General Assembly Raised Bill No. 1136
January Session, 2015 LCO No. 6290
*06290_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
General Assembly
Raised Bill No. 1136
January Session, 2015
LCO No. 6290
*06290_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
AN ACT CONCERNING PROPERTY TAX REFORM.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 4-124i of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
As used in sections 4-124i to 4-124p, inclusive, and sections 2 and 3 of this act:
(1) "Planning region" means a planning region of the state as defined or redefined by the Secretary of the Office of Policy and Management, or his designee under the provisions of section 16a-4a;
(2) "Chief elected official" means the highest ranking elected governmental official of any town, city or borough within the state;
(3) "Elected official" means any selectman, mayor, alderman, or member of a common council or other similar legislative body of any town or city, or warden or burgess of any borough;
(4) "Council" means a regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive; and
(5) "Member" means any town, city or borough within a planning region of the state having become a member of a regional council of governments in accordance with sections 4-124i to 4-124p, inclusive.
Sec. 2. (NEW) (Effective October 1, 2015) Notwithstanding any provision of the general statutes or any special act, charter or home rule ordinance, any regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive, of the general statutes, as amended by this act, may establish a program of cooperation of member towns to create efficiencies in the delivery of services and reduce costs within the planning region in accordance with the terms of an agreement of the members and the provisions of this section. Any such program of cooperation and any distribution made pursuant to such program shall be made by unanimous consent of all members of the council. Such distributions shall be funded from grants from the municipal revenue sharing account established in section 4-66l, of the general statutes, as amended by this act, after grants are made for the purposes of section 3 of this act.
Sec. 3. (NEW) (Effective October 1, 2015, and applicable to assessment years commencing on or after October 1, 2015) Notwithstanding any provision of the general statutes or any special act, charter or home rule ordinance, on and after October 1, 2015, each member of a regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive, of the general statutes, as amended by this act, shall reduce the property tax assessment on any motor vehicle, as defined in section 14-1 of the general statutes to an amount that yields a total property tax due on the motor vehicle that is equal to the tax that would be imposed at a mill rate of not more than thirty-five. Such council shall receive a grant from the municipal revenue sharing account established in section 4-66l of the general statutes, as amended by this act, and shall distribute the amount of such grant to members of the council in proportion to the amount of sales and use tax collected in such member's town, city or borough.
Sec. 4. Section 4-66l of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(a) There is established an account to be known as the "municipal revenue sharing account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the Secretary of the Office of Policy and Management for the purposes of grants established pursuant to subsections (b) [and (c)] to (d), inclusive, of this section.
(b) (1) The secretary shall provide manufacturing transition grants to municipalities in an amount equal to the amount each municipality received from the state as payments in lieu of taxes pursuant to sections 12-94b, 12-94c, 12-94f and 12-94g of the general statutes, revision of 1958, revised to January 1, 2011, for the fiscal year ending June 30, 2011. Such grant payments shall be made in quarterly allotments, payable on November fifteenth, February fifteenth, May fifteenth and August fifteenth. The total amount of the grant payment is as follows:
T1 Municipality Grant Amounts
T2
T3 Andover $2,929
T4 Ansonia 70,732
T5 Ashford 2,843
T6 Avon 213,211
T7 Barkhamsted 33,100
T8 Beacon Falls 38,585
T9 Berlin 646,080
T10 Bethany 54,901
T11 Bethel 229,948
T12 Bethlehem 6,305
T13 Bloomfield 1,446,585
T14 Bolton 19,812
T15 Bozrah 110,715
T16 Branford 304,496
T17 Bridgeport 839,881
T18 Bridgewater 491
T19 Bristol 2,066,321
T20 Brookfield 97,245
T21 Brooklyn 8,509
T22 Burlington 14,368
T23 Canaan 17,075
T24 Canterbury 1,610
T25 Canton 6,344
T26 Chaplin 554
T27 Cheshire 598,668
T28 Chester 71,130
T29 Clinton 168,444
T30 Colchester 31,069
T31 Colebrook 436
T32 Columbia 21,534
T33 Cornwall 0
T34 Coventry 8,359
T35 Cromwell 27,780
T36 Danbury 1,534,876
T37 Darien 0
T38 Deep River 86,478
T39 Derby 12,218
T40 Durham 122,637
T41 Eastford 43,436
T42 East Granby 430,285
T43 East Haddam 1,392
T44 East Hampton 15,087
T45 East Hartford 3,576,349
T46 East Haven 62,435
T47 East Lyme 17,837
T48 Easton 2,111
T49 East Windsor 237,311
T50 Ellington 181,426
T51 Enfield 219,004
T52 Essex 80,826
T53 Fairfield 82,908
T54 Farmington 440,541
T55 Franklin 18,317
T56 Glastonbury 202,935
T57 Goshen 2,101
T58 Granby 28,727
T59 Greenwich 70,905
T60 Griswold 35,790
T61 Groton 1,373,459
T62 Guilford 55,611
T63 Haddam 2,840
T64 Hamden 230,771
T65 Hampton 0
T66 Hartford 1,184,209
T67 Hartland 758
T68 Harwinton 17,272
T69 Hebron 1,793
T70 Kent 0
T71 Killingly 567,638
T72 Killingworth 4,149
T73 Lebanon 24,520
T74 Ledyard 296,297
T75 Lisbon 2,923
T76 Litchfield 2,771
T77 Lyme 0
T78 Madison 6,880
T79 Manchester 861,979
T80 Mansfield 5,502
T81 Marlborough 5,890
T82 Meriden 721,037
T83 Middlebury 67,184
T84 Middlefield 198,671
T85 Middletown 1,594,059
T86 Milford 1,110,891
T87 Monroe 151,649
T88 Montville 356,761
T89 Morris 2,926
T90 Naugatuck 274,100
T91 New Britain 1,182,061
T92 New Canaan 159
T93 New Fairfield 912
T94 New Hartford 110,586
T95 New Haven 1,175,481
T96 Newington 758,790
T97 New London 30,182
T98 New Milford 628,728
T99 Newtown 192,643
T100 Norfolk 5,854
T101 North Branford 243,540
T102 North Canaan 304,560
T103 North Haven 1,194,569
T104 North Stonington 0
T105 Norwalk 328,472
T106 Norwich 161,111
T107 Old Lyme 1,528
T108 Old Saybrook 38,321
T109 Orange 85,980
T110 Oxford 72,596
T111 Plainfield 120,563
T112 Plainville 443,937
T113 Plymouth 124,508
T114 Pomfret 22,677
T115 Portland 73,590
T116 Preston 0
T117 Prospect 56,300
T118 Putnam 139,075
T119 Redding 1,055
T120 Ridgefield 452,270
T121 Rocky Hill 192,142
T122 Roxbury 478
T123 Salem 3,740
T124 Salisbury 66
T125 Scotland 6,096
T126 Seymour 255,384
T127 Sharon 0
T128 Shelton 483,928
T129 Sherman 0
T130 Simsbury 62,846
T131 Somers 72,769
T132 Southbury 16,678
T133 Southington 658,809
T134 South Windsor 1,084,232
T135 Sprague 334,376
T136 Stafford 355,770
T137 Stamford 407,895
T138 Sterling 19,506
T139 Stonington 80,628
T140 Stratford 2,838,621
T141 Suffield 152,561
T142 Thomaston 315,229
T143 Thompson 62,329
T144 Tolland 75,056
T145 Torrington 486,957
T146 Trumbull 163,740
T147 Union 0
T148 Vernon 121,917
T149 Voluntown 1,589
T150 Wallingford 1,589,756
T151 Warren 235
T152 Washington 231
T153 Waterbury 2,076,795
T154 Waterford 27,197
T155 Watertown 521,334
T156 Westbrook 214,436
T157 West Hartford 648,560
T158 West Haven 137,765
T159 Weston 366
T160 Westport 0
T161 Wethersfield 17,343
T162 Willington 15,891
T163 Wilton 247,801
T164 Winchester 249,336
T165 Windham 369,559
T166 Windsor 1,078,969
T167 Windsor Locks 1,567,628
T168 Wolcott 189,485
T169 Woodbridge 27,108
T170 Woodbury 45,172
T171 Woodstock 55,097
T172
T173 Borough of Danielson 0
T174 Borough Jewett City 3,329
T175 Borough Stonington 0
T176
T177 Barkhamsted F.D. 1,996
T178 Berlin - Kensington F.D. 9,430
T179 Berlin - Worthington F.D. 747
T180 Bloomfield Center Fire 3,371
T181 Bloomfield Blue Hills 88,142
T182 Canaan F.D. (no fire district) 0
T183 Cromwell F.D. 1,662
T184 Enfield F.D. (1) 12,688
T185 Enfield Thompsonville (2) 2,814
T186 Enfield Haz'dv'l F.D. (3) 1,089
T187 Enfield N.Thmps'nv'l F.D. (4) 55
T188 Enfield Shaker Pines (5) 5,096
T189 Groton - City 241,680
T190 Groton Sewer 1,388
T191 Groton Mystic F.D. #3 19
T192 Groton Noank F.D. #4 0
T193 Groton Old Mystic F.D. #5 1,610
T194 Groton Poquonnock Br. #2 17,967
T195 Groton W. Pleasant Valley 0
T196 Killingly Attawaugan F.D. 1,457
T197 Killingly Dayville F.D. 33,885
T198 Killingly Dyer Manor 1,157
T199 E. Killingly F.D. 75
T200 So. Killingly F.D. 150
T201 Killingly Williamsville F.D. 5,325
T202 Manchester Eighth Util. 55,013
T203 Middletown South F.D. 165,713
T204 Middletown Westfield F.D. 8,805
T205 Middletown City Fire 27,038
T206 New Htfd. Village F.D. #1 5,664
T207 New Htfd Pine Meadow #3 104
T208 New Htfd South End F.D. 8
T209 Plainfield Central Village F.D. 1,167
T210 Plainfield Moosup F.D. 1,752
T211 Plainfield F.D. #255 1,658
T212 Plainfield Wauregan F.D. 4,360
T213 Pomfret F.D. 841
T214 Putnam E. Putnam F.D. 8,196
T215 Putnam W. Putnam F.D. 0
T216 Simsbury F.D. 2,135
T217 Stafford Springs Service Dist. 12,400
T218 Sterling F.D. 1,034
T219 Stonington Mystic F.D. 478
T220 Stonington Old Mystic F.D. 1,999
T221 Stonington Pawcatuck F.D. 4,424
T222 Stonington Quiambaug F.D. 65
T223 Stonington F.D. 0
T224 Stonington Wequetequock F.D. 58
T225 Trumbull Center 461
T226 Trumbull Long Hill F.D. 889
T227 Trumbull Nichols F.D. 3,102
T228 Watertown F.D. 0
T229 West Haven Allingtown F.D. (3) 17,230
T230 W. Haven First Ctr Fire Taxn (1) 7,410
T231 West Haven West Shore F.D. (2) 29,445
T232 Windsor Wilson F.D. 170
T233 Windsor F.D. 38
T234 Windham First 7,096
T235
T236 GRAND TOTAL $49,875,871
T1
Municipality
Grant Amounts
T2
T3
Andover
$2,929
T4
Ansonia
70,732
T5
Ashford
2,843
T6
Avon
213,211
T7
Barkhamsted
33,100
T8
Beacon Falls
38,585
T9
Berlin
646,080
T10
Bethany
54,901
T11
Bethel
229,948
T12
Bethlehem
6,305
T13
Bloomfield
1,446,585
T14
Bolton
19,812
T15
Bozrah
110,715
T16
Branford
304,496
T17
Bridgeport
839,881
T18
Bridgewater
491
T19
Bristol
2,066,321
T20
Brookfield
97,245
T21
Brooklyn
8,509
T22
Burlington
14,368
T23
Canaan
17,075
T24
Canterbury
1,610
T25
Canton
6,344
T26
Chaplin
554
T27
Cheshire
598,668
T28
Chester
71,130
T29
Clinton
168,444
T30
Colchester
31,069
T31
Colebrook
436
T32
Columbia
21,534
T33
Cornwall
0
T34
Coventry
8,359
T35
Cromwell
27,780
T36
Danbury
1,534,876
T37
Darien
0
T38
Deep River
86,478
T39
Derby
12,218
T40
Durham
122,637
T41
Eastford
43,436
T42
East Granby
430,285
T43
East Haddam
1,392
T44
East Hampton
15,087
T45
East Hartford
3,576,349
T46
East Haven
62,435
T47
East Lyme
17,837
T48
Easton
2,111
T49
East Windsor
237,311
T50
Ellington
181,426
T51
Enfield
219,004
T52
Essex
80,826
T53
Fairfield
82,908
T54
Farmington
440,541
T55
Franklin
18,317
T56
Glastonbury
202,935
T57
Goshen
2,101
T58
Granby
28,727
T59
Greenwich
70,905
T60
Griswold
35,790
T61
Groton
1,373,459
T62
Guilford
55,611
T63
Haddam
2,840
T64
Hamden
230,771
T65
Hampton
0
T66
Hartford
1,184,209
T67
Hartland
758
T68
Harwinton
17,272
T69
Hebron
1,793
T70
Kent
0
T71
Killingly
567,638
T72
Killingworth
4,149
T73
Lebanon
24,520
T74
Ledyard
296,297
T75
Lisbon
2,923
T76
Litchfield
2,771
T77
Lyme
0
T78
Madison
6,880
T79
Manchester
861,979
T80
Mansfield
5,502
T81
Marlborough
5,890
T82
Meriden
721,037
T83
Middlebury
67,184
T84
Middlefield
198,671
T85
Middletown
1,594,059
T86
Milford
1,110,891
T87
Monroe
151,649
T88
Montville
356,761
T89
Morris
2,926
T90
Naugatuck
274,100
T91
New Britain
1,182,061
T92
New Canaan
159
T93
New Fairfield
912
T94
New Hartford
110,586
T95
New Haven
1,175,481
T96
Newington
758,790
T97
New London
30,182
T98
New Milford
628,728
T99
Newtown
192,643
T100
Norfolk
5,854
T101
North Branford
243,540
T102
North Canaan
304,560
T103
North Haven
1,194,569
T104
North Stonington
0
T105
Norwalk
328,472
T106
Norwich
161,111
T107
Old Lyme
1,528
T108
Old Saybrook
38,321
T109
Orange
85,980
T110
Oxford
72,596
T111
Plainfield
120,563
T112
Plainville
443,937
T113
Plymouth
124,508
T114
Pomfret
22,677
T115
Portland
73,590
T116
Preston
0
T117
Prospect
56,300
T118
Putnam
139,075
T119
Redding
1,055
T120
Ridgefield
452,270
T121
Rocky Hill
192,142
T122
Roxbury
478
T123
Salem
3,740
T124
Salisbury
66
T125
Scotland
6,096
T126
Seymour
255,384
T127
Sharon
0
T128
Shelton
483,928
T129
Sherman
0
T130
Simsbury
62,846
T131
Somers
72,769
T132
Southbury
16,678
T133
Southington
658,809
T134
South Windsor
1,084,232
T135
Sprague
334,376
T136
Stafford
355,770
T137
Stamford
407,895
T138
Sterling
19,506
T139
Stonington
80,628
T140
Stratford
2,838,621
T141
Suffield
152,561
T142
Thomaston
315,229
T143
Thompson
62,329
T144
Tolland
75,056
T145
Torrington
486,957
T146
Trumbull
163,740
T147
Union
0
T148
Vernon
121,917
T149
Voluntown
1,589
T150
Wallingford
1,589,756
T151
Warren
235
T152
Washington
231
T153
Waterbury
2,076,795
T154
Waterford
27,197
T155
Watertown
521,334
T156
Westbrook
214,436
T157
West Hartford
648,560
T158
West Haven
137,765
T159
Weston
366
T160
Westport
0
T161
Wethersfield
17,343
T162
Willington
15,891
T163
Wilton
247,801
T164
Winchester
249,336
T165
Windham
369,559
T166
Windsor
1,078,969
T167
Windsor Locks
1,567,628
T168
Wolcott
189,485
T169
Woodbridge
27,108
T170
Woodbury
45,172
T171
Woodstock
55,097
T172
T173
Borough of Danielson
0
T174
Borough Jewett City
3,329
T175
Borough Stonington
0
T176
T177
Barkhamsted F.D.
1,996
T178
Berlin - Kensington F.D.
9,430
T179
Berlin - Worthington F.D.
747
T180
Bloomfield Center Fire
3,371
T181
Bloomfield Blue Hills
88,142
T182
Canaan F.D. (no fire district)
0
T183
Cromwell F.D.
1,662
T184
Enfield F.D. (1)
12,688
T185
Enfield Thompsonville (2)
2,814
T186
Enfield Haz'dv'l F.D. (3)
1,089
T187
Enfield N.Thmps'nv'l F.D. (4)
55
T188
Enfield Shaker Pines (5)
5,096
T189
Groton - City
241,680
T190
Groton Sewer
1,388
T191
Groton Mystic F.D. #3
19
T192
Groton Noank F.D. #4
0
T193
Groton Old Mystic F.D. #5
1,610
T194
Groton Poquonnock Br. #2
17,967
T195
Groton W. Pleasant Valley
0
T196
Killingly Attawaugan F.D.
1,457
T197
Killingly Dayville F.D.
33,885
T198
Killingly Dyer Manor
1,157
T199
E. Killingly F.D.
75
T200
So. Killingly F.D.
150
T201
Killingly Williamsville F.D.
5,325
T202
Manchester Eighth Util.
55,013
T203
Middletown South F.D.
165,713
T204
Middletown Westfield F.D.
8,805
T205
Middletown City Fire
27,038
T206
New Htfd. Village F.D. #1
5,664
T207
New Htfd Pine Meadow #3
104
T208
New Htfd South End F.D.
8
T209
Plainfield Central Village F.D.
1,167
T210
Plainfield Moosup F.D.
1,752
T211
Plainfield F.D. #255
1,658
T212
Plainfield Wauregan F.D.
4,360
T213
Pomfret F.D.
841
T214
Putnam E. Putnam F.D.
8,196
T215
Putnam W. Putnam F.D.
0
T216
Simsbury F.D.
2,135
T217
Stafford Springs Service Dist.
12,400
T218
Sterling F.D.
1,034
T219
Stonington Mystic F.D.
478
T220
Stonington Old Mystic F.D.
1,999
T221
Stonington Pawcatuck F.D.
4,424
T222
Stonington Quiambaug F.D.
65
T223
Stonington F.D.
0
T224
Stonington Wequetequock F.D.
58
T225
Trumbull Center
461
T226
Trumbull Long Hill F.D.
889
T227
Trumbull Nichols F.D.
3,102
T228
Watertown F.D.
0
T229
West Haven Allingtown F.D. (3)
17,230
T230
W. Haven First Ctr Fire Taxn (1)
7,410
T231
West Haven West Shore F.D. (2)
29,445
T232
Windsor Wilson F.D.
170
T233
Windsor F.D.
38
T234
Windham First
7,096
T235
T236
GRAND TOTAL
$49,875,871
(2) The amount of the grant payable to each municipality in any year in accordance with this subsection shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount available in the municipal revenue sharing account established pursuant to subsection (a) of this section with respect to such year.
(3) Notwithstanding any provision of the general statutes, any municipality that, prior to June 30, 2011, was overpaid under the program set forth in section 12-94b of the general statutes, revision of 1958, revised to January 1, 2011, shall have such overpayments deducted from any grant payable pursuant to this section.
(4) Notwithstanding any provision of the general statutes, not later than August 15, 2012, a payment shall be made to the town of Ledyard in the amount of $39,411 and to the town of Montville in the amount of $62,954. Such payments shall be in addition to any other payments said towns may receive from the municipal revenue sharing account pursuant to this subsection.
(c) On or before October 1, 2015, and annually thereafter, the secretary shall distribute grants to regional councils of governments for the purposes of sections 2 and 3 of this act.
[(c)] (d) If there are moneys available in the municipal revenue sharing account after all grants are made pursuant to [subsection (b)] subsections (b) and (c) of this section, the secretary shall distribute the remaining funds as follows: (1) Fifty per cent of such funds shall be distributed to municipalities on a per capita basis, as determined by the most recent federal decennial census, and (2) fifty per cent shall be distributed in accordance with the formula in subsection (e) of section 3-55j using population information from the most recent federal decennial census, the 2007 equalized net grand list and 1999 per capita income.
Sec. 5. Subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or from the rendering of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate of six and thirty-five-hundredths per cent, the rates provided in subparagraphs (B) to (H), inclusive, of this subdivision;
(B) At a rate of fifteen per cent with respect to each transfer of occupancy, from the total amount of rent received for such occupancy of any room or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;
(C) With respect to the sale of a motor vehicle to any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse thereof, at a rate of four and one-half per cent of the gross receipts of any retailer from such sales, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;
(D) (i) With respect to the sales of computer and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent, on or after July 1, 2001, at the rate of one per cent, and (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;
(E) (i) With respect to the sales of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(ii) With respect to the sale of a vessel, such sale shall be exempt from such tax provided such vessel is docked in this state for sixty or fewer days in a calendar year;
(F) With respect to patient care services for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;
(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;
(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven per cent on the entire sales price. For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;
(I) The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate which represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date of the new rate and delivery is made within ninety days after the effective date of the new rate. For the purposes of payment of the tax imposed under this section, any retailer of services taxable under subparagraph (I) of subdivision (2) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered; [and]
(J) For calendar quarters ending on or after September 30, 2011, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision; and
(K) For calendar quarters ending on or after September 30, 2015, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l, as amended by this act, one-fourth of one per cent of the amounts received by the state from the tax imposed under this section.
Sec. 6. Subdivision (1) of section 12-411 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(1) (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchased from any retailer for storage, acceptance, consumption or any other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either within or without this state, for storage, acceptance, consumption or any other use by such person in this state, to be measured by the sales price of materials, at the rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate of six and thirty-five-hundredths per cent;
(B) At a rate of fifteen per cent of the rent paid for occupancy of any room or rooms in a hotel or lodging house for the first period of not more than thirty consecutive calendar days;
(C) With respect to the storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse of such individual at a rate of four and one-half per cent of the sales price of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;
(D) (i) With respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(ii) With respect to the storage, acceptance or other use of a vessel in this state, such storage, acceptance or other use shall be exempt from such tax, provided such vessel is docked in this state for sixty or fewer days in a calendar year;
(E) (i) With respect to the acceptance or receipt in this state of computer and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent of such services, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent of such services, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent of such services, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent of such services, on and after July 1, 2001, at the rate of one per cent of such services, and (ii) with respect to the acceptance or receipt in this state of Internet access services, on or after July 1, 2001, such services shall be exempt from tax;
(F) With respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;
(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;
(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven per cent on the entire sales price. For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles; [and]
(I) For calendar quarters ending on or after September 30, 2011, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision; and
(J) For calendar quarters ending on or after September 30, 2015, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l, as amended by this act, one-fourth of one per cent of the amounts received by the state from the tax imposed under this section.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2015 4-124i
Sec. 2 October 1, 2015 New section
Sec. 3 October 1, 2015, and applicable to assessment years commencing on or after October 1, 2015 New section
Sec. 4 October 1, 2015 4-66l
Sec. 5 October 1, 2015 12-408(1)
Sec. 6 October 1, 2015 12-411(1)
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2015
4-124i
Sec. 2
October 1, 2015
New section
Sec. 3
October 1, 2015, and applicable to assessment years commencing on or after October 1, 2015
New section
Sec. 4
October 1, 2015
4-66l
Sec. 5
October 1, 2015
12-408(1)
Sec. 6
October 1, 2015
12-411(1)
Statement of Purpose:
To encourage regional cooperation under the property tax by permitting regional councils of government to enter into agreements to create efficiencies and provide funding for municipalities to reduce the property tax on new motor vehicles.
[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.]