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February 28, 2003
Senator Cappiello Questions Implementation of 6% Health Club Tax
State Senator David Cappiello (R-Danbury) today expressed his concern over a new tax on health clubs included in the budget package passed by the State Senate and House of Representatives earlier this week. If signed into law by the Governor, as is expected, it will impose a 6% sales tax beginning on April 1st this year on health club services, except those provided by non profit organizations or municipalities. The Department of Revenue Services (DRS) is working with legislative leaders to determine how the tax will be implemented. Currently, DRS is under the assumption that health club patrons who pay their bills monthly will only be taxed on payments made after April 1st, while those who paid their entire membership up front prior to April 1st would not be taxed at all.

“I find it disappointing that we are investigating the particulars of the implementation after the bill was voted on in each chamber,” said Senator Cappiello. “Until we determine which payments will be taxed, we cannot even know for sure how much revenue the tax would bring in. When passing a budget that effects every single person in Connecticut, we need to be working with facts, not assumptions.”

He notes that the majority party’s continued insistence on circumventing the committee process and forgoing public hearings on matters related to the budget is a big reason for this and other questionable components included in this package.

“These unanswered questions simply reemphasize a point I have made repeatedly during this entire process. The failure to hold public hearings and committee meetings is a disservice to the citizens of Connecticut and the legislative process as a whole and more often than not results in sloppy, unclear legislation,” according to Senator Cappiello. “I serve on the Appropriations Committee and we, as well as the Finance Committee, have yet to hold a public hearing or committee meeting on this or any other matter related to the budget. I have little doubt that health club owners and patrons would have proposed these questions about the tax before the legislation passed . . . if only they were given the opportunity.”

“Analyzing legislation and asking questions on bills are a key components of the committee process and when we bypass these necessary procedures for political reasons, questions go answered and problems inevitably arise,” continued Senator Cappiello. “Moreover, I question the logic of taxing individuals who want to keep themselves healthy to begin with. Those with the personal initiative to join a gym, and thus in turn, improve the overall public health of Connecticut, should not be punished.”