Connecticut Senate Bill SB00275

Connecticut 2011 Regular Session

• Introduced: 1/20/11
• Refer: 1/20/11

Caption

An Act Concerning The Treatment Of Deferred Income Under The Connecticut Alternative Minimum Tax.

Impact

If enacted, SB00275 would amend subsection (d) of section 12-700a of the General Statutes of Connecticut. The amendment seeks to clearly delineate the circumstances under which deferred income is taxed, thereby preventing it from being taxed again when income is finally recognized. This change could potentially impact both individual taxpayers and businesses, who may find their tax liabilities adjusted as a result of this clarification. The bill has been referred to the Finance, Revenue and Bonding committee for further consideration.

Summary

SB00275, introduced by Senator Frantz, addresses the treatment of deferred income under the Connecticut Alternative Minimum Tax (AMT). The primary aim of this bill is to ensure that individuals or entities aren't subjected to double taxation on certain deferred incomes, which can occur under the current tax framework. This measure is part of broader efforts to streamline tax policy and eliminate unnecessary penalties that may arise from the treatment of income that has been deferred for various reasons.

Contention

The proposal may spark debate among legislators and stakeholders, particularly concerning its implications for state revenue. Advocates argue that eliminating double taxation is a fair measure that supports taxpayers who defer income for legitimate reasons. On the other hand, some may express concerns about the potential reduction in state tax revenue and the longer-term fiscal impacts of such a change. Careful consideration will be necessary to balance taxpayer interests with the state's financial needs.