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    Tuesday, May 07, 2024

    Confusion surrounds new state sales tax on parking fees

    Jaclyn Greenman makes change for parking fees from visitors to Ocean Beach Park in New London Thursday, July 23, 2015. (Sean D. Elliot/The Day)
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    Much confusion surrounds a new state sales tax placed on motor vehicle parking fees for all seasonal lots, as well as hospital garages, with 30 or more non-metered parking spaces.

    The 6.35 percent sales tax was included in the budget passed by the Connecticut General Assembly on June 29, and went into effect July 1.

    In the days between its passing and its implementation, it's unclear how, or whether, state officials notified those places affected, and what locations, specifically, would be implementing the tax. 

    Initially, it appeared only state parks would be impacted. Connecticut's Department of Energy and Environmental Protection stated in a news release last week that on July 18 a "state sales tax" would be added "to parking fees at three shoreline parks where those fees are charged. Those parks are: Sherwood Island State Park, Hammonasset Beach State Park, and Rocky Neck State Park."

    The release went on to quote DEEP Commissioner Robert Klee as saying the state would be implementing the sales tax gradually, "first at three shoreline parks and then with the addition of other state parks in the near future."

    But it has become clear that the tax goes beyond state parks.

    Sarah Kaufman, director of communication for the state's Department of Revenue Services, said the department could not provide The Day with a list of the places affected due to taxpayer confidentiality.

    The tax is expected to generate $5.1 million in fiscal years 2016 and 2017, respectively, according to Alan Calandro, executive director of the Office of Fiscal Analysis. That includes the $210,000 that is expected to be generated in both years from the parking tax on state parks. 

    The money generated will go back to the state's general fund, the primary mechanism for financing the state's operations.

    Several calls to state officials resulted in no answer as to which lawmaker or lawmakers proposed the tax.

    Gabe Rosenberg, communications director with the House Democrats, said the tax was proposed as part of the implementer bill during the one-day special session, but that he did not know who suggested it.

    Rosenberg added that the chairs of the various committees, the legislative leaders and the administration all agreed on it.

    David Sugrue, manager at Ocean Beach Park in New London, said he read about the new parking tax and went online to see if Ocean Beach was subject to the tax. He then called the state tax department.

    "I wanted to know if we were subject so I called and they said, yes, we were," Sugrue told The Day by phone Wednesday.

    Ocean Beach began charging the tax on July 15. A notice on the park's website in reference to 2015 admission and parking prices says, "As of July 2015, the State of Connecticut now requires you to pays 6.35% sales tax on your parking fee."

    The daily weekday rate went from $17 to $18, Sugrue said that park officials rounded the numbers, and the weekend rate from $22 to $23.50. He added that the park recently got new signs with parking prices that are now incorrect, and that they need to have more change at the gates.

    "Yes, some people are aggravated," Sugrue said. "They want to know why we are doing this in the middle of the season. And we tell them, it's certainly nothing that we wanted to do."

    Sugrue said the person he spoke to at the state said they planned to start calling those who are affected and telling them they need to start charging the tax.

    "I think everybody was broadsided," he said, adding that local municipal beaches will have to add the tax.

    Brian Flaherty with Waterford Beach Park said officials there have not been notified by anyone at the state indicating the park is affected. Flaherty said he checked with officials at Waterford Town Hall, and they told him to the best of their knowledge that they thought the tax was just on state parks.

    "We haven't been impacted at this point," Flaherty said by phone Thursday.

    Terri Cedio, an office assistant for the Town of Groton Parks and Recreation Department, said by phone Thursday that Esker Point Beach and Bluff Point State Park were not affected. Neither location charges parking fees.

    j.bergman@theday.com

    Twitter: @JuliaSBergman

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