AN ACT CONCERNING THE SALES PRICE THRESHOLD OF MOTOR VEHICLES SUBJECT TO A HIGHER SALES AND USE TAXES RATE.

HB 5540 raises the sales price threshold for motor vehicles subject to a 7.75% sales and use tax rate to over $100,000. This means vehicles priced at $100,000 or below will now pay a lower tax rate, while only the most expensive vehicles will qualify for the higher rate. The bill directly affects buyers of luxury new vehicles that previously fell under the higher tax bracket. It modifies the tax structure by expanding the price range eligible for the standard tax rate.