The bill, Substitute House Bill No. 5490, proposes an amendment to Section 12-412 of the 2024 supplement to the general statutes by adding subdivision (127), which will exempt certain ambulance-type motor vehicles and ambulances from sales and use taxes. Specifically, starting July 1, 2025, the exemption will apply to ambulance-type vehicles used exclusively to transport medically incapacitated individuals, except when such vehicles are used to transport individuals for payment. Additionally, the exemption will apply to ambulances operating under a license or certificate issued by the Department of Public Health. The bill is effective from October 1, 2024.

The fiscal impact of the bill is a projected revenue loss of $500,000 annually beginning in the fiscal year 2025 due to the exemption of these vehicles from sales and use tax. The bill analysis clarifies that the exemption applies to ambulance-type vehicles not used for paid transportation of medically incapacitated individuals and to ambulances licensed or certified by the Department of Public Health. Current exemptions for sales of goods and services to municipalities, state agencies, and charitable nonprofits remain unchanged. The Finance, Revenue and Bonding Committee has given a Joint Favorable Substitute recommendation for the bill with a unanimous vote of 51 in favor and none against on April 3, 2024.

Statutes affected:
Raised Bill: 12-543