OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
EMERGENCY CERTIFICATION
HB-5501
AN ACT SUSPENDING CERTAIN GAS TAXES AND SALES AND
USE TAXES ON CERTAIN CLOTHING AND ALLOCATING FUNDS
FOR FREE PUBLIC BUS SERVICES.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services TF - Revenue 90 million None
Loss
Department of Revenue Services GF - Revenue 2.5 million None
Loss
Department of Revenue Services TF - Revenue 240,000 None
Loss
Department of Revenue Services MRSF - Revenue 240,000 None
Loss
Consumer Protection, Dept.; GF - None None None
Attorney General
ARPA FF - Allocation 8.1 million None
Note: TF=Transportation Fund; GF=General Fund; MRSF=Municipal Revenue Sharing Fund; FF=Federal
Funds
Municipal Impact: None
Explanation
The bill results in total revenue loss to the state of $93 million and in an
ARPA allocation of $8.1 million, all in FY 22. Section-by-section impacts
are described below.
Section 1 suspends the 25 cents per gallon gasoline/gasohol tax for the
final three months of FY 22, resulting in a one-time revenue loss of
$90 million to the Special Transportation Fund.
Primary Analyst: PM 3/23/22
Contributing Analyst(s): DD, ME, MR, EW
2022HB-05501-R00-FN.DOCX Page 2 of 2
Section 1 also requires retail dealers to reduce the per-gallon price of
gasoline/gasohol sold in an amount equal to the amount of the
reduction in the state tax. The bill makes any violation of this
requirement an unfair or deceptive trade practice, subject to regulation
by the state Department of Consumer Protection and, ultimately, the
Office of the Attorney General. It is anticipated that any additional work
required of these state agencies under this provision could be
accommodated without requiring additional resources.
Section 2 results in a one-time revenue loss of $3 million in FY 22 only
by permitting a sales tax holiday on clothing and footwear under $100
for one week in April.
The revenue loss is distributed amongst the following funds: $2.5
million to the General Fund, $240,000 to the Special Transportation
Fund and $240,000 to the Municipal Revenue Sharing Account.1
Section 3 of the bill allocates $8.1 million of ARPA funds to provide free
bus public transportation services.
The Out Years
None
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely
for the purposes of information, summarization and explanation and does not represent the intent of the General
Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of
informational sources, including the analysts professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.
1 Tax collections generated by the 6.35% general sales tax rate are
distributed as follows: 5.35 percentage points (84.25% of collections) to
the General Fund and 0.5 percentage points (7.87% of collections) to (1)
the Special Transportation Fund and (2) Municipal Revenue Sharing
Account each.