General Assembly Substitute Bill No. 1047
January Session, 2017 *_____SB01047FIN___042817____*
General Assembly
Substitute Bill No. 1047
January Session, 2017
*_____SB01047FIN___042817____*
AN ACT CONCERNING TAX PREPARERS AND FACILITATORS, THE DEPARTMENT OF REVENUE SERVICES' CHANGES TO THE TAX AND RELATED STATUTES AND ESTABLISHING THE MENTAL HEALTH COMMUNITY INVESTMENT ACCOUNT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2017) (a) As used in this section:
(1) "Attorney" means an attorney admitted to practice law in this state or one or more of the other states or jurisdictions of the United States;
(2) "Certified public accountant" means a certified public accountant licensed pursuant to chapter 389 of the general statutes or a similar law of one or more of the other states or jurisdictions of the United States;
(3) "Commissioner" means the Commissioner of Revenue Services or the commissioner's designee;
(4) "Creditor" means any person who makes a refund anticipation loan or who takes an assignment of a refund anticipation loan;
(5) "Facilitator" means a person that individually or in conjunction or cooperation with another person: (A) Solicits the execution of, processes, receives or accepts an application or agreement for a refund anticipation loan or refund anticipation check; (B) serves or collects upon a refund anticipation loan or refund anticipation check; or (C) in any other manner, facilitates the making of a refund anticipation loan or refund anticipation check. "Facilitator" does not include any employee of a facilitator who provides only clerical or other comparable support services to such facilitator;
(6) "Person" has the same meaning as provided in section 12-1 of the general statutes;
(7) "Refund anticipation check" means a check, debit card, stored value card or other payment mechanism that: (A) Represents the proceeds of a federal or state personal income tax refund; (B) is issued by a bank or other person that received a direct deposit of the tax refund or tax credits; and (C) is paid for by a fee or other consideration;
(8) "Refund anticipation loan" means a loan that is secured by or that the creditor arranges to be repaid directly or indirectly from the proceeds of a federal or state personal income tax refund. "Refund anticipation loan" includes any sale, assignment or purchase of such tax refund at a discount or for a fee, whether or not the amount is required to be repaid to the buyer or assignee if the Internal Revenue Service or the Department of Revenue Services denies or reduces the amount of the tax refund;
(9) "Return" means a tax return or report relating to the federal or state personal income tax administered by the Internal Revenue Service or the Department of Revenue Services;
(10) "Tax preparation services" means the preparation of or assistance in the preparation of another person's federal or state personal income tax return, for a fee or other consideration; and
(11) "Tax preparer" means an individual who provides federal or state personal income tax preparation services for a fee or other consideration.
(b) (1) No person that provides tax preparation services or acts as a facilitator shall:
(A) Impose any fee or other consideration in the making or facilitating of a refund anticipation loan or refund anticipation check other than the fee charged by the creditor or bank that originated such loan or check;
(B) Engage in unfair or deceptive acts or practices in the making or facilitating of a refund anticipation loan or refund anticipation check, including making any written or oral statement that contradicts any information required to be disclosed under the Taxpayer Bill of Rights, as set forth in the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, or the Connecticut Taxpayer's Bill of Rights, as set forth in section 12-39n of the general statutes;
(C) Directly or indirectly arrange for a third party, other than the originating creditor or bank, to impose any interest, fee or charge related to a refund anticipation loan or refund anticipation check;
(D) Include any of the following provisions in any documents provided with respect to a refund anticipation loan or refund anticipation check, including in the loan application or agreement: (i) A hold harmless clause; (ii) a confession of judgment clause; (iii) any assignment of or order for payment of wages or other compensation for services; (iv) a waiver of any provision of the Taxpayer Bill of Rights or the Connecticut Taxpayer's Bill of Rights; or (v) a waiver of the right to injunctive, declaratory or other equitable relief or relief on a class-wide basis;
(E) Take or arrange for a creditor to take a security interest in any property interest of the taxpayer other than the proceeds of the tax refund to secure payment of a refund anticipation loan;
(F) Directly or indirectly, individually or in conjunction or cooperation with another person, engage in the collection of an outstanding or delinquent refund anticipation loan for any creditor or assignee;
(G) Make a material misrepresentation of fact in obtaining or attempting to obtain a permit under section 2 of this act;
(H) Fail or refuse to return to a taxpayer, within a reasonable period of time, any documents or copies of such documents provided by the taxpayer;
(I) Fail or refuse to provide to a taxpayer, for the taxpayer's own records, a copy of any document requiring the taxpayer's signature, within a reasonable time after the taxpayer signs the document;
(J) Fail to maintain a copy of any return prepared for a taxpayer for a period of four years from the date of completion or the due date of the return, whichever is later;
(K) Require or allow a taxpayer to sign blank or incomplete tax forms;
(L) Require a taxpayer to designate the tax preparer or facilitator as the payee for a federal or state personal income tax refund; or
(M) Require a taxpayer to designate and use a specific depository institution or debit card or stored value card provider for the purposes of receiving a federal or state personal income tax refund.
(2) Each tax preparer preparing any return shall sign the return and include his or her preparer tax identification number issued by the Internal Revenue Service.
(3) The commissioner may impose on any person providing tax preparation services or acting as a facilitator that violates any provision of subdivision (1) or (2) of this subsection a civil penalty of not more than five hundred dollars for each violation. Subject to the provisions of section 12-3a of the general statutes, the commissioner may waive all or part of the penalty provided under this subdivision when it is proven to the commissioner's satisfaction that the violation was due to reasonable cause and not intentional or due to neglect.
Sec. 2. (NEW) (Effective October 1, 2018) (a) As used in sections 2 to 4, inclusive, of this act, "attorney", "certified public accountant", "commissioner", "creditor", "facilitator", "refund anticipation check", "refund anticipation loan", "return", "tax preparation services" and "tax preparer" have the same meanings as provided in section 1 of this act, and "commercial tax return preparation business" means a person that employs tax preparers.
(b) (1) On and after January 1, 2019, no person, except as provided in subsection (e) of this section, shall engage in the business of, solicit business as or advertise as furnishing tax preparation services or acting as a facilitator or make representations to be a tax preparer or facilitator, without a tax preparer permit or a facilitator permit, as applicable, issued by the commissioner. Each applicant for such permit and renewal of such permit shall apply by electronic means in the form and manner prescribed by the commissioner.
(2) Each individual applying for a permit shall (A) be eighteen years of age or older, (B) have obtained a high school diploma, (C) possess a preparer tax identification number issued by the Internal Revenue Service that shall be used by the tax preparer or facilitator for each return such tax preparer is required to sign and each refund anticipation loan or refund anticipation check such facilitator is required to sign, and (D) present evidence satisfactory to the commissioner that the applicant has experience, education or training in tax preparation services, which evidence shall include, on and after January 1, 2020, a certificate of completion of an annual filing season program administered by the Internal Revenue Service.
(3) The commissioner may issue a permit under this subsection to an applicant that presents evidence satisfactory to the commissioner that the applicant is authorized to act as a tax preparer or facilitator in a state that has professional requirements substantially similar to the requirements for tax preparers or facilitators in this state. The commissioner shall provide written notice of the commissioner's decision approving or denying an application for issuance or renewal of a permit not later than sixty days after receipt of the application.
(4) The fee for an initial application shall be one hundred dollars. A permit issued pursuant to this subsection shall expire after two years and a tax preparer or facilitator seeking renewal shall submit a renewal application and renewal fee of fifty dollars.
(5) If an individual acts as both a tax preparer and a facilitator, the commissioner shall issue a single permit covering both activities.
(c) (1) If, at any time following the issuance or renewal of a permit issued pursuant to subsection (b) of this section, any information provided to the commissioner by the tax preparer or facilitator is no longer accurate, such tax preparer or facilitator shall promptly provide updated information to the commissioner.
(2) The issuance of a tax preparer permit or a facilitator permit shall not be advertised as an endorsement by the commissioner of the tax preparer's or facilitator's services.
(d) (1) On and after January 1, 2019, the commissioner may impose on any tax preparer or facilitator that has not been issued a permit pursuant to this section a civil penalty of one hundred dollars for each day that the commissioner finds such tax preparer or facilitator to have provided tax preparation services or acted as a facilitator.
(2) On and after January 1, 2019, if a tax preparer, facilitator or commercial tax return preparation business employs an individual to provide tax preparation services or a person to act as a facilitator that is not exempt under subsection (e) of this section and has not been issued a permit pursuant to this section, the commissioner may impose on such employing tax preparer, facilitator or business a civil penalty of five hundred dollars per violation.
(3) On and after January 1, 2019, whenever a tax preparer ceases to engage in the preparation of or in advising or assisting in the preparation of personal income tax returns or a facilitator ceases to engage in the activities of a facilitator, such tax preparer or facilitator may apply to the commissioner for inactive permit status. A permit that is granted inactive status shall not require renewal, except that such permit may be reactivated upon application to the commissioner with a payment of the renewal fee.
(4) A tax preparer or facilitator whose permit is inactive shall neither act as a tax preparer or facilitator nor advertise such tax preparer's or facilitator's status as being permitted to act as a tax preparer or facilitator.
(e) The following persons shall be exempt from the provisions of sections 2 to 4, inclusive, of this act:
(1) An accountant holding (A) an active license issued by the State Board of Accountancy, or (B) a valid and active permit, license or equivalent professional credential issued by another state or jurisdiction of the United States;
(2) An attorney and any person engaged in providing tax preparation services under the supervision of such attorney;
(3) An individual enrolled to practice before the Internal Revenue Service under Circular 230;
(4) An individual employed by a local, state or federal governmental agency while engaged in the performance of such person's official duties;
(5) An individual serving as an employee of or assistant to a tax preparer or a person exempted under this subsection, in the performance of official duties for such tax preparer or exempt person;
(6) An individual employed, full-time or part-time, to act as a tax preparer solely for the business purposes of such individual's employer;
(7) A person acting as a fiduciary on behalf of an estate; and
(8) An Internal Revenue Services qualified tax preparer, including, but not limited to, a tax preparer sponsored by the Tax Counseling for the Elderly program or the Volunteer Income Tax Assistance program.
(f) The commissioner shall maintain a public registry containing the names and principal business address of each person holding a permit pursuant to this section.
(g) The commissioner shall keep confidential any personal financial information gathered pursuant to an investigation of any alleged violation of sections 2 to 4, inclusive, of this act, unless disclosure is (1) considered necessary for the investigation or prosecution of an alleged violation of this section or any regulation or order adopted thereunder, or (2) otherwise expressly authorized under the provisions of federal or state law. For purposes of this subsection, "personal financial information" includes, but is not limited to, returns and return information, as defined under federal and state law.
Sec. 3. (NEW) (Effective October 1, 2018) Prior to providing tax preparation services, a tax preparer shall provide to any person requesting such services a written disclosure that includes:
(1) The tax preparer's name, principal business address and primary business telephone number;
(2) An estimate of the total charge for completion of all requested tax preparation services; and
(3) A warranty that the tax preparer shall, by encryption or other means, provide for the secure storage and transmission of a taxpayer's personal and tax record information.
Sec. 4. (NEW) (Effective October 1, 2018) (a) (1) No tax preparer or facilitator shall do or commit any of the following acts or omissions, and the commissioner may deny the issuance of an initial or a renewal permit and may suspend or revoke any such permit for the following acts or omissions or for a violation of any provision of sections 2 and 3 of this act:
(A) Engage in a criminal act resulting in conviction of the tax preparer or facilitator or in unprofessional conduct resulting in final disciplinary action by the federal government, any state or jurisdiction of the United States, any other governmental agency or a professional licensing board or similar entity, provided such act or conduct is substantially related to qualification as a tax preparer or facilitator;
(B) Procure or attempt to procure a permit under section 2 of this act by material misrepresentation or fraud; or
(C) Violate, attempt to violate or assist in or abet the violation of any provision of section 2 or 3 of this act.
(2) The commissioner may discipline a tax preparer or facilitator by (A) issuing a written warning, (B) suspending the tax preparer's or facilitator's permit for a period not to exceed one year, or (C) revoking such permit.
(b) (1) The commissioner may issue a written order notifying a tax preparer or facilitator of the suspension or revocation of such tax preparer's or facilitator's permit for good cause shown. Such notice shall include the right of the tax preparer or facilitator to request, in writing, a hearing before the commissioner, provided such request is received by the commissioner not later than thirty days after the date of such notice.
(2) If a hearing is timely requested, the commissioner shall, not later than thirty days after the receipt of the request, convene such hearing as a contested case in accordance with the provisions of chapter 54 of the general statutes. Not later than sixty days after the receipt of the request, the commissioner shall issue a final decision vacating, modifying or affirming the commissioner's order. Any person aggrieved by such final decision may appeal such decision in accordance with the provisions of section 4-183 of the general statutes.
(c) Nothing in sections 1 to 4, inclusive, of this act shall be construed to prevent the state from pursuing any other remedy available under law for actions taken by a tax preparer or facilitator.
Sec. 5. Subsection (b) of section 12-7a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(b) [The commissioner shall annually] If requested by the Secretary of the Office of Policy and Management, the commissioner shall prepare, from the list prepared pursuant to subsection (a) of this section, a list of taxpayers who are delinquent in the payment of the corporation business tax under chapter 208. The list [shall be arranged in sequential order by the] may also include taxpayer identification [number] numbers assigned by the commissioner. [and shall be provided to the Secretary of the Office of Policy and Management not later than July fifteenth annually, commencing July 15, 1998.]
Sec. 6. Subsection (b) of section 12-15 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(b) The commissioner may disclose (1) returns or return information to (A) an authorized representative of another state agency or office, upon written request by the head of such agency or office, when required in the course of duty or when there is reasonable cause to believe that any state law is being violated, or (B) an authorized representative of an agency or office of the United States, upon written request by the head of such agency or office, when required in the course of duty or when there is reasonable cause to believe that any federal law is being violated, provided no such agency or office shall disclose such returns or return information, other than in a judicial or administrative proceeding to which such agency or office is a party pertaining to the enforcement of state or federal law, as the case may be, in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer except that the names and addresses of jurors or potential jurors and the fact that the names were derived from the list of taxpayers pursuant to chapter 884 may be disclosed by the Judicial Branch; (2) returns or return information to the Auditors of Public Accounts, when required in the course of duty under chapter 23; (3) returns or return information to tax officers of another state or of a Canadian province or of a political subdivision of such other state or province or of the District of Columbia or to any officer of the United States Treasury Department or the United States Department of Health and Human Services, authorized for such purpose in accordance with an agreement between this state and such other state, province, political subdivision, the District of Columbia or department, respectively, when required in the administration of taxes imposed under the laws of such other state, province, political subdivision, the District of Columbia or the United States, respectively, and when a reciprocal arrangement exists; (4) returns or return information in any action, case or proceeding in any court of competent jurisdiction, when the commissioner or any other state department or agency is a party, and when such information is directly involved in such action, case or proceeding; (5) returns or return information to a taxpayer or its authorized representative, upon written request for a return filed by or return information on such taxpayer; (6) returns or return information to a successor, receiver, trustee, executor, administrator, assignee, guardian or guarantor of a taxpayer, when such person establishes, to the satisfaction of the commissioner, that such person has a material interest which will be affected by information contained in such returns or return information; (7) information to the assessor or an authorized representative of the chief executive officer of a Connecticut municipality, when the information disclosed is limited to (A) a list of real or personal property that is or may be subject to property taxes in such municipality, or (B) a list containing the name of each person who is issued any license, permit or certificate which is required, under the provisions of this title, to be conspicuously displayed and whose address is in such municipality; (8) real estate conveyance tax return information or controlling interest transfer tax return information to the town clerk or an authorized representative of the chief executive officer of a Connecticut municipality to which the information relates; (9) estate tax returns and estate tax return information to the Probate Court Administrator or to the court of probate for the district within which a decedent resided at the date of the decedent's death, or within which the commissioner contends that a decedent resided at the date of the decedent's death or, if a decedent died a nonresident of this state, in the court of probate for the district within which real estate or tangible personal property of the decedent is situated, or within which the commissioner contends that real estate or tangible personal property of the decedent is situated; (10) returns or return information to the (A) Secretary of the Office of Policy and Management for purposes of subsection (b) of section 12-7a, as amended by this act, and (B) Office of Fiscal Analysis for purposes of, and subject to the provisions of, subdivision (2) of subsection (f) of section 12-7b; (11) return information to the Jury Administrator, when the information disclosed is limited to the names, addresses, federal Social Security numbers and dates of birth, if available, of residents of this state, as defined in subdivision (1) of subsection (a) of section 12-701; (12) [pursuant to regulations adopted by the commissioner,] returns or return information to any person to the extent necessary in connection with the processing, storage, transmission or reproduction of such returns or return information, and the programming, maintenance, repair, testing or procurement of equipment, or the providing of other services, for purposes of tax administration; (13) without written request and unless the commissioner determines that disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation, returns and return information which may constitute evidence of a violation of any civil or criminal law of this state or the United States to the extent necessary to apprise the head of such agency or office charged with the responsibility of enforcing such law, in which event the head of such agency or office may disclose such return information to officers and employees of such agency or office to the extent necessary to enforce such law; (14) names and addresses of operators, as defined in section 12-407, to tourism districts, as defined in section 10-397; (15) names of each licensed dealer, as defined in section 12-285, and the location of the premises covered by the dealer's license; (16) to a tobacco product manufacturer that places funds into escrow pursuant to the provisions of subsection (a) of section 4-28i, return information of a distributor licensed under the provisions of chapter 214 or chapter 214a, provided the information disclosed is limited to information relating to such manufacturer's sales to consumers within this state, whether directly or through a distributor, dealer or similar intermediary or intermediaries, of cigarettes, as defined in section 4-28h, and further provided there is reasonable cause to believe that such manufacturer is not in compliance with section 4-28i; (17) returns, which shall not include a copy of the return filed with the commissioner, or return information for purposes of section 12-217z; (18) returns or return information to the State Elections Enforcement Commission, upon written request by said commission, when necessary to investigate suspected violations of state election laws; and (19) returns or return information for purposes of, and subject to the conditions of, subsection (e) of section 5-240.
Sec. 7. Section 12-39cc of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) The Commissioner of Revenue Services [shall enter into agreements with] and financial institutions, as defined in Section 469A(d)(1) of the Social Security Act, as amended from time to time, doing business in this state, [to] shall develop and operate a data match system using automated data exchanges to the maximum extent feasible and enter into agreements regarding the administration of such system. The commissioner may waive, for any financial institution, the requirement to enter into such agreement. Notwithstanding the provisions of section 12-15, as amended by this act, the commissioner or the commissioner's designee shall provide to each financial institution a list of taxpayers who owe taxes to the state, which taxes are finally due and payable and with respect to which every administrative or judicial remedy, or both, has been exhausted or has lapsed. Such list shall include each taxpayer's address, Social Security number or other taxpayer identification number and such other information as may be necessary or convenient for the administration of the data match system. Not later than ninety days after receipt of such list from the commissioner, each financial institution shall provide the commissioner with [the names of] account information for those taxpayers who appear on the commissioner's list and who maintain an account with such financial institution, including the taxpayer's name, the address and Social Security number or other taxpayer identification number associated with each such account, [and a statement as to whether the balance of each such account exceeds one thousand dollars] the account number and balance in each such account and such other information as may be required by the commissioner for the purposes of administering the data match system. For the purposes of this section, "account" means a demand deposit account, checking or negotiable order of withdrawal account, savings account, time deposit account or money market mutual fund account.
(b) (1) A financial institution shall not be liable to any person for [(1)] (A) disclosing information to the [Commissioner of Revenue Services] commissioner or the commissioner's designee pursuant to this section, or [(2)] (B) any other action taken in good faith to comply with the requirements of subsection (a) of this section.
(2) Notwithstanding the provisions of section 12-15, as amended by this act, a financial institution may provide return information received pursuant to the data match system to (A) a service provider engaged by the financial institution to carry out the data processing and data receipt and transmission functions, to the extent necessary for the financial institution to comply with the requirements of subsection (a) of this section, and (B) an authorized representative of a government regulatory authority having jurisdiction over the financial institution, to the extent required by such representative in the course of such representative's duties. No person receiving return information pursuant to this subdivision shall further disclose such return information.
Sec. 8. Section 12-80b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) (1) Each taxpayer described in subsection (a) of section 12-80a that owns tangible personal property used both to render telecommunications service subject to tax under chapter 219 and to render community antenna television service or a certified competitive video service subject to tax under [said] chapter 219 [,] shall have part of such property taxed as provided in [said] section 12-80a and part of such property exempt from property tax in accordance with section 12-268j.
(2) The portion of such property to be taxed as provided in section 12-80a and the portion exempt under section 12-268j shall be computed [, as provided in regulations adopted by the Commissioner of Revenue Services in accordance with the provisions of chapter 54] on the basis of the taxpayer's gross receipts from rendering telecommunications service or a certified competitive video service, as defined in chapter 219, and from rendering community antenna television service, as defined in [said] chapter 219, or on some other basis permitted under [such] regulations the commissioner may adopt in accordance with the provisions of chapter 54.
(b) (1) Each taxpayer not described in subsection (a) of section 12-80a that owns tangible personal property used both to render telecommunications service subject to tax under chapter 219 and to render community antenna television service or a certified competitive video service subject to tax under [said] chapter 219 shall have part of such property taxed as provided in this chapter, without regard to [said] section 12-80a, and part of such property exempt from property tax in accordance with section 12-268j.
(2) The portion of such property to be taxed as provided in this chapter, without regard to section 12-80a and the portion exempt under section 12-268j, shall be computed [, as provided in regulations adopted by the Commissioner of Revenue Services in accordance with the provisions of chapter 54,] on the basis of the taxpayer's gross receipts from rendering telecommunications service, as defined in chapter 219, and from rendering community antenna television service or a certified competitive video service, as defined in [said] chapter 219, or on some other basis permitted under [such] regulations the commissioner may adopt in accordance with the provisions of chapter 54.
(c) For purposes of this section, "assessment year" means the assessment year under this chapter.
(d) For purposes of this section, "community antenna television service" shall include service provided by a holder of a certificate of cable franchise authority pursuant to section 16-331p.
Sec. 9. Subdivision (28) of subsection (a) of section 12-213 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(28) (A) "Captive real estate investment trust" means, except as provided in subparagraph (B) of this subdivision, a corporation, a trust or an association (i) that is considered a real estate investment trust for the taxable year under Section 856 of the Internal Revenue Code; (ii) that is not regularly traded on an established securities market; (iii) in which more than fifty per cent of the voting power, beneficial interests or shares are owned or controlled, directly or constructively, by a single entity that is subject to Subchapter C of Chapter 1 of the Internal Revenue Code; and (iv) that is not a qualified real estate investment trust, as defined in subdivision (3) of subsection (a) of section 12-217. Any voting power, beneficial interests or shares in a real estate investment trust that are directly owned or controlled by a segregated asset account of a life insurance company, as described in Section 817 of the Internal Revenue Code, shall not be taken into account for purposes of determining whether a real estate investment trust is a captive real estate investment trust.
(B) "Captive real estate investment trust" does not include a corporation, a trust or an association, in which more than fifty per cent of the entity's voting power, beneficial interests or shares are owned by a single entity described in subparagraph (A)(iii) of this subdivision that is owned or controlled, directly or constructively, by (i) a corporation, a trust or an association that is considered a real estate investment trust under Section 856 of the Internal Revenue Code; (ii) a person exempt from taxation under Section 501 of the Internal Revenue Code; (iii) a listed property trust or other foreign real estate investment trust that is organized in a country that has a tax treaty with the United States Treasury Department governing the tax treatment of these trusts; or (iv) a real estate investment trust that is intended to become regularly traded on an established securities market and that satisfies the requirements of Sections 856(a)(5) and 856(a)(6) of the Internal Revenue Code, as determined under Section 856(h) of the Internal Revenue Code.
(C) For purposes of this subdivision, the constructive ownership rules of Section 318 of the Internal Revenue Code, as modified by Section 856(d)(5) of the Internal Revenue Code, apply to the determination of the ownership of stock, assets or net profits of any person;
Sec. 10. Subsection (b) of section 12-222 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage, and applicable to income years commencing on or after January 1, 2017):
(b) Such return shall be due on or before the [first] fifteenth day of the month next succeeding the due date of the company's corresponding federal income tax return for the income year, determined without regard to any extension of time for filing, or, in the case of any company that is not required to file a federal income tax return for the income year, on or before the [first] fifteenth day of the [fourth] fifth month next succeeding the end of the income year.
Sec. 11. Subsection (d) of section 12-242d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage, and applicable to income years commencing on or after January 1, 2017):
(d) For purposes of this section, the amount of the underpayment shall be the excess of the required installment, over the amount, if any, of the installment paid on or before the due date for the installment. The period of the underpayment shall run from the due date for the installment to whichever of the following dates is earlier: (1) The [first] fifteenth day of the [fourth] fifth month of the next succeeding income year; [,] or (2) with respect to any portion of the underpayment, the date on which such portion is paid. For purposes of this subsection, a payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid.
Sec. 12. Subsection (a) of section 12-263m of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017, and applicable to calendar quarters commencing on or after October 1, 2017):
(a) As used in this section: (1) "Eligible dry cleaning establishment" means any place of business engaged in the cleaning of clothing or other fabrics using tetrachlorethylene, Stoddard solvent or other chemicals, [or any place of business that accepts clothing or other fabrics to be cleaned by another establishment using such chemicals,] (2) "gross receipts at retail" means the total amount accruing from dry cleaning services, [at retail,] valued in money, without any deduction for the cost of the materials used, labor or service cost or any other expense, and (3) "eligible applicant" means (A) a business owner or operator of an eligible dry cleaning establishment, or (B) an owner of property that is or that was occupied by an eligible dry cleaning establishment.
Sec. 13. Section 12-264 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):
(a) Each (1) municipality, or department or agency thereof, or district manufacturing, selling or distributing gas to be used for light, heat or power, (2) company the principal business of which is manufacturing, selling or distributing gas or steam to be used for light, heat or power, including each foreign [municipal electric utility, as defined in section 12-59, and given authority to engage in business in this state pursuant to the provisions of section 16-246c] electric company, as defined in section 16-246f, that holds property in this state, and (3) company required to register pursuant to section 16-258a, shall pay a quarterly tax upon gross earnings from such operations in this state. Gross earnings from such operations under subdivisions (1) and (2) of this subsection shall include, as determined by the Commissioner of Revenue Services, (A) all income [classified as operating revenues by the Public Utilities Regulatory Authority] included in operating revenue accounts in the uniform systems of accounts prescribed by [said authority] the Public Utilities Regulatory Authority for operations within the taxable quarter and, with respect to each such company, (B) all income [classified] identified in said uniform systems of accounts as income from merchandising, jobbing and contract work, (C) all revenues identified in said uniform systems of accounts as income from nonutility operations, (D) all revenues [from lease of physical property not devoted to utility operation] identified in said uniform systems of accounts as nonoperating retail income, and (E) receipts from the sale of residuals and other by-products obtained in connection with the production of gas, electricity or steam. Gross earnings from such operations under subdivision (3) of this subsection shall be gross income from the sales of natural gas, provided gross income shall not include income from the sale of natural gas to an existing combined cycle facility comprised of three gas turbines providing electric generation services, as defined in section 16-1, with a total capacity of seven hundred seventy-five megawatts, for use in the production of electricity. Gross earnings of a gas company, as defined in section 16-1, shall not include income earned in a taxable quarter commencing prior to June 30, 2008, from the sale of natural gas or propane as a fuel for a motor vehicle. No deductions shall be allowed from such gross earnings for any commission, rebate or other payment, except a refund resulting from an error or overcharge and those specifically mentioned in section 12-265. Gross earnings of a company, as described in subdivision (2) of this subsection, shall not include income earned in any taxable quarter commencing on or after July 1, 2000, from the sale of steam.
(b) (1) Each such company and municipality, or department or agency thereof, or district manufacturing, selling or distributing gas to be used for light, heat or power 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 and signed by its treasurer or the person performing the duties of treasurer, or by an authorized agent or officer, specifying (A) the name and location of such company or municipal utility, (B) the amount of gross earnings from operations for the quarter ending with the last day of the preceding month, (C) the gross earnings from the sale or rental of appliances using water, steam, gas or electricity and the cost of such appliances sold, cost to be interpreted as net invoice price plus transportation costs of such appliances, (D) the gross earnings from all sales for resale of water, steam, gas and electricity, whether or not the purchasers are public service corporations, municipal utilities, located in the state or subject to the tax imposed by this chapter, (E) the number of miles of water or steam pipes, gas mains or electric wires operated by such company or municipal utility within this state on the first day and on the last day of the calendar year immediately preceding, and (F) the number of miles of water or steam pipes, gas mains or electric wires wherever operated by such company or municipal utility on said dates. Gas pipeline and gas transmission companies [which] that do not manufacture or buy gas in this state for resale in this state shall be subject to the provisions of chapter 208 and shall not be subject to the provisions of this chapter and chapter 212a.
(2) No person, firm, corporation or municipality that is chartered or authorized by this state to transmit or sell gas within a franchise area shall transmit gas for any person that sells gas to be used for light, heat or power to an end user or users located in this state, unless such seller has registered with the Department of Revenue Services for purposes of the tax imposed under this chapter. The provisions of this subdivision shall not apply to the transmission of gas for any seller that is a gas company, as defined in section 16-1, municipal gas utility established under chapter 101 or any other gas utility owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or any public or special act, or a gas pipeline or gas transmission company subject to the provisions of chapter 208.
(3) The Commissioner of Revenue Services may make public the names and addresses of each person that sells gas to be used for light, heat or power to an end user or users located in this state and has registered with the Department of Revenue Services for purposes of the tax imposed under this chapter, and that is not a gas company, as defined in section 16-1, a municipal gas utility established under chapter 101 or any other gas utility owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or any public or special act, or a gas pipeline or gas transmission company subject to the provisions of chapter 208.
(c) (1) Each electric distribution company, as defined in section 16-1, or municipality, or department or agency thereof, or district manufacturing, selling or distributing electricity to be used for light, heat or power, providing electric transmission services, as defined in [said] section 16-1, or electric distribution services, as defined in [said] section 16-1, shall pay a quarterly tax upon its gross earnings in each calendar quarter at the rate of (A) eight and one-half per cent of its gross earnings from providing electric transmission services or electric distribution services allocable to other than residential service, and (B) six and eight-tenths per cent of such gross earnings from providing electric transmission services or electric distribution services allocable to residential service.
(2) For purposes of this subsection, gross earnings from providing electric transmission services or electric distribution services shall include (A) all income classified as income from providing electric transmission services or electric distribution services, [by the Public Utilities Regulatory Authority in the uniform system of accounts prescribed by said authority] as determined by the Commissioner of Revenue Services in consultation with the Public Utilities Regulatory Authority, and (B) the competitive transition assessment collected pursuant to section 16-245g, other than any component of such assessment that constitutes transition property as to which an electric distribution company has no right, title or interest pursuant to subsection (a) of section 16-245h, the systems benefits charge collected pursuant to section 16-245l, and the assessments charged under sections 16-245m and 16-245n. Such gross earnings shall not include income from providing electric transmission services or electric distribution services to a company described in subsection (c) of section 12-265.
(3) Each electric distribution company and municipality, or department or agency thereof, or district manufacturing, selling or distributing electricity to be used for light, heat or power 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 and signed by its treasurer, or the person performing the duties of treasurer, or of an authorized agent or officer, with such other information as the Commissioner of Revenue Services deems necessary.
(d) The tax imposed by this chapter is due and payable to the Commissioner of Revenue Services quarterly on or before the last day of the month next succeeding each calendar quarter.
Sec. 14. Section 12-294 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) If a distributor or dealer removes his or her business from one location to another during the period in which the license is in force, the commissioner shall transfer the license to the new location without an additional fee.
(b) (1) If any distributor or dealer liable for any amount due under this chapter sells out his or her business or stock of goods or quits the business, such distributor's or dealer's successors or assigns shall withhold a sufficient amount of the purchase price to pay the amount due under this chapter from the distributor or dealer until the distributor or dealer provides to such successor or assignee a receipt from the commissioner showing that such amount has been paid or a certificate stating that no amount is due.
(2) If any such successor or assignee fails to withhold the purchase price as required, such successor or assignee shall be personally liable for the payment of the amount required to be withheld by such successor or assignee to the extent of the purchase price, valued in money.
(c) (1) No later than the sixtieth day after the latest of the dates specified in subdivision (2) of this subsection, the commissioner shall either issue the certificate stating that no amount is due or mail notice of the amount that must be paid as a condition of issuing the certificate. Such notice shall be mailed to such successor or assignee at such successor's or assignee's address as it appears on the records of the commissioner.
(2) For purposes of subdivision (1) of this subsection, the latest of the following dates shall apply: (A) The date the commissioner receives a written request from the successor or assignee for a certificate; (B) the date of the sale of the business or stock of goods; or (C) the date the former owner's records are made available for audit.
(d) Failure of the commissioner to mail the notice referred to in subsection (c) of this section shall release the successor or assignee from any further obligation to withhold the purchase price as provided in subsection (b) of this section. The period within which the obligation of the successor or assignee may be enforced shall commence on the date the [person] distributor or dealer sells out his or her business or stock of goods or quits the business or on the date that the assessment against such [person] distributor or dealer becomes final, whichever event occurs later, and shall end three years after such date.
(e) The certificate provided for in subsection (c) of this section may be issued after the payment of all amounts due under this chapter, according to the records of the department as of the date of the certificate, or after the payment of the amounts is secured to the satisfaction of the commissioner.
(f) The obligation of the successor or assignee shall be enforced by serving a notice of successor liability on the successor or assignee. The notice shall be served in the manner prescribed under section 12-309 for service of a notice of assessment, not later than three years after the date the commissioner is notified by the successor or assignee of the purchase of the business or stock of goods. The successor or assignee may protest the assessment in the manner provided in section 12-311. Sixty days after the date on which a notice of assessment is mailed, an assessment shall become final except for any amount as to which the successor or assignee has filed a written protest with the commissioner, as provided in section 12-311.
Sec. 15. Section 12-297 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
The tax imposed under the provisions of section 12-296 shall not apply: [to] (1) To cigarettes sold to any state institution other than a correctional institution for distribution to patients or inmates, or to cigarettes purchased with revolving funds under the jurisdiction of any state institution other than a correctional institution, when the cigarettes purchased are to be consumed by patients or inmates confined at such institution; or (2) to the extent prohibited by federal law, to cigarettes sold to United States veterans' hospitals or to members of the armed forces of the United States through officially recognized agencies, established pursuant to regulations issued by the appropriate branch of the United States Armed Forces, that are physically located at military bases.
Sec. 16. Section 12-330b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) Each distributor or unclassified importer shall obtain a license issued by the commissioner before manufacturing, purchasing, importing, receiving or acquiring any untaxed tobacco products in this state. The commissioner may, in his or her discretion, refuse to issue a license if such commissioner has reasonable ground to believe (1) that the applicant has wilfully made any false statement of substance with respect to such application for license, (2) that the applicant has neglected to pay any taxes due to this state, or (3) that the applicant has been convicted of violating any of the cigarette or other tobacco product tax laws of this or any other state or the cigarette tax laws of the United States or has such a criminal record that the commissioner reasonably believes that such applicant is not a suitable person to be issued a license, provided no refusal shall be rendered under this subdivision except in accordance with the provisions of sections 46a-80 and 46a-81. The fee for a distributor's license shall be two hundred dollars a year. There shall be no fee for an unclassified importer's license. Each distributor's license shall be conspicuously displayed on the premises covered by the license. Notwithstanding the provisions of section 12-15, as amended by this act, the commissioner shall publish on the Internet web site of the Department of Revenue Services a list of every distributor licensed under this chapter. The commissioner shall prescribe the form of application for a distributor's license and for an unclassified importer's license.
(b) (1) If any distributor or unclassified importer liable for any amount due under this chapter sells out his or her business or stock of goods or quits the business, such distributor's or importer's successors or assigns shall withhold a sufficient amount of the purchase price to pay the amount due under this chapter from the distributor or importer until the distributor or importer provides to such successor or assignee a receipt from the commissioner showing that such amount has been paid or a certificate stating that no amount is due.
(2) If any such successor or assignee fails to withhold the purchase price as required, such successor or assignee shall be personally liable for the payment of the amount required to be withheld by such successor or assignee to the extent of the purchase price, valued in money.
(c) (1) Not later than the sixtieth day after the latest of the dates specified in subdivision (2) of this subsection, the commissioner shall either issue the certificate stating that no amount is due or mail notice of the amount that must be paid as a condition of issuing the certificate. Such notice shall be mailed to such successor or assignee at such successor's or assignee's address as it appears on the records of the commissioner.
(2) For purposes of subdivision (1) of this subsection, the latest of the following dates shall apply: (A) The date the commissioner receives a written request from the successor or assignee for a certificate; (B) the date of the sale of the business or stock of goods; or (C) the date the former owner's records are made available for audit.
(d) Failure of the commissioner to mail the notice referred to in subsection (c) of this section shall release the successor or assignee from any further obligation to withhold the purchase price as provided in subsection (b) of this section. The period within which the obligation of the successor or assignee may be enforced shall commence on the date the distributor or importer sells out his or her business or stock of goods or quits the business or on the date that the assessment against such distributor or importer becomes final, whichever event occurs later, and shall end three years after such date.
(e) The certificate provided for in subsection (c) of this section may be issued after the payment of all amounts due under this chapter, according to the records of the department as of the date of the certificate, or after the payment of the amounts is secured to the satisfaction of the commissioner.
(f) The obligation of the successor or assignee shall be enforced by serving a notice of successor liability on the successor or assignee. The notice shall be served in the manner prescribed under section 12-330i, as amended by this act, for service of a notice of assessment, not later than three years after the date the commissioner is notified by the successor or assignee of the purchase of the business or stock of goods. The successor or assignee may protest the assessment by requesting a hearing in accordance with the provisions of section 12-330l. Sixty days after the date on which a notice of assessment is mailed, an assessment shall become final except for any amount as to which the successor or assignee has requested a hearing with the commissioner in accordance with the provisions of section 12-330l.
Sec. 17. Section 12-330i of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017):
(a) (1) Each distributor and each unclassified importer shall keep complete and accurate records of all tobacco products manufactured, produced, purchased and sold. Such records shall be of such kind and in such form as the commissioner may prescribe and shall be [safely preserved for three years in such manner as to ensure permanency and accessibility] maintained for three years on the premises where such tobacco products are possessed, stored or sold and shall be available at all times for inspection by the commissioner and [his] the commissioner's authorized agents. The commissioner and [his] the commissioner's authorized agents may examine the books, papers and records of any distributor or unclassified importer in this state for the purpose of determining whether the tax imposed by this chapter has been fully paid, and may investigate and examine the stock of tobacco products in or upon any premises where such tobacco products are possessed, stored or sold for the purpose of determining whether the provisions of this chapter are being obeyed. If, after an examination of the invoices, books and records of a licensed distributor or an unclassified importer, or if, from any other information obtained by [him or his] the commissioner or the commissioner's authorized agents, the commissioner determines that the report of any licensed distributor or licensed unclassified importer is incorrect, [he] the commissioner shall [thereupon] assess the deficiency in tax. Such amount shall bear interest at the rate of one per cent per month or fraction thereof from the date when the original tax was due and payable.
(2) 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 chapter or regulations promulgated 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. 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 chapter or regulations promulgated thereunder, there shall be imposed a penalty equal to twenty-five per cent of the amount of such deficiency assessment.
(3) No taxpayer shall be subject to more than one penalty under this subsection in relation to the same tax period. The amount of any tax, penalty or interest due and unpaid under the provisions of this chapter may be collected under the provisions of section 12-35. The warrant [therein] provided for under section 12-35 shall be signed by the commissioner or [his] the commissioner's authorized agent. The amount of any such tax, penalty and interest shall be a lien, from the last day of the month next preceding the due date of such tax until discharged by payment, against all real estate of the taxpayer within the state, and a certificate of such lien signed by the commissioner may be filed for record in the office of the clerk of any town in which such real estate is situated, provided no such lien shall be effective as against any bona fide purchaser or qualified encumbrancer of any interest in any such property. When any tax with respect to which a lien has been recorded under the provisions of this section has been satisfied, the commissioner, upon request of any interested party, shall issue a certificate discharging such lien, which certificate shall be recorded in the same office in which the lien is 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.
(b) Except in the case of a wilfully false or fraudulent return with intent to evade the tax, no assessment of additional tax with respect to any return shall be made after the expiration of more than three years from the date of the filing of such return or from the original due date of such return, whichever is later. If no return has been filed as provided in this chapter the commissioner may make such return at any time thereafter, according to the best information obtainable and according to the form prescribed. [To] There shall be added to the tax imposed upon the basis of such return [, there shall be added] an amount equal to ten per cent of such tax, or fifty dollars, whichever is greater. The tax shall bear interest at the rate of one per cent per month or fraction thereof from the due date of such tax to the date of payment. If, prior to the expiration of the period prescribed in this section for the assessment of additional tax, 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. Any such extended period may be further extended by consent in writing before the expiration of such extended period.
(c) If, upon request by the commissioner or the commissioner's authorized agent, a distributor or an unclassified importer fails to immediately produce or immediately provide electronic access to the records required under subsection (a) of this section, such distributor or importer shall be subject to a civil penalty of one thousand dollars per day until the date such records are produced or electronic access is provided to the commissioner. Subject to the provisions of section 12-3a, the commissioner may waive all or part of the penalty provided under this subsection when it is proven to the commissioner's satisfaction that the failure to immediately produce or immediately provide electronic access to such records was due to reasonable cause.
Sec. 18. Section 12-408c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) (1) Whenever any person carrying on a trade, occupation, business or profession in this state purchases from a retailer tangible personal property for use or consumption in carrying on such trade, occupation, business or profession, (A) for purposes of subsequently transporting such property outside this state by common or contract carrier for use or consumption thereafter solely outside this state, or (B) for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, other tangible personal property to be transported outside this state by common or contract carrier [,] and thereafter used or consumed solely outside this state, such person may claim a refund of the taxes imposed by this chapter on the purchase of such property. A claim for refund of the taxes imposed by this chapter on all such purchases of property during the calendar year may be filed, along with substantiating documentation, annually with the Commissioner of Revenue Services on a form prepared for such purpose by the commissioner not later than the first day of the fourth month next succeeding the end of the calendar year for which such claim is filed.
(2) The commissioner shall make a determination as to any such claim not later than ninety days after receipt thereof and, if approved, transmit such approval to the State Comptroller who shall draw his or her order on the State Treasurer for payment of such refund. If the commissioner determines that such claim is not valid, either in whole or in part, notice of the proposed disallowance shall be mailed to the claimant and such 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 claimant. Sixty days after the date on which it is mailed, a notice of proposed disallowance shall constitute a final disallowance except for such amounts as to which the claimant has filed, as provided in subdivision (3) of this subsection, a written protest with the commissioner.
(3) [Within] Not later than sixty days after the mailing of a proposed disallowance, the claimant may file with the commissioner a written protest against the proposed disallowance in which the claimant shall set forth the grounds on which the protest is based. If a protest is filed, the commissioner shall reconsider the proposed disallowance and, if the claimant has so requested, may grant or deny the claimant or the claimant's authorized representatives an oral hearing.
(4) Notice of the commissioner's determination shall be mailed to the claimant and such 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 claimant.
(5) The action of the commissioner on the claimant's protest shall be final upon the expiration of one month from the date on which [he] the commissioner mails notice of his action to the claimant unless, within such period, the claimant seeks judicial review of the commissioner's determination pursuant to section 12-422.
(6) The commissioner may, at any time within three years after the date of receipt of such claim for refund, examine such claim and supporting documentation and, [in the case of] if any error is disclosed by such examination, mail a notice of assessment in the manner provided in section 12-415 as if a return had been filed with which the commissioner was not satisfied. In such event, the claimant may petition for reassessment in the time and manner provided in section 12-418. The order or decision of the commissioner upon the petition for reassessment shall be subject to judicial review in the time and manner provided in section 12-422.
(b) (1) Whenever any holder of a permit issued under this subsection purchases from a retailer tangible personal property for use or consumption in carrying on the trade, occupation, business or profession of such person, (A) for the purpose of subsequently transporting it outside this state for use or consumption thereafter solely outside this state, or (B) for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, other tangible personal property to be transported outside this state and thereafter used or consumed solely outside this state, such holder may purchase such property without payment of the taxes otherwise imposed by this chapter on the purchase of such property.
(2) The Commissioner of Revenue Services may [pursuant to regulations adopted in accordance with chapter 54] issue a permit to any person carrying on a trade, occupation, business or profession in this state who purchases from a retailer tangible personal property for use or consumption in carrying on such trade, occupation, business or profession, (A) for the purpose of subsequently transporting it outside this state for use or consumption thereafter solely outside this state, or (B) for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, other tangible personal property to be transported outside this state and thereafter used or consumed solely outside this state, if the commissioner determines that the person is carrying on a trade, occupation, business or profession in this state and is filing the returns required to be filed by such person under section 12-414 and that the enforcement of the provisions of this chapter shall not be adversely affected.
(3) The permit issued under subdivision (2) of this subsection shall authorize the holder to the extent and in the manner specified [in the regulations adopted under said subdivision (2),] by the commissioner to purchase tangible personal property from a retailer on which the taxes imposed by this chapter shall not be payable. The [regulations adopted under this subsection] commissioner shall require (A) a declaration, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, stating that such property is purchased for a purpose permitted by this subsection, (B) a report to be submitted with, and to be a part of, each return that is required to be filed under section 12-414 by the holder of such permit, detailing the persons from whom such tangible personal property was purchased during the period covered by such return, the quantities in which and the dates on which such property was purchased and any other information deemed necessary by the commissioner, and (C) periodic registration, at least annually, for the purpose of the issuance of a permit, [including] and the commissioner shall establish procedures relating to the application for the permit and notice concerning the penalty for misuse of the permit.
Sec. 19. Subdivision (1) of section 12-411 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(1) (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchased from any retailer for storage, acceptance, consumption or any other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either within or without this state, for storage, acceptance, consumption or any other use by such person in this state, to be measured by the sales price of materials, at the rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate of six and thirty-five-hundredths per cent;
(B) At a rate of fifteen per cent of the rent paid for occupancy of any room or rooms in a hotel or lodging house for the first period of not more than thirty consecutive calendar days;
(C) With respect to the storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse of such individual at a rate of four and one-half per cent of the sales price of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;
(D) (i) With respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;
(ii) With respect to the storage, acceptance or other use of a vessel in this state, such storage, acceptance or other use shall be exempt from such tax, provided such vessel is docked in this state for sixty or fewer days in a calendar year;
(E) (i) With respect to the acceptance or receipt in this state of computer and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent of such services, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent of such services, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent of such services, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent of such services, on and after July 1, 2001, at the rate of one per cent of such services, and (ii) with respect to the acceptance or receipt in this state of Internet access services, on or after July 1, 2001, such services shall be exempt from tax;
(F) With respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;
(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;
(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price. For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles; [and]
(I) For calendar quarters ending on or after September 30, 2011, except for calendar quarters ending on or after July 1, 2016, but prior to July 1, 2017, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;
(J) (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 such months on or after July 1, 2016;
(ii) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said municipal revenue sharing account seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;
(K) (i) Notwithstanding the provisions of this section, for calendar months commencing on or after December 1, 2015, but prior to October 1, 2016, the commissioner shall deposit into the Special Transportation Fund, established pursuant to section 13b-68, four and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;
(ii) For calendar months commencing on or after October 1, 2016, but prior to July 1, 2017, the commissioner shall deposit into said Special Transportation Fund six and three-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision; and
(iii) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said Special Transportation Fund seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision.
Sec. 20. (Effective from passage) Notwithstanding the provisions of subparagraph (K) of subdivision (1) of section 12-411 of the general statutes, as amended by this act, for the fiscal year ending June 30, 2017, the Commissioner of Revenue Services shall reduce each monthly deposit into the Special Transportation Fund established pursuant to section 13b-68 of the general statutes by four million one hundred sixty-six thousand six hundred sixty-seven dollars.
Sec. 21. Section 12-580 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
This chapter shall be administered by the tax collector of the municipality. All forms necessary or convenient for the enforcement of this chapter shall be prescribed by the Commissioner of Revenue Services and shall be printed and furnished by [said] such tax collector. The Commissioner of Revenue Services [shall] may adopt and enforce rules and regulations relating to the administration and enforcement of this chapter.
Sec. 22. Subdivision (6) of subsection (b) of section 12-711 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(6) For purposes of subparagraph (A) of subdivision (1) of this subsection, "real property in this state" includes an interest in an entity, and "entity" means a partnership, limited liability company or S corporation that owns, directly or indirectly, real property that is located within this state and has a fair market value that equals or exceeds fifty per cent of all the assets of the entity on the date of sale or disposition by a nonresident natural person of such person's interest in the entity. Only those assets that the entity owned, directly or indirectly, for at least two years prior to the date of the sale or disposition of the person's interest in the entity shall be used in determining the fair market value of all the assets of the entity on the date of such sale or disposition. The gain or loss derived from Connecticut sources from such person's sale or disposition of an interest in such entity is the total gain or loss for federal income tax purposes from such sale or disposition multiplied by a fraction, the numerator of which is the fair market value of all real property located in this state owned, directly or indirectly, by the entity on the date of such sale or disposition, and the denominator of which is the fair market value of all the assets of the entity on the date of such sale or disposition.
Sec. 23. Subsection (a) of section 12-719 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) The income tax return required under this chapter shall be filed on or before the fifteenth day of the fourth month following the close of the taxpayer's taxable year. A person required to make and file a return shall, without assessment, notice or demand, pay any tax due thereon to the Commissioner of Revenue Services on or before the date fixed for filing such return, determined without regard to any extension of time for filing the return. [The commissioner shall prescribe by regulation the place for filing any return, declaration, statement or other document required pursuant to this chapter and for the payment of any tax.]
Sec. 24. Subsection (a) of section 12-727 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):
(a) [The Commissioner of Revenue Services may adopt regulations requiring returns] Returns of information [to] shall be made and filed on or before the last day of [February] January each year by any person making payment or crediting in [any] the previous calendar year amounts of six hundred dollars or more, or ten dollars or more in the case of interest or dividends, to any person who may be subject to the tax imposed under this chapter. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers [,] and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of dividends, interest, rents, salaries, wages, premiums, annuities, compensations, remunerations, pensions, gambling winnings, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. A duplicate of the statement as to tax withheld on wages, required to be furnished by an employer to an employee, shall constitute the return of information required to be made under this section with respect to such wages. [The commissioner may adopt regulations providing standards for determining which returns must be filed on magnetic media or in other machine-readable form.]
Sec. 25. (NEW) (Effective July 1, 2017, and applicable to waiver requests received on or after July 1, 2017) To the extent that the Commissioner of Revenue Services is authorized to waive all or part of a penalty provided under title 12 of the general statutes, the commissioner shall not consider any waiver request received more than one year from the date a notice of such penalty was first sent to the person on whom the penalty was imposed. For any penalty that is reported by a taxpayer on a return filed by such taxpayer in accordance with title 12 of the general statutes, the filing date of such return shall be considered the date on which the person was notified of such penalty. Nothing in this section shall extend the date by which a protest or appeal must be filed in connection with a determination made by the commissioner.
Sec. 26. Subsection (c) of section 16-331cc of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(c) (1) The account shall be supported solely through a tax equal to one-half of one per cent of the gross earnings from rendering community antenna television service, video programming service by satellite and certified competitive video service in this state for quarterly periods beginning on or after October 1, 2007, and before October 1, 2009, and a tax equal to one-quarter of one per cent of the gross earnings from rendering community antenna television service, video programming service by satellite and certified competitive video service in this state for quarterly periods beginning on or after October 1, 2009, by each person operating a community antenna television system under this chapter or a certified competitive video service pursuant to sections 16-331e to 16-331p, inclusive, and each person operating a business that provides one-way transmission to subscribers of video programming by satellite. Such tax for a quarterly period shall be remitted to the Department of Revenue Services, on or before the last day of the month next succeeding the quarterly period, on a form prescribed by the Commissioner of Revenue Services, which form shall be signed by the person performing the duties of treasurer or an authorized agent or officer. For the purposes of this section, gross earnings in this state shall be determined in a manner consistent with chapter 211.
(2) The amount of any tax due and unpaid under this section shall be subject to the penalties and interest established in [section] sections 12-268d [and the] and 12-268e, and the taxpayer from which such tax is due and unpaid shall be subject to the administrative provisions of sections 12-268f, 12-268g, 12-268i and 12-268l. The amount of any tax, penalty or interest due and unpaid under this section may be collected under the provisions of section 12-35.
Sec. 27. Subsection (a) of section 53-394 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) "Racketeering activity" means to commit, to attempt to commit, to conspire to commit, or to intentionally aid, solicit, coerce or intimidate another person to commit any crime which, at the time of its commission, was a felony chargeable by indictment or information under the following provisions of the general statutes then applicable: (1) Sections 53-278a to 53-278f, inclusive, relating to gambling activity; (2) chapter 949a, relating to extortionate credit transactions; (3) chapter 952, part IV, relating to homicide; (4) chapter 952, part V, relating to assault, except assault with a motor vehicle as defined in section 53a-60d; (5) sections 53a-85 to 53a-88, inclusive, relating to prostitution; (6) chapter 952, part VII, relating to kidnapping; (7) chapter 952, part VIII, relating to burglary, arson and related offenses; (8) chapter 952, part IX, relating to larceny, robbery and related offenses; (9) chapter 952, part X, relating to forgery and related offenses; (10) chapter 952, part XI, relating to bribery and related offenses; (11) chapter 952, part XX, relating to obscenity and related offenses; (12) chapter 952, part XIX, relating to coercion; (13) sections 53-202, 53-206, 53a-211 and 53a-212, relating to weapons and firearms; (14) section 53-80a, relating to the manufacture of bombs; (15) sections 36b-2 to 36b-34, inclusive, relating to securities fraud and related offenses; (16) sections 21a-277, 21a-278 and 21a-279, relating to drugs; (17) section 22a-131a, relating to hazardous waste; (18) chapter 952, part XXIII, relating to money laundering; (19) section 53a-192a, relating to trafficking in persons; or (20) subdivision (1) of subsection (b) of section 12-304 or section 12-308, relating to cigarettes, or subsection (c) of section 12-330f or subsection (b) of section 12-330j, relating to tobacco products.
Sec. 28. (NEW) (Effective from passage) (a) For purposes of more timely and accurate collection and remittance of sales tax, the Commissioner of Revenue Services may require a taxpayer to enter into an agreement with an electronic payment processing company to provide automated sales tax collection and remittance, whereby such company (1) segregates an amount equal to the sales tax, if any, for each sales transaction payment processed by such company, and (2) remits such amount automatically to the commissioner within twenty-four hours after such sales transaction. The commissioner shall publish annually a list of companies that are eligible to provide automated sales tax collection and remittance and are approved by the commissioner.
(b) The commissioner may authorize a company approved under subsection (a) of this section to retain a portion of each sales tax amount to be remitted, not to exceed the actual cost charged by such company to provide automated sales tax collection and remittance services under this section.
Sec. 29. (NEW) (Effective July 1, 2017) There is established an account to be known as the "mental health community investment 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 of Mental Health and Addiction Services, in consultation with nonprofit mental health organizations, for the purposes of improving services and programs in the state, including, but not limited to, residential services, job training and placement services, educational programs and support groups, designed to support individuals diagnosed with mental health conditions.
Sec. 30. Section 12-743 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) Any taxpayer filing a return under this chapter may contribute any part of a refund under this chapter to (1) the organ transplant account established pursuant to section 17b-288, (2) the AIDS research education account established pursuant to section 19a-32a, (3) the endangered species, natural area preserves and watchable wildlife account established pursuant to section 22a-27l, (4) the breast cancer research and education account established pursuant to section 19a-32b, (5) the safety net services account established pursuant to section 17b-112f, [or] (6) an individual savings plan established under the Connecticut Higher Education Trust established pursuant to sections 3-22f to 3-22p, inclusive, or to the CHET Baby Scholars fund established pursuant to section 3-22u, or (7) the mental health community investment account established pursuant to section 29 of this act. Such contribution shall be made by indicating on the tax return, in a manner provided for by the Commissioner of Revenue Services pursuant to subsection (b) of this section, the amount to be contributed to the account.
(b) (1) The Commissioner of Revenue Services shall revise the tax return form to implement the provisions of subsection (a) of this section, which form shall include spaces on the return in which taxpayers may indicate their intention to make a contribution, in a whole dollar amount, in accordance with this section. The commissioner shall include in the instructions accompanying the tax return a description of the purposes for which the [organ transplant account, the AIDS research education account, the endangered species, natural area preserves and watchable wildlife account, the breast cancer research and education account, the safety net services account and the Connecticut Higher Education Trust] accounts and funds set forth in subsection (a) of this section were created.
(2) For purposes of facilitating the registration of a taxpayer as an organ donor, the commissioner shall include information in the instructions accompanying the tax return that (A) indicates the manner by which a taxpayer may contact an organ donor registry organization, or (B) provides electronic links to appropriate organ donor registry organizations for such purpose.
(3) For purposes of facilitating the participation of a taxpayer in the Connecticut Higher Education Trust and the CHET Baby Scholars fund, the commissioner shall include spaces on the return, as provided in subdivision (1) of this subsection as follows: (A) There shall be a space indicating a taxpayer's intention to contribute any part of a refund to someone known to the taxpayer who is a designated beneficiary, as defined in section 3-22f, including a space for the taxpayer to provide the name and Social Security number of such designated beneficiary; and (B) there shall be a space indicating a taxpayer's intention to contribute any part of a refund to the CHET Baby Scholars fund, including a description of such fund and a statement that such contribution shall not benefit a specific child. The commissioner shall include information in the instructions accompanying the tax return that indicates the manner by which the taxpayer may contact the administrator of the Connecticut Higher Education Trust and the CHET Baby Scholars fund, or provides electronic links to such administrator for such purpose.
(c) A designated contribution of all or part of any refund shall be irrevocable upon the filing of the return and shall be made in the full amount designated if the refund found due the taxpayer upon the initial processing of the return, and after any deductions required by this chapter, is greater than or equal to the designated contribution. If the refund due, as determined upon initial processing, and after any deductions required by this chapter, is less than the designated contribution, the contribution shall be made in the full amount of the refund. The Commissioner of Revenue Services shall subtract the amount of any contribution of all or part of any refund from the amount of the refund initially found due the taxpayer and shall certify the difference to the Secretary of the Office of Policy and Management and the Treasurer for payment to the taxpayer in accordance with this chapter. For the purposes of any subsequent determination of the taxpayer's net tax payment, such contribution shall be considered a part of the refund paid to the taxpayer.
(d) Except for any funds collected for purposes of subdivision (6) of subsection (a) of this section, the Commissioner of Revenue Services, after notification of and approval by the Secretary of the Office of Policy and Management, may deduct and retain from the remaining funds so collected an amount equal to the costs of implementing this section and sections 17b-288, 19a-32a, 22a-27l, 19a-32b and 17b-112f but not to exceed seven and one-half per cent of the funds contributed in any fiscal year and in no event shall exceed the total cost of implementation of said sections.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2017 New section
Sec. 2 October 1, 2018 New section
Sec. 3 October 1, 2018 New section
Sec. 4 October 1, 2018 New section
Sec. 5 from passage 12-7a(b)
Sec. 6 from passage 12-15(b)
Sec. 7 from passage 12-39cc
Sec. 8 from passage 12-80b
Sec. 9 from passage 12-213(a)(28)
Sec. 10 from passage, and applicable to income years commencing on or after January 1, 2017 12-222(b)
Sec. 11 from passage, and applicable to income years commencing on or after January 1, 2017 12-242d(d)
Sec. 12 October 1, 2017, and applicable to calendar quarters commencing on or after October 1, 2017 12-263m(a)
Sec. 13 October 1, 2017 12-264
Sec. 14 July 1, 2017 12-294
Sec. 15 from passage 12-297
Sec. 16 July 1, 2017 12-330b
Sec. 17 October 1, 2017 12-330i
Sec. 18 from passage 12-408c
Sec. 19 from passage 12-411(1)
Sec. 20 from passage New section
Sec. 21 from passage 12-580
Sec. 22 from passage 12-711(b)(6)
Sec. 23 from passage 12-719(a)
Sec. 24 from passage and applicable to taxable years commencing on or after January 1, 2017 12-727(a)
Sec. 25 July 1, 2017, and applicable to waiver requests received on or after July 1, 2017 New section
Sec. 26 from passage 16-331cc(c)
Sec. 27 July 1, 2017 53-394(a)
Sec. 28 from passage New section
Sec. 29 July 1, 2017 New section
Sec. 30 July 1, 2017 12-743
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2017
New section
Sec. 2
October 1, 2018
New section
Sec. 3
October 1, 2018
New section
Sec. 4
October 1, 2018
New section
Sec. 5
from passage
12-7a(b)
Sec. 6
from passage
12-15(b)
Sec. 7
from passage
12-39cc
Sec. 8
from passage
12-80b
Sec. 9
from passage
12-213(a)(28)
Sec. 10
from passage, and applicable to income years commencing on or after January 1, 2017
12-222(b)
Sec. 11
from passage, and applicable to income years commencing on or after January 1, 2017
12-242d(d)
Sec. 12
October 1, 2017, and applicable to calendar quarters commencing on or after October 1, 2017
12-263m(a)
Sec. 13
October 1, 2017
12-264
Sec. 14
July 1, 2017
12-294
Sec. 15
from passage
12-297
Sec. 16
July 1, 2017
12-330b
Sec. 17
October 1, 2017
12-330i
Sec. 18
from passage
12-408c
Sec. 19
from passage
12-411(1)
Sec. 20
from passage
New section
Sec. 21
from passage
12-580
Sec. 22
from passage
12-711(b)(6)
Sec. 23
from passage
12-719(a)
Sec. 24
from passage and applicable to taxable years commencing on or after January 1, 2017
12-727(a)
Sec. 25
July 1, 2017, and applicable to waiver requests received on or after July 1, 2017
New section
Sec. 26
from passage
16-331cc(c)
Sec. 27
July 1, 2017
53-394(a)
Sec. 28
from passage
New section
Sec. 29
July 1, 2017
New section
Sec. 30
July 1, 2017
12-743
FIN Joint Favorable Subst.
FIN
Joint Favorable Subst.