HB 5081 would create a new 4% personal income tax rate on earnings above $1 million annually for high-income earners. The revenue generated from this tax would be dedicated exclusively to funding education, higher education, child care services, and repairs for roads, bridges, and public transportation. This bill directly affects individuals with taxable income exceeding $1 million, as it imposes an additional tax rate on that portion of their income. The policy change shifts how state revenue from this specific tax bracket is allocated, requiring it to support these designated public services rather than general state funds.
SB 207 would exempt overtime pay from personal income tax, directly affecting employees who earn overtime wages. The bill amends tax law to remove the amount earned through overtime work from taxable income calculations. This means workers would pay no state income tax on earnings from hours worked beyond their regular schedule. The policy change simplifies tax treatment for overtime income without altering the tax rate for regular wages.
HB 5020 eliminates a 1% additional sales and use tax on meals sold by restaurants, caterers, and grocery stores. The bill amends tax code to remove this specific tax rate, directly affecting businesses that sell prepared food. Key provision: the tax change applies to all meals sold by these establishments, regardless of whether they're dine-in, takeout, or delivered. This policy change simplifies the tax structure for these businesses without altering other tax rates.
SB 44 increases the income thresholds for taxpayers to claim the full deduction of Social Security benefits from their state personal income tax. Specifically, it raises the limit to under $100,000 for unmarried individuals and those filing separately, and under $150,000 for heads of households and married couples filing jointly. This change directly affects state taxpayers who receive Social Security benefits and file income tax returns. The bill modifies the existing deduction rules by expanding the income range where the full benefit is applied, without altering the deduction amount itself. It does not change the tax rate or eligibility for the deduction, only the income level at which the full deduction applies.
HB 5024 eliminates a 1% sales tax on meals sold by restaurants, caterers, and grocery stores in Connecticut. The bill amends state law to remove this additional tax from the standard sales tax rate applied to qualifying food purchases. This change directly affects businesses operating as eating establishments, caterers, or grocery stores that sell prepared meals. The legislation aims to reduce the tax burden on these specific food service providers by removing the separate 1% surcharge. The bill is currently under review by the Finance, Revenue and Bonding Committee.
SB 45 adjusts sales tax rules for certain vehicles by raising the price threshold for the higher tax rate from $75,000 to over $75,000. It also removes the higher tax rate entirely for commercial vehicles (like delivery trucks or company vans). This change directly affects buyers of expensive personal vehicles (over $75,000) and commercial fleet operators. The bill modifies Chapter 219 of the general statutes to implement these tax adjustments. It does not change tax rates for standard vehicles below the new threshold.
This bill removes sales tax on clothing under $100, school supplies, and appliances, and eliminates a 1% tax on meals sold by grocery stores. It creates new tax credits for homeowners (increasing the existing credit), caregivers of elderly or disabled family members, and renters earning $75,000 or less for primary residence costs. These changes directly lower tax burdens for Connecticut residents, particularly lower- and middle-income households. The bill modifies sales tax rules and expands income tax credits to improve affordability.
SB 61 creates a voluntary payroll tax that employers may choose to pay, paired with a personal income tax credit for eligible employees. Employers who opt to participate in this program would pay the tax, and their qualifying employees would receive a corresponding tax credit on their state income tax returns. The bill specifically targets certain employees of participating employers, though it does not detail eligibility criteria in the provided text. This establishes a direct financial benefit for employees through the tax credit mechanism, contingent on employer participation.
HB 5116 would reduce the state's sales and use tax rate from its current level to 6% by amending Chapter 219 of the general statutes. This change would directly affect all consumers purchasing taxable goods and services, as well as businesses collecting and remitting these taxes. The bill's key provision is the specific rate reduction to 6%, replacing the existing tax rate in the law. This is a straightforward policy change to lower the tax burden for everyday transactions.
HB 5059 creates a 6% tax credit against personal income tax for pass-through entities (such as S-corporations, partnerships, and sole proprietorships) that incur research and development expenses. The credit directly applies to business owners who pay personal income tax, reducing their tax liability by 6% of qualifying R&D costs. Key provisions require businesses to pay or incur eligible R&D expenses during a taxable year to claim the credit. This policy change lowers the tax burden for small businesses and entrepreneurs investing in innovation, without altering tax rates or creating new regulations.
