Sales tax expanded
The 6.35% sales tax expanded to new goods and services, including parking, dry cleaning and laundry, interior design and safety apparel. Included as part of the two-year budget adopted by Lamont and lawmakers in June, the new taxes are estimated to bring in $25 million the first full year they are collected. Lamont had sought to expand the sales tax in a far broader fashion but was rebuffed by lawmakers.
Business entity tax eliminated
The $250 business entity tax, collected every two years from all companies that do business in Connecticut, will be eliminated. The measure was also included in the two-year budget. Getting rid of the tax will cost the state about $44 million in revenue in the upcoming fiscal year.
Fewer trips to DMV
Connecticut drivers will be able to make fewer trips to the DMV with an extension of the time between renewals for driver’s licenses and motor vehicle registrations. The six years between license renewals will expand to eight, and the two years between registration renewals will expand to three. The accompanying fees will increase proportionately.
New fee for boaters
Boaters in Connecticut will pay a new annual fee that will go toward eradicating aquatic invasive species in the state’s lakes, rivers and ponds. The fee will be $5 for in-state vessels and $20 for out-of-state vessels and will be required to be paid whenever a boat’s registration is renewed. The state expects to raise about $500,000 a year from the new fee.