Business Forum Spotlighted New Laws Affecting Employers

MADISON, CT — In an effort to provide the local business community with information about recent legislation that affects employers, state Representatives Noreen Kokoruda (R-101) and Vincent Candelora (R-86) co-hosted a forum on Oct. 1 that coincided with a number of new tax and fee increases that went into effect the same day.

The goal, the House Republican legislators said in a press release, was to share updates on 2019 legislative session policies "that carry significant impact on businesses in a state that has struggled to regain its legs after the dramatic economic downturn a decade ago."

For his part, Candelora, an employer himself, said he’s "never walked away from a legislative session feeling more overwhelmed by proposals and new policy targeting businesses."

Among the new policies that affect businesses are a hike in some filing fees, changes to the pass-through entity tax, an increase to the minimum wage, and a new mandatory paid family leave program—the latter a policy Kokoruda said will likely require revisions.

“Each year that I have been in the legislature, I have tried to get some sort of Paid FMLA bill passed,” Kokoruda said.

“This is a popular issue, but I think we are going to need to make some revisions in order to keep this program that the Democrat’s implemented solvent. I did not see any small business owners cheering from the stands when this passed at the Capitol. One day, I hope I do.”

Businesses aside, among the tax increases that went into effect October 1st are:

Digital Goods – The current tax on digital goods of 1% will increase to 6.35%. This increase applies to a wide range of online services, including, but not limited to, TV streaming services (e.g. Netflix, Hulu), online music (e.g. Spotify, Apple Music), eBooks, and in-app purchases made on smartphones.

Prepared Foods – Consumers will see a 7.35% levy on certain prepared foods. The only way to protect consumers from being impacted by this regressive tax is to call a special session and remove the part of the law that taxes groceries. Republicans have petitioned and are awaiting a response from the Speaker of the House.

Motor Vehicle Trade-In Fee – The current motor vehicle trade-in fee of $35 will increase to $100. Instead of being rewarded for trading in their older vehicles for new, more efficient ones, car buyers will now be double-dipped by a sales tax at purchase and a trade-in tax at sale or trade.

Alcohol – The excise tax on all alcohol sales, except beer, will increase by 10%. This significant increase will be felt by package stores small and large, as well as consumers looking to make alcohol purchases for family gatherings and events.