Delivery Services Industry, Sen. John A. Kissel Rally Against Proposed Tax

April 15, 2008

Say 6% tax on all deliveries would wreak economic havoc in Connecticut

Leaders of the state’s delivery services industry joined State Senator John A. Kissel, R-Enfield, today in calling for the immediate elimination of a proposed 6% state tax to the delivery charges of all commercial and consumer goods transported in Connecticut. At a press conference held today at Bradley International Airport (BDL) in Windsor Locks, they strongly urged the legislature’s Finance, Revenue and Bonding Committee to reconsider the proposal, which passed the committee on April 4th, amidst objections from Republicans and industry leaders.

“We are here today because Bradley Airport is Connecticut’s parcel hub. More packages go in and out of Bradley Airport on a daily basis than anywhere else in the state. It is one of the largest economic generators in North-Central Connecticut so I am very concerned as to what this tax would do to our region. I am committed to doing everything I can to make sure that this proposal is taken off the table. With the current uncertainty of the economy it’s troubling that this is even being talked about. I commend those here today in making a statement against this proposal.” said Sen. Kissel.

“At a time when private business and state government are united in their efforts to build Bradley as both a viable passenger and freight airport I am astounded at the proposal to impose a 6% delivery tax,” said Tony DiFusco, Branch Manager A. N. Deringer, Inc. “Not only will this make us uncompetitive when compared to other nearby airports, but this tax will make it that much more difficult for our state’s businesses to compete and do business here. As a company that has in excess of $1 million in annual business that is directly tied to BDL I strongly hope the legislature considers the negative impact such an action will have on the State’s businesses. We should be encouraging business growth in Connecticut not trying to tax it out of existence.”

They said that inevitably the tax would be passed on to other businesses as well. “The businesses numbers aren’t great now. With high fuel costs and a struggling national economy, prices for shipping have already increased and we cannot afford to put any more strains on businesses. This is certainly not the time for anyone to be talking about raising taxes on deliveries. Many businesses I know depend on this service and to impose this type of tax could be absolutely devastating,” said Sen. Kissel.

According to Sen. Kissel, in addition to all parcel delivery services, the tax would also apply to deliveries on flowers, groceries, newspapers, prescription medicines, furniture and appliances, home heating fuels and gasoline wholesalers. “In reality this tax affects everyone who receives a delivery,” said Sen. Kissel. “We should be doing everything we can to help create and grow businesses by reducing costs that will undoubtedly help consumers and the economy. As someone who represents border towns I am very concerned as to what that this tax would do to our region in terms of a competitive disadvantage. Inevitably, it would have a major impact and one that we simply cannot afford.”