Connecticut House Bill HB05231

Connecticut 2020 Regular Session

• Introduced: 2/20/20
• Refer: 2/20/20

Caption

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

Impact

The removal of sales tax from coin-operated car washes could lead to decreased operational costs for these businesses, allowing them to offer more competitive pricing to consumers. The exclusion could also incentivize more entrepreneurs to enter the car wash industry, fostering local economic growth and potentially creating job opportunities. However, this could also lead to mixed impacts on the overall state revenue collected through sales taxes, as the state would forgo income that would have been derived from these services.

Summary

House Bill 05231 proposes the exclusion of coin-operated car washes from the purview of sales tax. This legislative effort is directed towards revising section 12-407 of the general statutes, with the intent to relieve coin-operated car wash operators from the burden of having to collect sales tax on their transactions. The underlying rationale is to support this specific service industry and promote business activity within the state, which has faced challenges due to various taxation efforts that many argue could hinder operational viability.

Contention

While the bill has clear benefits for the car wash business sector, it may face opposition based on concerns about the implications for state revenue. Critics may argue that while it benefits a specific industry, it sets a precedent for similar exclusions that could cumulatively affect the state's fiscal health. Lawmakers might encounter debates over whether broad tax exclusions for certain businesses prioritize specific interests over the state's need for comprehensive funding from a diversified tax base.