Connecticut 2023 Regular Session

Connecticut House Bill HB05291

Introduced
1/13/23  
Introduced
1/13/23  
Refer
1/13/23  

Caption

An Act Concerning The Sales And Use Taxes Rate And The Imposition Of On Meals Sold By An Eating Establishment, Caterer Or Grocery Store.

Impact

If passed, HB05291 would significantly modify how sales and use taxes are applied to meals sold by businesses within the state. By implementing an annual reduction based on inflation, the bill would provide a systematic approach to managing tax rates in a way that could potentially lower consumer prices for meals and incentivize spending in local eateries and grocery stores. Furthermore, the elimination of the additional one percent tax on meals is expected to increase affordability for consumers and might stimulate sales for affected businesses, possibly improving their customer base and overall economic activity within the sector.

Summary

House Bill 05291 focuses on adjusting the sales and use tax rates concerning meals sold by various food service providers, including eating establishments, caterers, and grocery stores. The bill proposes two major changes: first, it mandates an annual reduction in sales and use tax rates to account for the increased revenue attributable to inflation, and second, it seeks to eliminate the existing additional one percent sales tax currently imposed on meals sold in the mentioned establishments. These provisions are aimed at relieving the financial burden on consumers and businesses in the food service sector.

Contention

While supporters of HB05291 argue that the bill is necessary for economic relief, opponents have raised concerns regarding its long-term implications on state revenues. Critics argue that reducing tax revenue from the food service sector could strain state funds needed for essential services. Moreover, there may be concerns about the fairness of the tax adjustments, as certain demographics, such as low-income families, who depend more on affordable meal options would benefit more from tax relief. The discussion reflects a broader debate on balancing fiscal policy while promoting economic growth and providing consumer protection.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05073

An Act Concerning The Sales And Use Taxes Imposed On Meals Sold By An Eating Establishment, Caterer Or Grocery Store.

CT HB05107

An Act Concerning The Sales And Use Taxes Imposed On Meals Sold By An Eating Establishment, Caterer Or Grocery Store.

CT HB05025

An Act Concerning The Sales And Use Taxes Imposed On Meals Sold By An Eating Establishment, Caterer Or Grocery Store.

CT SB00078

An Act Concerning The Sales And Use Taxes Imposed On Meals Sold By An Eating Establishment, Caterer Or Grocery Store And The Use Of A Portion Of The Revenue Generated From Such Taxes.

CT HB05035

An Act Concerning The Sales And Use Taxes Imposed On Meals Sold By Certain Eating Establishments.

CT HB05490

An Act Concerning The Sales And Use Taxes On Ambulance-type Motor Vehicles And Ambulances.

CT SB00269

An Act Reducing The Sales And Use Taxes For Certain Goods Used In New Housing Construction.

CT HB05481

An Act Providing Grants For Tourism Public Safety From Revenue Collected From The Occupancy And Meals Tax.

CT HB05148

An Act Concerning Grocery Store Beer Permittees.

CT SB00083

An Act Concerning The Higher Sales And Use Taxes Rate Applicable To Certain Motor Vehicles.

Similar Bills

No similar bills found.