Senate Bill No. 1551 establishes a new "culture and tourism account" within the state's financial framework, replacing the previous General Fund designation. This account will receive a minimum of ten percent of the revenue generated from a specific state tax, particularly the 1% meals and beverage tax, starting from the quarter ending on September 30, 2025. The funds allocated to this account are intended to support grants for organizations that promote the arts, enhance tourism, and preserve historical resources. Additionally, the bill introduces a requirement for organizations receiving grants to submit detailed expenditure reports to Connecticut Humanities within six months of receiving the funds, ensuring transparency and accountability.

The bill also modifies the existing tax structure by repealing and replacing subdivision (1) of section 12-408 and subdivision (1) of section 12-411 of the general statutes, which outline sales tax rates and impose an excise tax on tangible personal property and services. The new provisions specify tax rates for various transactions, including a 9.35% tax for the rental of passenger motor vehicles and a 7.75% tax on high-value sales such as motor vehicles over $50,000. The bill aims to streamline tax revenue allocations while increasing funding for the Special Transportation Fund and other designated accounts. The effective date for the bill is set for July 1, 2025, with the exception of Section 1, which takes effect upon passage.

Statutes affected:
Raised Bill: 10-395
APP Joint Favorable: 10-395
File No. 879: 10-395