House Bill No. 6925, reported by the Committee on Finance, Revenue and Bonding, proposes to exempt certain items from the sales and use taxes in the state. The bill introduces two new subdivisions to Section 12-412 of the general statutes. The first exemption (subdivision 127) applies to sales of children's clothing and footwear intended exclusively for children under ten years of age. The second exemption (subdivision 128) applies to sales of personal protective equipment, which includes specialized clothing or equipment worn for protection against infectious diseases, such as protective clothing, shields, barriers, and equipment for the eyes, face, head, and extremities.

Additionally, the bill amends subparagraph (J) of subdivision (37) of section 12-407 of the general statutes by repealing the existing language and substituting it with new provisions. These provisions expand the exemption from sales and use tax to include all job-related or personnel training services, rather than only those provided by higher education institutions. The bill is effective from July 1, 2023, and applies to sales occurring on or after this date. The fiscal impact statement indicates that the bill will result in a total state revenue loss of $13.5 million annually due to these exemptions. The bill has been given a joint favorable report by the Finance, Revenue and Bonding Committee.

Statutes affected:
Raised Bill: 12-412
FIN Joint Favorable: 12-412
File No. 714: 12-412