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HB5292 / File No. 136 1
General Assembly File No. 136
February Session, 2026 House Bill No. 5292
House of Representatives, March 24, 2026
The Committee on Veterans' and Military Affairs reported
through REP. FOSTER of the 57th Dist., Chairperson of the
Committee on the part of the House, that the bill ought to pass.
AN ACT EXEMPTING CERTAIN SALES TO MILITARY AND
VETERANS-RELATED ORGANIZATIONS FROM THE SALES AND
USE TAXES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (8) of section 12-412 of the 2026 supplement to 1
the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective October 1, 2026, and applicable to sales occurring on or after 3
October 1, 2026): 4
(8) Sales of tangible personal property or services to any organization 5
that is exempt from federal income tax under Section 501(a) of the 6
Internal Revenue Code of 1986, or any subsequent corresponding 7
internal revenue code of the United States, as from time to time 8
amended, and that the United States Treasury Department has 9
expressly determined, by letter, to be an organization that is described 10
in Section 501(c)(3), [or] (13) or (19) of said internal revenue code. At the 11
time of the sale that is exempt under this subsection, the organization 12
shall, in order to qualify for said exemption, do one of the following: (A) 13
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Present to the retailer (i) a copy of the United States Treasury 14
Department determination letter that was issued to such organization 15
and (ii) a certificate, in such form as the commissioner may prescribe, 16
certifying that a United States Treasury Department determination 17
letter has been issued to such organization and has not been revoked 18
and that the tangible personal property or services that are being 19
purchased from the retailer by such organization are to be used or 20
consumed exclusively for the purposes for which such organization was 21
established or (B) present to the retailer (i) a copy of the exemption 22
permit that was issued pursuant to this subsection by the commissioner 23
to such organization before July 1, 1995, after a determination of 24
eligibility by the commissioner and (ii) a certificate, in such form as the 25
commissioner may prescribe, certifying that an exemption permit was 26
issued pursuant to this subsection by the commissioner to such 27
organization before July 1, 1995, and was not revoked and that the 28
tangible personal property or services that are being purchased from the 29
retailer by such organization are to be used or consumed exclusively for 30
the purposes for which the organization was established. The 31
organization shall be liable for the tax otherwise imposed if such 32
tangible personal property or services are not used or consumed 33
exclusively for the purposes for which the organization was established. 34
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2026, and
applicable to sales
occurring on or after
October 1, 2026
12-412(8)
VA Joint Favorable
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HB5292 / File No. 136 3
The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Revenue Serv., Dept. Various -
Revenue Loss
750,000 1 million
Note: Various=Various
Municipal Impact: None
Explanation
The bill results in a revenue loss of $750,000 in FY 27 and $1 million
annually thereafter to the stat e by exempting the sales of tangible
personal property or services to certain federally tax-exempt veterans'
organizations. It is estimated that there are approximately 250 veterans'
organizations in the state that would qualify for this exemption.
By fund, the annualized revenue loss is anticipated to be $840,000 to
the General Fund and $80,000 each to the Special Transportation Fund
and the Municipal Revenue Sharing Fund.1
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
1 By statute, 0.5 percentage points of the 6.35% rate (or 7.87% of collections) is deposited
into the Special Transportation Fund and Municipal Revenue Sharing Fund each. The
remaining 5.35 percentage points (or 84.25% of collections) is deposited into the
General Fund.
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OLR Bill Analysis
HB 5292
AN ACT EXEMPTING CERTAIN SALES TO MILITARY AND
VETERANS-RELATED ORGANIZATIONS FROM THE SALES AND
USE TAXES.
SUMMARY
This bill exempts sales of tangible personal property or services to
federally tax-exempt veterans’ organizations (i.e. 501(c)(19)) from the state
sales and use tax, under specified conditions. State law already exempts
nonprofit organizations (i.e. 501(c)(3)) and nonprofit cemetery companies
(i.e. 501(c)(13)) and crematoria from this tax.
As under existing law for these other nonprofits, in order for the sale to
be exempt, the organization must give the retailer (1) a copy of the U.S.
Treasury Department determination letter issued to the organization
and ( 2) a certificate, as the revenue services commissioner requires,
certifying that the (a) determination letter was issued to the organization
and has not been revoked and (b) tangible personal property or services
being purchased will only be used or consumed for the organization’s
established purposes.
EFFECTIVE DATE: October 1, 2026, and applicable to sales occurring
on or after that date.
COMMITTEE ACTION
Veterans' and Military Affairs Committee
Joint Favorable
Yea 22 Nay 0 (03/10/2026)