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, in addition to the existing tax rate of six and thirty-five-hundredths percent. The bill repeals subdivision (1) of section 12-408 of the general statutes and replaces it with provisions that require the commissioner to deposit ten percent of the meals tax revenue into the Tourism Fund, effective for calendar quarters ending on or after September 30, 2025. This change replaces the previous requirement for a similar deposit that was set to begin on September 30, 2018, thereby ensuring a direct financial support mechanism for tourism-related activities.

Additionally, the bill modifies the tax structure related to municipal revenue sharing and the Special Transportation Fund. It mandates that from July 1, 2021, to June 30, 2023, the commissioner will deposit 7.9% of tax revenue from specified sources into the municipal revenue sharing account, with this percentage continuing thereafter. The bill also repeals and replaces subdivision (1) of section 12-411, establishing a tax rate of 6.35% on the sales price of tangible personal property, while introducing specific tax rates for various goods and services. Overall, SB1456 aims to enhance funding for arts, culture, and tourism initiatives while adjusting tax rates and allocations to improve municipal funding and transportation resources. The bill is expected to take effect on July 1, 2025, and may result in an estimated revenue loss for the General Fund while benefiting the Tourism Fund.