March 11, 2016—The Connecticut Joint Committee on Finance, Revenue and Bonding held a hearing Wednesday on Senate Bill 335, which would eliminate the sales and use tax on goods used exclusively in a business process.
The bill is specifically correcting a 1999 Department of Revenue Services ruling that has allowed taxation on paint and materials at the point-of-sale to shops, followed by shops then taxing customers for the same paint and materials.
“Collision repairers in the state of Connecticut have been unfairly penalized by an interpretation of the law that allows paint and materials to be subject to double taxation. ASA-CT believes that the current law does not take into consideration the evolution of industry practices, and we think that SB 335 is a good first step toward lifting this unnecessary burden on small businesses and their customers,” said Lisa Siembab, executive director of the Automotive Service Association of Connecticut (ASA-CT).
The bill can be viewed on ASA’s legislative website.Read the article on Fender Bender