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.”
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“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.”
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“[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.”
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The full article can be found at CBS New York. The Associated Press contributed to this report.Related articles