OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-214
AN ACT CONCERNING THE SALE OF ELECTRIC VEHICLES IN
THE STATE.
Primary Analyst: PM 4/6/22
Contributing Analyst(s): EW
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
Motor Vehicle Dept. TF - Revenue
Gain
Up to
20,000
Up to
20,000
Resources of the General Fund GF - Revenue
Gain
Potential Potential
Note: TF=Transportation Fund; GF=General Fund
Municipal Impact: None
Explanation
The bill results in a potential revenue gain of up to $20,000 to the
Special Transportation Fund by expanding car dealer license eligibility
to additional manufacturers, which is dependent on the number of
licenses issued by the Department of Motor Vehicles.
The bill also increases the potential sales tax revenue to the General
Fund. The actual revenue gain in sales tax would be dependent upon
any potential shift in consumer purchases from out-of-state to in-state.
Connecticut requires sales tax to be paid on vehicles registered for
less than thirty days in another state upon registration of the vehicle in
this state. However, Connecticut does provide a credit for out-of-state
sales taxes paid if the registrant provides supporting documentation.
Of the adjacent states, Massachusetts is the only one that charges sales 2022SB-00214-R000397-FN.DOCX Page 2 of 2
tax on the purchase of motor vehicles by nonresidents.
1
Vehicle
purchases from Massachusetts are therefore likely to qualify for the
sales tax credit for out-of-state purchases. Any potential shift in sales
from Massachusetts to Connecticut under this bill would result in the
full sales tax payment in Connecticut (rather than an out-of-state sales
tax credit) which results in a potential revenue gain.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
1
New York State does not currently tax purchases of motor vehicles by nonresidents.
Rhode Island does not charge Connecticut residents on the purchase of motor vehicles.