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Bill

SB 45

AN ACT CONCERNING THE HIGHER SALES AND USE TAXES RATE APPLICABLE TO CERTAIN MOTOR VEHICLES.

2026 Regular Session Introduced by Eric Berthel

Connecticut bill increases sales tax rates on specific motor vehicle categories to boost state revenue and potentially influence consumer purchasing patterns.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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WeVote Research Nonpartisan
Bill Summary · SB 45

Legislative bill overview

SB 45 proposes to increase the sales and use tax rate on certain motor vehicles in Connecticut beyond the standard state sales tax rate. The bill would create a tiered or targeted tax system where specific categories of vehicles face higher taxation. This represents a departure from Connecticut's current uniform sales tax approach for vehicle purchases.

Why is this important

Motor vehicle taxes significantly impact consumer purchasing decisions and state revenue generation. Connecticut currently collects substantial sales tax revenue from vehicle transactions, and adjusting these rates could influence which vehicles residents purchase, affect the automotive market in the state, and generate additional revenue for state programs. The structure of this tax could also shape environmental or economic outcomes depending on which vehicles are targeted.

Potential points of contention

  • Defining "certain" vehicles: The bill's language about which specific vehicles face higher rates is critical—targeting luxury vehicles, larger vehicles, or specific manufacturers could face different political resistance
  • Economic impact on dealers and consumers: Higher taxes may reduce vehicle sales, potentially harming Connecticut automotive dealers and shifting purchases to neighboring states with lower rates
  • Equity concerns: Vehicle taxes can disproportionately affect lower-income residents if not carefully structured, raising fairness questions about progressive taxation
  • Revenue clarity: Whether this generates net revenue or simply displaces purchases requires analysis, as reduced sales volume could offset higher tax rates

Compiled from official sources — confirm details with the bill’s official record.

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