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General Assembly Substitute Bill No. 7373
January Session, 2019
AN ACT CONCERNING TH E DEPARTMENT OF REVE NUE SERVICES'
RECOMMENDATIONS FOR TAX ADMINISTRATION AND M INOR
REVISIONS TO THE TAX AND RELATED STATUTES .
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-699 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2019, and 2
applicable to taxable years commencing on or after January 1, 2019): 3
(a) As used in this section and section 12-699a, as amended by this 4
act: 5
(1) "Partnership" has the same meaning as provided in Section 6
7701(a)(2) of the Internal Revenue Code, as defined in section 12-213, 7
and regulations adopted thereunder. "Partnership" includes a limited 8
liability company that is treated as a partnership for federal income tax 9
purposes; 10
(2) "S corporation" means a corporation or a limited liability 11
company that is treated as an S corporation for federal income tax 12
purposes; 13
(3) "Affected business entity" means a partnership or an S 14
corporation, but does not include a publicly-traded partnership, as 15
defined in Section 7704(b) of the Internal Revenue Code, that has 16 Substitute Bill No. 7373
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agreed to file an annual return pursuant to section 12-726 reporting the 17
name, address, Social Security number or federal employe r 18
identification number and such other information required by the 19
Commissioner of Revenue Services of each unitholder whose 20
distributive share of partnership income derived from or connected 21
with sources within this state was more than five hundred dollars; 22
(4) "Member" means (A) a shareholder of an S corporation, (B) a 23
partner in (i) a general partnership, (ii) a limited partnership, or (iii) a 24
limited liability partnership, or (C) a member of a limited liability 25
company that is treated as a partnership or an S corporation for federal 26
income tax purposes; and 27
(5) "Taxable year" means the taxable year of an affected business 28
entity for federal income tax purposes. 29
(b) Each affected business entity that is required to file a return 30
under the provisions of section 12-726 shall, on or before the fifteenth 31
day of the third month following the close of each taxable year, pay to 32
the commissioner a tax as determined under this section. 33
(c) The tax due under subsection (b) of this section shall equal (1) 34
(A) the separately and nonseparately computed items, as described in 35
Section 702(a) of the Internal Revenue Code with respect to a 36
partnership or Section 1366 of the Internal Revenue Code with respect 37
to an S corporation, of the affected business entity, excluding any item 38
treated as an itemized deduction for federal income tax purposes, plus 39
any item described in Section 707(c) of the Internal Revenue Code with 40
respect to a partnership, to the extent any such items under this 41
subparagraph are derived from or connected with sources within this 42
state, as determined under the provisions of chapter 229, (B) as 43
increased or decreased by any modification described in section 12-701 44
that relates to an item of the affected business entity's income, gain, 45
loss or deduction, to the extent derived from or connected with sources 46
within this state, as determined under the provisions of chapter 229, (2) 47
multiplied by six and ninety-nine-hundredths per cent. If the amount 48 Substitute Bill No. 7373
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calculated under subdivision (1) of this subsection results in a net loss, 49
such net loss may be carried forward to succeeding taxable years until 50
fully used. 51
(d) If an affected business entity, the lower-tier entity, is a member 52
of another affected business entity, the upper-tier entity, the lower-tier 53
entity shall, when calculating the amount under subdivision (1) of 54
subsection (c) of this section, subtract its distributive share of income 55
or add its distributive share of loss from the upper-tier entity to the 56
extent that the income or loss was derived from or connected with 57
sources within this state. 58
(e) [(1)] A nonresident individual who is a member of an affected 59
business entity shall not be required to file an income tax return under 60
the provisions of chapter 229 for a taxable year if, for such taxable year, 61
the only source of income derived from or connected with sources 62
within this state for such member, or the member and the member's 63
spouse if a joint federal income tax return is or shall be filed, is from 64
one or more affected business entities and such [affected business 65
entity or entities file and pay the tax due under this section] 66
nonresident individual member's tax under chapter 229 would be fully 67
satisfied by the credit allowed to such individual under subparagraph 68
(A) of subdivision (1) of subsection (g) of this section. 69
[(2) The provisions of subdivision (1) of this subsection shall not 70
apply to a nonresident individual who is a member of an affected 71
business entity that elects to file its return on a combined basis under 72
subsection (j) of this section if such nonresident individual member's 73
tax under chapter 229 would not be fully satisfied by the credit 74
allowed to such individual under subparagraph (A) of subdivision (1) 75
of subsection (g) of this section.] 76
(f) Each affected business entity shall report to each of its members, 77
for each taxable year, such member's direct [pro rata] share of the tax 78
imposed under this section on such affected business entity and 79
indirect [pro rata] share of the tax imposed on any upper-tier entity of 80 Substitute Bill No. 7373
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which such affected business entity is a member. 81
(g) (1) (A) Each person that is subject to the tax imposed under 82
chapter 229 and is a member of an affected business entity shall be 83
entitled to a credit against the tax imposed under said chapter, other 84
than the tax imposed under section 12-707. Such credit shall be in an 85
amount equal to such person's direct and indirect [pro rata] share of 86
the tax due and paid under this section by any affected business entity 87
of which such person is a member multiplied by ninety-three and one-88
hundredths per cent. If the amount of the credit allowed pursuant to 89
this subdivision exceeds such person's tax liability for the tax imposed 90
under said chapter, the commissioner shall treat such excess as an 91
overpayment and, except as provided in section 12-739 or 12-742, shall 92
refund the amount of such excess, without interest, to such person. 93
(B) Each person that is subject to the tax imposed under chapter 229 94
as a resident or a part-year resident of this state and is a member of an 95
affected business entity shall also be entitled to a credit against the tax 96
imposed under said chapter, other than the tax imposed under section 97
12-707, for such person's direct and indirect [pro rata] share of taxes 98
paid to another state of the United States or the District of Columbia, 99
on income of any affected business entity of which such person is a 100
member that is derived therefrom, provided the taxes paid to another 101
state of the United States or the District of Columbia results from a tax 102
that the commissioner determines is substantially similar to the tax 103
imposed under this section. Any such credit shall be calculated in the 104
manner prescribed by the commissioner, which shall be consistent 105
with the provisions of section 12-704. 106
(2) Each company that is subject to the tax imposed under chapter 107
208 and is a member of an affected business entity shall be entitled to a 108
credit against the tax imposed under said chapter. Such credit shall be 109
in an amount equal to such company's direct and indirect [pro rata] 110
share of the tax paid under this section by any affected business entity 111
of which such company is a member multiplied by ninety-three and 112
one-hundredths per cent. Such credit shall be applied after all other 113 Substitute Bill No. 7373
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credits are applied and shall not be subject to the limits imposed under 114
section 12-217zz. Any credit that is not used in the income year during 115
which the affected business entity incurs the tax under this section 116
shall be carried forward to each of the succeeding income years by the 117
company until such credit is fully taken against the tax under chapter 118
208. 119
(h) Upon the failure of any affected business entity to pay the tax 120
due under this section within thirty days of the due date, the 121
provisions of section 12-35, as amended by this act, shall apply with 122
respect to the enforcement of this section and the collection of such tax. 123
The warrant therein provided for shall be signed by the commissioner 124
or an authorized agent of the commissioner. The amount of any such 125
tax, penalty and interest shall be a lien, from the last day of the last 126
month of the taxable year next preceding the due date of such tax until 127
discharged by payment, against all real estate of the taxpayer within 128
the state, and a certificate of such lien signed by the commissioner may 129
be recorded in the office of the clerk of any town in which such real 130
estate is situated, provided no such lien shall be effective as against 131
any bona fide purchaser or qualified encumbrancer of any interest in 132
any such property. When any tax with respect to which a lien has been 133
recorded under the provisions of this section has been satisfied, the 134
commissioner, upon request of any interested party, shall issue a 135
certificate discharging such lien, which certificate shall be recorded in 136
the same office in which the lien was recorded. Any action for the 137
foreclosure of such lien shall be brought by the Attorney General in the 138
name of the state in the superior court for the judicial district in which 139
the property subject to such lien is situated, or, if such property is 140
located in two or more judicial districts, in the superior court for any 141
one such judicial district, and the court may limit the time for 142
redemption or order the sale of such property or make such other or 143
further decree as it judges equitable. 144
(i) If any tax is not paid when due as provided in this section, there 145
shall be added to the amount of the tax interest at the rate of one per 146 Substitute Bill No. 7373
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cent per month or fraction thereof from the date the tax became due 147
until it is paid. 148
(j) (1) Any affected business entity subject to tax under this section 149
may elect to file a combined return together with one or more other 150
commonly-owned affected business entities subject to tax under this 151
section. Each affected business entity making such election shall 152
submit written notice of such election to file a combined return, 153
including the written consent of the other commonly-owned affected 154
business entities to such election, to the commissioner not later than 155
the due date, or if an extension of time to file has been requested and 156
granted, the extended due date, of the returns due from such entities. 157
An affected business entity shall submit such written notice and 158
consent for each taxable year such entity makes the election under this 159
subdivision. Each affected business entity electing to file a combined 160
return under this subdivision shall be jointly and severally liable for 161
the tax due under this section. For the purposes of this subdivision, 162
"commonly-owned" means that more than eighty per cent of the voting 163
control of an affected business entity is directly or indirectly owned by 164
a common owner or owners, either corporate or noncorporate. 165
Whether voting control is indirectly owned shall be determined in 166
accordance with Section 318 of the Internal Revenue Code. 167
(2) Except as provided in subdivision (5) of this subsection, affected 168
business entities that elect to file a combined return under subdivision 169
(1) of this subsection shall net the amounts each such entity calculates 170
under subdivision (1) of subsection (c) of this section after such 171
amounts are separately apportioned or allocated by each affected 172
business entity in accordance with this section. 173
(3) Affected business entities that elect to file a combined return 174
under subdivision (1) of this subsection shall report to the 175
commissioner the portion of the direct and indirect [pro rata] share of 176
the tax paid with the combined return that is allocated to each of their 177
members. Such report shall be filed with the combined return and the 178
allocation reported shall be irrevocable. 179 Substitute Bill No. 7373
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(4) The election made under this subsection shall not affect the 180
calculation of tax due under any other provision of the general statutes 181
other than with respect to the calculation of the credits under 182
subsection (g) of this section. 183
(5) Affected business entities that elect to file a combined return 184
under subdivision (1) of this subsection shall calculate their tax due in 185
accordance with subsection (c) of this section unless each such entity 186
elects under subsection (k) of this section to calculate its tax due on the 187
alternative basis under subsection (l) of this section. If such election is 188
made, the affected business entities shall net their alternative tax bases 189
instead of netting the amounts under subdivision (2) of this subsection. 190
(k) In lieu of calculating the tax due in accordance with subsection 191
(c) of this section, any affected business entity may elect to calculate 192
the tax due on the alternative basis under subsection (l) of this section. 193
An affected business entity making such election shall submit to the 194
commissioner written notice of such election not later than the due 195
date, or if an extension of time to file has been requested and granted, 196
the extended due date, of the return due from such entity. An affected 197
business entity shall submit such written notice for each taxable year 198
such entity makes the election under this subsection. The election 199
made under this subsection shall not affect the calculation of tax due 200
under any other provision of the general statutes other than with 201
respect to the calculation of the credits under subsection (g) of this 202
section. 203
(l) (1) The tax due from an affected business entity making the 204
election under subsection (k) of this section shall be equal to six and 205
ninety-nine-hundredths per cent multiplied by the alternative tax base. 206
The alternative tax base shall be equal to the resident portion of 207
unsourced income plus modified Connecticut source income. 208
(2) For the purposes of this subsection: 209
(A) "Resident portion of unsourced income" means unsourced 210 Substitute Bill No. 7373
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income multiplied by a percentage equal to the sum of the ownership 211
interests in the affected business entity owned directly or indirectly by 212
members who are residents of this state, as defined in section 12-701; 213
(B) "Unsourced income" means the separately and nonseparately 214
computed items, as described in Section 702(a) of the Internal Revenue 215
Code with respect to a partnership or Section 1366 of the Internal 216
Revenue Code with respect to an S corporation, of the affected 217
business entity, excluding any item treated as an itemized deduction 218
for federal income tax purposes, plus any item described in Section 219
707(c) of the Internal Revenue Code with respect to a partnership, 220
regardless of the location from which such item is derived or 221
connected, as increased or decreased by any modification described in 222
section 12-701, that relates to an item of the affected business entity's 223
income, gain, loss or deduction, regardless of the location from which 224
such item is derived or connected, less (i) the amount determined 225
under subdivision (1) of subsection (c) of this section, determined 226
without regard to subsection (d) of this section, and (ii) (I) the 227
separately and nonseparately computed items, as described in Section 228
702(a) of the Internal Revenue Code, of the affected business entity, 229
excluding any item treated as an itemized deduction for federal 230
income tax purposes, plus any item described in Section 707(c) of the 231
Internal Revenue Code with respect to a partnership, to the extent any 232
such items under this subclause are derived from or connected with 233
sources within another state that has jurisdiction to subject the affected 234
business entity to tax, as determined under the provisions of chapter 235
229, (II) as increased or decreased by any modification described in 236
section 12-701, that relates to an item of the affected business entity's 237
income, gain or deduction, to the extent derived from or connected 238
with sources within another state that has jurisdiction to subject the 239
affected business entity to tax, as determined under the provisions of 240
chapter 229; and 241
(C) "Modified Connecticut source income" means the amount 242
calculated under subdivision (1) of subsection (c) of this section 243 Substitute Bill No. 7373
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multiplied by a percentage equal to the sum of the ownership interests 244
in the affected business entity owned by members that are (i) subject to 245
tax under chapter 229, or (ii) affected business entities to the extent 246
such entities are directly or indirectly owned by persons subject to tax 247
under chapter 229. A member that is an affected business entity shall 248
be presumed to be directly or indirectly owned by persons subject to 249
tax under chapter 229 unless the affected business entity subject to tax 250
under this section can establish otherwise by clear and convincing 251
evidence to the satisfaction of the commissioner. 252
(m) The provisions of sections 12-723, 12-725 and 12-728 to 12-737, 253
inclusive, shall apply to the provisions of this section in the same 254
manner and with the same force and effect as if the language of said 255
sections had been incorporated in full into this section and had 256
expressly referred to the tax under this section, except to the extent 257
that any such provision is inconsistent with a provision of this section. 258
Sec. 2. Subdivision (1) of subsection (b) of section 12-699a of the 259
general statutes is repealed and the following is substituted in lieu 260
thereof (Effective July 1, 2019, and applicable to taxable years commencing 261
on or after January 1, 2019): 262
(b) (1) Each affected business entity required to pay the tax imposed 263
under section 12-699, as amended by this act, and whose required 264
annual payment for the taxable year is greater than or equal to one 265
thousand dollars shall make the required annual payment each taxable 266
year, in four required estimated tax installments on the following due 267
dates: (A) For the first required installment, the fifteenth day of the 268
fourth month of the taxable year; (B) for the second required 269
installment, the fifteenth day of the sixth month of the taxable year; (C) 270
for the third required installment, the fifteenth day of the ninth month 271
of the taxable year, and (D) for the fourth required installment, the 272
fifteenth day of the first month of the next succeeding taxable year. An 273
affected business entity may elect to pay any required installment prior 274
to the specified due date. Except as provided in subdivision (2) of this 275
subsection, the amount of each required installment shall be twenty-276 Substitute Bill No. 7373
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five per cent of the required annual payment. 277
Sec. 3. Subdivision (8) of subsection (a) of section 3-20j of the general 278
statutes is repealed and the following is substituted in lieu thereof 279
(Effective from passage): 280
(8) "Withholding taxes" means taxes required to be deducted and 281
withheld [by employers from the wages and salaries of employees] 282
pursuant to sections 12-705 and 12-706 and paid [by employers] to the 283
Commissioner of Revenue Services pursuant to section 12-707 [as a 284
credit for income taxes payable by such employees, and includes, 285
without limitation, taxes deducted and withheld pursuant to sections 286
12-705 and 12-706] upon receipt by the state and including penalty and 287
interest charges on such taxes. 288
Sec. 4. Subdivision (2) of subsection (b) of section 12-35 of the 289
general statutes is repealed and the following is substituted in lieu 290
thereof (Effective October 1, 2019): 291
(2) Any such warrant on any intangible personal property of any 292
person may be served by electronic mail, [or] facsimile machine or 293
other electronic means on any third person in possession of, or 294
obligated with respect to, receivables, bank accounts, evidences of 295
debt, securities, salaries, wages, commissions, compensation or other 296
intangible personal property subject to such warrant, ordering such 297
third person to forthwith deliver such property or pay the amount due 298
or payable to the state collection agency that has made out such 299
warrant, provided such warrant may be issued only after the state 300
collection agency making out such warrant has notified the person 301
owning such property, in writing, of its intention to issue such 302
warrant. The notice of intent shall be: (A) Given in person; (B) left at 303
the dwelling or usual place of business of such person; or (C) sent by 304
certified mail, return receipt requested, to such person's last-known 305
address, not less than thirty days before the day the warrant is to be 306
issued. Any such warrant for tax due may further include an order to 307
such third person to continually deliver, during the one hundred 308 Substitute Bill No. 7373
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eighty days immediately following the date of issuance of the warrant 309
or until the tax is fully paid, whichever occurs earlier, all intangible 310
personal property that is due and that becomes due to the person 311
owing the tax. Except as otherwise provided in this subdivision, such 312
warrant shall have the same force and effect as an execution issued 313
pursuant to chapter 906. 314
Sec. 5. Subparagraph (B) of subdivision (2) of section 12-408 of the 315
general statutes is repealed and the following is substituted in lieu 316
thereof (Effective from passage and applicable to claims for credit received on 317
or after such date): 318
(B) Whenever such tax, payable by the consumer (i) with respect to 319
a charge account or credit sale, [occurring on or after July 1, 1984,] is 320
remitted by the retailer to the commissioner and such sale as an 321
account receivable is determined to be worthless and is actually 322
written off as uncollectible for federal income tax purposes, or (ii) to a 323
retailer who computes taxable income, for purposes of taxation under 324
the Internal Revenue Code of 1986, or any subsequent corresponding 325
internal revenue code of the United States, as amended from time to 326
time, [amended,] on the cash basis method of accounting with respect 327
to a sale, [occurring on or after July 1, 1989,] is remitted by the retailer 328
to the commissioner and such sale as an account receivable is 329
determined to be worthless, the amount of such tax remitted may be 330
credited against the tax due on the sales tax return filed by the retailer 331
for the monthly or quarterly period, whichever is applicable, next 332
following the period in which such amount is actually so written off, 333
but in no event shall such credit be allowed later than three years 334
following the date such tax is remitted, unless the credit relates to a 335
period for which a waiver is given pursuant to subsection (g) of section 336
12-415. The commissioner shall, by regulations adopted in accordance 337
with the provisions of chapter 54, provide standards for proving any 338
such claim for credit. If any payment is made by a consumer with 339
respect to an account, such payment shall be applied first toward the 340
sales tax, and if any account with respect to which such credit is 341 Substitute Bill No. 7373
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allowed is thereafter collected by the retailer in whole or in part, the 342
amount so collected, up to the amount of the sales tax for which the 343
credit was claimed, shall be included in the sales tax return covering 344
the period in which such collection occurs. The tax applicable in any 345
such case shall be determined in accordance with the rate of sales tax 346
in effect at the time of the original sale. 347
Sec. 6. Section 12-435 of the general statutes is repealed and the 348
following is substituted in lieu thereof (Effective July 1, 2019): 349
Each distributor of alcoholic beverages shall pay a tax to the state on 350
all sales within the state of alcoholic beverages, except sales to licensed 351
distributors, sales of alcoholic beverages [which] that, in the course of 352
such sales, are actually transported to some point without the state and 353
except [malt beverages which are] beer that is consumed on the 354
premises covered by a manufacturer's permit, at the rates for the 355
respective categories of alcoholic beverages listed below: 356
[(a)] (1) Beer, seven dollars and twenty cents for each barrel, three 357
dollars and sixty cents for each half barrel, one dollar and eighty cents 358
for each quarter barrel and twenty-four cents per wine gallon or 359
fraction thereof on quantities less than a quarter barrel; 360
[(b)] (2) Liquor, five dollars and forty cents per wine gallon; 361
[(c)] (3) Still wines containing not more than twenty-one per cent of 362
absolute alcohol, except as provided in [subsections (g) and (h)] 363
subdivisions (7) and (8) of this section, seventy-two cents per wine 364
gallon; 365
[(d)] (4) Still wines containing more than twenty-one per cent of 366
absolute alcohol and sparkling wines, one dollar and eighty cents per 367
wine gallon; 368
[(e)] (5) Alcohol in excess of 100 proof, five dollars and forty cents 369
per proof gallon; 370 Substitute Bill No. 7373
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[(f)] (6) Liquor coolers containing not more than seven per cent of 371
alcohol by volume, two dollars and forty-six cents per wine gallon; 372
[(g)] (7) Still wine containing not more than twenty-one per cent of 373
absolute alcohol, produced by a person who produces not more than 374
fifty-five thousand wine gallons of wine during the calendar year, 375
eighteen cents per wine gallon, provided such person presents to each 376
distributor of alcoholic beverages described in this section a certificate, 377
issued by the commissioner, stating that such person produces not 378
more than fifty-five thousand wine gallons of wine during the calendar 379
year. The commissioner is authorized to issue such certificates, 380
prescribe the procedures for obtaining such certificates and prescribe 381
their form; and 382
[(h)] (8) Cider containing not more than seven per cent of absolute 383
alcohol shall be subject to the same rate as applies to beer, as provided 384
in [subsection (a)] subdivision (1) of this section. 385
Sec. 7. Section 12-790a of the general statutes is repealed and the 386
following is substituted in lieu thereof (Effective from passage): 387
(a) As used in sections 12-790a to 12-790c, inclusive, "attorney", 388
"certified public accountant", "commissioner", "creditor", "facilitator", 389
"refund anticipation check", "refund anticipation loan", "return", "tax 390
preparation services" and "tax preparer" have the same meanings as 391
provided in section 12-790, and "commercial tax return preparation 392
business" means a person that employs tax preparers. 393
(b) (1) On and after January 1, 2019, no person, except as provided 394
in subsection (e) of this section, shall engage in the business of, solicit 395
business as or advertise as furnishing tax preparation services or acting 396
as a facilitator or make representations to be a tax preparer or 397
facilitator, without a tax preparer permit or a facilitator permit, as 398
applicable, issued by the commissioner. Each applicant for such permit 399
and renewal of such permit shall apply by electronic means in the form 400
and manner prescribed by the commissioner. 401 Substitute Bill No. 7373
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(2) Each individual applying for a permit shall (A) be eighteen years 402
of age or older, (B) have obtained a high school diploma, (C) possess a 403
preparer tax identification number issued by the Internal Revenue 404
Service that shall be used by the tax preparer or facilitator for each 405
return such tax preparer is required to sign and each refund 406
anticipation loan or refund anticipation check such facilitator is 407
required to sign, and (D) for a tax preparer, present evidence 408
satisfactory to the commissioner that the applicant has experience, 409
education or training in tax preparation services, which evidence shall 410
include, on and after January 1, [2020] 2022, a certificate of completion 411
of an annual filing season program administered by the Internal 412
Revenue Service. 413
(3) The commissioner may issue a permit under this subsection to 414
an applicant that presents evidence satisfactory to the commissioner 415
that the applicant is authorized to act as a tax preparer or facilitator in 416
a state that has professional requirements substantially similar to the 417
requirements for tax preparers or facilitators in this state. The 418
commissioner shall provide written notice of the commissioner's 419
decision approving or denying an application for issuance or renewal 420
of a permit not later than sixty days after receipt of the application. 421
(4) The fee for an initial application shall be one hundred dollars. A 422
permit issued pursuant to this subsection shall expire after two years 423
and a tax preparer or facilitator seeking renewal shall submit a renewal 424
application and renewal fee of fifty dollars. 425
(5) If an individual acts as both a tax preparer and a facilitator, the 426
commissioner shall issue a single permit covering both activities. 427
(c) (1) If, at any time following the issuance or renewal of a permit 428
issued pursuant to subsection (b) of this section, any information 429
provided to the commissioner by the tax preparer or facilitator is no 430
longer accurate, such tax preparer or facilitator shall promptly provide 431
updated information to the commissioner. 432 Substitute Bill No. 7373
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(2) The issuance of a tax preparer permit or a facilitator permit shall 433
not be advertised as an endorsement by the commissioner of the tax 434
preparer's or facilitator's services. 435
(d) (1) On and after January 1, 2019, the commissioner may impose 436
on any tax preparer or facilitator that has not been issued a permit 437
pursuant to this section a civil penalty of one hundred dollars for each 438
day that the commissioner finds such tax preparer or facilitator to have 439
provided tax preparation services or acted as a facilitator. 440
(2) On and after January 1, 2019, if a tax preparer, facilitator or 441
commercial tax return preparation business employs an individual to 442
provide tax preparation services or a person to act as a facilitator that 443
is not exempt under subsection (e) of this section and has not been 444
issued a permit pursuant to this section, the commissioner may impose 445
on such employing tax preparer, facilitator or business a civil penalty 446
of five hundred dollars per violation. 447
(3) On and after January 1, 2019, whenever a tax preparer ceases to 448
engage in the preparation of or in advising or assisting in the 449
preparation of personal income tax returns or a facilitator ceases to 450
engage in the activities of a facilitator, such tax preparer or facilitator 451
may apply to the commissioner for inactive permit status. A permit 452
that is granted inactive status shall not require renewal, except that 453
such permit may be reactivated before its expiration upon application 454
to the commissioner with a payment of the renewal fee. 455
(4) A tax preparer or facilitator whose permit is inactive shall 456
neither act as a tax preparer or facilitator nor advertise such tax 457
preparer's or facilitator's status as being permitted to act as a tax 458
preparer or facilitator. 459
(e) The following persons shall be exempt from the provisions of 460
sections 12-790a to 12-790c, inclusive: 461
(1) An accountant holding (A) an active license issued by the State 462
Board of Accountancy, or (B) a valid and active permit, license or 463 Substitute Bill No. 7373
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equivalent professional credential issued by another state or 464
jurisdiction of the United States; 465
(2) An attorney and any person engaged in prov iding tax 466
preparation services under the supervision of such attorney; 467
(3) An individual enrolled to practice before the Internal Revenue 468
Service under Circular 230; 469
(4) An individual employed by a local, state or federal 470
governmental agency while engaged in the performance of such 471
person's official duties; 472
(5) An individual serving as an employee of or assistant to a tax 473
preparer or a person exempted under this subsection, in the 474
performance of official duties for such tax preparer or exempt person; 475
(6) An individual employed, full-time or part-time, to act as a tax 476
preparer solely for the business purposes of such individual's 477
employer; 478
(7) A person acting as a fiduciary on behalf of an estate; and 479
(8) An Internal Revenue Services qualified volunteer tax preparer, 480
including, but not limited to, a tax preparer sponsored by the Tax 481
Counseling for the Elderly program or the Volunteer Income Tax 482
Assistance program. 483
(f) The commissioner shall maintain a public registry containing the 484
names and principal business address of each person holding a permit 485
pursuant to this section. 486
(g) The commissioner shall keep confidential any personal financial 487
information gathered pursuant to an investigation of any alleged 488
violation of sections 12-790a to 12-790c, inclusive, unless disclosure is 489
(1) considered necessary for the investigation or prosecution of an 490
alleged violation of this section or any regulation or order adopted 491 Substitute Bill No. 7373
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thereunder, or (2) otherwise expressly authorized under the provisions 492
of federal or state law. For purposes of this subsection, "personal 493
financial information" includes, but is not limited to, returns and 494
return information, as defined under federal and state law. 495
Sec. 8. Section 13b-121 of the general statutes is repealed and the 496
following is substituted in lieu thereof (Effective from passage): 497
(a) As used in this section, "transportation network company" and 498
"prearranged ride" have the same meanings as provided in section 13b-499
116. 500
(b) Each transportation network company shall pay a fee of twenty-501
five cents on each prearranged ride that originates in this state. 502
(c) On or before the last day of the month next succeeding each 503
calendar quarter, each transportation network company shall: (1) File a 504
return electronically for the preceding period with the Commissioner 505
of Revenue Services on such forms as the commissioner may prescribe; 506
and (2) make payment of the fees required under subsection (b) of this 507
section by electronic funds transfer in the manner provided by chapter 508
228g. Any document received and maintained by the commissioner 509
with respect to a transportation network company shall be return 510
information, as defined in section 12-15, and shall not be subject to 511
disclosure under the Freedom of Information Act, as defined in section 512
1-200. 513
(d) Any fees due and unpaid under this section shall be subject to 514
the penalties and interest established in section 12-547 and the amount 515
of such fee, penalty or interest, due and unpaid, may be collected 516
under the provisions of section 12-35, as amended by this act, as if they 517
were taxes due to the state. 518
(e) The provisions of sections 12-548, 12-550 to 12-554, inclusive, as 519
amended by this act, and 12-555b shall apply to the provisions of this 520
section in the same manner and with the same force and effect as if the 521
language of said sections had been incorporated in full into this section 522 Substitute Bill No. 7373
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and had expressly referred to the fee imposed under this section, 523
except to the extent that any such provision is inconsistent with a 524
provision of this section. 525
(f) Any fees received under this section shall be deposited into the 526
General Fund. For revenue reporting purposes only, the Commissioner 527
of Revenue Services shall include any such fees with the revenue 528
reported under chapter [222] 225. 529
(g) The Commissioner of Revenue Services, in consultation with the 530
Commissioner of Transportation, may adopt regulations in accordance 531
with the provisions of chapter 54, to carry out the provisions of this 532
section. 533
Sec. 9. Subsection (b) of section 32-9t of the general statutes is 534
repealed and the following is substituted in lieu thereof (Effective from 535
passage and applicable to income years commencing on or after such date): 536
(b) There is established an urban and industrial site reinvestment 537
program under which taxpayers who make investments in eligible 538
urban reinvestment projects or eligible industrial site investment 539
projects may be allowed a credit against the tax imposed under 540
[chapters 207 to 212a, inclusive,] chapter 207, 208, 208a, 209, 210, 211 or 541
212 or section 38a-743, or a combination of [said] such taxes, in an 542
amount equal to the percentage of their approved investment 543
determined in accordance with subsection (i) of this section. 544
Sec. 10. Section 12-3a of the general statutes is repealed and the 545
following is substituted in lieu thereof (Effective from passage): 546
(a) There is created a Penalty Review Committee, which shall 547
consist of the State Comptroller or an employee of the office of the 548
State Comptroller designated by said Comptroller, the Secretary of the 549
Office of Policy and Management or an employee of the Office of 550
Policy and Management designated by said secretary and the 551
Commissioner of Revenue Services or an employee of the Department 552
of Revenue Services designated by said commissioner. Said committee 553 Substitute Bill No. 7373
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shall meet monthly or as often as necessary to approve any waiver of 554
penalty in excess of [one] five thousand dollars, which the 555
Commissioner of Revenue Services is authorized to waive in 556
accordance with this title, or which the Commissioner of Consumer 557
Protection is authorized to waive in accordance with chapter 226. A 558
majority vote of the committee shall be required for approval of such 559
waiver. 560
(b) An itemized statement of all waivers approved under this 561
section shall be available to the public for inspection by any person. 562
(c) The Penalty Review Committee created pursuant to subsection 563
(a) of this section shall adopt regulations, in accordance with chapter 564
54, establishing guidelines for the waiver of any penalty in [excess of 565
one thousand dollars] accordance with this section. 566
(d) Any person aggrieved by the action of the Penalty Review 567
Committee may, [within one month] not later than thirty days after 568
notice of such action is delivered or mailed to such person, appeal 569
therefrom to the superior court for the judicial district of New Britain, 570
which shall be accompanied by a citation to the members of said 571
committee to appear before said court. Such citation shall be signed by 572
the same authority, and such appeal shall be returnable at the same 573
time and served and returned in the same manner as is required in 574
case of a summons in a civil action. The authority issuing the citation 575
shall take from the appellant a bond or recognizance to the state of 576
Connecticut with surety to prosecute the appeal to effect and to 577
comply with the orders and decrees of the court in the premises. Such 578
appeals shall be preferred cases, to be heard, unless cause appears to 579
the contrary, at the first session, by the court or by a committee 580
appointed by it. Said court may grant such relief as may be equitable. 581
If the appeal is without probable cause, the court may tax double or 582
triple costs, as the case demands; and, upon all such appeals which 583
may be denied, costs may be taxed against the appellant at the 584
discretion of the court, but no costs shall be taxed against the state. 585 Substitute Bill No. 7373
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Sec. 11. Section 12-30 of the general statutes is repealed and the 586
following is substituted in lieu thereof (Effective from passage): 587
If the Commissioner of Revenue Services determines that any 588
statute or regulation [he] the commissioner is charged with enforcing 589
is being adversely affected, [he] the commissioner may impose a 590
penalty of fifty dollars in case of a failure to file any return or report 591
[which] that is required by law or regulation to be filed with the 592
commissioner on or before the date prescribed therefor, which failure 593
is determined with regard to any extension of time for filing. The 594
commissioner may, upon application, if it is proven to [his] the 595
commissioner's satisfaction that such failure is due to reasonable cause 596
and is not due to negligence or intentional disregard of any provision 597
of law or regulation, waive all or any part of such penalty. No taxpayer 598
shall be subject to such penalty in relation to any tax period for which 599
[he] such taxpayer is subject to a penalty for late payment of a tax or to 600
an additional amount being added to the tax imposed based on a 601
failure to file. If the commissioner does not, upon application, waive all 602
or any part of such penalty, any person aggrieved by such action of the 603
commissioner may, not later than [one month] thirty days after notice 604
of such action is mailed or delivered to such person, appeal therefrom 605
to the superior court for the judicial district of Hartford. The appeal 606
shall be accompanied by a citation to the commissioner to appear 607
before said court. Such citation shall be signed by the same authority, 608
and such appeal shall be returnable at the same time and served and 609
returned in the same manner as is required in case of a summons in a 610
civil action. The authority issuing the citation shall take from the 611
appellant a bond or recognizance to the state of Connecticut with 612
surety to prosecute the appeal to effect and to comply with the orders 613
and decrees of the court in the premises. Such appeals shall be 614
preferred cases, to be heard, unless cause appears to the contrary, at 615
the first session, by the court or by a committee appointed by it. Said 616
court may grant such relief as may be equitable. If the appeal is 617
without probable cause, the court may tax double or triple costs, as the 618
case demands; and, upon all such appeals which may be denied, costs 619 Substitute Bill No. 7373
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may be taxed against the appellant at the discretion of the court, but no 620
costs shall be taxed against the state. 621
Sec. 12. Section 12-208 of the general statutes is repealed and the 622
following is substituted in lieu thereof (Effective from passage): 623
(a) Any company subject to any tax or charge under this chapter 624
that is aggrieved by the action of the commissioner or [his] the 625
commissioner's authorized agent in fixing the amount of any tax, 626
penalty, interest or charge provided for by this chapter may apply to 627
the commissioner, in writing, [within] not later than sixty days after 628
the notice of such action is delivered or mailed to [it] the company, for 629
a hearing and a correction of the amount of such tax, penalty, interest 630
or charge, so fixed, setting forth the reasons why such hearing should 631
be granted and the amount in which such tax, penalty, interest or 632
charge should be reduced. The commissioner shall promptly consider 633
each such application and may grant or deny the hearing requested. If 634
the hearing is denied, the applicant shall be notified forthwith. If it is 635
granted, the commissioner shall notify the applicant of the time and 636
place fixed for such hearing. After such hearing the commissioner may 637
make such order in the premises as appears to him just and lawful and 638
shall furnish a copy of such order to the applicant. The commissioner 639
may, by notice in writing, at any time within three years after the date 640
when any return of any such person has been due, order a hearing on 641
his own initiative and require such person or any other individual 642
whom [he] the commissioner believes to be in possession of relevant 643
information concerning such person to appear before [him or his] the 644
commissioner or the commissioner's authorized agent with any 645
specified books of account, papers or other documents, for 646
examination under oath. 647
(b) Any company subject to any tax or charge under this chapter 648
that is aggrieved because of any order, decision, determination or 649
disallowance of the Commissioner of Revenue Services made under 650
this chapter may, [within one month] not later than thirty days after 651
service of notice of such order, decision, determination or 652 Substitute Bill No. 7373
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disallowance, take an appeal therefrom to the superior court for the 653
judicial district of New Britain, which appeal shall be accompanied by 654
a citation to the Commissioner of Revenue Services to appear before 655
said court. Such citation shall be signed by the same authority, and 656
such appeal shall be returnable at the same time and served and 657
returned in the same manner, as is required in case of a summons in a 658
civil action. The authority issuing the citation shall take from the 659
appellant a bond or recognizance to the state of Connecticut, with 660
surety, to prosecute the appeal to effect and to comply with the orders 661
and decrees of the court in the premises. Such appeals shall be 662
preferred cases, to be heard, unless cause appears to the contrary, at 663
the first session, by the court or by a committee appointed by the court. 664
Said court may grant such relief as may be equitable and, if such tax or 665
charge has been paid prior to the granting of such relief, may order the 666
[State] Treasurer to pay the amount of such relief, with interest at the 667
rate of two-thirds of one per cent per month or fraction thereof, to such 668
aggrieved person. If the appeal has been taken without probable cause, 669
the court may tax double or triple costs, as the case demands; and, 670
upon all such appeals which are denied, costs may be taxed against the 671
appellant at the discretion of the court, but no costs shall be taxed 672
against the state. 673
Sec. 13. Section 12-237 of the general statutes is repealed and the 674
following is substituted in lieu thereof (Effective from passage): 675
Any taxpayer aggrieved because of any order, decision, 676
determination or disallowance of the Commissioner of Revenue 677
Services under the provisions of this part may, [within one month] not 678
later than thirty days after service upon the taxpayer of notice of such 679
order, decision, determination or disallowance, take an appeal 680
therefrom to the superior court for the judicial district of New Britain, 681
which shall be accompanied by a citation to the Commissioner of 682
Revenue Services to appear before said court. Such citation shall be 683
signed by the same authority, and such appeal shall be returnable at 684
the same time and served and returned in the same manner, as is 685 Substitute Bill No. 7373
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required in case of a summons in a civil action. The authority issuing 686
the citation shall take from the appellant a bond or recognizance to the 687
state of Connecticut, with surety to prosecute the appeal to effect and 688
to comply with the orders and decrees of the court in the premises. 689
Such appeals shall be preferred cases, to be heard, unless cause 690
appears to the contrary, at the first session, by the court or by a 691
committee appointed by it. Said court may grant such relief as may be 692
equitable and, if such tax has been paid prior to the granting of such 693
relief, may order the Treasurer to pay the amount of such relief, with 694
interest at the rate of eight per cent per annum, to the aggrieved 695
taxpayer. If the appeal has been taken without probable cause, the 696
court may tax double or triple costs, as the case demands; and, upon 697
all such appeals which may be denied, costs may be taxed against the 698
appellant at the discretion of the court, but no costs shall be taxed 699
against the state. 700
Sec. 14. Subsection (b) of section 12-263v of the general statutes is 701
repealed and the following is substituted in lieu thereof (Effective from 702
passage): 703
(b) Any taxpayer subject to any tax or fee under section 12-263q or 704
12-263r that is aggrieved because of any order, decision, determination 705
or disallowance of the commissioner made under sections 12-263q to 706
12-263u, inclusive, or subsection (a) of this section may, not later than 707
[one month] thirty days after service of notice of such order, decision, 708
determination or disallowance, take an appeal therefrom to the 709
superior court for the judicial district of New Britain, which appeal 710
shall be accompanied by a citation to the commissioner to appear 711
before said court. Such citation shall be signed by the same authority 712
and such appeal shall be returnable at the same time and served and 713
returned in the same manner as is required in case of a summons in a 714
civil action. The authority issuing the citation shall take from the 715
appellant a bond or recognizance to the state of Connecticut, with 716
surety, to prosecute the appeal to effect and to comply with the orders 717
and decrees of the court in the premises. Such appeals shall be 718 Substitute Bill No. 7373
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preferred cases, to be heard, unless cause appears to the contrary, at 719
the first session, by the court or by a committee appointed by the court. 720
Said court may grant such relief as may be equitable and, if such tax or 721
charge has been paid prior to the granting of such relief, may order the 722
Treasurer to pay the amount of such relief, with interest at the rate of 723
two-thirds of one per cent per month or fraction thereof, to such 724
taxpayer. If the appeal has been taken without probable cause, the 725
court may tax double or triple costs, as the case demands and, upon all 726
such appeals that are denied, costs may be taxed against such taxpayer 727
at the discretion of the court but no costs shall be taxed against the 728
state. 729
Sec. 15. Section 12-268l of the general statutes is repealed and the 730
following is substituted in lieu thereof (Effective from passage): 731
Any taxpayer aggrieved because of any order, decision, 732
determination or disallowance of the Commissioner of Revenue 733
Services made under the provisions of chapter 210, 211 or 212 or this 734
chapter may, [within one month] not later than thirty days after service 735
upon the taxpayer of notice of such order, decision, determination or 736
disallowance, take an appeal therefrom to the superior court for the 737
judicial district of New Britain, which shall be accompanied by a 738
citation to the Commissioner of Revenue Services to appear before said 739
court. Such citation shall be signed by the same authority, and such 740
appeal shall be returnable at the same time and served and returned in 741
the same manner, as is required in case of a summons in a civil action. 742
The authority issuing the citation shall take from the appellant a bond 743
or recognizance to the state of Connecticut, with surety to prosecute 744
the appeal to effect and to comply with the orders and decrees of the 745
court in the premises. Such appeals shall be preferred cases, to be 746
heard, unless cause appears to the contrary, at the first session, by the 747
court or by a committee appointed by it. Said court may grant such 748
relief as may be equitable and, if such tax has been paid prior to the 749
granting of such relief, may order the Treasurer to pay the amount of 750
such relief, with interest at the rate of two-thirds of one per cent per 751 Substitute Bill No. 7373
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month or fraction thereof to the aggrieved taxpayer. If the appeal has 752
been taken without probable cause, the court may tax double or triple 753
costs, as the case demands; and, upon all such appeals which may be 754
denied, costs may be taxed against the appellant at the discretion of the 755
court, but no costs shall be taxed against the state. 756
Sec. 16. Section 12-312 of the general statutes is repealed and the 757
following is substituted in lieu thereof (Effective from passage): 758
Any person aggrieved because of any decision, order, determination 759
or disallowance of the commissioner under the provisions of this 760
chapter may, [within one month] not later than thirty days after service 761
upon such person of notice of such decision, order, determination or 762
disallowance, appeal therefrom to the superior court for the judicial 763
district of New Britain, which appeal shall be accompanied by a 764
citation to the Commissioner of Revenue Services to appear before said 765
court. Such citation shall be signed by the same authority, and such 766
appeal shall be returnable at the same time and served and returned in 767
the same manner, as is required in case of a summons in a civil action. 768
The authority issuing the citation shall take from the appellant a bond 769
or recognizance to the state of Connecticut, with surety to prosecute 770
the appeal to effect and to comply with the orders and decrees of the 771
court in the premises. Such appeals shall be preferred cases, to be 772
heard, unless cause appears to the contrary, at the first session, by the 773
court or by a committee appointed by it. Said court may grant such 774
relief as may be equitable and, if such tax has been paid prior to the 775
granting of such relief, may order the Treasurer to pay the amount of 776
such relief, with interest at the rate of two-thirds of one per cent per 777
month or fraction thereof, to the aggrieved taxpayer. If the appeal has 778
been taken without probable cause, the court may tax double or triple 779
costs, as the case demands; and, upon all such appeals which are 780
denied, costs may be taxed against the appellant at the discretion of the 781
court, but no costs shall be taxed against the state. 782
Sec. 17. Section 12-330m of the general statutes is repealed and the 783
following is substituted in lieu thereof (Effective from passage): 784 Substitute Bill No. 7373
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Any person aggrieved because of any decision, order, determination 785
or disallowance of the commissioner under the provisions of this 786
chapter may, [within one month] not later than thirty days after service 787
upon such person of notice of such decision, order, determination or 788
disallowance, appeal therefrom to the superior court for the judicial 789
district of New Britain, which appeal shall be accompanied by a 790
citation to the commissioner to appear before said court. Such citation 791
shall be signed by the same authority, and such appeal shall be 792
returnable at the same time and served and returned in the same 793
manner, as is required in case of a summons in a civil action. The 794
authority issuing the citation shall take from the appellant a bond or 795
recognizance to the state of Connecticut, with surety to prosecute the 796
appeal to effect and to comply with the orders and decrees of the court 797
in the premises. Such appeals shall be preferred cases, to be heard, 798
unless cause appears to the contrary, at the first session, by the court or 799
by a committee appointed by it. Said court may grant such relief as 800
may be equitable and, if such tax has been paid prior to the granting of 801
such relief, may order the Treasurer to pay the amount of such relief, 802
with interest at the rate of six per cent per annum, to the aggrieved 803
taxpayer. If the appeal has been taken without probable cause, the 804
court may tax double or triple costs, as the case demands; and, upon 805
all such appeals which are denied, costs may be taxed against the 806
appellant at the discretion of the court, but no costs shall be taxed 807
against the state. 808
Sec. 18. Section 12-422 of the general statutes is repealed and the 809
following is substituted in lieu thereof (Effective from passage): 810
Any taxpayer aggrieved because of any order, decision, 811
determination or disallowance of the Commissioner of Revenue 812
Services under section 12-418, 12-421 or 12-425 may, [within one 813
month] not later than thirty days after service upon the taxpayer of 814
notice of such order, decision, determination or disallowance, take an 815
appeal therefrom to the superior court for the judicial district of New 816
Britain, which shall be accompanied by a citation to the Commissioner 817 Substitute Bill No. 7373
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of Revenue Services to appear before said court. Such citation shall be 818
signed by the same authority, and such appeal shall be returnable at 819
the same time and served and returned in the same manner, as is 820
required in case of a summons in a civil action. The authority issuing 821
the citation shall take from the appellant a bond or recognizance to the 822
state of Connecticut, with surety to prosecute the appeal to effect and 823
to comply with the orders and decrees of the court in the premises. 824
Such appeals shall be preferred cases, to be heard, unless cause 825
appears to the contrary, at the first session, by the court or by a 826
committee appointed by it. Said court may grant such relief as may be 827
equitable and, if such tax has been paid prior to the granting of such 828
relief, may order the Treasurer to pay the amount of such relief, with 829
interest at the rate of two-thirds of one per cent per month or fraction 830
thereof, to the aggrieved taxpayer. If the appeal has been taken 831
without probable cause, the court may tax double or triple costs, as the 832
case demands; and, upon all such appeals which are denied, costs may 833
be taxed against the appellant at the discretion of the court, but no 834
costs shall be taxed against the state. 835
Sec. 19. Section 12-448 of the general statutes is repealed and the 836
following is substituted in lieu thereof (Effective from passage): 837
Any taxpayer aggrieved because of any decision, order, 838
determination or disallowance of the Commissioner of Revenue 839
Services under the provisions of this chapter may, [within one month] 840
not later than thirty days after service upon such taxpayer of notice of 841
such decision, order, determination or disallowance, take an appeal 842
therefrom to the superior court for the judicial district of New Britain, 843
which appeal shall be accompanied by a citation to the Commissioner 844
of Revenue Services to appear before said court. Such citation shall be 845
signed by the same authority, and such appeal shall be returnable at 846
the same time and served and returned in the same manner, as is 847
required in case of a summons in a civil action. The authority issuing 848
the citation shall take from the appellant a bond or recognizance to the 849
state of Connecticut, with surety to prosecute the appeal to effect and 850 Substitute Bill No. 7373
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to comply with the orders and decrees of the court in the premises. 851
Such appeals shall be preferred cases, to be heard, unless cause 852
appears to the contrary, at the first session, by the court or by a 853
committee appointed by the court. Said court may grant such relief as 854
may be equitable, and, if such tax has been paid prior to the granting 855
of such relief, may order the Treasurer to pay the amount of such 856
relief, with interest at the rate of two-thirds of one per cent per month 857
or fraction thereof, to the aggrieved taxpayer. If the appeal has been 858
taken without probable cause, the court may tax double or triple costs, 859
as the case demands; and, upon all such appeals which are denied, 860
costs may be taxed against the appellant at the discretion of the court, 861
but no costs shall be taxed against the state. 862
Sec. 20. Section 12-463 of the general statutes is repealed and the 863
following is substituted in lieu thereof (Effective from passage): 864
Any distributor aggrieved because of any order, decision, 865
determination or disallowance of the commissioner made under this 866
chapter may, [within one month] not later than thirty days after service 867
of notice of such order, decision, determination or disallowance, take 868
an appeal therefrom to the superior court for the judicial district of 869
New Britain, which shall be accompanied by a citation to the 870
Commissioner of Revenue Services to appear before said court. Such 871
citation shall be signed by the same authority, and such appeal shall be 872
returnable at the same time and served and returned in the same 873
manner, as is required in case of a summons in a civil action. The 874
authority issuing the citation shall take from the appellant a bond or 875
recognizance to the state of Connecticut, with surety, to prosecute the 876
appeal to effect and to comply with the orders and decrees of the court 877
in the premises. Such appeals shall be preferred cases, to be heard, 878
unless cause appears to the contrary, at the first session, by the court or 879
by a committee appointed by it. Said court may grant such relief as 880
may be equitable and, if such tax has been paid prior to the granting of 881
such relief, may order the Treasurer to pay the amount of such relief, 882
with interest at the rate of two-thirds of one per cent per month or 883 Substitute Bill No. 7373
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fraction thereof to the aggrieved distributor. If the appeal has been 884
taken without probable cause, the court may tax double or triple costs, 885
as the case demands; and, upon all such appeals which may be denied, 886
costs may be taxed against the appellant at the discretion of the court, 887
but no costs shall be taxed against the state. 888
Sec. 21. Section 12-489 of the general statutes is repealed and the 889
following is substituted in lieu thereof (Effective from passage): 890
(a) Any motor carrier aggrieved by any act of the commissioner or 891
[his] the commissioner's authorized agent under this chapter may 892
apply to the commissioner, in writing, [within] not later than sixty 893
days after notification of any such act of the commissioner is delivered 894
or mailed to [it] the motor carrier, for a hearing and a correction of the 895
amount of any tax, penalty or interest, setting forth reasons why such 896
hearing should be granted and the amount by which such tax, penalty 897
or interest should be reduced. The commissioner shall promptly 898
consider each such application and may grant or deny the hearing 899
requested. If the hearing is denied, the applicant shall be notified 900
forthwith. If it is granted, the commissioner shall notify the applicant 901
of the time and place fixed for such hearing. After such hearing the 902
commissioner may make such order in the premises as appears to 903
[him] the commissioner just and lawful and shall furnish a copy of 904
such order to the applicant. The commissioner may, by notice in 905
writing, at any time within three years after the date when any return 906
of any taxpayer has been due, order a hearing on [his] the 907
commissioner's own initiative and require the taxpayer or any 908
individual whom [he] the commissioner believes to be in possession of 909
relevant information concerning the taxpayer to appear before [him or 910
his] the commissioner or the commissioner's authorized agent with 911
any specified books of account, papers or other documents, for 912
examination under oath. 913
(b) Any motor carrier aggrieved because of any order, decision, 914
determination or disallowance of the commissioner made under this 915
chapter may, [within one month] not later than thirty days after service 916 Substitute Bill No. 7373
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of notice of such order, decision, determination or disallowance, take 917
an appeal therefrom to the superior court for the judicial district of 918
New Britain, which shall be accompanied by a citation to the 919
Commissioner of Revenue Services to appear before said court. Such 920
citation shall be signed by the same authority, and such appeal shall be 921
returnable at the same time and served and returned in the same 922
manner, as is required in case of a summons in a civil action. The 923
authority issuing the citation shall take from the appellant a bond or 924
recognizance to the state of Connecticut, with surety, to prosecute the 925
appeal to effect and to comply with the orders and decrees of the court 926
in the premises. Such appeals shall be preferred cases, to be heard, 927
unless cause appears to the contrary, at the first session, by the court or 928
by a committee appointed by it. Said court may grant such relief as 929
may be equitable and, if any tax or fee has been paid prior to the 930
granting of such relief, may order the Treasurer to pay the amount of 931
such relief, with interest at the rate of two-thirds of one per cent per 932
month or fraction thereof to the aggrieved motor carrier. If the appeal 933
has been taken without probable cause, the court may tax double or 934
triple costs, as the case demands; and, upon all such appeals which are 935
denied, costs may be taxed against the appellant at the discretion of the 936
court, but no costs shall be taxed against the state. 937
Sec. 22. Section 12-554 of the general statutes is repealed and the 938
following is substituted in lieu thereof (Effective from passage): 939
Any taxpayer aggrieved because of any order, decision, 940
determination or disallowance of the Commissioner of Revenue 941
Services under the provisions of this chapter may, [within one month] 942
not later than thirty days after service upon the taxpayer of notice of 943
such order, decision, determination or disallowance, take an appeal 944
therefrom to the superior court for the judicial district of New Britain, 945
which shall be accompanied by a citation to the Commissioner of 946
Revenue Services to appear before said court. Such citation shall be 947
signed by the same authority, and such appeal shall be returnable at 948
the same time and served and returned in the same manner, as is 949 Substitute Bill No. 7373
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required in case of summons in a civil action. The authority issuing the 950
citation shall take from the appellant a bond or recognizance to the 951
state of Connecticut, with surety to prosecute the appeal to effect and 952
to comply with the orders and decrees of the court in the premises. 953
Such appeals shall be preferred cases to be heard, unless cause appears 954
to the contrary, at the first session by the court or by a committee 955
appointed by it. Said court may grant such relief as may be equitable 956
and, if such tax has been paid prior to the granting of such relief, may 957
order the Treasurer to pay the amount of such relief, with interest at 958
the rate of two-thirds of one per cent per month or fraction thereof, to 959
the aggrieved taxpayer. If the appeal has been taken without probable 960
cause, the court may tax double or triple costs, as the case demands; 961
and, upon all such appeals which may be denied, costs may be taxed 962
against the appellant at the discretion of the court, but no costs shall be 963
taxed against the state. 964
Sec. 23. Subsection (d) of section 12-586f of the general statutes is 965
repealed and the following is substituted in lieu thereof (Effective from 966
passage): 967
(d) If the tribe is aggrieved due to any assessment levied pursuant to 968
such compact and this section or by any failure to adjust an excess 969
assessment in accordance with the provisions of the compact and this 970
section, it may, [within one month from] not later than thirty days after 971
the time provided for the payment of such assessment, appeal 972
therefrom in accordance with the terms of the compact, to the superior 973
court for the judicial district of Hartford, which appeal shall be 974
accompanied by a citation to the Commissioner of Consumer 975
Protection to appear before said court. Such citation shall be signed by 976
the same authority, and such appeal shall be returnable at the same 977
time and served and returned in the same manner as is required in 978
case of a summons in a civil action. Proceedings in such matter shall be 979
conducted in the same manner as provided for in section 38a-52. 980
Sec. 24. Subsection (d) of section 12-586g of the general statutes is 981
repealed and the following is substituted in lieu thereof (Effective from 982 Substitute Bill No. 7373
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passage): 983
(d) If the tribe is aggrieved due to any assessment levied pursuant to 984
such compact and this section or by any failure to adjust an excess 985
assessment in accordance with the provisions of the compact and this 986
section, it may, [within one month from] not later than thirty days after 987
the time provided for the payment of such assessment, appeal 988
therefrom in accordance with the terms of the compact, to the superior 989
court for the judicial district of New Britain, which appeal shall be 990
accompanied by a citation to the Commissioner of Consumer 991
Protection to appear before said court. Such citation shall be signed by 992
the same authority, and such appeal shall be returnable at the same 993
time and served and returned in the same manner as is required in 994
case of a summons in a civil action. Proceedings in such matter shall be 995
conducted in the same manner as provided for in section 38a-52. 996
Sec. 25. Section 12-597 of the general statutes is repealed and the 997
following is substituted in lieu thereof (Effective from passage): 998
Any taxpayer aggrieved because of any order, decision, 999
determination or disallowance of the Commissioner of Revenue 1000
Services made in relation to the tax imposed under section 12-587 may, 1001
[within one month] not later than thirty days after service upon the 1002
taxpayer of notice of such order, decision, determination or 1003
disallowance, take an appeal therefrom to the superior court for the 1004
judicial district of New Britain, which shall be accompanied by a 1005
citation to said commissioner to appear before said court. Such citation 1006
shall be signed by the same authority and such appeal shall be 1007
returnable at the same time and served and returned in the same 1008
manner as is required in case of a summons in a civil action. The 1009
authority issuing the citation shall take from the appellant a bond or 1010
recognizance to the state of Connecticut with surety to prosecute the 1011
appeal to effect and to comply with the orders and decrees of the court 1012
in the premises. Such appeals shall be preferred cases, to be heard, 1013
unless cause appears to the contrary, at the first session, by the court or 1014
by a committee appointed by it. If the appeal has been taken without 1015 Substitute Bill No. 7373
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probable cause, the court may tax double or triple costs, as the case 1016
demands and upon all such appeals which may be denied, costs may 1017
be taxed against the appellant at the discretion of the court, but no 1018
costs shall be taxed against the state. 1019
Sec. 26. Section 12-638i of the general statutes is repealed and the 1020
following is substituted in lieu thereof (Effective from passage): 1021
(a) Any taxpayer, aggrieved by the action of the commissioner or 1022
[his] the commissioner's authorized agent in fixing the amount of any 1023
tax, penalty or interest provided for by this chapter may apply to the 1024
commissioner, in writing, [within] not later than sixty days after notice 1025
of such action is delivered or mailed to [him] the taxpayer, for a 1026
hearing and a correction of the amount of the tax, penalty or interest so 1027
fixed, setting forth the reasons why such hearing should be granted 1028
and the amount of the tax, penalty or interest should be reduced. The 1029
commissioner shall promptly consider each such application and may 1030
grant or deny the hearing requested. If the hearing is denied, the 1031
applicant shall be notified thereof forthwith. If it is granted, the 1032
commissioner shall notify the applicant of the time and place fixed for 1033
such hearing. After such hearing the commissioner may make such 1034
order in the premises as appears to [him] the commissioner just and 1035
lawful and shall furnish a copy of such order to the applicant. The 1036
commissioner may, by notice in writing, at any time within three years 1037
after the date when any return of any taxpayer has been due, order a 1038
hearing on [his] the commissioner's own initiative and require the 1039
taxpayer or any other individual whom [he] the commissioner believes 1040
to be in possession of relevant information concerning the taxpayer to 1041
appear before [him or his] the commissioner or the commissioner's 1042
authorized agent with any specified books of account, papers or other 1043
documents, for examination under oath. 1044
(b) Any taxpayer aggrieved because of any order, decision, 1045
determination or disallowance of the Commissioner of Revenue 1046
Services under the provisions of this chapter may, [within one month] 1047
not later than thirty days after service upon the taxpayer of notice of 1048 Substitute Bill No. 7373
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such order, decision, determination or disallowance, take an appeal 1049
therefrom to the superior court for the judicial district of New Britain, 1050
which shall be accompanied by a citation to the Commissioner of 1051
Revenue Services to appear before said court. Such citation shall be 1052
signed by the same authority and such appeal shall be returnable at 1053
the same time and served and returned in the same manner, as is 1054
required in case of summons in a civil action. The authority issuing the 1055
citation shall take from the appellant a bond or recognizance to the 1056
state of Connecticut with surety to prosecute the appeal to effect and to 1057
comply with the orders and decrees of the court in the premises. Such 1058
appeals shall be preferred cases to be heard, unless cause appears to 1059
the contrary, at the first session by the court or by a committee 1060
appointed by it. Said court may grant such relief as may be equitable 1061
and, if such tax has been paid prior to the granting of such relief, may 1062
order the Treasurer to pay the amount of such relief, with interest at 1063
the rate of two-thirds of one per cent per month or fraction thereof, to 1064
the aggrieved taxpayer. If the appeal has been taken without probable 1065
cause, the court may tax double or triple costs, as the case demands 1066
and, upon all such appeals which may be denied, costs may be taxed 1067
against the appellant at the discretion of the court, but no costs shall be 1068
taxed against the state. 1069
Sec. 27. Section 12-730 of the general statutes is repealed and the 1070
following is substituted in lieu thereof (Effective from passage): 1071
Notwithstanding the provisions of chapter 54 to the contrary, any 1072
taxpayer aggrieved because of any determination or disallowance by 1073
the commissioner under section 12-729, 12-729a or 12-732 may, [within 1074
one month] not later than thirty days after notice of the commissioner's 1075
determination or disallowance is mailed to the taxpayer, take an 1076
appeal therefrom to the superior court for the judicial district of New 1077
Britain, which shall be accompanied by a citation to the commissioner 1078
to appear before said court. Such citation shall be signed by the same 1079
authority, and such appeal shall be returnable at the same time and 1080
served and returned in the same manner, as is required in case of a 1081 Substitute Bill No. 7373
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summons in a civil action. The authority issuing the citation shall take 1082
from the appellant a bond or recognizance to the state of Connecticut, 1083
with surety to prosecute the appeal to effect and to comply with the 1084
orders and decrees of the court in the premises. Such appeals shall be 1085
preferred cases, to be heard unless cause appears to the contrary, at the 1086
first session by the court or by a committee appointed by it. Said court 1087
may grant such relief as may be equitable and, if such tax has been 1088
paid prior to the granting of such relief, may order the Treasurer to 1089
pay the amount of such relief, with interest at the rate of two-thirds of 1090
one per cent per month or fraction thereof, to the aggrieved taxpayer. 1091
If the appeal has been taken without probable cause, the court may 1092
charge double or triple costs, as the case demands, and upon all such 1093
appeals which may be denied, costs may be taxed against the appellant 1094
at the discretion of the court but no costs shall be taxed against the 1095
state. 1096
Sec. 28. Section 12-39h of the general statutes is repealed and the 1097
following is substituted in lieu thereof (Effective from passage): 1098
Notwithstanding any instructions by the payor to the contrary, any 1099
partial payment against any tax outstanding shall be applied by the 1100
Commissioner of Revenue Services first to any penalties unless a 1101
waiver of penalty has been requested and approved in accordance 1102
with the general statutes, and (1) for periods ending on or after July 1, 1103
2018, and prior to December 31, 2019, any amount in excess of such 1104
penalty shall be applied first to such tax and then to the interest on 1105
such tax, and (2) for periods ending on and after December 31, 2019, 1106
any amount in excess of such penalty shall be applied first to interest 1107
on such tax and then to the tax. 1108
Sec. 29. Subsection (b) of section 12-687 of the general statutes is 1109
repealed and the following is substituted in lieu thereof (Effective from 1110
passage): 1111
(b) Where any tax payment is required to be made by electronic 1112
funds transfer, such payment shall be treated as a tax payment not 1113 Substitute Bill No. 7373
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made in a timely manner if the electronic funds transfer for the amount 1114
of the tax payment is not initiated on or before the due date thereof. 1115
[Any] (1) For periods ending prior to December 31, 2019, any tax 1116
payment treated under this subsection as a tax payment not made in a 1117
timely manner shall be subject to interest in accordance with the 1118
applicable provisions of the general statutes, and a penalty that shall 1119
be equal to two per cent of the tax payment required to be made by 1120
electronic funds transfer, if such failure to pay by electronic funds 1121
transfer is for not more than five days, five per cent of the tax payment 1122
required to be made by electronic funds transfer, if such failure to pay 1123
by electronic funds transfer is for more than five days but not more 1124
than fifteen days, and ten per cent of the tax payment required to be 1125
made by electronic funds transfer, if such failure to pay by electronic 1126
funds transfer is for more than fifteen days; and (2) for periods ending 1127
on and after December 31, 2019, any tax payment treated under this 1128
subsection as a tax payment not made in a timely manner shall be 1129
subject to interest and penalty in accordance with the applicable 1130
provisions of the general statutes. 1131
Sec. 30. (NEW) (Effective July 1, 2019, and applicable to refund claims 1132
received on or after July 1, 2019) Notwithstanding any other provision of 1133
law, no refund shall be made to a person of tax collected from a 1134
customer of such person until the person has established to the 1135
satisfaction of the Commissioner of Revenue Services that the amount 1136
of tax for which the refund is being claimed has been or will be repaid 1137
to the customer. 1138
Sec. 31. Subdivision (2) of subsection (e) of section 12-391 of the 1139
general statutes is repealed and the following is substituted in lieu 1140
thereof (Effective from passage): 1141
(2) (A) For a nonresident estate, the state shall have the power to 1142
levy the estate tax upon all real property situated in this state and 1143
tangible personal property having an actual situs in this state. 1144
(B) For real property and tangible personal property owned by a 1145 Substitute Bill No. 7373
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pass-through entity, the entity shall be disregarded for estate tax 1146
purposes and such property shall be treated as personally owned by 1147
the decedent if (i) the entity does not actively carry on a business for 1148
the purpose of profit and gain, (ii) the ownership of the property by 1149
the entity was not for a valid business purpose, or (iii) the property 1150
was acquired by other than a bona fide sale for full and adequate 1151
consideration and the decedent retained a power with respect to or 1152
interest in the property that would bring the real property situated in 1153
this state or the tangible personal property having an actual situs in the 1154
state within the decedent's federal gross estate. For purposes of this 1155
subparagraph, "pass-through entity" means a partnership or an S 1156
corporation, as those terms are defined in section 12-699, as amended 1157
by this act, or a single member limited liability company that is 1158
disregarded for federal income tax purposes. 1159
(C) The state is permitted to calculate the estate tax and levy said tax 1160
to the fullest extent permitted by the Constitution of the United States. 1161
Sec. 32. Sections 12-33 and 12-390a to 12-390e, inclusive, of the 1162
general statutes are repealed. (Effective from passage) 1163
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019, and
applicable to taxable years
commencing on or after
January 1, 2019
12-699
Sec. 2 July 1, 2019, and
applicable to taxable years
commencing on or after
January 1, 2019
12-699a(b)(1)
Sec. 3 from passage 3-20j(a)(8)
Sec. 4 October 1, 2019 12-35(b)(2)
Sec. 5 from passage and
applicable to claims for
credit received on or after
such date
12-408(2)(B) Substitute Bill No. 7373
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Sec. 6 July 1, 2019 12-435
Sec. 7 from passage 12-790a
Sec. 8 from passage 13b-121
Sec. 9 from passage and
applicable to income years
commencing on or after
such date
32-9t(b)
Sec. 10 from passage 12-3a
Sec. 11 from passage 12-30
Sec. 12 from passage 12-208
Sec. 13 from passage 12-237
Sec. 14 from passage 12-263v(b)
Sec. 15 from passage 12-268l
Sec. 16 from passage 12-312
Sec. 17 from passage 12-330m
Sec. 18 from passage 12-422
Sec. 19 from passage 12-448
Sec. 20 from passage 12-463
Sec. 21 from passage 12-489
Sec. 22 from passage 12-554
Sec. 23 from passage 12-586f(d)
Sec. 24 from passage 12-586g(d)
Sec. 25 from passage 12-597
Sec. 26 from passage 12-638i
Sec. 27 from passage 12-730
Sec. 28 from passage 12-39h
Sec. 29 from passage 12-687(b)
Sec. 30 July 1, 2019, and
applicable to refund claims
received on or after July 1,
2019
New section
Sec. 31 from passage 12-391(e)(2)
Sec. 32 from passage Repealer section
FIN Joint Favorable Subst.