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HB 5132

AN ACT EXEMPTING MACHINERY AND EQUIPMENT USED IN THE PROCESS OF COLORING OR MIXING PAINT FROM THE SALES AND USE TAXES.

2026 Regular Session Introduced by Tom O'Dea

Connecticut bill exempts paint mixing and coloring equipment from sales tax, reducing operational costs for paint manufacturers but decreasing state tax revenue.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#equipmentsalestax #machinerysalestax #paint #retailtrade #salesandusetaxexemptions
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Bill Summary · HB 5132

Legislative bill overview

HB 5132 would exempt machinery and equipment used in paint coloring and mixing processes from Connecticut's sales and use taxes. This targeted tax exemption applies specifically to the equipment involved in manufacturing or preparing paint products, not the paint itself or retail sales.

Why is this important

Paint manufacturers and retailers would see reduced capital costs when purchasing new mixing and coloring equipment, potentially lowering operational expenses. The fiscal impact on Connecticut's tax revenue depends on how many businesses qualify and the value of equipment affected, though the state would need to account for lost tax revenue from these exemptions.

Potential points of contention

  • Revenue loss: Removes sales tax revenue from equipment purchases without identified offsetting revenue sources or spending reductions
  • Scope definition: "Machinery and equipment used in the process of coloring or mixing paint" may be ambiguous—does it include ancillary equipment, quality testing devices, or only direct mixing machinery?
  • Competitive fairness: Exempting one industry's manufacturing equipment raises questions about why similar exemptions aren't extended to other manufacturers (pharmaceuticals, chemicals, food processing, etc.)

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

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