The tax bill approved by the Finance Committee last evening did not include a repeal of Connecticut’s current exemption of new, used or leased commercial vehicles from Connecticut’s sales tax. While repeal of this exemption was on the list Tuesday night, the bill drafted by the chairmen for the Wednesday committee meeting did not include the language.
I cannot guarantee MTAC’s member opposition to the original proposal took repeal off the table. However, many members of the committee came to me yesterday to learn more about our concerns. Hopefully, because of the swift and adamant opposition to the repeal of the sales tax exemption, the committee, leadership and members of the legislature will consider this to be a radioactive issue they should stay clear of in the future.
In other matters, the Finance Committee did vote to repeal other sales tax exemptions, while broadening the tax base to new goods and services, and lowering the rate of the general sales tax. They also voted to cap the property tax on motor vehicles at 29 mils. With increases in income tax and capital gains taxes, the committee proposed tax increases of more than $1 billion. It’s difficult to get the details because the language of the bills were not readily available.
So, thanks for jumping in if you did. I believe our effort was helpful. Now, stand by because the governor is about to react to the Finance Committee’s actions. Get ready for a “Ruuuuuummmmmble!”
We’ll keep you posted as things develop. With just a month left before the constitutionally mandated adjournment, the possibility of a special session this summer is looking more and more likely.