Connecticut's Senate Bill 1447, introduced on March 6, 2025, aims to reshape the state's tax landscape by imposing a sales and use tax on peer-to-peer car sharing services and establishing a new fee on retail deliveries. This legislation seeks to address the growing popularity of car-sharing platforms while also generating revenue for the state.

The bill proposes a nine and thirty-five-hundredths percent sales tax on car rentals lasting thirty days or less, a move that aligns with similar taxation on traditional rental services. Additionally, it introduces a fee for each retail delivery made within Connecticut, a response to the surge in online shopping and home deliveries that have become increasingly common in recent years.

One of the more controversial aspects of Senate Bill 1447 is its provision to repeal the requirement for legislative approval for the Department of Transportation to study a mileage-based user fee. This change has sparked debate among lawmakers and constituents, with some arguing that it could lead to unfair taxation on drivers while others see it as a necessary step towards modernizing transportation funding.

Supporters of the bill argue that the new taxes and fees are essential for maintaining state infrastructure and services, particularly as the demand for car-sharing and delivery services continues to rise. They believe that these measures will help level the playing field between traditional rental companies and emerging platforms, ensuring that all businesses contribute fairly to state revenues.

Opponents, however, express concerns about the potential financial burden on consumers and small businesses, particularly in a post-pandemic economy where many are still recovering. They argue that additional taxes could deter the growth of the gig economy and hinder the affordability of services that many residents rely on.

As the bill moves through the legislative process, its implications could be significant for Connecticut's economy and transportation policies. Experts suggest that if passed, it may set a precedent for how states approach taxation in the evolving landscape of shared and digital services. The bill is set to take effect on July 1, 2025, with certain provisions rolling out later in the year, marking a pivotal moment for both consumers and businesses in the state.