An Act Exempting Liquid Asphalt From The Gross Earnings Tax On Petroleum Products.
Impact
If enacted, HB 06860 would directly amend Chapter 227 of the general statutes, thus exempting liquid asphalt used exclusively for asphalt pavement from the gross earnings tax. This legislative change could lead to significant reductions in operational costs for businesses involved in the asphalt industry, thereby encouraging investment in state infrastructure and paving initiatives.
Summary
House Bill 06860 proposes an exemption for liquid asphalt from the gross earnings tax on petroleum products. The intent of the bill is to reduce the financial burden on companies involved in the production and use of liquid asphalt, particularly for those dedicated to asphalt pavement projects. By eliminating this tax, the bill aims to enhance the economic feasibility of paving projects, potentially leading to lower costs for roadway and infrastructure improvements across the state.
Contention
The discussions surrounding HB 06860 may reveal points of contention, particularly from entities that would be financially affected by the removal of this tax. While proponents argue that it will streamline projects and reduce costs, opponents may raise concerns about potential lost revenue for the state and the precedent of exempting specific industries from taxation. The balance between fostering business growth in the asphalt sector and maintaining state revenue is likely to be a critical aspect of the bill debates.