Connecticut 2019 Regular Session

Connecticut House Bill HB07307 Compare Versions

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Version 2 (New)

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	3	+	LCO No. 5501 1 of 2
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7		-	General Assembly ~~Substitute~~ Bill No. 7307
	5	+	General Assembly Raised Bill No. 7307
8	6		January Session, 2019
	7	+	LCO No. 5501
	8	+
	9	+
	10	+	Referred to Committee on COMMERCE
	11	+
	12	+
	13	+	Introduced by:
	14	+	(CE)
9	15
10	16
11	17
12	18
13		-
14		-	AN ACT CONCERNING DE POSITS TO AND ALLOCA TION OF FUNDS
15		-	IN THE TOURISM FUND.
	19	+	AN ACT REQUIRING A STUDY ON TOURISM BY THE GENER AL
	20	+	ASSEMBLY.
16	21		Be it enacted by the Senate and House of Representatives in General
17	22		Assembly convened:
18	23
19		-	Section 1. Subdivision (1) of section 12-408 of the general statutes is 1
20		-	repealed and the following is substituted in lieu thereof (Effective July 2
21		-	1, 2019): 3
22		-	(1) (A) For the privilege of making any sales, as defined in 4
23		-	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 5
24		-	for a consideration, a tax is hereby imposed on all retailers at the rate 6
25		-	of six and thirty-five-hundredths per cent of the gross receipts of any 7
26		-	retailer from the sale of all tangible personal property sold at retail or 8
27		-	from the rendering of any services constituting a sale in accordance 9
28		-	with subdivision (2) of subsection (a) of section 12-407, except, in lieu 10
29		-	of said rate of six and thirty-five-hundredths per cent, the rates 11
30		-	provided in subparagraphs (B) to (H), inclusive, of this subdivision; 12
31		-	(B) (i) At a rate of fifteen per cent with respect to each transfer of 13
32		-	occupancy, from the total amount of rent received by a hotel or 14
33		-	lodging house for the first period not exceeding thirty consecutive 15
34		-	calendar days; 16
35		-	(ii) At a rate of eleven per cent with respect to each transfer of 17
36		-	occupancy, from the total amount of rent received by a bed and 18 Substitute Bill No. 7307
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42		-
43		-	breakfast establishment for the first period not exceeding thirty 19
44		-	consecutive calendar days; 20
45		-	(C) With respect to the sale of a motor vehicle to any individual who 21
46		-	is a member of the armed forces of the United States and is on full-time 22
47		-	active duty in Connecticut and who is considered, under 50 App USC 23
48		-	574, a resident of another state, or to any such individual and the 24
49		-	spouse thereof, at a rate of four and one-half per cent of the gross 25
50		-	receipts of any retailer from such sales, provided such retailer requires 26
51		-	and maintains a declaration by such individual, prescribed as to form 27
52		-	by the commissioner and bearing notice to the effect that false 28
53		-	statements made in such declaration are punishable, or other evidence, 29
54		-	satisfactory to the commissioner, concerning the purchaser's state of 30
55		-	residence under 50 App USC 574; 31
56		-	(D) (i) With respect to the sales of computer and data processing 32
57		-	services occurring on or after July 1, 2001, at the rate of one per cent, 33
58		-	and (ii) with respect to sales of Internet access services, on and after 34
59		-	July 1, 2001, such services shall be exempt from such tax; 35
60		-	(E) (i) With respect to the sales of labor that is otherwise taxable 36
61		-	under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 37
62		-	section 12-407 on existing vessels and repair or maintenance services 38
63		-	on vessels occurring on and after July 1, 1999, such services shall be 39
64		-	exempt from such tax; 40
65		-	(ii) With respect to the sale of a vessel, a motor for a vessel or a 41
66		-	trailer used for transporting a vessel, at the rate of two and ninety-42
67		-	nine-hundredths per cent, except that the sale of a vessel shall be 43
68		-	exempt from such tax if such vessel is docked in this state for sixty or 44
69		-	fewer days in a calendar year; 45
70		-	(F) With respect to patient care services for which payment is 46
71		-	received by the hospital on or after July 1, 1999, and prior to July 1, 47
72		-	2001, at the rate of five and three-fourths per cent and on and after July 48
73		-	1, 2001, such services shall be exempt from such tax; 49 Substitute Bill No. 7307
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79		-
80		-	(G) With respect to the rental or leasing of a passenger motor 50
81		-	vehicle for a period of thirty consecutive calendar days or less, at a rate 51
82		-	of nine and thirty-five-hundredths per cent; 52
83		-	(H) With respect to the sale of (i) a motor vehicle for a sales price 53
84		-	exceeding fifty thousand dollars, at a rate of seven and three-fourths 54
85		-	per cent on the entire sales price, (ii) jewelry, whether real or imitation, 55
86		-	for a sales price exceeding five thousand dollars, at a rate of seven and 56
87		-	three-fourths per cent on the entire sales price, and (iii) an article of 57
88		-	clothing or footwear intended to be worn on or about the human body, 58
89		-	a handbag, luggage, umbrella, wallet or watch for a sales price 59
90		-	exceeding one thousand dollars, at a rate of seven and three-fourths 60
91		-	per cent on the entire sales price. For purposes of this subparagraph, 61
92		-	"motor vehicle" has the meaning provided in section 14-1, but does not 62
93		-	include a motor vehicle subject to the provisions of subparagraph (C) 63
94		-	of this subdivision, a motor vehicle having a gross vehicle weight 64
95		-	rating over twelve thousand five hundred pounds, or a motor vehicle 65
96		-	having a gross vehicle weight rating of twelve thousand five hundred 66
97		-	pounds or less that is not used for private passenger purposes, but is 67
98		-	designed or used to transport merchandise, freight or persons in 68
99		-	connection with any business enterprise and issued a commercial 69
100		-	registration or more specific type of registration by the Department of 70
101		-	Motor Vehicles; 71
102		-	(I) The rate of tax imposed by this chapter shall be applicable to all 72
103		-	retail sales upon the effective date of such rate, except that a new rate 73
104		-	which represents an increase in the rate applicable to the sale shall not 74
105		-	apply to any sales transaction wherein a binding sales contract without 75
106		-	an escalator clause has been entered into prior to the effective date of 76
107		-	the new rate and delivery is made within ninety days after the effective 77
108		-	date of the new rate. For the purposes of payment of the tax imposed 78
109		-	under this section, any retailer of services taxable under subdivision 79
110		-	(37) of subsection (a) of section 12-407, who computes taxable income, 80
111		-	for purposes of taxation under the Internal Revenue Code of 1986, or 81
112		-	any subsequent corresponding internal revenue code of the United 82 Substitute Bill No. 7307
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118		-
119		-	States, as from time to time amended, on an accounting basis which 83
120		-	recognizes only cash or other valuable consideration actually received 84
121		-	as income and who is liable for such tax only due to the rendering of 85
122		-	such services may make payments related to such tax for the period 86
123		-	during which such income is received, without penalty or interest, 87
124		-	without regard to when such service is rendered; 88
125		-	(J) (i) For calendar quarters ending on or after September 30, 2019, 89
126		-	the commissioner shall deposit into the regional planning incentive 90
127		-	account, established pursuant to section 4-66k, six and seven-tenths 91
128		-	per cent of the amounts received by the state from the tax imposed 92
129		-	under subparagraph (B) of this subdivision and ten and seven-tenths 93
130		-	per cent of the amounts received by the state from the tax imposed 94
131		-	under subparagraph (G) of this subdivision; 95
132		-	(ii) For calendar quarters ending on or after September 30, [2018] 96
133		-	2019, the commissioner shall deposit into the Tourism Fund 97
134		-	established under section 10-395b, as amended by this act, [ten] 98
135		-	twenty-five per cent of the amounts received by the state from the tax 99
136		-	imposed under subparagraph (B) of this subdivision; 100
137		-	(K) For calendar months commencing on or after July 1, 2021, the 101
138		-	commissioner shall deposit into the municipal revenue sharing 102
139		-	account established pursuant to section 4-66l seven and nine-tenths per 103
140		-	cent of the amounts received by the state from the tax imposed under 104
141		-	subparagraph (A) of this subdivision; and 105
142		-	(L) (i) For calendar months commencing on or after July 1, 2017, the 106
143		-	commissioner shall deposit into the Special Transportation Fund 107
144		-	established under section 13b-68 seven and nine-tenths per cent of the 108
145		-	amounts received by the state from the tax imposed under 109
146		-	subparagraph (A) of this subdivision; 110
147		-	(ii) For calendar months commencing on or after July 1, 2018, but 111
148		-	prior to July 1, 2019, the commissioner shall deposit into the Special 112
149		-	Transportation Fund established under section 13b-68 eight per cent of 113 Substitute Bill No. 7307
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155		-
156		-	the amounts received by the state from the tax imposed under 114
157		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 115
158		-	vehicle; 116
159		-	(iii) For calendar months commencing on or after July 1, 2019, but 117
160		-	prior to July 1, 2020, the commissioner shall deposit into the Special 118
161		-	Transportation Fund established under section 13b-68 thirty-three per 119
162		-	cent of the amounts received by the state from the tax imposed under 120
163		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 121
164		-	vehicle; 122
165		-	(iv) For calendar months commencing on or after July 1, 2020, but 123
166		-	prior to July 1, 2021, the commissioner shall deposit into the Special 124
167		-	Transportation Fund established under section 13b-68 fifty-six per cent 125
168		-	of the amounts received by the state from the tax imposed under 126
169		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 127
170		-	vehicle; 128
171		-	(v) For calendar months commencing on or after July 1, 2021, but 129
172		-	prior to July 1, 2022, the commissioner shall deposit into the Special 130
173		-	Transportation Fund established under section 13b-68 seventy-five per 131
174		-	cent of the amounts received by the state from the tax imposed under 132
175		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 133
176		-	vehicle; and 134
177		-	(vi) For calendar months commencing on or after July 1, 2022, the 135
178		-	commissioner shall deposit into the Special Transportation Fund 136
179		-	established under section 13b-68 one hundred per cent of the amounts 137
180		-	received by the state from the tax imposed under subparagraphs (A) 138
181		-	and (H) of this subdivision on the sale of a motor vehicle. 139
182		-	Sec. 2. Subdivision (1) of section 12-411 of the general statutes is 140
183		-	repealed and the following is substituted in lieu thereof (Effective July 141
184		-	1, 2019): 142
185		-	(1) (A) An excise tax is hereby imposed on the storage, acceptance, 143
186		-	consumption or any other use in this state of tangible personal 144 Substitute Bill No. 7307
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192		-
193		-	property purchased from any retailer for storage, acceptance, 145
194		-	consumption or any other use in this state, the acceptance or receipt of 146
195		-	any services constituting a sale in accordance with subdivision (2) of 147
196		-	subsection (a) of section 12-407, purchased from any retailer for 148
197		-	consumption or use in this state, or the storage, acceptance, 149
198		-	consumption or any other use in this state of tangible personal 150
199		-	property which has been manufactured, fabricated, assembled or 151
200		-	processed from materials by a person, either within or without this 152
201		-	state, for storage, acceptance, consumption or any other use by such 153
202		-	person in this state, to be measured by the sales price of materials, at 154
203		-	the rate of six and thirty-five-hundredths per cent of the sales price of 155
204		-	such property or services, except, in lieu of said rate of six and thirty-156
205		-	five-hundredths per cent; 157
206		-	(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or 158
207		-	lodging house for the first period not exceeding thirty consecutive 159
208		-	calendar days; 160
209		-	(ii) At a rate of eleven per cent of the rent paid to a bed and 161
210		-	breakfast establishment for the first period not exceeding thirty 162
211		-	consecutive calendar days; 163
212		-	(C) With respect to the storage, acceptance, consumption or use in 164
213		-	this state of a motor vehicle purchased from any retailer for storage, 165
214		-	acceptance, consumption or use in this state by any individual who is a 166
215		-	member of the armed forces of the United States and is on full-time 167
216		-	active duty in Connecticut and who is considered, under 50 App USC 168
217		-	574, a resident of another state, or to any such individual and the 169
218		-	spouse of such individual at a rate of four and one-half per cent of the 170
219		-	sales price of such vehicle, provided such retailer requires and 171
220		-	maintains a declaration by such individual, prescribed as to form by 172
221		-	the commissioner and bearing notice to the effect that false statements 173
222		-	made in such declaration are punishable, or other evidence, 174
223		-	satisfactory to the commissioner, concerning the purchaser's state of 175
224		-	residence under 50 App USC 574; 176 Substitute Bill No. 7307
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230		-
231		-	(D) (i) With respect to the acceptance or receipt in this state of labor 177
232		-	that is otherwise taxable under subparagraph (C) or (G) of subdivision 178
233		-	(2) of subsection (a) of section 12-407 on existing vessels and repair or 179
234		-	maintenance services on vessels occurring on and after July 1, 1999, 180
235		-	such services shall be exempt from such tax; 181
236		-	(ii) (I) With respect to the storage, acceptance or other use of a vessel 182
237		-	in this state, at the rate of two and ninety-nine-hundredths per cent, 183
238		-	except that such storage, acceptance or other use shall be exempt from 184
239		-	such tax if such vessel is docked in this state for sixty or fewer days in 185
240		-	a calendar year; 186
241		-	(II) With respect to the storage, acceptance or other use of a motor 187
242		-	for a vessel or a trailer used for transporting a vessel in this state, at the 188
243		-	rate of two and ninety-nine-hundredths per cent; 189
244		-	(E) (i) With respect to the acceptance or receipt in this state of 190
245		-	computer and data processing services purchased from any retailer for 191
246		-	consumption or use in this state occurring on or after July 1, 2001, at 192
247		-	the rate of one per cent of such services, and (ii) with respect to the 193
248		-	acceptance or receipt in this state of Internet access services, on and 194
249		-	after July 1, 2001, such services shall be exempt from such tax; 195
250		-	(F) With respect to the acceptance or receipt in this state of patient 196
251		-	care services purchased from any retailer for consumption or use in 197
252		-	this state for which payment is received by the hospital on or after July 198
253		-	1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 199
254		-	per cent and on and after July 1, 2001, such services shall be exempt 200
255		-	from such tax; 201
256		-	(G) With respect to the rental or leasing of a passenger motor 202
257		-	vehicle for a period of thirty consecutive calendar days or less, at a rate 203
258		-	of nine and thirty-five-hundredths per cent; 204
259		-	(H) With respect to the acceptance or receipt in this state of (i) a 205
260		-	motor vehicle for a sales price exceeding fifty thousand dollars, at a 206
261		-	rate of seven and three-fourths per cent on the entire sales price, (ii) 207 Substitute Bill No. 7307
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267		-
268		-	jewelry, whether real or imitation, for a sales price exceeding five 208
269		-	thousand dollars, at a rate of seven and three-fourths per cent on the 209
270		-	entire sales price, and (iii) an article of clothing or footwear intended to 210
271		-	be worn on or about the human body, a handbag, luggage, umbrella, 211
272		-	wallet or watch for a sales price exceeding one thousand dollars, at a 212
273		-	rate of seven and three-fourths per cent on the entire sales price. For 213
274		-	purposes of this subparagraph, "motor vehicle" has the meaning 214
275		-	provided in section 14-1, but does not include a motor vehicle subject 215
276		-	to the provisions of subparagraph (C) of this subdivision, a motor 216
277		-	vehicle having a gross vehicle weight rating over twelve thousand five 217
278		-	hundred pounds, or a motor vehicle having a gross vehicle weight 218
279		-	rating of twelve thousand five hundred pounds or less that is not used 219
280		-	for private passenger purposes, but is designed or used to transport 220
281		-	merchandise, freight or persons in connection with any business 221
282		-	enterprise and issued a commercial registration or more specific type 222
283		-	of registration by the Department of Motor Vehicles; 223
284		-	(I) (i) For calendar quarters ending on or after September 30, 2019, 224
285		-	the commissioner shall deposit into the regional planning incentive 225
286		-	account, established pursuant to section 4-66k, six and seven-tenths 226
287		-	per cent of the amounts received by the state from the tax imposed 227
288		-	under subparagraph (B) of this subdivision and ten and seven-tenths 228
289		-	per cent of the amounts received by the state from the tax imposed 229
290		-	under subparagraph (G) of this subdivision; 230
291		-	(ii) For calendar quarters ending on or after September 30, [2018] 231
292		-	2019, the commissioner shall deposit into the Tourism Fund 232
293		-	established under section 10-395b, as amended by this act, [ten] 233
294		-	twenty-five per cent of the amounts received by the state from the tax 234
295		-	imposed under subparagraph (B) of this subdivision; 235
296		-	(J) For calendar months commencing on or after July 1, 2021, the 236
297		-	commissioner shall deposit into said municipal revenue sharing 237
298		-	account seven and nine-tenths per cent of the amounts received by the 238
299		-	state from the tax imposed under subparagraph (A) of this 239
300		-	subdivision; and 240 Substitute Bill No. 7307
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306		-
307		-	(K) (i) For calendar months commencing on or after July 1, 2017, the 241
308		-	commissioner shall deposit into said Special Transportation Fund 242
309		-	seven and nine-tenths per cent of the amounts received by the state 243
310		-	from the tax imposed under subparagraph (A) of this subdivision; 244
311		-	(ii) For calendar months commencing on or after July 1, 2018, but 245
312		-	prior to July 1, 2019, the commissioner shall deposit into the Special 246
313		-	Transportation Fund established under section 13b-68 eight per cent of 247
314		-	the amounts received by the state from the tax imposed under 248
315		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 249
316		-	receipt in this state of a motor vehicle; 250
317		-	(iii) For calendar months commencing on or after July 1, 2019, but 251
318		-	prior to July 1, 2020, the commissioner shall deposit into the Special 252
319		-	Transportation Fund established under section 13b-68 thirty-three per 253
320		-	cent of the amounts received by the state from the tax imposed under 254
321		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 255
322		-	receipt in this state of a motor vehicle; 256
323		-	(iv) For calendar months commencing on or after July 1, 2020, but 257
324		-	prior to July 1, 2021, the commissioner shall deposit into the Special 258
325		-	Transportation Fund established under section 13b-68 fifty-six per cent 259
326		-	of the amounts received by the state from the tax imposed under 260
327		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 261
328		-	receipt in this state of a motor vehicle; 262
329		-	(v) For calendar months commencing on or after July 1, 2021, but 263
330		-	prior to July 1, 2022, the commissioner shall deposit into the Special 264
331		-	Transportation Fund established under section 13b-68 seventy-five per 265
332		-	cent of the amounts received by the state from the tax imposed under 266
333		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 267
334		-	receipt in this state of a motor vehicle; and 268
335		-	(vi) For calendar months commencing on or after July 1, 2022, the 269
336		-	commissioner shall deposit into the Special Transportation Fund 270
337		-	established under section 13b-68 one hundred per cent of the amounts 271 Substitute Bill No. 7307
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343		-
344		-	received by the state from the tax imposed under subparagraphs (A) 272
345		-	and (H) of this subdivision on the acceptance or receipt in this state of 273
346		-	a motor vehicle. 274
347		-	Sec. 3. Section 10-395b of the general statutes is repealed and the 275
348		-	following is substituted in lieu thereof (Effective from passage): 276
349		-	There is established a fund to be known as the "Tourism Fund" 277
350		-	which shall be a separate, nonlapsing fund. The fund shall contain any 278
351		-	moneys required by law to be deposited in the fund. Moneys 279
352		-	deposited in the fund shall be allocated as follows: (1) Forty per cent 280
353		-	for arts and culture, and (2) sixty per cent for tourism. 281
	24	+	Section 1. (Effective from passage) The joint standing committee of the 1
	25	+	General Assembly having cognizance of matters relating to commerce 2
	26	+	shall conduct a study relating to tourism and its effects and impact on 3
	27	+	the state and its economy. Not later than February 1, 2020, said 4
	28	+	committee shall submit a report of the results of such study in 5
	29	+	accordance with the provisions of section 11-4a of the general statutes. 6
354	30		This act shall take effect as follows and shall amend the following
355	31		sections:
356	32
357		-	Section 1 July 1, 2019 12-408(1)
358		-	Sec. 2 July 1, 2019 12-411(1)
359		-	Sec. 3 from passage 10-395b
	33	+	Section 1 from passage New section
360	34
361		-	CE Joint Favorable Subst.
	35	+	Statement of Purpose:
	36	+	To require the joint standing committee of the General Assembly
	37	+	having cognizance of matters related to commerce to study tourism
	38	+	and its effects and impact on the state and its economy. Raised Bill No. 7307
	39	+
	40	+
	41	+
	42	+	LCO No. 5501 2 of 2
	43	+
	44	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	45	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	46	+	not underlined.]
362	47