Connecticut’s Democratic Gov.seeks to raise revenue to combat a projected $3.7 billion budget deficit over the next two fiscal years.
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Though the state will not raise income taxes, as pushed for by a group of millionaires in the state, some wealthy residents will pay up through a raise in the so-called mansion tax.
The mansion tax is a 2.25 percent conveyance fee on homes sales above $2.5 million. The tax, however, only applies if the seller is moving out of state. Those who move to another residence within the state would get the money back a few years after the sale, in the form of an income tax credit.
Other tax provisions in the budget include an expansion of the state sales tax (6.35 percent) to cover things like interior design and laundry services, as well as parking and work safety apparel.
The state will impose a 10 percent tax on the wholesale price of e-cigarettes, a surcharge of 10 cent per single-use on plastic bags (before a complete ban), excise taxes on alcohol (excluding beer) will rise 10 percent and ride-sharing fees will increase to 30 cents per ride, from 25 cents.
The efforts to boost revenue come as the state faces the multi-billion projected deficit, as well as a massive gap in pension funding.
As previously reported by FOX Business, a number of prominent companies have left the state throughout recent years, including General Electric, Bristol Myers-Squibb and Alexion Pharmaceuticals.
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Though the state will not raise income taxes, as pushed for by a group of millionaires in the state, some wealthy residents will pay up through a raise in the so-called mansion tax.
The mansion tax is a 2.25 percent conveyance fee on homes sales above $2.5 million. The tax, however, only applies if the seller is moving out of state. Those who move to another residence within the state would get the money back a few years after the sale, in the form of an income tax credit.
Other tax provisions in the budget include an expansion of the state sales tax (6.35 percent) to cover things like interior design and laundry services, as well as parking and work safety apparel.
The state will impose a 10 percent tax on the wholesale price of e-cigarettes, a surcharge of 10 cent per single-use on plastic bags (before a complete ban), excise taxes on alcohol (excluding beer) will rise 10 percent and ride-sharing fees will increase to 30 cents per ride, from 25 cents.
The efforts to boost revenue come as the state faces the multi-billion projected deficit, as well as a massive gap in pension funding.
As previously reported by FOX Business, a number of prominent companies have left the state throughout recent years, including General Electric, Bristol Myers-Squibb and Alexion Pharmaceuticals.
