Connecticut House Bill HB05298

Connecticut 2023 Regular Session

• Introduced: 1/13/23
• Refer: 1/13/23

Caption

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

Impact

If enacted, the elimination of the additional one percent tax could have a significant impact on consumer behavior, potentially leading to increased patronage at restaurants and grocery stores. The bill proponents argue that reducing the tax burden on meals will not only help families save money but also stimulate economic activity in the food service industry. As consumers have more disposable income available, it may encourage them to spend more on dining and related services.

Summary

House Bill 05298 aims to amend chapter 219 of the general statutes concerning the sales and use taxes imposed on meals sold by eating establishments, caterers, or grocery stores. Specifically, the bill proposes to eliminate the additional one percent sales and use tax that is currently applied to such meals. This legislative change is designed to provide tax relief to consumers by lowering the cost of dining out or purchasing food from these establishments.

Contention

The legislation is likely to face discussion regarding its implications for state revenue. Critics may argue that removing this tax could lead to a reduction in funds available for essential public services funded by sales taxes. Supporters of the bill counter these concerns by highlighting the broader economic benefits of increased consumer spending and the potential for greater demand in the food industry. This ongoing debate reflects the challenge of balancing the need for government revenue against the need for economic support for consumers and local businesses.