Connecticut House Bill HB06652

Connecticut 2019 Regular Session

• Introduced: 1/29/19
• Refer: 1/29/19

Caption

An Act Concerning Personal Income Tax Filing Extensions For Certain Federal Employees In The State.

Impact

If enacted, HB 6652 would amend state tax laws to accommodate federal workers during government shutdowns. By allowing tax filing extensions and waiving penalties, the bill aims to mitigate some of the economic burdens faced by federal employees during these challenging times. This change could notably impact the financial stability of these workers, who may otherwise struggle to meet their tax obligations while facing unpaid work periods. The implications entail a more compassionate approach within the state tax framework toward federal employees, acknowledging the unique circumstances they endure during federal government recessions.

Summary

House Bill 6652 aims to provide relief to federal employees in Connecticut who are impacted by government shutdowns. Specifically, the bill allows these individuals, who may be furloughed or required to work without pay, to file personal income tax extensions without the requirement of paying estimated state taxes owed. Furthermore, the bill stipulates that these employees will be exempt from penalties and interest that would typically accrue on any personal income tax owed for the year in which the extension is filed. This legislative measure seeks to alleviate financial stress for those caught in the uncertainties of federal funding disruptions.

Contention

While the intentions behind HB 6652 are largely beneficial, potential points of contention may arise regarding the fiscal impact on state revenue. Critics might argue that waiving penalties and allowing payment extensions could reduce state tax collection efficacy, especially during times of budget constraints. Ensuring that provisions are in place to minimize any adverse effects on the state's financial health while supporting affected workers will be crucial. Discussions around accountability, the scope of who qualifies under this bill, and its operational mechanics may also surface as the bill moves through legislative scrutiny.