Connecticut House Bill HB07177 Introduced / Bill

                        
 
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General Assembly  Raised Bill No. 7177  
January Session, 2019  
LCO No. 4429 
 
 
Referred to Committee on INSURANCE AND REAL ESTATE  
 
 
Introduced by:  
(INS)  
 
 
 
 
AN ACT CONCERNING SH ORT-TERM RENTAL PROPERTIES. 
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. (NEW) (Effective July 1, 2019) (a) For the purposes of this 1 
section and sections 2 to 5, inclusive, of this act: 2 
(1) "Applicant" means a person who files an application with the 3 
commissioner pursuant to section 2 of this act; 4 
(2) "Commissioner" means the Commissioner of Consumer 5 
Protection; 6 
(3) "Dwelling unit" has the same meaning as provided in section 7 
47a-1 of the general statutes; 8 
(4) "Guest" means any natural person, other than the owner, lessee, 9 
lessor, sublessee or sublessor of a short-term rental property, who 10 
occupies a short-term rental property pursuant to a short-term rental 11 
transaction; 12 
(5) "Short-term rental operator" means the owner, lessee or 13  Raised Bill No.  7177 
 
 
 
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sublessee of a short-term rental property who offers the short-term 14 
rental property for occupancy by a guest pursuant to a short-term 15 
rental transaction; 16 
(6) "Short-term rental platform" means any platform, including, but 17 
not limited to, an Internet web site, that (A) allows a short-term rental 18 
operator to offer a dwelling unit, or any portion thereof, for occupancy 19 
as a short-term rental property, (B) allows a potential guest to arrange 20 
payment for occupancy of a short-term rental property, whether such 21 
guest pays directly to a short-term rental operator or through the 22 
platform, and (C) allows the platform operator to derive revenues from 23 
providing or maintaining the services described in this subdivision for 24 
a short-term rental property; 25 
(7) "Short-term rental property" means a dwelling unit, or any 26 
portion thereof, in this state that is (A) the subject of a short-term rental 27 
transaction, and (B) not a hotel, lodging house or bed and breakfast 28 
establishment; and 29 
(8) "Short-term rental transaction" means a transaction in which a 30 
short-term rental operator offers a short-term rental property for 31 
occupancy by a guest through a short-term rental platform for a period 32 
of thirty consecutive calendar days or less. 33 
Sec. 2. (NEW) (Effective July 1, 2019) (a) (1) Each short-term rental 34 
operator or prospective short-term rental operator shall apply for a 35 
license from the commissioner for each dwelling unit that such person 36 
intends to operate as a short-term rental property on or after January 1, 37 
2020. Each application for a license, or renewal of a license, pursuant to 38 
this subsection shall be made on forms provided by the commissioner. 39 
The commissioner shall require, as a precondition to issuing or 40 
renewing a license pursuant to this subsection, that the applicant 41 
submit to the commissioner, in a form and manner prescribed by the 42 
commissioner, proof that such applicant: 43 
(A) Maintains a property and casualty insurance policy that 44 
contains the minimum provisions prescribed by the Insurance 45  Raised Bill No.  7177 
 
 
 
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Commissioner pursuant to section 6 of this act; 46 
(B) Notified each owner, lessor and sublessor, as applicable, of the 47 
dwelling unit that is the subject of such application and all owners, 48 
lessors, lessees, sublessors and sublessees of abutting and adjacent 49 
dwelling units that such applicant has filed an application with the 50 
commissioner pursuant to this subsection; and 51 
(C) In the case of an application for renewal of a license under this 52 
subsection: 53 
(i) Maintained the insurance coverage described in subparagraph 54 
(A) of this subdivision during the two years immediately preceding; 55 
(ii) Paid any and all sales and use taxes due and payable to this 56 
state, and any and all taxes due and payable to a municipality 57 
pursuant to section 7 of this act, during the two years immediately 58 
preceding;  59 
(iii) Provided all notices required by section 3 of this act during the 60 
two years immediately preceding; and 61 
(iv) Complied with the provisions of section 4 of this act during the 62 
two years immediately preceding. 63 
(2) Each license issued by the commissioner pursuant to this 64 
subsection shall expire two years after its issuance. The commissioner 65 
may refuse to issue or renew, or may suspend or revoke, any license 66 
required by this section if the applicant for such license engages in any 67 
conduct prohibited by this section. 68 
(3) Not later than fifteen days after the commissioner issues or 69 
renews a license pursuant to this subsection, the commissioner shall 70 
send a notice, in a form and manner prescribed by the commissioner, 71 
to the Commissioner of Revenue Services and, if the municipality in 72 
which the licensed short-term rental property is located levies a tax 73 
pursuant to section 7 of this act, to the municipality in which such 74 
short-term rental property is located disclosing: 75  Raised Bill No.  7177 
 
 
 
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(A) The name of the applicant for such license; and 76 
(B) The address of the licensed short-term rental property. 77 
(b) If the commissioner refuses to issue or renew, or suspends or 78 
revokes, a license pursuant to subsection (a) of this section, the 79 
commissioner shall notify the applicant or short-term rental operator, 80 
as applicable, of such refusal and of such applicant's or short-term 81 
rental operator's right to request a hearing not later than ten days after 82 
the date on which the commissioner issued such notice to such 83 
applicant. If the applicant or short-term rental operator requests a 84 
hearing within such ten-day period, the commissioner shall give notice 85 
to such applicant or short-term rental operator of the grounds for the 86 
commissioner's refusal, suspension or revocation and conduct a 87 
hearing concerning such refusal, suspension or revocation in 88 
accordance with the provisions of chapter 54 of the general statutes 89 
concerning contested cases. 90 
(c) The Attorney General, at the request of the commissioner, is 91 
authorized to apply in the name of this state to the Superior Court for 92 
an order temporarily or permanently restraining and enjoining any 93 
short-term rental operator from operating in violation of any provision 94 
of sections 1 to 5, inclusive, of this act. 95 
Sec. 3. (NEW) (Effective July 1, 2019) Not later than the first day that 96 
one or more guests occupy a short-term rental property pursuant to a 97 
short-term rental transaction, the short-term rental operator who is a 98 
party to such transaction shall send a notice, in a form and manner 99 
prescribed by the commissioner, to the owner, lessor or sublessor of 100 
such short-term rental property, as applicable, and all owners, lessors, 101 
lessees, sublessors and sublessees of abutting and adjacent dwelling 102 
units disclosing: 103 
(1) The name of such short-term rental operator; 104 
(2) The address of such short-term rental property; 105  Raised Bill No.  7177 
 
 
 
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(3) That such short-term rental operator entered into a short-term 106 
rental transaction with one or more guests; 107 
(4) The name of each guest occupying such short-term rental 108 
property pursuant to such short-term rental transaction; and 109 
(5) The first and last dates on which such guest or guests are entitled 110 
to occupy such short-term rental property pursuant to such short-term 111 
rental transaction. 112 
Sec. 4. (NEW) (Effective July 1, 2019) No short-term rental property 113 
shall be occupied by guests for more than ninety days during a 114 
calendar year, unless the short-term rental operator resides in such 115 
short-term rental property at all times when guests occupy such short-116 
term rental property during the calendar year. 117 
Sec. 5. (NEW) (Effective July 1, 2019) The commissioner may adopt 118 
regulations, in accordance with the provisions of chapter 54 of the 119 
general statutes, to implement the provisions of sections 1 to 4, 120 
inclusive, of this act. 121 
Sec. 6. (NEW) (Effective July 1, 2019) The Insurance Commissioner 122 
shall adopt regulations, in accordance with the provisions of chapter 123 
54 of the general statutes, prescribing the minimum provisions to be 124 
included in all property and casualty policies issued on or after the 125 
effective date of such regulations covering short-term rental properties, 126 
as such term is defined in section 1 of this act. Such policies shall 127 
include liability coverage of not less than one million dollars against 128 
claims for bodily injury or death and property damage. 129 
Sec. 7. (NEW) (Effective July 1, 2019) Any municipality may, by vote 130 
of its legislative body or, in a municipality where the legislative body 131 
is a town meeting, by vote of the board of selectmen, levy a tax on each 132 
short-term rental operator operating one or more short-term rental 133 
properties, as both terms are defined in section 1 of this act, within 134 
such municipality, provided such tax shall not exceed an amount that 135 
is equal to six per cent of such short-term rental operator's income 136  Raised Bill No.  7177 
 
 
 
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from all short-term rental transactions, as defined in section 1 of this 137 
act, concerning such short-term rental properties during the tax year 138 
for which such tax is levied. 139 
Sec. 8. Section 12-407 of the general statutes is repealed and the 140 
following is substituted in lieu thereof (Effective July 1, 2019, and 141 
applicable to sales occurring on or after July 1, 2019): 142 
(a) Whenever used in this chapter: 143 
(1) "Person" means and includes any individual, firm, 144 
copartnership, joint venture, association, association of persons 145 
however formed, social club, fraternal organization, corporation, 146 
limited liability company, foreign municipal electric utility as defined 147 
in section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the 148 
United States, this state or any political subdivision thereof or any 149 
group or combination acting as a unit, and any other individual or 150 
officer acting under the authority of any court in this state. 151 
(2) "Sale" and "selling" mean and include: 152 
(A) Any transfer of title, exchange or barter, conditional or 153 
otherwise, in any manner or by any means whatsoever, of tangible 154 
personal property for a consideration; 155 
(B) Any withdrawal, except a withdrawal pursuant to a transaction 156 
in foreign or interstate commerce, of tangible personal property from 157 
the place where it is located for delivery to a point in this state for the 158 
purpose of the transfer of title, exchange or barter, conditional or 159 
otherwise, in any manner or by any means whatsoever, of the property 160 
for a consideration; 161 
(C) The producing, fabricating, processing, printing or imprinting of 162 
tangible personal property for a consideration for consumers who 163 
furnish either directly or indirectly the materials used in the 164 
producing, fabricating, processing, printing or imprinting, including, 165 
but not limited to, sign construction, photofinishing, duplicating and 166  Raised Bill No.  7177 
 
 
 
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photocopying; 167 
(D) The furnishing and distributing of tangible personal property 168 
for a consideration by social clubs and fraternal organizations to their 169 
members or others; 170 
(E) The furnishing, preparing, or serving for a consideration of food, 171 
meals or drinks; 172 
(F) A transaction whereby the possession of property is transferred 173 
but the seller retains the title as security for the payment of the price; 174 
(G) A transfer for a consideration of the title of tangible personal 175 
property which has been produced, fabricated or printed to the special 176 
order of the customer, or of any publication, including, but not limited 177 
to, sign construction, photofinishing, duplicating and photocopying; 178 
(H) A transfer for a consideration of the occupancy of any room or 179 
rooms in a hotel, lodging house, [or] bed and breakfast establishment 180 
or short-term rental property for a period of thirty consecutive 181 
calendar days or less; 182 
(I) The rendering of certain services, as defined in subdivision (37) 183 
of this subsection, for a consideration, exclusive of such services 184 
rendered by an employee for the employer; 185 
(J) The leasing or rental of tangible personal property of any kind 186 
whatsoever, including, but not limited to, motor vehicles, linen or 187 
towels, machinery or apparatus, office equipment and data processing 188 
equipment, provided for purposes of this subdivision and the 189 
application of sales and use tax to contracts of lease or rental of 190 
tangible personal property, the leasing or rental of any motion picture 191 
film by the owner or operator of a motion picture theater for purposes 192 
of display at such theater shall not constitute a sale within the meaning 193 
of this subsection; 194 
(K) The rendering of telecommunications service, as defined in 195 
subdivision (26) of this subsection, for a consideration on or after 196  Raised Bill No.  7177 
 
 
 
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January 1, 1990, exclusive of any such service rendered by an employee 197 
for the employer of such employee, subject to the provisions related to 198 
telecommunications service in accordance with section 12-407a; 199 
(L) (i) The rendering of community antenna television service, as 200 
defined in subdivision (27) of this subsection, for a consideration on or 201 
after January 1, 1990, exclusive of any such service rendered by an 202 
employee for the employer of such employee. For purposes of this 203 
chapter, "community antenna television service" includes service 204 
provided by a holder of a certificate of cable franchise authority 205 
pursuant to section 16-331p, and service provided by a community 206 
antenna television company issued a certificate of video franchise 207 
authority pursuant to section 16-331e for any service area in which it 208 
was not certified to provide community antenna television service 209 
pursuant to section 16-331 on or before October 1, 2007; 210 
(ii) The rendering of certified competitive video service, as defined 211 
in subdivision (38) of this subsection, for consideration on or after 212 
October 1, 2007, exclusive of any such service rendered by an 213 
employee for the employer of such employee; 214 
(M) The transfer for consideration of space or the right to use any 215 
space for the purpose of storage or mooring of any noncommercial 216 
vessel, exclusive of dry or wet storage or mooring of such vessel 217 
during the period commencing on the first day of October in any year 218 
to and including the thirty-first day of May of the next succeeding 219 
year; 220 
(N) The sale for consideration of naming rights to any place of 221 
amusement, entertainment or recreation within the meaning of 222 
subdivision (3) of section 12-540; 223 
(O) The transfer for consideration of a prepaid telephone calling 224 
service, as defined in subdivision (34) of this subsection, and the 225 
recharge of a prepaid telephone calling service, provided, if the sale or 226 
recharge of a prepaid telephone calling service does not take place at 227 
the retailer's place of business and an item is shipped by the retailer to 228  Raised Bill No.  7177 
 
 
 
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the customer, the sale or recharge shall be deemed to take place at the 229 
customer's shipping address, but, if such sale or recharge does not take 230 
place at the retailer's place of business and no item is shipped by the 231 
retailer to the customer, the sale or recharge shall be deemed to take 232 
place at the customer's billing address or the location associated with 233 
the customer's mobile telephone number; and 234 
(P) The furnishing by any person, for a consideration, of space for 235 
storage of tangible personal property when such person is engaged in 236 
the business of furnishing such space, but "sale" and "selling" do not 237 
mean or include the furnishing of space which is used by a person for 238 
residential purposes. As used in this subparagraph, "space for storage" 239 
means secure areas, such as rooms, units, compartments or containers, 240 
whether accessible from outside or from within a building, that are 241 
designated for the use of a customer, where the customer can store and 242 
retrieve property, including self-storage units, mini-storage units and 243 
areas by any other name to which the customer has either unlimited 244 
free access or free access within reasonable business hours or upon 245 
reasonable notice to the service provider to add or remove property, 246 
but does not mean the rental of an entire building, such as a 247 
warehouse. For purposes of this subparagraph, furnishing space for 248 
storage shall not include general warehousing and storage, where the 249 
warehouse typically handles, stores and retrieves a customer's 250 
property using the warehouse's staff and equipment and does not 251 
allow the customer free access to the storage space and shall not 252 
include accepting specific items of property for storage, such as 253 
clothing at a dry cleaning establishment or golf bags at a golf club. 254 
(3) (A) "Retail sale" or "sale at retail" means and includes a sale for 255 
any purpose other than resale in the regular course of business of 256 
tangible personal property or a transfer for a consideration of the 257 
occupancy of any room or rooms in a hotel, lodging house, [or] bed 258 
and breakfast establishment or short-term rental property for a period 259 
of thirty consecutive calendar days or less, or the rendering of any 260 
service described in subdivision (2) of this subsection. The delivery in 261 
this state of tangible personal property by an owner or former owner 262  Raised Bill No.  7177 
 
 
 
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thereof or by a factor, if the delivery is to a consumer pursuant to a 263 
retail sale made by a retailer not engaged in business in this state, is a 264 
retail sale in this state by the person making the delivery. Such person 265 
shall include the retail selling price of the property in such person's 266 
gross receipts. 267 
(B) "Retail sale" or "sale at retail" does not include any sale of any 268 
tangible personal property, where, no later than one hundred twenty 269 
days after the original sale, the original purchaser sells or becomes 270 
contractually obligated to sell such property to a retailer who is 271 
contractually obligated to lease such property back to such original 272 
purchaser in a lease that is taxable under this chapter or the sale of 273 
such property by the original purchaser to the retailer who is 274 
contractually obligated to lease such property back to such original 275 
purchaser in a lease that is taxable under this chapter. If the original 276 
purchaser has paid sales or use tax on the original sale of such 277 
property to the original purchaser, such original purchaser may (i) 278 
claim a refund of such tax under the provisions of section 12-425, upon 279 
presentation of proof satisfactory to the commissioner that the mutual 280 
contractual obligations described in this subparagraph w ere 281 
undertaken no later than one hundred twenty days after the original 282 
sale and that such tax was paid to the original retailer on the original 283 
sale and was remitted to the commissioner by such original retailer or 284 
by such original purchaser, or (ii) issue at the time of such original sale 285 
or no later than one hundred twenty days thereafter a certificate, in the 286 
form prescribed by the commissioner, to the original retailer certifying 287 
that the mutual contractual obligations described in this subparagraph 288 
have been undertaken. If such certificate is issued to the original 289 
retailer at the time of the original sale, no tax on the original sale shall 290 
be collected by the original retailer from the original purchaser. If the 291 
certificate is issued after the time of the original sale but no later than 292 
one hundred twenty days thereafter, the original retailer shall refund 293 
to the original purchaser the tax collected on the original sale and, if 294 
the original retailer has previously remitted the tax to the 295 
commissioner, the original retailer may either treat the amount so 296  Raised Bill No.  7177 
 
 
 
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refunded as a credit against the tax due on the return next filed under 297 
this chapter, or claim a refund under section 12-425. If such certificate 298 
is issued no later than one hundred twenty days after the time of the 299 
original sale but the tangible personal property originally purchased is 300 
not, in fact, subsequently leased by the original purchaser, such 301 
original purchaser shall be liable for and be required to pay the tax due 302 
on the original sale. 303 
(4) "Storage" includes any keeping or retention in this state for any 304 
purpose except sale in the regular course of business or subsequent use 305 
solely outside this state of tangible personal property purchased from 306 
a retailer. 307 
(5) "Use" includes the exercise of any right or power over tangible 308 
personal property incident to the ownership of that property, except 309 
that it does not include the sale of that property in the regular course 310 
of business. 311 
(6) "Storage" and "use" do not include (A) keeping, retaining or 312 
exercising any right or power over tangible personal property shipped 313 
or brought into this state for the purpose of subsequently transporting 314 
it outside the state for use thereafter solely outside the state, or for the 315 
purpose of being processed, fabricated or manufactured into, attached 316 
to or incorporated into, other tangible personal property to be 317 
transported outside the state and thereafter used solely outside the 318 
state, or (B) keeping, retaining or exercising any right or power over 319 
tangible personal property acquired by the customer of a commercial 320 
printer while such property is located at the premises of the 321 
commercial printer in this state pursuant to a contract with such 322 
printer for printing and distribution of printed material if the 323 
commercial printer could have acquired such property without 324 
application of tax under this chapter. 325 
(7) "Purchase" and "purchasing" means and includes: (A) Any 326 
transfer, exchange or barter, conditional or otherwise, in any manner 327 
or by any means whatsoever, of tangible personal property or of the 328  Raised Bill No.  7177 
 
 
 
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occupancy of any room or rooms in a hotel, lodging house, [or] bed 329 
and breakfast establishment or short-term rental property for a period 330 
of thirty consecutive calendar days or less for a consideration; (B) a 331 
transaction whereby the possession of property is transferred but the 332 
seller retains the title as security for the payment of the price; (C) a 333 
transfer for a consideration of tangible personal property which has 334 
been produced, fabricated or printed to the special order of the 335 
customer, or of any publication; (D) when performed outside this state 336 
or when the customer gives a resale certificate pursuant to section 12-337 
410, the producing, fabricating, processing, printing or imprinting of 338 
tangible personal property for a consideration for consumers who 339 
furnish either directly or indirectly the materials used in the 340 
producing, fabricating, processing, printing or imprinting; (E) the 341 
acceptance or receipt of any service described in any of the 342 
subparagraphs of subdivision (2) of this subsection; (F) any leasing or 343 
rental of tangible personal property. Wherever in this chapter 344 
reference is made to the purchase or purchasing of tangible personal 345 
property, it shall be construed to include purchases as described in this 346 
subsection. 347 
(8) (A) "Sales price" means the total amount for which tangible 348 
personal property is sold by a retailer, the total amount of rent for 349 
which occupancy of a room is transferred by an operator, the total 350 
amount for which any service described in subdivision (2) of this 351 
subsection is rendered by a retailer or the total amount of payment or 352 
periodic payments for which tangible personal property is leased by a 353 
retailer, valued in money, whether paid in money or otherwise, which 354 
amount is due and owing to the retailer or operator and, subject to the 355 
provisions of subdivision (1) of section 12-408, as amended by this act, 356 
whether or not actually received by the retailer or operator, without 357 
any deduction on account of any of the following: (i) The cost of the 358 
property sold; (ii) the cost of materials used, labor or service cost, 359 
interest charged, losses or any other expenses; (iii) for any sale 360 
occurring on or after July 1, 1993, any charges by the retailer to the 361 
purchaser for shipping or delivery, notwithstanding whether such 362  Raised Bill No.  7177 
 
 
 
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charges are separately stated in a written contract, or on a bill or 363 
invoice rendered to such purchaser or whether such shipping or 364 
delivery is provided by the retailer or a third party. The provisions of 365 
subparagraph (A) (iii) of this subdivision shall not apply to any item 366 
exempt from taxation pursuant to section 12-412. Such total amount 367 
includes any services that are a part of the sale; except as otherwise 368 
provided in subparagraph (B)(v) or (B)(vi) of this subdivision, any 369 
amount for which credit is given to the purchaser by the retailer, and 370 
all compensation and all employment-related expenses, whether or not 371 
separately stated, paid to or on behalf of employees of a retailer of any 372 
service described in subdivision (2) of this subsection. 373 
(B) "Sales price" does not include any of the following: (i) Cash 374 
discounts allowed and taken on sales; (ii) any portion of the amount 375 
charged for property returned by purchasers, which upon rescission of 376 
the contract of sale is refunded either in cash or credit, provided the 377 
property is returned within ninety days from the date of purchase; (iii) 378 
the amount of any tax, not including any manufacturers' or importers' 379 
excise tax, imposed by the United States upon or with respect to retail 380 
sales whether imposed upon the retailer or the purchaser; (iv) the 381 
amount charged for labor rendered in installing or applying the 382 
property sold, provided such charge is separately stated and exclusive 383 
of such charge for any service rendered within the purview of 384 
subparagraph (I) of subdivision (37) of this subsection; (v) unless the 385 
provisions of subdivision (4) of section 12-430 or of section 12-430a are 386 
applicable, any amount for which credit is given to the purchaser by 387 
the retailer, provided such credit is given solely for property of the 388 
same kind accepted in part payment by the retailer and intended by 389 
the retailer to be resold; (vi) the full face value of any coupon used by a 390 
purchaser to reduce the price paid to a retailer for an item of tangible 391 
personal property, whether or not the retailer will be reimbursed for 392 
such coupon, in whole or in part, by the manufacturer of the item of 393 
tangible personal property or by a third party; (vii) the amount 394 
charged for separately stated compensation, fringe benefits, workers' 395 
compensation and payroll taxes or assessments paid to or on behalf of 396  Raised Bill No.  7177 
 
 
 
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employees of a retailer who has contracted to manage a service 397 
recipient's property or business premises and renders management 398 
services described in subparagraph (I) or (J) of subdivision (37) of this 399 
subsection, provided, the employees perform such services solely for 400 
the service recipient at its property or business premises and "sales 401 
price" shall include the separately stated compensation, fringe benefits, 402 
workers' compensation and payroll taxes or assessments paid to or on 403 
behalf of any employee of the retailer who is an officer, director or 404 
owner of more than five per cent of the outstanding capital stock of the 405 
retailer. Determination whether an employee performs services solely 406 
for a service recipient at its property or business premises for purposes 407 
of this subdivision shall be made by reference to such employee's 408 
activities during the time period beginning on the later of the 409 
commencement of the management contract, the date of the 410 
employee's first employment by the retailer or the date which is six 411 
months immediately preceding the date of such determination; (viii) 412 
the amount charged for separately stated compensation, fringe 413 
benefits, workers' compensation and payroll taxes or assessments paid 414 
to or on behalf of (I) a leased employee, or (II) a worksite employee by 415 
a professional employer organization pursuant to a professional 416 
employer agreement. For purposes of this subparagraph, an employee 417 
shall be treated as a leased employee if the employee is provided to the 418 
client at the commencement of an agreement with an employee leasing 419 
organization under which at least seventy-five per cent of the 420 
employees provided to the client at the commencement of such initial 421 
agreement qualify as leased employees pursuant to Section 414(n) of 422 
the Internal Revenue Code of 1986, or any subsequent corresponding 423 
internal revenue code of the United States, as from time to time 424 
amended, or the employee is added to the client's workforce by the 425 
employee leasing organization subsequent to the commencement of 426 
such initial agreement and qualifies as a leased employee pursuant to 427 
Section 414(n) of said Internal Revenue Code of 1986 without regard to 428 
subparagraph (B) of paragraph (2) thereof. A leased employee, or a 429 
worksite employee subject to a professional employer agreement, shall 430 
not include any employee who is hired by a temporary help service 431  Raised Bill No.  7177 
 
 
 
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and assigned to support or supplement the workforce of a temporary 432 
help service's client; (ix) any amount received by a retailer from a 433 
purchaser as the battery deposit that is required to be paid under 434 
subsection (a) of section 22a-245h; the refund value of a beverage 435 
container that is required to be paid under subsection (a) of section 436 
22a-244; or a deposit that is required by law to be paid by the 437 
purchaser to the retailer and that is required by law to be refunded to 438 
the purchaser by the retailer when the same or similar tangible 439 
personal property is delivered as required by law to the retailer by the 440 
purchaser, if such amount is separately stated on the bill or invoice 441 
rendered by the retailer to the purchaser; and (x) the amount charged 442 
for separately stated compensation, fringe benefits, workers' 443 
compensation and payroll taxes or assessments paid to a media payroll 444 
services company, as defined in this subsection. 445 
(9) (A) "Gross receipts" means the total amount of the sales price 446 
from retail sales of tangible personal property by a retailer, the total 447 
amount of the rent from transfers of occupancy of rooms by an 448 
operator, the total amount of the sales price from retail sales of any 449 
service described in subdivision (2) of this subsection by a retailer of 450 
services, or the total amount of payment or periodic payments from 451 
leases or rentals of tangible personal property by a retailer, valued in 452 
money, whether received in money or otherwise, which amount is due 453 
and owing to the retailer or operator and, subject to the provisions of 454 
subdivision (1) of section 12-408, as amended by this act, whether or 455 
not actually received by the retailer or operator, without any deduction 456 
on account of any of the following: (i) The cost of the property sold; 457 
however, in accordance with such regulations as the Commissioner of 458 
Revenue Services may prescribe, a deduction may be taken if the 459 
retailer has purchased property for some other purpose than resale, 460 
has reimbursed the retailer's vendor for tax which the vendor is 461 
required to pay to the state or has paid the use tax with respect to the 462 
property, and has resold the property prior to making any use of the 463 
property other than retention, demonstration or display while holding 464 
it for sale in the regular course of business. If such a deduction is taken 465  Raised Bill No.  7177 
 
 
 
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by the retailer, no refund or credit will be allowed to the retailer's 466 
vendor with respect to the sale of the property; (ii) the cost of the 467 
materials used, labor or service cost, interest paid, losses or any other 468 
expense; (iii) for any sale occurring on or after July 1, 1993, except for 469 
any item exempt from taxation pursuant to section 12-412, any charges 470 
by the retailer to the purchaser for shipping or delivery, 471 
notwithstanding whether such charges are separately stated in the 472 
written contract, or on a bill or invoice rendered to such purchaser or 473 
whether such shipping or delivery is provided by the retailer or a third 474 
party. The total amount of the sales price includes any services that are 475 
a part of the sale; all receipts, cash, credits and property of any kind; 476 
except as otherwise provided in subparagraph (B)(v) or (B)(vi) of this 477 
subdivision, any amount for which credit is allowed by the retailer to 478 
the purchaser; and all compensation and all employment-related 479 
expenses, whether or not separately stated, paid to or on behalf of 480 
employees of a retailer of any service described in subdivision (2) of 481 
this subsection. 482 
(B) "Gross receipts" do not include any of the following: (i) Cash 483 
discounts allowed and taken on sales; (ii) any portion of the sales price 484 
of property returned by purchasers, which upon rescission of the 485 
contract of sale is refunded either in cash or credit, provided the 486 
property is returned within ninety days from the date of sale; (iii) the 487 
amount of any tax, not including any manufacturers' or importers' 488 
excise tax, imposed by the United States upon or with respect to retail 489 
sales whether imposed upon the retailer or the purchaser; (iv) the 490 
amount charged for labor rendered in installing or applying the 491 
property sold, provided such charge is separately stated and exclusive 492 
of such charge for any service rendered within the purview of 493 
subparagraph (I) of subdivision (37) of this subsection; (v) unless the 494 
provisions of subdivision (4) of section 12-430 or of section 12-430a are 495 
applicable, any amount for which credit is given to the purchaser by 496 
the retailer, provided such credit is given solely for property of the 497 
same kind accepted in part payment by the retailer and intended by 498 
the retailer to be resold; (vi) the full face value of any coupon used by a 499  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	17 of 54 
 
purchaser to reduce the price paid to the retailer for an item of tangible 500 
personal property, whether or not the retailer will be reimbursed for 501 
such coupon, in whole or in part, by the manufacturer of the item of 502 
tangible personal property or by a third party; (vii) the amount 503 
charged for separately stated compensation, fringe benefits, workers' 504 
compensation and payroll taxes or assessments paid to or on behalf of 505 
employees of a retailer who has contracted to manage a service 506 
recipient's property or business premises and renders management 507 
services described in subparagraph (I) or (J) of subdivision (37) of this 508 
subsection, provided the employees perform such services solely for 509 
the service recipient at its property or business premises and "gross 510 
receipts" shall include the separately stated compensation, fringe 511 
benefits, workers' compensation and payroll taxes or assessments paid 512 
to or on behalf of any employee of the retailer who is an officer, 513 
director or owner of more than five per cent of the outstanding capital 514 
stock of the retailer. Determination whether an employee performs 515 
services solely for a service recipient at its property or business 516 
premises for purposes of this subdivision shall be made by reference to 517 
such employee's activities during the time period beginning on the 518 
later of the commencement of the management contract, the date of the 519 
employee's first employment by the retailer or the date which is six 520 
months immediately preceding the date of such determination; (viii) 521 
the amount charged for separately stated compensation, fringe 522 
benefits, workers' compensation and payroll taxes or assessments paid 523 
to or on behalf of (I) a leased employee, or (II) a worksite employee by 524 
a professional employer organization pursuant to a professional 525 
employer agreement. For purposes of this subparagraph, an employee 526 
shall be treated as a leased employee if the employee is provided to the 527 
client at the commencement of an agreement with an employee leasing 528 
organization under which at least seventy-five per cent of the 529 
employees provided to the client at the commencement of such initial 530 
agreement qualify as leased employees pursuant to Section 414(n) of 531 
the Internal Revenue Code of 1986, or any subsequent corresponding 532 
internal revenue code of the United States, as from time to time 533 
amended, or the employee is added to the client's workforce by the 534  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	18 of 54 
 
employee leasing organization subsequent to the commencement of 535 
such initial agreement and qualifies as a leased employee pursuant to 536 
Section 414(n) of said Internal Revenue Code of 1986 without regard to 537 
subparagraph (B) of paragraph (2) thereof. A leased employee, or a 538 
worksite employee subject to a professional employer agreement, shall 539 
not include any employee who is hired by a temporary help service 540 
and assigned to support or supplement the workforce of a temporary 541 
help service's client; (ix) the amount received by a retailer from a 542 
purchaser as the battery deposit that is required to be paid under 543 
subsection (a) of section 22a-256h; the refund value of a beverage 544 
container that is required to be paid under subsection (a) of section 545 
22a-244 or a deposit that is required by law to be paid by the purchaser 546 
to the retailer and that is required by law to be refunded to the 547 
purchaser by the retailer when the same or similar tangible personal 548 
property is delivered as required by law to the retailer by the 549 
purchaser, if such amount is separately stated on the bill or invoice 550 
rendered by the retailer to the purchaser; and (x) the amount charged 551 
for separately stated compensation, fringe benefits, workers' 552 
compensation and payroll taxes or assessments paid to a media payroll 553 
services company, as defined in this subsection. 554 
(10) "Business" includes any activity engaged in by any person or 555 
caused to be engaged in by any person with the object of gain, benefit 556 
or advantage, either direct or indirect. 557 
(11) "Seller" includes every person engaged in the business of selling 558 
tangible personal property or rendering any service described in any of 559 
the subparagraphs of subdivision (2) of this subsection, the gross 560 
receipts from the retail sale of which are required to be included in the 561 
measure of the sales tax and every operator as defined in subdivision 562 
(18) of this subsection. 563 
(12) "Retailer" includes:  564 
(A) Every person engaged in the business of making sales at retail or 565 
in the business of making retail sales at auction of tangible personal 566  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	19 of 54 
 
property owned by the person or others;  567 
(B) Every person engaged in the business of making sales for 568 
storage, use or other consumption or in the business of making sales at 569 
auction of tangible personal property owned by the person or others 570 
for storage, use or other consumption;  571 
(C) Every operator, as defined in subdivision (18) of this subsection;  572 
(D) Every seller rendering any service described in subdivision (2) 573 
of this subsection;  574 
(E) Every person under whom any salesman, representative, 575 
peddler or canvasser operates in this state, or from whom such 576 
salesman, representative, peddler or canvasser obtains the tangible 577 
personal property that is sold;  578 
(F) Every person with whose assistance any seller is enabled to 579 
solicit orders within this state;  580 
(G) Every person making retail sales from outside this state to a 581 
destination within this state who engages in regular or systematic 582 
solicitation of sales of tangible personal property in this state (i) by the 583 
display of advertisements on billboards or other outdoor advertising in 584 
this state, (ii) by the distribution of catalogs, periodicals, advertising 585 
flyers or other advertising by means of print, radio or television media, 586 
or (iii) by mail, telegraphy, telephone, computer data base, cable, optic, 587 
microwave, Internet or other communication system, for the purpose 588 
of effecting retail sales of tangible personal property, provided such 589 
person has gross receipts of at least two hundred fifty thousand dollars 590 
and made two hundred or more retail sales from outside this state to 591 
destinations within this state during the twelve-month period ended 592 
on the September thirtieth immediately preceding the monthly or 593 
quarterly period with respect to which such person's liability for tax 594 
under this chapter is determined;  595 
(H) Any person owned or controlled, either directly or indirectly, by 596  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	20 of 54 
 
a retailer engaged in business in this state which is the same as or 597 
similar to the line of business in which such person so owned or 598 
controlled is engaged;  599 
(I) Any person owned or controlled, either directly or indirectly, by 600 
the same interests that own or control, either directly or indirectly, a 601 
retailer engaged in business in this state which is the same as or similar 602 
to the line of business in which such person so owned or controlled is 603 
engaged;  604 
(J) Any assignee of a person engaged in the business of leasing 605 
tangible personal property to others, where leased property of such 606 
person which is subject to taxation under this chapter is situated 607 
within this state and such assignee has a security interest, as defined in 608 
subdivision (35) of subsection (b) of section 42a-1-201, in such 609 
property;  610 
(K) Every person making retail sales of items of tangible personal 611 
property from outside this state to a destination within this state who 612 
repairs or services such items, under a warranty, in this state, either 613 
directly or indirectly through an agent, independent contractor or 614 
subsidiary;  615 
(L) Every person making sales of tangible personal property or 616 
services through an agreement with another person located in this 617 
state under which such person located in this state, for a commission 618 
or other consideration that is based upon the sale of tangible personal 619 
property or services by the retailer, directly or indirectly refers 620 
potential customers, whether by a link on an Internet web site or 621 
otherwise, to the retailer, provided the cumulative gross receipts from 622 
sales by the retailer to customers in the state who are referred to the 623 
retailer by all such persons with this type of an agreement with the 624 
retailer, is in excess of two hundred fifty thousand dollars during the 625 
preceding four quarterly periods ending on the last day of March, 626 
June, September and December; and 627 
(M) Any marketplace facilitator, as defined in section 12-408e. 628  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	21 of 54 
 
(13) "Tangible personal property" means personal property which 629 
may be seen, weighed, measured, felt or touched or which is in any 630 
other manner perceptible to the senses including canned or prewritten 631 
computer software. Tangible personal property includes the 632 
distribution, generation or transmission of electricity. 633 
(14) "In this state" or "in the state" means within the exterior limits of 634 
the state of Connecticut and includes all territory within these limits 635 
owned by or ceded to the United States of America. 636 
(15) (A) "Engaged in business in the state" means and, to the extent 637 
not prohibited by the Constitution of the United States, includes, but 638 
shall not be limited to, the following acts or methods of transacting 639 
business: (i) Selling in this state, or any activity in this state in 640 
connection with selling in this state, tangible personal property for use, 641 
storage or consumption within the state; (ii) engaging in the transfer 642 
for a consideration of the occupancy of any room or rooms in a hotel, 643 
lodging house, [or] bed and breakfast establishment or short-term 644 
rental property for a period of thirty consecutive calendar days or less; 645 
(iii) rendering in this state any service described in any of the 646 
subparagraphs of subdivision (2) of this subsection; (iv) maintaining, 647 
occupying or using, permanently or temporarily, directly or indirectly, 648 
through a subsidiary or agent, by whatever name called, any office, 649 
place of distribution, sales or sample room or place, warehouse or 650 
storage point or other place of business or having any representative, 651 
agent, salesman, canvasser or solicitor operating in this state for the 652 
purpose of selling, delivering or taking orders; (v) notwithstanding the 653 
fact that retail sales are made from outside this state to a destination 654 
within this state, engaging in regular or systematic solicitation of sales 655 
of tangible personal property in this state by the display of 656 
advertisements on billboards or other outdoor advertising in this state, 657 
by the distribution of catalogs, periodicals, advertising flyers or other 658 
advertising by means of print, radio or television media, or by mail, 659 
telegraphy, telephone, computer data base, cable, optic, microwave, 660 
Internet or other communication system, for the purpose of effecting 661 
retail sales of tangible personal property, provided at least two 662  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	22 of 54 
 
hundred fifty thousand dollars of gross receipts are received and two 663 
hundred or more retail sales from outside this state to destinations 664 
within this state are made during the twelve-month period ended on 665 
the September thirtieth immediately preceding the monthly or 666 
quarterly period with respect to which liability for tax under this 667 
chapter is determined; (vi) being owned or controlled, either directly 668 
or indirectly, by a retailer engaged in business in this state which is the 669 
same as or similar to the line of business in which the retailer so owned 670 
or controlled is engaged; (vii) being owned or controlled, either 671 
directly or indirectly, by the same interests that own or control, either 672 
directly or indirectly, a retailer engaged in business in this state which 673 
is the same as or similar to the line of business in which the retailer so 674 
owned or controlled is engaged; (viii) being the assignee of a person 675 
engaged in the business of leasing tangible personal property to others, 676 
where leased property of such person is situated within this state and 677 
such assignee has a security interest, as defined in subdivision (35) of 678 
subsection (b) of section 42a-1-201, in such property; (ix) 679 
notwithstanding the fact that retail sales of items of tangible personal 680 
property are made from outside this state to a destination within this 681 
state, repairing or servicing such items, under a warranty, in this state, 682 
either directly or indirectly through an agent, independent contractor 683 
or subsidiary; and (x) selling tangible personal property or services 684 
through an agreement with a person located in this state, under which 685 
such person located in this state, for a commission or other 686 
consideration that is based upon the sale of tangible personal property 687 
or services by the retailer, directly or indirectly refers potential 688 
customers, whether by a link on an Internet web site or otherwise, to 689 
the retailer, provided the cumulative gross receipts from sales by the 690 
retailer to customers in the state who are referred to the retailer by all 691 
such persons with this type of agreement with the retailer is in excess 692 
of two hundred fifty thousand dollars during the four preceding four 693 
quarterly periods ending on the last day of March, June, September 694 
and December. 695 
(B) A retailer who has contracted with a commercial printer for 696  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	23 of 54 
 
printing and distribution of printed material shall not be deemed to be 697 
engaged in business in this state because of the ownership or leasing 698 
by the retailer of tangible or intangible personal property located at the 699 
premises of the commercial printer in this state, the sale by the retailer 700 
of property of any kind produced or processed at and shipped or 701 
distributed from the premises of the commercial printer in this state, 702 
the activities of the retailer's employees or agents at the premises of the 703 
commercial printer in this state, which activities relate to quality 704 
control, distribution or printing services performed by the printer, or 705 
the activities of any kind performed by the commercial printer in this 706 
state for or on behalf of the retailer. 707 
(C) A retailer not otherwise engaged in business in the state who 708 
purchases fulfillment services carried on in this state by a person other 709 
than an affiliated person, or who owns tangible personal property 710 
located on the premises of an unaffiliated person other than a 711 
marketplace facilitator, as defined in section 12-408e, performing 712 
fulfillment services for such retailer, shall not be deemed to be engaged 713 
in business in this state. For purposes of this subparagraph, (i) persons 714 
are affiliated persons with respect to each other where one of such 715 
persons has an ownership interest of more than five per cent, whether 716 
direct or indirect, in the other, or where an ownership interest of more 717 
than five per cent, whether direct or indirect, is held in each of such 718 
persons by another person or by a group of other persons who are 719 
affiliated persons with respect to each other, and (ii) "fulfillment 720 
services" means services that are performed by a person on its 721 
premises on behalf of a purchaser of such services and that involve the 722 
receipt of orders from the purchaser of such services or an agent 723 
thereof, which orders are to be filled by the person from an inventory 724 
of products that are offered for sale by the purchaser of such services, 725 
and the shipment of such orders outside this state to customers of the 726 
purchaser of such services. 727 
(D) A retailer not otherwise engaged in business in this state that 728 
participates in a trade show or shows at the convention center, as 729 
defined in subdivision (3) of section 32-600, shall not be deemed to be 730  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	24 of 54 
 
engaged in business in this state, regardless of whether the retailer has 731 
employees or other staff present at such trade shows, provided the 732 
retailer's activity at such trade shows is limited to displaying goods or 733 
promoting services, no sales are made, any orders received are sent 734 
outside this state for acceptance or rejection and are filled from outside 735 
this state, and provided further that such participation is not more 736 
than fourteen days, or part thereof, in the aggregate during the 737 
retailer's income year for federal income tax purposes. 738 
(16) "Hotel" means any building regularly used and kept open as 739 
such for the feeding and lodging of guests where any person who 740 
conducts himself properly and who is able and ready to pay for such 741 
services is received if there are accommodations for such person and 742 
which derives the major portion of its operating receipts from the 743 
renting of rooms and the sale of food. "Hotel" includes any apartment 744 
hotel wherein apartments are rented for fixed periods of time, 745 
furnished or unfurnished, while the keeper of such hotel supplies food 746 
to the occupants thereof, if required, but does not include a bed and 747 
breakfast establishment or short-term rental property. 748 
(17) "Lodging house" means any building or portion of a building, 749 
other than a hotel, an apartment hotel, [or] a bed and breakfast 750 
establishment or a short-term rental property, in which persons are 751 
lodged for hire with or without meals, including, but not limited to, 752 
any motel, motor court, motor inn, tourist court, furnished residence or 753 
similar accommodation; provided the terms "hotel", "apartment hotel", 754 
"lodging house", [and "bed and breakfast"] "bed and breakfast 755 
establishment" and "short-term rental property" shall not be construed 756 
to include: (A) Privately owned and operated convalescent homes, 757 
residential care homes, homes for the infirm, indigent or chronically ill; 758 
(B) religious or charitable homes for the aged, infirm, indigent or 759 
chronically ill; (C) privately owned and operated summer camps for 760 
children; (D) summer camps for children operated by religious or 761 
charitable organizations; (E) lodging accommodations at educational 762 
institutions; or (F) lodging accommodations at any facility operated by 763 
and in the name of any nonprofit charitable organization, provided the 764  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	25 of 54 
 
income from such lodging accommodations at such facility is not 765 
subject to federal income tax. 766 
(18) "Operator" means any person operating a hotel, lodging house, 767 
[or] bed and breakfast establishment or short-term rental property in 768 
the state, including, but not limited to, the owner or proprietor of such 769 
premises, lessee, sublessee, mortgagee in possession, licensee or any 770 
other person otherwise operating such hotel, lodging house, [or] bed 771 
and breakfast establishment or short-term rental property. 772 
(19) "Occupancy" means the use or possession, or the right to the 773 
use or possession, of any room or rooms in a hotel, lodging house, [or] 774 
bed and breakfast establishment or short-term rental property, or the 775 
right to the use or possession of the furnishings or the services and 776 
accommodations accompanying the use and possession of such room 777 
or rooms, for the first period of not more than thirty consecutive 778 
calendar days. 779 
(20) "Room" means any room or rooms of any kind in any part or 780 
portion of a hotel, lodging house, [or] bed and breakfast establishment 781 
or short-term rental property let out for use or possession for lodging 782 
purposes. 783 
(21) "Rent" means the consideration received for occupancy and any 784 
meals included with such occupancy, valued in money, whether 785 
received in money or otherwise, including all receipts, cash, credits 786 
and property or services of any kind or nature, and also any amount 787 
for which credit is allowed by the operator to the occupant, without 788 
any deduction therefrom whatsoever. 789 
(22) "Certificated air carrier" means a person issued a certificate or 790 
certificates by the Federal Aviation Administration pursuant to Title 791 
14, Chapter I, Subchapter G, Part 121, 135, 139 or 141 of the Code of 792 
Federal Regulations or the Civil Aeronautics Board pursuant to Title 793 
14, Chapter II, Subchapter A, Parts 201 to 208, inclusive, and 298 of the 794 
Code of Federal Regulations, as such regulations may hereafter be 795 
amended or reclassified. 796  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	26 of 54 
 
(23) "Aircraft" means aircraft, as the term is defined in section 15-34. 797 
(24) "Vessel" means vessel, as the term is defined in section 15-127. 798 
(25) "Licensed marine dealer" means a marine dealer, as the term is 799 
defined in section 15-141, who has been issued a marine dealer's 800 
certificate by the Commissioner of Energy and Environmental 801 
Protection. 802 
(26) (A) "Telecommunications service" means the electronic 803 
transmission, conveyance or routing of voice, image, data, audio, video 804 
or any other information or signals to a point or between or among 805 
points. "Telecommunications service" includes such transmission, 806 
conveyance or routing in which computer processing applications are 807 
used to act on the form, code or protocol of the content for purposes of 808 
transmission, conveyance or routing without regard to whether such 809 
service is referred to as a voice over Internet protocol service or is 810 
classified by the Federal Communications Commission as enhanced or 811 
value added. "Telecommunications service" does not include (i) value-812 
added nonvoice data services, (ii) radio and television audio and video 813 
programming services, regardless of the medium, including the 814 
furnishing of transmission, conveyance or routing of such services by 815 
the programming service provider. Radio and television audio and 816 
video programming services shall include, but not be limited to, cable 817 
service as defined in 47 USC 522(6), audio and video programming 818 
services delivered by commercial mobile radio service providers, as 819 
defined in 47 CFR 20, and video programming service by certified 820 
competitive video service providers, (iii) any telecommunications 821 
service (I) rendered by a company in control of such service when 822 
rendered for private use within its organization, or (II) used, allocated 823 
or distributed by a company within its organization, including in such 824 
organization affiliates, as defined in section 33-840, for the purpose of 825 
conducting business transactions of the organization if such service is 826 
purchased or leased from a company rendering telecommunications 827 
service and such purchase or lease is subject to tax under this chapter, 828 
(iv) access or interconnection service purchased by a provider of 829  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	27 of 54 
 
telecommunications service from another provider of such service for 830 
purposes of rendering such service, provided the purchaser submits to 831 
the seller a certificate attesting to the applicability of this exclusion, 832 
upon receipt of which the seller is relieved of any tax liability for such 833 
sale so long as the certificate is taken in good faith by the seller, (v) 834 
data processing and information services that allow data to be 835 
generated, acquired, stored, processed or retrieved and delivered by 836 
an electronic transmission to a purchaser where such purchaser's 837 
primary purpose for the underlying transaction is the processed data 838 
or information, (vi) installation or maintenance of wiring equipment 839 
on a customer's premises, (vii) tangible personal property, (viii) 840 
advertising, including, but not limited to, directory advertising, (ix) 841 
billing and collection services provided to third parties, (x) Internet 842 
access service, (xi) ancillary services, and (xii) digital products 843 
delivered electronically, including, but not limited to, software, music, 844 
video, reading materials or ring tones. 845 
(B) For purposes of the tax imposed under this chapter (i) gross 846 
receipts from the rendering of telecommunications service shall 847 
include any subscriber line charge or charges as required by the 848 
Federal Communications Commission and any charges for access 849 
service collected by any person rendering such service unless 850 
otherwise excluded from such gross receipts under this chapter, and 851 
such gross receipts from the rendering of telecommunications service 852 
shall also include any charges for vertical service, for the installation or 853 
maintenance of wiring equipment on a customer's premises, and for 854 
directory assistance service; (ii) gross receipts from the rendering of 855 
telecommunications service shall not include any local charge for calls 856 
from public or semipublic telephones; and (iii) gross receipts from the 857 
rendering of telecommunications service shall not include any charge 858 
for calls purchased using a prepaid telephone calling service, as 859 
defined in subdivision (34) of this subsection. 860 
(27) "Community antenna television service" means (A) the one-way 861 
transmission to subscribers of video programming or information by 862 
cable, fiber optics, satellite, microwave or any other means, and 863  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	28 of 54 
 
subscriber interaction, if any, which is required for the selection of 864 
such video programming or informati on, and (B) noncable 865 
communications service, as defined in section 16-1, unless such 866 
noncable communications service is purchased by a cable network as 867 
that term is used in subsection (k) of section 12-218. 868 
(28) "Hospital" means a hospital included within the definition of 869 
health care facilities or institutions under section 19a-630 and licensed 870 
as a short-term general hospital by the Department of Public Health, 871 
but does not include (A) any hospital which, on January 30, 1997, is 872 
within the class of hospitals licensed by the department as children's 873 
general hospitals, or (B) a short-term acute hospital operated 874 
exclusively by the state other than a short-term acute hospital operated 875 
by the state as a receiver pursuant to chapter 920. 876 
(29) "Patient care services" means therapeutic and diagnostic 877 
medical services provided by the hospital to inpatients and outpatients 878 
including tangible personal property transferred in connection with 879 
such services. 880 
(30) "Another state" or "other state" means any state of the United 881 
States or the District of Columbia excluding the state of Connecticut. 882 
(31) "Professional employer agreement" means a written contract 883 
between a professional employer organization and a service recipient 884 
whereby the professional employer organization agrees to provide at 885 
least seventy-five per cent of the employees at the service recipient's 886 
worksite, which contract provides that such worksite employees are 887 
intended to be permanent employees rather than temporary 888 
employees, and employer responsibilities for such worksite 889 
employees, including hiring, firing and disciplining, are allocated 890 
between the professional employer organization and the service 891 
recipient. 892 
(32) "Professional employer organization" means any person that 893 
enters into a professional employer agreement with a service recipient 894 
whereby the professional employer organization agrees to provide at 895  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	29 of 54 
 
least seventy-five per cent of the employees at the service recipient's 896 
worksite. 897 
(33) "Worksite employee" means an employee, the employer 898 
responsibilities for which, including hiring, firing and disciplining, are 899 
allocated, under a professional employer agreement, between a 900 
professional employer organization and a service recipient. 901 
(34) "Prepaid telephone calling service" means the right to 902 
exclusively purchase telecommunications service, that must be paid for 903 
in advance and that enables the origination of calls using an access 904 
number or authorization code, or both, whether manually or 905 
electronically dialed, provided the remaining amount of units of 906 
service that have been prepaid shall be known on a continuous basis. 907 
(35) "Canned or prewritten software" means all software, other than 908 
custom software, that is held or existing for general or repeated sale, 909 
license or lease. Software initially developed as custom software for in-910 
house use and subsequently sold, licensed or leased to unrelated third 911 
parties shall be considered canned or prewritten software. 912 
(36) "Custom software" means a computer program prepared to the 913 
special order of a single customer. 914 
(37) "Services" for purposes of subdivision (2) of this subsection, 915 
means: 916 
(A) Computer and data processing services, including, but not 917 
limited to, time, programming, code writing, modification of existing 918 
programs, feasibility studies and installation and implementation of 919 
software programs and systems even where such services are rendered 920 
in connection with the development, creation or production of canned 921 
or custom software or the license of custom software; 922 
(B) Credit information and reporting services; 923 
(C) Services by employment agencies and agencies providing 924 
personnel services; 925  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	30 of 54 
 
(D) Private investigation, protection, patrol work, watchman and 926 
armored car services, exclusive of (i) services of off-duty police officers 927 
and off-duty firefighters, and (ii) coin and currency services provided 928 
to a financial services company by or through another financial 929 
services company. For purposes of this subparagraph, "financial 930 
services company" has the same meaning as provided under 931 
subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 932 
of section 12-218b; 933 
(E) Painting and lettering services; 934 
(F) Photographic studio services; 935 
(G) Telephone answering services; 936 
(H) Stenographic services; 937 
(I) Services to industrial, commercial or income-producing real 938 
property, including, but not limited to, such services as management, 939 
electrical, plumbing, painting and carpentry, provided 940 
income-producing property shall not include property used 941 
exclusively for residential purposes in which the owner resides and 942 
which contains no more than three dwelling units, or a housing facility 943 
for low and moderate income families and persons owned or operated 944 
by a nonprofit housing organization, as defined in subdivision (29) of 945 
section 12-412; 946 
(J) Business analysis, management, management consulting and 947 
public relations services, excluding (i) any environmental consulting 948 
services, (ii) any training services provided by an institution of higher 949 
education licensed or accredited by the Board of Regents for Higher 950 
Education or Office of Higher Education pursuant to sections 10a-35a 951 
and 10a-34, respectively, and (iii) on and after January 1, 1994, any 952 
business analysis, management, management consulting and public 953 
relations services when such services are rendered in connection with 954 
an aircraft leased or owned by a certificated air carrier or in connection 955 
with an aircraft which has a maximum certificated take-off weight of 956  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	31 of 54 
 
six thousand pounds or more; 957 
(K) Services providing "piped-in" music to business or professional 958 
establishments; 959 
(L) Flight instruction and chartering services by a certificated air 960 
carrier on an aircraft, the use of which for such purposes, but for the 961 
provisions of subdivision (4) of section 12-410 and subdivision (12) of 962 
section 12-411, as amended by this act, would be deemed a retail sale 963 
and a taxable storage or use, respectively, of such aircraft by such 964 
carrier; 965 
(M) Motor vehicle repair services, including any type of repair, 966 
painting or replacement related to the body or any of the operating 967 
parts of a motor vehicle; 968 
(N) Motor vehicle parking, including the provision of space, other 969 
than metered space, in a lot having thirty or more spaces, excluding (i) 970 
space in a parking lot owned or leased under the terms of a lease of not 971 
less than ten years' duration and operated by an employer for the 972 
exclusive use of its employees, (ii) space in municipally operated 973 
railroad parking facilities in municipalities located within an area of 974 
the state designated as a severe nonattainment area for ozone under 975 
the federal Clean Air Act or space in a railroad parking facility in a 976 
municipality located within an area of the state designated as a severe 977 
nonattainment area for ozone under the federal Clean Air Act owned 978 
or operated by the state on or after April 1, 2000, (iii) space in a 979 
seasonal parking lot provided by an entity subject to the exemption set 980 
forth in subdivision (1) of section 12-412, and (iv) space in a 981 
municipally owned parking lot; 982 
(O) Radio or television repair services; 983 
(P) Furniture reupholstering and repair services; 984 
(Q) Repair services to any electrical or electronic device, including, 985 
but not limited to, equipment used for purposes of refrigeration or 986  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	32 of 54 
 
air-conditioning; 987 
(R) Lobbying or consulting services for purposes of representing the 988 
interests of a client in relation to the functions of any governmental 989 
entity or instrumentality; 990 
(S) Services of the agent of any person in relation to the sale of any 991 
item of tangible personal property for such person, exclusive of the 992 
services of a consignee selling works of art, as defined in subsection (b) 993 
of section 12-376c, or articles of clothing or footwear intended to be 994 
worn on or about the human body other than (i) any special clothing 995 
or footwear primarily designed for athletic activity or protective use 996 
and which is not normally worn except when used for the athletic 997 
activity or protective use for which it was designed, and (ii) jewelry, 998 
handbags, luggage, umbrellas, wallets, watches and similar items 999 
carried on or about the human body but not worn on the body, under 1000 
consignment, exclusive of services provided by an auctioneer; 1001 
(T) Locksmith services; 1002 
(U) Advertising or public relations services, including layout, art 1003 
direction, graphic design, mechanical preparation or production 1004 
supervision, not related to the development of media advertising or 1005 
cooperative direct mail advertising; 1006 
(V) Landscaping and horticulture services; 1007 
(W) Window cleaning services; 1008 
(X) Maintenance services; 1009 
(Y) Janitorial services; 1010 
(Z) Exterminating services; 1011 
(AA) Swimming pool cleaning and maintenance services; 1012 
(BB) Miscellaneous personal services included in industry group 729 1013 
in the Standard Industrial Classification Manual, United States Office 1014  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	33 of 54 
 
of Management and Budget, 1987 edition, or U.S. industry 532220, 1015 
812191, 812199 or 812990 in the North American Industrial 1016 
Classification System United States Manual, United States Office of 1017 
Management and Budget, 1997 edition, exclusive of (i) services 1018 
rendered by massage therapists licensed pursuant to chapter 384a, and 1019 
(ii) services rendered by an electrologist licensed pursuant to chapter 1020 
388; 1021 
(CC) Any repair or maintenance service to any item of tangible 1022 
personal property including any contract of warranty or service related 1023 
to any such item; 1024 
(DD) Business analysis, management or managing consulting 1025 
services rendered by a general partner, or an affiliate thereof, to a 1026 
limited partnership, provided (i) the general partner, or an affiliate 1027 
thereof, is compensated for the rendition of such services other than 1028 
through a distributive share of partnership profits or an annual 1029 
percentage of partnership capital or assets established in the limited 1030 
partnership's offering statement, and (ii) the general partner, or an 1031 
affiliate thereof, offers such services to others, including any other 1032 
partnership. As used in this subparagraph "an affiliate of a general 1033 
partner" means an entity which is directly or indirectly owned fifty per 1034 
cent or more in common with a general partner; 1035 
(EE) Notwithstanding the provisions of section 12-412, except 1036 
subdivision (87) of said section 12-412, patient care services, as defined 1037 
in subdivision (29) of this subsection by a hospital, except that "sale" 1038 
and "selling" does not include such patient care services for which 1039 
payment is received by the hospital during the period commencing 1040 
July 1, 2001, and ending June 30, 2003; 1041 
(FF) Health and athletic club services, exclusive of (i) any such 1042 
services provided without any additional charge which are included in 1043 
any dues or initiation fees paid to any such club, which dues or fees 1044 
are subject to tax under section 12-543, and (ii) any such services 1045 
provided by a municipality or an organization that is described in 1046  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	34 of 54 
 
Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1047 
corresponding internal revenue code of the United States, as from time 1048 
to time amended; 1049 
(GG) Motor vehicle storage services, including storage of motor 1050 
homes, campers and camp trailers, other than the furnishing of space 1051 
as described in subparagraph (P) of subdivision (2) of this subsection; 1052 
(HH) Packing and crating services, other than those provided in 1053 
connection with the sale of tangible personal property by the retailer of 1054 
such property; 1055 
(II) Motor vehicle towing and road services, other than motor 1056 
vehicle repair services; 1057 
(JJ) Intrastate transportation services provided by livery services, 1058 
including limousines, community cars or vans, with a driver. Intrastate 1059 
transportation services shall not include transportation by taxicab, 1060 
motor bus, ambulance or ambulette, scheduled public transportation, 1061 
nonemergency medical transportation provided under the Medicaid 1062 
program, paratransit services provided by agreement or arrangement 1063 
with the state or any political subdivision of the state, dial-a-ride 1064 
services or services provided in connection with funerals; 1065 
(KK) Pet grooming and pet boarding services, except if such services 1066 
are provided as an integral part of professional veterinary services, 1067 
and pet obedience services; 1068 
(LL) Services in connection with a cosmetic medical procedure. For 1069 
purposes of this subparagraph, "cosmetic medical procedure" means 1070 
any medical procedure performed on an individual that is directed at 1071 
improving the individual's appearance and that does not meaningfully 1072 
promote the proper function of the body or prevent or treat illness or 1073 
disease. "Cosmetic medical procedure" includes, but is not limited to, 1074 
cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 1075 
tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 1076 
skin resurfacing, laser treatment of leg veins and sclerotherapy. 1077  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	35 of 54 
 
"Cosmetic medical procedure" does not include reconstructive surgery. 1078 
"Reconstructive surgery" includes any surgery performed on abnormal 1079 
structures caused by or related to congenital defects, developmental 1080 
abnormalities, trauma, infection, tumors or disease, including 1081 
procedures to improve function or give a more normal appearance; 1082 
(MM) Manicure services, pedicure services and all other nail 1083 
services, regardless of where performed, including airbrushing, fills, 1084 
full sets, nail sculpting, paraffin treatments and polishes; 1085 
(NN) Spa services, regardless of where performed, including body 1086 
waxing and wraps, peels, scrubs and facials; and 1087 
(OO) Car wash services, including coin-operated car washes. 1088 
(38) "Media payroll services company" means a retailer whose 1089 
principal business activity is the management and payment of 1090 
compensation, fringe benefits, workers' compensation, payroll taxes or 1091 
assessments to individuals providing services to an eligible production 1092 
company pursuant to section 12-217jj. 1093 
(39) "Certified competitive video service" means video 1094 
programming service provided through wireline facilities, a portion of 1095 
which are located in the public right-of-way, without regard to 1096 
delivery technology, including Internet protocol technology. "Certified 1097 
competitive video service" does not include any video programming 1098 
provided by a commercial mobile service provider, as defined in 47 1099 
USC 332(d); any video programming provided as part of community 1100 
antenna television service; any video programming provided as part 1101 
of, and via, a service that enables users to access content, information, 1102 
electronic mail or other services over the Internet. 1103 
(40) "Directory assistance" means an ancillary service of providing 1104 
telephone number information or address information. 1105 
(41) "Vertical service" means an ancillary service that is offered in 1106 
connection with one or more telecommunications services, offering 1107  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	36 of 54 
 
advanced calling features that allow customers to identify callers and 1108 
to manage multiple calls and call connections, including conference 1109 
bridging services. 1110 
(42) "Bed and breakfast establishment" means any private operator-1111 
occupied house, other than a hotel, [or] lodging house or short-term 1112 
rental property, with twelve or fewer rooms in which persons are 1113 
lodged for hire and a full morning meal is included in the rent. 1114 
(43) "Short-term rental property" means any dwelling unit, other 1115 
than a hotel, lodging house or bed and breakfast establishment, in 1116 
which a guest is lodged for hire, with or without meals, pursuant to a 1117 
short-term rental transaction. For the purposes of this subdivision, 1118 
"dwelling unit", "guest" and "short-term rental transaction" have the 1119 
same meanings as provided in section 1 of this act. 1120 
(b) Wherever in this chapter reference is made to the sale of tangible 1121 
personal property or services, it shall be construed to include sales 1122 
described in subdivision (2) of subsection (a) of this section, except as 1123 
may be specifically provided to the contrary.  1124 
Sec. 9. Section 12-408 of the general statutes is repealed and the 1125 
following is substituted in lieu thereof (Effective July 1, 2019, and 1126 
applicable to sales occurring on or after July 1, 2019): 1127 
(1) (A) For the privilege of making any sales, as defined in 1128 
subdivision (2) of subsection (a) of section 12-407, as amended by this 1129 
act, at retail, in this state for a consideration, a tax is hereby imposed 1130 
on all retailers at the rate of six and thirty-five-hundredths per cent of 1131 
the gross receipts of any retailer from the sale of all tangible personal 1132 
property sold at retail or from the rendering of any services 1133 
constituting a sale in accordance with subdivision (2) of subsection (a) 1134 
of section 12-407, as amended by this act, except, in lieu of said rate of 1135 
six and thirty-five-hundredths per cent, the rates provided in 1136 
subparagraphs (B) to (H), inclusive, of this subdivision; 1137 
(B) (i) At a rate of fifteen per cent with respect to each transfer of 1138  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	37 of 54 
 
occupancy, from the total amount of rent received by a hotel or 1139 
lodging house for the first period not exceeding thirty consecutive 1140 
calendar days; 1141 
(ii) At a rate of eleven per cent with respect to each transfer of 1142 
occupancy, from the total amount of rent received by a bed and 1143 
breakfast establishment for the first period not exceeding thirty 1144 
consecutive calendar days; 1145 
(iii) At a rate of five per cent with respect to each transfer of 1146 
occupancy to a guest, as such term is defined in section 1 of this act, 1147 
from the total amount of rent received by a short-term rental operator, 1148 
as such term is defined in said section, for the first period not 1149 
exceeding thirty consecutive calendar days;  1150 
(C) With respect to the sale of a motor vehicle to any individual who 1151 
is a member of the armed forces of the United States and is on full-time 1152 
active duty in Connecticut and who is considered, under 50 App USC 1153 
574, a resident of another state, or to any such individual and the 1154 
spouse thereof, at a rate of four and one-half per cent of the gross 1155 
receipts of any retailer from such sales, provided such retailer requires 1156 
and maintains a declaration by such individual, prescribed as to form 1157 
by the commissioner and bearing notice to the effect that false 1158 
statements made in such declaration are punishable, or other evidence, 1159 
satisfactory to the commissioner, concerning the purchaser's state of 1160 
residence under 50 App USC 574; 1161 
(D) (i) With respect to the sales of computer and data processing 1162 
services occurring on or after July 1, 2001, at the rate of one per cent, 1163 
and (ii) with respect to sales of Internet access services, on and after 1164 
July 1, 2001, such services shall be exempt from such tax; 1165 
(E) (i) With respect to the sales of labor that is otherwise taxable 1166 
under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 1167 
section 12-407, as amended by this act, on existing vessels and repair or 1168 
maintenance services on vessels occurring on and after July 1, 1999, 1169 
such services shall be exempt from such tax; 1170  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	38 of 54 
 
(ii) With respect to the sale of a vessel, a motor for a vessel or a 1171 
trailer used for transporting a vessel, at the rate of two and ninety-1172 
nine-hundredths per cent, except that the sale of a vessel shall be 1173 
exempt from such tax if such vessel is docked in this state for sixty or 1174 
fewer days in a calendar year; 1175 
(F) With respect to patient care services for which payment is 1176 
received by the hospital on or after July 1, 1999, and prior to July 1, 1177 
2001, at the rate of five and three-fourths per cent and on and after July 1178 
1, 2001, such services shall be exempt from such tax; 1179 
(G) With respect to the rental or leasing of a passenger motor 1180 
vehicle for a period of thirty consecutive calendar days or less, at a rate 1181 
of nine and thirty-five-hundredths per cent; 1182 
(H) With respect to the sale of (i) a motor vehicle for a sales price 1183 
exceeding fifty thousand dollars, at a rate of seven and three-fourths 1184 
per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1185 
for a sales price exceeding five thousand dollars, at a rate of seven and 1186 
three-fourths per cent on the entire sales price, and (iii) an article of 1187 
clothing or footwear intended to be worn on or about the human body, 1188 
a handbag, luggage, umbrella, wallet or watch for a sales price 1189 
exceeding one thousand dollars, at a rate of seven and three-fourths 1190 
per cent on the entire sales price. For purposes of this subparagraph, 1191 
"motor vehicle" has the meaning provided in section 14-1, but does not 1192 
include a motor vehicle subject to the provisions of subparagraph (C) 1193 
of this subdivision, a motor vehicle having a gross vehicle weight 1194 
rating over twelve thousand five hundred pounds, or a motor vehicle 1195 
having a gross vehicle weight rating of twelve thousand five hundred 1196 
pounds or less that is not used for private passenger purposes, but is 1197 
designed or used to transport merchandise, freight or persons in 1198 
connection with any business enterprise and issued a commercial 1199 
registration or more specific type of registration by the Department of 1200 
Motor Vehicles; 1201 
(I) The rate of tax imposed by this chapter shall be applicable to all 1202  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	39 of 54 
 
retail sales upon the effective date of such rate, except that a new rate 1203 
which represents an increase in the rate applicable to the sale shall not 1204 
apply to any sales transaction wherein a binding sales contract without 1205 
an escalator clause has been entered into prior to the effective date of 1206 
the new rate and delivery is made within ninety days after the effective 1207 
date of the new rate. For the purposes of payment of the tax imposed 1208 
under this section, any retailer of services taxable under subdivision 1209 
(37) of subsection (a) of section 12-407, as amended by this act, who 1210 
computes taxable income, for purposes of taxation under the Internal 1211 
Revenue Code of 1986, or any subsequent corresponding internal 1212 
revenue code of the United States, as from time to time amended, on 1213 
an accounting basis which recognizes only cash or other valuable 1214 
consideration actually received as income and who is liable for such 1215 
tax only due to the rendering of such services may make payments 1216 
related to such tax for the period during which such income is 1217 
received, without penalty or interest, without regard to when such 1218 
service is rendered; 1219 
(J) (i) For calendar quarters ending on or after September 30, 2019, 1220 
the commissioner shall deposit into the regional planning incentive 1221 
account, established pursuant to section 4-66k, six and seven-tenths 1222 
per cent of the amounts received by the state from the tax imposed 1223 
under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 1224 
subdivision and ten and seven-tenths per cent of the amounts received 1225 
by the state from the tax imposed under subparagraph (G) of this 1226 
subdivision; 1227 
(ii) For calendar quarters ending on or after September 30, 2018, the 1228 
commissioner shall deposit into the Tourism Fund established under 1229 
section 10-395b ten per cent of the amounts received by the state from 1230 
the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1231 
(B)(ii) of this subdivision; 1232 
(K) For calendar months commencing on or after July 1, 2021, the 1233 
commissioner shall deposit into the municipal revenue sharing 1234 
account established pursuant to section 4-66l seven and nine-tenths per 1235  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	40 of 54 
 
cent of the amounts received by the state from the tax imposed under 1236 
subparagraph (A) of this subdivision; and 1237 
(L) (i) For calendar months commencing on or after July 1, 2017, the 1238 
commissioner shall deposit into the Special Transportation Fund 1239 
established under section 13b-68 seven and nine-tenths per cent of the 1240 
amounts received by the state from the tax imposed under 1241 
subparagraph (A) of this subdivision;  1242 
(ii) For calendar months commencing on or after July 1, 2018, but 1243 
prior to July 1, 2019, the commissioner shall deposit into the Special 1244 
Transportation Fund established under section 13b-68 eight per cent of 1245 
the amounts received by the state from the tax imposed under 1246 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1247 
vehicle; 1248 
(iii) For calendar months commencing on or after July 1, 2019, but 1249 
prior to July 1, 2020, the commissioner shall deposit into the Special 1250 
Transportation Fund established under section 13b-68 thirty-three per 1251 
cent of the amounts received by the state from the tax imposed under 1252 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1253 
vehicle; 1254 
(iv) For calendar months commencing on or after July 1, 2020, but 1255 
prior to July 1, 2021, the commissioner shall deposit into the Special 1256 
Transportation Fund established under section 13b-68 fifty-six per cent 1257 
of the amounts received by the state from the tax imposed under 1258 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1259 
vehicle; 1260 
(v) For calendar months commencing on or after July 1, 2021, but 1261 
prior to July 1, 2022, the commissioner shall deposit into the Special 1262 
Transportation Fund established under section 13b-68 seventy-five per 1263 
cent of the amounts received by the state from the tax imposed under 1264 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1265 
vehicle; [and] 1266  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	41 of 54 
 
(vi) For calendar months commencing on or after July 1, 2022, the 1267 
commissioner shall deposit into the Special Transportation Fund 1268 
established under section 13b-68 one hundred per cent of the amounts 1269 
received by the state from the tax imposed under subparagraphs (A) 1270 
and (H) of this subdivision on the sale of a motor vehicle; and 1271 
(vii) For calendar months commencing on or after July 1, 2019, the 1272 
commissioner shall deposit into the Housing Trust Fund established 1273 
under section 8-336o fifty per cent of the amounts received by the state 1274 
from the tax imposed under subparagraph (B)(iii) of this subdivision. 1275 
(2) (A) Reimbursement for the tax hereby imposed shall be collected 1276 
by the retailer from the consumer and such tax reimbursement, termed 1277 
"tax" in this and the following subsections, shall be paid by the 1278 
consumer to the retailer and each retailer shall collect from the 1279 
consumer the full amount of the tax imposed by this chapter or an 1280 
amount equal as nearly as possible or practicable to the average 1281 
equivalent thereof. Such tax shall be a debt from the consumer to the 1282 
retailer, when so added to the original sales price, and shall be 1283 
recoverable at law in the same manner as other debts except as 1284 
provided in section 12-432a. The amount of tax reimbursement, when 1285 
so collected, shall be deemed to be a special fund in trust for the state 1286 
of Connecticut. 1287 
(B) Whenever such tax, payable by the consumer (i) with respect to 1288 
a charge account or credit sale occurring on or after July 1, 1984, is 1289 
remitted by the retailer to the commissioner and such sale as an 1290 
account receivable is determined to be worthless and is actually 1291 
written off as uncollectible for federal income tax purposes, or (ii) to a 1292 
retailer who computes taxable income, for purposes of taxation under 1293 
the Internal Revenue Code of 1986, or any subsequent corresponding 1294 
internal revenue code of the United States, as from time to time 1295 
amended, on the cash basis method of accounting with respect to a sale 1296 
occurring on or after July 1, 1989, is remitted by the retailer to the 1297 
commissioner and such sale as an account receivable is determined to 1298 
be worthless, the amount of such tax remitted may be credited against 1299  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	42 of 54 
 
the tax due on the sales tax return filed by the retailer for the monthly 1300 
or quarterly period, whichever is applicable, next following the period 1301 
in which such amount is actually so written off, but in no event shall 1302 
such credit be allowed later than three years following the date such 1303 
tax is remitted, unless the credit relates to a period for which a waiver 1304 
is given pursuant to subsection (g) of section 12-415. The commissioner 1305 
shall, by regulations adopted in accordance with chapter 54, provide 1306 
standards for proving any such claim for credit. If any account with 1307 
respect to which such credit is allowed is thereafter collected by the 1308 
retailer in whole or in part, the amount so collected shall be included 1309 
in the sales tax return covering the period in which such collection 1310 
occurs. The tax applicable in any such case shall be determined in 1311 
accordance with the rate of sales tax in effect at the time of the original 1312 
sale. 1313 
(C) (i) Any person required to collect tax in accordance with this 1314 
subsection who demonstrates to the satisfaction of the Commissioner 1315 
of Revenue Services by July first of any year that, in any two quarterly 1316 
periods as described in section 12-414, within the most recent four 1317 
consecutive quarterly periods, such person was a materialman as such 1318 
term is used in chapter 847, who has at least fifty per cent of such 1319 
person's sales of building materials to contractors, subcontractors or 1320 
repairmen for the improvement of real property, and is authorized by 1321 
said chapter to file a mechanic's lien upon such real property and 1322 
improvement shall, with respect to such sales made through the 1323 
quarterly period ending the succeeding June thirtieth, collect tax due 1324 
on such sales, and on sales to such contractors, subcontractors or 1325 
repairmen of services described in subdivision (2) of subsection (a) of 1326 
section 12-407, as amended by this act,  with respect to such building 1327 
materials, for such purpose and made during such July first through 1328 
June thirtieth period, at the time and to the extent that such person 1329 
receives the receipts from, or consideration for, such sales from such 1330 
contractors, subcontractors or repairmen, provided if such person 1331 
receives a portion of such receipts or consideration, such person shall 1332 
collect the tax due on such portion at the time the portion is received. 1333  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	43 of 54 
 
The taxes imposed by this chapter on such receipts and consideration 1334 
shall be deemed imposed, solely for purposes of determining when 1335 
such person is required to collect and pay over such taxes to the 1336 
commissioner under section 12-414, when such person has received 1337 
payment of such receipts or consideration in money, or money's worth, 1338 
from such contractor, subcontractor or repairman. A contractor, 1339 
subcontractor or repairman who purchases building materials or 1340 
services from such person pursuant to this subparagraph shall, at the 1341 
time such contractor, subcontractor or repairman pays any portion of 1342 
the purchase price, pay to the person the tax due on the portion of the 1343 
purchase price so paid. 1344 
(ii) In the event that a materialman described in this subparagraph 1345 
factors any portion of such materialman's receivables, such 1346 
materialman shall be deemed to have received payment of such 1347 
receipts or consideration in money or money's worth, from the 1348 
contractor, subcontractor or repairman and shall be required to pay 1349 
over tax on such sale with the next return due, with a credit against 1350 
such tax for any tax already paid over with respect to such sale. Any 1351 
such amount of tax paid over shall be on account of the tax required to 1352 
be collected on the sale to which it relates and such materialman may 1353 
take a credit against any tax paid by such contractor, subcontractor or 1354 
repairman in the future on such sale, to ensure that tax paid over with 1355 
respect to such sale does not exceed the amount of tax imposed on 1356 
such sale as if the entire purchase price had been paid at the time of 1357 
sale. 1358 
(iii) A materialman described in this subparagraph who has not 1359 
collected the tax due on the full purchase price for a sale described in 1360 
this subparagraph from a contractor, subcontractor or repairman 1361 
within one year from the date of such sale, shall pay over to the 1362 
commissioner the tax due on any balance of such full purchase price 1363 
with such materialman's return for the period which includes the date 1364 
which is one year after the date of such sale. 1365 
(iv) The commissioner may assess additional tax due with respect to 1366  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	44 of 54 
 
a sale described in this subparagraph not later than three years from 1367 
the date the tax is required to be paid over to the commissioner 1368 
pursuant to this subparagraph, and in the case of a wilfully false or 1369 
fraudulent return with intent to evade the tax, or where no return has 1370 
been filed such taxpayer shall be subject to the provisions of section 12-1371 
428. 1372 
(D) In the case of a sale by a producer or wholesaler of newspapers 1373 
to a vendor who is not otherwise required to obtain a permit under 1374 
this chapter, such producer or wholesaler shall collect the sales tax on 1375 
such newspapers at the point of transfer to such vendor. Such tax shall 1376 
be based on the stated retail price of such newspapers. Such vendor 1377 
may add an amount to the price of the newspapers equal to the 1378 
amount paid as sales tax to the producer or wholesaler and such 1379 
vendor shall not be required to remit such amount to the state. 1380 
(3) For the purpose of adding and collecting the tax imposed by this 1381 
chapter, or an amount equal as nearly as possible or practicable to the 1382 
average equivalent thereof, by the retailer from the consumer the 1383 
following bracket system shall be in force and effect as follows: 1384 
T1  Amount of Sale 	Amount of Tax 
T2  $0.00 to $0.07 inclusive 	No Tax 
T3  .08 to     .23 inclusive 	1 cent 
T4  .24 to     .39 inclusive 	2 cents 
T5  .40 to     .55 inclusive 	3 cents 
T6  .56 to     .70 inclusive 	4 cents 
T7  .71 to     .86 inclusive 	5 cents 
T8  .87 to   1.02 inclusive 	6 cents 
T9  1.03 to   1.18 inclusive 	7 cents 
 
On all sales above $1.18, the tax shall be computed at the rate of six 1385 
and thirty-five-hundredths per cent. 1386 
(4) No retailer shall advertise or hold out or state to the public or to 1387  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	45 of 54 
 
any consumer, directly or indirectly, that the tax or any part thereof 1388 
will be assumed or absorbed by the retailer or that it will not be added 1389 
to the sales price of the property sold or that, if added, it or any part 1390 
thereof will be refunded. Under the provisions of this section, 1391 
however, a retailer may advertise the sale of tangible personal 1392 
property by any of the following methods: By stating the sales price 1393 
alone without reference to the tax; by stating separately the sales price 1394 
and the amount of tax to be collected thereon; by stating the sales price 1395 
"plus tax" or "exclusive of tax" or by stating a sales price which 1396 
includes the tax, together with the words "tax included" or "tax incl."; 1397 
provided the retailer in the case of all such sales shall maintain his 1398 
records to show separately the actual price of such sales and the 1399 
amount of the tax paid thereon; and provided such retailer, if 1400 
requested, shall furnish the consumer with a sales slip or other like 1401 
evidence of the sale, showing the tax separately computed thereon. 1402 
Any person violating any provision of this subsection shall be fined 1403 
five hundred dollars for each offense. 1404 
(5) No retailer shall exhibit or display on his premises any notice, 1405 
sign or other advertising matter tending to mislead the public in 1406 
connection with the imposition or collection of the tax. The 1407 
Commissioner of Revenue Services may approve a form of notice for 1408 
the purpose of explaining the operation of the tax. 1409 
(6) The Commissioner of Revenue Services shall adopt regulations, 1410 
in accordance with chapter 54, establishing a procedure for 1411 
determination of qualifications with respect to the reduced rate of sales 1412 
tax in the case of certain sales of motor vehicles to members of the 1413 
armed forces as provided in subsection (1) of this section. 1414 
(7) For purposes of the tax imposed by this chapter, with respect to 1415 
toll telephone service paid by inserting coins in coin-operated 1416 
telephones, the tax shall be computed to the nearest multiple of five 1417 
cents, except if the tax is midway between multiples of five cents, the 1418 
next higher multiple shall apply.  1419  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	46 of 54 
 
Sec. 10. Section 12-411 of the general statutes is repealed and the 1420 
following is substituted in lieu thereof (Effective July 1, 2019, and 1421 
applicable to sales occurring on or after July 1, 2019): 1422 
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1423 
consumption or any other use in this state of tangible personal 1424 
property purchased from any retailer for storage, acceptance, 1425 
consumption or any other use in this state, the acceptance or receipt of 1426 
any services constituting a sale in accordance with subdivision (2) of 1427 
subsection (a) of section 12-407, as amended by this act, purchased 1428 
from any retailer for consumption or use in this state, or the storage, 1429 
acceptance, consumption or any other use in this state of tangible 1430 
personal property which has been manufactured, fabricated, 1431 
assembled or processed from materials by a person, either within or 1432 
without this state, for storage, acceptance, consumption or any other 1433 
use by such person in this state, to be measured by the sales price of 1434 
materials, at the rate of six and thirty-five-hundredths per cent of the 1435 
sales price of such property or services, except, in lieu of said rate of six 1436 
and thirty-five-hundredths per cent; 1437 
(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or 1438 
lodging house for the first period not exceeding thirty consecutive 1439 
calendar days; 1440 
(ii) At a rate of eleven per cent of the rent paid to a bed and 1441 
breakfast establishment for the first period not exceeding thirty 1442 
consecutive calendar days; 1443 
(iii) At a rate of five per cent of the rent paid to a short-term rental 1444 
operator, as such term is defined in section 1 of this act, for the first 1445 
period not exceeding thirty consecutive calendar days; 1446 
(C) With respect to the storage, acceptance, consumption or use in 1447 
this state of a motor vehicle purchased from any retailer for storage, 1448 
acceptance, consumption or use in this state by any individual who is a 1449 
member of the armed forces of the United States and is on full-time 1450 
active duty in Connecticut and who is considered, under 50 App USC 1451  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	47 of 54 
 
574, a resident of another state, or to any such individual and the 1452 
spouse of such individual at a rate of four and one-half per cent of the 1453 
sales price of such vehicle, provided such retailer requires and 1454 
maintains a declaration by such individual, prescribed as to form by 1455 
the commissioner and bearing notice to the effect that false statements 1456 
made in such declaration are punishable, or other evidence, 1457 
satisfactory to the commissioner, concerning the purchaser's state of 1458 
residence under 50 App USC 574; 1459 
(D) (i) With respect to the acceptance or receipt in this state of labor 1460 
that is otherwise taxable under subparagraph (C) or (G) of subdivision 1461 
(2) of subsection (a) of section 12-407, as amended by this act, on 1462 
existing vessels and repair or maintenance services on vessels 1463 
occurring on and after July 1, 1999, such services shall be exempt from 1464 
such tax; 1465 
(ii) (I) With respect to the storage, acceptance or other use of a vessel 1466 
in this state, at the rate of two and ninety-nine-hundredths per cent, 1467 
except that such storage, acceptance or other use shall be exempt from 1468 
such tax if such vessel is docked in this state for sixty or fewer days in 1469 
a calendar year; 1470 
(II) With respect to the storage, acceptance or other use of a motor 1471 
for a vessel or a trailer used for transporting a vessel in this state, at the 1472 
rate of two and ninety-nine-hundredths per cent; 1473 
(E) (i) With respect to the acceptance or receipt in this state of 1474 
computer and data processing services purchased from any retailer for 1475 
consumption or use in this state occurring on or after July 1, 2001, at 1476 
the rate of one per cent of such services, and (ii) with respect to the 1477 
acceptance or receipt in this state of Internet access services, on and 1478 
after July 1, 2001, such services shall be exempt from such tax; 1479 
(F) With respect to the acceptance or receipt in this state of patient 1480 
care services purchased from any retailer for consumption or use in 1481 
this state for which payment is received by the hospital on or after July 1482 
1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1483  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	48 of 54 
 
per cent and on and after July 1, 2001, such services shall be exempt 1484 
from such tax; 1485 
(G) With respect to the rental or leasing of a passenger motor 1486 
vehicle for a period of thirty consecutive calendar days or less, at a rate 1487 
of nine and thirty-five-hundredths per cent; 1488 
(H) With respect to the acceptance or receipt in this state of (i) a 1489 
motor vehicle for a sales price exceeding fifty thousand dollars, at a 1490 
rate of seven and three-fourths per cent on the entire sales price, (ii) 1491 
jewelry, whether real or imitation, for a sales price exceeding five 1492 
thousand dollars, at a rate of seven and three-fourths per cent on the 1493 
entire sales price, and (iii) an article of clothing or footwear intended to 1494 
be worn on or about the human body, a handbag, luggage, umbrella, 1495 
wallet or watch for a sales price exceeding one thousand dollars, at a 1496 
rate of seven and three-fourths per cent on the entire sales price. For 1497 
purposes of this subparagraph, "motor vehicle" has the meaning 1498 
provided in section 14-1, but does not include a motor vehicle subject 1499 
to the provisions of subparagraph (C) of this subdivision, a motor 1500 
vehicle having a gross vehicle weight rating over twelve thousand five 1501 
hundred pounds, or a motor vehicle having a gross vehicle weight 1502 
rating of twelve thousand five hundred pounds or less that is not used 1503 
for private passenger purposes, but is designed or used to transport 1504 
merchandise, freight or persons in connection with any business 1505 
enterprise and issued a commercial registration or more specific type 1506 
of registration by the Department of Motor Vehicles; 1507 
(I) (i) For calendar quarters ending on or after September 30, 2019, 1508 
the commissioner shall deposit into the regional planning incentive 1509 
account, established pursuant to section 4-66k, six and seven-tenths 1510 
per cent of the amounts received by the state from the tax imposed 1511 
under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 1512 
subdivision and ten and seven-tenths per cent of the amounts received 1513 
by the state from the tax imposed under subparagraph (G) of this 1514 
subdivision; 1515  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	49 of 54 
 
(ii) For calendar quarters ending on or after September 30, 2018, the 1516 
commissioner shall deposit into the Tourism Fund established under 1517 
section 10-395b ten per cent of the amounts received by the state from 1518 
the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1519 
(B)(ii) of this subdivision; 1520 
(J) For calendar months commencing on or after July 1, 2021, the 1521 
commissioner shall deposit into said municipal revenue sharing 1522 
account seven and nine-tenths per cent of the amounts received by the 1523 
state from the tax imposed under subparagraph (A) of this 1524 
subdivision; and 1525 
(K) (i) For calendar months commencing on or after July 1, 2017, the 1526 
commissioner shall deposit into said Special Transportation Fund 1527 
seven and nine-tenths per cent of the amounts received by the state 1528 
from the tax imposed under subparagraph (A) of this subdivision; 1529 
(ii) For calendar months commencing on or after July 1, 2018, but 1530 
prior to July 1, 2019, the commissioner shall deposit into the Special 1531 
Transportation Fund established under section 13b-68 eight per cent of 1532 
the amounts received by the state from the tax imposed under 1533 
subparagraphs (A) and (H) of this subdivision on the acceptance or 1534 
receipt in this state of a motor vehicle; 1535 
(iii) For calendar months commencing on or after July 1, 2019, but 1536 
prior to July 1, 2020, the commissioner shall deposit into the Special 1537 
Transportation Fund established under section 13b-68 thirty-three per 1538 
cent of the amounts received by the state from the tax imposed under 1539 
subparagraphs (A) and (H) of this subdivision on the acceptance or 1540 
receipt in this state of a motor vehicle; 1541 
(iv) For calendar months commencing on or after July 1, 2020, but 1542 
prior to July 1, 2021, the commissioner shall deposit into the Special 1543 
Transportation Fund established under section 13b-68 fifty-six per cent 1544 
of the amounts received by the state from the tax imposed under 1545 
subparagraphs (A) and (H) of this subdivision on the acceptance or 1546 
receipt in this state of a motor vehicle; 1547  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	50 of 54 
 
(v) For calendar months commencing on or after July 1, 2021, but 1548 
prior to July 1, 2022, the commissioner shall deposit into the Special 1549 
Transportation Fund established under section 13b-68 seventy-five per 1550 
cent of the amounts received by the state from the tax imposed under 1551 
subparagraphs (A) and (H) of this subdivision on the acceptance or 1552 
receipt in this state of a motor vehicle; [and] 1553 
(vi) For calendar months commencing on or after July 1, 2022, the 1554 
commissioner shall deposit into the Special Transportation Fund 1555 
established under section 13b-68 one hundred per cent of the amounts 1556 
received by the state from the tax imposed under subparagraphs (A) 1557 
and (H) of this subdivision on the acceptance or receipt in this state of 1558 
a motor vehicle; and 1559 
(vii) For calendar months commencing on or after July 1, 2019, the 1560 
commissioner shall deposit into the Housing Trust Fund established 1561 
under section 8-336o fifty per cent of the amounts received by the state 1562 
from the tax imposed under subparagraph (B)(iii) of this subdivision. 1563 
(2) Every person storing, accepting, consuming or otherwise using 1564 
in this state services or tangible personal property purchased from a 1565 
retailer for storage, acceptance, consumption or any other use in this 1566 
state and every person storing, accepting, consuming or otherwise 1567 
using in this state tangible personal property which has been 1568 
manufactured, fabricated, assembled or processed from materials 1569 
purchased from a retailer by such person, either within or without this 1570 
state, for storage, acceptance, consumption or any other use by such 1571 
person in this state is liable for the tax. Such person's liability is not 1572 
extinguished until the tax has been paid to this state, except that a 1573 
receipt from a retailer engaged in business in this state or from a 1574 
retailer who is authorized by the commissioner, under such 1575 
regulations as the commissioner may prescribe, to collect the tax and 1576 
who is, for the purposes of this chapter relating to the use tax, 1577 
regarded as a retailer engaged in business in this state, given to the 1578 
purchaser pursuant to subdivision (3) of this section is sufficient to 1579 
relieve the purchaser from further liability for the tax to which the 1580  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	51 of 54 
 
receipt refers. 1581 
(3) Every retailer engaged in business in this state and making sales 1582 
of services or of tangible personal property for storage, acceptance, 1583 
consumption or any other use in this state, not exempted under this 1584 
chapter, shall, at the time of making a sale or, if the storage, 1585 
acceptance, consumption or other use is not then taxable hereunder, at 1586 
the time the storage, acceptance, consumption or use becomes taxable, 1587 
collect the use tax from the purchaser and give to the purchaser a 1588 
receipt therefor in the manner and form prescribed by the 1589 
commissioner. For the purpose of uniformity of tax collection by the 1590 
retailer the tax brackets set forth in subdivision (3) of section 12-408, as 1591 
amended by this act,  pertaining to the sales tax shall be employed in 1592 
the computation of the tax imposed by this section. 1593 
(4) The tax required to be collected by the retailer constitutes a debt 1594 
owed to the retailer by the person purchasing tangible personal 1595 
property or services from such retailer. The amount of tax, when so 1596 
collected, shall be deemed to be a special fund in trust for the state of 1597 
Connecticut. 1598 
(5) The provisions of subdivision (4) of section 12-408, as amended 1599 
by this act, pertaining to the sales tax shall apply with equal force to 1600 
the use tax. 1601 
(6) The tax required to be collected by the retailer from the 1602 
purchaser shall be displayed separately from the list price, the price 1603 
advertised in the premises, the marked price, or other price on the 1604 
sales check or other proof of sales. 1605 
(7) Any person violating the provisions of subdivision (3), (5) or (6) 1606 
of this section shall be fined five hundred dollars for each offense. 1607 
(8) Every retailer selling services or tangible personal property for 1608 
storage, acceptance, consumption or any other use in this state shall 1609 
register with the commissioner and give the name and address of all 1610 
agents operating in this state, the location of all distribution or sales 1611  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	52 of 54 
 
houses or offices or other places of business in this state and such other 1612 
information as the commissioner may require. 1613 
(9) For the purpose of the proper administration of this chapter and 1614 
to prevent evasion of the use tax and the duty to collect the use tax, it 1615 
shall be presumed that services or tangible personal property sold by 1616 
any person for delivery in this state is sold for storage, acceptance, 1617 
consumption or other use in this state until the contrary is established. 1618 
The burden of proving the contrary is upon the person who makes the 1619 
sale unless such person takes from the purchaser a certificate to the 1620 
effect that the services or property is purchased for resale. 1621 
(10) The certificate relieves the person selling the services or 1622 
property from the burden of proof only if taken in good faith from a 1623 
person who is engaged in the business of selling services or tangible 1624 
personal property and who holds the permit provided for by section 1625 
12-409 and who, at the time of purchasing the services or tangible 1626 
personal property, intends to sell it in the regular course of business or 1627 
is unable to ascertain at the time of purchase whether the service or 1628 
property will be sold or will be used for some other purpose. 1629 
(11) The certificate shall be signed by and bear the name and 1630 
address of the purchaser, shall indicate the number of the permit 1631 
issued to the purchaser and shall indicate the general character of the 1632 
service or tangible personal property sold by the purchaser in the 1633 
regular course of business. The certificate shall be substantially in such 1634 
form as the commissioner may prescribe. 1635 
(12) (A) If a purchaser who gives a certificate makes any storage or 1636 
use of the service or property other than retention, demonstration or 1637 
display while holding it for sale in the regular course of business, the 1638 
storage or use is taxable as of the time the service or property is first so 1639 
stored or used. 1640 
(B) Notwithstanding the provisions of subparagraph (A) of this 1641 
subdivision, any storage or use by a certificated air carrier of an aircraft 1642 
for purposes other than retention, demonstration or display while 1643  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	53 of 54 
 
holding it for sale in the regular course of business shall not be deemed 1644 
a taxable storage or use by such carrier as of the time the aircraft is first 1645 
stored or used by such carrier, irrespective of the classification of such 1646 
aircraft on the balance sheet of such carrier for accounting and tax 1647 
purposes. 1648 
(13) It shall be presumed that tangible personal property shipped or 1649 
brought to this state by the purchaser was purchased from a retailer 1650 
for storage, use or other consumption in this state. 1651 
(14) (A) For the purpose of the proper administration of this chapter 1652 
and to prevent evasion of the use tax, a purchase of any service 1653 
described in subdivision (37) of subsection (a) of section 12-407, as 1654 
amended by this act,  shall be considered a purchase for resale only if 1655 
the service to be resold is an integral, inseparable component part of a 1656 
service described in said subdivision that is to be subsequently sold by 1657 
the purchaser to an ultimate consumer. The purchaser of the service 1658 
for resale shall maintain, in such form as the commissioner requires, 1659 
records that substantiate: (i) From whom the service was purchased 1660 
and to whom the service was sold; (ii) the purchase price of the service; 1661 
and (iii) the nature of the service to demonstrate that the service was 1662 
an integral, inseparable component part of a service described in 1663 
subdivision (37) of subsection (a) of section 12-407, as amended by this 1664 
act, that was subsequently sold to a consumer. 1665 
(B) Notwithstanding the provisions of subparagraph (A) of this 1666 
subdivision, no purchase of a service described in subdivision (37) of 1667 
subsection (a) of section 12-407, as amended by this act,  by a purchaser 1668 
shall be considered a purchase for resale if such service is to be 1669 
subsequently sold by the purchaser to an ultimate consumer that is 1670 
affiliated with the purchaser in the manner described in subparagraph 1671 
(A) of subdivision (62) of section 12-412. 1672 
(15) For the purpose of the proper administration of this chapter 1673 
and to prevent evasion of the use tax, no purchase of any service by a 1674 
purchaser shall be considered a purchase for resale if such service is to 1675  Raised Bill No.  7177 
 
 
 
LCO No. 4429   	54 of 54 
 
be subsequently sold by the purchaser, without change, to an ultimate 1676 
consumer that is affiliated with the purchaser in the manner described 1677 
in subparagraph (A) of subdivision (62) of section 12-412.  1678 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 July 1, 2019 New section 
Sec. 2 July 1, 2019 New section 
Sec. 3 July 1, 2019 New section 
Sec. 4 July 1, 2019 New section 
Sec. 5 July 1, 2019 New section 
Sec. 6 July 1, 2019 New section 
Sec. 7 July 1, 2019 New section 
Sec. 8 July 1, 2019, and 
applicable to sales 
occurring on or after July 
1, 2019 
12-407 
Sec. 9 July 1, 2019, and 
applicable to sales 
occurring on or after July 
1, 2019 
12-408 
Sec. 10 July 1, 2019, and 
applicable to sales 
occurring on or after July 
1, 2019 
12-411 
 
Statement of Purpose:   
To (1) require that (A) short-term rental properties be licensed by the 
Commissioner of Consumer Protection, (B) short-term rental operators 
notify owners of abutting and adjacent properties regarding use of a 
dwelling unit as a short-term rental property, and (C) short-term rental 
operators maintain minimum insurance coverage and the Insurance 
Commissioner adopt regulations concerning such coverage, (2) permit 
municipalities to tax short-term rental operators, and (3) subject short-
term rental transactions to the sales and use tax. 
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, 
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is 
not underlined.]