Owners of car washes in Connecticut are hoping that their local lawmakers will be receptive to their pleas to remove a sales tax affecting their businesses. The Hartford Courant reports that car wash owners asked the state legislature’s finance committee on Friday to repeal the sales tax on their services. As one owner put it, that tax has a direct impact on their businesses.
“Our industry is a discretionary purchase within a price-sensitive market,” said Todd Whitehouse, owner of Connecticut Car Wash, which owns and operates four locations in central Connecticut.
The tax first came to be in the early 1990s. Whitehouse said that the tax was only collected for about four years before it was repealed. The decision was made then because it wasn’t working the way it was expected to. The tax didn’t bring in the revenue legislators had hoped for and it had become expensive to track and collect, according to the Hartford Courant.
But the tax was later reinstated in 2015. Whitehouse believes the same problems are coming up again for the owners of car washes and for lawmakers. He outlined these concerns in written testimony to the legislature. The committee will decide whether to repeal the tax at a later date. In the meantime, the owners of coin-operated washes said they face an even bigger burden with the tax.
“The sales tax on the coin-operated car wash industry has created an extraordinary burden on many small family-run businesses throughout the state,” PaulFerruolo said in written testimony. “This is due to the fact that we are forced to pay a sales tax when we have no mechanism to collect it.”