Governor Ned Lamont will propose eliminating the business entity tax when he presents his two-year budget plan to the state legislature Feb. 20.

The $250 tax, assessed every two years, has irritated Connecticut business owners since it was first levied in 2002 as a budget balancing measure.

Lamont will also propose a digital service linking state agencies that offers businesses one-stop shopping in their dealings with state government.

"Over and over again I've heard the same refrain—it's not easy to do business with the state of Connecticut," Lamont said this week.

"How can we try to build and stabilize our economy if businesses don’t feel we're listening?

"These proposals will help the 17 Fortune 500 companies headquartered in Connecticut, just as they will help the start-up company, and the mom-and-pop store down the street."

Digital Experience

Lamont said his proposed Connecticut Digital Service will create a "seamless digital experience" for residents and business owners.

The service will be housed within the Department of Administrative Services and will work with all state agencies to move their interactions with businesses and residents to the cloud.

"One of the goals is to advance cost-saving changes to digital procurement to avoid purchasing overpriced, underperforming systems," Lamont said.

Eliminating the business entity tax provides some marginal relief to small businesses and allows us to focus on those tax policies that truly impair the state's competitiveness.
— CBIA's Joe Brennan
CBIA president and CEO Joe Brennan said businesses welcomed both of the governor's proposals.

"Modernizing the somewhat antiquated systems relied on by government will greatly enhance the user experience for both businesses and individuals," Brennan said.

"Connecticut should be at the forefront of technological advances that make it easier to interact with the state.

"It is also time to eliminate the business entity tax to provide some marginal relief to small businesses and allow us to move on and focus on those tax policies that truly impair the state's competitiveness."