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. The bill also introduces new requirements for organizations receiving grants, mandating them to submit detailed expenditure reports to Connecticut Humanities, which will then report to the General Assembly.

In addition to creating the culture and tourism account, the bill modifies the existing tax structure by repealing and replacing certain provisions in section 12-408 of the general statutes. It clarifies tax rates for various sales and services, including a 9.35% tax on the rental of passenger motor vehicles for 30 days or less, and a 7.75% tax on the sale of high-value items such as motor vehicles over $50,000 and jewelry over $5,000. The bill also outlines a phased increase in tax revenue allocations to various funds, including the municipal revenue sharing account and the Special Transportation Fund. Overall, SB1551 aims to streamline tax allocations while ensuring that funds generated contribute to the support of arts and humanities activities in the state, with an anticipated revenue loss of approximately $11 million for the General Fund in FY 26 and FY 27, offset by gains for the culture and tourism account.

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