Connecticut House Bill HB05885

Connecticut 2017 Regular Session

• Introduced: 1/19/17
• Refer: 1/19/17

Caption

An Act Excluding Coin-operated Car Washes From The Sales Tax.

Impact

If passed, HB 05885 would have a significant financial impact on state revenues derived from sales tax. This change means that the state will no longer collect sales tax on transactions associated with coin-operated car washes, which could affect budget allocations for public services reliant on these tax revenues. However, the bill proponents argue that the potential economic benefit to local car wash businesses and the incentivization of consumer spending may outweigh the fiscal drawbacks.

Summary

House Bill 05885 aims to amend section 12-407 of the general statutes by excluding coin-operated car washes from the state's sales tax. The primary intent of this bill is to provide financial relief to car wash business owners, which have been impacted by the ongoing sales tax. By eliminating this tax for coin-operated services, the bill seeks to make this essential service more affordable for consumers and support local businesses.

Contention

The discussions surrounding HB 05885 likely involve varying perspectives on tax policy and its implications for small businesses. Supporters of the bill describe the measure as a much-needed relief for a specific sector that exemplifies local entrepreneurship. Conversely, opponents might argue that excluding such services from sales tax could set a precedent for other business sectors seeking similar exemptions, potentially eroding the overall tax base and necessitating adjustments to public funding.