Kupchick, Devlin Question ‘Harmful Tax’ on Non-profits

From CT House Republicans: State Reps. Brenda Kupchick (R-132) and Laura Devlin (R-134) today came out strongly against a proposal which would tax our non-profit providers.

Historically, nonprofits have been exempt from the sales tax because – they provide services for the public good at a cost significantly less than if government provided those services directly.

According to the non-profit providers, the elimination of the sales tax exemption would divert funds intended for critical programs that benefit and improve the lives of Connecticut residents. The proposal would affect all non-profit providers, including state domestic violence and homeless organizations, services for residents with intellectual and developmental disabilities (I/DD), state legal aid services, educational services, and more.

The tax proposal would strip approximately $217 million from the communities’ nonprofits across the state and instead be put into the state coffers.

Rep. Kupchick said, “Taxing charities that help the most at need is shameful. Connecticut non-profits are our community’s life line, serving our most vulnerable citizens. The work these organizations do is indispensable. Organizations like the Center for Family Justice, Operation Hope, The Child & Family Guidance Center and the Kennedy Center would be devastated.”

“These non-profit providers are just that - they are in business to serve the community, not make a profit. That is why they are tax exempt. They provide an essential service. Forcing them to pay sales tax will mean they have fewer dollars to provide support those who need their assistance the most,” said Rep. Devlin. I will oppose the bill if the committee leadership plans to bring this to a vote.”

Devlin added, “It is absurd that at today's public hearing we were talking about bills to tax non-profits and at the same time, other bills looking to increase fees on residents to fund some of the very same non-profit providers. Essentially, any funds raised by the new fees would be used to pay a new tax. It makes no sense.”

The proposal received a public hearing in the Finance, Revenue and Bonding committee and was opposed by the Connecticut Women’s Education and Legal Fund, United Way of Connecticut, Connecticut Alliance of Boys & Girls Clubs, The Center for Family Justice, the March of Dimes, CT Coalition Against Domestic Violence, Connecticut Women’s Education and Legal Fund.

Photo courtesy of CT House Republicans