross earnings tax specifically for cosmetic grade mineral oil. This amendment seeks to alleviate tax burdens on products categorized as cosmetic, potentially influencing the cost structure of businesses utilizing this specific type of mineral oil in their products. The bill is designed to support the cosmetic industry by reducing operational costs associated with the taxation of raw materials.

Contention

While the bill aims to promote economic activity in the cosmetics field, there may be points of contention related to tax equity. Critics might argue that such exemptions could reduce overall tax revenues, thereby placing a greater financial burden on other sectors or increasing tax reliance on consumers. Balancing the interests of the cosmetic industry with those of other tax-paying entities will be essential in any discussion surrounding this legislation.