Senate Bill No. 1456 aims to amend the allocation of meals tax revenue by introducing a new one percent tax on meals sold by eating establishments, caterers, or grocery stores, in addition to the existing sales tax. The bill repeals subdivision (1) of section 12-408 of the general statutes and replaces it with provisions that maintain current tax rates while designating ten percent of the revenue from this new meals tax to the Tourism Fund, effective from September 30, 2025. This change is intended to bolster funding for arts, culture, and tourism initiatives within the state. The bill is set to take effect on July 1, 2025, applying to sales occurring on or after that date.

Additionally, the bill modifies the distribution of tax revenues by deleting the previous requirement for the commissioner to deposit funds into the Tourism Fund for calendar quarters ending on or after September 30, 2018, and instead mandates the new allocation starting from September 30, 2025. It also outlines a tiered approach for the Special Transportation Fund and the Municipal Revenue Sharing Fund, specifying varying percentages of tax revenue to be deposited over time. The bill repeals and replaces subdivision (1) of section 12-411, establishing a tax rate of 6.35% on the sales price of tangible personal property, with exemptions and specific rates for certain items. The fiscal impact is projected to result in an estimated revenue loss of $11 million in FY 26 and $11.3 million in FY 27 for the General Fund, while providing a corresponding revenue gain to the Tourism Fund.