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Connecticut House Bill HB07177

Connecticut 2019 Regular Session

Connecticut House Bill HB07177 Compare Versions

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7-General Assembly Substitute Bill No. 7177
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5+General Assembly Raised Bill No. 7177
86 January Session, 2019
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7+LCO No. 4429
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10+Referred to Committee on INSURANCE AND REAL ESTATE
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13+Introduced by:
14+(INS)
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1419 AN ACT CONCERNING SH ORT-TERM RENTAL PROPERTIES.
1520 Be it enacted by the Senate and House of Representatives in General
1621 Assembly convened:
1722
18-Section 1. (NEW) (Effective July 1, 2019) For the purposes of this 1
19-section and sections 2 to 4, inclusive, of this act: 2
23+Section 1. (NEW) (Effective July 1, 2019) (a) For the purposes of this 1
24+section and sections 2 to 5, inclusive, of this act: 2
2025 (1) "Applicant" means a person who files an application with the 3
2126 commissioner pursuant to section 2 of this act; 4
2227 (2) "Commissioner" means the Commissioner of Consumer 5
2328 Protection; 6
2429 (3) "Dwelling unit" has the same meaning as provided in section 7
2530 47a-1 of the general statutes; 8
26-(4) "Guest" means an individual, other than the owner, lessee, lessor, 9
27-sublessee or sublessor of a short-term rental property, who occupies a 10
28-short-term rental property pursuant to a short-term rental transaction; 11
29-(5) "Short-term rental operator" means the owner, lessee or 12
30-sublessee of a short-term rental property who offers the short-term 13
31-rental property for occupancy by a guest pursuant to a short-term 14
32-rental transaction; 15
33-(6) "Short-term rental platform" means any platform, including, but 16 Substitute Bill No. 7177
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40-not limited to, an Internet web site, that (A) allows a short-term rental 17
41-operator to offer a dwelling unit, or any portion thereof, for occupancy 18
42-as a short-term rental property, (B) allows a potential guest to arrange 19
43-payment for occupancy of a short-term rental property, whether such 20
44-guest pays directly to a short-term rental operator or through the 21
45-platform, and (C) allows the platform operator to derive revenues from 22
46-providing or maintaining the services described in this subdivision for 23
47-a short-term rental property; 24
48-(7) "Short-term rental property" means a dwelling unit, or any 25
49-portion thereof, in this state that is (A) the subject of a short-term rental 26
50-transaction, and (B) not a hotel, lodging house or bed and breakfast 27
51-establishment; and 28
52-(8) "Short-term rental transaction" means a transaction in which a 29
53-short-term rental operator offers a short-term rental property for 30
54-occupancy by a guest through a short-term rental platform for a period 31
55-of thirty consecutive calendar days or less. 32
56-Sec. 2. (NEW) (Effective July 1, 2019) (a) (1) Each short-term rental 33
57-operator or prospective short-term rental operator shall apply for a 34
58-license from the commissioner for each dwelling unit that such person 35
59-intends to operate as a short-term rental property on or after January 1, 36
60-2020. Each application for a license, or renewal of a license, pursuant to 37
61-this subsection shall be made on a form prescribed by the 38
62-commissioner. The commissioner shall require, as a precondition to 39
63-issuing or renewing a license pursuant to this subsection, that the 40
64-applicant submit to the commissioner, in a form and manner 41
65-prescribed by the commissioner, proof that the applicant: 42
66-(A) Maintains a property and casualty insurance policy that 43
67-contains the minimum provisions prescribed by the Insurance 44
68-Commissioner pursuant to section 5 of this act; 45
69-(B) Provided all notices required by section 3 of this act; and 46
70-(C) In the case of an application for renewal of a license under this 47 Substitute Bill No. 7177
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77-subsection: 48
78-(i) Maintained the insurance coverage described in subparagraph 49
79-(A) of this subdivision during the two years immediately preceding; 50
80-(ii) Paid any and all sales and use taxes due and payable to this 51
81-state, and any and all taxes due and payable to a municipality 52
82-pursuant to section 6 of this act, during the two years immediately 53
83-preceding; 54
84-(iii) Provided all notices required by section 3 of this act; and 55
85-(iv) Complied with the provisions of any ordinance enacted 56
86-pursuant to section 7 of this act during the two years immediately 57
87-preceding. 58
88-(2) Each license issued by the commissioner pursuant to this 59
89-subsection shall expire two years after its issuance. The commissioner 60
90-may refuse to issue or renew, or may suspend or revoke, any license 61
91-required by this section if the applicant for such license or renewal 62
92-engages in any conduct prohibited by this section. 63
93-(3) Not later than fifteen days after the commissioner issues or 64
94-renews a license pursuant to this subsection, the commissioner shall 65
95-send a notice, in a form and manner prescribed by the commissioner, 66
96-to the Commissioner of Revenue Services disclosing: 67
97-(A) The name of the applicant for such license or renewal; and 68
98-(B) The address of the licensed short-term rental property. 69
99-(b) If the commissioner refuses to issue or renew, or suspends or 70
100-revokes, a license pursuant to subsection (a) of this section, the 71
101-commissioner shall notify the applicant or short-term rental operator, 72
102-as applicable, of such decision, the grounds for such decision and of 73
103-such applicant's or short-term rental operator's right to request a 74
104-hearing not later than ten days after the date on which the 75 Substitute Bill No. 7177
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111-commissioner issued such notice to such applicant. If the applicant or 76
112-short-term rental operator requests a hearing within such ten-day 77
113-period, the commissioner shall conduct a hearing concerning such 78
114-refusal, suspension or revocation in accordance with the provisions of 79
115-chapter 54 of the general statutes concerning contested cases. The 80
116-applicant or short-term rental operator may appeal therefrom in 81
117-accordance with the provisions of section 4-183 of the general statutes. 82
118-(c) The Attorney General, at the request of the commissioner, is 83
119-authorized to apply in the name of this state to the Superior Court for 84
120-an order temporarily or permanently restraining and enjoining any 85
121-short-term rental operator from operating in violation of any provision 86
122-of sections 1 to 4, inclusive, of this act. 87
123-Sec. 3. (NEW) (Effective July 1, 2019) Not later than the day that an 88
124-applicant files an application with the commissioner pursuant to 89
125-section 2 of this act, the applicant shall send a notice, in a form and 90
126-manner prescribed by the commissioner, to the owner, lessor or 91
127-sublessor of the dwelling unit or short-term rental property that is the 92
128-subject of such application, and all owners, lessors, lessees, sublessors 93
129-and sublessees of abutting and adjacent dwelling units, disclosing: 94
130-(1) The name of such applicant; 95
131-(2) The address of such dwelling unit or short-term rental property; 96
132-and 97
133-(3) That such applicant has filed, or intends to file, such application. 98
134-Sec. 4. (NEW) (Effective July 1, 2019) The commissioner may adopt 99
135-regulations, in accordance with the provisions of chapter 54 of the 100
136-general statutes, to implement the provisions of sections 1 to 3, 101
137-inclusive, of this act. 102
138-Sec. 5. (NEW) (Effective July 1, 2019) The Insurance Commissioner 103
139-shall adopt regulations, in accordance with the provisions of chapter 104
140-54 of the general statutes, prescribing the minimum provisions to be 105 Substitute Bill No. 7177
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147-included in each property and casualty policy issued on or after the 106
148-effective date of such regulations covering a short-term rental 107
149-property, as defined in section 1 of this act. Such policy shall include 108
150-liability coverage of not less than one million dollars against claims for 109
151-bodily injury or death and property damage. 110
152-Sec. 6. (NEW) (Effective July 1, 2019) Any municipality may, by vote 111
153-of its legislative body or, in a municipality where the legislative body 112
154-is a town meeting, by vote of the board of selectmen, levy a tax on each 113
155-short-term rental operator operating one or more short-term rental 114
156-properties, as both terms are defined in section 1 of this act, within 115
157-such municipality, provided such tax shall not exceed an amount that 116
158-is equal to six per cent of such short-term rental operator's income 117
159-from all short-term rental transactions, as defined in section 1 of this 118
160-act, concerning such short-term rental properties during the tax year 119
161-for which such tax is levied. 120
162-Sec. 7. (NEW) (Effective July 1, 2019) Any municipality may, by vote 121
163-of its legislative body or, in a municipality where the legislative body 122
164-is a town meeting, by vote of the board of selectmen, limit the number 123
165-of days that guests may occupy a short-term rental property during a 124
166-calendar year. For the purposes of this section, "guest" and "short-term 125
167-rental property" have the same meaning as provided in section 1 of 126
168-this act. 127
169-Sec. 8. Section 12-407 of the general statutes is repealed and the 128
170-following is substituted in lieu thereof (Effective July 1, 2019, and 129
171-applicable to sales occurring on or after July 1, 2019): 130
172-(a) Whenever used in this chapter: 131
173-(1) "Person" means and includes any individual, firm, 132
174-copartnership, joint venture, association, association of persons 133
175-however formed, social club, fraternal organization, corporation, 134
176-limited liability company, foreign municipal electric utility as defined 135
177-in section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the 136 Substitute Bill No. 7177
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184-United States, this state or any political subdivision thereof or any 137
185-group or combination acting as a unit, and any other individual or 138
186-officer acting under the authority of any court in this state. 139
187-(2) "Sale" and "selling" mean and include: 140
188-(A) Any transfer of title, exchange or barter, conditional or 141
189-otherwise, in any manner or by any means whatsoever, of tangible 142
190-personal property for a consideration; 143
191-(B) Any withdrawal, except a withdrawal pursuant to a transaction 144
192-in foreign or interstate commerce, of tangible personal property from 145
193-the place where it is located for delivery to a point in this state for the 146
194-purpose of the transfer of title, exchange or barter, conditional or 147
195-otherwise, in any manner or by any means whatsoever, of the property 148
196-for a consideration; 149
197-(C) The producing, fabricating, processing, printing or imprinting of 150
198-tangible personal property for a consideration for consumers who 151
199-furnish either directly or indirectly the materials used in the 152
200-producing, fabricating, processing, printing or imprinting, including, 153
201-but not limited to, sign construction, photofinishing, duplicating and 154
202-photocopying; 155
203-(D) The furnishing and distributing of tangible personal property 156
204-for a consideration by social clubs and fraternal organizations to their 157
205-members or others; 158
206-(E) The furnishing, preparing, or serving for a consideration of food, 159
207-meals or drinks; 160
208-(F) A transaction whereby the possession of property is transferred 161
209-but the seller retains the title as security for the payment of the price; 162
210-(G) A transfer for a consideration of the title of tangible personal 163
211-property which has been produced, fabricated or printed to the special 164
212-order of the customer, or of any publication, including, but not limited 165 Substitute Bill No. 7177
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219-to, sign construction, photofinishing, duplicating and photocopying; 166
220-(H) A transfer for a consideration of the occupancy of any room or 167
221-rooms in a hotel, lodging house, [or] bed and breakfast establishment 168
222-or short-term rental property for a period of thirty consecutive 169
223-calendar days or less; 170
224-(I) The rendering of certain services, as defined in subdivision (37) 171
225-of this subsection, for a consideration, exclusive of such services 172
226-rendered by an employee for the employer; 173
227-(J) The leasing or rental of tangible personal property of any kind 174
228-whatsoever, including, but not limited to, motor vehicles, linen or 175
229-towels, machinery or apparatus, office equipment and data processing 176
230-equipment, provided for purposes of this subdivision and the 177
231-application of sales and use tax to contracts of lease or rental of 178
232-tangible personal property, the leasing or rental of any motion picture 179
233-film by the owner or operator of a motion picture theater for purposes 180
234-of display at such theater shall not constitute a sale within the meaning 181
235-of this subsection; 182
236-(K) The rendering of telecommunications service, as defined in 183
237-subdivision (26) of this subsection, for a consideration on or after 184
238-January 1, 1990, exclusive of any such service rendered by an employee 185
239-for the employer of such employee, subject to the provisions related to 186
240-telecommunications service in accordance with section 12-407a; 187
241-(L) (i) The rendering of community antenna television service, as 188
242-defined in subdivision (27) of this subsection, for a consideration on or 189
243-after January 1, 1990, exclusive of any such service rendered by an 190
244-employee for the employer of such employee. For purposes of this 191
245-chapter, "community antenna television service" includes service 192
246-provided by a holder of a certificate of cable franchise authority 193
247-pursuant to section 16-331p, and service provided by a community 194
248-antenna television company issued a certificate of video franchise 195
249-authority pursuant to section 16-331e for any service area in which it 196 Substitute Bill No. 7177
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256-was not certified to provide community antenna television service 197
257-pursuant to section 16-331 on or before October 1, 2007; 198
258-(ii) The rendering of certified competitive video service, as defined 199
259-in subdivision (38) of this subsection, for consideration on or after 200
260-October 1, 2007, exclusive of any such service rendered by an 201
261-employee for the employer of such employee; 202
262-(M) The transfer for consideration of space or the right to use any 203
263-space for the purpose of storage or mooring of any noncommercial 204
264-vessel, exclusive of dry or wet storage or mooring of such vessel 205
265-during the period commencing on the first day of October in any year 206
266-to and including the thirty-first day of May of the next succeeding 207
267-year; 208
268-(N) The sale for consideration of naming rights to any place of 209
269-amusement, entertainment or recreation within the meaning of 210
270-subdivision (3) of section 12-540; 211
271-(O) The transfer for consideration of a prepaid telephone calling 212
272-service, as defined in subdivision (34) of this subsection, and the 213
273-recharge of a prepaid telephone calling service, provided, if the sale or 214
274-recharge of a prepaid telephone calling service does not take place at 215
275-the retailer's place of business and an item is shipped by the retailer to 216
276-the customer, the sale or recharge shall be deemed to take place at the 217
277-customer's shipping address, but, if such sale or recharge does not take 218
278-place at the retailer's place of business and no item is shipped by the 219
279-retailer to the customer, the sale or recharge shall be deemed to take 220
280-place at the customer's billing address or the location associated with 221
281-the customer's mobile telephone number; and 222
282-(P) The furnishing by any person, for a consideration, of space for 223
283-storage of tangible personal property when such person is engaged in 224
284-the business of furnishing such space, but "sale" and "selling" do not 225
285-mean or include the furnishing of space which is used by a person for 226
286-residential purposes. As used in this subparagraph, "space for storage" 227 Substitute Bill No. 7177
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293-means secure areas, such as rooms, units, compartments or containers, 228
294-whether accessible from outside or from within a building, that are 229
295-designated for the use of a customer, where the customer can store and 230
296-retrieve property, including self-storage units, mini-storage units and 231
297-areas by any other name to which the customer has either unlimited 232
298-free access or free access within reasonable business hours or upon 233
299-reasonable notice to the service provider to add or remove property, 234
300-but does not mean the rental of an entire building, such as a 235
301-warehouse. For purposes of this subparagraph, furnishing space for 236
302-storage shall not include general warehousing and storage, where the 237
303-warehouse typically handles, stores and retrieves a customer's 238
304-property using the warehouse's staff and equipment and does not 239
305-allow the customer free access to the storage space and shall not 240
306-include accepting specific items of property for storage, such as 241
307-clothing at a dry cleaning establishment or golf bags at a golf club. 242
308-(3) (A) "Retail sale" or "sale at retail" means and includes a sale for 243
309-any purpose other than resale in the regular course of business of 244
310-tangible personal property or a transfer for a consideration of the 245
311-occupancy of any room or rooms in a hotel, lodging house, [or] bed 246
312-and breakfast establishment or short-term rental property for a period 247
313-of thirty consecutive calendar days or less, or the rendering of any 248
314-service described in subdivision (2) of this subsection. The delivery in 249
315-this state of tangible personal property by an owner or former owner 250
316-thereof or by a factor, if the delivery is to a consumer pursuant to a 251
317-retail sale made by a retailer not engaged in business in this state, is a 252
318-retail sale in this state by the person making the delivery. Such person 253
319-shall include the retail selling price of the property in such person's 254
320-gross receipts. 255
321-(B) "Retail sale" or "sale at retail" does not include any sale of any 256
322-tangible personal property, where, no later than one hundred twenty 257
323-days after the original sale, the original purchaser sells or becomes 258
324-contractually obligated to sell such property to a retailer who is 259
325-contractually obligated to lease such property back to such original 260 Substitute Bill No. 7177
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332-purchaser in a lease that is taxable under this chapter or the sale of 261
333-such property by the original purchaser to the retailer who is 262
334-contractually obligated to lease such property back to such original 263
335-purchaser in a lease that is taxable under this chapter. If the original 264
336-purchaser has paid sales or use tax on the original sale of such 265
337-property to the original purchaser, such original purchaser may (i) 266
338-claim a refund of such tax under the provisions of section 12-425, upon 267
339-presentation of proof satisfactory to the commissioner that the mutual 268
340-contractual obligations described in this subparagraph were 269
341-undertaken no later than one hundred twenty days after the original 270
342-sale and that such tax was paid to the original retailer on the original 271
343-sale and was remitted to the commissioner by such original retailer or 272
344-by such original purchaser, or (ii) issue at the time of such original sale 273
345-or no later than one hundred twenty days thereafter a certificate, in the 274
346-form prescribed by the commissioner, to the original retailer certifying 275
347-that the mutual contractual obligations described in this subparagraph 276
348-have been undertaken. If such certificate is issued to the original 277
349-retailer at the time of the original sale, no tax on the original sale shall 278
350-be collected by the original retailer from the original purchaser. If the 279
351-certificate is issued after the time of the original sale but no later than 280
352-one hundred twenty days thereafter, the original retailer shall refund 281
353-to the original purchaser the tax collected on the original sale and, if 282
354-the original retailer has previously remitted the tax to the 283
355-commissioner, the original retailer may either treat the amount so 284
356-refunded as a credit against the tax due on the return next filed under 285
357-this chapter, or claim a refund under section 12-425. If such certificate 286
358-is issued no later than one hundred twenty days after the time of the 287
359-original sale but the tangible personal property originally purchased is 288
360-not, in fact, subsequently leased by the original purchaser, such 289
361-original purchaser shall be liable for and be required to pay the tax due 290
362-on the original sale. 291
363-(4) "Storage" includes any keeping or retention in this state for any 292
364-purpose except sale in the regular course of business or subsequent use 293
365-solely outside this state of tangible personal property purchased from 294 Substitute Bill No. 7177
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372-a retailer. 295
373-(5) "Use" includes the exercise of any right or power over tangible 296
374-personal property incident to the ownership of that property, except 297
375-that it does not include the sale of that property in the regular course 298
376-of business. 299
377-(6) "Storage" and "use" do not include (A) keeping, retaining or 300
378-exercising any right or power over tangible personal property shipped 301
379-or brought into this state for the purpose of subsequently transporting 302
380-it outside the state for use thereafter solely outside the state, or for the 303
381-purpose of being processed, fabricated or manufactured into, attached 304
382-to or incorporated into, other tangible personal property to be 305
383-transported outside the state and thereafter used solely outside the 306
384-state, or (B) keeping, retaining or exercising any right or power over 307
385-tangible personal property acquired by the customer of a commercial 308
386-printer while such property is located at the premises of the 309
387-commercial printer in this state pursuant to a contract with such 310
388-printer for printing and distribution of printed material if the 311
389-commercial printer could have acquired such property without 312
390-application of tax under this chapter. 313
391-(7) "Purchase" and "purchasing" means and includes: (A) Any 314
392-transfer, exchange or barter, conditional or otherwise, in any manner 315
393-or by any means whatsoever, of tangible personal property or of the 316
394-occupancy of any room or rooms in a hotel, lodging house, [or] bed 317
395-and breakfast establishment or short-term rental property for a period 318
396-of thirty consecutive calendar days or less for a consideration; (B) a 319
397-transaction whereby the possession of property is transferred but the 320
398-seller retains the title as security for the payment of the price; (C) a 321
399-transfer for a consideration of tangible personal property which has 322
400-been produced, fabricated or printed to the special order of the 323
401-customer, or of any publication; (D) when performed outside this state 324
402-or when the customer gives a resale certificate pursuant to section 12-325
403-410, the producing, fabricating, processing, printing or imprinting of 326
404-tangible personal property for a consideration for consumers who 327 Substitute Bill No. 7177
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411-furnish either directly or indirectly the materials used in the 328
412-producing, fabricating, processing, printing or imprinting; (E) the 329
413-acceptance or receipt of any service described in any of the 330
414-subparagraphs of subdivision (2) of this subsection; (F) any leasing or 331
415-rental of tangible personal property. Wherever in this chapter 332
416-reference is made to the purchase or purchasing of tangible personal 333
417-property, it shall be construed to include purchases as described in this 334
418-subsection. 335
419-(8) (A) "Sales price" means the total amount for which tangible 336
420-personal property is sold by a retailer, the total amount of rent for 337
421-which occupancy of a room is transferred by an operator, the total 338
422-amount for which any service described in subdivision (2) of this 339
423-subsection is rendered by a retailer or the total amount of payment or 340
424-periodic payments for which tangible personal property is leased by a 341
425-retailer, valued in money, whether paid in money or otherwise, which 342
426-amount is due and owing to the retailer or operator and, subject to the 343
427-provisions of subdivision (1) of section 12-408, as amended by this act, 344
428-whether or not actually received by the retailer or operator, without 345
429-any deduction on account of any of the following: (i) The cost of the 346
430-property sold; (ii) the cost of materials used, labor or service cost, 347
431-interest charged, losses or any other expenses; (iii) for any sale 348
432-occurring on or after July 1, 1993, any charges by the retailer to the 349
433-purchaser for shipping or delivery, notwithstanding whether such 350
434-charges are separately stated in a written contract, or on a bill or 351
435-invoice rendered to such purchaser or whether such shipping or 352
436-delivery is provided by the retailer or a third party. The provisions of 353
437-subparagraph (A) (iii) of this subdivision shall not apply to any item 354
438-exempt from taxation pursuant to section 12-412. Such total amount 355
439-includes any services that are a part of the sale; except as otherwise 356
440-provided in subparagraph (B)(v) or (B)(vi) of this subdivision, any 357
441-amount for which credit is given to the purchaser by the retailer, and 358
442-all compensation and all employment-related expenses, whether or not 359
443-separately stated, paid to or on behalf of employees of a retailer of any 360
444-service described in subdivision (2) of this subsection. 361 Substitute Bill No. 7177
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451-(B) "Sales price" does not include any of the following: (i) Cash 362
452-discounts allowed and taken on sales; (ii) any portion of the amount 363
453-charged for property returned by purchasers, which upon rescission of 364
454-the contract of sale is refunded either in cash or credit, provided the 365
455-property is returned within ninety days from the date of purchase; (iii) 366
456-the amount of any tax, not including any manufacturers' or importers' 367
457-excise tax, imposed by the United States upon or with respect to retail 368
458-sales whether imposed upon the retailer or the purchaser; (iv) the 369
459-amount charged for labor rendered in installing or applying the 370
460-property sold, provided such charge is separately stated and exclusive 371
461-of such charge for any service rendered within the purview of 372
462-subparagraph (I) of subdivision (37) of this subsection; (v) unless the 373
463-provisions of subdivision (4) of section 12-430 or of section 12-430a are 374
464-applicable, any amount for which credit is given to the purchaser by 375
465-the retailer, provided such credit is given solely for property of the 376
466-same kind accepted in part payment by the retailer and intended by 377
467-the retailer to be resold; (vi) the full face value of any coupon used by a 378
468-purchaser to reduce the price paid to a retailer for an item of tangible 379
469-personal property, whether or not the retailer will be reimbursed for 380
470-such coupon, in whole or in part, by the manufacturer of the item of 381
471-tangible personal property or by a third party; (vii) the amount 382
472-charged for separately stated compensation, fringe benefits, workers' 383
473-compensation and payroll taxes or assessments paid to or on behalf of 384
474-employees of a retailer who has contracted to manage a service 385
475-recipient's property or business premises and renders management 386
476-services described in subparagraph (I) or (J) of subdivision (37) of this 387
477-subsection, provided, the employees perform such services solely for 388
478-the service recipient at its property or business premises and "sales 389
479-price" shall include the separately stated compensation, fringe benefits, 390
480-workers' compensation and payroll taxes or assessments paid to or on 391
481-behalf of any employee of the retailer who is an officer, director or 392
482-owner of more than five per cent of the outstanding capital stock of the 393
483-retailer. Determination whether an employee performs services solely 394
484-for a service recipient at its property or business premises for purposes 395
485-of this subdivision shall be made by reference to such employee's 396 Substitute Bill No. 7177
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492-activities during the time period beginning on the later of the 397
493-commencement of the management contract, the date of the 398
494-employee's first employment by the retailer or the date which is six 399
495-months immediately preceding the date of such determination; (viii) 400
496-the amount charged for separately stated compensation, fringe 401
497-benefits, workers' compensation and payroll taxes or assessments paid 402
498-to or on behalf of (I) a leased employee, or (II) a worksite employee by 403
499-a professional employer organization pursuant to a professional 404
500-employer agreement. For purposes of this subparagraph, an employee 405
501-shall be treated as a leased employee if the employee is provided to the 406
502-client at the commencement of an agreement with an employee leasing 407
503-organization under which at least seventy-five per cent of the 408
504-employees provided to the client at the commencement of such initial 409
505-agreement qualify as leased employees pursuant to Section 414(n) of 410
506-the Internal Revenue Code of 1986, or any subsequent corresponding 411
507-internal revenue code of the United States, as from time to time 412
508-amended, or the employee is added to the client's workforce by the 413
509-employee leasing organization subsequent to the commencement of 414
510-such initial agreement and qualifies as a leased employee pursuant to 415
511-Section 414(n) of said Internal Revenue Code of 1986 without regard to 416
512-subparagraph (B) of paragraph (2) thereof. A leased employee, or a 417
513-worksite employee subject to a professional employer agreement, shall 418
514-not include any employee who is hired by a temporary help service 419
515-and assigned to support or supplement the workforce of a temporary 420
516-help service's client; (ix) any amount received by a retailer from a 421
517-purchaser as the battery deposit that is required to be paid under 422
518-subsection (a) of section 22a-245h; the refund value of a beverage 423
519-container that is required to be paid under subsection (a) of section 424
520-22a-244; or a deposit that is required by law to be paid by the 425
521-purchaser to the retailer and that is required by law to be refunded to 426
522-the purchaser by the retailer when the same or similar tangible 427
523-personal property is delivered as required by law to the retailer by the 428
524-purchaser, if such amount is separately stated on the bill or invoice 429
525-rendered by the retailer to the purchaser; and (x) the amount charged 430
526-for separately stated compensation, fringe benefits, workers' 431 Substitute Bill No. 7177
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533-compensation and payroll taxes or assessments paid to a media payroll 432
534-services company, as defined in this subsection. 433
535-(9) (A) "Gross receipts" means the total amount of the sales price 434
536-from retail sales of tangible personal property by a retailer, the total 435
537-amount of the rent from transfers of occupancy of rooms by an 436
538-operator, the total amount of the sales price from retail sales of any 437
539-service described in subdivision (2) of this subsection by a retailer of 438
540-services, or the total amount of payment or periodic payments from 439
541-leases or rentals of tangible personal property by a retailer, valued in 440
542-money, whether received in money or otherwise, which amount is due 441
543-and owing to the retailer or operator and, subject to the provisions of 442
544-subdivision (1) of section 12-408, as amended by this act, whether or 443
545-not actually received by the retailer or operator, without any deduction 444
546-on account of any of the following: (i) The cost of the property sold; 445
547-however, in accordance with such regulations as the Commissioner of 446
548-Revenue Services may prescribe, a deduction may be taken if the 447
549-retailer has purchased property for some other purpose than resale, 448
550-has reimbursed the retailer's vendor for tax which the vendor is 449
551-required to pay to the state or has paid the use tax with respect to the 450
552-property, and has resold the property prior to making any use of the 451
553-property other than retention, demonstration or display while holding 452
554-it for sale in the regular course of business. If such a deduction is taken 453
555-by the retailer, no refund or credit will be allowed to the retailer's 454
556-vendor with respect to the sale of the property; (ii) the cost of the 455
557-materials used, labor or service cost, interest paid, losses or any other 456
558-expense; (iii) for any sale occurring on or after July 1, 1993, except for 457
559-any item exempt from taxation pursuant to section 12-412, any charges 458
560-by the retailer to the purchaser for shipping or delivery, 459
561-notwithstanding whether such charges are separately stated in the 460
562-written contract, or on a bill or invoice rendered to such purchaser or 461
563-whether such shipping or delivery is provided by the retailer or a third 462
564-party. The total amount of the sales price includes any services that are 463
565-a part of the sale; all receipts, cash, credits and property of any kind; 464
566-except as otherwise provided in subparagraph (B)(v) or (B)(vi) of this 465 Substitute Bill No. 7177
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573-subdivision, any amount for which credit is allowed by the retailer to 466
574-the purchaser; and all compensation and all employment-related 467
575-expenses, whether or not separately stated, paid to or on behalf of 468
576-employees of a retailer of any service described in subdivision (2) of 469
577-this subsection. 470
578-(B) "Gross receipts" do not include any of the following: (i) Cash 471
579-discounts allowed and taken on sales; (ii) any portion of the sales price 472
580-of property returned by purchasers, which upon rescission of the 473
581-contract of sale is refunded either in cash or credit, provided the 474
582-property is returned within ninety days from the date of sale; (iii) the 475
583-amount of any tax, not including any manufacturers' or importers' 476
584-excise tax, imposed by the United States upon or with respect to retail 477
585-sales whether imposed upon the retailer or the purchaser; (iv) the 478
586-amount charged for labor rendered in installing or applying the 479
587-property sold, provided such charge is separately stated and exclusive 480
588-of such charge for any service rendered within the purview of 481
589-subparagraph (I) of subdivision (37) of this subsection; (v) unless the 482
590-provisions of subdivision (4) of section 12-430 or of section 12-430a are 483
591-applicable, any amount for which credit is given to the purchaser by 484
592-the retailer, provided such credit is given solely for property of the 485
593-same kind accepted in part payment by the retailer and intended by 486
594-the retailer to be resold; (vi) the full face value of any coupon used by a 487
595-purchaser to reduce the price paid to the retailer for an item of tangible 488
596-personal property, whether or not the retailer will be reimbursed for 489
597-such coupon, in whole or in part, by the manufacturer of the item of 490
598-tangible personal property or by a third party; (vii) the amount 491
599-charged for separately stated compensation, fringe benefits, workers' 492
600-compensation and payroll taxes or assessments paid to or on behalf of 493
601-employees of a retailer who has contracted to manage a service 494
602-recipient's property or business premises and renders management 495
603-services described in subparagraph (I) or (J) of subdivision (37) of this 496
604-subsection, provided the employees perform such services solely for 497
605-the service recipient at its property or business premises and "gross 498
606-receipts" shall include the separately stated compensation, fringe 499 Substitute Bill No. 7177
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613-benefits, workers' compensation and payroll taxes or assessments paid 500
614-to or on behalf of any employee of the retailer who is an officer, 501
615-director or owner of more than five per cent of the outstanding capital 502
616-stock of the retailer. Determination whether an employee performs 503
617-services solely for a service recipient at its property or business 504
618-premises for purposes of this subdivision shall be made by reference to 505
619-such employee's activities during the time period beginning on the 506
620-later of the commencement of the management contract, the date of the 507
621-employee's first employment by the retailer or the date which is six 508
622-months immediately preceding the date of such determination; (viii) 509
623-the amount charged for separately stated compensation, fringe 510
624-benefits, workers' compensation and payroll taxes or assessments paid 511
625-to or on behalf of (I) a leased employee, or (II) a worksite employee by 512
626-a professional employer organization pursuant to a professional 513
627-employer agreement. For purposes of this subparagraph, an employee 514
628-shall be treated as a leased employee if the employee is provided to the 515
629-client at the commencement of an agreement with an employee leasing 516
630-organization under which at least seventy-five per cent of the 517
631-employees provided to the client at the commencement of such initial 518
632-agreement qualify as leased employees pursuant to Section 414(n) of 519
633-the Internal Revenue Code of 1986, or any subsequent corresponding 520
634-internal revenue code of the United States, as from time to time 521
635-amended, or the employee is added to the client's workforce by the 522
636-employee leasing organization subsequent to the commencement of 523
637-such initial agreement and qualifies as a leased employee pursuant to 524
638-Section 414(n) of said Internal Revenue Code of 1986 without regard to 525
639-subparagraph (B) of paragraph (2) thereof. A leased employee, or a 526
640-worksite employee subject to a professional employer agreement, shall 527
641-not include any employee who is hired by a temporary help service 528
642-and assigned to support or supplement the workforce of a temporary 529
643-help service's client; (ix) the amount received by a retailer from a 530
644-purchaser as the battery deposit that is required to be paid under 531
645-subsection (a) of section 22a-256h; the refund value of a beverage 532
646-container that is required to be paid under subsection (a) of section 533
647-22a-244 or a deposit that is required by law to be paid by the purchaser 534 Substitute Bill No. 7177
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654-to the retailer and that is required by law to be refunded to the 535
655-purchaser by the retailer when the same or similar tangible personal 536
656-property is delivered as required by law to the retailer by the 537
657-purchaser, if such amount is separately stated on the bill or invoice 538
658-rendered by the retailer to the purchaser; and (x) the amount charged 539
659-for separately stated compensation, fringe benefits, workers' 540
660-compensation and payroll taxes or assessments paid to a media payroll 541
661-services company, as defined in this subsection. 542
662-(10) "Business" includes any activity engaged in by any person or 543
663-caused to be engaged in by any person with the object of gain, benefit 544
664-or advantage, either direct or indirect. 545
665-(11) "Seller" includes every person engaged in the business of selling 546
666-tangible personal property or rendering any service described in any of 547
667-the subparagraphs of subdivision (2) of this subsection, the gross 548
668-receipts from the retail sale of which are required to be included in the 549
669-measure of the sales tax and every operator as defined in subdivision 550
670-(18) of this subsection. 551
671-(12) "Retailer" includes: 552
672-(A) Every person engaged in the business of making sales at retail or 553
673-in the business of making retail sales at auction of tangible personal 554
674-property owned by the person or others; 555
675-(B) Every person engaged in the business of making sales for 556
676-storage, use or other consumption or in the business of making sales at 557
677-auction of tangible personal property owned by the person or others 558
678-for storage, use or other consumption; 559
679-(C) Every operator, as defined in subdivision (18) of this subsection; 560
680-(D) Every seller rendering any service described in subdivision (2) 561
681-of this subsection; 562
682-(E) Every person under whom any salesman, representative, 563 Substitute Bill No. 7177
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688-
689-peddler or canvasser operates in this state, or from whom such 564
690-salesman, representative, peddler or canvasser obtains the tangible 565
691-personal property that is sold; 566
692-(F) Every person with whose assistance any seller is enabled to 567
693-solicit orders within this state; 568
694-(G) Every person making retail sales from outside this state to a 569
695-destination within this state who engages in regular or systematic 570
696-solicitation of sales of tangible personal property in this state (i) by the 571
697-display of advertisements on billboards or other outdoor advertising in 572
698-this state, (ii) by the distribution of catalogs, periodicals, advertising 573
699-flyers or other advertising by means of print, radio or television media, 574
700-or (iii) by mail, telegraphy, telephone, computer data base, cable, optic, 575
701-microwave, Internet or other communication system, for the purpose 576
702-of effecting retail sales of tangible personal property, provided such 577
703-person has gross receipts of at least two hundred fifty thousand dollars 578
704-and made two hundred or more retail sales from outside this state to 579
705-destinations within this state during the twelve-month period ended 580
706-on the September thirtieth immediately preceding the monthly or 581
707-quarterly period with respect to which such person's liability for tax 582
708-under this chapter is determined; 583
709-(H) Any person owned or controlled, either directly or indirectly, by 584
710-a retailer engaged in business in this state which is the same as or 585
711-similar to the line of business in which such person so owned or 586
712-controlled is engaged; 587
713-(I) Any person owned or controlled, either directly or indirectly, by 588
714-the same interests that own or control, either directly or indirectly, a 589
715-retailer engaged in business in this state which is the same as or similar 590
716-to the line of business in which such person so owned or controlled is 591
717-engaged; 592
718-(J) Any assignee of a person engaged in the business of leasing 593
719-tangible personal property to others, where leased property of such 594 Substitute Bill No. 7177
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726-person which is subject to taxation under this chapter is situated 595
727-within this state and such assignee has a security interest, as defined in 596
728-subdivision (35) of subsection (b) of section 42a-1-201, in such 597
729-property; 598
730-(K) Every person making retail sales of items of tangible personal 599
731-property from outside this state to a destination within this state who 600
732-repairs or services such items, under a warranty, in this state, either 601
733-directly or indirectly through an agent, independent contractor or 602
734-subsidiary; 603
735-(L) Every person making sales of tangible personal property or 604
736-services through an agreement with another person located in this 605
737-state under which such person located in this state, for a commission 606
738-or other consideration that is based upon the sale of tangible personal 607
739-property or services by the retailer, directly or indirectly refers 608
740-potential customers, whether by a link on an Internet web site or 609
741-otherwise, to the retailer, provided the cumulative gross receipts from 610
742-sales by the retailer to customers in the state who are referred to the 611
743-retailer by all such persons with this type of an agreement with the 612
744-retailer, is in excess of two hundred fifty thousand dollars during the 613
745-preceding four quarterly periods ending on the last day of March, 614
746-June, September and December; and 615
747-(M) Any marketplace facilitator, as defined in section 12-408e. 616
748-(13) "Tangible personal property" means personal property which 617
749-may be seen, weighed, measured, felt or touched or which is in any 618
750-other manner perceptible to the senses including canned or prewritten 619
751-computer software. Tangible personal property includes the 620
752-distribution, generation or transmission of electricity. 621
753-(14) "In this state" or "in the state" means within the exterior limits of 622
754-the state of Connecticut and includes all territory within these limits 623
755-owned by or ceded to the United States of America. 624
756-(15) (A) "Engaged in business in the state" means and, to the extent 625 Substitute Bill No. 7177
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763-not prohibited by the Constitution of the United States, includes, but 626
764-shall not be limited to, the following acts or methods of transacting 627
765-business: (i) Selling in this state, or any activity in this state in 628
766-connection with selling in this state, tangible personal property for use, 629
767-storage or consumption within the state; (ii) engaging in the transfer 630
768-for a consideration of the occupancy of any room or rooms in a hotel, 631
769-lodging house, [or] bed and breakfast establishment or short-term 632
770-rental property for a period of thirty consecutive calendar days or less; 633
771-(iii) rendering in this state any service described in any of the 634
772-subparagraphs of subdivision (2) of this subsection; (iv) maintaining, 635
773-occupying or using, permanently or temporarily, directly or indirectly, 636
774-through a subsidiary or agent, by whatever name called, any office, 637
775-place of distribution, sales or sample room or place, warehouse or 638
776-storage point or other place of business or having any representative, 639
777-agent, salesman, canvasser or solicitor operating in this state for the 640
778-purpose of selling, delivering or taking orders; (v) notwithstanding the 641
779-fact that retail sales are made from outside this state to a destination 642
780-within this state, engaging in regular or systematic solicitation of sales 643
781-of tangible personal property in this state by the display of 644
782-advertisements on billboards or other outdoor advertising in this state, 645
783-by the distribution of catalogs, periodicals, advertising flyers or other 646
784-advertising by means of print, radio or television media, or by mail, 647
785-telegraphy, telephone, computer data base, cable, optic, microwave, 648
786-Internet or other communication system, for the purpose of effecting 649
787-retail sales of tangible personal property, provided at least two 650
788-hundred fifty thousand dollars of gross receipts are received and two 651
789-hundred or more retail sales from outside this state to destinations 652
790-within this state are made during the twelve-month period ended on 653
791-the September thirtieth immediately preceding the monthly or 654
792-quarterly period with respect to which liability for tax under this 655
793-chapter is determined; (vi) being owned or controlled, either directly 656
794-or indirectly, by a retailer engaged in business in this state which is the 657
795-same as or similar to the line of business in which the retailer so owned 658
796-or controlled is engaged; (vii) being owned or controlled, either 659
797-directly or indirectly, by the same interests that own or control, either 660 Substitute Bill No. 7177
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804-directly or indirectly, a retailer engaged in business in this state which 661
805-is the same as or similar to the line of business in which the retailer so 662
806-owned or controlled is engaged; (viii) being the assignee of a person 663
807-engaged in the business of leasing tangible personal property to others, 664
808-where leased property of such person is situated within this state and 665
809-such assignee has a security interest, as defined in subdivision (35) of 666
810-subsection (b) of section 42a-1-201, in such property; (ix) 667
811-notwithstanding the fact that retail sales of items of tangible personal 668
812-property are made from outside this state to a destination within this 669
813-state, repairing or servicing such items, under a warranty, in this state, 670
814-either directly or indirectly through an agent, independent contractor 671
815-or subsidiary; and (x) selling tangible personal property or services 672
816-through an agreement with a person located in this state, under which 673
817-such person located in this state, for a commission or other 674
818-consideration that is based upon the sale of tangible personal property 675
819-or services by the retailer, directly or indirectly refers potential 676
820-customers, whether by a link on an Internet web site or otherwise, to 677
821-the retailer, provided the cumulative gross receipts from sales by the 678
822-retailer to customers in the state who are referred to the retailer by all 679
823-such persons with this type of agreement with the retailer is in excess 680
824-of two hundred fifty thousand dollars during the four preceding four 681
825-quarterly periods ending on the last day of March, June, September 682
826-and December. 683
827-(B) A retailer who has contracted with a commercial printer for 684
828-printing and distribution of printed material shall not be deemed to be 685
829-engaged in business in this state because of the ownership or leasing 686
830-by the retailer of tangible or intangible personal property located at the 687
831-premises of the commercial printer in this state, the sale by the retailer 688
832-of property of any kind produced or processed at and shipped or 689
833-distributed from the premises of the commercial printer in this state, 690
834-the activities of the retailer's employees or agents at the premises of the 691
835-commercial printer in this state, which activities relate to quality 692
836-control, distribution or printing services performed by the printer, or 693
837-the activities of any kind performed by the commercial printer in this 694 Substitute Bill No. 7177
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844-state for or on behalf of the retailer. 695
845-(C) A retailer not otherwise engaged in business in the state who 696
846-purchases fulfillment services carried on in this state by a person other 697
847-than an affiliated person, or who owns tangible personal property 698
848-located on the premises of an unaffiliated person other than a 699
849-marketplace facilitator, as defined in section 12-408e, performing 700
850-fulfillment services for such retailer, shall not be deemed to be engaged 701
851-in business in this state. For purposes of this subparagraph, (i) persons 702
852-are affiliated persons with respect to each other where one of such 703
853-persons has an ownership interest of more than five per cent, whether 704
854-direct or indirect, in the other, or where an ownership interest of more 705
855-than five per cent, whether direct or indirect, is held in each of such 706
856-persons by another person or by a group of other persons who are 707
857-affiliated persons with respect to each other, and (ii) "fulfillment 708
858-services" means services that are performed by a person on its 709
859-premises on behalf of a purchaser of such services and that involve the 710
860-receipt of orders from the purchaser of such services or an agent 711
861-thereof, which orders are to be filled by the person from an inventory 712
862-of products that are offered for sale by the purchaser of such services, 713
863-and the shipment of such orders outside this state to customers of the 714
864-purchaser of such services. 715
865-(D) A retailer not otherwise engaged in business in this state that 716
866-participates in a trade show or shows at the convention center, as 717
867-defined in subdivision (3) of section 32-600, shall not be deemed to be 718
868-engaged in business in this state, regardless of whether the retailer has 719
869-employees or other staff present at such trade shows, provided the 720
870-retailer's activity at such trade shows is limited to displaying goods or 721
871-promoting services, no sales are made, any orders received are sent 722
872-outside this state for acceptance or rejection and are filled from outside 723
873-this state, and provided further that such participation is not more 724
874-than fourteen days, or part thereof, in the aggregate during the 725
875-retailer's income year for federal income tax purposes. 726
876-(16) "Hotel" means any building regularly used and kept open as 727 Substitute Bill No. 7177
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883-such for the feeding and lodging of guests where any person who 728
884-conducts himself properly and who is able and ready to pay for such 729
885-services is received if there are accommodations for such person and 730
886-which derives the major portion of its operating receipts from the 731
887-renting of rooms and the sale of food. "Hotel" includes any apartment 732
888-hotel wherein apartments are rented for fixed periods of time, 733
889-furnished or unfurnished, while the keeper of such hotel supplies food 734
890-to the occupants thereof, if required, but does not include a bed and 735
891-breakfast establishment or short-term rental property. 736
892-(17) "Lodging house" means any building or portion of a building, 737
893-other than a hotel, an apartment hotel, [or] a bed and breakfast 738
894-establishment or a short-term rental property, in which persons are 739
895-lodged for hire with or without meals, including, but not limited to, 740
896-any motel, motor court, motor inn, tourist court, furnished residence or 741
897-similar accommodation; provided the terms "hotel", "apartment hotel", 742
898-"lodging house", [and "bed and breakfast"] "bed and breakfast 743
899-establishment" and "short-term rental property" shall not be construed 744
900-to include: (A) Privately owned and operated convalescent homes, 745
901-residential care homes, homes for the infirm, indigent or chronically ill; 746
902-(B) religious or charitable homes for the aged, infirm, indigent or 747
903-chronically ill; (C) privately owned and operated summer camps for 748
904-children; (D) summer camps for children operated by religious or 749
905-charitable organizations; (E) lodging accommodations at educational 750
906-institutions; or (F) lodging accommodations at any facility operated by 751
907-and in the name of any nonprofit charitable organization, provided the 752
908-income from such lodging accommodations at such facility is not 753
909-subject to federal income tax. 754
910-(18) "Operator" means any person operating a hotel, lodging house, 755
911-[or] bed and breakfast establishment or short-term rental property in 756
912-the state, including, but not limited to, the owner or proprietor of such 757
913-premises, lessee, sublessee, mortgagee in possession, licensee or any 758
914-other person otherwise operating such hotel, lodging house, [or] bed 759
915-and breakfast establishment or short-term rental property. 760 Substitute Bill No. 7177
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922-(19) "Occupancy" means the use or possession, or the right to the 761
923-use or possession, of any room or rooms in a hotel, lodging house, [or] 762
924-bed and breakfast establishment or short-term rental property, or the 763
925-right to the use or possession of the furnishings or the services and 764
926-accommodations accompanying the use and possession of such room 765
927-or rooms, for the first period of not more than thirty consecutive 766
928-calendar days. 767
929-(20) "Room" means any room or rooms of any kind in any part or 768
930-portion of a hotel, lodging house, [or] bed and breakfast establishment 769
931-or short-term rental property let out for use or possession for lodging 770
932-purposes. 771
933-(21) "Rent" means the consideration received for occupancy and any 772
934-meals included with such occupancy, valued in money, whether 773
935-received in money or otherwise, including all receipts, cash, credits 774
936-and property or services of any kind or nature, and also any amount 775
937-for which credit is allowed by the operator to the occupant, without 776
938-any deduction therefrom whatsoever. 777
939-(22) "Certificated air carrier" means a person issued a certificate or 778
940-certificates by the Federal Aviation Administration pursuant to Title 779
941-14, Chapter I, Subchapter G, Part 121, 135, 139 or 141 of the Code of 780
942-Federal Regulations or the Civil Aeronautics Board pursuant to Title 781
943-14, Chapter II, Subchapter A, Parts 201 to 208, inclusive, and 298 of the 782
944-Code of Federal Regulations, as such regulations may hereafter be 783
945-amended or reclassified. 784
946-(23) "Aircraft" means aircraft, as the term is defined in section 15-34. 785
947-(24) "Vessel" means vessel, as the term is defined in section 15-127. 786
948-(25) "Licensed marine dealer" means a marine dealer, as the term is 787
949-defined in section 15-141, who has been issued a marine dealer's 788
950-certificate by the Commissioner of Energy and Environmental 789
951-Protection. 790 Substitute Bill No. 7177
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957-
958-(26) (A) "Telecommunications service" means the electronic 791
959-transmission, conveyance or routing of voice, image, data, audio, video 792
960-or any other information or signals to a point or between or among 793
961-points. "Telecommunications service" includes such transmission, 794
962-conveyance or routing in which computer processing applications are 795
963-used to act on the form, code or protocol of the content for purposes of 796
964-transmission, conveyance or routing without regard to whether such 797
965-service is referred to as a voice over Internet protocol service or is 798
966-classified by the Federal Communications Commission as enhanced or 799
967-value added. "Telecommunications service" does not include (i) value-800
968-added nonvoice data services, (ii) radio and television audio and video 801
969-programming services, regardless of the medium, including the 802
970-furnishing of transmission, conveyance or routing of such services by 803
971-the programming service provider. Radio and television audio and 804
972-video programming services shall include, but not be limited to, cable 805
973-service as defined in 47 USC 522(6), audio and video programming 806
974-services delivered by commercial mobile radio service providers, as 807
975-defined in 47 CFR 20, and video programming service by certified 808
976-competitive video service providers, (iii) any telecommunications 809
977-service (I) rendered by a company in control of such service when 810
978-rendered for private use within its organization, or (II) used, allocated 811
979-or distributed by a company within its organization, including in such 812
980-organization affiliates, as defined in section 33-840, for the purpose of 813
981-conducting business transactions of the organization if such service is 814
982-purchased or leased from a company rendering telecommunications 815
983-service and such purchase or lease is subject to tax under this chapter, 816
984-(iv) access or interconnection service purchased by a provider of 817
985-telecommunications service from another provider of such service for 818
986-purposes of rendering such service, provided the purchaser submits to 819
987-the seller a certificate attesting to the applicability of this exclusion, 820
988-upon receipt of which the seller is relieved of any tax liability for such 821
989-sale so long as the certificate is taken in good faith by the seller, (v) 822
990-data processing and information services that allow data to be 823
991-generated, acquired, stored, processed or retrieved and delivered by 824
992-an electronic transmission to a purchaser where such purchaser's 825 Substitute Bill No. 7177
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998-
999-primary purpose for the underlying transaction is the processed data 826
1000-or information, (vi) installation or maintenance of wiring equipment 827
1001-on a customer's premises, (vii) tangible personal property, (viii) 828
1002-advertising, including, but not limited to, directory advertising, (ix) 829
1003-billing and collection services provided to third parties, (x) Internet 830
1004-access service, (xi) ancillary services, and (xii) digital products 831
1005-delivered electronically, including, but not limited to, software, music, 832
1006-video, reading materials or ring tones. 833
1007-(B) For purposes of the tax imposed under this chapter (i) gross 834
1008-receipts from the rendering of telecommunications service shall 835
1009-include any subscriber line charge or charges as required by the 836
1010-Federal Communications Commission and any charges for access 837
1011-service collected by any person rendering such service unless 838
1012-otherwise excluded from such gross receipts under this chapter, and 839
1013-such gross receipts from the rendering of telecommunications service 840
1014-shall also include any charges for vertical service, for the installation or 841
1015-maintenance of wiring equipment on a customer's premises, and for 842
1016-directory assistance service; (ii) gross receipts from the rendering of 843
1017-telecommunications service shall not include any local charge for calls 844
1018-from public or semipublic telephones; and (iii) gross receipts from the 845
1019-rendering of telecommunications service shall not include any charge 846
1020-for calls purchased using a prepaid telephone calling service, as 847
1021-defined in subdivision (34) of this subsection. 848
1022-(27) "Community antenna television service" means (A) the one-way 849
1023-transmission to subscribers of video programming or information by 850
1024-cable, fiber optics, satellite, microwave or any other means, and 851
1025-subscriber interaction, if any, which is required for the selection of 852
1026-such video programming or information, and (B) noncable 853
1027-communications service, as defined in section 16-1, unless such 854
1028-noncable communications service is purchased by a cable network as 855
1029-that term is used in subsection (k) of section 12-218. 856
1030-(28) "Hospital" means a hospital included within the definition of 857
1031-health care facilities or institutions under section 19a-630 and licensed 858 Substitute Bill No. 7177
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1037-
1038-as a short-term general hospital by the Department of Public Health, 859
1039-but does not include (A) any hospital which, on January 30, 1997, is 860
1040-within the class of hospitals licensed by the department as children's 861
1041-general hospitals, or (B) a short-term acute hospital operated 862
1042-exclusively by the state other than a short-term acute hospital operated 863
1043-by the state as a receiver pursuant to chapter 920. 864
1044-(29) "Patient care services" means therapeutic and diagnostic 865
1045-medical services provided by the hospital to inpatients and outpatients 866
1046-including tangible personal property transferred in connection with 867
1047-such services. 868
1048-(30) "Another state" or "other state" means any state of the United 869
1049-States or the District of Columbia excluding the state of Connecticut. 870
1050-(31) "Professional employer agreement" means a written contract 871
1051-between a professional employer organization and a service recipient 872
1052-whereby the professional employer organization agrees to provide at 873
1053-least seventy-five per cent of the employees at the service recipient's 874
1054-worksite, which contract provides that such worksite employees are 875
1055-intended to be permanent employees rather than temporary 876
1056-employees, and employer responsibilities for such worksite 877
1057-employees, including hiring, firing and disciplining, are allocated 878
1058-between the professional employer organization and the service 879
1059-recipient. 880
1060-(32) "Professional employer organization" means any person that 881
1061-enters into a professional employer agreement with a service recipient 882
1062-whereby the professional employer organization agrees to provide at 883
1063-least seventy-five per cent of the employees at the service recipient's 884
1064-worksite. 885
1065-(33) "Worksite employee" means an employee, the employer 886
1066-responsibilities for which, including hiring, firing and disciplining, are 887
1067-allocated, under a professional employer agreement, between a 888
1068-professional employer organization and a service recipient. 889 Substitute Bill No. 7177
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1074-
1075-(34) "Prepaid telephone calling service" means the right to 890
1076-exclusively purchase telecommunications service, that must be paid for 891
1077-in advance and that enables the origination of calls using an access 892
1078-number or authorization code, or both, whether manually or 893
1079-electronically dialed, provided the remaining amount of units of 894
1080-service that have been prepaid shall be known on a continuous basis. 895
1081-(35) "Canned or prewritten software" means all software, other than 896
1082-custom software, that is held or existing for general or repeated sale, 897
1083-license or lease. Software initially developed as custom software for in-898
1084-house use and subsequently sold, licensed or leased to unrelated third 899
1085-parties shall be considered canned or prewritten software. 900
1086-(36) "Custom software" means a computer program prepared to the 901
1087-special order of a single customer. 902
1088-(37) "Services" for purposes of subdivision (2) of this subsection, 903
1089-means: 904
1090-(A) Computer and data processing services, including, but not 905
1091-limited to, time, programming, code writing, modification of existing 906
1092-programs, feasibility studies and installation and implementation of 907
1093-software programs and systems even where such services are rendered 908
1094-in connection with the development, creation or production of canned 909
1095-or custom software or the license of custom software; 910
1096-(B) Credit information and reporting services; 911
1097-(C) Services by employment agencies and agencies providing 912
1098-personnel services; 913
1099-(D) Private investigation, protection, patrol work, watchman and 914
1100-armored car services, exclusive of (i) services of off-duty police officers 915
1101-and off-duty firefighters, and (ii) coin and currency services provided 916
1102-to a financial services company by or through another financial 917
1103-services company. For purposes of this subparagraph, "financial 918
1104-services company" has the same meaning as provided under 919 Substitute Bill No. 7177
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1110-
1111-subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 920
1112-of section 12-218b; 921
1113-(E) Painting and lettering services; 922
1114-(F) Photographic studio services; 923
1115-(G) Telephone answering services; 924
1116-(H) Stenographic services; 925
1117-(I) Services to industrial, commercial or income-producing real 926
1118-property, including, but not limited to, such services as management, 927
1119-electrical, plumbing, painting and carpentry, p rovided 928
1120-income-producing property shall not include property used 929
1121-exclusively for residential purposes in which the owner resides and 930
1122-which contains no more than three dwelling units, or a housing facility 931
1123-for low and moderate income families and persons owned or operated 932
1124-by a nonprofit housing organization, as defined in subdivision (29) of 933
1125-section 12-412; 934
1126-(J) Business analysis, management, management consulting and 935
1127-public relations services, excluding (i) any environmental consulting 936
1128-services, (ii) any training services provided by an institution of higher 937
1129-education licensed or accredited by the Board of Regents for Higher 938
1130-Education or Office of Higher Education pursuant to sections 10a-35a 939
1131-and 10a-34, respectively, and (iii) on and after January 1, 1994, any 940
1132-business analysis, management, management consulting and public 941
1133-relations services when such services are rendered in connection with 942
1134-an aircraft leased or owned by a certificated air carrier or in connection 943
1135-with an aircraft which has a maximum certificated take-off weight of 944
1136-six thousand pounds or more; 945
1137-(K) Services providing "piped-in" music to business or professional 946
1138-establishments; 947
1139-(L) Flight instruction and chartering services by a certificated air 948 Substitute Bill No. 7177
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1145-
1146-carrier on an aircraft, the use of which for such purposes, but for the 949
1147-provisions of subdivision (4) of section 12-410 and subdivision (12) of 950
1148-section 12-411, as amended by this act, would be deemed a retail sale 951
1149-and a taxable storage or use, respectively, of such aircraft by such 952
1150-carrier; 953
1151-(M) Motor vehicle repair services, including any type of repair, 954
1152-painting or replacement related to the body or any of the operating 955
1153-parts of a motor vehicle; 956
1154-(N) Motor vehicle parking, including the provision of space, other 957
1155-than metered space, in a lot having thirty or more spaces, excluding (i) 958
1156-space in a parking lot owned or leased under the terms of a lease of not 959
1157-less than ten years' duration and operated by an employer for the 960
1158-exclusive use of its employees, (ii) space in municipally operated 961
1159-railroad parking facilities in municipalities located within an area of 962
1160-the state designated as a severe nonattainment area for ozone under 963
1161-the federal Clean Air Act or space in a railroad parking facility in a 964
1162-municipality located within an area of the state designated as a severe 965
1163-nonattainment area for ozone under the federal Clean Air Act owned 966
1164-or operated by the state on or after April 1, 2000, (iii) space in a 967
1165-seasonal parking lot provided by an entity subject to the exemption set 968
1166-forth in subdivision (1) of section 12-412, and (iv) space in a 969
1167-municipally owned parking lot; 970
1168-(O) Radio or television repair services; 971
1169-(P) Furniture reupholstering and repair services; 972
1170-(Q) Repair services to any electrical or electronic device, including, 973
1171-but not limited to, equipment used for purposes of refrigeration or 974
1172-air-conditioning; 975
1173-(R) Lobbying or consulting services for purposes of representing the 976
1174-interests of a client in relation to the functions of any governmental 977
1175-entity or instrumentality; 978 Substitute Bill No. 7177
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1181-
1182-(S) Services of the agent of any person in relation to the sale of any 979
1183-item of tangible personal property for such person, exclusive of the 980
1184-services of a consignee selling works of art, as defined in subsection (b) 981
1185-of section 12-376c, or articles of clothing or footwear intended to be 982
1186-worn on or about the human body other than (i) any special clothing 983
1187-or footwear primarily designed for athletic activity or protective use 984
1188-and which is not normally worn except when used for the athletic 985
1189-activity or protective use for which it was designed, and (ii) jewelry, 986
1190-handbags, luggage, umbrellas, wallets, watches and similar items 987
1191-carried on or about the human body but not worn on the body, under 988
1192-consignment, exclusive of services provided by an auctioneer; 989
1193-(T) Locksmith services; 990
1194-(U) Advertising or public relations services, including layout, art 991
1195-direction, graphic design, mechanical preparation or production 992
1196-supervision, not related to the development of media advertising or 993
1197-cooperative direct mail advertising; 994
1198-(V) Landscaping and horticulture services; 995
1199-(W) Window cleaning services; 996
1200-(X) Maintenance services; 997
1201-(Y) Janitorial services; 998
1202-(Z) Exterminating services; 999
1203-(AA) Swimming pool cleaning and maintenance services; 1000
1204-(BB) Miscellaneous personal services included in industry group 729 1001
1205-in the Standard Industrial Classification Manual, United States Office 1002
1206-of Management and Budget, 1987 edition, or U.S. industry 532220, 1003
1207-812191, 812199 or 812990 in the North American Industrial 1004
1208-Classification System United States Manual, United States Office of 1005
1209-Management and Budget, 1997 edition, exclusive of (i) services 1006 Substitute Bill No. 7177
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1215-
1216-rendered by massage therapists licensed pursuant to chapter 384a, and 1007
1217-(ii) services rendered by an electrologist licensed pursuant to chapter 1008
1218-388; 1009
1219-(CC) Any repair or maintenance service to any item of tangible 1010
1220-personal property including any contract of warranty or service related 1011
1221-to any such item; 1012
1222-(DD) Business analysis, management or managing consulting 1013
1223-services rendered by a general partner, or an affiliate thereof, to a 1014
1224-limited partnership, provided (i) the general partner, or an affiliate 1015
1225-thereof, is compensated for the rendition of such services other than 1016
1226-through a distributive share of partnership profits or an annual 1017
1227-percentage of partnership capital or assets established in the limited 1018
1228-partnership's offering statement, and (ii) the general partner, or an 1019
1229-affiliate thereof, offers such services to others, including any other 1020
1230-partnership. As used in this subparagraph "an affiliate of a general 1021
1231-partner" means an entity which is directly or indirectly owned fifty per 1022
1232-cent or more in common with a general partner; 1023
1233-(EE) Notwithstanding the provisions of section 12-412, except 1024
1234-subdivision (87) of said section 12-412, patient care services, as defined 1025
1235-in subdivision (29) of this subsection by a hospital, except that "sale" 1026
1236-and "selling" does not include such patient care services for which 1027
1237-payment is received by the hospital during the period commencing 1028
1238-July 1, 2001, and ending June 30, 2003; 1029
1239-(FF) Health and athletic club services, exclusive of (i) any such 1030
1240-services provided without any additional charge which are included in 1031
1241-any dues or initiation fees paid to any such club, which dues or fees 1032
1242-are subject to tax under section 12-543, and (ii) any such services 1033
1243-provided by a municipality or an organization that is described in 1034
1244-Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1035
1245-corresponding internal revenue code of the United States, as from time 1036
1246-to time amended; 1037 Substitute Bill No. 7177
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1252-
1253-(GG) Motor vehicle storage services, including storage of motor 1038
1254-homes, campers and camp trailers, other than the furnishing of space 1039
1255-as described in subparagraph (P) of subdivision (2) of this subsection; 1040
1256-(HH) Packing and crating services, other than those provided in 1041
1257-connection with the sale of tangible personal property by the retailer of 1042
1258-such property; 1043
1259-(II) Motor vehicle towing and road services, other than motor 1044
1260-vehicle repair services; 1045
1261-(JJ) Intrastate transportation services provided by livery services, 1046
1262-including limousines, community cars or vans, with a driver. Intrastate 1047
1263-transportation services shall not include transportation by taxicab, 1048
1264-motor bus, ambulance or ambulette, scheduled public transportation, 1049
1265-nonemergency medical transportation provided under the Medicaid 1050
1266-program, paratransit services provided by agreement or arrangement 1051
1267-with the state or any political subdivision of the state, dial-a-ride 1052
1268-services or services provided in connection with funerals; 1053
1269-(KK) Pet grooming and pet boarding services, except if such services 1054
1270-are provided as an integral part of professional veterinary services, 1055
1271-and pet obedience services; 1056
1272-(LL) Services in connection with a cosmetic medical procedure. For 1057
1273-purposes of this subparagraph, "cosmetic medical procedure" means 1058
1274-any medical procedure performed on an individual that is directed at 1059
1275-improving the individual's appearance and that does not meaningfully 1060
1276-promote the proper function of the body or prevent or treat illness or 1061
1277-disease. "Cosmetic medical procedure" includes, but is not limited to, 1062
1278-cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 1063
1279-tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 1064
1280-skin resurfacing, laser treatment of leg veins and sclerotherapy. 1065
1281-"Cosmetic medical procedure" does not include reconstructive surgery. 1066
1282-"Reconstructive surgery" includes any surgery performed on abnormal 1067
1283-structures caused by or related to congenital defects, developmental 1068 Substitute Bill No. 7177
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1289-
1290-abnormalities, trauma, infection, tumors or disease, including 1069
1291-procedures to improve function or give a more normal appearance; 1070
1292-(MM) Manicure services, pedicure services and all other nail 1071
1293-services, regardless of where performed, including airbrushing, fills, 1072
1294-full sets, nail sculpting, paraffin treatments and polishes; 1073
1295-(NN) Spa services, regardless of where performed, including body 1074
1296-waxing and wraps, peels, scrubs and facials; and 1075
1297-(OO) Car wash services, including coin-operated car washes. 1076
1298-(38) "Media payroll services company" means a retailer whose 1077
1299-principal business activity is the management and payment of 1078
1300-compensation, fringe benefits, workers' compensation, payroll taxes or 1079
1301-assessments to individuals providing services to an eligible production 1080
1302-company pursuant to section 12-217jj. 1081
1303-(39) "Certified competitive video service" means video 1082
1304-programming service provided through wireline facilities, a portion of 1083
1305-which are located in the public right-of-way, without regard to 1084
1306-delivery technology, including Internet protocol technology. "Certified 1085
1307-competitive video service" does not include any video programming 1086
1308-provided by a commercial mobile service provider, as defined in 47 1087
1309-USC 332(d); any video programming provided as part of community 1088
1310-antenna television service; any video programming provided as part 1089
1311-of, and via, a service that enables users to access content, information, 1090
1312-electronic mail or other services over the Internet. 1091
1313-(40) "Directory assistance" means an ancillary service of providing 1092
1314-telephone number information or address information. 1093
1315-(41) "Vertical service" means an ancillary service that is offered in 1094
1316-connection with one or more telecommunications services, offering 1095
1317-advanced calling features that allow customers to identify callers and 1096
1318-to manage multiple calls and call connections, including conference 1097
1319-bridging services. 1098 Substitute Bill No. 7177
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1325-
1326-(42) "Bed and breakfast establishment" means any private operator-1099
1327-occupied house, other than a hotel, [or] lodging house or short-term 1100
1328-rental property, with twelve or fewer rooms in which persons are 1101
1329-lodged for hire and a full morning meal is included in the rent. 1102
1330-(43) "Short-term rental property" means any dwelling unit, other 1103
1331-than a hotel, lodging house or bed and breakfast establishment, in 1104
1332-which a guest is lodged for hire, with or without meals, pursuant to a 1105
1333-short-term rental transaction. For the purposes of this subdivision, 1106
1334-"dwelling unit", "guest" and "short-term rental transaction" have the 1107
1335-same meanings as provided in section 1 of this act. 1108
1336-(b) Wherever in this chapter reference is made to the sale of tangible 1109
1337-personal property or services, it shall be construed to include sales 1110
1338-described in subdivision (2) of subsection (a) of this section, except as 1111
1339-may be specifically provided to the contrary. 1112
1340-Sec. 9. Section 12-408 of the general statutes is repealed and the 1113
1341-following is substituted in lieu thereof (Effective July 1, 2019, and 1114
1342-applicable to sales occurring on or after July 1, 2019): 1115
1343-(1) (A) For the privilege of making any sales, as defined in 1116
1344-subdivision (2) of subsection (a) of section 12-407, as amended by this 1117
1345-act, at retail, in this state for a consideration, a tax is hereby imposed 1118
1346-on all retailers at the rate of six and thirty-five-hundredths per cent of 1119
1347-the gross receipts of any retailer from the sale of all tangible personal 1120
1348-property sold at retail or from the rendering of any services 1121
1349-constituting a sale in accordance with subdivision (2) of subsection (a) 1122
1350-of section 12-407, as amended by this act, except, in lieu of said rate of 1123
1351-six and thirty-five-hundredths per cent, the rates provided in 1124
1352-subparagraphs (B) to (H), inclusive, of this subdivision; 1125
1353-(B) (i) At a rate of fifteen per cent with respect to each transfer of 1126
1354-occupancy, from the total amount of rent received by a hotel or 1127
1355-lodging house for the first period not exceeding thirty consecutive 1128
1356-calendar days; 1129 Substitute Bill No. 7177
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1362-
1363-(ii) At a rate of eleven per cent with respect to each transfer of 1130
1364-occupancy, from the total amount of rent received by a bed and 1131
1365-breakfast establishment for the first period not exceeding thirty 1132
1366-consecutive calendar days; 1133
1367-(iii) At a rate of five per cent with respect to each transfer of 1134
1368-occupancy to a guest, as defined in section 1 of this act, from the total 1135
1369-amount of rent received by a short-term rental operator, as defined in 1136
1370-section 1 of this act, for the first period not exceeding thirty 1137
1371-consecutive calendar days; 1138
1372-(C) With respect to the sale of a motor vehicle to any individual who 1139
1373-is a member of the armed forces of the United States and is on full-time 1140
1374-active duty in Connecticut and who is considered, under 50 App USC 1141
1375-574, a resident of another state, or to any such individual and the 1142
1376-spouse thereof, at a rate of four and one-half per cent of the gross 1143
1377-receipts of any retailer from such sales, provided such retailer requires 1144
1378-and maintains a declaration by such individual, prescribed as to form 1145
1379-by the commissioner and bearing notice to the effect that false 1146
1380-statements made in such declaration are punishable, or other evidence, 1147
1381-satisfactory to the commissioner, concerning the purchaser's state of 1148
1382-residence under 50 App USC 574; 1149
1383-(D) (i) With respect to the sales of computer and data processing 1150
1384-services occurring on or after July 1, 2001, at the rate of one per cent, 1151
1385-and (ii) with respect to sales of Internet access services, on and after 1152
1386-July 1, 2001, such services shall be exempt from such tax; 1153
1387-(E) (i) With respect to the sales of labor that is otherwise taxable 1154
1388-under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 1155
1389-section 12-407, as amended by this act, on existing vessels and repair or 1156
1390-maintenance services on vessels occurring on and after July 1, 1999, 1157
1391-such services shall be exempt from such tax; 1158
1392-(ii) With respect to the sale of a vessel, a motor for a vessel or a 1159
1393-trailer used for transporting a vessel, at the rate of two and ninety-1160 Substitute Bill No. 7177
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1399-
1400-nine-hundredths per cent, except that the sale of a vessel shall be 1161
1401-exempt from such tax if such vessel is docked in this state for sixty or 1162
1402-fewer days in a calendar year; 1163
1403-(F) With respect to patient care services for which payment is 1164
1404-received by the hospital on or after July 1, 1999, and prior to July 1, 1165
1405-2001, at the rate of five and three-fourths per cent and on and after July 1166
1406-1, 2001, such services shall be exempt from such tax; 1167
1407-(G) With respect to the rental or leasing of a passenger motor 1168
1408-vehicle for a period of thirty consecutive calendar days or less, at a rate 1169
1409-of nine and thirty-five-hundredths per cent; 1170
1410-(H) With respect to the sale of (i) a motor vehicle for a sales price 1171
1411-exceeding fifty thousand dollars, at a rate of seven and three-fourths 1172
1412-per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1173
1413-for a sales price exceeding five thousand dollars, at a rate of seven and 1174
1414-three-fourths per cent on the entire sales price, and (iii) an article of 1175
1415-clothing or footwear intended to be worn on or about the human body, 1176
1416-a handbag, luggage, umbrella, wallet or watch for a sales price 1177
1417-exceeding one thousand dollars, at a rate of seven and three-fourths 1178
1418-per cent on the entire sales price. For purposes of this subparagraph, 1179
1419-"motor vehicle" has the meaning provided in section 14-1, but does not 1180
1420-include a motor vehicle subject to the provisions of subparagraph (C) 1181
1421-of this subdivision, a motor vehicle having a gross vehicle weight 1182
1422-rating over twelve thousand five hundred pounds, or a motor vehicle 1183
1423-having a gross vehicle weight rating of twelve thousand five hundred 1184
1424-pounds or less that is not used for private passenger purposes, but is 1185
1425-designed or used to transport merchandise, freight or persons in 1186
1426-connection with any business enterprise and issued a commercial 1187
1427-registration or more specific type of registration by the Department of 1188
1428-Motor Vehicles; 1189
1429-(I) The rate of tax imposed by this chapter shall be applicable to all 1190
1430-retail sales upon the effective date of such rate, except that a new rate 1191
1431-which represents an increase in the rate applicable to the sale shall not 1192 Substitute Bill No. 7177
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1438-apply to any sales transaction wherein a binding sales contract without 1193
1439-an escalator clause has been entered into prior to the effective date of 1194
1440-the new rate and delivery is made within ninety days after the effective 1195
1441-date of the new rate. For the purposes of payment of the tax imposed 1196
1442-under this section, any retailer of services taxable under subdivision 1197
1443-(37) of subsection (a) of section 12-407, as amended by this act, who 1198
1444-computes taxable income, for purposes of taxation under the Internal 1199
1445-Revenue Code of 1986, or any subsequent corresponding internal 1200
1446-revenue code of the United States, as from time to time amended, on 1201
1447-an accounting basis which recognizes only cash or other valuable 1202
1448-consideration actually received as income and who is liable for such 1203
1449-tax only due to the rendering of such services may make payments 1204
1450-related to such tax for the period during which such income is 1205
1451-received, without penalty or interest, without regard to when such 1206
1452-service is rendered; 1207
1453-(J) (i) For calendar quarters ending on or after September 30, 2019, 1208
1454-the commissioner shall deposit into the regional planning incentive 1209
1455-account, established pursuant to section 4-66k, six and seven-tenths 1210
1456-per cent of the amounts received by the state from the tax imposed 1211
1457-under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 1212
1458-subdivision and ten and seven-tenths per cent of the amounts received 1213
1459-by the state from the tax imposed under subparagraph (G) of this 1214
1460-subdivision; 1215
1461-(ii) For calendar quarters ending on or after September 30, 2018, the 1216
1462-commissioner shall deposit into the Tourism Fund established under 1217
1463-section 10-395b ten per cent of the amounts received by the state from 1218
1464-the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1219
1465-(B)(ii) of this subdivision; 1220
1466-(K) For calendar months commencing on or after July 1, 2021, the 1221
1467-commissioner shall deposit into the municipal revenue sharing 1222
1468-account established pursuant to section 4-66l seven and nine-tenths per 1223
1469-cent of the amounts received by the state from the tax imposed under 1224
1470-subparagraph (A) of this subdivision; and 1225 Substitute Bill No. 7177
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1476-
1477-(L) (i) For calendar months commencing on or after July 1, 2017, the 1226
1478-commissioner shall deposit into the Special Transportation Fund 1227
1479-established under section 13b-68 seven and nine-tenths per cent of the 1228
1480-amounts received by the state from the tax imposed under 1229
1481-subparagraph (A) of this subdivision; 1230
1482-(ii) For calendar months commencing on or after July 1, 2018, but 1231
1483-prior to July 1, 2019, the commissioner shall deposit into the Special 1232
1484-Transportation Fund established under section 13b-68 eight per cent of 1233
1485-the amounts received by the state from the tax imposed under 1234
1486-subparagraphs (A) and (H) of this subdivision on the sale of a motor 1235
1487-vehicle; 1236
1488-(iii) For calendar months commencing on or after July 1, 2019, but 1237
1489-prior to July 1, 2020, the commissioner shall deposit into the Special 1238
1490-Transportation Fund established under section 13b-68 thirty-three per 1239
1491-cent of the amounts received by the state from the tax imposed under 1240
1492-subparagraphs (A) and (H) of this subdivision on the sale of a motor 1241
1493-vehicle; 1242
1494-(iv) For calendar months commencing on or after July 1, 2020, but 1243
1495-prior to July 1, 2021, the commissioner shall deposit into the Special 1244
1496-Transportation Fund established under section 13b-68 fifty-six per cent 1245
1497-of the amounts received by the state from the tax imposed under 1246
31+(4) "Guest" means any natural person, other than the owner, lessee, 9
32+lessor, sublessee or sublessor of a short-term rental property, who 10
33+occupies a short-term rental property pursuant to a short-term rental 11
34+transaction; 12
35+(5) "Short-term rental operator" means the owner, lessee or 13 Raised Bill No. 7177
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37+
38+
39+LCO No. 4429 2 of 54
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41+sublessee of a short-term rental property who offers the short-term 14
42+rental property for occupancy by a guest pursuant to a short-term 15
43+rental transaction; 16
44+(6) "Short-term rental platform" means any platform, including, but 17
45+not limited to, an Internet web site, that (A) allows a short-term rental 18
46+operator to offer a dwelling unit, or any portion thereof, for occupancy 19
47+as a short-term rental property, (B) allows a potential guest to arrange 20
48+payment for occupancy of a short-term rental property, whether such 21
49+guest pays directly to a short-term rental operator or through the 22
50+platform, and (C) allows the platform operator to derive revenues from 23
51+providing or maintaining the services described in this subdivision for 24
52+a short-term rental property; 25
53+(7) "Short-term rental property" means a dwelling unit, or any 26
54+portion thereof, in this state that is (A) the subject of a short-term rental 27
55+transaction, and (B) not a hotel, lodging house or bed and breakfast 28
56+establishment; and 29
57+(8) "Short-term rental transaction" means a transaction in which a 30
58+short-term rental operator offers a short-term rental property for 31
59+occupancy by a guest through a short-term rental platform for a period 32
60+of thirty consecutive calendar days or less. 33
61+Sec. 2. (NEW) (Effective July 1, 2019) (a) (1) Each short-term rental 34
62+operator or prospective short-term rental operator shall apply for a 35
63+license from the commissioner for each dwelling unit that such person 36
64+intends to operate as a short-term rental property on or after January 1, 37
65+2020. Each application for a license, or renewal of a license, pursuant to 38
66+this subsection shall be made on forms provided by the commissioner. 39
67+The commissioner shall require, as a precondition to issuing or 40
68+renewing a license pursuant to this subsection, that the applicant 41
69+submit to the commissioner, in a form and manner prescribed by the 42
70+commissioner, proof that such applicant: 43
71+(A) Maintains a property and casualty insurance policy that 44
72+contains the minimum provisions prescribed by the Insurance 45 Raised Bill No. 7177
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74+
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76+LCO No. 4429 3 of 54
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78+Commissioner pursuant to section 6 of this act; 46
79+(B) Notified each owner, lessor and sublessor, as applicable, of the 47
80+dwelling unit that is the subject of such application and all owners, 48
81+lessors, lessees, sublessors and sublessees of abutting and adjacent 49
82+dwelling units that such applicant has filed an application with the 50
83+commissioner pursuant to this subsection; and 51
84+(C) In the case of an application for renewal of a license under this 52
85+subsection: 53
86+(i) Maintained the insurance coverage described in subparagraph 54
87+(A) of this subdivision during the two years immediately preceding; 55
88+(ii) Paid any and all sales and use taxes due and payable to this 56
89+state, and any and all taxes due and payable to a municipality 57
90+pursuant to section 7 of this act, during the two years immediately 58
91+preceding; 59
92+(iii) Provided all notices required by section 3 of this act during the 60
93+two years immediately preceding; and 61
94+(iv) Complied with the provisions of section 4 of this act during the 62
95+two years immediately preceding. 63
96+(2) Each license issued by the commissioner pursuant to this 64
97+subsection shall expire two years after its issuance. The commissioner 65
98+may refuse to issue or renew, or may suspend or revoke, any license 66
99+required by this section if the applicant for such license engages in any 67
100+conduct prohibited by this section. 68
101+(3) Not later than fifteen days after the commissioner issues or 69
102+renews a license pursuant to this subsection, the commissioner shall 70
103+send a notice, in a form and manner prescribed by the commissioner, 71
104+to the Commissioner of Revenue Services and, if the municipality in 72
105+which the licensed short-term rental property is located levies a tax 73
106+pursuant to section 7 of this act, to the municipality in which such 74
107+short-term rental property is located disclosing: 75 Raised Bill No. 7177
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109+
110+
111+LCO No. 4429 4 of 54
112+
113+(A) The name of the applicant for such license; and 76
114+(B) The address of the licensed short-term rental property. 77
115+(b) If the commissioner refuses to issue or renew, or suspends or 78
116+revokes, a license pursuant to subsection (a) of this section, the 79
117+commissioner shall notify the applicant or short-term rental operator, 80
118+as applicable, of such refusal and of such applicant's or short-term 81
119+rental operator's right to request a hearing not later than ten days after 82
120+the date on which the commissioner issued such notice to such 83
121+applicant. If the applicant or short-term rental operator requests a 84
122+hearing within such ten-day period, the commissioner shall give notice 85
123+to such applicant or short-term rental operator of the grounds for the 86
124+commissioner's refusal, suspension or revocation and conduct a 87
125+hearing concerning such refusal, suspension or revocation in 88
126+accordance with the provisions of chapter 54 of the general statutes 89
127+concerning contested cases. 90
128+(c) The Attorney General, at the request of the commissioner, is 91
129+authorized to apply in the name of this state to the Superior Court for 92
130+an order temporarily or permanently restraining and enjoining any 93
131+short-term rental operator from operating in violation of any provision 94
132+of sections 1 to 5, inclusive, of this act. 95
133+Sec. 3. (NEW) (Effective July 1, 2019) Not later than the first day that 96
134+one or more guests occupy a short-term rental property pursuant to a 97
135+short-term rental transaction, the short-term rental operator who is a 98
136+party to such transaction shall send a notice, in a form and manner 99
137+prescribed by the commissioner, to the owner, lessor or sublessor of 100
138+such short-term rental property, as applicable, and all owners, lessors, 101
139+lessees, sublessors and sublessees of abutting and adjacent dwelling 102
140+units disclosing: 103
141+(1) The name of such short-term rental operator; 104
142+(2) The address of such short-term rental property; 105 Raised Bill No. 7177
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144+
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146+LCO No. 4429 5 of 54
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148+(3) That such short-term rental operator entered into a short-term 106
149+rental transaction with one or more guests; 107
150+(4) The name of each guest occupying such short-term rental 108
151+property pursuant to such short-term rental transaction; and 109
152+(5) The first and last dates on which such guest or guests are entitled 110
153+to occupy such short-term rental property pursuant to such short-term 111
154+rental transaction. 112
155+Sec. 4. (NEW) (Effective July 1, 2019) No short-term rental property 113
156+shall be occupied by guests for more than ninety days during a 114
157+calendar year, unless the short-term rental operator resides in such 115
158+short-term rental property at all times when guests occupy such short-116
159+term rental property during the calendar year. 117
160+Sec. 5. (NEW) (Effective July 1, 2019) The commissioner may adopt 118
161+regulations, in accordance with the provisions of chapter 54 of the 119
162+general statutes, to implement the provisions of sections 1 to 4, 120
163+inclusive, of this act. 121
164+Sec. 6. (NEW) (Effective July 1, 2019) The Insurance Commissioner 122
165+shall adopt regulations, in accordance with the provisions of chapter 123
166+54 of the general statutes, prescribing the minimum provisions to be 124
167+included in all property and casualty policies issued on or after the 125
168+effective date of such regulations covering short-term rental properties, 126
169+as such term is defined in section 1 of this act. Such policies shall 127
170+include liability coverage of not less than one million dollars against 128
171+claims for bodily injury or death and property damage. 129
172+Sec. 7. (NEW) (Effective July 1, 2019) Any municipality may, by vote 130
173+of its legislative body or, in a municipality where the legislative body 131
174+is a town meeting, by vote of the board of selectmen, levy a tax on each 132
175+short-term rental operator operating one or more short-term rental 133
176+properties, as both terms are defined in section 1 of this act, within 134
177+such municipality, provided such tax shall not exceed an amount that 135
178+is equal to six per cent of such short-term rental operator's income 136 Raised Bill No. 7177
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180+
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182+LCO No. 4429 6 of 54
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184+from all short-term rental transactions, as defined in section 1 of this 137
185+act, concerning such short-term rental properties during the tax year 138
186+for which such tax is levied. 139
187+Sec. 8. Section 12-407 of the general statutes is repealed and the 140
188+following is substituted in lieu thereof (Effective July 1, 2019, and 141
189+applicable to sales occurring on or after July 1, 2019): 142
190+(a) Whenever used in this chapter: 143
191+(1) "Person" means and includes any individual, firm, 144
192+copartnership, joint venture, association, association of persons 145
193+however formed, social club, fraternal organization, corporation, 146
194+limited liability company, foreign municipal electric utility as defined 147
195+in section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the 148
196+United States, this state or any political subdivision thereof or any 149
197+group or combination acting as a unit, and any other individual or 150
198+officer acting under the authority of any court in this state. 151
199+(2) "Sale" and "selling" mean and include: 152
200+(A) Any transfer of title, exchange or barter, conditional or 153
201+otherwise, in any manner or by any means whatsoever, of tangible 154
202+personal property for a consideration; 155
203+(B) Any withdrawal, except a withdrawal pursuant to a transaction 156
204+in foreign or interstate commerce, of tangible personal property from 157
205+the place where it is located for delivery to a point in this state for the 158
206+purpose of the transfer of title, exchange or barter, conditional or 159
207+otherwise, in any manner or by any means whatsoever, of the property 160
208+for a consideration; 161
209+(C) The producing, fabricating, processing, printing or imprinting of 162
210+tangible personal property for a consideration for consumers who 163
211+furnish either directly or indirectly the materials used in the 164
212+producing, fabricating, processing, printing or imprinting, including, 165
213+but not limited to, sign construction, photofinishing, duplicating and 166 Raised Bill No. 7177
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215+
216+
217+LCO No. 4429 7 of 54
218+
219+photocopying; 167
220+(D) The furnishing and distributing of tangible personal property 168
221+for a consideration by social clubs and fraternal organizations to their 169
222+members or others; 170
223+(E) The furnishing, preparing, or serving for a consideration of food, 171
224+meals or drinks; 172
225+(F) A transaction whereby the possession of property is transferred 173
226+but the seller retains the title as security for the payment of the price; 174
227+(G) A transfer for a consideration of the title of tangible personal 175
228+property which has been produced, fabricated or printed to the special 176
229+order of the customer, or of any publication, including, but not limited 177
230+to, sign construction, photofinishing, duplicating and photocopying; 178
231+(H) A transfer for a consideration of the occupancy of any room or 179
232+rooms in a hotel, lodging house, [or] bed and breakfast establishment 180
233+or short-term rental property for a period of thirty consecutive 181
234+calendar days or less; 182
235+(I) The rendering of certain services, as defined in subdivision (37) 183
236+of this subsection, for a consideration, exclusive of such services 184
237+rendered by an employee for the employer; 185
238+(J) The leasing or rental of tangible personal property of any kind 186
239+whatsoever, including, but not limited to, motor vehicles, linen or 187
240+towels, machinery or apparatus, office equipment and data processing 188
241+equipment, provided for purposes of this subdivision and the 189
242+application of sales and use tax to contracts of lease or rental of 190
243+tangible personal property, the leasing or rental of any motion picture 191
244+film by the owner or operator of a motion picture theater for purposes 192
245+of display at such theater shall not constitute a sale within the meaning 193
246+of this subsection; 194
247+(K) The rendering of telecommunications service, as defined in 195
248+subdivision (26) of this subsection, for a consideration on or after 196 Raised Bill No. 7177
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250+
251+
252+LCO No. 4429 8 of 54
253+
254+January 1, 1990, exclusive of any such service rendered by an employee 197
255+for the employer of such employee, subject to the provisions related to 198
256+telecommunications service in accordance with section 12-407a; 199
257+(L) (i) The rendering of community antenna television service, as 200
258+defined in subdivision (27) of this subsection, for a consideration on or 201
259+after January 1, 1990, exclusive of any such service rendered by an 202
260+employee for the employer of such employee. For purposes of this 203
261+chapter, "community antenna television service" includes service 204
262+provided by a holder of a certificate of cable franchise authority 205
263+pursuant to section 16-331p, and service provided by a community 206
264+antenna television company issued a certificate of video franchise 207
265+authority pursuant to section 16-331e for any service area in which it 208
266+was not certified to provide community antenna television service 209
267+pursuant to section 16-331 on or before October 1, 2007; 210
268+(ii) The rendering of certified competitive video service, as defined 211
269+in subdivision (38) of this subsection, for consideration on or after 212
270+October 1, 2007, exclusive of any such service rendered by an 213
271+employee for the employer of such employee; 214
272+(M) The transfer for consideration of space or the right to use any 215
273+space for the purpose of storage or mooring of any noncommercial 216
274+vessel, exclusive of dry or wet storage or mooring of such vessel 217
275+during the period commencing on the first day of October in any year 218
276+to and including the thirty-first day of May of the next succeeding 219
277+year; 220
278+(N) The sale for consideration of naming rights to any place of 221
279+amusement, entertainment or recreation within the meaning of 222
280+subdivision (3) of section 12-540; 223
281+(O) The transfer for consideration of a prepaid telephone calling 224
282+service, as defined in subdivision (34) of this subsection, and the 225
283+recharge of a prepaid telephone calling service, provided, if the sale or 226
284+recharge of a prepaid telephone calling service does not take place at 227
285+the retailer's place of business and an item is shipped by the retailer to 228 Raised Bill No. 7177
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287+
288+
289+LCO No. 4429 9 of 54
290+
291+the customer, the sale or recharge shall be deemed to take place at the 229
292+customer's shipping address, but, if such sale or recharge does not take 230
293+place at the retailer's place of business and no item is shipped by the 231
294+retailer to the customer, the sale or recharge shall be deemed to take 232
295+place at the customer's billing address or the location associated with 233
296+the customer's mobile telephone number; and 234
297+(P) The furnishing by any person, for a consideration, of space for 235
298+storage of tangible personal property when such person is engaged in 236
299+the business of furnishing such space, but "sale" and "selling" do not 237
300+mean or include the furnishing of space which is used by a person for 238
301+residential purposes. As used in this subparagraph, "space for storage" 239
302+means secure areas, such as rooms, units, compartments or containers, 240
303+whether accessible from outside or from within a building, that are 241
304+designated for the use of a customer, where the customer can store and 242
305+retrieve property, including self-storage units, mini-storage units and 243
306+areas by any other name to which the customer has either unlimited 244
307+free access or free access within reasonable business hours or upon 245
308+reasonable notice to the service provider to add or remove property, 246
309+but does not mean the rental of an entire building, such as a 247
310+warehouse. For purposes of this subparagraph, furnishing space for 248
311+storage shall not include general warehousing and storage, where the 249
312+warehouse typically handles, stores and retrieves a customer's 250
313+property using the warehouse's staff and equipment and does not 251
314+allow the customer free access to the storage space and shall not 252
315+include accepting specific items of property for storage, such as 253
316+clothing at a dry cleaning establishment or golf bags at a golf club. 254
317+(3) (A) "Retail sale" or "sale at retail" means and includes a sale for 255
318+any purpose other than resale in the regular course of business of 256
319+tangible personal property or a transfer for a consideration of the 257
320+occupancy of any room or rooms in a hotel, lodging house, [or] bed 258
321+and breakfast establishment or short-term rental property for a period 259
322+of thirty consecutive calendar days or less, or the rendering of any 260
323+service described in subdivision (2) of this subsection. The delivery in 261
324+this state of tangible personal property by an owner or former owner 262 Raised Bill No. 7177
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326+
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328+LCO No. 4429 10 of 54
329+
330+thereof or by a factor, if the delivery is to a consumer pursuant to a 263
331+retail sale made by a retailer not engaged in business in this state, is a 264
332+retail sale in this state by the person making the delivery. Such person 265
333+shall include the retail selling price of the property in such person's 266
334+gross receipts. 267
335+(B) "Retail sale" or "sale at retail" does not include any sale of any 268
336+tangible personal property, where, no later than one hundred twenty 269
337+days after the original sale, the original purchaser sells or becomes 270
338+contractually obligated to sell such property to a retailer who is 271
339+contractually obligated to lease such property back to such original 272
340+purchaser in a lease that is taxable under this chapter or the sale of 273
341+such property by the original purchaser to the retailer who is 274
342+contractually obligated to lease such property back to such original 275
343+purchaser in a lease that is taxable under this chapter. If the original 276
344+purchaser has paid sales or use tax on the original sale of such 277
345+property to the original purchaser, such original purchaser may (i) 278
346+claim a refund of such tax under the provisions of section 12-425, upon 279
347+presentation of proof satisfactory to the commissioner that the mutual 280
348+contractual obligations described in this subparagraph w ere 281
349+undertaken no later than one hundred twenty days after the original 282
350+sale and that such tax was paid to the original retailer on the original 283
351+sale and was remitted to the commissioner by such original retailer or 284
352+by such original purchaser, or (ii) issue at the time of such original sale 285
353+or no later than one hundred twenty days thereafter a certificate, in the 286
354+form prescribed by the commissioner, to the original retailer certifying 287
355+that the mutual contractual obligations described in this subparagraph 288
356+have been undertaken. If such certificate is issued to the original 289
357+retailer at the time of the original sale, no tax on the original sale shall 290
358+be collected by the original retailer from the original purchaser. If the 291
359+certificate is issued after the time of the original sale but no later than 292
360+one hundred twenty days thereafter, the original retailer shall refund 293
361+to the original purchaser the tax collected on the original sale and, if 294
362+the original retailer has previously remitted the tax to the 295
363+commissioner, the original retailer may either treat the amount so 296 Raised Bill No. 7177
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365+
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369+refunded as a credit against the tax due on the return next filed under 297
370+this chapter, or claim a refund under section 12-425. If such certificate 298
371+is issued no later than one hundred twenty days after the time of the 299
372+original sale but the tangible personal property originally purchased is 300
373+not, in fact, subsequently leased by the original purchaser, such 301
374+original purchaser shall be liable for and be required to pay the tax due 302
375+on the original sale. 303
376+(4) "Storage" includes any keeping or retention in this state for any 304
377+purpose except sale in the regular course of business or subsequent use 305
378+solely outside this state of tangible personal property purchased from 306
379+a retailer. 307
380+(5) "Use" includes the exercise of any right or power over tangible 308
381+personal property incident to the ownership of that property, except 309
382+that it does not include the sale of that property in the regular course 310
383+of business. 311
384+(6) "Storage" and "use" do not include (A) keeping, retaining or 312
385+exercising any right or power over tangible personal property shipped 313
386+or brought into this state for the purpose of subsequently transporting 314
387+it outside the state for use thereafter solely outside the state, or for the 315
388+purpose of being processed, fabricated or manufactured into, attached 316
389+to or incorporated into, other tangible personal property to be 317
390+transported outside the state and thereafter used solely outside the 318
391+state, or (B) keeping, retaining or exercising any right or power over 319
392+tangible personal property acquired by the customer of a commercial 320
393+printer while such property is located at the premises of the 321
394+commercial printer in this state pursuant to a contract with such 322
395+printer for printing and distribution of printed material if the 323
396+commercial printer could have acquired such property without 324
397+application of tax under this chapter. 325
398+(7) "Purchase" and "purchasing" means and includes: (A) Any 326
399+transfer, exchange or barter, conditional or otherwise, in any manner 327
400+or by any means whatsoever, of tangible personal property or of the 328 Raised Bill No. 7177
401+
402+
403+
404+LCO No. 4429 12 of 54
405+
406+occupancy of any room or rooms in a hotel, lodging house, [or] bed 329
407+and breakfast establishment or short-term rental property for a period 330
408+of thirty consecutive calendar days or less for a consideration; (B) a 331
409+transaction whereby the possession of property is transferred but the 332
410+seller retains the title as security for the payment of the price; (C) a 333
411+transfer for a consideration of tangible personal property which has 334
412+been produced, fabricated or printed to the special order of the 335
413+customer, or of any publication; (D) when performed outside this state 336
414+or when the customer gives a resale certificate pursuant to section 12-337
415+410, the producing, fabricating, processing, printing or imprinting of 338
416+tangible personal property for a consideration for consumers who 339
417+furnish either directly or indirectly the materials used in the 340
418+producing, fabricating, processing, printing or imprinting; (E) the 341
419+acceptance or receipt of any service described in any of the 342
420+subparagraphs of subdivision (2) of this subsection; (F) any leasing or 343
421+rental of tangible personal property. Wherever in this chapter 344
422+reference is made to the purchase or purchasing of tangible personal 345
423+property, it shall be construed to include purchases as described in this 346
424+subsection. 347
425+(8) (A) "Sales price" means the total amount for which tangible 348
426+personal property is sold by a retailer, the total amount of rent for 349
427+which occupancy of a room is transferred by an operator, the total 350
428+amount for which any service described in subdivision (2) of this 351
429+subsection is rendered by a retailer or the total amount of payment or 352
430+periodic payments for which tangible personal property is leased by a 353
431+retailer, valued in money, whether paid in money or otherwise, which 354
432+amount is due and owing to the retailer or operator and, subject to the 355
433+provisions of subdivision (1) of section 12-408, as amended by this act, 356
434+whether or not actually received by the retailer or operator, without 357
435+any deduction on account of any of the following: (i) The cost of the 358
436+property sold; (ii) the cost of materials used, labor or service cost, 359
437+interest charged, losses or any other expenses; (iii) for any sale 360
438+occurring on or after July 1, 1993, any charges by the retailer to the 361
439+purchaser for shipping or delivery, notwithstanding whether such 362 Raised Bill No. 7177
440+
441+
442+
443+LCO No. 4429 13 of 54
444+
445+charges are separately stated in a written contract, or on a bill or 363
446+invoice rendered to such purchaser or whether such shipping or 364
447+delivery is provided by the retailer or a third party. The provisions of 365
448+subparagraph (A) (iii) of this subdivision shall not apply to any item 366
449+exempt from taxation pursuant to section 12-412. Such total amount 367
450+includes any services that are a part of the sale; except as otherwise 368
451+provided in subparagraph (B)(v) or (B)(vi) of this subdivision, any 369
452+amount for which credit is given to the purchaser by the retailer, and 370
453+all compensation and all employment-related expenses, whether or not 371
454+separately stated, paid to or on behalf of employees of a retailer of any 372
455+service described in subdivision (2) of this subsection. 373
456+(B) "Sales price" does not include any of the following: (i) Cash 374
457+discounts allowed and taken on sales; (ii) any portion of the amount 375
458+charged for property returned by purchasers, which upon rescission of 376
459+the contract of sale is refunded either in cash or credit, provided the 377
460+property is returned within ninety days from the date of purchase; (iii) 378
461+the amount of any tax, not including any manufacturers' or importers' 379
462+excise tax, imposed by the United States upon or with respect to retail 380
463+sales whether imposed upon the retailer or the purchaser; (iv) the 381
464+amount charged for labor rendered in installing or applying the 382
465+property sold, provided such charge is separately stated and exclusive 383
466+of such charge for any service rendered within the purview of 384
467+subparagraph (I) of subdivision (37) of this subsection; (v) unless the 385
468+provisions of subdivision (4) of section 12-430 or of section 12-430a are 386
469+applicable, any amount for which credit is given to the purchaser by 387
470+the retailer, provided such credit is given solely for property of the 388
471+same kind accepted in part payment by the retailer and intended by 389
472+the retailer to be resold; (vi) the full face value of any coupon used by a 390
473+purchaser to reduce the price paid to a retailer for an item of tangible 391
474+personal property, whether or not the retailer will be reimbursed for 392
475+such coupon, in whole or in part, by the manufacturer of the item of 393
476+tangible personal property or by a third party; (vii) the amount 394
477+charged for separately stated compensation, fringe benefits, workers' 395
478+compensation and payroll taxes or assessments paid to or on behalf of 396 Raised Bill No. 7177
479+
480+
481+
482+LCO No. 4429 14 of 54
483+
484+employees of a retailer who has contracted to manage a service 397
485+recipient's property or business premises and renders management 398
486+services described in subparagraph (I) or (J) of subdivision (37) of this 399
487+subsection, provided, the employees perform such services solely for 400
488+the service recipient at its property or business premises and "sales 401
489+price" shall include the separately stated compensation, fringe benefits, 402
490+workers' compensation and payroll taxes or assessments paid to or on 403
491+behalf of any employee of the retailer who is an officer, director or 404
492+owner of more than five per cent of the outstanding capital stock of the 405
493+retailer. Determination whether an employee performs services solely 406
494+for a service recipient at its property or business premises for purposes 407
495+of this subdivision shall be made by reference to such employee's 408
496+activities during the time period beginning on the later of the 409
497+commencement of the management contract, the date of the 410
498+employee's first employment by the retailer or the date which is six 411
499+months immediately preceding the date of such determination; (viii) 412
500+the amount charged for separately stated compensation, fringe 413
501+benefits, workers' compensation and payroll taxes or assessments paid 414
502+to or on behalf of (I) a leased employee, or (II) a worksite employee by 415
503+a professional employer organization pursuant to a professional 416
504+employer agreement. For purposes of this subparagraph, an employee 417
505+shall be treated as a leased employee if the employee is provided to the 418
506+client at the commencement of an agreement with an employee leasing 419
507+organization under which at least seventy-five per cent of the 420
508+employees provided to the client at the commencement of such initial 421
509+agreement qualify as leased employees pursuant to Section 414(n) of 422
510+the Internal Revenue Code of 1986, or any subsequent corresponding 423
511+internal revenue code of the United States, as from time to time 424
512+amended, or the employee is added to the client's workforce by the 425
513+employee leasing organization subsequent to the commencement of 426
514+such initial agreement and qualifies as a leased employee pursuant to 427
515+Section 414(n) of said Internal Revenue Code of 1986 without regard to 428
516+subparagraph (B) of paragraph (2) thereof. A leased employee, or a 429
517+worksite employee subject to a professional employer agreement, shall 430
518+not include any employee who is hired by a temporary help service 431 Raised Bill No. 7177
519+
520+
521+
522+LCO No. 4429 15 of 54
523+
524+and assigned to support or supplement the workforce of a temporary 432
525+help service's client; (ix) any amount received by a retailer from a 433
526+purchaser as the battery deposit that is required to be paid under 434
527+subsection (a) of section 22a-245h; the refund value of a beverage 435
528+container that is required to be paid under subsection (a) of section 436
529+22a-244; or a deposit that is required by law to be paid by the 437
530+purchaser to the retailer and that is required by law to be refunded to 438
531+the purchaser by the retailer when the same or similar tangible 439
532+personal property is delivered as required by law to the retailer by the 440
533+purchaser, if such amount is separately stated on the bill or invoice 441
534+rendered by the retailer to the purchaser; and (x) the amount charged 442
535+for separately stated compensation, fringe benefits, workers' 443
536+compensation and payroll taxes or assessments paid to a media payroll 444
537+services company, as defined in this subsection. 445
538+(9) (A) "Gross receipts" means the total amount of the sales price 446
539+from retail sales of tangible personal property by a retailer, the total 447
540+amount of the rent from transfers of occupancy of rooms by an 448
541+operator, the total amount of the sales price from retail sales of any 449
542+service described in subdivision (2) of this subsection by a retailer of 450
543+services, or the total amount of payment or periodic payments from 451
544+leases or rentals of tangible personal property by a retailer, valued in 452
545+money, whether received in money or otherwise, which amount is due 453
546+and owing to the retailer or operator and, subject to the provisions of 454
547+subdivision (1) of section 12-408, as amended by this act, whether or 455
548+not actually received by the retailer or operator, without any deduction 456
549+on account of any of the following: (i) The cost of the property sold; 457
550+however, in accordance with such regulations as the Commissioner of 458
551+Revenue Services may prescribe, a deduction may be taken if the 459
552+retailer has purchased property for some other purpose than resale, 460
553+has reimbursed the retailer's vendor for tax which the vendor is 461
554+required to pay to the state or has paid the use tax with respect to the 462
555+property, and has resold the property prior to making any use of the 463
556+property other than retention, demonstration or display while holding 464
557+it for sale in the regular course of business. If such a deduction is taken 465 Raised Bill No. 7177
558+
559+
560+
561+LCO No. 4429 16 of 54
562+
563+by the retailer, no refund or credit will be allowed to the retailer's 466
564+vendor with respect to the sale of the property; (ii) the cost of the 467
565+materials used, labor or service cost, interest paid, losses or any other 468
566+expense; (iii) for any sale occurring on or after July 1, 1993, except for 469
567+any item exempt from taxation pursuant to section 12-412, any charges 470
568+by the retailer to the purchaser for shipping or delivery, 471
569+notwithstanding whether such charges are separately stated in the 472
570+written contract, or on a bill or invoice rendered to such purchaser or 473
571+whether such shipping or delivery is provided by the retailer or a third 474
572+party. The total amount of the sales price includes any services that are 475
573+a part of the sale; all receipts, cash, credits and property of any kind; 476
574+except as otherwise provided in subparagraph (B)(v) or (B)(vi) of this 477
575+subdivision, any amount for which credit is allowed by the retailer to 478
576+the purchaser; and all compensation and all employment-related 479
577+expenses, whether or not separately stated, paid to or on behalf of 480
578+employees of a retailer of any service described in subdivision (2) of 481
579+this subsection. 482
580+(B) "Gross receipts" do not include any of the following: (i) Cash 483
581+discounts allowed and taken on sales; (ii) any portion of the sales price 484
582+of property returned by purchasers, which upon rescission of the 485
583+contract of sale is refunded either in cash or credit, provided the 486
584+property is returned within ninety days from the date of sale; (iii) the 487
585+amount of any tax, not including any manufacturers' or importers' 488
586+excise tax, imposed by the United States upon or with respect to retail 489
587+sales whether imposed upon the retailer or the purchaser; (iv) the 490
588+amount charged for labor rendered in installing or applying the 491
589+property sold, provided such charge is separately stated and exclusive 492
590+of such charge for any service rendered within the purview of 493
591+subparagraph (I) of subdivision (37) of this subsection; (v) unless the 494
592+provisions of subdivision (4) of section 12-430 or of section 12-430a are 495
593+applicable, any amount for which credit is given to the purchaser by 496
594+the retailer, provided such credit is given solely for property of the 497
595+same kind accepted in part payment by the retailer and intended by 498
596+the retailer to be resold; (vi) the full face value of any coupon used by a 499 Raised Bill No. 7177
597+
598+
599+
600+LCO No. 4429 17 of 54
601+
602+purchaser to reduce the price paid to the retailer for an item of tangible 500
603+personal property, whether or not the retailer will be reimbursed for 501
604+such coupon, in whole or in part, by the manufacturer of the item of 502
605+tangible personal property or by a third party; (vii) the amount 503
606+charged for separately stated compensation, fringe benefits, workers' 504
607+compensation and payroll taxes or assessments paid to or on behalf of 505
608+employees of a retailer who has contracted to manage a service 506
609+recipient's property or business premises and renders management 507
610+services described in subparagraph (I) or (J) of subdivision (37) of this 508
611+subsection, provided the employees perform such services solely for 509
612+the service recipient at its property or business premises and "gross 510
613+receipts" shall include the separately stated compensation, fringe 511
614+benefits, workers' compensation and payroll taxes or assessments paid 512
615+to or on behalf of any employee of the retailer who is an officer, 513
616+director or owner of more than five per cent of the outstanding capital 514
617+stock of the retailer. Determination whether an employee performs 515
618+services solely for a service recipient at its property or business 516
619+premises for purposes of this subdivision shall be made by reference to 517
620+such employee's activities during the time period beginning on the 518
621+later of the commencement of the management contract, the date of the 519
622+employee's first employment by the retailer or the date which is six 520
623+months immediately preceding the date of such determination; (viii) 521
624+the amount charged for separately stated compensation, fringe 522
625+benefits, workers' compensation and payroll taxes or assessments paid 523
626+to or on behalf of (I) a leased employee, or (II) a worksite employee by 524
627+a professional employer organization pursuant to a professional 525
628+employer agreement. For purposes of this subparagraph, an employee 526
629+shall be treated as a leased employee if the employee is provided to the 527
630+client at the commencement of an agreement with an employee leasing 528
631+organization under which at least seventy-five per cent of the 529
632+employees provided to the client at the commencement of such initial 530
633+agreement qualify as leased employees pursuant to Section 414(n) of 531
634+the Internal Revenue Code of 1986, or any subsequent corresponding 532
635+internal revenue code of the United States, as from time to time 533
636+amended, or the employee is added to the client's workforce by the 534 Raised Bill No. 7177
637+
638+
639+
640+LCO No. 4429 18 of 54
641+
642+employee leasing organization subsequent to the commencement of 535
643+such initial agreement and qualifies as a leased employee pursuant to 536
644+Section 414(n) of said Internal Revenue Code of 1986 without regard to 537
645+subparagraph (B) of paragraph (2) thereof. A leased employee, or a 538
646+worksite employee subject to a professional employer agreement, shall 539
647+not include any employee who is hired by a temporary help service 540
648+and assigned to support or supplement the workforce of a temporary 541
649+help service's client; (ix) the amount received by a retailer from a 542
650+purchaser as the battery deposit that is required to be paid under 543
651+subsection (a) of section 22a-256h; the refund value of a beverage 544
652+container that is required to be paid under subsection (a) of section 545
653+22a-244 or a deposit that is required by law to be paid by the purchaser 546
654+to the retailer and that is required by law to be refunded to the 547
655+purchaser by the retailer when the same or similar tangible personal 548
656+property is delivered as required by law to the retailer by the 549
657+purchaser, if such amount is separately stated on the bill or invoice 550
658+rendered by the retailer to the purchaser; and (x) the amount charged 551
659+for separately stated compensation, fringe benefits, workers' 552
660+compensation and payroll taxes or assessments paid to a media payroll 553
661+services company, as defined in this subsection. 554
662+(10) "Business" includes any activity engaged in by any person or 555
663+caused to be engaged in by any person with the object of gain, benefit 556
664+or advantage, either direct or indirect. 557
665+(11) "Seller" includes every person engaged in the business of selling 558
666+tangible personal property or rendering any service described in any of 559
667+the subparagraphs of subdivision (2) of this subsection, the gross 560
668+receipts from the retail sale of which are required to be included in the 561
669+measure of the sales tax and every operator as defined in subdivision 562
670+(18) of this subsection. 563
671+(12) "Retailer" includes: 564
672+(A) Every person engaged in the business of making sales at retail or 565
673+in the business of making retail sales at auction of tangible personal 566 Raised Bill No. 7177
674+
675+
676+
677+LCO No. 4429 19 of 54
678+
679+property owned by the person or others; 567
680+(B) Every person engaged in the business of making sales for 568
681+storage, use or other consumption or in the business of making sales at 569
682+auction of tangible personal property owned by the person or others 570
683+for storage, use or other consumption; 571
684+(C) Every operator, as defined in subdivision (18) of this subsection; 572
685+(D) Every seller rendering any service described in subdivision (2) 573
686+of this subsection; 574
687+(E) Every person under whom any salesman, representative, 575
688+peddler or canvasser operates in this state, or from whom such 576
689+salesman, representative, peddler or canvasser obtains the tangible 577
690+personal property that is sold; 578
691+(F) Every person with whose assistance any seller is enabled to 579
692+solicit orders within this state; 580
693+(G) Every person making retail sales from outside this state to a 581
694+destination within this state who engages in regular or systematic 582
695+solicitation of sales of tangible personal property in this state (i) by the 583
696+display of advertisements on billboards or other outdoor advertising in 584
697+this state, (ii) by the distribution of catalogs, periodicals, advertising 585
698+flyers or other advertising by means of print, radio or television media, 586
699+or (iii) by mail, telegraphy, telephone, computer data base, cable, optic, 587
700+microwave, Internet or other communication system, for the purpose 588
701+of effecting retail sales of tangible personal property, provided such 589
702+person has gross receipts of at least two hundred fifty thousand dollars 590
703+and made two hundred or more retail sales from outside this state to 591
704+destinations within this state during the twelve-month period ended 592
705+on the September thirtieth immediately preceding the monthly or 593
706+quarterly period with respect to which such person's liability for tax 594
707+under this chapter is determined; 595
708+(H) Any person owned or controlled, either directly or indirectly, by 596 Raised Bill No. 7177
709+
710+
711+
712+LCO No. 4429 20 of 54
713+
714+a retailer engaged in business in this state which is the same as or 597
715+similar to the line of business in which such person so owned or 598
716+controlled is engaged; 599
717+(I) Any person owned or controlled, either directly or indirectly, by 600
718+the same interests that own or control, either directly or indirectly, a 601
719+retailer engaged in business in this state which is the same as or similar 602
720+to the line of business in which such person so owned or controlled is 603
721+engaged; 604
722+(J) Any assignee of a person engaged in the business of leasing 605
723+tangible personal property to others, where leased property of such 606
724+person which is subject to taxation under this chapter is situated 607
725+within this state and such assignee has a security interest, as defined in 608
726+subdivision (35) of subsection (b) of section 42a-1-201, in such 609
727+property; 610
728+(K) Every person making retail sales of items of tangible personal 611
729+property from outside this state to a destination within this state who 612
730+repairs or services such items, under a warranty, in this state, either 613
731+directly or indirectly through an agent, independent contractor or 614
732+subsidiary; 615
733+(L) Every person making sales of tangible personal property or 616
734+services through an agreement with another person located in this 617
735+state under which such person located in this state, for a commission 618
736+or other consideration that is based upon the sale of tangible personal 619
737+property or services by the retailer, directly or indirectly refers 620
738+potential customers, whether by a link on an Internet web site or 621
739+otherwise, to the retailer, provided the cumulative gross receipts from 622
740+sales by the retailer to customers in the state who are referred to the 623
741+retailer by all such persons with this type of an agreement with the 624
742+retailer, is in excess of two hundred fifty thousand dollars during the 625
743+preceding four quarterly periods ending on the last day of March, 626
744+June, September and December; and 627
745+(M) Any marketplace facilitator, as defined in section 12-408e. 628 Raised Bill No. 7177
746+
747+
748+
749+LCO No. 4429 21 of 54
750+
751+(13) "Tangible personal property" means personal property which 629
752+may be seen, weighed, measured, felt or touched or which is in any 630
753+other manner perceptible to the senses including canned or prewritten 631
754+computer software. Tangible personal property includes the 632
755+distribution, generation or transmission of electricity. 633
756+(14) "In this state" or "in the state" means within the exterior limits of 634
757+the state of Connecticut and includes all territory within these limits 635
758+owned by or ceded to the United States of America. 636
759+(15) (A) "Engaged in business in the state" means and, to the extent 637
760+not prohibited by the Constitution of the United States, includes, but 638
761+shall not be limited to, the following acts or methods of transacting 639
762+business: (i) Selling in this state, or any activity in this state in 640
763+connection with selling in this state, tangible personal property for use, 641
764+storage or consumption within the state; (ii) engaging in the transfer 642
765+for a consideration of the occupancy of any room or rooms in a hotel, 643
766+lodging house, [or] bed and breakfast establishment or short-term 644
767+rental property for a period of thirty consecutive calendar days or less; 645
768+(iii) rendering in this state any service described in any of the 646
769+subparagraphs of subdivision (2) of this subsection; (iv) maintaining, 647
770+occupying or using, permanently or temporarily, directly or indirectly, 648
771+through a subsidiary or agent, by whatever name called, any office, 649
772+place of distribution, sales or sample room or place, warehouse or 650
773+storage point or other place of business or having any representative, 651
774+agent, salesman, canvasser or solicitor operating in this state for the 652
775+purpose of selling, delivering or taking orders; (v) notwithstanding the 653
776+fact that retail sales are made from outside this state to a destination 654
777+within this state, engaging in regular or systematic solicitation of sales 655
778+of tangible personal property in this state by the display of 656
779+advertisements on billboards or other outdoor advertising in this state, 657
780+by the distribution of catalogs, periodicals, advertising flyers or other 658
781+advertising by means of print, radio or television media, or by mail, 659
782+telegraphy, telephone, computer data base, cable, optic, microwave, 660
783+Internet or other communication system, for the purpose of effecting 661
784+retail sales of tangible personal property, provided at least two 662 Raised Bill No. 7177
785+
786+
787+
788+LCO No. 4429 22 of 54
789+
790+hundred fifty thousand dollars of gross receipts are received and two 663
791+hundred or more retail sales from outside this state to destinations 664
792+within this state are made during the twelve-month period ended on 665
793+the September thirtieth immediately preceding the monthly or 666
794+quarterly period with respect to which liability for tax under this 667
795+chapter is determined; (vi) being owned or controlled, either directly 668
796+or indirectly, by a retailer engaged in business in this state which is the 669
797+same as or similar to the line of business in which the retailer so owned 670
798+or controlled is engaged; (vii) being owned or controlled, either 671
799+directly or indirectly, by the same interests that own or control, either 672
800+directly or indirectly, a retailer engaged in business in this state which 673
801+is the same as or similar to the line of business in which the retailer so 674
802+owned or controlled is engaged; (viii) being the assignee of a person 675
803+engaged in the business of leasing tangible personal property to others, 676
804+where leased property of such person is situated within this state and 677
805+such assignee has a security interest, as defined in subdivision (35) of 678
806+subsection (b) of section 42a-1-201, in such property; (ix) 679
807+notwithstanding the fact that retail sales of items of tangible personal 680
808+property are made from outside this state to a destination within this 681
809+state, repairing or servicing such items, under a warranty, in this state, 682
810+either directly or indirectly through an agent, independent contractor 683
811+or subsidiary; and (x) selling tangible personal property or services 684
812+through an agreement with a person located in this state, under which 685
813+such person located in this state, for a commission or other 686
814+consideration that is based upon the sale of tangible personal property 687
815+or services by the retailer, directly or indirectly refers potential 688
816+customers, whether by a link on an Internet web site or otherwise, to 689
817+the retailer, provided the cumulative gross receipts from sales by the 690
818+retailer to customers in the state who are referred to the retailer by all 691
819+such persons with this type of agreement with the retailer is in excess 692
820+of two hundred fifty thousand dollars during the four preceding four 693
821+quarterly periods ending on the last day of March, June, September 694
822+and December. 695
823+(B) A retailer who has contracted with a commercial printer for 696 Raised Bill No. 7177
824+
825+
826+
827+LCO No. 4429 23 of 54
828+
829+printing and distribution of printed material shall not be deemed to be 697
830+engaged in business in this state because of the ownership or leasing 698
831+by the retailer of tangible or intangible personal property located at the 699
832+premises of the commercial printer in this state, the sale by the retailer 700
833+of property of any kind produced or processed at and shipped or 701
834+distributed from the premises of the commercial printer in this state, 702
835+the activities of the retailer's employees or agents at the premises of the 703
836+commercial printer in this state, which activities relate to quality 704
837+control, distribution or printing services performed by the printer, or 705
838+the activities of any kind performed by the commercial printer in this 706
839+state for or on behalf of the retailer. 707
840+(C) A retailer not otherwise engaged in business in the state who 708
841+purchases fulfillment services carried on in this state by a person other 709
842+than an affiliated person, or who owns tangible personal property 710
843+located on the premises of an unaffiliated person other than a 711
844+marketplace facilitator, as defined in section 12-408e, performing 712
845+fulfillment services for such retailer, shall not be deemed to be engaged 713
846+in business in this state. For purposes of this subparagraph, (i) persons 714
847+are affiliated persons with respect to each other where one of such 715
848+persons has an ownership interest of more than five per cent, whether 716
849+direct or indirect, in the other, or where an ownership interest of more 717
850+than five per cent, whether direct or indirect, is held in each of such 718
851+persons by another person or by a group of other persons who are 719
852+affiliated persons with respect to each other, and (ii) "fulfillment 720
853+services" means services that are performed by a person on its 721
854+premises on behalf of a purchaser of such services and that involve the 722
855+receipt of orders from the purchaser of such services or an agent 723
856+thereof, which orders are to be filled by the person from an inventory 724
857+of products that are offered for sale by the purchaser of such services, 725
858+and the shipment of such orders outside this state to customers of the 726
859+purchaser of such services. 727
860+(D) A retailer not otherwise engaged in business in this state that 728
861+participates in a trade show or shows at the convention center, as 729
862+defined in subdivision (3) of section 32-600, shall not be deemed to be 730 Raised Bill No. 7177
863+
864+
865+
866+LCO No. 4429 24 of 54
867+
868+engaged in business in this state, regardless of whether the retailer has 731
869+employees or other staff present at such trade shows, provided the 732
870+retailer's activity at such trade shows is limited to displaying goods or 733
871+promoting services, no sales are made, any orders received are sent 734
872+outside this state for acceptance or rejection and are filled from outside 735
873+this state, and provided further that such participation is not more 736
874+than fourteen days, or part thereof, in the aggregate during the 737
875+retailer's income year for federal income tax purposes. 738
876+(16) "Hotel" means any building regularly used and kept open as 739
877+such for the feeding and lodging of guests where any person who 740
878+conducts himself properly and who is able and ready to pay for such 741
879+services is received if there are accommodations for such person and 742
880+which derives the major portion of its operating receipts from the 743
881+renting of rooms and the sale of food. "Hotel" includes any apartment 744
882+hotel wherein apartments are rented for fixed periods of time, 745
883+furnished or unfurnished, while the keeper of such hotel supplies food 746
884+to the occupants thereof, if required, but does not include a bed and 747
885+breakfast establishment or short-term rental property. 748
886+(17) "Lodging house" means any building or portion of a building, 749
887+other than a hotel, an apartment hotel, [or] a bed and breakfast 750
888+establishment or a short-term rental property, in which persons are 751
889+lodged for hire with or without meals, including, but not limited to, 752
890+any motel, motor court, motor inn, tourist court, furnished residence or 753
891+similar accommodation; provided the terms "hotel", "apartment hotel", 754
892+"lodging house", [and "bed and breakfast"] "bed and breakfast 755
893+establishment" and "short-term rental property" shall not be construed 756
894+to include: (A) Privately owned and operated convalescent homes, 757
895+residential care homes, homes for the infirm, indigent or chronically ill; 758
896+(B) religious or charitable homes for the aged, infirm, indigent or 759
897+chronically ill; (C) privately owned and operated summer camps for 760
898+children; (D) summer camps for children operated by religious or 761
899+charitable organizations; (E) lodging accommodations at educational 762
900+institutions; or (F) lodging accommodations at any facility operated by 763
901+and in the name of any nonprofit charitable organization, provided the 764 Raised Bill No. 7177
902+
903+
904+
905+LCO No. 4429 25 of 54
906+
907+income from such lodging accommodations at such facility is not 765
908+subject to federal income tax. 766
909+(18) "Operator" means any person operating a hotel, lodging house, 767
910+[or] bed and breakfast establishment or short-term rental property in 768
911+the state, including, but not limited to, the owner or proprietor of such 769
912+premises, lessee, sublessee, mortgagee in possession, licensee or any 770
913+other person otherwise operating such hotel, lodging house, [or] bed 771
914+and breakfast establishment or short-term rental property. 772
915+(19) "Occupancy" means the use or possession, or the right to the 773
916+use or possession, of any room or rooms in a hotel, lodging house, [or] 774
917+bed and breakfast establishment or short-term rental property, or the 775
918+right to the use or possession of the furnishings or the services and 776
919+accommodations accompanying the use and possession of such room 777
920+or rooms, for the first period of not more than thirty consecutive 778
921+calendar days. 779
922+(20) "Room" means any room or rooms of any kind in any part or 780
923+portion of a hotel, lodging house, [or] bed and breakfast establishment 781
924+or short-term rental property let out for use or possession for lodging 782
925+purposes. 783
926+(21) "Rent" means the consideration received for occupancy and any 784
927+meals included with such occupancy, valued in money, whether 785
928+received in money or otherwise, including all receipts, cash, credits 786
929+and property or services of any kind or nature, and also any amount 787
930+for which credit is allowed by the operator to the occupant, without 788
931+any deduction therefrom whatsoever. 789
932+(22) "Certificated air carrier" means a person issued a certificate or 790
933+certificates by the Federal Aviation Administration pursuant to Title 791
934+14, Chapter I, Subchapter G, Part 121, 135, 139 or 141 of the Code of 792
935+Federal Regulations or the Civil Aeronautics Board pursuant to Title 793
936+14, Chapter II, Subchapter A, Parts 201 to 208, inclusive, and 298 of the 794
937+Code of Federal Regulations, as such regulations may hereafter be 795
938+amended or reclassified. 796 Raised Bill No. 7177
939+
940+
941+
942+LCO No. 4429 26 of 54
943+
944+(23) "Aircraft" means aircraft, as the term is defined in section 15-34. 797
945+(24) "Vessel" means vessel, as the term is defined in section 15-127. 798
946+(25) "Licensed marine dealer" means a marine dealer, as the term is 799
947+defined in section 15-141, who has been issued a marine dealer's 800
948+certificate by the Commissioner of Energy and Environmental 801
949+Protection. 802
950+(26) (A) "Telecommunications service" means the electronic 803
951+transmission, conveyance or routing of voice, image, data, audio, video 804
952+or any other information or signals to a point or between or among 805
953+points. "Telecommunications service" includes such transmission, 806
954+conveyance or routing in which computer processing applications are 807
955+used to act on the form, code or protocol of the content for purposes of 808
956+transmission, conveyance or routing without regard to whether such 809
957+service is referred to as a voice over Internet protocol service or is 810
958+classified by the Federal Communications Commission as enhanced or 811
959+value added. "Telecommunications service" does not include (i) value-812
960+added nonvoice data services, (ii) radio and television audio and video 813
961+programming services, regardless of the medium, including the 814
962+furnishing of transmission, conveyance or routing of such services by 815
963+the programming service provider. Radio and television audio and 816
964+video programming services shall include, but not be limited to, cable 817
965+service as defined in 47 USC 522(6), audio and video programming 818
966+services delivered by commercial mobile radio service providers, as 819
967+defined in 47 CFR 20, and video programming service by certified 820
968+competitive video service providers, (iii) any telecommunications 821
969+service (I) rendered by a company in control of such service when 822
970+rendered for private use within its organization, or (II) used, allocated 823
971+or distributed by a company within its organization, including in such 824
972+organization affiliates, as defined in section 33-840, for the purpose of 825
973+conducting business transactions of the organization if such service is 826
974+purchased or leased from a company rendering telecommunications 827
975+service and such purchase or lease is subject to tax under this chapter, 828
976+(iv) access or interconnection service purchased by a provider of 829 Raised Bill No. 7177
977+
978+
979+
980+LCO No. 4429 27 of 54
981+
982+telecommunications service from another provider of such service for 830
983+purposes of rendering such service, provided the purchaser submits to 831
984+the seller a certificate attesting to the applicability of this exclusion, 832
985+upon receipt of which the seller is relieved of any tax liability for such 833
986+sale so long as the certificate is taken in good faith by the seller, (v) 834
987+data processing and information services that allow data to be 835
988+generated, acquired, stored, processed or retrieved and delivered by 836
989+an electronic transmission to a purchaser where such purchaser's 837
990+primary purpose for the underlying transaction is the processed data 838
991+or information, (vi) installation or maintenance of wiring equipment 839
992+on a customer's premises, (vii) tangible personal property, (viii) 840
993+advertising, including, but not limited to, directory advertising, (ix) 841
994+billing and collection services provided to third parties, (x) Internet 842
995+access service, (xi) ancillary services, and (xii) digital products 843
996+delivered electronically, including, but not limited to, software, music, 844
997+video, reading materials or ring tones. 845
998+(B) For purposes of the tax imposed under this chapter (i) gross 846
999+receipts from the rendering of telecommunications service shall 847
1000+include any subscriber line charge or charges as required by the 848
1001+Federal Communications Commission and any charges for access 849
1002+service collected by any person rendering such service unless 850
1003+otherwise excluded from such gross receipts under this chapter, and 851
1004+such gross receipts from the rendering of telecommunications service 852
1005+shall also include any charges for vertical service, for the installation or 853
1006+maintenance of wiring equipment on a customer's premises, and for 854
1007+directory assistance service; (ii) gross receipts from the rendering of 855
1008+telecommunications service shall not include any local charge for calls 856
1009+from public or semipublic telephones; and (iii) gross receipts from the 857
1010+rendering of telecommunications service shall not include any charge 858
1011+for calls purchased using a prepaid telephone calling service, as 859
1012+defined in subdivision (34) of this subsection. 860
1013+(27) "Community antenna television service" means (A) the one-way 861
1014+transmission to subscribers of video programming or information by 862
1015+cable, fiber optics, satellite, microwave or any other means, and 863 Raised Bill No. 7177
1016+
1017+
1018+
1019+LCO No. 4429 28 of 54
1020+
1021+subscriber interaction, if any, which is required for the selection of 864
1022+such video programming or informati on, and (B) noncable 865
1023+communications service, as defined in section 16-1, unless such 866
1024+noncable communications service is purchased by a cable network as 867
1025+that term is used in subsection (k) of section 12-218. 868
1026+(28) "Hospital" means a hospital included within the definition of 869
1027+health care facilities or institutions under section 19a-630 and licensed 870
1028+as a short-term general hospital by the Department of Public Health, 871
1029+but does not include (A) any hospital which, on January 30, 1997, is 872
1030+within the class of hospitals licensed by the department as children's 873
1031+general hospitals, or (B) a short-term acute hospital operated 874
1032+exclusively by the state other than a short-term acute hospital operated 875
1033+by the state as a receiver pursuant to chapter 920. 876
1034+(29) "Patient care services" means therapeutic and diagnostic 877
1035+medical services provided by the hospital to inpatients and outpatients 878
1036+including tangible personal property transferred in connection with 879
1037+such services. 880
1038+(30) "Another state" or "other state" means any state of the United 881
1039+States or the District of Columbia excluding the state of Connecticut. 882
1040+(31) "Professional employer agreement" means a written contract 883
1041+between a professional employer organization and a service recipient 884
1042+whereby the professional employer organization agrees to provide at 885
1043+least seventy-five per cent of the employees at the service recipient's 886
1044+worksite, which contract provides that such worksite employees are 887
1045+intended to be permanent employees rather than temporary 888
1046+employees, and employer responsibilities for such worksite 889
1047+employees, including hiring, firing and disciplining, are allocated 890
1048+between the professional employer organization and the service 891
1049+recipient. 892
1050+(32) "Professional employer organization" means any person that 893
1051+enters into a professional employer agreement with a service recipient 894
1052+whereby the professional employer organization agrees to provide at 895 Raised Bill No. 7177
1053+
1054+
1055+
1056+LCO No. 4429 29 of 54
1057+
1058+least seventy-five per cent of the employees at the service recipient's 896
1059+worksite. 897
1060+(33) "Worksite employee" means an employee, the employer 898
1061+responsibilities for which, including hiring, firing and disciplining, are 899
1062+allocated, under a professional employer agreement, between a 900
1063+professional employer organization and a service recipient. 901
1064+(34) "Prepaid telephone calling service" means the right to 902
1065+exclusively purchase telecommunications service, that must be paid for 903
1066+in advance and that enables the origination of calls using an access 904
1067+number or authorization code, or both, whether manually or 905
1068+electronically dialed, provided the remaining amount of units of 906
1069+service that have been prepaid shall be known on a continuous basis. 907
1070+(35) "Canned or prewritten software" means all software, other than 908
1071+custom software, that is held or existing for general or repeated sale, 909
1072+license or lease. Software initially developed as custom software for in-910
1073+house use and subsequently sold, licensed or leased to unrelated third 911
1074+parties shall be considered canned or prewritten software. 912
1075+(36) "Custom software" means a computer program prepared to the 913
1076+special order of a single customer. 914
1077+(37) "Services" for purposes of subdivision (2) of this subsection, 915
1078+means: 916
1079+(A) Computer and data processing services, including, but not 917
1080+limited to, time, programming, code writing, modification of existing 918
1081+programs, feasibility studies and installation and implementation of 919
1082+software programs and systems even where such services are rendered 920
1083+in connection with the development, creation or production of canned 921
1084+or custom software or the license of custom software; 922
1085+(B) Credit information and reporting services; 923
1086+(C) Services by employment agencies and agencies providing 924
1087+personnel services; 925 Raised Bill No. 7177
1088+
1089+
1090+
1091+LCO No. 4429 30 of 54
1092+
1093+(D) Private investigation, protection, patrol work, watchman and 926
1094+armored car services, exclusive of (i) services of off-duty police officers 927
1095+and off-duty firefighters, and (ii) coin and currency services provided 928
1096+to a financial services company by or through another financial 929
1097+services company. For purposes of this subparagraph, "financial 930
1098+services company" has the same meaning as provided under 931
1099+subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 932
1100+of section 12-218b; 933
1101+(E) Painting and lettering services; 934
1102+(F) Photographic studio services; 935
1103+(G) Telephone answering services; 936
1104+(H) Stenographic services; 937
1105+(I) Services to industrial, commercial or income-producing real 938
1106+property, including, but not limited to, such services as management, 939
1107+electrical, plumbing, painting and carpentry, provided 940
1108+income-producing property shall not include property used 941
1109+exclusively for residential purposes in which the owner resides and 942
1110+which contains no more than three dwelling units, or a housing facility 943
1111+for low and moderate income families and persons owned or operated 944
1112+by a nonprofit housing organization, as defined in subdivision (29) of 945
1113+section 12-412; 946
1114+(J) Business analysis, management, management consulting and 947
1115+public relations services, excluding (i) any environmental consulting 948
1116+services, (ii) any training services provided by an institution of higher 949
1117+education licensed or accredited by the Board of Regents for Higher 950
1118+Education or Office of Higher Education pursuant to sections 10a-35a 951
1119+and 10a-34, respectively, and (iii) on and after January 1, 1994, any 952
1120+business analysis, management, management consulting and public 953
1121+relations services when such services are rendered in connection with 954
1122+an aircraft leased or owned by a certificated air carrier or in connection 955
1123+with an aircraft which has a maximum certificated take-off weight of 956 Raised Bill No. 7177
1124+
1125+
1126+
1127+LCO No. 4429 31 of 54
1128+
1129+six thousand pounds or more; 957
1130+(K) Services providing "piped-in" music to business or professional 958
1131+establishments; 959
1132+(L) Flight instruction and chartering services by a certificated air 960
1133+carrier on an aircraft, the use of which for such purposes, but for the 961
1134+provisions of subdivision (4) of section 12-410 and subdivision (12) of 962
1135+section 12-411, as amended by this act, would be deemed a retail sale 963
1136+and a taxable storage or use, respectively, of such aircraft by such 964
1137+carrier; 965
1138+(M) Motor vehicle repair services, including any type of repair, 966
1139+painting or replacement related to the body or any of the operating 967
1140+parts of a motor vehicle; 968
1141+(N) Motor vehicle parking, including the provision of space, other 969
1142+than metered space, in a lot having thirty or more spaces, excluding (i) 970
1143+space in a parking lot owned or leased under the terms of a lease of not 971
1144+less than ten years' duration and operated by an employer for the 972
1145+exclusive use of its employees, (ii) space in municipally operated 973
1146+railroad parking facilities in municipalities located within an area of 974
1147+the state designated as a severe nonattainment area for ozone under 975
1148+the federal Clean Air Act or space in a railroad parking facility in a 976
1149+municipality located within an area of the state designated as a severe 977
1150+nonattainment area for ozone under the federal Clean Air Act owned 978
1151+or operated by the state on or after April 1, 2000, (iii) space in a 979
1152+seasonal parking lot provided by an entity subject to the exemption set 980
1153+forth in subdivision (1) of section 12-412, and (iv) space in a 981
1154+municipally owned parking lot; 982
1155+(O) Radio or television repair services; 983
1156+(P) Furniture reupholstering and repair services; 984
1157+(Q) Repair services to any electrical or electronic device, including, 985
1158+but not limited to, equipment used for purposes of refrigeration or 986 Raised Bill No. 7177
1159+
1160+
1161+
1162+LCO No. 4429 32 of 54
1163+
1164+air-conditioning; 987
1165+(R) Lobbying or consulting services for purposes of representing the 988
1166+interests of a client in relation to the functions of any governmental 989
1167+entity or instrumentality; 990
1168+(S) Services of the agent of any person in relation to the sale of any 991
1169+item of tangible personal property for such person, exclusive of the 992
1170+services of a consignee selling works of art, as defined in subsection (b) 993
1171+of section 12-376c, or articles of clothing or footwear intended to be 994
1172+worn on or about the human body other than (i) any special clothing 995
1173+or footwear primarily designed for athletic activity or protective use 996
1174+and which is not normally worn except when used for the athletic 997
1175+activity or protective use for which it was designed, and (ii) jewelry, 998
1176+handbags, luggage, umbrellas, wallets, watches and similar items 999
1177+carried on or about the human body but not worn on the body, under 1000
1178+consignment, exclusive of services provided by an auctioneer; 1001
1179+(T) Locksmith services; 1002
1180+(U) Advertising or public relations services, including layout, art 1003
1181+direction, graphic design, mechanical preparation or production 1004
1182+supervision, not related to the development of media advertising or 1005
1183+cooperative direct mail advertising; 1006
1184+(V) Landscaping and horticulture services; 1007
1185+(W) Window cleaning services; 1008
1186+(X) Maintenance services; 1009
1187+(Y) Janitorial services; 1010
1188+(Z) Exterminating services; 1011
1189+(AA) Swimming pool cleaning and maintenance services; 1012
1190+(BB) Miscellaneous personal services included in industry group 729 1013
1191+in the Standard Industrial Classification Manual, United States Office 1014 Raised Bill No. 7177
1192+
1193+
1194+
1195+LCO No. 4429 33 of 54
1196+
1197+of Management and Budget, 1987 edition, or U.S. industry 532220, 1015
1198+812191, 812199 or 812990 in the North American Industrial 1016
1199+Classification System United States Manual, United States Office of 1017
1200+Management and Budget, 1997 edition, exclusive of (i) services 1018
1201+rendered by massage therapists licensed pursuant to chapter 384a, and 1019
1202+(ii) services rendered by an electrologist licensed pursuant to chapter 1020
1203+388; 1021
1204+(CC) Any repair or maintenance service to any item of tangible 1022
1205+personal property including any contract of warranty or service related 1023
1206+to any such item; 1024
1207+(DD) Business analysis, management or managing consulting 1025
1208+services rendered by a general partner, or an affiliate thereof, to a 1026
1209+limited partnership, provided (i) the general partner, or an affiliate 1027
1210+thereof, is compensated for the rendition of such services other than 1028
1211+through a distributive share of partnership profits or an annual 1029
1212+percentage of partnership capital or assets established in the limited 1030
1213+partnership's offering statement, and (ii) the general partner, or an 1031
1214+affiliate thereof, offers such services to others, including any other 1032
1215+partnership. As used in this subparagraph "an affiliate of a general 1033
1216+partner" means an entity which is directly or indirectly owned fifty per 1034
1217+cent or more in common with a general partner; 1035
1218+(EE) Notwithstanding the provisions of section 12-412, except 1036
1219+subdivision (87) of said section 12-412, patient care services, as defined 1037
1220+in subdivision (29) of this subsection by a hospital, except that "sale" 1038
1221+and "selling" does not include such patient care services for which 1039
1222+payment is received by the hospital during the period commencing 1040
1223+July 1, 2001, and ending June 30, 2003; 1041
1224+(FF) Health and athletic club services, exclusive of (i) any such 1042
1225+services provided without any additional charge which are included in 1043
1226+any dues or initiation fees paid to any such club, which dues or fees 1044
1227+are subject to tax under section 12-543, and (ii) any such services 1045
1228+provided by a municipality or an organization that is described in 1046 Raised Bill No. 7177
1229+
1230+
1231+
1232+LCO No. 4429 34 of 54
1233+
1234+Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1047
1235+corresponding internal revenue code of the United States, as from time 1048
1236+to time amended; 1049
1237+(GG) Motor vehicle storage services, including storage of motor 1050
1238+homes, campers and camp trailers, other than the furnishing of space 1051
1239+as described in subparagraph (P) of subdivision (2) of this subsection; 1052
1240+(HH) Packing and crating services, other than those provided in 1053
1241+connection with the sale of tangible personal property by the retailer of 1054
1242+such property; 1055
1243+(II) Motor vehicle towing and road services, other than motor 1056
1244+vehicle repair services; 1057
1245+(JJ) Intrastate transportation services provided by livery services, 1058
1246+including limousines, community cars or vans, with a driver. Intrastate 1059
1247+transportation services shall not include transportation by taxicab, 1060
1248+motor bus, ambulance or ambulette, scheduled public transportation, 1061
1249+nonemergency medical transportation provided under the Medicaid 1062
1250+program, paratransit services provided by agreement or arrangement 1063
1251+with the state or any political subdivision of the state, dial-a-ride 1064
1252+services or services provided in connection with funerals; 1065
1253+(KK) Pet grooming and pet boarding services, except if such services 1066
1254+are provided as an integral part of professional veterinary services, 1067
1255+and pet obedience services; 1068
1256+(LL) Services in connection with a cosmetic medical procedure. For 1069
1257+purposes of this subparagraph, "cosmetic medical procedure" means 1070
1258+any medical procedure performed on an individual that is directed at 1071
1259+improving the individual's appearance and that does not meaningfully 1072
1260+promote the proper function of the body or prevent or treat illness or 1073
1261+disease. "Cosmetic medical procedure" includes, but is not limited to, 1074
1262+cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 1075
1263+tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 1076
1264+skin resurfacing, laser treatment of leg veins and sclerotherapy. 1077 Raised Bill No. 7177
1265+
1266+
1267+
1268+LCO No. 4429 35 of 54
1269+
1270+"Cosmetic medical procedure" does not include reconstructive surgery. 1078
1271+"Reconstructive surgery" includes any surgery performed on abnormal 1079
1272+structures caused by or related to congenital defects, developmental 1080
1273+abnormalities, trauma, infection, tumors or disease, including 1081
1274+procedures to improve function or give a more normal appearance; 1082
1275+(MM) Manicure services, pedicure services and all other nail 1083
1276+services, regardless of where performed, including airbrushing, fills, 1084
1277+full sets, nail sculpting, paraffin treatments and polishes; 1085
1278+(NN) Spa services, regardless of where performed, including body 1086
1279+waxing and wraps, peels, scrubs and facials; and 1087
1280+(OO) Car wash services, including coin-operated car washes. 1088
1281+(38) "Media payroll services company" means a retailer whose 1089
1282+principal business activity is the management and payment of 1090
1283+compensation, fringe benefits, workers' compensation, payroll taxes or 1091
1284+assessments to individuals providing services to an eligible production 1092
1285+company pursuant to section 12-217jj. 1093
1286+(39) "Certified competitive video service" means video 1094
1287+programming service provided through wireline facilities, a portion of 1095
1288+which are located in the public right-of-way, without regard to 1096
1289+delivery technology, including Internet protocol technology. "Certified 1097
1290+competitive video service" does not include any video programming 1098
1291+provided by a commercial mobile service provider, as defined in 47 1099
1292+USC 332(d); any video programming provided as part of community 1100
1293+antenna television service; any video programming provided as part 1101
1294+of, and via, a service that enables users to access content, information, 1102
1295+electronic mail or other services over the Internet. 1103
1296+(40) "Directory assistance" means an ancillary service of providing 1104
1297+telephone number information or address information. 1105
1298+(41) "Vertical service" means an ancillary service that is offered in 1106
1299+connection with one or more telecommunications services, offering 1107 Raised Bill No. 7177
1300+
1301+
1302+
1303+LCO No. 4429 36 of 54
1304+
1305+advanced calling features that allow customers to identify callers and 1108
1306+to manage multiple calls and call connections, including conference 1109
1307+bridging services. 1110
1308+(42) "Bed and breakfast establishment" means any private operator-1111
1309+occupied house, other than a hotel, [or] lodging house or short-term 1112
1310+rental property, with twelve or fewer rooms in which persons are 1113
1311+lodged for hire and a full morning meal is included in the rent. 1114
1312+(43) "Short-term rental property" means any dwelling unit, other 1115
1313+than a hotel, lodging house or bed and breakfast establishment, in 1116
1314+which a guest is lodged for hire, with or without meals, pursuant to a 1117
1315+short-term rental transaction. For the purposes of this subdivision, 1118
1316+"dwelling unit", "guest" and "short-term rental transaction" have the 1119
1317+same meanings as provided in section 1 of this act. 1120
1318+(b) Wherever in this chapter reference is made to the sale of tangible 1121
1319+personal property or services, it shall be construed to include sales 1122
1320+described in subdivision (2) of subsection (a) of this section, except as 1123
1321+may be specifically provided to the contrary. 1124
1322+Sec. 9. Section 12-408 of the general statutes is repealed and the 1125
1323+following is substituted in lieu thereof (Effective July 1, 2019, and 1126
1324+applicable to sales occurring on or after July 1, 2019): 1127
1325+(1) (A) For the privilege of making any sales, as defined in 1128
1326+subdivision (2) of subsection (a) of section 12-407, as amended by this 1129
1327+act, at retail, in this state for a consideration, a tax is hereby imposed 1130
1328+on all retailers at the rate of six and thirty-five-hundredths per cent of 1131
1329+the gross receipts of any retailer from the sale of all tangible personal 1132
1330+property sold at retail or from the rendering of any services 1133
1331+constituting a sale in accordance with subdivision (2) of subsection (a) 1134
1332+of section 12-407, as amended by this act, except, in lieu of said rate of 1135
1333+six and thirty-five-hundredths per cent, the rates provided in 1136
1334+subparagraphs (B) to (H), inclusive, of this subdivision; 1137
1335+(B) (i) At a rate of fifteen per cent with respect to each transfer of 1138 Raised Bill No. 7177
1336+
1337+
1338+
1339+LCO No. 4429 37 of 54
1340+
1341+occupancy, from the total amount of rent received by a hotel or 1139
1342+lodging house for the first period not exceeding thirty consecutive 1140
1343+calendar days; 1141
1344+(ii) At a rate of eleven per cent with respect to each transfer of 1142
1345+occupancy, from the total amount of rent received by a bed and 1143
1346+breakfast establishment for the first period not exceeding thirty 1144
1347+consecutive calendar days; 1145
1348+(iii) At a rate of five per cent with respect to each transfer of 1146
1349+occupancy to a guest, as such term is defined in section 1 of this act, 1147
1350+from the total amount of rent received by a short-term rental operator, 1148
1351+as such term is defined in said section, for the first period not 1149
1352+exceeding thirty consecutive calendar days; 1150
1353+(C) With respect to the sale of a motor vehicle to any individual who 1151
1354+is a member of the armed forces of the United States and is on full-time 1152
1355+active duty in Connecticut and who is considered, under 50 App USC 1153
1356+574, a resident of another state, or to any such individual and the 1154
1357+spouse thereof, at a rate of four and one-half per cent of the gross 1155
1358+receipts of any retailer from such sales, provided such retailer requires 1156
1359+and maintains a declaration by such individual, prescribed as to form 1157
1360+by the commissioner and bearing notice to the effect that false 1158
1361+statements made in such declaration are punishable, or other evidence, 1159
1362+satisfactory to the commissioner, concerning the purchaser's state of 1160
1363+residence under 50 App USC 574; 1161
1364+(D) (i) With respect to the sales of computer and data processing 1162
1365+services occurring on or after July 1, 2001, at the rate of one per cent, 1163
1366+and (ii) with respect to sales of Internet access services, on and after 1164
1367+July 1, 2001, such services shall be exempt from such tax; 1165
1368+(E) (i) With respect to the sales of labor that is otherwise taxable 1166
1369+under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 1167
1370+section 12-407, as amended by this act, on existing vessels and repair or 1168
1371+maintenance services on vessels occurring on and after July 1, 1999, 1169
1372+such services shall be exempt from such tax; 1170 Raised Bill No. 7177
1373+
1374+
1375+
1376+LCO No. 4429 38 of 54
1377+
1378+(ii) With respect to the sale of a vessel, a motor for a vessel or a 1171
1379+trailer used for transporting a vessel, at the rate of two and ninety-1172
1380+nine-hundredths per cent, except that the sale of a vessel shall be 1173
1381+exempt from such tax if such vessel is docked in this state for sixty or 1174
1382+fewer days in a calendar year; 1175
1383+(F) With respect to patient care services for which payment is 1176
1384+received by the hospital on or after July 1, 1999, and prior to July 1, 1177
1385+2001, at the rate of five and three-fourths per cent and on and after July 1178
1386+1, 2001, such services shall be exempt from such tax; 1179
1387+(G) With respect to the rental or leasing of a passenger motor 1180
1388+vehicle for a period of thirty consecutive calendar days or less, at a rate 1181
1389+of nine and thirty-five-hundredths per cent; 1182
1390+(H) With respect to the sale of (i) a motor vehicle for a sales price 1183
1391+exceeding fifty thousand dollars, at a rate of seven and three-fourths 1184
1392+per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1185
1393+for a sales price exceeding five thousand dollars, at a rate of seven and 1186
1394+three-fourths per cent on the entire sales price, and (iii) an article of 1187
1395+clothing or footwear intended to be worn on or about the human body, 1188
1396+a handbag, luggage, umbrella, wallet or watch for a sales price 1189
1397+exceeding one thousand dollars, at a rate of seven and three-fourths 1190
1398+per cent on the entire sales price. For purposes of this subparagraph, 1191
1399+"motor vehicle" has the meaning provided in section 14-1, but does not 1192
1400+include a motor vehicle subject to the provisions of subparagraph (C) 1193
1401+of this subdivision, a motor vehicle having a gross vehicle weight 1194
1402+rating over twelve thousand five hundred pounds, or a motor vehicle 1195
1403+having a gross vehicle weight rating of twelve thousand five hundred 1196
1404+pounds or less that is not used for private passenger purposes, but is 1197
1405+designed or used to transport merchandise, freight or persons in 1198
1406+connection with any business enterprise and issued a commercial 1199
1407+registration or more specific type of registration by the Department of 1200
1408+Motor Vehicles; 1201
1409+(I) The rate of tax imposed by this chapter shall be applicable to all 1202 Raised Bill No. 7177
1410+
1411+
1412+
1413+LCO No. 4429 39 of 54
1414+
1415+retail sales upon the effective date of such rate, except that a new rate 1203
1416+which represents an increase in the rate applicable to the sale shall not 1204
1417+apply to any sales transaction wherein a binding sales contract without 1205
1418+an escalator clause has been entered into prior to the effective date of 1206
1419+the new rate and delivery is made within ninety days after the effective 1207
1420+date of the new rate. For the purposes of payment of the tax imposed 1208
1421+under this section, any retailer of services taxable under subdivision 1209
1422+(37) of subsection (a) of section 12-407, as amended by this act, who 1210
1423+computes taxable income, for purposes of taxation under the Internal 1211
1424+Revenue Code of 1986, or any subsequent corresponding internal 1212
1425+revenue code of the United States, as from time to time amended, on 1213
1426+an accounting basis which recognizes only cash or other valuable 1214
1427+consideration actually received as income and who is liable for such 1215
1428+tax only due to the rendering of such services may make payments 1216
1429+related to such tax for the period during which such income is 1217
1430+received, without penalty or interest, without regard to when such 1218
1431+service is rendered; 1219
1432+(J) (i) For calendar quarters ending on or after September 30, 2019, 1220
1433+the commissioner shall deposit into the regional planning incentive 1221
1434+account, established pursuant to section 4-66k, six and seven-tenths 1222
1435+per cent of the amounts received by the state from the tax imposed 1223
1436+under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 1224
1437+subdivision and ten and seven-tenths per cent of the amounts received 1225
1438+by the state from the tax imposed under subparagraph (G) of this 1226
1439+subdivision; 1227
1440+(ii) For calendar quarters ending on or after September 30, 2018, the 1228
1441+commissioner shall deposit into the Tourism Fund established under 1229
1442+section 10-395b ten per cent of the amounts received by the state from 1230
1443+the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1231
1444+(B)(ii) of this subdivision; 1232
1445+(K) For calendar months commencing on or after July 1, 2021, the 1233
1446+commissioner shall deposit into the municipal revenue sharing 1234
1447+account established pursuant to section 4-66l seven and nine-tenths per 1235 Raised Bill No. 7177
1448+
1449+
1450+
1451+LCO No. 4429 40 of 54
1452+
1453+cent of the amounts received by the state from the tax imposed under 1236
1454+subparagraph (A) of this subdivision; and 1237
1455+(L) (i) For calendar months commencing on or after July 1, 2017, the 1238
1456+commissioner shall deposit into the Special Transportation Fund 1239
1457+established under section 13b-68 seven and nine-tenths per cent of the 1240
1458+amounts received by the state from the tax imposed under 1241
1459+subparagraph (A) of this subdivision; 1242
1460+(ii) For calendar months commencing on or after July 1, 2018, but 1243
1461+prior to July 1, 2019, the commissioner shall deposit into the Special 1244
1462+Transportation Fund established under section 13b-68 eight per cent of 1245
1463+the amounts received by the state from the tax imposed under 1246
14981464 subparagraphs (A) and (H) of this subdivision on the sale of a motor 1247
14991465 vehicle; 1248
1500-(v) For calendar months commencing on or after July 1, 2021, but 1249
1501-prior to July 1, 2022, the commissioner shall deposit into the Special 1250
1502-Transportation Fund established under section 13b-68 seventy-five per 1251
1466+(iii) For calendar months commencing on or after July 1, 2019, but 1249
1467+prior to July 1, 2020, the commissioner shall deposit into the Special 1250
1468+Transportation Fund established under section 13b-68 thirty-three per 1251
15031469 cent of the amounts received by the state from the tax imposed under 1252
15041470 subparagraphs (A) and (H) of this subdivision on the sale of a motor 1253
1505-vehicle; [and] 1254
1506-(vi) For calendar months commencing on or after July 1, 2022, the 1255
1507-commissioner shall deposit into the Special Transportation Fund 1256 Substitute Bill No. 7177
1508-
1509-
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1512-41 of 54
1513-
1514-established under section 13b-68 one hundred per cent of the amounts 1257
1515-received by the state from the tax imposed under subparagraphs (A) 1258
1516-and (H) of this subdivision on the sale of a motor vehicle; [.] and 1259
1517-(vii) For calendar months commencing on or after July 1, 2019, the 1260
1518-commissioner shall deposit into the Housing Trust Fund established 1261
1519-under section 8-336o fifty per cent of the amounts received by the state 1262
1520-from the tax imposed under subparagraph (B)(iii) of this subdivision. 1263
1521-(2) (A) Reimbursement for the tax hereby imposed shall be collected 1264
1522-by the retailer from the consumer and such tax reimbursement, termed 1265
1523-"tax" in this and the following subsections, shall be paid by the 1266
1524-consumer to the retailer and each retailer shall collect from the 1267
1525-consumer the full amount of the tax imposed by this chapter or an 1268
1526-amount equal as nearly as possible or practicable to the average 1269
1527-equivalent thereof. Such tax shall be a debt from the consumer to the 1270
1528-retailer, when so added to the original sales price, and shall be 1271
1529-recoverable at law in the same manner as other debts except as 1272
1530-provided in section 12-432a. The amount of tax reimbursement, when 1273
1531-so collected, shall be deemed to be a special fund in trust for the state 1274
1532-of Connecticut. 1275
1533-(B) Whenever such tax, payable by the consumer (i) with respect to 1276
1534-a charge account or credit sale occurring on or after July 1, 1984, is 1277
1535-remitted by the retailer to the commissioner and such sale as an 1278
1536-account receivable is determined to be worthless and is actually 1279
1537-written off as uncollectible for federal income tax purposes, or (ii) to a 1280
1538-retailer who computes taxable income, for purposes of taxation under 1281
1539-the Internal Revenue Code of 1986, or any subsequent corresponding 1282
1540-internal revenue code of the United States, as from time to time 1283
1541-amended, on the cash basis method of accounting with respect to a sale 1284
1542-occurring on or after July 1, 1989, is remitted by the retailer to the 1285
1543-commissioner and such sale as an account receivable is determined to 1286
1544-be worthless, the amount of such tax remitted may be credited against 1287
1545-the tax due on the sales tax return filed by the retailer for the monthly 1288
1546-or quarterly period, whichever is applicable, next following the period 1289 Substitute Bill No. 7177
1547-
1548-
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1551-42 of 54
1552-
1553-in which such amount is actually so written off, but in no event shall 1290
1554-such credit be allowed later than three years following the date such 1291
1555-tax is remitted, unless the credit relates to a period for which a waiver 1292
1556-is given pursuant to subsection (g) of section 12-415. The commissioner 1293
1557-shall, by regulations adopted in accordance with chapter 54, provide 1294
1558-standards for proving any such claim for credit. If any account with 1295
1559-respect to which such credit is allowed is thereafter collected by the 1296
1560-retailer in whole or in part, the amount so collected shall be included 1297
1561-in the sales tax return covering the period in which such collection 1298
1562-occurs. The tax applicable in any such case shall be determined in 1299
1563-accordance with the rate of sales tax in effect at the time of the original 1300
1564-sale. 1301
1565-(C) (i) Any person required to collect tax in accordance with this 1302
1566-subsection who demonstrates to the satisfaction of the Commissioner 1303
1567-of Revenue Services by July first of any year that, in any two quarterly 1304
1568-periods as described in section 12-414, within the most recent four 1305
1569-consecutive quarterly periods, such person was a materialman as such 1306
1570-term is used in chapter 847, who has at least fifty per cent of such 1307
1571-person's sales of building materials to contractors, subcontractors or 1308
1572-repairmen for the improvement of real property, and is authorized by 1309
1573-said chapter to file a mechanic's lien upon such real property and 1310
1574-improvement shall, with respect to such sales made through the 1311
1575-quarterly period ending the succeeding June thirtieth, collect tax due 1312
1576-on such sales, and on sales to such contractors, subcontractors or 1313
1577-repairmen of services described in subdivision (2) of subsection (a) of 1314
1578-section 12-407, as amended by this act, with respect to such building 1315
1579-materials, for such purpose and made during such July first through 1316
1580-June thirtieth period, at the time and to the extent that such person 1317
1581-receives the receipts from, or consideration for, such sales from such 1318
1582-contractors, subcontractors or repairmen, provided if such person 1319
1583-receives a portion of such receipts or consideration, such person shall 1320
1584-collect the tax due on such portion at the time the portion is received. 1321
1585-The taxes imposed by this chapter on such receipts and consideration 1322
1586-shall be deemed imposed, solely for purposes of determining when 1323 Substitute Bill No. 7177
1587-
1588-
1589-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
1590-R01-HB.docx }
1591-43 of 54
1592-
1593-such person is required to collect and pay over such taxes to the 1324
1594-commissioner under section 12-414, when such person has received 1325
1595-payment of such receipts or consideration in money, or money's worth, 1326
1596-from such contractor, subcontractor or repairman. A contractor, 1327
1597-subcontractor or repairman who purchases building materials or 1328
1598-services from such person pursuant to this subparagraph shall, at the 1329
1599-time such contractor, subcontractor or repairman pays any portion of 1330
1600-the purchase price, pay to the person the tax due on the portion of the 1331
1601-purchase price so paid. 1332
1602-(ii) In the event that a materialman described in this subparagraph 1333
1603-factors any portion of such materialman's receivables, such 1334
1604-materialman shall be deemed to have received payment of such 1335
1605-receipts or consideration in money or money's worth, from the 1336
1606-contractor, subcontractor or repairman and shall be required to pay 1337
1607-over tax on such sale with the next return due, with a credit against 1338
1608-such tax for any tax already paid over with respect to such sale. Any 1339
1609-such amount of tax paid over shall be on account of the tax required to 1340
1610-be collected on the sale to which it relates and such materialman may 1341
1611-take a credit against any tax paid by such contractor, subcontractor or 1342
1612-repairman in the future on such sale, to ensure that tax paid over with 1343
1613-respect to such sale does not exceed the amount of tax imposed on 1344
1614-such sale as if the entire purchase price had been paid at the time of 1345
1615-sale. 1346
1616-(iii) A materialman described in this subparagraph who has not 1347
1617-collected the tax due on the full purchase price for a sale described in 1348
1618-this subparagraph from a contractor, subcontractor or repairman 1349
1619-within one year from the date of such sale, shall pay over to the 1350
1620-commissioner the tax due on any balance of such full purchase price 1351
1621-with such materialman's return for the period which includes the date 1352
1622-which is one year after the date of such sale. 1353
1623-(iv) The commissioner may assess additional tax due with respect to 1354
1624-a sale described in this subparagraph not later than three years from 1355
1625-the date the tax is required to be paid over to the commissioner 1356 Substitute Bill No. 7177
1626-
1627-
1628-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
1629-R01-HB.docx }
1630-44 of 54
1631-
1632-pursuant to this subparagraph, and in the case of a wilfully false or 1357
1633-fraudulent return with intent to evade the tax, or where no return has 1358
1634-been filed such taxpayer shall be subject to the provisions of section 12-1359
1635-428. 1360
1636-(D) In the case of a sale by a producer or wholesaler of newspapers 1361
1637-to a vendor who is not otherwise required to obtain a permit under 1362
1638-this chapter, such producer or wholesaler shall collect the sales tax on 1363
1639-such newspapers at the point of transfer to such vendor. Such tax shall 1364
1640-be based on the stated retail price of such newspapers. Such vendor 1365
1641-may add an amount to the price of the newspapers equal to the 1366
1642-amount paid as sales tax to the producer or wholesaler and such 1367
1643-vendor shall not be required to remit such amount to the state. 1368
1644-(3) For the purpose of adding and collecting the tax imposed by this 1369
1645-chapter, or an amount equal as nearly as possible or practicable to the 1370
1646-average equivalent thereof, by the retailer from the consumer the 1371
1647-following bracket system shall be in force and effect as follows: 1372
1471+vehicle; 1254
1472+(iv) For calendar months commencing on or after July 1, 2020, but 1255
1473+prior to July 1, 2021, the commissioner shall deposit into the Special 1256
1474+Transportation Fund established under section 13b-68 fifty-six per cent 1257
1475+of the amounts received by the state from the tax imposed under 1258
1476+subparagraphs (A) and (H) of this subdivision on the sale of a motor 1259
1477+vehicle; 1260
1478+(v) For calendar months commencing on or after July 1, 2021, but 1261
1479+prior to July 1, 2022, the commissioner shall deposit into the Special 1262
1480+Transportation Fund established under section 13b-68 seventy-five per 1263
1481+cent of the amounts received by the state from the tax imposed under 1264
1482+subparagraphs (A) and (H) of this subdivision on the sale of a motor 1265
1483+vehicle; [and] 1266 Raised Bill No. 7177
1484+
1485+
1486+
1487+LCO No. 4429 41 of 54
1488+
1489+(vi) For calendar months commencing on or after July 1, 2022, the 1267
1490+commissioner shall deposit into the Special Transportation Fund 1268
1491+established under section 13b-68 one hundred per cent of the amounts 1269
1492+received by the state from the tax imposed under subparagraphs (A) 1270
1493+and (H) of this subdivision on the sale of a motor vehicle; and 1271
1494+(vii) For calendar months commencing on or after July 1, 2019, the 1272
1495+commissioner shall deposit into the Housing Trust Fund established 1273
1496+under section 8-336o fifty per cent of the amounts received by the state 1274
1497+from the tax imposed under subparagraph (B)(iii) of this subdivision. 1275
1498+(2) (A) Reimbursement for the tax hereby imposed shall be collected 1276
1499+by the retailer from the consumer and such tax reimbursement, termed 1277
1500+"tax" in this and the following subsections, shall be paid by the 1278
1501+consumer to the retailer and each retailer shall collect from the 1279
1502+consumer the full amount of the tax imposed by this chapter or an 1280
1503+amount equal as nearly as possible or practicable to the average 1281
1504+equivalent thereof. Such tax shall be a debt from the consumer to the 1282
1505+retailer, when so added to the original sales price, and shall be 1283
1506+recoverable at law in the same manner as other debts except as 1284
1507+provided in section 12-432a. The amount of tax reimbursement, when 1285
1508+so collected, shall be deemed to be a special fund in trust for the state 1286
1509+of Connecticut. 1287
1510+(B) Whenever such tax, payable by the consumer (i) with respect to 1288
1511+a charge account or credit sale occurring on or after July 1, 1984, is 1289
1512+remitted by the retailer to the commissioner and such sale as an 1290
1513+account receivable is determined to be worthless and is actually 1291
1514+written off as uncollectible for federal income tax purposes, or (ii) to a 1292
1515+retailer who computes taxable income, for purposes of taxation under 1293
1516+the Internal Revenue Code of 1986, or any subsequent corresponding 1294
1517+internal revenue code of the United States, as from time to time 1295
1518+amended, on the cash basis method of accounting with respect to a sale 1296
1519+occurring on or after July 1, 1989, is remitted by the retailer to the 1297
1520+commissioner and such sale as an account receivable is determined to 1298
1521+be worthless, the amount of such tax remitted may be credited against 1299 Raised Bill No. 7177
1522+
1523+
1524+
1525+LCO No. 4429 42 of 54
1526+
1527+the tax due on the sales tax return filed by the retailer for the monthly 1300
1528+or quarterly period, whichever is applicable, next following the period 1301
1529+in which such amount is actually so written off, but in no event shall 1302
1530+such credit be allowed later than three years following the date such 1303
1531+tax is remitted, unless the credit relates to a period for which a waiver 1304
1532+is given pursuant to subsection (g) of section 12-415. The commissioner 1305
1533+shall, by regulations adopted in accordance with chapter 54, provide 1306
1534+standards for proving any such claim for credit. If any account with 1307
1535+respect to which such credit is allowed is thereafter collected by the 1308
1536+retailer in whole or in part, the amount so collected shall be included 1309
1537+in the sales tax return covering the period in which such collection 1310
1538+occurs. The tax applicable in any such case shall be determined in 1311
1539+accordance with the rate of sales tax in effect at the time of the original 1312
1540+sale. 1313
1541+(C) (i) Any person required to collect tax in accordance with this 1314
1542+subsection who demonstrates to the satisfaction of the Commissioner 1315
1543+of Revenue Services by July first of any year that, in any two quarterly 1316
1544+periods as described in section 12-414, within the most recent four 1317
1545+consecutive quarterly periods, such person was a materialman as such 1318
1546+term is used in chapter 847, who has at least fifty per cent of such 1319
1547+person's sales of building materials to contractors, subcontractors or 1320
1548+repairmen for the improvement of real property, and is authorized by 1321
1549+said chapter to file a mechanic's lien upon such real property and 1322
1550+improvement shall, with respect to such sales made through the 1323
1551+quarterly period ending the succeeding June thirtieth, collect tax due 1324
1552+on such sales, and on sales to such contractors, subcontractors or 1325
1553+repairmen of services described in subdivision (2) of subsection (a) of 1326
1554+section 12-407, as amended by this act, with respect to such building 1327
1555+materials, for such purpose and made during such July first through 1328
1556+June thirtieth period, at the time and to the extent that such person 1329
1557+receives the receipts from, or consideration for, such sales from such 1330
1558+contractors, subcontractors or repairmen, provided if such person 1331
1559+receives a portion of such receipts or consideration, such person shall 1332
1560+collect the tax due on such portion at the time the portion is received. 1333 Raised Bill No. 7177
1561+
1562+
1563+
1564+LCO No. 4429 43 of 54
1565+
1566+The taxes imposed by this chapter on such receipts and consideration 1334
1567+shall be deemed imposed, solely for purposes of determining when 1335
1568+such person is required to collect and pay over such taxes to the 1336
1569+commissioner under section 12-414, when such person has received 1337
1570+payment of such receipts or consideration in money, or money's worth, 1338
1571+from such contractor, subcontractor or repairman. A contractor, 1339
1572+subcontractor or repairman who purchases building materials or 1340
1573+services from such person pursuant to this subparagraph shall, at the 1341
1574+time such contractor, subcontractor or repairman pays any portion of 1342
1575+the purchase price, pay to the person the tax due on the portion of the 1343
1576+purchase price so paid. 1344
1577+(ii) In the event that a materialman described in this subparagraph 1345
1578+factors any portion of such materialman's receivables, such 1346
1579+materialman shall be deemed to have received payment of such 1347
1580+receipts or consideration in money or money's worth, from the 1348
1581+contractor, subcontractor or repairman and shall be required to pay 1349
1582+over tax on such sale with the next return due, with a credit against 1350
1583+such tax for any tax already paid over with respect to such sale. Any 1351
1584+such amount of tax paid over shall be on account of the tax required to 1352
1585+be collected on the sale to which it relates and such materialman may 1353
1586+take a credit against any tax paid by such contractor, subcontractor or 1354
1587+repairman in the future on such sale, to ensure that tax paid over with 1355
1588+respect to such sale does not exceed the amount of tax imposed on 1356
1589+such sale as if the entire purchase price had been paid at the time of 1357
1590+sale. 1358
1591+(iii) A materialman described in this subparagraph who has not 1359
1592+collected the tax due on the full purchase price for a sale described in 1360
1593+this subparagraph from a contractor, subcontractor or repairman 1361
1594+within one year from the date of such sale, shall pay over to the 1362
1595+commissioner the tax due on any balance of such full purchase price 1363
1596+with such materialman's return for the period which includes the date 1364
1597+which is one year after the date of such sale. 1365
1598+(iv) The commissioner may assess additional tax due with respect to 1366 Raised Bill No. 7177
1599+
1600+
1601+
1602+LCO No. 4429 44 of 54
1603+
1604+a sale described in this subparagraph not later than three years from 1367
1605+the date the tax is required to be paid over to the commissioner 1368
1606+pursuant to this subparagraph, and in the case of a wilfully false or 1369
1607+fraudulent return with intent to evade the tax, or where no return has 1370
1608+been filed such taxpayer shall be subject to the provisions of section 12-1371
1609+428. 1372
1610+(D) In the case of a sale by a producer or wholesaler of newspapers 1373
1611+to a vendor who is not otherwise required to obtain a permit under 1374
1612+this chapter, such producer or wholesaler shall collect the sales tax on 1375
1613+such newspapers at the point of transfer to such vendor. Such tax shall 1376
1614+be based on the stated retail price of such newspapers. Such vendor 1377
1615+may add an amount to the price of the newspapers equal to the 1378
1616+amount paid as sales tax to the producer or wholesaler and such 1379
1617+vendor shall not be required to remit such amount to the state. 1380
1618+(3) For the purpose of adding and collecting the tax imposed by this 1381
1619+chapter, or an amount equal as nearly as possible or practicable to the 1382
1620+average equivalent thereof, by the retailer from the consumer the 1383
1621+following bracket system shall be in force and effect as follows: 1384
16481622 T1 Amount of Sale Amount of Tax
16491623 T2 $0.00 to $0.07 inclusive No Tax
16501624 T3 .08 to .23 inclusive 1 cent
16511625 T4 .24 to .39 inclusive 2 cents
16521626 T5 .40 to .55 inclusive 3 cents
16531627 T6 .56 to .70 inclusive 4 cents
16541628 T7 .71 to .86 inclusive 5 cents
16551629 T8 .87 to 1.02 inclusive 6 cents
16561630 T9 1.03 to 1.18 inclusive 7 cents
16571631
1658-On all sales above $1.18, the tax shall be computed at the rate of six 1373
1659-and thirty-five-hundredths per cent. 1374
1660-(4) No retailer shall advertise or hold out or state to the public or to 1375
1661-any consumer, directly or indirectly, that the tax or any part thereof 1376
1662-will be assumed or absorbed by the retailer or that it will not be added 1377 Substitute Bill No. 7177
1663-
1664-
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1667-45 of 54
1668-
1669-to the sales price of the property sold or that, if added, it or any part 1378
1670-thereof will be refunded. Under the provisions of this section, 1379
1671-however, a retailer may advertise the sale of tangible personal 1380
1672-property by any of the following methods: By stating the sales price 1381
1673-alone without reference to the tax; by stating separately the sales price 1382
1674-and the amount of tax to be collected thereon; by stating the sales price 1383
1675-"plus tax" or "exclusive of tax" or by stating a sales price which 1384
1676-includes the tax, together with the words "tax included" or "tax incl."; 1385
1677-provided the retailer in the case of all such sales shall maintain his 1386
1678-records to show separately the actual price of such sales and the 1387
1679-amount of the tax paid thereon; and provided such retailer, if 1388
1680-requested, shall furnish the consumer with a sales slip or other like 1389
1681-evidence of the sale, showing the tax separately computed thereon. 1390
1682-Any person violating any provision of this subsection shall be fined 1391
1683-five hundred dollars for each offense. 1392
1684-(5) No retailer shall exhibit or display on his premises any notice, 1393
1685-sign or other advertising matter tending to mislead the public in 1394
1686-connection with the imposition or collection of the tax. The 1395
1687-Commissioner of Revenue Services may approve a form of notice for 1396
1688-the purpose of explaining the operation of the tax. 1397
1689-(6) The Commissioner of Revenue Services shall adopt regulations, 1398
1690-in accordance with chapter 54, establishing a procedure for 1399
1691-determination of qualifications with respect to the reduced rate of sales 1400
1692-tax in the case of certain sales of motor vehicles to members of the 1401
1693-armed forces as provided in subsection (1) of this section. 1402
1694-(7) For purposes of the tax imposed by this chapter, with respect to 1403
1695-toll telephone service paid by inserting coins in coin-operated 1404
1696-telephones, the tax shall be computed to the nearest multiple of five 1405
1697-cents, except if the tax is midway between multiples of five cents, the 1406
1698-next higher multiple shall apply. 1407
1699-Sec. 10. Section 12-411 of the general statutes is repealed and the 1408
1700-following is substituted in lieu thereof (Effective July 1, 2019, and 1409 Substitute Bill No. 7177
1701-
1702-
1703-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
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1705-46 of 54
1706-
1707-applicable to sales occurring on or after July 1, 2019): 1410
1708-(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1411
1709-consumption or any other use in this state of tangible personal 1412
1710-property purchased from any retailer for storage, acceptance, 1413
1711-consumption or any other use in this state, the acceptance or receipt of 1414
1712-any services constituting a sale in accordance with subdivision (2) of 1415
1713-subsection (a) of section 12-407, as amended by this act, purchased 1416
1714-from any retailer for consumption or use in this state, or the storage, 1417
1715-acceptance, consumption or any other use in this state of tangible 1418
1716-personal property which has been manufactured, fabricated, 1419
1717-assembled or processed from materials by a person, either within or 1420
1718-without this state, for storage, acceptance, consumption or any other 1421
1719-use by such person in this state, to be measured by the sales price of 1422
1720-materials, at the rate of six and thirty-five-hundredths per cent of the 1423
1721-sales price of such property or services, except, in lieu of said rate of six 1424
1722-and thirty-five-hundredths per cent; 1425
1723-(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or 1426
1724-lodging house for the first period not exceeding thirty consecutive 1427
1725-calendar days; 1428
1726-(ii) At a rate of eleven per cent of the rent paid to a bed and 1429
1727-breakfast establishment for the first period not exceeding thirty 1430
1728-consecutive calendar days; 1431
1729-(iii) At a rate of five per cent of the rent paid to a short-term rental 1432
1730-operator, as defined in section 1 of this act, for the first period not 1433
1731-exceeding thirty consecutive calendar days; 1434
1732-(C) With respect to the storage, acceptance, consumption or use in 1435
1733-this state of a motor vehicle purchased from any retailer for storage, 1436
1734-acceptance, consumption or use in this state by any individual who is a 1437
1735-member of the armed forces of the United States and is on full-time 1438
1736-active duty in Connecticut and who is considered, under 50 App USC 1439
1737-574, a resident of another state, or to any such individual and the 1440 Substitute Bill No. 7177
1738-
1739-
1740-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
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1742-47 of 54
1743-
1744-spouse of such individual at a rate of four and one-half per cent of the 1441
1745-sales price of such vehicle, provided such retailer requires and 1442
1746-maintains a declaration by such individual, prescribed as to form by 1443
1747-the commissioner and bearing notice to the effect that false statements 1444
1748-made in such declaration are punishable, or other evidence, 1445
1749-satisfactory to the commissioner, concerning the purchaser's state of 1446
1750-residence under 50 App USC 574; 1447
1751-(D) (i) With respect to the acceptance or receipt in this state of labor 1448
1752-that is otherwise taxable under subparagraph (C) or (G) of subdivision 1449
1753-(2) of subsection (a) of section 12-407, as amended by this act, on 1450
1754-existing vessels and repair or maintenance services on vessels 1451
1755-occurring on and after July 1, 1999, such services shall be exempt from 1452
1756-such tax; 1453
1757-(ii) (I) With respect to the storage, acceptance or other use of a vessel 1454
1758-in this state, at the rate of two and ninety-nine-hundredths per cent, 1455
1759-except that such storage, acceptance or other use shall be exempt from 1456
1760-such tax if such vessel is docked in this state for sixty or fewer days in 1457
1761-a calendar year; 1458
1762-(II) With respect to the storage, acceptance or other use of a motor 1459
1763-for a vessel or a trailer used for transporting a vessel in this state, at the 1460
1764-rate of two and ninety-nine-hundredths per cent; 1461
1765-(E) (i) With respect to the acceptance or receipt in this state of 1462
1766-computer and data processing services purchased from any retailer for 1463
1767-consumption or use in this state occurring on or after July 1, 2001, at 1464
1768-the rate of one per cent of such services, and (ii) with respect to the 1465
1769-acceptance or receipt in this state of Internet access services, on and 1466
1770-after July 1, 2001, such services shall be exempt from such tax; 1467
1771-(F) With respect to the acceptance or receipt in this state of patient 1468
1772-care services purchased from any retailer for consumption or use in 1469
1773-this state for which payment is received by the hospital on or after July 1470
1774-1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1471 Substitute Bill No. 7177
1775-
1776-
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1779-48 of 54
1780-
1781-per cent and on and after July 1, 2001, such services shall be exempt 1472
1782-from such tax; 1473
1783-(G) With respect to the rental or leasing of a passenger motor 1474
1784-vehicle for a period of thirty consecutive calendar days or less, at a rate 1475
1785-of nine and thirty-five-hundredths per cent; 1476
1786-(H) With respect to the acceptance or receipt in this state of (i) a 1477
1787-motor vehicle for a sales price exceeding fifty thousand dollars, at a 1478
1788-rate of seven and three-fourths per cent on the entire sales price, (ii) 1479
1789-jewelry, whether real or imitation, for a sales price exceeding five 1480
1790-thousand dollars, at a rate of seven and three-fourths per cent on the 1481
1791-entire sales price, and (iii) an article of clothing or footwear intended to 1482
1792-be worn on or about the human body, a handbag, luggage, umbrella, 1483
1793-wallet or watch for a sales price exceeding one thousand dollars, at a 1484
1794-rate of seven and three-fourths per cent on the entire sales price. For 1485
1795-purposes of this subparagraph, "motor vehicle" has the meaning 1486
1796-provided in section 14-1, but does not include a motor vehicle subject 1487
1797-to the provisions of subparagraph (C) of this subdivision, a motor 1488
1798-vehicle having a gross vehicle weight rating over twelve thousand five 1489
1799-hundred pounds, or a motor vehicle having a gross vehicle weight 1490
1800-rating of twelve thousand five hundred pounds or less that is not used 1491
1801-for private passenger purposes, but is designed or used to transport 1492
1802-merchandise, freight or persons in connection with any business 1493
1803-enterprise and issued a commercial registration or more specific type 1494
1804-of registration by the Department of Motor Vehicles; 1495
1805-(I) (i) For calendar quarters ending on or after September 30, 2019, 1496
1806-the commissioner shall deposit into the regional planning incentive 1497
1807-account, established pursuant to section 4-66k, six and seven-tenths 1498
1808-per cent of the amounts received by the state from the tax imposed 1499
1809-under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 1500
1810-subdivision and ten and seven-tenths per cent of the amounts received 1501
1811-by the state from the tax imposed under subparagraph (G) of this 1502
1812-subdivision; 1503 Substitute Bill No. 7177
1813-
1814-
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1817-49 of 54
1818-
1819-(ii) For calendar quarters ending on or after September 30, 2018, the 1504
1820-commissioner shall deposit into the Tourism Fund established under 1505
1821-section 10-395b ten per cent of the amounts received by the state from 1506
1822-the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1507
1823-(B)(ii) of this subdivision; 1508
1824-(J) For calendar months commencing on or after July 1, 2021, the 1509
1825-commissioner shall deposit into said municipal revenue sharing 1510
1826-account seven and nine-tenths per cent of the amounts received by the 1511
1827-state from the tax imposed under subparagraph (A) of this 1512
1828-subdivision; and 1513
1829-(K) (i) For calendar months commencing on or after July 1, 2017, the 1514
1830-commissioner shall deposit into said Special Transportation Fund 1515
1831-seven and nine-tenths per cent of the amounts received by the state 1516
1832-from the tax imposed under subparagraph (A) of this subdivision; 1517
1833-(ii) For calendar months commencing on or after July 1, 2018, but 1518
1834-prior to July 1, 2019, the commissioner shall deposit into the Special 1519
1835-Transportation Fund established under section 13b-68 eight per cent of 1520
1836-the amounts received by the state from the tax imposed under 1521
1837-subparagraphs (A) and (H) of this subdivision on the acceptance or 1522
1838-receipt in this state of a motor vehicle; 1523
1839-(iii) For calendar months commencing on or after July 1, 2019, but 1524
1840-prior to July 1, 2020, the commissioner shall deposit into the Special 1525
1841-Transportation Fund established under section 13b-68 thirty-three per 1526
1842-cent of the amounts received by the state from the tax imposed under 1527
1843-subparagraphs (A) and (H) of this subdivision on the acceptance or 1528
1844-receipt in this state of a motor vehicle; 1529
1845-(iv) For calendar months commencing on or after July 1, 2020, but 1530
1846-prior to July 1, 2021, the commissioner shall deposit into the Special 1531
1847-Transportation Fund established under section 13b-68 fifty-six per cent 1532
1848-of the amounts received by the state from the tax imposed under 1533
1849-subparagraphs (A) and (H) of this subdivision on the acceptance or 1534 Substitute Bill No. 7177
1850-
1851-
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1854-50 of 54
1855-
1632+On all sales above $1.18, the tax shall be computed at the rate of six 1385
1633+and thirty-five-hundredths per cent. 1386
1634+(4) No retailer shall advertise or hold out or state to the public or to 1387 Raised Bill No. 7177
1635+
1636+
1637+
1638+LCO No. 4429 45 of 54
1639+
1640+any consumer, directly or indirectly, that the tax or any part thereof 1388
1641+will be assumed or absorbed by the retailer or that it will not be added 1389
1642+to the sales price of the property sold or that, if added, it or any part 1390
1643+thereof will be refunded. Under the provisions of this section, 1391
1644+however, a retailer may advertise the sale of tangible personal 1392
1645+property by any of the following methods: By stating the sales price 1393
1646+alone without reference to the tax; by stating separately the sales price 1394
1647+and the amount of tax to be collected thereon; by stating the sales price 1395
1648+"plus tax" or "exclusive of tax" or by stating a sales price which 1396
1649+includes the tax, together with the words "tax included" or "tax incl."; 1397
1650+provided the retailer in the case of all such sales shall maintain his 1398
1651+records to show separately the actual price of such sales and the 1399
1652+amount of the tax paid thereon; and provided such retailer, if 1400
1653+requested, shall furnish the consumer with a sales slip or other like 1401
1654+evidence of the sale, showing the tax separately computed thereon. 1402
1655+Any person violating any provision of this subsection shall be fined 1403
1656+five hundred dollars for each offense. 1404
1657+(5) No retailer shall exhibit or display on his premises any notice, 1405
1658+sign or other advertising matter tending to mislead the public in 1406
1659+connection with the imposition or collection of the tax. The 1407
1660+Commissioner of Revenue Services may approve a form of notice for 1408
1661+the purpose of explaining the operation of the tax. 1409
1662+(6) The Commissioner of Revenue Services shall adopt regulations, 1410
1663+in accordance with chapter 54, establishing a procedure for 1411
1664+determination of qualifications with respect to the reduced rate of sales 1412
1665+tax in the case of certain sales of motor vehicles to members of the 1413
1666+armed forces as provided in subsection (1) of this section. 1414
1667+(7) For purposes of the tax imposed by this chapter, with respect to 1415
1668+toll telephone service paid by inserting coins in coin-operated 1416
1669+telephones, the tax shall be computed to the nearest multiple of five 1417
1670+cents, except if the tax is midway between multiples of five cents, the 1418
1671+next higher multiple shall apply. 1419 Raised Bill No. 7177
1672+
1673+
1674+
1675+LCO No. 4429 46 of 54
1676+
1677+Sec. 10. Section 12-411 of the general statutes is repealed and the 1420
1678+following is substituted in lieu thereof (Effective July 1, 2019, and 1421
1679+applicable to sales occurring on or after July 1, 2019): 1422
1680+(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1423
1681+consumption or any other use in this state of tangible personal 1424
1682+property purchased from any retailer for storage, acceptance, 1425
1683+consumption or any other use in this state, the acceptance or receipt of 1426
1684+any services constituting a sale in accordance with subdivision (2) of 1427
1685+subsection (a) of section 12-407, as amended by this act, purchased 1428
1686+from any retailer for consumption or use in this state, or the storage, 1429
1687+acceptance, consumption or any other use in this state of tangible 1430
1688+personal property which has been manufactured, fabricated, 1431
1689+assembled or processed from materials by a person, either within or 1432
1690+without this state, for storage, acceptance, consumption or any other 1433
1691+use by such person in this state, to be measured by the sales price of 1434
1692+materials, at the rate of six and thirty-five-hundredths per cent of the 1435
1693+sales price of such property or services, except, in lieu of said rate of six 1436
1694+and thirty-five-hundredths per cent; 1437
1695+(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or 1438
1696+lodging house for the first period not exceeding thirty consecutive 1439
1697+calendar days; 1440
1698+(ii) At a rate of eleven per cent of the rent paid to a bed and 1441
1699+breakfast establishment for the first period not exceeding thirty 1442
1700+consecutive calendar days; 1443
1701+(iii) At a rate of five per cent of the rent paid to a short-term rental 1444
1702+operator, as such term is defined in section 1 of this act, for the first 1445
1703+period not exceeding thirty consecutive calendar days; 1446
1704+(C) With respect to the storage, acceptance, consumption or use in 1447
1705+this state of a motor vehicle purchased from any retailer for storage, 1448
1706+acceptance, consumption or use in this state by any individual who is a 1449
1707+member of the armed forces of the United States and is on full-time 1450
1708+active duty in Connecticut and who is considered, under 50 App USC 1451 Raised Bill No. 7177
1709+
1710+
1711+
1712+LCO No. 4429 47 of 54
1713+
1714+574, a resident of another state, or to any such individual and the 1452
1715+spouse of such individual at a rate of four and one-half per cent of the 1453
1716+sales price of such vehicle, provided such retailer requires and 1454
1717+maintains a declaration by such individual, prescribed as to form by 1455
1718+the commissioner and bearing notice to the effect that false statements 1456
1719+made in such declaration are punishable, or other evidence, 1457
1720+satisfactory to the commissioner, concerning the purchaser's state of 1458
1721+residence under 50 App USC 574; 1459
1722+(D) (i) With respect to the acceptance or receipt in this state of labor 1460
1723+that is otherwise taxable under subparagraph (C) or (G) of subdivision 1461
1724+(2) of subsection (a) of section 12-407, as amended by this act, on 1462
1725+existing vessels and repair or maintenance services on vessels 1463
1726+occurring on and after July 1, 1999, such services shall be exempt from 1464
1727+such tax; 1465
1728+(ii) (I) With respect to the storage, acceptance or other use of a vessel 1466
1729+in this state, at the rate of two and ninety-nine-hundredths per cent, 1467
1730+except that such storage, acceptance or other use shall be exempt from 1468
1731+such tax if such vessel is docked in this state for sixty or fewer days in 1469
1732+a calendar year; 1470
1733+(II) With respect to the storage, acceptance or other use of a motor 1471
1734+for a vessel or a trailer used for transporting a vessel in this state, at the 1472
1735+rate of two and ninety-nine-hundredths per cent; 1473
1736+(E) (i) With respect to the acceptance or receipt in this state of 1474
1737+computer and data processing services purchased from any retailer for 1475
1738+consumption or use in this state occurring on or after July 1, 2001, at 1476
1739+the rate of one per cent of such services, and (ii) with respect to the 1477
1740+acceptance or receipt in this state of Internet access services, on and 1478
1741+after July 1, 2001, such services shall be exempt from such tax; 1479
1742+(F) With respect to the acceptance or receipt in this state of patient 1480
1743+care services purchased from any retailer for consumption or use in 1481
1744+this state for which payment is received by the hospital on or after July 1482
1745+1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1483 Raised Bill No. 7177
1746+
1747+
1748+
1749+LCO No. 4429 48 of 54
1750+
1751+per cent and on and after July 1, 2001, such services shall be exempt 1484
1752+from such tax; 1485
1753+(G) With respect to the rental or leasing of a passenger motor 1486
1754+vehicle for a period of thirty consecutive calendar days or less, at a rate 1487
1755+of nine and thirty-five-hundredths per cent; 1488
1756+(H) With respect to the acceptance or receipt in this state of (i) a 1489
1757+motor vehicle for a sales price exceeding fifty thousand dollars, at a 1490
1758+rate of seven and three-fourths per cent on the entire sales price, (ii) 1491
1759+jewelry, whether real or imitation, for a sales price exceeding five 1492
1760+thousand dollars, at a rate of seven and three-fourths per cent on the 1493
1761+entire sales price, and (iii) an article of clothing or footwear intended to 1494
1762+be worn on or about the human body, a handbag, luggage, umbrella, 1495
1763+wallet or watch for a sales price exceeding one thousand dollars, at a 1496
1764+rate of seven and three-fourths per cent on the entire sales price. For 1497
1765+purposes of this subparagraph, "motor vehicle" has the meaning 1498
1766+provided in section 14-1, but does not include a motor vehicle subject 1499
1767+to the provisions of subparagraph (C) of this subdivision, a motor 1500
1768+vehicle having a gross vehicle weight rating over twelve thousand five 1501
1769+hundred pounds, or a motor vehicle having a gross vehicle weight 1502
1770+rating of twelve thousand five hundred pounds or less that is not used 1503
1771+for private passenger purposes, but is designed or used to transport 1504
1772+merchandise, freight or persons in connection with any business 1505
1773+enterprise and issued a commercial registration or more specific type 1506
1774+of registration by the Department of Motor Vehicles; 1507
1775+(I) (i) For calendar quarters ending on or after September 30, 2019, 1508
1776+the commissioner shall deposit into the regional planning incentive 1509
1777+account, established pursuant to section 4-66k, six and seven-tenths 1510
1778+per cent of the amounts received by the state from the tax imposed 1511
1779+under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 1512
1780+subdivision and ten and seven-tenths per cent of the amounts received 1513
1781+by the state from the tax imposed under subparagraph (G) of this 1514
1782+subdivision; 1515 Raised Bill No. 7177
1783+
1784+
1785+
1786+LCO No. 4429 49 of 54
1787+
1788+(ii) For calendar quarters ending on or after September 30, 2018, the 1516
1789+commissioner shall deposit into the Tourism Fund established under 1517
1790+section 10-395b ten per cent of the amounts received by the state from 1518
1791+the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1519
1792+(B)(ii) of this subdivision; 1520
1793+(J) For calendar months commencing on or after July 1, 2021, the 1521
1794+commissioner shall deposit into said municipal revenue sharing 1522
1795+account seven and nine-tenths per cent of the amounts received by the 1523
1796+state from the tax imposed under subparagraph (A) of this 1524
1797+subdivision; and 1525
1798+(K) (i) For calendar months commencing on or after July 1, 2017, the 1526
1799+commissioner shall deposit into said Special Transportation Fund 1527
1800+seven and nine-tenths per cent of the amounts received by the state 1528
1801+from the tax imposed under subparagraph (A) of this subdivision; 1529
1802+(ii) For calendar months commencing on or after July 1, 2018, but 1530
1803+prior to July 1, 2019, the commissioner shall deposit into the Special 1531
1804+Transportation Fund established under section 13b-68 eight per cent of 1532
1805+the amounts received by the state from the tax imposed under 1533
1806+subparagraphs (A) and (H) of this subdivision on the acceptance or 1534
18561807 receipt in this state of a motor vehicle; 1535
1857-(v) For calendar months commencing on or after July 1, 2021, but 1536
1858-prior to July 1, 2022, the commissioner shall deposit into the Special 1537
1859-Transportation Fund established under section 13b-68 seventy-five per 1538
1808+(iii) For calendar months commencing on or after July 1, 2019, but 1536
1809+prior to July 1, 2020, the commissioner shall deposit into the Special 1537
1810+Transportation Fund established under section 13b-68 thirty-three per 1538
18601811 cent of the amounts received by the state from the tax imposed under 1539
18611812 subparagraphs (A) and (H) of this subdivision on the acceptance or 1540
1862-receipt in this state of a motor vehicle; [and] 1541
1863-(vi) For calendar months commencing on or after July 1, 2022, the 1542
1864-commissioner shall deposit into the Special Transportation Fund 1543
1865-established under section 13b-68 one hundred per cent of the amounts 1544
1866-received by the state from the tax imposed under subparagraphs (A) 1545
1867-and (H) of this subdivision on the acceptance or receipt in this state of 1546
1868-a motor vehicle; [.] and 1547
1869-(vii) For calendar months commencing on or after July 1, 2019, the 1548
1870-commissioner shall deposit into the Housing Trust Fund established 1549
1871-under section 8-336o fifty per cent of the amounts received by the state 1550
1872-from the tax imposed under subparagraph (B)(iii) of this subdivision. 1551
1873-(2) Every person storing, accepting, consuming or otherwise using 1552
1874-in this state services or tangible personal property purchased from a 1553
1875-retailer for storage, acceptance, consumption or any other use in this 1554
1876-state and every person storing, accepting, consuming or otherwise 1555
1877-using in this state tangible personal property which has been 1556
1878-manufactured, fabricated, assembled or processed from materials 1557
1879-purchased from a retailer by such person, either within or without this 1558
1880-state, for storage, acceptance, consumption or any other use by such 1559
1881-person in this state is liable for the tax. Such person's liability is not 1560
1882-extinguished until the tax has been paid to this state, except that a 1561
1883-receipt from a retailer engaged in business in this state or from a 1562
1884-retailer who is authorized by the commissioner, under such 1563
1885-regulations as the commissioner may prescribe, to collect the tax and 1564
1886-who is, for the purposes of this chapter relating to the use tax, 1565
1887-regarded as a retailer engaged in business in this state, given to the 1566 Substitute Bill No. 7177
1888-
1889-
1890-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
1891-R01-HB.docx }
1892-51 of 54
1893-
1894-purchaser pursuant to subdivision (3) of this section is sufficient to 1567
1895-relieve the purchaser from further liability for the tax to which the 1568
1896-receipt refers. 1569
1897-(3) Every retailer engaged in business in this state and making sales 1570
1898-of services or of tangible personal property for storage, acceptance, 1571
1899-consumption or any other use in this state, not exempted under this 1572
1900-chapter, shall, at the time of making a sale or, if the storage, 1573
1901-acceptance, consumption or other use is not then taxable hereunder, at 1574
1902-the time the storage, acceptance, consumption or use becomes taxable, 1575
1903-collect the use tax from the purchaser and give to the purchaser a 1576
1904-receipt therefor in the manner and form prescribed by the 1577
1905-commissioner. For the purpose of uniformity of tax collection by the 1578
1906-retailer the tax brackets set forth in subdivision (3) of section 12-408, as 1579
1907-amended by this act, pertaining to the sales tax shall be employed in 1580
1908-the computation of the tax imposed by this section. 1581
1909-(4) The tax required to be collected by the retailer constitutes a debt 1582
1910-owed to the retailer by the person purchasing tangible personal 1583
1911-property or services from such retailer. The amount of tax, when so 1584
1912-collected, shall be deemed to be a special fund in trust for the state of 1585
1913-Connecticut. 1586
1914-(5) The provisions of subdivision (4) of section 12-408, as amended 1587
1915-by this act, pertaining to the sales tax shall apply with equal force to 1588
1916-the use tax. 1589
1917-(6) The tax required to be collected by the retailer from the 1590
1918-purchaser shall be displayed separately from the list price, the price 1591
1919-advertised in the premises, the marked price, or other price on the 1592
1920-sales check or other proof of sales. 1593
1921-(7) Any person violating the provisions of subdivision (3), (5) or (6) 1594
1922-of this section shall be fined five hundred dollars for each offense. 1595
1923-(8) Every retailer selling services or tangible personal property for 1596
1924-storage, acceptance, consumption or any other use in this state shall 1597 Substitute Bill No. 7177
1925-
1926-
1927-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
1928-R01-HB.docx }
1929-52 of 54
1930-
1931-register with the commissioner and give the name and address of all 1598
1932-agents operating in this state, the location of all distribution or sales 1599
1933-houses or offices or other places of business in this state and such other 1600
1934-information as the commissioner may require. 1601
1935-(9) For the purpose of the proper administration of this chapter and 1602
1936-to prevent evasion of the use tax and the duty to collect the use tax, it 1603
1937-shall be presumed that services or tangible personal property sold by 1604
1938-any person for delivery in this state is sold for storage, acceptance, 1605
1939-consumption or other use in this state until the contrary is established. 1606
1940-The burden of proving the contrary is upon the person who makes the 1607
1941-sale unless such person takes from the purchaser a certificate to the 1608
1942-effect that the services or property is purchased for resale. 1609
1943-(10) The certificate relieves the person selling the services or 1610
1944-property from the burden of proof only if taken in good faith from a 1611
1945-person who is engaged in the business of selling services or tangible 1612
1946-personal property and who holds the permit provided for by section 1613
1947-12-409 and who, at the time of purchasing the services or tangible 1614
1948-personal property, intends to sell it in the regular course of business or 1615
1949-is unable to ascertain at the time of purchase whether the service or 1616
1950-property will be sold or will be used for some other purpose. 1617
1951-(11) The certificate shall be signed by and bear the name and 1618
1952-address of the purchaser, shall indicate the number of the permit 1619
1953-issued to the purchaser and shall indicate the general character of the 1620
1954-service or tangible personal property sold by the purchaser in the 1621
1955-regular course of business. The certificate shall be substantially in such 1622
1956-form as the commissioner may prescribe. 1623
1957-(12) (A) If a purchaser who gives a certificate makes any storage or 1624
1958-use of the service or property other than retention, demonstration or 1625
1959-display while holding it for sale in the regular course of business, the 1626
1960-storage or use is taxable as of the time the service or property is first so 1627
1961-stored or used. 1628 Substitute Bill No. 7177
1962-
1963-
1964-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
1965-R01-HB.docx }
1966-53 of 54
1967-
1968-(B) Notwithstanding the provisions of subparagraph (A) of this 1629
1969-subdivision, any storage or use by a certificated air carrier of an aircraft 1630
1970-for purposes other than retention, demonstration or display while 1631
1971-holding it for sale in the regular course of business shall not be deemed 1632
1972-a taxable storage or use by such carrier as of the time the aircraft is first 1633
1973-stored or used by such carrier, irrespective of the classification of such 1634
1974-aircraft on the balance sheet of such carrier for accounting and tax 1635
1975-purposes. 1636
1976-(13) It shall be presumed that tangible personal property shipped or 1637
1977-brought to this state by the purchaser was purchased from a retailer 1638
1978-for storage, use or other consumption in this state. 1639
1979-(14) (A) For the purpose of the proper administration of this chapter 1640
1980-and to prevent evasion of the use tax, a purchase of any service 1641
1981-described in subdivision (37) of subsection (a) of section 12-407, as 1642
1982-amended by this act, shall be considered a purchase for resale only if 1643
1983-the service to be resold is an integral, inseparable component part of a 1644
1984-service described in said subdivision that is to be subsequently sold by 1645
1985-the purchaser to an ultimate consumer. The purchaser of the service 1646
1986-for resale shall maintain, in such form as the commissioner requires, 1647
1987-records that substantiate: (i) From whom the service was purchased 1648
1988-and to whom the service was sold; (ii) the purchase price of the service; 1649
1989-and (iii) the nature of the service to demonstrate that the service was 1650
1990-an integral, inseparable component part of a service described in 1651
1991-subdivision (37) of subsection (a) of section 12-407, as amended by this 1652
1992-act, that was subsequently sold to a consumer. 1653
1993-(B) Notwithstanding the provisions of subparagraph (A) of this 1654
1994-subdivision, no purchase of a service described in subdivision (37) of 1655
1995-subsection (a) of section 12-407, as amended by this act, by a purchaser 1656
1996-shall be considered a purchase for resale if such service is to be 1657
1997-subsequently sold by the purchaser to an ultimate consumer that is 1658
1998-affiliated with the purchaser in the manner described in subparagraph 1659
1999-(A) of subdivision (62) of section 12-412. 1660 Substitute Bill No. 7177
2000-
2001-
2002-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07177-
2003-R01-HB.docx }
2004-54 of 54
2005-
2006-(15) For the purpose of the proper administration of this chapter 1661
2007-and to prevent evasion of the use tax, no purchase of any service by a 1662
2008-purchaser shall be considered a purchase for resale if such service is to 1663
2009-be subsequently sold by the purchaser, without change, to an ultimate 1664
2010-consumer that is affiliated with the purchaser in the manner described 1665
2011-in subparagraph (A) of subdivision (62) of section 12-412. 1666
1813+receipt in this state of a motor vehicle; 1541
1814+(iv) For calendar months commencing on or after July 1, 2020, but 1542
1815+prior to July 1, 2021, the commissioner shall deposit into the Special 1543
1816+Transportation Fund established under section 13b-68 fifty-six per cent 1544
1817+of the amounts received by the state from the tax imposed under 1545
1818+subparagraphs (A) and (H) of this subdivision on the acceptance or 1546
1819+receipt in this state of a motor vehicle; 1547 Raised Bill No. 7177
1820+
1821+
1822+
1823+LCO No. 4429 50 of 54
1824+
1825+(v) For calendar months commencing on or after July 1, 2021, but 1548
1826+prior to July 1, 2022, the commissioner shall deposit into the Special 1549
1827+Transportation Fund established under section 13b-68 seventy-five per 1550
1828+cent of the amounts received by the state from the tax imposed under 1551
1829+subparagraphs (A) and (H) of this subdivision on the acceptance or 1552
1830+receipt in this state of a motor vehicle; [and] 1553
1831+(vi) For calendar months commencing on or after July 1, 2022, the 1554
1832+commissioner shall deposit into the Special Transportation Fund 1555
1833+established under section 13b-68 one hundred per cent of the amounts 1556
1834+received by the state from the tax imposed under subparagraphs (A) 1557
1835+and (H) of this subdivision on the acceptance or receipt in this state of 1558
1836+a motor vehicle; and 1559
1837+(vii) For calendar months commencing on or after July 1, 2019, the 1560
1838+commissioner shall deposit into the Housing Trust Fund established 1561
1839+under section 8-336o fifty per cent of the amounts received by the state 1562
1840+from the tax imposed under subparagraph (B)(iii) of this subdivision. 1563
1841+(2) Every person storing, accepting, consuming or otherwise using 1564
1842+in this state services or tangible personal property purchased from a 1565
1843+retailer for storage, acceptance, consumption or any other use in this 1566
1844+state and every person storing, accepting, consuming or otherwise 1567
1845+using in this state tangible personal property which has been 1568
1846+manufactured, fabricated, assembled or processed from materials 1569
1847+purchased from a retailer by such person, either within or without this 1570
1848+state, for storage, acceptance, consumption or any other use by such 1571
1849+person in this state is liable for the tax. Such person's liability is not 1572
1850+extinguished until the tax has been paid to this state, except that a 1573
1851+receipt from a retailer engaged in business in this state or from a 1574
1852+retailer who is authorized by the commissioner, under such 1575
1853+regulations as the commissioner may prescribe, to collect the tax and 1576
1854+who is, for the purposes of this chapter relating to the use tax, 1577
1855+regarded as a retailer engaged in business in this state, given to the 1578
1856+purchaser pursuant to subdivision (3) of this section is sufficient to 1579
1857+relieve the purchaser from further liability for the tax to which the 1580 Raised Bill No. 7177
1858+
1859+
1860+
1861+LCO No. 4429 51 of 54
1862+
1863+receipt refers. 1581
1864+(3) Every retailer engaged in business in this state and making sales 1582
1865+of services or of tangible personal property for storage, acceptance, 1583
1866+consumption or any other use in this state, not exempted under this 1584
1867+chapter, shall, at the time of making a sale or, if the storage, 1585
1868+acceptance, consumption or other use is not then taxable hereunder, at 1586
1869+the time the storage, acceptance, consumption or use becomes taxable, 1587
1870+collect the use tax from the purchaser and give to the purchaser a 1588
1871+receipt therefor in the manner and form prescribed by the 1589
1872+commissioner. For the purpose of uniformity of tax collection by the 1590
1873+retailer the tax brackets set forth in subdivision (3) of section 12-408, as 1591
1874+amended by this act, pertaining to the sales tax shall be employed in 1592
1875+the computation of the tax imposed by this section. 1593
1876+(4) The tax required to be collected by the retailer constitutes a debt 1594
1877+owed to the retailer by the person purchasing tangible personal 1595
1878+property or services from such retailer. The amount of tax, when so 1596
1879+collected, shall be deemed to be a special fund in trust for the state of 1597
1880+Connecticut. 1598
1881+(5) The provisions of subdivision (4) of section 12-408, as amended 1599
1882+by this act, pertaining to the sales tax shall apply with equal force to 1600
1883+the use tax. 1601
1884+(6) The tax required to be collected by the retailer from the 1602
1885+purchaser shall be displayed separately from the list price, the price 1603
1886+advertised in the premises, the marked price, or other price on the 1604
1887+sales check or other proof of sales. 1605
1888+(7) Any person violating the provisions of subdivision (3), (5) or (6) 1606
1889+of this section shall be fined five hundred dollars for each offense. 1607
1890+(8) Every retailer selling services or tangible personal property for 1608
1891+storage, acceptance, consumption or any other use in this state shall 1609
1892+register with the commissioner and give the name and address of all 1610
1893+agents operating in this state, the location of all distribution or sales 1611 Raised Bill No. 7177
1894+
1895+
1896+
1897+LCO No. 4429 52 of 54
1898+
1899+houses or offices or other places of business in this state and such other 1612
1900+information as the commissioner may require. 1613
1901+(9) For the purpose of the proper administration of this chapter and 1614
1902+to prevent evasion of the use tax and the duty to collect the use tax, it 1615
1903+shall be presumed that services or tangible personal property sold by 1616
1904+any person for delivery in this state is sold for storage, acceptance, 1617
1905+consumption or other use in this state until the contrary is established. 1618
1906+The burden of proving the contrary is upon the person who makes the 1619
1907+sale unless such person takes from the purchaser a certificate to the 1620
1908+effect that the services or property is purchased for resale. 1621
1909+(10) The certificate relieves the person selling the services or 1622
1910+property from the burden of proof only if taken in good faith from a 1623
1911+person who is engaged in the business of selling services or tangible 1624
1912+personal property and who holds the permit provided for by section 1625
1913+12-409 and who, at the time of purchasing the services or tangible 1626
1914+personal property, intends to sell it in the regular course of business or 1627
1915+is unable to ascertain at the time of purchase whether the service or 1628
1916+property will be sold or will be used for some other purpose. 1629
1917+(11) The certificate shall be signed by and bear the name and 1630
1918+address of the purchaser, shall indicate the number of the permit 1631
1919+issued to the purchaser and shall indicate the general character of the 1632
1920+service or tangible personal property sold by the purchaser in the 1633
1921+regular course of business. The certificate shall be substantially in such 1634
1922+form as the commissioner may prescribe. 1635
1923+(12) (A) If a purchaser who gives a certificate makes any storage or 1636
1924+use of the service or property other than retention, demonstration or 1637
1925+display while holding it for sale in the regular course of business, the 1638
1926+storage or use is taxable as of the time the service or property is first so 1639
1927+stored or used. 1640
1928+(B) Notwithstanding the provisions of subparagraph (A) of this 1641
1929+subdivision, any storage or use by a certificated air carrier of an aircraft 1642
1930+for purposes other than retention, demonstration or display while 1643 Raised Bill No. 7177
1931+
1932+
1933+
1934+LCO No. 4429 53 of 54
1935+
1936+holding it for sale in the regular course of business shall not be deemed 1644
1937+a taxable storage or use by such carrier as of the time the aircraft is first 1645
1938+stored or used by such carrier, irrespective of the classification of such 1646
1939+aircraft on the balance sheet of such carrier for accounting and tax 1647
1940+purposes. 1648
1941+(13) It shall be presumed that tangible personal property shipped or 1649
1942+brought to this state by the purchaser was purchased from a retailer 1650
1943+for storage, use or other consumption in this state. 1651
1944+(14) (A) For the purpose of the proper administration of this chapter 1652
1945+and to prevent evasion of the use tax, a purchase of any service 1653
1946+described in subdivision (37) of subsection (a) of section 12-407, as 1654
1947+amended by this act, shall be considered a purchase for resale only if 1655
1948+the service to be resold is an integral, inseparable component part of a 1656
1949+service described in said subdivision that is to be subsequently sold by 1657
1950+the purchaser to an ultimate consumer. The purchaser of the service 1658
1951+for resale shall maintain, in such form as the commissioner requires, 1659
1952+records that substantiate: (i) From whom the service was purchased 1660
1953+and to whom the service was sold; (ii) the purchase price of the service; 1661
1954+and (iii) the nature of the service to demonstrate that the service was 1662
1955+an integral, inseparable component part of a service described in 1663
1956+subdivision (37) of subsection (a) of section 12-407, as amended by this 1664
1957+act, that was subsequently sold to a consumer. 1665
1958+(B) Notwithstanding the provisions of subparagraph (A) of this 1666
1959+subdivision, no purchase of a service described in subdivision (37) of 1667
1960+subsection (a) of section 12-407, as amended by this act, by a purchaser 1668
1961+shall be considered a purchase for resale if such service is to be 1669
1962+subsequently sold by the purchaser to an ultimate consumer that is 1670
1963+affiliated with the purchaser in the manner described in subparagraph 1671
1964+(A) of subdivision (62) of section 12-412. 1672
1965+(15) For the purpose of the proper administration of this chapter 1673
1966+and to prevent evasion of the use tax, no purchase of any service by a 1674
1967+purchaser shall be considered a purchase for resale if such service is to 1675 Raised Bill No. 7177
1968+
1969+
1970+
1971+LCO No. 4429 54 of 54
1972+
1973+be subsequently sold by the purchaser, without change, to an ultimate 1676
1974+consumer that is affiliated with the purchaser in the manner described 1677
1975+in subparagraph (A) of subdivision (62) of section 12-412. 1678
20121976 This act shall take effect as follows and shall amend the following
20131977 sections:
20141978
20151979 Section 1 July 1, 2019 New section
20161980 Sec. 2 July 1, 2019 New section
20171981 Sec. 3 July 1, 2019 New section
20181982 Sec. 4 July 1, 2019 New section
20191983 Sec. 5 July 1, 2019 New section
20201984 Sec. 6 July 1, 2019 New section
20211985 Sec. 7 July 1, 2019 New section
20221986 Sec. 8 July 1, 2019, and
20231987 applicable to sales
20241988 occurring on or after July
20251989 1, 2019
20261990 12-407
20271991 Sec. 9 July 1, 2019, and
20281992 applicable to sales
20291993 occurring on or after July
20301994 1, 2019
20311995 12-408
20321996 Sec. 10 July 1, 2019, and
20331997 applicable to sales
20341998 occurring on or after July
20351999 1, 2019
20362000 12-411
20372001
2038-Statement of Legislative Commissioners:
2039-In Section 2(a)(2) and (a)(3)(A), "or renewal" was added for clarity and
2040-consistency; and in Section 5, "each" was substituted for "all" and
2041-"policy" was substituted for "policies" for consistency, and "such term
2042-is" was deleted to eliminate redundant language.
2043-
2044-INS Joint Favorable Subst.
2002+Statement of Purpose:
2003+To (1) require that (A) short-term rental properties be licensed by the
2004+Commissioner of Consumer Protection, (B) short-term rental operators
2005+notify owners of abutting and adjacent properties regarding use of a
2006+dwelling unit as a short-term rental property, and (C) short-term rental
2007+operators maintain minimum insurance coverage and the Insurance
2008+Commissioner adopt regulations concerning such coverage, (2) permit
2009+municipalities to tax short-term rental operators, and (3) subject short-
2010+term rental transactions to the sales and use tax.
2011+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
2012+except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
2013+not underlined.]
20452014