Raised Bill No. 5443 introduces significant modifications to Connecticut's sales and use tax laws, focusing on various categories such as motor vehicles, peer-to-peer car sharing, and biotechnology. The bill establishes a new tax rate of 9.35% for the rental or leasing of passenger motor vehicles and peer-to-peer car sharing for periods of thirty consecutive calendar days or less. It also adjusts the tax rate for high-value motor vehicles, jewelry, and certain clothing items, raising the threshold for the higher tax rate from $50,000 to $75,000. Additionally, the bill increases the exemption limit for tangible personal property sold by funeral establishments from $2,500 to $10,000 and expands exemptions for the biotechnology sector to include electricity used for biotechnology activities.

Moreover, the bill outlines a phased increase in the percentage of tax revenue allocated to the Special Transportation Fund, starting at 17% and reaching 100% by July 1, 2022. It also mandates that 50% of the additional 1% sales tax on meals be directed to the Tourism Fund. The bill repeals and replaces existing legal language in sections 12-408 and 12-411 to reflect these changes, ensuring that the tax code aligns with current economic conditions and industry practices. Overall, Raised Bill No. 5443 aims to enhance tax structure, provide specific exemptions, and promote economic activity in tourism and biotechnology sectors.

Statutes affected:
Raised Bill: 12-407e