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Proposed Sales Tax on Deliveries
LEGISLATIVE UPDATE from CBIA
You've heard about the desire of some in the legislature to impose a sales tax on delivery services (HB-5844); now we need to act. The tax affects deliveries of parts, small packages, documents, food and other items that have not yet been identified. Mike Riley of the Motor Transportation Association of Connecticut is leading a coalition in opposition to the new tax. If you are interested in joining the coalition, please email Mike Riley at cttruck@aol.com. Mike will add you to the group.
Background information:
The bill was introduced by: Finance, Revenue and Bonding Committee
Co-sponsor Rep. Kathleen M. Tallarita, 58th Dist.
The bill imposes a separate sales tax on delivery services. The new tax applies to businesses that provide intercity or local delivery of parcels, letters, documents, or other items, such as groceries.
Under current law, any charges to the purchaser for shipping or delivery are included in the sale price, subject to the sales tax, and collected by the seller. The bill eliminates delivery charges from the taxable sales price.
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