The proposed General Assembly Raised Bill No. 7176 seeks to amend sales and use tax regulations in Connecticut, particularly concerning motor vehicles, the aircraft industry, and the allocation of meals tax revenue. Key changes include the repeal of subdivision (1) of section 12-408, which is replaced with new provisions that introduce a tax rate of seven and three-fourths percent on motor vehicle sales exceeding seventy-five thousand dollars, up from the previous threshold of fifty thousand dollars. The bill also establishes a one percent tax on meals sold by eating establishments and a four and one-half percent tax on motor vehicle sales to certain military personnel. Additionally, it mandates that a portion of tax revenues be allocated to the Tourism Fund and the Municipal Revenue Sharing Fund, with a structured deposit schedule to enhance funding for regional planning and tourism initiatives.

Further amendments include the repeal and replacement of subdivision (1) of section 12-411, which pertains to the excise tax on tangible personal property, establishing a base tax rate of 6.35% and introducing specific rates for various goods and services. The bill raises the dues tax exemption threshold from $100 to $250 for club dues and initiation fees while maintaining exemptions for certain charitable organizations. It also extends the sales tax exemption period for joint ventures in the aircraft industry from forty to fifty years. New exemptions are introduced for ambulance-type vehicles used for transporting medically incapacitated individuals. The effective date for these changes is set for July 1, 2025.

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