The General Assembly Raised Bill No. 1456 proposes significant changes to the allocation of meals tax revenue in Connecticut, specifically directing funds to support arts, culture, and tourism initiatives. The bill amends section 12-408 of the general statutes by introducing an additional one percent tax on meals sold by eating establishments, caterers, or grocery stores, effective July 1, 2025. This new tax will be applied in addition to the existing sales tax rate. Furthermore, the bill deletes the previous requirement for meals tax revenues to be deposited into the regional planning incentive account and mandates that ten percent of the meals tax revenue be deposited into a newly established Tourism Fund, with this change taking effect for calendar quarters ending on or after September 30, 2025.

Additionally, Raised Bill No. 1456 modifies the distribution of tax revenues related to municipal revenue sharing and the Special Transportation Fund. It specifies that from July 1, 2021, to June 30, 2023, 7.9% of tax revenue from a specified tax will be deposited into the municipal revenue sharing account, transitioning to the Municipal Revenue Sharing Fund thereafter. The bill also repeals and replaces subdivision (1) of section 12-411, imposing an excise tax on the storage and use of tangible personal property and services, with specific rates for categories like hotel stays and motor vehicles. Notably, it introduces reduced tax rates for certain armed forces members and exemptions for specific services. Overall, the bill aims to enhance municipal funding and transportation infrastructure through these tax adjustments and allocations, with the new provisions set to take effect on July 1, 2025.