General Assembly Raised Bill No. 7314
January Session, 2017 LCO No. 5168
*05168_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
General Assembly
Raised Bill No. 7314
January Session, 2017
LCO No. 5168
*05168_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
AN ACT CONCERNING A TAX ON CERTAIN SWEETENED BEVERAGES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2017, and applicable to sales occurring on or after July 1, 2017) (a) As used in this section:
(1) (A) "Caloric sweetener" means sugar or any form of sugar-based substance, including, but not limited to, sucrose, fructose, glucose, high-fructose corn syrup, honey or maple syrup, that adds calories to a beverage.
(B) "Caloric sweetener" does not include a sugar substitute, an artificial sweetener approved by the federal Food and Drug Administration or a nonnutritive sweetener, including, but not limited to, aspartame, saccharin, stevia or sucralose, that does not add calories to a beverage.
(2) "Milk" means fluid milk, regardless of animal or plant source or butterfat content, and includes natural milk concentrate, whether or not reconstituted, and milk powder or evaporated milk, whether or not reconstituted;
(3) "Nonalcoholic beverage" means any beverage that contains less than one-half of one per cent of alcohol by volume;
(4) "Person" has the same meaning as provided in section 12-1 of the general statutes;
(5) "Retailer" has the same meaning as described in section 12-407 of the general statutes; and
(6) (A) "Sweetened beverage" means any prepackaged, carbonated or noncarbonated nonalcoholic beverage that (i) is intended for human consumption, (ii) is ready for consumption without further processing such as dilution or carbonation, and (iii) contains added caloric sweetener.
(B) "Sweetened beverage" does not include (i) milk or any beverage in which milk is the primary ingredient or is the first listed ingredient, regardless of sugar content, (ii) dairy or nondairy creamer, regardless of sugar content, (iii) any beverage that is one hundred per cent juice, (iv) infant formula, (v) medical food, as defined in 21 USC 360ee, as amended from time to time, (vi) any product in liquid form that is (I) designed as oral nutrition therapy for individuals who may have a limited ability to absorb or metabolize dietary nutrients from traditional food or beverages, or (II) an oral rehydration electrolyte solution to prevent or treat dehydration, (vii) any product sold in liquid form that is designed as supplemental, meal replacement or sole-source nutrition and includes proteins, carbohydrates and multiple vitamins and minerals, or (viii) any product sold in liquid form that is designed for use for weight reduction.
(b) There is imposed a tax on the purchase at retail of any sweetened beverage at the rate of one cent per ounce of such beverage. Such tax shall be in addition to any other tax applicable to such purchase and shall be paid by the consumer to the retailer. Each retailer shall collect from the consumer the full amount of the tax imposed by this subsection.
(c) (1) Each retailer shall submit monthly to the Commissioner of Revenue Services, on or before the last day of the month next succeeding each monthly period, (A) the tax collected pursuant to subsection (b) of this section, and (B) a return for the preceding period in such form as the commissioner may prescribe. Such return shall be signed by the person required to file the return or by such person's authorized agent but need not be verified by oath, except that a return required to be filed by a corporation shall be signed by an officer of such corporation. Any moneys received by the commissioner pursuant to this subdivision shall be deposited into the account established pursuant to subsection (h) of this section.
(2) If any retailer fails to remit the tax collected pursuant to subsection (b) of this section within the time specified, the commissioner shall impose a civil penalty of fifteen per cent of the tax due or fifty dollars, whichever is greater, plus interest on the tax due at the rate of one per cent per month or fraction thereof, from the date such tax was due to the date of remittance.
(d) (1) If the commissioner deems it necessary to ensure payment or facilitate collection of the tax, the commissioner may permit or require a retailer to remit the tax or file returns on other than a monthly basis.
(2) The commissioner may extend, upon written request from a retailer and for good cause, the time for remitting any amount or filing a return under subsection (c) of this section, provided such request is (A) accompanied by a payment of estimated tax and a tentative return, and (B) submitted to the commissioner on or before the last day such return is required to be filed. Any retailer that receives an extension under this subdivision shall pay interest on the tax due at the rate of one per cent per month or fraction thereof from the date such tax was due to the date of remittance.
(e) Subject to the provisions of section 12-3a of the general statutes, the commissioner may waive all or part of the penalties provided under this section when it is proven to the commissioner's satisfaction that the failure to remit the tax was due to reasonable cause and was not intentional or due to neglect.
(f) The provisions of sections 12-548 to 12-554, inclusive, of the general statutes and section 12-555a of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections had been incorporated in full into this section and had expressly referred to the tax imposed under this section, except to the extent that any such provision is inconsistent with a provision of this section.
(g) The commissioner may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, and make rulings, not inconsistent with law, to carry into effect the provisions of this section, which regulations or rulings, when reasonably designed to carry out the intent and purpose of this section, shall be prima facie evidence of its proper interpretation. The commissioner shall publish, at least annually and more often at the commissioner's discretion, all regulations adopted pursuant to this section and such rulings as appear to the commissioner to be of general interest.
(h) (1) There is established an account to be known as the "sweetened beverage tax 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 (A) the Commissioner of Early Childhood for the purposes of the Care 4 Kids program, (B) the Commissioner of Public Health for public education and outreach efforts regarding obesity, childhood obesity, heart disease and diabetes, and (C) on or after October 1, 2018, the Rudd Center for Food Policy and Obesity at The University of Connecticut for the purposes of the evaluations set forth in subdivision (2) of this subsection.
(2) Beginning October 1, 2018, the Rudd Center for Food Policy and Obesity at The University of Connecticut shall evaluate, in conjunction with the Commissioners of Early Childhood, Public Health and Revenue Services, the impact of the tax imposed under subsection (b) of this section on rates of obesity, childhood obesity, heart disease and diabetes in the state. Not later than January 1, 2019, and annually thereafter, said center shall submit a report of its findings, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, children and public health.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2017, and applicable to sales occurring on or after July 1, 2017 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2017, and applicable to sales occurring on or after July 1, 2017
New section
Statement of Purpose:
To impose a tax of one cent per ounce on certain carbonated and noncarbonated nonalcoholic beverages that contain added caloric sweetener, and to use such moneys for certain education and outreach programs and evaluations.
[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.]