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UPDATE: A Tax Charges CT Businesses Just to Exist. This GOP Rep Wants to Change That.

March 17, 2017 By Staff
UPDATE: A Tax Charges CT Businesses Just to Exist. This GOP Rep Wants to Change That.

Rep. Laura Hoydick (R-Stratford) introduced a bill this year to repeal the business entity tax, which charges Connecticut businesses $250 just to exist.

On Friday, the Connecticut Finance, Revenue and Bonding Committee will consider House Bill No. 6372. The bill’s “statement of purpose” is just six words: “To repeal the business entity tax.” But what is the business entity tax?

It’s a $250 charge on most businesses in Connecticut (S corporations, LLCs, LLPS, and LPs) just to exist. Businesses have to pay the charge once every two years, even if they’re “inactive, unprofitable,” or not collecting any income.

The tax took over $50 million from the coffers of businesses large and small in the last two years. It has been described by other state news outlets as “hated” and “unpopular” in the past.

Since the charge is flat, it falls disproportionately hard on small businesses, or businesses trying to get off the ground in Connecticut.

UPDATE: In a statement, Rep. Hoydick said, of her bill: “The Business Entity Tax is a calling card from the state to small businesses that declares the current hostile policies Connecticut has to any business trying to get a foothold in our state.”