| Old | New | Differences | |
|---|---|---|---|
| 1 | - | General Assembly Substitute Bill No. 5545 | |
| 2 | - | February Session, 2014 *_____HB05545FIN___032514____* | |
| 1 | + | General Assembly Raised Bill No. 5545 | |
| 2 | + | February Session, 2014 LCO No. 2510 | |
| 3 | + | *02510_______FIN* | |
| 4 | + | Referred to Committee on FINANCE, REVENUE AND BONDING | |
| 5 | + | Introduced by: | |
| 6 | + | (FIN) | |
| 3 | 7 | ||
| 4 | 8 | General Assembly | |
| 5 | 9 | ||
| 6 | - | ||
| 10 | + | Raised Bill No. 5545 | |
| 7 | 11 | ||
| 8 | 12 | February Session, 2014 | |
| 9 | 13 | ||
| 10 | - | *_____HB05545FIN___032514____* | |
| 14 | + | LCO No. 2510 | |
| 15 | + | ||
| 16 | + | *02510_______FIN* | |
| 17 | + | ||
| 18 | + | Referred to Committee on FINANCE, REVENUE AND BONDING | |
| 19 | + | ||
| 20 | + | Introduced by: | |
| 21 | + | ||
| 22 | + | (FIN) | |
| 11 | 23 | ||
| 12 | 24 | AN ACT CONCERNING A COMPREHENSIVE STUDY OF THE STATE'S TAX STRUCTURE. | |
| 13 | 25 | ||
| 14 | 26 | Be it enacted by the Senate and House of Representatives in General Assembly convened: | |
| 15 | 27 | ||
| 16 | 28 | Section 1. (NEW) (Effective July 1, 2014) (a) The chairs and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding shall convene a panel of experts to conduct a thorough study of the state's tax structure. Such study shall endeavor to develop revenue-neutral policy options to modernize the current tax system, with the goals of increasing the system's simplicity, fairness, economic competitiveness and affordability. | |
| 17 | 29 | ||
| 18 | 30 | (b) Members of the panel shall be appointed by the chairs and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding. All appointments to the panel shall be made not later than thirty days after the effective date of this section. The chairs of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding shall serve as chairs of the panel and shall convene its first meeting. | |
| 19 | 31 | ||
| 20 | - | (c) The panel shall consult with the Office of Policy and Management and the Department of Revenue Services and such other financial experts as members of the panel deem necessary. The panel | |
| 32 | + | (c) The panel shall consult with the Office of Policy and Management and the Department of Revenue Services and such other financial experts as members of the panel deem necessary. The panel may organize itself into subcommittees for the purpose of focusing on each tax to be studied. | |
| 21 | 33 | ||
| 22 | - | (d) The panel shall examine the | |
| 34 | + | (d) The panel shall examine all major state taxes, as well as the local property tax, and shall include, but not be limited to, consideration of the following: | |
| 23 | 35 | ||
| 24 | - | (1) For each | |
| 36 | + | (1) For each major tax: Whether it encourages economic growth, is efficient, stable, simple and predictable, and fair and equitable; | |
| 25 | 37 | ||
| 26 | - | (2) For the corporation business tax: (A) The effect of the tax on operations of corporations; (B) the impact of the tax on the competitiveness of state businesses and on prices paid for their goods and services; (C) the applicability of a corporate-based business tax structure, when alternative forms of business organizations are increasingly being used; (D) the use of tax credits, including consideration of (i) their efficacy in achieving policy goals, (ii) their application to business entities other than corporations, (iii) the expansion of existing tax credits, such as the apprenticeship tax credit, or adding new tax credits | |
| 38 | + | (2) For the corporation business tax: (A) The effect of the tax on operations of corporations; (B) the impact of the tax on the competitiveness of state businesses and on prices paid for their goods and services; (C) the applicability of a corporate-based business tax structure, when alternative forms of business organizations are increasingly being used; (D) the use of tax credits, including consideration of (i) their efficacy in achieving policy goals, (ii) their application to business entities other than corporations, and (iii) the expansion of existing tax credits, such as the apprenticeship tax credit, or adding new tax credits; and (E) the advantages and disadvantages of alternative forms of corporate taxation, including combined reporting; | |
| 27 | 39 | ||
| 28 | 40 | (3) For sales and use taxes: (A) The impact on the state's revenues and economy of the existing rate and exemptions, as compared to a lower rate and a broader base; (B) the treatment of sales tax on business-to-business sales; (C) whether luxury taxes raise sufficient revenue to offset retail business lost; and (D) whether there is equity within the existing tax structure, including whether bed and breakfast inns should be taxed at the same rate as hotels; | |
| 29 | 41 | ||
| 30 | - | (4) For the personal income tax: (A) The rate structure as related to the tax's progressivity and equity between single | |
| 42 | + | (4) For the personal income tax: (A) The rate structure as related to the tax's progressivity and equity between single or joint filers; (B) the purposes and efficacy of existing deductions and exemptions; (C) whether existing tax credits are meeting public policy goals, and whether other credits should be allowed; (D) whether adjustments are needed to the alternative minimum tax; and (E) the administration of the tax, and whether it is fair and efficient, including the manner in which tax refunds are made; | |
| 31 | 43 | ||
| 32 | - | (5) For the local property tax: (A) The impact of the tax on businesses; (B) the impact | |
| 44 | + | (5) For the local property tax: (A) The impact of the tax on businesses; (B) the impact on residents; (C) the real or perceived inequities in the varying levels of property tax throughout the state; and (D) alternative sources of revenue for municipalities; | |
| 33 | 45 | ||
| 34 | 46 | (6) For the estate and gift tax: (A) The extent to which state residents move out of the state, based on this tax; (B) the effect on the state from losing the high-income residents affected by this tax; and (C) whether adjusting the rates is advisable; and | |
| 35 | 47 | ||
| 36 | 48 | (7) For the excise taxes: (A) The effect of taxes on price elasticity; (B) the effect of taxes on consumers; and (C) whether these taxes fulfill a particular public policy purpose. | |
| 37 | 49 | ||
| 38 | 50 | (e) For the calendar year ending December 31, 2014, the panel shall develop an outline of items to be considered, a list of goals and a tentative schedule. They shall meet with a broad cross-section of interest groups, including business associations, labor, regional organizations, public interest groups, accountants and attorneys. For the calendar year ending December 31, 2015, the panel shall proceed, through subcommittees, with its analyses of the state's taxes, as provided in subsection (d) of this section. Not later than February 1, 2016, the panel shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, on the results of its study, including any recommendations for further action. | |
| 39 | 51 | ||
| 52 | + | Sec. 2. (Effective July 1, 2014) The sum of five hundred thousand dollars is appropriated to the Office of Legislative Management, from the General Fund, for the fiscal year ending June 30, 2015, for purposes of the tax system study authorized pursuant to section 1 of this act. | |
| 53 | + | ||
| 40 | 54 | ||
| 41 | 55 | ||
| 42 | 56 | ||
| 43 | 57 | This act shall take effect as follows and shall amend the following sections: | |
| 44 | 58 | Section 1 July 1, 2014 New section | |
| 59 | + | Sec. 2 July 1, 2014 New section | |
| 45 | 60 | ||
| 46 | 61 | This act shall take effect as follows and shall amend the following sections: | |
| 47 | 62 | ||
| 48 | 63 | Section 1 | |
| 49 | 64 | ||
| 50 | 65 | July 1, 2014 | |
| 51 | 66 | ||
| 52 | 67 | New section | |
| 53 | 68 | ||
| 69 | + | Sec. 2 | |
| 54 | 70 | ||
| 71 | + | July 1, 2014 | |
| 55 | 72 | ||
| 56 | - | ||
| 73 | + | New section | |
| 57 | 74 | ||
| 58 | - | ||
| 75 | + | Statement of Purpose: | |
| 59 | 76 | ||
| 60 | - | Joint Favorable Subst. | |
| 77 | + | To enable the Finance, Revenue and Bonding Committee to convene a panel of experts to conduct a comprehensive and objective review of the state's tax structure. | |
| 78 | + | ||
| 79 | + | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] |