*Requests to provide verbal testimony must be submitted by 4:00 PM on Sunday, May 2, 2021.

The Senate Finance Committee has scheduled a hearing for Monday at 5:00 pm. to take testimony concerning proposals to increase the income tax on higher earners and on sugary beverages.  
 
Members of the public can request to provide verbal testimony to the committee through the following link:VERBAL TESTIMONY   *Requests to provide verbal testimony must be submitted by 4:00 PM on Sunday, May 2, 2021.
 
Written testimony can be submitted to the committee by emailing it to: jplume@rilegislature.gov  *Written Testimony must be submitted prior to 2:00 PM on Monday, May 3, 2021, in order for it to be provided to the members of the committee at the hearing and to be included in the meeting records.
 
The following bills will be heard:
 

Senate Bill No. 326

BY Murray, McCaffrey, Goodwin, DiPalma, Felag, Cano, Euer, Lawson, Ciccone, Sosnowski

ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX {LC1426/1} (Adds one new income tax bracket for purposes of state income taxation.)

 
S.326 adds one new income tax bracket for state income taxation. The new bracket would be a rate of 8.99% over $394,500 (in 2011 dollars). Adjusted for inflation, the new tax bracket would apply to taxable income over approximately $475,000 (in 2021 dollars). This act would take effect on January 1, 2022 and would not apply retroactively.  
 

Senate Bill No. 362

BY Mack, Anderson, Acosta, Mendes, Calkin, Bell, Kallman, Murray, Burke, Valverde

ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX {LC1478/1} (Adds one new income tax bracket for purposes of state income taxation.)

 
S.362 adds one new income tax bracket . The new bracket would be a rate of 10.99% on taxable income over $400,500 (in 2011 dollars). Adjusted for inflation, the new tax bracket would apply to taxable income over approximately $475,000 (in 2020 dollars). This act would take effect on January 1, 2022.  
 

Senate Bill No. 367

BY Bell, Mendes, DiMario, Euer, Ciccone, Seveney, Burke, Miller, Kallman, Murray

ENTITLED, AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX {LC1575/1} (Increases the tax rates for individuals, bankruptcy estates, trusts and estates.) S.367 makes many changes to the income tax structure.  Taxable income between $100,000 and $250,000 increases to 7%.  Taxable income over $250,000 changes to 9.9%.  The bill also increases taxes on bankruptcy estates, trusts and estates

 
 

Senate Bill No. 327

BY Lawson, McCaffrey, Miller, Cano, Quezada, Sosnowski, DiMario, Euer, Murray, Ciccone

ENTITLED, AN ACT RELATING TO TAXATION -- SUGARY DRINKS TAX {LC2083/1} (Imposes a tax of .015 cents/per oz on the sale of bottled sugary drinks/syrups/powders from which a sugary drink may be derived with tax collected deposited into the Retail SNAP Incentive Fund effective 1/1/22.)

 
If passed, S.327 would levy a tax of 1.5 cents per ounce, starting January 1, 2022, on items such as: soda, syrups, sports drinks, energy drinks, fruit drinks, sweetened iced teas and coffees, and other products with added caloric sweetener or flavored water with added caloric sweetener.  Neither Massachusetts or Connecticut has a similar tax.  S.327 creates a new fund, called the “Retail SNAP Incentives Program.”  The purpose of the fund is to promote healthy food access and nutrition for SNAP recipients.  Recipients would receive $.50 credit on their EBT cards for each $1 spent on eligible fruits and vegetables up to a monthly limit set by the state.
 
What does the tax mean for businesses and consumers?  A 5-gallon bag in a box, used by many businesses for fountain drinks, would be taxed $57.60.  A 12-pack of canned soft drink would be taxed $2.16.  A 19oz package of lemonade powder to make 8 quarts would be taxed $3.84.  A 6-pack of ice tea (16.9 oz) would be taxed $1.44.  An 8-pack of sports drinks (20 oz) would be taxed $2.40. A 2-liter bottle of soft drink would be taxed $1.02.  This tax will hurt businesses and cost consumers money.