AN ACT REDUCING THE SALES AND USE TAXES RATE APPLICABLE TO CERTAIN CONSTRUCTION AND BUILDING MATERIALS.

Plain English Breakdown

The official text uses the word 'certain' but does not define exactly which materials are included.

Lowering Sales Tax on Building Materials for Housing

This bill lowers the sales and use tax rate to two percent for certain construction and building materials used to build or fix housing.

What This Bill Does

• Reduces the sales and use tax rate to two percent.
• Applies this lower rate to specific construction and building materials.
• Covers the sale, storage, use, or other consumption of these items in the state.
• Limits the tax reduction to projects for housing construction or rehabilitation.

Who It Names or Affects

• People who buy construction materials for new homes.
• People who buy building supplies to repair existing houses.
• Businesses that sell these specific materials in the state.

Terms To Know

Sales and use tax

A fee added by the government when items are sold or used within a state.

Rehabilitation

The process of fixing up, repairing, or improving an existing building.

Limits and Unknowns

• The bill does not list which specific materials qualify for the lower tax rate.
• It is unclear if this change applies to commercial buildings beyond what 'housing' implies.
• No effective date is provided in the source text.

Official Summary Text

To reduce to two per cent the sales and use taxes rate applicable to the sale of and the storage, use or other consumption in the state of construction or building materials for the construction or rehabilitation of housing.

Current Bill Text

LCO No. 488 1 of 1

General Assembly Proposed Bill No. 5063
February Session, 2026 LCO No. 488

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. SCOTT, 112th Dist.

AN ACT REDUCING THE SALES AND USE TAXES RATE
APPLICABLE TO CERTAIN CONSTRUCTION AND BUILDING
MATERIALS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 219 of the general statutes be amended to reduce to two 1
per cent the sales and use taxes rate applicable to the sale of and the 2
storage, use or other consumption in the state of construction or 3
building materials for the construction or rehabilitation of housing. 4
Statement of Purpose:
To reduce to two per cent the sales and use taxes rate applicable to the
sale of and the storage, use or other consumption in the state of
construction or building materials for the construction or rehabilitation
of housing.