Bill > SB00107

This bill proposes changes to sales and use tax rates for motor vehicles in Connecticut by increasing the sales price threshold for a higher tax rate. Currently, motor vehicles with a sales price above a certain amount are subject to a 7.75% sales and use tax rate. The bill would raise this threshold to more than $65,000, meaning that only motor vehicles priced above this amount would be taxed at the higher rate. Additionally, the bill includes a provision to index the sales price threshold to inflation, which means the threshold will automatically adjust over time to reflect increases in the cost of living. This change aims to provide tax relief for consumers purchasing less expensive vehicles while maintaining the higher tax rate for more expensive luxury vehicles. The bill would amend Chapter 219 of the Connecticut General Statutes to implement these modifications to the motor vehicle sales tax structure.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB00107&which_year=2025