On Grocery Tax, Fasano Warns Democrats: Get it Right and Demands Assurances from DRS, Permanent Fix Still Needed

Senate Republican Leader Len Fasano (R-North Haven) today wrote to Department of Revenue Services Commissioner Scott Jackson regarding the refusal by Democrat lawmakers and the governor to call a special session to repeal the grocery tax passed in the Democrat state budget.

Given that Democrats are refusing to call a special session to change the tax they passed in the budget, Sen. Fasano has asked the DRS Commissioner to make it clear in his new “meals tax” guidance expected to be released this week that all grocery store items exempt from the sales tax in previous years will not be taxed at all on October 1, 2019.

“Any guidance issued by your office that broadens items subject to the sales tax sold in grocery stores beyond the 2002 guidance would raise serious concerns and suspicions by my caucus relative to how any new language came into being. It would lead me to seek additional information from all parties negotiating this guidance,” Fasano wrote.

Senator Fasano has also asked the DRS Commissioner to issue a formal statement that they will not seek any penalties, interest or unrealized taxes as a result of any future court or administrative ruling regarding the “meals tax” contained in the FY 2020/2021 Democrat state budget.

“Businesses need certainty that they will not be held liable if they do not tax items that your office previously indicated should be taxed as a result of the new state budget. This is extremely important to ensure businesses have the confidence to not implement the tax imposed by Democrats, so that taxpayers will not be burdened with this tax starting October 1, 2019,” said Fasano.

Senator Fasano emphasized that Republicans will continue to push for a permanent fix in the regular legislative session to ensure that no future governor or legislature can enforce the grocery tax as contained in the Democrat budget that passed this year.

“Any revised guidance you issue will be a temporary agreement, but a true fix can only be achieved when the legislature changes the language of the law,” Fasano wrote. “The only way to truly resolve this issue and undo what Democrat lawmakers passed is to pass new legislation. The statute must change to ensure clarity in all future years.”

Click to view the full letter to DRS..