Senate Bill No. 1456 seeks 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, which will be 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 for calendar quarters ending on or after September 30, 2025. This marks a significant shift from current law, which does not allocate any meals tax revenue to the Tourism Fund, as it only receives a similar percentage from hotel occupancy tax revenue.

Additionally, the bill modifies the municipal revenue sharing and Special Transportation Fund allocations, mandating that from July 1, 2021, to June 30, 2023, 7.9% of tax revenue from specified sources be deposited into the municipal revenue sharing account, with a continuation of this percentage thereafter. It also repeals and replaces subdivision (1) of section 12-411, imposing a new excise tax on tangible personal property and services at a standard rate of 6.35%, with specific rates for hotel stays and exemptions for military personnel. The bill is expected 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 enhancing funding for arts, culture, and tourism initiatives in the state. The changes will take effect on July 1, 2025.