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HB 5020

AN ACT CONCERNING THE SALES AND USE TAXES IMPOSED ON MEALS SOLD BY AN EATING ESTABLISHMENT, CATERER OR GROCERY STORE.

2026 Regular Session Introduced by Jason Buchsbaum and 1 co-sponsor

HB 5020 modifies sales tax treatment on prepared meals from restaurants, caterers, and grocery stores, affecting consumer costs and state revenue.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#cateringestablishments #grocerystores #meals #restaurants #salesandusetax
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WeVote Research Nonpartisan
Bill Summary · HB 5020

Legislative bill overview

HB 5020 would modify Connecticut's sales and use tax treatment applied to meals sold by eating establishments, caterers, and grocery stores. The bill adjusts which food sales are subject to state sales tax and at what rates, potentially expanding or narrowing the tax base for prepared foods and food service businesses.

Why is this important

Food tax policy directly affects consumer prices at restaurants and grocery stores while influencing state tax revenue. Changes to meal taxation can impact small food businesses' competitiveness, consumer affordability of dining and prepared foods, and the state's overall budget—particularly as food costs remain a household expense priority for many Connecticut residents.

Potential points of contention

  • Revenue impact: Depending on whether the bill expands or contracts the tax base, it could either reduce state revenue significantly or shift tax burden between food retailers and consumers
  • Equity concerns: Changes to prepared food taxes may disproportionately affect lower-income households that rely more heavily on grocery store prepared foods and restaurant meals
  • Business compliance: Eating establishments and caterers may face administrative complexity in determining which meals fall under new tax classifications, potentially increasing operational costs

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

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