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A Complete List of New Taxes

Posted on May 2, 2019 by Greg MacKinnon


Friends and neighbors:

It’s of utmost importance that you understand the magnitude of new and increased taxes proposed yesterday by the Legislature’s Finance Committee and approved along partisan lines by the ruling party.

While we have fought off the taxing of professional services and continue to battle to protect taxpayers from what would be the nation’s costliest tolling scheme, income tax surcharges for excessive, costly mandates and a property tax bailout of a state-run, mismanaged, underfunded retirement fund, there is still much work to do.

My colleagues and I will be fighting to mitigate as much possible of what could be the largest tax increase in Connecticut history.

There’s no question Connecticut needs to get going on fixing our structural problems but, by prioritizing and working efficiently, we can accomplish great progress without economy smashing, unaffordable revenue increases that will do more harm than good.

The list of the taxes passed by Finance and those from the governor’s office are as follows:

  • A new 2% Tax on Capital Gains
  • Property Tax Credit – Removed Scheduled Expansion
  • Tax for Rideshare
  • Increase in Sales Tax on Meals
  • 10% Tax Increase on Alcohol
  • Increase Tax rate on Movies 6% to 6.35%
  • Eliminate 5 year, $500 credit for STEM college graduates
  • Tax interior design services
  • Tax dry-cleaning and laundry services, incl. coin-operated
  • Tax parking
  • Tax on digital downloads from 1.0% to standard 6.35% rate
  • Tax Safety apparel
  • Maintain current 10% business surcharge set to expire in tax year 2019
  • Tax E-Cigarettes liquid at 75% wholesale
  • Increase Minimum Markup on Cigarettes
  • Increased Sales due to Ecig Excise
  • Maintain Hospital User Fee at FY 2019 level of $900 million
  • Implement recommendation of ambulatory surgical center tax study
  • Surcharge on Plastic Bags of 10 cents
  • Increase annual filing fee for LLC’s and LLP’s from $20 to $100
  • Eliminate increased exemption for social security income
  • Eliminate exemption for pension and annuity income
  • Eliminate the sales tax free week
  • Tax legal services
  • Tax on accounting services
  • Tax on architectural services
  • Tax on engineering services
  • Tax on real estate activities and agents/brokers
  • Tax on veterinary services
  • Tax on barber shops and beauty salons
  • Tax on massage therapists and electrology services
  • Tax on sports/recreation instruction and industries
  • Tax on horse boarding and training
  • Tax on travel arrangement and scenic transportation
  • Tax on services to buildings and dwellings
  • Tax on waste collection
  • Tax on Renovation and repair of residential property
  • Tax on Repair or maintenance of vessels
  • Tax on Winter boat storage
  • Tax on Increase tax on boats from 2.99% to standard 6.35% rate
  • Tax Increase hotel occupancy tax from 15% to 17%
  • Tax on Trade-ins for vehicles
  • Tax on Non-prescription drugs
  • Tax on Text books, college & professional schools
  • Tax on Newspapers and magazines
  • Tax on Connecticut credit unions
  • Tax on Campground rentals
  • Tax on Bicycle helmets
  • Tax on child car seats
  • Tax on vegetable seeds
  • A new 25 cent deposit on wine and liquor glass bottles
  • A new Add 5 cent bottle deposit to nips
  • A new tax on payroll to fund state-run Family Medical Leave