AN ACT CONCERNING THE SALES PRICE THRESHOLD OF MOTOR VEHICLES SUBJECT TO A HIGHER SALES AND USE TAXES RATE.

Plain English Breakdown

The source states the threshold will be indexed but does not define the frequency of adjustment or the specific inflation metric to be used.

Raising the Price Limit for Higher Car Sales Tax

This bill raises the car price limit that triggers a higher sales tax rate and adjusts that limit based on inflation.

What This Bill Does

• Increases the sales price threshold to more than $65,000 for vehicles subject to the 7.75% sales and use tax rate.
• Adjusts this price threshold to reflect the rate of inflation.

Who It Names or Affects

• People who buy or sell motor vehicles priced above the new threshold

Terms To Know

Sales price threshold

The specific dollar amount a vehicle must cost before the higher tax rate applies.

Index to inflation

Adjusting a number so it reflects changes in prices across the economy.

Limits and Unknowns

• The bill does not state the exact new dollar amount, only that it will be more than $65,000.
• The text does not specify how often the inflation adjustment happens or which agency calculates it.

Official Summary Text

To (1) increase to more than sixty-five thousand dollars the sales price threshold for a motor vehicle subject to the seven and three-fourths per cent sales and use taxes rate, and (2) index the sales price to reflect the rate of inflation.

Current Bill Text

LCO No. 314 1 of 1

General Assembly Proposed Bill No. 57
February Session, 2026 LCO No. 314

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. SOMERS, 18th Dist.

AN ACT CONCERNING THE SALES PRICE THRESHOLD OF MOTOR
VEHICLES SUBJECT TO A HIGHER SALES AND USE TAXES RATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 219 of the general statutes be amended to (1) increase to 1
more than sixty -five thousand dollars the sales price threshold for a 2
motor vehicle subject to the seven and three -fourths per cent sales and 3
use taxes rate, and (2) index the sales price to reflect the rate of inflation. 4
Statement of Purpose:
To (1) increase to more than sixty -five thousand dollars the sales price
threshold for a motor vehicle subject to the seven and three-fourths per
cent sales and use taxes rate, and (2) index the sales price to reflect the
rate of inflation.