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New Laws – And New Taxes – Taking Effect January 1st

Report by Paula Antolini, January 1, 2020, 10:34AM EDT

With the start of 2020, multiple new laws and new taxes go into effect starting January 1, 2020.

The new taxes, which Senate Republicans strongly opposed and voted against, include taxes on the following:

  • Dry Cleaning – Expands the state sales tax to include dry cleaning services & laundry services
  • Parking – Expands the state sales tax to parking fees
  • Interior Design Service – Expands the sales tax to interior design services
  • Safety Apparel – Safety apparel will no longer be tax exempt. The sales tax will be applied to all safety apparel defined as clothing or equipment that is designed to protect an employee from bodily harm. This means new taxes on items such as safety goggles, hard hats, bullet-proof vests, reflective vests, safety belts and harnesses for fall prevention, protective gloves flame resistant clothing, life preservers, etc.

These four new taxes follow a long list of new and increased taxes implemented throughout 2019 including the plastic bag tax, the prepared foods tax, the digital downloads and streaming services tax, increased business filing fees, increased alcohol tax, increased motor vehicle trade in fee, and increased ridesharing tax. Senate Republicans opposed all these tax increases.

In addition to new taxes, many new laws are also taking effect January 1st

You can view the full list of new laws going into effect here. Below are a few important policies taking effect Jan. 1st that Senate Republicans supported and advocated for:

An Act Concerning Prescription Drug Costs (Public Act No. 18-41)
This new law will promote greater transparency when it comes to prescription drug pricing to help us more effectively work toward solutions to lower the costs of prescriptions drugs. The new law implements greater reporting requirements on pharmacy benefits managers, health carriers, pharmaceutical manufacturers and others so we can better understand what factors are driving up costs in Connecticut. Click to view the full Summary.

An Act Concerning Mental Health and Substance Use Disorder Benefits (Public Act No. 19-159)
The new law will increase access to treatment for mental health issues and substance abuse by making CT a leader in mental health parity. View full Summary.

An Act Concerning Alzheimer’s Disease and Dementia Training and Best Practices (Public Act No. 19-159)
This law expands training for Alzheimer’s disease diagnosis and treatment. View Summary.

An Act Expanding Required Health Insurance Coverage for Hearing Aids (Public Act No. 19-133)
This law expands health insurance coverage for hearing aids. View Summary.

An Act Expanding Required Health Insurance Coverage for Preexisting Conditions (Public Act No. 19-134)
This act prohibits short-term health insurance from limiting or excluding coverage for preexisting conditions. View Summary.

You can view the full list of new laws going into effect here.

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