The General Assembly Raised Bill No. 7176 proposes significant amendments to Connecticut's sales and use tax laws, particularly affecting vehicle sales and the aircraft industry, as well as the allocation of meals tax revenue. Key changes include the repeal of subdivision (1) of section 12-408, which is replaced with new provisions establishing varied tax rates for different sales categories. The tax rate for motor vehicles exceeding $75,000 is increased to 7.75%, while a new 1% tax on meals sold by eating establishments, caterers, or grocery stores is introduced. The bill also mandates that starting September 30, 2025, 50% of meals tax revenue will be allocated to the Tourism Fund, alongside structured revenue distributions to the Municipal Revenue Sharing Fund and the Special Transportation Fund.

Additionally, the bill amends the excise tax structure on tangible personal property and services by repealing subdivision (1) of section 12-411 and substituting it with provisions that maintain a base tax rate of 6.35% while introducing specific rates for various categories. The threshold for the higher tax rate on motor vehicles is raised from $50,000 to $75,000, and exemptions for certain services and goods are refined. The bill also introduces a new sales tax exemption for ambulance-type vehicles used for transporting medically incapacitated individuals and establishes a 10% tax on dues for social, athletic, or sporting clubs, increasing the threshold for exemptions from $100 to $250. Overall, the bill aims to modernize tax rates and improve revenue allocation for state initiatives, particularly in tourism and transportation.

Statutes affected:
Raised Bill: 12-412, 12-543