Connecticut Democrats to raise taxes on these items

Connecticut’s Democratic Gov. Ned Lamont and state Democrats recently came to agreement on a two-year $43 billion budget plan, which is riddled with a number of new or expanded taxes as the state seeks to raise revenue to combat a large projected budget deficit.

Lamont hopes the policies would close a projected budget deficit of about $3.7 billion over the next two fiscal years, though the state will not raise income taxes.

The state also faces massive gap in pension funding.

Here’s a look at what’s included:

Sales tax expansion

The state sales tax rate of 6.35 percent would be expanded to cover a number of new items, including interior design and laundry services, as well as work safety apparel and parking.

Meanwhile, state lawmakers are working on a separate proposal to raise the sales tax to 6.85 percent.

Mansion tax: Tax on homes above $2.5 million will increase to 2.25 percent from 1.25 percent

E-cigarettes: 10 percent tax on wholesale price of e-cigarette products

Plastic bag: Surcharge of 10 cents per single-use, complete ban in 2021

Prepared meals: New one percent tax on top of normal sales tax (so 7.35 percent, overall)

Alcohol: Excise taxes on alcohol (excluding beer) will rise 10 percent

Vehicle trade-in fee: Will rise to $100, from $35

Ride-sharing: Fees will increase to 30 cents per ride from 25 cents

Sales tax on digital downloads: Raise to 6.35 percent from 1 percent

STEM graduate tax credit: $500 credit will be repealed

As previously reported by FOX Business, a number of prominent companies have left the state throughout recent years, including General Electric and Alexion Pharmaceuticals. Aetna also had plans to relocate, but committed to staying longer after being acquired by CVS.

Lamont noted that the state is still home to 17 Fortune 500 companies.


Individuals are moving out, too. As previously reported by FOX Business, of the moves conducted within Connecticut last year, 62 percent were outbound – the third highest of any state. Those with incomes of $100,000 or higher made up the largest share of exoduses.

According to a 2018 Tax Foundation analysis, Connecticut collected the second most in per capita state and local individual income taxes.