The Connecticut Restaurant Association is asking the state legislature to set aside 1% of the tax revenue from the state’s 7.35% tax on meals and beverages to benefit the hospitality industry.
In 2019, the tax on meals and beverages increased 1% from the typical sales rate of 6.35%. The additional 1% of revenue – which totaled $90 million during FY 2022 – is allocated for the general fund.
But under the trade group’s proposal, that money would go into a newly created Connecticut Hospitality Fund, of which 30% would benefit the Office of Tourism along with 20% for workforce development for the hospitality industry and 50% for municipalities to support the local hospitality industry.
The group says the state can afford the measure because of its recent budget surplus. The request is in line with a broader push to boost funding for the state’s tourism, arts and culture industries.
“In light of this success, Connecticut is now in a position to make a modest, responsible change to the meals and beverage tax – a change that will pay dividends for the state’s hospitality industry and bolster local, municipal economies in every corner of Connecticut,” the group said.
The restaurant industry has shed 22,000 jobs since before the pandemic began, and nearly 1,000 restaurants across the state have closed, the group says.
