Connecticut Senate Bill SB00162

Connecticut 2018 Regular Session

• Introduced: 2/16/18
• Refer: 2/16/18

Caption

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

Impact

If enacted, SB00162 would significantly alter the state’s approach to sales taxation by creating a specific exemption for a niche service. This change would mean that revenue typically collected from car wash services would no longer contribute to state tax income, potentially impacting state budgets if not offset by gains in economic activity or alternative revenue sources. Supporters believe this exemption could lead to increased patronage of car washes, potentially increasing overall economic activity within this segment, while critics may express concerns about the implications for state revenue and the precedent of exempting certain business sectors from taxation.

Summary

Senate Bill 00162 proposes to amend Chapter 219 of the general statutes to exempt coin-operated car washes from the sales tax. The primary goal of this legislation is to provide financial relief to car wash operators who rely on coin-operated systems, thereby fostering growth in this sector. By removing the sales tax burden, proponents argue that it could encourage more consumers to use these services, benefiting the overall economy and increasing revenue for small business owners in the car wash industry.

Contention

There are points of contention surrounding SB00162, particularly regarding its potential impact on state revenue and whether it sets a precedent for further tax exemptions. Opponents of the bill argue that granting tax exemptions to specific businesses could lead to calls for similar treatment across other industries, complicating tax structures and possibly leading to a decrease in available funds for public services. On the other hand, supporters argue that the economic stimulation offered by such exemptions can lead to higher overall revenues through increased business activity and consumer spending.