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Bill

HB 5027

AN ACT ELIMINATING THE HIGHWAY USE TAX.

2025 Regular Session Introduced by Anne Dauphinais and 1 co-sponsor

HB 5027 eliminates Connecticut's highway use tax, reducing vehicle purchase costs but eliminating state transportation revenue without a stated replacement funding source.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · HB 5027

Legislative bill overview

HB 5027 would eliminate Connecticut's highway use tax, a tax levied on the purchase and use of motor vehicles. This is a targeted tax reduction that would remove a specific revenue source from the state's transportation and general fund financing. The bill has been referred to the Joint Committee on Finance, Revenue and Bonding for consideration.

Why is this important

Connecticut currently uses highway use tax revenue to fund transportation infrastructure, maintenance, and state operations. Eliminating this tax would reduce state revenue, potentially affecting funding for roads, bridges, and public transit unless alternative revenue sources are identified. This directly impacts both the state budget and vehicle owners' costs at the point of purchase or registration.

Potential points of contention

  • Revenue replacement: The state would lose an estimated revenue stream without an identified alternative funding mechanism to maintain current transportation infrastructure spending levels
  • Distributional impact: The tax elimination benefits vehicle purchasers but potentially shifts costs to other taxpayers or reduces public services if no replacement revenue is found
  • Transportation funding: Questions about whether eliminating this dedicated revenue source compromises Connecticut's ability to maintain and improve its highway system and public transportation

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

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