Sales tax on engineering services may hurt STEM effort in CT

There are a number of great arguments against the proposed sales tax on engineering services. It will make Connecticut engineering firms less competitive, it will hurt smaller engineering firms, etc.

But Maria Loitz, Director of Marketing at BVH Integrated Services, P.C. wrote to her representatives about the impact of the proposal on the state’s efforts to encourage students in science, engineering, technology and math (STEM).

“The tax on engineering services will actually have the opposite effect as intended by the Connecticut legislature, and send jobs to neighboring states that do not have a sales tax on engineering services. It’s a very competitive environment, and a newly implemented sales tax will certainly make our firm less competitive and will result in a loss of work, which will lead to a loss of profits, lack of growth, loss of jobs, and ultimately, a loss of income to the State.

“At a time when the State of Connecticut is investing $1.5 billion in Next Generation Connecticut to grow jobs in the STEM fields, why would the legislature impose this new tax on engineering firms, which would ultimately stump growth of engineering jobs in Connecticut? The result may be that Connecticut taxpayers will be subsidizing engineering jobs in neighboring states rather than in Connecticut.

“It is important to note that only 3 states in the country tax engineering services: New Mexico, South Dakota and Hawaii. Many engineering firms in our industry have multiple offices, including my employer. Given the business environment in Connecticut, it would be easy for many of these firms to expand and add jobs in neighboring states rather than in Connecticut.

“I am very passionate about this issue because I am a life-long resident of Connecticut, my family lives here, and it’s my hope to someday retire in Connecticut. With the full support of my employer, I am also actively involved in mentoring the youth of Connecticut’s urban areas – including New Britain, Hartford, New Haven, Waterbury, and Bridgeport, introducing them to careers in the architecture and engineering fields. It’s our goal to grow our firm in Connecticut, but we need a strong pool of engineers in order to achieve this goal, along with a fair and competitive business environment.

“I have been employed in the architecture and engineering industry for the past 20 years. Being involved in fee negotiations with clients on a daily basis, I am very confident that this new tax would create a significant hurdle for our firm’s future growth in Connecticut.”

Thanks, Maria. Great point!

Ames & Gough

Ames & Gough
859 Willard Street
Quincey, MA 2169
Phone: (617) 328-6555
Fax: (617) 328-6888

jmaxwell@amesgough.com
Insurance Risk Management Services

Vanasse Hangen Brustlin, Inc.

Vanasse Hangen Brustlin, Inc.
54 Tuttle Place
Middletown, CT 6457
Phone: (860) 632-1500
Fax:

soneill@vhb.com
Civil| structural| transportation, civil/roadway, civil/site, environmental, geotechnical/soils, surveying

Zuvic, Carr and Associates, Inc.

Zuvic, Carr and Associates, Inc.
40 Cold Spring Road
Rocky Hill, CT 6067
Phone: 860-436-4901 Ext. 301
Fax: 860-436-4953

www.zuvic.com

marici@zuvic.com
Civil structural| civil transportation| civil roadway| civil site| environmental| hazardous waste remediation| surveying
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A. DiCesare Associates, PC

A. DiCesare Associates, PC
690 Clinton Ave
Bridgeport, CT 6604
Phone: (203) 696-0444
Fax: (203) 696-1094
www.adicesarepc.com
dicesare@adicesarepc.com
civil, structural, transportation, roadway, geotechnical, inspection
A.DiCesare Associates, P.C. (ADA) offers expertise in structural, civil, highway, municipal, environmental, and geotechnical engineering. ADA maintains a qualified and experienced staff, uses the latest advances in engineering computer software, and has a diversity of capabilities. ADA provides engineering services for many disciplines: inspection, and evaluation (including underwater), structural design, highway design, storm and drainage design, environmental permitting, constructibility review, and construction engineering and inspection services.

AI Engineers, Inc.

AI Engineers, Inc.
919 Middle Street
Middletown, CT 6457
Phone: 860-635-7740
Fax: 860-635-7312
www.aiengineers.com
aislam@aiengineers.com
Civil, transportation, roadway, civil/site, general/municipal, electrical, mechanical, surveying, HVAC, architecture
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Champion Engineering LLC

Champion Engineering LLC
8 Novelty Lane, PO Box 855
Essex, CT 06426
Phone: 860.767.2217
Fax: 888.450.1670

championengineeringllc@gmail.com
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Structural engineering design for renovations, additions, and new buildings; building code reviews; structural investigations; existing condition assessments; flood plain design; and expert witness.