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HB 5406

AN ACT ELIMINATING THE HIGHWAY USE TAX.

2025 Regular Session Introduced by Anne Dauphinais and 2 co-sponsors

Bill eliminates Connecticut's highway use tax on vehicle purchases, cutting state revenue with no replacement funding mechanism specified for transportation programs.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#highways #salesandusetax
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Bill Summary · HB 5406

Legislative bill overview

HB 5406 proposes to eliminate Connecticut's highway use tax, a state tax applied to the purchase and use of motor vehicles. The bill would remove this revenue source entirely rather than replacing it with alternative funding. This is a straightforward tax elimination measure with no proposed offset mechanisms mentioned.

Why is this important

Connecticut's highway use tax generates substantial state revenue used for transportation infrastructure, maintenance, and related programs. Eliminating it without replacement would create a significant budget gap that would either require cuts to transportation spending, increases in other taxes, or reallocation from other state services. This directly affects both state finances and transportation infrastructure quality.

Potential points of contention

  • Revenue impact: The loss of highway use tax revenue would reduce state funding available for road maintenance, bridge repairs, and transportation projects without a stated replacement funding source
  • Equity concerns: Motor vehicle owners would benefit while other taxpayers would potentially bear increased burden through other taxes or reduced services
  • Infrastructure funding: Connecticut's aging transportation infrastructure relies partly on this revenue; elimination could accelerate deterioration or require emergency measures to maintain roads and bridges
  • Feasibility questions: Sponsors would need to address how transportation programs currently funded by this tax would be maintained or what would be cut

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

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