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OLR Bill Analysis
SB 711 (File 183, as amended by Senate "A")*
AN ACT CONCERNING COVID -19 RELIEF FOR SMALL
BUSINESSES AND REQUIRING FEDERAL REGULATORY
ANALYSIS FOR PROPOSED STATE REGULATIONS.
SUMMARY
This bill establishes a sales and use tax exemption in FYs 22 and 23
for personal protective equipment (PPE) purchased by a small business
for the business's use.
To qualify for the exemption, the purchaser must present a
certificate, prescribed by the revenue services commissioner, to the
seller certifying that the purchaser is a small business purchasing PPE
for the business. The bill makes the purchaser liable for the tax
otherwise imposed if it provides the certificate to the seller improperly.
It also makes anyone who willfully delivers to a seller a certificate that
is known to be materially false or fraudulent guilty of a class D felony
(punishable by up to five years' imprisonment, a fine of up to $5,000,
or both), in addition to any other penalty the law provides.
Under the bill, "PPE" means (1) specialized clothing or equipment
worn by an employee for protection against infectious disease and
materials, including protective equipment for the eyes, face, head, and
extremities; protective clothing; and protective shields and barriers,
and (2) disinfecting products approved for use against COVID-19 by
the National Centers for Disease Control and Prevention. A "small
business" (1) is a corporation, limited liability company, partnership,
sole proprietorship, or individual, operating a business for a profit and
(2) has up to 100 fulltime employees, including subsidiaries or
affiliated corporations.
*Senate Amendment "A" (1) adds the certificate requirement and
penalties and makes the exemption applicable to FYs 22 and 23 only
and (2) removes provisions from the underlying bill (a) creating a 2021SB-00711-R01-BA.DOCX
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“non-charge” against an employer’s experience rate for the
unemployment benefits paid to former employees because of COVID-
19 and (b) requiring state agencies to prepare a federal regulatory
analysis when adopting regulations.
EFFECTIVE DATE: July 1, 2021, and applicable to sales occurring
on or after July 1, 2021.
COMMITTEE ACTION
Commerce Committee
Joint Favorable
Yea 23 Nay 0 (03/11/2021)
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 45 Nay 0 (05/19/2021)