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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.”
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