OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-265
AN ACT CONCERNING CERTAIN ALCOHOLIC BEVERAGE
SYSTEMS.
Primary Analyst: CW 3/2/21
Contributing Analyst(s): ME
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services Various -
Potential Revenue
Gain
Up to 75,000 Up to 75,000
Note: Various=Various
Municipal Impact: None
Explanation
The bill results in a potential revenue gain of up to $75,000 annually
by allowing alcoholic liquor permittees who are authorized to serve
alcohol for on-premises consumption to use an automated machine to
serve beer, certain cider, and wine.
There is a potential revenue gain in sales
1
and alcoholic beverages
taxes to the extent that: (1) one or more permittees install automated
machines
2
and (2) there is an increase in alcohol consumption rather
than a shift from currently allowed transactions for alcohol.
For illustrative purposes, if there is a 0.1% increase in alcohol
consumption due to the availability of automated machines, there
would be a revenue increase of $75,000 annually in sales and alcoholic
1
Current law requires a diversion of a portion of the sales tax generated into (1) the
Special Transportation Fund and (2) the Municipal Revenue Sharing Account
beginning in FY 22. The general sales and use tax rate, from which the diversion
occurs, remains at 6.35%.
2
Such machines range between $5,000 and $25,000 depending on the size and type. 2021SB-00265-R000013-FN.DOCX Page 2 of 2
beverages taxes.
Section 2 requires the Department of Consumer Protection to adopt
regulations regarding alcoholic beverage machines and results in no
fiscal impact because the department has the expertise to meet the
requirements of the bill.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.