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 GOVERNOR LAMONT’S TAX PROPOSAL 

SB 877 – AN ACT CONCERNING REVENUE ITEMS TO IMPLEMENT THE GOVERNOR’S BUDGET

Governor Lamont’s proposed tax hikes include enacting the 6.35 percent sales tax on previously non-taxed items and services like:

·  Legal Services

·  Veterinary Services

·  Accounting Services

·  Engineering Services

·  Real Estate Services

·  Barber Shops

·  Nonprescription Drugs

·  Boat Repairs, Boat Storage

·  Child Car Seats

·  College Text Books

·  Bicycle Helmets

·  Vehicle trade-ins

In addition, his proposal would eliminate the sales tax free week, eliminate the exemptions on pension and social security income, increase the sales tax on boats from 2.99 percent to 6.35 percent, increase the hotel occupancy tax to 17 percent, and create a new tax on sweetened beverages at 1.5 cents per ounce.

In total, the sales tax expansions will cost Connecticut families and businesses nearly $300 million in the 2020 fiscal year and over $500 million in the 2021 fiscal year. This is in addition to hundreds of millions in other new taxes (including $163M from the new sweetened beverage tax).