Bill > HB05994

This bill proposes to modify existing tax law by changing how revenue from an additional one percent sales and use tax on meals (purchased from eating establishments, caterers, or grocery stores) is distributed. Currently, this extra one percent tax is likely collected at the state level, but the bill would require that these tax revenues be returned directly to the specific municipalities where the meals were sold. This means that if a restaurant in Hartford collects this additional one percent tax, that revenue would be sent back to Hartford, rather than being retained by the state. The bill aims to provide a more localized approach to tax revenue distribution, potentially giving municipalities more direct financial benefit from economic activity within their boundaries. The change would be made to Chapter 219 of the general statutes and appears designed to provide a more direct financial connection between local food sales and municipal funding.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05994&which_year=2025