Connecticut General Assembly proposes transportation fund fee on peer-to-peer car sharing

On March 6, 2025, the Connecticut State Legislature introduced Senate Bill 1447, aimed at enhancing revenue sources for the Special Transportation Fund. The bill proposes to subject peer-to-peer car sharing services to the state's sales and use tax and to establish a fee on each retail delivery made within Connecticut.

The primary objective of Senate Bill 1447 is to address funding challenges faced by the Special Transportation Fund, which supports transportation infrastructure and services across the state. By imposing a sales tax on peer-to-peer car sharing, the bill seeks to tap into the growing market of shared mobility services, which have gained popularity in recent years. Additionally, the proposed fee on retail deliveries aims to generate further revenue as online shopping continues to rise.

During discussions surrounding the bill, legislators debated the potential economic implications of taxing peer-to-peer car sharing. Proponents argue that the measure could provide a much-needed financial boost to the Special Transportation Fund, which has faced budgetary constraints. They emphasize that as more residents utilize car-sharing services, it is only fair that these services contribute to the infrastructure they rely on.

Opponents, however, raised concerns about the potential impact on consumers and small businesses. Critics argue that imposing additional taxes and fees could deter users from utilizing car-sharing services and increase costs for consumers, particularly in a state where the cost of living is already high. Some small business advocates expressed worries that the delivery fee could disproportionately affect local retailers competing with larger online platforms.

The bill is set to take effect on July 1, 2025, and will apply to sales occurring on or after that date. If passed, Senate Bill 1447 could significantly alter the landscape of transportation funding in Connecticut, potentially leading to increased investments in infrastructure and services. However, the ongoing debates highlight the delicate balance lawmakers must strike between generating revenue and ensuring affordability for residents.

As the legislative process unfolds, stakeholders from various sectors will be closely monitoring the bill's progress, with implications that could resonate throughout Connecticut's economy and transportation systems for years to come.