Connecticut Senate Bill SB00337

Connecticut 2016 Regular Session

• Introduced: 2/29/16
• Refer: 2/29/16

Caption

An Act Eliminating The Sales Tax On Car Wash Services.

Impact

The impact of SB00337 on state laws would be significant, as it would effectively amend the current sales tax statutory framework, particularly affecting the revenue generated from service taxes. According to discussions surrounding the bill, proponents argue that removing the tax could boost consumer spending in the service sector and stimulate economic activity within local car wash businesses, leading to potential job creation as businesses adapt to increased demand.

Summary

SB00337, introduced in the general assembly, proposes the elimination of sales tax on car wash services effective October 1, 2016. The bill seeks to repeal a section of the state tax code that currently classifies such services as taxable. This legislative change is aimed at relieving the financial burden on consumers who utilize car wash services frequently, acknowledging the relatively low-cost nature of car washes compared to other services.

Contention

However, the bill has faced contention regarding its potential impact on state revenue. Opponents express concerns that eliminating the sales tax on car washes could lead to a loss of revenue that is relied upon for funding public services. Furthermore, there are worries that such tax exemptions may set a precedent, prompting other service sectors to seek similar treatment. Critics argue the state should focus on ensuring broad equitable tax policies rather than selectively granting exemptions.