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Highlights Of New Connecticut Fees, Tax Increase

HARTFORD, Conn. (AP) - The state of Connecticut has increased some fees and taxes to help balance their budget deficit. They have also added three new income tax rates beginning August 1. The following are highlights of some of those new, higher fees and taxes:

Fees:

- Customary six-year driver's license fee increased from $66 to $72.

- A new $25 late fee imposed for failing to renew driver's license or commercial driver's license.

- The commercial driver's license surcharge increased from $15 to $17.50 per year.

- Two-year passenger vehicle registration increased from $75 to $80.

- Fee for obtaining a vanity license plate increased from $65 to $69.

- Two-year registration of a motorcycle increased from $40 to $42.

- Fine increased to $1,000 for a resident operating a vehicle with plates issued by another state.

- Fine for using a cell phone or texting while driving increased from $100 to $125 for first offense; $150 to $250 for a second offense; and $200 to $400 for subsequent offenses.

Taxes:

- The number of income tax brackets will increase from three to six, with the top marginal income tax rate increased to 6.7%. The new income tax rates are 3 percent; 5 percent; 5.5 percent; 6 percent; 6.5 percent and 6.7 percent starting Aug. 1. Rates affect income earned since Jan. 1.

- Sales tax increased from 6 percent to 6.35 percent.

- Clothing and footwear under $50 no longer exempt from sales tax.

- Certain livery services, motor vehicle towing and road services, auto storage, and valet parking at airports now subject to sales tax.

- Non-prescription drugs subject to sales tax.

- Services related to cosmetic medical procedures, manicure and pedicure services, spa services and pet-grooming and boarding now subject to sales tax.

- Yoga instruction at a studio, yarn, cloth, fabric and smoking cessation products subject to sales tax.

- Cigarette tax increased from $3 to $3.40 a pack

- Alcoholic beverages subjected to new floor tax, in addition to higher sales tax.

- Admissions taxes will be charged, starting Jan. 1, 2012, at numerous venues including certain baseball stadiums and concert arenas.

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