Connecticut House Bill HB05102

Connecticut 2024 Regular Session

• Introduced: 2/14/24
• Refer: 2/14/24

Caption

An Act Combining The Petroleum Products Gross Earnings Tax And The Motor Vehicle Fuels Tax.

Impact

If enacted, HB 05102 would significantly impact how fuel is taxed in the state. by consolidating these two taxes into one, the bill could lead to a more straightforward approach for taxpayers who purchase fuels and for businesses operating in the fuel sector. The intention behind this consolidation is to create clarity and efficiency in taxation. However, it also raises questions about how the unification of these taxes would affect revenue generation for the state, particularly if the combined rate differs from what the two separate taxes previously incurred.

Summary

House Bill 05102 proposes to combine two existing taxes: the petroleum products gross earnings tax and the motor vehicle fuels tax. The bill aims to streamline the taxation process by imposing a single tax on a per-gallon basis for both, rather than managing them separately. This initiative is part of broader efforts to simplify tax laws in the state and potentially reduce administrative burdens for both the government and taxpayers.

Contention

There are notable discussions around HB 05102 regarding its potential impact on state revenue and the adequacy of funding for maintenance of existing infrastructure. Some lawmakers are concerned that simplifying and potentially lowering the tax burden could lead to reduced funding for essential services. Despite these concerns, proponents argue that a combined tax could foster economic growth by possibly lowering costs for consumers and businesses in the fuel sector. The contrasting views on revenue implications highlight a significant point of contention among legislators and stakeholders.