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Local lawmaker calls for temporary reduction of state sales tax rate

Connecticut Senate Republicans are calling on the state legislature to temporarily reduce the state sales tax rate to provide relief to families being crushed by surging inflation.

Senate Minority Leader Kevin Kelly, whose district includes Monroe, says Connecticut’s state budget is benefiting from inflation as the state sales tax and gas tax brings in new, unplanned for revenue – a result of surging prices. Meanwhile, he says residents are struggling to balance their own family budgets with no relief in sight as inflation drives up the costs of everything, from food to energy to home heating oil.

Senate Republicans are proposing to reduce the sales tax from 6-point-35 percent to 5-point-99 percent and eliminate the additional 1 percent meals tax from February 15 through the end of calendar year 2022.  The state budget remains whole even with this tax reduction. The state budget is in surplus and is already directing a record amount of excess revenue to pay down on the state's pension debt, a policy adopted in the 2017 bipartisan budget.

The proposal will result is a temporary tax reduction totaling $315.1 million ($132.3 million in FY 22 and $182.8 million in FY 23) during the difficult months ahead.