Connecticut Senate Bill SB00074

Connecticut 2022 Regular Session

• Introduced: 2/15/22
• Refer: 2/15/22

Caption

An Act Concerning The Sales And Use Taxes Treatment Of Certain Rebates And Promotional Items.

Impact

The enactment of SB00074 would directly affect the existing tax structure on sales and use taxes in the state. It allows for a reduction in the taxable amount during transactions with rebates, potentially increasing consumer spending by encouraging individuals to take advantage of promotional offers. This can have a positive effect on sales for businesses that engage in such promotional activities, leading to increased revenue for retailers while enhancing consumer purchasing power.

Summary

SB00074 proposes amendments to the treatment of sales and use taxes concerning certain rebates and promotional items. It aims to exclude from taxation the portion of the purchase price of taxable tangible personal property or services for which a purchaser may obtain a cash rebate from the manufacturer or a third party. Additionally, it addresses situations where taxable tangible personal property is advertised as free, where no cost to the purchaser is incurred through meeting specific contractual obligations. This legislative change seeks to alleviate the tax burden on consumers making such purchases.

Contention

Notably, the bill could foster debate among legislators and economic stakeholders regarding its implications for state revenues. Critics might express concerns that the loss in tax revenue from exempting certain transactions could impact state funding for public services. Proponents may argue that the overall economic activity stimulated by consumers taking advantage of promotional pricing and rebates justifies the tax exemptions, positioning it as a measure to support economic growth.