LCO No. 4566 1 of 138
General Assembly Governor's Bill No. 877
January Session, 2019
LCO No. 4566
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
SEN. LOONEY, 11
th
Dist.
SEN. DUFF, 25
th
Dist.
REP. ARESIMOWICZ, 30
th
Dist.
REP. RITTER M., 1
st
Dist.
AN ACT CONCERNING RE VENUE ITEMS TO IMPLEMENT THE
GOVERNOR'S BUDGET.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage and applicable to taxable years 1
commencing on or after January 1, 2023) (a) (1) As used in this section, 2
"property tax" and "motor vehicle" have the same meanings as 3
provided in section 12-704c of the general statutes, as amended by this 4
act. 5
(2) For the purposes of this section, property tax first becomes due, 6
if due and payable in a single installment, on the date designated by 7
the legislative body of the municipality as the date on which such 8
installment shall be due and payable and, if due and payable in two or 9
more installments, on the date designated by the legislative body of 10
the municipality as the date on which such installment shall be due 11
Governor's Bill No. 877
LCO No. 4566 2 of 138
and payable or, at the election of the taxpayer, on the date designated 12
by the legislative body of the municipality as the date on which any 13
earlier installment of such tax shall be due and payable. 14
(b) For taxable years commencing on or after January 1, 2023, any 15
resident of this state, as defined in subdivision (1) of subsection (a) of 16
section 12-701 of the general statutes, subject to the tax under chapter 17
229 of the general statutes for any taxable year shall be entitled to a 18
credit in determining the amount of tax liability under chapter 229 of 19
the general statutes, for all or a portion, as permitted by this section, of 20
the amount of property tax, as defined in this section, first becoming 21
due and actually paid during such taxable year by such person on such 22
person's primary residence or motor vehicle in accordance with the 23
provisions of this section, provided in the case of a person who files a 24
return under the federal income tax for such taxable year as an 25
unmarried individual, a married individual filing separately or a head 26
of household, one motor vehicle shall be eligible for such credit and in 27
the case of persons who file a return under federal income tax for such 28
taxable year as married individuals filing jointly, no more than two 29
motor vehicles shall be eligible for a credit under the provisions of this 30
section. The credit allowed under this section shall be in addition to 31
the credit allowed under section 12-704c of the general statutes, as 32
amended by this act, for which a resident is eligible. 33
(c) (1) The credit allowed under this section shall be calculated by 34
determining the amount by which a taxpayer's property tax paid 35
during the taxable year exceeds six and one-half per cent of such 36
taxpayer's Connecticut adjusted gross income and multiplying such 37
excess amount by 0.333. 38
(2) The credit allowed under this section shall not exceed one 39
thousand two hundred dollars. In the case of any persons who file a 40
return under the federal income tax for such taxable year as married 41
individuals filing a joint return, the credit allowed, in the aggregate, 42
shall not exceed such amount for each such taxable year. 43
Governor's Bill No. 877
LCO No. 4566 3 of 138
(d) The credit allowed under the provisions of this section shall be 44
available for any person renting a primary residence in the state. Such 45
renter shall be entitled to the credit in accordance with the provisions 46
of this section and the amount of the credit shall be calculated as 47
though the renter paid the property tax on such primary residence in 48
an amount equal to eighteen per cent of the total amount of rent, 49
exclusive of any interest, fees, deposits or charges, actually paid by the 50
renter during the taxable year for which the credit is claimed. 51
(e) The credit allowed under the provisions of this section shall be 52
available for any person leasing a motor vehicle pursuant to a written 53
agreement for a term of more than one year. Such lessee shall be 54
entitled to the credit in accordance with the provisions of this section 55
for the taxes actually paid by the lessor or lessee on such leased 56
vehicle, provided the lessee was lawfully in possession of the motor 57
vehicle at such time when the taxes first became due. The lessor shall 58
provide the lessee with documentation establishing, to the satisfaction 59
of the Commissioner of Revenue Services, the amount of property tax 60
paid during the time period in which the lessee was lawfully in 61
possession of the motor vehicle. The lessor of the motor vehicle shall 62
not be entitled to a credit under the provisions of this section. 63
(f) The credit may only be used to reduce a qualifying taxpayer's tax 64
liability for the year for which such credit is applicable and shall not be 65
used to reduce such tax liability to less than zero. 66
(g) The amount of tax due pursuant to sections 12-705 and 12-722 of 67
the general statutes shall be calculated without regard to this credit. 68
Sec. 2. Section 12-704c of the general statutes is repealed and the 69
following is substituted in lieu thereof (Effective from passage): 70
(a) Any resident of this state, as defined in subdivision (1) of 71
subsection (a) of section 12-701, subject to the tax under this chapter for 72
any taxable year shall be entitled to a credit in determining the amount 73
of tax liability under this chapter, for all or a portion, as permitted by 74
Governor's Bill No. 877
LCO No. 4566 4 of 138
this section, of the amount of property tax, as defined in this section, 75
first becoming due and actually paid during such taxable year by such 76
person on such person's primary residence or motor vehicle in 77
accordance with the provisions of this section, provided in the case of a 78
person who files a return under the federal income tax for such taxable 79
year as an unmarried individual, a married individual filing separately 80
or a head of household, one motor vehicle shall be eligible for such 81
credit and in the case of [a husband and wife] persons who file a return 82
under federal income tax for such taxable year as married individuals 83
filing jointly, no more than two motor vehicles shall be eligible for a 84
credit under the provisions of this section. 85
(b) (1) The credit allowed under this section shall not exceed (A) [for 86
taxable years commencing on or after January 1, 2006, but prior to 87
January 1, 2011, five hundred dollars; (B)] for taxable years 88
commencing on or after January 1, 2011, but prior to January 1, 2016, 89
three hundred dollars; and [(C)] (B) for taxable years commencing on 90
or after January 1, 2016, two hundred dollars. In the case of any 91
[husband and wife] persons who file a return under the federal income 92
tax for such taxable year as married individuals filing a joint return, 93
the credit allowed, in the aggregate, shall not exceed such [amounts] 94
amount for each such taxable year. 95
(2) Notwithstanding the provisions of subsection (a) of this section, 96
for the taxable years commencing January 1, 2017, and January 1, 2018, 97
the credit under this section shall be allowed only for a resident of this 98
state (A) who has attained age sixty-five before the close of the 99
applicable taxable year, or (B) who files a return under the federal 100
income tax for the applicable taxable year validly claiming one or more 101
dependents. 102
[(c) (1) (A) For taxable years commencing prior to January 1, 2000, in 103
the case of any such taxpayer who files under the federal income tax 104
for such taxable year as an unmarried individual whose Connecticut 105
adjusted gross income exceeds fifty-two thousand five hundred 106
Governor's Bill No. 877
LCO No. 4566 5 of 138
dollars, the amount of the credit that exceeds one hundred dollars shall 107
be reduced by ten per cent for each ten thousand dollars, or fraction 108
thereof, by which the taxpayer's Connecticut adjusted gross income 109
exceeds said amount. 110
(B) For taxable years commencing on or after January 1, 2000, but 111
prior to January 1, 2001, in the case of any such taxpayer who files 112
under the federal income tax for such taxable year as an unmarried 113
individual whose Connecticut adjusted gross income exceeds fifty-114
three thousand five hundred dollars, the amount of the credit that 115
exceeds one hundred dollars shall be reduced by ten per cent for each 116
ten thousand dollars, or fraction thereof, by which the taxpayer's 117
Connecticut adjusted gross income exceeds said amount. 118
(C) For taxable years commencing on or after January 1, 2001, but 119
prior to January 1, 2004, in the case of any such taxpayer who files 120
under the federal income tax for such taxable year as an unmarried 121
individual whose Connecticut adjusted gross income exceeds fifty-four 122
thousand five hundred dollars, the amount of the credit shall be 123
reduced by ten per cent for each ten thousand dollars, or fraction 124
thereof, by which the taxpayer's Connecticut adjusted gross income 125
exceeds said amount. 126
(D) For taxable years commencing on or after January 1, 2004, but 127
prior to January 1, 2007, in the case of any such taxpayer who files 128
under the federal income tax for such taxable year as an unmarried 129
individual whose Connecticut adjusted gross income exceeds fifty-five 130
thousand dollars, the amount of the credit shall be reduced by ten per 131
cent for each ten thousand dollars, or fraction thereof, by which the 132
taxpayer's Connecticut adjusted gross income exceeds said amount. 133
(E) For taxable years commencing on or after January 1, 2007, but 134
prior to January 1, 2008, in the case of any such taxpayer who files 135
under the federal income tax for such taxable year as an unmarried 136
individual whose Connecticut adjusted gross income exceeds fifty-five 137
Governor's Bill No. 877
LCO No. 4566 6 of 138
thousand five hundred dollars, the amount of the credit shall be 138
reduced by ten per cent for each ten thousand dollars, or fraction 139
thereof, by which the taxpayer's Connecticut adjusted gross income 140
exceeds said amount. 141
(F) For taxable years commencing on or after January 1, 2008, but 142
prior to January 1, 2011, in the case of any such taxpayer who files 143
under the federal income tax for such taxable year as an unmarried 144
individual whose Connecticut adjusted gross income exceeds fifty-six 145
thousand five hundred dollars, the amount of the credit shall be 146
reduced by ten per cent for each ten thousand dollars, or fraction 147
thereof, by which the taxpayer's Connecticut adjusted gross income 148
exceeds said amount.] 149
[(G)] (c) (1) (A) For taxable years commencing on or after January 1, 150
2011, but prior to January 1, 2013, in the case of any such taxpayer who 151
files under the federal income tax for such taxable year as an 152
unmarried individual whose Connecticut adjusted gross income 153
exceeds fifty-six thousand five hundred dollars, the amount of the 154
credit shall be reduced by fifteen per cent for each ten thousand 155
dollars, or fraction thereof, by which the taxpayer's Connecticut 156
adjusted gross income exceeds said amount. 157
[(H)] (B) For taxable years commencing on or after January 1, 2013, 158
but prior to January 1, 2014, in the case of any such taxpayer who files 159
under the federal income tax for such taxable year as an unmarried 160
individual whose Connecticut adjusted gross income exceeds sixty 161
thousand five hundred dollars, the amount of the credit shall be 162
reduced by fifteen per cent for each ten thousand dollars, or fraction 163
thereof, by which the taxpayer's Connecticut adjusted gross income 164
exceeds said amount. 165
[(I)] (C) For taxable years commencing on or after January 1, 2014, 166
but prior to January 1, 2016, in the case of any such taxpayer who files 167
under the federal income tax for such taxable year as an unmarried 168
Governor's Bill No. 877
LCO No. 4566 7 of 138
individual whose Connecticut adjusted gross income exceeds forty-169
seven thousand five hundred dollars, the amount of the credit shall be 170
reduced by fifteen per cent for each ten thousand dollars, or fraction 171
thereof, by which the taxpayer's Connecticut adjusted gross income 172
exceeds said amount. 173
[(J)] (D) For taxable years commencing on or after January 1, 2016, in 174
the case of any such taxpayer who files under the federal income tax 175
for such taxable year as an unmarried individual whose Connecticut 176
adjusted gross income exceeds forty-nine thousand five hundred 177
dollars, the amount of the credit shall be reduced by fifteen per cent for 178
each ten thousand dollars, or fraction thereof, by which the taxpayer's 179
Connecticut adjusted gross income exceeds said amount. 180
(2) In the case of any such taxpayer who files under the federal 181
income tax for such taxable year as a married individual filing 182
separately whose Connecticut adjusted gross income exceeds thirty-183
five thousand two hundred fifty dollars, the amount of the credit shall 184
be reduced by fifteen per cent for each five thousand dollars, or 185
fraction thereof, by which the taxpayer's Connecticut adjusted gross 186
income exceeds said amount. 187
(3) In the case of a taxpayer who files under the federal income tax 188
for such taxable year as a head of household whose Connecticut 189
adjusted gross income exceeds fifty-four thousand five hundred 190
dollars, the amount of the credit shall be reduced by fifteen per cent for 191
each ten thousand dollars or fraction thereof, by which the taxpayer's 192
Connecticut adjusted gross income exceeds said amount. 193
(4) In the case of a taxpayer who files under federal income tax for 194
such taxable year as married individuals filing jointly whose 195
Connecticut adjusted gross income exceeds seventy thousand five 196
hundred dollars, the amount of the credit shall be reduced by fifteen 197
per cent for each ten thousand dollars, or fraction thereof, by which the 198
taxpayer's Connecticut adjusted gross income exceeds said amount. 199
Governor's Bill No. 877
LCO No. 4566 8 of 138
(d) The credit allowed under the provisions of this section shall be 200
available for any person leasing a motor vehicle pursuant to a written 201
agreement for a term of more than one year. Such lessee shall be 202
entitled to the credit in accordance with the provisions of this section 203
for the taxes actually paid by the lessor or lessee on such leased 204
vehicle, provided the lessee was lawfully in possession of the motor 205
vehicle at such time when the taxes first became due. The lessor shall 206
provide the lessee with documentation establishing, to the satisfaction 207
of the Commissioner of Revenue Services, the amount of property tax 208
paid during the time period in which the lessee was lawfully in 209
possession of the motor vehicle. The lessor of the motor vehicle shall 210
not be entitled to a credit under the provisions of this section. 211
(e) The credit may only be used to reduce [such] a qualifying 212
taxpayer's tax liability for the year for which such credit is applicable 213
and shall not be used to reduce such tax liability to less than zero. 214
(f) The amount of tax due pursuant to sections 12-705 and 12-722 215
shall be calculated without regard to this credit. 216
(g) For the purposes of this section: (1) "Property tax" means the 217
amount of property tax, exclusive of any interest, fees or charges 218
thereon, for which a taxpayer is liable, or in the case of any [husband 219
and wife] persons who file a return under the federal income tax for 220
such taxable year as married individuals filing a joint return, for which 221
[the husband or wife] either or both spouses are liable, to a 222
Connecticut political subdivision on the taxpayer's primary residence 223
or motor vehicles; (2) "motor vehicle" means a motor vehicle, as 224
defined in section 14-1, [which] that is privately owned or leased; and 225
(3) property tax first becomes due, if due and payable in a single 226
installment, on the date designated by the legislative body of the 227
municipality as the date on which such installment shall be due and 228
payable and, if due and payable in two or more installments, on the 229
date designated by the legislative body of the municipality as the date 230
on which such installment shall be due and payable or, at the election 231
Governor's Bill No. 877
LCO No. 4566 9 of 138
of the taxpayer, on the date designated by the legislative body of the 232
municipality as the date on which any earlier installment of such tax 233
shall be due and payable. 234
Sec. 3. Subparagraph (B) of subdivision (20) of subsection (a) of 235
section 12-701 of the general statutes is repealed and the following is 236
substituted in lieu thereof (Effective from passage and applicable to taxable 237
years commencing on or after January 1, 2019): 238
(B) There shall be subtracted therefrom: 239
(i) To the extent properly includable in gross income for federal 240
income tax purposes, any income with respect to which taxation by 241
any state is prohibited by federal law; 242
(ii) To the extent allowable under section 12-718, exempt dividends 243
paid by a regulated investment company; 244
(iii) To the extent properly includable in gross income for federal 245
income tax purposes, the amount of any refund or credit for 246
overpayment of income taxes imposed by this state, or any other state 247
of the United States or a political subdivision thereof, or the District of 248
Columbia; 249
(iv) To the extent properly includable in gross income for federal 250
income tax purposes and not otherwise subtracted from federal 251
adjusted gross income pursuant to clause (x) of this subparagraph in 252
computing Connecticut adjusted gross income, any tier 1 railroad 253
retirement benefits; 254
(v) To the extent any additional allowance for depreciation under 255
Section 168(k) of the Internal Revenue Code for property placed in 256
service after September 27, 2017, was added to federal adjusted gross 257
income pursuant to subparagraph (A)(ix) of this subdivision in 258
computing Connecticut adjusted gross income, twenty-five per cent of 259
such additional allowance for depreciation in each of the four 260
Governor's Bill No. 877
LCO No. 4566 10 of 138
succeeding taxable years; 261
(vi) To the extent properly includable in gross income for federal 262
income tax purposes, any interest income from obligations issued by or 263
on behalf of the state of Connecticut, any political subdivision thereof, 264
or public instrumentality, state or local authority, district or similar 265
public entity created under the laws of the state of Connecticut; 266
(vii) To the extent properly includable in determining the net gain 267
or loss from the sale or other disposition of capital assets for federal 268
income tax purposes, any gain from the sale or exchange of obligations 269
issued by or on behalf of the state of Connecticut, any political 270
subdivision thereof, or public instrumentality, state or local authority, 271
district or similar public entity created under the laws of the state of 272
Connecticut, in the income year such gain was recognized; 273
(viii) Any interest on indebtedness incurred or continued to 274
purchase or carry obligations or securities the interest on which is 275
subject to tax under this chapter but exempt from federal income tax, 276
to the extent that such interest on indebtedness is not deductible in 277
determining federal adjusted gross income and is attributable to a 278
trade or business carried on by such individual; 279
(ix) Ordinary and necessary expenses paid or incurred during the 280
taxable year for the production or collection of income which is subject 281
to taxation under this chapter but exempt from federal income tax, or 282
the management, conservation or maintenance of property held for the 283
production of such income, and the amortizable bond premium for the 284
taxable year on any bond the interest on which is subject to tax under 285
this chapter but exempt from federal income tax, to the extent that 286
such expenses and premiums are not deductible in determining federal 287
adjusted gross income and are attributable to a trade or business 288
carried on by such individual; 289
(x) (I) For [taxable years commencing prior to January 1, 2019, for] a 290
person who files a return under the federal income tax as an 291
Governor's Bill No. 877
LCO No. 4566 11 of 138
unmarried individual whose federal adjusted gross income for such 292
taxable year is less than fifty thousand dollars, or as a married 293
individual filing separately whose federal adjusted gross income for 294
such taxable year is less than fifty thousand dollars, or for a husband 295
and wife who file a return under the federal income tax as married 296
individuals filing jointly whose federal adjusted gross income for such 297
taxable year is less than sixty thousand dollars or a person who files a 298
return under the federal income tax as a head of household whose 299
federal adjusted gross income for such taxable year is less than sixty 300
thousand dollars, an amount equal to the Social Security benefits 301
includable for federal income tax purposes; and 302
(II) For [taxable years commencing prior to January 1, 2019, for] a 303
person who files a return under the federal income tax as an 304
unmarried individual whose federal adjusted gross income for such 305
taxable year is fifty thousand dollars or more, or as a married 306
individual filing separately whose federal adjusted gross income for 307
such taxable year is fifty thousand dollars or more, or for a husband 308
and wife who file a return under the federal income tax as married 309
individuals filing jointly whose federal adjusted gross income from 310
such taxable year is sixty thousand dollars or more or for a person who 311
files a return under the federal income tax as a head of household 312
whose federal adjusted gross income for such taxable year is sixty 313
thousand dollars or more, an amount equal to the difference between 314
the amount of Social Security benefits includable for federal income tax 315
purposes and the lesser of twenty-five per cent of the Social Security 316
benefits received during the taxable year, or twenty-five per cent of the 317
excess described in Section 86(b)(1) of the Internal Revenue Code; 318
[(III) For the taxable year commencing January 1, 2019, and each 319
taxable year thereafter, for a person who files a return under the 320
federal income tax as an unmarried individual whose federal adjusted 321
gross income for such taxable year is less than seventy-five thousand 322
dollars, or as a married individual filing separately whose federal 323
adjusted gross income for such taxable year is less than seventy-five 324
Governor's Bill No. 877
LCO No. 4566 12 of 138
thousand dollars, or for a husband and wife who file a return under 325
the federal income tax as married individuals filing jointly whose 326
federal adjusted gross income for such taxable year is less than one 327
hundred thousand dollars or a person who files a return under the 328
federal income tax as a head of household whose federal adjusted 329
gross income for such taxable year is less than one hundred thousand 330
dollars, an amount equal to the Social Security benefits includable for 331
federal income tax purposes; and 332
(IV) For the taxable year commencing January 1, 2019, and each 333
taxable year thereafter, for a person who files a return under the 334
federal income tax as an unmarried individual whose federal adjusted 335
gross income for such taxable year is seventy-five thousand dollars or 336
more, or as a married individual filing separately whose federal 337
adjusted gross income for such taxable year is seventy-five thousand 338
dollars or more, or for a husband and wife who file a return under the 339
federal income tax as married individuals filing jointly whose federal 340
adjusted gross income from such taxable year is one hundred 341
thousand dollars or more or for a person who files a return under the 342
federal income tax as a head of household whose federal adjusted 343
gross income for such taxable year is one hundred thousand dollars or 344
more, an amount equal to the difference between the amount of Social 345
Security benefits includable for federal income tax purposes and the 346
lesser of twenty-five per cent of the Social Security benefits received 347
during the taxable year, or twenty-five per cent of the excess described 348
in Section 86(b)(1) of the Internal Revenue Code;] 349
(xi) To the extent properly includable in gross income for federal 350
income tax purposes, any amount rebated to a taxpayer pursuant to 351
section 12-746; 352
(xii) To the extent properly includable in the gross income for 353
federal income tax purposes of a designated beneficiary, any 354
distribution to such beneficiary from any qualified state tuition 355
program, as defined in Section 529(b) of the Internal Revenue Code, 356
Governor's Bill No. 877
LCO No. 4566 13 of 138
established and maintained by this state or any official, agency or 357
instrumentality of the state; 358
(xiii) To the extent allowable under section 12-701a, contributions to 359
accounts established pursuant to any qualified state tuition program, 360
as defined in Section 529(b) of the Internal Revenue Code, established 361
and maintained by this state or any official, agency or instrumentality 362
of the state; 363
(xiv) To the extent properly includable in gross income for federal 364
income tax purposes, the amount of any Holocaust victims' settlement 365
payment received in the taxable year by a Holocaust victim; 366
(xv) To the extent properly includable in gross income for federal 367
income tax purposes of an account holder, as defined in section 31-368
51ww, interest earned on funds deposited in the individual 369
development account, as defined in section 31-51ww, of such account 370
holder; 371
(xvi) To the extent properly includable in the gross income for 372
federal income tax purposes of a designated beneficiary, as defined in 373
section 3-123aa, interest, dividends or capital gains earned on 374
contributions to accounts established for the designated beneficiary 375
pursuant to the Connecticut Homecare Option Program for the Elderly 376
established by sections 3-123aa to 3-123ff, inclusive; 377
(xvii) To the extent properly includable in gross income for federal 378
income tax purposes, any income received from the United States 379
government as retirement pay for a retired member of (I) the Armed 380
Forces of the United States, as defined in Section 101 of Title 10 of the 381
United States Code, or (II) the National Guard, as defined in Section 382
101 of Title 10 of the United States Code; 383
(xviii) To the extent properly includable in gross income for federal 384
income tax purposes for the taxable year, any income from the 385
discharge of indebtedness in connection with any reacquisition, after 386
Governor's Bill No. 877
LCO No. 4566 14 of 138
December 31, 2008, and before January 1, 2011, of an applicable debt 387
instrument or instruments, as those terms are defined in Section 108 of 388
the Internal Revenue Code, as amended by Section 1231 of the 389
American Recovery and Reinvestment Act of 2009, to the extent any 390
such income was added to federal adjusted gross income pursuant to 391
subparagraph (A)(xi) of this subdivision in computing Connecticut 392
adjusted gross income for a preceding taxable year; 393
(xix) To the extent not deductible in determining federal adjusted 394
gross income, the amount of any contribution to a manufacturing 395
reinvestment account established pursuant to section 32-9zz in the 396
taxable year that such contribution is made; 397
(xx) To the extent properly includable in gross income for federal 398
income tax purposes, (I) for the taxable year commencing January 1, 399
2015, ten per cent of the income received from the state teachers' 400
retirement system, and (II) for the taxable years commencing on and 401
after January 1, 2016, [January 1, 2017, and January 1, 2018,] twenty-402
five per cent of the income received from the state teachers' retirement 403
system; [, and (III) for the taxable year commencing January 1, 2019, 404
and each taxable year thereafter, fifty per cent of the income received 405
from the state teachers' retirement system or the percentage, if 406
applicable, pursuant to clause (xxi) of this subparagraph;] 407
[(xxi) To the extent properly includable in gross income for federal 408
income tax purposes, except for retirement benefits under clause (iv) of 409
this subparagraph and retirement pay under clause (xvii) of this 410
subparagraph, for a person who files a return under the federal income 411
tax as an unmarried individual whose federal adjusted gross income 412
for such taxable year is less than seventy-five thousand dollars, or as a 413
married individual filing separately whose federal adjusted gross 414
income for such taxable year is less than seventy-five thousand dollars, 415
or as a head of household whose federal adjusted gross income for 416
such taxable year is less than seventy-five thousand dollars, or for a 417
husband and wife who file a return under the federal income tax as 418
Governor's Bill No. 877
LCO No. 4566 15 of 138
married individuals filing jointly whose federal adjusted gross income 419
for such taxable year is less than one hundred thousand dollars, (I) for 420
the taxable year commencing January 1, 2019, fourteen per cent of any 421
pension or annuity income, (II) for the taxable year commencing 422
January 1, 2020, twenty-eight per cent of any pension or annuity 423
income, (III) for the taxable year commencing January 1, 2021, forty-424
two per cent of any pension or annuity income, (IV) for the taxable 425
year commencing January 1, 2022, fifty-six per cent of any pension or 426
annuity income, (V) for the taxable year commencing January 1, 2023, 427
seventy per cent of any pension or annuity income, (VI) for the taxable 428
year commencing January 1, 2024, eighty-four per cent of any pension 429
or annuity income, and (VII) for the taxable year commencing January 430
1, 2025, and each taxable year thereafter, any pension or annuity 431
income;] 432
[(xxii)] (xxi) The amount of lost wages and medical, travel and 433
housing expenses, not to exceed ten thousand dollars in the aggregate, 434
incurred by a taxpayer during the taxable year in connection with the 435
donation to another person of an organ for organ transplantation 436
occurring on or after January 1, 2017; 437
[(xxiii)] (xxii) To the extent properly includable in gross income for 438
federal income tax purposes, the amount of any financial assistance 439
received from the Crumbling Foundations Assistance Fund or paid to 440
or on behalf of the owner of a residential building pursuant to sections 441
8-442 and 8-443; [, and] 442
[(xxiv)] (xxiii) To the extent properly includable in gross income for 443
federal income tax purposes, the amount calculated pursuant to 444
subsection (b) of section 12-704g for income received by a general 445
partner of a venture capital fund, as defined in 17 CFR 275.203(l)-1, as 446
amended from time to time; and 447
[(xxv)] (xxiv) To the extent any portion of a deduction under Section 448
179 of the Internal Revenue Code was added to federal adjusted gross 449
Governor's Bill No. 877
LCO No. 4566 16 of 138
income pursuant to subparagraph (A)(xiv) of this subdivision in 450
computing Connecticut adjusted gross income, twenty-five per cent of 451
such disallowed portion of the deduction in each of the four 452
succeeding taxable years. 453
Sec. 4. Section 12-701 of the general statutes is amended by adding 454
subsection (d) as follows (Effective from passage): 455
(NEW) (d) The provisions of section 12-722 shall not apply to any 456
additional tax due as a result of the changes made to subparagraph (B) 457
of subdivision (20) of subsection (a) of this section pursuant to section 458
3 of this act for any taxable year commencing prior to the effective date 459
of section 3 of this act. 460
Sec. 5. Subdivision (8) of subsection (b) of section 12-214 of the 461
general statutes is repealed and the following is substituted in lieu 462
thereof (Effective from passage and applicable to income years commencing 463
on or after January 1, 2019): 464
(8) (A) With respect to income years commencing on or after 465
January 1, 2018, [and prior to January 1, 2019,] any company subject to 466
the tax imposed in accordance with subsection (a) of this section shall 467
pay, for such income year, except when the tax so calculated is equal to 468
two hundred fifty dollars, an additional tax in an amount equal to ten 469
per cent of the tax calculated under said subsection (a) for such income 470
year, without reduction of the tax so calculated by the amount of any 471
credit against such tax. The additional amount of tax determined 472
under this subsection for any income year shall constitute a part of the 473
tax imposed by the provisions of said subsection (a) and shall become 474
due and be paid, collected and enforced as provided in this chapter. 475
(B) Any company whose gross income for the income year was less 476
than one hundred million dollars shall not be subject to the additional 477
tax imposed under subparagraph (A) of this subdivision. This 478
exception shall not apply to taxable members of a combined group that 479
files a combined unitary tax return. 480
Governor's Bill No. 877
LCO No. 4566 17 of 138
Sec. 6. Section 12-214 of the general statutes is amended by adding 481
subsection (d) as follows (Effective from passage): 482
(NEW) (d) The provisions of section 12-242d shall not apply to any 483
additional tax due as a result of the changes made to subdivision (8) of 484
subsection (b) of this section pursuant to section 5 of this act for any 485
income year commencing prior to the effective date of section 5 of this 486
act. 487
Sec. 7. Subsection (b) of section 12-284b of the general statutes is 488
repealed and the following is substituted in lieu thereof (Effective from 489
passage and applicable to taxable years commencing on or after January 1, 490
2019): 491
(b) Each limited liability company, limited liability partnership, 492
limited partnership and S corporation shall be liable for the tax 493
imposed by this section for each taxable year or portion thereof that 494
such company, partnership or corporation is an affected business 495
entity. For taxable years commencing prior to January 1, 2013, each 496
affected business entity shall annually, on or before the fifteenth day of 497
the fourth month following the close of its taxable year, pay to the 498
Commissioner of Revenue Services a tax in the amount of two 499
hundred fifty dollars. For taxable years commencing on or after 500
January 1, 2013, but prior to January 1, 2019, each affected business 501
entity shall, on or before the fifteenth day of the fourth month 502
following the close of every other taxable year, pay to the 503
Commissioner of Revenue Services a tax in the amount of two 504
hundred fifty dollars. 505
Sec. 8. Subdivision (2) of subsection (e) of section 12-217jj of the 506
general statutes is repealed and the following is substituted in lieu 507
thereof (Effective from passage and applicable to taxable years commencing 508
on or after January 1, 2019): 509
(2) Notwithstanding the provisions of subdivision (1) of this 510
subsection, any entity that is not subject to tax under this chapter or 511
Governor's Bill No. 877
LCO No. 4566 18 of 138
chapter 207 shall not be subject to the limitations on the transfer of 512
credits provided in subparagraphs (B) and (C) of said subdivision (1), 513
provided such entity owns not less than fifty per cent, directly or 514
indirectly, of a business entity, [subject to tax under] as defined in 515
section 12-284b, as amended by this act. 516
Sec. 9. Section 12-640 of the general statutes is repealed and the 517
following is substituted in lieu thereof (Effective from passage and 518
applicable to gifts made on or after January 1, 2019): 519
For [the calendar year 1991 and each year thereafter] calendar years 520
commencing January 1, 1991, but prior to January 1, 2019, a tax 521
computed as provided in section 12-642, as amended by this act, is 522
hereby imposed on the transfer of property by gift during such taxable 523
year by any individual resident or nonresident provided, for the 524
calendar year commencing January 1, 1991, such tax shall be imposed 525
only on those gifts [which are] that were transferred on or after 526
September 1, 1991. 527
Sec. 10. Section 12-642 of the general statutes is repealed and the 528
following is substituted in lieu thereof (Effective from passage): 529
(a) (1) With respect to calendar years commencing prior to January 530
1, 2001, the tax imposed by section 12-640, as amended by this act, for 531
the calendar year shall be at a rate of the taxable gifts made by the 532
donor during the calendar year set forth in the following schedule: 533
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
Governor's Bill No. 877
LCO No. 4566 19 of 138
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, 534
January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed 535
by section 12-640, as amended by this act, for each such calendar year 536
shall be at a rate of the taxable gifts made by the donor during the 537
calendar year set forth in the following schedule: 538
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
T23 over $675,000
(3) With respect to Connecticut taxable gifts, as defined in section 539
12-643, as amended by this act, made by a donor during a calendar 540
year commencing on or after January 1, 2005, but prior to January 1, 541
2010, including the aggregate amount of all Connecticut taxable gifts 542
made by the donor during all calendar years commencing on or after 543
January 1, 2005, but prior to January 1, 2010, the tax imposed by 544
section 12-640, as amended by this act, for the calendar year shall be at 545
the rate set forth in the following schedule, with a credit allowed 546
against such tax for any tax previously paid to this state pursuant to 547
this subdivision: 548
Governor's Bill No. 877
LCO No. 4566 20 of 138
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
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 549
12-643, as amended by this act, made by a donor during a calendar 550
year commencing on or after January 1, 2010, but prior to January 1, 551
2011, including the aggregate amount of all Connecticut taxable gifts 552
made by the donor during all calendar years commencing on or after 553
January 1, 2005, the tax imposed by section 12-640, as amended by this 554
act, for the calendar year shall be at the rate set forth in the following 555
Governor's Bill No. 877
LCO No. 4566 21 of 138
schedule, with a credit allowed against such tax for any tax previously 556
paid to this state pursuant to this subdivision or pursuant to 557
subdivision (3) of this subsection, provided such credit shall not 558
exceed the amount of tax imposed by this section: 559
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
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 560
12-643, as amended by this act, made by a donor during a calendar 561
year commencing on or after January 1, 2011, but prior to January 1, 562
2018, including the aggregate amount of all Connecticut taxable gifts 563
made by the donor during all calendar years commencing on or after 564
January 1, 2005, the tax imposed by section 12-640, as amended by this 565
act, for the calendar year shall be at the rate set forth in the following 566
schedule, with a credit allowed against such tax for any tax previously 567
Governor's Bill No. 877
LCO No. 4566 22 of 138
paid to this state pursuant to this subdivision or pursuant to 568
subdivision (3) or (4) of this subsection, provided such credit shall not 569
exceed the amount of tax imposed by this section: 570
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
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 571
12-643, as amended by this act, made by a donor during a calendar 572
year commencing on or after January 1, 2018, but prior to January 1, 573
2019, including the aggregate amount of all Connecticut taxable gifts 574
made by the donor during all calendar years commencing on or after 575
January 1, 2005, the tax imposed by section 12-640, as amended by this 576
act, for the calendar year shall be at the rate set forth in the following 577
schedule, with a credit allowed against such tax for any tax previously 578
paid to this state pursuant to this subdivision or pursuant to 579
Governor's Bill No. 877
LCO No. 4566 23 of 138
subdivision (3), (4) or (5) of this subsection, provided such credit shall 580
not exceed the amount of tax imposed by this section: 581
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
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 582
12-643, made by a donor during a calendar year commencing on or 583
after January 1, 2019, but prior to January 1, 2020, including the 584
aggregate amount of all Connecticut taxable gifts made by the donor 585
during all calendar years commencing on or after January 1, 2005, the 586
tax imposed by section 12-640 for the calendar year shall be at the rate 587
set forth in the following schedule, with a credit allowed against such 588
tax for any tax previously paid to this state pursuant to this 589
subdivision or pursuant to subdivision (3), (4), (5) or (6) of this 590
subsection, provided such credit shall not exceed the amount of tax 591
Governor's Bill No. 877
LCO No. 4566 24 of 138
imposed by this section: 592
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
(8) With respect to Connecticut taxable gifts, as defined in section 593
12-643, made by a donor during a calendar year commencing on or 594
after January 1, 2020, but prior to January 1, 2021, including the 595
aggregate amount of all Connecticut taxable gifts made by the donor 596
during all calendar years commencing on or after January 1, 2005, the 597
tax imposed by section 12-640 for the calendar year shall be at the rate 598
set forth in the following schedule, with a credit allowed against such 599
tax for any tax previously paid to this state pursuant to this 600
subdivision or pursuant to subdivision (3), (4), (5), (6) or (7) of this 601
subsection, provided such credit shall not exceed the amount of tax 602
imposed by this section: 603
T128 Amount of Taxable Gifts Rate of Tax
Governor's Bill No. 877
LCO No. 4566 25 of 138
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 604
12-643, made by a donor during a calendar year commencing on or 605
after January 1, 2021, but prior to January 1, 2022, including the 606
aggregate amount of all Connecticut taxable gifts made by the donor 607
during all calendar years commencing on or after January 1, 2005, the 608
tax imposed by section 12-640 for the calendar year shall be at the rate 609
set forth in the following schedule, with a credit allowed against such 610
tax for any tax previously paid to this state pursuant to this 611
subdivision or pursuant to subdivision (3), (4), (5), (6), (7) or (8) of this 612
subsection, provided such credit shall not exceed the amount of tax 613
imposed by this section: 614
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
Governor's Bill No. 877
LCO No. 4566 26 of 138
T151 over $10,100,000
(10) With respect to Connecticut taxable gifts, as defined in section 615
12-643, made by a donor during a calendar year commencing on or 616
after January 1, 2022, but prior to January 1, 2023, including the 617
aggregate amount of all Connecticut taxable gifts made by the donor 618
during all calendar years commencing on or after January 1, 2005, the 619
tax imposed by section 12-640 for the calendar year shall be at the rate 620
set forth in the following schedule, with a credit allowed against such 621
tax for any tax previously paid to this state pursuant to this 622
subdivision or pursuant to subdivision (3), (4), (5), (6), (7), (8) or (9) of 623
this subsection, provided such credit shall not exceed the amount of 624
tax imposed by this section: 625
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 626
12-643, made by a donor during a calendar year commencing on or 627
after January 1, 2023, including the aggregate amount of all 628
Connecticut taxable gifts made by the donor during all calendar years 629
commencing on or after January 1, 2005, the tax imposed by section 12-630
640 for the calendar year shall be at the rate set forth in the following 631
schedule, with a credit allowed against such tax for any tax previously 632
paid to this state pursuant to this subdivision or pursuant to 633
subdivision (3), (4), (5), (6), (7), (8), (9) or (10) of this subsection, 634
provided such credit shall not exceed the amount of tax imposed by 635
this section: 636
T158 Amount of Taxable Gifts Rate of Tax
Governor's Bill No. 877
LCO No. 4566 27 of 138
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 637
be paid by the donor. If the gift tax is not paid when due the donee of 638
any gift shall be personally liable for the tax to the extent of the value 639
of the gift. 640
(c) [(1)] With respect to Connecticut taxable gifts, as defined in 641
section 12-643, as amended by this act, made by a donor during a 642
calendar year commencing on or after January 1, 2016, but prior to 643
January 1, 2019, the aggregate amount of tax imposed by section 12-644
640, as amended by this act, for all calendar years commencing on or 645
after January 1, 2016, shall not exceed twenty million dollars. 646
[(2) With respect to Connecticut taxable gifts, as defined in section 647
12-643, made by a donor during a calendar year commencing on or 648
after January 1, 2019, the aggregate amount of tax imposed by section 649
12-640 for all calendar years commencing on or after January 1, 2016, 650
shall not exceed fifteen million dollars.] 651
Sec. 11. Subdivision (3) of section 12-643 of the general statutes is 652
repealed and the following is substituted in lieu thereof (Effective from 653
passage and applicable to estates of decedents dying on or after January 1, 654
2019): 655
(3) "Connecticut taxable gifts" means taxable gifts made during a 656
calendar year commencing on or after January 1, 2005, but prior to 657
January 1, 2019, that are, (A) for residents of this state, taxable gifts, 658
wherever located, but excepting gifts of real estate or tangible personal 659
property located outside this state, and (B) for nonresidents of this 660
state, gifts of real estate or tangible personal property located within 661
this state. 662
Governor's Bill No. 877
LCO No. 4566 28 of 138
Sec. 12. Subsections (a) to (e), inclusive, of section 12-391 of the 663
general statutes are repealed and the following is substituted in lieu 664
thereof (Effective from passage and applicable to estates of decedents dying on 665
or after January 1, 2019): 666
(a) With respect to estates of decedents who die prior to January 1, 667
2005, and except as otherwise provided in section 59 of public act 03-1 668
of the June 30 special session, a tax is imposed upon the transfer of the 669
estate of each person who at the time of death was a resident of this 670
state. The amount of the tax shall be the amount of the federal credit 671
allowable for estate, inheritance, legacy and succession taxes paid to 672
any state or the District of Columbia under the provisions of the 673
federal internal revenue code in force at the date of such decedent's 674
death in respect to any property owned by such decedent or subject to 675
such taxes as part of or in connection with the estate of such decedent. 676
If real or tangible personal property of such decedent is located outside 677
this state and is subject to estate, inheritance, legacy, or succession 678
taxes by any state or states, other than the state of Connecticut, or by 679
the District of Columbia for which such federal credit is allowable, the 680
amount of tax due under this section shall be reduced by the lesser of: 681
(1) The amount of any such taxes paid to such other state or states or 682
said district and allowed as a credit against the federal estate tax; or (2) 683
an amount computed by multiplying such federal credit by a fraction, 684
(A) the numerator of which is the value of that part of the decedent's 685
gross estate over which such other state or states or said district have 686
jurisdiction for estate tax purposes to the same extent to which this 687
state would assert jurisdiction for estate tax purposes under this 688
chapter with respect to the residents of such other state or states or 689
said district, and (B) the denominator of which is the value of the 690
decedent's gross estate. Property of a resident estate over which this 691
state has jurisdiction for estate tax purposes includes real property 692
situated in this state, tangible personal property having an actual situs 693
in this state, and intangible personal property owned by the decedent, 694
regardless of where it is located. The amount of any estate tax imposed 695
Governor's Bill No. 877
LCO No. 4566 29 of 138
under this subsection shall also be reduced, but not below zero, by the 696
amount of any tax that is imposed under chapter 216 and that is 697
actually paid to this state. 698
(b) With respect to the estates of decedents who die prior to January 699
1, 2005, and except as otherwise provided in section 59 of public act 03-700
1 of the June 30 special session, a tax is imposed upon the transfer of 701
the estate of each person who at the time of death was a nonresident of 702
this state, the amount of which shall be computed by multiplying (1) 703
the federal credit allowable for estate, inheritance, legacy, and 704
succession taxes paid to any state or states or the District of Columbia 705
under the provisions of the federal internal revenue code in force at the 706
date of such decedent's death in respect to any property owned by 707
such decedent or subject to such taxes as a part of or in connection 708
with the estate of such decedent by (2) a fraction, (A) the numerator of 709
which is the value of that part of the decedent's gross estate over which 710
this state has jurisdiction for estate tax purposes and (B) the 711
denominator of which is the value of the decedent's gross estate. 712
Property of a nonresident estate over which this state has jurisdiction 713
for estate tax purposes includes real property situated in this state and 714
tangible personal property having an actual situs in this state. The 715
amount of any estate tax imposed under this subsection shall also be 716
reduced, but not below zero, by the amount of any tax that is imposed 717
under chapter 216 and that is actually paid to this state. 718
(c) For purposes of this section and section 12-392, as amended by 719
this act: 720
(1) (A) "Connecticut taxable estate" means, with respect to the 721
estates of decedents dying on or after January 1, 2005, but prior to 722
January 1, 2010, (i) the gross estate less allowable deductions, as 723
determined under Chapter 11 of the Internal Revenue Code, plus (ii) 724
the aggregate amount of all Connecticut taxable gifts, as defined in 725
section 12-643, as amended by this act, made by the decedent for all 726
calendar years beginning on or after January 1, 2005, but prior to 727
Governor's Bill No. 877
LCO No. 4566 30 of 138
January 1, 2010. The deduction for state death taxes paid under Section 728
2058 of said code shall be disregarded. 729
(B) "Connecticut taxable estate" means, with respect to the estates of 730
decedents dying on or after January 1, 2010, but prior to January 1, 731
2015, (i) the gross estate less allowable deductions, as determined 732
under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 733
amount of all Connecticut taxable gifts, as defined in section 12-643, as 734
amended by this act, made by the decedent for all calendar years 735
beginning on or after January 1, 2005, but prior to January 1, 2015. The 736
deduction for state death taxes paid under Section 2058 of said code 737
shall be disregarded. 738
(C) "Connecticut taxable estate" means, with respect to the estates of 739
decedents dying on or after January 1, 2015, but prior to January 1, 740
2019, (i) the gross estate less allowable deductions, as determined 741
under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 742
amount of all Connecticut taxable gifts, as defined in section 12-643, as 743
amended by this act, made by the decedent for all calendar years 744
beginning on or after January 1, 2005, but prior to January 1, 2019, 745
other than Connecticut taxable gifts that are includable in the gross 746
estate for federal estate tax purposes of the decedent, plus (iii) the 747
amount of any tax paid to this state pursuant to section 12-642, as 748
amended by this act, by the decedent or the decedent's estate on any 749
gift made by the decedent or the decedent's spouse during the three-750
year period preceding the date of the decedent's death. The deduction 751
for state death taxes paid under Section 2058 of the Internal Revenue 752
Code shall be disregarded. 753
(D) "Connecticut taxable estate" means, with respect to the estates of 754
decedents dying on or after January 1, 2019, (i) the gross estate less 755
allowable deductions, as determined under Chapter 11 of the Internal 756
Revenue Code, plus (ii) the aggregate amount of all taxable gifts, as 757
defined in section 12-643, as amended by this act, made by the 758
decedent for all calendar years beginning on or after January 1, 2005, 759
Governor's Bill No. 877
LCO No. 4566 31 of 138
but prior to January 1, 2019, other than Connecticut taxable gifts that 760
are includable in the gross estate for federal tax purposes of the 761
decedent, plus (iii) the amount of any tax paid to this state pursuant to 762
section 12-642, as amended by this act, by the decedent or the 763
decedent's estate on any gift made by the decedent or the decedent's 764
spouse during the three-year period preceding the date of the 765
decedent's death, plus (iv) the amount of any taxable gift, as defined in 766
Section 2503 of the Internal Revenue Code, excluding any taxable gift 767
made when the decedent was a nonresident or that is real property or 768
tangible personal property having an actual situs outside this state at 769
the time the gift was made, that is (I) made on or after January 1, 2019, 770
(II) not otherwise included in the decedent's gross estate, and (III) 771
made during the three-year period preceding the date of the decedent's 772
death. The deduction for state death taxes paid under Section 2058 of 773
the Internal Revenue Code shall be disregarded. 774
(2) "Internal Revenue Code" means the Internal Revenue Code of 775
1986, or any subsequent corresponding internal revenue code of the 776
United States, as amended from time to time, except in the event of 777
repeal of the federal estate tax, then all references to the Internal 778
Revenue Code in this section shall mean the Internal Revenue Code as 779
in force on the day prior to the effective date of such repeal. 780
(3) "Gross estate" means the gross estate, for federal estate tax 781
purposes. 782
(4) "Federal basic exclusion amount" means the dollar amount 783
published annually by the Internal Revenue Service at which a 784
decedent would be required to file a federal estate tax return based on 785
the value of the decedent's gross estate and federally taxable gifts. 786
(d) (1) (A) With respect to the estates of decedents who die on or 787
after January 1, 2005, but prior to January 1, 2010, a tax is imposed 788
upon the transfer of the estate of each person who at the time of death 789
was a resident of this state. The amount of the tax shall be determined 790
Governor's Bill No. 877
LCO No. 4566 32 of 138
using the schedule in subsection (g) of this section. A credit shall be 791
allowed against such tax for any taxes paid to this state pursuant to 792
section 12-642, as amended by this act, for Connecticut taxable gifts 793
made on or after January 1, 2005, but prior to January 1, 2010. 794
(B) With respect to the estates of decedents who die on or after 795
January 1, 2010, but prior to January 1, 2015, a tax is imposed upon the 796
transfer of the estate of each person who at the time of death was a 797
resident of this state. The amount of the tax shall be determined using 798
the schedule in subsection (g) of this section. A credit shall be allowed 799
against such tax for any taxes paid to this state pursuant to section 12-800
642, as amended by this act, for Connecticut taxable gifts made on or 801
after January 1, 2005, but prior to January 1, 2015, provided such credit 802
shall not exceed the amount of tax imposed by this section. 803
(C) With respect to the estates of decedents who die on or after 804
January 1, 2015, but prior to January 1, 2016, a tax is imposed upon the 805
transfer of the estate of each person who at the time of death was a 806
resident of this state. The amount of the tax shall be determined using 807
the schedule in subsection (g) of this section. A credit shall be allowed 808
against such tax for (i) any taxes paid to this state pursuant to section 809
12-642, as amended by this act, by the decedent or the decedent's estate 810
for Connecticut taxable gifts made on or after January 1, 2005, but prior 811
to January 1, 2016, and (ii) any taxes paid by the decedent's spouse to 812
this state pursuant to section 12-642, as amended by this act, for 813
Connecticut taxable gifts made by the decedent on or after January 1, 814
2005, but prior to January 1, 2016, that are includable in the gross estate 815
of the decedent, provided such credit shall not exceed the amount of 816
tax imposed by this section. 817
(D) With respect to the estates of decedents who die on or after 818
January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 819
transfer of the estate of each person who at the time of death was a 820
resident of this state. The amount of the tax shall be determined using 821
the schedule in subsection (g) of this section. A credit shall be allowed 822
Governor's Bill No. 877
LCO No. 4566 33 of 138
against such tax for (i) any taxes paid to this state pursuant to section 823
12-642, as amended by this act, by the decedent or the decedent's estate 824
for Connecticut taxable gifts made on or after January 1, 2005, but prior 825
to January 1, 2019, and (ii) any taxes paid by the decedent's spouse to 826
this state pursuant to section 12-642, as amended by this act, for 827
Connecticut taxable gifts made by the decedent on or after January 1, 828
2005, but prior to January 1, 2019, that are includable in the gross estate 829
of the decedent, provided such credit shall not exceed the amount of 830
tax imposed by this section. In no event shall the amount of tax 831
payable under this section exceed twenty million dollars. Such twenty-832
million-dollar limit shall be reduced by the amount of (I) any taxes 833
paid to this state pursuant to section 12-642, as amended by this act, by 834
the decedent or the decedent's estate for Connecticut taxable gifts 835
made on or after January 1, 2016, and (II) any taxes paid by the 836
decedent's spouse to this state pursuant to section 12-642, as amended 837
by this act, for Connecticut taxable gifts made by the decedent on or 838
after January 1, 2016, but prior to January 1, 2019, that are includable in 839
the gross estate of the decedent, but in no event shall the amount be 840
reduced below zero. 841
(E) With respect to the estates of decedents who die on or after 842
January 1, 2019, a tax is imposed upon the transfer of the estate of each 843
person who at the time of death was a resident of this state. The 844
amount of the tax shall be determined using the schedule in subsection 845
(g) of this section. A credit shall be allowed against such tax for (i) any 846
taxes paid to this state pursuant to section 12-642, as amended by this 847
act, by the decedent or the decedent's estate for Connecticut taxable 848
gifts made on or after January 1, 2005, and (ii) any taxes paid by the 849
decedent's spouse to this state pursuant to section 12-642, as amended 850
by this act, for Connecticut taxable gifts made by the decedent on or 851
after January 1, 2005, that are includable in the gross estate of the 852
decedent, provided such credit shall not exceed the amount of tax 853
imposed by this section. In no event shall the amount of tax payable 854
under this section exceed fifteen million dollars. Such fifteen-million-855
Governor's Bill No. 877
LCO No. 4566 34 of 138
dollar limit shall be reduced by the amount of (I) any taxes paid to this 856
state pursuant to section 12-642, as amended by this act, by the 857
decedent or the decedent's estate for Connecticut taxable gifts made on 858
or after January 1, 2016, and (II) any taxes paid by the decedent's 859
spouse to this state pursuant to section 12-642, as amended by this act, 860
for Connecticut taxable gifts made by the decedent on or after January 861
1, 2016, that are includable in the gross estate of the decedent, but in no 862
event shall the amount be reduced below zero. 863
(2) If real or tangible personal property of such decedent is located 864
outside this state, the amount of tax due under this section shall be 865
reduced by an amount computed by multiplying the tax otherwise due 866
pursuant to subdivision (1) of this subsection, without regard to the 867
credit allowed for any taxes paid to this state pursuant to section 12-868
642, as amended by this act, by a fraction, (A) the numerator of which 869
is the value of that part of the decedent's gross estate attributable to 870
real or tangible personal property located outside of the state, and (B) 871
the denominator of which is the value of the decedent's gross estate. 872
(3) For a resident estate, the state shall have the power to levy the 873
estate tax upon real property situated in this state, tangible personal 874
property having an actual situs in this state and intangible personal 875
property included in the gross estate of the decedent, regardless of 876
where it is located. The state is permitted to calculate the estate tax and 877
levy said tax to the fullest extent permitted by the Constitution of the 878
United States. 879
(e) (1) (A) With respect to the estates of decedents who die on or 880
after January 1, 2005, but prior to January 1, 2010, a tax is imposed 881
upon the transfer of the estate of each person who at the time of death 882
was a nonresident of this state. The amount of such tax shall be 883
computed by multiplying (i) the amount of tax determined using the 884
schedule in subsection (g) of this section by (ii) a fraction, the 885
numerator of which is the value of that part of the decedent's gross 886
estate over which this state has jurisdiction for estate tax purposes, and 887
Governor's Bill No. 877
LCO No. 4566 35 of 138
the denominator of which is the value of the decedent's gross estate. A 888
credit shall be allowed against such tax for any taxes paid to this state 889
pursuant to section 12-642, as amended by this act, for Connecticut 890
taxable gifts made on or after January 1, 2005, but prior to January 1, 891
2010. 892
(B) With respect to the estates of decedents who die on or after 893
January 1, 2010, but prior to January 1, 2016, a tax is imposed upon the 894
transfer of the estate of each person who at the time of death was a 895
nonresident of this state. The amount of such tax shall be computed by 896
multiplying (i) the amount of tax determined using the schedule in 897
subsection (g) of this section by (ii) a fraction, the numerator of which 898
is the value of that part of the decedent's gross estate over which this 899
state has jurisdiction for estate tax purposes, and the denominator of 900
which is the value of the decedent's gross estate. A credit shall be 901
allowed against such tax for any taxes paid to this state pursuant to 902
section 12-642, as amended by this act, for Connecticut taxable gifts 903
made on or after January 1, 2005, but prior to January 1, 2016, provided 904
such credit shall not exceed the amount of tax imposed by this section. 905
(C) With respect to the estates of decedents who die on or after 906
January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 907
transfer of the estate of each person who at the time of death was a 908
nonresident of this state. The amount of such tax shall be computed by 909
multiplying (i) the amount of tax determined using the schedule in 910
subsection (g) of this section by (ii) a fraction, the numerator of which 911
is the value of that part of the decedent's gross estate over which this 912
state has jurisdiction for estate tax purposes, and the denominator of 913
which is the value of the decedent's gross estate. A credit shall be 914
allowed against such tax for any taxes paid to this state pursuant to 915
section 12-642, as amended by this act, for Connecticut taxable gifts 916
made on or after January 1, 2005, but prior to January 1, 2019, provided 917
such credit shall not exceed the amount of tax imposed by this section. 918
In no event shall the amount of tax payable under this section exceed 919
twenty million dollars. Such twenty-million-dollar limit shall be 920
Governor's Bill No. 877
LCO No. 4566 36 of 138
reduced by the amount of (I) any taxes paid to this state pursuant to 921
section 12-642, as amended by this act, by the decedent or the 922
decedent's estate for Connecticut taxable gifts made on or after January 923
1, 2016, but prior to January 1, 2019, and (II) any taxes paid by the 924
decedent's spouse to this state pursuant to section 12-642, as amended 925
by this act, for Connecticut taxable gifts made by the decedent on or 926
after January 1, 2016, but prior to January 1, 2019, that are includable in 927
the gross estate of the decedent, but in no event shall the amount be 928
reduced below zero. 929
(D) With respect to the estates of decedents who die on or after 930
January 1, 2019, a tax is imposed upon the transfer of the estate of each 931
person who at the time of death was a nonresident of this state. The 932
amount of such tax shall be computed by multiplying the amount of 933
tax determined using the schedule in subsection (g) of this section by a 934
fraction, the numerator of which is the value of that part of the 935
decedent's gross estate over which this state has jurisdiction for estate 936
tax purposes, and the denominator of which is the value of the 937
decedent's gross estate. A credit shall be allowed against such tax for 938
(i) any taxes paid to this state pursuant to section 12-642, as amended 939
by this act, by the decedent or the decedent's estate for Connecticut 940
taxable gifts made on or after January 1, 2005, and (ii) any taxes paid 941
by the decedent's spouse to this state pursuant to section 12-642, as 942
amended by this act, for Connecticut taxable gifts made by the 943
decedent on or after January 1, 2005, that are includable in the gross 944
estate of the decedent, provided such credit shall not exceed the 945
amount of tax imposed by this section. In no event shall the amount of 946
tax payable under this section exceed fifteen million dollars. Such 947
fifteen-million-dollar limit shall be reduced by the amount of (I) any 948
taxes paid to this state pursuant to section 12-642, as amended by this 949
act, by the decedent or the decedent's estate for Connecticut taxable 950
gifts made on or after January 1, 2016, and (II) any taxes paid by the 951
decedent's spouse to this state pursuant to section 12-642, as amended 952
by this act, for Connecticut taxable gifts made by the decedent on or 953
Governor's Bill No. 877
LCO No. 4566 37 of 138
after January 1, 2016, that are includable in the gross estate of the 954
decedent, but in no event shall the amount be reduced below zero. 955
(2) For a nonresident estate, the state shall have the power to levy 956
the estate tax upon all real property situated in this state and tangible 957
personal property having an actual situs in this state. The state is 958
permitted to calculate the estate tax and levy said tax to the fullest 959
extent permitted by the Constitution of the United States. 960
Sec. 13. Subsections (a) and (b) of section 12-392 of the general 961
statutes are repealed and the following is substituted in lieu thereof 962
(Effective from passage and applicable to estates of decedents dying on or after 963
January 1, 2019): 964
(a) (1) (A) For the estates of decedents dying prior to July 1, 2009, the 965
tax imposed by this chapter shall become due at the date of the taxable 966
transfer and shall become payable, and shall be paid, without 967
assessment, notice or demand, to the Commissioner of Revenue 968
Services at the expiration of nine months from the date of death. For 969
the estates of decedents dying on or after July 1, 2009, but prior to 970
January 1, 2019, the tax imposed by this chapter shall become due at 971
the date of the taxable transfer and shall become payable and shall be 972
paid, without assessment, notice or demand, to the commissioner at 973
the expiration of six months from the date of death. For the estates of 974
decedents dying on or after January 1, 2019, the tax imposed by this 975
chapter shall become due at the date of the taxable transfer and shall 976
become payable and shall be paid, without assessment, notice or 977
demand, to the commissioner at the expiration of nine months from 978
the date of death. 979
(B) Executors, administrators, trustees, grantees, donees, 980
beneficiaries and surviving joint owners shall be liable for the tax and 981
for any interest or penalty thereon until it is paid, notwithstanding any 982
provision of chapter 802b, except that no executor, administrator, 983
trustee, grantee, donee, beneficiary or surviving joint owner shall be 984
Governor's Bill No. 877
LCO No. 4566 38 of 138
liable for a greater sum than the value of the property actually received 985
by him or her. If the amount of tax reported to be due on the return is 986
not paid [, for the estates of decedents dying prior to July 1, 2009, 987
within such nine months, or for the estates of decedents dying on or 988
after July 1, 2009, within such six months] within the time period set 989
forth in subparagraph (A) of this subdivision, there shall be imposed a 990
penalty equal to ten per cent of such amount due and unpaid, or fifty 991
dollars, whichever is greater. Such amount shall bear interest at the 992
rate of one per cent per month or fraction thereof from the due date of 993
such tax until the date of payment. Subject to the provisions of section 994
12-3a, the commissioner may waive all or part of the penalties 995
provided under this chapter when it is proven to the commissioner's 996
satisfaction that the failure to pay any tax was due to reasonable cause 997
and was not intentional or due to neglect. 998
(2) The Commissioner of Revenue Services may, for reasonable 999
cause shown, extend the time for payment. The commissioner may 1000
require the filing of a tentative return and the payment of the tax 1001
reported to be due thereon in connection with such extension. Any 1002
additional tax [which] that may be found to be due on the filing of a 1003
return as allowed by such extension shall bear interest at the rate of 1004
one per cent per month or fraction thereof from the original due date 1005
of such tax to the date of actual payment. 1006
(3) (A) Whenever there is a claimed overpayment of the tax imposed 1007
by this chapter, the Commissioner of Revenue Services shall return to 1008
the fiduciary or transferee the overpayment which shall bear interest at 1009
the rate of two-thirds of one per cent per month or fraction thereof, 1010
such interest commencing, for the estates of decedents dying prior to 1011
July 1, 2009, or on or after January 1, 2019, from the expiration of nine 1012
months after the death of the transferor or date of payment, whichever 1013
is later, or, for the estates of decedents dying on or after July 1, 2009, 1014
but prior to January 1, 2019, from the expiration of six months after the 1015
death of the transferor or date of payment, whichever is later, as 1016
provided in subparagraphs (B) and (C) of this subdivision. 1017
Governor's Bill No. 877
LCO No. 4566 39 of 138
(B) In case of such overpayment pursuant to a tax return, no interest 1018
shall be allowed or paid under this subdivision on such overpayment 1019
for any month or fraction thereof prior to (i) the ninety-first day after 1020
the last day prescribed for filing the tax return associated with such 1021
overpayment, determined without regard to any extension of time for 1022
filing, or (ii) the ninety-first day after the date such return was filed, 1023
whichever is later. 1024
(C) In case of such overpayment pursuant to an amended tax return, 1025
no interest shall be allowed or paid under this subdivision on such 1026
overpayment for any month or fraction thereof prior to the ninety-first 1027
day after the date such amended tax return was filed. 1028
(b) (1) The tax imposed by this chapter shall be reported on a tax 1029
return which shall be filed on or before the date fixed for paying the 1030
tax, determined without regard to any extension of time for paying the 1031
tax. The commissioner shall design a form of return and forms for such 1032
additional statements or schedules as the commissioner may require to 1033
be filed. Such forms shall provide for the setting forth of such facts as 1034
the commissioner deems necessary for the proper enforcement of this 1035
chapter. The commissioner shall furnish appropriate forms to each 1036
taxpayer upon application or otherwise as the commissioner deems 1037
necessary. Failure to receive a form shall not relieve any person from 1038
the obligation to file a return under the provisions of this chapter. In 1039
any case in which the commissioner believes that it would be 1040
advantageous to him or her in the administration of the tax imposed 1041
by this chapter, the commissioner may require that a true copy of the 1042
federal estate tax return made to the Internal Revenue Service be 1043
provided. 1044
(2) Any tax return or other document, including any amended tax 1045
return under section 12-398, that is required to be filed under this 1046
chapter shall be filed, and shall be treated as filed, only if filed with (A) 1047
the Commissioner of Revenue Services, if required under subdivision 1048
(3) of this subsection, and (B) (i) the court of probate for the district 1049
Governor's Bill No. 877
LCO No. 4566 40 of 138
within which the decedent resided at the date of his or her death, or, 1050
(ii) if the decedent died a nonresident of this state, in the court of 1051
probate for the district within which real estate or tangible personal 1052
property of the decedent is situated. The return shall contain a 1053
statement, to be signed under penalty of false statement by the person 1054
who is required to make and file the return under this chapter, that the 1055
return has been filed with the Commissioner of Revenue Services, if 1056
required under subdivision (3) of this subsection, and the appropriate 1057
court of probate. 1058
(3) (A) A tax return shall be filed, in the case of every decedent who 1059
died prior to January 1, 2005, and at the time of death was (i) a resident 1060
of this state, or (ii) a nonresident of this state whose gross estate 1061
includes any real property situated in this state or tangible personal 1062
property having an actual situs in this state, whenever the personal 1063
representative of the estate is required by the laws of the United States 1064
to file a federal estate tax return. 1065
(B) A tax return shall be filed, in the case of every decedent who dies 1066
on or after January 1, 2005, but prior to January 1, 2010, and at the time 1067
of death was (i) a resident of this state, or (ii) a nonresident of this state 1068
whose gross estate includes any real property situated in this state or 1069
tangible personal property having an actual situs in this state. If the 1070
decedent's Connecticut taxable estate is over two million dollars, such 1071
tax return shall be filed with the Commissioner of Revenue Services 1072
and a copy of such return shall be filed with the court of probate for 1073
the district within which the decedent resided at the date of his or her 1074
death or, if the decedent died a nonresident of this state, the court of 1075
probate for the district within which such real property or tangible 1076
personal property is situated. If the decedent's Connecticut taxable 1077
estate is two million dollars or less, such return shall be filed with the 1078
court of probate for the district within which the decedent resided at 1079
the date of his or her death or, if the decedent died a nonresident of 1080
this state, the court of probate for the district within which such real 1081
property or tangible personal property is situated, and no such return 1082
Governor's Bill No. 877
LCO No. 4566 41 of 138
shall be filed with the Commissioner of Revenue Services. The judge of 1083
probate for the district in which such return is filed shall review each 1084
such return and shall issue a written opinion to the estate 1085
representative in each case in which the judge determines that the 1086
estate is not subject to tax under this chapter. 1087
(C) A tax return shall be filed, in the case of every decedent who 1088
dies on or after January 1, 2010, but prior to January 1, 2011, and at the 1089
time of death was (i) a resident of this state, or (ii) a nonresident of this 1090
state whose gross estate includes any real property situated in this 1091
state or tangible personal property having an actual situs in this state. 1092
If the decedent's Connecticut taxable estate is over three million five 1093
hundred thousand dollars, such tax return shall be filed with the 1094
Commissioner of Revenue Services and a copy of such return shall be 1095
filed with the court of probate for the district within which the 1096
decedent resided at the date of his or her death or, if the decedent died 1097
a nonresident of this state, the court of probate for the district within 1098
which such real property or tangible personal property is situated. If 1099
the decedent's Connecticut taxable estate is three million five hundred 1100
thousand dollars or less, such return shall be filed with the court of 1101
probate for the district within which the decedent resided at the date 1102
of his or her death or, if the decedent died a nonresident of this state, 1103
the court of probate for the district within which such real property or 1104
tangible personal property is situated, and no such return shall be filed 1105
with the Commissioner of Revenue Services. The judge of probate for 1106
the district in which such return is filed shall review each such return 1107
and shall issue a written opinion to the estate representative in each 1108
case in which the judge determines that the estate is not subject to tax 1109
under this chapter. 1110
(D) A tax return shall be filed, in the case of every decedent who 1111
dies on or after January 1, 2011, but prior to January 1, 2018, and at the 1112
time of death was (i) a resident of this state, or (ii) a nonresident of this 1113
state whose gross estate includes any real property situated in this 1114
state or tangible personal property having an actual situs in this state. 1115
Governor's Bill No. 877
LCO No. 4566 42 of 138
If the decedent's Connecticut taxable estate is over two million dollars, 1116
such tax return shall be filed with the Commissioner of Revenue 1117
Services and a copy of such return shall be filed with the court of 1118
probate for the district within which the decedent resided at the date 1119
of his or her death or, if the decedent died a nonresident of this state, 1120
the court of probate for the district within which such real property or 1121
tangible personal property is situated. If the decedent's Connecticut 1122
taxable estate is two million dollars or less, such return shall be filed 1123
with the court of probate for the district within which the decedent 1124
resided at the date of his or her death or, if the decedent died a 1125
nonresident of this state, the court of probate for the district within 1126
which such real property or tangible personal property is situated, and 1127
no such return shall be filed with the Commissioner of Revenue 1128
Services. The judge of probate for the district in which such return is 1129
filed shall review each such return and shall issue a written opinion to 1130
the estate representative in each case in which the judge determines 1131
that the estate is not subject to tax under this chapter. 1132
(E) A tax return shall be filed, in the case of every decedent who dies 1133
on or after January 1, 2018, but prior to January 1, 2019, and at the time 1134
of death was (i) a resident of this state, or (ii) a nonresident of this state 1135
whose gross estate includes any real property situated in this state or 1136
tangible personal property having an actual situs in this state. If the 1137
decedent's Connecticut taxable estate is over two million six hundred 1138
thousand dollars, such tax return shall be filed with the Commissioner 1139
of Revenue Services and a copy of such return shall be filed with the 1140
court of probate for the district within which the decedent resided at 1141
the date of his or her death or, if the decedent died a nonresident of 1142
this state, the court of probate for the district within which such real 1143
property or tangible personal property is situated. If the decedent's 1144
Connecticut taxable estate is two million six hundred thousand dollars 1145
or less, such return shall be filed with the court of probate for the 1146
district within which the decedent resided at the date of his or her 1147
death or, if the decedent died a nonresident of this state, the court of 1148
Governor's Bill No. 877
LCO No. 4566 43 of 138
probate for the district within which such real property or tangible 1149
personal property is situated, and no such return shall be filed with the 1150
Commissioner of Revenue Services. The judge of probate for the 1151
district in which such return is filed shall review each such return and 1152
shall issue a written opinion to the estate representative in each case in 1153
which the judge determines that the estate is not subject to tax under 1154
this chapter. 1155
(F) A tax return shall be filed, in the case of every decedent who dies 1156
on or after January 1, 2019, but prior to January 1, 2020, and at the time 1157
of death was (i) a resident of this state, or (ii) a nonresident of this state 1158
whose gross estate includes any real property situated in this state or 1159
tangible personal property having an actual situs in this state. If the 1160
decedent's Connecticut taxable estate is over three million six hundred 1161
thousand dollars, such tax return shall be filed with the Commissioner 1162
of Revenue Services and a copy of such return shall be filed with the 1163
court of probate for the district within which the decedent resided at 1164
the date of his or her death or, if the decedent died a nonresident of 1165
this state, the court of probate for the district within which such real 1166
property or tangible personal property is situated. If the decedent's 1167
Connecticut taxable estate is three million six hundred thousand 1168
dollars or less, such return shall be filed with the court of probate for 1169
the district within which the decedent resided at the date of his or her 1170
death or, if the decedent died a nonresident of this state, the court of 1171
probate for the district within which such real property or tangible 1172
personal property is situated, and no such return shall be filed with the 1173
Commissioner of Revenue Services. The judge of probate for the 1174
district in which such return is filed shall review each such return and 1175
shall issue a written opinion to the estate representative in each case in 1176
which the judge determines that the estate is not subject to tax under 1177
this chapter. 1178
(G) A tax return shall be filed, in the case of every decedent who 1179
dies on or after January 1, 2020, but prior to January 1, 2021, and at the 1180
time of death was (i) a resident of this state, or (ii) a nonresident of this 1181
Governor's Bill No. 877
LCO No. 4566 44 of 138
state whose gross estate includes any real property situated in this 1182
state or tangible personal property having an actual situs in this state. 1183
If the decedent's Connecticut taxable estate is over five million one 1184
hundred thousand dollars, such tax return shall be filed with the 1185
Commissioner of Revenue Services and a copy of such return shall be 1186
filed with the court of probate for the district within which the 1187
decedent resided at the date of his or her death or, if the decedent died 1188
a nonresident of this state, the court of probate for the district within 1189
which such real property or tangible personal property is situated. If 1190
the decedent's Connecticut taxable estate is five million one hundred 1191
thousand dollars or less, such return shall be filed with the court of 1192
probate for the district within which the decedent resided at the date 1193
of his or her death or, if the decedent died a nonresident of this state, 1194
the court of probate for the district within which such real property or 1195
tangible personal property is situated, and no such return shall be filed 1196
with the Commissioner of Revenue Services. The judge of probate for 1197
the district in which such return is filed shall review each such return 1198
and shall issue a written opinion to the estate representative in each 1199
case in which the judge determines that the estate is not subject to tax 1200
under this chapter. 1201
(H) A tax return shall be filed, in the case of every decedent who 1202
dies on or after January 1, 2021, but prior to January 1, 2022, and at the 1203
time of death was (i) a resident of this state, or (ii) a nonresident of this 1204
state whose gross estate includes any real property situated in this 1205
state or tangible personal property having an actual situs in this state. 1206
If the decedent's Connecticut taxable estate is over seven million one 1207
hundred thousand dollars, such tax return shall be filed with the 1208
Commissioner of Revenue Services and a copy of such return shall be 1209
filed with the court of probate for the district within which the 1210
decedent resided at the date of his or her death or, if the decedent died 1211
a nonresident of this state, the court of probate for the district within 1212
which such real property or tangible personal property is situated. If 1213
the decedent's Connecticut taxable estate is seven million one hundred 1214
Governor's Bill No. 877
LCO No. 4566 45 of 138
thousand dollars or less, such return shall be filed with the court of 1215
probate for the district within which the decedent resided at the date 1216
of his or her death or, if the decedent died a nonresident of this state, 1217
the court of probate for the district within which such real property or 1218
tangible personal property is situated, and no such return shall be filed 1219
with the Commissioner of Revenue Services. The judge of probate for 1220
the district in which such return is filed shall review each such return 1221
and shall issue a written opinion to the estate representative in each 1222
case in which the judge determines that the estate is not subject to tax 1223
under this chapter. 1224
(I) A tax return shall be filed, in the case of every decedent who dies 1225
on or after January 1, 2022, but prior to January 1, 2023, and at the time 1226
of death was (i) a resident of this state, or (ii) a nonresident of this state 1227
whose gross estate includes any real property situated in this state or 1228
tangible personal property having an actual situs in this state. If the 1229
decedent's Connecticut taxable estate is over nine million one hundred 1230
thousand dollars, such tax return shall be filed with the Commissioner 1231
of Revenue Services and a copy of such return shall be filed with the 1232
court of probate for the district within which the decedent resided at 1233
the date of his or her death or, if the decedent died a nonresident of 1234
this state, the court of probate for the district within which such real 1235
property or tangible personal property is situated. If the decedent's 1236
Connecticut taxable estate is nine million one hundred thousand 1237
dollars or less, such return shall be filed with the court of probate for 1238
the district within which the decedent resided at the date of his or her 1239
death or, if the decedent died a nonresident of this state, the court of 1240
probate for the district within which such real property or tangible 1241
personal property is situated, and no such return shall be filed with the 1242
Commissioner of Revenue Services. The judge of probate for the 1243
district in which such return is filed shall review each such return and 1244
shall issue a written opinion to the estate representative in each case in 1245
which the judge determines that the estate is not subject to tax under 1246
this chapter. 1247
Governor's Bill No. 877
LCO No. 4566 46 of 138
(J) A tax return shall be filed, in the case of every decedent who dies 1248
on or after January 1, 2023, and at the time of death was (i) a resident 1249
of this state, or (ii) a nonresident of this state whose gross estate 1250
includes any real property situated in this state or tangible personal 1251
property having an actual situs in this state. If the decedent's 1252
Connecticut taxable estate is over [five million four hundred ninety 1253
thousand dollars] the federal basic exclusion amount, such tax return 1254
shall be filed with the Commissioner of Revenue Services and a copy 1255
of such return shall be filed with the court of probate for the district 1256
within which the decedent resided at the date of his or her death or, if 1257
the decedent died a nonresident of this state, the court of probate for 1258
the district within which such real property or tangible personal 1259
property is situated. If the decedent's Connecticut taxable estate is 1260
equal to or less than [five million four hundred ninety thousand 1261
dollars] the federal basic exclusion amount, such return shall be filed 1262
with the court of probate for the district within which the decedent 1263
resided at the date of his or her death or, if the decedent died a 1264
nonresident of this state, the court of probate for the district within 1265
which such real property or tangible personal property is situated, and 1266
no such return shall be filed with the Commissioner of Revenue 1267
Services. The judge of probate for the district in which such return is 1268
filed shall review each such return and shall issue a written opinion to 1269
the estate representative in each case in which the judge determines 1270
that the estate is not subject to tax under this chapter. 1271
(4) The duly authorized executor or administrator shall file the 1272
return. If there is more than one executor or administrator, the return 1273
shall be made jointly by all. If there is no executor or administrator 1274
appointed, qualified and acting, each person in actual or constructive 1275
possession of any property of the decedent is constituted an executor 1276
for purposes of the tax and shall make and file a return. If in any case 1277
the executor is unable to make a complete return as to any part of the 1278
gross estate, the executor shall provide all the information available to 1279
him or her with respect to such property, including a full description, 1280
Governor's Bill No. 877
LCO No. 4566 47 of 138
and the name of every person holding a legal or beneficial interest in 1281
the property. If the executor is unable to make a return as to any 1282
property, each person holding a legal or equitable interest in such 1283
property shall, upon notice from the commissioner, make a return as to 1284
that part of the gross estate. 1285
(5) On or before the last day of the month next succeeding each 1286
calendar quarter, and commencing with the calendar quarter ending 1287
September 30, 2005, each court of probate shall file with the 1288
commissioner a report for the calendar quarter in such form as the 1289
commissioner may prescribe. The report shall pertain to returns filed 1290
with the court of probate during the calendar quarter. 1291
(6) The Commissioner of Revenue Services may, for reasonable 1292
cause shown, extend the time for filing the return. 1293
(7) If any person required to make and file the tax return under this 1294
chapter fails to file the return within the time prescribed, the 1295
commissioner may assess and compute the tax upon the best 1296
information obtainable. To the tax imposed upon the basis of such 1297
return, there shall be added an amount equal to ten per cent of such 1298
tax or fifty dollars, whichever is greater. The tax shall bear interest at 1299
the rate of one per cent per month or fraction thereof from the due date 1300
of such tax until the date of payment. 1301
(8) The commissioner shall provide notice of any (A) deficiency 1302
assessment with respect to the payment of any tax under this chapter, 1303
(B) assessment with respect to any failure to make and file a return 1304
under this chapter by a person required to file, and (C) tax return or 1305
other document, including any amended tax return under section 12-1306
398 that is required to be filed under this chapter to the court of 1307
probate for the district within which the commissioner contends that 1308
the decedent resided at the date of his or her death or, if the decedent 1309
died a nonresident of this state, to the court of probate for the district 1310
within which the commissioner contends that real estate or tangible 1311
Governor's Bill No. 877
LCO No. 4566 48 of 138
personal property of the decedent is situated. 1312
Sec. 14. Subdivision (1) of section 12-408 of the general statutes is 1313
repealed and the following is substituted in lieu thereof (Effective July 1314
1, 2019, and applicable to sales occurring on or after July 1, 2019): 1315
(1) (A) For the privilege of making any sales, as defined in 1316
subdivision (2) of subsection (a) of section 12-407, as amended by this 1317
act, at retail, in this state for a consideration, a tax is hereby imposed 1318
on all retailers at the rate of six and thirty-five-hundredths per cent of 1319
the gross receipts of any retailer from the sale of all tangible personal 1320
property sold at retail or from the rendering of any services 1321
constituting a sale in accordance with subdivision (2) of subsection (a) 1322
of section 12-407, as amended by this act, except, in lieu of said rate of 1323
six and thirty-five-hundredths per cent, the rates provided in 1324
subparagraphs (B) to (H), inclusive, of this subdivision; 1325
(B) (i) At a rate of [fifteen] seventeen per cent with respect to each 1326
transfer of occupancy, from the total amount of rent received by a hotel 1327
or lodging house for the first period not exceeding thirty consecutive 1328
calendar days; 1329
(ii) At a rate of [eleven] thirteen per cent with respect to each 1330
transfer of occupancy, from the total amount of rent received by a bed 1331
and breakfast establishment for the first period not exceeding thirty 1332
consecutive calendar days; 1333
(C) With respect to the sale of a motor vehicle to any individual who 1334
is a member of the armed forces of the United States and is on full-time 1335
active duty in Connecticut and who is considered, under 50 App USC 1336
574, a resident of another state, or to any such individual and the 1337
spouse thereof, at a rate of four and one-half per cent of the gross 1338
receipts of any retailer from such sales, provided such retailer requires 1339
and maintains a declaration by such individual, prescribed as to form 1340
by the commissioner and bearing notice to the effect that false 1341
statements made in such declaration are punishable, or other evidence, 1342
Governor's Bill No. 877
LCO No. 4566 49 of 138
satisfactory to the commissioner, concerning the purchaser's state of 1343
residence under 50 App USC 574; 1344
(D) (i) With respect to the sales of computer and data processing 1345
services occurring on or after July 1, 2001, at the rate of one per cent, 1346
and (ii) with respect to sales of Internet access services, on and after 1347
July 1, 2001, such services shall be exempt from such tax; 1348
(E) [(i)] With respect to the sales of labor that is otherwise taxable 1349
under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 1350
section 12-407 on existing vessels and repair or maintenance services 1351
on vessels occurring on and after July 1, 1999, such services shall be 1352
exempt from such tax; 1353
[(ii) With respect to the sale of a vessel, a motor for a vessel or a 1354
trailer used for transporting a vessel, at the rate of two and ninety-1355
nine-hundredths per cent, except that the sale of a vessel shall be 1356
exempt from such tax if such vessel is docked in this state for sixty or 1357
fewer days in a calendar year;] 1358
(F) With respect to patient care services for which payment is 1359
received by the hospital on or after July 1, 1999, and prior to July 1, 1360
2001, at the rate of five and three-fourths per cent and on and after July 1361
1, 2001, such services shall be exempt from such tax; 1362
(G) With respect to the rental or leasing of a passenger motor 1363
vehicle for a period of thirty consecutive calendar days or less, at a rate 1364
of nine and thirty-five-hundredths per cent; 1365
(H) With respect to the sale of (i) a motor vehicle for a sales price 1366
exceeding fifty thousand dollars, at a rate of seven and three-fourths 1367
per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1368
for a sales price exceeding five thousand dollars, at a rate of seven and 1369
three-fourths per cent on the entire sales price, and (iii) an article of 1370
clothing or footwear intended to be worn on or about the human body, 1371
a handbag, luggage, umbrella, wallet or watch for a sales price 1372
Governor's Bill No. 877
LCO No. 4566 50 of 138
exceeding one thousand dollars, at a rate of seven and three-fourths 1373
per cent on the entire sales price. For purposes of this subparagraph, 1374
"motor vehicle" has the meaning provided in section 14-1, but does not 1375
include a motor vehicle subject to the provisions of subparagraph (C) 1376
of this subdivision, a motor vehicle having a gross vehicle weight 1377
rating over twelve thousand five hundred pounds, or a motor vehicle 1378
having a gross vehicle weight rating of twelve thousand five hundred 1379
pounds or less that is not used for private passenger purposes, but is 1380
designed or used to transport merchandise, freight or persons in 1381
connection with any business enterprise and issued a commercial 1382
registration or more specific type of registration by the Department of 1383
Motor Vehicles; 1384
(I) The rate of tax imposed by this chapter shall be applicable to all 1385
retail sales upon the effective date of such rate, except that a new rate 1386
which represents an increase in the rate applicable to the sale shall not 1387
apply to any sales transaction wherein a binding sales contract without 1388
an escalator clause has been entered into prior to the effective date of 1389
the new rate and delivery is made within ninety days after the effective 1390
date of the new rate. For the purposes of payment of the tax imposed 1391
under this section, any retailer of services taxable under subdivision 1392
(37) of subsection (a) of section 12-407, as amended by this act, who 1393
computes taxable income, for purposes of taxation under the Internal 1394
Revenue Code of 1986, or any subsequent corresponding internal 1395
revenue code of the United States, as amended from time to time, 1396
[amended,] on an accounting basis which recognizes only cash or other 1397
valuable consideration actually received as income and who is liable 1398
for such tax only due to the rendering of such services may make 1399
payments related to such tax for the period during which such income 1400
is received, without penalty or interest, without regard to when such 1401
service is rendered; 1402
(J) (i) For calendar quarters ending on or after September 30, 2019, 1403
the commissioner shall deposit into the regional planning incentive 1404
account, established pursuant to section 4-66k, six and seven-tenths 1405
Governor's Bill No. 877
LCO No. 4566 51 of 138
per cent of the amounts received by the state from the tax imposed 1406
under subparagraph (B) of this subdivision and ten and seven-tenths 1407
per cent of the amounts received by the state from the tax imposed 1408
under subparagraph (G) of this subdivision; 1409
(ii) For calendar quarters ending on or after September 30, 2018, the 1410
commissioner shall deposit into the Tourism Fund established under 1411
section 10-395b ten per cent of the amounts received by the state from 1412
the tax imposed under subparagraph (B) of this subdivision; and 1413
[(K) For calendar months commencing on or after July 1, 2021, the 1414
commissioner shall deposit into the municipal revenue sharing 1415
account established pursuant to section 4-66l seven and nine-tenths per 1416
cent of the amounts received by the state from the tax imposed under 1417
subparagraph (A) of this subdivision; and] 1418
[(L)] (K) (i) For calendar months commencing on or after July 1, 1419
2017, the commissioner shall deposit into the Special Transportation 1420
Fund established under section 13b-68 seven and nine-tenths per cent 1421
of the amounts received by the state from the tax imposed under 1422
subparagraph (A) of this subdivision; 1423
(ii) For calendar months commencing on or after July 1, 2018, [but 1424
prior to July 1, 2019,] the commissioner shall deposit into the Special 1425
Transportation Fund established under section 13b-68 eight per cent of 1426
the amounts received by the state from the tax imposed under 1427
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1428
vehicle. [;] 1429
[(iii) For calendar months commencing on or after July 1, 2019, but 1430
prior to July 1, 2020, the commissioner shall deposit into the Special 1431
Transportation Fund established under section 13b-68 thirty-three per 1432
cent of the amounts received by the state from the tax imposed under 1433
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1434
vehicle; 1435
Governor's Bill No. 877
LCO No. 4566 52 of 138
(iv) For calendar months commencing on or after July 1, 2020, but 1436
prior to July 1, 2021, the commissioner shall deposit into the Special 1437
Transportation Fund established under section 13b-68 fifty-six per cent 1438
of the amounts received by the state from the tax imposed under 1439
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1440
vehicle; 1441
(v) For calendar months commencing on or after July 1, 2021, but 1442
prior to July 1, 2022, the commissioner shall deposit into the Special 1443
Transportation Fund established under section 13b-68 seventy-five per 1444
cent of the amounts received by the state from the tax imposed under 1445
subparagraphs (A) and (H) of this subdivision on the sale of a motor 1446
vehicle; and 1447
(vi) For calendar months commencing on or after July 1, 2022, the 1448
commissioner shall deposit into the Special Transportation Fund 1449
established under section 13b-68 one hundred per cent of the amounts 1450
received by the state from the tax imposed under subparagraphs (A) 1451
and (H) of this subdivision on the sale of a motor vehicle.] 1452
Sec. 15. Subdivision (1) of section 12-408 of the general statutes, as 1453
amended by section 14 of this act, is repealed and the following is 1454
substituted in lieu thereof (Effective January 1, 2020, and applicable to 1455
sales occurring on or after January 1, 2020): 1456
(1) (A) For the privilege of making any sales, as defined in 1457
subdivision (2) of subsection (a) of section 12-407, as amended by this 1458
act, at retail, in this state for a consideration, a tax is hereby imposed 1459
on all retailers at the rate of six and thirty-five-hundredths per cent of 1460
the gross receipts of any retailer from the sale of all tangible personal 1461
property sold at retail or from the rendering of any services 1462
constituting a sale in accordance with subdivision (2) of subsection (a) 1463
of section 12-407, as amended by this act, except, in lieu of said rate of 1464
six and thirty-five-hundredths per cent, the rates provided in 1465
subparagraphs (B) to (H), inclusive, of this subdivision; 1466
Governor's Bill No. 877
LCO No. 4566 53 of 138
(B) (i) At a rate of seventeen per cent with respect to each transfer of 1467
occupancy, from the total amount of rent received by a hotel or 1468
lodging house for the first period not exceeding thirty consecutive 1469
calendar days; 1470
(ii) At a rate of thirteen per cent with respect to each transfer of 1471
occupancy, from the total amount of rent received by a bed and 1472
breakfast establishment for the first period not exceeding thirty 1473
consecutive calendar days; 1474
(iii) At a rate of six and thirty-five-hundredths per cent with respect 1475
to each transfer of occupancy, from the total amount of rent received 1476
by a campground for the first period not exceeding thirty consecutive 1477
days; 1478
(C) With respect to the sale of a motor vehicle to any individual who 1479
is a member of the armed forces of the United States and is on full-time 1480
active duty in Connecticut and who is considered, under 50 App USC 1481
574, a resident of another state, or to any such individual and the 1482
spouse thereof, at a rate of four and one-half per cent of the gross 1483
receipts of any retailer from such sales, provided such retailer requires 1484
and maintains a declaration by such individual, prescribed as to form 1485
by the commissioner and bearing notice to the effect that false 1486
statements made in such declaration are punishable, or other evidence, 1487
satisfactory to the commissioner, concerning the purchaser's state of 1488
residence under 50 App USC 574; 1489
(D) (i) With respect to the sales of computer and data processing 1490
services occurring on or after July 1, 2001, at the rate of one per cent, 1491
and (ii) with respect to sales of Internet access services, on and after 1492
July 1, 2001, such services shall be exempt from such tax; 1493
(E) With respect to the sales of labor that is otherwise taxable under 1494
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 1495
12-407 on existing vessels and repair or maintenance services on 1496
vessels occurring on and after July 1, 1999, but prior to January 1, 2020, 1497
Governor's Bill No. 877
LCO No. 4566 54 of 138
such services shall be exempt from such tax; 1498
(F) With respect to patient care services for which payment is 1499
received by the hospital on or after July 1, 1999, and prior to July 1, 1500
2001, at the rate of five and three-fourths per cent and on and after July 1501
1, 2001, such services shall be exempt from such tax; 1502
(G) With respect to the rental or leasing of a passenger motor 1503
vehicle for a period of thirty consecutive calendar days or less, at a rate 1504
of nine and thirty-five-hundredths per cent; 1505
(H) With respect to the sale of (i) a motor vehicle for a sales price 1506
exceeding fifty thousand dollars, at a rate of seven and three-fourths 1507
per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1508
for a sales price exceeding five thousand dollars, at a rate of seven and 1509
three-fourths per cent on the entire sales price, and (iii) an article of 1510
clothing or footwear intended to be worn on or about the human body, 1511
a handbag, luggage, umbrella, wallet or watch for a sales price 1512
exceeding one thousand dollars, at a rate of seven and three-fourths 1513
per cent on the entire sales price. For purposes of this subparagraph, 1514
"motor vehicle" has the meaning provided in section 14-1, but does not 1515
include a motor vehicle subject to the provisions of subparagraph (C) 1516
of this subdivision, a motor vehicle having a gross vehicle weight 1517
rating over twelve thousand five hundred pounds, or a motor vehicle 1518
having a gross vehicle weight rating of twelve thousand five hundred 1519
pounds or less that is not used for private passenger purposes, but is 1520
designed or used to transport merchandise, freight or persons in 1521
connection with any business enterprise and issued a commercial 1522
registration or more specific type of registration by the Department of 1523
Motor Vehicles; 1524
(I) The rate of tax imposed by this chapter shall be applicable to all 1525
retail sales upon the effective date of such rate, except that a new rate 1526
which represents an increase in the rate applicable to the sale shall not 1527
apply to any sales transaction wherein a binding sales contract without 1528
Governor's Bill No. 877
LCO No. 4566 55 of 138
an escalator clause has been entered into prior to the effective date of 1529
the new rate and delivery is made within ninety days after the effective 1530
date of the new rate. For the purposes of payment of the tax imposed 1531
under this section, any retailer of services taxable under subdivision 1532
(37) of subsection (a) of section 12-407, as amended by this act, who 1533
computes taxable income, for purposes of taxation under the Internal 1534
Revenue Code of 1986, or any subsequent corresponding internal 1535
revenue code of the United States, as from time to time amended, on 1536
an accounting basis which recognizes only cash or other valuable 1537
consideration actually received as income and who is liable for such 1538
tax only due to the rendering of such services may make payments 1539
related to such tax for the period during which such income is 1540
received, without penalty or interest, without regard to when such 1541
service is rendered; 1542
(J) (i) For calendar quarters ending on or after September 30, 2019, 1543
the commissioner shall deposit into the regional planning incentive 1544
account, established pursuant to section 4-66k, six and seven-tenths 1545
per cent of the amounts received by the state from the tax imposed 1546
under subparagraph (B) of this subdivision and ten and seven-tenths 1547
per cent of the amounts received by the state from the tax imposed 1548
under subparagraph (G) of this subdivision; 1549
(ii) For calendar quarters ending on or after September 30, 2018, the 1550
commissioner shall deposit into the Tourism Fund established under 1551
section 10-395b ten per cent of the amounts received by the state from 1552
the tax imposed under subparagraph [(B)] (B)(i) and (B)(ii) of this 1553
subdivision; and 1554
(K) (i) For calendar months commencing on or after July 1, 2017, the 1555
commissioner shall deposit into the Special Transportation Fund 1556
established under section 13b-68 seven and nine-tenths per cent of the 1557
amounts received by the state from the tax imposed under 1558
subparagraph (A) of this subdivision; 1559
Governor's Bill No. 877
LCO No. 4566 56 of 138
(ii) For calendar months commencing on or after July 1, 2018, the 1560
commissioner shall deposit into the Special Transportation Fund 1561
established under section 13b-68 eight per cent of the amounts 1562
received by the state from the tax imposed under subparagraphs (A) 1563
and (H) of this subdivision on the sale of a motor vehicle. 1564
Sec. 16. Subdivision (1) of section 12-411 of the general statutes is 1565
repealed and the following is substituted in lieu thereof (Effective July 1566
1, 2019, and applicable to sales occurring on or after July 1, 2019): 1567
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1568
consumption or any other use in this state of tangible personal 1569
property purchased from any retailer for storage, acceptance, 1570
consumption or any other use in this state, the acceptance or receipt of 1571
any services constituting a sale in accordance with subdivision (2) of 1572
subsection (a) of section 12-407, as amended by this act, purchased 1573
from any retailer for consumption or use in this state, or the storage, 1574
acceptance, consumption or any other use in this state of tangible 1575
personal property which has been manufactured, fabricated, 1576
assembled or processed from materials by a person, either within or 1577
without this state, for storage, acceptance, consumption or any other 1578
use by such person in this state, to be measured by the sales price of 1579
materials, at the rate of six and thirty-five-hundredths per cent of the 1580
sales price of such property or services, except, in lieu of said rate of six 1581
and thirty-five-hundredths per cent; 1582
(B) (i) At a rate of [fifteen] seventeen per cent of the rent paid to a 1583
hotel or lodging house for the first period not exceeding thirty 1584
consecutive calendar days; 1585
(ii) At a rate of [eleven] thirteen per cent of the rent paid to a bed 1586
and breakfast establishment for the first period not exceeding thirty 1587
consecutive calendar days; 1588
(C) With respect to the storage, acceptance, consumption or use in 1589
this state of a motor vehicle purchased from any retailer for storage, 1590
Governor's Bill No. 877
LCO No. 4566 57 of 138
acceptance, consumption or use in this state by any individual who is a 1591
member of the armed forces of the United States and is on full-time 1592
active duty in Connecticut and who is considered, under 50 App USC 1593
574, a resident of another state, or to any such individual and the 1594
spouse of such individual at a rate of four and one-half per cent of the 1595
sales price of such vehicle, provided such retailer requires and 1596
maintains a declaration by such individual, prescribed as to form by 1597
the commissioner and bearing notice to the effect that false statements 1598
made in such declaration are punishable, or other evidence, 1599
satisfactory to the commissioner, concerning the purchaser's state of 1600
residence under 50 App USC 574; 1601
(D) [(i)] With respect to the acceptance or receipt in this state of 1602
labor that is otherwise taxable under subparagraph (C) or (G) of 1603
subdivision (2) of subsection (a) of section 12-407 on existing vessels 1604
and repair or maintenance services on vessels occurring on and after 1605
July 1, 1999, such services shall be exempt from such tax; 1606
[(ii) (I) With respect to the storage, acceptance or other use of a 1607
vessel in this state, at the rate of two and ninety-nine-hundredths per 1608
cent, except that such storage, acceptance or other use shall be exempt 1609
from such tax if such vessel is docked in this state for sixty or fewer 1610
days in a calendar year; 1611
(II) With respect to the storage, acceptance or other use of a motor 1612
for a vessel or a trailer used for transporting a vessel in this state, at the 1613
rate of two and ninety-nine-hundredths per cent;] 1614
(E) (i) With respect to the acceptance or receipt in this state of 1615
computer and data processing services purchased from any retailer for 1616
consumption or use in this state occurring on or after July 1, 2001, at 1617
the rate of one per cent of such services, and (ii) with respect to the 1618
acceptance or receipt in this state of Internet access services, on and 1619
after July 1, 2001, such services shall be exempt from such tax; 1620
(F) With respect to the acceptance or receipt in this state of patient 1621
Governor's Bill No. 877
LCO No. 4566 58 of 138
care services purchased from any retailer for consumption or use in 1622
this state for which payment is received by the hospital on or after July 1623
1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1624
per cent and on and after July 1, 2001, such services shall be exempt 1625
from such tax; 1626
(G) With respect to the rental or leasing of a passenger motor 1627
vehicle for a period of thirty consecutive calendar days or less, at a rate 1628
of nine and thirty-five-hundredths per cent; 1629
(H) With respect to the acceptance or receipt in this state of (i) a 1630
motor vehicle for a sales price exceeding fifty thousand dollars, at a 1631
rate of seven and three-fourths per cent on the entire sales price, (ii) 1632
jewelry, whether real or imitation, for a sales price exceeding five 1633
thousand dollars, at a rate of seven and three-fourths per cent on the 1634
entire sales price, and (iii) an article of clothing or footwear intended to 1635
be worn on or about the human body, a handbag, luggage, umbrella, 1636
wallet or watch for a sales price exceeding one thousand dollars, at a 1637
rate of seven and three-fourths per cent on the entire sales price. For 1638
purposes of this subparagraph, "motor vehicle" has the meaning 1639
provided in section 14-1, but does not include a motor vehicle subject 1640
to the provisions of subparagraph (C) of this subdivision, a motor 1641
vehicle having a gross vehicle weight rating over twelve thousand five 1642
hundred pounds, or a motor vehicle having a gross vehicle weight 1643
rating of twelve thousand five hundred pounds or less that is not used 1644
for private passenger purposes, but is designed or used to transport 1645
merchandise, freight or persons in connection with any business 1646
enterprise and issued a commercial registration or more specific type 1647
of registration by the Department of Motor Vehicles; 1648
(I) (i) For calendar quarters ending on or after September 30, 2019, 1649
the commissioner shall deposit into the regional planning incentive 1650
account, established pursuant to section 4-66k, six and seven-tenths 1651
per cent of the amounts received by the state from the tax imposed 1652
under subparagraph (B) of this subdivision and ten and seven-tenths 1653
Governor's Bill No. 877
LCO No. 4566 59 of 138
per cent of the amounts received by the state from the tax imposed 1654
under subparagraph (G) of this subdivision; 1655
(ii) For calendar quarters ending on or after September 30, 2018, the 1656
commissioner shall deposit into the Tourism Fund established under 1657
section 10-395b ten per cent of the amounts received by the state from 1658
the tax imposed under subparagraph (B) of this subdivision; and 1659
[(J) For calendar months commencing on or after July 1, 2021, the 1660
commissioner shall deposit into said municipal revenue sharing 1661
account seven and nine-tenths per cent of the amounts received by the 1662
state from the tax imposed under subparagraph (A) of this 1663
subdivision; and] 1664
[(K)] (J) (i) For calendar months commencing on or after July 1, 2017, 1665
the commissioner shall deposit into said Special Transportation Fund 1666
seven and nine-tenths per cent of the amounts received by the state 1667
from the tax imposed under subparagraph (A) of this subdivision; 1668
(ii) For calendar months commencing on or after July 1, 2018, [but 1669
prior to July 1, 2019,] the commissioner shall deposit into the Special 1670
Transportation Fund established under section 13b-68 eight per cent of 1671
the amounts received by the state from the tax imposed under 1672
subparagraphs (A) and (H) of this subdivision on the acceptance or 1673
receipt in this state of a motor vehicle. [;] 1674
[(iii) For calendar months commencing on or after July 1, 2019, but 1675
prior to July 1, 2020, the commissioner shall deposit into the Special 1676
Transportation Fund established under section 13b-68 thirty-three per 1677
cent of the amounts received by the state from the tax imposed under 1678
subparagraphs (A) and (H) of this subdivision on the acceptance or 1679
receipt in this state of a motor vehicle; 1680
(iv) For calendar months commencing on or after July 1, 2020, but 1681
prior to July 1, 2021, the commissioner shall deposit into the Special 1682
Transportation Fund established under section 13b-68 fifty-six per cent 1683
Governor's Bill No. 877
LCO No. 4566 60 of 138
of the amounts received by the state from the tax imposed under 1684
subparagraphs (A) and (H) of this subdivision on the acceptance or 1685
receipt in this state of a motor vehicle; 1686
(v) For calendar months commencing on or after July 1, 2021, but 1687
prior to July 1, 2022, the commissioner shall deposit into the Special 1688
Transportation Fund established under section 13b-68 seventy-five per 1689
cent of the amounts received by the state from the tax imposed under 1690
subparagraphs (A) and (H) of this subdivision on the acceptance or 1691
receipt in this state of a motor vehicle; and 1692
(vi) For calendar months commencing on or after July 1, 2022, the 1693
commissioner shall deposit into the Special Transportation Fund 1694
established under section 13b-68 one hundred per cent of the amounts 1695
received by the state from the tax imposed under subparagraphs (A) 1696
and (H) of this subdivision on the acceptance or receipt in this state of 1697
a motor vehicle.] 1698
Sec. 17. Subdivision (1) of section 12-411 of the general statutes, as 1699
amended by section 16 of this act, is repealed and the following is 1700
substituted in lieu thereof (Effective January 1, 2020, and applicable to 1701
sales occurring on or after January 1, 2020): 1702
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1703
consumption or any other use in this state of tangible personal 1704
property purchased from any retailer for storage, acceptance, 1705
consumption or any other use in this state, the acceptance or receipt of 1706
any services constituting a sale in accordance with subdivision (2) of 1707
subsection (a) of section 12-407, as amended by this act, purchased 1708
from any retailer for consumption or use in this state, or the storage, 1709
acceptance, consumption or any other use in this state of tangible 1710
personal property which has been manufactured, fabricated, 1711
assembled or processed from materials by a person, either within or 1712
without this state, for storage, acceptance, consumption or any other 1713
use by such person in this state, to be measured by the sales price of 1714
Governor's Bill No. 877
LCO No. 4566 61 of 138
materials, at the rate of six and thirty-five-hundredths per cent of the 1715
sales price of such property or services, except, in lieu of said rate of six 1716
and thirty-five-hundredths per cent; 1717
(B) (i) At a rate of seventeen per cent of the rent paid to a hotel or 1718
lodging house for the first period not exceeding thirty consecutive 1719
calendar days; 1720
(ii) At a rate of thirteen per cent of the rent paid to a bed and 1721
breakfast establishment for the first period not exceeding thirty 1722
consecutive calendar days; 1723
(iii) At a rate of six and thirty-five-hundredths per cent with respect 1724
to each transfer of occupancy, from the total amount of rent received 1725
by a campground for the first period not exceeding thirty consecutive 1726
days; 1727
(C) With respect to the storage, acceptance, consumption or use in 1728
this state of a motor vehicle purchased from any retailer for storage, 1729
acceptance, consumption or use in this state by any individual who is a 1730
member of the armed forces of the United States and is on full-time 1731
active duty in Connecticut and who is considered, under 50 App USC 1732
574, a resident of another state, or to any such individual and the 1733
spouse of such individual at a rate of four and one-half per cent of the 1734
sales price of such vehicle, provided such retailer requires and 1735
maintains a declaration by such individual, prescribed as to form by 1736
the commissioner and bearing notice to the effect that false statements 1737
made in such declaration are punishable, or other evidence, 1738
satisfactory to the commissioner, concerning the purchaser's state of 1739
residence under 50 App USC 574; 1740
(D) With respect to the acceptance or receipt in this state of labor 1741
that is otherwise taxable under subparagraph (C) or (G) of subdivision 1742
(2) of subsection (a) of section 12-407 on existing vessels and repair or 1743
maintenance services on vessels occurring on and after July 1, 1999, but 1744
prior to January 1, 2020, such services shall be exempt from such tax; 1745
Governor's Bill No. 877
LCO No. 4566 62 of 138
(E) (i) With respect to the acceptance or receipt in this state of 1746
computer and data processing services purchased from any retailer for 1747
consumption or use in this state occurring on or after July 1, 2001, at 1748
the rate of one per cent of such services, and (ii) with respect to the 1749
acceptance or receipt in this state of Internet access services, on and 1750
after July 1, 2001, such services shall be exempt from such tax; 1751
(F) With respect to the acceptance or receipt in this state of patient 1752
care services purchased from any retailer for consumption or use in 1753
this state for which payment is received by the hospital on or after July 1754
1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1755
per cent and on and after July 1, 2001, such services shall be exempt 1756
from such tax; 1757
(G) With respect to the rental or leasing of a passenger motor 1758
vehicle for a period of thirty consecutive calendar days or less, at a rate 1759
of nine and thirty-five-hundredths per cent; 1760
(H) With respect to the acceptance or receipt in this state of (i) a 1761
motor vehicle for a sales price exceeding fifty thousand dollars, at a 1762
rate of seven and three-fourths per cent on the entire sales price, (ii) 1763
jewelry, whether real or imitation, for a sales price exceeding five 1764
thousand dollars, at a rate of seven and three-fourths per cent on the 1765
entire sales price, and (iii) an article of clothing or footwear intended to 1766
be worn on or about the human body, a handbag, luggage, umbrella, 1767
wallet or watch for a sales price exceeding one thousand dollars, at a 1768
rate of seven and three-fourths per cent on the entire sales price. For 1769
purposes of this subparagraph, "motor vehicle" has the meaning 1770
provided in section 14-1, but does not include a motor vehicle subject 1771
to the provisions of subparagraph (C) of this subdivision, a motor 1772
vehicle having a gross vehicle weight rating over twelve thousand five 1773
hundred pounds, or a motor vehicle having a gross vehicle weight 1774
rating of twelve thousand five hundred pounds or less that is not used 1775
for private passenger purposes, but is designed or used to transport 1776
merchandise, freight or persons in connection with any business 1777
Governor's Bill No. 877
LCO No. 4566 63 of 138
enterprise and issued a commercial registration or more specific type 1778
of registration by the Department of Motor Vehicles; 1779
(I) (i) For calendar quarters ending on or after September 30, 2019, 1780
the commissioner shall deposit into the regional planning incentive 1781
account, established pursuant to section 4-66k, six and seven-tenths 1782
per cent of the amounts received by the state from the tax imposed 1783
under subparagraph (B) of this subdivision and ten and seven-tenths 1784
per cent of the amounts received by the state from the tax imposed 1785
under subparagraph (G) of this subdivision; 1786
(ii) For calendar quarters ending on or after September 30, 2018, the 1787
commissioner shall deposit into the Tourism Fund established under 1788
section 10-395b ten per cent of the amounts received by the state from 1789
the tax imposed under subparagraph [(B)] (B)(i) and (B)(ii) of this 1790
subdivision; and 1791
(J) (i) For calendar months commencing on or after July 1, 2017, the 1792
commissioner shall deposit into said Special Transportation Fund 1793
seven and nine-tenths per cent of the amounts received by the state 1794
from the tax imposed under subparagraph (A) of this subdivision; 1795
(ii) For calendar months commencing on or after July 1, 2018, the 1796
commissioner shall deposit into the Special Transportation Fund 1797
established under section 13b-68 eight per cent of the amounts 1798
received by the state from the tax imposed under subparagraphs (A) 1799
and (H) of this subdivision on the acceptance or receipt in this state of 1800
a motor vehicle. 1801
Sec. 18. Subparagraph (M) of subdivision (2) of subsection (a) of 1802
section 12-407 of the general statutes is repealed and the following is 1803
substituted in lieu thereof (Effective October 1, 2019, and applicable to 1804
sales occurring on or after October 1, 2019): 1805
(M) The transfer for consideration of space or the right to use any 1806
space for the purpose of storage or mooring of any noncommercial 1807
Governor's Bill No. 877
LCO No. 4566 64 of 138
vessel; [, exclusive of dry or wet storage or mooring of such vessel 1808
during the period commencing on the first day of October in any year 1809
to and including the thirty-first day of May of the next succeeding 1810
year;] 1811
Sec. 19. Subdivision (13) of subsection (a) of section 12-407 of the 1812
general statutes is repealed and the following is substituted in lieu 1813
thereof (Effective October 1, 2019, and applicable to sales occurring on or 1814
after October 1, 2019): 1815
(13) "Tangible personal property" means personal property [which] 1816
that may be seen, weighed, measured, felt or touched or [which] that is 1817
in any other manner perceptible to the senses. [including] "Tangible 1818
personal property" includes (A) digital goods and canned or 1819
prewritten computer software, [. Tangible personal property includes] 1820
including prewritten software that is electronically accessed or 1821
transferred and any additional content related to such software, and 1822
(B) the distribution, generation or transmission of electricity. 1823
Sec. 20. Subsection (a) of section 12-407 of the general statutes is 1824
amended by adding subdivision (43) as follows (Effective October 1, 1825
2019, and applicable to sales occurring on or after October 1, 2019): 1826
(NEW) (43) "Digital goods" means audio works, visual works, 1827
audio-visual works, reading materials or ring tones, that are 1828
electronically accessed or transferred. 1829
Sec. 21. Subparagraph (A) of subdivision (37) of subsection (a) of 1830
section 12-407 of the general statutes is repealed and the following is 1831
substituted in lieu thereof (Effective October 1, 2019, and applicable to 1832
sales occurring on or after October 1, 2019): 1833
(A) Computer and data processing services, including, but not 1834
limited to, time, programming, code writing, modification of existing 1835
programs, feasibility studies and installation and implementation of 1836
software programs and systems even where such services are rendered 1837
Governor's Bill No. 877
LCO No. 4566 65 of 138
in connection with the development, creation or production of canned 1838
or custom software or the license of custom software, but excluding 1839
digital goods; 1840
Sec. 22. Subdivision (37) of subsection (a) of section 12-407 of the 1841
general statutes, as amended by section 21 of this act, is repealed and 1842
the following is substituted in lieu thereof (Effective January 1, 2020, and 1843
applicable to sales occurring on or after January 1, 2020): 1844
(37) "Services" for purposes of subdivision (2) of this subsection, 1845
means: 1846
(A) Computer and data processing services, including, but not 1847
limited to, time, programming, code writing, modification of existing 1848
programs, feasibility studies and installation and implementation of 1849
software programs and systems even where such services are rendered 1850
in connection with the development, creation or production of canned 1851
or custom software or the license of custom software, but excluding 1852
digital goods; 1853
(B) Credit information and reporting services; 1854
(C) Services by employment agencies and agencies providing 1855
personnel services; 1856
(D) Private investigation, protection, patrol work, watchman and 1857
armored car services, exclusive of (i) services of off-duty police officers 1858
and off-duty firefighters, and (ii) coin and currency services provided 1859
to a financial services company by or through another financial 1860
services company. For purposes of this subparagraph, "financial 1861
services company" has the same meaning as provided under 1862
subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 1863
of section 12-218b; 1864
(E) Painting and lettering services; 1865
(F) Photographic studio services; 1866
Governor's Bill No. 877
LCO No. 4566 66 of 138
(G) Telephone answering services; 1867
(H) Stenographic services; 1868
(I) Services to industrial, commercial or income-producing real 1869
property, including, but not limited to, such services as management, 1870
electrical, plumbing, painting and carpentry, provided 1871
income-producing property shall not include [property used 1872
exclusively for residential purposes in which the owner resides and 1873
which contains no more than three dwelling units, or] a housing 1874
facility for low and moderate income families and persons owned or 1875
operated by a nonprofit housing organization, as defined in 1876
subdivision (29) of section 12-412; 1877
(J) Business analysis, management, management consulting and 1878
public relations services, excluding (i) any environmental consulting 1879
services, (ii) any training services provided by an institution of higher 1880
education licensed or accredited by the Board of Regents for Higher 1881
Education or Office of Higher Education pursuant to sections 10a-35a 1882
and 10a-34, respectively, and (iii) on and after January 1, 1994, any 1883
business analysis, management, management consulting and public 1884
relations services when such services are rendered in connection with 1885
an aircraft leased or owned by a certificated air carrier or in connection 1886
with an aircraft which has a maximum certificated take-off weight of 1887
six thousand pounds or more; 1888
(K) Services providing "piped-in" music to business or professional 1889
establishments; 1890
(L) Flight instruction and chartering services by a certificated air 1891
carrier on an aircraft, the use of which for such purposes, but for the 1892
provisions of subdivision (4) of section 12-410 and subdivision (12) of 1893
section 12-411, would be deemed a retail sale and a taxable storage or 1894
use, respectively, of such aircraft by such carrier; 1895
(M) Motor vehicle repair services, including any type of repair, 1896
Governor's Bill No. 877
LCO No. 4566 67 of 138
painting or replacement related to the body or any of the operating 1897
parts of a motor vehicle; 1898
(N) Motor vehicle parking, [including the provision of space, other 1899
than metered space, in a lot having thirty or more spaces,] excluding 1900
[(i)] space in a parking lot owned or leased under the terms of a lease 1901
of not less than ten years' duration and operated by an employer for 1902
the exclusive use of its employees; [, (ii) space in municipally operated 1903
railroad parking facilities in municipalities located within an area of 1904
the state designated as a severe nonattainment area for ozone under 1905
the federal Clean Air Act or space in a railroad parking facility in a 1906
municipality located within an area of the state designated as a severe 1907
nonattainment area for ozone under the federal Clean Air Act owned 1908
or operated by the state on or after April 1, 2000, (iii) space in a 1909
seasonal parking lot provided by an entity subject to the exemption set 1910
forth in subdivision (1) of section 12-412, and (iv) space in a 1911
municipally owned parking lot;] 1912
(O) Radio or television repair services; 1913
(P) Furniture reupholstering and repair services; 1914
(Q) Repair services to any electrical or electronic device, including, 1915
but not limited to, equipment used for purposes of refrigeration or 1916
air-conditioning; 1917
(R) Lobbying or consulting services for purposes of representing the 1918
interests of a client in relation to the functions of any governmental 1919
entity or instrumentality; 1920
(S) Services of the agent of any person in relation to the sale of any 1921
item of tangible personal property for such person, exclusive of the 1922
services of a consignee selling works of art, as defined in subsection (b) 1923
of section 12-376c, or articles of clothing or footwear intended to be 1924
worn on or about the human body other than (i) any special clothing 1925
or footwear primarily designed for athletic activity or protective use 1926
Governor's Bill No. 877
LCO No. 4566 68 of 138
and which is not normally worn except when used for the athletic 1927
activity or protective use for which it was designed, and (ii) jewelry, 1928
handbags, luggage, umbrellas, wallets, watches and similar items 1929
carried on or about the human body but not worn on the body, under 1930
consignment, exclusive of services provided by an auctioneer; 1931
(T) Locksmith services; 1932
(U) Advertising or public relations services, including layout, art 1933
direction, graphic design, mechanical preparation or production 1934
supervision, not related to the development of media advertising or 1935
cooperative direct mail advertising; 1936
(V) Landscaping and horticulture services; 1937
(W) Window cleaning services; 1938
(X) [Maintenance services] Services to buildings and dwellings, 1939
including, but not limited to, maintenance, repair, renovation, exterior 1940
cleaning, chimney cleaning, driveway cleaning, duct cleaning, drain or 1941
gutter cleaning, refuse collection, snow plowing and all other such 1942
services not specifically enumerated herein; 1943
(Y) Janitorial services; 1944
(Z) Exterminating and pest control services; 1945
(AA) Swimming pool cleaning and maintenance services; 1946
(BB) [Miscellaneous personal services included in industry group 1947
729 in the Standard Industrial Classification Manual, United States 1948
Office of Management and Budget, 1987 edition, or U.S. industry 1949
532220, 812191, 812199 or 812990 in] Personal and laundry services 1950
described in industry group 812 of the North American [Industrial] 1951
Industry Classification System United States Manual, United States 1952
Office of Management and Budget (NAICS), [1997] 2017 edition, 1953
exclusive of [(i) services rendered by massage therapists licensed 1954
Governor's Bill No. 877
LCO No. 4566 69 of 138
pursuant to chapter 384a, and (ii) services rendered by an electrologist 1955
licensed pursuant to chapter 388] death care services described in 1956
industry group 8122 of the NAICS, 2017 edition; 1957
(CC) Any repair or maintenance service to any item of tangible 1958
personal property including any contract of warranty or service related 1959
to any such item; 1960
(DD) Business analysis, management or managing consulting 1961
services rendered by a general partner, or an affiliate thereof, to a 1962
limited partnership, provided (i) the general partner, or an affiliate 1963
thereof, is compensated for the rendition of such services other than 1964
through a distributive share of partnership profits or an annual 1965
percentage of partnership capital or assets established in the limited 1966
partnership's offering statement, and (ii) the general partner, or an 1967
affiliate thereof, offers such services to others, including any other 1968
partnership. As used in this subparagraph "an affiliate of a general 1969
partner" means an entity which is directly or indirectly owned fifty per 1970
cent or more in common with a general partner; 1971
(EE) Notwithstanding the provisions of section 12-412, as amended 1972
by this act, except subdivision (87) of [said] section 12-412, patient care 1973
services, as defined in subdivision (29) of this subsection by a hospital, 1974
except that "sale" and "selling" does not include such patient care 1975
services for which payment is received by the hospital during the 1976
period commencing July 1, 2001, and ending June 30, 2003; 1977
(FF) Health and athletic club services, exclusive of (i) any such 1978
services provided without any additional charge which are included in 1979
any dues or initiation fees paid to any such club, which dues or fees 1980
are subject to tax under section 12-543, and (ii) any such services 1981
provided by a municipality or an organization that is described in 1982
Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1983
corresponding internal revenue code of the United States, as from time 1984
to time amended; 1985
Governor's Bill No. 877
LCO No. 4566 70 of 138
(GG) Motor vehicle storage services, including storage of motor 1986
homes, campers and camp trailers, other than the furnishing of space 1987
as described in subparagraph (P) of subdivision (2) of this subsection; 1988
(HH) Packing and crating services, other than those provided in 1989
connection with the sale of tangible personal property by the retailer of 1990
such property; 1991
(II) Motor vehicle towing and road services, other than motor 1992
vehicle repair services; 1993
(JJ) Intrastate transportation services provided by livery services, 1994
including limousines, community cars or vans, with a driver. Intrastate 1995
transportation services shall not include transportation by taxicab, 1996
motor bus, ambulance or ambulette, scheduled public transportation, 1997
nonemergency medical transportation provided under the Medicaid 1998
program, paratransit services provided by agreement or arrangement 1999
with the state or any political subdivision of the state, dial-a-ride 2000
services or services provided in connection with funerals; 2001
(KK) [Pet] Animal grooming and [pet] animal boarding services, 2002
[except if such services are provided as an integral part of professional 2003
veterinary services,] and pet obedience services; 2004
(LL) Services in connection with a cosmetic medical procedure. For 2005
purposes of this subparagraph, "cosmetic medical procedure" means 2006
any medical procedure performed on an individual that is directed at 2007
improving the individual's appearance and that does not meaningfully 2008
promote the proper function of the body or prevent or treat illness or 2009
disease. "Cosmetic medical procedure" includes, but is not limited to, 2010
cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 2011
tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 2012
skin resurfacing, laser treatment of leg veins and sclerotherapy. 2013
"Cosmetic medical procedure" does not include reconstructive surgery. 2014
"Reconstructive surgery" includes any surgery performed on abnormal 2015
structures caused by or related to congenital defects, developmental 2016
Governor's Bill No. 877
LCO No. 4566 71 of 138
abnormalities, trauma, infection, tumors or disease, including 2017
procedures to improve function or give a more normal appearance; 2018
(MM) Manicure services, pedicure services and all other nail 2019
services, regardless of where performed, including airbrushing, fills, 2020
full sets, nail sculpting, paraffin treatments and polishes; 2021
(NN) Spa services, regardless of where performed, including body 2022
waxing and wraps, peels, scrubs and facials; [and] 2023
(OO) Car wash services, including coin-operated car washes; [.] 2024
(PP) Scenic and sightseeing transportation services described in 2025
industry group 487 of the NAICS, 2017 edition, as amended from time 2026
to time; 2027
(QQ) Real estate agent and broker services described in industry 2028
group 5312 and services for activities related to real estate described in 2029
industry group 5313 of the NAICS, 2017 edition, as amended from 2030
time to time; 2031
(RR) Travel arrangement and reservation services described in 2032
industry group 5615 of the NAICS, 2017 edition, as amended from 2033
time to time; 2034
(SS) Legal services described in industry group 5411 of the NAICS, 2035
2017 edition, as amended from time to time; 2036
(TT) Accounting services described in industry group 541211 and 2037
tax return preparation services described in industry group 541213 of 2038
the NAICS, 2017 edition, as amended from time to time; 2039
(UU) Architectural services described in industry group 54131 of the 2040
NAICS, 2017 edition, as amended from time to time; 2041
(VV) Engineering services described in industry group 54133 of the 2042
NAICS, 2017 edition, as amended from time to time; 2043
Governor's Bill No. 877
LCO No. 4566 72 of 138
(WW) Interior design services described in industry group 54141 of 2044
the NAICS, 2017 edition, as amended from time to time; 2045
(XX) Veterinary services described in industry group 54194 of the 2046
NAICS, 2017 edition, as amended from time to time; 2047
(YY) Sports and recreation instruction services described in industry 2048
group 61162 of the NAICS, 2017 edition, as amended from time to 2049
time; 2050
(ZZ) Services provided by amusement and recreat ion 2051
establishments described in industry group 7139 of the NAICS, 2017 2052
edition, as amended from time to time; and 2053
(AAA) Waste management and remediation services provided by 2054
establishments described in industry group 5621 of the NAICS, 2017 2055
edition, as amended from time to time. 2056
Sec. 23. Subparagraph (H) of subdivision (2) of subsection (a) of 2057
section 12-407 of the general statutes is repealed and the following is 2058
substituted in lieu thereof (Effective January 1, 2020, and applicable to 2059
sales occurring on or after January 1, 2020): 2060
(H) A transfer for a consideration of the occupancy of any room or 2061
rooms in a hotel, lodging house or bed and breakfast establishment or 2062
of any space in a campground, for a period of thirty consecutive 2063
calendar days or less; 2064
Sec. 24. Subparagraph (A) of subdivision (3) of subsection (a) of 2065
section 12-407 of the general statutes is repealed and the following is 2066
substituted in lieu thereof (Effective January 1, 2020, and applicable to 2067
sales occurring on or after January 1, 2020): 2068
(3) (A) "Retail sale" or "sale at retail" means and includes a sale for 2069
any purpose other than resale in the regular course of business of (i) 2070
tangible personal property, [or] (ii) a transfer for a consideration of the 2071
occupancy of (I) any room or rooms in a hotel, lodging house or bed 2072
Governor's Bill No. 877
LCO No. 4566 73 of 138
and breakfast establishment for a period of thirty consecutive calendar 2073
days or less, or (II) any space in a campground for a period of thirty 2074
consecutive calendar days or less, or (iii) the rendering of any service 2075
described in subdivision (2) of this subsection. The delivery in this 2076
state of tangible personal property by an owner or former owner 2077
thereof or by a factor, if the delivery is to a consumer pursuant to a 2078
retail sale made by a retailer not engaged in business in this state, is a 2079
retail sale in this state by the person making the delivery. Such person 2080
shall include the retail selling price of the property in such person's 2081
gross receipts. 2082
Sec. 25. Subdivision (7) of subsection (a) of section 12-407 of the 2083
general statutes is repealed and the following is substituted in lieu 2084
thereof (Effective January 1, 2020, and applicable to sales occurring on or 2085
after January 1, 2020): 2086
(7) "Purchase" and "purchasing" means and includes: (A) Any 2087
transfer, exchange or barter, conditional or otherwise, in any manner 2088
or by any means whatsoever, of (i) tangible personal property for a 2089
consideration, or (ii) of the occupancy of any room or rooms in a hotel, 2090
lodging house or bed and breakfast establishment for a period of thirty 2091
consecutive calendar days or less for a consideration or of any space in 2092
a campground for a period of thirty consecutive calendar days or less 2093
for a consideration; (B) a transaction whereby the possession of 2094
property is transferred but the seller retains the title as security for the 2095
payment of the price; (C) a transfer for a consideration of tangible 2096
personal property which has been produced, fabricated or printed to 2097
the special order of the customer, or of any publication; (D) when 2098
performed outside this state or when the customer gives a resale 2099
certificate pursuant to section 12-410, the producing, fabricating, 2100
processing, printing or imprinting of tangible personal property for a 2101
consideration for consumers who furnish either directly or indirectly 2102
the materials used in the producing, fabricating, processing, printing 2103
or imprinting; (E) the acceptance or receipt of any service described in 2104
any of the subparagraphs of subdivision (2) of this subsection; (F) any 2105
Governor's Bill No. 877
LCO No. 4566 74 of 138
leasing or rental of tangible personal property. Wherever in this 2106
chapter reference is made to the purchase or purchasing of tangible 2107
personal property, it shall be construed to include purchases as 2108
described in this subsection. 2109
Sec. 26. Subparagraph (A) of subdivision (8) of subsection (a) of 2110
section 12-407 of the general statutes is repealed and the following is 2111
substituted in lieu thereof (Effective January 1, 2020, and applicable to 2112
sales occurring on or after January 1, 2020): 2113
(8) (A) "Sales price" means the total amount for which tangible 2114
personal property is sold by a retailer, the total amount of rent for 2115
which occupancy of a room or of a space in a campground is 2116
transferred by an operator, the total amount for which any service 2117
described in subdivision (2) of this subsection is rendered by a retailer 2118
or the total amount of payment or periodic payments for which 2119
tangible personal property is leased by a retailer, valued in money, 2120
whether paid in money or otherwise, which amount is due and owing 2121
to the retailer or operator and, subject to the provisions of subdivision 2122
(1) of section 12-408, as amended by this act, whether or not actually 2123
received by the retailer or operator, without any deduction on account 2124
of any of the following: (i) The cost of the property sold; (ii) the cost of 2125
materials used, labor or service cost, interest charged, losses or any 2126
other expenses; (iii) for any sale occurring on or after July 1, 1993, any 2127
charges by the retailer to the purchaser for shipping or delivery, 2128
notwithstanding whether such charges are separately stated in a 2129
written contract, or on a bill or invoice rendered to such purchaser or 2130
whether such shipping or delivery is provided by the retailer or a third 2131
party. The provisions of subparagraph (A) (iii) of this subdivision shall 2132
not apply to any item exempt from taxation pursuant to section 12-412, 2133
as amended by this act. Such total amount includes any services that 2134
are a part of the sale; except as otherwise provided in subparagraph 2135
(B)(v) or (B)(vi) of this subdivision, any amount for which credit is 2136
given to the purchaser by the retailer, and all compensation and all 2137
employment-related expenses, whether or not separately stated, paid 2138
Governor's Bill No. 877
LCO No. 4566 75 of 138
to or on behalf of employees of a retailer of any service described in 2139
subdivision (2) of this subsection. 2140
Sec. 27. Subparagraph (A) of subdivision (9) of subsection (a) of 2141
section 12-407 of the general statutes is repealed and the following is 2142
substituted in lieu thereof (Effective January 1, 2020, and applicable to 2143
sales occurring on or after January 1, 2020): 2144
(9) (A) "Gross receipts" means the total amount of the sales price 2145
from retail sales of tangible personal property by a retailer, the total 2146
amount of the rent from transfers of occupancy of rooms or of space in 2147
a campground by an operator, the total amount of the sales price from 2148
retail sales of any service described in subdivision (2) of this subsection 2149
by a retailer of services, or the total amount of payment or periodic 2150
payments from leases or rentals of tangible personal property by a 2151
retailer, valued in money, whether received in money or otherwise, 2152
which amount is due and owing to the retailer or operator and, subject 2153
to the provisions of subdivision (1) of section 12-408, as amended by 2154
this act, whether or not actually received by the retailer or operator, 2155
without any deduction on account of any of the following: (i) The cost 2156
of the property sold; however, in accordance with such regulations as 2157
the Commissioner of Revenue Services may prescribe, a deduction 2158
may be taken if the retailer has purchased property for some other 2159
purpose than resale, has reimbursed the retailer's vendor for tax which 2160
the vendor is required to pay to the state or has paid the use tax with 2161
respect to the property, and has resold the property prior to making 2162
any use of the property other than retention, demonstration or display 2163
while holding it for sale in the regular course of business. If such a 2164
deduction is taken by the retailer, no refund or credit will be allowed 2165
to the retailer's vendor with respect to the sale of the property; (ii) the 2166
cost of the materials used, labor or service cost, interest paid, losses or 2167
any other expense; (iii) for any sale occurring on or after July 1, 1993, 2168
except for any item exempt from taxation pursuant to section 12-412, 2169
as amended by this act, any charges by the retailer to the purchaser for 2170
shipping or delivery, notwithstanding whether such charges are 2171
Governor's Bill No. 877
LCO No. 4566 76 of 138
separately stated in the written contract, or on a bill or invoice 2172
rendered to such purchaser or whether such shipping or delivery is 2173
provided by the retailer or a third party. The total amount of the sales 2174
price includes any services that are a part of the sale; all receipts, cash, 2175
credits and property of any kind; except as otherwise provided in 2176
subparagraph (B)(v) or (B)(vi) of this subdivision, any amount for 2177
which credit is allowed by the retailer to the purchaser; and all 2178
compensation and all employment-related expenses, whether or not 2179
separately stated, paid to or on behalf of employees of a retailer of any 2180
service described in subdivision (2) of this subsection. 2181
Sec. 28. Subparagraph (A) of subdivision (15) of subsection (a) of 2182
section 12-407 of the general statutes is repealed and the following is 2183
substituted in lieu thereof (Effective January 1, 2020, and applicable to 2184
sales occurring on or after January 1, 2020): 2185
(15) (A) "Engaged in business in the state" means and, to the extent 2186
not prohibited by the Constitution of the United States, includes, but 2187
shall not be limited to, the following acts or methods of transacting 2188
business: (i) Selling in this state, or any activity in this state in 2189
connection with selling in this state, tangible personal property for use, 2190
storage or consumption within the state; (ii) engaging in the transfer 2191
for a consideration of the occupancy of (I) any room or rooms in a 2192
hotel, lodging house or bed and breakfast establishment for a period of 2193
thirty consecutive calendar days or less, or (II) any space in a 2194
campground for a period of thirty consecutive calendar days or less; 2195
(iii) rendering in this state any service described in any of the 2196
subparagraphs of subdivision (2) of this subsection; (iv) maintaining, 2197
occupying or using, permanently or temporarily, directly or indirectly, 2198
through a subsidiary or agent, by whatever name called, any office, 2199
place of distribution, sales or sample room or place, warehouse or 2200
storage point or other place of business or having any representative, 2201
agent, salesman, canvasser or solicitor operating in this state for the 2202
purpose of selling, delivering or taking orders; (v) notwithstanding the 2203
fact that retail sales are made from outside this state to a destination 2204
Governor's Bill No. 877
LCO No. 4566 77 of 138
within this state, engaging in regular or systematic solicitation of sales 2205
of tangible personal property in this state by the display of 2206
advertisements on billboards or other outdoor advertising in this state, 2207
by the distribution of catalogs, periodicals, advertising flyers or other 2208
advertising by means of print, radio or television media, or by mail, 2209
telegraphy, telephone, computer data base, cable, optic, microwave, 2210
Internet or other communication system, for the purpose of effecting 2211
retail sales of tangible personal property, provided at least two 2212
hundred fifty thousand dollars of gross receipts are received and two 2213
hundred or more retail sales from outside this state to destinations 2214
within this state are made during the twelve-month period ended on 2215
the September thirtieth immediately preceding the monthly or 2216
quarterly period with respect to which liability for tax under this 2217
chapter is determined; (vi) being owned or controlled, either directly 2218
or indirectly, by a retailer engaged in business in this state which is the 2219
same as or similar to the line of business in which the retailer so owned 2220
or controlled is engaged; (vii) being owned or controlled, either 2221
directly or indirectly, by the same interests that own or control, either 2222
directly or indirectly, a retailer engaged in business in this state which 2223
is the same as or similar to the line of business in which the retailer so 2224
owned or controlled is engaged; (viii) being the assignee of a person 2225
engaged in the business of leasing tangible personal property to others, 2226
where leased property of such person is situated within this state and 2227
such assignee has a security interest, as defined in subdivision (35) of 2228
subsection (b) of section 42a-1-201, in such property; (ix) 2229
notwithstanding the fact that retail sales of items of tangible personal 2230
property are made from outside this state to a destination within this 2231
state, repairing or servicing such items, under a warranty, in this state, 2232
either directly or indirectly through an agent, independent contractor 2233
or subsidiary; and (x) selling tangible personal property or services 2234
through an agreement with a person located in this state, under which 2235
such person located in this state, for a commission or other 2236
consideration that is based upon the sale of tangible personal property 2237
or services by the retailer, directly or indirectly refers potential 2238
Governor's Bill No. 877
LCO No. 4566 78 of 138
customers, whether by a link on an Internet web site or otherwise, to 2239
the retailer, provided the cumulative gross receipts from sales by the 2240
retailer to customers in the state who are referred to the retailer by all 2241
such persons with this type of agreement with the retailer is in excess 2242
of two hundred fifty thousand dollars during the four preceding four 2243
quarterly periods ending on the last day of March, June, September 2244
and December. 2245
Sec. 29. Subdivisions (18) and (19) of subsection (a) of section 12-407 2246
of the general statutes are repealed and the following is substituted in 2247
lieu thereof (Effective January 1, 2020, and applicable to sales occurring on 2248
or after January 1, 2020): 2249
(18) "Operator" means any person operating a hotel, lodging house, 2250
[or] bed and breakfast establishment or campground in the state, 2251
including, but not limited to, the owner or proprietor of such premises, 2252
lessee, sublessee, mortgagee in possession, licensee or any other person 2253
otherwise operating such hotel, lodging house, [or] bed and breakfast 2254
establishment or campground. 2255
(19) "Occupancy" means the use or possession, or the right to the 2256
use or possession, of any room or rooms in a hotel, lodging house or 2257
bed and breakfast establishment or of any space in a campground, or 2258
the right to the use or possession of the furnishings or the services and 2259
accommodations accompanying the use and possession of such room 2260
or rooms or such space, for the first period of not more than thirty 2261
consecutive calendar days. 2262
Sec. 30. Subdivision (120) of section 12-412 of the general statutes is 2263
repealed and the following is substituted in lieu thereof (Effective 2264
January 1, 2020, and applicable to sales occurring on or after January 1, 2265
2020): 2266
(120) [On and after April 1, 2015, sales of the following 2267
nonprescription drugs or medicines available for purchase for use in or 2268
on the body: Vitamin or mineral concentrates; dietary supplements; 2269
Governor's Bill No. 877
LCO No. 4566 79 of 138
natural or herbal drugs or medicines; products intended to be taken for 2270
coughs, cold, asthma or allergies, or antihistamines; laxatives; 2271
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral 2272
and antifungal medicines; antiseptics; astringents; anesthetics; 2273
steroidal medicines; anthelmintics; emetics and antiemetics; antacids; 2274
and any medication prepared to be used in the eyes, ears or nose. 2275
Nonprescription drugs or medicines shall not include cosmetics, 2276
dentrifrices, mouthwash, shaving and hair care products, soaps or 2277
deodorants.] Sales of marijuana sold pursuant to chapter 420f by a 2278
licensed dispensary for palliative use. 2279
Sec. 31. Subdivision (123) of section 12-412 of the general statutes is 2280
repealed and the following is substituted in lieu thereof (Effective 2281
January 1, 2020, and applicable to sales occurring on or after January 1, 2282
2020): 2283
(123) Sales of disposable or reusable diapers, but not including 2284
diaper cleaning services. 2285
Sec. 32. Section 12-412 of the general statutes is amended by adding 2286
subdivision (124) as follows (Effective January 1, 2020, and applicable to 2287
sales occurring on or after January 1, 2020): 2288
(NEW) (124) (A) Sales of services set forth in subparagraphs (QQ) to 2289
(XX), inclusive, and subparagraph (AAA) of subdivision (37) of 2290
subsection (a) of section 12-407, as amended by this act, that are 2291
purchased by a business for use by such business. 2292
(B) Each purchaser of services exempt pursuant to the provisions of 2293
this subdivision shall present, in order to qualify for such exemption, a 2294
certificate to the retailer, in such form as the commissioner may 2295
prescribe, certifying that the purchaser is a business and is purchasing 2296
such services for its business. The purchaser of the services shall be 2297
liable for the tax otherwise imposed if the certificate is improperly 2298
provided to the retailer, and any person who wilfully delivers a 2299
certificate that is known to be fraudulent or false in any material 2300
Governor's Bill No. 877
LCO No. 4566 80 of 138
matter to a retailer shall, in addition to any other penalty provided by 2301
law, be guilty of a class D felony. 2302
Sec. 33. Subdivision (4) of section 12-430 of the general statutes is 2303
repealed and the following is substituted in lieu thereof (Effective July 2304
1, 2019, and applicable to sales occurring on or after July 1, 2019): 2305
(4) [Where] For sales occurring prior to July 1, 2019, where a trade-2306
in of a motor vehicle is received by a motor vehicle dealer, upon the 2307
sale of another motor vehicle to a consumer, or where a trade-in of an 2308
aircraft, as defined in subdivision (5) of section 15-34, is received by an 2309
aircraft dealer, upon the sale of another aircraft to a consumer, or 2310
where a trade-in of a farm tractor, snowmobile or any vessel, as 2311
defined in section 15-127, is received by a retailer of farm tractors, 2312
snowmobiles or such vessels upon the sale of another farm tractor, 2313
snowmobile or such vessel to a consumer, the tax is only on the 2314
difference between the sale price of the motor vehicle, aircraft, 2315
snowmobile, farm tractor or such vessel purchased and the amount 2316
allowed on the motor vehicle, aircraft, snowmobile, farm tractor or 2317
such vessel traded in on such purchase. When any such motor vehicle, 2318
aircraft, snowmobile, farm tractor or such vessel traded in is 2319
subsequently sold to a consumer or user, the tax provided for in this 2320
chapter applies. 2321
Sec. 34. Section 4-66o of the general statutes is repealed and the 2322
following is substituted in lieu thereof (Effective July 1, 2019): 2323
The Secretary of the Office of Policy and Management may establish 2324
receivables for the revenue anticipated pursuant to [subparagraph (K) 2325
of subdivision (1) of section 12-408 and] section 4-66l. 2326
Sec. 35. Section 12-263p of the general statutes is repealed and the 2327
following is substituted in lieu thereof (Effective from passage): 2328
As used in sections 12-263p to 12-263x, inclusive, unless the context 2329
otherwise requires: 2330
Governor's Bill No. 877
LCO No. 4566 81 of 138
(1) "Commissioner" means the Commissioner of Revenue Services; 2331
(2) "Department" means the Department of Revenue Services; 2332
(3) "Taxpayer" means any health care provider subject to any tax or 2333
fee under section 12-263q, as amended by this act, or 12-263r, as 2334
amended by this act; 2335
(4) "Health care provider" means an individual or entity that 2336
receives any payment or payments for health care items or services 2337
provided; 2338
(5) "Gross receipts" means the amount received, whether in cash or 2339
in kind, from patients, third-party payers and others for taxable health 2340
care items or services provided by the taxpayer in the state, including 2341
retroactive adjustments under reimbursement agreements with third-2342
party payers, without any deduction for any expenses of any kind; 2343
(6) "Net revenue" means gross receipts less payer discounts, charity 2344
care and bad debts, to the extent the taxpayer previously paid tax 2345
under section 12-263q, as amended by this act, on the amount of such 2346
bad debts; 2347
(7) "Payer discounts" means the difference between a health care 2348
provider's published charges and the payments received by the health 2349
care provider from one or more health care payers for a rate or method 2350
of payment that is different than or discounted from such published 2351
charges. "Payer discounts" does not include charity care or bad debts; 2352
(8) "Charity care" means free or discounted health care services 2353
rendered by a health care provider to an individual who cannot afford 2354
to pay for such services, including, but not limited to, health care 2355
services provided to an uninsured patient who is not expected to pay 2356
all or part of a health care provider's bill based on income guidelines 2357
and other financial criteria set forth in the general statutes or in a 2358
health care provider's charity care policies on file at the office of such 2359
Governor's Bill No. 877
LCO No. 4566 82 of 138
provider. "Charity care" does not include bad debts or payer discounts; 2360
(9) "Received" means "received" or "accrued", construed according 2361
to the method of accounting customarily employed by the taxpayer; 2362
(10) "Hospital" means any health care facility, as defined in section 2363
19a-630, that (A) is licensed by the Department of Public Health as a 2364
short-term general hospital; (B) is maintained primarily for the care 2365
and treatment of patients with disorders other than mental diseases; 2366
(C) meets the requirements for participation in Medicare as a hospital; 2367
and (D) has in effect a utilization review plan, applicable to all 2368
Medicaid patients, that meets the requirements of 42 CFR 482.30, as 2369
amended from time to time, unless a waiver has been granted by the 2370
Secretary of the United States Department of Health and Human 2371
Services; 2372
(11) "Inpatient hospital services" means, in accordance with federal 2373
law, all services that are (A) ordinarily furnished in a hospital for the 2374
care and treatment of inpatients; (B) furnished under the direction of a 2375
physician or dentist; and (C) furnished in a hospital. "Inpatient 2376
hospital services" does not include skilled nursing facility services and 2377
intermediate care facility services furnished by a hospital with swing 2378
bed approval; 2379
(12) "Inpatient" means a patient who has been admitted to a medical 2380
institution as an inpatient on the recommendation of a physician or 2381
dentist and who (A) receives room, board and professional services in 2382
the institution for a twenty-four-hour period or longer, or (B) is 2383
expected by the institution to receive room, board and professional 2384
services in the institution for a twenty-four-hour period or longer, even 2385
if the patient does not actually stay in the institution for a twenty-four-2386
hour period or longer; 2387
(13) "Outpatient hospital services" means, in accordance with 2388
federal law, preventive, diagnostic, therapeutic, rehabilitative or 2389
palliative services that are (A) furnished to an outpatient; (B) furnished 2390
Governor's Bill No. 877
LCO No. 4566 83 of 138
by or under the direction of a physician or dentist; and (C) furnished 2391
by a hospital; 2392
(14) "Outpatient" means a patient of an organized medical facility or 2393
a distinct part of such facility, who is expected by the facility to receive, 2394
and who does receive, professional services for less than a twenty-2395
four-hour period regardless of the hour of admission, whether or not a 2396
bed is used or the patient remains in the facility past midnight; 2397
(15) "Nursing home" means any licensed chronic and convalescent 2398
nursing home or a rest home with nursing supervision; 2399
(16) "Intermediate care facility for individuals with intellectual 2400
disabilities" or "intermediate care facility" means a residential facility 2401
for persons with intellectual disability that is certified to meet the 2402
requirements of 42 CFR 442, Subpart C, as amended from time to time, 2403
and, in the case of a private facility, licensed pursuant to section 17a-2404
227; 2405
(17) "Medicare day" means a day of nursing home care service 2406
provided to an individual who is eligible for payment, in full or with a 2407
coinsurance requirement, under the federal Medicare program, 2408
including fee for service and managed care coverage; 2409
(18) "Nursing home resident day" means a day of nursing home care 2410
service provided to an individual and includes the day a resident is 2411
admitted and any day for which the nursing home is eligible for 2412
payment for reserving a resident's bed due to hospitalization or 2413
temporary leave and for the date of death. For purposes of this 2414
subdivision, a day of nursing home care service shall be the period of 2415
time between the census-taking hour in a nursing home on two 2416
successive calendar days. "Nursing home resident day" does not 2417
include a Medicare day or the day a resident is discharged; 2418
(19) "Intermediate care facility resident day" means a day of 2419
intermediate care facility residential care provided to an individual 2420
Governor's Bill No. 877
LCO No. 4566 84 of 138
and includes the day a resident is admitted and any day for which the 2421
intermediate care facility is eligible for payment for reserving a 2422
resident's bed due to hospitalization or temporary leave and for the 2423
date of death. For purposes of this subdivision, a day of intermediate 2424
care facility residential care shall be the period of time between the 2425
census-taking hour in a facility on two successive calendar days. 2426
"Intermediate care facility resident day" does not include the day a 2427
resident is discharged; 2428
(20) "Ambulatory surgical center" means any distinct entity that (A) 2429
operates exclusively for the purpose of providing surgical services to 2430
patients not requiring hospitalization and in which the expected 2431
duration of services would not exceed twenty-four hours following an 2432
admission, (B) has an agreement with the Centers for Medicare and 2433
Medicaid Services to participate in Medicare as an ambulatory surgical 2434
center, and (C) meets the general and specific conditions for 2435
participation in Medicare set forth in 42 CFR Part 416, Subparts B and 2436
C, as amended from time to time; 2437
(21) "Ambulatory surgical center services" means, in accordance 2438
with 42 CFR 433.56(a)(9), as amended from time to time, services for 2439
which payment is received from any payer that, if such services were 2440
furnished under the federal Medicare program (A) would be furnished 2441
in connection with covered surgical procedures performed in an 2442
ambulatory surgical center as provided in 42 CFR 416.164(a), as 2443
amended from time to time, and (B) for which payment would be 2444
included in the ambulatory surgical center payment established under 2445
42 CFR 416.171, as amended from time to time, for the covered surgical 2446
procedure. "Ambulatory surgical center services" includes facility 2447
services only and does not include surgical procedures, physicians' 2448
services, anesthetists' services, radiology services, diagnostic services 2449
or ambulance services, if such procedures or services would be 2450
reimbursed separately from facility services under 42 CFR 416.164(a), 2451
as amended from time to time; 2452
Governor's Bill No. 877
LCO No. 4566 85 of 138
[(20)] (22) "Medicaid" means the program operated by the 2453
Department of Social Services pursuant to section 17b-260 and 2454
authorized by Title XIX of the Social Security Act, as amended from 2455
time to time; and 2456
[(21)] (23) "Medicare" means the program operated by the Centers 2457
for Medicare and Medicaid Services in accordance with Title XVIII of 2458
the Social Security Act, as amended from time to time. 2459
Sec. 36. Section 12-263q of the general statutes is repealed and the 2460
following is substituted in lieu thereof (Effective from passage): 2461
(a) (1) For each calendar quarter commencing on or after July 1, 2462
2017, each hospital shall pay a tax on the total net revenue received by 2463
such hospital for the provision of inpatient hospital services and 2464
outpatient hospital services. 2465
(A) On and after July 1, 2017, [and prior to July 1, 2019,] the rate of 2466
tax for the provision of inpatient hospital services shall be six per cent 2467
of each hospital's audited net revenue for the fiscal year, [2016] as set 2468
forth in subparagraph (C) of this subdivision, attributable to inpatient 2469
hospital services. 2470
(B) On and after July 1, 2017, [and prior to July 1, 2019,] the rate of 2471
tax for the provision of outpatient hospital services shall be nine 2472
hundred million dollars less the total tax imposed on all hospitals for 2473
the provision of inpatient hospital services, which sum shall be 2474
divided by the total audited net revenue for the fiscal year, [2016] as 2475
set forth in subparagraph (C) of this subdivision, attributable to 2476
outpatient hospital services, of all hospitals that are required to pay 2477
such tax. 2478
(C) [On and after July 1, 2019, the rate of tax for the provision of 2479
inpatient hospital services and outpatient hospital services shall be 2480
three hundred eighty-four million dollars divided by the total audited 2481
net revenue for fiscal year 2016, of all hospitals that are required to pay 2482
Governor's Bill No. 877
LCO No. 4566 86 of 138
such tax.] For the state fiscal years commencing July 1, 2017, and July 2483
1, 2018, the fiscal year upon which the tax shall be imposed under 2484
subparagraphs (A) and (B) of this subdivision shall be fiscal year 2016. 2485
For the biennium commencing July 1, 2019, and for each biennium 2486
thereafter, the fiscal year upon which the tax shall be imposed under 2487
subparagraphs (A) and (B) of this subdivision for each year of the 2488
biennium shall be the fiscal year occurring three years prior to the first 2489
state fiscal year of each biennium. 2490
(D) If a hospital or hospitals subject to the tax imposed under this 2491
subdivision merge, consolidate or otherwise reorganize, the surviving 2492
hospital shall assume and be liable for the total tax imposed under this 2493
subdivision on the merging, consolidating or reorganizing hospitals, 2494
including any outstanding liabilities from periods prior to such 2495
merger, consolidation or reorganization. If a hospital ceases to operate 2496
as a hospital for any reason other than a merger, consolidation or 2497
reorganization, or ceases for any reason to be subject to the tax 2498
imposed under this subdivision, the amount of tax due from each 2499
taxpayer under this subdivision shall not be recalculated to take into 2500
account such occurrence but the total amount of such tax to be 2501
collected under subparagraphs (A) and (B) of this subdivision shall be 2502
reduced by the amount of the tax liability imposed on the hospital that 2503
is no longer subject to the tax. 2504
(E) (i) If the Commissioner of Social Services determines for any 2505
fiscal year that the effective rate of tax for the tax imposed on net 2506
revenue for the provision of inpatient hospital services exceeds the rate 2507
permitted under the provisions of 42 CFR 433.68(f), as amended from 2508
time to time, the amount of tax collected that exceeds the permissible 2509
amount shall be refunded to hospitals, in proportion to the amount of 2510
net revenue for the provision of inpatient hospital services upon which 2511
the hospitals were taxed. The effective rate of tax shall be calculated by 2512
comparing the amount of tax paid by hospitals on net revenue for the 2513
provision of inpatient hospital services in a state fiscal year with the 2514
amount of net revenue received by hospitals subject to the tax for the 2515
Governor's Bill No. 877
LCO No. 4566 87 of 138
provision of inpatient hospital services for the equivalent fiscal year. 2516
(ii) On or before July 1, 2020, and annually thereafter, each hospital 2517
subject to the tax imposed under this subdivision shall report to the 2518
Commissioner of Social Services, in the manner prescribed by and on 2519
forms provided by said commissioner, the amount of tax paid 2520
pursuant to this subsection by such hospital and the amount of net 2521
revenue received by such hospital for the provision of inpatient 2522
hospital services, in the state fiscal year commencing two years prior to 2523
each such reporting date. Not later than ninety days after said 2524
commissioner receives completed reports from all hospitals required to 2525
submit such reports, said commissioner shall notify the Commissioner 2526
of Revenue Services of the amount of any refund due each hospital to 2527
be in compliance with 42 CFR 433.68(f), as amended from time to time. 2528
Not later than thirty days after receiving such notice, the 2529
Commissioner of Revenue Services shall notify the Comptroller of the 2530
amount of each such refund and the Comptroller shall draw an order 2531
on the Treasurer for payment of each such refund. No interest shall be 2532
added to any refund issued pursuant to this subparagraph. 2533
(2) Except as provided in subdivision (3) of this subsection, each 2534
[such] hospital subject to the tax imposed under subdivision (1) of this 2535
subsection shall be required to pay the total amount due in four 2536
quarterly payments consistent with section 12-263s, with the first 2537
quarter commencing with the first day of each state fiscal year and the 2538
last quarter ending on the last day of each state fiscal year. Hospitals 2539
shall make all payments required under this subsection in accordance 2540
with procedures established by and on forms provided by the 2541
commissioner. 2542
(3) (A) For the state fiscal year commencing July 1, 2017, each 2543
hospital required to pay tax on inpatient hospital services or outpatient 2544
hospital services shall make an estimated tax payment on December 2545
15, 2017, which estimated payment shall be equal to one hundred 2546
thirty-three per cent of the tax due under chapter 211a for the period 2547
Governor's Bill No. 877
LCO No. 4566 88 of 138
ending June 30, 2017. If a hospital was not required to pay tax under 2548
[said] chapter 211a on either inpatient hospital services or outpatient 2549
hospital services, such hospital shall make its estimated payment 2550
based on its unaudited net patient revenue. 2551
(B) Each hospital required to pay tax pursuant to this subdivision on 2552
inpatient hospital services or outpatient hospital services shall pay the 2553
remaining balance determined to be due in two equal payments, which 2554
shall be due on April 30, 2018, and July 31, 2018, respectively. 2555
(C) (i) For each state fiscal year commencing on or after July 1, 2017, 2556
and prior to July 1, 2019, each hospital required to pay tax on inpatient 2557
hospital services or outpatient hospital services shall calculate the 2558
amount of tax due on forms prescribed by the commissioner by 2559
multiplying the applicable rate set forth in subdivision (1) of this 2560
subsection by its audited net revenue for fiscal year 2016. [Hospitals 2561
shall make all payments required under this section in accordance with 2562
procedures established by and on forms provided by the 2563
commissioner.] 2564
(ii) For each state fiscal year commencing on or after July 1, 2019, 2565
each hospital required to pay tax on inpatient hospital services or 2566
outpatient hospital services shall calculate the amount of tax due on 2567
forms prescribed by the commissioner by multiplying the applicable 2568
rate set forth in subdivision (1) of this subsection by its audited net 2569
revenue for the fiscal year, as set forth in subparagraph (C) of 2570
subdivision (1) of this subsection. 2571
(D) The commissioner shall apply any payment made by a hospital 2572
in connection with the tax under chapter 211a for the period ending 2573
September 30, 2017, as a partial payment of such hospital's estimated 2574
tax payment due on December 15, 2017, under subparagraph (A) of 2575
this subdivision. The commissioner shall return to a hospital any credit 2576
claimed by such hospital in connection with the tax imposed under 2577
[said] chapter 211a for the period ending September 30, 2017, for 2578
Governor's Bill No. 877
LCO No. 4566 89 of 138
assignment as provided under section 12-263s. 2579
(4) (A) [Each] (i) For each state fiscal year commencing on or after 2580
July 1, 2017, and prior to July 1, 2019, each hospital required to pay tax 2581
on inpatient hospital services or outpatient hospital services shall 2582
submit to the commissioner such information as the commissioner 2583
requires in order to calculate the audited net inpatient revenue for 2584
fiscal year 2016, the audited net outpatient revenue for fiscal year 2016 2585
and the audited net revenue for fiscal year 2016 of all such health care 2586
providers. Such information shall be provided to the commissioner not 2587
later than January 1, 2018. The commissioner shall make additional 2588
requests for information as necessary to fully audit each hospital's net 2589
revenue. Upon completion of the commissioner's examination, the 2590
commissioner shall notify, prior to February 28, 2018, each hospital of 2591
its audited net inpatient revenue for fiscal year 2016, audited net 2592
outpatient revenue for fiscal year 2016 and audited net revenue for 2593
fiscal year 2016. 2594
(ii) For each state fiscal year commencing on or after July 1, 2019, 2595
each hospital required to pay tax on inpatient hospital services or 2596
outpatient hospital services shall submit to the commissioner 2597
biennially such information as the commissioner requires in order to 2598
calculate for the applicable fiscal year, as set forth in subparagraph (C) 2599
of subdivision (1) of this subsection, the audited net inpatient revenue, 2600
the audited net outpatient revenue and the audited net revenue of all 2601
such health care providers. For the state fiscal year commencing July 1, 2602
2019, such information shall be provided to the commissioner not later 2603
than June 30, 2019. For the biennium commencing July 1, 2021, and 2604
each biennium thereafter, such information shall be provided to the 2605
commissioner not later than January fifteenth of the second year of the 2606
biennium immediately preceding. The commissioner shall make 2607
additional requests for information as necessary to fully audit each 2608
hospital's net revenue. Upon completion of the commissioner's 2609
examination, the commissioner shall notify each hospital of its audited 2610
net inpatient revenue, audited net outpatient revenue and audited net 2611
Governor's Bill No. 877
LCO No. 4566 90 of 138
revenue for the applicable fiscal year, as set forth in subparagraph (C) 2612
of subdivision (1) of this subsection. 2613
(B) Any hospital that fails to provide the requested information 2614
[prior to January 1, 2018,] by the dates specified in subparagraph (A) of 2615
this subdivision or fails to comply with a request for additional 2616
information made under this subdivision shall be subject to a penalty 2617
of one thousand dollars per day for each day the hospital fails to 2618
provide the requested information or additional information. 2619
(C) The commissioner may engage an independent auditor to assist 2620
in the performance of the commissioner's duties and responsibilities 2621
under this subdivision. 2622
[(5) Net revenue derived from providing a health care item or 2623
service to a patient shall be taxed only one time under this section.] 2624
[(6)] (5) (A) For purposes of this [section] subsection: 2625
(i) ["Audited net inpatient revenue for fiscal year 2016"] "Audited 2626
net inpatient revenue for the fiscal year" means the amount of revenue 2627
that the commissioner determines, in accordance with federal law, that 2628
a hospital received for the provision of inpatient hospital services 2629
during the [2016] applicable federal fiscal year; 2630
(ii) ["Audited net outpatient revenue for fiscal year 2016"] "Audited 2631
net outpatient revenue for the fiscal year" means the amount of 2632
revenue that the commissioner determines, in accordance with federal 2633
law, that a hospital received for the provision of outpatient hospital 2634
services during the [2016] applicable federal fiscal year; and 2635
(iii) ["Audited net revenue for fiscal year 2016"] "Audited net 2636
revenue for the fiscal year" means net revenue, as reported in each 2637
hospital's audited financial statement, less the amount of revenue that 2638
the commissioner determines, in accordance with federal law, that a 2639
hospital received from other than the provision of inpatient hospital 2640
Governor's Bill No. 877
LCO No. 4566 91 of 138
services and outpatient hospital services. The total audited net revenue 2641
for the fiscal year [2016] shall be the sum of all audited net revenue for 2642
the applicable fiscal year [2016] for all hospitals required to pay tax on 2643
inpatient hospital services and outpatient hospital services. 2644
(B) Audited net inpatient revenue and audited net outpatient 2645
revenue shall be based on information provided by each hospital 2646
required to pay tax on inpatient hospital services or outpatient hospital 2647
services. 2648
[(b) (1)] (6) (A) The Commissioner of Social Services shall seek 2649
approval from the Centers for Medicare and Medicaid Services to 2650
exempt from the net revenue tax imposed under [subsection (a) of this 2651
section] this subsection the following: [(A)] (i) Specialty hospitals; [(B)] 2652
(ii) children's general hospitals; and [(C)] (iii) hospitals operated 2653
exclusively by the state other than a short-term acute hospital operated 2654
by the state as a receiver pursuant to chapter 920. Any hospital for 2655
which the Centers for Medicare and Medicaid Services grants an 2656
exemption shall be exempt from the net revenue tax imposed under 2657
[subsection (a) of this section] this subsection. Any hospital for which 2658
the Centers for Medicare and Medicaid Services denies an exemption 2659
shall be deemed to be a hospital for purposes of this [section] 2660
subsection and shall be required to pay the net revenue tax imposed 2661
under [subsection (a) of this section] this subsection on inpatient 2662
hospital services and outpatient hospital services. 2663
[(2)] (B) Each hospital shall provide to the Commissioner of Social 2664
Services, upon request, such information as said commissioner may 2665
require to make any computations necessary to seek approval for 2666
exemption under this [subsection] subdivision. 2667
[(3)] (C) As used in this [subsection] subdivision, [(A)] (i) "specialty 2668
hospital" means a health care facility, as defined in section 19a-630, 2669
other than a facility licensed by the Department of Public Health as a 2670
short-term general hospital or a short-term children's hospital. 2671
Governor's Bill No. 877
LCO No. 4566 92 of 138
"Specialty hospital" includes, but is not limited to, a psychiatric 2672
hospital or a chronic disease hospital, and [(B)] (ii) "children's general 2673
hospital" means a health care facility, as defined in section 19a-630, 2674
that is licensed by the Department of Public Health as a short-term 2675
children's hospital. "Children's general hospital" does not include a 2676
specialty hospital. 2677
[(c)] (7) Prior to [January 1, 2018] July 1, 2019, and every three years 2678
thereafter, the Commissioner of Social Services shall seek approval 2679
from the Centers for Medicare and Medicaid Services to exempt 2680
financially distressed hospitals from the net revenue tax imposed on 2681
outpatient hospital services. Any such hospital for which the Centers 2682
for Medicare and Medicaid Services grants an exemption shall be 2683
exempt from the net revenue tax imposed on outpatient hospital 2684
services under [subsection (a) of this section] this subsection. Any 2685
hospital for which the Centers for Medicare and Medicaid Services 2686
denies an exemption shall be required to pay the net revenue tax 2687
imposed on outpatient hospital services under [subsection (a) of this 2688
section] this subsection. For purposes of this [subsection] subdivision, 2689
"financially distressed hospital" means a hospital that has experienced 2690
over a five-year period an average net loss of more than five per cent of 2691
aggregate revenue. A hospital has an average net loss of more than five 2692
per cent of aggregate revenue if such a loss is reflected in the five most 2693
recent years of financial reporting that have been made available by 2694
the Health Systems Planning Unit of the Office of Health Strategy for 2695
such hospital in accordance with section 19a-670 as of the effective date 2696
of the request for approval which effective date shall be July first of the 2697
year in which the request is made. 2698
[(d)] (8) The commissioner shall issue guidance regarding the 2699
administration of the tax on inpatient hospital services and outpatient 2700
hospital services. Such guidance shall be issued upon completion of a 2701
study of the applicable federal law governing the administration of tax 2702
on inpatient hospital services and outpatient hospital services. The 2703
commissioner shall conduct such study in collaboration with the 2704
Governor's Bill No. 877
LCO No. 4566 93 of 138
Commissioner of Social Services, the Secretary of the Office of Policy 2705
and Management, the Connecticut Hospital Association and the 2706
hospitals subject to the tax imposed on inpatient hospital services and 2707
outpatient hospital services. 2708
[(e) (1)] (9) (A) The commissioner shall determine, in consultation 2709
with the Commissioner of Social Services, the Secretary of the Office of 2710
Policy and Management, the Connecticut Hospital Association and the 2711
hospitals subject to the tax imposed on inpatient hospital services and 2712
outpatient hospital services, if there is any underreporting of revenue 2713
on hospitals' audited financial statements. Such consultation shall only 2714
be as authorized under section 12-15. The commissioner shall issue 2715
guidance, if necessary, to address any such underreporting. 2716
[(2)] (B) If the commissioner determines, in accordance with this 2717
[subsection] subdivision, that a hospital underreported net revenue on 2718
its audited financial statement, the amount of underreported net 2719
revenue shall be added to the amount of net revenue reported on such 2720
hospital's audited financial statement so as to comply with federal law 2721
and the revised net revenue amount shall be used for purposes of 2722
calculating the amount of tax owed by such hospital under this 2723
[section] subsection. For purposes of this [subsection] subdivision, 2724
"underreported net revenue" means any revenue of a hospital subject 2725
to the tax imposed under this section that is required to be included in 2726
net revenue from the provision of inpatient hospital services and net 2727
revenue from the provision of outpatient hospital services to comply 2728
with 42 CFR 433.56, as amended from time to time, 42 CFR 433.68, as 2729
amended from time to time, and Section 1903(w) of the Social Security 2730
Act, as amended from time to time, but that was not reported on such 2731
hospital's audited financial statement. Underreported net revenue shall 2732
only include revenue of the hospital subject to such tax. 2733
(b) (1) For each calendar quarter commencing on or after July 1, 2734
2019, each ambulatory surgical center shall pay a tax on the total net 2735
revenue received by such ambulatory surgical center for the provision 2736
Governor's Bill No. 877
LCO No. 4566 94 of 138
of ambulatory surgical center services. The rate of tax on such net 2737
revenue received for the provision of such services shall be six per 2738
cent, except that such tax shall not be imposed on Medicaid payments 2739
or Medicare payments received by the ambulatory surgical center for 2740
the provision of ambulatory surgical center services. 2741
(2) Net revenue from each hospital-owned ambulatory surgical 2742
center shall be considered net revenue of the hospital and shall be 2743
reported as net revenue from inpatient hospital services or outpatient 2744
hospital services to the extent such net revenue is derived from 2745
services that fall within the scope of inpatient hospital services or 2746
outpatient hospital services. As used in this subdivision, "hospital-2747
owned ambulatory surgical center" includes only those ambulatory 2748
surgical centers that are considered departments of the owner-hospital 2749
and that have provider-based status in accordance with 42 CFR 413.65, 2750
as amended from time to time. If an ambulatory surgical center is 2751
owned by a hospital, but is not considered to be a department of the 2752
hospital or does not have provider-based status in accordance with 42 2753
CFR 413.65, as amended from time to time, the net revenue of such 2754
ambulatory surgical center shall not be considered net revenue of the 2755
owner-hospital, and such ambulatory surgical center shall be required 2756
to file and pay tax for any net revenue received from the provision of 2757
ambulatory surgical center services. 2758
(c) Net revenue derived from providing a health care item or service 2759
to a patient shall be taxed only one time under this section. 2760
[(f)] (d) Nothing in this section shall affect the commissioner's 2761
obligations under section 12-15 regarding disclosure and inspection of 2762
returns and return information. 2763
[(g)] (e) The provisions of section 17b-8 shall not apply to any 2764
exemption or exemptions sought by the [Department] Commissioner 2765
of Social Services from the Centers for Medicare and Medicaid Services 2766
under this section. 2767
Governor's Bill No. 877
LCO No. 4566 95 of 138
Sec. 37. Subsection (a) of section 12-263r of the general statutes is 2768
repealed and the following is substituted in lieu thereof (Effective from 2769
passage): 2770
(a) For each calendar quarter commencing on or after July 1, 2017, 2771
there is hereby imposed a quarterly fee on each nursing home and 2772
intermediate care facility in this state, which fee shall be the product of 2773
each facility's total resident days during the calendar quarter 2774
multiplied by the user fee. Except as otherwise provided in this 2775
section, (1) the user fee for nursing homes shall be twenty-one dollars 2776
and two cents, and (2) the user fee for intermediate care facilities shall 2777
be (A) twenty-seven dollars and twenty-six cents for calendar quarters 2778
commencing on or after July 1, 2017, and prior to July 1, 2019, and (B) 2779
twenty-seven dollars and seventy-six cents for calendar quarters 2780
commencing on or after July 1, 2019. As used in this subsection, 2781
"resident day" means nursing home resident day and intermediate care 2782
facility resident day, as applicable. 2783
Sec. 38. Section 12-263i of the general statutes is repealed and the 2784
following is substituted in lieu thereof (Effective from passage): 2785
(a) As used in this section: 2786
(1) "Ambulatory surgical center" means an entity included within 2787
the definition of said term that is set forth in 42 CFR 416.2 and that is 2788
licensed by the Department of Public Health as an outpatient surgical 2789
facility, and any other ambulatory surgical center that is Medicare 2790
certified; 2791
(2) "Commissioner" means the Commissioner of Revenue Services; 2792
and 2793
(3) "Department" means the Department of Revenue Services. 2794
(b) (1) For each calendar quarter commencing on or after October 1, 2795
2015, and prior to July 1, 2019, there is hereby imposed a tax on each 2796
Governor's Bill No. 877
LCO No. 4566 96 of 138
ambulatory surgical center in this state to be paid each calendar 2797
quarter. The tax imposed by this section shall be at the rate of six per 2798
cent of the gross receipts of each ambulatory surgical center, except 2799
that [: (A) Prior to July 1, 2019,] such tax shall not be imposed on any 2800
amount of such gross receipts that constitutes either [(i)] (A) the first 2801
million dollars of gross receipts of the ambulatory surgical center in 2802
the applicable fiscal year, or [(ii)] (B) net revenue of a hospital that is 2803
subject to the tax imposed under section 12-263q, as amended by this 2804
act. [; and 2805
(B) On and after July 1, 2019, such tax shall not be imposed on any 2806
amount of such gross receipts that constitutes any of the following: (i) 2807
The first million dollars of gross receipts of the ambulatory surgical 2808
center in the applicable fiscal year, excluding Medicaid and Medicare 2809
payments, (ii) net revenue of a hospital that is subject to the tax 2810
imposed under section 12-263q, (iii) Medicaid payments received by 2811
the ambulatory surgical center, and (iv) Medicare payments received 2812
by the ambulatory surgical center.] 2813
(2) Nothing in this section shall prohibit an ambulatory surgical 2814
center from seeking remuneration for the tax imposed by this section. 2815
(3) Each ambulatory surgical center shall, [on or before January 31, 2816
2016, and thereafter] on or before the last day of January, April, July 2817
and October of each year until and including July 30, 2019, render to 2818
the commissioner a return, on forms prescribed or furnished by the 2819
commissioner, reporting the name and location of such ambulatory 2820
surgical center, the entire amount of gross receipts generated by such 2821
ambulatory surgical center during the calendar quarter ending on the 2822
last day of the preceding month and such other information as the 2823
commissioner deems necessary for the proper administration of this 2824
section. The tax imposed under this section shall be due and payable 2825
on the due date of such return. Each ambulatory surgical center shall 2826
be required to file such return electronically with the department and 2827
to make payment of such tax by electronic funds transfer in the 2828
Governor's Bill No. 877
LCO No. 4566 97 of 138
manner provided by chapter 228g, regardless of whether such 2829
ambulatory surgical center would have otherwise been required to file 2830
such return electronically or to make such tax payment by electronic 2831
funds transfer under the provisions of chapter 228g. 2832
(c) Whenever the tax imposed under this section is not paid when 2833
due, a penalty of ten per cent of the amount due and unpaid or fifty 2834
dollars, whichever is greater, shall be imposed and interest at the rate 2835
of one per cent per month or fraction thereof shall accrue on such tax 2836
from the due date of such tax until the date of payment. 2837
(d) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 2838
12-555a shall apply to the provisions of this section in the same manner 2839
and with the same force and effect as if the language of said sections 2840
had been incorporated in full into this section and had expressly 2841
referred to the tax imposed under this section, except to the extent that 2842
any provision is inconsistent with a provision in this section. 2843
(e) For the fiscal year ending June 30, 2016, and each fiscal year 2844
[thereafter] ending prior to July 1, 2019, the Comptroller is authorized 2845
to record as revenue for each fiscal year the amount of tax imposed 2846
under the provisions of this section prior to the end of each fiscal year 2847
and which tax is received by the Commissioner of Revenue Services 2848
not later than five business days after the last day of July immediately 2849
following the end of each fiscal year. 2850
Sec. 39. Subsection (b) of section 12-494 of the general statutes is 2851
repealed and the following is substituted in lieu thereof (Effective July 2852
1, 2019, and applicable to conveyances occurring on or after July 1, 2019): 2853
(b) The rate of tax imposed under subdivision (1) of subsection (a) of 2854
this section shall, in lieu of the rate under said subdivision (1), be 2855
imposed on certain conveyances as follows: (1) In the case of any 2856
conveyance of real property which at the time of such conveyance is 2857
used for any purpose other than residential use, except unimproved 2858
land, the tax under said subdivision (1) shall be imposed at the rate of 2859
Governor's Bill No. 877
LCO No. 4566 98 of 138
one and one-quarter per cent of the consideration for the interest in 2860
real property conveyed; (2) in the case of any conveyance in which the 2861
real property conveyed is a residential estate, including a primary 2862
dwelling and any auxiliary housing or structures, regardless of the 2863
number of deeds, instruments or writings used to convey such 2864
residential real estate, for which the consideration or aggregate 2865
consideration, as the case may be, in such conveyance is eight hundred 2866
thousand dollars or more, the tax under said subdivision (1) shall be 2867
imposed (A) at the rate of three-quarters of one per cent on that 2868
portion of such consideration up to and including the amount of eight 2869
hundred thousand dollars, and (B) at the rate of [one and one-quarter] 2870
one and one-half per cent on that portion of such consideration in 2871
excess of eight hundred thousand dollars; and (3) in the case of any 2872
conveyance in which real property on which mortgage payments have 2873
been delinquent for not less than six months is conveyed to a financial 2874
institution or its subsidiary which holds such a delinquent mortgage 2875
on such property, the tax under said subdivision (1) shall be imposed 2876
at the rate of three-quarters of one per cent of the consideration for the 2877
interest in real property conveyed. For the purposes of subdivision (1) 2878
of this subsection, "unimproved land" includes land designated as 2879
farm, forest or open space land. 2880
Sec. 40. Subsection (d) of section 12-217n of the general statutes is 2881
repealed and the following is substituted in lieu thereof (Effective from 2882
passage and applicable to taxable years commencing on or after January 1, 2883
2019): 2884
(d) (1) The credit provided for by this section shall be allowed for 2885
any income year commencing on or after January 1, 1993, provided 2886
any credits allowed for income years commencing on or after January 2887
1, 1993, and prior to January 1, 1995, may not be taken until income 2888
years commencing on or after January 1, 1995, and, for the purposes of 2889
subdivision (2) of this subsection, shall be treated as if the credit for 2890
each such income year first became allowable in the first income year 2891
commencing on or after January 1, 1995. 2892
Governor's Bill No. 877
LCO No. 4566 99 of 138
(2) No more than one-third of the amount of the credit allowable for 2893
any income year may be included in the calculation of the amount of 2894
the credit that may be taken in that income year. 2895
(3) The total amount of the credit under subdivision (1) of this 2896
subsection that may be taken for any income year may not exceed the 2897
greater of (A) fifty per cent of the taxpayer's tax liability or in the case 2898
of a combined return, fifty per cent of the combined tax liability, for 2899
such income year, determined without regard to any credits allowed 2900
under this section, and (B) the lesser of (i) two hundred per cent of the 2901
credit otherwise allowed under subsection (c) of this section for such 2902
income year, and (ii) ninety per cent of the taxpayer's tax liability or in 2903
the case of a combined return, ninety per cent of the combined liability 2904
for such income year, determined without regard to any credits 2905
allowed under this section. 2906
(4) (A) Credits that are allowed under this section [but] for taxable 2907
years commencing prior to January 1, 2019, that exceed the amount 2908
permitted to be taken in an income year [by reason of] pursuant to the 2909
provisions of subdivision (1), (2) or (3) of this subsection [,] shall be 2910
carried forward to each of the successive income years until such 2911
credits, or applicable portion thereof, are fully taken. No credit 2912
permitted under this section shall be taken in any income year until the 2913
full amount of all allowable credits carried forward to such year from 2914
any prior income year, commencing with the earliest such prior year, 2915
that otherwise may be taken under subdivision (2) of this subsection in 2916
that income year, have been fully taken. 2917
(B) Credits that are allowed under this section for taxable years 2918
commencing on or after January 1, 2019, that exceed the amount 2919
permitted to be taken in an income year pursuant to the provisions of 2920
subdivision (1), (2) or (3) of this subsection shall be carried forward to 2921
each of the successive income years until such credits, or applicable 2922
portion thereof, are fully taken. No credit permitted under this section 2923
shall be taken in any income year until the full amount of all allowable 2924
Governor's Bill No. 877
LCO No. 4566 100 of 138
credits carried forward to such year from any prior income year, 2925
commencing with the earliest such prior year, that otherwise may be 2926
taken under subdivision (2) of this subsection in that income year, 2927
have been fully taken. In no case may a credit allowed under this 2928
subparagraph, or any portion thereof, that is not used by a taxpayer be 2929
carried forward for a period of more than fifteen years. 2930
Sec. 41. Subsection (a) of section 12-217zz of the general statutes is 2931
repealed and the following is substituted in lieu thereof (Effective from 2932
passage and applicable to income years commencing on or after January 1, 2933
2019): 2934
(a) Notwithstanding any other provision of law, and except as 2935
otherwise provided in subsection (b) of this section and sections 12-2936
217aaa and 12-217bbb, the amount of tax credit or credits otherwise 2937
allowable against the tax imposed under this chapter shall be as 2938
follows: 2939
(1) For any income year commencing on or after January 1, 2002, 2940
and prior to January 1, 2015, the amount of tax credit or credits 2941
otherwise allowable shall not exceed seventy per cent of the amount of 2942
tax due from such taxpayer under this chapter with respect to any such 2943
income year of the taxpayer prior to the application of such credit or 2944
credits; 2945
(2) For any income year commencing on or after January 1, 2015, the 2946
amount of tax credit or credits otherwise allowable shall not exceed 2947
fifty and one one-hundredths per cent of the amount of tax due from 2948
such taxpayer under this chapter with respect to any such income year 2949
of the taxpayer prior to the application of such credit or credits; 2950
(3) Notwithstanding the provisions of subdivision (2) of this 2951
subsection, any taxpayer that possesses excess credits may utilize the 2952
excess credits as follows: 2953
(A) For income years commencing on or after January 1, 2016, and 2954
Governor's Bill No. 877
LCO No. 4566 101 of 138
prior to January 1, 2017, the aggregate amount of tax credits and excess 2955
credits allowable shall not exceed fifty-five per cent of the amount of 2956
tax due from such taxpayer under this chapter with respect to any such 2957
income year of the taxpayer prior to the application of such credit or 2958
credits; 2959
(B) For income years commencing on or after January 1, 2017, and 2960
prior to January 1, 2018, the aggregate amount of tax credits and excess 2961
credits allowable shall not exceed sixty per cent of the amount of tax 2962
due from such taxpayer under this chapter with respect to any such 2963
income year of the taxpayer prior to the application of such credit or 2964
credits; and 2965
(C) For income years commencing on or after January 1, 2018, and 2966
prior to January 1, 2019, the aggregate amount of tax credits and excess 2967
credits allowable shall not exceed sixty-five per cent of the amount of 2968
tax due from such taxpayer under this chapter with respect to any such 2969
income year of the taxpayer prior to the application of such credit or 2970
credits; 2971
[(D) For income years commencing on or after January 1, 2019, the 2972
aggregate amount of tax credits and excess credits allowable shall not 2973
exceed seventy per cent of the amount of tax due from such taxpayer 2974
under this chapter with respect to any such income year of the 2975
taxpayer prior to the application of such credit or credits;] 2976
(4) For purposes of this subsection, "excess credits" means any 2977
remaining credits available under section 12-217j, 12-217n, as amended 2978
by this act, or 32-9t after tax credits are utilized in accordance with 2979
subdivision (2) of this subsection. 2980
Sec. 42. (NEW) (Effective from passage and applicable to quarterly periods 2981
commencing on or after July 1, 2019) Notwithstanding any provision of 2982
the general statutes allowing for a higher amount, for any quarterly 2983
periods commencing on or after July 1, 2019, the amount of tax credit 2984
or credits allowable against the tax imposed under chapter 211 of the 2985
Governor's Bill No. 877
LCO No. 4566 102 of 138
general statutes, shall not exceed fifty and one one-hundredths per 2986
cent of the amount of tax due from a taxpayer under such chapter with 2987
respect to any such quarterly period of the taxpayer prior to the 2988
application of such credit or credits. 2989
Sec. 43. (NEW) (Effective from passage and applicable to quarterly periods 2990
commencing on or after July 1, 2019) Notwithstanding any provision of 2991
the general statutes allowing for a higher amount, for any quarterly 2992
periods commencing on or after July 1, 2019, the amount of tax credit 2993
or credits allowable against the tax imposed under chapter 212 of the 2994
general statutes, shall not exceed fifty and one one-hundredths per 2995
cent of the amount of tax due from a taxpayer under such chapter with 2996
respect to any such quarterly period of the taxpayer prior to the 2997
application of such credit or credits. 2998
Sec. 44. (NEW) (Effective from passage and applicable to quarterly periods 2999
commencing on or after July 1, 2019) Notwithstanding any provision of 3000
the general statutes allowing for a higher amount, for any quarterly 3001
periods commencing on or after July 1, 2019, the amount of tax credit 3002
or credits allowable against the tax imposed under chapter 227 of the 3003
general statutes, shall not exceed fifty and one one-hundredths per 3004
cent of the amount of tax due from a taxpayer under such chapter with 3005
respect to any such quarterly period of the taxpayer prior to the 3006
application of such credit or credits. 3007
Sec. 45. Subsection (a) of section 12-264 of the general statutes is 3008
repealed and the following is substituted in lieu thereof (Effective July 3009
1, 2019): 3010
(a) Each (1) municipality, or department or agency thereof, or 3011
district manufacturing, selling or distributing gas to be used for light, 3012
heat or power, (2) company the principal business of which is 3013
manufacturing, selling or distributing gas or steam to be used for light, 3014
heat or power, including each foreign electric company, as defined in 3015
section 16-246f, that holds property in this state, and (3) company 3016
Governor's Bill No. 877
LCO No. 4566 103 of 138
required to register pursuant to section 16-258a, shall pay a quarterly 3017
tax upon gross earnings from such operations in this state. Gross 3018
earnings from such operations under subdivisions (1) and (2) of this 3019
subsection shall include, as determined by the Commissioner of 3020
Revenue Services, (A) all income included in operating revenue 3021
accounts in the uniform systems of accounts prescribed by the Public 3022
Utilities Regulatory Authority for operations within the taxable 3023
quarter and, with respect to each such company, (B) all income 3024
identified in said uniform systems of accounts as income from 3025
merchandising, jobbing and contract work, (C) all revenues identified 3026
in said uniform systems of accounts as income from nonutility 3027
operations, (D) all revenues identified in said uniform systems of 3028
accounts as nonoperating retail income, and (E) receipts from the sale 3029
of residuals and other by-products obtained in connection with the 3030
production of gas, electricity or steam. Gross earnings from such 3031
operations under subdivision (3) of this subsection shall be gross 3032
income from the sales of natural gas. [, provided gross income shall not 3033
include income from the sale of natural gas to an existing combined 3034
cycle facility comprised of three gas turbines providing electric 3035
generation services, as defined in section 16-1, with a total capacity of 3036
seven hundred seventy-five megawatts, for use in the production of 3037
electricity.] Gross earnings of a gas company, as defined in section 16-3038
1, shall not include income earned in a taxable quarter commencing 3039
prior to June 30, 2008, from the sale of natural gas or propane as a fuel 3040
for a motor vehicle. No deductions shall be allowed from such gross 3041
earnings for any commission, rebate or other payment, except a refund 3042
resulting from an error or overcharge and those specifically mentioned 3043
in section 12-265. Gross earnings of a company, as described in 3044
subdivision (2) of this subsection, shall not include income earned in 3045
any taxable quarter commencing on or after July 1, 2000, from the sale 3046
of steam. 3047
Sec. 46. (NEW) (Effective October 1, 2019, and applicable to sales 3048
occurring on or after October 1, 2019) (a) As used in this section: 3049
Governor's Bill No. 877
LCO No. 4566 104 of 138
(1) "Electronic nicotine delivery system" has the same meaning as 3050
provided in section 19a-342a of the general statutes; 3051
(2) "Liquid nicotine container" has the same meaning as provided in 3052
section 19a-342a of the general statutes; 3053
(3) "Vapor product" has the same meaning as provided in section 3054
19a-342a of the general statutes; 3055
(4) "Electronic cigarette liquid" means a liquid that, when used in an 3056
electronic nicotine delivery system or a vapor product, produces a 3057
vapor that may or may not include nicotine and is inhaled by the user 3058
of such electronic nicotine delivery system or vapor product; 3059
(5) "Electronic cigarette products" means electronic nicotine delivery 3060
systems, liquid nicotine containers, vapor products and electronic 3061
cigarette liquids; 3062
(6) "Electronic cigarette wholesaler" means (A) any person engaged 3063
in the business of selling electronic cigarette products at wholesale in 3064
the state, (B) any person in this state who purchases electronic cigarette 3065
products at wholesale from a manufacturer, or (C) any dealer, retailer 3066
or other person that otherwise imports, or causes another person to 3067
import, untaxed electronic cigarette products into this state; 3068
(7) "Wholesale sales price" means the price of electronic cigarette 3069
products or, if no price has been set, the wholesale value of such 3070
products; and 3071
(8) "Sale" means any transfer of title or possession or both, exchange, 3072
barter, distribution or gift, of electronic cigarette products, with or 3073
without consideration. 3074
(b) For each calendar month commencing on or after October 1, 3075
2019, a tax is imposed on all sales of electronic cigarette products made 3076
in this state by electronic cigarette wholesalers at the rate of seventy-3077
five per cent of the wholesale sales price of such products, whether or 3078
Governor's Bill No. 877
LCO No. 4566 105 of 138
not sold at wholesale, or if not sold, then at the same rate upon the use 3079
by the wholesaler. Only one sale of the same product shall be used in 3080
computing the amount of tax due under this subsection. 3081
(c) Each electronic cigarette wholesaler shall file with the 3082
commissioner, on or before the last day of each month, a report for the 3083
calendar month immediately preceding in such form and containing 3084
such information as the Commissioner of Revenue Services may 3085
prescribe. The return shall be accompanied by a payment of the 3086
amount of the tax shown to be due thereon. Payment shall be made 3087
with such return. Each electronic cigarette wholesaler shall file such 3088
return electronically with the Department of Revenue Services and 3089
make such payment by electronic funds transfer in the manner 3090
provided by chapter 228g of the general statutes. 3091
(d) If any person fails to pay the amount of tax reported due on its 3092
report within the time specified under this section, there shall be 3093
imposed a penalty equal to ten per cent of such amount due and 3094
unpaid, or fifty dollars, whichever is greater. Such amount shall bear 3095
interest at the rate of one per cent per month or fraction thereof, from 3096
the due date of such tax until the date of payment. Subject to the 3097
provisions of section 12-3a of the general statutes, the commissioner 3098
may waive all or part of the penalties provided under this section 3099
when it is proven to the commissioner's satisfaction that the failure to 3100
pay any tax was due to reasonable cause and was not intentional or 3101
due to neglect. 3102
(e) Each person, other than an electronic cigarette wholesaler, who is 3103
required, on behalf of an electronic cigarette wholesaler, to collect, 3104
truthfully account for and pay over the tax imposed on such electronic 3105
cigarette wholesaler under this section and who wilfully fails to collect, 3106
truthfully account for and pay over such tax or who wilfully attempts 3107
in any manner to evade or defeat the tax or the payment thereof, shall, 3108
in addition to other penalties provided by law, be liable for a penalty 3109
equal to the total amount of the tax evaded, or not collected, or not 3110
Governor's Bill No. 877
LCO No. 4566 106 of 138
accounted for and paid over, including any penalty or interest 3111
attributable to such wilful failure to collect or truthfully account for 3112
and pay over such tax or such wilful attempt to evade or defeat such 3113
tax, provided such penalty shall only be imposed against such person 3114
in the event that such tax, penalty or interest cannot otherwise be 3115
collected from the electronic cigarette wholesaler. The amount of such 3116
penalty with respect to which a person may be personally liable under 3117
this section shall be collected in accordance with the provisions of 3118
section 12-555a of the general statutes and any amount so collected 3119
shall be allowed as a credit against the amount of such tax, penalty or 3120
interest due and owing from the electronic cigarette wholesaler. The 3121
dissolution of the electronic cigarette wholesaler shall not discharge 3122
any person in relation to any personal liability under this section for 3123
wilful failure to collect or truthfully account for and pay over such tax 3124
or for a wilful attempt to evade or defeat such tax prior to dissolution, 3125
except as otherwise provided in this section. For purposes of this 3126
section, "person" includes any individual, corporation, limited liability 3127
company or partnership and any officer or employee of any 3128
corporation, including a dissolved corporation, and a member or 3129
employee of any partnership or limited liability company who, as such 3130
officer, employee or member, is under a duty to file a tax return under 3131
this section on behalf of an electronic cigarette wholesaler or to collect 3132
or truthfully account for and pay over the tax imposed under this 3133
section on behalf of an electronic cigarette wholesaler. 3134
(f) No tax credit or credits shall be allowable against the tax 3135
imposed under this section. 3136
(g) The provisions of sections 12-550 to 12-554, inclusive, and section 3137
12-555a of the general statutes shall apply to the provisions of this 3138
section in the same manner and with the same force and effect as if the 3139
language of said sections had been incorporated in full into this section 3140
and had expressly referred to the tax under this section, except to the 3141
extent that any provision is inconsistent with a provision in this 3142
section. 3143
Governor's Bill No. 877
LCO No. 4566 107 of 138
(h) The commissioner may adopt regulations, in accordance with 3144
the provisions of chapter 54 of the general statutes, to implement the 3145
provisions of this section. 3146
(i) At the close of each fiscal year commencing with the fiscal year 3147
ending June 30, 2020, the Comptroller is authorized to record as 3148
revenue for such fiscal year the amount of the tax imposed under the 3149
provisions of this section that is received by the commissioner not later 3150
than five business days from the last day of July immediately 3151
following the end of such fiscal year. 3152
Sec. 47. Subsection (a) of section 12-286a of the general statutes is 3153
repealed and the following is substituted in lieu thereof (Effective 3154
October 1, 2019): 3155
(a) Each distributor and each dealer, as defined in section 12-285, 3156
shall place and maintain in legible condition at each point of sale of 3157
cigarettes to consumers, including the front of each vending machine, 3158
and each restricted cigarette vending machine a notice which states (1) 3159
that the sale, giving or delivering of tobacco products, including 3160
cigarettes, to any person under [eighteen] twenty-one years of age is 3161
prohibited by section 53-344, as amended by this act, (2) the purchase 3162
or misrepresentation of age by a person under [eighteen] twenty-one 3163
years of age to purchase cigarettes or tobacco products is prohibited by 3164
[said] section 53-344, as amended by this act, and (3) the penalties and 3165
fines for violating [said] section 53-344, as amended by this act, and 3166
section 12-295a, as amended by this act. 3167
Sec. 48. Subsection (a) of section 12-295 of the general statutes is 3168
repealed and the following is substituted in lieu thereof (Effective 3169
October 1, 2019): 3170
(a) The commissioner may suspend or revoke the license of any 3171
dealer or distributor for failure to comply with any provision of this 3172
chapter or regulations related thereto or for the sale or delivery of 3173
tobacco in any form to a [minor under eighteen] person under twenty-3174
Governor's Bill No. 877
LCO No. 4566 108 of 138
one years of age, following a hearing with respect to which notice in 3175
writing, specifying the time and place of such hearing and requiring 3176
such dealer or distributor to show cause why such license should not 3177
be revoked, is mailed or delivered to such dealer or distributor not less 3178
than ten days preceding the date of such hearing. Such notice may be 3179
served personally or by registered or certified mail. 3180
Sec. 49. Subsection (a) of section 12-295a of the general statutes is 3181
repealed and the following is substituted in lieu thereof (Effective 3182
October 1, 2019): 3183
(a) If the Commissioner of Revenue Services finds, after a hearing, 3184
that a minor has purchased cigarettes or tobacco products, said 3185
commissioner shall assess such minor a civil penalty of not more than 3186
one hundred dollars for the first violation and not more than one 3187
hundred fifty dollars for any second or subsequent offense within 3188
twenty-four months after the first violation. For purposes of this 3189
section, "minor" means a person under twenty-one years of age. 3190
Sec. 50. Section 12-314a of the general statutes is repealed and the 3191
following is substituted in lieu thereof (Effective October 1, 2019): 3192
The Commissioner of Revenue Services may authorize a dealer or 3193
distributor to give or deliver any cigarette, as defined in section 12-285, 3194
or tobacco product, as defined in section 12-330a, in connection with 3195
the promotion or advertisement of such cigarette or tobacco product 3196
without receiving monetary consideration from the person receiving 3197
the cigarette or tobacco product, provided (1) such distribution is on 3198
the premises of a licensed dealer as defined in said section 12-285 or at 3199
any event or establishment with an area the access to which is limited 3200
to adult patrons provided such distribution is restricted to such area, 3201
(2) the sample of cigarettes, if applicable, contains no less than two 3202
cigarettes, and (3) the taxes on such cigarettes have been previously 3203
paid. The licensed dealer or distributor shall be liable for any gift or 3204
delivery of cigarettes or tobacco products to [minors on his] persons 3205
Governor's Bill No. 877
LCO No. 4566 109 of 138
under twenty-one years of age on such dealer's premises by any 3206
person conducting a promotion or advertisement of such cigarette or 3207
tobacco product in accordance with this section. This section shall not 3208
apply to the gift or delivery of a cigarette package in connection with a 3209
sale of similar package of cigarettes. 3210
Sec. 51. Section 53-344 of the general statutes is repealed and the 3211
following is substituted in lieu thereof (Effective October 1, 2019): 3212
(a) As used in this section: 3213
(1) "Cardholder" means any person who presents a driver's license 3214
or an identity card to a seller or seller's agent or employee, to purchase 3215
or receive tobacco from such seller or seller's agent or employee; 3216
(2) "Identity card" means an identification card issued in accordance 3217
with the provisions of section 1-1h; 3218
(3) "Transaction scan" means the process by which a seller or seller's 3219
agent or employee checks, by means of a transaction scan device, the 3220
validity of a driver's license or an identity card; and 3221
(4) "Transaction scan device" means any commercial device or 3222
combination of devices used at a point of sale that is capable of 3223
deciphering in an electronically readable format the information 3224
encoded on the magnetic strip or bar code of a driver's license or an 3225
identity card. 3226
(b) Any person who sells, gives or delivers to any person under 3227
[eighteen] twenty-one years of age tobacco shall be fined not more 3228
than two hundred dollars for the first offense, not more than three 3229
hundred fifty dollars for a second offense within a twenty-four-month 3230
period and not more than five hundred dollars for each subsequent 3231
offense within a twenty-four-month period. The provisions of this 3232
subsection shall not apply to a person under [eighteen] twenty-one 3233
years of age who is delivering or accepting delivery of tobacco (1) in 3234
Governor's Bill No. 877
LCO No. 4566 110 of 138
such person's capacity as an employee, or (2) as part of a scientific 3235
study being conducted by an organization for the purpose of medical 3236
research to further efforts in tobacco use prevention and cessation, 3237
provided such medical research has been approved by the 3238
organization's institutional review board, as defined in section 21a-408. 3239
(c) Any person under [eighteen] twenty-one years of age who 3240
purchases or misrepresents such person's age to purchase tobacco in 3241
any form or possesses tobacco in any form in any public place shall be 3242
fined not more than fifty dollars for the first offense and not less than 3243
fifty dollars or more than one hundred dollars for each subsequent 3244
offense. For purposes of this subsection, "public place" means any area 3245
that is used or held out for use by the public whether owned or 3246
operated by public or private interests. 3247
(d) (1) A seller or seller's agent or employee may perform a 3248
transaction scan to check the validity of a driver's license or identity 3249
card presented by a cardholder as a condition for selling, giving away 3250
or otherwise distributing tobacco to the cardholder. 3251
(2) If the information deciphered by the transaction scan performed 3252
under subdivision (1) of this subsection fails to match the information 3253
printed on the driver's license or identity card presented by the 3254
cardholder, or if the transaction scan indicates that the information so 3255
printed is false or fraudulent, neither the seller nor any seller's agent or 3256
employee shall sell, give away or otherwise distribute any tobacco to 3257
the cardholder. 3258
(3) Subdivision (1) of this subsection does not preclude a seller or 3259
seller's agent or employee from using a transaction scan device to 3260
check the validity of a document other than a driver's license or an 3261
identity card, if the document includes a bar code or magnetic strip 3262
that may be scanned by the device, as a condition for selling, giving 3263
away or otherwise distributing tobacco to the person presenting the 3264
document. 3265
Governor's Bill No. 877
LCO No. 4566 111 of 138
(e) (1) No seller or seller's agent or employee shall electronically or 3266
mechanically record or maintain any information derived from a 3267
transaction scan, except the following: (A) The name and date of birth 3268
of the person listed on the driver's license or identity card presented by 3269
a cardholder; (B) the expiration date and identification number of the 3270
driver's license or identity card presented by a cardholder. 3271
(2) No seller or seller's agent or employee shall use a transaction 3272
scan device for a purpose other than the purposes specified in 3273
subsection (e) of section 53-344b, as amended by this act, subsection (d) 3274
of this section or subsection (c) of section 30-86. 3275
(3) No seller or seller's agent or employee shall sell or otherwise 3276
disseminate the information derived from a transaction scan to any 3277
third party, including, but not limited to, selling or otherwise 3278
disseminating that information for any marketing, advertising or 3279
promotional activities, but a seller or seller's agent or employee may 3280
release that information pursuant to a court order. 3281
(4) Nothing in subsection (d) of this section or this subsection 3282
relieves a seller or seller's agent or employee of any responsibility to 3283
comply with any other applicable state or federal laws or rules 3284
governing the sale, giving away or other distribution of tobacco. 3285
(5) Any person who violates this subsection shall be subject to a civil 3286
penalty of not more than one thousand dollars. 3287
(f) (1) In any prosecution of a seller or seller's agent or employee for 3288
a violation of subsection (b) of this section, it shall be an affirmative 3289
defense that all of the following occurred: (A) A cardholder attempting 3290
to purchase or receive tobacco presented a driver's license or an 3291
identity card; (B) a transaction scan of the driver's license or identity 3292
card that the cardholder presented indicated that the license or card 3293
was valid; and (C) the tobacco was sold, given away or otherwise 3294
distributed to the cardholder in reasonable reliance upon the 3295
identification presented and the completed transaction scan. 3296
Governor's Bill No. 877
LCO No. 4566 112 of 138
(2) In determining whether a seller or seller's agent or employee has 3297
proven the affirmative defense provided by subdivision (1) of this 3298
section, the trier of fact in such prosecution shall consider that 3299
reasonable reliance upon the identification presented and the 3300
completed transaction scan may require a seller or seller's agent or 3301
employee to exercise reasonable diligence and that the use of a 3302
transaction scan device does not excuse a seller or seller's agent or 3303
employee from exercising such reasonable diligence to determine the 3304
following: (A) Whether a person to whom the seller or seller's agent or 3305
employee sells, gives away or otherwise distributes tobacco is 3306
[eighteen] twenty-one years of age or older; and (B) whether the 3307
description and picture appearing on the driver's license or identity 3308
card presented by a cardholder is that of the cardholder. 3309
Sec. 52. Section 53-344b of the general statutes is repealed and the 3310
following is substituted in lieu thereof (Effective October 1, 2019): 3311
(a) As used in this section and sections 21a-415 and 21a-415a: 3312
(1) "Electronic nicotine delivery system" means an electronic device 3313
that may be used to simulate smoking in the delivery of nicotine or 3314
other substance to a person inhaling from the device, and includes, but 3315
is not limited to, an electronic cigarette, electronic cigar, electronic 3316
cigarillo, electronic pipe or electronic hookah and any related device 3317
and any cartridge, electronic cigarette liquid or other component of 3318
such device; 3319
(2) "Cardholder" means any person who presents a driver's license 3320
or an identity card to a seller or seller's agent or employee, to purchase 3321
or receive an electronic nicotine delivery system or vapor product from 3322
such seller or seller's agent or employee; 3323
(3) "Identity card" means an identification card issued in accordance 3324
with the provisions of section 1-1h; 3325
(4) "Transaction scan" means the process by which a seller or seller's 3326
Governor's Bill No. 877
LCO No. 4566 113 of 138
agent or employee checks, by means of a transaction scan device, the 3327
validity of a driver's license or an identity card; 3328
(5) "Transaction scan device" means any commercial device or 3329
combination of devices used at a point of sale that is capable of 3330
deciphering in an electronically readable format the information 3331
encoded on the magnetic strip or bar code of a driver's license or an 3332
identity card; 3333
(6) "Sale" or "sell" means an act done intentionally by any person, 3334
whether done as principal, proprietor, agent, servant or employee, of 3335
transferring, or offering or attempting to transfer, for consideration, an 3336
electronic nicotine delivery system or vapor product, including 3337
bartering or exchanging, or offering to barter or exchange, an 3338
electronic nicotine delivery system or vapor product; 3339
(7) "Give" or "giving" means an act done intentionally by any 3340
person, whether done as principal, proprietor, agent, servant or 3341
employee, of transferring, or offering or attempting to transfer, 3342
without consideration, an electronic nicotine delivery system or vapor 3343
product; 3344
(8) "Deliver" or "delivering" means an act done intentionally by any 3345
person, whether as principal, proprietor, agent, servant or employee, 3346
of transferring, or offering or attempting to transfer, physical 3347
possession or control of an electronic nicotine delivery system or vapor 3348
product; 3349
(9) "Vapor product" means any product that employs a heating 3350
element, power source, electronic circuit or other electronic, chemical 3351
or mechanical means, regardless of shape or size, to produce a vapor 3352
that may or may not include nicotine, that is inhaled by the user of 3353
such product; and 3354
(10) "Electronic cigarette liquid" means a liquid that, when used in 3355
an electronic nicotine delivery system or vapor product, produces a 3356
Governor's Bill No. 877
LCO No. 4566 114 of 138
vapor that may or may not include nicotine and is inhaled by the user 3357
of such electronic nicotine delivery system or vapor product. 3358
(b) Any person who sells, gives or delivers to any person under 3359
[eighteen] twenty-one years of age an electronic nicotine delivery 3360
system or vapor product in any form shall be fined not more than two 3361
hundred dollars for the first offense, not more than three hundred fifty 3362
dollars for a second offense within a twenty-four-month period and 3363
not more than five hundred dollars for each subsequent offense within 3364
a twenty-four-month period. The provisions of this subsection shall 3365
not apply to a person under [eighteen] twenty-one years of age who is 3366
delivering or accepting delivery of an electronic nicotine delivery 3367
system or vapor product (1) in such person's capacity as an employee, 3368
or (2) as part of a scientific study being conducted by an organization 3369
for the purpose of medical research to further efforts in tobacco use 3370
prevention and cessation, provided such medical research has been 3371
approved by the organization's institutional review board, as defined 3372
in section 21a-408. 3373
(c) Any person under [eighteen] twenty-one years of age who 3374
purchases or misrepresents such person's age to purchase an electronic 3375
nicotine delivery system or vapor product in any form or possesses an 3376
electronic nicotine delivery system or vapor product in any form in 3377
any public place shall be fined not more than fifty dollars for the first 3378
offense and not less than fifty dollars or more than one hundred 3379
dollars for each subsequent offense. For purposes of this subsection 3380
"public place" means any area that is used or held out for use by the 3381
public whether owned or operated by public or private interests. 3382
(d) (1) A seller or seller's agent or employee may perform a 3383
transaction scan to check the validity of a driver's license or identity 3384
card presented by a cardholder as a condition for selling, giving or 3385
otherwise delivering an electronic nicotine delivery system or vapor 3386
product to the cardholder. 3387
Governor's Bill No. 877
LCO No. 4566 115 of 138
(2) If the information deciphered by the transaction scan performed 3388
under subdivision (1) of this subsection fails to match the information 3389
printed on the driver's license or identity card presented by the 3390
cardholder, or if the transaction scan indicates that the information so 3391
printed is false or fraudulent, neither the seller nor any seller's agent or 3392
employee shall sell, give or otherwise deliver any electronic nicotine 3393
delivery system or vapor product to the cardholder. 3394
(3) Subdivision (1) of this subsection does not preclude a seller or 3395
seller's agent or employee from using a transaction scan device to 3396
check the validity of a document other than a driver's license or an 3397
identity card, if the document includes a bar code or magnetic strip 3398
that may be scanned by the device, as a condition for selling, giving or 3399
otherwise delivering an electronic nicotine delivery system or vapor 3400
product to the person presenting the document. 3401
(e) (1) No seller or seller's agent or employee shall electronically or 3402
mechanically record or maintain any information derived from a 3403
transaction scan, except the following: (A) The name and date of birth 3404
of the person listed on the driver's license or identity card presented by 3405
a cardholder; and (B) the expiration date and identification number of 3406
the driver's license or identity card presented by a cardholder. 3407
(2) No seller or seller's agent or employee shall use a transaction 3408
scan device for a purpose other than the purposes specified in 3409
subsection (d) of this section, subsection (d) of section 53-344, as 3410
amended by this act, or subsection (c) of section 30-86. 3411
(3) No seller or seller's agent or employee shall sell or otherwise 3412
disseminate the information derived from a transaction scan to any 3413
third party, including, but not limited to, selling or otherwise 3414
disseminating that information for any marketing, advertising or 3415
promotional activities, but a seller or seller's agent or employee may 3416
release that information pursuant to a court order. 3417
(4) Nothing in subsection (d) of this section or this subsection 3418
Governor's Bill No. 877
LCO No. 4566 116 of 138
relieves a seller or seller's agent or employee of any responsibility to 3419
comply with any other applicable state or federal laws or rules 3420
governing selling, giving or otherwise delivering electronic nicotine 3421
delivery systems or vapor products. 3422
(5) Any person who violates this subsection shall be subject to a civil 3423
penalty of not more than one thousand dollars. 3424
(f) (1) In any prosecution of a seller or seller's agent or employee for 3425
a violation of subsection (b) of this section, it shall be an affirmative 3426
defense that all of the following occurred: (A) A cardholder attempting 3427
to purchase or receive an electronic nicotine delivery system or vapor 3428
product presented a driver's license or an identity card; (B) a 3429
transaction scan of the driver's license or identity card that the 3430
cardholder presented indicated that the license or card was valid; and 3431
(C) the electronic nicotine delivery system or vapor product was sold, 3432
given or otherwise delivered to the cardholder in reasonable reliance 3433
upon the identification presented and the completed transaction scan. 3434
(2) In determining whether a seller or seller's agent or employee has 3435
proven the affirmative defense provided by subdivision (1) of this 3436
section, the trier of fact in such prosecution shall consider that 3437
reasonable reliance upon the identification presented and the 3438
completed transaction scan may require a seller or seller's agent or 3439
employee to exercise reasonable diligence and that the use of a 3440
transaction scan device does not excuse a seller or seller's agent or 3441
employee from exercising such reasonable diligence to determine the 3442
following: (A) Whether a person to whom the seller or seller's agent or 3443
employee sells, gives or otherwise delivers an electronic nicotine 3444
delivery system or vapor product is [eighteen] twenty-one years of age 3445
or older; and (B) whether the description and picture appearing on the 3446
driver's license or identity card presented by a cardholder is that of the 3447
cardholder. 3448
(g) Each seller of electronic nicotine delivery systems or vapor 3449
Governor's Bill No. 877
LCO No. 4566 117 of 138
products or such seller's agent or employee shall require a person who 3450
is purchasing or attempting to purchase an electronic nicotine delivery 3451
system or vapor product, whose age is in question, to exhibit proper 3452
proof of age. If a person fails to provide such proof of age, such seller 3453
or seller's agent or employee shall not sell an electronic nicotine 3454
delivery system or vapor product to the person. As used in this 3455
subsection, "proper proof" means a motor vehicle operator's license, a 3456
valid passport or an identity card issued in accordance with the 3457
provisions of section 1-1h. 3458
Sec. 53. Section 21a-416 of the general statutes is repealed and the 3459
following is substituted in lieu thereof (Effective October 1, 2019): 3460
(a) For the purposes of this section: 3461
(1) "Electronic nicotine delivery system" has the same meaning as 3462
provided in section 19a-342. 3463
(2) "Liquid nicotine container" has the same meaning as provided in 3464
section 19a-342a. 3465
[(2)] (3) "Vapor product" has the same meaning as provided in 3466
section 19a-342. 3467
(4) "Electronic cigarette liquid" has the same meaning as provided in 3468
section 46 of this act. 3469
(5) "Electronic cigarette products" has the same meaning as 3470
provided in section 46 of this act. 3471
[(3)] (6) "Retail establishment" has the same meaning as provided in 3472
section 19a-106a. 3473
(b) [(1)] Except as provided in [subdivision (3) of this] subsection (c) 3474
of this section, no retail establishment may sell or offer for sale an 3475
electronic [nicotine delivery system or a vapor] cigarette product by 3476
any means other than an employee-assisted sale where the customer 3477
Governor's Bill No. 877
LCO No. 4566 118 of 138
has no direct access to the electronic [nicotine delivery system or 3478
vapor] cigarette product except through the assistance of the employee 3479
of such retail establishment. 3480
[(2) No retail establishment may sell or offer for sale an electronic 3481
nicotine delivery system or a vapor product from a self-service 3482
display.] 3483
[(3)] (c) The provisions of [subdivisions (1) and (2) of this] 3484
subsection (b) of this section shall not apply to a retail establishment if 3485
[minors] persons under twenty-one years of age are prohibited from 3486
entering the retail establishment and the prohibition on [minors] such 3487
persons entering the retail establishment is posted clearly on all 3488
entrances of the retail establishment. 3489
Sec. 54. Section 12-435 of the general statutes is repealed and the 3490
following is substituted in lieu thereof (Effective July 1, 2019): 3491
Each distributor of alcoholic beverages shall pay a tax to the state on 3492
all sales within the state of alcoholic beverages, except sales to licensed 3493
distributors, sales of alcoholic beverages [which] that, in the course of 3494
such sales, are actually transported to some point without the state and 3495
except [malt beverages which are] beer that is consumed on the 3496
premises covered by a manufacturer's permit, at the rates for the 3497
respective categories of alcoholic beverages listed below: 3498
[(a)] (1) Beer, except as provided in subdivision (2) of this section, 3499
seven dollars and twenty cents for each barrel, three dollars and sixty 3500
cents for each half barrel, one dollar and eighty cents for each quarter 3501
barrel and twenty-four cents per wine gallon or fraction thereof on 3502
quantities less than a quarter barrel; 3503
(2) Beer sold on the premises covered by a manufacturer's permit for 3504
off-premises consumption, three dollars and sixty cents for each barrel, 3505
one dollar and eighty cents for each half barrel, ninety cents for each 3506
quarter barrel and twelve cents per wine gallon or fraction thereof on 3507
Governor's Bill No. 877
LCO No. 4566 119 of 138
quantities less than a quarter barrel; 3508
[(b)] (3) Liquor, five dollars and forty cents per wine gallon; 3509
[(c)] (4) Still wines containing not more than twenty-one per cent of 3510
absolute alcohol, except as provided in [subsections (g) and (h)] 3511
subdivisions (8) and (9) of this section, seventy-two cents per wine 3512
gallon; 3513
[(d)] (5) Still wines containing more than twenty-one per cent of 3514
absolute alcohol and sparkling wines, one dollar and eighty cents per 3515
wine gallon; 3516
[(e)] (6) Alcohol in excess of 100 proof, five dollars and forty cents 3517
per proof gallon; 3518
[(f)] (7) Liquor coolers containing not more than seven per cent of 3519
alcohol by volume, two dollars and forty-six cents per wine gallon; 3520
[(g)] (8) Still wine containing not more than twenty-one per cent of 3521
absolute alcohol, produced by a person who produces not more than 3522
fifty-five thousand wine gallons of wine during the calendar year, 3523
eighteen cents per wine gallon, provided such person presents to each 3524
distributor of alcoholic beverages described in this section a certificate, 3525
issued by the commissioner, stating that such person produces not 3526
more than fifty-five thousand wine gallons of wine during the calendar 3527
year. The commissioner is authorized to issue such certificates, 3528
prescribe the procedures for obtaining such certificates and prescribe 3529
their form; and 3530
[(h)] (9) Cider containing not more than seven per cent of absolute 3531
alcohol shall be subject to the same rate as applies to beer, as provided 3532
in [subsection (a)] subdivision (1) of this section. 3533
Sec. 55. Section 22a-243 of the general statutes is repealed and the 3534
following is substituted in lieu thereof (Effective October 1, 2019): 3535
Governor's Bill No. 877
LCO No. 4566 120 of 138
For purposes of sections 22a-243 to 22a-245c, inclusive: 3536
(1) "Carbonated beverage" means beer or other malt beverages, and 3537
mineral waters, soda water and similar carbonated soft drinks in liquid 3538
form and intended for human consumption; 3539
(2) "Noncarbonated beverage" means water, including flavored 3540
water, nutritionally enhanced water and any beverage that is identified 3541
through the use of letters, words or symbols on such beverage's 3542
product label as a type of water, but excluding juice and mineral water; 3543
(3) "Alcoholic beverage" means any wine or liquor, as those terms 3544
are defined in section 12-433; 3545
[(3)] (4) "Beverage container" means [the] a miniature or any other 3546
individual, separate, sealed glass, metal or plastic bottle, can, jar or 3547
carton containing a carbonated [or] beverage, a noncarbonated 3548
beverage or an alcoholic beverage, but does not include a bottle, can, 3549
jar or carton (A) three liters or more in size if containing a 3550
noncarbonated beverage, or (B) made of high-density polyethylene; 3551
(5) "Miniature" means any sealable bottle, can, jar or carton, that (A) 3552
is primarily composed of glass, metal, plastic or any combination of 3553
such materials, (B) is fifty milliliters or less in size, and (C) contains an 3554
alcoholic beverage; 3555
[(4)] (6) "Consumer" means every person who purchases a beverage 3556
in a beverage container for use or consumption; 3557
[(5)] (7) "Dealer" means every person who engages in the sale of 3558
beverages in beverage containers to a consumer; 3559
[(6)] (8) "Distributor" means every person who engages in the sale of 3560
beverages in beverage containers to a dealer in this state including any 3561
manufacturer who engages in such sale and includes a dealer who 3562
engages in the sale of beverages in beverage containers on which no 3563
deposit has been collected prior to retail sale; 3564
Governor's Bill No. 877
LCO No. 4566 121 of 138
[(7)] (9) "Manufacturer" means every person bottling, canning or 3565
otherwise filling beverage containers for sale to distributors or dealers 3566
or, in the case of private label brands, the owner of the private label 3567
trademark; 3568
[(8)] (10) "Place of business of a dealer" means the fixed location at 3569
which a dealer sells or offers for sale beverages in beverage containers 3570
to consumers; 3571
[(9)] (11) "Redemption center" means any facility established to 3572
redeem empty beverage containers from consumers or to collect and 3573
sort empty beverage containers from dealers and to prepare such 3574
containers for redemption by the appropriate distributors; 3575
[(10)] (12) "Use or consumption" includes the exercise of any right or 3576
power over a beverage incident to the ownership thereof, other than 3577
the sale or the keeping or retention of a beverage for the purposes of 3578
sale; 3579
[(11)] (13) "Nonrefillable beverage container" means a beverage 3580
container [which] that is not designed to be refilled and reused in its 3581
original shape; and 3582
[(12)] (14) "Deposit initiator" means the first distributor to collect the 3583
deposit on a beverage container sold to any person within this state. 3584
Sec. 56. Section 22a-244 of the general statutes is repealed and the 3585
following is substituted in lieu thereof (Effective October 1, 2019): 3586
(a) (1) Every beverage container containing a carbonated beverage 3587
sold or offered for sale in this state, except for any such beverage 3588
containers sold or offered for sale for consumption on an interstate 3589
passenger carrier, shall have a refund value. Such refund value shall 3590
not be less than five cents and shall be a uniform amount throughout 3591
the distribution process in this state. 3592
(2) Every beverage container containing a noncarbonated beverage 3593
Governor's Bill No. 877
LCO No. 4566 122 of 138
sold or offered for sale in this state shall have a refund value, except 3594
for beverage containers containing a noncarbonated beverage that are 3595
(A) sold or offered for sale for consumption on an interstate passenger 3596
carrier, or (B) that comprise any dealer's existing inventory as of March 3597
31, 2009. Such refund value shall not be less than five cents and shall 3598
be a uniform amount throughout the distribution process in this state. 3599
(3) Every miniature that is sold or offered for sale in this state shall 3600
have a refund value, except for miniatures that are (A) sold or offered 3601
for sale for consumption on an interstate passenger carrier, or (B) that 3602
comprise any dealer's existing inventory as of September 30, 2019. 3603
Such refund value shall not be less than five cents and shall be a 3604
uniform amount throughout the distribution process in this state. 3605
(4) Every beverage container of greater than fifty milliliters but less 3606
than two liters that contains an alcoholic beverage that is sold or 3607
offered for sale in this state shall have a refund value, except for such 3608
beverage containers that are (A) sold or offered for sale for 3609
consumption on an interstate passenger carrier, or (B) that comprise 3610
any dealer's existing inventory as of September 30, 2019. Such refund 3611
value shall not be less than twenty-five cents and shall be a uniform 3612
amount throughout the distribution process in this state. 3613
(b) Every beverage container sold or offered for sale in this state, 3614
that has a refund value pursuant to subsection (a) of this section, shall 3615
clearly indicate by embossing or by a stamp or by a label or other 3616
method securely affixed to the beverage container (1) either the refund 3617
value of the container or the words "return for deposit" or "return for 3618
refund" or other words as approved by the Department of Energy and 3619
Environmental Protection, and (2) either the word "Connecticut" or the 3620
abbreviation "Ct.", provided this subdivision shall not apply to glass 3621
beverage containers permanently marked or embossed with a brand 3622
name. 3623
(c) No person shall sell or offer for sale in this state any metal 3624
Governor's Bill No. 877
LCO No. 4566 123 of 138
beverage container (1) a part of which is designed to be detached in 3625
order to open such container, or (2) that is connected to another 3626
beverage container by a device constructed of a material which does 3627
not decompose by photodegradation, chemical degradation or 3628
biodegradation within a reasonable time after exposure to the 3629
elements. 3630
Sec. 57. Subsection (a) of section 12-541 of the general statutes is 3631
repealed and the following is substituted in lieu thereof (Effective 3632
October 1, 2019): 3633
(a) There is hereby imposed a tax of ten per cent of the admission 3634
charge to any place of amusement, entertainment or recreation, except 3635
that no tax shall be imposed with respect to any admission charge (1) 3636
when the admission charge is less than one dollar or, in the case of any 3637
motion picture show, when the admission charge is not more than five 3638
dollars, (2) when a daily admission charge is imposed which entitles 3639
the patron to participate in an athletic or sporting activity, (3) to any 3640
event, other than events held at the stadium facility, as defined in 3641
section 32-651, if all of the proceeds from the event inure exclusively to 3642
an entity [which] that is exempt from federal income tax under the 3643
Internal Revenue Code, provided such entity actively engages in and 3644
assumes the financial risk associated with the presentation of such 3645
event, (4) to any event, other than events held at the stadium facility, as 3646
defined in section 32-651, [which] that, in the opinion of the 3647
commissioner, is conducted primarily to raise funds for an entity 3648
[which] that is exempt from federal income tax under the Internal 3649
Revenue Code, provided the commissioner is satisfied that the net 3650
profit [which] that inures to such entity from such event will exceed 3651
the amount of the admissions tax [which] that, but for this subdivision, 3652
would be imposed upon the person making such charge to such event, 3653
(5) other than for events held at the stadium facility, as defined in 3654
section 32-651, paid by centers of service for elderly persons, as 3655
described in section 17a-310, (6) to any production featuring live 3656
performances by actors or musicians presented at Gateway's 3657
Governor's Bill No. 877
LCO No. 4566 124 of 138
Candlewood Playhouse, Ocean Beach Park or any nonprofit theater or 3658
playhouse in the state, provided such theater or playhouse possesses 3659
evidence confirming exemption from federal tax under Section 501 of 3660
the Internal Revenue Code, (7) to any carnival or amusement ride, (8) 3661
to any interscholastic athletic event held at the stadium facility, as 3662
defined in section 32-651, or (9) if the admission charge would have 3663
been subject to tax under the provisions of section 12-542 of the general 3664
statutes, revision of 1958, revised to January 1, 1999. On and after [July 3665
1, 2000] October 1, 2019, the tax imposed under this section on any 3666
motion picture show shall be [eight] six and thirty-five-hundredths per 3667
cent of the admission charge. [and, on and after July 1, 2001, the tax 3668
imposed on any such motion picture show shall be six per cent of such 3669
charge.] 3670
Sec. 58. (NEW) (Effective from passage) (a) As used in this section: 3671
(1) (A) "Caloric sweetener" means sugar or any form of sugar-based 3672
substance, including, but not limited to, sucrose, fructose, glucose, 3673
high-fructose corn syrup, honey or maple syrup, that adds calories to a 3674
beverage; 3675
(B) "Caloric sweetener" does not include a sugar substitute, an 3676
artificial sweetener approved by the federal Food and Drug 3677
Administration or a nonnutritive sweetener, including, but not limited 3678
to, aspartame, saccharin, stevia or sucralose, that does not add calories 3679
to a beverage; 3680
(2) "Milk" means a fluid dairy or nondairy beverage from an animal 3681
or a plant source and includes natural milk concentrate, whether or not 3682
reconstituted, and milk powder or evaporated milk, whether or not 3683
reconstituted; 3684
(3) "Nonalcoholic beverage" means any beverage that contains less 3685
than one-half of one per cent of alcohol by volume; 3686
(4) "Person" has the same meaning as provided in section 12-1 of the 3687
Governor's Bill No. 877
LCO No. 4566 125 of 138
general statutes; 3688
(5) "Retailer" has the same meaning as described in section 12-407 of 3689
the general statutes, as amended by this act; and 3690
(6) (A) "Sweetened beverage" means any carbonated or 3691
noncarbonated nonalcoholic beverage that (i) is intended for human 3692
consumption, (ii) is ready for consumption without further processing 3693
such as dilution or carbonation, and (iii) contains added caloric 3694
sweetener; 3695
(B) "Sweetened beverage" does not include (i) milk or any beverage 3696
in which milk is the primary ingredient or is the first listed ingredient, 3697
regardless of sugar content, (ii) dairy or nondairy creamer, regardless 3698
of sugar content, (iii) any beverage that is one hundred per cent juice, 3699
(iv) infant formula, (v) medical food, as defined in 21 USC 360ee, as 3700
amended from time to time, (vi) any product in liquid form that is (I) 3701
designed as oral nutrition therapy for individuals who may have a 3702
limited ability to absorb or metabolize dietary nutrients from 3703
traditional food or beverages, or (II) an oral rehydration electrolyte 3704
solution to prevent or treat dehydration, (vii) any product sold in 3705
liquid form that is designed as supplemental, meal replacement or 3706
sole-source nutrition and includes proteins, carbohydrates and 3707
multiple vitamins and minerals, (viii) any product sold in liquid form 3708
that is designed for use for weight reduction, or (ix) any freshly 3709
prepared coffee or tea beverage that is sold by a retailer for immediate 3710
consumption. 3711
(b) On and after July 1, 2020, there is imposed a tax on the sale of 3712
any sweetened beverage sold by a retailer to a consumer within the 3713
state at the rate of one and one-half cent per ounce of such beverage. 3714
Such tax shall be in addition to any other tax applicable to such sale 3715
and shall be included, for purposes of chapter 219 of the general 3716
statutes, in the calculation of gross receipts. Each retailer shall collect 3717
from the consumer the full amount of the tax imposed by this 3718
Governor's Bill No. 877
LCO No. 4566 126 of 138
subsection. 3719
(c) (1) Each retailer shall (A) file a return electronically with the 3720
Commissioner of Revenue Services, on or before the last day of each 3721
month, setting forth the amount of tax due for the preceding month 3722
and such additional information as the commissioner may require, and 3723
(B) make payment of the tax required under subsection (b) of this 3724
section by electronic funds transfer in the manner provided by chapter 3725
228g of the general statutes. 3726
(2) The commissioner may permit or require a retailer to file returns 3727
or remit the tax on other than a monthly basis if the commissioner 3728
deems it necessary to ensure payment or facilitate collection of the tax. 3729
(d) The tax due under this section shall be subject to the penalties 3730
and interest established under section 12-547 of the general statutes 3731
and the amount of such tax, penalty or interest, due and unpaid, may 3732
be collected under the provisions of section 12-35 of the general 3733
statutes. 3734
(e) Subject to the provisions of section 12-3a of the general statutes, 3735
the commissioner may waive all or part of the penalties provided 3736
under this section when it is proven to the commissioner's satisfaction 3737
that the failure to remit the tax was due to reasonable cause and was 3738
not intentional or due to neglect. 3739
(f) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 3740
12-555a of the general statutes shall apply to the provisions of this 3741
section in the same manner and with the same force and effect as if the 3742
language of said sections had been incorporated in full into this section 3743
and had expressly referred to the fee imposed under this section, 3744
except to the extent that any such provision is inconsistent with a 3745
provision of this section. 3746
(g) The commissioner may adopt regulations in accordance with the 3747
provisions of chapter 54 of the general statutes, and make rulings, not 3748
Governor's Bill No. 877
LCO No. 4566 127 of 138
inconsistent with law, to carry into effect the provisions of this section, 3749
which regulations or rulings, when reasonably designed to carry out 3750
the intent and purpose of this section, shall be prima facie evidence of 3751
its proper interpretation. 3752
(h) At the close of each fiscal year commencing with the fiscal year 3753
ending June 30, 2021, the Comptroller is authorized to record as 3754
revenue for such fiscal year the amount of the tax imposed under the 3755
provisions of this section that is received by the commissioner not later 3756
than five business days from the last day of July immediately 3757
following the end of such fiscal year. 3758
Sec. 59. (Effective from passage) The Secretary of the Office of Policy 3759
and Management, in consultation with the Commissioners of Public 3760
Health and Revenue Services, shall conduct a study to define "junk 3761
food" and examine the administrative feasibility of imposing a tax on 3762
such junk food. Not later than January 1, 2020, the secretary shall 3763
submit a report, in accordance with the provisions of section 11-4a of 3764
the general statutes, of the results of such study to the joint standing 3765
committees of the General Assembly having cognizance of matters 3766
relating to public health and finance and revenue. 3767
Sec. 60. (NEW) (Effective October 1, 2019) (a) As used in this section: 3768
(1) "Single-use checkout bag" means a plastic bag with a thickness of 3769
less than four mils that is provided by a store to a customer at the point 3770
of sale. "Single-use checkout bag" does not include: (A) A compostable 3771
plastic bag; (B) a bag provided to contain meat, seafood, loose produce 3772
or other unwrapped food items; (C) a newspaper bag; or (D) a laundry 3773
or dry cleaning bag; 3774
(2) "Compostable plastic bag" means a plastic bag that (A) conforms 3775
to the American Society of Testing Materials (ASTM) standard D6400; 3776
(B) is certified and labeled as meeting the ASTM standard D6400 3777
standard specification by a recognized verification entity; and (C) is 3778
capable of undergoing biological decomposition in a compost site such 3779
Governor's Bill No. 877
LCO No. 4566 128 of 138
that the material breaks down into carbon dioxide, water, inorganic 3780
compounds and biomass at a rate consistent with known compostable 3781
materials; and 3782
(3) "Store" means any retailer, as defined in section 12-407 of the 3783
general statutes, as amended by this act, that maintains a retail store 3784
within the state and sells tangible personal property directly to the 3785
public. 3786
(b) Each store shall charge a fee of ten cents for each single-use 3787
checkout bag provided to a customer at the point of sale. The store 3788
shall indicate the number of single-use checkout bags provided and 3789
the total amount of the fee charged on any transaction receipt provided 3790
to a customer. Any fees collected pursuant to this subsection shall be 3791
excluded from gross receipts under chapter 219 of the general statutes. 3792
(c) Each store shall report all fees collected pursuant to subsection 3793
(b) of this section to the Commissioner of Revenue Services with its 3794
return due under section 12-414 of the general statutes and remit 3795
payment at the same time and in the same form and manner required 3796
under 12-414 of the general statutes. 3797
(d) Any fees due and unpaid under this section shall be subject to 3798
the penalties and interest established under section 12-419 of the 3799
general statutes and the amount of such fee, penalty or interest, due 3800
and unpaid, may be collected under the provisions of section 12-35 of 3801
the general statutes as if they were taxes due to the state. 3802
(e) The provisions of sections 12-415, 12-416 and 12-421 to 12-428, 3803
inclusive, of the general statutes shall apply to the provisions of this 3804
section in the same manner and with the same force and effect as if the 3805
language of said sections had been incorporated in full into this section 3806
and had expressly referred to the fee imposed under this section, 3807
except to the extent that any such provision is inconsistent with a 3808
provision of this section. 3809
Governor's Bill No. 877
LCO No. 4566 129 of 138
(f) The Commissioner of Revenue Services, in consultation with the 3810
Commissioner of Energy and Environmental Protection, may adopt 3811
regulations in accordance with the provisions of chapter 54 of the 3812
general statutes, to carry out the provisions of this section. 3813
(g) At the close of each fiscal year commencing with the fiscal year 3814
ending June 30, 2020, the Comptroller is authorized to record as 3815
revenue for such fiscal year the amount of the fee imposed under the 3816
provisions of this section that is received by the Commissioner of 3817
Revenue Services not later than five business days from the last day of 3818
July immediately following the end of such fiscal year. 3819
Sec. 61. Subsection (a) of section 34-38n of the general statutes is 3820
repealed and the following is substituted in lieu thereof (Effective July 3821
1, 2019): 3822
(a) The Secretary of the State shall receive, for filing any document 3823
or certificate required to be filed under sections 34-10, 34-13a, 34-13e, 3824
34-32, 34-32a, 34-32c, 34-38g and 34-38s, the following fees: (1) For 3825
reservation or cancellation of reservation of name, sixty dollars; (2) for 3826
a certificate of limited partnership and appointment of statutory agent, 3827
one hundred twenty dollars; (3) for a certificate of amendment, one 3828
hundred twenty dollars; (4) for a certificate of merger or consolidation, 3829
sixty dollars; (5) for a certificate of registration, one hundred twenty 3830
dollars; (6) for a change of agent or change of address of agent, twenty 3831
dollars; (7) for a certificate of reinstatement, one hundred twenty 3832
dollars; and (8) for an annual report, [twenty] one hundred dollars. 3833
Sec. 62. Subsection (a) of section 34-243u of the general statutes is 3834
repealed and the following is substituted in lieu thereof (Effective July 3835
1, 2019): 3836
(a) Fees for filing documents and issuing certificates: (1) Filing an 3837
application to reserve a limited liability company name or to cancel a 3838
reserved limited liability company name, sixty dollars; (2) filing a 3839
transfer of reserved limited liability company name, sixty dollars; (3) 3840
Governor's Bill No. 877
LCO No. 4566 130 of 138
filing a certificate of organization, including appointment of registered 3841
agent, one hundred twenty dollars; (4) filing a change of address of 3842
agent certificate or change of agent certificate, fifty dollars; (5) filing a 3843
notice of resignation of registered agent, fifty dollars; (6) filing an 3844
amendment to certificate of organization, one hundred twenty dollars; 3845
(7) filing a restated certificate of organization, one hundred twenty 3846
dollars; (8) filing a certificate of merger, sixty dollars; (9) filing a 3847
certificate of interest exchange, sixty dollars; (10) filing a certificate of 3848
abandonment, fifty dollars; (11) filing a certificate of reinstatement, one 3849
hundred twenty dollars; (12) filing a foreign registration certificate by a 3850
foreign limited liability company to transact business in this state, one 3851
hundred twenty dollars; (13) filing an application of foreign limited 3852
liability company for amended foreign registration certificate, one 3853
hundred twenty dollars; (14) filing a certificate of withdrawal of 3854
registration under section 34-275h, one hundred twenty dollars; (15) 3855
filing an annual report, [twenty] one hundred dollars; (16) filing an 3856
interim notice of change of manager or member, twenty dollars; (17) 3857
filing a registration of name or a renewal of registration of name, sixty 3858
dollars; (18) filing a statement of correction, one hundred dollars; and 3859
(19) filing a transfer of registration, sixty dollars plus the qualification 3860
fee. 3861
Sec. 63. Subsection (a) of section 34-413 of the general statutes is 3862
repealed and the following is substituted in lieu thereof (Effective July 3863
1, 2019): 3864
(a) Fees for filing documents and processing certificates: (1) Filing 3865
application to reserve a registered limited liability partnership name or 3866
to cancel a reserved limited liability partnership name, sixty dollars; (2) 3867
filing transfer of reserved registered limited liability partnership name, 3868
sixty dollars; (3) filing change of address of statutory agent or change 3869
of statutory agent, fifty dollars; (4) filing certificate of limited liability 3870
partnership, one hundred twenty dollars; (5) filing amendment to 3871
certificate of limited liability partnership, one hundred twenty dollars; 3872
(6) filing certificate of authority to transact business in this state, 3873
Governor's Bill No. 877
LCO No. 4566 131 of 138
including appointment of statutory agent, one hundred twenty dollars; 3874
(7) filing amendment to certificate of authority to transact business in 3875
this state, one hundred twenty dollars; (8) filing an annual report, 3876
[twenty] one hundred dollars; (9) filing statement of merger, sixty 3877
dollars; and (10) filing certificate of reinstatement, one hundred twenty 3878
dollars. 3879
Sec. 64. Subsection (a) of section 19a-7p of the general statutes is 3880
repealed and the following is substituted in lieu thereof (Effective July 3881
1, 2019): 3882
(a) Not later than September first, annually, the Secretary of the 3883
Office of Policy and Management, in consultation with the 3884
Commissioner of Public Health, shall (1) determine the amounts 3885
appropriated for the syringe services program, children's health 3886
initiatives, AIDS services, breast and cervical cancer detection and 3887
treatment, x-ray screening and tuberculosis care, and sexually 3888
transmitted disease control; and (2) inform the Insurance 3889
Commissioner of such amounts. 3890
Sec. 65. (Effective July 1, 2019) Not later than June 30, 2020, the 3891
Comptroller may transfer up to $20,000,000 of the resources of the 3892
Special Transportation Fund for the fiscal year ending June 30, 2020, to 3893
be accounted for as revenue of the Special Transportation Fund for the 3894
fiscal year ending June 30, 2021. 3895
Sec. 66. Subdivision (1) of subsection (a) of section 12-217 of the 3896
general statutes is repealed and the following is substituted in lieu 3897
thereof (Effective from passage): 3898
(a) (1) In arriving at net income as defined in section 12-213, whether 3899
or not the taxpayer is taxable under the federal corporation net income 3900
tax, there shall be deducted from gross income, (A) all items deductible 3901
under the Internal Revenue Code effective and in force on the last day 3902
of the income year except (i) any taxes imposed under the provisions 3903
of this chapter which are paid or accrued in the income year and in the 3904
Governor's Bill No. 877
LCO No. 4566 132 of 138
income year commencing January 1, 1989, and thereafter, any taxes in 3905
any state of the United States or any political subdivision of such state, 3906
or the District of Columbia, imposed on or measured by the income or 3907
profits of a corporation which are paid or accrued in the income year, 3908
(ii) deductions for depreciation, which shall be allowed as provided in 3909
subsection (b) of this section, (iii) deductions for qualified domestic 3910
production activities income, as provided in Section 199 of the Internal 3911
Revenue Code, and (iv) in the case of any captive real estate 3912
investment trust, the deduction for dividends paid provided under 3913
Section 857(b)(2) of the Internal Revenue Code, and (B) additionally, in 3914
the case of a regulated investment company, the sum of (i) the exempt-3915
interest dividends, as defined in the Internal Revenue Code, and (ii) 3916
expenses, bond premium, and interest related to tax-exempt income 3917
that are disallowed as deductions under the Internal Revenue Code, 3918
and (C) in the case of a taxpayer maintaining an international banking 3919
facility as defined in the laws of the United States or the regulations of 3920
the Board of Governors of the Federal Reserve System, as either may 3921
be amended from time to time, the gross income attributable to the 3922
international banking facility, provided, no expense or loss attributable 3923
to the international banking facility shall be a deduction under any 3924
provision of this section, and (D) additionally, in the case of all 3925
taxpayers, all dividends as defined in the Internal Revenue Code 3926
effective and in force on the last day of the income year not otherwise 3927
deducted from gross income, including dividends received from a 3928
DISC or former DISC as defined in Section 992 of the Internal Revenue 3929
Code and dividends deemed to have been distributed by a DISC or 3930
former DISC as provided in Section 995 of said Internal Revenue Code, 3931
other than thirty per cent of dividends received from a domestic 3932
corporation in which the taxpayer owns less than twenty per cent of 3933
the total voting power and value of the stock of such corporation, and 3934
(E) additionally, in the case of all taxpayers, the value of any capital 3935
gain realized from the sale of any land, or interest in land, to the state, 3936
any political subdivision of the state, or to any nonprofit land 3937
conservation organization where such land is to be permanently 3938
Governor's Bill No. 877
LCO No. 4566 133 of 138
preserved as protected open space or to a water company, as defined 3939
in section 25-32a, where such land is to be permanently preserved as 3940
protected open space or as Class I or Class II water company land, and 3941
(F) in the case of manufacturers, the amount of any contribution to a 3942
manufacturing reinvestment account established pursuant to section 3943
32-9zz in the income year that such contribution is made to the extent 3944
not deductible for federal income tax purposes, [(G) additionally, to 3945
the extent allowable under subsection (g) of section 32-776, the amount 3946
paid by a 7/7 participant, as defined in section 32-776, for the 3947
remediation of a brownfield,] and [(H)] (G) the amount of any 3948
contribution made on or after December 23, 2017, by the state of 3949
Connecticut or a political subdivision thereof to the extent included in 3950
a company's gross income under Section 118(b)(2) of the Internal 3951
Revenue Code. 3952
Sec. 67. Sections 12-704f and 32-776 of the general statutes are 3953
repealed. (Effective from passage and applicable to taxable years commencing 3954
on or after January 1, 2019) 3955
Sec. 68. Section 12-407e of the general statutes is repealed. (Effective 3956
July 1, 2019) 3957
Sec. 69. Subdivisions (91), (96), (102), (105), (108), (109), (114) and 3958
(121) of section 12-412 of the general statutes are repealed. (Effective 3959
January 1, 2020) 3960
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage and
applicable to taxable years
commencing on or after
January 1, 2023
New section
Sec. 2 from passage 12-704c
Governor's Bill No. 877
LCO No. 4566 134 of 138
Sec. 3 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
12-701(a)(20)(B)
Sec. 4 from passage 12-701
Sec. 5 from passage and
applicable to income years
commencing on or after
January 1, 2019
12-214(b)(8)
Sec. 6 from passage 12-214
Sec. 7 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
12-284b(b)
Sec. 8 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
12-217jj(e)(2)
Sec. 9 from passage and
applicable to gifts made on
or after January 1, 2019
12-640
Sec. 10 from passage 12-642
Sec. 11 from passage and
applicable to estates of
decedents dying on or after
January 1, 2019
12-643(3)
Sec. 12 from passage and
applicable to estates of
decedents dying on or after
January 1, 2019
12-391(a) to (e)
Sec. 13 from passage and
applicable to estates of
decedents dying on or after
January 1, 2019
12-392(a) and (b)
Sec. 14 July 1, 2019, and
applicable to sales
occurring on or after July
1, 2019
12-408(1)
Governor's Bill No. 877
LCO No. 4566 135 of 138
Sec. 15 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-408(1)
Sec. 16 July 1, 2019, and
applicable to sales
occurring on or after July
1, 2019
12-411(1)
Sec. 17 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-411(1)
Sec. 18 October 1, 2019, and
applicable to sales
occurring on or after
October 1, 2019
12-407(a)(2)(M)
Sec. 19 October 1, 2019, and
applicable to sales
occurring on or after
October 1, 2019
12-407(a)(13)
Sec. 20 October 1, 2019, and
applicable to sales
occurring on or after
October 1, 2019
12-407(a)
Sec. 21 October 1, 2019, and
applicable to sales
occurring on or after
October 1, 2019
12-407(a)(37)(A)
Sec. 22 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(37)
Sec. 23 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(2)(H)
Sec. 24 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(3)(A)
Governor's Bill No. 877
LCO No. 4566 136 of 138
Sec. 25 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(7)
Sec. 26 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(8)(A)
Sec. 27 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(9)(A)
Sec. 28 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(15)(A)
Sec. 29 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-407(a)(18) and (19)
Sec. 30 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-412(120)
Sec. 31 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-412(123)
Sec. 32 January 1, 2020, and
applicable to sales
occurring on or after
January 1, 2020
12-412
Sec. 33 July 1, 2019, and
applicable to sales
occurring on or after July
1, 2019
12-430(4)
Sec. 34 July 1, 2019 4-66o
Sec. 35 from passage 12-263p
Sec. 36 from passage 12-263q
Sec. 37 from passage 12-263r(a)
Sec. 38 from passage 12-263i
Governor's Bill No. 877
LCO No. 4566 137 of 138
Sec. 39 July 1, 2019, and
applicable to conveyances
occurring on or after July
1, 2019
12-494(b)
Sec. 40 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
12-217n(d)
Sec. 41 from passage and
applicable to income years
commencing on or after
January 1, 2019
12-217zz(a)
Sec. 42 from passage and
applicable to quarterly
periods commencing on or
after July 1, 2019
New section
Sec. 43 from passage and
applicable to quarterly
periods commencing on or
after July 1, 2019
New section
Sec. 44 from passage and
applicable to quarterly
periods commencing on or
after July 1, 2019
New section
Sec. 45 July 1, 2019 12-264(a)
Sec. 46 October 1, 2019, and
applicable to sales
occurring on or after
October 1, 2019
New section
Sec. 47 October 1, 2019 12-286a(a)
Sec. 48 October 1, 2019 12-295(a)
Sec. 49 October 1, 2019 12-295a(a)
Sec. 50 October 1, 2019 12-314a
Sec. 51 October 1, 2019 53-344
Sec. 52 October 1, 2019 53-344b
Sec. 53 October 1, 2019 21a-416
Sec. 54 July 1, 2019 12-435
Sec. 55 October 1, 2019 22a-243
Sec. 56 October 1, 2019 22a-244
Sec. 57 October 1, 2019 12-541(a)
Sec. 58 from passage New section
Governor's Bill No. 877
LCO No. 4566 138 of 138
Sec. 59 from passage New section
Sec. 60 October 1, 2019 New section
Sec. 61 July 1, 2019 34-38n(a)
Sec. 62 July 1, 2019 34-243u(a)
Sec. 63 July 1, 2019 34-413(a)
Sec. 64 July 1, 2019 19a-7p(a)
Sec. 65 July 1, 2019 New section
Sec. 66 from passage 12-217(a)(1)
Sec. 67 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
Repealer section
Sec. 68 July 1, 2019 Repealer section
Sec. 69 January 1, 2020 Repealer section
Statement of Purpose:
To implement the Governor's budget recommendations.
[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.]