Ad Tax Introduced in Connecticut

The State of Connecticut is facing a potential multi-billion budget shortfall for the current fiscal year and the new fiscal year which begins July 1st, due largely to public pension costs. House Bill 7322 would increase the state sales tax rate from 6.35% to 6.99% and impose the tax on advertising, public relations and other services. The Joint Finance Revenue and Bonding Committee held a hearing on the bill on April 25th and several local media/marketing groups testified in opposition.

We are working closely with the Connecticut Broadcasters Association and other industry groups to fight this proposal. It is likely that the ad tax threat will remain in play until June, when the General Assembly and governor agree on a new budget for next year.