Connecticut Grocery, Meals Tax Increase Lacks Clarity
Gov. Lamont calls for a review of interpretation before the Oct. 1 tax increase goes into effect.
Sep 23, 2019
HARTFORD, Conn.—On October 1, a sales tax increase will go into effect for certain foods and drinks at grocery stores and restaurants in Connecticut. But Connecticut Gov. Ned Lamont is calling for a review of the interpretation of the law, reports NBC Connecticut.
The sales tax is set to rise 1% on October 1, which would raise the tax to 7.35%.
It’s a divided issue. Republicans say that the tax will target a high number of items, like salad, macaroni salad and soup (which are in 8-ounce or smaller containers) along with rotisserie chickens, as well as rolls and bagels in quantities of five or less. They say that the tax targets items that are considered groceries—things that should be tax-free.
On the other side of the aisle, Democrats say the tax increase is to close a multibillion-dollar deficit. Democratic Senate leaders said that the Department of Revenue Services misrepresented the law and sent a letter to change the interpretation of the application of the law to items that would be part of meals.
The Connecticut Food Association released a statement, saying the initial law was broader than grocers expected. “It is our understanding that Department of Revenue Services is reworking their guidance and that its initial plan was broader than any of us in the grocery community had anticipated. In its current form this tax places additional hardship on seniors, single folks and those with limited funds. It also handicaps smaller independent grocery stores that don’t sell a large quantity of bulk items like big box retailers."
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