OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-1449 AN ACT CONCERNING MEDIUM -DUTY AND HEAVY -DUTY TOWING. Primary Analyst: PM 4/7/25 Contributing Analyst(s): EW Reviewer: MM OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 26 $ FY 27 $ Department of Revenue Services Various - Revenue Gain Minimal Minimal Note: Various=Various Municipal Impact: None Explanation The bill results in a minimal revenue gain to the state by requiring the Department of Motor Vehicles (DMV) to modify the rates charges for nonconsensual medium- and heavy-duty towing services. The actual rate increase will depend upon the rates adopted by the DMV. Towing services are subject to the state's sales tax. 1 Other aspects of the bill can be accomplished within DMV's existing operations and expertise, are technical or conforming, or are otherwise not expected to result in a fiscal impact to the state or municipalities. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to any additional rate adjustments. 1 By statue, 0.5 percentage points of the 6.35 percent rate (or 7.87% of collections) is deposited into the Special Transportation Fund and Municipal Revenue Sharing Fund (0.5 percentage points each). The remaining 5.35 percentage points (or 84.25%) is deposited into the General Fund.