Connecticut Senate Bill SB00457

Connecticut 2012 Regular Session

• Introduced: 3/27/12
• Engrossed: 3/28/12
• Chaptered: 4/4/12
• Enrolled: 4/20/12

Caption

An Act Concerning A Cap On The Petroleum Products Gross Earnings Tax And Penalties For Abnormal Price Increases In Certain Petroleum Products.

Impact

If enacted, SB00457 will entail amending current laws regarding the taxation of petroleum products. these changes intend to centralize the regulation of petroleum pricing under specific conditions, thus impacting the financial obligations of companies involved in the sale of petroleum. The bill also outlines the enforcement mechanism through the Commissioner of Consumer Protection, who is permitted to investigate claims of violations concerning pricing practices during abnormal market conditions, thus providing an added layer of consumer protection amidst fluctuating market dynamics.

Summary

Senate Bill No. 457 introduces significant changes concerning the petroleum products gross earnings tax in the state. One of the main features is the establishment of a cap on the tax that applies to the first sale of petroleum products. The legislation mandates that, if the selling price exceeds three dollars per gallon, the gross earnings from that sale will be calculated as if it were only three dollars per gallon. This legislative change aims to regulate pricing during abnormal market disruptions and prevent sellers from excessively profiting off high prices during such times.

Contention

One key point of contention surrounding SB00457 relates to how 'abnormal market disruption' is defined and the enforcement of the cap on taxes. Critics argue that the criteria for determining an abnormal market disruption could lead to inconsistent application, causing concern among sellers about regulatory compliance and liability. Additionally, the potential for penalties on sellers deemed to be in violation of the pricing cap could have broader implications for the petroleum market in the state. Proponents of the bill, however, see it as a necessary regulatory measure to protect consumers from price gouging during times of economic strain associated with energy markets.