2% tax on oil companies in Connecticut overruled

Judge M. Joseph Blumenfeld of the Federal District Court ruled Wednesday that Connecticut's 2 percent tax on oil companies' gross receipts was unconstitutional because it prohibited the companies from passing on the tax to the state's consumers. Gov. Ella T. Grasso had not yet decided if she would appeal the ruling, a spokesman said. It appeared that the state could still enact the tax, which would bring in $60 million, but that now the companies could pass it on to consumers.

A similar tax was recently enacted in New York State.

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