On its deadline to raise bills for this session, the General Assembly’s Transportation Committee advanced an important concept to help retailers and manufacturers in Connecticut compete with businesses in other states.
HB 5462 would eliminate Connecticut’s sales tax on the charge to deliver goods purchased by a customer.
Connecticut is one of the few states that charges sales tax not only on the product or service but also on the cost to get the product to the purchaser. Shipping, delivery, and fuel surcharges are all subject to the Connecticut sales tax.
According to several national surveys, Connecticut already ranks among the highest-cost states in which to do business, putting us at a competitive disadvantage with neighboring states.
Charging additional sales tax on the delivery of products sold by retailers and manufacturers only exacerbates the problem.
Although it is an uphill battle to eliminate a tax in a short legislative session, the business community applauds the Transportation Committee’s willingness to examine methods to help make Connecticut businesses more competitive in national and international markets.
It’s one step forward in a long-term effort to change perceptions and demonstrate that Connecticut is a location of choice for business.