OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
AN ACT CONCERNING EXPENDITURES AND REVENUE FOR THE BIENNIUM ENDING JUNE 30, 2015.
LCO No.: 8679
House Calendar No.: 678
Senate Calendar No.: 692
OFA Fiscal Note
The amendment lowers the general sales and use tax rate from 6.35% to 6.0% upon the passage of the federal Marketplace Fairness Act (“the Act”).1 This results in a potential revenue loss due to the lowering of the sales tax rate; however, the increase in sales tax collections resulting from the Act would offset much of the sales tax revenue loss.
For illustrative purposes, assuming Connecticut enacts the Act on July 1, 2015, the revenue loss from lowering the tax rate is estimated to be approximately $160 million in FY 15. The estimated state revenue gain resulting from the Act is approximately $155 million in FY 15. The net impact would therefore be a revenue loss of under $5 million in FY 15.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
1 The Marketplace Fairness Act would allow states to require online and other out-of-state retailers to collect sales and use tax.