Substitute Bill No. 1447 proposes significant changes to the tax structure concerning peer-to-peer car sharing services, imposing a sales and use tax rate of nine and thirty-five-hundredths percent on transactions lasting thirty consecutive calendar days or less. This new tax provision is integrated into section 12-408 of the general statutes, which previously outlined various tax rates. The bill also repeals the existing requirement for legislative approval to study mileage-based user fees on state highways, thereby facilitating future studies on this topic. Additionally, it modifies references to the United States Code regarding military personnel purchasing motor vehicles, changing "50 App USC" to "50 App USC." The legislation further establishes a phased approach for tax revenue distribution, mandating that prior to July 1, 2023, seven and nine-tenths percent of tax revenues be deposited into the municipal revenue sharing account, transitioning to the Municipal Revenue Sharing Fund thereafter. It also introduces a base excise tax rate of six and thirty-five-hundredths percent for tangible personal property and services, with specific rates for motor vehicles and accommodations. The bill clarifies definitions related to peer-to-peer car sharing, requiring facilitators to obtain permits for tax collection and outlining their responsibilities. The effective date for certain sections is set for July 1, 2025, while the repeal of outdated regulations will take effect upon passage, modernizing the framework for the growing peer-to-peer car sharing industry.

Statutes affected:
Raised Bill:
TRA Joint Favorable Substitute:
File No. 543:
FIN Joint Favorable: