House Republican Press Release

February 6, 2007

Press Office: 860-240-8700

Rep. Gibbons Proposes Nonprofit Tax Refund

Would Help Transportation Association of Greenwich

State Representative Lile Gibbons of Greenwich, has introduced a bill to allow a fuel tax refund for nonprofit providers of elderly and disabled transportation. HB-6960, An Act Exempting Fuel Used by Transportation Programs for the Elderly from the Gross Earnings Tax. The bill is receiving a public hearing on February 6^th in the General Assembly’s Select Committee on Aging.

Rep. Gibbons’ bill amends Section 12-459 of the general statutes to enable a nonprofit transportation service, acting on behalf of a transit district or a municipality for the purpose of transporting elderly and disabled persons, to receive a refund on its state fuel taxes. Under current state statue, it allows for a transit district or a municipality to receive this refund but not a nonprofit agency acting on behalf of either of the above.

This came to the attention of Rep. Gibbons after The Transportation Association of Greenwich (TAG) wanted to know why they received a refund on its federal gasoline taxes but not state taxes. TAG estimates the refund for state fuel taxes would amount to $12,000-$15,000/year.

According to James Boutelle, Board President of the Transportation Association of Greenwich (TAG) a gasoline state tax refund would strengthen the Adult Day Care’s bottom line and lessen the need for state assistance. Mr. Boutelle cites that the last time the legislature amended this section ((12-458) it was to make Meals On Wheels programs eligible.

Rep. Gibbons said, “This tax refund would greatly help not only TAG but other non-profits transporting our elderly and disabled citizens.”