Connecticut Committee Considers Tax Rule

Proposed bill would prohibit double taxation on paint and other materials.

Legislation currently being considered by the Connecticut Joint Committee on Finance, Revenue and Bonding would eliminate the sales and use tax on goods used exclusively in a business process.

If passed, Senate Bill (SB) 335 would correct a 1999 Department of Revenue Services ruling that has allowed taxation on paint and materials at the point-of-sale to shops, followed by shops then taxing customers for the same paint and materials.

During a recent hearing on the bill, ASA’s executive director of the Automotive Service Association’s Connecticut affiliate, Lisa Siembab, spoke out in its favor. “Collision repairers in the state of Connecticut have been unfairly penalized by an interpretation of the law that allows paint and materials to be subject to double taxation,” Siembab said. “ASA-CT believes that the current law does not take into consideration the evolution of industry practices, and we think that SB 335 is a good first step toward lifting this unnecessary burden on small businesses and their customers.”

ASA also submitted a letter in support of the bill to the committee, describing how taxation of paint and materials is unfairly applied when shops purchase it and again when they sell it. The letter also explained that today’s auto body repair business practices, related to the purchase of paint and materials, works to the advantage of vehicle owners or consumers and the environment, i.e. purchasing and mixing what is needed.

To view the text of the legislation, go to