Car wash owners in Connecticut are trying to figure out how to begin charging a sales tax when they only accept payments from customers in 25-cent increments. The new sales tax was imposed by state lawmakers July 1.
“None of them have the capability of accepting a sales tax. And there is nothing that’s invented that has the capability of collecting the sales tax on the coins and the dollars,” Todd Whitehouse, a former president of the Connecticut Carwash Association and owner of Connecticut Carwash, told the Hartford Courant.
For now, business owners say they will either pay the taxes out of pocket or raise prices for customers. That’s a move many say they are reluctant to take. The 6.35-percent tax increase could translate to 25 cents or 50 cents a wash for customers, if car wash owners raise their prices to compensate. “Fifty cents difference wouldn’t prompt me to go out and wash the car in the driveway,” one resident told the Courant. “But it might for some people.”