Bill > HB07176

This bill makes several changes to Connecticut's tax laws, primarily focusing on sales and use taxes. First, it increases the sales price threshold for motor vehicles subject to a higher tax rate from $50,000 to $75,000, meaning vehicles sold for more than $75,000 will be taxed at 7.75% instead of the standard rate. Second, the bill dedicates a new portion of meals tax revenue to the Tourism Fund, specifically 50% of the tax collected on meals and beverages starting September 30, 2025. Third, it extends the sales and use tax exemption for certain joint ventures in the aircraft industry, specifically increasing the maximum exemption period for existing joint ventures from 40 to 50 consecutive years. Fourth, the bill exempts ambulance-type motor vehicles and ambulances from sales and use taxes when used to transport medically incapacitated individuals (except for paid transportation). Finally, the bill increases the threshold for the dues tax exemption from $100 to $250 annually, meaning clubs with annual dues of $250 or less will be exempt from the tax. These changes are set to take effect on July 1, 2025, and aim to provide tax relief and support for specific industries and services in Connecticut.

Budget and Finance

Finance, Revenue and Bonding Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB07176&which_year=2025