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repealed and the following is substituted in lieu thereof (Effective July 2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