Connecticut Governor Proposes Sales Tax Increase

Sales tax, use tax, and provider tax increases are included in Connecticut Gov. Dannel P. Malloy’s recent budget proposal. The budget proposal provides for:

  • an increase in the sales and use tax rate to 6.5% (currently, 6.35%);
  • raising the sales and use tax rate on restaurants to 7% (currently, 6.35%); and
  • the revision of the provider tax (i.e., hospital user fee, a health-care related tax) and an increase in the tax rate.

Although the state’s 2018 fiscal year started 10 weeks ago, the General Assembly has not reached consensus on the spending cuts and revenue measures needed to pass a budget, according to the proposal.

As the state does not have an enacted budget, it has been operating under executive order since July.

Press Release, Office of Connecticut Gov. Dannel P. Malloy, September 8, 2017

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