Connecticut Increases Cigarette Taxes

Connecticut increases cigarette taxes in the Connecticut biennium budget bill. Tobacco products, and property tax changes also are included in the Connecticut biennium budget bill. Gov. Dannel Malloy vetoed hospital supplemental tax appropriations.

In addition, the bill authorizes a Fresh Start” tax amnesty program.

Cigarette Taxes

Cigarette tax changes effective December 1, 2017, include:

  • an increase from $3.90 to $4.35 per pack; and
  • a reduction by 50% of the cigarette tax on modified risk tobacco products.

Tobacco Products Tax Changes

Also effective December 1, 2017, the tax on snuff tobacco products is increased from $1 to $3 per ounce. However, tobacco products tax is reduced by 50% on modified risk tobacco products, which results in the tax being reduced $3 to $1.50 per ounce for snuff tobacco and from 50% to 25% of wholesale price for other tobacco products.

Property Tax Changes

Eligible property owners may qualify for a property tax assessment freeze during first seven years after an approved property’s brownfield revitalization. In addition, a procedure is established to enable local tax assessors to receive information about motor vehicles registered in other states in order to add the vehicles to a municipality’s grand list.

Hospital Supplemental Payments

The governor has also vetoed fiscal years 2018 and 2019 Hospital Supplemental Payment appropriations. He believes the provider tax on hospitals and ambulatory surgical centers violates federal law and will result in the state paying supplemental payments when it is unlikely to ever collect provider tax revenue.

S.B. 1502, Laws 2017, effective October 31, 2017 unless noted; Veto message, Office of Governor Dannel Malloy, October 31, 2017

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All stories by: CCHTaxGroup