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CT Proposal Would Hike Digital Downloads Tax

A proposal to increase revenues offers a digital downloads tax, bringing the total on these products to 6.35 percent, commensurate with CT sales tax

HARTFORD, Conn. (CBSNewYork) –

“A provision in a legislative package that has emerged would have the 1 percent tax on these products rise to 6.35 percent, the amount of Connecticut’s sales tax.

Rep. Patricia Widlitz, D-Guilford, co-chair of the Finance Revenue and Bonding Committee, included the provision in the committee’s tax package in an attempt to make brick-and-mortar retailers more competitive.

“As our way of doing business changes, our tax structure has to look to the future as well and change with that,” she said.”

“Supporters of the tax hike say it would generate $40 million in badly needed revenue over the next two years.

Proponents see sales tax expansion as a way to help fill Connecticut’s projected two-year, $2.5 billion budget deficit. The proposal would generate $20.5 million next fiscal year, which starts July 1, and $22.1 million the following year, the legislature’s nonpartisan Office of Fiscal Analysis estimated.”

“[Connecticut Technology Council] President and CEO Matthew Nemerson said the council accepts that the Internet cannot maintain what in many cases amounts to an exemption from state and local taxes.”

The full article can be found at CBS New York.  The Associated Press contributed to this report.

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