HB 5490 — AN ACT CONCERNING THE SALES AND USE TAXES ON AMBULANCE-TYPE MOTOR VEHICLES AND AMBULANCES.

(I) With respect to the sale of meals, as defined in subdivision (13) of section 12-412, sold by an eating establishment, caterer or grocery store;

and spirituous, malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in connection therewith;

in addition to the tax imposed under subparagraph (A) of this subdivision, at the rate of one per cent;

(J) The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate that represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date ofthe new rate and delivery is made within ninety days after the effective date of the new rate.

For the purposes of payment of the tax imposed under this section, any retailer of services taxable under subdivision (37) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, on an accounting basis that recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered;

(K) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;

LCO No.

2336 5 of 13 Raised Bill No.5490 (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;

(iii) For calendar quarters ending on or after September 30, 2024, the commissioner shall deposit into the Tourism Fund established under section 10-395b fifty per cent of the amounts received by the state from the tax imposed under subparagraph (I) of this subdivision;

(L) (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;

[and] (ii) For calendar months commencing on or after July 1, 2023, the commissioner shall deposit into the Municipal Revenue Sharing Fund established pursuant to section 4-66p seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

[and] (M) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight 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;

LCO No.

2336 6 of 13 Raised Bill No.5490 (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;

(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;

(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-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;

and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred 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.

Sec.

4.

Subdivision (1) of section 12-411 of the 2024 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024, and applicable to sales occurring on or after July 1, 2024):

(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) LCO No.

2336 7 of 13 Raised Bill No.5490 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, [:] the rates provided in subparagraphs (B) to (I), inclusive, of this subdivision;

(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;

(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast establishment for the first period not exceeding thirty consecutive calendar days;

(C) With respect to the storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse ofsuchindividualata rateoffourandone-halfpercentofthesalesprice of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner andbearing notice totheeffect that false statementsmade in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

(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 LCO No.

2336 8 of 13 Raised Bill No.

5490 services shall be exempt from such tax;

(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;

(II) With respect to the storage, acceptance or other use of a motor for a vessel or a trailer used for transporting a vessel in this state, at the rate of two and ninety-nine-hundredths per cent;

(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;

(E) (i) With respect to the acceptance or receipt in this state of computer and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 2001, at the rate of one per cent of such services, and (ii) with respect to the acceptance or receipt in this state of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;

(F) With respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;

(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;

(H)With respect to the acceptance or receipt inthis state of(i) a motor vehicle for a sales price exceeding [fifty] seventy-five thousand dollars, LCO No.

2336 9 of 13 Raised Bill No.5490 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.

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 thousandfive hundredpounds or less that isnot used for private passenger purposes, but is designed or used to transport merchandise, freight or personsinconnectionwithany businessenterprise andissued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

(I) With respect to the acceptance or receipt in this state of meals, as defined in subdivision (13) of section 12-412, sold by an eating establishment, caterer or grocery store;

and spirituous, malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in connection therewith;

in addition to the tax imposed under subparagraph (A) of this subdivision, at the rate of one per cent;

(J) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;

(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under LCO No.

2336 10 of 13 Raised Bill No.5490 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 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;

[and] (ii) For calendar months commencing on or after July 1, 2023, the commissioner shall deposit into the Municipal Revenue Sharing Fund established pursuant to section 4-66p seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

[and] (iii) For calendar quarters ending on or after September 30, 2024, the commissioner shall deposit into the Tourism Fund established under section 10-395b fifty per cent of the amounts received by the state from the tax imposed under subparagraph (I) of this subdivision;

(L) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said Special Transportation Fund seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight 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;

(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 LCO No.

2336 11 of 13 Raised Bill No.

5490 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;

(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;

(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-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;

and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred 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.

Section 1 JulyOctober 1, 2024 12-54312-412(127) Sec.FIN Joint Favorable Subst.

2sHB5490 July/ 1,File 2024,No. and 12-412(127) applicable to sales occurring on or after July 1, 2024 Sec.

3560 July1 1,sHB5490 2024,File and 12-408(1) applicable to sales occurring on or after July 1, 2024 LCO No.

2336560 12The offollowing 13Fiscal RaisedImpact Statement and Bill No.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.

5490In Sec.general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

4Whenever Julyapplicable, 1,agency 2024,data andis 12-411(1)consulted applicableas topart salesof occurringthe onanalysis, orhowever afterfinal Julyproducts 1,do 2024not Statementnecessarily ofreflect Purpose:an assessment from any specific department.

ToOFA (1)Fiscal increaseNote theState thresholdImpact: for the imposition of the dues tax, (2) exempt ambulance-type motor vehicles and ambulances from the sales and use taxes, (3) increase the sales price threshold of motor vehicles subject to a higher sales and use taxes rate, and (4) dedicate a portion of the revenue generated from the meals tax to the Tourism Fund.

[ProposedAgency deletionsAffected areFund-Effect enclosedFY in25 brackets.$ FY 26 $ Revenue Serv., Dept.

ProposedVarious additions- areNone indicated500,000 byRevenue underline,Loss exceptNote: that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

2336Various=Various 13Municipal ofImpact: 13

None Explanation The bill results in a revenue loss of $500,000 annually beginning in FY by exempting certain ambulance-type vehicles from the sales and use tax.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

sHB5490 / File No.

560 2 sHB5490 File No.

560 OLR Bill Analysis sHB 5490 AN ACT CONCERNING THE SALES AND USE TAXES ON AMBULANCE-TYPE MOTOR VEHICLES AND AMBULANCES.

SUMMARY Starting July 1, 2025, this bill exempts from sales and use tax (1) ambulance-type vehicles used exclusively to transport medically incapacitated individuals, except those used to transport these individuals for payment, and (2) ambulances operating under a license or certificate issued by the Department of Public Health (DPH).

By law, DPH issues licenses or certificates, as applicable, to commercial, municipal, volunteer, nonprofit, and state agency ambulance services.

By law, unchanged by the bill, sales of goods and services to municipalities, state agencies, and charitable nonprofits are already exempt from sales and use tax (CGS § 12-412(1) & (8)).

EFFECTIVE DATE:

October 1, 2024 COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Substitute Yea 51 Nay 0 (04/03/2024) sHB5490 / File No.

560 3