Connecticut House Bill HB06022

Connecticut 2019 Regular Session

• Introduced: 1/24/19
• Refer: 1/24/19

Caption

An Act Replacing The Petroleum Products Gross Earnings Tax With A Per-gallon Tax.

Impact

The proposed shift from a gross earnings tax to a per-gallon tax represents a notable transformation in how revenues from petroleum products are generated for state funds. This change might appeal to some stakeholders who prefer a stable tax structure over one that fluctuates with market prices. Moreover, it could potentially impact state budget allocations, depending on how revenue patterns change following the implementation of this tax.

Summary

House Bill HB06022 proposes a significant reform in the taxation of petroleum products by replacing the existing petroleum products gross earnings tax with a fixed per-gallon tax. The bill sets the new tax rate at sixteen cents per gallon, implying a shift to a more straightforward taxation model that aims to simplify revenue collection related to petroleum sales. This change reflects an effort to streamline state tax policy while providing predictability for consumers and businesses involved in the petroleum industry.

Contention

While the bill appears straightforward in its intent, discussions around HB06022 may involve contention regarding the long-term implications of altering the tax structure. Critics may argue that reliance on a per-gallon tax could lead to reduced revenues if petroleum prices were to decrease significantly. Furthermore, the bill might be scrutinized for its impact on consumers paying taxes directly at the pump, as some stakeholders may express concerns over this method's fairness and efficiency.