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Bill

SB 72

AN ACT ELIMINATING STATE TAXES OR FEES FOR WHICH COLLECTION COSTS EXCEED THE REVENUE RECEIVED.

2026 Regular Session Introduced by Mark Anderson and 2 co-sponsors

Connecticut bill eliminates state taxes and fees when administrative collection costs exceed revenue generated, streamlining inefficient revenue mechanisms.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · SB 72

Legislative bill overview

SB 72 would eliminate any state taxes or fees where the administrative cost of collection exceeds the revenue generated. The bill appears designed to identify and remove inefficient revenue-raising mechanisms that cost Connecticut more to administer than they bring in.

Why is this important

State governments often maintain taxes and fees that persist for historical reasons even when they become economically inefficient. This bill addresses a legitimate fiscal concern: eliminating collection mechanisms that drain resources could theoretically improve state finances and reduce administrative burden. However, the practical implementation would be complex and the actual fiscal impact depends heavily on which taxes/fees qualify.

Potential points of contention

  • Definition and calculation disputes: Determining which taxes "cost more to collect than they generate" requires subjective accounting decisions about what counts as collection costs, making the bill's application contentious and potentially subject to legal challenge.
  • Revenue predictability concerns: Automatic elimination of revenue sources removes legislative control over tax policy and could create budgeting instability if previously ignored low-revenue taxes suddenly disappear without deliberate budget adjustments.
  • Equity and fairness questions: Some lower-revenue taxes may serve regulatory or behavioral purposes rather than primarily generating income (e.g., taxes on specific harmful goods), and removing them based purely on collection-cost efficiency ignores these policy objectives.

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

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