News release from Ganim campaign:
Bridgeport Mayor and Democratic candidate for governor Joe Ganim is calling for the use some or all of new Internet sales tax revenue to provide property tax relief for Connecticut cities and towns. A U.S. Supreme Court ruling yesterday allows states to collect sales tax from Internet companies without a brick and mortar location in that state. The ruling could mean up to $200 million dollars in new annual revenue for the state of Connecticut during difficult economic times.
“This ruling is a huge victory for Connecticut. As governor, my first budget proposal next year would include provisions for collecting Internet sales tax on all purchases made in Connecticut, and that some or all of the money collected be distributed directly to cities and towns to provide much needed property tax relief,” said Ganim.
The state Department of Revenue Services estimates that Connecticut loses between $100 million and $200 million dollars a year in unpaid sales taxes on Internet purchases. The state ordered many companies to begin collecting the taxes last year, but those firms largely ignored the order because of the federal law that only required a company to pay sales tax in a state if it has a physical location within its borders.
“This is a change that I have been seeking for years, along with mayors across the country at the U.S. Conference of Mayors. Collecting sales taxes on Internet purchases benefits the state in two ways, first by raising new revenue that can be used to provide tax relief to cities and towns, and also by helping to balance the playing field for small businesses located in Connecticut who have been forced to collect sales taxes, while large online companies based elsewhere got a free ride,” said Ganim.
property tax relief? really??
I order lots of things on line. and I pay the state sales tax on nearly all of them. the sales tax that I pay on my on-line orders just disappears into that deep black hole known as the state budget – just like the state income tax that I pay.
*** If it really cuts city property taxes, its worth a try! ***
Joe it is a state sales tax, not a city tax. Why should the people of the state pay for Bridgeport’s and Hartford’s mismanagement by you professional politicians?
Charlie-It could be used in a similar fashion as the Pequot/Mohegan Fund distribution model.
What he means is, the Sale Tax will go directly into the General Fund. I’m sure Mayor Joe Trump will roll-out some More Bullshit in in the weeks to come. Go Ned!
Wait till this special legislation is through watch how those two tribes make out with that.
Will that money go for property tax relief,or would it be use for something else
Stop with the taxes already,people can barely survive in this state as it is. I think Joe’s idea is a very interesting look into what he would do if he fools everyone again and gets elected governor. He would find ways to increase taxes in everything.# ANYONE BUT JOE
Pure nonsense from the candidate.
This is NOT a new tax, state sales tax already exists. It will merely extend the tax to more sales and increase general revenue that goes into the general fund. It is state money that should be use to lower the underfunded state pension funds, restore cuts made in previous budgets, pave roads and improve infrastructure.
It is not a pie to be divided by the municipalities and spent as they desire.
The states have been losing out on a bundle of tax revenue on Internet retail sales. “Tax relief” is a laughable concept in Connecticut but Ganim does have a point. We need the revenues for infrastructure, education, modernization, investment in renewable energy resources…