Connecticut 2026 Session Status: In Committee Bipartisan · 30 D · 1 R cosponsors

SB 2 — AN ACT SUPPORTING LOCAL COMMERCE.

Last action — FILE NO. 693

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced February 04, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 42% · moderate confidence

  • In Committee

    Current position in the legislative process.

  • 33 sponsors

    33 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (30 D · 1 R) — cross-party backing.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

257 added · 71 removed

Plain-language change summary

The latest revision to Senate Bill 2 includes the addition of a reference to the General Assembly along with an acknowledgment from the Finance, Revenue and Bonding Committee indicating their support for the bill. Meanwhile, several previous references to the bill’s status have been removed, which streamlines the text. This matters because it clarifies the current progress of the bill and reinforces the committee's endorsement, suggesting it is likely to move forward in the legislative process.

→
Previous
Latest
General Assembly Committee Bill No.
Senate General Assembly File No.
2 February Session, 2026 LCO No.
693 February Session, 2026 Substitute Senate Bill No.
2737 Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by:
2 Senate, April 20, 2026 The Committee on Finance, Revenue and Bonding reported through SEN.
(FIN) AN ACT SUPPORTING LOCAL COMMERCE.
FONFARA of the 1st Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT SUPPORTING LOCAL COMMERCE.
[or] [(ii) directly] (II) Directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this [subdivision (ii)] subclause shall only be allowed with respect to a metered building, location or premise at which not less than seventy-five per cent of the gas, including bottled gas, or electricity consumed at such metered building, location or premise is used for the purpose of such production, fabrication or LCO No.
[or] [(ii) directly] (II) Directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this [subdivision (ii)] subclause shall only be allowed with respect to a metered building, location or premise sSB2 / File No.
2737 1 of 18 Committee Bill No.2 manufacturing;
693 1 sSB2 File No.
693 at which not less than seventy-five per cent of the gas, including bottled gas, or electricity consumed at such metered building, location or premise is used for the purpose of such production, fabrication or manufacturing;
(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or fromtherendering ofany servicesconstituting asaleinaccordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate, the rates provided in subparagraphs (B) to (I), inclusive, of this LCO No.
(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or fromtherendering ofany servicesconstituting asaleinaccordance with sSB2 / File No.
2737 2 of 18 Committee Bill No.2 subdivision;
693 2 sSB2 File No.
693 subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate, the rates provided in subparagraphs (B) to (I), inclusive, of this subdivision;
(E)(i)Withrespect to thesalesoflaborthatisotherwise taxableunder subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(E)(i)Withrespect to thesalesof laborthatisotherwise taxableunder subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer LCO No.
sSB2 / File No.
2737 3 of 18 Committee Bill No.2 used for transporting a vessel, at the rate of two and ninety-nine- hundredthspercent,exceptthatthesaleofavesselshallbeexemptfrom such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;
693 3 sSB2 File No.
693 (ii) With respect to the sale of a vessel, a motor for a vessel or a trailer used for transporting a vessel, at the rate of two and ninety-nine- hundredthspercent,exceptthatthesaleofavesselshallbeexemptfrom such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;
For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more LCO No.
For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more sSB2 / File No.
2737 4 of 18 Committee Bill No.2 specific type of registration by the Department of Motor Vehicles;
693 4 sSB2 File No.
693 specific type of registration by the Department of Motor Vehicles;
(ii) For calendar quarters ending on or after September 30, 2018, the LCO No.
(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under sSB2 / File No.
2737 5 of 18 Committee Bill No.2 commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;
693 5 sSB2 File No.
693 section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;
(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventeen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor LCO No.
(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventeen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
2737 6 of 18 Committee Bill No.2 vehicle;
sSB2 / File No.
(iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 twenty-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
693 6 sSB2 File No.
693 (iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 twenty-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;
(1) (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchasedfromanyretailerforstorage,acceptance,consumptionorany LCO No.
(1) (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchasedfromanyretailerforstorage,acceptance,consumptionorany other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in sSB2 / File No.
2737 7 of 18 Committee Bill No.2 other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either withinor without thisstate, for storage, acceptance, consumptionor any other use by such person in this state, to be measured by the sales price of materials, at the rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate:
693 7 sSB2 File No.
693 this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either withinor without thisstate, for storage, acceptance, consumptionor any other use by such person in this state, to be measured by the sales price of materials, at the rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate:
(D) (i) With respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or LCO No.
(D) (i) With respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance servicesonvesselsoccurring onandafter July 1,1999,such services shall be exempt from such tax;
2737 8 of 18 Committee Bill No.
(ii) (I) With respect to the storage, acceptance or other use of a vessel sSB2 / File No.
2 maintenance servicesonvesselsoccurring onandafter July 1,1999,such services shall be exempt from such tax;
693 8 sSB2 File No.
(ii) (I) With respect to the storage, acceptance or other use of a vessel in this state, at the rate of two and ninety-nine-hundredths per cent, except that such storage, acceptance or other use shall be exempt from such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;
693 in this state, at the rate of two and ninety-nine-hundredths per cent, except that such storage, acceptance or other use shall be exempt from such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;
(III)Withrespecttothestorage,acceptanceorotheruseofdyeddiesel fuel, as defined in subsection (d) of section 12-487, exclusively for marine purposes, at the rate of two and ninety-nine-hundredths per cent;
(III)Withrespecttothestorage,acceptanceorotheruseof dyeddiesel fuel, as defined in subsection (d) of section 12-487, exclusively for marine purposes, at the rate of two and ninety-nine-hundredths per cent;
(H)With respect to the acceptance or receipt inthis state of(i) a motor LCO No.
(H)With respect to the acceptance or receipt inthis state of(i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales sSB2 / File No.
2737 9 of 18 Committee Bill No.2 vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.
693 9 sSB2 File No.
693 price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.
LCO No.
(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;
2737 10 of 18 Committee Bill No.2 (ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;
(K) (i) For calendar months commencing on or after July 1, 2021, but sSB2 / File No.
(K) (i) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2023, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l sevenand nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023;
693 10 sSB2 File No.
693 prior to July 1, 2023, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l sevenand nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023;
Show all 181 changed rows (141 more)
Previous
Latest
(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventeen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or LCO No.
(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventeen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;
2737 11 of 18 Committee Bill No.2 receipt in this state of a motor vehicle;
(iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 twenty-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or sSB2 / File No.
(iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 twenty-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;
693 11 sSB2 File No.
693 receipt in this state of a motor vehicle;
Moneys in the account shallbeexpendedby theCommissioner ofRevenue Services for the purpose of distributing funds to municipalities in accordance with LCO No.
Moneys in the account shallbeexpendedby theCommissioner ofRevenue Services for the purpose of distributing funds to municipalities in accordance with the provisions of this section.
2737 12 of 18 Committee Bill No.2 the provisions of this section.
(c) Commencing in the calendar quarter ending March 31, 2027, and in each calendar quarter thereafter, the commissioner shall distribute moneys from the account to each municipality where the revenue from the tax imposed under subparagraph (I) of subdivision (1) of section 12- 408 of the general statutes, as amended by this act, and subparagraph (I) of subdivision (1) of section 12-411 of the general statutes, as amended by this act, was generated, as determined by the commissioner.
sSB2 / File No.
Any moneys for which the commissioner cannot determine a point-of-sale shall be distributed pro rata to the municipalities that reported sales of meals, as defined in subdivision (13) of section 12-412 of the general statutes, in the return filed under chapter 219 of the general statutes for the applicable calendar quarter.
693 12 sSB2 File No.
693 (c) Commencing in the calendar quarter ending March 31, 2027, and in each calendar quarter thereafter, the commissioner shall distribute moneys from the account to each municipality where the revenue from the tax imposed under subparagraph (I) of subdivision (1) of section 12- 408 of the general statutes, as amended by this act, and subparagraph (I) of subdivision (1) of section 12-411 of the general statutes, as amended by this act, was generated, as determined by the commissioner.
Any moneys for which the commissioner cannot determine a point-of-sale shall be distributed pro rata to the municipalities for which sales of meals, as defined in subdivision (13) of section 12-412 of the general statutes, were reported in the returns filed under chapter 219 of the general statutes for the applicable calendar quarter.
(b)Forcalendarquarterscommencingonorafter October1,2026,any retailer described in subsection (a) of this section with sales of meals, as defined in subdivision (13) of section 12-412, where meals are not the LCO No.
(b)ForcalendarquarterscommencingonorafterOctober1,2026,any retailer described in subsection (a) of this section with sales of meals, as defined in subdivision (13) of section 12-412, where meals are not the only items sold by such retailer, shall list the sales of meals separately in the return such retailer files under this chapter and disaggregate the information, if applicable, as set forth in subsection (a) of this section.
2737 13 of 18 Committee Bill No.2 only items sold by such retailer, shall list the sales of meals separately in the return such retailer files under this chapter and disaggregate the information, if applicable, as set forth in subsection (a) of this section.
(1) Two appointed by the speaker of the House of Representatives;
sSB2 / File No.
693 13 sSB2 File No.
693 (1) Two appointed by the speaker of the House of Representatives;
LCO No.
(11)Arepresentativeofachamberofcommerceinthestate,whoshall be appointed by the Governor;
2737 14 of 18 Committee Bill No.2 (11)Arepresentativeofachamberofcommerceinthestate,whoshall be appointed by the Governor;
(c) The members of the commission shall each have current or past involvement in organizations that promote Indian affairs or are interested in the well-being of trade relations between the state and India.
(c) The members of the commission shall each have current or past involvement in organizations that promote Indian affairs or are interested in the well-being of trade relations between the state and sSB2 / File No.
693 14 sSB2 File No.
693 India.
(f) The speaker of the House of Representatives and the president pro LCO No.
(f) The speaker of the House of Representatives and the president pro tempore of the Senate shall select the chairpersons of the commission from among the members of the commission.
2737 15 of 18 Committee Bill No.
2 tempore of the Senate shall select the chairpersons of the commission from among the members of the commission.
Any vacancy occurring other than by expiration of term shall be filled for the balance of the unexpired term.
Any vacancy occurring other than by expiration of term shall be filled for the sSB2 / File No.
693 15 sSB2 File No.
693 balance of the unexpired term.
LCO No.
(l) The commission shall meet as often as deemed necessary by the chairpersons or a majority of the commission.
2737 16 of 18 Committee Bill No.
2 (l) The commission shall meet as often as deemed necessary by the chairpersons or a majority of the commission.
(m) Not later than February 1, 2028, and annually thereafter, the commission shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the Governor, the Commissioner of Economic and Community Development and the joint standing committee of the General Assembly having cognizance of matters relating to commerce on the activities of the commission during the preceding year, which shall include, but need not be limited to, any recommendations for policy changes and amendments to the general statutes necessary to effectuate the purposes of the commission.
(m) Not later than February 1, 2028, and annually thereafter, the commission shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the Governor, the Commissioner of Economic and Community Development and the joint standing committee of the General Assembly having cognizance of matters relating to commerce on the activities of the commission during the sSB2 / File No.
693 16 sSB2 File No.
693 preceding year, which shall include, but need not be limited to, any recommendations for policy changes and amendments to the general statutes necessary to effectuate the purposes of the commission.
5 October 1, 2026 12-408d from passage Sec.
5 October 1, 2026 12-408d Sec.
6 New section Statement of Purpose:
6 from passage New section FIN Joint Favorable Subst.
To (1) exempt from the sales and use taxes gas and electricity used by certain commercial and industrial businesses, (2) dedicate fifty per cent LCO No.
sSB2 / File No.
2737 17 of 18 Committee Bill No.
693 17 sSB2 File No.
2 of the additional one per cent sales and use taxes imposed on meals sold by eating establishments, caterers or grocery stores to the Tourism Fund and fifty per cent to the municipality in which such revenue was generated, and (3) establish a Connecticut-India Trade Commission.
693 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
[Proposed deletions are enclosed in brackets.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Proposed additions are indicated by underline, except underlined.]e entire text of a bill or resolution or a section of a bill or resolution is new, it is not Co-Sponsors:
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
SEN.
OFA Fiscal Note State Impact:
LOONEY, 11th Dist.;
Agency Affected Fund-Effect FY 27 $ FY 28 $ Department of Revenue Services Various - 17.4 million 23.8 million Revenue Loss Resources of the General Fund GF - Revenue 89 million 121.6 Loss million Resources of the Tourism Fund Tourism - 44.5 million 60.8 million Revenue Gain Department of Revenue Services Various - 44.5 million 60.8 million Revenue Gain Legislative Mgmt.
SEN.
GF - Potential Minimal Minimal Cost Note:
DUFF, 25th Dist.
Various=Various;
SEN.
GF=General Fund;
ANWAR, 3rd Dist.;
Tourism=Tourism Fund Municipal Impact:
SEN.
None Explanation The bill results in the following impacts noted below.
CABRERA, 17th Dist.
Section 1 results in an annualized revenue loss to the state of $17.4 million and $23.8 million in FY 28 by exempting the sale of gas and electricity to small businesses from the sales and use tax.
SEN.
1 Sections 2 – 5 result in a revenue loss to the General Fund of $89 million in FY 27 and $121.6 million in FY 28 and annually thereafter by diverting 50% of collections of the additional 1% meals tax to the Tourism Fund and the municipal revenue diversification fund, 1By statue, 0.5 percentage points of the 6.35% rate (or 7.87% of collections) is deposited into the Special Transportation Fund and Municipal Revenue Sharing Fund each.
COHEN, 12th Dist.;
The remaining 5.35 percentage points (or 84.25% of collections) is deposited into the General Fund.
SEN.
sSB2 / File No.
FLEXER, 29th Dist.
693 18 sSB2 File No.
SEN.
693 established under the bill.
GADKAR-WILCOX, 22nd Dist.;
The bill also results in a corresponding revenue gain of $44.5 million in FY 27 and $60.8 million in FY 28 and annually thereafter each to the (1) Tourism Fund and (2) municipal revenue diversification account.
SEN.
Section 4 also results in a revenue gain to municipalities by requiring the Department of Revenue Services to distribute the funds from the municipal revenue diversification account to municipalities as outlined under the bill.
GASTON, 23rd Dist.
Section 6 establishes a Connecticut-India Trade Commission resulting in a potential minimal cost to the Office of Legislative Management.
SEN.
The bill specifies that commission members serve without compensation but can be reimbursed for necessary expenses resulting in a potential cost to the extent reimbursements occur.
HARTLEY, 15th Dist.;
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
SEN.
sSB2 / File No.
HOCHADEL, 13th Dist.
693 19 sSB2 File No.
SEN.
693 OLR Bill Analysis sSB 2 AN ACT SUPPORTING LOCAL COMMERCE.
HONIG, 8th Dist.;
SUMMARY This bill generally does the following:
SEN.
1.
KUSHNER, 24th Dist.
creates a sales and use tax exemption for gas and electricity used by a commercial or industrial business with gross income of $10 million or less for the prior income or tax year (§ 1);
SEN.
2.
LESSER, 9th Dist.;
dedicates, starting October 1, 2026, half of the additional 1% tax on meals and beverages to the Tourism Fund and the other half to a municipal diversification account that the bill creates for redistributing the tax revenue to the municipalities where the sales were generated (§§ 2-5);
SEN.
and 3.
LOPES, 6th Dist.
establishes a 23-member Connecticut-India Trade Commission within the Legislative Department to, among other things, advance bilateral trade and investment (§ 6).
SEN.
The bill also makes technical and conforming changes.
MAHER, 26th Dist.;
EFFECTIVE DATE:
SEN.
October 1, 2026, and, for the sales and use tax changes, applicable to sales occurring on or after that date, except the Connecticut-India Trade Commission is effective upon passage.
MARONEY, 14th Dist.
§ 1 — NEW SALES AND USE TAX EXEMPTION FOR BUSINESSES The bill’s sales and use tax exemption for the above qualifying businesses specifically applies to the sale, furnishing, or service of gas and electricity when delivered to consumers through mains, lines, pipes, or bottles for use.
SEN.
This exemption is in addition to separate existing ones that exempt this gas and electricity (1) in residential dwellings and (2) if used directly in premises where at least 75% of the gas or electricity is used (a) for agricultural production, (b) in the sSB2 / File No.
MARX, 20th Dist.;
693 20 sSB2 File No.
SEN.
693 making of a finished product for sale, or (c) in an industrial manufacturing plant.
MCCRORY, 2nd Dist.
By law, the second existing exemption extends to manufacturer permittees for (1) beer;
SEN.
(2) a farm winery;
MILLER P., 27th Dist.;
and (3) wine, cider, and mead (CGS § 12-412m).
SEN.
§§ 2-5 — MEALS AND BEVERAGES TAX DIVERSION TO TOURISM FUND AND MUNICIPAL DIVERSIFICATION ACCOUNT Existing law imposes an additional 1% tax on meals and certain beveragesthat appliesontopofthe6.35%salesanduse tax rate.Starting October 1, 2026, the bill directs 50% of the revenue from this 1% tax to the Tourism Fund and the other 50% to a municipal diversification account the bill creates.
NEEDLEMAN, 33rd Dist.
(Under current law, the Tourism Fund receives 10% of room occupancy tax revenue.) Under the bill, the “municipal diversification account” is a separate, non-lapsing account that must contain any money required by law to be deposited into it, including the above tax revenue.
SEN.
The Department of Revenue Services (DRS) commissioner must use the account’s funds for making distributionsto municipalitiesaccording to thebill’sprovisions.
OSTEN, 19th Dist.;
Towards making these distributions, the bill requires, starting October 1, 2026, certain retailers to provide disaggregated meal and beverage tax sales data in their quarterly sales tax returns.
SEN.
Specifically, the bill requires this of retailers with sales in more than one town in Connecticut and who sell other items in addition to meals and beverages.
RAHMAN, 4th Dist.
Under the bill, their returns must indicate the (1) town where each taxable sale occurred and (2) amount of sales tax they collected in eachtown.ThebillrelatedlyrequirestheDRScommissionertomaintain an accounting aggregated by municipality of the tax revenue deposited into the municipal diversification account.
SEN.
Beginning in the first quarter of 2027, the DRS commissioner must quarterly distribute money from the municipal diversification account to each municipality where the revenue from the tax was generated, as he determines.
SLAP, 5th Dist.
Any money for which he cannot determine a point of sale must be distributed proportionally to the municipalities where the meal and beverage sales were reported during the applicable quarter.
S.B.
sSB2 / File No.
2 LCO No.
693 21 sSB2 File No.
2737 18 of 18
693 § 6 — CONNECTICUT-INDIA TRADE COMMISSION The bill establishes a Connecticut-India Trade Commission within the Legislative Department to do the following between Connecticut and India:
1.
advance bilateral trade and investment, 2.
initiate joint action on policy issues of mutual interest, 3.
promote business and academic exchanges, 4.
encourage mutual economic support and infrastructure investment, and 5.
address other issues the commission determines.
To carry out its duties, the bill also authorizes the commission to (1) get necessary help and data from any executive department, board, commission, or agency of the state;
(2) perform necessary and appropriate acts;
and (3) accept gifts, donations, or bequests.
The bill requires the commission, starting by February 1, 2028, to annually report to the governor, Department of Economic and Community Development, and Commerce Committee on its activities during the prior year.
At a minimum, the report must include recommendations for policy and legislative changes needed to carry out its duties.
Members Under the bill, the commission consists of the following 23 appointed members:
1.
two members each appointed by the six top legislative leaders;
2.
two Commerce Committee members, one each appointed by the committee chairpersons;
3.
two Commerce Committee ranking members, or their designees;
sSB2 / File No.
693 22 sSB2 File No.
693 4.
three members appointed by the governor;
5.
one representative of a Connecticut public college or university, appointed by the governor;
6.
oneConnecticut chamber ofcommerce representative, appointed by the governor;
and 7.
two representatives ofIndian or Indian-American communities in the state from different political parties, appointed by the governor.
Under the bill, commission members must be (1) currently or formerly involved in organizations promoting Indian affairs or (2) interested in trade relations between Connecticut and India.
Appointments The bill requires appointing authorities to make their initial appointments by October 1, 2026, and fill any vacancies.
Vacancies occurring other than by term expiration must be filled for the remainder of the unexpired term.
All members, except those appointed by the governor, may be legislators.
Terms Under the bill, members generally serve four-year terms, until their successors are appointed, except as follows:
1.
initial gubernatorial and House majority and minority leader appointments end on September 30, 2029;
2.
initial House speaker, Senate president pro tempore, and Senate majorityandminorityleaderappointmentsendonSeptember30, 2030;
and 3.
initial and subsequent Commerce Committee chairperson appointments end with the appointing committee chairperson’s term.
sSB2 / File No.
693 23 sSB2 File No.
693 Under the bill, members serve without compensation but are reimbursed, within available funds, for necessary expenses incurred performing their duties.
Leadership and Meetings The bill requires the House speaker and Senate president pro tempore to select the commission’s chairpersons from among its members.
The chairpersons must schedule and hold the commission’s first meeting by November 1, 2026.
Underthebill,thecommissionmust meetasoftenasthechairpersons or a majority of the members deem necessary.
Members who miss three consecutive meetings or 50% of the meetings in a calendar year are deemed to have resigned.
A majority of members is a quorum for conducting business.
The bill requires the Commerce Committee’s administrative staff to serve in this capacity for the commission.
BACKGROUND Related Bills sSB 132 (File 70), § 2, as amended by Senate “A,” favorably reported by the Commerce Committee and passed as amended by the Senate, creates a similar Connecticut-India Trade Commission.
sSB 133 (File 71), favorably reported by the Commerce Committee, creates a similar Connecticut-India Trade Commission.
sHB 5443, §§ 1 & 2, favorably reported by the Finance, Revenue and Bonding Committee, directs 50% of the additional 1% sales and use tax on meals and beverages to the Tourism Fund.
COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Substitute Yea 50 Nay 3 (04/01/2026) sSB2 / File No.
693 24
⬇ Download PDF
View plain text versions (4)

Action History

  1. FILE NO. 693

  2. SENATE CALENDAR NUMBER 424

  3. FAV. RPT., TAB. FOR CAL., SEN.

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/20/26

  6. FILED WITH LCO

  7. Joint Favorable Substitute

  8. PUBLIC HEARING 0327

  9. REF. TO JOINT COMM. ON Finance, Revenue and Bonding

  10. DRAFTED BY COMMITTEE

  11. Vote to Draft

  12. REF. TO JOINT COMM. ON Finance, Revenue and Bonding

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

33 sponsors · 0 co-sponsors · 154 not signed on

Sponsors (33)

Co-sponsors (0)

None.

Not signed on (154)

154 members have not signed on to this bill.

Show all 154 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation transportation agriculture
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 2?
SB 2 is sponsored by Morrin Bello, Tom Delnicki (Republican), Raghib Allie-Brennan (Democratic), Farley Santos (Democratic), Anthony L. Nolan (Democratic), Michael D. Quinn (Democratic), Kerry S. Wood (Democratic), Julio A. Concepcion, Travis Simms (Democratic), Rebecca Martinez (Democratic), Derek Slap (Democratic), MD Rahman (Democratic), Catherine A. Osten (Democratic), Norman Needleman (Democratic), Patricia Billie Miller (Democratic), Douglas McCrory (Democratic), Martha Marx (Democratic), James J. Maroney (Democratic), Ceci Maher (Democratic), Rick Lopes (Democratic), Matthew L. Lesser (Democratic), Julie Kushner (Democratic), Paul Honig (Democratic), Jan Hochadel (Democratic), Joan V. Hartley (Democratic), Herron Gaston (Democratic), Sujata Gadkar-Wilcox (Democratic), Mae Flexer (Democratic), Christine Cohen (Democratic), Jorge Cabrera (Democratic), Saud Anwar (Democratic), Bob Duff (Democratic), and Martin M. Looney (Democratic).
What is the current status of SB 2?
This bill is in committee in the Senate. Introduced February 04, 2026. It must pass committee before a floor vote.
Where can I track SB 2?
Track SB 2 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 2

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 2

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →