A new proposed 6 percent sales tax on deliveries has lawmakers scratching their heads.
Sen. President Donald Williams, D-Brooklyn, and Speaker of the House James Amann, D-Milford, said the tax, passed last week by the Finance, Revenue, and Bonding Committee, was a surprise. “No one is ready to endorse or sign onto it until there’s more information,” Williams said Monday.
The tax would apply to businesses like UPS or FedEX whose main purpose is to deliver parcels, letters, documents or items like groceries. The bill would apply to businesses whose primary function is delivery—restaurants offering take-out, for example, would not fall under this tax.
The new tax would create a whopping $59.7 million in revenue, according to a joint report by the state Office of Fiscal Analysis and Office of Legislative Research.
The money raised be enough to fully fund the state PILOT program to reimburse cities for nontaxable property.
If the bill survives passage through budget season—here, “if” is emphasized—it would be a huge coup for cities like New Haven that have a lot of college and hospital property.
“The goal of the proposal is to fully fund PILOT,” Finance Chairman Rep. Cameron Staples, D-New Haven, told WTIC’s morning show Tuesday. He said if there’s a better way to find the money to do this he’d be willing to entertain a discussion.