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SB 205

AN ACT DEDICATING A PORTION OF THE REVENUE GENERATED FROM SALES AND USE TAXES IMPOSED ON MEALS SOLD BY AN EATING ESTABLISHMENT, CATERER OR GROCERY STORE TO THE TOURISM FUND.

2026 Regular Session Introduced by Cathy Osten

Connecticut bill redirects portion of meal sales tax revenue to tourism fund, potentially increasing tourism promotion funding but reducing general budget resources.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#cateringestablishments #grocerystores #meals #restaurants #salesandusetax #tourismfund
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Bill Summary · SB 205

Legislative bill overview

SB 205 would redirect a portion of sales and use tax revenue generated from meal purchases at restaurants, caterers, and grocery stores into Connecticut's tourism fund. The bill does not specify the percentage of revenue to be dedicated, leaving those details to be determined during the legislative process.

Why is this important

Tourism funding directly supports marketing, infrastructure, and economic development in hospitality-dependent regions. Dedicating meal tax revenue to tourism creates a revenue stream tied to visitor spending patterns, potentially increasing promotional budgets during peak travel seasons when meal purchases surge.

Potential points of contention

  • Revenue allocation impact: Redirecting existing sales tax revenue reduces general fund resources available for education, infrastructure, and social services unless offset by new revenue sources
  • Regressivity concerns: Meals taxes disproportionately affect lower-income households that spend a larger percentage of income on food, making this effectively a regressive funding mechanism for tourism
  • Specification gap: The bill lacks detail on the percentage threshold, implementation timeline, and whether it applies to all meal purchases or specific categories, creating uncertainty about actual revenue impact

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

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