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General Assembly Raised Bill No. 7410
January Session, 2019
LCO No. 6787
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING CE RTAIN TAX RECOMMENDATIONS OF T HE
COMMISSION ON FISCAL STABILITY AND ECONOM IC GROWTH
AND ESTABLISHING A STEM SCHOLARSHIP PROG RAM.
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repealed and the following is substituted in lieu thereof (Effective 2
January 1, 2020, and applicable to sales occurring on or after January 1, 3
2020): 4
(1) (A) For the privilege of making any sales, as defined in 5
subdivision (2) of subsection (a) of section 12-407, as amended by this 6
act, at retail, in this state for a consideration, a tax is hereby imposed 7
on all retailers at the rate of six and thirty-five-hundredths per cent of 8
the gross receipts of any retailer from the sale of all tangible personal 9
property sold at retail or from the rendering of any services 10
constituting a sale in accordance with subdivision (2) of subsection (a) 11
of section 12-407, as amended by this act, except, in lieu of said rate, [of 12
six and thirty-five-hundredths per cent,] the rates provided in 13
subparagraphs (B) to (H), inclusive, of this subdivision; 14
(B) (i) At a rate of fifteen per cent with respect to each transfer of 15
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occupancy, from the total amount of rent received by a hotel or 16
lodging house for the first period not exceeding thirty consecutive 17
calendar days; 18
(ii) At a rate of eleven per cent with respect to each transfer of 19
occupancy, from the total amount of rent received by a bed and 20
breakfast establishment for the first period not exceeding thirty 21
consecutive calendar days; 22
(iii) At a rate of six and thirty-five-hundredths per cent with respect 23
to each transfer of occupancy, from the total amount of rent received 24
by a campground for the first period not exceeding thirty consecutive 25
days; 26
(C) With respect to the sale of a motor vehicle to any individual who 27
is a member of the armed forces of the United States and is on full-time 28
active duty in Connecticut and who is considered, under 50 App USC 29
574, a resident of another state, or to any such individual and the 30
spouse thereof, at a rate of four and one-half per cent of the gross 31
receipts of any retailer from such sales, provided such retailer requires 32
and maintains a declaration by such individual, prescribed as to form 33
by the commissioner and bearing notice to the effect that false 34
statements made in such declaration are punishable, or other evidence, 35
satisfactory to the commissioner, concerning the purchaser's state of 36
residence under 50 App USC 574; 37
(D) (i) With respect to the sales of computer and data processing 38
services occurring on or after July 1, 2001, at the rate of one per cent, 39
and (ii) with respect to sales of Internet access services, on and after 40
July 1, 2001, such services shall be exempt from such tax; 41
(E) (i) With respect to the sales of labor that is otherwise taxable 42
under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 43
section 12-407 on existing vessels and repair or maintenance services 44
on vessels occurring on and after July 1, 1999, but prior to January 1, 45
2020, such services shall be exempt from such tax; 46
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(ii) With respect to the sale of a vessel, a motor for a vessel or a 47
trailer used for transporting a vessel, at the rate of two and ninety-48
nine-hundredths per cent, except that the sale of a vessel shall be 49
exempt from such tax if such vessel is docked in this state for sixty or 50
fewer days in a calendar year; 51
(F) With respect to patient care services for which payment is 52
received by the hospital on or after July 1, 1999, and prior to July 1, 53
2001, at the rate of five and three-fourths per cent and on and after July 54
1, 2001, such services shall be exempt from such tax; 55
(G) With respect to the rental or leasing of a passenger motor 56
vehicle for a period of thirty consecutive calendar days or less, at a rate 57
of nine and thirty-five-hundredths per cent; 58
(H) With respect to the sale of (i) a motor vehicle for a sales price 59
exceeding fifty thousand dollars, at a rate of seven and three-fourths 60
per cent on the entire sales price, (ii) jewelry, whether real or imitation, 61
for a sales price exceeding five thousand dollars, at a rate of seven and 62
three-fourths per cent on the entire sales price, and (iii) an article of 63
clothing or footwear intended to be worn on or about the human body, 64
a handbag, luggage, umbrella, wallet or watch for a sales price 65
exceeding one thousand dollars, at a rate of seven and three-fourths 66
per cent on the entire sales price. For purposes of this subparagraph, 67
"motor vehicle" has the meaning provided in section 14-1, but does not 68
include a motor vehicle subject to the provisions of subparagraph (C) 69
of this subdivision, a motor vehicle having a gross vehicle weight 70
rating over twelve thousand five hundred pounds, or a motor vehicle 71
having a gross vehicle weight rating of twelve thousand five hundred 72
pounds or less that is not used for private passenger purposes, but is 73
designed or used to transport merchandise, freight or persons in 74
connection with any business enterprise and issued a commercial 75
registration or more specific type of registration by the Department of 76
Motor Vehicles; 77
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(I) The rate of tax imposed by this chapter shall be applicable to all 78
retail sales upon the effective date of such rate, except that a new rate 79
which represents an increase in the rate applicable to the sale shall not 80
apply to any sales transaction wherein a binding sales contract without 81
an escalator clause has been entered into prior to the effective date of 82
the new rate and delivery is made within ninety days after the effective 83
date of the new rate. For the purposes of payment of the tax imposed 84
under this section, any retailer of services taxable under subdivision 85
(37) of subsection (a) of section 12-407, as amended by this act, who 86
computes taxable income, for purposes of taxation under the Internal 87
Revenue Code of 1986, or any subsequent corresponding internal 88
revenue code of the United States, as from time to time amended, on 89
an accounting basis which recognizes only cash or other valuable 90
consideration actually received as income and who is liable for such 91
tax only due to the rendering of such services may make payments 92
related to such tax for the period during which such income is 93
received, without penalty or interest, without regard to when such 94
service is rendered; 95
(J) (i) For calendar quarters ending on or after September 30, 2019, 96
the commissioner shall deposit into the regional planning incentive 97
account, established pursuant to section 4-66k, six and seven-tenths 98
per cent of the amounts received by the state from the tax imposed 99
under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 100
subdivision and ten and seven-tenths per cent of the amounts received 101
by the state from the tax imposed under subparagraph (G) of this 102
subdivision; 103
(ii) For calendar quarters ending on or after September 30, 2018, the 104
commissioner shall deposit into the Tourism Fund established under 105
section 10-395b ten per cent of the amounts received by the state from 106
the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 107
(B)(ii) of this subdivision; 108
(K) For calendar months commencing on or after July 1, 2021, the 109
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commissioner shall deposit into the municipal revenue sharing 110
account established pursuant to section 4-66l seven and nine-tenths per 111
cent of the amounts received by the state from the tax imposed under 112
subparagraph (A) of this subdivision; and 113
(L) (i) For calendar months commencing on or after July 1, 2017, the 114
commissioner shall deposit into the Special Transportation Fund 115
established under section 13b-68 seven and nine-tenths per cent of the 116
amounts received by the state from the tax imposed under 117
subparagraph (A) of this subdivision; 118
(ii) For calendar months commencing on or after July 1, 2018, but 119
prior to July 1, 2019, the commissioner shall deposit into the Special 120
Transportation Fund established under section 13b-68 eight per cent of 121
the amounts received by the state from the tax imposed under 122
subparagraphs (A) and (H) of this subdivision on the sale of a motor 123
vehicle; 124
(iii) For calendar months commencing on or after July 1, 2019, but 125
prior to July 1, 2020, the commissioner shall deposit into the Special 126
Transportation Fund established under section 13b-68 thirty-three per 127
cent of the amounts received by the state from the tax imposed under 128
subparagraphs (A) and (H) of this subdivision on the sale of a motor 129
vehicle; 130
(iv) For calendar months commencing on or after July 1, 2020, but 131
prior to July 1, 2021, the commissioner shall deposit into the Special 132
Transportation Fund established under section 13b-68 fifty-six per cent 133
of the amounts received by the state from the tax imposed under 134
subparagraphs (A) and (H) of this subdivision on the sale of a motor 135
vehicle; 136
(v) For calendar months commencing on or after July 1, 2021, but 137
prior to July 1, 2022, the commissioner shall deposit into the Special 138
Transportation Fund established under section 13b-68 seventy-five per 139
cent of the amounts received by the state from the tax imposed under 140
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subparagraphs (A) and (H) of this subdivision on the sale of a motor 141
vehicle; and 142
(vi) For calendar months commencing on or after July 1, 2022, the 143
commissioner shall deposit into the Special Transportation Fund 144
established under section 13b-68 one hundred per cent of the amounts 145
received by the state from the tax imposed under subparagraphs (A) 146
and (H) of this subdivision on the sale of a motor vehicle. 147
Sec. 2. Subdivision (1) of section 12-411 of the general statutes is 148
repealed and the following is substituted in lieu thereof (Effective July 149
1, 2019, and applicable to sales occurring on or after July 1, 2019): 150
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 151
consumption or any other use in this state of tangible personal 152
property purchased from any retailer for storage, acceptance, 153
consumption or any other use in this state, the acceptance or receipt of 154
any services constituting a sale in accordance with subdivision (2) of 155
subsection (a) of section 12-407, as amended by this act, purchased 156
from any retailer for consumption or use in this state, or the storage, 157
acceptance, consumption or any other use in this state of tangible 158
personal property which has been manufactured, fabricated, 159
assembled or processed from materials by a person, either within or 160
without this state, for storage, acceptance, consumption or any other 161
use by such person in this state, to be measured by the sales price of 162
materials, at the rate of six and thirty-five-hundredths per cent of the 163
sales price of such property or services, except, in lieu of said rate: [of 164
six and thirty-five-hundredths per cent;] 165
(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or 166
lodging house for the first period not exceeding thirty consecutive 167
calendar days; 168
(ii) At a rate of eleven per cent of the rent paid to a bed and 169
breakfast establishment for the first period not exceeding thirty 170
consecutive calendar days; 171
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(iii) At a rate of six and thirty-five-hundredths per cent with respect 172
to each transfer of occupancy, from the total amount of rent received 173
by a campground for the first period not exceeding thirty consecutive 174
days; 175
(C) With respect to the storage, acceptance, consumption or use in 176
this state of a motor vehicle purchased from any retailer for storage, 177
acceptance, consumption or use in this state by any individual who is a 178
member of the armed forces of the United States and is on full-time 179
active duty in Connecticut and who is considered, under 50 App USC 180
574, a resident of another state, or to any such individual and the 181
spouse of such individual at a rate of four and one-half per cent of the 182
sales price of such vehicle, provided such retailer requires and 183
maintains a declaration by such individual, prescribed as to form by 184
the commissioner and bearing notice to the effect that false statements 185
made in such declaration are punishable, or other evidence, 186
satisfactory to the commissioner, concerning the purchaser's state of 187
residence under 50 App USC 574; 188
(D) (i) With respect to the acceptance or receipt in this state of labor 189
that is otherwise taxable under subparagraph (C) or (G) of subdivision 190
(2) of subsection (a) of section 12-407 on existing vessels and repair or 191
maintenance services on vessels occurring on and after July 1, 1999, but 192
prior to January 1, 2020, such services shall be exempt from such tax; 193
(ii) (I) With respect to the storage, acceptance or other use of a vessel 194
in this state, at the rate of two and ninety-nine-hundredths per cent, 195
except that such storage, acceptance or other use shall be exempt from 196
such tax if such vessel is docked in this state for sixty or fewer days in 197
a calendar year; 198
(II) With respect to the storage, acceptance or other use of a motor 199
for a vessel or a trailer used for transporting a vessel in this state, at the 200
rate of two and ninety-nine-hundredths per cent; 201
(E) (i) With respect to the acceptance or receipt in this state of 202
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computer and data processing services purchased from any retailer for 203
consumption or use in this state occurring on or after July 1, 2001, at 204
the rate of one per cent of such services, and (ii) with respect to the 205
acceptance or receipt in this state of Internet access services, on and 206
after July 1, 2001, such services shall be exempt from such tax; 207
(F) With respect to the acceptance or receipt in this state of patient 208
care services purchased from any retailer for consumption or use in 209
this state for which payment is received by the hospital on or after July 210
1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 211
per cent and on and after July 1, 2001, such services shall be exempt 212
from such tax; 213
(G) With respect to the rental or leasing of a passenger motor 214
vehicle for a period of thirty consecutive calendar days or less, at a rate 215
of nine and thirty-five-hundredths per cent; 216
(H) With respect to the acceptance or receipt in this state of (i) a 217
motor vehicle for a sales price exceeding fifty thousand dollars, at a 218
rate of seven and three-fourths per cent on the entire sales price, (ii) 219
jewelry, whether real or imitation, for a sales price exceeding five 220
thousand dollars, at a rate of seven and three-fourths per cent on the 221
entire sales price, and (iii) an article of clothing or footwear intended to 222
be worn on or about the human body, a handbag, luggage, umbrella, 223
wallet or watch for a sales price exceeding one thousand dollars, at a 224
rate of seven and three-fourths per cent on the entire sales price. For 225
purposes of this subparagraph, "motor vehicle" has the meaning 226
provided in section 14-1, but does not include a motor vehicle subject 227
to the provisions of subparagraph (C) of this subdivision, a motor 228
vehicle having a gross vehicle weight rating over twelve thousand five 229
hundred pounds, or a motor vehicle having a gross vehicle weight 230
rating of twelve thousand five hundred pounds or less that is not used 231
for private passenger purposes, but is designed or used to transport 232
merchandise, freight or persons in connection with any business 233
enterprise and issued a commercial registration or more specific type 234
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of registration by the Department of Motor Vehicles; 235
(I) (i) For calendar quarters ending on or after September 30, 2019, 236
the commissioner shall deposit into the regional planning incentive 237
account, established pursuant to section 4-66k, six and seven-tenths 238
per cent of the amounts received by the state from the tax imposed 239
under [subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this 240
subdivision and ten and seven-tenths per cent of the amounts received 241
by the state from the tax imposed under subparagraph (G) of this 242
subdivision; 243
(ii) For calendar quarters ending on or after September 30, 2018, the 244
commissioner shall deposit into the Tourism Fund established under 245
section 10-395b ten per cent of the amounts received by the state from 246
the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 247
(B)(ii) of this subdivision; 248
(J) For calendar months commencing on or after July 1, 2021, the 249
commissioner shall deposit into said municipal revenue sharing 250
account seven and nine-tenths per cent of the amounts received by the 251
state from the tax imposed under subparagraph (A) of this 252
subdivision; and 253
(K) (i) For calendar months commencing on or after July 1, 2017, the 254
commissioner shall deposit into said Special Transportation Fund 255
seven and nine-tenths per cent of the amounts received by the state 256
from the tax imposed under subparagraph (A) of this subdivision; 257
(ii) For calendar months commencing on or after July 1, 2018, but 258
prior to July 1, 2019, the commissioner shall deposit into the Special 259
Transportation Fund established under section 13b-68 eight per cent of 260
the amounts received by the state from the tax imposed under 261
subparagraphs (A) and (H) of this subdivision on the acceptance or 262
receipt in this state of a motor vehicle; 263
(iii) For calendar months commencing on or after July 1, 2019, but 264
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prior to July 1, 2020, the commissioner shall deposit into the Special 265
Transportation Fund established under section 13b-68 thirty-three per 266
cent of the amounts received by the state from the tax imposed under 267
subparagraphs (A) and (H) of this subdivision on the acceptance or 268
receipt in this state of a motor vehicle; 269
(iv) For calendar months commencing on or after July 1, 2020, but 270
prior to July 1, 2021, the commissioner shall deposit into the Special 271
Transportation Fund established under section 13b-68 fifty-six per cent 272
of the amounts received by the state from the tax imposed under 273
subparagraphs (A) and (H) of this subdivision on the acceptance or 274
receipt in this state of a motor vehicle; 275
(v) For calendar months commencing on or after July 1, 2021, but 276
prior to July 1, 2022, the commissioner shall deposit into the Special 277
Transportation Fund established under section 13b-68 seventy-five per 278
cent of the amounts received by the state from the tax imposed under 279
subparagraphs (A) and (H) of this subdivision on the acceptance or 280
receipt in this state of a motor vehicle; and 281
(vi) For calendar months commencing on or after July 1, 2022, the 282
commissioner shall deposit into the Special Transportation Fund 283
established under section 13b-68 one hundred per cent of the amounts 284
received by the state from the tax imposed under subparagraphs (A) 285
and (H) of this subdivision on the acceptance or receipt in this state of 286
a motor vehicle. 287
Sec. 3. Subdivision (13) of subsection (a) of section 12-407 of the 288
general statutes is repealed and the following is substituted in lieu 289
thereof (Effective January 1, 2020, and applicable to sales occurring on or 290
after January 1, 2020): 291
(13) "Tangible personal property" means personal property [which] 292
that may be seen, weighed, measured, felt or touched or [which] that is 293
in any other manner perceptible to the senses. [including] "Tangible 294
personal property" includes (A) digital goods and canned or 295
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prewritten computer software, [. Tangible personal property includes] 296
including prewritten software that is electronically accessed or 297
transferred and any additional content related to such software, and 298
(B) the distribution, generation or transmission of electricity. 299
Sec. 4. Subsection (a) of section 12-407 of the general statutes is 300
amended by adding subdivision (43) as follows (Effective January 1, 301
2020, and applicable to sales occurring on or after January 1, 2020): 302
(NEW) (43) "Digital goods" means audio works, visual works, 303
audio-visual works, reading materials or ring tones, that are 304
electronically accessed or transferred. 305
Sec. 5. Subdivision (37) of subsection (a) of section 12-407 of the 306
general statutes is repealed and the following is substituted in lieu 307
thereof (Effective January 1, 2020, and applicable to sales occurring on or 308
after January 1, 2020): 309
(37) "Services" for purposes of subdivision (2) of this subsection, 310
means: 311
(A) Computer and data processing services, including, but not 312
limited to, time, programming, code writing, modification of existing 313
programs, feasibility studies and installation and implementation of 314
software programs and systems even where such services are rendered 315
in connection with the development, creation or production of canned 316
or custom software or the license of custom software, but excluding 317
digital goods; 318
(B) Credit information and reporting services; 319
(C) Services by employment agencies and agencies providing 320
personnel services; 321
(D) Private investigation, protection, patrol work, watchman and 322
armored car services, exclusive of (i) services of off-duty police officers 323
and off-duty firefighters, and (ii) coin and currency services provided 324
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to a financial services company by or through another financial 325
services company. For purposes of this subparagraph, "financial 326
services company" has the same meaning as provided under 327
subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 328
of section 12-218b; 329
(E) Painting and lettering services; 330
(F) Photographic studio services; 331
(G) Telephone answering services; 332
(H) Stenographic services; 333
(I) Services to industrial, commercial, [or] income-producing or 334
residential real property, including, but not limited to, such services as 335
management, electrical, plumbing, painting and carpentry, provided 336
income-producing property shall not include [property used 337
exclusively for residential purposes in which the owner resides and 338
which contains no more than three dwelling units, or] a housing 339
facility for low and moderate income families and persons owned or 340
operated by a nonprofit housing organization, as defined in 341
subdivision (29) of section 12-412; 342
(J) Business analysis, management, management consulting and 343
public relations services, excluding (i) any environmental consulting 344
services, (ii) any training services provided by an institution of higher 345
education licensed or accredited by the Board of Regents for Higher 346
Education or Office of Higher Education pursuant to sections 10a-35a 347
and 10a-34, respectively, and (iii) on and after January 1, 1994, any 348
business analysis, management, management consulting and public 349
relations services when such services are rendered in connection with 350
an aircraft leased or owned by a certificated air carrier or in connection 351
with an aircraft which has a maximum certificated take-off weight of 352
six thousand pounds or more; 353
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(K) Services providing "piped-in" music to business or professional 354
establishments; 355
(L) Flight instruction and chartering services by a certificated air 356
carrier on an aircraft, the use of which for such purposes, but for the 357
provisions of subdivision (4) of section 12-410 and subdivision (12) of 358
section 12-411, would be deemed a retail sale and a taxable storage or 359
use, respectively, of such aircraft by such carrier; 360
(M) Motor vehicle repair services, including any type of repair, 361
painting or replacement related to the body or any of the operating 362
parts of a motor vehicle; 363
(N) Motor vehicle parking, [including the provision of space, other 364
than metered space, in a lot having thirty or more spaces,] excluding 365
[(i)] space in a parking lot owned or leased under the terms of a lease 366
of not less than ten years' duration and operated by an employer for 367
the exclusive use of its employees; [, (ii) space in municipally operated 368
railroad parking facilities in municipalities located within an area of 369
the state designated as a severe nonattainment area for ozone under 370
the federal Clean Air Act or space in a railroad parking facility in a 371
municipality located within an area of the state designated as a severe 372
nonattainment area for ozone under the federal Clean Air Act owned 373
or operated by the state on or after April 1, 2000, (iii) space in a 374
seasonal parking lot provided by an entity subject to the exemption set 375
forth in subdivision (1) of section 12-412, and (iv) space in a 376
municipally owned parking lot;] 377
(O) Radio or television repair services; 378
(P) Furniture reupholstering and repair services; 379
(Q) Repair services to any electrical or electronic device, including, 380
but not limited to, equipment used for purposes of refrigeration or 381
air-conditioning; 382
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(R) Lobbying or consulting services for purposes of representing the 383
interests of a client in relation to the functions of any governmental 384
entity or instrumentality; 385
(S) Services of the agent of any person in relation to the sale of any 386
item of tangible personal property for such person, exclusive of the 387
services of a consignee selling works of art, as defined in subsection (b) 388
of section 12-376c, or articles of clothing or footwear intended to be 389
worn on or about the human body other than (i) any special clothing 390
or footwear primarily designed for athletic activity or protective use 391
and which is not normally worn except when used for the athletic 392
activity or protective use for which it was designed, and (ii) jewelry, 393
handbags, luggage, umbrellas, wallets, watches and similar items 394
carried on or about the human body but not worn on the body, under 395
consignment, exclusive of services provided by an auctioneer; 396
(T) Locksmith services; 397
(U) Advertising or public relations services, including layout, art 398
direction, graphic design, mechanical preparation or production 399
supervision, not related to the development of media advertising or 400
cooperative direct mail advertising; 401
(V) Landscaping and horticulture services; 402
(W) Window cleaning services; 403
(X) [Maintenance services] Services to buildings and dwellings, 404
including, but not limited to, maintenance, repair, renovation, exterior 405
cleaning, chimney cleaning, driveway cleaning, duct cleaning, drain or 406
gutter cleaning, refuse collection, snow plowing and all other such 407
services not specifically enumerated herein; 408
(Y) Janitorial services; 409
(Z) Exterminating services; 410
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(AA) Swimming pool cleaning and maintenance services; 411
(BB) [Miscellaneous personal services included in industry group 412
729 in the Standard Industrial Classification Manual, United States 413
Office of Management and Budget, 1987 edition, or U.S. industry 414
532220, 812191, 812199 or 812990 in] Personal and laundry services 415
described in industry group 812 of the North American Industrial 416
Classification System United States Manual, United States Office of 417
Management and Budget (NAICS), [1997] 2017 edition, exclusive of [(i) 418
services rendered by massage therapists licensed pursuant to chapter 419
384a, and (ii) services rendered by an electrologist licensed pursuant to 420
chapter 388] death care services described in industry group 8122 of 421
the NAICS, 2017 edition and diaper cleaning services; 422
(CC) Any repair or maintenance service to any item of tangible 423
personal property including any contract of warranty or service related 424
to any such item; 425
(DD) Business analysis, management or managing consulting 426
services rendered by a general partner, or an affiliate thereof, to a 427
limited partnership, provided (i) the general partner, or an affiliate 428
thereof, is compensated for the rendition of such services other than 429
through a distributive share of partnership profits or an annual 430
percentage of partnership capital or assets established in the limited 431
partnership's offering statement, and (ii) the general partner, or an 432
affiliate thereof, offers such services to others, including any other 433
partnership. As used in this subparagraph "an affiliate of a general 434
partner" means an entity which is directly or indirectly owned fifty per 435
cent or more in common with a general partner; 436
(EE) Notwithstanding the provisions of section 12-412, as amended 437
by this act, except subdivision (87) of said section, [12-412,] patient care 438
services, as defined in subdivision (29) of this subsection by a hospital, 439
except that "sale" and "selling" does not include such patient care 440
services for which payment is received by the hospital during the 441
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period commencing July 1, 2001, and ending June 30, 2003; 442
(FF) Health and athletic club services, exclusive of (i) any such 443
services provided without any additional charge which are included in 444
any dues or initiation fees paid to any such club, which dues or fees 445
are subject to tax under section 12-543, and (ii) any such services 446
provided by a municipality or an organization that is described in 447
Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 448
corresponding internal revenue code of the United States, as from time 449
to time amended; 450
(GG) Motor vehicle storage services, including storage of motor 451
homes, campers and camp trailers, other than the furnishing of space 452
as described in subparagraph (P) of subdivision (2) of this subsection; 453
(HH) Packing and crating services, other than those provided in 454
connection with the sale of tangible personal property by the retailer of 455
such property; 456
(II) Motor vehicle towing and road services, other than motor 457
vehicle repair services; 458
(JJ) Intrastate transportation services provided by livery services, 459
including limousines, community cars or vans, with a driver. Intrastate 460
transportation services shall not include transportation by taxicab, 461
motor bus, ambulance or ambulette, scheduled public transportation, 462
nonemergency medical transportation provided under the Medicaid 463
program, paratransit services provided by agreement or arrangement 464
with the state or any political subdivision of the state, dial-a-ride 465
services or services provided in connection with funerals; 466
(KK) [Pet] Animal grooming and [pet] animal boarding services, 467
[except if such services are provided as an integral part of professional 468
veterinary services,] and pet obedience services; 469
(LL) Services in connection with a cosmetic medical procedure. For 470
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purposes of this subparagraph, "cosmetic medical procedure" means 471
any medical procedure performed on an individual that is directed at 472
improving the individual's appearance and that does not meaningfully 473
promote the proper function of the body or prevent or treat illness or 474
disease. "Cosmetic medical procedure" includes, but is not limited to, 475
cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 476
tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 477
skin resurfacing, laser treatment of leg veins and sclerotherapy. 478
"Cosmetic medical procedure" does not include reconstructive surgery. 479
"Reconstructive surgery" includes any surgery performed on abnormal 480
structures caused by or related to congenital defects, developmental 481
abnormalities, trauma, infection, tumors or disease, including 482
procedures to improve function or give a more normal appearance; 483
(MM) Manicure services, pedicure services and all other nail 484
services, regardless of where performed, including airbrushing, fills, 485
full sets, nail sculpting, paraffin treatments and polishes; 486
(NN) Spa services, regardless of where performed, including body 487
waxing and wraps, peels, scrubs and facials; [and] 488
(OO) Car wash services, including coin-operated car washes; [.] 489
(PP) Travel arrangement and reservation services described in 490
industry group 5615 of the NAICS, 2017 edition, as amended from 491
time to time; 492
(QQ) Interior design services described in industry group 54141 of 493
the NAICS, 2017 edition, as amended from time to time; 494
(RR) Veterinary services described in industry group 54194 of the 495
NAICS, 2017 edition, as amended from time to time; 496
(SS) Sports and recreation instruction services described in industry 497
group 61162 of the NAICS, 2017 edition, as amended from time to 498
time; and 499
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(TT) Waste management and remediation services provided by 500
establishments described in industry group 5621 of the NAICS, 2017 501
edition, as amended from time to time. 502
Sec. 6. Section 12-412 of the general statutes is amended by adding 503
subdivision (124) as follows (Effective January 1, 2020, and applicable to 504
sales occurring on or after January 1, 2020): 505
(NEW) (124) (A) Sales of services set forth in subparagraphs (PP) to 506
(RR), inclusive, and subparagraph (TT) of subdivision (37) of 507
subsection (a) of section 12-407, as amended by this act, and sales of 508
digital goods, that are purchased by a business for use by such 509
business. 510
(B) Each purchaser of services or digital goods exempt pursuant to 511
the provisions of this subdivision shall present, in order to qualify for 512
such exemption, a certificate to the retailer, in such form as the 513
commissioner may prescribe, certifying that the purchaser is a business 514
and is purchasing such services for its business. The purchaser of the 515
services or digital goods shall be liable for the tax otherwise imposed if 516
the certificate is improperly provided to the retailer, and any person 517
who wilfully delivers a certificate that is known to be fraudulent or 518
false in any material matter to a retailer shall, in addition to any other 519
penalty provided by law, be guilty of a class D felony. 520
Sec. 7. Subdivision (120) of section 12-412 of the general statutes is 521
repealed and the following is substituted in lieu thereof (Effective 522
January 1, 2020, and applicable to sales occurring on or after January 1, 523
2020): 524
(120) [On and after April 1, 2015, sales of the following 525
nonprescription drugs or medicines available for purchase for use in or 526
on the body: Vitamin or mineral concentrates; dietary supplements; 527
natural or herbal drugs or medicines; products intended to be taken for 528
coughs, cold, asthma or allergies, or antihistamines; laxatives; 529
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral 530
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and antifungal medicines; antiseptics; astringents; anesthetics; 531
steroidal medicines; anthelmintics; emetics and antiemetics; antacids; 532
and any medication prepared to be used in the eyes, ears or nose. 533
Nonprescription drugs or medicines shall not include cosmetics, 534
dentrifrices, mouthwash, shaving and hair care products, soaps or 535
deodorants] Sales of marijuana sold pursuant to chapter 420f by a 536
licensed dispensary for palliative use. 537
Sec. 8. Subparagraph (H) of subdivision (2) of subsection (a) of 538
section 12-407 of the general statutes is repealed and the following is 539
substituted in lieu thereof (Effective January 1, 2020, and applicable to 540
sales occurring on or after January 1, 2020): 541
(H) A transfer for a consideration of the occupancy of any room or 542
rooms in a hotel, lodging house or bed and breakfast establishment or 543
of any space in a campground, for a period of thirty consecutive 544
calendar days or less; 545
Sec. 9. Subparagraph (A) of subdivision (3) of subsection (a) of 546
section 12-407 of the general statutes is repealed and the following is 547
substituted in lieu thereof (Effective January 1, 2020, and applicable to 548
sales occurring on or after January 1, 2020): 549
(3) (A) "Retail sale" or "sale at retail" means and includes a sale for 550
any purpose other than resale in the regular course of business of (i) 551
tangible personal property, [or] (ii) a transfer for a consideration of the 552
occupancy of (I) any room or rooms in a hotel, lodging house or bed 553
and breakfast establishment for a period of thirty consecutive calendar 554
days or less, or (II) any space in a campground for a period of thirty 555
consecutive calendar days or less, or (iii) the rendering of any service 556
described in subdivision (2) of this subsection. The delivery in this 557
state of tangible personal property by an owner or former owner 558
thereof or by a factor, if the delivery is to a consumer pursuant to a 559
retail sale made by a retailer not engaged in business in this state, is a 560
retail sale in this state by the person making the delivery. Such person 561
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shall include the retail selling price of the property in such person's 562
gross receipts. 563
Sec. 10. Subdivision (7) of subsection (a) of section 12-407 of the 564
general statutes is repealed and the following is substituted in lieu 565
thereof (Effective January 1, 2020, and applicable to sales occurring on or 566
after January 1, 2020): 567
(7) "Purchase" and "purchasing" means and includes: (A) Any 568
transfer, exchange or barter, conditional or otherwise, in any manner 569
or by any means whatsoever, of (i) tangible personal property for a 570
consideration, or (ii) of the occupancy of any room or rooms in a hotel, 571
lodging house or bed and breakfast establishment for a period of thirty 572
consecutive calendar days or less for a consideration or of any space in 573
a campground for a period of thirty consecutive calendar days or less 574
for a consideration; (B) a transaction whereby the possession of 575
property is transferred but the seller retains the title as security for the 576
payment of the price; (C) a transfer for a consideration of tangible 577
personal property which has been produced, fabricated or printed to 578
the special order of the customer, or of any publication; (D) when 579
performed outside this state or when the customer gives a resale 580
certificate pursuant to section 12-410, the producing, fabricating, 581
processing, printing or imprinting of tangible personal property for a 582
consideration for consumers who furnish either directly or indirectly 583
the materials used in the producing, fabricating, processing, printing 584
or imprinting; (E) the acceptance or receipt of any service described in 585
any of the subparagraphs of subdivision (2) of this subsection; (F) any 586
leasing or rental of tangible personal property. Wherever in this 587
chapter reference is made to the purchase or purchasing of tangible 588
personal property, it shall be construed to include purchases as 589
described in this subsection. 590
Sec. 11. Subparagraph (A) of subdivision (8) of subsection (a) of 591
section 12-407 of the general statutes is repealed and the following is 592
substituted in lieu thereof (Effective January 1, 2020, and applicable to 593
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sales occurring on or after January 1, 2020): 594
(8) (A) "Sales price" means the total amount for which tangible 595
personal property is sold by a retailer, the total amount of rent for 596
which occupancy of a room or of a space in a campground is 597
transferred by an operator, the total amount for which any service 598
described in subdivision (2) of this subsection is rendered by a retailer 599
or the total amount of payment or periodic payments for which 600
tangible personal property is leased by a retailer, valued in money, 601
whether paid in money or otherwise, which amount is due and owing 602
to the retailer or operator and, subject to the provisions of subdivision 603
(1) of section 12-408, as amended by this act, whether or not actually 604
received by the retailer or operator, without any deduction on account 605
of any of the following: (i) The cost of the property sold; (ii) the cost of 606
materials used, labor or service cost, interest charged, losses or any 607
other expenses; (iii) for any sale occurring on or after July 1, 1993, any 608
charges by the retailer to the purchaser for shipping or delivery, 609
notwithstanding whether such charges are separately stated in a 610
written contract, or on a bill or invoice rendered to such purchaser or 611
whether such shipping or delivery is provided by the retailer or a third 612
party. The provisions of subparagraph (A) (iii) of this subdivision shall 613
not apply to any item exempt from taxation pursuant to section 12-412, 614
as amended by this act. Such total amount includes any services that 615
are a part of the sale; except as otherwise provided in subparagraph 616
(B)(v) or (B)(vi) of this subdivision, any amount for which credit is 617
given to the purchaser by the retailer, and all compensation and all 618
employment-related expenses, whether or not separately stated, paid 619
to or on behalf of employees of a retailer of any service described in 620
subdivision (2) of this subsection. 621
Sec. 12. Subparagraph (A) of subdivision (9) of subsection (a) of 622
section 12-407 of the general statutes is repealed and the following is 623
substituted in lieu thereof (Effective January 1, 2020, and applicable to 624
sales occurring on or after January 1, 2020): 625
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(9) (A) "Gross receipts" means the total amount of the sales price 626
from retail sales of tangible personal property by a retailer, the total 627
amount of the rent from transfers of occupancy of rooms or of space in 628
a campground by an operator, the total amount of the sales price from 629
retail sales of any service described in subdivision (2) of this subsection 630
by a retailer of services, or the total amount of payment or periodic 631
payments from leases or rentals of tangible personal property by a 632
retailer, valued in money, whether received in money or otherwise, 633
which amount is due and owing to the retailer or operator and, subject 634
to the provisions of subdivision (1) of section 12-408, as amended by 635
this act, whether or not actually received by the retailer or operator, 636
without any deduction on account of any of the following: (i) The cost 637
of the property sold; however, in accordance with such regulations as 638
the Commissioner of Revenue Services may prescribe, a deduction 639
may be taken if the retailer has purchased property for some other 640
purpose than resale, has reimbursed the retailer's vendor for tax which 641
the vendor is required to pay to the state or has paid the use tax with 642
respect to the property, and has resold the property prior to making 643
any use of the property other than retention, demonstration or display 644
while holding it for sale in the regular course of business. If such a 645
deduction is taken by the retailer, no refund or credit will be allowed 646
to the retailer's vendor with respect to the sale of the property; (ii) the 647
cost of the materials used, labor or service cost, interest paid, losses or 648
any other expense; (iii) for any sale occurring on or after July 1, 1993, 649
except for any item exempt from taxation pursuant to section 12-412, 650
as amended by this act, any charges by the retailer to the purchaser for 651
shipping or delivery, notwithstanding whether such charges are 652
separately stated in the written contract, or on a bill or invoice 653
rendered to such purchaser or whether such shipping or delivery is 654
provided by the retailer or a third party. The total amount of the sales 655
price includes any services that are a part of the sale; all receipts, cash, 656
credits and property of any kind; except as otherwise provided in 657
subparagraph (B)(v) or (B)(vi) of this subdivision, any amount for 658
which credit is allowed by the retailer to the purchaser; and all 659
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compensation and all employment-related expenses, whether or not 660
separately stated, paid to or on behalf of employees of a retailer of any 661
service described in subdivision (2) of this subsection. 662
Sec. 13. Subparagraph (A) of subdivision (15) of subsection (a) of 663
section 12-407 of the general statutes is repealed and the following is 664
substituted in lieu thereof (Effective January 1, 2020, and applicable to 665
sales occurring on or after January 1, 2020): 666
(15) (A) "Engaged in business in the state" means and, to the extent 667
not prohibited by the Constitution of the United States, includes, but 668
shall not be limited to, the following acts or methods of transacting 669
business: (i) Selling in this state, or any activity in this state in 670
connection with selling in this state, tangible personal property for use, 671
storage or consumption within the state; (ii) engaging in the transfer 672
for a consideration of the occupancy of (I) any room or rooms in a 673
hotel, lodging house or bed and breakfast establishment for a period of 674
thirty consecutive calendar days or less, or (II) any space in a 675
campground for a period of thirty consecutive calendar days or less; 676
(iii) rendering in this state any service described in any of the 677
subparagraphs of subdivision (2) of this subsection; (iv) maintaining, 678
occupying or using, permanently or temporarily, directly or indirectly, 679
through a subsidiary or agent, by whatever name called, any office, 680
place of distribution, sales or sample room or place, warehouse or 681
storage point or other place of business or having any representative, 682
agent, salesman, canvasser or solicitor operating in this state for the 683
purpose of selling, delivering or taking orders; (v) notwithstanding the 684
fact that retail sales are made from outside this state to a destination 685
within this state, engaging in regular or systematic solicitation of sales 686
of tangible personal property in this state by the display of 687
advertisements on billboards or other outdoor advertising in this state, 688
by the distribution of catalogs, periodicals, advertising flyers or other 689
advertising by means of print, radio or television media, or by mail, 690
telegraphy, telephone, computer data base, cable, optic, microwave, 691
Internet or other communication system, for the purpose of effecting 692
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retail sales of tangible personal property, provided at least two 693
hundred fifty thousand dollars of gross receipts are received and two 694
hundred or more retail sales from outside this state to destinations 695
within this state are made during the twelve-month period ended on 696
the September thirtieth immediately preceding the monthly or 697
quarterly period with respect to which liability for tax under this 698
chapter is determined; (vi) being owned or controlled, either directly 699
or indirectly, by a retailer engaged in business in this state which is the 700
same as or similar to the line of business in which the retailer so owned 701
or controlled is engaged; (vii) being owned or controlled, either 702
directly or indirectly, by the same interests that own or control, either 703
directly or indirectly, a retailer engaged in business in this state which 704
is the same as or similar to the line of business in which the retailer so 705
owned or controlled is engaged; (viii) being the assignee of a person 706
engaged in the business of leasing tangible personal property to others, 707
where leased property of such person is situated within this state and 708
such assignee has a security interest, as defined in subdivision (35) of 709
subsection (b) of section 42a-1-201, in such property; (ix) 710
notwithstanding the fact that retail sales of items of tangible personal 711
property are made from outside this state to a destination within this 712
state, repairing or servicing such items, under a warranty, in this state, 713
either directly or indirectly through an agent, independent contractor 714
or subsidiary; and (x) selling tangible personal property or services 715
through an agreement with a person located in this state, under which 716
such person located in this state, for a commission or other 717
consideration that is based upon the sale of tangible personal property 718
or services by the retailer, directly or indirectly refers potential 719
customers, whether by a link on an Internet web site or otherwise, to 720
the retailer, provided the cumulative gross receipts from sales by the 721
retailer to customers in the state who are referred to the retailer by all 722
such persons with this type of agreement with the retailer is in excess 723
of two hundred fifty thousand dollars during the four preceding four 724
quarterly periods ending on the last day of March, June, September 725
and December. 726
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Sec. 14. Subdivisions (18) and (19) of subsection (a) of section 12-407 727
of the general statutes are repealed and the following is substituted in 728
lieu thereof (Effective January 1, 2020, and applicable to sales occurring on 729
or after January 1, 2020): 730
(18) "Operator" means any person operating a hotel, lodging house, 731
[or] bed and breakfast establishment or campground in the state, 732
including, but not limited to, the owner or proprietor of such premises, 733
lessee, sublessee, mortgagee in possession, licensee or any other person 734
otherwise operating such hotel, lodging house, [or] bed and breakfast 735
establishment or campground. 736
(19) "Occupancy" means the use or possession, or the right to the 737
use or possession, of any room or rooms in a hotel, lodging house or 738
bed and breakfast establishment or of any space in a campground, or 739
the right to the use or possession of the furnishings or the services and 740
accommodations accompanying the use and possession of such room 741
or rooms or such space, for the first period of not more than thirty 742
consecutive calendar days. 743
Sec. 15. Section 12-640 of the general statutes is repealed and the 744
following is substituted in lieu thereof (Effective from passage and 745
applicable to gifts made on or after January 1, 2019): 746
For [the calendar year 1991 and each year thereafter] calendar years 747
commencing January 1, 1991, but prior to January 1, 2019, a tax 748
computed as provided in section 12-642, as amended by this act, is 749
hereby imposed on the transfer of property by gift during such taxable 750
year by any individual resident or nonresident provided, for the 751
calendar year commencing January 1, 1991, such tax shall be imposed 752
only on those gifts [which are] that were transferred on or after 753
September 1, 1991. 754
Sec. 16. Section 12-642 of the general statutes is repealed and the 755
following is substituted in lieu thereof (Effective from passage): 756
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LCO No. 6787 26 of 88
(a) (1) With respect to calendar years commencing prior to January 757
1, 2001, the tax imposed by section 12-640, as amended by this act, for 758
the calendar year shall be at a rate of the taxable gifts made by the 759
donor during the calendar year set forth in the following schedule: 760
T1 Amount of Taxable Gifts Rate of Tax
T2 Not over $25,000 1%
T3 Over $25,000 $250, plus 2% of the excess
T4 but not over $50,000 over $25,000
T5 Over $50,000 $750, plus 3% of the excess
T6 but not over $75,000 over $50,000
T7 Over $75,000 $1,500, plus 4% of the excess
T8 but not over $100,000 over $75,000
T9 Over $100,000 $2,500, plus 5% of the excess
T10 but not over $200,000 over $100,000
T11 Over $200,000 $7,500, plus 6% of the excess
T12 over $200,000
(2) With respect to the calendar years commencing January 1, 2001, 761
January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed 762
by section 12-640, as amended by this act, for each such calendar year 763
shall be at a rate of the taxable gifts made by the donor during the 764
calendar year set forth in the following schedule: 765
T13 Amount of Taxable Gifts Rate of Tax
T14 Over $25,000 $250, plus 2% of the excess
T15 but not over $50,000 over $25,000
T16 Over $50,000 $750, plus 3% of the excess
T17 but not over $75,000 over $50,000
T18 Over $75,000 $1,500, plus 4% of the excess
T19 but not over $100,000 over $75,000
T20 Over $100,000 $2,500, plus 5% of the excess
T21 but not over $675,000 over $100,000
T22 Over $675,000 $31,250, plus 6% of the excess
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T23 over $675,000
(3) With respect to Connecticut taxable gifts, as defined in section 766
12-643, as amended by this act, made by a donor during a calendar 767
year commencing on or after January 1, 2005, but prior to January 1, 768
2010, including the aggregate amount of all Connecticut taxable gifts 769
made by the donor during all calendar years commencing on or after 770
January 1, 2005, but prior to January 1, 2010, the tax imposed by 771
section 12-640, as amended by this act, for the calendar year shall be at 772
the rate set forth in the following schedule, with a credit allowed 773
against such tax for any tax previously paid to this state pursuant to 774
this subdivision: 775
T24 Amount of Taxable Gifts Rate of Tax
T25 Not over $2,000,000 None
T26 Over $2,000,000
T27 but not over $2,100,000 5.085% of the excess over $0
T28 Over $2,100,000 $106,800 plus 8% of the excess
T29 but not over $2,600,000 over $2,100,000
T30 Over $2,600,000 $146,800 plus 8.8% of the excess
T31 but not over $3,100,000 over $2,600,000
T32 Over $3,100,000 $190,800 plus 9.6% of the excess
T33 but not over $3,600,000 over $3,100,000
T34 Over $3,600,000 $238,800 plus 10.4% of the excess
T35 but not over $4,100,000 over $3,600,000
T36 Over $4,100,000 $290,800 plus 11.2% of the excess
T37 but not over $5,100,000 over $4,100,000
T38 Over $5,100,000 $402,800 plus 12% of the excess
T39 but not over $6,100,000 over $5,100,000
T40 Over $6,100,000 $522,800 plus 12.8% of the excess
T41 but not over $7,100,000 over $6,100,000
T42 Over $7,100,000 $650,800 plus 13.6% of the excess
T43 but not over $8,100,000 over $7,100,000
T44 Over $8,100,000 $786,800 plus 14.4% of the excess
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T45 but not over $9,100,000 over $8,100,000
T46 Over $9,100,000 $930,800 plus 15.2% of the excess
T47 but not over $10,100,000 over $9,100,000
T48 Over $10,100,000 $1,082,800 plus 16% of the excess
T49 over $10,100,000
(4) With respect to Connecticut taxable gifts, as defined in section 776
12-643, as amended by this act, made by a donor during a calendar 777
year commencing on or after January 1, 2010, but prior to January 1, 778
2011, including the aggregate amount of all Connecticut taxable gifts 779
made by the donor during all calendar years commencing on or after 780
January 1, 2005, the tax imposed by section 12-640, as amended by this 781
act, for the calendar year shall be at the rate set forth in the following 782
schedule, with a credit allowed against such tax for any tax previously 783
paid to this state pursuant to this subdivision or pursuant to 784
subdivision (3) of this subsection, provided such credit shall not 785
exceed the amount of tax imposed by this section: 786
T50 Amount of Taxable Gifts Rate of Tax
T51 Not over $3,500,000 None
T52 Over $3,500,000 7.2% of the excess
T53 but not over $3,600,000 over $3,500,000
T54 Over $3,600,000 $7,200 plus 7.8% of the excess
T55 but not over $4,100,000 over $3,600,000
T56 Over $4,100,000 $46,200 plus 8.4% of the excess
T57 but not over $5,100,000 over $4,100,000
T58 Over $5,100,000 $130,200 plus 9.0% of the excess
T59 but not over $6,100,000 over $5,100,000
T60 Over $6,100,000 $220,200 plus 9.6% of the excess
T61 but not over $7,100,000 over $6,100,000
T62 Over $7,100,000 $316,200 plus 10.2% of the excess
T63 but not over $8,100,000 over $7,100,000
T64 Over $8,100,000 $418,200 plus 10.8% of the excess
T65 but not over $9,100,000 over $8,100,000
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T66 Over $9,100,000 $526,200 plus 11.4% of the excess
T67 but not over $10,100,000 over $9,100,000
T68 Over $10,100,000 $640,200 plus 12% of the excess
T69 over $10,100,000
(5) With respect to Connecticut taxable gifts, as defined in section 787
12-643, as amended by this act, made by a donor during a calendar 788
year commencing on or after January 1, 2011, but prior to January 1, 789
2018, including the aggregate amount of all Connecticut taxable gifts 790
made by the donor during all calendar years commencing on or after 791
January 1, 2005, the tax imposed by section 12-640, as amended by this 792
act, for the calendar year shall be at the rate set forth in the following 793
schedule, with a credit allowed against such tax for any tax previously 794
paid to this state pursuant to this subdivision or pursuant to 795
subdivision (3) or (4) of this subsection, provided such credit shall not 796
exceed the amount of tax imposed by this section: 797
T70
Amount of Taxable Gifts Rate of Tax
T71 Not over $2,000,000 None
T72 Over $2,000,000 7.2% of the excess
T73 but not over $3,600,000 over $2,000,000
T74 Over $3,600,000 $115,200 plus 7.8% of the excess
T75 but not over $4,100,000 over $3,600,000
T76 Over $4,100,000 $154,200 plus 8.4% of the excess
T77 but not over $5,100,000 over $4,100,000
T78 Over $5,100,000 $238,200 plus 9.0% of the excess
T79 but not over $6,100,000 over $5,100,000
T80 Over $6,100,000 $328,200 plus 9.6% of the excess
T81 but not over $7,100,000 over $6,100,000
T82 Over $7,100,000 $424,200 plus 10.2% of the excess
T83 but not over $8,100,000 over $7,100,000
T84 Over $8,100,000 $526,200 plus 10.8% of the excess
T85 but not over $9,100,000 over $8,100,000
T86 Over $9,100,000 $634,200 plus 11.4% of the excess
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T87 but not over $10,100,000 over $9,100,000
T88 Over $10,100,000 $748,200 plus 12% of the excess
T89 over $10,100,000
(6) With respect to Connecticut taxable gifts, as defined in section 798
12-643, as amended by this act, made by a donor during a calendar 799
year commencing on or after January 1, 2018, but prior to January 1, 800
2019, including the aggregate amount of all Connecticut taxable gifts 801
made by the donor during all calendar years commencing on or after 802
January 1, 2005, the tax imposed by section 12-640, as amended by this 803
act, for the calendar year shall be at the rate set forth in the following 804
schedule, with a credit allowed against such tax for any tax previously 805
paid to this state pursuant to this subdivision or pursuant to 806
subdivision (3), (4) or (5) of this subsection, provided such credit shall 807
not exceed the amount of tax imposed by this section: 808
T90
Amount of Taxable Gifts Rate of Tax
T91 Not over $2,600,000 None
T92 Over $2,600,000 7.2% of the excess
T93 but not over $3,600,000 over $2,600,000
T94 Over $3,600,000 $72,000 plus 7.8% of the excess
T95 but not over $4,100,000 over $3,600,000
T96 Over $4,100,000 $111,000 plus 8.4% of the excess
T97 but not over $5,100,000 over $4,100,000
T98 Over $5,100,000 $195,000 plus 10% of the excess
T99 but not over $6,100,000 over $5,100,000
T100 Over $6,100,000 $295,000 plus 10.4% of the excess
T101 but not over $7,100,000 over $6,100,000
T102 Over $7,100,000 $399,000 plus 10.8% of the excess
T103 but not over $8,100,000 over $7,100,000
T104 Over $8,100,000 $507,000 plus 11.2% of the excess
T105 but not over $9,100,000 over $8,100,000
T106 Over $9,100,000 $619,000 plus 11.6% of the excess
T107 but not over $10,100,000 over $9,100,000
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T108 Over $10,100,000 $735,000 plus 12% of the excess
T109 over $10,100,000
[(7) With respect to Connecticut taxable gifts, as defined in section 809
12-643, made by a donor during a calendar year commencing on or 810
after January 1, 2019, but prior to January 1, 2020, including the 811
aggregate amount of all Connecticut taxable gifts made by the donor 812
during all calendar years commencing on or after January 1, 2005, the 813
tax imposed by section 12-640 for the calendar year shall be at the rate 814
set forth in the following schedule, with a credit allowed against such 815
tax for any tax previously paid to this state pursuant to this 816
subdivision or pursuant to subdivision (3), (4), (5) or (6) of this 817
subsection, provided such credit shall not exceed the amount of tax 818
imposed by this section: 819
T110
Amount of Taxable Gifts Rate of Tax
T111 Not over $3,600,000 None
T112 Over $3,600,000 7.8% of the excess
T113 but not over $4,100,000 over $3,600,000
T114 Over $4,100,000 $39,000 plus 8.4% of the excess
T115 but not over $5,100,000 over $4,100,000
T116 Over $5,100,000 $123,000 plus 10% of the excess
T117 but not over $6,100,000 over $5,100,000
T118 Over $6,100,000 $223,000 plus 10.4% of the excess
T119 but not over $7,100,000 over $6,100,000
T120 Over $7,100,000 $327,000 plus 10.8% of the excess
T121 but not over $8,100,000 over $7,100,000
T122 Over $8,100,000 $435,000 plus 11.2% of the excess
T123 but not over $9,100,000 over $8,100,000
T124 Over $9,100,000 $547,000 plus 11.6% of the excess
T125 but not over $10,100,000 over $9,100,000
T126 Over $10,100,000 $663,000 plus 12% of the excess
T127 over $10,100,000
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(8) With respect to Connecticut taxable gifts, as defined in section 820
12-643, made by a donor during a calendar year commencing on or 821
after January 1, 2020, but prior to January 1, 2021, including the 822
aggregate amount of all Connecticut taxable gifts made by the donor 823
during all calendar years commencing on or after January 1, 2005, the 824
tax imposed by section 12-640 for the calendar year shall be at the rate 825
set forth in the following schedule, with a credit allowed against such 826
tax for any tax previously paid to this state pursuant to this 827
subdivision or pursuant to subdivision (3), (4), (5), (6) or (7) of this 828
subsection, provided such credit shall not exceed the amount of tax 829
imposed by this section: 830
T128 Amount of Taxable Gifts Rate of Tax
T129 Not over $5,100,000 None
T130 Over $5,100,000 10% of the excess
T131 but not over $6,100,000 over $5,100,000
T132 Over $6,100,000 $100,000 plus 10.4% of the excess
T133 but not over $7,100,000 over $6,100,000
T134 Over $7,100,000 $204,000 plus 10.8% of the excess
T135 but not over $8,100,000 over $7,100,000
T136 Over $8,100,000 $312,000 plus 11.2% of the excess
T137 but not over $9,100,000 over $8,100,000
T138 Over $9,100,000 $424,000 plus 11.6% of the excess
T139 but not over $10,100,000 over $9,100,000
T140 Over $10,100,000 $540,000 plus 12% of the excess
T141 over $10,100,000
(9) With respect to Connecticut taxable gifts, as defined in section 831
12-643, made by a donor during a calendar year commencing on or 832
after January 1, 2021, but prior to January 1, 2022, including the 833
aggregate amount of all Connecticut taxable gifts made by the donor 834
during all calendar years commencing on or after January 1, 2005, the 835
tax imposed by section 12-640 for the calendar year shall be at the rate 836
set forth in the following schedule, with a credit allowed against such 837
tax for any tax previously paid to this state pursuant to this 838
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subdivision or pursuant to subdivision (3), (4), (5), (6), (7) or (8) of this 839
subsection, provided such credit shall not exceed the amount of tax 840
imposed by this section: 841
T142 Amount of Taxable Gifts Rate of Tax
T143 Not over $7,100,000 None
T144 Over $7,100,000 10.8% of the excess
T145 but not over $8,100,000 over $7,100,000
T146 Over $8,100,000 $108,000 plus 11.2% of the excess
T147 but not over $9,100,000 over $8,100,000
T148 Over $9,100,000 $220,000 plus 11.6% of the excess
T149 but not over $10,100,000 over $9,100,000
T150 Over $10,100,000 $336,000 plus 12% of the excess
T151 over $10,100,000
(10) With respect to Connecticut taxable gifts, as defined in section 842
12-643, made by a donor during a calendar year commencing on or 843
after January 1, 2022, but prior to January 1, 2023, including the 844
aggregate amount of all Connecticut taxable gifts made by the donor 845
during all calendar years commencing on or after January 1, 2005, the 846
tax imposed by section 12-640 for the calendar year shall be at the rate 847
set forth in the following schedule, with a credit allowed against such 848
tax for any tax previously paid to this state pursuant to this 849
subdivision or pursuant to subdivision (3), (4), (5), (6), (7), (8) or (9) of 850
this subsection, provided such credit shall not exceed the amount of 851
tax imposed by this section: 852
T152 Amount of Taxable Gifts Rate of Tax
T153 Not over $9,100,000 None
T154 Over $9,100,000 11.6% of the excess
T155 but not over $10,100,000 over $9,100,000
T156 Over $10,100,000 $116,000 plus 12% of the excess
T157 over $10,100,000
(11) With respect to Connecticut taxable gifts, as defined in section 853
Raised Bill No. 7410
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12-643, made by a donor during a calendar year commencing on or 854
after January 1, 2023, including the aggregate amount of all 855
Connecticut taxable gifts made by the donor during all calendar years 856
commencing on or after January 1, 2005, the tax imposed by section 12-857
640 for the calendar year shall be at the rate set forth in the following 858
schedule, with a credit allowed against such tax for any tax previously 859
paid to this state pursuant to this subdivision or pursuant to 860
subdivision (3), (4), (5), (6), (7), (8), (9) or (10) of this subsection, 861
provided such credit shall not exceed the amount of tax imposed by 862
this section: 863
T158 Amount of Taxable Gifts Rate of Tax
T159 Not over the None
T160 federal basic exclusion amount
T161 Over the 12% of the excess over the
T162 federal basic exclusion amount federal basic exclusion amount]
(b) The tax imposed by section 12-640, as amended by this act, shall 864
be paid by the donor. If the gift tax is not paid when due the donee of 865
any gift shall be personally liable for the tax to the extent of the value 866
of the gift. 867
(c) [(1)] With respect to Connecticut taxable gifts, as defined in 868
section 12-643, as amended by this act, made by a donor during a 869
calendar year commencing on or after January 1, 2016, but prior to 870
January 1, 2019, the aggregate amount of tax imposed by section 12-871
640, as amended by this act, for all calendar years commencing on or 872
after January 1, 2016, shall not exceed twenty million dollars. 873
[(2) With respect to Connecticut taxable gifts, as defined in section 874
12-643, made by a donor during a calendar year commencing on or 875
after January 1, 2019, the aggregate amount of tax imposed by section 876
12-640 for all calendar years commencing on or after January 1, 2016, 877
shall not exceed fifteen million dollars.] 878
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Sec. 17. Subdivision (3) of section 12-643 of the general statutes is 879
repealed and the following is substituted in lieu thereof (Effective from 880
passage and applicable to estates of decedents dying on or after January 1, 881
2019): 882
(3) "Connecticut taxable gifts" means taxable gifts made during a 883
calendar year commencing on or after January 1, 2005, but prior to 884
January 1, 2019, that are, (A) for residents of this state, taxable gifts, 885
wherever located, but excepting gifts of real estate or tangible personal 886
property located outside this state, and (B) for nonresidents of this 887
state, gifts of real estate or tangible personal property located within 888
this state. 889
Sec. 18. Section 12-391 of the general statutes is repealed and the 890
following is substituted in lieu thereof (Effective from passage and 891
applicable to decedents dying on or after January 1, 2019): 892
(a) With respect to estates of decedents who die prior to January 1, 893
2005, and except as otherwise provided in section 59 of public act 03-1 894
of the June 30 special session, a tax is imposed upon the transfer of the 895
estate of each person who at the time of death was a resident of this 896
state. The amount of the tax shall be the amount of the federal credit 897
allowable for estate, inheritance, legacy and succession taxes paid to 898
any state or the District of Columbia under the provisions of the 899
federal internal revenue code in force at the date of such decedent's 900
death in respect to any property owned by such decedent or subject to 901
such taxes as part of or in connection with the estate of such decedent. 902
If real or tangible personal property of such decedent is located outside 903
this state and is subject to estate, inheritance, legacy, or succession 904
taxes by any state or states, other than the state of Connecticut, or by 905
the District of Columbia for which such federal credit is allowable, the 906
amount of tax due under this section shall be reduced by the lesser of: 907
(1) The amount of any such taxes paid to such other state or states or 908
said district and allowed as a credit against the federal estate tax; or (2) 909
an amount computed by multiplying such federal credit by a fraction, 910
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(A) the numerator of which is the value of that part of the decedent's 911
gross estate over which such other state or states or said district have 912
jurisdiction for estate tax purposes to the same extent to which this 913
state would assert jurisdiction for estate tax purposes under this 914
chapter with respect to the residents of such other state or states or 915
said district, and (B) the denominator of which is the value of the 916
decedent's gross estate. Property of a resident estate over which this 917
state has jurisdiction for estate tax purposes includes real property 918
situated in this state, tangible personal property having an actual situs 919
in this state, and intangible personal property owned by the decedent, 920
regardless of where it is located. The amount of any estate tax imposed 921
under this subsection shall also be reduced, but not below zero, by the 922
amount of any tax that is imposed under chapter 216 and that is 923
actually paid to this state. 924
(b) With respect to the estates of decedents who die prior to January 925
1, 2005, and except as otherwise provided in section 59 of public act 03-926
1 of the June 30 special session, a tax is imposed upon the transfer of 927
the estate of each person who at the time of death was a nonresident of 928
this state, the amount of which shall be computed by multiplying (1) 929
the federal credit allowable for estate, inheritance, legacy, and 930
succession taxes paid to any state or states or the District of Columbia 931
under the provisions of the federal internal revenue code in force at the 932
date of such decedent's death in respect to any property owned by 933
such decedent or subject to such taxes as a part of or in connection 934
with the estate of such decedent by (2) a fraction, (A) the numerator of 935
which is the value of that part of the decedent's gross estate over which 936
this state has jurisdiction for estate tax purposes and (B) the 937
denominator of which is the value of the decedent's gross estate. 938
Property of a nonresident estate over which this state has jurisdiction 939
for estate tax purposes includes real property situated in this state and 940
tangible personal property having an actual situs in this state. The 941
amount of any estate tax imposed under this subsection shall also be 942
reduced, but not below zero, by the amount of any tax that is imposed 943
Raised Bill No. 7410
LCO No. 6787 37 of 88
under chapter 216 and that is actually paid to this state. 944
(c) For purposes of this section and section 12-392, as amended by 945
this act: 946
(1) (A) "Connecticut taxable estate" means, with respect to the 947
estates of decedents dying on or after January 1, 2005, but prior to 948
January 1, 2010, (i) the gross estate less allowable deductions, as 949
determined under Chapter 11 of the Internal Revenue Code, plus (ii) 950
the aggregate amount of all Connecticut taxable gifts, as defined in 951
section 12-643, as amended by this act, made by the decedent for all 952
calendar years beginning on or after January 1, 2005, but prior to 953
January 1, 2010. The deduction for state death taxes paid under Section 954
2058 of said code shall be disregarded. 955
(B) "Connecticut taxable estate" means, with respect to the estates of 956
decedents dying on or after January 1, 2010, but prior to January 1, 957
2015, (i) the gross estate less allowable deductions, as determined 958
under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 959
amount of all Connecticut taxable gifts, as defined in section 12-643, as 960
amended by this act, made by the decedent for all calendar years 961
beginning on or after January 1, 2005. The deduction for state death 962
taxes paid under Section 2058 of said code shall be disregarded. 963
(C) "Connecticut taxable estate" means, with respect to the estates of 964
decedents dying on or after January 1, 2015, but prior to January 1, 965
2019, (i) the gross estate less allowable deductions, as determined 966
under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 967
amount of all Connecticut taxable gifts, as defined in section 12-643, as 968
amended by this act, made by the decedent for all calendar years 969
beginning on or after January 1, 2005, other than Connecticut taxable 970
gifts that are includable in the gross estate for federal estate tax 971
purposes of the decedent, plus (iii) the amount of any tax paid to this 972
state pursuant to section 12-642, as amended by this act, by the 973
decedent or the decedent's estate on any gift made by the decedent or 974
Raised Bill No. 7410
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the decedent's spouse during the three-year period preceding the date 975
of the decedent's death. The deduction for state death taxes paid under 976
Section 2058 of the Internal Revenue Code shall be disregarded. 977
(2) "Internal Revenue Code" means the Internal Revenue Code of 978
1986, or any subsequent corresponding internal revenue code of the 979
United States, as amended from time to time, except in the event of 980
repeal of the federal estate tax, then all references to the Internal 981
Revenue Code in this section shall mean the Internal Revenue Code as 982
in force on the day prior to the effective date of such repeal. 983
(3) "Gross estate" means the gross estate, for federal estate tax 984
purposes. 985
(d) (1) (A) With respect to the estates of decedents who die on or 986
after January 1, 2005, but prior to January 1, 2010, a tax is imposed 987
upon the transfer of the estate of each person who at the time of death 988
was a resident of this state. The amount of the tax shall be determined 989
using the schedule in subsection (g) of this section. A credit shall be 990
allowed against such tax for any taxes paid to this state pursuant to 991
section 12-642, as amended by this act, for Connecticut taxable gifts 992
made on or after January 1, 2005, but prior to January 1, 2010. 993
(B) With respect to the estates of decedents who die on or after 994
January 1, 2010, but prior to January 1, 2015, a tax is imposed upon the 995
transfer of the estate of each person who at the time of death was a 996
resident of this state. The amount of the tax shall be determined using 997
the schedule in subsection (g) of this section. A credit shall be allowed 998
against such tax for any taxes paid to this state pursuant to section 12-999
642, as amended by this act, for Connecticut taxable gifts made on or 1000
after January 1, 2005, provided such credit shall not exceed the amount 1001
of tax imposed by this section. 1002
(C) With respect to the estates of decedents who die on or after 1003
January 1, 2015, but prior to January 1, 2016, a tax is imposed upon the 1004
transfer of the estate of each person who at the time of death was a 1005
Raised Bill No. 7410
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resident of this state. The amount of the tax shall be determined using 1006
the schedule in subsection (g) of this section. A credit shall be allowed 1007
against such tax for (i) any taxes paid to this state pursuant to section 1008
12-642, as amended by this act, by the decedent or the decedent's estate 1009
for Connecticut taxable gifts made on or after January 1, 2005, and (ii) 1010
any taxes paid by the decedent's spouse to this state pursuant to 1011
section 12-642, as amended by this act, for Connecticut taxable gifts 1012
made by the decedent on or after January 1, 2005, that are includable in 1013
the gross estate of the decedent, provided such credit shall not exceed 1014
the amount of tax imposed by this section. 1015
(D) With respect to the estates of decedents who die on or after 1016
January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 1017
transfer of the estate of each person who at the time of death was a 1018
resident of this state. The amount of the tax shall be determined using 1019
the schedule in subsection (g) of this section. A credit shall be allowed 1020
against such tax for (i) any taxes paid to this state pursuant to section 1021
12-642, as amended by this act, by the decedent or the decedent's estate 1022
for Connecticut taxable gifts made on or after January 1, 2005, and (ii) 1023
any taxes paid by the decedent's spouse to this state pursuant to 1024
section 12-642, as amended by this act, for Connecticut taxable gifts 1025
made by the decedent on or after January 1, 2005, that are includable in 1026
the gross estate of the decedent, provided such credit shall not exceed 1027
the amount of tax imposed by this section. In no event shall the 1028
amount of tax payable under this section exceed twenty million 1029
dollars. Such twenty-million-dollar limit shall be reduced by the 1030
amount of (I) any taxes paid to this state pursuant to section 12-642, as 1031
amended by this act, by the decedent or the decedent's estate for 1032
Connecticut taxable gifts made on or after January 1, 2016, and (II) any 1033
taxes paid by the decedent's spouse to this state pursuant to section 12-1034
642, as amended by this act, for Connecticut taxable gifts made by the 1035
decedent on or after January 1, 2016, that are includable in the gross 1036
estate of the decedent, but in no event shall the amount be reduced 1037
below zero. 1038
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LCO No. 6787 40 of 88
[(E) With respect to the estates of decedents who die on or after 1039
January 1, 2019, a tax is imposed upon the transfer of the estate of each 1040
person who at the time of death was a resident of this state. The 1041
amount of the tax shall be determined using the schedule in subsection 1042
(g) of this section. A credit shall be allowed against such tax for (i) any 1043
taxes paid to this state pursuant to section 12-642 by the decedent or 1044
the decedent's estate for Connecticut taxable gifts made on or after 1045
January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this 1046
state pursuant to section 12-642 for Connecticut taxable gifts made by 1047
the decedent on or after January 1, 2005, that are includable in the 1048
gross estate of the decedent, provided such credit shall not exceed the 1049
amount of tax imposed by this section. In no event shall the amount of 1050
tax payable under this section exceed fifteen million dollars. Such 1051
fifteen-million-dollar limit shall be reduced by the amount of (I) any 1052
taxes paid to this state pursuant to section 12-642 by the decedent or 1053
the decedent's estate for Connecticut taxable gifts made on or after 1054
January 1, 2016, and (II) any taxes paid by the decedent's spouse to this 1055
state pursuant to section 12-642 for Connecticut taxable gifts made by 1056
the decedent on or after January 1, 2016, that are includable in the 1057
gross estate of the decedent, but in no event shall the amount be 1058
reduced below zero.] 1059
(2) If real or tangible personal property of such decedent is located 1060
outside this state, the amount of tax due under this section shall be 1061
reduced by an amount computed by multiplying the tax otherwise due 1062
pursuant to subdivision (1) of this subsection, without regard to the 1063
credit allowed for any taxes paid to this state pursuant to section 12-1064
642, as amended by this act, by a fraction, (A) the numerator of which 1065
is the value of that part of the decedent's gross estate attributable to 1066
real or tangible personal property located outside of the state, and (B) 1067
the denominator of which is the value of the decedent's gross estate. 1068
(3) For a resident estate, the state shall have the power to levy the 1069
estate tax upon real property situated in this state, tangible personal 1070
property having an actual situs in this state and intangible personal 1071
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property included in the gross estate of the decedent, regardless of 1072
where it is located. The state is permitted to calculate the estate tax and 1073
levy said tax to the fullest extent permitted by the Constitution of the 1074
United States. 1075
(e) (1) (A) With respect to the estates of decedents who die on or 1076
after January 1, 2005, but prior to January 1, 2010, a tax is imposed 1077
upon the transfer of the estate of each person who at the time of death 1078
was a nonresident of this state. The amount of such tax shall be 1079
computed by multiplying (i) the amount of tax determined using the 1080
schedule in subsection (g) of this section by (ii) a fraction, the 1081
numerator of which is the value of that part of the decedent's gross 1082
estate over which this state has jurisdiction for estate tax purposes, and 1083
the denominator of which is the value of the decedent's gross estate. A 1084
credit shall be allowed against such tax for any taxes paid to this state 1085
pursuant to section 12-642, as amended by this act, for Connecticut 1086
taxable gifts made on or after January 1, 2005, but prior to January 1, 1087
2010. 1088
(B) With respect to the estates of decedents who die on or after 1089
January 1, 2010, but prior to January 1, 2016, a tax is imposed upon the 1090
transfer of the estate of each person who at the time of death was a 1091
nonresident of this state. The amount of such tax shall be computed by 1092
multiplying (i) the amount of tax determined using the schedule in 1093
subsection (g) of this section by (ii) a fraction, the numerator of which 1094
is the value of that part of the decedent's gross estate over which this 1095
state has jurisdiction for estate tax purposes, and the denominator of 1096
which is the value of the decedent's gross estate. A credit shall be 1097
allowed against such tax for any taxes paid to this state pursuant to 1098
section 12-642, as amended by this act, for Connecticut taxable gifts 1099
made on or after January 1, 2005, provided such credit shall not exceed 1100
the amount of tax imposed by this section. 1101
(C) With respect to the estates of decedents who die on or after 1102
January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 1103
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transfer of the estate of each person who at the time of death was a 1104
nonresident of this state. The amount of such tax shall be computed by 1105
multiplying (i) the amount of tax determined using the schedule in 1106
subsection (g) of this section by (ii) a fraction, the numerator of which 1107
is the value of that part of the decedent's gross estate over which this 1108
state has jurisdiction for estate tax purposes, and the denominator of 1109
which is the value of the decedent's gross estate. A credit shall be 1110
allowed against such tax for any taxes paid to this state pursuant to 1111
section 12-642, as amended by this act, for Connecticut taxable gifts 1112
made on or after January 1, 2005, provided such credit shall not exceed 1113
the amount of tax imposed by this section. In no event shall the 1114
amount of tax payable under this section exceed twenty million 1115
dollars. Such twenty-million-dollar limit shall be reduced by the 1116
amount of (I) any taxes paid to this state pursuant to section 12-642, as 1117
amended by this act, by the decedent or the decedent's estate for 1118
Connecticut taxable gifts made on or after January 1, 2016, and (II) any 1119
taxes paid by the decedent's spouse to this state pursuant to section 12-1120
642, as amended by this act, for Connecticut taxable gifts made by the 1121
decedent on or after January 1, 2016, that are includable in the gross 1122
estate of the decedent, but in no event shall the amount be reduced 1123
below zero. 1124
[(D) With respect to the estates of decedents who die on or after 1125
January 1, 2019, a tax is imposed upon the transfer of the estate of each 1126
person who at the time of death was a nonresident of this state. The 1127
amount of such tax shall be computed by multiplying the amount of 1128
tax determined using the schedule in subsection (g) of this section by a 1129
fraction, the numerator of which is the value of that part of the 1130
decedent's gross estate over which this state has jurisdiction for estate 1131
tax purposes, and the denominator of which is the value of the 1132
decedent's gross estate. A credit shall be allowed against such tax for 1133
(i) any taxes paid to this state pursuant to section 12-642 by the 1134
decedent or the decedent's estate for Connecticut taxable gifts made on 1135
or after January 1, 2005, and (ii) any taxes paid by the decedent's 1136
Raised Bill No. 7410
LCO No. 6787 43 of 88
spouse to this state pursuant to section 12-642 for Connecticut taxable 1137
gifts made by the decedent on or after January 1, 2005, that are 1138
includable in the gross estate of the decedent, provided such credit 1139
shall not exceed the amount of tax imposed by this section. In no event 1140
shall the amount of tax payable under this section exceed fifteen 1141
million dollars. Such fifteen-million-dollar limit shall be reduced by 1142
the amount of (I) any taxes paid to this state pursuant to section 12-642 1143
by the decedent or the decedent's estate for Connecticut taxable gifts 1144
made on or after January 1, 2016, and (II) any taxes paid by the 1145
decedent's spouse to this state pursuant to section 12-642 for 1146
Connecticut taxable gifts made by the decedent on or after January 1, 1147
2016, that are includable in the gross estate of the decedent, but in no 1148
event shall the amount be reduced below zero.] 1149
(2) For a nonresident estate, the state shall have the power to levy 1150
the estate tax upon all real property situated in this state and tangible 1151
personal property having an actual situs in this state. The state is 1152
permitted to calculate the estate tax and levy said tax to the fullest 1153
extent permitted by the Constitution of the United States. 1154
(f) (1) For purposes of the tax imposed under this section, the value 1155
of the Connecticut taxable estate shall be determined taking into 1156
account all of the deductions available under the Internal Revenue 1157
Code of 1986, specifically including, but not limited to, the deduction 1158
available under Section 2056(b)(7) of said code for a qualifying income 1159
interest for life in a surviving spouse. 1160
(2) An election under said Section 2056(b)(7) may be made for state 1161
estate tax purposes regardless of whether any such election is made for 1162
federal estate tax purposes. The value of the gross estate shall include 1163
the value of any property in which the decedent had a qualifying 1164
income interest for life for which an election was made under this 1165
subsection. 1166
(g) (1) With respect to the estates of decedents dying on or after 1167
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LCO No. 6787 44 of 88
January 1, 2005, but prior to January 1, 2010, the tax based on the 1168
Connecticut taxable estate shall be as provided in the following 1169
schedule: 1170
T163 Amount of Connecticut
T164 Taxable Estate Rate of Tax
T165 Not over $2,000,000 None
T166 Over $2,000,000
T167 but not over $2,100,000 5.085% of the excess over $0
T168 Over $2,100,000 $106,800 plus 8% of the excess
T169 but not over $2,600,000 over $2,100,000
T170 Over $2,600,000 $146,800 plus 8.8% of the excess
T171 but not over $3,100,000 over $2,600,000
T172 Over $3,100,000 $190,800 plus 9.6% of the excess
T173 but not over $3,600,000 over $3,100,000
T174 Over $3,600,000 $238,800 plus 10.4% of the excess
T175 but not over $4,100,000 over $3,600,000
T176 Over $4,100,000 $290,800 plus 11.2% of the excess
T177 but not over $5,100,000 over $4,100,000
T178 Over $5,100,000 $402,800 plus 12% of the excess
T179 but not over $6,100,000 over $5,100,000
T180 Over $6,100,000 $522,800 plus 12.8% of the excess
T181 but not over $7,100,000 over $6,100,000
T182 Over $7,100,000 $650,800 plus 13.6% of the excess
T183 but not over $8,100,000 over $7,100,000
T184 Over $8,100,000 $786,800 plus 14.4% of the excess
T185 but not over $9,100,000 over $8,100,000
T186 Over $9,100,000 $930,800 plus 15.2% of the excess
T187 but not over $10,100,000 over $9,100,000
T188 Over $10,100,000 $1,082,800 plus 16% of the excess
T189 over $10,100,000
(2) With respect to the estates of decedents dying on or after January 1171
1, 2010, but prior to January 1, 2011, the tax based on the Connecticut 1172
Raised Bill No. 7410
LCO No. 6787 45 of 88
taxable estate shall be as provided in the following schedule: 1173
T190 Amount of Connecticut
T191 Taxable Estate Rate of Tax
T192 Not over $3,500,000 None
T193 Over $3,500,000 7.2% of the excess
T194 but not over $3,600,000 over $3,500,000
T195 Over $3,600,000 $7,200 plus 7.8% of the excess
T196 but not over $4,100,000 over $3,600,000
T197 Over $4,100,000 $46,200 plus 8.4% of the excess
T198 but not over $5,100,000 over $4,100,000
T199 Over $5,100,000 $130,200 plus 9.0% of the excess
T200 but not over $6,100,000 over $5,100,000
T201 Over $6,100,000 $220,200 plus 9.6% of the excess
T202 but not over $7,100,000 over $6,100,000
T203 Over $7,100,000 $316,200 plus 10.2% of the excess
T204 but not over $8,100,000 over $7,100,000
T205 Over $8,100,000 $418,200 plus 10.8% of the excess
T206 but not over $9,100,000 over $8,100,000
T207 Over $9,100,000 $526,200 plus 11.4% of the excess
T208 but not over $10,100,000 over $9,100,000
T209 Over $10,100,000 $640,200 plus 12% of the excess
T210 over $10,100,000
(3) With respect to the estates of decedents dying on or after January 1174
1, 2011, but prior to January 1, 2018, the tax based on the Connecticut 1175
taxable estate shall be as provided in the following schedule: 1176
T211 Amount of Connecticut
T212 Taxable Estate Rate of Tax
T213 Not over $2,000,000 None
T214 Over $2,000,000 7.2% of the excess
T215 but not over $3,600,000 over $2,000,000
T216 Over $3,600,000 $115,200 plus 7.8% of the excess
Raised Bill No. 7410
LCO No. 6787 46 of 88
T217 but not over $4,100,000 over $3,600,000
T218 Over $4,100,000 $154,200 plus 8.4% of the excess
T219 but not over $5,100,000 over $4,100,000
T220 Over $5,100,000 $238,200 plus 9.0% of the excess
T221 but not over $6,100,000 over $5,100,000
T222 Over $6,100,000 $328,200 plus 9.6% of the excess
T223 but not over $7,100,000 over $6,100,000
T224 Over $7,100,000 $424,200 plus 10.2% of the excess
T225 but not over $8,100,000 over $7,100,000
T226 Over $8,100,000 $526,200 plus 10.8% of the excess
T227 but not over $9,100,000 over $8,100,000
T228 Over $9,100,000 $634,200 plus 11.4% of the excess
T229 but not over $10,100,000 over $9,100,000
T230 Over $10,100,000 $748,200 plus 12% of the excess
T231 over $10,100,000
(4) With respect to the estates of decedents dying on or after January 1177
1, 2018, but prior to January 1, 2019, the tax based on the Connecticut 1178
taxable estate shall be as provided in the following schedule: 1179
T232 Amount of Connecticut
T233 Taxable Estate Rate of Tax
T234 Not over $2,600,000 None
T235 Over $2,600,000 7.2% of the excess
T236 but not over $3,600,000 over $2,600,000
T237 Over $3,600,000 $72,000 plus 7.8% of the excess
T238 but not over $4,100,000 over $3,600,000
T239 Over $4,100,000 $111,000 plus 8.4% of the excess
T240 but not over $5,100,000 over $4,100,000
T241 Over $5,100,000 $195,000 plus 10% of the excess
T242 but not over $6,100,000 over $5,100,000
T243 Over $6,100,000 $295,000 plus 10.4% of the excess
T244 but not over $7,100,000 over $6,100,000
T245 Over $7,100,000 $399,000 plus 10.8% of the excess
Raised Bill No. 7410
LCO No. 6787 47 of 88
T246 but not over $8,100,000 over $7,100,000
T247 Over $8,100,000 $507,000 plus 11.2% of the excess
T248 but not over $9,100,000 over $8,100,000
T249 Over $9,100,000 $619,000 plus 11.6% of the excess
T250 but not over $10,100,000 over $9,100,000
T251 Over $10,100,000 $735,000 plus 12% of the excess
T252 over $10,100,000
[(5) With respect to the estates of decedents dying on or after 1180
January 1, 2019, but prior to January 1, 2020, the tax based on the 1181
Connecticut taxable estate shall be as provided in the following 1182
schedule: 1183
T253 Amount of Connecticut
T254 Taxable Estate Rate of Tax
T255 Not over $3,600,000 None
T256 Over $3,600,000 7.8% of the excess
T257 but not over $4,100,000 over $3,600,000
T258 Over $4,100,000 $39,000 plus 8.4% of the excess
T259 but not over $5,100,000 over $4,100,000
T260 Over $5,100,000 $123,000 plus 10% of the excess
T261 but not over $6,100,000 over $5,100,000
T262 Over $6,100,000 $223,000 plus 10.4% of the excess
T263 but not over $7,100,000 over $6,100,000
T264 Over $7,100,000 $327,000 plus 10.8% of the excess
T265 but not over $8,100,000 over $7,100,000
T266 Over $8,100,000 $435,000 plus 11.2% of the excess
T267 but not over $9,100,000 over $8,100,000
T268 Over $9,100,000 $547,000 plus 11.6% of the excess
T269 but not over $10,100,000 over $9,100,000
T270 Over $10,100,000 $663,000 plus 12% of the excess
T271 over $10,100,000
(6) With respect to the estates of decedents dying on or after January 1184
Raised Bill No. 7410
LCO No. 6787 48 of 88
1, 2020, but prior to January 1, 2021, the tax based on the Connecticut 1185
taxable estate shall be as provided in the following schedule: 1186
T272 Amount of Connecticut
T273 Taxable Estate Rate of Tax
T274 Not over $5,100,000 None
T275 Over $5,100,000 10% of the excess
T276 but not over $6,100,000 over $5,100,000
T277 Over $6,100,000 $100,000 plus 10.4% of the excess
T278 but not over $7,100,000 over $6,100,000
T279 Over $7,100,000 $204,000 plus 10.8% of the excess
T280 but not over $8,100,000 over $7,100,000
T281 Over $8,100,000 $312,000 plus 11.2% of the excess
T282 but not over $9,100,000 over $8,100,000
T283 Over $9,100,000 $424,000 plus 11.6% of the excess
T284 but not over $10,100,000 over $9,100,000
T285 Over $10,100,000 $540,000 plus 12% of the excess
T286 over $10,100,000
(7) With respect to the estates of decedents dying on or after January 1187
1, 2021, but prior to January 1, 2022, the tax based on the Connecticut 1188
taxable estate shall be as provided in the following schedule: 1189
T287 Amount of Connecticut
T288 Taxable Estate Rate of Tax
T289 Not over $7,100,000 None
T290 Over $7,100,000 10.8% of the excess
T291 but not over $8,100,000 over $7,100,000
T292 Over $8,100,000 $108,000 plus 11.2% of the excess
T293 but not over $9,100,000 over $8,100,000
T294 Over $9,100,000 $220,000 plus 11.6% of the excess
T295 but not over $10,100,000 over $9,100,000
T296 Over $10,100,000 $336,000 plus 12% of the excess
T297 over $10,100,000
Raised Bill No. 7410
LCO No. 6787 49 of 88
(8) With respect to the estates of decedents dying on or after January 1190
1, 2022, but prior to January 1, 2023, the tax based on the Connecticut 1191
taxable estate shall be as provided in the following schedule: 1192
T298 Amount of Connecticut
T299 Taxable Estate Rate of Tax
T300 Not over $9,100,000 None
T301 Over $9,100,000 11.6% of the excess
T302 but not over $10,100,000 over $9,100,000
T303 Over $10,100,000 $116,000 plus 12% of the excess
T304 over $10,100,000
(9) With respect to the estates of decedents dying on or after January 1193
1, 2023, the tax based on the Connecticut taxable estate shall be as 1194
provided in the following schedule: 1195
T305 Amount of Connecticut
T306 Taxable Estate Rate of Tax
T307 Not over the None
T308 federal basic exclusion amount
T309 Over the 12% of the excess over the
T310 federal basic exclusion amount federal basic exclusion amount]
(h) (1) For the purposes of this chapter, each decedent shall be 1196
presumed to have died a resident of this state. The burden of proof in 1197
an estate tax proceeding shall be upon any decedent's estate claiming 1198
exemption by reason of the decedent's alleged nonresidency. 1199
(2) Any person required to make and file a tax return under this 1200
chapter, believing that the decedent died a nonresident of this state, 1201
may file a request for determination of domicile in writing with the 1202
Commissioner of Revenue Services, stating the specific grounds upon 1203
which the request is founded provided (A) such person has filed such 1204
return, (B) at least two hundred seventy days, but no more than three 1205
Raised Bill No. 7410
LCO No. 6787 50 of 88
years, has elapsed since the due date of such return or, if an 1206
application for extension of time to file such return has been granted, 1207
the extended due date of such return, (C) such person has not been 1208
notified, in writing, by said commissioner that a written agreement of 1209
compromise with the taxing authorities of another jurisdiction, under 1210
section 12-395a, is being negotiated, and (D) the commissioner has not 1211
previously determined whether the decedent died a resident of this 1212
state. Not later than one hundred eighty days following receipt of such 1213
request for determination, the commissioner shall determine whether 1214
such decedent died a resident or a nonresident of this state. If the 1215
commissioner commences negotiations over a written agreement of 1216
compromise with the taxing authorities of another jurisdiction after a 1217
request for determination of domicile is filed, the one-hundred-eighty-1218
day period shall be tolled for the duration of such negotiations. When, 1219
before the expiration of such one-hundred-eighty-day period, both the 1220
commissioner and the person required to make and file a tax return 1221
under this chapter have consented in writing to the making of such 1222
determination after such time, the determination may be made at any 1223
time prior to the expiration of the period agreed upon. The period so 1224
agreed upon may be extended by subsequent agreements in writing 1225
made before the expiration of the period previously agreed upon. The 1226
commissioner shall mail notice of his proposed determination to the 1227
person required to make and file a tax return under this chapter. Such 1228
notice shall set forth briefly the commissioner's findings of fact and the 1229
basis of such proposed determination. Sixty days after the date on 1230
which it is mailed, a notice of proposed determination shall constitute 1231
a final determination unless the person required to make and file a tax 1232
return under this chapter has filed, as provided in subdivision (3) of 1233
this subsection, a written protest with the Commissioner of Revenue 1234
Services. 1235
(3) On or before the sixtieth day after mailing of the proposed 1236
determination, the person required to make and file a tax return under 1237
this chapter may file with the commissioner a written protest against 1238
Raised Bill No. 7410
LCO No. 6787 51 of 88
the proposed determination in which such person shall set forth the 1239
grounds on which the protest is based. If such a protest is filed, the 1240
commissioner shall reconsider the proposed determination and, if the 1241
person required to make and file a tax return under this chapter has so 1242
requested, may grant or deny such person or the authorized 1243
representatives of such person an oral hearing. 1244
(4) Notice of the commissioner's determination shall be mailed to 1245
the person required to make and file a tax return under this chapter 1246
and such notice shall set forth briefly the commissioner's findings of 1247
fact and the basis of decision in each case decided adversely to such 1248
person. 1249
(5) The action of the commissioner on a written protest shall be final 1250
upon the expiration of one month from the date on which he mails 1251
notice of his action to the person required to make and file a tax return 1252
under this chapter unless within such period such person seeks review 1253
of the commissioner's determination pursuant to subsection (b) of 1254
section 12-395. 1255
(6) Nothing in this subsection shall be construed to relieve any 1256
person filing a request for determination of domicile of the obligation 1257
to pay the correct amount of tax on or before the due date of the tax. 1258
(i) The tax calculated pursuant to the provisions of this section shall 1259
be reduced in an amount equal to half of the amount invested by a 1260
decedent in a private investment fund or fund of funds pursuant to 1261
subdivision (43) of section 32-39, provided (1) any such reduction shall 1262
not exceed five million dollars for any such decedent, (2) any such 1263
amount invested by the decedent shall have been invested in such 1264
fund or fund of funds for ten years or more, and (3) the aggregate 1265
amount of all taxes reduced under this subsection shall not exceed 1266
thirty million dollars. 1267
Sec. 19. Section 12-392 of the general statutes is repealed and the 1268
following is substituted in lieu thereof (Effective from passage and 1269
Raised Bill No. 7410
LCO No. 6787 52 of 88
applicable to decedents dying on or after January 1, 2019): 1270
(a) (1) For the estates of decedents dying prior to July 1, 2009, the tax 1271
imposed by this chapter shall become due at the date of the taxable 1272
transfer and shall become payable, and shall be paid, without 1273
assessment, notice or demand, to the Commissioner of Revenue 1274
Services at the expiration of nine months from the date of death. For 1275
the estates of decedents dying on or after July 1, 2009, but prior to 1276
January 1, 2019, the tax imposed by this chapter shall become due at 1277
the date of the taxable transfer and shall become payable and shall be 1278
paid, without assessment, notice or demand, to the commissioner at 1279
the expiration of six months from the date of death. Executors, 1280
administrators, trustees, grantees, donees, beneficiaries and surviving 1281
joint owners shall be liable for the tax and for any interest or penalty 1282
thereon until it is paid, notwithstanding any provision of chapter 802b, 1283
except that no executor, administrator, trustee, grantee, donee, 1284
beneficiary or surviving joint owner shall be liable for a greater sum 1285
than the value of the property actually received by him or her. If the 1286
amount of tax reported to be due on the return is not paid, for the 1287
estates of decedents dying prior to July 1, 2009, within such nine 1288
months, or for the estates of decedents dying on or after July 1, 2009, 1289
but prior to January 1, 2019, within such six months, there shall be 1290
imposed a penalty equal to ten per cent of such amount due and 1291
unpaid, or fifty dollars, whichever is greater. Such amount shall bear 1292
interest at the rate of one per cent per month or fraction thereof from 1293
the due date of such tax until the date of payment. Subject to the 1294
provisions of section 12-3a, the commissioner may waive all or part of 1295
the penalties provided under this chapter when it is proven to the 1296
commissioner's satisfaction that the failure to pay any tax was due to 1297
reasonable cause and was not intentional or due to neglect. 1298
(2) The Commissioner of Revenue Services may, for reasonable 1299
cause shown, extend the time for payment. The commissioner may 1300
require the filing of a tentative return and the payment of the tax 1301
reported to be due thereon in connection with such extension. Any 1302
Raised Bill No. 7410
LCO No. 6787 53 of 88
additional tax which may be found to be due on the filing of a return 1303
as allowed by such extension shall bear interest at the rate of one per 1304
cent per month or fraction thereof from the original due date of such 1305
tax to the date of actual payment. 1306
(3) (A) Whenever there is a claimed overpayment of the tax imposed 1307
by this chapter, the Commissioner of Revenue Services shall return to 1308
the fiduciary or transferee the overpayment [which] that shall bear 1309
interest at the rate of two-thirds of one per cent per month or fraction 1310
thereof, such interest commencing, for the estates of decedents dying 1311
prior to July 1, 2009, from the expiration of nine months after the death 1312
of the transferor or date of payment, whichever is later, or, for the 1313
estates of decedents dying on or after July 1, 2009, but prior to January 1314
1, 2019, from the expiration of six months after the death of the 1315
transferor or date of payment, whichever is later, as provided in 1316
subparagraphs (B) and (C) of this subdivision. 1317
(B) In case of such overpayment pursuant to a tax return, no interest 1318
shall be allowed or paid under this subdivision on such overpayment 1319
for any month or fraction thereof prior to (i) the ninety-first day after 1320
the last day prescribed for filing the tax return associated with such 1321
overpayment, determined without regard to any extension of time for 1322
filing, or (ii) the ninety-first day after the date such return was filed, 1323
whichever is later. 1324
(C) In case of such overpayment pursuant to an amended tax return, 1325
no interest shall be allowed or paid under this subdivision on such 1326
overpayment for any month or fraction thereof prior to the ninety-first 1327
day after the date such amended tax return was filed. 1328
(b) (1) The tax imposed by this chapter shall be reported on a tax 1329
return which shall be filed on or before the date fixed for paying the 1330
tax, determined without regard to any extension of time for paying the 1331
tax. The commissioner shall design a form of return and forms for such 1332
additional statements or schedules as the commissioner may require to 1333
Raised Bill No. 7410
LCO No. 6787 54 of 88
be filed. Such forms shall provide for the setting forth of such facts as 1334
the commissioner deems necessary for the proper enforcement of this 1335
chapter. The commissioner shall furnish appropriate forms to each 1336
taxpayer upon application or otherwise as the commissioner deems 1337
necessary. Failure to receive a form shall not relieve any person from 1338
the obligation to file a return under the provisions of this chapter. In 1339
any case in which the commissioner believes that it would be 1340
advantageous to him or her in the administration of the tax imposed 1341
by this chapter, the commissioner may require that a true copy of the 1342
federal estate tax return made to the Internal Revenue Service be 1343
provided. 1344
(2) Any tax return or other document, including any amended tax 1345
return under section 12-398, that is required to be filed under this 1346
chapter shall be filed, and shall be treated as filed, only if filed with (A) 1347
the Commissioner of Revenue Services, if required under subdivision 1348
(3) of this subsection, and (B) (i) the court of probate for the district 1349
within which the decedent resided at the date of his or her death, or, 1350
(ii) if the decedent died a nonresident of this state, in the court of 1351
probate for the district within which real estate or tangible personal 1352
property of the decedent is situated. The return shall contain a 1353
statement, to be signed under penalty of false statement by the person 1354
who is required to make and file the return under this chapter, that the 1355
return has been filed with the Commissioner of Revenue Services, if 1356
required under subdivision (3) of this subsection, and the appropriate 1357
court of probate. 1358
(3) (A) A tax return shall be filed, in the case of every decedent who 1359
died prior to January 1, 2005, and at the time of death was (i) a resident 1360
of this state, or (ii) a nonresident of this state whose gross estate 1361
includes any real property situated in this state or tangible personal 1362
property having an actual situs in this state, whenever the personal 1363
representative of the estate is required by the laws of the United States 1364
to file a federal estate tax return. 1365
Raised Bill No. 7410
LCO No. 6787 55 of 88
(B) A tax return shall be filed, in the case of every decedent who dies 1366
on or after January 1, 2005, but prior to January 1, 2010, and at the time 1367
of death was (i) a resident of this state, or (ii) a nonresident of this state 1368
whose gross estate includes any real property situated in this state or 1369
tangible personal property having an actual situs in this state. If the 1370
decedent's Connecticut taxable estate is over two million dollars, such 1371
tax return shall be filed with the Commissioner of Revenue Services 1372
and a copy of such return shall be filed with the court of probate for 1373
the district within which the decedent resided at the date of his or her 1374
death or, if the decedent died a nonresident of this state, the court of 1375
probate for the district within which such real property or tangible 1376
personal property is situated. If the decedent's Connecticut taxable 1377
estate is two million dollars or less, such return shall be filed with the 1378
court of probate for the district within which the decedent resided at 1379
the date of his or her death or, if the decedent died a nonresident of 1380
this state, the court of probate for the district within which such real 1381
property or tangible personal property is situated, and no such return 1382
shall be filed with the Commissioner of Revenue Services. The judge of 1383
probate for the district in which such return is filed shall review each 1384
such return and shall issue a written opinion to the estate 1385
representative in each case in which the judge determines that the 1386
estate is not subject to tax under this chapter. 1387
(C) A tax return shall be filed, in the case of every decedent who 1388
dies on or after January 1, 2010, but prior to January 1, 2011, and at the 1389
time of death was (i) a resident of this state, or (ii) a nonresident of this 1390
state whose gross estate includes any real property situated in this 1391
state or tangible personal property having an actual situs in this state. 1392
If the decedent's Connecticut taxable estate is over three million five 1393
hundred thousand dollars, such tax return shall be filed with the 1394
Commissioner of Revenue Services and a copy of such return shall be 1395
filed with the court of probate for the district within which the 1396
decedent resided at the date of his or her death or, if the decedent died 1397
a nonresident of this state, the court of probate for the district within 1398
Raised Bill No. 7410
LCO No. 6787 56 of 88
which such real property or tangible personal property is situated. If 1399
the decedent's Connecticut taxable estate is three million five hundred 1400
thousand dollars or less, such return shall be filed with the court of 1401
probate for the district within which the decedent resided at the date 1402
of his or her death or, if the decedent died a nonresident of this state, 1403
the court of probate for the district within which such real property or 1404
tangible personal property is situated, and no such return shall be filed 1405
with the Commissioner of Revenue Services. The judge of probate for 1406
the district in which such return is filed shall review each such return 1407
and shall issue a written opinion to the estate representative in each 1408
case in which the judge determines that the estate is not subject to tax 1409
under this chapter. 1410
(D) A tax return shall be filed, in the case of every decedent who 1411
dies on or after January 1, 2011, but prior to January 1, 2018, and at the 1412
time of death was (i) a resident of this state, or (ii) a nonresident of this 1413
state whose gross estate includes any real property situated in this 1414
state or tangible personal property having an actual situs in this state. 1415
If the decedent's Connecticut taxable estate is over two million dollars, 1416
such tax return shall be filed with the Commissioner of Revenue 1417
Services and a copy of such return shall be filed with the court of 1418
probate for the district within which the decedent resided at the date 1419
of his or her death or, if the decedent died a nonresident of this state, 1420
the court of probate for the district within which such real property or 1421
tangible personal property is situated. If the decedent's Connecticut 1422
taxable estate is two million dollars or less, such return shall be filed 1423
with the court of probate for the district within which the decedent 1424
resided at the date of his or her death or, if the decedent died a 1425
nonresident of this state, the court of probate for the district within 1426
which such real property or tangible personal property is situated, and 1427
no such return shall be filed with the Commissioner of Revenue 1428
Services. The judge of probate for the district in which such return is 1429
filed shall review each such return and shall issue a written opinion to 1430
the estate representative in each case in which the judge determines 1431
Raised Bill No. 7410
LCO No. 6787 57 of 88
that the estate is not subject to tax under this chapter. 1432
(E) A tax return shall be filed, in the case of every decedent who dies 1433
on or after January 1, 2018, but prior to January 1, 2019, and at the time 1434
of death was (i) a resident of this state, or (ii) a nonresident of this state 1435
whose gross estate includes any real property situated in this state or 1436
tangible personal property having an actual situs in this state. If the 1437
decedent's Connecticut taxable estate is over two million six hundred 1438
thousand dollars, such tax return shall be filed with the Commissioner 1439
of Revenue Services and a copy of such return shall be filed with the 1440
court of probate for the district within which the decedent resided at 1441
the date of his or her death or, if the decedent died a nonresident of 1442
this state, the court of probate for the district within which such real 1443
property or tangible personal property is situated. If the decedent's 1444
Connecticut taxable estate is two million six hundred thousand dollars 1445
or less, such return shall be filed with the court of probate for the 1446
district within which the decedent resided at the date of his or her 1447
death or, if the decedent died a nonresident of this state, the court of 1448
probate for the district within which such real property or tangible 1449
personal property is situated, and no such return shall be filed with the 1450
Commissioner of Revenue Services. The judge of probate for the 1451
district in which such return is filed shall review each such return and 1452
shall issue a written opinion to the estate representative in each case in 1453
which the judge determines that the estate is not subject to tax under 1454
this chapter. 1455
[(F) A tax return shall be filed, in the case of every decedent who 1456
dies on or after January 1, 2019, but prior to January 1, 2020, and at the 1457
time of death was (i) a resident of this state, or (ii) a nonresident of this 1458
state whose gross estate includes any real property situated in this 1459
state or tangible personal property having an actual situs in this state. 1460
If the decedent's Connecticut taxable estate is over three million six 1461
hundred thousand dollars, such tax return shall be filed with the 1462
Commissioner of Revenue Services and a copy of such return shall be 1463
filed with the court of probate for the district within which the 1464
Raised Bill No. 7410
LCO No. 6787 58 of 88
decedent resided at the date of his or her death or, if the decedent died 1465
a nonresident of this state, the court of probate for the district within 1466
which such real property or tangible personal property is situated. If 1467
the decedent's Connecticut taxable estate is three million six hundred 1468
thousand dollars or less, such return shall be filed with the court of 1469
probate for the district within which the decedent resided at the date 1470
of his or her death or, if the decedent died a nonresident of this state, 1471
the court of probate for the district within which such real property or 1472
tangible personal property is situated, and no such return shall be filed 1473
with the Commissioner of Revenue Services. The judge of probate for 1474
the district in which such return is filed shall review each such return 1475
and shall issue a written opinion to the estate representative in each 1476
case in which the judge determines that the estate is not subject to tax 1477
under this chapter. 1478
(G) A tax return shall be filed, in the case of every decedent who 1479
dies on or after January 1, 2020, but prior to January 1, 2021, and at the 1480
time of death was (i) a resident of this state, or (ii) a nonresident of this 1481
state whose gross estate includes any real property situated in this 1482
state or tangible personal property having an actual situs in this state. 1483
If the decedent's Connecticut taxable estate is over five million one 1484
hundred thousand dollars, such tax return shall be filed with the 1485
Commissioner of Revenue Services and a copy of such return shall be 1486
filed with the court of probate for the district within which the 1487
decedent resided at the date of his or her death or, if the decedent died 1488
a nonresident of this state, the court of probate for the district within 1489
which such real property or tangible personal property is situated. If 1490
the decedent's Connecticut taxable estate is five million one hundred 1491
thousand dollars or less, such return shall be filed with the court of 1492
probate for the district within which the decedent resided at the date 1493
of his or her death or, if the decedent died a nonresident of this state, 1494
the court of probate for the district within which such real property or 1495
tangible personal property is situated, and no such return shall be filed 1496
with the Commissioner of Revenue Services. The judge of probate for 1497
Raised Bill No. 7410
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the district in which such return is filed shall review each such return 1498
and shall issue a written opinion to the estate representative in each 1499
case in which the judge determines that the estate is not subject to tax 1500
under this chapter. 1501
(H) A tax return shall be filed, in the case of every decedent who 1502
dies on or after January 1, 2021, but prior to January 1, 2022, and at the 1503
time of death was (i) a resident of this state, or (ii) a nonresident of this 1504
state whose gross estate includes any real property situated in this 1505
state or tangible personal property having an actual situs in this state. 1506
If the decedent's Connecticut taxable estate is over seven million one 1507
hundred thousand dollars, such tax return shall be filed with the 1508
Commissioner of Revenue Services and a copy of such return shall be 1509
filed with the court of probate for the district within which the 1510
decedent resided at the date of his or her death or, if the decedent died 1511
a nonresident of this state, the court of probate for the district within 1512
which such real property or tangible personal property is situated. If 1513
the decedent's Connecticut taxable estate is seven million one hundred 1514
thousand dollars or less, such return shall be filed with the court of 1515
probate for the district within which the decedent resided at the date 1516
of his or her death or, if the decedent died a nonresident of this state, 1517
the court of probate for the district within which such real property or 1518
tangible personal property is situated, and no such return shall be filed 1519
with the Commissioner of Revenue Services. The judge of probate for 1520
the district in which such return is filed shall review each such return 1521
and shall issue a written opinion to the estate representative in each 1522
case in which the judge determines that the estate is not subject to tax 1523
under this chapter. 1524
(I) A tax return shall be filed, in the case of every decedent who dies 1525
on or after January 1, 2022, but prior to January 1, 2023, and at the time 1526
of death was (i) a resident of this state, or (ii) a nonresident of this state 1527
whose gross estate includes any real property situated in this state or 1528
tangible personal property having an actual situs in this state. If the 1529
decedent's Connecticut taxable estate is over nine million one hundred 1530
Raised Bill No. 7410
LCO No. 6787 60 of 88
thousand dollars, such tax return shall be filed with the Commissioner 1531
of Revenue Services and a copy of such return shall be filed with the 1532
court of probate for the district within which the decedent resided at 1533
the date of his or her death or, if the decedent died a nonresident of 1534
this state, the court of probate for the district within which such real 1535
property or tangible personal property is situated. If the decedent's 1536
Connecticut taxable estate is nine million one hundred thousand 1537
dollars or less, such return shall be filed with the court of probate for 1538
the district within which the decedent resided at the date of his or her 1539
death or, if the decedent died a nonresident of this state, the court of 1540
probate for the district within which such real property or tangible 1541
personal property is situated, and no such return shall be filed with the 1542
Commissioner of Revenue Services. The judge of probate for the 1543
district in which such return is filed shall review each such return and 1544
shall issue a written opinion to the estate representative in each case in 1545
which the judge determines that the estate is not subject to tax under 1546
this chapter. 1547
(J) A tax return shall be filed, in the case of every decedent who dies 1548
on or after January 1, 2023, and at the time of death was (i) a resident 1549
of this state, or (ii) a nonresident of this state whose gross estate 1550
includes any real property situated in this state or tangible personal 1551
property having an actual situs in this state. If the decedent's 1552
Connecticut taxable estate is over five million four hundred ninety 1553
thousand dollars, such tax return shall be filed with the Commissioner 1554
of Revenue Services and a copy of such return shall be filed with the 1555
court of probate for the district within which the decedent resided at 1556
the date of his or her death or, if the decedent died a nonresident of 1557
this state, the court of probate for the district within which such real 1558
property or tangible personal property is situated. If the decedent's 1559
Connecticut taxable estate is equal to or less than five million four 1560
hundred ninety thousand dollars, such return shall be filed with the 1561
court of probate for the district within which the decedent resided at 1562
the date of his or her death or, if the decedent died a nonresident of 1563
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this state, the court of probate for the district within which such real 1564
property or tangible personal property is situated, and no such return 1565
shall be filed with the Commissioner of Revenue Services. The judge of 1566
probate for the district in which such return is filed shall review each 1567
such return and shall issue a written opinion to the estate 1568
representative in each case in which the judge determines that the 1569
estate is not subject to tax under this chapter.] 1570
(4) The duly authorized executor or administrator shall file the 1571
return. If there is more than one executor or administrator, the return 1572
shall be made jointly by all. If there is no executor or administrator 1573
appointed, qualified and acting, each person in actual or constructive 1574
possession of any property of the decedent is constituted an executor 1575
for purposes of the tax and shall make and file a return. If in any case 1576
the executor is unable to make a complete return as to any part of the 1577
gross estate, the executor shall provide all the information available to 1578
him or her with respect to such property, including a full description, 1579
and the name of every person holding a legal or beneficial interest in 1580
the property. If the executor is unable to make a return as to any 1581
property, each person holding a legal or equitable interest in such 1582
property shall, upon notice from the commissioner, make a return as to 1583
that part of the gross estate. 1584
(5) On or before the last day of the month next succeeding each 1585
calendar quarter, and commencing with the calendar quarter ending 1586
September 30, 2005, each court of probate shall file with the 1587
commissioner a report for the calendar quarter in such form as the 1588
commissioner may prescribe. The report shall pertain to returns filed 1589
with the court of probate during the calendar quarter. 1590
(6) The Commissioner of Revenue Services may, for reasonable 1591
cause shown, extend the time for filing the return. 1592
(7) If any person required to make and file the tax return under this 1593
chapter fails to file the return within the time prescribed, the 1594
Raised Bill No. 7410
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commissioner may assess and compute the tax upon the best 1595
information obtainable. To the tax imposed upon the basis of such 1596
return, there shall be added an amount equal to ten per cent of such 1597
tax or fifty dollars, whichever is greater. The tax shall bear interest at 1598
the rate of one per cent per month or fraction thereof from the due date 1599
of such tax until the date of payment. 1600
(8) The commissioner shall provide notice of any (A) deficiency 1601
assessment with respect to the payment of any tax under this chapter, 1602
(B) assessment with respect to any failure to make and file a return 1603
under this chapter by a person required to file, and (C) tax return or 1604
other document, including any amended tax return under section 12-1605
398 that is required to be filed under this chapter to the court of 1606
probate for the district within which the commissioner contends that 1607
the decedent resided at the date of his or her death or, if the decedent 1608
died a nonresident of this state, to the court of probate for the district 1609
within which the commissioner contends that real estate or tangible 1610
personal property of the decedent is situated. 1611
(c) No person shall be subject to a penalty under both subsections 1612
(a) and (b) of this section in relation to the same tax period. 1613
Sec. 20. Subsection (b) of section 45a-107 of the general statutes is 1614
repealed and the following is substituted in lieu thereof (Effective from 1615
passage): 1616
(b) In the case of a decedent who dies on or after July 1, 2016, and 1617
prior to January 1, 2019, fees shall be computed as follows: 1618
(1) The basis for fees shall be (A) the greatest of (i) the gross estate 1619
for succession tax purposes, as provided in section 12-349, (ii) the 1620
inventory, including all supplements thereto, (iii) the Connecticut 1621
taxable estate, as defined in section 12-391, as amended by this act, or 1622
(iv) the gross estate for estate tax purposes, as provided in chapters 217 1623
and 218, except as provided in subdivisions (5) and (6) of this 1624
subsection, plus (B) all damages recovered for injuries resulting in 1625
Raised Bill No. 7410
LCO No. 6787 63 of 88
death, minus any hospital and medical expenses for treatment of such 1626
injuries resulting in death, minus any hospital and medical expenses 1627
for treatment of such injuries that are not reimbursable by medical 1628
insurance, and minus the attorney's fees and other costs and expenses 1629
of recovering such damages. Any portion of the basis for fees that is 1630
determined by property passing to the surviving spouse shall be 1631
reduced by fifty per cent. Except as provided in subdivisions (3) and 1632
(4) of this subsection, in no case shall the minimum fee be less than 1633
twenty-five dollars. 1634
(2) Except as provided in subdivisions (3) and (4) of this subsection, 1635
fees shall be assessed in accordance with the following table: 1636
T311 Basis for Computation Total Fee
T312 Of Fees
T313 0 to $500 $25
T314 $501 to $1,000 $50
T315 $1,000 to $10,000 $50, plus 1% of all
T316 in excess of $1,000
T317 $10,000 to $500,000 $150, plus .35% of all
T318 in excess of $10,000
T319 $500,000 to $2,000,000 $1,865, plus .25% of all
T320 in excess of $500,000
T321 $2,000,000 to $8,877,000 $5,615, plus .5% of all
T322 in excess of $2,000,000
T323 $8,877,000 and over $40,000
(3) Notwithstanding the provisions of subdivision (1) of this 1637
subsection, if the basis for fees is less than ten thousand dollars and a 1638
full estate is opened, the minimum fee shall be one hundred fifty 1639
dollars. 1640
(4) In any matter in which the Commissioner of Administrative 1641
Services is the legal representative of the estate pursuant to section 4a-1642
16, the fee shall be the lesser of (A) the amount calculated under 1643
Raised Bill No. 7410
LCO No. 6787 64 of 88
subdivisions (1) and (2) of this subsection, or (B) the amount collected 1644
by the Commissioner of Administrative Services after paying the 1645
expense of funeral and burial in accordance with section 17b-84. 1646
(5) In the case of a deceased person who was domiciled in this state 1647
on the date of his or her death, the gross estate for estate tax purposes 1648
shall, for the purpose of determining the basis for fees pursuant to 1649
subdivision (1) of this subsection, be reduced by the fair market value 1650
of any real property or tangible personal property of the deceased 1651
person situated outside of this state. 1652
(6) In the case of a deceased person who was not domiciled in this 1653
state on the date of his or her death but who owned real property or 1654
tangible personal property situated in this state on the date of his or 1655
her death, only the fair market value of such real property or tangible 1656
personal property situated in this state shall be included in the basis 1657
for fees pursuant to subdivision (1) of this subsection. 1658
Sec. 21. Subdivision (79) of section 12-81 of the general statutes is 1659
repealed and the following is substituted in lieu thereof (Effective 1660
October 1, 2019, and applicable to assessment years commencing on or after 1661
October 1, 2019): 1662
(79) Tangible personal property with an original value of [not more 1663
than two hundred fifty] less than twenty-five thousand dollars that is 1664
owned by a business organization. [, provided this exemption shall not 1665
apply for the first ten full assessment years following the assessment 1666
year in which the property was acquired.] 1667
Sec. 22. Subsection (b) of section 12-284b of the general statutes is 1668
repealed and the following is substituted in lieu thereof (Effective from 1669
passage and applicable to taxable years commencing on or after January 1, 1670
2019): 1671
(b) Each limited liability company, limited liability partnership, 1672
limited partnership and S corporation shall be liable for the tax 1673
Raised Bill No. 7410
LCO No. 6787 65 of 88
imposed by this section for each taxable year or portion thereof that 1674
such company, partnership or corporation is an affected business 1675
entity. For taxable years commencing prior to January 1, 2013, each 1676
affected business entity shall annually, on or before the fifteenth day of 1677
the fourth month following the close of its taxable year, pay to the 1678
Commissioner of Revenue Services a tax in the amount of two 1679
hundred fifty dollars. For taxable years commencing on or after 1680
January 1, 2013, but prior to January 1, 2019, each affected business 1681
entity shall, on or before the fifteenth day of the fourth month 1682
following the close of every other taxable year, pay to the 1683
Commissioner of Revenue Services a tax in the amount of two 1684
hundred fifty dollars. 1685
Sec. 23. Subdivision (2) of subsection (e) of section 12-217jj of the 1686
general statutes is repealed and the following is substituted in lieu 1687
thereof (Effective from passage and applicable to taxable years commencing 1688
on or after January 1, 2019): 1689
(2) Notwithstanding the provisions of subdivision (1) of this 1690
subsection, any entity that is not subject to tax under this chapter or 1691
chapter 207 shall not be subject to the limitations on the transfer of 1692
credits provided in subparagraphs (B) and (C) of said subdivision (1), 1693
provided such entity owns not less than fifty per cent, directly or 1694
indirectly, of a business entity, [subject to tax under] as defined in 1695
section 12-284b, as amended by this act. 1696
Sec. 24. Subsection (a) of section 12-217zz of the general statutes is 1697
repealed and the following is substituted in lieu thereof (Effective from 1698
passage and applicable to income years commencing on or after January 1, 1699
2019): 1700
(a) Notwithstanding any other provision of law, and except as 1701
otherwise provided in subsection (b) of this section and sections 12-1702
217aaa and 12-217bbb, the amount of tax credit or credits otherwise 1703
allowable against the tax imposed under this chapter shall be as 1704
Raised Bill No. 7410
LCO No. 6787 66 of 88
follows: 1705
(1) For any income year commencing on or after January 1, 2002, 1706
and prior to January 1, 2015, the amount of tax credit or credits 1707
otherwise allowable shall not exceed seventy per cent of the amount of 1708
tax due from such taxpayer under this chapter with respect to any such 1709
income year of the taxpayer prior to the application of such credit or 1710
credits; 1711
(2) For any income year commencing on or after January 1, 2015, the 1712
amount of tax credit or credits otherwise allowable shall not exceed 1713
fifty and one one-hundredths per cent of the amount of tax due from 1714
such taxpayer under this chapter with respect to any such income year 1715
of the taxpayer prior to the application of such credit or credits; 1716
(3) Notwithstanding the provisions of subdivision (2) of this 1717
subsection, any taxpayer that possesses excess credits may utilize the 1718
excess credits as follows: 1719
(A) For income years commencing on or after January 1, 2016, and 1720
prior to January 1, 2017, the aggregate amount of tax credits and excess 1721
credits allowable shall not exceed fifty-five per cent of the amount of 1722
tax due from such taxpayer under this chapter with respect to any such 1723
income year of the taxpayer prior to the application of such credit or 1724
credits; 1725
(B) For income years commencing on or after January 1, 2017, and 1726
prior to January 1, 2018, the aggregate amount of tax credits and excess 1727
credits allowable shall not exceed sixty per cent of the amount of tax 1728
due from such taxpayer under this chapter with respect to any such 1729
income year of the taxpayer prior to the application of such credit or 1730
credits; and 1731
(C) For income years commencing on or after January 1, 2018, and 1732
prior to January 1, 2019, the aggregate amount of tax credits and excess 1733
credits allowable shall not exceed sixty-five per cent of the amount of 1734
Raised Bill No. 7410
LCO No. 6787 67 of 88
tax due from such taxpayer under this chapter with respect to any such 1735
income year of the taxpayer prior to the application of such credit or 1736
credits; 1737
[(D) For income years commencing on or after January 1, 2019, the 1738
aggregate amount of tax credits and excess credits allowable shall not 1739
exceed seventy per cent of the amount of tax due from such taxpayer 1740
under this chapter with respect to any such income year of the 1741
taxpayer prior to the application of such credit or credits;] 1742
(4) For purposes of this subsection, "excess credits" means any 1743
remaining credits available under section 12-217j, 12-217n or 32-9t after 1744
tax credits are utilized in accordance with subdivision (2) of this 1745
subsection. 1746
Sec. 25. (NEW) (Effective from passage and applicable to quarterly periods 1747
commencing on or after July 1, 2019) Notwithstanding any provision of 1748
the general statutes allowing for a higher amount, for any quarterly 1749
periods commencing on or after July 1, 2019, the amount of tax credit 1750
or credits allowable against the tax imposed under chapter 211 of the 1751
general statutes, shall not exceed fifty and one one-hundredths per 1752
cent of the amount of tax due from a taxpayer under such chapter with 1753
respect to any such quarterly period of the taxpayer prior to the 1754
application of such credit or credits. 1755
Sec. 26. (NEW) (Effective from passage and applicable to quarterly periods 1756
commencing on or after July 1, 2019) Notwithstanding any provision of 1757
the general statutes allowing for a higher amount, for any quarterly 1758
periods commencing on or after July 1, 2019, the amount of tax credit 1759
or credits allowable against the tax imposed under chapter 212 of the 1760
general statutes, shall not exceed fifty and one one-hundredths per 1761
cent of the amount of tax due from a taxpayer under such chapter with 1762
respect to any such quarterly period of the taxpayer prior to the 1763
application of such credit or credits. 1764
Sec. 27. (NEW) (Effective from passage and applicable to quarterly periods 1765
Raised Bill No. 7410
LCO No. 6787 68 of 88
commencing on or after July 1, 2019) Notwithstanding any provision of 1766
the general statutes allowing for a higher amount, for any quarterly 1767
periods commencing on or after July 1, 2019, the amount of tax credit 1768
or credits allowable against the tax imposed under chapter 227 of the 1769
general statutes, shall not exceed fifty and one one-hundredths per 1770
cent of the amount of tax due from a taxpayer under such chapter with 1771
respect to any such quarterly period of the taxpayer prior to the 1772
application of such credit or credits. 1773
Sec. 28. Subsection (a) of section 12-217 of the general statutes is 1774
repealed and the following is substituted in lieu thereof (Effective July 1775
1, 2019): 1776
(a) (1) In arriving at net income as defined in section 12-213, whether 1777
or not the taxpayer is taxable under the federal corporation net income 1778
tax, there shall be deducted from gross income: [,] 1779
(A) [all] All items deductible under the Internal Revenue Code 1780
effective and in force on the last day of the income year, except (i) any 1781
taxes imposed under the provisions of this chapter [which] that are 1782
paid or accrued in the income year and in the income year 1783
commencing January 1, 1989, and thereafter, any taxes in any state of 1784
the United States or any political subdivision of such state, or the 1785
District of Columbia, imposed on or measured by the income or profits 1786
of a corporation [which] that are paid or accrued in the income year, 1787
(ii) deductions for depreciation, which shall be allowed as provided in 1788
subsection (b) of this section, (iii) deductions for qualified domestic 1789
production activities income, as provided in Section 199 of the Internal 1790
Revenue Code, and (iv) in the case of any captive real estate 1791
investment trust, the deduction for dividends paid provided under 1792
Section 857(b)(2) of the Internal Revenue Code; [,] and 1793
(B) [additionally,] Additionally, in the case of a regulated 1794
investment company, the sum of (i) the exempt-interest dividends, as 1795
defined in the Internal Revenue Code, and (ii) expenses, bond 1796
Raised Bill No. 7410
LCO No. 6787 69 of 88
premium, and interest related to tax-exempt income that are 1797
disallowed as deductions under the Internal Revenue Code; [,] and 1798
(C) [in] In the case of a taxpayer maintaining an international 1799
banking facility as defined in the laws of the United States or the 1800
regulations of the Board of Governors of the Federal Reserve System, 1801
as either may be amended from time to time, the gross income 1802
attributable to the international banking facility, provided, no expense 1803
or loss attributable to the international banking facility shall be a 1804
deduction under any provision of this section; [,] and 1805
(D) [additionally,] Additionally, in the case of all taxpayers, all 1806
dividends as defined in the Internal Revenue Code effective and in 1807
force on the last day of the income year not otherwise deducted from 1808
gross income, including dividends received from a DISC or former 1809
DISC as defined in Section 992 of the Internal Revenue Code and 1810
dividends deemed to have been distributed by a DISC or former DISC 1811
as provided in Section 995 of said Internal Revenue Code, other than 1812
thirty per cent of dividends received from a domestic corporation in 1813
which the taxpayer owns less than twenty per cent of the total voting 1814
power and value of the stock of such corporation; [,] and 1815
(E) [additionally,] Additionally, in the case of all taxpayers, the 1816
value of any capital gain realized from the sale of any land, or interest 1817
in land, to the state, any political subdivision of the state, or to any 1818
nonprofit land conservation organization where such land is to be 1819
permanently preserved as protected open space or to a water 1820
company, as defined in section 25-32a, where such land is to be 1821
permanently preserved as protected open space or as Class I or Class II 1822
water company land; [,] and 1823
(F) [in] In the case of manufacturers, the amount of any contribution 1824
to a manufacturing reinvestment account established pursuant to 1825
section 32-9zz in the income year that such contribution is made to the 1826
extent not deductible for federal income tax purposes; [,] and 1827
Raised Bill No. 7410
LCO No. 6787 70 of 88
(G) [additionally,] Additionally, to the extent allowable under 1828
subsection (g) of section 32-776, the amount paid by a 7/7 participant, 1829
as defined in section 32-776, for the remediation of a brownfield; [,] 1830
and 1831
(H) [the] The amount of any contribution made on or after 1832
December 23, 2017, by the state of Connecticut or a political 1833
subdivision thereof to the extent included in a company's gross income 1834
under Section 118(b)(2) of the Internal Revenue Code. 1835
(2) (A) No deduction shall be allowed for (i) expenses related to 1836
dividends that are allowable as a deduction or credit under the 1837
Internal Revenue Code, and (ii) federal taxes on income or profits, 1838
losses of other calendar or fiscal years, retroactive to include all 1839
calendar or fiscal years beginning after January 1, 1935, interest 1840
received from federal, state and local government securities, if any 1841
such deductions are allowed by the federal government. 1842
(B) For purposes of this subdivision, expenses related to dividends 1843
shall equal five per cent of all dividends received by a company during 1844
an income year. The net income associated with the disallowance of 1845
expenses related to dividends shall be apportioned, if the company 1846
conducts business within and without the state or is required to 1847
apportion its income under section 12-218b, in accordance with this 1848
chapter. 1849
(3) Notwithstanding any provision of this section to the contrary, no 1850
dividend received from a real estate investment trust shall be 1851
deductible under this section by the recipient unless the dividend is: 1852
(A) Deductible under Section 243 of the Internal Revenue Code; 1853
(B) [received] Received by a qualified dividend recipient from a 1854
qualified real estate investment trust and, as of the last day of the 1855
period for which such dividend is paid, persons, not including the 1856
qualified dividend recipient or any person that is either a related 1857
Raised Bill No. 7410
LCO No. 6787 71 of 88
person to, or an employee or director of, the qualified dividend 1858
recipient, have outstanding cash capital contributions to the qualified 1859
real estate investment trust that, in the aggregate, exceed five per cent 1860
of the fair market value of the aggregate real estate assets, valued as of 1861
the last day of the period for which such dividend is paid, then held by 1862
the qualified real estate investment trust; or 1863
(C) [received] Received from a captive real estate investment trust 1864
that is subject to the tax imposed under this chapter. For purposes of 1865
this section, a "related person" is as defined in subdivision (7) of 1866
subsection (a) of section 12-217m, "real estate assets" is as defined in 1867
Section 856 of the Internal Revenue Code, a "qualified dividend 1868
recipient" means a dividend recipient who has invested in a qualified 1869
real estate investment trust prior to April 1, 1997, and a "qualified real 1870
estate investment trust" means an entity that both was incorporated 1871
and had contributed to it a minimum of five hundred million dollars' 1872
worth of real estate assets prior to April 1, 1997, and that elects to be a 1873
real estate investment trust under Section 856 of the Internal Revenue 1874
Code prior to April 1, 1998. 1875
(4) Notwithstanding any provision of this section to the contrary: [,] 1876
(A) [any] Any excess of the deductions provided in this section for 1877
any income year commencing on or after January 1, 1973, over the 1878
gross income for such year or the amount of such excess apportioned 1879
to this state under the provisions of this chapter, shall be an operating 1880
loss of such income year and shall be deductible as an operating loss 1881
carry-over for operating losses incurred prior to income years 1882
commencing January 1, 2000, in each of the five income years 1883
following such loss year, and for operating losses incurred in income 1884
years commencing on or after January 1, 2000, in each of the twenty 1885
income years following such loss year, except that; 1886
(i) [for] For income years commencing prior to January 1, 2015, the 1887
portion of such operating loss [which] that may be deducted as an 1888
Raised Bill No. 7410
LCO No. 6787 72 of 88
operating loss carry-over in any income year following such loss year 1889
shall be limited to the lesser of (I) any net income greater than zero of 1890
such income year following such loss year, or in the case of a company 1891
entitled to apportion its net income under the provisions of this 1892
chapter, the amount of such net income [which] that is apportioned to 1893
this state pursuant thereto, or (II) the excess, if any, of such operating 1894
loss over the total of such net income for each of any prior income 1895
years following such loss year, such net income of each of such prior 1896
income years following such loss year for such purposes being 1897
computed without regard to any operating loss carry-over from such 1898
loss year allowed under this subparagraph and being regarded as not 1899
less than zero, and provided further the operating loss of any income 1900
year shall be deducted in any subsequent year, to the extent available 1901
for such deduction, before the operating loss of any subsequent income 1902
year is deducted; [,] 1903
(ii) [for] For income years commencing on or after January 1, 2015, 1904
but prior to January 1, 2020, the portion of such operating loss [which] 1905
that may be deducted as an operating loss carry-over in any income 1906
year following such loss year shall be limited to the lesser of (I) fifty 1907
per cent of net income of such income year following such loss year, or 1908
in the case of a company entitled to apportion its net income under the 1909
provisions of this chapter, fifty per cent of such net income [which] 1910
that is apportioned to this state pursuant thereto, or (II) the excess, if 1911
any, of such operating loss over the operating loss deductions 1912
allowable with respect to such operating loss under this subparagraph 1913
for each of any prior income years following such loss year, such net 1914
income of each of such prior income years following such loss year for 1915
such purposes being computed without regard to any operating loss 1916
carry-over from such loss year allowed under this subparagraph and 1917
being regarded as not less than zero, and provided further the 1918
operating loss of any income year shall be deducted in any subsequent 1919
year, to the extent available for such deduction, before the operating 1920
loss of any subsequent income year is deducted; [,] and 1921
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(iii) For income years commencing on or after January 1, 2020, the 1922
portion of such operating loss that may be deducted as an operating 1923
loss carry-over in any income year following such loss year shall be the 1924
amount allowed under Section 172 of the Internal Revenue Code. 1925
[(iii) if] (iv) If a combined group so elects, the combined group shall 1926
relinquish fifty per cent of its unused operating losses incurred prior to 1927
the income year commencing on or after January 1, 2015, and before 1928
January 1, 2016, and may utilize the remaining operating loss carry-1929
over without regard to the limitations prescribed in subparagraph 1930
(A)(ii) of this subdivision. The portion of such operating loss carry-1931
over that may be deducted shall be limited to the amount required to 1932
reduce a combined group's tax under this chapter, prior to surtax and 1933
prior to the application of credits, to two million five hundred 1934
thousand dollars in any income year commencing on or after January 1935
1, 2015. Only after the combined group's remaining operating loss 1936
carry-over for operating losses incurred prior to income years 1937
commencing January 1, 2015, has been fully utilized, will the 1938
limitations prescribed in subparagraph (A)(ii) of this subdivision 1939
apply. The combined group, or any member thereof, shall make such 1940
election on its return for the income year beginning on or after January 1941
1, 2015, and before January 1, 2016, by the due date for such return, 1942
including any extensions. Only combined groups with unused 1943
operating losses in excess of six billion dollars from income years 1944
beginning prior to January 1, 2013, may make the election prescribed 1945
in this clause; [,] and 1946
(B) [any] Any net capital loss, as defined in the Internal Revenue 1947
Code effective and in force on the last day of the income year, for any 1948
income year commencing on or after January 1, 1973, shall be allowed 1949
as a capital loss carry-over to reduce, but not below zero, any net 1950
capital gain, as so defined, in each of the five following income years, 1951
in order of sequence, to the extent not exhausted by the net capital gain 1952
of any of the preceding of such five following income years; [,] and 1953
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(C) [any] Any net capital losses allowed and carried forward from 1954
prior years to income years beginning on or after January 1, 1973, for 1955
federal income tax purposes by companies entitled to a deduction for 1956
dividends paid under the Internal Revenue Code other than 1957
companies subject to the gross earnings taxes imposed under chapters 1958
211 and 212, shall be allowed as a capital loss carry-over. 1959
(5) This section shall not apply to a life insurance company as 1960
defined in the Internal Revenue Code effective and in force on the last 1961
day of the income year. For purposes of this section, the unpaid loss 1962
reserve adjustment required for nonlife insurance companies under the 1963
provisions of Section 832(b)(5) of the Internal Revenue Code of 1986 [, 1964
or any subsequent corresponding internal revenue code of the United 1965
States, as from time to time amended,] shall be applied without 1966
making the adjustment in Subparagraph (B) of said Section 832(b)(5). 1967
(6) For purposes of determining net income under this section for 1968
income years commencing on or after January 1, 2018, the deduction 1969
allowed for business interest paid or accrued shall be determined as 1970
provided under the Internal Revenue Code, except that in making such 1971
determination, the provisions of Section 163(j) of said code shall not 1972
apply. 1973
Sec. 29. Section 12-219 of the general statutes is repealed and the 1974
following is substituted in lieu thereof (Effective from passage): 1975
(a) (1) Each company subject to the provisions of this part shall pay 1976
for the privilege of carrying on or doing business within the state, (A) 1977
(i) for income years commencing prior to January 1, 2020, the larger of 1978
the tax, if any, imposed by section 12-214 and the tax calculated under 1979
this subsection, and (B) for income years commencing on or after 1980
January 1, 2020, the tax imposed by section 12-214. The tax calculated 1981
under this section shall be a tax of three and one-tenth mills per dollar 1982
for each income year of the amount derived [(A)] (i) by adding [(i)] (I) 1983
the average value of the issued and outstanding capital stock, 1984
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including treasury stock at par or face value, fractional shares, scrip 1985
certificates convertible into shares of stock and amounts received on 1986
subscriptions to capital stock, computed on the balances at the 1987
beginning and end of the taxable year or period, the average value of 1988
surplus and undivided profit computed on the balances at the 1989
beginning and end of the taxable year or period, and [(ii)] (II) the 1990
average value of all surplus reserves computed on the balances at the 1991
beginning and end of the taxable year or period, [(B)] (ii) by 1992
subtracting from the sum so calculated [(i)] (I) the average value of any 1993
deficit carried on the balance sheet computed on the balances at the 1994
beginning and end of the taxable year or period, and [(ii)] (II) the 1995
average value of any holdings of stock of private corporations 1996
including treasury stock shown on the balance sheet computed on the 1997
balances at the beginning and end of the taxable year or period, and 1998
[(C)] (iii) by apportioning the remainder so derived between this and 1999
other states under the provisions of section 12-219a, provided in no 2000
event shall the tax so calculated exceed one million dollars or be less 2001
than two hundred fifty dollars. 2002
(2) For purposes of this subsection, in the case of a new domestic 2003
company, the balances at the beginning of its first fiscal year or period 2004
shall be the balances immediately after its organization or immediately 2005
after it commences business operations, whichever is earlier; and in the 2006
case of a foreign company, the balances at the beginning of its first 2007
fiscal year or period in which it becomes liable for the filing of a return 2008
in this state shall be the balances as established at the beginning of the 2009
fiscal year or period for tax purposes. In the case of a domestic 2010
company dissolving or limiting its existence, the balances at the end of 2011
the fiscal year or period shall be the balances immediately prior to the 2012
final distribution of all its assets; and in the case of a foreign company 2013
filing a certificate of withdrawal, the balances at the end of the fiscal 2014
year or period shall be the balances immediately prior to the 2015
withdrawal of all of its assets. When a taxpayer has carried on or had 2016
the right to carry on business within the state for eleven months or less 2017
Raised Bill No. 7410
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of the income year, the tax calculated under this subsection shall be 2018
reduced in proportion to the fractional part of the year during which 2019
business was carried on by such taxpayer. The tax calculated under 2020
this subsection shall, in no case, be less than two hundred fifty dollars 2021
for each income year. The taxpayer shall report the items set forth in 2022
this subsection at the amounts at which such items appear upon its 2023
books; provided, when, in the opinion of the Commissioner of 2024
Revenue Services, the books of the taxpayer do not disclose a 2025
reasonable valuation of such items, the commissioner may require any 2026
additional information which may be necessary for a reasonable 2027
determination of the tax calculated under this subsection and shall, on 2028
the basis of the best information available, calculate such tax and notify 2029
the taxpayer thereof. 2030
(3) No tax credit allowed against the tax imposed by this chapter 2031
shall reduce a company's tax calculated under this subsection to an 2032
amount less than two hundred fifty dollars. 2033
(b) (1) With respect to income years commencing on or after January 2034
1, 1989, and prior to January 1, 1992, the additional tax imposed on any 2035
company and calculated in accordance with subsection (a) of this 2036
section shall, for each such income year, except when the tax so 2037
calculated is equal to two hundred fifty dollars, be increased by adding 2038
thereto an amount equal to twenty per cent of the additional tax so 2039
calculated for such income year, without reduction of the additional 2040
tax so calculated by the amount of any credit against such tax. The 2041
increased amount of tax payable by any company under this section, 2042
as determined in accordance with this subsection, shall become due 2043
and be paid, collected and enforced as provided in this chapter. 2044
(2) With respect to income years commencing on or after January 1, 2045
1992, and prior to January 1, 1993, the additional tax imposed on any 2046
company and calculated in accordance with subsection (a) of this 2047
section shall, for each such income year, except when the tax so 2048
calculated is equal to two hundred fifty dollars, be increased by adding 2049
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thereto an amount equal to ten per cent of the additional tax so 2050
calculated for such income year, without reduction of the tax so 2051
calculated by the amount of any credit against such tax. The increased 2052
amount of tax payable by any company under this section, as 2053
determined in accordance with this subsection, shall become due and 2054
be paid, collected and enforced as provided in this chapter. 2055
(3) With respect to income years commencing on or after January 1, 2056
2003, and prior to January 1, 2004, the additional tax imposed on any 2057
company and calculated in accordance with subsection (a) of this 2058
section shall, for each such income year, be increased by adding 2059
thereto an amount equal to twenty per cent of the additional tax so 2060
calculated for such income year, without reduction of the tax so 2061
calculated by the amount of any credit against such tax. The increased 2062
amount of tax payable by any company under this section, as 2063
determined in accordance with this subsection, shall become due and 2064
be paid, collected and enforced as provided in this chapter. 2065
(4) With respect to income years commencing on or after January 1, 2066
2004, and prior to January 1, 2005, the additional tax imposed on any 2067
company and calculated in accordance with subsection (a) of this 2068
section shall, for each such income year, be increased by adding 2069
thereto an amount equal to twenty-five per cent of the additional tax so 2070
calculated for such income year, without reduction of the tax so 2071
calculated by the amount of any credit against such tax, except that 2072
any company that pays the minimum tax of two hundred fifty dollars 2073
under this section or section 12-223c, as amended by this act, for such 2074
income year shall not be subject to such additional tax. The increased 2075
amount of tax payable by any company under this subdivision, as 2076
determined in accordance with this subsection, shall become due and 2077
be paid, collected and enforced as provided in this chapter. 2078
(5) With respect to income years commencing on or after January 1, 2079
2006, and prior to January 1, 2007, the additional tax imposed on any 2080
company and calculated in accordance with subsection (a) of this 2081
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section shall, for each such income year, except when the tax so 2082
calculated is equal to two hundred fifty dollars, be increased by adding 2083
thereto an amount equal to twenty per cent of the additional tax so 2084
calculated for such income year, without reduction of the tax so 2085
calculated by the amount of any credit against such tax. The increased 2086
amount of tax payable by any company under this section, as 2087
determined in accordance with this subsection, shall become due and 2088
be paid, collected and enforced as provided in this chapter. 2089
(6) (A) With respect to income years commencing on or after 2090
January 1, 2009, and prior to January 1, 2012, the additional tax 2091
imposed on any company and calculated in accordance with 2092
subsection (a) of this section shall, for each such income year, except 2093
when the tax so calculated is equal to two hundred fifty dollars, be 2094
increased by adding thereto an amount equal to ten per cent of the 2095
additional tax so calculated for such income year, without reduction of 2096
the tax so calculated by the amount of any credit against such tax. The 2097
increased amount of tax payable by any company under this section, 2098
as determined in accordance with this subsection, shall become due 2099
and be paid, collected and enforced as provided in this chapter. 2100
(B) Any company whose gross income for the income year was less 2101
than one hundred million dollars shall not be subject to the additional 2102
tax imposed under subparagraph (A) of this subdivision. This 2103
exception shall not apply to companies filing a combined return for the 2104
income year under section 12-223a or a unitary return under 2105
subsection (d) of section 12-218d. 2106
(7) (A) With respect to income years commencing on or after 2107
January 1, 2012, and prior to January 1, 2018, the additional tax 2108
imposed on any company and calculated in accordance with 2109
subsection (a) of this section shall, for each such income year, except 2110
when the tax so calculated is equal to two hundred fifty dollars, be 2111
increased by adding thereto an amount equal to twenty per cent of the 2112
additional tax so calculated for such income year, without reduction of 2113
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the tax so calculated by the amount of any credit against such tax. The 2114
increased amount of tax payable by any company under this section, 2115
as determined in accordance with this subsection, shall become due 2116
and be paid, collected and enforced as provided in this chapter. 2117
(B) Any company whose gross income for the income year was less 2118
than one hundred million dollars shall not be subject to the additional 2119
tax imposed under subparagraph (A) of this subdivision. With respect 2120
to income years commencing on or after January 1, 2012, and prior to 2121
January 1, 2016, this exception shall not apply to companies filing a 2122
combined return for the income year under section 12-223a or a 2123
unitary return under subsection (d) of section 12-218d. With respect to 2124
income years commencing on or after January 1, 2016, and prior to 2125
January 1, 2018, this exception shall not apply to taxable members of a 2126
combined group that files a combined unitary tax return. 2127
(8) (A) With respect to income years commencing on or after 2128
January 1, 2018, and prior to January 1, 2019, the additional tax 2129
imposed on any company and calculated in accordance with 2130
subsection (a) of this section shall, for such income year, except when 2131
the tax so calculated is equal to two hundred fifty dollars, be increased 2132
by adding thereto an amount equal to ten per cent of the additional tax 2133
so calculated for such income year, without reduction of the tax so 2134
calculated by the amount of any credit against such tax. The increased 2135
amount of tax payable by any company under this section, as 2136
determined in accordance with this subsection, shall become due and 2137
be paid, collected and enforced as provided in this chapter. 2138
(B) Any company whose gross income for the income year was less 2139
than one hundred million dollars shall not be subject to the additional 2140
tax imposed under subparagraph (A) of this subdivision. This 2141
exception shall not apply to taxable members of a combined group that 2142
files a combined unitary tax return. 2143
(c) The tax imposed by this section shall be assessed and collected 2144
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LCO No. 6787 80 of 88
and be first applicable at the time or times herein provided for the tax 2145
measured by net income. This section shall not apply to insurance 2146
companies, real estate investment trusts, regulated investment 2147
companies, interlocal risk management agencies formed pursuant to 2148
chapter 113a or, except as otherwise provided by subsection (d) of this 2149
section, financial service companies, as defined in section 12-218b. 2150
(d) Each financial service company, as defined in section 12-218b, 2151
shall pay for the privilege of carrying on or doing business within the 2152
state, (A) for income years commencing prior to January 1, 2020, the 2153
larger of the tax, if any, imposed by section 12-214 and the tax 2154
calculated under this subsection, and (B) for income years commencing 2155
on or after January 1, 2020, the tax, if any, imposed by section 12-214. 2156
For each such financial service company, the tax calculated under this 2157
subsection shall be two hundred fifty dollars for each income year. No 2158
tax credit allowed against the tax imposed by this chapter shall reduce 2159
a financial service company's tax calculated under this subsection to an 2160
amount less than two hundred fifty dollars. 2161
(e) [The] For income years commencing prior to January 1, 2020, the 2162
additional tax base of taxable and nontaxable members of a combined 2163
group required to file a combined unitary tax return pursuant to 2164
section 12-222 shall be calculated as provided in subsection (f) of 2165
section 12-218e. 2166
Sec. 30. Subsection (a) of section 12-217ee of the general statutes is 2167
repealed and the following is substituted in lieu thereof (Effective from 2168
passage): 2169
(a) Any taxpayer that (1) is a qualified small business, (2) qualifies 2170
for a credit under section 12-217j or section 12-217n, and (3) cannot 2171
take such credit in the taxable year in which the credit could otherwise 2172
be taken as a result of having no tax liability under this chapter may 2173
elect to carry such credit forward under this chapter or may apply to 2174
the commissioner as provided in subsection (b) of this section to 2175
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exchange such credit with the state for a credit refund equal to sixty-2176
five per cent of the value of the credit. Any amount of credit refunded 2177
under this section shall be refunded to the taxpayer under the 2178
provisions of this chapter, except that such credit refund shall not be 2179
subject to the provisions of section 12-227. Payment of the capital base 2180
tax under section 12-219, as amended by this act, for an income year 2181
commencing on or after January 1, 2002, and prior to January 1, 2020, 2182
in which year the taxpayer reports no net income, as defined in section 2183
12-213, or payment of the minimum tax of two hundred fifty dollars 2184
under section 12-219, as amended by this act, or 12-223c, as amended 2185
by this act, for any income year, shall not be considered a tax liability 2186
for purposes of this section. 2187
Sec. 31. Section 12-223c of the general statutes is repealed and the 2188
following is substituted in lieu thereof (Effective from passage): 2189
[Each] For income years commencing prior to January 1, 2020, (1) 2190
each corporation included in a combined return under section 12-223a 2191
shall pay the minimum tax of two hundred fifty dollars prescribed 2192
under section 12-219, as amended by this act, [. No] and (2) no tax 2193
credit allowed against the tax imposed by this chapter shall reduce an 2194
included corporation's tax calculated under section 12-219, as amended 2195
by this act, to an amount less than two hundred fifty dollars. 2196
Sec. 32. (Effective from passage) Not later than December 31, 2019, the 2197
Commissioner of Revenue Services shall provide to the chairpersons 2198
and ranking members of the joint standing committee of the General 2199
Assembly having cognizance of matters relating to finance, revenue 2200
and bonding recommendations for additional amendments to the 2201
general statutes that are required to effectuate the changes in sections 2202
28 and 29 of this act related to the amount of the operating loss 2203
allowed as a carry-over and the elimination of the capital base tax. 2204
Sec. 33. (Effective July 1, 2019) (a) For the purposes described in 2205
subsection (b) of this section, the State Bond Commission shall have 2206
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LCO No. 6787 82 of 88
the power from time to time to authorize the issuance of bonds of the 2207
state in one or more series and in principal amounts not exceeding in 2208
the aggregate two hundred million dollars. 2209
(b) The proceeds of the sale of such bonds, to the extent of the 2210
amount stated in subsection (a) of this section, shall be used by the 2211
Office of Higher Education for the purpose of awarding scholarships 2212
under the STEM Scholarship Program established under section 34 of 2213
this act, provided no portion of such proceeds shall be used for 2214
administrative expenses. 2215
(c) All provisions of section 3-20 of the general statutes, or the 2216
exercise of any right or power granted thereby, that are not 2217
inconsistent with the provisions of this section are hereby adopted and 2218
shall apply to all bonds authorized by the State Bond Commission 2219
pursuant to this section. Temporary notes in anticipation of the money 2220
to be derived from the sale of any such bonds so authorized may be 2221
issued in accordance with section 3-20 of the general statutes and from 2222
time to time renewed. Such bonds shall mature at such time or times 2223
not exceeding twenty years from their respective dates as may be 2224
provided in or pursuant to the resolution or resolutions of the State 2225
Bond Commission authorizing such bonds. None of such bonds shall 2226
be authorized except upon a finding by the State Bond Commission 2227
that there has been filed with it a request for such authorization that is 2228
signed by or on behalf of the Secretary of the Office of Policy and 2229
Management and states such terms and conditions as said commission, 2230
in its discretion, may require. Such bonds issued pursuant to this 2231
section shall be general obligations of the state and the full faith and 2232
credit of the state of Connecticut are pledged for the payment of the 2233
principal of and interest on such bonds as the same become due, and 2234
accordingly and as part of the contract of the state with the holders of 2235
such bonds, appropriation of all amounts necessary for punctual 2236
payment of such principal and interest is hereby made, and the State 2237
Treasurer shall pay such principal and interest as the same become 2238
due. 2239
Raised Bill No. 7410
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Sec. 34. (NEW) (Effective July 1, 2019) (a) There is established a STEM 2240
scholarship program administered by the Office of Higher Education. 2241
Commencing July 1, 2020, the program shall award scholarships for up 2242
to four thousand residents of the state in the first year and up to four 2243
thousand additional residents of the state in each of the next three 2244
years, who are enrolled (1) as full-time or part-time undergraduate 2245
students at a public or an independent institution of higher education 2246
in the state and are seeking a degree in a field related to science, 2247
technology, engineering, mathematics or a health profession, or (2) in a 2248
teacher preparation program, as defined in section 10-10a of the 2249
general statutes, and whose subject area major is in science, 2250
technology, engineering or mathematics. 2251
(b) Each scholarship awarded under subsection (a) of this section 2252
shall be in the amount of five thousand dollars annually and may be 2253
awarded for up to a four-year period, provided a scholarship recipient 2254
remains eligible for such scholarship in accordance with the standards 2255
established by the Office of Higher Education under subsection (c) of 2256
this section. 2257
(c) The Office of Higher Education shall establish (1) (A) the specific 2258
fields or majors for which a scholarship may be awarded, or (B) 2259
specific standards to determine whether a field or major is eligible for 2260
an enrollee to be considered for a scholarship under subsection (a) of 2261
this section, (2) eligibility standards for applicants, including, but not 2262
limited to, any minimum grade point averages required, (3) standards 2263
for scholarship recipients to remain eligible for such scholarship while 2264
enrolled, including, but not limited to, any minimum grade point 2265
averages required, (4) an application form and any additional 2266
information said office deems necessary to evaluate an application, (5) 2267
the deadlines for applications to be submitted and for final decisions to 2268
be issued by said office, and (6) any other criteria said office deems 2269
necessary to decide scholarship award recipients under this section. 2270
Said office shall post information about the STEM scholarship program 2271
on its Internet web site, including, at a minimum, the requirements 2272
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established under this subsection. 2273
(d) Not later than July 31, 2021, and each year thereafter that 2274
scholarships under this section are awarded, the executive director of 2275
the Office of Higher Education shall submit a report, in accordance 2276
with the provisions of section 11-4a of the general statutes, to the joint 2277
standing committees of the General Assembly having cognizance of 2278
matters relating to higher education, labor and bonding, that includes, 2279
but is not limited to, (1) the number of scholarships awarded in the 2280
preceding year to enrollees described in subparagraph (A) of 2281
subdivision (1) of subsection (c) of this section and to enrollees 2282
described in subparagraph (B) of said subdivision, (2) the specific 2283
institutions of higher education that recipients of scholarship awards 2284
in the preceding year are attending, and (3) the fields or majors in 2285
which recipients of scholarship awards in the preceding year are 2286
enrolled. 2287
Sec. 35. Section 10a-1d of the general statutes is repealed and the 2288
following is substituted in lieu thereof (Effective July 1, 2019): 2289
(a) There is established an Office of Higher Education. The Office of 2290
Higher Education shall administer the programs set forth in sections 2291
10-155d, 10a-10a, 10a-11, 10a-11a, 10a-17d, 10a-19g, 10a-34 to 10a-34f, 2292
inclusive, 10a-35, 10a-166, 10a-168a, 10a-169a, 10a-169b, [and] 10a-173 2293
and section 34 of this act. The Office of Higher Education shall be 2294
responsible for approving any action taken pursuant to sections 10a-34 2295
to 10a-34f, inclusive. 2296
(b) The Governor shall appoint an executive director of the Office of 2297
Higher Education in accordance with the provisions of sections 4-5 to 2298
4-8, inclusive. The executive director shall have the responsibility for 2299
implementing the policies and directives of the office and shall have 2300
additional responsibilities as the board may prescribe. 2301
Sec. 36. Section 12-407e of the general statutes is repealed. (Effective 2302
July 1, 2019) 2303
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Sec. 37. Subdivisions (91), (102), (108), (109) and (114) of section 12-2304
412 of the general statutes are repealed. (Effective January 1, 2020) 2305
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-408(1)
Sec. 2 July 1, 2019, and
applicable to sales
occurring on or after July
1, 2019
12-411(1)
Sec. 3 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(13)
Sec. 4 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)
Sec. 5 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(37)
Sec. 6 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-412
Sec. 7 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-412(120)
Sec. 8 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(2)(H)
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Sec. 9 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(3)(A)
Sec. 10 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(7)
Sec. 11 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(8)(A)
Sec. 12 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(9)(A)
Sec. 13 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(15)(A)
Sec. 14 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(18) and (19)
Sec. 15 from passage and
applicable to gifts made on
or after January 1, 2019
12-640
Sec. 16 from passage 12-642
Sec. 17 from passage and
applicable to estates of
decedents dying on or after
January 1, 2019
12-643(3)
Sec. 18 from passage and
applicable to decedents
dying on or after January
1, 2019
12-391
Sec. 19 from passage and
applicable to decedents
dying on or after January
1, 2019
12-392
Sec. 20 from passage 45a-107(b)
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Sec. 21 October 1, 2019, and
applicable to assessment
years commencing on or
after October 1, 2019
12-81(79)
Sec. 22 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
12-284b(b)
Sec. 23 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
12-217jj(e)(2)
Sec. 24 from passage and
applicable to income years
commencing on or after
January 1, 2019
12-217zz(a)
Sec. 25 from passage and
applicable to quarterly
periods commencing on or
after July 1, 2019
New section
Sec. 26 from passage and
applicable to quarterly
periods commencing on or
after July 1, 2019
New section
Sec. 27 from passage and
applicable to quarterly
periods commencing on or
after July 1, 2019
New section
Sec. 28 July 1, 2019 12-217(a)
Sec. 29 from passage 12-219
Sec. 30 from passage 12-217ee(a)
Sec. 31 from passage 12-223c
Sec. 32 from passage New section
Sec. 33 July 1, 2019 New section
Sec. 34 July 1, 2019 New section
Sec. 35 July 1, 2019 10a-1d
Sec. 36 July 1, 2019 Repealer section
Sec. 37 January 1, 2020 Repealer section
Raised Bill No. 7410
LCO No. 6787 88 of 88
Statement of Purpose:
To implement certain tax recommendations of the Commission on
Economic Fiscal Stability and Economic Growth.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]