Connecticut House Bill HB06273

Connecticut 2019 Regular Session

• Introduced: 1/25/19
• Refer: 1/25/19

Caption

An Act Concerning The Use Of Certified Service Providers To Provide Sales And Use Tax Functions To Sellers In The State.

Impact

The implications of HB 6273 could significantly improve efficiency in sales tax collection and compliance. By outsourcing these functions to certified service providers, the state is not only adhering to guidelines set forth by the Streamlined Sales Tax Governing Board but also potentially reducing the administrative burden on small and medium-sized businesses. This could encourage more businesses to operate within the state, knowing that a certified agent will handle their tax obligations, which may lead to increased compliance rates and ultimately enhance state revenue from sales taxes.

Summary

House Bill 6273 aims to amend Title 12 of the general statutes to enhance the administration of sales and use tax in the state. The bill mandates that the Commissioner of Revenue Services enter contracts with agents certified as certified service providers by the Streamlined Sales Tax Governing Board. These certified agents would be tasked with providing sales and use tax functions directly to sellers within the state, thus streamlining tax compliance and reporting processes for businesses operating in Connecticut.

Contention

While the bill appears to have a strong framework for improving tax compliance, there may be concerns regarding the control and oversight of these outsourced functions. Critics of contracting tax functions might argue that it could lead to inconsistencies in the application of tax law, or that it could diminish the state's ability to manage tax collection directly. As these discussions continue, it will be important for lawmakers to address any apprehensions regarding accountability and service quality from these certified providers.