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General Assembly Raised Bill No. 1456
January Session, 2025
LCO No. 5886
Referred to Committee on COMMERCE
Introduced by:
(CE)
AN ACT DEDICATING A PORTION OF THE MEALS TAX REVENUE TO
ARTS, CULTURE AND TOURISM.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (1) of section 12-408 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective July 1, 2
2025, and applicable to sales occurring on or after July 1, 2025): 3
(1) (A) For the privilege of making any sales, as defined in 4
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 5
for a consideration, a tax is hereby imposed on all retailers at the rate of 6
six and thirty-five-hundredths per cent of the gross receipts of any 7
retailer from the sale of all tangible personal property sold at retail or 8
from the rendering of any services constituting a sale in accordance with 9
subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 10
rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 11
subdivision; 12
(B) (i) At a rate of fifteen per cent with respect to each transfer of 13
occupancy, from the total amount of rent received by a hotel or lodging 14
house for the first period not exceeding thirty consecutive calendar 15 Raised Bill No. 1456
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days; 16
(ii) At a rate of eleven per cent with respect to each transfer of 17
occupancy, from the total amount of rent received by a bed and 18
breakfast establishment for the first period not exceeding thirty 19
consecutive calendar days; 20
(C) With respect to the sale of a motor vehicle to any individual who 21
is a member of the armed forces of the United States and is on full-time 22
active duty in Connecticut and who is considered, under 50 App USC 23
574, a resident of another state, or to any such individual and the spouse 24
thereof, at a rate of four and one-half per cent of the gross receipts of any 25
retailer from such sales, provided such retailer requires and maintains a 26
declaration by such individual, prescribed as to form by the 27
commissioner and bearing notice to the effect that false statements made 28
in such declaration are punishable, or other evidence, satisfactory to the 29
commissioner, concerning the purchaser's state of residence under 50 30
App USC 574; 31
(D) (i) With respect to the sales of computer and data processing 32
services occurring on or after July 1, 2001, at the rate of one per cent, and 33
(ii) with respect to sales of Internet access services, on and after July 1, 34
2001, such services shall be exempt from such tax; 35
(E) (i) With respect to the sales of labor that is otherwise taxable under 36
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 37
12-407 on existing vessels and repair or maintenance services on vessels 38
occurring on and after July 1, 1999, such services shall be exempt from 39
such tax; 40
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 41
used for transporting a vessel, at the rate of two and ninety-nine-42
hundredths per cent, except that the sale of a vessel shall be exempt from 43
such tax if such vessel is docked in this state for sixty or fewer days in a 44
calendar year; 45
(iii) With respect to the sale of dyed diesel fuel, as defined in 46 Raised Bill No. 1456
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subsection (d) of section 12-487, sold by a marine fuel dock exclusively 47
for marine purposes, at the rate of two and ninety-nine-hundredths per 48
cent; 49
(F) With respect to patient care services for which payment is 50
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 51
at the rate of five and three-fourths per cent and on and after July 1, 2001, 52
such services shall be exempt from such tax; 53
(G) With respect to the rental or leasing of a passenger motor vehicle 54
for a period of thirty consecutive calendar days or less, at a rate of nine 55
and thirty-five-hundredths per cent; 56
(H) With respect to the sale of (i) a motor vehicle for a sales price 57
exceeding fifty thousand dollars, at a rate of seven and three-fourths per 58
cent on the entire sales price, (ii) jewelry, whether real or imitation, for 59
a sales price exceeding five thousand dollars, at a rate of seven and 60
three-fourths per cent on the entire sales price, and (iii) an article of 61
clothing or footwear intended to be worn on or about the human body, 62
a handbag, luggage, umbrella, wallet or watch for a sales price 63
exceeding one thousand dollars, at a rate of seven and three-fourths per 64
cent on the entire sales price. For purposes of this subparagraph, "motor 65
vehicle" has the meaning provided in section 14-1, but does not include 66
a motor vehicle subject to the provisions of subparagraph (C) of this 67
subdivision, a motor vehicle having a gross vehicle weight rating over 68
twelve thousand five hundred pounds, or a motor vehicle having a 69
gross vehicle weight rating of twelve thousand five hundred pounds or 70
less that is not used for private passenger purposes, but is designed or 71
used to transport merchandise, freight or persons in connection with 72
any business enterprise and issued a commercial registration or more 73
specific type of registration by the Department of Motor Vehicles; 74
(I) With respect to the sale of meals, as defined in subdivision (13) of 75
section 12-412, sold by an eating establishment, caterer or grocery store; 76
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 77
such as are ordinarily dispensed at bars and soda fountains, or in 78 Raised Bill No. 1456
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connection therewith; in addition to the tax imposed under 79
subparagraph (A) of this subdivision, at the rate of one per cent; 80
(J) The rate of tax imposed by this chapter shall be applicable to all 81
retail sales upon the effective date of such rate, except that a new rate 82
that represents an increase in the rate applicable to the sale shall not 83
apply to any sales transaction wherein a binding sales contract without 84
an escalator clause has been entered into prior to the effective date of the 85
new rate and delivery is made within ninety days after the effective date 86
of the new rate. For the purposes of payment of the tax imposed under 87
this section, any retailer of services taxable under subdivision (37) of 88
subsection (a) of section 12-407, who computes taxable income, for 89
purposes of taxation under the Internal Revenue Code of 1986, or any 90
subsequent corresponding internal revenue code of the United States, 91
as amended from time to time, on an accounting basis that recognizes 92
only cash or other valuable consideration actually received as income 93
and who is liable for such tax only due to the rendering of such services 94
may make payments related to such tax for the period during which 95
such income is received, without penalty or interest, without regard to 96
when such service is rendered; 97
(K) (i) For calendar quarters ending on or after September 30, 2019, 98
the commissioner shall deposit into the regional planning incentive 99
account, established pursuant to section 4-66k, six and seven-tenths per 100
cent of the amounts received by the state from the tax imposed under 101
subparagraph (B) of this subdivision and ten and seven-tenths per cent 102
of the amounts received by the state from the tax imposed under 103
subparagraph (G) of this subdivision; 104
(ii) [For calendar quarters ending on or after September 30, 2018, the] 105
The commissioner shall deposit into the Tourism Fund established 106
under section 10-395b: (I) For calendar quarters ending on or after 107
September 30, 2018, ten per cent of the amounts received by the state 108
from the tax imposed under subparagraph (B) of this subdivision; and 109
(II) for calendar quarters ending on or after September 30, 2025, ten per 110
cent of the amounts received by the state from the tax imposed under 111 Raised Bill No. 1456
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subparagraph (I) of this subdivision; 112
(L) (i) For calendar months commencing on or after July 1, 2021, but 113
prior to July 1, 2023, the commissioner shall deposit into the municipal 114
revenue sharing account established pursuant to section 4-66l seven and 115
nine-tenths per cent of the amounts received by the state from the tax 116
imposed under subparagraph (A) of this subdivision, including such 117
amounts received on or after July 1, 2023, attributable to the fiscal year 118
ending June 30, 2023; and 119
(ii) For calendar months commencing on or after July 1, 2023, the 120
commissioner shall deposit into the Municipal Revenue Sharing Fund 121
established pursuant to section 4-66p seven and nine-tenths per cent of 122
the amounts received by the state from the tax imposed under 123
subparagraph (A) of this subdivision; and 124
(M) (i) For calendar months commencing on or after July 1, 2017, the 125
commissioner shall deposit into the Special Transportation Fund 126
established under section 13b-68 seven and nine-tenths per cent of the 127
amounts received by the state from the tax imposed under 128
subparagraph (A) of this subdivision; 129
(ii) For calendar months commencing on or after July 1, 2018, but 130
prior to July 1, 2019, the commissioner shall deposit into the Special 131
Transportation Fund established under section 13b-68 eight per cent of 132
the amounts received by the state from the tax imposed under 133
subparagraphs (A) and (H) of this subdivision on the sale of a motor 134
vehicle; 135
(iii) For calendar months commencing on or after July 1, 2019, but 136
prior to July 1, 2020, the commissioner shall deposit into the Special 137
Transportation Fund established under section 13b-68 seventeen per 138
cent of the amounts received by the state from the tax imposed under 139
subparagraphs (A) and (H) of this subdivision on the sale of a motor 140
vehicle; 141
(iv) For calendar months commencing on or after July 1, 2020, but 142 Raised Bill No. 1456
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prior to July 1, 2021, the commissioner shall deposit into the Special 143
Transportation Fund established under section 13b-68 twenty-five per 144
cent of the amounts received by the state from the tax imposed under 145
subparagraphs (A) and (H) of this subdivision on the sale of a motor 146
vehicle; 147
(v) For calendar months commencing on or after July 1, 2021, but 148
prior to July 1, 2022, the commissioner shall deposit into the Special 149
Transportation Fund established under section 13b-68 seventy-five per 150
cent of the amounts received by the state from the tax imposed under 151
subparagraphs (A) and (H) of this subdivision on the sale of a motor 152
vehicle; and 153
(vi) For calendar months commencing on or after July 1, 2022, the 154
commissioner shall deposit into the Special Transportation Fund 155
established under section 13b-68 one hundred per cent of the amounts 156
received by the state from the tax imposed under subparagraphs (A) 157
and (H) of this subdivision on the sale of a motor vehicle. 158
Sec. 2. Subdivision (1) of section 12-411 of the general statutes is 159
repealed and the following is substituted in lieu thereof (Effective July 1, 160
2025, and applicable to sales occurring on or after July 1, 2025): 161
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 162
consumption or any other use in this state of tangible personal property 163
purchased from any retailer for storage, acceptance, consumption or any 164
other use in this state, the acceptance or receipt of any services 165
constituting a sale in accordance with subdivision (2) of subsection (a) 166
of section 12-407, purchased from any retailer for consumption or use in 167
this state, or the storage, acceptance, consumption or any other use in 168
this state of tangible personal property which has been manufactured, 169
fabricated, assembled or processed from materials by a person, either 170
within or without this state, for storage, acceptance, consumption or any 171
other use by such person in this state, to be measured by the sales price 172
of materials, at the rate of six and thirty-five-hundredths per cent of the 173
sales price of such property or services, except, in lieu of said rate: 174 Raised Bill No. 1456
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(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 175
house for the first period not exceeding thirty consecutive calendar 176
days; 177
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 178
establishment for the first period not exceeding thirty consecutive 179
calendar days; 180
(C) With respect to the storage, acceptance, consumption or use in 181
this state of a motor vehicle purchased from any retailer for storage, 182
acceptance, consumption or use in this state by any individual who is a 183
member of the armed forces of the United States and is on full-time 184
active duty in Connecticut and who is considered, under 50 App USC 185
574, a resident of another state, or to any such individual and the spouse 186
of such individual at a rate of four and one-half per cent of the sales price 187
of such vehicle, provided such retailer requires and maintains a 188
declaration by such individual, prescribed as to form by the 189
commissioner and bearing notice to the effect that false statements made 190
in such declaration are punishable, or other evidence, satisfactory to the 191
commissioner, concerning the purchaser's state of residence under 50 192
App USC 574; 193
(D) (i) With respect to the acceptance or receipt in this state of labor 194
that is otherwise taxable under subparagraph (C) or (G) of subdivision 195
(2) of subsection (a) of section 12-407 on existing vessels and repair or 196
maintenance services on vessels occurring on and after July 1, 1999, such 197
services shall be exempt from such tax; 198
(ii) (I) With respect to the storage, acceptance or other use of a vessel 199
in this state, at the rate of two and ninety-nine-hundredths per cent, 200
except that such storage, acceptance or other use shall be exempt from 201
such tax if such vessel is docked in this state for sixty or fewer days in a 202
calendar year; 203
(II) With respect to the storage, acceptance or other use of a motor for 204
a vessel or a trailer used for transporting a vessel in this state, at the rate 205
of two and ninety-nine-hundredths per cent; 206 Raised Bill No. 1456
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(III) With respect to the storage, acceptance or other use of dyed diesel 207
fuel, as defined in subsection (d) of section 12-487, exclusively for 208
marine purposes, at the rate of two and ninety-nine-hundredths per 209
cent; 210
(E) (i) With respect to the acceptance or receipt in this state of 211
computer and data processing services purchased from any retailer for 212
consumption or use in this state occurring on or after July 1, 2001, at the 213
rate of one per cent of such services, and (ii) with respect to the 214
acceptance or receipt in this state of Internet access services, on and after 215
July 1, 2001, such services shall be exempt from such tax; 216
(F) With respect to the acceptance or receipt in this state of patient 217
care services purchased from any retailer for consumption or use in this 218
state for which payment is received by the hospital on or after July 1, 219
1999, and prior to July 1, 2001, at the rate of five and three-fourths per 220
cent and on and after July 1, 2001, such services shall be exempt from 221
such tax; 222
(G) With respect to the rental or leasing of a passenger motor vehicle 223
for a period of thirty consecutive calendar days or less, at a rate of nine 224
and thirty-five-hundredths per cent; 225
(H) With respect to the acceptance or receipt in this state of (i) a motor 226
vehicle for a sales price exceeding fifty thousand dollars, at a rate of 227
seven and three-fourths per cent on the entire sales price, (ii) jewelry, 228
whether real or imitation, for a sales price exceeding five thousand 229
dollars, at a rate of seven and three-fourths per cent on the entire sales 230
price, and (iii) an article of clothing or footwear intended to be worn on 231
or about the human body, a handbag, luggage, umbrella, wallet or 232
watch for a sales price exceeding one thousand dollars, at a rate of seven 233
and three-fourths per cent on the entire sales price. For purposes of this 234
subparagraph, "motor vehicle" has the meaning provided in section 14-235
1, but does not include a motor vehicle subject to the provisions of 236
subparagraph (C) of this subdivision, a motor vehicle having a gross 237
vehicle weight rating over twelve thousand five hundred pounds, or a 238 Raised Bill No. 1456
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motor vehicle having a gross vehicle weight rating of twelve thousand 239
five hundred pounds or less that is not used for private passenger 240
purposes, but is designed or used to transport merchandise, freight or 241
persons in connection with any business enterprise and issued a 242
commercial registration or more specific type of registration by the 243
Department of Motor Vehicles; 244
(I) With respect to the acceptance or receipt in this state of meals, as 245
defined in subdivision (13) of section 12-412, sold by an eating 246
establishment, caterer or grocery store; and spirituous, malt or vinous 247
liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 248
at bars and soda fountains, or in connection therewith; in addition to the 249
tax imposed under subparagraph (A) of this subdivision, at the rate of 250
one per cent; 251
(J) (i) For calendar quarters ending on or after September 30, 2019, the 252
commissioner shall deposit into the regional planning incentive 253
account, established pursuant to section 4-66k, six and seven-tenths per 254
cent of the amounts received by the state from the tax imposed under 255
subparagraph (B) of this subdivision and ten and seven-tenths per cent 256
of the amounts received by the state from the tax imposed under 257
subparagraph (G) of this subdivision; 258
(ii) [For calendar quarters ending on or after September 30, 2018, the] 259
The commissioner shall deposit into the Tourism Fund established 260
under section 10-395b: (I) For calendar quarters ending on or after 261
September 30, 2018, ten per cent of the amounts received by the state 262
from the tax imposed under subparagraph (B) of this subdivision; and 263
(II) for calendar quarters ending on or after September 30, 2025, ten per 264
cent of the amounts received by the state from the tax imposed under 265
subparagraph (I) of this subdivision; 266
(K) (i) For calendar months commencing on or after July 1, 2021, but 267
prior to July 1, 2023, the commissioner shall deposit into the municipal 268
revenue sharing account established pursuant to section 4-66l seven and 269
nine-tenths per cent of the amounts received by the state from the tax 270 Raised Bill No. 1456
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imposed under subparagraph (A) of this subdivision, including such 271
amounts received on or after July 1, 2023, attributable to the fiscal year 272
ending June 30, 2023; and 273
(ii) For calendar months commencing on or after July 1, 2023, the 274
commissioner shall deposit into the Municipal Revenue Sharing Fund 275
established pursuant to section 4-66p seven and nine-tenths per cent of 276
the amounts received by the state from the tax imposed under 277
subparagraph (A) of this subdivision; and 278
(L) (i) For calendar months commencing on or after July 1, 2017, the 279
commissioner shall deposit into said Special Transportation Fund seven 280
and nine-tenths per cent of the amounts received by the state from the 281
tax imposed under subparagraph (A) of this subdivision; 282
(ii) For calendar months commencing on or after July 1, 2018, but 283
prior to July 1, 2019, the commissioner shall deposit into the Special 284
Transportation Fund established under section 13b-68 eight per cent of 285
the amounts received by the state from the tax imposed under 286
subparagraphs (A) and (H) of this subdivision on the acceptance or 287
receipt in this state of a motor vehicle; 288
(iii) For calendar months commencing on or after July 1, 2019, but 289
prior to July 1, 2020, the commissioner shall deposit into the Special 290
Transportation Fund established under section 13b-68 seventeen per 291
cent of the amounts received by the state from the tax imposed under 292
subparagraphs (A) and (H) of this subdivision on the acceptance or 293
receipt in this state of a motor vehicle; 294
(iv) For calendar months commencing on or after July 1, 2020, but 295
prior to July 1, 2021, the commissioner shall deposit into the Special 296
Transportation Fund established under section 13b-68 twenty-five per 297
cent of the amounts received by the state from the tax imposed under 298
subparagraphs (A) and (H) of this subdivision on the acceptance or 299
receipt in this state of a motor vehicle; 300
(v) For calendar months commencing on or after July 1, 2021, but 301 Raised Bill No. 1456
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prior to July 1, 2022, the commissioner shall deposit into the Special 302
Transportation Fund established under section 13b-68 seventy-five per 303
cent of the amounts received by the state from the tax imposed under 304
subparagraphs (A) and (H) of this subdivision on the acceptance or 305
receipt in this state of a motor vehicle; and 306
(vi) For calendar months commencing on or after July 1, 2022, the 307
commissioner shall deposit into the Special Transportation Fund 308
established under section 13b-68 one hundred per cent of the amounts 309
received by the state from the tax imposed under subparagraphs (A) 310
and (H) of this subdivision on the acceptance or receipt in this state of a 311
motor vehicle. 312
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025, and
applicable to sales
occurring on or after July
1, 2025
12-408(1)
Sec. 2 July 1, 2025, and
applicable to sales
occurring on or after July
1, 2025
12-411(1)
CE Joint Favorable C/R APP