Urgent Sales Tax Update!!!!!!!
Dear Connecticut Carwashers and Vendors,
Gov. Dannel Malloy’s budget plan calls for more than $1 billion dollars in tax hikes – including a new sales tax on carwash services!!! Unless we act immediately, as carwash owners and vendors, this tax (6.25 percent) will become reality.
The impact of this tax on your business could be devastating. Please go to our website, wewashctcars.com, TODAY, to consult our list of state senators and representatives. Find the one in your market(s) and call them. Also on our website are “talking points” you can use when you explain to your senator or representative how detrimental this tax will be on your business.
We have already begun to participate in the Governor’s town hall meetings and plan to hit them all to get our message out. We also have posted on our website a petition form you can use at your wash to gather customer signatures of support. We also welcome any thoughts or comments you have on this effort.
Check the website daily for the most up-to-date information on our grassroots effort. Together we can fight this tax, but only if everyone participates!
Please call the office if you have any questions at 800/287-6604.
Todd Whitehouse, CCA President
Your questions, comments and suggestions are welcome.
DRAFT TALKING POINTS FOR
GOV MALLOY TOWN HALL EVENTS
Good Evening Gov. Malloy. My name is _______________________ and I own/run the __________________ car wash here in __________________ on ____________________
Thank you for coming to ____________________ tonight to hear from many of the small businesses in our community.
I want you to know that we all understand we are in a very tough time and we all have to do our part to help our state get out of the problems we are in.
I’m here to ask you to not tax car washes in our state. We are local family owned Connecticut businesses who employ Connecticut workers and provide a discretionary service to Connecticut motorists. Simply put a new 6.25% tax on car washes will hurt our industry and cause the loss of jobs.
A tax on car washes was put in for a brief 3 year period in 1989, but it was found to be so unworkable, cost too much to track and collect and ended up not raising the revenue they thought it would that it was repealed very quickly.
We have many different types of modern equipment that will make it hard have this work fairly. We have Full Service Car Wash Tunnels with employees, Coin-Operated Automatic Car washes and Self-Service Coin-Operated Equipment as well.
How will we collect 6.25 cents on a $1 coin operated vacuum machine? The automatic collection equipment used car washes cannot be programmed to function in increments of pennies, nickels, dimes
In addition, we hold many charity washes here in _______________ at my wash for local community groups. Will I have to charge them the sales tax? Also, Will you also then collect the tax on charity car washes held at town halls, schools, churches, McDonalds?
Finally, I want to let you know that we provide an important jobs function in our local and state economy that will be dramatically impacted by a new tax.
Car washes employ thousands of unskilled entry-level workers and provide a solid paycheck for them and their families. What happens when we have to lay them off and they go on unemployment? Does that save the state any money?
Thank you again for coming to _______________________ tonight. We would respectfully request that you consider not imposing the new tax on car washes and would like to work with you to help make Connecticut a better place to work and live.
Thank you.
P.J. Cimini, Esq. ?Capitol Strategies Group, LLC ?The Webster Memorial Building ?36 Trumbull Street ?Hartford, CT 06103-2404 ?860-293-2581 (office) ?860-983-4142 (cell) ?860-527-3701 (fax) ?pj@csgct.com
NEW CAR WASH SALES TAX QUESTIONS
WHICH TYPE OF CAR WASHES DO YOU INTEND TO TAX?
There are many different types of equipment. Are you intending to tax all of the following:
• Full Service Car Wash Tunnels with employees?
• Coin-Operated Automatic Car washes?
• Gas Station Car Washes?
• Self-Service Coin-Operated Equipment? (ie: Vacuums, etc)
CHARITY WASHES
Car Washes hold hundreds of charity washes for local non-profits and charities.
• Will you require them to charge the sales tax on these charity washes?
• Will the charity be responsible for paying the sales tax?
• Will you also collect the tax on charity car washes held at town halls, schools, churches, McDonalds?
• Will those charity washes be required to be in environmental compliance like commercial washes are?
THE ABILITY TO COLLECT
The automatic collection equipment used car washes cannot be programmed to function in increments of pennies, nickels, dimes
• How do you expect these members to collect the sales tax on these coin operated machine that can only accept in 25 cent increments?
AMOUNT
The revenue estimate you have provided the Committee is $4 million. It’s my understanding that this is a very high estimate.
• Can you explain how you arrived at that figure?
JOBS
Car washes employ thousands of entry-level workers and provide a solid paycheck for them and their families.
• Did you do any cost/benefit analysis about the financial impact if these workers are laid off because of this new tax and their going on unemployment?
