Substitute Bill No. 1447 introduces significant changes to the taxation and regulation of peer-to-peer car sharing services in Connecticut. The bill establishes a sales and use tax rate of nine and thirty-five-hundredths percent for rentals lasting thirty consecutive days or less, which is integrated into the existing tax framework outlined in section 12-408 of the general statutes. Additionally, it repeals the requirement for legislative approval for studying mileage-based user fees on state highways, thereby facilitating future studies on this topic. The bill also updates legal references to ensure compliance with current standards and clarifies definitions related to peer-to-peer car sharing, including terms like "peer-to-peer car sharing company" and "car sharing agreement."

Moreover, the legislation mandates that prior to July 1, 2023, seven and nine-tenths percent of state tax revenues be deposited into the municipal revenue sharing account, transitioning to the Municipal Revenue Sharing Fund thereafter. It outlines a phased approach for tax revenue allocation to the Special Transportation Fund, increasing to one hundred percent by July 1, 2022. The bill also modifies the excise tax structure on tangible personal property and services, establishing a new rate of six and thirty-five-hundredths percent for most items, while introducing specific rates for hotel stays and motor vehicle rentals. Overall, Substitute Bill No. 1447 aims to modernize tax regulations and streamline processes related to transportation funding and peer-to-peer car sharing services.

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