Connecticut Senate Bill SB00567

Connecticut 2013 Regular Session

• Introduced: 1/24/13
• Refer: 1/24/13

Caption

An Act Requiring Combined Reporting For Multistate Corporations.

Impact

If enacted, SB00567 will amend chapter 208 of the general statutes to enforce these combined reporting requirements. This legislative change is expected to ensure that revenues from profits earned by these corporations within Connecticut are properly collected, improving the overall tax revenue of the state. Supporters of the bill argue that it will level the playing field between large multistate corporations and local small businesses, which often do not enjoy the same tax advantages.

Summary

SB00567 aims to require mandatory combined reporting for multistate corporations operating in Connecticut. The intent behind this proposal is to enhance corporate income tax equity by ensuring that these corporations pay a fair amount in taxes owed to the state. This bill addresses concerns that multistate corporations may leverage loopholes in state tax laws to minimize their tax liabilities, thereby shifting the tax burden onto local residents and smaller businesses.

Contention

Despite its benefits, there are notable points of contention regarding the implementation of mandatory combined reporting. Opponents of the bill may raise concerns that it could complicate the tax compliance process for multistate corporations, leading to increased administrative costs and potential legal disputes over tax assessments. Additionally, this measure may face resistance from business lobbyists who argue that such changes could deter corporations from establishing operations in Connecticut, thereby impacting job growth and economic development.