General Assembly Substitute Bill No. 1052
January Session, 2013 *_____SB01052FIN___041513____*
General Assembly
Substitute Bill No. 1052
January Session, 2013
*_____SB01052FIN___041513____*
AN ACT CONCERNING IMPROVED TAX COLLECTION.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 12-430 of the general statutes is amended by adding subdivision (8) as follows (Effective January 1, 2014, and applicable to sales occurring on or after said date):
(NEW) (8) (A) For purposes of this subdivision, (i) "stamped package of cigarettes" means a package of cigarettes to which Connecticut cigarette tax stamps, as prescribed by section 12-298, have been affixed; (ii) "stamper" means a person who, under chapter 214, may lawfully purchase unstamped packages of cigarettes and who, before such packages are transferred out of such person's possession, is required to affix Connecticut cigarette tax stamps to such packages; (iii) "nonstamping distributor" means a distributor that is licensed under chapter 214, other than a stamper; and (iv) "licensed dealer" has the same meaning as provided in section 12-285.
(B) (i) Notwithstanding any other provisions of this chapter, whenever a stamper sells stamped packages of cigarettes to a licensed dealer, every such sale by the stamper to the licensed dealer shall be treated as a retail sale, and not as a sale for resale. The stamper shall be subject to the tax imposed by this chapter on its gross receipts from such sales, and shall be required to collect reimbursement for said tax from the licensed dealer. The amount of the tax reimbursement required to be collected shall be separately stated on the stamper's invoice to the licensed dealer. The presentation of a valid resale certificate by a licensed dealer shall not relieve the stamper of its obligations under this subdivision. Except as otherwise provided in this subdivision, every stamper shall file the returns required by this chapter and shall pay the taxes imposed by this chapter in the same manner as other sellers.
(ii) Whenever a licensed dealer purchases stamped packages of cigarettes from a stamper, the subsequent sale of such stamped packages of cigarettes by the licensed dealer shall be treated as a retail sale, and not as a sale for resale. The licensed dealer shall be subject to the tax imposed by this chapter on its gross receipts from such sales, and shall be required to collect reimbursement for said tax from each customer. The licensed dealer, in computing, for purposes of this chapter its gross receipts and the sales price of stamped packages of cigarettes, shall not include the amount of the tax reimbursement required to be paid by the licensed dealer to the stamper pursuant to subparagraph (B)(i) of this subdivision. The licensed dealer shall be allowed a credit against the tax imposed by this chapter on its retail sales of stamped packages of cigarettes during a reporting period in an amount equal to the amount of tax reimbursement required to be paid by the licensed dealer to the stamper during the same reporting period pursuant to subparagraph (B)(i) of this subdivision.
(C) (i) Notwithstanding any other provisions of this chapter, whenever a stamper sells stamped packages of cigarettes to a nonstamping distributor, the subsequent sale of such stamped packages of cigarettes by the nonstamping distributor to a licensed dealer shall be treated as a retail sale, and not as a sale for resale. The nonstamping distributor shall be subject to the tax imposed by this chapter on its gross receipts from such sales, and shall be required to collect reimbursement for said tax from the licensed dealer. The amount of the tax reimbursement required to be collected shall be separately stated on the nonstamping distributor's invoice to the licensed dealer. The presentation of a valid resale certificate by a licensed dealer shall not relieve the nonstamping distributor of its obligations under this subdivision. Except as otherwise provided in this subdivision, every nonstamping distributor shall file the returns required by this chapter and shall pay the taxes imposed by this chapter in the same manner as other sellers.
(ii) Whenever a licensed dealer purchases stamped packages of cigarettes from a nonstamping distributor, the subsequent sale of such stamped packages of cigarettes by the licensed dealer shall be treated as a retail sale, and not as a sale for resale. The licensed dealer shall be subject to the tax imposed by this chapter on its gross receipts from such sales, and shall be required to collect reimbursement for said tax from each customer. The licensed dealer, in computing, for purposes of this chapter, its gross receipts and the sales price of stamped packages of cigarettes, shall not include the amount of the tax reimbursement required to be paid by the licensed dealer to the nonstamping distributor pursuant to subparagraph (C)(i) of this subdivision. The licensed dealer shall be allowed a credit against the tax imposed by this chapter on its retail sales of stamped packages of cigarettes during a reporting period, in an amount equal to the amount of tax reimbursement required to be paid by the licensed dealer to the nonstamping distributor during the same reporting period pursuant to subparagraph (C)(i) of this subdivision.
Sec. 2. Subsection (b) of section 12-268c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013, and applicable to refunds issued on or after said date):
(b) (1) To any refunds granted as a result of overpayments of any taxes under chapter 210, 211 or 212, except refunds due because of any intentional overpayment, there shall be added interest at the rate of two-thirds of one per cent for each month or fraction of a month, [which elapses between (1) the later of (A) the due date of such taxes or (B) the date of making such overpayment and (2) the date of notice by the Commissioner of Revenue Services that such refunds are due] as provided in subdivisions (2) and (3) of this subsection.
(2) In case of such overpayment pursuant to a tax return, no interest shall be allowed or paid under this subsection on such overpayment for any month or fraction thereof prior to (A) the ninety-first day after the last day prescribed for filing the tax return associated with such overpayment, or (B) the ninety-first day after the date such return was filed, whichever is later.
(3) In case of such overpayment pursuant to an amended tax return, no interest shall be allowed or paid under this subsection on such overpayment for any month or fraction thereof prior to the ninety-first day after the date such amended tax return was filed.
Sec. 3. Subdivision (3) of subsection (a) of section 12-392 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013, and applicable to estates of decedents dying on or after said date):
(3) (A) Whenever there is an overpayment of the tax imposed by this chapter, the Commissioner of Revenue Services shall return to the fiduciary or transferee the overpayment which shall bear interest at the rate of two-thirds of one per cent per month or fraction thereof, said interest commencing, for the estates of decedents dying prior to July 1, 2009, from the expiration of nine months after the death of the transferor or date of payment, whichever is later, [or,] for the estates of decedents dying on or after July 1, 2009, from the expiration of six months after the death of the transferor or date of payment, whichever is later or, for the estates of decedents dying on or after July 1, 2013, as provided in subparagraphs (B) and (C) of this subdivision.
(B) In case of such overpayment pursuant to a tax return, no interest shall be allowed or paid under this subdivision on such overpayment for any month or fraction thereof prior to (i) the ninety-first day after the last day prescribed for filing the tax return associated with such overpayment, determined without regard to any extension of time for filing, or (ii) the ninety-first day after the date such return was filed, whichever is later.
(C) In case of such overpayment pursuant to an amended tax return, no interest shall be allowed or paid under this subdivision on such overpayment for any month or fraction thereof prior to the ninety-first day after the date such amended tax return was filed.
Sec. 4. Subdivision (2) of subsection (b) of section 12-587 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(2) Gross earnings derived from the first sale of the following petroleum products within this state shall be exempt from tax: (A) Any petroleum products sold for exportation from this state for sale or use outside this state; (B) the product designated by the American Society for Testing and Materials as "Specification for Heating Oil D396-69", commonly known as number 2 heating oil, to be used exclusively for heating purposes or to be used in a commercial fishing vessel, which vessel qualifies for an exemption pursuant to section 12-412; (C) kerosene, commonly known as number 1 oil, to be used exclusively for heating purposes, provided delivery is of both number 1 and number 2 oil, and via a truck with a metered delivery ticket to a residential dwelling or to a centrally metered system serving a group of residential dwellings; (D) the product identified as propane gas, to be used exclusively for heating purposes; (E) bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil to be used in any vessel having a displacement exceeding four thousand dead weight tons; (F) for any first sale occurring prior to July 1, 2008, propane gas to be used as a fuel for a motor vehicle; (G) for any first sale occurring on or after July 1, 2002, grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition; (H) for any first sale occurring on or after July 1, 2002, number 2 heating oil to be used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412; (I) for any first sale occurring on or after July 1, 2000, paraffin or microcrystalline waxes; (J) for any first sale occurring prior to July 1, 2008, petroleum products to be used as a fuel for a fuel cell, as defined in subdivision (113) of section 12-412; (K) a commercial heating oil blend containing not less than ten per cent of alternative fuels derived from agricultural produce, food waste, waste vegetable oil or municipal solid waste, including, but not limited to, biodiesel or low sulfur dyed diesel fuel; [or] (L) for any first sale occurring on or after July 1, 2007, diesel fuel other than diesel fuel to be used in an electric generating facility to generate electricity; or (M) for any first sale occurring on or after July 1, 2013, cosmetic grade mineral oil.
Sec. 5. Subsection (b) of section 12-589 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013, and applicable to refunds issued on or after said date):
(b) (1) To any refund granted as a result of overpayments of any taxes imposed under section 12-587, as amended by this act, except refunds due because of any intentional overpayment, there shall be added interest at the rate of two-thirds of one per cent for each month or fraction of a month, [which elapses between (1) the later of the due date of such taxes or the date of making such overpayment and (2) the date of notice by the Commissioner of Revenue Services that any such refund is due] as provided in subdivisions (2) and (3) of this subsection.
(2) In case of such overpayment pursuant to a tax return, no interest shall be allowed or paid under this subsection on such overpayment for any month or fraction thereof prior to (A) the ninety-first day after the last day prescribed for filing the tax return associated with such overpayment, or (B) the ninety-first day after the date such return was filed, whichever is later.
(3) In case of such overpayment pursuant to an amended tax return, no interest shall be allowed or paid under this subsection on such overpayment for any month or fraction thereof prior to the ninety-first day after the date such amended tax return was filed.
Sec. 6. Subsection (d) of section 12-647 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013, and applicable to refunds issued on or after said date):
(d) (1) Whenever there is an overpayment of the tax imposed by this chapter, the commissioner shall return to the taxpayer the overpayment, which shall bear interest at the rate of two-thirds of one per cent per month or fraction thereof, [said interest commencing from the due date of the return required under this chapter, or the date of payment, whichever is later] as provided in subdivisions (2) and (3) of this subsection.
(2) In case of such overpayment pursuant to a tax return, no interest shall be allowed or paid under this subsection on such overpayment for any month or fraction thereof prior to (A) the ninety-first day after the last day prescribed for filing the tax return associated with such overpayment, determined without regard to any extension of time for filing, or (B) the ninety-first day after the date such return was filed, whichever is later.
(3) In case of such overpayment pursuant to an amended tax return, no interest shall be allowed or paid under this subsection on such overpayment for any month or fraction thereof prior to the ninety-first day after the date such amended tax return was filed.
This act shall take effect as follows and shall amend the following sections:
Section 1 January 1, 2014, and applicable to sales occurring on or after said date 12-430
Sec. 2 July 1, 2013, and applicable to refunds issued on or after said date 12-268c(b)
Sec. 3 July 1, 2013, and applicable to estates of decedents dying on or after said date 12-392(a)(3)
Sec. 4 July 1, 2013 12-587(b)(2)
Sec. 5 July 1, 2013, and applicable to refunds issued on or after said date 12-589(b)
Sec. 6 July 1, 2013, and applicable to refunds issued on or after said date 12-647(d)
This act shall take effect as follows and shall amend the following sections:
Section 1
January 1, 2014, and applicable to sales occurring on or after said date
12-430
Sec. 2
July 1, 2013, and applicable to refunds issued on or after said date
12-268c(b)
Sec. 3
July 1, 2013, and applicable to estates of decedents dying on or after said date
12-392(a)(3)
Sec. 4
July 1, 2013
12-587(b)(2)
Sec. 5
July 1, 2013, and applicable to refunds issued on or after said date
12-589(b)
Sec. 6
July 1, 2013, and applicable to refunds issued on or after said date
12-647(d)
Statement of Legislative Commissioners:
In sections 2, 3, 5 and 6, the opening new language, "Except as provided in subdivision (2) or (3) of this subsection" (in the case of section 3, the reference is to "subparagraph (A) or (B) of this subdivision") was changed to "as provided in subdivisions (2) and (3) of this subsection" and moved to follow "each month or fraction of a month", for clarity and accuracy, and the existing language thereafter was deleted to avoid repetition.
FIN Joint Favorable Subst.
FIN
Joint Favorable Subst.