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HB 5063

AN ACT REDUCING THE SALES AND USE TAXES RATE APPLICABLE TO CERTAIN CONSTRUCTION AND BUILDING MATERIALS.

2026 Regular Session Introduced by Tony Scott

Connecticut bill reduces sales tax on specific construction and building materials to lower project costs and potentially stimulate the construction sector.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#buildingmaterials #housingdevelopment #salesandusetax
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Bill Summary · HB 5063

Legislative bill overview

HB 5063 proposes to reduce the sales and use tax rate on specific construction and building materials in Connecticut. The bill targets designated materials used in construction projects, lowering the tax burden on these items compared to the standard state sales tax rate. This represents a selective tax reduction rather than a broad across-the-board decrease.

Why is this important

Construction material costs significantly impact both residential and commercial building projects, affecting housing affordability and business expansion costs. A tax reduction on these materials could lower overall project expenses, potentially spurring construction activity and economic development. Conversely, reduced tax revenue could affect state funding for public services unless offset by budget adjustments or revenue from other sources.

Potential points of contention

  • Definition and scope: Which specific materials qualify for the reduced rate, and whether the list is appropriately targeted or too broad/narrow
  • Revenue impact: The state budget implications of reduced tax collection and whether this represents sound fiscal policy during current economic conditions
  • Fairness and equity: Whether selective tax breaks for construction materials benefit certain industries or economic classes disproportionately, or create market distortions
  • Administrative burden: Implementation costs for businesses and the Department of Revenue Services to track and process different tax rates

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

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