Connecticut 2017 Regular Session

Connecticut Senate Bill SB00787 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	General Assembly Substitute Bill No. 787
2		-	January Session, 2017 _____SB00787FIN___042817____
	1	+	General Assembly Governor's Bill No. 787
	2	+	January Session, 2017 LCO No. 3787
	3	+	03787__________
	4	+	Referred to Committee on FINANCE, REVENUE AND BONDING
	5	+	Introduced by:
	6	+	SEN. LOONEY, 11th Dist. SEN. DUFF, 25th Dist. REP. ARESIMOWICZ, 30th Dist. REP. RITTER M., 1st Dist.
3	7
4	8		General Assembly
5	9
6		-	~~Substitute~~ Bill No. 787
	10	+	Governor's Bill No. 787
7	11
8	12		January Session, 2017
9	13
10		-	_____SB00787FIN___042817____
11		-
12		-	AN ACT CONCERNING REVENUE.
	14	+	LCO No. 3787
	15	+
	16	+	03787__________
	17	+
	18	+	Referred to Committee on FINANCE, REVENUE AND BONDING
	19	+
	20	+	Introduced by:
	21	+
	22	+	SEN. LOONEY, 11th Dist.
	23	+
	24	+	SEN. DUFF, 25th Dist.
	25	+
	26	+	REP. ARESIMOWICZ, 30th Dist.
	27	+
	28	+	REP. RITTER M., 1st Dist.
	29	+
	30	+	AN ACT CONCERNING REVENUE ITEMS TO IMPLEMENT THE GOVERNOR'S BUDGET.
13	31
14	32		Be it enacted by the Senate and House of Representatives in General Assembly convened:
15	33
16		-	Section 1. (Effective from passage) (a) For purposes of this section, "qualified taxpayer" means a taxpayer that: (1) Failed to file a tax return, or failed to report the full amount of tax properly due on a previously filed tax return, that was due on or before December 31, 2016; (2) voluntarily comes forward prior to receiving a billing notice or a notice from the Department of Revenue Services that an audit is being conducted in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (3) is not a party to a closing agreement with the Commissioner of Revenue Services in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (4) has not made an offer of compromise that has been accepted by the commissioner in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (5) has not protested a determination of an audit for the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (6) is not a party to litigation against the commissioner in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; and (7) makes application for a fresh start agreement in the form and manner prescribed by the commissioner.
	34	+	Section 1. (Effective from passage) Each department head, as defined in section 4-5 of the general statutes, other than the Secretary of the Office of Policy and Management, shall undertake a review of the fees collected by his or her department and determine whether each fee is sufficient to cover the department's costs to collect such fee and administer the program associated with such fee. Each department head shall submit, taking such costs into consideration, any recommended fee increases to said secretary before December 1, 2017. Said secretary shall review each department head's submission and submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding not later than February 7, 2018, of any recommended increases of up to fifty per cent of any existing fee, provided the total amount of the increase in fees shall not exceed twenty million dollars.
	35	+
	36	+	Sec. 2. (Effective from passage) (a) For purposes of this section, "qualified taxpayer" means a taxpayer that: (1) Failed to file a tax return, or failed to report the full amount of tax properly due on a previously filed tax return, that was due on or before December 31, 2016; (2) voluntarily comes forward prior to receiving a billing notice or a notice from the Department of Revenue Services that an audit is being conducted in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (3) is not a party to a closing agreement with the Commissioner of Revenue Services in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (4) has not made an offer of compromise that has been accepted by the commissioner in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (5) has not protested a determination of an audit for the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; (6) is not a party to litigation against the commissioner in relation to the tax type and taxable period or periods for which the taxpayer is seeking a fresh start agreement; and (7) makes application for a fresh start agreement in the form and manner prescribed by the commissioner.
17	37
18	38		(b) Notwithstanding the provisions of any other law, the Commissioner of Revenue Services is authorized to implement a fresh start program and may, at the commissioner's sole discretion, enter into fresh start agreements with qualified taxpayers during the period from July 1, 2017, to October 31, 2018, inclusive, except taxes imposed under chapter 222 of the general statutes shall not be eligible for a fresh start agreement. Any fresh start agreement shall provide for (1) the waiver of all penalties that may be imposed under title 12 of the general statutes, and (2) the waiver of fifty per cent of the interest related to a failure to pay any amount due to the commissioner by the date prescribed for payment. A fresh start agreement for a qualified taxpayer that has failed to file a tax return or returns may also provide for a limited look-back period.
19	39
20	40		(c) As part of any fresh start agreement, a qualified taxpayer shall: (1) Voluntarily and fully disclose on the application all material facts pertinent to such taxpayer's liability for taxes due to the commissioner; (2) file any tax returns or documents that may be required by the commissioner; (3) pay in full the tax and interest as set forth in the fresh start agreement in the form and manner prescribed by the commissioner; (4) agree to timely file any required tax returns and pay any associated tax obligations to this state for a period of three years after the date the fresh start agreement is signed by the parties to such agreement; and (5) waive, for the taxable period or periods for which the commissioner has agreed to waive penalties and interest, all administrative and judicial rights of appeal that have not run or expired.
21	41
22	42		(d) Notwithstanding the provisions of subsections (a) to (c), inclusive, of this section or of any fresh start agreement, the waiver of penalties and interest shall not be binding on the commissioner if the commissioner finds that any of the following circumstances exist: (1) The qualified taxpayer misrepresented any material fact in applying for or entering into the fresh start agreement; (2) the qualified taxpayer fails to provide any information required for any taxable period covered by the fresh start agreement on or before the due date prescribed under the terms of the fresh start agreement; (3) the qualified taxpayer fails to pay any tax, penalty or interest due in the time, form or manner prescribed under the terms of the fresh start agreement; (4) the tax reported by the qualified taxpayer for any taxable period covered by the fresh start agreement, including any amount shown on an amended tax return, understates by ten per cent or more the tax due and such taxpayer cannot demonstrate to the satisfaction of the commissioner that a good faith effort was made to accurately compute the tax; or (5) the qualified taxpayer fails to timely file any required tax returns or pay any associated tax obligations to this state, during the three-year period after the date the fresh start agreement was signed by the parties to such agreement. No payment made by a qualified taxpayer for a taxable period covered by a fresh start agreement shall be refunded to such taxpayer or credited to a taxable period other than the taxable period for which such payment was made.
23	43
24		-	Sec. 2. Subsection (e) of section 12-704e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2017):
25		-
26		-	(e) For purposes of this section, "applicable percentage" means [thirty] twenty-seven and one-half per cent. [, except (1) for the taxable year commencing on January 1, 2013, "applicable percentage" means twenty-five per cent, and (2) for taxable years commencing on or after January 1, 2014, but prior to January 1, 2017, "applicable percentage" means twenty-seven and one-half per cent.]
27		-
28		-	Sec. 3. (NEW) (Effective January 1, 2018) (a) For taxable years commencing on or after January 1, 2018, there shall be allowed a credit against the personal income tax imposed under chapter 229 of the general statutes for individuals who (1) are employed in this state, (2) receive, on or after January 1, 2018, a bachelor's, master's or doctoral degree in a science, technology, engineering or math-related field, from an institution of higher education in this or another state, and (3) (A) reside in this state, or (B) move to this state within two years after receiving such degree. Such credit shall be in the amount of five hundred dollars and may be claimed for the five successive taxable years after the date of graduation, provided the requirements under subdivisions (1) to (3), inclusive, are met in each taxable year.
29		-
30		-	(b) If the amount of the credit allowed pursuant to subsection (a) of this section exceeds the individual's liability for the personal income tax imposed under chapter 229 of the general statutes, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 of the general statutes or 12-742 of the general statutes, shall refund the amount of such excess, without interest, to the individual.
31		-
32		-	(c) Any individual claiming a credit under subsection (a) of this section shall provide any documentation required by the Commissioner of Revenue Services in a form and manner prescribed by said commissioner.
33		-
34		-	Sec. 4. Subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2019, and applicable to taxable years commencing on or after January 1, 2019):
35		-
36		-	(B) There shall be subtracted therefrom (i) to the extent properly includable in gross income for federal income tax purposes, any income with respect to which taxation by any state is prohibited by federal law, (ii) to the extent allowable under section 12-718, exempt dividends paid by a regulated investment company, (iii) the amount of any refund or credit for overpayment of income taxes imposed by this state, or any other state of the United States or a political subdivision thereof, or the District of Columbia, to the extent properly includable in gross income for federal income tax purposes, (iv) to the extent properly includable in gross income for federal income tax purposes and not otherwise subtracted from federal adjusted gross income pursuant to clause (x) of this subparagraph in computing Connecticut adjusted gross income, any tier 1 railroad retirement benefits, (v) to the extent any additional allowance for depreciation under Section 168(k) of the Internal Revenue Code, as provided by Section 101 of the Job Creation and Worker Assistance Act of 2002, for property placed in service after December 31, 2001, but prior to September 10, 2004, was added to federal adjusted gross income pursuant to subparagraph (A)(ix) of this subdivision in computing Connecticut adjusted gross income for a taxable year ending after December 31, 2001, twenty-five per cent of such additional allowance for depreciation in each of the four succeeding taxable years, (vi) to the extent properly includable in gross income for federal income tax purposes, any interest income from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, (vii) to the extent properly includable in determining the net gain or loss from the sale or other disposition of capital assets for federal income tax purposes, any gain from the sale or exchange of obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, in the income year such gain was recognized, (viii) any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such interest on indebtedness is not deductible in determining federal adjusted gross income and is attributable to a trade or business carried on by such individual, (ix) ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject to taxation under this chapter but exempt from federal income tax, or the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such expenses and premiums are not deductible in determining federal adjusted gross income and are attributable to a trade or business carried on by such individual, [(x) (I) for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than sixty thousand dollars or a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is less than sixty thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes; and (II) for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or as a married individual filing separately whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is sixty thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is sixty thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code] (x) an amount equal to the Social Security benefits includable for federal income tax purposes, (xi) to the extent properly includable in gross income for federal income tax purposes, any amount rebated to a taxpayer pursuant to section 12-746, (xii) to the extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, any distribution to such beneficiary from any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state, (xiii) to the extent allowable under section 12-701a, contributions to accounts established pursuant to any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state, (xiv) to the extent properly includable in gross income for federal income tax purposes, the amount of any Holocaust victims' settlement payment received in the taxable year by a Holocaust victim, (xv) to the extent properly includable in gross income for federal income tax purposes of an account holder, as defined in section 31-51ww, interest earned on funds deposited in the individual development account, as defined in section 31-51ww, of such account holder, (xvi) to the extent properly includable in the gross income for federal income tax purposes of a designated beneficiary, as defined in section 3-123aa, interest, dividends or capital gains earned on contributions to accounts established for the designated beneficiary pursuant to the Connecticut Homecare Option Program for the Elderly established by sections 3-123aa to 3-123ff, inclusive, (xvii) to the extent properly includable in gross income for federal income tax purposes, any income received from the United States government as retirement pay for a retired member of (I) the Armed Forces of the United States, as defined in Section 101 of Title 10 of the United States Code, or (II) the National Guard, as defined in Section 101 of Title 10 of the United States Code, (xviii) to the extent properly includable in gross income for federal income tax purposes for the taxable year, any income from the discharge of indebtedness in connection with any reacquisition, after December 31, 2008, and before January 1, 2011, of an applicable debt instrument or instruments, as those terms are defined in Section 108 of the Internal Revenue Code, as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009, to the extent any such income was added to federal adjusted gross income pursuant to subparagraph (A)(xi) of this subdivision in computing Connecticut adjusted gross income for a preceding taxable year, (xix) to the extent not deductible in determining federal adjusted gross income, the amount of any contribution to a manufacturing reinvestment account established pursuant to section 32-9zz in the taxable year that such contribution is made, and (xx) to the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2015, ten per cent of the income received from the state teachers' retirement system, for the taxable year commencing January 1, 2016, twenty-five per cent of the income received from the state teachers' retirement system, and for the taxable year commencing January 1, 2017, and each taxable year thereafter, fifty per cent of the income received from the state teachers' retirement system.
37		-
38		-	Sec. 5. Section 12-391 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018):
39		-
40		-	(a) With respect to estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be the amount of the federal credit allowable for estate, inheritance, legacy and succession taxes paid to any state or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as part of or in connection with the estate of such decedent. If real or tangible personal property of such decedent is located outside [of] this state and is subject to estate, inheritance, legacy, or succession taxes by any state or states, other than the state of Connecticut, or by the District of Columbia for which such federal credit is allowable, the amount of tax due under this section shall be reduced by the lesser of: (1) The amount of any such taxes paid to such other state or states or said district and allowed as a credit against the federal estate tax; or (2) an amount computed by multiplying such federal credit by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which such other state or states or said district have jurisdiction for estate tax purposes to the same extent to which this state would assert jurisdiction for estate tax purposes under this chapter with respect to the residents of such other state or states or said district, and (B) the denominator of which is the value of the decedent's gross estate. Property of a resident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state, tangible personal property having an actual situs in this state, and intangible personal property owned by the decedent, regardless of where it is located. The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.
	44	+	Sec. 3. Subsection (a) of section 22a-244 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	45	+
	46	+	(a) (1) Every beverage container containing a carbonated beverage sold or offered for sale in this state, except for any such beverage containers sold or offered for sale for consumption on an interstate passenger carrier, shall have a refund value. Such refund value shall not be less than (A) five cents prior to July 1, 2018, and (B) ten cents on or after July 1, 2018, and shall be a uniform amount throughout the distribution process in this state. (2) Every beverage container containing a noncarbonated beverage sold or offered for sale in this state shall have a refund value, except for beverage containers containing a noncarbonated beverage that are (A) sold or offered for sale for consumption on an interstate passenger carrier, or (B) that comprise any dealer's existing inventory as of March 31, 2009. Such refund value shall not be less than five cents and shall be a uniform amount throughout the distribution process in this state.
	47	+
	48	+	Sec. 4. Section 12-202 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	49	+
	50	+	Each domestic insurance company shall, annually, pay a tax on the total net direct premiums received by such company during the calendar year next preceding from policies written on property or risks located or resident in this state. The rate of tax on all net direct insurance premiums received (1) on [and] or after January 1, 1995, and prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent. The franchise tax imposed under this section on premium income for the privilege of doing business in the state is in addition to the tax imposed under chapter 208. In the case of any local domestic insurance company the admitted assets of which as of the end of an income year do not exceed ninety-five million dollars, eighty per cent of the tax paid by such company under chapter 208 during such income year reduced by any refunds of taxes paid by such company and granted under said chapter within such income year and eighty per cent of the assessment paid by such company under section 38a-48 during such income year shall be allowed as a credit in the determination of the tax under this chapter payable with respect to total net direct premiums received during such income year, provided [that] these two credits shall not reduce the tax under this chapter to less than zero, and provided further in the case of a local domestic insurance company [which] that is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply if the total admitted assets of the local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars or, in the alternative, in the case of a local domestic insurance company [which] that is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply only if total direct written premiums are derived from policies issued or delivered in Connecticut, on risk located in Connecticut and, as of the end of the income year the company and its affiliates have admitted assets minus unpaid losses and loss adjustment expenses that are also discounted for federal and state tax purposes and which for said local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars.
	51	+
	52	+	Sec. 5. Subsection (a) of section 12-202a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	53	+
	54	+	(a) Each health care center, as defined in section 38a-175, that is governed by sections 38a-175 to 38a-192, inclusive, shall pay a tax to the Commissioner of Revenue Services for the calendar year commencing [on] January 1, 1995, and annually thereafter [, at the rate of one and three-quarters per cent of] on the total net direct subscriber charges received by such health care center during each such calendar year on any new or renewal contract or policy approved by the Insurance Commissioner under section 38a-183. The rate of tax on the total net direct subscriber charges received (1) prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent. Such payment shall be in addition to any other payment required under section 38a-48.
	55	+
	56	+	Sec. 6. Subsection (b) of section 12-210 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	57	+
	58	+	(b) Each insurance company incorporated by or organized under the laws of any other state or foreign government and doing business in this state shall, annually, on and after January 1, 1995, pay to said [Commissioner of Revenue Services] commissioner, in addition to any other taxes imposed on such company or its agents, a tax [of one and three-quarters per cent of] on all net direct premiums received by such company in the calendar year next preceding from policies written on property or risks located or resident in this state, excluding premiums for ocean marine insurance, and, upon ceasing to transact new business in this state, shall continue to pay a tax upon the renewal premiums derived from its business remaining in force in this state at the rate [which] that was applicable when such company ceased to transact new business in this state. The rate of tax on all net direct premiums received (1) prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent.
	59	+
	60	+	Sec. 7. Subsection (a) of section 12-211a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	61	+
	62	+	(a) (1) Notwithstanding any provision of the general statutes, and except as otherwise provided in subdivision (5) of this subsection or in subsection (b) of this section, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for any calendar year shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to such calendar year of the taxpayer prior to the application of such credit or credits.
	63	+
	64	+	(2) For the calendar year commencing January 1, 2011, "type one tax credits" means tax credits allowable under section 12-217jj, as amended by this act, 12-217kk or 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
	65	+
	66	+	(3) For the calendar year commencing January 1, 2012, "type one tax credits" means the tax credit allowable under section 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
	67	+
	68	+	(4) For [the] calendar years commencing on or after January 1, 2013, [January 1, 2014, January 1, 2015, and January 1, 2016,] "type one tax credits" means the tax credit allowable under sections 12-217jj, as amended by this act, 12-217kk and 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
	69	+
	70	+	(5) For calendar years commencing on or after January 1, 2011, [and prior to January 1, 2017,] and subject to the provisions of subdivisions (2), (3) and (4) of this subsection, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter shall not exceed:
	71	+
	72	+	(A) If the tax credit or credits being claimed by a taxpayer are type three tax credits only, thirty per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits.
	73	+
	74	+	(B) If the tax credit or credits being claimed by a taxpayer are type one tax credits and type three tax credits, but not type two tax credits, fifty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits, provided (i) type three tax credits shall be claimed before type one tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, and (iii) the sum of the type one tax credits and the type three tax credits being claimed may not exceed the fifty-five per cent threshold.
	75	+
	76	+	(C) If the tax credit or credits being claimed by a taxpayer are type two tax credits and type three tax credits, but not type one tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits, provided (i) type three tax credits shall be claimed before type two tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, and (iii) the sum of the type two tax credits and the type three tax credits being claimed may not exceed the seventy per cent threshold.
	77	+
	78	+	(D) If the tax credit or credits being claimed by a taxpayer are type one tax credits, type two tax credits and type three tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credits, provided (i) type three tax credits shall be claimed before type one tax credits or type two tax credits are claimed, and the type one tax credits shall be claimed before the type two tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, (iii) the sum of the type one tax credits and the type three tax credits being claimed may not exceed the fifty-five per cent threshold, and (iv) the sum of the type one tax credits, the type two tax credits and the type three tax credits being claimed may not exceed the seventy per cent threshold.
	79	+
	80	+	(E) If the tax credit or credits being claimed by a taxpayer are type one tax credits and type two tax credits only, but not type three tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credits, provided (i) the type one tax credits shall be claimed before type two tax credits are claimed, (ii) the type one tax credits being claimed may not exceed the fifty-five per cent threshold, and (iii) the sum of the type one tax credits and the type two tax credits being claimed may not exceed the seventy per cent threshold.
	81	+
	82	+	Sec. 8. Subparagraph (A) of subdivision (3) of subsection (a) of section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	83	+
	84	+	(3) (A) "Qualified production" means entertainment content created in whole or in part within the state, including motion pictures, except as otherwise provided in this subparagraph; documentaries; long-form, specials, mini-series, series, sound recordings, videos and music videos and interstitials television programming; interactive television; relocated television production; interactive games; videogames; commercials; any format of digital media, including an interactive web site, created for distribution or exhibition to the general public; and any trailer, pilot, video teaser or demo created primarily to stimulate the sale, marketing, promotion or exploitation of future investment in either a product or a qualified production via any means and media in any digital media format, film or videotape, provided such program meets all the underlying criteria of a qualified production. For [the] state fiscal years ending on or after June 30, 2014, [June 30, 2015, June 30, 2016, and June 30, 2017,] "qualified production" shall not include a motion picture that has not been designated as a state-certified qualified production prior to July 1, 2013, and no tax credit voucher for such motion picture may be issued [during said years] for such motion picture, except, for [the] state fiscal years ending on or after June 30, 2015, [June 30, 2016, and June 30, 2017,] "qualified production" shall include a motion picture for which twenty-five per cent or more of the principal photography shooting days are in this state at a facility that receives not less than twenty-five million dollars in private investment and opens for business on or after July 1, 2013, and a tax credit voucher may be issued for such motion picture.
	85	+
	86	+	Sec. 9. Subsection (e) of section 12-704e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2017):
	87	+
	88	+	(e) For purposes of this section, "applicable percentage" means [thirty] twenty-five per cent. [, except (1) for the taxable year commencing on January 1, 2013, "applicable percentage" means twenty-five per cent, and (2) for taxable years commencing on or after January 1, 2014, but prior to January 1, 2017, "applicable percentage" means twenty-seven and one-half per cent.]
	89	+
	90	+	Sec. 10. Section 12-391 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018):
	91	+
	92	+	(a) With respect to estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be the amount of the federal credit allowable for estate, inheritance, legacy and succession taxes paid to any state or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as part of or in connection with the estate of such decedent. If real or tangible personal property of such decedent is located outside of this state and is subject to estate, inheritance, legacy, or succession taxes by any state or states, other than the state of Connecticut, or by the District of Columbia for which such federal credit is allowable, the amount of tax due under this section shall be reduced by the lesser of: (1) The amount of any such taxes paid to such other state or states or said district and allowed as a credit against the federal estate tax; or (2) an amount computed by multiplying such federal credit by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which such other state or states or said district have jurisdiction for estate tax purposes to the same extent to which this state would assert jurisdiction for estate tax purposes under this chapter with respect to the residents of such other state or states or said district, and (B) the denominator of which is the value of the decedent's gross estate. Property of a resident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state, tangible personal property having an actual situs in this state, and intangible personal property owned by the decedent, regardless of where it is located. The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.
41	93
42	94		(b) With respect to the estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state, the amount of which shall be computed by multiplying (1) the federal credit allowable for estate, inheritance, legacy, and succession taxes paid to any state or states or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with the estate of such decedent by (2) a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes and (B) the denominator of which is the value of the decedent's gross estate. Property of a nonresident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state and tangible personal property having an actual situs in this state. The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.
43	95
44	96		(c) For purposes of this section:
45	97
46	98		(1) (A) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, but prior to January 1, 2010. The deduction for state death taxes paid under Section 2058 of said code shall be disregarded.
47	99
48	100		(B) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2015, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005. The deduction for state death taxes paid under Section 2058 of said code shall be disregarded.
49	101
50		-	(C) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2015, but prior to January 1, 2020, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, other than Connecticut taxable gifts that are includable in the gross estate for federal estate tax purposes of the decedent, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death. The deduction for state death taxes paid under Section 2058 of the Internal Revenue Code shall be disregarded.
51		-
52		-	(D) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2020, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent during the three-year period preceding the date of the decedent's death, but excluding (I) any taxable gifts that are includable in the gross estate for federal estate tax purposes of the decedent, (II) any taxable gifts of real estate or tangible personal property located outside this state, and (III) any taxable gifts made by a nonresident of property other than real estate or tangible personal property located within this state, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death. The deduction for state death taxes paid under Section 2058 of the Internal Revenue Code shall be disregarded.
53		-
54		-	(2) "Internal Revenue Code" means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, [amended,] except in the event of repeal of the federal estate tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.
	102	+	(C) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2015, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, other than Connecticut taxable gifts that are includable in the gross estate for federal estate tax purposes of the decedent, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death. The deduction for state death taxes paid under Section 2058 of the Internal Revenue Code shall be disregarded.
	103	+
	104	+	(2) "Internal Revenue Code" means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, except in the event of repeal of the federal estate tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.
55	105
56	106		(3) "Gross estate" means the gross estate, for federal estate tax purposes.
57	107
58	108		(4) "Federal basic exclusion amount" means the dollar amount published annually by the Internal Revenue Service at which a decedent would be required to file a federal estate tax return based on the value of the decedent's gross estate and federally taxable gifts.
59	109
60	110		(d) (1) (A) With respect to the estates of decedents who die on or after January 1, 2005, but prior to January 1, 2010, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2010.
61	111
62	112		(B) With respect to the estates of decedents who die on or after January 1, 2010, but prior to January 1, 2015, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section.
63	113
64	114		(C) With respect to the estates of decedents who die on or after January 1, 2015, but prior to January 1, 2016, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section.
65	115
66	116		(D) With respect to the estates of decedents who die on or after January 1, 2016, but prior to January 1, 2018, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed twenty million dollars. Such twenty-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
67	117
68		-	(E) With respect to the estates of decedents who die on or after January 1, 2018, but prior to January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
69		-
70		-	(F) With respect to the estates of decedents who die on or after January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2020, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, but prior to January 1, 2020, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, but prior to January 1, 2020, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2020, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
71		-
72		-	(2) If real or tangible personal property of such decedent is located outside [of] this state, the amount of tax due under this section shall be reduced by an amount computed by multiplying the tax otherwise due pursuant to subdivision (1) of this subsection, without regard to the credit allowed for any taxes paid to this state pursuant to section 12-642, as amended by this act, by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate attributable to real or tangible personal property located outside of the state, and (B) the denominator of which is the value of the decedent's gross estate.
	118	+	(E) With respect to the estates of decedents who die on or after January 1, 2018, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
	119	+
	120	+	(2) If real or tangible personal property of such decedent is located outside of this state, the amount of tax due under this section shall be reduced by an amount computed by multiplying the tax otherwise due pursuant to subdivision (1) of this subsection, without regard to the credit allowed for any taxes paid to this state pursuant to section 12-642, as amended by this act, by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate attributable to real or tangible personal property located outside of the state, and (B) the denominator of which is the value of the decedent's gross estate.
73	121
74	122		(3) For a resident estate, the state shall have the power to levy the estate tax upon real property situated in this state, tangible personal property having an actual situs in this state and intangible personal property included in the gross estate of the decedent, regardless of where it is located. The state is permitted to calculate the estate tax and levy said tax to the fullest extent permitted by the Constitution of the United States.
75	123
76	124		(e) (1) (A) With respect to the estates of decedents who die on or after January 1, 2005, but prior to January 1, 2010, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2010.
77	125
78	126		(B) With respect to the estates of decedents who die on or after January 1, 2010, but prior to January 1, 2016, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section.
79	127
80		-	(C) With respect to the estates of decedents who die on or after January 1, 2016, but prior to January 1, 2018, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed twenty million dollars. Such twenty-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
81		-
82		-	(D) With respect to the estates of decedents who die on or after January 1, 2018, but prior to January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying the amount of tax determined using the schedule in subsection (g) of this section by a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
83		-
84		-	(E) With respect to the estates of decedents who die on or after January 1, 2020, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying the amount of tax determined using the schedule in subsection (g) of this section by a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2020, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, but prior to January 1, 2020, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed fifteen million dollars. Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, but prior to January 1, 2020, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2020, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
	128	+	(C) With respect to the estates of decedents who die on or after January 1, 2016, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed twenty million dollars. Such twenty-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.
85	129
86	130		(2) For a nonresident estate, the state shall have the power to levy the estate tax upon all real property situated in this state and tangible personal property having an actual situs in this state. The state is permitted to calculate the estate tax and levy said tax to the fullest extent permitted by the Constitution of the United States.
87	131
88	132		(f) (1) For purposes of the tax imposed under this section, the value of the Connecticut taxable estate shall be determined taking into account all of the deductions available under the Internal Revenue Code of 1986, specifically including, but not limited to, the deduction available under Section 2056(b)(7) of said code for a qualifying income interest for life in a surviving spouse.
89	133
90	134		(2) An election under said Section 2056(b)(7) may be made for state estate tax purposes regardless of whether any such election is made for federal estate tax purposes. The value of the gross estate shall include the value of any property in which the decedent had a qualifying income interest for life for which an election was made under this subsection.
91	135
92	136		(g) (1) With respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
93	137
94	138
95	139
96	140		T1 Amount of Connecticut
97	141		T2 Taxable Estate Rate of Tax
98	142		T3 Not over $2,000,000 None
99	143		T4 Over $2,000,000
100	144		T5 but not over $2,100,000 5.085% of the excess over $0
101	145		T6 Over $2,100,000 $106,800 plus 8% of the excess
102	146		T7 but not over $2,600,000 over $2,100,000
103	147		T8 Over $2,600,000 $146,800 plus 8.8% of the excess
104	148		T9 but not over $3,100,000 over $2,600,000
105	149		T10 Over $3,100,000 $190,800 plus 9.6% of the excess
106	150		T11 but not over $3,600,000 over $3,100,000
107	151		T12 Over $3,600,000 $238,800 plus 10.4% of the excess
108	152		T13 but not over $4,100,000 over $3,600,000
109	153		T14 Over $4,100,000 $290,800 plus 11.2% of the excess
110	154		T15 but not over $5,100,000 over $4,100,000
111	155		T16 Over $5,100,000 $402,800 plus 12% of the excess
112	156		T17 but not over $6,100,000 over $5,100,000
113	157		T18 Over $6,100,000 $522,800 plus 12.8% of the excess
114	158		T19 but not over $7,100,000 over $6,100,000
115	159		T20 Over $7,100,000 $650,800 plus 13.6% of the excess
116	160		T21 but not over $8,100,000 over $7,100,000
117	161		T22 Over $8,100,000 $786,800 plus 14.4% of the excess
118	162		T23 but not over $9,100,000 over $8,100,000
119	163		T24 Over $9,100,000 $930,800 plus 15.2% of the excess
120	164		T25 but not over $10,100,000 over $9,100,000
121	165		T26 Over $10,100,000 $1,082,800 plus 16% of the excess
122	166		T27 over $10,100,000
123	167
124	168		T1
125	169
126	170		Amount of Connecticut
127	171
128	172		T2
129	173
130	174		Taxable Estate
131	175
132	176		Rate of Tax
133	177
134	178		T3
135	179
136	180		Not over $2,000,000
137	181
138	182		None
139	183
140	184		T4
141	185
142	186		Over $2,000,000
143	187
144	188		T5
145	189
146	190		but not over $2,100,000
147	191
148	192		5.085% of the excess over $0
149	193
150	194		T6
151	195
152	196		Over $2,100,000
153	197
154	198		$106,800 plus 8% of the excess
155	199
156	200		T7
157	201
158	202		but not over $2,600,000
159	203
160	204		over $2,100,000
161	205
162	206		T8
163	207
164	208		Over $2,600,000
165	209
166	210		$146,800 plus 8.8% of the excess
167	211
168	212		T9
169	213
170	214		but not over $3,100,000
171	215
172	216		over $2,600,000
173	217
174	218		T10
175	219
176	220		Over $3,100,000
177	221
178	222		$190,800 plus 9.6% of the excess
179	223
180	224		T11
181	225
182	226		but not over $3,600,000
183	227
184	228		over $3,100,000
185	229
186	230		T12
187	231
188	232		Over $3,600,000
189	233
190	234		$238,800 plus 10.4% of the excess
191	235
192	236		T13
193	237
194	238		but not over $4,100,000
195	239
196	240		over $3,600,000
197	241
198	242		T14
199	243
200	244		Over $4,100,000
201	245
202	246		$290,800 plus 11.2% of the excess
203	247
204	248		T15
205	249
206	250		but not over $5,100,000
207	251
208	252		over $4,100,000
209	253
210	254		T16
211	255
212	256		Over $5,100,000
213	257
214	258		$402,800 plus 12% of the excess
215	259
216	260		T17
217	261
218	262		but not over $6,100,000
219	263
220	264		over $5,100,000
221	265
222	266		T18
223	267
224	268		Over $6,100,000
225	269
226	270		$522,800 plus 12.8% of the excess
227	271
228	272		T19
229	273
230	274		but not over $7,100,000
231	275
232	276		over $6,100,000
233	277
234	278		T20
235	279
236	280		Over $7,100,000
237	281
238	282		$650,800 plus 13.6% of the excess
239	283
240	284		T21
241	285
242	286		but not over $8,100,000
243	287
244	288		over $7,100,000
245	289
246	290		T22
247	291
248	292		Over $8,100,000
249	293
250	294		$786,800 plus 14.4% of the excess
251	295
252	296		T23
253	297
254	298		but not over $9,100,000
255	299
256	300		over $8,100,000
257	301
258	302		T24
259	303
260	304		Over $9,100,000
261	305
262	306		$930,800 plus 15.2% of the excess
263	307
264	308		T25
265	309
266	310		but not over $10,100,000
267	311
268	312		over $9,100,000
269	313
270	314		T26
271	315
272	316		Over $10,100,000
273	317
274	318		$1,082,800 plus 16% of the excess
275	319
276	320		T27
277	321
278	322		over $10,100,000
279	323
280	324		(2) With respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2011, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
281	325
282	326
283	327
284	328		T28 Amount of Connecticut
285	329		T29 Taxable Estate Rate of Tax
286	330		T30 Not over $3,500,000 None
287	331		T31 Over $3,500,000 7.2% of the excess
288	332		T32 but not over $3,600,000 over $3,500,000
289	333		T33 Over $3,600,000 $7,200 plus 7.8% of the excess
290	334		T34 but not over $4,100,000 over $3,600,000
291	335		T35 Over $4,100,000 $46,200 plus 8.4% of the excess
292	336		T36 but not over $5,100,000 over $4,100,000
293	337		T37 Over $5,100,000 $130,200 plus 9.0% of the excess
294	338		T38 but not over $6,100,000 over $5,100,000
295	339		T39 Over $6,100,000 $220,200 plus 9.6% of the excess
296	340		T40 but not over $7,100,000 over $6,100,000
297	341		T41 Over $7,100,000 $316,200 plus 10.2% of the excess
298	342		T42 but not over $8,100,000 over $7,100,000
299	343		T43 Over $8,100,000 $418,200 plus 10.8% of the excess
300	344		T44 but not over $9,100,000 over $8,100,000
301	345		T45 Over $9,100,000 $526,200 plus 11.4% of the excess
302	346		T46 but not over $10,100,000 over $9,100,000
303	347		T47 Over $10,100,000 $640,200 plus 12% of the excess
304	348		T48 over $10,100,000
305	349
306	350		T28
307	351
308	352		Amount of Connecticut
309	353
310	354		T29
311	355
312	356		Taxable Estate
313	357
314	358		Rate of Tax
315	359
316	360		T30
317	361
318	362		Not over $3,500,000
319	363
320	364		None
321	365
322	366		T31
323	367
324	368		Over $3,500,000
325	369
326	370		7.2% of the excess
327	371
328	372		T32
329	373
330	374		but not over $3,600,000
331	375
332	376		over $3,500,000
333	377
334	378		T33
335	379
336	380		Over $3,600,000
337	381
338	382		$7,200 plus 7.8% of the excess
339	383
340	384		T34
341	385
342	386		but not over $4,100,000
343	387
344	388		over $3,600,000
345	389
346	390		T35
347	391
348	392		Over $4,100,000
349	393
350	394		$46,200 plus 8.4% of the excess
351	395
352	396		T36
353	397
354	398		but not over $5,100,000
355	399
356	400		over $4,100,000
357	401
358	402		T37
359	403
360	404		Over $5,100,000
361	405
362	406		$130,200 plus 9.0% of the excess
363	407
364	408		T38
365	409
366	410		but not over $6,100,000
367	411
368	412		over $5,100,000
369	413
370	414		T39
371	415
372	416		Over $6,100,000
373	417
374	418		$220,200 plus 9.6% of the excess
375	419
376	420		T40
377	421
378	422		but not over $7,100,000
379	423
380	424		over $6,100,000
381	425
382	426		T41
383	427
384	428		Over $7,100,000
385	429
386	430		$316,200 plus 10.2% of the excess
387	431
388	432		T42
389	433
390	434		but not over $8,100,000
391	435
392	436		over $7,100,000
393	437
394	438		T43
395	439
396	440		Over $8,100,000
397	441
398	442		$418,200 plus 10.8% of the excess
399	443
400	444		T44
401	445
402	446		but not over $9,100,000
403	447
404	448		over $8,100,000
405	449
406	450		T45
407	451
408	452		Over $9,100,000
409	453
410	454		$526,200 plus 11.4% of the excess
411	455
412	456		T46
413	457
414	458		but not over $10,100,000
415	459
416	460		over $9,100,000
417	461
418	462		T47
419	463
420	464		Over $10,100,000
421	465
422	466		$640,200 plus 12% of the excess
423	467
424	468		T48
425	469
426	470		over $10,100,000
427	471
428	472		(3) With respect to the estates of decedents dying on or after January 1, 2011, but prior to January 1, 2018, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
429	473
430	474
431	475
432	476		T49 Amount of Connecticut
433	477		T50 Taxable Estate Rate of Tax
434	478		T51 Not over $2,000,000 None
435	479		T52 Over $2,000,000 7.2% of the excess
436	480		T53 but not over $3,600,000 over $2,000,000
437	481		T54 Over $3,600,000 $115,200 plus 7.8% of the excess
438	482		T55 but not over $4,100,000 over $3,600,000
439	483		T56 Over $4,100,000 $154,200 plus 8.4% of the excess
440	484		T57 but not over $5,100,000 over $4,100,000
441	485		T58 Over $5,100,000 $238,200 plus 9.0% of the excess
442	486		T59 but not over $6,100,000 over $5,100,000
443	487		T60 Over $6,100,000 $328,200 plus 9.6% of the excess
444	488		T61 but not over $7,100,000 over $6,100,000
445	489		T62 Over $7,100,000 $424,200 plus 10.2% of the excess
446	490		T63 but not over $8,100,000 over $7,100,000
447	491		T64 Over $8,100,000 $526,200 plus 10.8% of the excess
448	492		T65 but not over $9,100,000 over $8,100,000
449	493		T66 Over $9,100,000 $634,200 plus 11.4% of the excess
450	494		T67 but not over $10,100,000 over $9,100,000
451	495		T68 Over $10,100,000 $748,200 plus 12% of the excess
452	496		T69 over $10,100,000
453	497
454	498		T49
455	499
456	500		Amount of Connecticut
457	501
458	502		T50
459	503
460	504		Taxable Estate
461	505
462	506		Rate of Tax
463	507
464	508		T51
465	509
466	510		Not over $2,000,000
467	511
468	512		None
469	513
470	514		T52
471	515
472	516		Over $2,000,000
473	517
474	518		7.2% of the excess
475	519
476	520		T53
477	521
478	522		but not over $3,600,000
479	523
480	524		over $2,000,000
481	525
482	526		T54
483	527
484	528		Over $3,600,000
485	529
486	530		$115,200 plus 7.8% of the excess
487	531
488	532		T55
489	533
490	534		but not over $4,100,000
491	535
492	536		over $3,600,000
493	537
494	538		T56
495	539
496	540		Over $4,100,000
497	541
498	542		$154,200 plus 8.4% of the excess
499	543
500	544		T57
501	545
502	546		but not over $5,100,000
503	547
504	548		over $4,100,000
505	549
506	550		T58
507	551
508	552		Over $5,100,000
509	553
510	554		$238,200 plus 9.0% of the excess
511	555
512	556		T59
513	557
514	558		but not over $6,100,000
515	559
516	560		over $5,100,000
517	561
518	562		T60
519	563
520	564		Over $6,100,000
521	565
522	566		$328,200 plus 9.6% of the excess
523	567
524	568		T61
525	569
526	570		but not over $7,100,000
527	571
528	572		over $6,100,000
529	573
530	574		T62
531	575
532	576		Over $7,100,000
533	577
534	578		$424,200 plus 10.2% of the excess
535	579
536	580		T63
537	581
538	582		but not over $8,100,000
539	583
540	584		over $7,100,000
541	585
542	586		T64
543	587
544	588		Over $8,100,000
545	589
546	590		$526,200 plus 10.8% of the excess
547	591
548	592		T65
549	593
550	594		but not over $9,100,000
551	595
552	596		over $8,100,000
553	597
554	598		T66
555	599
556	600		Over $9,100,000
557	601
558	602		$634,200 plus 11.4% of the excess
559	603
560	604		T67
561	605
562	606		but not over $10,100,000
563	607
564	608		over $9,100,000
565	609
566	610		T68
567	611
568	612		Over $10,100,000
569	613
570	614		$748,200 plus 12% of the excess
571	615
572	616		T69
573	617
574	618		over $10,100,000
575	619
576	620		(4) With respect to the estates of decedents dying on or after January 1, 2018, but prior to January 1, 2019, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
577	621
578	622
579	623
580	624		T70 Amount of Connecticut
581	625		T71 Taxable Estate Rate of Tax
582	626		T72 Not over $2,600,000 None
583	627		T73 Over $2,600,000 7.2% of the excess
584	628		T74 but not over $3,600,000 over $2,600,000
585	629		T75 Over $3,600,000 $72,000 plus 7.8% of the excess
586	630		T76 but not over $4,100,000 over $3,600,000
587	631		T77 Over $4,100,000 $111,000 plus 8.4% of the excess
588	632		T78 but not over $5,100,000 over $4,100,000
589	633		T79 Over $5,100,000 $195,000 plus 10% of the excess
590	634		T80 but not over $6,100,000 over $5,100,000
591	635		T81 Over $6,100,000 $295,000 plus 10.4% of the excess
592	636		T82 but not over $7,100,000 over $6,100,000
593	637		T83 Over $7,100,000 $399,900 plus 10.8% of the excess
594	638		T84 but not over $8,100,000 over $7,100,000
595	639		T85 Over $8,100,000 $507,000 plus 11.2% of the excess
596	640		T86 but not over $9,100,000 over $8,100,000
597	641		T87 Over $9,100,000 $619,000 plus 11.6% of the excess
598	642		T88 but not over $10,100,000 over $9,100,000
599	643		T89 Over $10,100,000 $735,000 plus 12% of the excess
600	644		T90 over $10,100,000
601	645
602	646		T70
603	647
604	648		Amount of Connecticut
605	649
606	650		T71
607	651
608	652		Taxable Estate
609	653
610	654		Rate of Tax
611	655
612	656		T72
613	657
614	658		Not over $2,600,000
615	659
616	660		None
617	661
618	662		T73
619	663
620	664		Over $2,600,000
621	665
622	666		7.2% of the excess
623	667
624	668		T74
625	669
626	670		but not over $3,600,000
627	671
628	672		over $2,600,000
629	673
630	674		T75
631	675
632	676		Over $3,600,000
633	677
634	678		$72,000 plus 7.8% of the excess
635	679
636	680		T76
637	681
638	682		but not over $4,100,000
639	683
640	684		over $3,600,000
641	685
642	686		T77
643	687
644	688		Over $4,100,000
645	689
646	690		$111,000 plus 8.4% of the excess
647	691
648	692		T78
649	693
650	694		but not over $5,100,000
651	695
652	696		over $4,100,000
653	697
654	698		T79
655	699
656	700		Over $5,100,000
657	701
658	702		$195,000 plus 10% of the excess
659	703
660	704		T80
661	705
662	706		but not over $6,100,000
663	707
664	708		over $5,100,000
665	709
666	710		T81
667	711
668	712		Over $6,100,000
669	713
670	714		$295,000 plus 10.4% of the excess
671	715
672	716		T82
673	717
674	718		but not over $7,100,000
675	719
676	720		over $6,100,000
677	721
678	722		T83
679	723
680	724		Over $7,100,000
681	725
682	726		$399,900 plus 10.8% of the excess
683	727
684	728		T84
685	729
686	730		but not over $8,100,000
687	731
688	732		over $7,100,000
689	733
690	734		T85
691	735
692	736		Over $8,100,000
693	737
694	738		$507,000 plus 11.2% of the excess
695	739
696	740		T86
697	741
698	742		but not over $9,100,000
699	743
700	744		over $8,100,000
701	745
702	746		T87
703	747
704	748		Over $9,100,000
705	749
706	750		$619,000 plus 11.6% of the excess
707	751
708	752		T88
709	753
710	754		but not over $10,100,000
711	755
712	756		over $9,100,000
713	757
714	758		T89
715	759
716	760		Over $10,100,000
717	761
718	762		$735,000 plus 12% of the excess
719	763
720	764		T90
721	765
722	766		over $10,100,000
723	767
724	768		(5) With respect to the estates of decedents dying on or after January 1, 2019, but prior to January 1, 2020, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
725	769
726	770
727	771
728	772		T91 Amount of Connecticut
729	773		T92 Taxable Estate Rate of Tax
730	774		T93 Not over $3,600,000 None
731	775		T94 Over $3,600,000 7.8% of the excess
732	776		T95 but not over $4,100,000 over $3,600,000
733	777		T96 Over $4,100,000 $39,000 plus 8.4% of the excess
734	778		T97 but not over $5,100,000 over $4,100,000
735	779		T98 Over $5,100,000 $123,000 plus 10% of the excess
736	780		T99 but not over $6,100,000 over $5,100,000
737	781		T100 Over $6,100,000 $223,000 plus 10.4% of the excess
738	782		T101 but not over $7,100,000 over $6,100,000
739	783		T102 Over $7,100,000 $327,000 plus 10.8% of the excess
740	784		T103 but not over $8,100,000 over $7,100,000
741	785		T104 Over $8,100,000 $435,000 plus 11.2% of the excess
742	786		T105 but not over $9,100,000 over $8,100,000
743	787		T106 Over $9,100,000 $547,000 plus 11.6% of the excess
744	788		T107 but not over $10,100,000 over $9,100,000
745	789		T108 Over $10,100,000 $663,000 plus 12% of the excess
746	790		T109 over $10,100,000
747	791
748	792		T91
749	793
750	794		Amount of Connecticut
751	795
752	796		T92
753	797
754	798		Taxable Estate
755	799
756	800		Rate of Tax
757	801
758	802		T93
759	803
760	804		Not over $3,600,000
761	805
762	806		None
763	807
764	808		T94
765	809
766	810		Over $3,600,000
767	811
768	812		7.8% of the excess
769	813
770	814		T95
771	815
772	816		but not over $4,100,000
773	817
774	818		over $3,600,000
775	819
776	820		T96
777	821
778	822		Over $4,100,000
779	823
780	824		$39,000 plus 8.4% of the excess
781	825
782	826		T97
783	827
784	828		but not over $5,100,000
785	829
786	830		over $4,100,000
787	831
788	832		T98
789	833
790	834		Over $5,100,000
791	835
792	836		$123,000 plus 10% of the excess
793	837
794	838		T99
795	839
796	840		but not over $6,100,000
797	841
798	842		over $5,100,000
799	843
800	844		T100
801	845
802	846		Over $6,100,000
803	847
804	848		$223,000 plus 10.4% of the excess
805	849
806	850		T101
807	851
808	852		but not over $7,100,000
809	853
810	854		over $6,100,000
811	855
812	856		T102
813	857
814	858		Over $7,100,000
815	859
816	860		$327,000 plus 10.8% of the excess
817	861
818	862		T103
819	863
820	864		but not over $8,100,000
821	865
822	866		over $7,100,000
823	867
824	868		T104
825	869
826	870		Over $8,100,000
827	871
828	872		$435,000 plus 11.2% of the excess
829	873
830	874		T105
831	875
832	876		but not over $9,100,000
833	877
834	878		over $8,100,000
835	879
836	880		T106
837	881
838	882		Over $9,100,000
839	883
840	884		$547,000 plus 11.6% of the excess
841	885
842	886		T107
843	887
844	888		but not over $10,100,000
845	889
846	890		over $9,100,000
847	891
848	892		T108
849	893
850	894		Over $10,100,000
851	895
852	896		$663,000 plus 12% of the excess
853	897
854	898		T109
855	899
856	900		over $10,100,000
857	901
858	902		(6) With respect to the estates of decedents dying on or after January 1, 2020, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:
859	903
860	904
861	905
862	906		T110 Amount of Connecticut
863	907		T111 Taxable Estate Rate of Tax
864	908		T112 Not over the None
865	909		T113 federal basic exclusion amount
866	910		T114 Over the 10% of the excess over the
867	911		T115 federal basic exclusion amount federal basic exclusion amount
868	912		T116 but not over $6,100,000
869	913		T117 Over $6,100,000 10.4% of the excess over the
870	914		T118 but not over $7,100,000 federal basic exclusion amount
871	915		T119 Over $7,100,000 10.8% of the excess over the
872	916		T120 but not over $8,100,000 federal basic exclusion amount
873	917		T121 Over $8,100,000 11.2% of the excess over the
874	918		T122 but not over $9,100,000 federal basic exclusion amount
875	919		T123 Over $9,100,000 11.6% of the excess over the
876	920		T124 but not over $10,100,000 federal basic exclusion amount
877	921		T125 Over $10,100,000 12% of the excess over the
878	922		T126 federal basic exclusion amount
879	923
880	924		T110
881	925
882	926		Amount of Connecticut
883	927
884	928		T111
885	929
886	930		Taxable Estate
887	931
888	932		Rate of Tax
889	933
890	934		T112
891	935
892	936		Not over the
893	937
894	938		None
895	939
896	940		T113
897	941
898	942		federal basic exclusion amount
899	943
900	944		T114
901	945
902	946		Over the
903	947
904	948		10% of the excess over the
905	949
906	950		T115
907	951
908	952		federal basic exclusion amount
909	953
910	954		federal basic exclusion amount
911	955
912	956		T116
913	957
914	958		but not over $6,100,000
915	959
916	960		T117
917	961
918	962		Over $6,100,000
919	963
920	964		10.4% of the excess over the
921	965
922	966		T118
923	967
924	968		but not over $7,100,000
925	969
926	970		federal basic exclusion amount
927	971
928	972		T119
929	973
930	974		Over $7,100,000
931	975
932	976		10.8% of the excess over the
933	977
934	978		T120
935	979
936	980		but not over $8,100,000
937	981
938	982		federal basic exclusion amount
939	983
940	984		T121
941	985
942	986		Over $8,100,000
943	987
944	988		11.2% of the excess over the
945	989
946	990		T122
947	991
948	992		but not over $9,100,000
949	993
950	994		federal basic exclusion amount
951	995
952	996		T123
953	997
954	998		Over $9,100,000
955	999
956	1000		11.6% of the excess over the
957	1001
958	1002		T124
959	1003
960	1004		but not over $10,100,000
961	1005
962	1006		federal basic exclusion amount
963	1007
964	1008		T125
965	1009
966	1010		Over $10,100,000
967	1011
968	1012		12% of the excess over the
969	1013
970	1014		T126
971	1015
972	1016		federal basic exclusion amount
973	1017
974	1018		(h) (1) For the purposes of this chapter, each decedent shall be presumed to have died a resident of this state. The burden of proof in an estate tax proceeding shall be upon any decedent's estate claiming exemption by reason of the decedent's alleged nonresidency.
975	1019
976	1020		(2) Any person required to make and file a tax return under this chapter, believing that the decedent died a nonresident of this state, may file a request for determination of domicile in writing with the Commissioner of Revenue Services, stating the specific grounds upon which the request is founded provided (A) such person has filed such return, (B) at least two hundred seventy days, but no more than three years, has elapsed since the due date of such return or, if an application for extension of time to file such return has been granted, the extended due date of such return, (C) such person has not been notified, in writing, by said commissioner that a written agreement of compromise with the taxing authorities of another jurisdiction, under section 12-395a, is being negotiated, and (D) the commissioner has not previously determined whether the decedent died a resident of this state. Not later than one hundred eighty days following receipt of such request for determination, the commissioner shall determine whether such decedent died a resident or a nonresident of this state. If the commissioner commences negotiations over a written agreement of compromise with the taxing authorities of another jurisdiction after a request for determination of domicile is filed, the one-hundred-eighty-day period shall be tolled for the duration of such negotiations. When, before the expiration of such one-hundred-eighty-day period, both the commissioner and the person required to make and file a tax return under this chapter have consented in writing to the making of such determination after such time, the determination may be made at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. The commissioner shall mail notice of his proposed determination to the person required to make and file a tax return under this chapter. Such notice shall set forth briefly the commissioner's findings of fact and the basis of such proposed determination. Sixty days after the date on which it is mailed, a notice of proposed determination shall constitute a final determination unless the person required to make and file a tax return under this chapter has filed, as provided in subdivision (3) of this subsection, a written protest with the Commissioner of Revenue Services.
977	1021
978	1022		(3) On or before the sixtieth day after mailing of the proposed determination, the person required to make and file a tax return under this chapter may file with the commissioner a written protest against the proposed determination in which such person shall set forth the grounds on which the protest is based. If such a protest is filed, the commissioner shall reconsider the proposed determination and, if the person required to make and file a tax return under this chapter has so requested, may grant or deny such person or the authorized representatives of such person an oral hearing.
979	1023
980	1024		(4) Notice of the commissioner's determination shall be mailed to the person required to make and file a tax return under this chapter and such notice shall set forth briefly the commissioner's findings of fact and the basis of decision in each case decided adversely to such person.
981	1025
982	1026		(5) The action of the commissioner on a written protest shall be final upon the expiration of one month from the date on which he mails notice of his action to the person required to make and file a tax return under this chapter unless within such period such person seeks review of the commissioner's determination pursuant to subsection (b) of section 12-395.
983	1027
984	1028		(6) Nothing in this subsection shall be construed to relieve any person filing a request for determination of domicile of the obligation to pay the correct amount of tax on or before the due date of the tax.
985	1029
986	1030		(i) The tax calculated pursuant to the provisions of this section shall be reduced in an amount equal to half of the amount invested by a decedent in a private investment fund or fund of funds pursuant to subdivision (43) of section 32-39, provided (1) any such reduction shall not exceed five million dollars for any such decedent, (2) any such amount invested by the decedent shall have been invested in such fund or fund of funds for ten years or more, and (3) the aggregate amount of all taxes reduced under this subsection shall not exceed thirty million dollars.
987	1031
988		-	Sec. 6. Section 12-640 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
989		-
990		-	For [the calendar year 1991 and each year thereafter] calendar years commencing January 1, 1991, but prior to January 1, 2020, a tax computed as provided in section 12-642, as amended by this act, is hereby imposed on the transfer of property by gift during such taxable year by any individual resident or nonresident provided, for the calendar year commencing January 1, 1991, such tax shall be imposed only on those gifts which are transferred on or after September 1, 1991.
991		-
992		-	Sec. 7. Section 12-642 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to gifts made on or after January 1, 2018):
993		-
994		-	(a) (1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:
	1032	+	Sec. 11. Section 12-642 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to gifts made on or after January 1, 2018):
	1033	+
	1034	+	(a) (1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:
995	1035
996	1036
997	1037
998	1038		T127 Amount of Taxable Gifts Rate of Tax
999	1039		T128 Not over $25,000 1%
1000	1040		T129 Over $25,000 $250, plus 2% of the excess
1001	1041		T130 but not over $50,000 over $25,000
1002	1042		T131 Over $50,000 $750, plus 3% of the excess
1003	1043		T132 but not over $75,000 over $50,000
1004	1044		T133 Over $75,000 $1,500, plus 4% of the excess
1005	1045		T134 but not over $100,000 over $75,000
1006	1046		T135 Over $100,000 $2,500, plus 5% of the excess
1007	1047		T136 but not over $200,000 over $100,000
1008	1048		T137 Over $200,000 $7,500, plus 6% of the excess
1009	1049		T138 over $200,000
1010	1050
1011	1051		T127
1012	1052
1013	1053		Amount of Taxable Gifts
1014	1054
1015	1055		Rate of Tax
1016	1056
1017	1057		T128
1018	1058
1019	1059		Not over $25,000
1020	1060
1021	1061		1%
1022	1062
1023	1063		T129
1024	1064
1025	1065		Over $25,000
1026	1066
1027	1067		$250, plus 2% of the excess
1028	1068
1029	1069		T130
1030	1070
1031	1071		but not over $50,000
1032	1072
1033	1073		over $25,000
1034	1074
1035	1075		T131
1036	1076
1037	1077		Over $50,000
1038	1078
1039	1079		$750, plus 3% of the excess
1040	1080
1041	1081		T132
1042	1082
1043	1083		but not over $75,000
1044	1084
1045	1085		over $50,000
1046	1086
1047	1087		T133
1048	1088
1049	1089		Over $75,000
1050	1090
1051	1091		$1,500, plus 4% of the excess
1052	1092
1053	1093		T134
1054	1094
1055	1095		but not over $100,000
1056	1096
1057	1097		over $75,000
1058	1098
1059	1099		T135
1060	1100
1061	1101		Over $100,000
1062	1102
1063	1103		$2,500, plus 5% of the excess
1064	1104
1065	1105		T136
1066	1106
1067	1107		but not over $200,000
1068	1108
1069	1109		over $100,000
1070	1110
1071	1111		T137
1072	1112
1073	1113		Over $200,000
1074	1114
1075	1115		$7,500, plus 6% of the excess
1076	1116
1077	1117		T138
1078	1118
1079	1119		over $200,000
1080	1120
1081		-	(2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640~~, as amended by this act,~~ for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:
	1121	+	(2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640 for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:
1082	1122
1083	1123
1084	1124
1085	1125		T139 Amount of Taxable Gifts Rate of Tax
1086	1126		T140 Over $25,000 $250, plus 2% of the excess
1087	1127		T141 but not over $50,000 over $25,000
1088	1128		T142 Over $50,000 $750, plus 3% of the excess
1089	1129		T143 but not over $75,000 over $50,000
1090	1130		T144 Over $75,000 $1,500, plus 4% of the excess
1091	1131		T145 but not over $100,000 over $75,000
1092	1132		T146 Over $100,000 $2,500, plus 5% of the excess
1093	1133		T147 but not over $675,000 over $100,000
1094	1134		T148 Over $675,000 $31,250, plus 6% of the excess
1095	1135		T149 over $675,000
1096	1136
1097	1137		T139
1098	1138
1099	1139		Amount of Taxable Gifts
1100	1140
1101	1141		Rate of Tax
1102	1142
1103	1143		T140
1104	1144
1105	1145		Over $25,000
1106	1146
1107	1147		$250, plus 2% of the excess
1108	1148
1109	1149		T141
1110	1150
1111	1151		but not over $50,000
1112	1152
1113	1153		over $25,000
1114	1154
1115	1155		T142
1116	1156
1117	1157		Over $50,000
1118	1158
1119	1159		$750, plus 3% of the excess
1120	1160
1121	1161		T143
1122	1162
1123	1163		but not over $75,000
1124	1164
1125	1165		over $50,000
1126	1166
1127	1167		T144
1128	1168
1129	1169		Over $75,000
1130	1170
1131	1171		$1,500, plus 4% of the excess
1132	1172
1133	1173		T145
1134	1174
1135	1175		but not over $100,000
1136	1176
1137	1177		over $75,000
1138	1178
1139	1179		T146
1140	1180
1141	1181		Over $100,000
1142	1182
1143	1183		$2,500, plus 5% of the excess
1144	1184
1145	1185		T147
1146	1186
1147	1187		but not over $675,000
1148	1188
1149	1189		over $100,000
1150	1190
1151	1191		T148
1152	1192
1153	1193		Over $675,000
1154	1194
1155	1195		$31,250, plus 6% of the excess
1156	1196
1157	1197		T149
1158	1198
1159	1199		over $675,000
1160	1200
1161		-	(3) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640~~, as amended by this act,~~ for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:
	1201	+	(3) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:
1162	1202
1163	1203
1164	1204
1165	1205		T150 Amount of Taxable Gifts Rate of Tax
1166	1206		T151 Not over $2,000,000 None
1167	1207		T152 Over $2,000,000
1168	1208		T153 but not over $2,100,000 5.085% of the excess over $0
1169	1209		T154 Over $2,100,000 $106,800 plus 8% of the excess
1170	1210		T155 but not over $2,600,000 over $2,100,000
1171	1211		T156 Over $2,600,000 $146,800 plus 8.8% of the excess
1172	1212		T157 but not over $3,100,000 over $2,600,000
1173	1213		T158 Over $3,100,000 $190,800 plus 9.6% of the excess
1174	1214		T159 but not over $3,600,000 over $3,100,000
1175	1215		T160 Over $3,600,000 $238,800 plus 10.4% of the excess
1176	1216		T161 but not over $4,100,000 over $3,600,000
1177	1217		T162 Over $4,100,000 $290,800 plus 11.2% of the excess
1178	1218		T163 but not over $5,100,000 over $4,100,000
1179	1219		T164 Over $5,100,000 $402,800 plus 12% of the excess
1180	1220		T165 but not over $6,100,000 over $5,100,000
1181	1221		T166 Over $6,100,000 $522,800 plus 12.8% of the excess
1182	1222		T167 but not over $7,100,000 over $6,100,000
1183	1223		T168 Over $7,100,000 $650,800 plus 13.6% of the excess
1184	1224		T169 but not over $8,100,000 over $7,100,000
1185	1225		T170 Over $8,100,000 $786,800 plus 14.4% of the excess
1186	1226		T171 but not over $9,100,000 over $8,100,000
1187	1227		T172 Over $9,100,000 $930,800 plus 15.2% of the excess
1188	1228		T173 but not over $10,100,000 over $9,100,000
1189	1229		T174 Over $10,100,000 $1,082,800 plus 16% of the excess
1190	1230		T175 over $10,100,000
1191	1231
1192	1232		T150
1193	1233
1194	1234		Amount of Taxable Gifts
1195	1235
1196	1236		Rate of Tax
1197	1237
1198	1238		T151
1199	1239
1200	1240		Not over $2,000,000
1201	1241
1202	1242		None
1203	1243
1204	1244		T152
1205	1245
1206	1246		Over $2,000,000
1207	1247
1208	1248		T153
1209	1249
1210	1250		but not over $2,100,000
1211	1251
1212	1252		5.085% of the excess over $0
1213	1253
1214	1254		T154
1215	1255
1216	1256		Over $2,100,000
1217	1257
1218	1258		$106,800 plus 8% of the excess
1219	1259
1220	1260		T155
1221	1261
1222	1262		but not over $2,600,000
1223	1263
1224	1264		over $2,100,000
1225	1265
1226	1266		T156
1227	1267
1228	1268		Over $2,600,000
1229	1269
1230	1270		$146,800 plus 8.8% of the excess
1231	1271
1232	1272		T157
1233	1273
1234	1274		but not over $3,100,000
1235	1275
1236	1276		over $2,600,000
1237	1277
1238	1278		T158
1239	1279
1240	1280		Over $3,100,000
1241	1281
1242	1282		$190,800 plus 9.6% of the excess
1243	1283
1244	1284		T159
1245	1285
1246	1286		but not over $3,600,000
1247	1287
1248	1288		over $3,100,000
1249	1289
1250	1290		T160
1251	1291
1252	1292		Over $3,600,000
1253	1293
1254	1294		$238,800 plus 10.4% of the excess
1255	1295
1256	1296		T161
1257	1297
1258	1298		but not over $4,100,000
1259	1299
1260	1300		over $3,600,000
1261	1301
1262	1302		T162
1263	1303
1264	1304		Over $4,100,000
1265	1305
1266	1306		$290,800 plus 11.2% of the excess
1267	1307
1268	1308		T163
1269	1309
1270	1310		but not over $5,100,000
1271	1311
1272	1312		over $4,100,000
1273	1313
1274	1314		T164
1275	1315
1276	1316		Over $5,100,000
1277	1317
1278	1318		$402,800 plus 12% of the excess
1279	1319
1280	1320		T165
1281	1321
1282	1322		but not over $6,100,000
1283	1323
1284	1324		over $5,100,000
1285	1325
1286	1326		T166
1287	1327
1288	1328		Over $6,100,000
1289	1329
1290	1330		$522,800 plus 12.8% of the excess
1291	1331
1292	1332		T167
1293	1333
1294	1334		but not over $7,100,000
1295	1335
1296	1336		over $6,100,000
1297	1337
1298	1338		T168
1299	1339
1300	1340		Over $7,100,000
1301	1341
1302	1342		$650,800 plus 13.6% of the excess
1303	1343
1304	1344		T169
1305	1345
1306	1346		but not over $8,100,000
1307	1347
1308	1348		over $7,100,000
1309	1349
1310	1350		T170
1311	1351
1312	1352		Over $8,100,000
1313	1353
1314	1354		$786,800 plus 14.4% of the excess
1315	1355
1316	1356		T171
1317	1357
1318	1358		but not over $9,100,000
1319	1359
1320	1360		over $8,100,000
1321	1361
1322	1362		T172
1323	1363
1324	1364		Over $9,100,000
1325	1365
1326	1366		$930,800 plus 15.2% of the excess
1327	1367
1328	1368		T173
1329	1369
1330	1370		but not over $10,100,000
1331	1371
1332	1372		over $9,100,000
1333	1373
1334	1374		T174
1335	1375
1336	1376		Over $10,100,000
1337	1377
1338	1378		$1,082,800 plus 16% of the excess
1339	1379
1340	1380		T175
1341	1381
1342	1382		over $10,100,000
1343	1383
1344		-	(4) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640~~, as amended by this act,~~ for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
	1384	+	(4) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
1345	1385
1346	1386
1347	1387
1348	1388		T176 Amount of Taxable Gifts Rate of Tax
1349	1389		T177 Not over $3,500,000 None
1350	1390		T178 Over $3,500,000 7.2% of the excess
1351	1391		T179 but not over $3,600,000 over $3,500,000
1352	1392		T180 Over $3,600,000 $7,200 plus 7.8% of the excess
1353	1393		T181 but not over $4,100,000 over $3,600,000
1354	1394		T182 Over $4,100,000 $46,200 plus 8.4% of the excess
1355	1395		T183 but not over $5,100,000 over $4,100,000
1356	1396		T184 Over $5,100,000 $130,200 plus 9.0% of the excess
1357	1397		T185 but not over $6,100,000 over $5,100,000
1358	1398		T186 Over $6,100,000 $220,200 plus 9.6% of the excess
1359	1399		T187 but not over $7,100,000 over $6,100,000
1360	1400		T188 Over $7,100,000 $316,200 plus 10.2% of the excess
1361	1401		T189 but not over $8,100,000 over $7,100,000
1362	1402		T190 Over $8,100,000 $418,200 plus 10.8% of the excess
1363	1403		T191 but not over $9,100,000 over $8,100,000
1364	1404		T192 Over $9,100,000 $526,200 plus 11.4% of the excess
1365	1405		T193 but not over $10,100,000 over $9,100,000
1366	1406		T194 Over $10,100,000 $640,200 plus 12% of the excess
1367	1407		T195 over $10,100,000
1368	1408
1369	1409		T176
1370	1410
1371	1411		Amount of Taxable Gifts
1372	1412
1373	1413		Rate of Tax
1374	1414
1375	1415		T177
1376	1416
1377	1417		Not over $3,500,000
1378	1418
1379	1419		None
1380	1420
1381	1421		T178
1382	1422
1383	1423		Over $3,500,000
1384	1424
1385	1425		7.2% of the excess
1386	1426
1387	1427		T179
1388	1428
1389	1429		but not over $3,600,000
1390	1430
1391	1431		over $3,500,000
1392	1432
1393	1433		T180
1394	1434
1395	1435		Over $3,600,000
1396	1436
1397	1437		$7,200 plus 7.8% of the excess
1398	1438
1399	1439		T181
1400	1440
1401	1441		but not over $4,100,000
1402	1442
1403	1443		over $3,600,000
1404	1444
1405	1445		T182
1406	1446
1407	1447		Over $4,100,000
1408	1448
1409	1449		$46,200 plus 8.4% of the excess
1410	1450
1411	1451		T183
1412	1452
1413	1453		but not over $5,100,000
1414	1454
1415	1455		over $4,100,000
1416	1456
1417	1457		T184
1418	1458
1419	1459		Over $5,100,000
1420	1460
1421	1461		$130,200 plus 9.0% of the excess
1422	1462
1423	1463		T185
1424	1464
1425	1465		but not over $6,100,000
1426	1466
1427	1467		over $5,100,000
1428	1468
1429	1469		T186
1430	1470
1431	1471		Over $6,100,000
1432	1472
1433	1473		$220,200 plus 9.6% of the excess
1434	1474
1435	1475		T187
1436	1476
1437	1477		but not over $7,100,000
1438	1478
1439	1479		over $6,100,000
1440	1480
1441	1481		T188
1442	1482
1443	1483		Over $7,100,000
1444	1484
1445	1485		$316,200 plus 10.2% of the excess
1446	1486
1447	1487		T189
1448	1488
1449	1489		but not over $8,100,000
1450	1490
1451	1491		over $7,100,000
1452	1492
1453	1493		T190
1454	1494
1455	1495		Over $8,100,000
1456	1496
1457	1497		$418,200 plus 10.8% of the excess
1458	1498
1459	1499		T191
1460	1500
1461	1501		but not over $9,100,000
1462	1502
1463	1503		over $8,100,000
1464	1504
1465	1505		T192
1466	1506
1467	1507		Over $9,100,000
1468	1508
1469	1509		$526,200 plus 11.4% of the excess
1470	1510
1471	1511		T193
1472	1512
1473	1513		but not over $10,100,000
1474	1514
1475	1515		over $9,100,000
1476	1516
1477	1517		T194
1478	1518
1479	1519		Over $10,100,000
1480	1520
1481	1521		$640,200 plus 12% of the excess
1482	1522
1483	1523		T195
1484	1524
1485	1525		over $10,100,000
1486	1526
1487		-	(5) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2011, but prior to January 1, 2018, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640~~, as amended by this act,~~ for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) or (4) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
	1527	+	(5) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2011, but prior to January 1, 2018, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) or (4) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
1488	1528
1489	1529
1490	1530
1491	1531		T196 Amount of Taxable Gifts Rate of Tax
1492	1532		T197 Not over $2,000,000 None
1493	1533		T198 Over $2,000,000 7.2% of the excess
1494	1534		T199 but not over $3,600,000 over $2,000,000
1495	1535		T200 Over $3,600,000 $115,200 plus 7.8% of the excess
1496	1536		T201 but not over $4,100,000 over $3,600,000
1497	1537		T202 Over $4,100,000 $154,200 plus 8.4% of the excess
1498	1538		T203 but not over $5,100,000 over $4,100,000
1499	1539		T204 Over $5,100,000 $238,200 plus 9.0% of the excess
1500	1540		T205 but not over $6,100,000 over $5,100,000
1501	1541		T206 Over $6,100,000 $328,200 plus 9.6% of the excess
1502	1542		T207 but not over $7,100,000 over $6,100,000
1503	1543		T208 Over $7,100,000 $424,200 plus 10.2% of the excess
1504	1544		T209 but not over $8,100,000 over $7,100,000
1505	1545		T210 Over $8,100,000 $526,200 plus 10.8% of the excess
1506	1546		T211 but not over $9,100,000 over $8,100,000
1507	1547		T212 Over $9,100,000 $634,200 plus 11.4% of the excess
1508	1548		T213 but not over $10,100,000 over $9,100,000
1509	1549		T214 Over $10,100,000 $748,200 plus 12% of the excess
1510	1550		T215 over $10,100,000
1511	1551
1512	1552		T196
1513	1553
1514	1554		Amount of Taxable Gifts
1515	1555
1516	1556		Rate of Tax
1517	1557
1518	1558		T197
1519	1559
1520	1560		Not over $2,000,000
1521	1561
1522	1562		None
1523	1563
1524	1564		T198
1525	1565
1526	1566		Over $2,000,000
1527	1567
1528	1568		7.2% of the excess
1529	1569
1530	1570		T199
1531	1571
1532	1572		but not over $3,600,000
1533	1573
1534	1574		over $2,000,000
1535	1575
1536	1576		T200
1537	1577
1538	1578		Over $3,600,000
1539	1579
1540	1580		$115,200 plus 7.8% of the excess
1541	1581
1542	1582		T201
1543	1583
1544	1584		but not over $4,100,000
1545	1585
1546	1586		over $3,600,000
1547	1587
1548	1588		T202
1549	1589
1550	1590		Over $4,100,000
1551	1591
1552	1592		$154,200 plus 8.4% of the excess
1553	1593
1554	1594		T203
1555	1595
1556	1596		but not over $5,100,000
1557	1597
1558	1598		over $4,100,000
1559	1599
1560	1600		T204
1561	1601
1562	1602		Over $5,100,000
1563	1603
1564	1604		$238,200 plus 9.0% of the excess
1565	1605
1566	1606		T205
1567	1607
1568	1608		but not over $6,100,000
1569	1609
1570	1610		over $5,100,000
1571	1611
1572	1612		T206
1573	1613
1574	1614		Over $6,100,000
1575	1615
1576	1616		$328,200 plus 9.6% of the excess
1577	1617
1578	1618		T207
1579	1619
1580	1620		but not over $7,100,000
1581	1621
1582	1622		over $6,100,000
1583	1623
1584	1624		T208
1585	1625
1586	1626		Over $7,100,000
1587	1627
1588	1628		$424,200 plus 10.2% of the excess
1589	1629
1590	1630		T209
1591	1631
1592	1632		but not over $8,100,000
1593	1633
1594	1634		over $7,100,000
1595	1635
1596	1636		T210
1597	1637
1598	1638		Over $8,100,000
1599	1639
1600	1640		$526,200 plus 10.8% of the excess
1601	1641
1602	1642		T211
1603	1643
1604	1644		but not over $9,100,000
1605	1645
1606	1646		over $8,100,000
1607	1647
1608	1648		T212
1609	1649
1610	1650		Over $9,100,000
1611	1651
1612	1652		$634,200 plus 11.4% of the excess
1613	1653
1614	1654		T213
1615	1655
1616	1656		but not over $10,100,000
1617	1657
1618	1658		over $9,100,000
1619	1659
1620	1660		T214
1621	1661
1622	1662		Over $10,100,000
1623	1663
1624	1664		$748,200 plus 12% of the excess
1625	1665
1626	1666		T215
1627	1667
1628	1668		over $10,100,000
1629	1669
1630		-	(6) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, but prior to January 1, 2019, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640~~, as amended by this act,~~ for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4) or (5) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
	1670	+	(6) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, but prior to January 1, 2019, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4) or (5) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
1631	1671
1632	1672
1633	1673
1634	1674		T216 Amount of Taxable Gifts Rate of Tax
1635	1675		T217 Not over $2,600,000 None
1636	1676		T218 Over $2,600,000 7.2% of the excess
1637	1677		T219 but not over $3,600,000 over $2,600,000
1638	1678		T220 Over $3,600,000 $72,000 plus 7.8% of the excess
1639	1679		T221 but not over $4,100,000 over $3,600,000
1640	1680		T222 Over $4,100,000 $111,000 plus 8.4% of the excess
1641	1681		T223 but not over $5,100,000 over $4,100,000
1642	1682		T224 Over $5,100,000 $195,000 plus 10% of the excess
1643	1683		T225 but not over $6,100,000 over $5,100,000
1644	1684		T226 Over $6,100,000 $295,000 plus 10.4% of the excess
1645	1685		T227 but not over $7,100,000 over $6,100,000
1646	1686		T228 Over $7,100,000 $399,900 plus 10.8% of the excess
1647	1687		T229 but not over $8,100,000 over $7,100,000
1648	1688		T230 Over $8,100,000 $507,000 plus 11.2% of the excess
1649	1689		T231 but not over $9,100,000 over $8,100,000
1650	1690		T232 Over $9,100,000 $619,000 plus 11.6% of the excess
1651	1691		T233 but not over $10,100,000 over $9,100,000
1652	1692		T234 Over $10,100,000 $735,000 plus 12% of the excess
1653	1693		T235 over $10,100,000
1654	1694
1655	1695		T216
1656	1696
1657	1697		Amount of Taxable Gifts
1658	1698
1659	1699		Rate of Tax
1660	1700
1661	1701		T217
1662	1702
1663	1703		Not over $2,600,000
1664	1704
1665	1705		None
1666	1706
1667	1707		T218
1668	1708
1669	1709		Over $2,600,000
1670	1710
1671	1711		7.2% of the excess
1672	1712
1673	1713		T219
1674	1714
1675	1715		but not over $3,600,000
1676	1716
1677	1717		over $2,600,000
1678	1718
1679	1719		T220
1680	1720
1681	1721		Over $3,600,000
1682	1722
1683	1723		$72,000 plus 7.8% of the excess
1684	1724
1685	1725		T221
1686	1726
1687	1727		but not over $4,100,000
1688	1728
1689	1729		over $3,600,000
1690	1730
1691	1731		T222
1692	1732
1693	1733		Over $4,100,000
1694	1734
1695	1735		$111,000 plus 8.4% of the excess
1696	1736
1697	1737		T223
1698	1738
1699	1739		but not over $5,100,000
1700	1740
1701	1741		over $4,100,000
1702	1742
1703	1743		T224
1704	1744
1705	1745		Over $5,100,000
1706	1746
1707	1747		$195,000 plus 10% of the excess
1708	1748
1709	1749		T225
1710	1750
1711	1751		but not over $6,100,000
1712	1752
1713	1753		over $5,100,000
1714	1754
1715	1755		T226
1716	1756
1717	1757		Over $6,100,000
1718	1758
1719	1759		$295,000 plus 10.4% of the excess
1720	1760
1721	1761		T227
1722	1762
1723	1763		but not over $7,100,000
1724	1764
1725	1765		over $6,100,000
1726	1766
1727	1767		T228
1728	1768
1729	1769		Over $7,100,000
1730	1770
1731	1771		$399,900 plus 10.8% of the excess
1732	1772
1733	1773		T229
1734	1774
1735	1775		but not over $8,100,000
1736	1776
1737	1777		over $7,100,000
1738	1778
1739	1779		T230
1740	1780
1741	1781		Over $8,100,000
1742	1782
1743	1783		$507,000 plus 11.2% of the excess
1744	1784
1745	1785		T231
1746	1786
1747	1787		but not over $9,100,000
1748	1788
1749	1789		over $8,100,000
1750	1790
1751	1791		T232
1752	1792
1753	1793		Over $9,100,000
1754	1794
1755	1795		$619,000 plus 11.6% of the excess
1756	1796
1757	1797		T233
1758	1798
1759	1799		but not over $10,100,000
1760	1800
1761	1801		over $9,100,000
1762	1802
1763	1803		T234
1764	1804
1765	1805		Over $10,100,000
1766	1806
1767	1807		$735,000 plus 12% of the excess
1768	1808
1769	1809		T235
1770	1810
1771	1811		over $10,100,000
1772	1812
1773		-	(7) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2019, but prior to January 1, 2020, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640~~, as amended by this act,~~ for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5) or (6) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
	1813	+	(7) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2019, but prior to January 1, 2020, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5) or (6) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
1774	1814
1775	1815
1776	1816
1777	1817		T236 Amount of Taxable Gifts Rate of Tax
1778	1818		T237 Not over $3,600,000 None
1779	1819		T238 Over $3,600,000 7.8% of the excess
1780	1820		T239 but not over $4,100,000 over $3,600,000
1781	1821		T240 Over $4,100,000 $39,000 plus 8.4% of the excess
1782	1822		T241 but not over $5,100,000 over $4,100,000
1783	1823		T242 Over $5,100,000 $123,000 plus 10% of the excess
1784	1824		T243 but not over $6,100,000 over $5,100,000
1785	1825		T244 Over $6,100,000 $223,000 plus 10.4% of the excess
1786	1826		T245 but not over $7,100,000 over $6,100,000
1787	1827		T246 Over $7,100,000 $327,000 plus 10.8% of the excess
1788	1828		T247 but not over $8,100,000 over $7,100,000
1789	1829		T248 Over $8,100,000 $435,000 plus 11.2% of the excess
1790	1830		T249 but not over $9,100,000 over $8,100,000
1791	1831		T250 Over $9,100,000 $547,000 plus 11.6% of the excess
1792	1832		T251 but not over $10,100,000 over $9,100,000
1793	1833		T252 Over $10,100,000 $663,000 plus 12% of the excess
1794	1834		T253 over $10,100,000
1795	1835
1796	1836		T236
1797	1837
1798	1838		Amount of Taxable Gifts
1799	1839
1800	1840		Rate of Tax
1801	1841
1802	1842		T237
1803	1843
1804	1844		Not over $3,600,000
1805	1845
1806	1846		None
1807	1847
1808	1848		T238
1809	1849
1810	1850		Over $3,600,000
1811	1851
1812	1852		7.8% of the excess
1813	1853
1814	1854		T239
1815	1855
1816	1856		but not over $4,100,000
1817	1857
1818	1858		over $3,600,000
1819	1859
1820	1860		T240
1821	1861
1822	1862		Over $4,100,000
1823	1863
1824	1864		$39,000 plus 8.4% of the excess
1825	1865
1826	1866		T241
1827	1867
1828	1868		but not over $5,100,000
1829	1869
1830	1870		over $4,100,000
1831	1871
1832	1872		T242
1833	1873
1834	1874		Over $5,100,000
1835	1875
1836	1876		$123,000 plus 10% of the excess
1837	1877
1838	1878		T243
1839	1879
1840	1880		but not over $6,100,000
1841	1881
1842	1882		over $5,100,000
1843	1883
1844	1884		T244
1845	1885
1846	1886		Over $6,100,000
1847	1887
1848	1888		$223,000 plus 10.4% of the excess
1849	1889
1850	1890		T245
1851	1891
1852	1892		but not over $7,100,000
1853	1893
1854	1894		over $6,100,000
1855	1895
1856	1896		T246
1857	1897
1858	1898		Over $7,100,000
1859	1899
1860	1900		$327,000 plus 10.8% of the excess
1861	1901
1862	1902		T247
1863	1903
1864	1904		but not over $8,100,000
1865	1905
1866	1906		over $7,100,000
1867	1907
1868	1908		T248
1869	1909
1870	1910		Over $8,100,000
1871	1911
1872	1912		$435,000 plus 11.2% of the excess
1873	1913
1874	1914		T249
1875	1915
1876	1916		but not over $9,100,000
1877	1917
1878	1918		over $8,100,000
1879	1919
1880	1920		T250
1881	1921
1882	1922		Over $9,100,000
1883	1923
1884	1924		$547,000 plus 11.6% of the excess
1885	1925
1886	1926		T251
1887	1927
1888	1928		but not over $10,100,000
1889	1929
1890	1930		over $9,100,000
1891	1931
1892	1932		T252
1893	1933
1894	1934		Over $10,100,000
1895	1935
1896	1936		$663,000 plus 12% of the excess
1897	1937
1898	1938		T253
1899	1939
1900	1940		over $10,100,000
1901	1941
1902		-	(b) The tax imposed by section 12-640, as amended by this act, shall be paid by the donor. If the gift tax is not paid when due the donee of any gift shall be personally liable for the tax to the extent of the value of the gift.
1903		-
1904		-	(c) (1) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2016, but prior to January 1, 2018, the aggregate amount of tax imposed by section 12-640, as amended by this act, for all calendar years commencing on or after January 1, 2016, shall not exceed twenty million dollars.
1905		-
1906		-	(2) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, but prior to January 1, 2020, the aggregate amount of tax imposed by section 12-640, as amended by this act, for all calendar years commencing on or after January 1, 2016, and prior to January 1, 2020, shall not exceed fifteen million dollars.
1907		-
1908		-	Sec. 8. Section 12-643 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
1909		-
1910		-	[(a) The term "taxable gifts"] (1) "Taxable gifts" means the transfers by gift which are included in taxable gifts for federal gift tax purposes under Section 2503 and Sections 2511 to 2514, inclusive, and Sections 2516 to 2519, inclusive, of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, [amended,] less the deductions allowed in Sections 2522 to 2524, inclusive, of said Internal Revenue Code, except in the event of repeal of the federal gift tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.
	1942	+	(8) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2020, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5), (6) or (7) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:
	1943	+
	1944	+
	1945	+
	1946	+	T254 Amount of Taxable Gifts Rate of Tax
	1947	+	T255 Not over the None
	1948	+	T256 federal basic exclusion amount,
	1949	+	T257 as defined in section 12-643,
	1950	+	T258 as amended by this act,
	1951	+	T259 Over the 10% of the excess over the
	1952	+	T260 federal basic exclusion amount federal basic exclusion amount
	1953	+	T261 but not over $6,100,000
	1954	+	T262 Over $6,100,000 10.4% of the excess over the
	1955	+	T263 but not over $7,100,000 federal basic exclusion amount
	1956	+	T264 Over $7,100,000 10.8% of the excess over the
	1957	+	T265 but not over $8,100,000 federal basic exclusion amount
	1958	+	T266 Over $8,100,000 11.2% of the excess over the
	1959	+	T267 but not over $9,100,000 federal basic exclusion amount
	1960	+	T268 Over $9,100,000 11.6% of the excess over the
	1961	+	T269 but not over $10,100,000 federal basic exclusion amount
	1962	+	T270 Over $10,100,000 12% of the excess over the
	1963	+	T271 federal basic exclusion amount
	1964	+
	1965	+	T254
	1966	+
	1967	+	Amount of Taxable Gifts
	1968	+
	1969	+	Rate of Tax
	1970	+
	1971	+	T255
	1972	+
	1973	+	Not over the
	1974	+
	1975	+	None
	1976	+
	1977	+	T256
	1978	+
	1979	+	federal basic exclusion amount,
	1980	+
	1981	+	T257
	1982	+
	1983	+	as defined in section 12-643,
	1984	+
	1985	+	T258
	1986	+
	1987	+	as amended by this act,
	1988	+
	1989	+	T259
	1990	+
	1991	+	Over the
	1992	+
	1993	+	10% of the excess over the
	1994	+
	1995	+	T260
	1996	+
	1997	+	federal basic exclusion amount
	1998	+
	1999	+	federal basic exclusion amount
	2000	+
	2001	+	T261
	2002	+
	2003	+	but not over $6,100,000
	2004	+
	2005	+	T262
	2006	+
	2007	+	Over $6,100,000
	2008	+
	2009	+	10.4% of the excess over the
	2010	+
	2011	+	T263
	2012	+
	2013	+	but not over $7,100,000
	2014	+
	2015	+	federal basic exclusion amount
	2016	+
	2017	+	T264
	2018	+
	2019	+	Over $7,100,000
	2020	+
	2021	+	10.8% of the excess over the
	2022	+
	2023	+	T265
	2024	+
	2025	+	but not over $8,100,000
	2026	+
	2027	+	federal basic exclusion amount
	2028	+
	2029	+	T266
	2030	+
	2031	+	Over $8,100,000
	2032	+
	2033	+	11.2% of the excess over the
	2034	+
	2035	+	T267
	2036	+
	2037	+	but not over $9,100,000
	2038	+
	2039	+	federal basic exclusion amount
	2040	+
	2041	+	T268
	2042	+
	2043	+	Over $9,100,000
	2044	+
	2045	+	11.6% of the excess over the
	2046	+
	2047	+	T269
	2048	+
	2049	+	but not over $10,100,000
	2050	+
	2051	+	federal basic exclusion amount
	2052	+
	2053	+	T270
	2054	+
	2055	+	Over $10,100,000
	2056	+
	2057	+	12% of the excess over the
	2058	+
	2059	+	T271
	2060	+
	2061	+	federal basic exclusion amount
	2062	+
	2063	+	(b) The tax imposed by section 12-640 shall be paid by the donor. If the gift tax is not paid when due the donee of any gift shall be personally liable for the tax to the extent of the value of the gift.
	2064	+
	2065	+	(c) (1) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2016, but prior to January 1, 2018, the aggregate amount of tax imposed by section 12-640 for all calendar years commencing on or after January 1, 2016, shall not exceed twenty million dollars.
	2066	+
	2067	+	(2) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, the aggregate amount of tax imposed by section 12-640 for all calendar years commencing on or after January 1, 2016, shall not exceed fifteen million dollars.
	2068	+
	2069	+	Sec. 12. Section 12-643 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018, and applicable to gifts made on or after January 1, 2018):
	2070	+
	2071	+	[(a) The term "taxable gifts"] (1) "Taxable gifts" means the transfers by gift which are included in taxable gifts for federal gift tax purposes under Section 2503 and Sections 2511 to 2514, inclusive, and Sections 2516 to 2519, inclusive, of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, less the deductions allowed in Sections 2522 to 2524, inclusive, of said Internal Revenue Code, except in the event of repeal of the federal gift tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.
1911	2072
1912	2073		[(b)] (2) In the administration of the tax under this chapter, the Commissioner of Revenue Services shall apply the provisions of Sections 2701 to 2704, inclusive, of said Internal Revenue Code. The words "secretary or his delegate" as used in the aforementioned sections of the Internal Revenue Code means the Commissioner of Revenue Services.
1913	2074
1914		-	[(c) The term] (3) "Connecticut taxable gifts" means taxable gifts made during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2020, that are, [(1)] (A) for residents of this state, taxable gifts, wherever located, but excepting gifts of real estate or tangible personal property located outside this state, and [(2)] (B) for nonresidents of this state, gifts of real estate or tangible personal property located within this state.
1915		-
1916		-	Sec. 9. Subsection (a) of section 12-211a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
1917		-
1918		-	(a) (1) Notwithstanding any provision of the general statutes, and except as otherwise provided in subdivision (5) of this subsection or in subsection (b) of this section, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for any calendar year shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to such calendar year of the taxpayer prior to the application of such credit or credits.
1919		-
1920		-	(2) For the calendar year commencing January 1, 2011, "type one tax credits" means tax credits allowable under section 12-217jj, as amended by this act, 12-217kk or 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
1921		-
1922		-	(3) For the calendar year commencing January 1, 2012, "type one tax credits" means the tax credit allowable under section 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
1923		-
1924		-	(4) For [the] calendar years commencing on or after January 1, 2013, [January 1, 2014, January 1, 2015, and January 1, 2016,] "type one tax credits" means the tax credit allowable under sections 12-217jj, as amended by this act, 12-217kk and 12-217ll; "type two tax credits" means tax credits allowable under section 38a-88a; "type three tax credits" means tax credits that are not type one tax credits or type two tax credits; "thirty per cent threshold" means thirty per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credit; "fifty-five per cent threshold" means fifty-five per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits; and "seventy per cent threshold" means seventy per cent of the amount of tax due from a taxpayer under this chapter prior to the application of tax credits.
1925		-
1926		-	(5) For calendar years commencing on or after January 1, 2011, [and prior to January 1, 2017,] and subject to the provisions of subdivisions (2), (3) and (4) of this subsection, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter shall not exceed:
1927		-
1928		-	(A) If the tax credit or credits being claimed by a taxpayer are type three tax credits only, thirty per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits.
1929		-
1930		-	(B) If the tax credit or credits being claimed by a taxpayer are type one tax credits and type three tax credits, but not type two tax credits, fifty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits, provided (i) type three tax credits shall be claimed before type one tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, and (iii) the sum of the type one tax credits and the type three tax credits being claimed may not exceed the fifty-five per cent threshold.
1931		-
1932		-	(C) If the tax credit or credits being claimed by a taxpayer are type two tax credits and type three tax credits, but not type one tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credit or credits, provided (i) type three tax credits shall be claimed before type two tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, and (iii) the sum of the type two tax credits and the type three tax credits being claimed may not exceed the seventy per cent threshold.
1933		-
1934		-	(D) If the tax credit or credits being claimed by a taxpayer are type one tax credits, type two tax credits and type three tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credits, provided (i) type three tax credits shall be claimed before type one tax credits or type two tax credits are claimed, and the type one tax credits shall be claimed before the type two tax credits are claimed, (ii) the type three tax credits being claimed may not exceed the thirty per cent threshold, (iii) the sum of the type one tax credits and the type three tax credits being claimed may not exceed the fifty-five per cent threshold, and (iv) the sum of the type one tax credits, the type two tax credits and the type three tax credits being claimed may not exceed the seventy per cent threshold.
1935		-
1936		-	(E) If the tax credit or credits being claimed by a taxpayer are type one tax credits and type two tax credits only, but not type three tax credits, seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to said calendar years of the taxpayer prior to the application of such credits, provided (i) the type one tax credits shall be claimed before type two tax credits are claimed, (ii) the type one tax credits being claimed may not exceed the fifty-five per cent threshold, and (iii) the sum of the type one tax credits and the type two tax credits being claimed may not exceed the seventy per cent threshold.
1937		-
1938		-	Sec. 10. Subparagraph (A) of subdivision (3) of subsection (a) of section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
1939		-
1940		-	(3) (A) "Qualified production" means entertainment content created in whole or in part within the state, including motion pictures, except as otherwise provided in this subparagraph; documentaries; long-form, specials, mini-series, series, sound recordings, videos and music videos and interstitials television programming; interactive television; relocated television production; interactive games; videogames; commercials; any format of digital media, including an interactive web site, created for distribution or exhibition to the general public; and any trailer, pilot, video teaser or demo created primarily to stimulate the sale, marketing, promotion or exploitation of future investment in either a product or a qualified production via any means and media in any digital media format, film or videotape, provided such program meets all the underlying criteria of a qualified production. For [the] state fiscal years ending on or after June 30, 2014, [June 30, 2015, June 30, 2016, and June 30, 2017,] "qualified production" shall not include a motion picture that has not been designated as a state-certified qualified production prior to July 1, 2013, and no tax credit voucher for such motion picture may be issued [during said years] for such motion picture, except, for [the] state fiscal years ending on or after June 30, 2015, [June 30, 2016, and June 30, 2017,] "qualified production" shall include a motion picture for which twenty-five per cent or more of the principal photography shooting days are in this state at a facility that receives not less than twenty-five million dollars in private investment and opens for business on or after July 1, 2013, and a tax credit voucher may be issued for such motion picture.
1941		-
1942		-	Sec. 11. Section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
1943		-
1944		-	(a) As used in this section:
1945		-
1946		-	(1) "Commissioner" means the Commissioner of Revenue Services.
1947		-
1948		-	(2) "Department" means the Department of Economic and Community Development.
1949		-
1950		-	(3) (A) "Qualified production" means entertainment content created in whole or in part within the state, including motion pictures, except as otherwise provided in this subparagraph; documentaries; long-form, specials, mini-series, series, sound recordings, videos and music videos and interstitials television programming; interactive television; relocated television production; interactive games; videogames; commercials; any format of digital media, including an interactive web site, created for distribution or exhibition to the general public; and any trailer, pilot, video teaser or demo created primarily to stimulate the sale, marketing, promotion or exploitation of future investment in either a product or a qualified production via any means and media in any digital media format, film or videotape, provided such program meets all the underlying criteria of a qualified production. For the state fiscal years ending June 30, 2014, June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall not include a motion picture that has not been designated as a state-certified qualified production prior to July 1, 2013, and no tax credit voucher for such motion picture may be issued during said years, except, for the state fiscal years ending June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall include a motion picture for which twenty-five per cent or more of the principal photography shooting days are in this state at a facility that receives not less than twenty-five million dollars in private investment and opens for business on or after July 1, 2013, and a tax credit voucher may be issued for such motion picture.
1951		-
1952		-	(B) "Qualified production" shall not include any ongoing television program created primarily as news, weather or financial market reports; a production featuring current events, other than a relocated television production, sporting events, an awards show or other gala event; a production whose sole purpose is fundraising; a long-form production that primarily markets a product or service; a production used for corporate training or in-house corporate advertising or other similar productions; or any production for which records are required to be maintained under 18 USC 2257, as amended from time to time, with respect to sexually explicit content.
1953		-
1954		-	(4) "Eligible production company" means a corporation, partnership, limited liability company, or other business entity engaged in the business of producing qualified productions on a one-time or ongoing basis, and qualified by the Secretary of the State to engage in business in the state.
1955		-
1956		-	(5) "Production expenses or costs" means all expenditures clearly and demonstrably incurred in the state in the preproduction, production or postproduction costs of a qualified production, including:
1957		-
1958		-	(A) Expenditures incurred in the state in the form of either compensation or purchases including production work, production equipment not eligible for the infrastructure tax credit provided in section 12-217kk, production software, postproduction work, postproduction equipment, postproduction software, set design, set construction, props, lighting, wardrobe, makeup, makeup accessories, special effects, visual effects, audio effects, film processing, music, sound mixing, editing, location fees, soundstages and any and all other costs or services directly incurred in connection with a state-certified qualified production;
1959		-
1960		-	(B) Expenditures for distribution, including preproduction, production or postproduction costs relating to the creation of trailers, marketing videos, commercials, point-of-purchase videos and any and all content created on film or digital media, including the duplication of films, videos, CDs, DVDs and any and all digital files now in existence and those yet to be created for mass consumer consumption; the purchase, by a company in the state, of any and all equipment relating to the duplication or mass market distribution of any content created or produced in the state by any digital media format which is now in use and those formats yet to be created for mass consumer consumption; and
1961		-
1962		-	(C) "Production expenses or costs" does not include the following: (i) On and after January 1, 2008, compensation in excess of fifteen million dollars paid to any individual or entity representing an individual, for services provided in the production of a qualified production and on or after January 1, 2010, compensation subject to Connecticut personal income tax in excess of twenty million dollars paid in the aggregate to any individuals or entities representing individuals, for star talent provided in the production of a qualified production; (ii) media buys, promotional events or gifts or public relations associated with the promotion or marketing of any qualified production; (iii) deferred, leveraged or profit participation costs relating to any and all personnel associated with any and all aspects of the production, including, but not limited to, producer fees, director fees, talent fees and writer fees; (iv) costs relating to the transfer of the production tax credits; (v) any amounts paid to persons or businesses as a result of their participation in profits from the exploitation of the qualified production; and (vi) any expenses or costs relating to an independent certification, as required by subsection (g) of this section, or as the department may otherwise require, pertaining to the amount of production expenses or costs set forth by an eligible production company in its application for a production tax credit.
1963		-
1964		-	(6) "Sound recording" means a recording of music, poetry or spoken-word performance, but does not include the audio portions of dialogue or words spoken and recorded as part of a motion picture, video, theatrical production, television news coverage or athletic event.
1965		-
1966		-	(7) "State-certified qualified production" means a qualified production produced by an eligible production company that (A) is in compliance with regulations adopted pursuant to subsection (k) of this section, (B) is authorized to conduct business in this state, and (C) has been approved by the department as qualifying for a production tax credit under this section.
1967		-
1968		-	(8) "Interactive web site" means a web site, the production costs of which (A) exceed five hundred thousand dollars per income year, and (B) is primarily (i) interactive games or end user applications, or (ii) animation, simulation, sound, graphics, story lines or video created or repurposed for distribution over the Internet. An interactive web site does not include a web site primarily used for institutional, private, industrial, retail or wholesale marketing or promotional purposes, or which contains obscene content.
1969		-
1970		-	(9) "Post-certification remedy" means the recapture, disallowance, recovery, reduction, repayment, forfeiture, decertification or any other remedy that would have the effect of reducing or otherwise limiting the use of a tax credit provided by this section.
1971		-
1972		-	(10) "Compensation" means base salary or wages and does not include bonus pay, stock options, restricted stock units or similar arrangements.
1973		-
1974		-	(11) "Relocated television production" means:
1975		-
1976		-	(A) An ongoing television program all of the prior seasons of which were filmed outside this state, and may include current events shows, except those referenced in subparagraph (B)(i) of this subdivision.
1977		-
1978		-	(B) An eligible production company's television programming in this state that (i) is not a general news program, sporting event or game broadcast, and (ii) is created at a qualified production facility that has had a minimum investment of twenty-five million dollars made by such eligible production company on or after January 1, 2012, at which facility the eligible production company creates ongoing television programming as defined in subparagraph (A) of this subdivision, and creates at least two hundred new jobs in Connecticut on or after January 1, 2012. For purposes of this subdivision, "new job" means a full-time job, as defined in section 12-217ii, that did not exist in this state prior to January 1, 2012, and is filled by a new employee, and "new employee" includes a person who was employed outside this state by the eligible production company prior to January 1, 2012, but does not include a person who was employed in this state by the eligible production company or a related person, as defined in section 12-217ii, with respect to the eligible production company during the prior twelve months.
1979		-
1980		-	(C) A relocated television production may be a state-certified qualified production for not more than ten successive income years, after which period the eligible production company shall be ineligible to resubmit an application for certification.
1981		-
1982		-	(b) (1) The Department of Economic and Community Development shall administer a system of tax credit vouchers within the resources, requirements and purposes of this section for eligible production companies producing a state-certified qualified production in the state.
1983		-
1984		-	[(1) For income years commencing on or after January 1, 2006, but prior to January 1, 2010, any eligible production company incurring production expenses or costs in excess of fifty thousand dollars shall be eligible for a credit against the tax imposed under chapter 207 or this chapter equal to thirty per cent of such production expenses or costs.]
1985		-
1986		-	(2) [For income years commencing on or after January 1, 2010, (A) any] Any eligible production company incurring production expenses or costs shall be eligible for a credit (A) for income years commencing on or after January 1, 2010, but prior to January 1, 2018, against the tax imposed under chapter 207 or this chapter, and (B) for income years commencing on or after January 1, 2018, against the tax imposed under chapter 207 or 211 or this chapter, as follows: (i) For any such company incurring [production] such expenses or costs of not less than one hundred thousand dollars, but not more than five hundred thousand dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to ten per cent of such [production] expenses or costs, [(B)] (ii) any such company incurring such expenses or costs of more than five hundred thousand dollars, but not more than one million dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to fifteen per cent of such [production] expenses or costs, and [(C)] (iii) any such company incurring such expenses or costs of more than one million dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to thirty per cent of such [production] expenses or costs.
1987		-
1988		-	(c) No eligible production company incurring an amount of production expenses or costs that qualifies for such credit shall be eligible for such credit unless on or after January 1, 2010, such company conducts (1) not less than fifty per cent of principal photography days within the state, or (2) expends not less than fifty per cent of postproduction costs within the state, or (3) expends not less than one million dollars of postproduction costs within the state.
1989		-
1990		-	[(d) (1) For income years commencing on or after January 1, 2009, but prior to January 1, 2010, fifty per cent of production expenses or costs shall be counted toward such credit when incurred outside the state and used within the state, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.]
1991		-
1992		-	[(2)] (d) For income years commencing on or after January 1, 2010, no expenses or costs incurred outside the state and used within the state shall be eligible for a credit, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.
1993		-
1994		-	(e) (1) On and after July 1, 2006, and for income years commencing on or after January 1, 2006, any credit allowed pursuant to this section may be sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers, provided (A) no credit, after issuance, may be sold, assigned or otherwise transferred, in whole or in part, more than three times, (B) in the case of a credit allowed for the income year commencing on or after January 1, 2011, and prior to January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than fifty per cent of such credit in any one income year, and (C) in the case of a credit allowed for an income year commencing on or after January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than twenty-five per cent of such credit in any one income year.
1995		-
1996		-	(2) Notwithstanding the provisions of subdivision (1) of this subsection, any entity that is not subject to tax under this chapter or chapter 207 shall not be subject to the limitations on the transfer of credits provided in subparagraphs (B) and (C) of said subdivision (1), provided such entity owns not less than fifty per cent, directly or indirectly, of a business entity subject to tax under section 12-284b.
1997		-
1998		-	(3) Notwithstanding the provisions of subdivision (1) of this subsection, any qualified production that is created in whole or in significant part, as determined by the Commissioner of Economic and Community Development, at a qualified production facility shall not be subject to the limitations of subparagraph (B) or (C) of said subdivision (1). For purposes of this subdivision, "qualified production facility" means a facility (A) located in this state, (B) intended for film, television or digital media production, and (C) that has had a minimum investment of three million dollars, or less if the Commissioner of Economic and Community Development determines such facility otherwise qualifies.
1999		-
2000		-	(4) For income years commencing on or after January 1, 2018, any credit that is sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers pursuant to subdivision (1) of this subsection, which credit is claimed against the tax imposed under chapter 211, shall be subject to the following limits:
2001		-
2002		-	(A) The taxpayer may only claim ninety-five per cent of the amount of such credit entered by the department on the production tax credit voucher; and
2003		-
2004		-	(B) If there is common ownership of at least fifty per cent between such taxpayer and the eligible production company that sold, assigned or otherwise transferred such credit, such taxpayer may only claim ninety-two per cent of the amount of such credit entered by the department on the production tax credit voucher.
2005		-
2006		-	(f) (1) On and after July 1, 2006, and for income years commencing on or after January 1, 2006, all or part of any such credit allowed under this [subsection shall] section may be claimed against the tax imposed under chapter 207 or this chapter for the income year in which the production expenses or costs were incurred, or in the three immediately succeeding income years.
2007		-
2008		-	(2) For production tax credit vouchers issued on or after July 1, 2015, all or part of any such credit [shall] may be claimed against (A) the tax imposed under chapter 207 or this chapter, or (B) for income years commencing on or after January 1, 2018, the tax imposed under chapter 207 or 211 or this chapter, for the income year in which the production expenses or costs were incurred, or in the five immediately succeeding income years.
2009		-
2010		-	(3) Any production tax credit allowed under this subsection shall be nonrefundable.
2011		-
2012		-	(g) (1) An eligible production company shall apply to the department for a tax credit voucher on an annual basis, but not later than ninety days after the first production expenses or costs are incurred in the production of a qualified production, and shall provide with such application such information as the department may require to determine such company's eligibility to claim a credit under this section. No production expenses or costs may be listed more than once for purposes of the tax credit voucher pursuant to this section, or pursuant to section 12-217kk or 12-217ll, and if a production expense or cost has been included in a claim for a credit, such production expense or cost may not be included in any subsequent claim for a credit.
2013		-
2014		-	(2) Not later than ninety days after the end of the annual period, or after the last production expenses or costs are incurred in the production of a qualified production, an eligible production company shall apply to the department for a production tax credit voucher, and shall provide with such application such information and independent certification as the department may require pertaining to the amount of such company's production expenses or costs. Such independent certification shall be provided by an audit professional chosen from a list compiled by the department. If the department determines that such company is eligible to be issued a production tax credit voucher, the department shall enter on the voucher the amount of production expenses or costs that has been established to the satisfaction of the department and the amount of such company's credit under this section. The department shall provide a copy of such voucher to the commissioner, upon request.
2015		-
2016		-	(3) The department shall charge a reasonable administrative fee sufficient to cover the department's costs to analyze applications submitted under this section.
2017		-
2018		-	(h) If an eligible production company sells, assigns or otherwise transfers a credit under this section to another taxpayer, the transferor and transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. If such transferee sells, assigns or otherwise transfers a credit under this section to a subsequent transferee, such transferee and such subsequent transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. The notification after each transfer shall include the credit voucher number, the date of transfer, the amount of such credit transferred, the tax credit balance before and after the transfer, the tax identification numbers for both the transferor and the transferee, and any other information required by the department. Failure to comply with this subsection will result in a disallowance of the tax credit until there is full compliance on the part of the transferor and the transferee, and for a second or third transfer, on the part of all subsequent transferors and transferees. The department shall provide a copy of the notification of assignment to the commissioner upon request.
2019		-
2020		-	(i) Any eligible production company that submits information to the department that it knows to be fraudulent or false shall, in addition to any other penalties provided by law, be liable for a penalty equal to the amount of such company's credit entered on the production tax credit [certificate] voucher issued under this section.
2021		-
2022		-	(j) No tax credits transferred pursuant to this section shall be subject to a post-certification remedy, and the department and the commissioner shall have no right, except in the case of possible material misrepresentation or fraud, to conduct any further or additional review, examination or audit of the expenditures or costs for which such tax credits were issued. The sole and exclusive remedy of the department and the commissioner shall be to seek collection of the amount of such tax credits from the entity that committed the fraud or misrepresentation.
2023		-
2024		-	(k) The department, in consultation with the commissioner, shall adopt regulations, in accordance with the provisions of chapter 54, as may be necessary for the administration of this section.
2025		-
2026		-	Sec. 12. Subdivision (62) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2027		-
2028		-	(62) (A) Sales of any of the services enumerated in subparagraph (I), (K) or (L) of subdivision (2) of subsection (a) of section 12-407 that are rendered for a business entity affiliated with the business entity rendering such service in such manner that (i) either business entity in such transaction owns a controlling interest in the other business entity, or (ii) a controlling interest in each business entity in such transaction is owned by the same person or persons or business entity or business entities.
2029		-
2030		-	(B) For purposes of this subdivision, (i) "business entity" means a corporation, trust, estate, partnership, limited partnership, limited liability partnership, limited liability company, single member limited liability company, sole proprietorship, nonstock corporation or a federally-recognized Indian tribe; (ii) "controlling interest" means, in the case of a business entity that is a corporation, ownership of stock possessing [one hundred] at least eighty per cent of the total combined voting power of all classes of stock entitled to vote or [one hundred] at least eighty per cent of the total value of shares of all classes of stock of such corporation; in the case of a business entity that is a trust or estate, ownership of a beneficial interest of one hundred per cent in such trust or estate; in the case of a business entity that is a partnership, limited partnership or limited liability partnership, ownership of one hundred per cent of the profits interest or capital interest in such partnership, limited partnership or limited liability partnership; in the case of a limited liability company with more than one member, ownership of [one hundred] at least eighty per cent of the profits interest, capital interest or membership interests in such limited liability company; in the case of a business entity that is a sole proprietorship or single member limited liability company, ownership of such sole proprietorship or single member limited liability company; in the case of a business entity that is a nonstock corporation with voting members, control of one hundred per cent of all voting membership interests in such corporation; and in the case of a business entity that is a nonstock corporation with no voting members, control of one hundred per cent of the board of directors of such corporation; (iii) whether a controlling interest in a business entity is owned shall be determined in accordance with Section 267 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, provided where a controlling interest is owned in a business entity other than a stock corporation, the term "stock" as used in said Section 267 of the Internal Revenue Code means, in the case of a partnership, limited partnership, limited liability partnership or limited liability company treated as a partnership for federal income tax purposes, the profits interest or capital interest in such partnership, in the case of a business entity that is a trust or estate, the beneficial interests in such trust or estate, and in the case of a business entity that is a nonstock corporation, the voting membership interests in such corporation, or if it has no voting members, the control of the board of directors; (iv) a business entity has "control of" the board of directors of a nonstock corporation if one hundred per cent of the voting members of the board of directors are either representatives of, including ex-officio directors, or persons appointed by such business entity, or "control of" one hundred per cent of the voting membership interests in a nonstock corporation if one hundred per cent of the voting membership interests are held by the business entity or by representatives of, including ex-officio members, or persons appointed by such business entity.
2031		-
2032		-	Sec. 13. (NEW) (Effective July 1, 2017) (a) As used in this section:
2033		-
2034		-	(1) "Accumulated credits" means the amount of credits allowed, in accordance with the provisions of section 12-217n of the general statutes, that have not been taken through an applicant's last income year completed prior to the date of an application submitted as provided in subsection (b) of this section.
2035		-
2036		-	(2) "Commissioner" means the Commissioner of Economic and Community Development.
2037		-
2038		-	(b) The commissioner shall establish and administer a program to allow businesses in the state to utilize accumulated credits against the tax imposed under chapters 208 and 219 of the general statutes in exchange for capital projects, planned or underway, in the state that propose to (1) expand the scale or scope of such business, (2) increase employment at such business, or (3) generate a substantial return to the state economy. A business seeking to utilize accumulated credits under this section shall submit to the commissioner, on forms provided by the commissioner, an application that shall include, but not be limited to: (A) A detailed plan outlining the capital project, (B) the term of such project, (C) the estimated costs of such project, and (D) the amount of accumulated credits the business proposes it be allowed to utilize under this section. The commissioner shall perform an econometric analysis of each application and shall only approve an application if he or she determines that such project will generate revenues for the state that exceed the amount of the accumulated credits proposed to be utilized. The amount of such accumulated credits shall be subject to confirmation, in accordance with the provisions of title 12 of the general statutes, by the Commissioner of Revenue Services in consultation with the commissioner.
2039		-
2040		-	(c) The commissioner shall determine, in consultation with the Commissioner of Revenue Services, when such accumulated credits may be utilized by the business, provided the commissioner shall not approve the utilization of the accumulated credits until the capital project under subsection (b) of this section generates revenues for the state that exceed the amount of the accumulated credits proposed to be utilized.
2041		-
2042		-	(d) The commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section.
2043		-
2044		-	(e) Not later than July 1, 2018, and annually thereafter, the commissioner shall submit a report, 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 commerce and finance. Such report shall include (1) information on the number of applications received and the number of applications approved under this section, (2) the status of the capital projects associated with such approved applications, (3) the amount of accumulated credits that are proposed to be utilized under this section, and (4) (A) the amount and type of state revenue generated in connection with each such capital project to date, and (B) the projected amount and type of such revenue for the five succeeding fiscal years after completion of such capital project.
2045		-
2046		-	Sec. 14. (NEW) (Effective July 1, 2017) (a) (1) As used in this section, (A) "accumulated credits" means credits allowed under sections 12-217j and 12-217n of the general statutes that have not been taken through the last income year completed prior to the date of an auction under this section, (B) "commissioner" means the Commissioner of Economic and Community Development, and (C) "chief executive officer" means the chief executive officer of Connecticut Innovations, Incorporated.
2047		-
2048		-	(2) The commissioner, in consultation with the Commissioner of Revenue Services and the chief executive officer, shall hold a Technical Education Cooperative (TEC) initiative tax credit auction and an innovation investment fund tax credit auction, at such time and as frequently as the commissioner deems appropriate and effective, to allow taxpayers with accumulated credits to utilize such credits in exchange for making an investment as provided under subsections (b) and (c) of this section.
2049		-
2050		-	(3) The commissioner shall specify, in consultation with the chief executive officer, for each tax credit auction, the deadline for submitting a bid and the information required to be included with such bid. Each bidder shall submit a sealed bid and the commissioner shall select, in consultation with the chief executive officer, the winning bid or bids based upon the amounts of accumulated credits the bidder proposes to exchange, the amounts the bidder proposes to invest for such exchange and any other criteria the commissioner and the chief executive officer deem appropriate to evaluate the bids, taking into consideration the total amount of investments sought, if any, from each auction.
2051		-
2052		-	(4) Credits allowed under this section may be claimed against the taxes imposed under chapters 207 and 219 of the general statutes and section 12-263b of the general statutes, as amended by this act, with respect to the following income years of the taxpayer: (A) With respect to the income year in which the taxpayer made the investment required under this section and the two next succeeding income years, zero per cent; and (B) with respect to the third full income year succeeding the year in which the taxpayer made the investment required under this section and the four next succeeding income years, twenty per cent.
2053		-
2054		-	(5) The total amount of accumulated credits exchanged in the aggregate under this section shall not exceed fifty million dollars.
2055		-
2056		-	(b) (1) The commissioner, in consultation with the chief executive officer, shall hold a TEC initiative tax credit auction, for which the minimum bid shall be eighty cents for each dollar of accumulated credit. The commissioner shall deposit the amount received from the auction in the TEC initiative account established pursuant to subsection (d) of this section.
2057		-
2058		-	(2) The commissioner shall administer, in consultation with the chief executive officer, the TEC initiative account to provide funding and expand education and training opportunities as set forth in this subdivision in order to prepare the state's workforce to fill existing and anticipated manufacturing jobs and increase the number of state high school and community college graduates with training and experience in manufacturing, computer programming, information technology and data management. Components of the TEC initiative shall include, but not be limited to:
2059		-
2060		-	(A) Providing funds to expand and enhance, in consultation with the Connecticut Center for Advanced Technology, Incorporated, manufacturing technology support programs and services offered to manufacturers in the state;
2061		-
2062		-	(B) Providing funds to expand to additional schools in the state, in consultation with the Connecticut Center for Advanced Technology, Incorporated, programs to engage and encourage students to consider a technical education as a highly successful and desirable career path;
2063		-
2064		-	(C) Building new, proactive partnerships with employers and manufacturers in the state by (i) establishing employer-led job pipeline initiatives in each workforce development board region in the state to match open jobs with qualified workers identified by such board, (ii) providing funds to support the Subsidized Training and Employment program established pursuant to section 31-3pp of the general statutes and apprenticeship programs in the state, and (iii) providing funds to expand adult education programs and classes for workers seeking new skills for new careers; and
2065		-
2066		-	(D) Providing grants to partnerships between (i) local school districts, technical schools or community colleges, and (ii) private businesses, that are seeking to establish a technical education program or to expand the capacity of a technical education program at a public high school, technical school or community college. Preference for awarding grants under this subdivision shall be given to applications that include private matching funds.
2067		-
2068		-	(c) The commissioner, in consultation with the chief executive officer, shall hold an innovation investment fund tax credit auction, for which the minimum bid shall be eighty cents for each dollar of accumulated credit and the amounts received from the winning bidder or bidders shall be invested in the winning bidder's corporate venture fund, subject to the following requirements:
2069		-
2070		-	(1) All investments shall be made with a representative of Connecticut Innovations, Incorporated, who is a member of the corporate venture fund's investment committee;
2071		-
2072		-	(2) The amount invested in a corporate venture fund shall be not less than five million dollars and not more than ten million dollars;
2073		-
2074		-	(3) All such amounts invested shall be invested in (A) start-up businesses located in the state, or (B) spin-off companies from the bidder's research and development department;
2075		-
2076		-	(4) All profits from such investments shall be divided equally between the state and the bidder and the state's share shall be deposited in the General Fund; and
2077		-
2078		-	(5) The bidder agrees to reinvest the bidder's profits in the bidder's corporate venture fund.
2079		-
2080		-	(d) There is established an account to be known as the "TEC initiative 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 commissioner, in consultation with the chief executive officer, for the purposes of subsection (b) of this section.
2081		-
2082		-	Sec. 15. Section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2083		-
2084		-	(a) As used in this section:
2085		-
2086		-	(1) "Commissioner" means the Commissioner of Revenue Services.
2087		-
2088		-	(2) "Department" means the Department of Economic and Community Development.
2089		-
2090		-	(3) (A) "Qualified production" means entertainment content created in whole or in part within the state, including motion pictures, except as otherwise provided in this subparagraph; documentaries; long-form, specials, mini-series, series, sound recordings, videos and music videos and interstitials television programming; interactive television; relocated television production; interactive games; videogames; commercials; any format of digital media, including an interactive web site, created for distribution or exhibition to the general public; and any trailer, pilot, video teaser or demo created primarily to stimulate the sale, marketing, promotion or exploitation of future investment in either a product or a qualified production via any means and media in any digital media format, film or videotape, provided such program meets all the underlying criteria of a qualified production. For the state fiscal years ending June 30, 2014, June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall not include a motion picture that has not been designated as a state-certified qualified production prior to July 1, 2013, and no tax credit voucher for such motion picture may be issued during said years, except, for the state fiscal years ending June 30, 2015, June 30, 2016, and June 30, 2017, "qualified production" shall include a motion picture for which twenty-five per cent or more of the principal photography shooting days are in this state at a facility that receives not less than twenty-five million dollars in private investment and opens for business on or after July 1, 2013, and a tax credit voucher may be issued for such motion picture.
2091		-
2092		-	(B) "Qualified production" shall not include any ongoing television program created primarily as news, weather or financial market reports; a production featuring current events, other than a relocated television production, sporting events, an awards show or other gala event; a production whose sole purpose is fundraising; a long-form production that primarily markets a product or service; a production used for corporate training or in-house corporate advertising or other similar productions; or any production for which records are required to be maintained under 18 USC 2257, as amended from time to time, with respect to sexually explicit content.
2093		-
2094		-	(4) "Eligible production company" means a corporation, partnership, limited liability company, or other business entity engaged in the business of producing qualified productions on a one-time or ongoing basis, and qualified by the Secretary of the State to engage in business in the state.
2095		-
2096		-	(5) "Production expenses or costs" means all expenditures clearly and demonstrably incurred in the state in the preproduction, production or postproduction costs of a qualified production, including:
2097		-
2098		-	(A) Expenditures incurred in the state in the form of either compensation or purchases including production work, production equipment not eligible for the infrastructure tax credit provided in section 12-217kk, production software, postproduction work, postproduction equipment, postproduction software, set design, set construction, props, lighting, wardrobe, makeup, makeup accessories, special effects, visual effects, audio effects, film processing, music, sound mixing, editing, location fees, soundstages and any and all other costs or services directly incurred in connection with a state-certified qualified production;
2099		-
2100		-	(B) Expenditures for distribution, including preproduction, production or postproduction costs relating to the creation of trailers, marketing videos, commercials, point-of-purchase videos and any and all content created on film or digital media, including the duplication of films, videos, CDs, DVDs and any and all digital files now in existence and those yet to be created for mass consumer consumption; the purchase, by a company in the state, of any and all equipment relating to the duplication or mass market distribution of any content created or produced in the state by any digital media format which is now in use and those formats yet to be created for mass consumer consumption; and
2101		-
2102		-	(C) "Production expenses or costs" does not include the following: (i) On and after January 1, 2008, compensation in excess of fifteen million dollars paid to any individual or entity representing an individual, for services provided in the production of a qualified production and on or after January 1, 2010, compensation subject to Connecticut personal income tax in excess of twenty million dollars paid in the aggregate to any individuals or entities representing individuals, for star talent provided in the production of a qualified production; (ii) media buys, promotional events or gifts or public relations associated with the promotion or marketing of any qualified production; (iii) deferred, leveraged or profit participation costs relating to any and all personnel associated with any and all aspects of the production, including, but not limited to, producer fees, director fees, talent fees and writer fees; (iv) costs relating to the transfer of the production tax credits; (v) any amounts paid to persons or businesses as a result of their participation in profits from the exploitation of the qualified production; and (vi) any expenses or costs relating to an independent certification, as required by subsection (g) of this section, or as the department may otherwise require, pertaining to the amount of production expenses or costs set forth by an eligible production company in its application for a production tax credit.
2103		-
2104		-	(6) "Sound recording" means a recording of music, poetry or spoken-word performance, but does not include the audio portions of dialogue or words spoken and recorded as part of a motion picture, video, theatrical production, television news coverage or athletic event.
2105		-
2106		-	(7) "State-certified qualified production" means a qualified production produced by an eligible production company that (A) is in compliance with regulations adopted pursuant to subsection (k) of this section, (B) is authorized to conduct business in this state, and (C) has been approved by the department as qualifying for a production tax credit under this section.
2107		-
2108		-	(8) "Interactive web site" means a web site, the production costs of which (A) exceed five hundred thousand dollars per income year, and (B) is primarily (i) interactive games or end user applications, or (ii) animation, simulation, sound, graphics, story lines or video created or repurposed for distribution over the Internet. An interactive web site does not include a web site primarily used for institutional, private, industrial, retail or wholesale marketing or promotional purposes, or which contains obscene content.
2109		-
2110		-	(9) "Post-certification remedy" means the recapture, disallowance, recovery, reduction, repayment, forfeiture, decertification or any other remedy that would have the effect of reducing or otherwise limiting the use of a tax credit provided by this section.
2111		-
2112		-	(10) "Compensation" means base salary or wages and does not include bonus pay, stock options, restricted stock units or similar arrangements.
2113		-
2114		-	(11) "Relocated television production" means:
2115		-
2116		-	(A) An ongoing television program all of the prior seasons of which were filmed outside this state, and may include current events shows, except those referenced in subparagraph (B)(i) of this subdivision.
2117		-
2118		-	(B) An eligible production company's television programming in this state that (i) is not a general news program, sporting event or game broadcast, and (ii) is created at a qualified production facility that has had a minimum investment of twenty-five million dollars made by such eligible production company on or after January 1, 2012, at which facility the eligible production company creates ongoing television programming as defined in subparagraph (A) of this subdivision, and creates at least two hundred new jobs in Connecticut on or after January 1, 2012. For purposes of this subdivision, "new job" means a full-time job, as defined in section 12-217ii, that did not exist in this state prior to January 1, 2012, and is filled by a new employee, and "new employee" includes a person who was employed outside this state by the eligible production company prior to January 1, 2012, but does not include a person who was employed in this state by the eligible production company or a related person, as defined in section 12-217ii, with respect to the eligible production company during the prior twelve months.
2119		-
2120		-	(C) A relocated television production may be a state-certified qualified production for not more than ten successive income years, after which period the eligible production company shall be ineligible to resubmit an application for certification.
2121		-
2122		-	(b) (1) The Department of Economic and Community Development shall administer a system of tax credit vouchers within the resources, requirements and purposes of this section for eligible production companies producing a state-certified qualified production in the state.
2123		-
2124		-	[(1) For income years commencing on or after January 1, 2006, but prior to January 1, 2010, any eligible production company incurring production expenses or costs in excess of fifty thousand dollars shall be eligible for a credit against the tax imposed under chapter 207 or this chapter equal to thirty per cent of such production expenses or costs.]
2125		-
2126		-	(2) [For income years commencing on or after January 1, 2010, (A) any] Any eligible production company incurring production expenses or costs shall be eligible for a credit (A) for income years commencing on or after January 1, 2010, but prior to January 1, 2018, against the tax imposed under chapter 207 or this chapter, and (B) for income years commencing on or after January 1, 2018, against the tax imposed under chapter 207 or 219 or this chapter, as follows: (i) For any such company incurring [production] such expenses or costs of not less than one hundred thousand dollars, but not more than five hundred thousand dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to ten per cent of such [production] expenses or costs, [(B)] (ii) any such company incurring such expenses or costs of more than five hundred thousand dollars, but not more than one million dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to fifteen per cent of such [production] expenses or costs, and [(C)] (iii) any such company incurring such expenses or costs of more than one million dollars, [shall be eligible for a credit against the tax imposed under chapter 207 or this chapter] a credit equal to thirty per cent of such [production] expenses or costs.
2127		-
2128		-	(3) If an eligible production company elects, for income years commencing on or after January 1, 2018, to claim a credit pursuant to this subsection against the tax imposed under chapter 219, the eligible production company shall pay to the state a fee of six cents for each dollar of credit claimed. The commissioner shall deposit such fee in the TEC initiative account established pursuant to subsection (d) of section 14 of this act.
2129		-
2130		-	(c) No eligible production company incurring an amount of production expenses or costs that qualifies for such credit shall be eligible for such credit unless on or after January 1, 2010, such company conducts (1) not less than fifty per cent of principal photography days within the state, or (2) expends not less than fifty per cent of postproduction costs within the state, or (3) expends not less than one million dollars of postproduction costs within the state.
2131		-
2132		-	[(d) (1) For income years commencing on or after January 1, 2009, but prior to January 1, 2010, fifty per cent of production expenses or costs shall be counted toward such credit when incurred outside the state and used within the state, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.]
2133		-
2134		-	[(2)] (d) For income years commencing on or after January 1, 2010, no expenses or costs incurred outside the state and used within the state shall be eligible for a credit, and one hundred per cent of such expenses or costs shall be counted toward such credit when incurred within the state and used within the state.
2135		-
2136		-	(e) (1) On and after July 1, 2006, and for income years commencing on or after January 1, 2006, any credit allowed pursuant to this section may be sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers, provided (A) no credit, after issuance, may be sold, assigned or otherwise transferred, in whole or in part, more than three times, (B) in the case of a credit allowed for the income year commencing on or after January 1, 2011, and prior to January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than fifty per cent of such credit in any one income year, and (C) in the case of a credit allowed for an income year commencing on or after January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than twenty-five per cent of such credit in any one income year.
2137		-
2138		-	(2) Notwithstanding the provisions of subdivision (1) of this subsection, any entity that is not subject to tax under this chapter or chapter 207 shall not be subject to the limitations on the transfer of credits provided in subparagraphs (B) and (C) of said subdivision (1), provided such entity owns not less than fifty per cent, directly or indirectly, of a business entity subject to tax under section 12-284b.
2139		-
2140		-	(3) Notwithstanding the provisions of subdivision (1) of this subsection, any qualified production that is created in whole or in significant part, as determined by the Commissioner of Economic and Community Development, at a qualified production facility shall not be subject to the limitations of subparagraph (B) or (C) of said subdivision (1). For purposes of this subdivision, "qualified production facility" means a facility (A) located in this state, (B) intended for film, television or digital media production, and (C) that has had a minimum investment of three million dollars, or less if the Commissioner of Economic and Community Development determines such facility otherwise qualifies.
2141		-
2142		-	(4) Any taxpayer to which a credit allowed pursuant to this section is sold, assigned or otherwise transferred, in whole or in part, shall pay the fee set forth in subdivision (3) of subsection (b) of this section if such taxpayer elects, for income years commencing on or after January 1, 2018, to claim such credit against the tax imposed under chapter 219.
2143		-
2144		-	(f) (1) On and after July 1, 2006, and for income years commencing on or after January 1, 2006, all or part of any such credit allowed under this [subsection shall] section may be claimed against the tax imposed under chapter 207 or this chapter for the income year in which the production expenses or costs were incurred, or in the three immediately succeeding income years.
2145		-
2146		-	(2) For production tax credit vouchers issued on or after July 1, 2015, all or part of any such credit [shall] may be claimed against (A) the tax imposed under chapter 207 or this chapter, or (B) for income years commencing on or after January 1, 2018, the tax imposed under chapter 207 or 219 or this chapter, for the income year in which the production expenses or costs were incurred, or in the five immediately succeeding income years.
2147		-
2148		-	(3) Any production tax credit allowed under this subsection shall be nonrefundable.
2149		-
2150		-	(g) (1) An eligible production company shall apply to the department for a tax credit voucher on an annual basis, but not later than ninety days after the first production expenses or costs are incurred in the production of a qualified production, and shall provide with such application such information as the department may require to determine such company's eligibility to claim a credit under this section. No production expenses or costs may be listed more than once for purposes of the tax credit voucher pursuant to this section, or pursuant to section 12-217kk or 12-217ll, and if a production expense or cost has been included in a claim for a credit, such production expense or cost may not be included in any subsequent claim for a credit.
2151		-
2152		-	(2) Not later than ninety days after the end of the annual period, or after the last production expenses or costs are incurred in the production of a qualified production, an eligible production company shall apply to the department for a production tax credit voucher, and shall provide with such application such information and independent certification as the department may require pertaining to the amount of such company's production expenses or costs. Such independent certification shall be provided by an audit professional chosen from a list compiled by the department. If the department determines that such company is eligible to be issued a production tax credit voucher, the department shall enter on the voucher the amount of production expenses or costs that has been established to the satisfaction of the department and the amount of such company's credit under this section. The department shall provide a copy of such voucher to the commissioner, upon request.
2153		-
2154		-	(3) The department shall charge a reasonable administrative fee sufficient to cover the department's costs to analyze applications submitted under this section.
2155		-
2156		-	(h) If an eligible production company sells, assigns or otherwise transfers a credit under this section to another taxpayer, the transferor and transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. If such transferee sells, assigns or otherwise transfers a credit under this section to a subsequent transferee, such transferee and such subsequent transferee shall jointly submit written notification of such transfer to the department not later than thirty days after such transfer. The notification after each transfer shall include the credit voucher number, the date of transfer, the amount of such credit transferred, the tax credit balance before and after the transfer, the tax identification numbers for both the transferor and the transferee, and any other information required by the department. Failure to comply with this subsection will result in a disallowance of the tax credit until there is full compliance on the part of the transferor and the transferee, and for a second or third transfer, on the part of all subsequent transferors and transferees. The department shall provide a copy of the notification of assignment to the commissioner upon request.
2157		-
2158		-	(i) Any eligible production company that submits information to the department that it knows to be fraudulent or false shall, in addition to any other penalties provided by law, be liable for a penalty equal to the amount of such company's credit entered on the production tax credit [certificate] voucher issued under this section.
2159		-
2160		-	(j) No tax credits transferred pursuant to this section shall be subject to a post-certification remedy, and the department and the commissioner shall have no right, except in the case of possible material misrepresentation or fraud, to conduct any further or additional review, examination or audit of the expenditures or costs for which such tax credits were issued. The sole and exclusive remedy of the department and the commissioner shall be to seek collection of the amount of such tax credits from the entity that committed the fraud or misrepresentation.
2161		-
2162		-	(k) The department, in consultation with the commissioner, shall adopt regulations, in accordance with the provisions of chapter 54, as may be necessary for the administration of this section.
2163		-
2164		-	Sec. 16. Subsection (i) of section 12-391 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2165		-
2166		-	(i) [The] With respect to the estates of decedents who die on or after January 1, 2021, the tax calculated pursuant to the provisions of this section shall be reduced in an amount equal to half of the amount invested by a decedent in a private investment fund or fund of funds pursuant to subdivision (43) of section 32-39 or in the TEC initiative or an innovation investment fund pursuant to section 14 of this act, provided (1) any such reduction shall not exceed five million dollars for any such decedent, (2) any such amount invested by the decedent shall have been invested in such fund or fund of funds for [ten] four years or more, and (3) the aggregate amount of all taxes reduced under this subsection shall not exceed thirty million dollars.
2167		-
2168		-	Sec. 17. Section 12-217zz of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2169		-
2170		-	(a) Notwithstanding any other provision of law, and except as otherwise provided in subsection (b) of this section and section 14 of this act, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter shall be as follows:
2171		-
2172		-	(1) For any income year commencing on or after January 1, 2002, and prior to January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
2173		-
2174		-	(2) For any income year commencing on or after January 1, 2015, the amount of tax credit or credits otherwise allowable shall not exceed fifty and one one-hundredths per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
2175		-
2176		-	(3) Notwithstanding the provisions of subdivision (2) of this subsection, any taxpayer that possesses excess credits may utilize the excess credits as follows:
2177		-
2178		-	(A) For income years commencing on or after January 1, 2016, and prior to January 1, 2017, the aggregate amount of tax credits and excess credits allowable shall not exceed fifty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
2179		-
2180		-	(B) For income years commencing on or after January 1, 2017, and prior to January 1, 2018, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
2181		-
2182		-	(C) For income years commencing on or after January 1, 2018, and prior to January 1, 2019, the aggregate amount of tax credits and excess credits allowable shall not exceed sixty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
2183		-
2184		-	(D) For income years commencing on or after January 1, 2019, the aggregate amount of tax credits and excess credits allowable shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to any such income year of the taxpayer prior to the application of such credit or credits;
2185		-
2186		-	(4) For purposes of this subsection, "excess credits" means any remaining credits available under section 12-217j, 12-217n or 32-9t after tax credits are utilized in accordance with subdivision (2) of this subsection.
2187		-
2188		-	(b) (1) For an income year commencing on or after January 1, 2011, and prior to January 1, 2013, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year may exceed the amount specified in subsection (a) of this section only by the amount computed under subparagraph (A) of subdivision (2) of this subsection, provided in no event may the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year exceed one hundred per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.
2189		-
2190		-	(2) (A) The taxpayer's average monthly net employee gain for an income year shall be multiplied by six thousand dollars.
2191		-
2192		-	(B) The taxpayer's average monthly net employee gain for an income year shall be computed as follows: For each month in the taxpayer's income year, the taxpayer shall subtract from the number of its employees in this state on the last day of such month the number of its employees in this state on the first day of its income year. The taxpayer shall total the differences for the twelve months in such income year, and such total, when divided by twelve, shall be the taxpayer's average monthly net employee gain for the income year. For purposes of this computation, only employees who are required to work at least thirty-five hours per week and only employees who were not employed in this state by a related person, as defined in section 12-217ii, within the twelve months prior to the first day of the income year may be taken into account in computing the number of employees.
2193		-
2194		-	(C) If the taxpayer's average monthly net employee gain is zero or less than zero, the taxpayer may not exceed the seventy per cent limit imposed under subsection (a) of this section.
2195		-
2196		-	Sec. 18. Section 12-202 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
2197		-
2198		-	Each domestic insurance company shall, annually, pay a tax on the total net direct premiums received by such company during the calendar year next preceding from policies written on property or risks located or resident in this state. The rate of tax on all net direct insurance premiums received (1) on [and] or after January 1, 1995, and prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent. The franchise tax imposed under this section on premium income for the privilege of doing business in the state is in addition to the tax imposed under chapter 208. In the case of any local domestic insurance company the admitted assets of which as of the end of an income year do not exceed ninety-five million dollars, eighty per cent of the tax paid by such company under chapter 208 during such income year reduced by any refunds of taxes paid by such company and granted under said chapter within such income year and eighty per cent of the assessment paid by such company under section 38a-48 during such income year shall be allowed as a credit in the determination of the tax under this chapter payable with respect to total net direct premiums received during such income year, provided [that] these two credits shall not reduce the tax under this chapter to less than zero, and provided further in the case of a local domestic insurance company [which] that is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply if the total admitted assets of the local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars or, in the alternative, in the case of a local domestic insurance company [which] that is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply only if total direct written premiums are derived from policies issued or delivered in Connecticut, on risk located in Connecticut and, as of the end of the income year the company and its affiliates have admitted assets minus unpaid losses and loss adjustment expenses that are also discounted for federal and state tax purposes and which for said local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars.
2199		-
2200		-	Sec. 19. Subsection (a) of section 12-202a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
2201		-
2202		-	(a) Each health care center, as defined in section 38a-175, that is governed by sections 38a-175 to 38a-192, inclusive, shall pay a tax to the Commissioner of Revenue Services for the calendar year commencing [on] January 1, 1995, and annually thereafter [, at the rate of one and three-quarters per cent of] on the total net direct subscriber charges received by such health care center during each such calendar year on any new or renewal contract or policy approved by the Insurance Commissioner under section 38a-183. The rate of tax on the total net direct subscriber charges received (1) prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent. Such payment shall be in addition to any other payment required under section 38a-48.
2203		-
2204		-	Sec. 20. Subsection (b) of section 12-210 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
2205		-
2206		-	(b) Each insurance company incorporated by or organized under the laws of any other state or foreign government and doing business in this state shall, annually, on and after January 1, 1995, pay to said [Commissioner of Revenue Services] commissioner, in addition to any other taxes imposed on such company or its agents, a tax [of one and three-quarters per cent of] on all net direct premiums received by such company in the calendar year next preceding from policies written on property or risks located or resident in this state, excluding premiums for ocean marine insurance, and, upon ceasing to transact new business in this state, shall continue to pay a tax upon the renewal premiums derived from its business remaining in force in this state at the rate [which] that was applicable when such company ceased to transact new business in this state. The rate of tax on all net direct premiums received (1) prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on or after January 1, 2018, shall be one and one-half per cent.
2207		-
2208		-	Sec. 21. Section 12-263b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2209		-
2210		-	(a) For each calendar quarter commencing on or after July 1, 2011, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law and in conformance with the state budget adopted by the General Assembly. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed in order to ensure conformance with the state budget adopted by the General Assembly. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. [Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.]
2211		-
2212		-	(b) Each hospital shall, on or before the last day of January, April, July and October of each year, render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. Payment shall be made with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.
2213		-
2214		-	(c) [Notwithstanding any other provision of law, for] (1) For each calendar quarter commencing on or after July 1, 2015, and prior to January 1, 2016, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty and one one-hundredths per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2215		-
2216		-	(2) For each calendar quarter commencing on or after January 1, 2016, and prior to January 1, 2017, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2217		-
2218		-	(3) For each calendar quarter commencing on or after January 1, 2017, and prior to January 1, 2018, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2219		-
2220		-	(4) For each calendar quarter commencing on or after January 1, 2018, and prior to January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2221		-
2222		-	(5) For each calendar quarter commencing on or after January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed seventy per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2223		-
2224		-	(d) (1) For each fiscal year commencing on or after July 1, 2017, there shall be allowed a credit against the tax imposed under this section if the difference between (A) the total amount of state and federal supplemental Medicaid payments the hospital receives in a fiscal year, and (B) the amount of tax due under this section in such fiscal year prior to the application of a tax credit or credits allowable under subsection (c) of this section, exceeds the difference between such amounts in the fiscal year ending June 30, 2017. The amount of the credit under this subsection shall be equal to the difference between the total amount of state and federal supplemental Medicaid payments the hospital would have received in a fiscal year pursuant to the applicable budget adopted by the General Assembly and the actual amount the hospital received in such fiscal year.
2225		-
2226		-	(2) The limits on credits under subsection (c) of this section shall not apply to credits under this subsection.
2227		-
2228		-	Sec. 22. (NEW) (Effective July 1, 2017) Any hospital that is exempt from federal income tax under Section 501(a) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, may enter into an agreement with the municipality in which such hospital is situated to make voluntary public service payments to such municipality in an amount equal to the real property taxes such hospital would have paid if such real property had been subject to tax.
2229		-
2230		-	Sec. 23. Section 12-263b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2231		-
2232		-	(a) (1) For each calendar quarter commencing on or after July 1, 2011, and prior to July 1, 2020, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law and in conformance with the state budget adopted by the General Assembly. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed in order to ensure conformance with the state budget adopted by the General Assembly. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. [Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.]
2233		-
2234		-	(2) (A) For the fiscal year commencing July 1, 2020, and through the fiscal year ending June 30, 2026, the Commissioner of Social Services shall reduce each July first the amount of tax imposed under this section, in equal increments over said time period. Commencing July 1, 2026, no tax shall be imposed under this section. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship.
2235		-
2236		-	(B) The Commissioner of Social Services shall use, as the base amount for calculating the reduction under subparagraph (A) of this subdivision, the amount of tax imposed on the hospital under subdivision (1) of this subsection during the calendar quarters commencing July 1, 2019, and prior to July 1, 2020.
2237		-
2238		-	(b) [Each] Until August 1, 2026, each hospital shall, on or before the last day of January, April, July and October of each year, render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. Payment shall be made with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.
2239		-
2240		-	(c) Notwithstanding any other provision of law: [, for]
2241		-
2242		-	(1) For each calendar quarter commencing on or after July 1, 2015, and prior to January 1, 2016, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty and one one-hundredths per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2243		-
2244		-	(2) For each calendar quarter commencing on or after January 1, 2016, and prior to January 1, 2017, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2245		-
2246		-	(3) For each calendar quarter commencing on or after January 1, 2017, and prior to January 1, 2018, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2247		-
2248		-	(4) For each calendar quarter commencing on or after January 1, 2018, and prior to January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2249		-
2250		-	(5) For each calendar quarter commencing on or after January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed seventy per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
2251		-
2252		-	Sec. 24. Subsection (a) of section 12-541 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):
2253		-
2254		-	(a) There is hereby imposed a tax of ten per cent of the admission charge to any place of amusement, entertainment or recreation, except that no tax shall be imposed with respect to any admission charge (1) when the admission charge is less than one dollar or, in the case of any motion picture show, when the admission charge is not more than five dollars, (2) when a daily admission charge is imposed which entitles the patron to participate in an athletic or sporting activity, (3) to any event, other than events held at the stadium facility, as defined in section 32-651, if all of the proceeds from the event inure exclusively to an entity [which] that is exempt from federal income tax under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, provided such entity actively engages in and assumes the financial risk associated with the presentation of such event, (4) to any event, other than events held at the stadium facility, as defined in section 32-651, [which] that, in the opinion of the commissioner, is conducted primarily to raise funds for an entity [which] that is exempt from federal income tax under [the] said Internal Revenue Code, provided the commissioner is satisfied that the net profit [which] that inures to such entity from such event will exceed the amount of the admissions tax which, but for this subdivision, would be imposed upon the person making such charge to such event, (5) other than for events held at the stadium facility, as defined in section 32-651, paid by centers of service for elderly persons, as described in subdivision (d) of section 17a-310, (6) to any production featuring live performances by actors or musicians presented at Gateway's Candlewood Playhouse, Ocean Beach Park or any nonprofit theater or playhouse in the state, provided such theater or playhouse possesses evidence confirming exemption from federal tax under Section 501 of [the] said Internal Revenue Code, (7) to any carnival or amusement ride, (8) to any interscholastic athletic event held at the stadium facility, as defined in section 32-651, (9) if the admission charge would have been subject to tax under the provisions of section 12-542 of the general statutes, revision of 1958, revised to January 1, 1999, (10) to any event at (A) the XL Center in Hartford, or (B) the Webster Bank Arena in Bridgeport, (11) [from July 1, 2015, to June 30, 2017,] to any athletic event presented by a member team of the Atlantic League of Professional Baseball at the Ballpark at Harbor Yard in Bridgeport, (12) to any event presented at the Dunkin' Donuts Park in Hartford, [or] (13) on and after July 1, 2017, to any athletic event presented by a member team of the Atlantic League of Professional Baseball at the New Britain Stadium, or (14) to any event at the Oakdale Theatre in Wallingford. On and after July 1, 2000, the tax imposed under this section on any motion picture show shall be eight per cent of the admission charge and, on and after July 1, 2001, the tax imposed on any such motion picture show shall be six per cent of such charge.
2255		-
2256		-	Sec. 25. Subsection (a) of section 7-168a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2257		-
2258		-	(a) (1) A municipality may, by ordinance, impose a surcharge on the admission charge [, as defined in subdivision (3) of section 12-540,] for any event that is held at a facility located within the municipality. The amount of such surcharge shall not exceed five per cent of the amount of admission, except that the amount of such surcharge imposed on the facility described in subdivision (12) of subsection (a) of section 12-541, as amended by this act, shall not exceed ten per cent of the amount of admission. The amount of any such surcharge shall be in addition to any tax otherwise applicable to such admission charge, except that no municipality may impose a surcharge on a facility pursuant to this section if [(1)] (A) the municipality imposes a surcharge on such facility pursuant to section 12-579, or [(2)] (B) all of the proceeds from the event inure exclusively to an entity which is exempt from federal income tax under the Internal Revenue Code, provided such entity actively engages in and assumes the financial risk associated with the presentation of such event. Any municipal ordinance adopted pursuant to this section may exclude additional events or facilities from the surcharge imposed pursuant to this section.
2259		-
2260		-	(2) As used in this section, "admission charge" means the amount paid, whether in the form of a ticket price, license fee, skybox, luxury suite or club seat rental charge or purchase price, or otherwise, for the right or privilege to have access to a place or location where amusement, entertainment or recreation is provided, exclusive of any charges for instruction, and including any preferred seat license fee or any other payment required in order to have the right to purchase seats or secure admission to any such place or location. Places of amusement, entertainment or recreation (A) include, but are not limited to, theaters, auditoriums where lectures and concerts are given, amusement parks, fairgrounds, race tracks, dance halls, ball parks, stadiums, amphitheaters, convention centers, golf courses, miniature golf courses, tennis courts, skating rinks, swimming pools, bathing beaches, gymnasiums, auto shows, boat shows, camping shows, home shows, dog shows and antique shows, but (B) do not include motion picture shows.
2261		-
2262		-	Sec. 26. Subparagraph (OO) of subdivision (37) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2263		-
2264		-	(OO) Car wash services, [including] excluding coin-operated car washes.
2265		-
2266		-	Sec. 27. Section 7-73 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2267		-
2268		-	(a) To any person performing the duties required by the provisions of the general statutes relating to registration of marriages, deaths and fetal deaths, the following fees shall be allowed: (1) For the license to marry, [ten] fifteen dollars; and (2) for issuing each burial or removal, transit and burial permit, three dollars.
2269		-
2270		-	(b) A [twenty-dollar] thirty-five-dollar surcharge shall be paid to the registrar for each license to marry in addition to the fee for such license established pursuant to subsection (a) of this section. The registrar shall retain one dollar from each such surcharge for administrative costs and shall forward the remainder, on or before the tenth day of the month following each calendar quarter, to the Department of Public Health. The receipts shall be deposited into an account of the State Treasurer and credited to the General Fund for further credit to a separate nonlapsing account established by the Comptroller for use by the Department of Social Services for shelter services for victims of household abuse in accordance with section 17b-850 and by the Department of Public Health for rape crisis services funded under section 19a-2a. Such funds shall be allocated for these purposes by the Office of Policy and Management in consultation with the Commissioners of Social Services and Public Health based on an evaluation of need, service delivery costs and availability of other funds. The Commissioners of Social Services and Public Health shall distribute such funds to the recipient organizations in accordance with such allocations not later than October fifteenth, annually. No such funds shall (1) be retained by the Office of Policy and Management, the Commissioner of Social Services or the Commissioner of Public Health for administrative purposes; or (2) supplant any state or federal funds otherwise available for such services.
2271		-
2272		-	Sec. 28. (Effective from passage) Each department head, as defined in section 4-5 of the general statutes, other than the Secretary of the Office of Policy and Management, shall undertake a review of the fees collected by his or her department and determine whether each fee is sufficient to cover the department's costs to collect such fee and administer the program associated with such fee. Each department head shall submit, taking such costs into consideration, any recommended fee increases to said secretary before December 1, 2017. Said secretary shall review each department head's submission and submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding not later than February 7, 2018, of any recommended increases of up to fifty per cent of any existing fee, provided the total amount of the increase in fees shall not exceed twenty million dollars.
2273		-
2274		-	Sec. 29. Subparagraph (K) of subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2275		-
2276		-	(K) [(i)] Notwithstanding the provisions of this section, for calendar months commencing on or after May 1, 2016, but prior to July 1, 2016, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l four and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, and shall transfer any accrual related to said months on or after said July 1, 2016, date; and
2277		-
2278		-	[(ii) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision; and]
2279		-
2280		-	Sec. 30. (Effective July 1, 2017) For the fiscal years ending June 30, 2018, and June 30, 2019, the Secretary of the Office of Policy and Management shall transfer the sum of $264,900,000 in each fiscal year from the General Fund to the Municipal Revenue Sharing Fund established pursuant to section 4-66p of the general statutes.
2281		-
2282		-	Sec. 31. Subsection (a) of section 3-21 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
2283		-
2284		-	(a) (1) No bonds, notes or other evidences of indebtedness for borrowed money payable from General Fund tax receipts of the state shall be authorized by the General Assembly or issued except such as shall not cause the aggregate amount of the total amount of bonds, notes or other evidences of indebtedness payable from General Fund tax receipts authorized by the General Assembly but which have not been issued and the total amount of such indebtedness which has been issued and remains outstanding to exceed, (A) for fiscal years commencing prior to July 1, 2019, one and six-tenths times, and (B) for fiscal years commencing on or after July 1, 2019, one and five-hundred-seventy-five-thousandths times, the total General Fund tax receipts of the state for the fiscal year in which any such authorization will become effective or in which such indebtedness is issued, as estimated for such fiscal year by the joint standing committee of the General Assembly having cognizance of finance, revenue and bonding in accordance with section 2-35.
2285		-
2286		-	(2) In computing such aggregate amount of indebtedness at any time, there shall be excluded or deducted, as the case may be, [(1)] (A) the principal amount of all such obligations as may be certified by the Treasurer [(A)] (i) as issued in anticipation of revenues to be received by the state during the period of twelve calendar months next following their issuance and to be paid by application of such revenue, or [(B)] (ii) as having been refunded or replaced by other indebtedness the proceeds and projected earnings on which or other funds are held in escrow to pay and are sufficient to pay the principal, interest and any redemption premium until maturity or earlier planned redemption of such indebtedness, or [(C)] (iii) as issued and outstanding in anticipation of particular bonds then unissued but fully authorized to be issued in the manner provided by law for such authorization, provided, as long as any of such obligations are outstanding, the entire principal amount of such particular bonds thus authorized shall be deemed to be outstanding and be included in such aggregate amount of indebtedness, or [(D)] (iv) as payable solely from revenues of particular public improvements, [(2)] (B) the amount which may be certified by the Treasurer as the aggregate value of cash and securities in debt retirement funds of the state to be used to meet principal of outstanding obligations included in such aggregate amount of indebtedness, [(3)] (C) every such amount as may be certified by the Secretary of the Office of Policy and Management as the estimated payments on account of the costs of any public work or improvement thereafter to be received by the state from the United States or agencies thereof and to be used, in conformity with applicable federal law, to meet principal of obligations included in such aggregate amount of indebtedness, [(4)] (D) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 1991, [(5)] (E) all authorized indebtedness to fund the program created pursuant to section 32-285, [(6)] (F) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 2002, [(7)] (G) all indebtedness authorized and issued pursuant to section 1 of public act 03-1 of the September 8 special session, [(8)] (H) all authorized indebtedness issued pursuant to section 3-62h, [(9)] (I) any indebtedness represented by any agreement entered into pursuant to subsection (b) or (c) of section 3-20a as certified by the Treasurer, provided the indebtedness in connection with which such agreements were entered into shall be included in such aggregate amount of indebtedness, and [(10)] (J) all indebtedness authorized and issued pursuant to section 3-20g. In computing the amount of outstanding indebtedness, only the accreted value of any capital appreciation obligation or any zero coupon obligation which has accreted and been added to the stated initial value of such obligation as of the date of any computation shall be included.
2287		-
2288		-	Sec. 32. (Effective from passage) (a) There is established a working group to analyze the efficacy of fines as a deterrent for excessive speeding. The working group shall consist of (1) the Commissioners of Revenue Services, Motor Vehicles and Emergency Services and Public Protection, or their designees, (2) the Secretary of the Office of Policy and Management or the secretary's designee, (3) the Chief State's Attorney or the Chief State's Attorney's designee, (4) the Chief Public Defender or the Chief Public Defender's designee, (5) a clerk of the Centralized Infractions Bureau designated by the Chief Court Administrator, (6) a representative of a municipal police department designated by the president of the Connecticut Police Chiefs Association, (7) a representative of the Connecticut State Police designated by the president of the Connecticut State Police Union, and (8) the chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, the judiciary, public safety and transportation.
2289		-
2290		-	(b) The working group shall study available data related to the frequency of the imposition of fines for such violations, the percentage of such fines that are paid, the percentage of such fines that are contested, the average total amount of such fines collected in a fiscal year and the estimated costs associated with the imposition and collection of such fines, procedures used by police officers with respect to drivers who are speeding, statistical comparisons with other states and nationally and any other information or materials that may assist the working group to evaluate whether the existing fines and procedures serve a sufficiently deterrent purpose. The working group may consult with any individuals or entities the working group deems appropriate to conduct its analysis and to determine alternative methods and systems that may be considered for implementation to more effectively promote safe driving.
	2075	+	[(c) The term "Connecticut taxable gifts"] (3) "Connecticut taxable gifts" means taxable gifts made during a calendar year commencing on or after January 1, 2005, that are, [(1)] (A) for residents of this state, taxable gifts, wherever located, but excepting gifts of real estate or tangible personal property located outside this state, and [(2)] (B) for nonresidents of this state, gifts of real estate or tangible personal property located within this state.
	2076	+
	2077	+	(4) "Federal basic exclusion amount" means the dollar amount published annually by the Internal Revenue Service over which a donor would owe federal gift tax based on the value of the donor's lifetime federally taxable gifts.
	2078	+
	2079	+	Sec. 13. Section 12-296 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017, and applicable to sales occurring on or after July 1, 2017):
	2080	+
	2081	+	A tax is imposed on all cigarettes held in this state by any person for sale, [said] such tax to be at the rate of [one hundred ninety-five] two hundred seventeen and one-half mills for each cigarette and the payment thereof shall be for the account of the purchaser or consumer of such cigarettes and shall be evidenced by the affixing of stamps to the packages containing the cigarettes as provided in this chapter.
	2082	+
	2083	+	Sec. 14. Section 12-316 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017, and applicable to sales occurring on or after July 1, 2017):
	2084	+
	2085	+	A tax is hereby imposed at the rate of [one hundred ninety-five] two hundred seventeen and one-half mills for each cigarette upon the storage or use within this state of any unstamped cigarettes in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state. Any person, including distributors, dealers, carriers, warehousemen and consumers, last having possession of unstamped cigarettes in this state shall be liable for the tax on such cigarettes if such cigarettes are unaccounted for in transit, storage or otherwise, and in such event a presumption shall exist for the purpose of taxation that such cigarettes were used and consumed in Connecticut.
	2086	+
	2087	+	Sec. 15. (Effective from passage) (a) An excise tax is hereby imposed upon each distributor and each dealer, as each is defined in section 12-285 of the general statutes and licensed pursuant to chapter 214 of the general statutes, in the amount of twenty-two and one-half mills per cigarette, as defined in section 12-285 of the general statutes, in such distributor's or such dealer's inventory as of the close of business on June 30, 2017, or, if the business closes after eleven fifty-nine o'clock p.m. on said date, at eleven fifty-nine o'clock p.m. on said date.
	2088	+
	2089	+	(b) Each such licensed distributor or dealer shall, not later than August 15, 2017, file with the Commissioner of Revenue Services, on forms prescribed by said commissioner, a report that shows the number of cigarettes in inventory as of the close of business on June 30, 2017, or, if the business closes after eleven fifty-nine o'clock p.m. on said date, at eleven fifty-nine o'clock p.m. on said date, upon which inventory the tax under subsection (a) of this section shall be imposed. The tax shall be due and payable on the due date of such report. If any distributor or dealer required to file a report pursuant to this section fails to file such report on or before August 15, 2017, the commissioner shall make an estimate of the number of cigarettes in such distributor's or dealer's inventory as of the close of business on June 30, 2017, based upon any information that is in the commissioner's possession or that may come into the commissioner's possession. The provisions of chapter 214 of the general statutes pertaining to failure to file returns, examination of returns by the commissioner, the issuance of deficiency assessments or assessments where no return has been filed, the collection of tax, the imposition of penalties and the accrual of interest shall apply to the distributors and dealers required to pay the tax imposed under this section. Failure of any distributor or dealer to file such report when due shall be sufficient reason to revoke such distributor's or dealer's license under the provisions of said chapter 214 and to revoke any other state license or permit issued by the Department of Revenue Services and held by such distributor or dealer. If, in the discretion of the commissioner, the enforcement of this section would otherwise be adversely affected, the commissioner shall not renew the dealer's license of any dealer who fails to file such report, or the distributor's license of any distributor who fails to file such report, until such report is filed.
	2090	+
	2091	+	Sec. 16. Section 12-330c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2092	+
	2093	+	(a) (1) A tax is imposed on all untaxed tobacco products held in this state by any person. Except as otherwise provided in subdivision (2) of this subsection with respect to the tax on cigars, or in subdivision (3) of this subsection with respect to the rate of tax on snuff tobacco products, the tax shall be imposed at the rate of fifty per cent of the wholesale sales price of such products.
	2094	+
	2095	+	(2) Notwithstanding the provisions of subdivision (1) of this subsection, in the case of cigars the tax shall not exceed one dollar and fifty cents per cigar.
	2096	+
	2097	+	(3) The tax shall be imposed on snuff tobacco products, on the net weight as listed by the manufacturer, as follows: [One dollar] Three dollars per ounce of snuff and a proportionate tax at the like rate on all fractional parts of an ounce of snuff.
	2098	+
	2099	+	(b) Said tax shall be imposed on the distributor or the unclassified importer at the time the tobacco product is manufactured, purchased, imported, received or acquired in this state.
	2100	+
	2101	+	(c) Said tax shall not be imposed on any tobacco products [which] that (1) are exported from the state, or (2) are not subject to taxation by this state pursuant to any laws of the United States.
	2102	+
	2103	+	Sec. 17. Subsection (b) of section 19a-323 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2104	+
	2105	+	(b) If death occurred in this state, the death certificate required by law shall be filed with the registrar of vital statistics for the town in which such person died, if known, or, if not known, for the town in which the body was found. The Chief Medical Examiner, Deputy Chief Medical Examiner, associate medical examiner, an authorized assistant medical examiner or other authorized designee shall complete the cremation certificate, stating that such medical examiner or other authorized designee has made inquiry into the cause and manner of death and is of the opinion that no further examination or judicial inquiry is necessary. The cremation certificate shall be submitted to the registrar of vital statistics of the town in which such person died, if known, or, if not known, of the town in which the body was found, or with the registrar of vital statistics of the town in which the funeral director having charge of the body is located. Upon receipt of the cremation certificate, the registrar shall authorize such certificate, keep such certificate on permanent record, and issue a cremation permit, except that if the cremation certificate is submitted to the registrar of the town where the funeral director is located, such certificate shall be forwarded to the registrar of the town where the person died to be kept on permanent record. If a cremation permit must be obtained during the hours that the office of the local registrar of the town where death occurred is closed, a subregistrar appointed to serve such town may authorize such cremation permit upon receipt and review of a properly completed cremation permit and cremation certificate. A subregistrar who is licensed as a funeral director or embalmer pursuant to chapter 385, or the employee or agent of such funeral director or embalmer shall not issue a cremation permit to himself or herself. A subregistrar shall forward the cremation certificate to the local registrar of the town where death occurred, not later than seven days after receiving such certificate. The estate of the deceased person, if any, shall pay the sum of [one hundred fifty] two hundred dollars for the issuance of the cremation certificate, provided the Office of the Chief Medical Examiner shall not assess any fees for costs that are associated with the cremation of a stillborn fetus. Upon request of the Chief Medical Examiner, the Secretary of the Office of Policy and Management may waive payment of such cremation certificate fee. No cremation certificate shall be required for a permit to cremate the remains of bodies pursuant to section 19a-270a. When the cremation certificate is submitted to a town other than that where the person died, the registrar of vital statistics for such other town shall ascertain from the original removal, transit and burial permit that the certificates required by the [state] general statutes have been received and recorded, that the body has been prepared in accordance with the Public Health Code and that the entry regarding the place of disposal is correct. Whenever the registrar finds that the place of disposal is incorrect, the registrar shall issue a corrected removal, transit and burial permit and, after inscribing and recording the original permit in the manner prescribed for sextons' reports under section 7-66, shall then immediately give written notice to the registrar for the town where the death occurred of the change in place of disposal stating the name and place of the crematory and the date of cremation. Such written notice shall be sufficient authorization to correct these items on the original certificate of death. The fee for a cremation permit shall be three dollars and for the written notice one dollar. The Department of Public Health shall provide forms for cremation permits, which shall not be the same as for regular burial permits and shall include space to record information about the intended manner of disposition of the cremated remains, and such blanks and books as may be required by the registrars.
	2106	+
	2107	+	Sec. 18. Subsection (c) of section 29-11 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017, and applicable to background check services requested on or after July 1, 2017):
	2108	+
	2109	+	(c) The Commissioner of Emergency Services and Public Protection shall charge the following fees for the service indicated: (1) Name search, thirty-six dollars; (2) fingerprint search, [fifty] seventy-five dollars; (3) personal record search, [fifty] seventy-five dollars; (4) letters of good conduct search, [fifty] seventy-five dollars; (5) bar association search, [fifty] seventy-five dollars; (6) fingerprinting, fifteen dollars; (7) criminal history record information search, [fifty] seventy-five dollars. Except as provided in subsection (b) of this section, the provisions of this subsection shall not apply to any federal, state or municipal agency.
	2110	+
	2111	+	Sec. 19. Subsection (a) of section 29-30 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017, and applicable to applications submitted on or after July 1, 2017):
	2112	+
	2113	+	(a) The fee for each permit originally issued under the provisions of subsection (a) of section 29-28 for the sale at retail of pistols and revolvers shall be two hundred dollars and for each renewal of such permit two hundred dollars. The fee for each state permit originally issued under the provisions of subsection (b) of section 29-28 for the carrying of pistols and revolvers shall be [one hundred forty] three hundred seventy dollars plus sufficient funds as required to be transmitted to the Federal Bureau of Investigation to cover the cost of a national criminal history records check. The local authority shall forward sufficient funds for the national criminal history records check to the commissioner no later than five business days after receipt by the local authority of the application for the temporary state permit. Seventy dollars shall be retained by the local authority. Upon approval by the local authority of the application for a temporary state permit, [seventy] three hundred dollars shall be sent to the commissioner. The fee to renew each state permit originally issued under the provisions of subsection (b) of section 29-28 shall be [seventy] three hundred dollars. Upon deposit of such fees in the General Fund, ten dollars of each fee shall be credited within thirty days to the appropriation for the Department of Emergency Services and Public Protection to a separate nonlapsing account for the purposes of the issuance of permits under subsections (a) and (b) of section 29-28.
	2114	+
	2115	+	Sec. 20. Subsection (d) of section 7-34a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2116	+
	2117	+	(d) In addition to the fees for recording a document under subsection (a) of this section, town clerks shall receive a fee of [three] ten dollars for each document recorded in the land records of the municipality. Not later than the fifteenth day of each month, town clerks shall remit [two-thirds] two-fifths of the fees paid pursuant to this subsection during the previous calendar month to the State Treasurer for deposit in the General Fund and two-fifths of the fees paid pursuant to this subsection during the previous calendar month to the State Librarian for deposit in a bank account of the State Treasurer and crediting to the historic documents preservation account established under section 11-8i. [One-third] One-fifth of the amount paid for fees pursuant to this subsection shall be retained by town clerks and used for the preservation and management of historic documents. The provisions of this subsection shall not apply to any document recorded on the land records by an employee of the state or of a municipality in conjunction with [said] the employee's official duties. As used in this section "municipality" includes each town, consolidated town and city, city, consolidated town and borough, borough, district, as defined in chapter 105 or chapter 105a, and each municipal board, commission and taxing district not previously mentioned.
	2118	+
	2119	+	Sec. 21. Section 30-68m of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2120	+
	2121	+	(a) For the purposes of this section:
	2122	+
	2123	+	(1) "Cost" for a retail permittee means (A) for alcoholic liquor other than beer, the [posted bottle price from the wholesaler] actual cost paid per bottle by the retail permittee to the wholesaler, plus any charge for shipping or delivery to the retail permittee's place of business paid by the retail permittee, [in addition to the posted price,] and (B) for beer, the lowest posted price during the month in which the retail permittee is selling plus any charge for shipping or delivery to the retail permittee's place of business paid by the retail permittee in addition to the price originally paid by the retail permittee; and
	2124	+
	2125	+	(2) "Retail permittee" means the holder of a permit allowing the sale of alcoholic liquor for off-premises consumption. [; and]
	2126	+
	2127	+	[(3) "Bottle price" means the price per unit of the contents of any case of alcoholic liquor, other than beer, and shall be arrived at by dividing the case price by the number of units or bottles making up such case price and adding to the quotient an amount that is not less than the following: A unit or bottle one-half pint or two hundred milliliters or less, two cents; a unit or bottle more than one-half pint or two hundred milliliters but not more than one pint or five hundred milliliters, four cents; and a unit or bottle greater than one pint or five hundred milliliters, eight cents.]
	2128	+
	2129	+	(b) No retail permittee shall sell alcoholic liquor at a price below his or her cost.
	2130	+
	2131	+	(c) Notwithstanding the provisions of subsection (b) of this section, a retail permittee may sell one beer item identified by a stock-keeping unit number or one item of alcoholic liquor other than beer identified by a stock-keeping unit number below his or her cost each month, provided the item is not sold at less than ninety per cent of such retail permittee's cost. A retail permittee who intends to sell an item below cost pursuant to this subsection shall notify the Department of Consumer Protection of such sale not later than the second day of the month such item will be offered for sale.
	2132	+
	2133	+	Sec. 22. (NEW) (Effective from passage) (a) There is established an account to be known as the "transportation excess surplus account" which shall be a separate, nonlapsing account within the Special Transportation Fund established pursuant to section 13b-68 of the general statutes. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the Commissioner of Transportation, with the approval of the Secretary of the Office of Policy and Management, for the payment of transportation costs, as defined in section 13b-75 of the general statutes.
	2134	+
	2135	+	(b) At the end of each fiscal year commencing with the fiscal year ending June 30, 2017, after the accounts for the Special Transportation Fund have been closed for the fiscal year and the Comptroller has determined the amount of unappropriated surplus in said fund, the Comptroller shall transfer such unappropriated surplus in excess of fifteen per cent of total expenditures for the most recently completed fiscal year to the transportation excess surplus account within the Special Transportation Fund.
	2136	+
	2137	+	Sec. 23. (NEW) (Effective from passage) (a) There is established an account to be known as the "Connecticut airport and aviation account" which shall be a separate, nonlapsing account within the Grants and Restricted Accounts Fund established pursuant to section 4-31c of the general statutes. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be expended by the Commissioner of Transportation, with the approval of the Secretary of the Office of Policy and Management, for the purposes of airport and aviation-related purposes.
	2138	+
	2139	+	(b) Notwithstanding the provisions of section 13b-61a of the general statutes, on and after September 1, 2017, the Commissioner of Revenue Services shall deposit into said account seventy-five and three-tenths per cent of the amounts received by the state from aviation fuel sources from the tax imposed under section 12-587 of the general statutes.
	2140	+
	2141	+	Sec. 24. Subsection (e) of section 3-20 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2142	+
	2143	+	(e) The principal and interest of bonds, refunding bonds, other obligations or borrowings in anticipation thereof, their transfer and the income therefrom, including any profit on the sale or transfer thereof, shall at all times be exempt from any taxation by the state of Connecticut or under its authority, except for estate or succession taxes, but the interest on such bonds, obligations or borrowings shall be included in the computation of any excise or franchise tax.
	2144	+
	2145	+	Sec. 25. Section 7-209 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2146	+
	2147	+	Revenue bonds issued under the provisions of this chapter, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation within the state, but the interest on such bonds shall be included in the computation of any excise or franchise tax.
	2148	+
	2149	+	Sec. 26. Section 7-233s of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2150	+
	2151	+	The creation of a municipal electric energy cooperative pursuant to the provisions of this chapter is in all respects for the benefit of the people of the state and for the improvement of their health, safety, welfare, comfort and security, and its purposes are public purposes and a municipal cooperative will be performing an essential governmental function. The real and personal property of a municipal electric energy cooperative, and its income and operations, shall be exempt from all taxation by the state and any political subdivision thereof; provided, however, that in connection with the acquisition or construction or ownership of any project or projects, or portions thereof, which may be located outside the boundaries of the members of the municipal cooperative, the municipal cooperative may make payments in lieu of taxation and enter into a contract therefor to the appropriate taxing entity in which such project or projects, or portions thereof, are so acquired or constructed. The state covenants with the purchasers and all subsequent holders and transferees of the notes or bonds issued by a municipal cooperative, in consideration of the acceptance of any payment for the notes or bonds, that the notes or bonds of a municipal cooperative, issued pursuant to this chapter and the income therefrom shall at all times be free from taxation, but the interest on such notes or bonds shall be included in the computation of any excise or franchise tax.
	2152	+
	2153	+	Sec. 27. Subsection (g) of section 7-273g of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2154	+
	2155	+	(g) Bonds and notes issued under the provisions of this chapter, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation within the state, but the interest on such bonds and notes shall be included in the computation of any excise or franchise tax.
	2156	+
	2157	+	Sec. 28. Subsection (a) of section 7-273mm of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2158	+
	2159	+	(a) The exercise of the powers granted by this chapter shall constitute the performance of an essential governmental function and the authority shall not be required to pay any taxes or assessments upon or in respect to a project, or any property or moneys of the authority, levied by any municipality or political subdivision or special district having taxing powers of the state, nor shall the authority be required to pay state taxes of any kind, and the authority, its projects, property and money and the principal and interest of bonds issued under the provisions of this chapter, their transfer and the income therefrom, including revenues derived from the sale thereof, shall at all times be free from taxation, except for estate and gift taxes imposed by the state or any political subdivision thereof, but the interest on such bonds shall be included in the computation of any excise or franchise tax. Nothing herein shall prevent the authority from entering into agreements to make payments in lieu of taxes with respect to property acquired by it or by any person leasing a project from the authority or operating or managing a project on behalf of the authority and neither the authority nor its projects, properties, money or bonds shall be obligated, liable or subject to lien of any kind for the enforcement, collection or payment thereof. If and to the extent the proceedings under which the bonds authorized to be issued under the provisions of this chapter so provide, the authority may agree to cooperate with the lessee or operator of a project in connection with any administrative or judicial proceedings for determining the validity or amount of such payment and may agree to appoint or designate and reserve the right in and for such lessee or operators to take all action which the authority may lawfully take in respect of such payments and all matters relating thereto, providing such lessee or operator shall bear and pay all costs and expenses of the authority thereby incurred at the request of such lessee or operator or by reason of any such action taken by such lessee or operator on behalf of the authority. Any lessee or operator of a project which has paid the amounts in lieu of taxes permitted by this section to be paid shall not be required to pay any such taxes in which a payment in lieu thereof has been made to the state or to any such municipality or other political subdivision or special district having taxing powers, any other law to the contrary notwithstanding.
	2160	+
	2161	+	Sec. 29. Section 7-329l of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2162	+
	2163	+	The exercise of the powers granted by sections 7-329a to 7-329u, inclusive, shall be in all respects for the benefit of the inhabitants of the state, for the increase of their commerce and for the promotion of their safety, health, welfare, convenience and prosperity, and as the operation and maintenance of any project which the port authority is authorized to undertake constitute the performance of an essential governmental function, no port authority shall be required to pay any taxes or assessments upon any project acquired and constructed by it under the provisions of said sections; and the bonds, notes, certificates or other evidences of debt issued under the provisions of said sections, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free and exempt from taxation by the state and by any political subdivision thereof, but the interest on such bonds, notes, certificates or other evidences of debt shall be included in the computation of any excise or franchise tax.
	2164	+
	2165	+	Sec. 30. Section 7-497 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2166	+
	2167	+	It is hereby determined that the powers conferred upon municipalities by this chapter are in all respects for the benefit of the people of the state and for the improvement of their health, safety, welfare, comfort and security, and that the purposes of this chapter are public purposes and that municipalities will be performing an essential governmental function in the exercise of the powers conferred upon them by this chapter. The state covenants with the purchasers and all subsequent holders and transferees of notes and bonds issued by a municipality, in consideration of the acceptance of and payment for the notes and bonds, that the notes and bonds of the municipality issued pursuant to this chapter and the income therefrom shall at all times be free from taxation, except for estate and gift taxes and taxes on transfers, but the interest on such notes and bonds shall be included in the computation of any excise or franchise tax. Municipalities are authorized to include this covenant of the state in any agreement with the holder of such notes or bonds.
	2168	+
	2169	+	Sec. 31. Section 8-93 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2170	+
	2171	+	The principal and interest of bonds and notes issued under the provisions of part II of this chapter and this part shall be exempt from taxation, but the interest on such bonds and notes shall be included in the computation of any excise or franchise tax. The provisions of this section shall apply to all notes or bonds issued prior to October 6, 1949, under the provisions of sections 102a to 138a, inclusive, of the 1949 supplement to the general statutes.
	2172	+
	2173	+	Sec. 32. Subsection (c) of section 8-252 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2174	+
	2175	+	(c) Any provision of any law to the contrary notwithstanding, any bonds, bond anticipation notes or other obligations issued by the authority pursuant to this chapter shall be fully negotiable within the meaning and for all purposes of title 42a and each holder or owner of such a bond, bond anticipation note or other obligation or coupon is and shall be fully negotiable within the meaning and for all purposes of said title 42a. Any such bonds, bond anticipation notes or other obligations shall be legal investments for all trust companies, banks, investment companies, savings banks, building and loan associations, executors, administrators, guardians, conservators, trustees and other fiduciaries, and pension, profit-sharing and retirement funds and shall be exempt, both as to principal and interest, from any taxes imposed by the state of Connecticut or any subdivision thereof, other than estate or succession taxes, but the interest on such bonds, bond anticipation notes or other obligations shall be included in the computation of any excise or franchise tax.
	2176	+
	2177	+	Sec. 33. Section 8-312 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2178	+
	2179	+	It is hereby determined that the purposes of this chapter are public purposes and that the municipalities will be performing an essential governmental function in the exercise of the powers conferred upon them by this chapter. The state covenants with the purchasers and all subsequent holders and transferees of notes and bonds issued by the municipality, in consideration of the acceptance of and payment for the notes and bonds, that the principal and interest of notes and bonds of the municipality issued pursuant to this chapter shall at all times be free from taxation, except for estate and gift taxes, imposed by the state or by any political subdivision thereof, but the interest on such notes and bonds shall be included in the computation of any excise or franchise tax. Municipalities are authorized to include this covenant of the state in any agreement with the holder of such notes or bonds.
	2180	+
	2181	+	Sec. 34. Section 10a-191 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2182	+
	2183	+	The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of a project by the authority or its agent will constitute the performance of an essential public function, neither the authority nor its agent shall be required to pay any taxes or assessments upon or in respect of a project or any property acquired or used by the authority or its agent under the provisions of this chapter or upon the income therefrom, and any bonds issued under the provisions of this chapter, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the state and by the municipalities and other political subdivisions in the state, but the interest on such bonds shall be included in the computation of any excise or franchise tax.
	2184	+
	2185	+	Sec. 35. Subsection (r) of section 10a-204b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2186	+
	2187	+	(r) The state covenants with the purchasers and all other subsequent owners and transferees of bonds, notes or other obligations issued by the corporation or by any subsidiary created pursuant to subdivision (5) of section 10a-204 pursuant to this section, in consideration of the acceptance of and payment for the bonds, notes or other obligations, until the bonds, notes or other obligations, together with the interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceeding on behalf of the owners, are fully met and discharged or unless expressly permitted or otherwise authorized by the terms of each contract and agreement made or entered into by or on behalf of the issuer with or for the benefit of such owners, that the state: (1) Will not create or cause to be created any lien or charge on the assets or revenues pledged to secure such bonds, notes or other obligations, other than a lien or pledge created thereon pursuant to this section; (2) will not in any way impair the rights, exemptions or remedies of the owners; and (3) will not limit, modify, rescind, repeal or otherwise alter the rights or obligations of the issuer to take such action as may be necessary to fulfill the terms of the resolution authorizing the issuance of the bonds, notes or other obligations; provided nothing in this section shall preclude the state from exercising its power, through a change in law, to limit, modify, rescind, repeal or otherwise alter this chapter if and when adequate provision shall be made by law for the protection of the holders of outstanding bonds, notes or other obligations, pursuant to the resolution under which the bonds, notes or other obligations are issued. The state further covenants with the purchasers and all subsequent owners and transferees of bonds, notes or other obligations issued by the corporation or by such a subsidiary pursuant to this section, in consideration of the acceptance of and payment for the bonds, notes or other obligations that, notwithstanding any provision of title 12, the bonds, notes or other obligations shall be free at all times from taxes levied by any municipality or political subdivision or special district having taxing powers of the state, and the principal and interest of any bonds, notes or other obligations issued under the provisions of this section, the transfer of such bonds, notes or other obligations and the income from such bonds, notes or other obligations, including any profit on the sale or transfer of such bonds, notes or other obligations, shall at all times be exempt from any taxation by the state or under its authority, except for estate or succession taxes, but the interest on such bonds, notes or other obligations shall be included in the computation of any excise or franchise tax. The issuer is authorized to include covenants of the state provided for in this subsection, as a contract of the state, in any agreement with the owners of any bonds, notes or other obligations, in any credit facility or reimbursement agreement with respect to the bonds, notes or other obligations and in any agreement authorized by subsection (p) or (q) of this section.
	2188	+
	2189	+	Sec. 36. Subsection (h) of section 10-289f of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2190	+
	2191	+	(h) It is determined that the powers conferred on municipalities by sections 10-289d to 10-289g, inclusive, are in all respect for the benefit of the people of the state and for the improvement of their health, safety, welfare, comfort and security and that the purposes of said sections are public purposes and that municipalities will be performing an essential governmental function in the exercise of the powers conferred upon them by said sections. In consideration of the acceptance of any payment for bonds or notes issued by a municipality pursuant to sections 10-289d to 10-289g, inclusive, the state covenants with the purchasers and all subsequent holders and transferees of such bonds or notes that such bonds or notes and the income therefrom shall at all times be free from taxation, except for estate and gift taxes and taxes on transfers, but the interest on such bonds or notes shall be included in the computation of any excise or franchise tax. Issuing municipalities are authorized to include this covenant of the state in any agreement with the holder of such bonds or notes.
	2192	+
	2193	+	Sec. 37. Section 15-120m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2194	+
	2195	+	The exercise of the powers granted by sections 15-120g to 15-120o, inclusive, constitute the performance of an essential governmental function and the authority shall not be required to pay any taxes or assessments upon or in respect of the project, levied by any municipality or political subdivision or special district having taxing powers of the state and the project and the principal and interest of any bonds and notes issued under the provisions of said sections, their transfer and the income therefrom, including revenues derived from the sale thereof, shall at all times be free from taxation of every kind by the state of Connecticut or under its authority, except for estate or succession taxes, but the interest on such bonds and notes shall be included in the computation of any excise or franchise tax.
	2196	+
	2197	+	Sec. 38. Section 16-338 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2198	+
	2199	+	All bonds authorized or issued pursuant to this section under or pursuant to proceedings of the State Bond Commission had or taken prior to July 1, 1974, shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due and accordingly, and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due. All of said bonds and temporary notes in anticipation of the money to be derived from the sale thereof may be sold, executed, issued and delivered, and their proceeds collected, held, invested, applied and used, in all respects as authorized under the provisions of the general statutes in effect on June 30, 1974. Said bonds are made and declared to be (1) legal investments for savings banks and trustees unless otherwise provided in the instrument creating the trust, (2) securities in which all public officers and bodies, all insurance companies and associations and persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and persons carrying on a banking or investment business, all administrators, guardians, executors, trustees and other fiduciaries and all persons whatsoever who are or may be authorized to invest in bonds of the state, may properly and legally invest funds including capital in their control or belonging to them, and (3) securities which may be deposited with and shall be received by all public officers and bodies for any purpose for which the deposit of bonds of the state is or may be authorized. All such bonds, their transfer and the income therefrom including any profit on the sale or transfer thereof, shall at all times be exempt from all taxation by the state or under its authority, but the interest on such bonds shall be included in the computation of any excise or franchise tax.
	2200	+
	2201	+	Sec. 39. Subsection (a) of section 22a-270 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2202	+
	2203	+	(a) The exercise of the powers granted by this chapter constitute the performance of an essential governmental function and the authority shall not be required to pay any taxes or assessments upon or in respect of a project, or any property or moneys of the authority, levied by any municipality or political subdivision or special district having taxing powers of the state, nor shall the authority be required to pay state taxes of any kind, and the authority, its projects, property and money and any bonds and notes issued under the provisions of this chapter, their transfer and the income therefrom, including revenues derived from the sale thereof, shall at all times be free from taxation of every kind by the state except for estate or succession taxes and by the municipalities and all other political subdivisions or special districts having taxing powers of the state, but the interest on such bonds and notes shall be included in the computation of any excise or franchise tax; provided nothing herein shall prevent the authority from entering into agreements to make payments in lieu of taxes with respect to property acquired by it or by any person leasing a project from the authority or operating or managing a project on behalf of the authority and neither the authority nor its projects, properties, money or bonds and notes shall be obligated, liable or subject to lien of any kind for the enforcement, collection or payment thereof. If and to the extent the proceedings under which the bonds authorized to be issued under the provisions of this chapter so provide, the authority may agree to cooperate with the lessee or operator of a project in connection with any administrative or judicial proceedings for determining the validity or amount of such payment and may agree to appoint or designate and reserve the right in and for such lessees or operators to take all action which the authority may lawfully take in respect of such payments and all matters relating thereto, provided such lessee or operator shall bear and pay all costs and expenses of the authority thereby incurred at the request of such lessee or operator or by reason of any such action taken by such lessee or operator on behalf of the authority. Any lessee or operator of a project which has paid the amounts in lieu of taxes permitted by this section to be paid shall not be required to pay any such taxes in which a payment in lieu thereof has been made to the state or to any such municipality or other political subdivision or special district having taxing powers, any other statute to the contrary notwithstanding.
	2204	+
	2205	+	Sec. 40. Subsection (k) of section 22a-483 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2206	+
	2207	+	(k) The state covenants with the purchasers and all subsequent owners and transferees of bonds, state bond anticipation notes and state grant anticipation notes issued by the state pursuant to sections 22a-475 to 22a-483, inclusive, in consideration of the acceptance of and payment for the bonds, state bond anticipation notes and state grant anticipation notes, that such bonds, state bond anticipation notes and state grant anticipation notes shall be free at all times from taxes levied by any municipality or political subdivision or special district having taxing powers of the state and the principal and interest of any bonds, state bond anticipation notes and grant anticipation notes issued under the provisions of sections 22a-475 to 22a-483, inclusive, their transfer and the income therefrom, including revenues derived from the sale thereof, shall at all times be free from taxation of every kind by the state of Connecticut or under its authority, except for estate or succession taxes, but the interest on such bonds, state bond anticipation notes and state grant anticipation notes shall be included in the computation of any excise or franchise tax. The Treasurer is authorized to include this covenant of the state in any agreement with the owner of any such bonds, state bond anticipation notes or state grant anticipation notes.
	2208	+
	2209	+	Sec. 41. Section 32-23h of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2210	+
	2211	+	The exercise of the powers granted to the corporation shall constitute the performance of an essential governmental function and the corporation shall not be required to pay any taxes or assessments upon or in respect of a project, or any property or moneys of the corporation, levied by any municipality or political subdivision or special district having taxing powers of the state, nor shall the corporation be required to pay state taxes of any kind, and the corporation, its projects, property and moneys and any bonds and notes issued under the provisions of said chapters and sections, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the state except for estate or succession taxes and by the municipalities and all other political subdivisions or special districts having taxing powers of the state, but the interest on such bonds and notes shall be included in the computation of any excise or franchise tax; provided any person leasing a project from the corporation shall pay to the municipality, or other political subdivision or special district having taxing powers, in which such project is located, a payment in lieu of taxes which shall equal the taxes on real and personal property, including water and sewer assessments, which such lessee would have been required to pay had it been the owner of such property during the period for which such payment is made and neither the corporation nor its projects, properties, money or bonds and notes shall be obligated, liable or subject to lien of any kind for the enforcement, collection or payment thereof. The sale of tangible personal property or services by the corporation is exempt from the sales tax under chapter 219, and the storage, use or other consumption in this state of tangible personal property or services purchased from the corporation is exempt from the use tax under chapter 219. If and to the extent the proceedings by the corporation so provide, the corporation may agree to cooperate with the lessee of a project in connection with any administrative or judicial proceedings for determining the validity or amount of such payments and may agree to appoint or designate and reserve the right in and for such lessee to take all action which the corporation may lawfully take in respect of such payments and all matters relating thereto, provided such lessee shall bear and pay all costs and expenses of the corporation thereby incurred at the request of such lessee or by reason of any such action taken by such lessee on behalf of the corporation. Any lessee of a project which has paid the amounts in lieu of taxes required by this section to be paid shall not be required to pay any such taxes in which a payment in lieu thereof has been made to the state or to any such municipality or other political subdivision or special district having taxing powers, any other statute to the contrary notwithstanding. Any industrial pollution control facility financed by the corporation shall be subject to such approvals, as may be required by law, of any agency of the state and any agency of the United States having jurisdiction in the matter and, in the discretion of the corporation, may be acquired, constructed or improved as part of or jointly with a pollution control facility undertaken by a municipality or political subdivision or special district having taxing powers in the state and the corporation is authorized to cooperate and execute contracts with such a municipality or political subdivision or special district.
	2212	+
	2213	+	Sec. 42. (NEW) (Effective July 1, 2017) (a) The purpose of sections 42 to 50, inclusive, of this act, is to establish a comprehensive and uniform system of taxation of certain uniquely situated health care providers to raise revenue in conformity with Title XIX of the Social Security Act, as amended from time to time, and to promote the state's financial stability.
	2214	+
	2215	+	(b) As used in this section and sections 43 to 50, inclusive, of this act:
	2216	+
	2217	+	(1) "Commissioner" means the Commissioner of Revenue Services;
	2218	+
	2219	+	(2) "Department" means the Department of Revenue Services;
	2220	+
	2221	+	(3) "Taxpayer" means any health care provider subject to any tax or fee under this section;
	2222	+
	2223	+	(4) "Health care provider" means an individual or entity that receives any payment or payments for health care items or services provided;
	2224	+
	2225	+	(5) "Gross receipts" means the amount received or receivable, whether in cash or in kind, from patients, third-party payers and others for taxable health care items or services furnished by the taxpayer in the state, including retroactive adjustments under reimbursement agreements with third-party payers, without any deduction for any expenses of any kind;
	2226	+
	2227	+	(6) "Net revenue" means gross receipts less payer discounts, charity care and bad debts, to the extent the taxpayer previously paid tax under this section on the amount of such bad debts;
	2228	+
	2229	+	(7) "Payer discounts" means the difference between a health care provider's published charges and payments received in accordance with negotiated agreements with one or more health care payers for a different or discounted rate or method of payment than such published charges. "Payer discounts" does not include charity care or bad debts;
	2230	+
	2231	+	(8) "Charity care" means free or discounted health care services rendered by a health care provider to individuals who cannot afford to pay, including, but not limited to, care to the uninsured patient or patients who are not expected to pay all or part of a health care provider's bill based on income guidelines and other financial criteria set forth in the general statutes or in a health care provider's charity care policies on file at the office of such provider. "Charity care" does not include bad debts or payer discounts;
	2232	+
	2233	+	(9) "Received" means "received" or "accrued", construed according to the method of accounting customarily employed by the taxpayer;
	2234	+
	2235	+	(10) "Hospital" means any health care facility, as defined in section 19a-630 of the general statutes, that (A) is licensed by the Department of Public Health as a short-term general hospital; (B) is maintained primarily for the care and treatment of patients with disorders other than mental diseases; (C) meets the requirements for participation in Medicare as a hospital; and (D) has in effect a utilization review plan, applicable to all Medicaid patients, that meets the requirements of 42 CFR 482.30, as amended from time to time, unless a waiver has been granted by the Secretary of the United States Department of Health and Human Services;
	2236	+
	2237	+	(11) "Inpatient hospital services" means, in accordance with the provisions of 42 CFR 433.56(a)(1), as amended from time to time, and 42 CFR 440.10, as amended from time to time, all services that are (A) ordinarily furnished in a hospital for the care and treatment of inpatients; (B) furnished under the direction of a physician or dentist; and (C) furnished in a hospital. "Inpatient hospital services" does not include skilled nursing facility and intermediate care facility services furnished by a hospital with swing bed approval;
	2238	+
	2239	+	(12) "Inpatient" means a patient who has been admitted to a medical institution as an inpatient on the recommendation of a physician or dentist and who (A) receives room, board and professional services in the institution for a twenty-four-hour period or longer, or (B) is expected by the institution to receive room, board and professional services in the institution for a twenty-four-hour period or longer, even though it later develops that the patient does not actually stay in the institution for twenty-four hours;
	2240	+
	2241	+	(13) "Outpatient hospital services" means, in accordance with the provisions of 42 CFR 433.56(a)(2), as amended from time to time, and 42 CFR 440.20, as amended from time to time, preventive, diagnostic, therapeutic, rehabilitative or palliative services that are (A) furnished to outpatients; (B) furnished by or under the direction of a physician or dentist; and (C) furnished by a hospital;
	2242	+
	2243	+	(14) "Outpatient" means a patient of an organized medical facility or a distinct part of such facility, who is expected by the facility to receive, and who does receive, professional services for less than a twenty-four-hour period regardless of the hour of admission, whether or not a bed is used or the patient remains in the facility past midnight;
	2244	+
	2245	+	(15) "Nursing home" means any licensed chronic and convalescent nursing home or a rest home with nursing supervision;
	2246	+
	2247	+	(16) "Intermediate care facility for individuals with intellectual disabilities" or "intermediate care facility" means a residential facility for persons with intellectual disability that is certified to meet the requirements of 42 CFR 442, Subpart C, as amended from time to time, and, in the case of a private facility, licensed pursuant to section 17a-227 of the general statutes;
	2248	+
	2249	+	(17) "Medicare day" means a day of nursing home care service provided to an individual who is eligible for payment, in full or with a coinsurance requirement, under the federal Medicare program, including fee for service and managed care coverage;
	2250	+
	2251	+	(18) "Nursing home resident day" means a day of nursing home care service provided to an individual and includes the day a resident is admitted and any day for which the nursing home is eligible for payment for reserving a resident's bed due to hospitalization or temporary leave and for the date of death. For purposes of this subdivision, a day of nursing home care service shall be the period of time between the census-taking hour in a nursing home on two successive calendar days. "Nursing home resident day" does not include a Medicare day or the day a resident is discharged;
	2252	+
	2253	+	(19) "Intermediate care facility resident day" means a day of intermediate care facility residential care provided to an individual and includes the day a resident is admitted and any day for which the intermediate care facility is eligible for payment for reserving a resident's bed due to hospitalization or temporary leave and for the date of death. For purposes of this subdivision, a day of intermediate care facility residential care shall be the period of time between the census-taking hour in a facility on two successive calendar days. "Intermediate care facility resident day" does not include the day a resident is discharged;
	2254	+
	2255	+	(20) "Ambulatory surgical center" means any distinct entity that (A) operates exclusively for the purpose of providing surgical services to patients not requiring hospitalization and in which the expected duration of services would not exceed twenty-four hours following an admission; (B) has an agreement with the Centers for Medicare and Medicaid Services to participate in Medicare as an ambulatory surgical center; and (C) meets the general and specific conditions for participation in Medicare set forth in 42 CFR Part 416, Subparts B and C, as amended from time to time;
	2256	+
	2257	+	(21) "Ambulatory surgical center services" means, in accordance with 42 CFR 433.56(a)(9), as amended from time to time, services that are furnished in connection with covered surgical procedures performed in an ambulatory surgical center as provided in 42 CFR 416.164(a), as amended from time to time, for which payment is included in the ambulatory surgical center payment established under 42 CFR 416.171, as amended from time to time, for the covered surgical procedure. "Ambulatory surgical center services" includes facility services only and does not include surgical procedures;
	2258	+
	2259	+	(22) "Medicaid" means the program operated by the Department of Social Services pursuant to section 17b-260 of the general statutes and authorized by Title XIX of the Social Security Act, as amended from time to time; and
	2260	+
	2261	+	(23) "Medicare" means the program operated by the Centers for Medicare and Medicaid Services in accordance with Title XVIII of the Social Security Act, as amended from time to time.
	2262	+
	2263	+	Sec. 43. (NEW) (Effective July 1, 2017) (a) (1) For each calendar quarter commencing on or after July 1, 2017, each hospital and ambulatory surgical center shall pay a tax on the total net revenue received by each such health care provider for the provision of inpatient hospital services, outpatient hospital services and ambulatory surgical center services. The rate of tax on all net revenue received on and after July 1, 2017, shall be six per cent.
	2264	+
	2265	+	(2) Net revenue derived from furnishing a health care item or service to a patient shall be taxed only one time under this section. Net revenue from each hospital-owned ambulatory surgical center shall be considered net revenue of the hospital and shall be reported as net revenue from inpatient hospital services or outpatient hospital services to the extent such net revenue is derived from services that fall within the scope of inpatient hospital services or outpatient hospital services, as defined in subsection (b) of section 42 of this act. As used in this subsection, "hospital-owned ambulatory surgical center" includes only those ambulatory surgical centers that are considered departments of the owner-hospital and that have provider-based status in accordance with 42 CFR 413.65, as amended from time to time. If an ambulatory surgical center is owned by a hospital, but is not considered to be a department of the hospital or does not have provider-based status in accordance with 42 CFR 413.65, as amended from time to time, the net revenue of such ambulatory surgical center shall not be considered net revenue of the owner-hospital, and such ambulatory surgical center shall be required to file and pay tax for any net revenue received from the provision of ambulatory surgical center services.
	2266	+
	2267	+	(b) The Commissioner of Social Services shall seek approval from the Centers for Medicare and Medicaid Services to exempt from the net revenue tax imposed under subsection (a) of this section the following: (1) Specialty hospitals; (2) children's general hospitals; and (3) hospitals operated exclusively by the state other than a short-term acute hospital operated by the state as a receiver pursuant to chapter 920 of the general statutes. Any health care provider for which the Centers for Medicare and Medicaid Services grants an exemption shall be exempt from the net revenue tax imposed under subsection (a) of this section. Any such health care provider for which the Centers for Medicare and Medicaid Services denies an exemption shall be required to pay the net revenue tax imposed under subsection (a) of this section on inpatient hospital services and outpatient hospital services, as defined in section 42 of this act. As used in this subsection, (A) "specialty hospitals" means health care facilities, as defined in section 19a-630 of the general statutes, other than facilities licensed by the Department of Public Health as a short-term general hospital or a short-term children's hospital. "Specialty hospitals" includes, but is not limited to, psychiatric hospitals and chronic disease hospitals, and (B) "children's general hospitals" means health care facilities, as defined in section 19a-630 of the general statutes, that are licensed by the Department of Public Health as a short-term children's hospital. "Children's general hospitals" does not include specialty hospitals.
	2268	+
	2269	+	(c) Prior to January 1, 2018, and every three years thereafter, the Commissioner of Social Services shall seek approval from the Centers for Medicare and Medicaid Services to exempt financially distressed hospitals from the net revenue tax imposed on outpatient hospital services. Any such hospital for which the Centers for Medicare and Medicaid Services grants an exemption shall be exempt from the net revenue tax imposed on outpatient hospital services under subsection (a) of this section. Any hospital for which the Centers for Medicare and Medicaid Services denies an exemption shall be required to pay the net revenue tax imposed on outpatient hospital services under subsection (a) of this section. "Financially distressed hospitals" means hospitals that have experienced over a five-year period an average net loss of more than one per cent of aggregate revenue. A hospital has an average net loss of more than one per cent of aggregate revenue if such a loss is reflected in the five most recent years of financial reporting that have been made available by the Office of Healthcare Access for such hospital, in accordance with section 19a-670 of the general statutes, as of the effective date of the request for approval, which effective date shall be July first of the year in which the request is made.
	2270	+
	2271	+	(d) The provisions of section 17b-8 of the general statutes shall not apply to any waiver or waivers sought by the Department of Social Services from the Centers for Medicare and Medicaid Services under this section.
	2272	+
	2273	+	Sec. 44. (NEW) (Effective July 1, 2017) (a) For each calendar quarter commencing on or after July 1, 2017, there is hereby imposed a quarterly fee on each nursing home and intermediate care facility in this state, which fee shall be the product of each facility's total resident days during the calendar quarter multiplied by the user fee. Except as otherwise provided in this section, the user fee for nursing homes shall be twenty-one dollars and two cents and the user fee for intermediate care facilities shall be twenty-seven dollars and twenty-six cents. As used in this subsection, "resident day" means nursing home resident day and intermediate care facility resident day, as applicable.
	2274	+
	2275	+	(b) The Commissioner of Social Services shall seek approval from the Centers for Medicare and Medicaid Services to exempt from the quarterly fee imposed on nursing homes under subsection (a) of this section those nursing homes owned and operated by a legal entity registered as a continuing care facility with the Department of Social Services in accordance with section 17b-521 of the general statutes. Any nursing home for which the Centers for Medicare and Medicaid Services grants an exemption shall be exempt from the quarterly fee imposed on nursing homes under subsection (a) of this section. Any nursing home for which the Centers for Medicare and Medicaid Services denies an exemption shall be required to pay the quarterly fee imposed on nursing homes under subsection (a) of this section.
	2276	+
	2277	+	(c) The Commissioner of Social Services shall seek approval from the Centers for Medicare and Medicaid Services for permission to impose a user fee in the amount of sixteen dollars and thirteen cents upon nursing homes owned by municipalities and nursing homes licensed for more than two hundred thirty beds. If the Centers for Medicare and Medicaid Services grants permission, the user fee imposed on nursing homes owned by municipalities and nursing homes licensed for more than two hundred thirty beds shall be sixteen dollars and thirteen cents. If the Centers for Medicare and Medicaid Services denies permission, the user fee for nursing homes owned by municipalities and nursing homes licensed for more than two hundred thirty beds shall be twenty-one dollars and two cents.
	2278	+
	2279	+	(d) The provisions of section 17b-8 of the general statutes shall not apply to any waiver or waivers sought by the Department of Social Services from the Centers for Medicare and Medicaid Services under this section.
	2280	+
	2281	+	Sec. 45. (NEW) (Effective July 1, 2017) (a) No tax credit or credits shall be allowable against any tax or fee imposed under section 43 or 44 of this act.
	2282	+
	2283	+	(b) Each taxpayer doing business in this state shall, on or before the last day of January, April, July and October of each year, render to the commissioner a quarterly return, on forms prescribed or furnished by the commissioner and signed by one of the taxpayer's principal officers, stating specifically the name and location of such taxpayer, the amount of its net patient revenue or resident days during the calendar quarter ending on the last day of the preceding month and such other information as the commissioner deems necessary for the proper administration of this section and the state's Medicaid program. The taxes and fees imposed under this section shall be due and payable on the due date of such return. Each taxpayer shall be required to file such return electronically with the department and to make such payment by electronic funds transfer in the manner provided by chapter 228g of the general statutes, irrespective of whether the taxpayer would have otherwise been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of said chapter.
	2284	+
	2285	+	(c) (1) If any taxpayer fails to pay the amount of tax or fee reported to be due on such taxpayer's return within the time specified under the provisions of this section, there shall be imposed a penalty equal to ten per cent of such amount due and unpaid, or fifty dollars, whichever is greater. The tax or fee shall bear interest at the rate of one per cent per month or fraction thereof, from the due date of such tax or fee until the date of payment.
	2286	+
	2287	+	(2) If any taxpayer has not made its return within one month of the due date of such return, the commissioner may make such return at any time thereafter, according to the best information obtainable and according to the form prescribed. There shall be added to the tax or fee imposed upon the basis of such return an amount equal to ten per cent of such tax or fee, or fifty dollars, whichever is greater. The tax or fee shall bear interest at the rate of one per cent per month or fraction thereof, from the due date of such tax or fee until the date of payment.
	2288	+
	2289	+	(3) 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 subsection when it is proven to the commissioner's satisfaction that the failure to pay any tax or fee on time was due to reasonable cause and was not intentional or due to neglect.
	2290	+
	2291	+	(4) The commissioner shall notify the Commissioner of Social Services of any amount delinquent under this section and, upon receipt of such notice, the Commissioner of Social Services shall deduct and withhold such amount from amounts otherwise payable by the Department of Social Services to the delinquent taxpayer.
	2292	+
	2293	+	(d) (1) Any person required under sections 43 to 48, inclusive, of this act to pay any tax or fee, make a return, keep any records or supply any information, who wilfully fails, at the time required by law, to pay such tax or fee, make such return, keep such records or supply such information, shall, in addition to any other penalty provided by law, be fined not more than one thousand dollars or imprisoned not more than one year, or both. As used in this subsection, "person" includes any officer or employee of a taxpayer under a duty to pay such tax or fee, make such return, keep such records or supply such information. Notwithstanding the provisions of section 54-193 of the general statutes, no person shall be prosecuted for a violation of the provisions of this subsection committed on or after July 1, 1997, except within three years next after such violation has been committed.
	2294	+
	2295	+	(2) Any person who wilfully delivers or discloses to the commissioner or the commissioner's authorized agent any list, return, account, statement or other document, known by such person to be fraudulent or false in any material matter, shall, in addition to any other penalty provided by law, be guilty of a class D felony. No person shall be charged with an offense under both this subdivision and subdivision (1) of this subsection in relation to the same tax period but such person may be charged and prosecuted for both such offenses upon the same information.
	2296	+
	2297	+	Sec. 46. (NEW) (Effective July 1, 2017) (a) (1) The commissioner may examine the records of any taxpayer subject to a tax or fee imposed under the provisions of section 43 or 44 of this act as the commissioner deems necessary. If the commissioner determines from such examination that there is a deficiency with respect to the payment of any such tax or fee due under the provisions of section 43 or 44 of this act, the commissioner shall assess the deficiency in tax or fee, give notice of such deficiency assessment to the taxpayer and make demand for payment. Such amount shall bear interest at the rate of one per cent per month or fraction thereof from the date when the original tax or fee was due and payable. (A) When it appears that any part of the deficiency for which a deficiency assessment is made is due to negligence or intentional disregard of the provisions of this section or regulations adopted thereunder, there shall be imposed a penalty equal to ten per cent of the amount of such deficiency assessment, or fifty dollars, whichever is greater. (B) When it appears that any part of the deficiency for which a deficiency assessment is made is due to fraud or intent to evade the provisions of this section or regulations adopted thereunder, there shall be imposed a penalty equal to twenty-five per cent of the amount of such deficiency assessment. No taxpayer shall be subject to more than one penalty under this subdivision in relation to the same tax period. Not later than thirty days after the mailing of such notice, the taxpayer shall pay to the commissioner, in cash or by check, draft or money order drawn to the order of the Commissioner of Revenue Services, any additional amount of tax, penalty and interest shown to be due.
	2298	+
	2299	+	(2) Except in the case of a wilfully false or fraudulent return with intent to evade the tax or fee, no assessment of additional tax or fee shall be made after the expiration of more than three years from the date of the filing of a return or from the original due date of a return, whichever is later. Where, before the expiration of the period prescribed under this subsection for the assessment of an additional tax or fee, a taxpayer has consented, in writing, that such period may be extended, the amount of such additional tax due may be determined at any time within such extended period. The period so extended may be further extended by subsequent consents, in writing, before the expiration of the extended period.
	2300	+
	2301	+	(b) (1) The commissioner may enter into an agreement with the Commissioner of Social Services delegating to the Commissioner of Social Services the authority to examine the records and returns of any taxpayer subject to any tax or fee imposed under section 43 or 44 of this act and to determine whether such tax has been underpaid or overpaid. If such authority is so delegated, examinations of such records and returns by the Commissioner of Social Services and determinations by the Commissioner of Social Services that such tax or fee has been underpaid or overpaid shall have the same effect as similar examinations or determinations made by the commissioner.
	2302	+
	2303	+	(2) The commissioner may enter into an agreement with the Commissioner of Social Services in order to facilitate the exchange of return or return information necessary for the Commissioner of Social Services to perform his or her responsibilities under this section and to ensure compliance with the state's Medicaid program.
	2304	+
	2305	+	(3) The Commissioner of Social Services may engage an independent auditor to assist in the performance of said commissioner's duties and responsibilities under this subsection. Any reports generated by such independent auditor shall be provided simultaneously to the department and the Department of Social Services.
	2306	+
	2307	+	(c) (1) The commissioner may require all persons subject to a tax or fee imposed under section 43 or 44 of this act to keep such records as the commissioner may prescribe and may require the production of books, papers, documents and other data, to provide or secure information pertinent to the determination of the taxes or fees imposed under section 43 or 44 of this act and the enforcement and collection thereof.
	2308	+
	2309	+	(2) The commissioner or any person authorized by the commissioner may examine the books, papers, records and equipment of any person liable under the provisions of this section and may investigate the character of the business of such person to verify the accuracy of any return made or, if no return is made by the person, to ascertain and determine the amount required to be paid.
	2310	+
	2311	+	(d) The commissioner may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of sections 43 to 50, inclusive, of this act.
	2312	+
	2313	+	Sec. 47. (NEW) (Effective July 1, 2017) (a) Any taxpayer subject to any tax or fee under section 43 or 44 of this act, believing that it has overpaid any tax or fee due under said sections, may file a claim for refund, in writing, with the commissioner not later than three years after the due date for which such overpayment was made, stating the specific grounds upon which the claim is founded. Failure to file a claim within the time prescribed in this subsection shall constitute a waiver of any demand against the state on account of overpayment. Within a reasonable time, as determined by the commissioner, following receipt of such claim for refund, the commissioner shall determine whether such claim is valid and, if so determined, the commissioner shall notify the Comptroller of the amount of such refund and the Comptroller shall draw an order on the Treasurer in the amount thereof for payment to the taxpayer. If the commissioner determines that such claim is not valid, either in whole or in part, the commissioner shall mail notice of the proposed disallowance in whole or in part of the claim to the taxpayer, which notice shall set forth briefly the commissioner's findings of fact and the basis of disallowance in each case decided in whole or in part adversely to the taxpayer. Sixty days after the date on which it is mailed, a notice of proposed disallowance shall constitute a final disallowance except only for such amounts as to which the taxpayer has filed, as provided in subsection (b) of this section, a written protest with the commissioner.
	2314	+
	2315	+	(b) On or before the sixtieth day after the mailing of the proposed disallowance, the taxpayer may file with the commissioner a written protest against the proposed disallowance in which the taxpayer sets forth the grounds on which the protest is based. If a protest is filed, the commissioner shall reconsider the proposed disallowance and, if the taxpayer has so requested, may grant or deny the taxpayer or its authorized representatives a hearing.
	2316	+
	2317	+	(c) The commissioner shall mail notice of the commissioner's determination to the taxpayer, which notice shall set forth briefly the commissioner's findings of fact and the basis of decision in each case decided in whole or in part adversely to the taxpayer.
	2318	+
	2319	+	(d) The action of the commissioner on the taxpayer's protest shall be final upon the expiration of one month from the date on which the commissioner mails notice of the commissioner's determination to the taxpayer, unless within such period the taxpayer seeks judicial review of the commissioner's determination.
	2320	+
	2321	+	(e) Notwithstanding any other provision of the general statutes, no taxpayer may challenge any tax or fee due under section 43 or 44 of this act other than in accordance with this section and section 48 of this act.
	2322	+
	2323	+	Sec. 48. (NEW) (Effective July 1, 2017) (a) Any taxpayer subject to any tax or fee under section 43 or 44 of this act that is aggrieved by the action of the commissioner, the Commissioner of Social Services or an authorized agent of said commissioners in fixing the amount of any tax, penalty, interest or fee under sections 43 to 46, inclusive, of this act may apply to the commissioner, in writing, not later than sixty days after the notice of such action is delivered or mailed to such taxpayer, for a hearing and a correction of the amount of such tax, penalty, interest or fee, setting forth the reasons why such hearing should be granted and the amount by which such tax, penalty, interest or fee should be reduced. The commissioner shall promptly consider each such application and may grant or deny the hearing requested. If the hearing is denied, the taxpayer shall be notified immediately. If the hearing is granted, the commissioner shall notify the applicant of the date, time and place for such hearing. After such hearing, the commissioner may make such order as appears just and lawful to the commissioner and shall furnish a copy of such order to the taxpayer. The commissioner may, by notice in writing, order a hearing on the commissioner's own initiative and require a taxpayer or any other individual who the commissioner believes to be in possession of relevant information concerning such taxpayer to appear before the commissioner or the commissioner's authorized agent with any specified books of account, papers or other documents, for examination under oath.
	2324	+
	2325	+	(b) Any taxpayer subject to any tax or fee under section 43 or 44 of this act that is aggrieved because of any order, decision, determination or disallowance of the commissioner made under sections 43 to 47, inclusive, of this act may, not later than one month after service of notice of such order, decision, determination or disallowance, take an appeal therefrom to the superior court for the judicial district of New Britain, which appeal shall be accompanied by a citation to the commissioner to appear before said court. Such citation shall be signed by the same authority and such appeal shall be returnable at the same time and served and returned in the same manner as is required in case of a summons in a civil action. The authority issuing the citation shall take from the appellant a bond or recognizance to the state of Connecticut, with surety, to prosecute the appeal to effect and to comply with the orders and decrees of the court in the premises. Such appeals shall be preferred cases, to be heard, unless cause appears to the contrary, at the first session, by the court or by a committee appointed by the court. Said court may grant such relief as may be equitable and, if such tax or charge has been paid prior to the granting of such relief, may order the Treasurer to pay the amount of such relief, with interest at the rate of two-thirds of one per cent per month or fraction thereof, to such taxpayer. If the appeal has been taken without probable cause, the court may tax double or triple costs, as the case demands and, upon all such appeals that are denied, costs may be taxed against such taxpayer at the discretion of the court but no costs shall be taxed against the state.
	2326	+
	2327	+	(c) Notwithstanding any other provision of the general statutes, no taxpayer that is aggrieved by the action of the commissioner, the Commissioner of Social Services or an authorized agent of said commissioners in fixing the amount of any tax, penalty, interest or fee under sections 43 to 46, inclusive, of this act may challenge any such action other than in accordance with this section and section 47 of this act.
	2328	+
	2329	+	Sec. 49. (NEW) (Effective July 1, 2017) The commissioner and any agent of the commissioner duly authorized to conduct any inquiry, investigation or hearing pursuant to sections 45 to 58, inclusive, of this act shall have power to administer oaths and take testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by the commissioner, the commissioner or the commissioner's agent authorized to conduct such hearing and having authority by law to issue such process may subpoena witnesses and require the production of books, papers and documents pertinent to such inquiry or investigation. No witness under subpoena authorized to be issued under the provisions of this section shall be excused from testifying or from producing books, papers or documentary evidence on the ground that such testimony or the production of such books, papers or documentary evidence would tend to incriminate such witness, but such books, papers or documentary evidence so produced shall not be used in any criminal proceeding against such witness. If any person disobeys such process or, having appeared in obedience thereto, refuses to answer any pertinent question put to such person by the commissioner or the commissioner's authorized agent, or to produce any books, papers or other documentary evidence pursuant thereto, the commissioner or such agent may apply to the superior court of the judicial district wherein the taxpayer resides or wherein the business has been conducted, or to any judge of such court if the same is not in session, setting forth such disobedience to process or refusal to answer, and such court or such judge shall cite such person to appear before such court or such judge to answer such question or to produce such books, papers or other documentary evidence and, upon such person's refusal so to do, shall commit such person to a community correctional center until such person testifies, but not for a period longer than sixty days. Notwithstanding the serving of the term of such commitment by any person, the commissioner may proceed in all respects with such inquiry and examination as if the witness had not previously been called upon to testify. Officers who serve subpoenas issued by the commissioner or under the commissioner's authority and witnesses attending hearings conducted by the commissioner pursuant to this section shall receive fees and compensation at the same rates as officers and witnesses in the courts of this state, to be paid on vouchers of the commissioner on order of the Comptroller from the proper appropriation for the administration of this section.
	2330	+
	2331	+	Sec. 50. (NEW) (Effective July 1, 2017) The amount of any tax, penalty, interest or fee, due and unpaid under the provisions of sections 43 to 48, inclusive, of this act may be collected under the provisions of section 12-35 of the general statutes. The warrant provided under section 12-35 of the general statutes shall be signed by the commissioner or the commissioner's authorized agent. The amount of any such tax, penalty, interest or fee shall be a lien on the real estate of the taxpayer from the last day of the month next preceding the due date of such tax until such tax is paid. The commissioner may record such lien in the records of any town in which the real estate of such taxpayer is situated but no such lien shall be enforceable against a bona fide purchaser or qualified encumbrancer of such real estate. When any tax or fee with respect to which a lien has been recorded under the provisions of this subsection has been satisfied, the commissioner shall, upon request of any interested party, issue a certificate discharging such lien, which certificate shall be recorded in the same office in which the lien was recorded. Any action for the foreclosure of such lien shall be brought by the Attorney General in the name of the state in the superior court for the judicial district in which the property subject to such lien is situated, or, if such property is located in two or more judicial districts, in the superior court for any one such judicial district, and the court may limit the time for redemption or order the sale of such property or make such other or further decree as it judges equitable. For purposes of section 12-39g of the general statutes, a fee under this section shall be treated as a tax.
	2332	+
	2333	+	Sec. 51. (NEW) (Effective July 1, 2017) At the close of each fiscal year commencing with the fiscal year ending June 30, 2018, the Comptroller is authorized to record as revenue for each such fiscal year the amount of tax and fee imposed under the provisions of sections 42 to 50, inclusive, of this act that is received by the commissioner not later than five business days after the last day of July immediately following the end of such fiscal year.
	2334	+
	2335	+	Sec. 52. Subsection (a) of section 12-263b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2336	+
	2337	+	(a) For each calendar quarter commencing on or after July 1, 2011, and prior to July 1, 2017, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law and in conformance with the state budget adopted by the General Assembly. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed in order to ensure conformance with the state budget adopted by the General Assembly. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.
	2338	+
	2339	+	Sec. 53. Subdivision (1) of subsection (b) of section 12-263i of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2340	+
	2341	+	(b) (1) For each calendar quarter commencing on or after October 1, 2015, and prior to July 1, 2017, there is hereby imposed a tax on each ambulatory surgical center in this state to be paid each calendar quarter. The tax imposed by this section shall be at the rate of six per cent of the gross receipts of each ambulatory surgical center, except that such tax shall not be imposed on any amount of such gross receipts that constitutes either (A) the first million dollars of gross receipts of the ambulatory surgical center in the applicable fiscal year, or (B) net patient revenue of a hospital that is subject to the tax imposed under this chapter. Nothing in this section shall prohibit an ambulatory surgical center from seeking remuneration for the tax imposed by this section.
	2342	+
	2343	+	Sec. 54. Subparagraph (A) of subdivision (1) of subsection (b) of section 17b-320 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2344	+
	2345	+	(b) (1) (A) For each calendar quarter commencing on or after July 1, 2005, and prior to July 1, 2017, there is hereby imposed a resident day user fee on each nursing home in this state, which fee shall be the product of the nursing home's total resident days during the calendar quarter multiplied by the user fee, as determined by the Commissioner of Social Services pursuant to subsection (a) of section 17b-321.
	2346	+
	2347	+	Sec. 55. Subsection (a) of section 17b-321 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2348	+
	2349	+	(a) On or before July 1, 2005, and on or before July first annually or biennially [thereafter] and prior to July 1, 2017, the Commissioner of Social Services shall determine the amount of the user fee and promptly notify the commissioner and nursing homes of such amount. The user fee shall be (1) the sum of each nursing home's anticipated nursing home net revenue, including, but not limited to, its estimated net revenue from any increases in Medicaid payments, during the twelve-month period ending on June thirtieth of the succeeding calendar year, (2) which sum shall be multiplied by a percentage as determined by the Secretary of the Office of Policy and Management, in consultation with the Commissioner of Social Services, provided before January 1, 2008, such percentage shall not exceed six per cent, on and after January 1, 2008, and prior to October 1, 2011, such percentage shall not exceed five and one-half per cent, and on and after October 1, 2011, and prior to July 1, 2017, such percentage shall not exceed the maximum allowed under federal law, and (3) which product shall be divided by the sum of each nursing home's anticipated resident days during the twelve-month period ending on June thirtieth of the succeeding calendar year. The Commissioner of Social Services, in anticipating nursing home net revenue and resident days, shall use the most recently available nursing home net revenue and resident day information. Notwithstanding the provisions of this section, the Commissioner of Social Services may adjust the user fee as necessary to prevent the state from exceeding the maximum allowed under federal law.
	2350	+
	2351	+	Sec. 56. Section 17b-323 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2352	+
	2353	+	Not later than fifteen days after approval of the Medicaid state plan amendment required to implement subdivision (4) of subsection (f) of section 17b-340 and prior to July 1, 2017, the Commissioner of Social Services shall seek approval from the Centers for Medicare and Medicaid Services for, and shall file a provider user fee uniformity waiver request regarding, the user fee set forth in sections 17b-320 and 17b-321, as amended by this act. The request for approval shall include a request for a waiver of federal requirements for uniform and broad-based user fees in accordance with 42 CFR 433.68, to (1) exempt from the user fee prescribed by section 17b-320 any nursing home that is owned and operated as of May 1, 2005, by the legal entity that is registered as a continuing care facility with the Department of Social Services, in accordance with section 17b-521, regardless of whether such nursing home participates in the Medicaid program and any nursing home licensed after May 1, 2005, that is owned and operated by the legal entity that is registered as a continuing care facility with the Department of Social Services in accordance with section 17b-521; and (2) impose a user fee in an amount less than the fee determined pursuant to section 17b-320, as amended by this act, as necessary to meet the requirements of 42 CFR 433.68(e)(2) on (A) nursing homes owned by a municipality, and (B) nursing homes licensed for more than two hundred thirty beds. Notwithstanding any provision of the general statutes, the provisions of section 17b-8 shall not apply to the waiver sought pursuant to this section.
	2354	+
	2355	+	Sec. 57. Subdivision (1) of subsection (b) of section 17b-340a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2356	+
	2357	+	(b) (1) For each calendar quarter commencing on or after July 1, 2011, and prior to July 1, 2017, there is hereby imposed a resident day user fee on each intermediate care facility for individuals with intellectual disabilities in this state, which fee shall be the product of the facility's total resident days during the calendar quarter multiplied by the user fee, as determined by the Commissioner of Social Services pursuant to section 17b-340b, as amended by this act.
	2358	+
	2359	+	Sec. 58. Section 17b-340b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
	2360	+
	2361	+	On or before July 1, 2011, and on or before July first annually or biennially [thereafter] and prior to July 1, 2017, the Commissioner of Social Services shall determine the amount of the user fee and promptly notify the commissioner and the intermediate care facilities for individuals with intellectual disabilities of such amount. The user fee shall be (1) the sum of each facility's anticipated net revenue, including, but not limited to, its estimated net revenue from any increases in Medicaid payments during the twelve-month period ending on June thirtieth of the succeeding calendar year, (2) which sum shall be multiplied by a percentage as determined by the Secretary of the Office of Policy and Management, in consultation with the Commissioner of Social Services, provided, before October 1, 2011, such percentage shall not exceed five and one-half per cent and, on and after October 1, 2011, and prior to July 1, 2017, such percentage shall not exceed the maximum amount allowed under federal law, and (3) which product shall be divided by the sum of each facility's anticipated resident days during the twelve-month period ending on June thirtieth of the succeeding calendar year. The Commissioner of Social Services, in anticipating facility net revenue and resident days, shall use the most recently available facility net revenue and resident day information. Notwithstanding the provisions of this section, the Commissioner of Social Services may adjust the user fee as necessary to prevent the state from exceeding the maximum amount allowed under federal law.
	2362	+
	2363	+	Sec. 59. Subsection (d) of section 12-746 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
	2364	+
	2365	+	(d) As used in this section, "income tax liability as shown on such return" means the liability after application of the credit for property taxes allowed and taken on such return pursuant to section 12-704c, revision of 1958, revised to January 1, 1999, as corrected for mathematical error by the Commissioner of Revenue Services on the original return filed by such taxpayer.
	2366	+
	2367	+	Sec. 60. Section 12-704c of the general statutes is repealed. (Effective from passage and applicable to taxable years commencing on or after January 1, 2017)
2291	2368
2292	2369
2293	2370
2294	2371
2295	2372		This act shall take effect as follows and shall amend the following sections:
2296	2373		Section 1 from passage New section
2297		-	Sec. 2 from passage and applicable to taxable years commencing on or after January 1, 2017 12-704e(e)
2298		-	Sec. 3 January 1, 2018 New section
2299		-	Sec. 4 January 1, 2019, and applicable to taxable years commencing on or after January 1, 2019 12-701(a)(20)(B)
2300		-	Sec. 5 January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018 12-391
2301		-	Sec. 6 January 1, 2018 12-640
2302		-	Sec. 7 January 1, 2018, and applicable to gifts made on or after January 1, 2018 12-642
2303		-	Sec. 8 January 1, 2018 12-643
2304		-	Sec. 9 from passage 12-211a(a)
2305		-	Sec. 10 from passage 12-217jj(a)(3)(A)
2306		-	Sec. 11 July 1, 2017 12-217jj
2307		-	Sec. 12 July 1, 2017 12-412(62)
2308		-	Sec. 13 July 1, 2017 New section
2309		-	Sec. 14 July 1, 2017 New section
2310		-	Sec. 15 July 1, 2017 12-217jj
2311		-	Sec. 16 July 1, 2017 12-391(i)
2312		-	Sec. 17 July 1, 2017 12-217zz
2313		-	Sec. 18 from passage 12-202
2314		-	Sec. 19 from passage 12-202a(a)
2315		-	Sec. 20 from passage 12-210(b)
2316		-	Sec. 21 July 1, 2017 12-263b
2317		-	Sec. 22 July 1, 2017 New section
2318		-	Sec. 23 July 1, 2017 12-263b
2319		-	Sec. 24 January 1, 2018 12-541(a)
2320		-	Sec. 25 July 1, 2017 7-168a(a)
2321		-	Sec. 26 July 1, 2017 12-407(a)(37)(OO)
2322		-	Sec. 27 July 1, 2017 7-73
2323		-	Sec. 28 from passage New section
2324		-	Sec. 29 July 1, 2017 12-408(1)(K)
2325		-	Sec. 30 July 1, 2017 New section
2326		-	Sec. 31 July 1, 2017 3-21(a)
2327		-	Sec. 32 from passage New section
	2374	+	Sec. 2 from passage New section
	2375	+	Sec. 3 from passage 22a-244(a)
	2376	+	Sec. 4 from passage 12-202
	2377	+	Sec. 5 from passage 12-202a(a)
	2378	+	Sec. 6 from passage 12-210(b)
	2379	+	Sec. 7 from passage 12-211a(a)
	2380	+	Sec. 8 from passage 12-217jj(a)(3)(A)
	2381	+	Sec. 9 from passage and applicable to taxable years commencing on or after January 1, 2017 12-704e(e)
	2382	+	Sec. 10 January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018 12-391
	2383	+	Sec. 11 January 1, 2018, and applicable to gifts made on or after January 1, 2018 12-642
	2384	+	Sec. 12 January 1, 2018, and applicable to gifts made on or after January 1, 2018 12-643
	2385	+	Sec. 13 July 1, 2017, and applicable to sales occurring on or after July 1, 2017 12-296
	2386	+	Sec. 14 July 1, 2017, and applicable to sales occurring on or after July 1, 2017 12-316
	2387	+	Sec. 15 from passage New section
	2388	+	Sec. 16 July 1, 2017 12-330c
	2389	+	Sec. 17 July 1, 2017 19a-323(b)
	2390	+	Sec. 18 July 1, 2017, and applicable to background check services requested on or after July 1, 2017 29-11(c)
	2391	+	Sec. 19 July 1, 2017, and applicable to applications submitted on or after July 1, 2017 29-30(a)
	2392	+	Sec. 20 July 1, 2017 7-34a(d)
	2393	+	Sec. 21 July 1, 2017 30-68m
	2394	+	Sec. 22 from passage New section
	2395	+	Sec. 23 from passage New section
	2396	+	Sec. 24 from passage 3-20(e)
	2397	+	Sec. 25 from passage 7-209
	2398	+	Sec. 26 from passage 7-233s
	2399	+	Sec. 27 from passage 7-273g(g)
	2400	+	Sec. 28 from passage 7-273mm(a)
	2401	+	Sec. 29 from passage 7-329l
	2402	+	Sec. 30 from passage 7-497
	2403	+	Sec. 31 from passage 8-93
	2404	+	Sec. 32 from passage 8-252(c)
	2405	+	Sec. 33 from passage 8-312
	2406	+	Sec. 34 from passage 10a-191
	2407	+	Sec. 35 from passage 10a-204b(r)
	2408	+	Sec. 36 from passage 10-289f(h)
	2409	+	Sec. 37 from passage 15-120m
	2410	+	Sec. 38 from passage 16-338
	2411	+	Sec. 39 from passage 22a-270(a)
	2412	+	Sec. 40 from passage 22a-483(k)
	2413	+	Sec. 41 from passage 32-23h
	2414	+	Sec. 42 July 1, 2017 New section
	2415	+	Sec. 43 July 1, 2017 New section
	2416	+	Sec. 44 July 1, 2017 New section
	2417	+	Sec. 45 July 1, 2017 New section
	2418	+	Sec. 46 July 1, 2017 New section
	2419	+	Sec. 47 July 1, 2017 New section
	2420	+	Sec. 48 July 1, 2017 New section
	2421	+	Sec. 49 July 1, 2017 New section
	2422	+	Sec. 50 July 1, 2017 New section
	2423	+	Sec. 51 July 1, 2017 New section
	2424	+	Sec. 52 July 1, 2017 12-263b(a)
	2425	+	Sec. 53 July 1, 2017 12-263i(b)(1)
	2426	+	Sec. 54 July 1, 2017 17b-320(b)(1)(A)
	2427	+	Sec. 55 July 1, 2017 17b-321(a)
	2428	+	Sec. 56 July 1, 2017 17b-323
	2429	+	Sec. 57 July 1, 2017 17b-340a(b)(1)
	2430	+	Sec. 58 July 1, 2017 17b-340b
	2431	+	Sec. 59 from passage 12-746(d)
	2432	+	Sec. 60 from passage and applicable to taxable years commencing on or after January 1, 2017 Repealer section
2328	2433
2329	2434		This act shall take effect as follows and shall amend the following sections:
2330	2435
2331	2436		Section 1
2332	2437
2333	2438		from passage
2334	2439
2335	2440		New section
2336	2441
2337	2442		Sec. 2
2338	2443
	2444	+	from passage
	2445	+
	2446	+	New section
	2447	+
	2448	+	Sec. 3
	2449	+
	2450	+	from passage
	2451	+
	2452	+	22a-244(a)
	2453	+
	2454	+	Sec. 4
	2455	+
	2456	+	from passage
	2457	+
	2458	+	12-202
	2459	+
	2460	+	Sec. 5
	2461	+
	2462	+	from passage
	2463	+
	2464	+	12-202a(a)
	2465	+
	2466	+	Sec. 6
	2467	+
	2468	+	from passage
	2469	+
	2470	+	12-210(b)
	2471	+
	2472	+	Sec. 7
	2473	+
	2474	+	from passage
	2475	+
	2476	+	12-211a(a)
	2477	+
	2478	+	Sec. 8
	2479	+
	2480	+	from passage
	2481	+
	2482	+	12-217jj(a)(3)(A)
	2483	+
	2484	+	Sec. 9
	2485	+
2339	2486		from passage and applicable to taxable years commencing on or after January 1, 2017
2340	2487
2341	2488		12-704e(e)
2342	2489
2343		-	Sec. 3
2344		-
2345		-	January 1, 2018
	2490	+	Sec. 10
	2491	+
	2492	+	January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018
	2493	+
	2494	+	12-391
	2495	+
	2496	+	Sec. 11
	2497	+
	2498	+	January 1, 2018, and applicable to gifts made on or after January 1, 2018
	2499	+
	2500	+	12-642
	2501	+
	2502	+	Sec. 12
	2503	+
	2504	+	January 1, 2018, and applicable to gifts made on or after January 1, 2018
	2505	+
	2506	+	12-643
	2507	+
	2508	+	Sec. 13
	2509	+
	2510	+	July 1, 2017, and applicable to sales occurring on or after July 1, 2017
	2511	+
	2512	+	12-296
	2513	+
	2514	+	Sec. 14
	2515	+
	2516	+	July 1, 2017, and applicable to sales occurring on or after July 1, 2017
	2517	+
	2518	+	12-316
	2519	+
	2520	+	Sec. 15
	2521	+
	2522	+	from passage
2346	2523
2347	2524		New section
2348	2525
2349		-	Sec. 4
2350		-
2351		-	January 1, 2019, and applicable to taxable years commencing on or after January 1, 2019
2352		-
2353		-	12-701(a)(20)(B)
2354		-
2355		-	Sec. 5
2356		-
2357		-	January 1, 2018, and applicable to estates of decedents dying on or after January 1, 2018
2358		-
2359		-	12-391
2360		-
2361		-	Sec. 6
2362		-
2363		-	January 1, 2018
2364		-
2365		-	12-640
2366		-
2367		-	Sec. 7
2368		-
2369		-	January 1, 2018, and applicable to gifts made on or after January 1, 2018
2370		-
2371		-	12-642
2372		-
2373		-	Sec. 8
2374		-
2375		-	January 1, 2018
2376		-
2377		-	12-643
2378		-
2379		-	Sec. 9
2380		-
2381		-	from passage
2382		-
2383		-	12-211a(a)
2384		-
2385		-	Sec. 10
2386		-
2387		-	from passage
2388		-
2389		-	12-217jj(a)(3)(A)
2390		-
2391		-	Sec. 11
	2526	+	Sec. 16
2392	2527
2393	2528		July 1, 2017
2394	2529
2395		-	12-~~217jj~~
2396		-
2397		-	Sec. 12
	2530	+	12-330c
	2531	+
	2532	+	Sec. 17
2398	2533
2399	2534		July 1, 2017
2400	2535
2401		-	12-412(62)
2402		-
2403		-	Sec. 13
	2536	+	19a-323(b)
	2537	+
	2538	+	Sec. 18
	2539	+
	2540	+	July 1, 2017, and applicable to background check services requested on or after July 1, 2017
	2541	+
	2542	+	29-11(c)
	2543	+
	2544	+	Sec. 19
	2545	+
	2546	+	July 1, 2017, and applicable to applications submitted on or after July 1, 2017
	2547	+
	2548	+	29-30(a)
	2549	+
	2550	+	Sec. 20
2404	2551
2405	2552		July 1, 2017
2406	2553
	2554	+	7-34a(d)
	2555	+
	2556	+	Sec. 21
	2557	+
	2558	+	July 1, 2017
	2559	+
	2560	+	30-68m
	2561	+
	2562	+	Sec. 22
	2563	+
	2564	+	from passage
	2565	+
2407	2566		New section
2408	2567
2409		-	Sec. 14
	2568	+	Sec. 23
	2569	+
	2570	+	from passage
	2571	+
	2572	+	New section
	2573	+
	2574	+	Sec. 24
	2575	+
	2576	+	from passage
	2577	+
	2578	+	3-20(e)
	2579	+
	2580	+	Sec. 25
	2581	+
	2582	+	from passage
	2583	+
	2584	+	7-209
	2585	+
	2586	+	Sec. 26
	2587	+
	2588	+	from passage
	2589	+
	2590	+	7-233s
	2591	+
	2592	+	Sec. 27
	2593	+
	2594	+	from passage
	2595	+
	2596	+	7-273g(g)
	2597	+
	2598	+	Sec. 28
	2599	+
	2600	+	from passage
	2601	+
	2602	+	7-273mm(a)
	2603	+
	2604	+	Sec. 29
	2605	+
	2606	+	from passage
	2607	+
	2608	+	7-329l
	2609	+
	2610	+	Sec. 30
	2611	+
	2612	+	from passage
	2613	+
	2614	+	7-497
	2615	+
	2616	+	Sec. 31
	2617	+
	2618	+	from passage
	2619	+
	2620	+	8-93
	2621	+
	2622	+	Sec. 32
	2623	+
	2624	+	from passage
	2625	+
	2626	+	8-252(c)
	2627	+
	2628	+	Sec. 33
	2629	+
	2630	+	from passage
	2631	+
	2632	+	8-312
	2633	+
	2634	+	Sec. 34
	2635	+
	2636	+	from passage
	2637	+
	2638	+	10a-191
	2639	+
	2640	+	Sec. 35
	2641	+
	2642	+	from passage
	2643	+
	2644	+	10a-204b(r)
	2645	+
	2646	+	Sec. 36
	2647	+
	2648	+	from passage
	2649	+
	2650	+	10-289f(h)
	2651	+
	2652	+	Sec. 37
	2653	+
	2654	+	from passage
	2655	+
	2656	+	15-120m
	2657	+
	2658	+	Sec. 38
	2659	+
	2660	+	from passage
	2661	+
	2662	+	16-338
	2663	+
	2664	+	Sec. 39
	2665	+
	2666	+	from passage
	2667	+
	2668	+	22a-270(a)
	2669	+
	2670	+	Sec. 40
	2671	+
	2672	+	from passage
	2673	+
	2674	+	22a-483(k)
	2675	+
	2676	+	Sec. 41
	2677	+
	2678	+	from passage
	2679	+
	2680	+	32-23h
	2681	+
	2682	+	Sec. 42
2410	2683
2411	2684		July 1, 2017
2412	2685
2413	2686		New section
2414	2687
2415		-	Sec. 15
	2688	+	Sec. 43
2416	2689
2417	2690		July 1, 2017
2418	2691
2419		-	~~12-217jj~~
2420		-
2421		-	Sec. 16
	2692	+	New section
	2693	+
	2694	+	Sec. 44
2422	2695
2423	2696		July 1, 2017
2424	2697
2425		-	~~12-391(i)~~
2426		-
2427		-	Sec. 17
	2698	+	New section
	2699	+
	2700	+	Sec. 45
2428	2701
2429	2702		July 1, 2017
2430	2703
2431		-	12-217zz
2432		-
2433		-	Sec. 18
2434		-
2435		-	from passage
2436		-
2437		-	12-202
2438		-
2439		-	Sec. 19
2440		-
2441		-	from passage
2442		-
2443		-	12-202a(a)
2444		-
2445		-	Sec. 20
2446		-
2447		-	from passage
2448		-
2449		-	12-210(b)
2450		-
2451		-	Sec. 21
	2704	+	New section
	2705	+
	2706	+	Sec. 46
2452	2707
2453	2708		July 1, 2017
2454	2709
2455		-	~~12-263b~~
2456		-
2457		-	Sec. 22
	2710	+	New section
	2711	+
	2712	+	Sec. 47
2458	2713
2459	2714		July 1, 2017
2460	2715
2461	2716		New section
2462	2717
2463		-	Sec. 23
	2718	+	Sec. 48
2464	2719
2465	2720		July 1, 2017
2466	2721
2467		-	12-263b
2468		-
2469		-	Sec. 24
2470		-
2471		-	January 1, 2018
2472		-
2473		-	12-541(a)
2474		-
2475		-	Sec. 25
	2722	+	New section
	2723	+
	2724	+	Sec. 49
2476	2725
2477	2726		July 1, 2017
2478	2727
2479		-	~~7-168a(a)~~
2480		-
2481		-	Sec. 26
	2728	+	New section
	2729	+
	2730	+	Sec. 50
2482	2731
2483	2732		July 1, 2017
2484	2733
2485		-	~~12-407(a)(37)(OO)~~
2486		-
2487		-	Sec. 27
	2734	+	New section
	2735	+
	2736	+	Sec. 51
2488	2737
2489	2738		July 1, 2017
2490	2739
2491		-	7-73
2492		-
2493		-	Sec. 28
2494		-
2495		-	from passage
2496		-
2497	2740		New section
2498	2741
2499		-	Sec. 29
	2742	+	Sec. 52
2500	2743
2501	2744		July 1, 2017
2502	2745
2503		-	12-~~408~~(1)~~(K)~~
2504		-
2505		-	Sec. 30
	2746	+	12-263b(a)
	2747	+
	2748	+	Sec. 53
2506	2749
2507	2750		July 1, 2017
2508	2751
2509		-	~~New section~~
2510		-
2511		-	Sec. 31
	2752	+	12-263i(b)(1)
	2753	+
	2754	+	Sec. 54
2512	2755
2513	2756		July 1, 2017
2514	2757
2515		-	3-21(a)
2516		-
2517		-	Sec. 32
2518		-
2519		-	from passage
2520		-
2521		-	New section
2522		-
2523		-
2524		-
2525		-	FIN Joint Favorable Subst.
2526		-
2527		-	FIN
2528		-
2529		-	Joint Favorable Subst.
	2758	+	17b-320(b)(1)(A)
	2759	+
	2760	+	Sec. 55
	2761	+
	2762	+	July 1, 2017
	2763	+
	2764	+	17b-321(a)
	2765	+
	2766	+	Sec. 56
	2767	+
	2768	+	July 1, 2017
	2769	+
	2770	+	17b-323
	2771	+
	2772	+	Sec. 57
	2773	+
	2774	+	July 1, 2017
	2775	+
	2776	+	17b-340a(b)(1)
	2777	+
	2778	+	Sec. 58
	2779	+
	2780	+	July 1, 2017
	2781	+
	2782	+	17b-340b
	2783	+
	2784	+	Sec. 59
	2785	+
	2786	+	from passage
	2787	+
	2788	+	12-746(d)
	2789	+
	2790	+	Sec. 60
	2791	+
	2792	+	from passage and applicable to taxable years commencing on or after January 1, 2017
	2793	+
	2794	+	Repealer section
	2795	+
	2796	+	Statement of Purpose:
	2797	+
	2798	+	To implement the Governor's budget recommendations.
	2799	+
	2800	+	[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.]