Connecticut SB 2: AN ACT CONCERNING ATTORNEY DEBT COLLECTION PRACTICES.

Bill Text

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General Assembly Substitute Bill No. 2
February Session, 2026

AN ACT SUPPORTING LOCAL COMMERCE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subdivision (3) 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the general statutes is repealed and the following is substituted in lieu 2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
(3) (A) (i) The sale, furnishing or service of gas, including bottled gas, 5
and electricity when delivered to consumers through mains, lines, pipes 6
or bottles for use: 7
[(i) in] (I) In any residential dwelling; [or] 8
[(ii) directly] (II) Directly in agricultural production, fabrication of a 9
finished product to be sold or an industrial manufacturing plant, 10
provided the exemption under this [subdivision (ii)] subclause shall 11
only be allowed with respect to a metered building, location or premise 12
at which not less than seventy-five per cent of the gas, including bottled 13
gas, or electricity consumed at such metered building, location or 14
premise is used for the purpose of such production, fabrication or 15
manufacturing; or 16
(III) By a commercial or industrial business that has gross income for 17

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the previous income or taxable year that does not exceed ten million 18
dollars. 19
(ii) Bottled gas as used in this subsection means L.P. (propane) gas. 20
(B) The sale or furnishing of telephone service and community 21
antenna television and cable service, provided the exemption for 22
services described in this subparagraph shall not be applicable to any 23
such service rendered on or after January 1, 1990. 24
(C) The sale, furnishing or service of water, steam and telegraph 25
when delivered to consumers through mains, lines, pipes or bottles. 26
(D) The sale or furnishing of electricity, not subject to the exemption 27
under subparagraph (A) of this subsection, with respect to that portion 28
of the charges applicable to such electricity for any month of service 29
which is not in excess of one hundred fifty dollars. 30
(E) The sale, furnishing or service of gas, water, steam or electricity 31
for use directly in the furnishing of gas, water, steam or electricity 32
delivered to consumers through mains, lines or pipes. 33
Sec. 2. Subdivision (1) of section 12-408 of the general statutes is 34
repealed and the following is substituted in lieu thereof (Effective October 35
1, 2026, and applicable to sales occurring on or after October 1, 2026): 36
(1) (A) For the privilege of making any sales, as defined in 37
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 38
for a consideration, a tax is hereby imposed on all retailers at the rate of 39
six and thirty-five-hundredths per cent of the gross receipts of any 40
retailer from the sale of all tangible personal property sold at retail or 41
from the rendering of any services constituting a sale in accordance with 42
subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 43
rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 44
subdivision; 45
(B) (i) At a rate of fifteen per cent with respect to each transfer of 46
occupancy, from the total amount of rent received by a hotel or lodging 47

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house for the first period not exceeding thirty consecutive calendar 48
days; 49
(ii) At a rate of eleven per cent with respect to each transfer of 50
occupancy, from the total amount of rent received by a bed and 51
breakfast establishment for the first period not exceeding thirty 52
consecutive calendar days; 53
(C) With respect to the sale of a motor vehicle to any individual who 54
is a member of the armed forces of the United States and is on full-time 55
active duty in Connecticut and who is considered, under 50 [App] USC 56
App 574, a resident of another state, or to any such individual and the 57
spouse thereof, at a rate of four and one-half per cent of the gross 58
receipts of any retailer from such sales, provided such retailer requires 59
and maintains a declaration by such individual, prescribed as to form 60
by the commissioner and bearing notice to the effect that false 61
statements made in such declaration are punishable, or other evidence, 62
satisfactory to the commissioner, concerning the purchaser's state of 63
residence under 50 [App] USC App 574; 64
(D) (i) With respect to the sales of computer and data processing 65
services occurring on or after July 1, 2001, at the rate of one per cent, and 66
(ii) with respect to sales of Internet access services, on and after July 1, 67
2001, such services shall be exempt from such tax; 68
(E) (i) With respect to the sales of labor that is otherwise taxable under 69
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 70
12-407 on existing vessels and repair or maintenance services on vessels 71