OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa HB-6688 AN ACT CONCERNING A HIGHWAY USE FEE. AMENDMENT LCO No.: 10534 Primary Analyst: EW 6/8/21 Contributing Analyst(s): () OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 22 $ FY 23 $ Revenue Serv., Dept. TF - Revenue Gain 320 million 320 million Revenue Serv., Dept. GF - Revenue Loss 320 million 320 million Note: TF=Transportation Fund; GF=General Fund Municipal Impact: None Explanation The amendment results in a (1) revenue gain to the Special Transportation Fund (STF) of approximately $320 million annually and (2) a revenue loss of the same amount per fiscal year to the General Fund by transferring the following revenue to the GF from the STF: • sales tax collections associated with the 6.35% general sales tax on motor vehicle repair services, any motor vehicle part and transportation services. This transfer provides $245 million annually to the STF. • 32.1% (or 3 percentage points) of the 9.35% rental car sales tax collections. This transfer provides $75 million to the STF annually. The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General 2021HB-06688-R00LCO10534-FNA.DOCX Page 2 of 2 Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.