AN ACT EXEMPTING CERTAIN PRODUCTS PURCHASED BY BUSINESSES FROM THE SALES AND USE TAX.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

That chapter 219 of the general statutes be amended to exempt from the sales and use tax products purchased by businesses when such products are (1) subject to such tax when resold to consumers by such businesses, or (2) used or included in a consumer good, as defined in section 42-261 of the general statutes, that is subject to such tax when sold to consumers by such businesses.

Statement of Purpose:

To eliminate double taxation of products purchased by businesses when such products are subject to the sales and use tax when resold to consumers or used or included in consumer goods that are subject to such tax when sold to consumers.