Connecticut 2019 Regular Session

Connecticut Senate Bill SB00877 Compare Versions

Version 1 (Old)

Version 2 (New)

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7		-	General Assembly Substitute Bill No. 877
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	4	+
	5	+	General Assembly Governor's Bill No. 877
8	6		January Session, 2019
	7	+	LCO No. 4566
	8	+
	9	+
	10	+	Referred to Committee on FINANCE, REVENUE AND
	11	+	BONDING
	12	+
	13	+
	14	+	Introduced by:
	15	+	SEN. LOONEY, 11
	16	+	th
	17	+	Dist.
	18	+	SEN. DUFF, 25
	19	+	th
	20	+	Dist.
	21	+	REP. ARESIMOWICZ, 30
	22	+	th
	23	+	Dist.
	24	+	REP. RITTER M., 1
	25	+	st
	26	+	Dist.
	27	+
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14	33		AN ACT CONCERNING RE VENUE ITEMS TO IMPLEMENT THE
15		-	~~BIENNIAL~~ BUDGET.
	34	+	GOVERNOR'S BUDGET.
16	35		Be it enacted by the Senate and House of Representatives in General
17	36		Assembly convened:
18	37
19		-	Section 1. (Effective from passage) (a) The Department of Revenue 1
20		-	Services shall analyze the impact on taxpayers of implementing a 2
21		-	payroll tax of five per cent on wages and reducing the personal income 3
22		-	tax rates under section 12-700 of the general statutes on wage income 4
23		-	by four percentage points for individuals in the top three income tax 5
24		-	brackets and five percentage points for individuals in all other income 6
25		-	tax brackets. Such analysis shall determine (1) the net federal and state 7
26		-	income tax liability for wage income for each income tax bracket for all 8
27		-	taxpayers, and (2) the refundable income tax credits that would be 9
28		-	necessary for taxpayers in certain income tax brackets to ensure that no 10
29		-	income tax bracket realizes an overall increase in income tax liability. 11
30		-	Such analysis shall include tables showing the adjusted net federal and 12
31		-	state income tax liability for each tax bracket for all taxpayers and 13
32		-	information about the rates, bases and credits required to implement 14
33		-	such reduction. 15
34		-	(b) Not later than January 1, 2020, the Commissioner of Revenue 16
35		-	Services shall submit such analysis, in accordance with the provisions 17
36		-	of section 11-4a of the general statutes, to the joint standing committee 18
37		-	of the General Assembly having cognizance of matters relating to 19 Substitute Bill No. 877
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43		-
44		-	finance, revenue and bonding. 20
45		-	Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 21
46		-	section 12-701 of the general statutes is repealed and the following is 22
47		-	substituted in lieu thereof (Effective from passage and applicable to taxable 23
48		-	years commencing on or after January 1, 2019): 24
49		-	(B) There shall be subtracted therefrom: 25
50		-	(i) To the extent properly includable in gross income for federal 26
51		-	income tax purposes, any income with respect to which taxation by 27
52		-	any state is prohibited by federal law; 28
53		-	(ii) To the extent allowable under section 12-718, exempt dividends 29
54		-	paid by a regulated investment company; 30
55		-	(iii) To the extent properly includable in gross income for federal 31
56		-	income tax purposes, the amount of any refund or credit for 32
57		-	overpayment of income taxes imposed by this state, or any other state 33
58		-	of the United States or a political subdivision thereof, or the District of 34
59		-	Columbia; 35
60		-	(iv) To the extent properly includable in gross income for federal 36
61		-	income tax purposes and not otherwise subtracted from federal 37
62		-	adjusted gross income pursuant to clause (x) of this subparagraph in 38
63		-	computing Connecticut adjusted gross income, any tier 1 railroad 39
64		-	retirement benefits; 40
65		-	(v) To the extent any additional allowance for depreciation under 41
66		-	Section 168(k) of the Internal Revenue Code for property placed in 42
67		-	service after September 27, 2017, was added to federal adjusted gross 43
68		-	income pursuant to subparagraph (A)(ix) of this subdivision in 44
69		-	computing Connecticut adjusted gross income, twenty-five per cent of 45
70		-	such additional allowance for depreciation in each of the four 46
71		-	succeeding taxable years; 47
72		-	(vi) To the extent properly includable in gross income for federal 48 Substitute Bill No. 877
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78		-
79		-	income tax purposes, any interest income from obligations issued by or 49
80		-	on behalf of the state of Connecticut, any political subdivision thereof, 50
81		-	or public instrumentality, state or local authority, district or similar 51
82		-	public entity created under the laws of the state of Connecticut; 52
83		-	(vii) To the extent properly includable in determining the net gain 53
84		-	or loss from the sale or other disposition of capital assets for federal 54
85		-	income tax purposes, any gain from the sale or exchange of obligations 55
86		-	issued by or on behalf of the state of Connecticut, any political 56
87		-	subdivision thereof, or public instrumentality, state or local authority, 57
88		-	district or similar public entity created under the laws of the state of 58
89		-	Connecticut, in the income year such gain was recognized; 59
90		-	(viii) Any interest on indebtedness incurred or continued to 60
91		-	purchase or carry obligations or securities the interest on which is 61
92		-	subject to tax under this chapter but exempt from federal income tax, 62
93		-	to the extent that such interest on indebtedness is not deductible in 63
94		-	determining federal adjusted gross income and is attributable to a 64
95		-	trade or business carried on by such individual; 65
96		-	(ix) Ordinary and necessary expenses paid or incurred during the 66
97		-	taxable year for the production or collection of income which is subject 67
98		-	to taxation under this chapter but exempt from federal income tax, or 68
99		-	the management, conservation or maintenance of property held for the 69
100		-	production of such income, and the amortizable bond premium for the 70
101		-	taxable year on any bond the interest on which is subject to tax under 71
102		-	this chapter but exempt from federal income tax, to the extent that 72
103		-	such expenses and premiums are not deductible in determining federal 73
104		-	adjusted gross income and are attributable to a trade or business 74
105		-	carried on by such individual; 75
106		-	(x) (I) For taxable years commencing prior to January 1, 2019, for a 76
107		-	person who files a return under the federal income tax as an 77
108		-	unmarried individual whose federal adjusted gross income for such 78
109		-	taxable year is less than fifty thousand dollars, or as a married 79
110		-	individual filing separately whose federal adjusted gross income for 80 Substitute Bill No. 877
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116		-
117		-	such taxable year is less than fifty thousand dollars, or for a husband 81
118		-	and wife who file a return under the federal income tax as married 82
119		-	individuals filing jointly whose federal adjusted gross income for such 83
120		-	taxable year is less than sixty thousand dollars or a person who files a 84
121		-	return under the federal income tax as a head of household whose 85
122		-	federal adjusted gross income for such taxable year is less than sixty 86
123		-	thousand dollars, an amount equal to the Social Security benefits 87
124		-	includable for federal income tax purposes; 88
125		-	(II) For taxable years commencing prior to January 1, 2019, for a 89
126		-	person who files a return under the federal income tax as an 90
127		-	unmarried individual whose federal adjusted gross income for such 91
128		-	taxable year is fifty thousand dollars or more, or as a married 92
129		-	individual filing separately whose federal adjusted gross income for 93
130		-	such taxable year is fifty thousand dollars or more, or for a husband 94
131		-	and wife who file a return under the federal income tax as married 95
132		-	individuals filing jointly whose federal adjusted gross income from 96
133		-	such taxable year is sixty thousand dollars or more or for a person who 97
134		-	files a return under the federal income tax as a head of household 98
135		-	whose federal adjusted gross income for such taxable year is sixty 99
136		-	thousand dollars or more, an amount equal to the difference between 100
137		-	the amount of Social Security benefits includable for federal income tax 101
138		-	purposes and the lesser of twenty-five per cent of the Social Security 102
139		-	benefits received during the taxable year, or twenty-five per cent of the 103
140		-	excess described in Section 86(b)(1) of the Internal Revenue Code; 104
141		-	(III) For the taxable year commencing January 1, 2019, and each 105
142		-	taxable year thereafter, for a person who files a return under the 106
143		-	federal income tax as an unmarried individual whose federal adjusted 107
144		-	gross income for such taxable year is less than seventy-five thousand 108
145		-	dollars, or as a married individual filing separately whose federal 109
146		-	adjusted gross income for such taxable year is less than seventy-five 110
147		-	thousand dollars, or for a husband and wife who file a return under 111
148		-	the federal income tax as married individuals filing jointly whose 112
149		-	federal adjusted gross income for such taxable year is less than one 113 Substitute Bill No. 877
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155		-
156		-	hundred thousand dollars or a person who files a return under the 114
157		-	federal income tax as a head of household whose federal adjusted 115
158		-	gross income for such taxable year is less than one hundred thousand 116
159		-	dollars, an amount equal to the Social Security benefits includable for 117
160		-	federal income tax purposes; and 118
161		-	(IV) For the taxable year commencing January 1, 2019, and each 119
162		-	taxable year thereafter, for a person who files a return under the 120
163		-	federal income tax as an unmarried individual whose federal adjusted 121
164		-	gross income for such taxable year is seventy-five thousand dollars or 122
165		-	more, or as a married individual filing separately whose federal 123
166		-	adjusted gross income for such taxable year is seventy-five thousand 124
167		-	dollars or more, or for a husband and wife who file a return under the 125
168		-	federal income tax as married individuals filing jointly whose federal 126
169		-	adjusted gross income from such taxable year is one hundred 127
170		-	thousand dollars or more or for a person who files a return under the 128
171		-	federal income tax as a head of household whose federal adjusted 129
172		-	gross income for such taxable year is one hundred thousand dollars or 130
173		-	more, an amount equal to the difference between the amount of Social 131
174		-	Security benefits includable for federal income tax purposes and the 132
175		-	lesser of twenty-five per cent of the Social Security benefits received 133
176		-	during the taxable year, or twenty-five per cent of the excess described 134
177		-	in Section 86(b)(1) of the Internal Revenue Code; 135
178		-	(xi) To the extent properly includable in gross income for federal 136
179		-	income tax purposes, any amount rebated to a taxpayer pursuant to 137
180		-	section 12-746; 138
181		-	(xii) To the extent properly includable in the gross income for 139
182		-	federal income tax purposes of a designated beneficiary, any 140
183		-	distribution to such beneficiary from any qualified state tuition 141
184		-	program, as defined in Section 529(b) of the Internal Revenue Code, 142
185		-	established and maintained by this state or any official, agency or 143
186		-	instrumentality of the state; 144
187		-	(xiii) To the extent allowable under section 12-701a, contributions to 145 Substitute Bill No. 877
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193		-
194		-	accounts established pursuant to any qualified state tuition program, 146
195		-	as defined in Section 529(b) of the Internal Revenue Code, established 147
196		-	and maintained by this state or any official, agency or instrumentality 148
197		-	of the state; 149
198		-	(xiv) To the extent properly includable in gross income for federal 150
199		-	income tax purposes, the amount of any Holocaust victims' settlement 151
200		-	payment received in the taxable year by a Holocaust victim; 152
201		-	(xv) To the extent properly includable in gross income for federal 153
202		-	income tax purposes of an account holder, as defined in section 31-154
203		-	51ww, interest earned on funds deposited in the individual 155
204		-	development account, as defined in section 31-51ww, of such account 156
205		-	holder; 157
206		-	(xvi) To the extent properly includable in the gross income for 158
207		-	federal income tax purposes of a designated beneficiary, as defined in 159
208		-	section 3-123aa, interest, dividends or capital gains earned on 160
209		-	contributions to accounts established for the designated beneficiary 161
210		-	pursuant to the Connecticut Homecare Option Program for the Elderly 162
211		-	established by sections 3-123aa to 3-123ff, inclusive; 163
212		-	(xvii) To the extent properly includable in gross income for federal 164
213		-	income tax purposes, any income received from the United States 165
214		-	government as retirement pay for a retired member of (I) the Armed 166
215		-	Forces of the United States, as defined in Section 101 of Title 10 of the 167
216		-	United States Code, or (II) the National Guard, as defined in Section 168
217		-	101 of Title 10 of the United States Code; 169
218		-	(xviii) To the extent properly includable in gross income for federal 170
219		-	income tax purposes for the taxable year, any income from the 171
220		-	discharge of indebtedness in connection with any reacquisition, after 172
221		-	December 31, 2008, and before January 1, 2011, of an applicable debt 173
222		-	instrument or instruments, as those terms are defined in Section 108 of 174
223		-	the Internal Revenue Code, as amended by Section 1231 of the 175
224		-	American Recovery and Reinvestment Act of 2009, to the extent any 176 Substitute Bill No. 877
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230		-
231		-	such income was added to federal adjusted gross income pursuant to 177
232		-	subparagraph (A)(xi) of this subdivision in computing Connecticut 178
233		-	adjusted gross income for a preceding taxable year; 179
234		-	(xix) To the extent not deductible in determining federal adjusted 180
235		-	gross income, the amount of any contribution to a manufacturing 181
236		-	reinvestment account established pursuant to section 32-9zz in the 182
237		-	taxable year that such contribution is made; 183
238		-	(xx) To the extent properly includable in gross income for federal 184
239		-	income tax purposes, (I) for the taxable year commencing January 1, 185
240		-	2015, ten per cent of the income received from the state teachers' 186
241		-	retirement system, (II) for the taxable years commencing January 1, 187
242		-	2016, [January 1, 2017, and January 1, 2018] to January 1, 2020, 188
243		-	inclusive, twenty-five per cent of the income received from the state 189
244		-	teachers' retirement system, and (III) for the taxable year commencing 190
245		-	January 1, [2019] 2021, and each taxable year thereafter, fifty per cent of 191
246		-	the income received from the state teachers' retirement system or the 192
247		-	percentage, if applicable, pursuant to clause (xxi) of this subparagraph; 193
248		-	(xxi) To the extent properly includable in gross income for federal 194
249		-	income tax purposes, except for retirement benefits under clause (iv) of 195
250		-	this subparagraph and retirement pay under clause (xvii) of this 196
251		-	subparagraph, for a person who files a return under the federal income 197
252		-	tax as an unmarried individual whose federal adjusted gross income 198
253		-	for such taxable year is less than seventy-five thousand dollars, or as a 199
254		-	married individual filing separately whose federal adjusted gross 200
255		-	income for such taxable year is less than seventy-five thousand dollars, 201
256		-	or as a head of household whose federal adjusted gross income for 202
257		-	such taxable year is less than seventy-five thousand dollars, or for a 203
258		-	husband and wife who file a return under the federal income tax as 204
259		-	married individuals filing jointly whose federal adjusted gross income 205
260		-	for such taxable year is less than one hundred thousand dollars, (I) for 206
261		-	the taxable year commencing January 1, 2019, fourteen per cent of any 207
262		-	pension or annuity income, (II) for the taxable year commencing 208
263		-	January 1, 2020, twenty-eight per cent of any pension or annuity 209 Substitute Bill No. 877
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269		-
270		-	income, (III) for the taxable year commencing January 1, 2021, forty-210
271		-	two per cent of any pension or annuity income, (IV) for the taxable 211
272		-	year commencing January 1, 2022, fifty-six per cent of any pension or 212
273		-	annuity income, (V) for the taxable year commencing January 1, 2023, 213
274		-	seventy per cent of any pension or annuity income, (VI) for the taxable 214
275		-	year commencing January 1, 2024, eighty-four per cent of any pension 215
276		-	or annuity income, and (VII) for the taxable year commencing January 216
277		-	1, 2025, and each taxable year thereafter, any pension or annuity 217
278		-	income; 218
279		-	(xxii) The amount of lost wages and medical, travel and housing 219
280		-	expenses, not to exceed ten thousand dollars in the aggregate, incurred 220
281		-	by a taxpayer during the taxable year in connection with the donation 221
282		-	to another person of an organ for organ transplantation occurring on 222
283		-	or after January 1, 2017; 223
284		-	(xxiii) To the extent properly includable in gross income for federal 224
285		-	income tax purposes, the amount of any financial assistance received 225
286		-	from the Crumbling Foundations Assistance Fund or paid to or on 226
287		-	behalf of the owner of a residential building pursuant to sections 8-442 227
288		-	and 8-443; [, and] 228
289		-	(xxiv) To the extent properly includable in gross income for federal 229
290		-	income tax purposes, the amount calculated pursuant to subsection (b) 230
291		-	of section 12-704g for income received by a general partner of a 231
292		-	venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended 232
293		-	from time to time; and 233
294		-	(xxv) To the extent any portion of a deduction under Section 179 of 234
295		-	the Internal Revenue Code was added to federal adjusted gross income 235
296		-	pursuant to subparagraph (A)(xiv) of this subdivision in computing 236
297		-	Connecticut adjusted gross income, twenty-five per cent of such 237
298		-	disallowed portion of the deduction in each of the four succeeding 238
299		-	taxable years. 239
300		-	Sec. 3. (NEW) (Effective January 1, 2020) (a) For taxable years 240 Substitute Bill No. 877
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306		-
307		-	commencing on or after January 1, 2020, there is imposed a surcharge 241
308		-	on a taxpayer, excluding a trust or an estate, whose Connecticut 242
309		-	adjusted gross income is equal to or greater than the threshold amount 243
310		-	specified in section 12-700 of the general statutes for imposition of the 244
311		-	highest marginal rate on such taxpayer. Such surcharge shall be at the 245
312		-	rate of two per cent of the net gain from the sale or exchange of capital 246
313		-	assets, as determined for federal income tax purposes, that are 247
314		-	includable in such taxpayer's Connecticut adjusted gross income and 248
315		-	are derived from or connected with sources within this state. The 249
316		-	surcharge shall be in addition to any other tax, fee or surcharge for 250
317		-	which the taxpayer is liable. 251
318		-	(b) Each taxpayer subject to the surcharge shall file a return, in 252
319		-	accordance with the provisions of subsection (a) of section 12-719 of 253
320		-	the general statutes, with the Commissioner of Revenue Services in 254
321		-	such form and containing such information as the commissioner may 255
322		-	prescribe. Such return shall accurately set forth the amount of the net 256
323		-	gain calculated pursuant to subsection (a) of this section for the taxable 257
324		-	year and the amount of the taxpayer's surcharge liability for such year. 258
325		-	A person required to file a return under this section shall, without 259
326		-	assessment, notice or demand, pay any surcharge due thereon to the 260
327		-	commissioner on or before the date specified in subsection (a) of 261
328		-	section 12-719 of the general statutes, determined without regard to 262
329		-	any extension of time for filing the return. 263
330		-	(c) If any person fails to pay the amount of the surcharge reported 264
331		-	due on a return under this section within the time specified, there shall 265
332		-	be imposed a penalty equal to ten per cent of such amount due and 266
333		-	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 267
334		-	interest at the rate of one per cent per month or fraction thereof, from 268
335		-	the due date of such surcharge until the date of payment. Subject to the 269
336		-	provisions of section 12-3a of the general statutes, the commissioner 270
337		-	may waive all or part of the penalties provided under this section 271
338		-	when it is proven to the commissioner's satisfaction that the failure to 272
339		-	pay any surcharge was due to reasonable cause and was not 273 Substitute Bill No. 877
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345		-
346		-	intentional or due to neglect. 274
347		-	(d) The provisions of sections 12-550 to 12-554, inclusive, and 275
348		-	sections 12-555a, 12-723, 12-728, 12-729 and 12-733 of the general 276
349		-	statutes shall apply to the provisions of this section in the same 277
350		-	manner and with the same force and effect as if the language of said 278
351		-	sections had been incorporated in full into this section and had 279
352		-	expressly referred to the surcharge under this section, except to the 280
353		-	extent that any provision is inconsistent with a provision in this 281
354		-	section. 282
355		-	(e) The commissioner may adopt regulations, in accordance with the 283
356		-	provisions of chapter 54 of the general statutes, to implement the 284
357		-	provisions of this section. 285
358		-	(f) At the close of each fiscal year commencing with the fiscal year 286
359		-	ending June 30, 2020, the Comptroller is authorized to record as 287
360		-	revenue for such fiscal year the amount of the surcharge imposed 288
361		-	under this section that is received by the commissioner not later than 289
362		-	five business days from the last day of July immediately following the 290
363		-	end of such fiscal year. 291
364		-	Sec. 4. Section 12-640 of the general statutes is repealed and the 292
365		-	following is substituted in lieu thereof (Effective from passage and 293
366		-	applicable to gifts made on or after January 1, 2019): 294
367		-	For [the calendar year 1991 and each year thereafter] calendar years 295
368		-	commencing January 1, 1991, but prior to January 1, 2019, a tax 296
369		-	computed as provided in section 12-642, as amended by this act, is 297
370		-	hereby imposed on the transfer of property by gift during such taxable 298
371		-	year by any individual resident or nonresident provided, for the 299
372		-	calendar year commencing January 1, 1991, such tax shall be imposed 300
373		-	only on those gifts [which are] that were transferred on or after 301
374		-	September 1, 1991. 302
375		-	Sec. 5. Section 12-642 of the general statutes is repealed and the 303
376		-	following is substituted in lieu thereof (Effective from passage): 304 Substitute Bill No. 877
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382		-
383		-	(a) (1) With respect to calendar years commencing prior to January 305
384		-	1, 2001, the tax imposed by section 12-640, as amended by this act, for 306
385		-	the calendar year shall be at a rate of the taxable gifts made by the 307
386		-	donor during the calendar year set forth in the following schedule: 308
	38	+	Section 1. (NEW) (Effective from passage and applicable to taxable years 1
	39	+	commencing on or after January 1, 2023) (a) (1) As used in this section, 2
	40	+	"property tax" and "motor vehicle" have the same meanings as 3
	41	+	provided in section 12-704c of the general statutes, as amended by this 4
	42	+	act. 5
	43	+	(2) For the purposes of this section, property tax first becomes due, 6
	44	+	if due and payable in a single installment, on the date designated by 7
	45	+	the legislative body of the municipality as the date on which such 8
	46	+	installment shall be due and payable and, if due and payable in two or 9
	47	+	more installments, on the date designated by the legislative body of 10
	48	+	the municipality as the date on which such installment shall be due 11
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	51	+
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	55	+	and payable or, at the election of the taxpayer, on the date designated 12
	56	+	by the legislative body of the municipality as the date on which any 13
	57	+	earlier installment of such tax shall be due and payable. 14
	58	+	(b) For taxable years commencing on or after January 1, 2023, any 15
	59	+	resident of this state, as defined in subdivision (1) of subsection (a) of 16
	60	+	section 12-701 of the general statutes, subject to the tax under chapter 17
	61	+	229 of the general statutes for any taxable year shall be entitled to a 18
	62	+	credit in determining the amount of tax liability under chapter 229 of 19
	63	+	the general statutes, for all or a portion, as permitted by this section, of 20
	64	+	the amount of property tax, as defined in this section, first becoming 21
	65	+	due and actually paid during such taxable year by such person on such 22
	66	+	person's primary residence or motor vehicle in accordance with the 23
	67	+	provisions of this section, provided in the case of a person who files a 24
	68	+	return under the federal income tax for such taxable year as an 25
	69	+	unmarried individual, a married individual filing separately or a head 26
	70	+	of household, one motor vehicle shall be eligible for such credit and in 27
	71	+	the case of persons who file a return under federal income tax for such 28
	72	+	taxable year as married individuals filing jointly, no more than two 29
	73	+	motor vehicles shall be eligible for a credit under the provisions of this 30
	74	+	section. The credit allowed under this section shall be in addition to 31
	75	+	the credit allowed under section 12-704c of the general statutes, as 32
	76	+	amended by this act, for which a resident is eligible. 33
	77	+	(c) (1) The credit allowed under this section shall be calculated by 34
	78	+	determining the amount by which a taxpayer's property tax paid 35
	79	+	during the taxable year exceeds six and one-half per cent of such 36
	80	+	taxpayer's Connecticut adjusted gross income and multiplying such 37
	81	+	excess amount by 0.333. 38
	82	+	(2) The credit allowed under this section shall not exceed one 39
	83	+	thousand two hundred dollars. In the case of any persons who file a 40
	84	+	return under the federal income tax for such taxable year as married 41
	85	+	individuals filing a joint return, the credit allowed, in the aggregate, 42
	86	+	shall not exceed such amount for each such taxable year. 43
	87	+	Governor's Bill No. 877
	88	+
	89	+
	90	+
	91	+	LCO No. 4566 3 of 138
	92	+
	93	+	(d) The credit allowed under the provisions of this section shall be 44
	94	+	available for any person renting a primary residence in the state. Such 45
	95	+	renter shall be entitled to the credit in accordance with the provisions 46
	96	+	of this section and the amount of the credit shall be calculated as 47
	97	+	though the renter paid the property tax on such primary residence in 48
	98	+	an amount equal to eighteen per cent of the total amount of rent, 49
	99	+	exclusive of any interest, fees, deposits or charges, actually paid by the 50
	100	+	renter during the taxable year for which the credit is claimed. 51
	101	+	(e) The credit allowed under the provisions of this section shall be 52
	102	+	available for any person leasing a motor vehicle pursuant to a written 53
	103	+	agreement for a term of more than one year. Such lessee shall be 54
	104	+	entitled to the credit in accordance with the provisions of this section 55
	105	+	for the taxes actually paid by the lessor or lessee on such leased 56
	106	+	vehicle, provided the lessee was lawfully in possession of the motor 57
	107	+	vehicle at such time when the taxes first became due. The lessor shall 58
	108	+	provide the lessee with documentation establishing, to the satisfaction 59
	109	+	of the Commissioner of Revenue Services, the amount of property tax 60
	110	+	paid during the time period in which the lessee was lawfully in 61
	111	+	possession of the motor vehicle. The lessor of the motor vehicle shall 62
	112	+	not be entitled to a credit under the provisions of this section. 63
	113	+	(f) The credit may only be used to reduce a qualifying taxpayer's tax 64
	114	+	liability for the year for which such credit is applicable and shall not be 65
	115	+	used to reduce such tax liability to less than zero. 66
	116	+	(g) The amount of tax due pursuant to sections 12-705 and 12-722 of 67
	117	+	the general statutes shall be calculated without regard to this credit. 68
	118	+	Sec. 2. Section 12-704c of the general statutes is repealed and the 69
	119	+	following is substituted in lieu thereof (Effective from passage): 70
	120	+	(a) Any resident of this state, as defined in subdivision (1) of 71
	121	+	subsection (a) of section 12-701, subject to the tax under this chapter for 72
	122	+	any taxable year shall be entitled to a credit in determining the amount 73
	123	+	of tax liability under this chapter, for all or a portion, as permitted by 74
	124	+	Governor's Bill No. 877
	125	+
	126	+
	127	+
	128	+	LCO No. 4566 4 of 138
	129	+
	130	+	this section, of the amount of property tax, as defined in this section, 75
	131	+	first becoming due and actually paid during such taxable year by such 76
	132	+	person on such person's primary residence or motor vehicle in 77
	133	+	accordance with the provisions of this section, provided in the case of a 78
	134	+	person who files a return under the federal income tax for such taxable 79
	135	+	year as an unmarried individual, a married individual filing separately 80
	136	+	or a head of household, one motor vehicle shall be eligible for such 81
	137	+	credit and in the case of [a husband and wife] persons who file a return 82
	138	+	under federal income tax for such taxable year as married individuals 83
	139	+	filing jointly, no more than two motor vehicles shall be eligible for a 84
	140	+	credit under the provisions of this section. 85
	141	+	(b) (1) The credit allowed under this section shall not exceed (A) [for 86
	142	+	taxable years commencing on or after January 1, 2006, but prior to 87
	143	+	January 1, 2011, five hundred dollars; (B)] for taxable years 88
	144	+	commencing on or after January 1, 2011, but prior to January 1, 2016, 89
	145	+	three hundred dollars; and [(C)] (B) for taxable years commencing on 90
	146	+	or after January 1, 2016, two hundred dollars. In the case of any 91
	147	+	[husband and wife] persons who file a return under the federal income 92
	148	+	tax for such taxable year as married individuals filing a joint return, 93
	149	+	the credit allowed, in the aggregate, shall not exceed such [amounts] 94
	150	+	amount for each such taxable year. 95
	151	+	(2) Notwithstanding the provisions of subsection (a) of this section, 96
	152	+	for the taxable years commencing January 1, 2017, and January 1, 2018, 97
	153	+	the credit under this section shall be allowed only for a resident of this 98
	154	+	state (A) who has attained age sixty-five before the close of the 99
	155	+	applicable taxable year, or (B) who files a return under the federal 100
	156	+	income tax for the applicable taxable year validly claiming one or more 101
	157	+	dependents. 102
	158	+	[(c) (1) (A) For taxable years commencing prior to January 1, 2000, in 103
	159	+	the case of any such taxpayer who files under the federal income tax 104
	160	+	for such taxable year as an unmarried individual whose Connecticut 105
	161	+	adjusted gross income exceeds fifty-two thousand five hundred 106
	162	+	Governor's Bill No. 877
	163	+
	164	+
	165	+
	166	+	LCO No. 4566 5 of 138
	167	+
	168	+	dollars, the amount of the credit that exceeds one hundred dollars shall 107
	169	+	be reduced by ten per cent for each ten thousand dollars, or fraction 108
	170	+	thereof, by which the taxpayer's Connecticut adjusted gross income 109
	171	+	exceeds said amount. 110
	172	+	(B) For taxable years commencing on or after January 1, 2000, but 111
	173	+	prior to January 1, 2001, in the case of any such taxpayer who files 112
	174	+	under the federal income tax for such taxable year as an unmarried 113
	175	+	individual whose Connecticut adjusted gross income exceeds fifty-114
	176	+	three thousand five hundred dollars, the amount of the credit that 115
	177	+	exceeds one hundred dollars shall be reduced by ten per cent for each 116
	178	+	ten thousand dollars, or fraction thereof, by which the taxpayer's 117
	179	+	Connecticut adjusted gross income exceeds said amount. 118
	180	+	(C) For taxable years commencing on or after January 1, 2001, but 119
	181	+	prior to January 1, 2004, in the case of any such taxpayer who files 120
	182	+	under the federal income tax for such taxable year as an unmarried 121
	183	+	individual whose Connecticut adjusted gross income exceeds fifty-four 122
	184	+	thousand five hundred dollars, the amount of the credit shall be 123
	185	+	reduced by ten per cent for each ten thousand dollars, or fraction 124
	186	+	thereof, by which the taxpayer's Connecticut adjusted gross income 125
	187	+	exceeds said amount. 126
	188	+	(D) For taxable years commencing on or after January 1, 2004, but 127
	189	+	prior to January 1, 2007, in the case of any such taxpayer who files 128
	190	+	under the federal income tax for such taxable year as an unmarried 129
	191	+	individual whose Connecticut adjusted gross income exceeds fifty-five 130
	192	+	thousand dollars, the amount of the credit shall be reduced by ten per 131
	193	+	cent for each ten thousand dollars, or fraction thereof, by which the 132
	194	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 133
	195	+	(E) For taxable years commencing on or after January 1, 2007, but 134
	196	+	prior to January 1, 2008, in the case of any such taxpayer who files 135
	197	+	under the federal income tax for such taxable year as an unmarried 136
	198	+	individual whose Connecticut adjusted gross income exceeds fifty-five 137
	199	+	Governor's Bill No. 877
	200	+
	201	+
	202	+
	203	+	LCO No. 4566 6 of 138
	204	+
	205	+	thousand five hundred dollars, the amount of the credit shall be 138
	206	+	reduced by ten per cent for each ten thousand dollars, or fraction 139
	207	+	thereof, by which the taxpayer's Connecticut adjusted gross income 140
	208	+	exceeds said amount. 141
	209	+	(F) For taxable years commencing on or after January 1, 2008, but 142
	210	+	prior to January 1, 2011, in the case of any such taxpayer who files 143
	211	+	under the federal income tax for such taxable year as an unmarried 144
	212	+	individual whose Connecticut adjusted gross income exceeds fifty-six 145
	213	+	thousand five hundred dollars, the amount of the credit shall be 146
	214	+	reduced by ten per cent for each ten thousand dollars, or fraction 147
	215	+	thereof, by which the taxpayer's Connecticut adjusted gross income 148
	216	+	exceeds said amount.] 149
	217	+	[(G)] (c) (1) (A) For taxable years commencing on or after January 1, 150
	218	+	2011, but prior to January 1, 2013, in the case of any such taxpayer who 151
	219	+	files under the federal income tax for such taxable year as an 152
	220	+	unmarried individual whose Connecticut adjusted gross income 153
	221	+	exceeds fifty-six thousand five hundred dollars, the amount of the 154
	222	+	credit shall be reduced by fifteen per cent for each ten thousand 155
	223	+	dollars, or fraction thereof, by which the taxpayer's Connecticut 156
	224	+	adjusted gross income exceeds said amount. 157
	225	+	[(H)] (B) For taxable years commencing on or after January 1, 2013, 158
	226	+	but prior to January 1, 2014, in the case of any such taxpayer who files 159
	227	+	under the federal income tax for such taxable year as an unmarried 160
	228	+	individual whose Connecticut adjusted gross income exceeds sixty 161
	229	+	thousand five hundred dollars, the amount of the credit shall be 162
	230	+	reduced by fifteen per cent for each ten thousand dollars, or fraction 163
	231	+	thereof, by which the taxpayer's Connecticut adjusted gross income 164
	232	+	exceeds said amount. 165
	233	+	[(I)] (C) For taxable years commencing on or after January 1, 2014, 166
	234	+	but prior to January 1, 2016, in the case of any such taxpayer who files 167
	235	+	under the federal income tax for such taxable year as an unmarried 168
	236	+	Governor's Bill No. 877
	237	+
	238	+
	239	+
	240	+	LCO No. 4566 7 of 138
	241	+
	242	+	individual whose Connecticut adjusted gross income exceeds forty-169
	243	+	seven thousand five hundred dollars, the amount of the credit shall be 170
	244	+	reduced by fifteen per cent for each ten thousand dollars, or fraction 171
	245	+	thereof, by which the taxpayer's Connecticut adjusted gross income 172
	246	+	exceeds said amount. 173
	247	+	[(J)] (D) For taxable years commencing on or after January 1, 2016, in 174
	248	+	the case of any such taxpayer who files under the federal income tax 175
	249	+	for such taxable year as an unmarried individual whose Connecticut 176
	250	+	adjusted gross income exceeds forty-nine thousand five hundred 177
	251	+	dollars, the amount of the credit shall be reduced by fifteen per cent for 178
	252	+	each ten thousand dollars, or fraction thereof, by which the taxpayer's 179
	253	+	Connecticut adjusted gross income exceeds said amount. 180
	254	+	(2) In the case of any such taxpayer who files under the federal 181
	255	+	income tax for such taxable year as a married individual filing 182
	256	+	separately whose Connecticut adjusted gross income exceeds thirty-183
	257	+	five thousand two hundred fifty dollars, the amount of the credit shall 184
	258	+	be reduced by fifteen per cent for each five thousand dollars, or 185
	259	+	fraction thereof, by which the taxpayer's Connecticut adjusted gross 186
	260	+	income exceeds said amount. 187
	261	+	(3) In the case of a taxpayer who files under the federal income tax 188
	262	+	for such taxable year as a head of household whose Connecticut 189
	263	+	adjusted gross income exceeds fifty-four thousand five hundred 190
	264	+	dollars, the amount of the credit shall be reduced by fifteen per cent for 191
	265	+	each ten thousand dollars or fraction thereof, by which the taxpayer's 192
	266	+	Connecticut adjusted gross income exceeds said amount. 193
	267	+	(4) In the case of a taxpayer who files under federal income tax for 194
	268	+	such taxable year as married individuals filing jointly whose 195
	269	+	Connecticut adjusted gross income exceeds seventy thousand five 196
	270	+	hundred dollars, the amount of the credit shall be reduced by fifteen 197
	271	+	per cent for each ten thousand dollars, or fraction thereof, by which the 198
	272	+	taxpayer's Connecticut adjusted gross income exceeds said amount. 199
	273	+	Governor's Bill No. 877
	274	+
	275	+
	276	+
	277	+	LCO No. 4566 8 of 138
	278	+
	279	+	(d) The credit allowed under the provisions of this section shall be 200
	280	+	available for any person leasing a motor vehicle pursuant to a written 201
	281	+	agreement for a term of more than one year. Such lessee shall be 202
	282	+	entitled to the credit in accordance with the provisions of this section 203
	283	+	for the taxes actually paid by the lessor or lessee on such leased 204
	284	+	vehicle, provided the lessee was lawfully in possession of the motor 205
	285	+	vehicle at such time when the taxes first became due. The lessor shall 206
	286	+	provide the lessee with documentation establishing, to the satisfaction 207
	287	+	of the Commissioner of Revenue Services, the amount of property tax 208
	288	+	paid during the time period in which the lessee was lawfully in 209
	289	+	possession of the motor vehicle. The lessor of the motor vehicle shall 210
	290	+	not be entitled to a credit under the provisions of this section. 211
	291	+	(e) The credit may only be used to reduce [such] a qualifying 212
	292	+	taxpayer's tax liability for the year for which such credit is applicable 213
	293	+	and shall not be used to reduce such tax liability to less than zero. 214
	294	+	(f) The amount of tax due pursuant to sections 12-705 and 12-722 215
	295	+	shall be calculated without regard to this credit. 216
	296	+	(g) For the purposes of this section: (1) "Property tax" means the 217
	297	+	amount of property tax, exclusive of any interest, fees or charges 218
	298	+	thereon, for which a taxpayer is liable, or in the case of any [husband 219
	299	+	and wife] persons who file a return under the federal income tax for 220
	300	+	such taxable year as married individuals filing a joint return, for which 221
	301	+	[the husband or wife] either or both spouses are liable, to a 222
	302	+	Connecticut political subdivision on the taxpayer's primary residence 223
	303	+	or motor vehicles; (2) "motor vehicle" means a motor vehicle, as 224
	304	+	defined in section 14-1, [which] that is privately owned or leased; and 225
	305	+	(3) property tax first becomes due, if due and payable in a single 226
	306	+	installment, on the date designated by the legislative body of the 227
	307	+	municipality as the date on which such installment shall be due and 228
	308	+	payable and, if due and payable in two or more installments, on the 229
	309	+	date designated by the legislative body of the municipality as the date 230
	310	+	on which such installment shall be due and payable or, at the election 231
	311	+	Governor's Bill No. 877
	312	+
	313	+
	314	+
	315	+	LCO No. 4566 9 of 138
	316	+
	317	+	of the taxpayer, on the date designated by the legislative body of the 232
	318	+	municipality as the date on which any earlier installment of such tax 233
	319	+	shall be due and payable. 234
	320	+	Sec. 3. Subparagraph (B) of subdivision (20) of subsection (a) of 235
	321	+	section 12-701 of the general statutes is repealed and the following is 236
	322	+	substituted in lieu thereof (Effective from passage and applicable to taxable 237
	323	+	years commencing on or after January 1, 2019): 238
	324	+	(B) There shall be subtracted therefrom: 239
	325	+	(i) To the extent properly includable in gross income for federal 240
	326	+	income tax purposes, any income with respect to which taxation by 241
	327	+	any state is prohibited by federal law; 242
	328	+	(ii) To the extent allowable under section 12-718, exempt dividends 243
	329	+	paid by a regulated investment company; 244
	330	+	(iii) To the extent properly includable in gross income for federal 245
	331	+	income tax purposes, the amount of any refund or credit for 246
	332	+	overpayment of income taxes imposed by this state, or any other state 247
	333	+	of the United States or a political subdivision thereof, or the District of 248
	334	+	Columbia; 249
	335	+	(iv) To the extent properly includable in gross income for federal 250
	336	+	income tax purposes and not otherwise subtracted from federal 251
	337	+	adjusted gross income pursuant to clause (x) of this subparagraph in 252
	338	+	computing Connecticut adjusted gross income, any tier 1 railroad 253
	339	+	retirement benefits; 254
	340	+	(v) To the extent any additional allowance for depreciation under 255
	341	+	Section 168(k) of the Internal Revenue Code for property placed in 256
	342	+	service after September 27, 2017, was added to federal adjusted gross 257
	343	+	income pursuant to subparagraph (A)(ix) of this subdivision in 258
	344	+	computing Connecticut adjusted gross income, twenty-five per cent of 259
	345	+	such additional allowance for depreciation in each of the four 260
	346	+	Governor's Bill No. 877
	347	+
	348	+
	349	+
	350	+	LCO No. 4566 10 of 138
	351	+
	352	+	succeeding taxable years; 261
	353	+	(vi) To the extent properly includable in gross income for federal 262
	354	+	income tax purposes, any interest income from obligations issued by or 263
	355	+	on behalf of the state of Connecticut, any political subdivision thereof, 264
	356	+	or public instrumentality, state or local authority, district or similar 265
	357	+	public entity created under the laws of the state of Connecticut; 266
	358	+	(vii) To the extent properly includable in determining the net gain 267
	359	+	or loss from the sale or other disposition of capital assets for federal 268
	360	+	income tax purposes, any gain from the sale or exchange of obligations 269
	361	+	issued by or on behalf of the state of Connecticut, any political 270
	362	+	subdivision thereof, or public instrumentality, state or local authority, 271
	363	+	district or similar public entity created under the laws of the state of 272
	364	+	Connecticut, in the income year such gain was recognized; 273
	365	+	(viii) Any interest on indebtedness incurred or continued to 274
	366	+	purchase or carry obligations or securities the interest on which is 275
	367	+	subject to tax under this chapter but exempt from federal income tax, 276
	368	+	to the extent that such interest on indebtedness is not deductible in 277
	369	+	determining federal adjusted gross income and is attributable to a 278
	370	+	trade or business carried on by such individual; 279
	371	+	(ix) Ordinary and necessary expenses paid or incurred during the 280
	372	+	taxable year for the production or collection of income which is subject 281
	373	+	to taxation under this chapter but exempt from federal income tax, or 282
	374	+	the management, conservation or maintenance of property held for the 283
	375	+	production of such income, and the amortizable bond premium for the 284
	376	+	taxable year on any bond the interest on which is subject to tax under 285
	377	+	this chapter but exempt from federal income tax, to the extent that 286
	378	+	such expenses and premiums are not deductible in determining federal 287
	379	+	adjusted gross income and are attributable to a trade or business 288
	380	+	carried on by such individual; 289
	381	+	(x) (I) For [taxable years commencing prior to January 1, 2019, for] a 290
	382	+	person who files a return under the federal income tax as an 291
	383	+	Governor's Bill No. 877
	384	+
	385	+
	386	+
	387	+	LCO No. 4566 11 of 138
	388	+
	389	+	unmarried individual whose federal adjusted gross income for such 292
	390	+	taxable year is less than fifty thousand dollars, or as a married 293
	391	+	individual filing separately whose federal adjusted gross income for 294
	392	+	such taxable year is less than fifty thousand dollars, or for a husband 295
	393	+	and wife who file a return under the federal income tax as married 296
	394	+	individuals filing jointly whose federal adjusted gross income for such 297
	395	+	taxable year is less than sixty thousand dollars or a person who files a 298
	396	+	return under the federal income tax as a head of household whose 299
	397	+	federal adjusted gross income for such taxable year is less than sixty 300
	398	+	thousand dollars, an amount equal to the Social Security benefits 301
	399	+	includable for federal income tax purposes; and 302
	400	+	(II) For [taxable years commencing prior to January 1, 2019, for] a 303
	401	+	person who files a return under the federal income tax as an 304
	402	+	unmarried individual whose federal adjusted gross income for such 305
	403	+	taxable year is fifty thousand dollars or more, or as a married 306
	404	+	individual filing separately whose federal adjusted gross income for 307
	405	+	such taxable year is fifty thousand dollars or more, or for a husband 308
	406	+	and wife who file a return under the federal income tax as married 309
	407	+	individuals filing jointly whose federal adjusted gross income from 310
	408	+	such taxable year is sixty thousand dollars or more or for a person who 311
	409	+	files a return under the federal income tax as a head of household 312
	410	+	whose federal adjusted gross income for such taxable year is sixty 313
	411	+	thousand dollars or more, an amount equal to the difference between 314
	412	+	the amount of Social Security benefits includable for federal income tax 315
	413	+	purposes and the lesser of twenty-five per cent of the Social Security 316
	414	+	benefits received during the taxable year, or twenty-five per cent of the 317
	415	+	excess described in Section 86(b)(1) of the Internal Revenue Code; 318
	416	+	[(III) For the taxable year commencing January 1, 2019, and each 319
	417	+	taxable year thereafter, for a person who files a return under the 320
	418	+	federal income tax as an unmarried individual whose federal adjusted 321
	419	+	gross income for such taxable year is less than seventy-five thousand 322
	420	+	dollars, or as a married individual filing separately whose federal 323
	421	+	adjusted gross income for such taxable year is less than seventy-five 324
	422	+	Governor's Bill No. 877
	423	+
	424	+
	425	+
	426	+	LCO No. 4566 12 of 138
	427	+
	428	+	thousand dollars, or for a husband and wife who file a return under 325
	429	+	the federal income tax as married individuals filing jointly whose 326
	430	+	federal adjusted gross income for such taxable year is less than one 327
	431	+	hundred thousand dollars or a person who files a return under the 328
	432	+	federal income tax as a head of household whose federal adjusted 329
	433	+	gross income for such taxable year is less than one hundred thousand 330
	434	+	dollars, an amount equal to the Social Security benefits includable for 331
	435	+	federal income tax purposes; and 332
	436	+	(IV) For the taxable year commencing January 1, 2019, and each 333
	437	+	taxable year thereafter, for a person who files a return under the 334
	438	+	federal income tax as an unmarried individual whose federal adjusted 335
	439	+	gross income for such taxable year is seventy-five thousand dollars or 336
	440	+	more, or as a married individual filing separately whose federal 337
	441	+	adjusted gross income for such taxable year is seventy-five thousand 338
	442	+	dollars or more, or for a husband and wife who file a return under the 339
	443	+	federal income tax as married individuals filing jointly whose federal 340
	444	+	adjusted gross income from such taxable year is one hundred 341
	445	+	thousand dollars or more or for a person who files a return under the 342
	446	+	federal income tax as a head of household whose federal adjusted 343
	447	+	gross income for such taxable year is one hundred thousand dollars or 344
	448	+	more, an amount equal to the difference between the amount of Social 345
	449	+	Security benefits includable for federal income tax purposes and the 346
	450	+	lesser of twenty-five per cent of the Social Security benefits received 347
	451	+	during the taxable year, or twenty-five per cent of the excess described 348
	452	+	in Section 86(b)(1) of the Internal Revenue Code;] 349
	453	+	(xi) To the extent properly includable in gross income for federal 350
	454	+	income tax purposes, any amount rebated to a taxpayer pursuant to 351
	455	+	section 12-746; 352
	456	+	(xii) To the extent properly includable in the gross income for 353
	457	+	federal income tax purposes of a designated beneficiary, any 354
	458	+	distribution to such beneficiary from any qualified state tuition 355
	459	+	program, as defined in Section 529(b) of the Internal Revenue Code, 356
	460	+	Governor's Bill No. 877
	461	+
	462	+
	463	+
	464	+	LCO No. 4566 13 of 138
	465	+
	466	+	established and maintained by this state or any official, agency or 357
	467	+	instrumentality of the state; 358
	468	+	(xiii) To the extent allowable under section 12-701a, contributions to 359
	469	+	accounts established pursuant to any qualified state tuition program, 360
	470	+	as defined in Section 529(b) of the Internal Revenue Code, established 361
	471	+	and maintained by this state or any official, agency or instrumentality 362
	472	+	of the state; 363
	473	+	(xiv) To the extent properly includable in gross income for federal 364
	474	+	income tax purposes, the amount of any Holocaust victims' settlement 365
	475	+	payment received in the taxable year by a Holocaust victim; 366
	476	+	(xv) To the extent properly includable in gross income for federal 367
	477	+	income tax purposes of an account holder, as defined in section 31-368
	478	+	51ww, interest earned on funds deposited in the individual 369
	479	+	development account, as defined in section 31-51ww, of such account 370
	480	+	holder; 371
	481	+	(xvi) To the extent properly includable in the gross income for 372
	482	+	federal income tax purposes of a designated beneficiary, as defined in 373
	483	+	section 3-123aa, interest, dividends or capital gains earned on 374
	484	+	contributions to accounts established for the designated beneficiary 375
	485	+	pursuant to the Connecticut Homecare Option Program for the Elderly 376
	486	+	established by sections 3-123aa to 3-123ff, inclusive; 377
	487	+	(xvii) To the extent properly includable in gross income for federal 378
	488	+	income tax purposes, any income received from the United States 379
	489	+	government as retirement pay for a retired member of (I) the Armed 380
	490	+	Forces of the United States, as defined in Section 101 of Title 10 of the 381
	491	+	United States Code, or (II) the National Guard, as defined in Section 382
	492	+	101 of Title 10 of the United States Code; 383
	493	+	(xviii) To the extent properly includable in gross income for federal 384
	494	+	income tax purposes for the taxable year, any income from the 385
	495	+	discharge of indebtedness in connection with any reacquisition, after 386
	496	+	Governor's Bill No. 877
	497	+
	498	+
	499	+
	500	+	LCO No. 4566 14 of 138
	501	+
	502	+	December 31, 2008, and before January 1, 2011, of an applicable debt 387
	503	+	instrument or instruments, as those terms are defined in Section 108 of 388
	504	+	the Internal Revenue Code, as amended by Section 1231 of the 389
	505	+	American Recovery and Reinvestment Act of 2009, to the extent any 390
	506	+	such income was added to federal adjusted gross income pursuant to 391
	507	+	subparagraph (A)(xi) of this subdivision in computing Connecticut 392
	508	+	adjusted gross income for a preceding taxable year; 393
	509	+	(xix) To the extent not deductible in determining federal adjusted 394
	510	+	gross income, the amount of any contribution to a manufacturing 395
	511	+	reinvestment account established pursuant to section 32-9zz in the 396
	512	+	taxable year that such contribution is made; 397
	513	+	(xx) To the extent properly includable in gross income for federal 398
	514	+	income tax purposes, (I) for the taxable year commencing January 1, 399
	515	+	2015, ten per cent of the income received from the state teachers' 400
	516	+	retirement system, and (II) for the taxable years commencing on and 401
	517	+	after January 1, 2016, [January 1, 2017, and January 1, 2018,] twenty-402
	518	+	five per cent of the income received from the state teachers' retirement 403
	519	+	system; [, and (III) for the taxable year commencing January 1, 2019, 404
	520	+	and each taxable year thereafter, fifty per cent of the income received 405
	521	+	from the state teachers' retirement system or the percentage, if 406
	522	+	applicable, pursuant to clause (xxi) of this subparagraph;] 407
	523	+	[(xxi) To the extent properly includable in gross income for federal 408
	524	+	income tax purposes, except for retirement benefits under clause (iv) of 409
	525	+	this subparagraph and retirement pay under clause (xvii) of this 410
	526	+	subparagraph, for a person who files a return under the federal income 411
	527	+	tax as an unmarried individual whose federal adjusted gross income 412
	528	+	for such taxable year is less than seventy-five thousand dollars, or as a 413
	529	+	married individual filing separately whose federal adjusted gross 414
	530	+	income for such taxable year is less than seventy-five thousand dollars, 415
	531	+	or as a head of household whose federal adjusted gross income for 416
	532	+	such taxable year is less than seventy-five thousand dollars, or for a 417
	533	+	husband and wife who file a return under the federal income tax as 418
	534	+	Governor's Bill No. 877
	535	+
	536	+
	537	+
	538	+	LCO No. 4566 15 of 138
	539	+
	540	+	married individuals filing jointly whose federal adjusted gross income 419
	541	+	for such taxable year is less than one hundred thousand dollars, (I) for 420
	542	+	the taxable year commencing January 1, 2019, fourteen per cent of any 421
	543	+	pension or annuity income, (II) for the taxable year commencing 422
	544	+	January 1, 2020, twenty-eight per cent of any pension or annuity 423
	545	+	income, (III) for the taxable year commencing January 1, 2021, forty-424
	546	+	two per cent of any pension or annuity income, (IV) for the taxable 425
	547	+	year commencing January 1, 2022, fifty-six per cent of any pension or 426
	548	+	annuity income, (V) for the taxable year commencing January 1, 2023, 427
	549	+	seventy per cent of any pension or annuity income, (VI) for the taxable 428
	550	+	year commencing January 1, 2024, eighty-four per cent of any pension 429
	551	+	or annuity income, and (VII) for the taxable year commencing January 430
	552	+	1, 2025, and each taxable year thereafter, any pension or annuity 431
	553	+	income;] 432
	554	+	[(xxii)] (xxi) The amount of lost wages and medical, travel and 433
	555	+	housing expenses, not to exceed ten thousand dollars in the aggregate, 434
	556	+	incurred by a taxpayer during the taxable year in connection with the 435
	557	+	donation to another person of an organ for organ transplantation 436
	558	+	occurring on or after January 1, 2017; 437
	559	+	[(xxiii)] (xxii) To the extent properly includable in gross income for 438
	560	+	federal income tax purposes, the amount of any financial assistance 439
	561	+	received from the Crumbling Foundations Assistance Fund or paid to 440
	562	+	or on behalf of the owner of a residential building pursuant to sections 441
	563	+	8-442 and 8-443; [, and] 442
	564	+	[(xxiv)] (xxiii) To the extent properly includable in gross income for 443
	565	+	federal income tax purposes, the amount calculated pursuant to 444
	566	+	subsection (b) of section 12-704g for income received by a general 445
	567	+	partner of a venture capital fund, as defined in 17 CFR 275.203(l)-1, as 446
	568	+	amended from time to time; and 447
	569	+	[(xxv)] (xxiv) To the extent any portion of a deduction under Section 448
	570	+	179 of the Internal Revenue Code was added to federal adjusted gross 449
	571	+	Governor's Bill No. 877
	572	+
	573	+
	574	+
	575	+	LCO No. 4566 16 of 138
	576	+
	577	+	income pursuant to subparagraph (A)(xiv) of this subdivision in 450
	578	+	computing Connecticut adjusted gross income, twenty-five per cent of 451
	579	+	such disallowed portion of the deduction in each of the four 452
	580	+	succeeding taxable years. 453
	581	+	Sec. 4. Section 12-701 of the general statutes is amended by adding 454
	582	+	subsection (d) as follows (Effective from passage): 455
	583	+	(NEW) (d) The provisions of section 12-722 shall not apply to any 456
	584	+	additional tax due as a result of the changes made to subparagraph (B) 457
	585	+	of subdivision (20) of subsection (a) of this section pursuant to section 458
	586	+	3 of this act for any taxable year commencing prior to the effective date 459
	587	+	of section 3 of this act. 460
	588	+	Sec. 5. Subdivision (8) of subsection (b) of section 12-214 of the 461
	589	+	general statutes is repealed and the following is substituted in lieu 462
	590	+	thereof (Effective from passage and applicable to income years commencing 463
	591	+	on or after January 1, 2019): 464
	592	+	(8) (A) With respect to income years commencing on or after 465
	593	+	January 1, 2018, [and prior to January 1, 2019,] any company subject to 466
	594	+	the tax imposed in accordance with subsection (a) of this section shall 467
	595	+	pay, for such income year, except when the tax so calculated is equal to 468
	596	+	two hundred fifty dollars, an additional tax in an amount equal to ten 469
	597	+	per cent of the tax calculated under said subsection (a) for such income 470
	598	+	year, without reduction of the tax so calculated by the amount of any 471
	599	+	credit against such tax. The additional amount of tax determined 472
	600	+	under this subsection for any income year shall constitute a part of the 473
	601	+	tax imposed by the provisions of said subsection (a) and shall become 474
	602	+	due and be paid, collected and enforced as provided in this chapter. 475
	603	+	(B) Any company whose gross income for the income year was less 476
	604	+	than one hundred million dollars shall not be subject to the additional 477
	605	+	tax imposed under subparagraph (A) of this subdivision. This 478
	606	+	exception shall not apply to taxable members of a combined group that 479
	607	+	files a combined unitary tax return. 480
	608	+	Governor's Bill No. 877
	609	+
	610	+
	611	+
	612	+	LCO No. 4566 17 of 138
	613	+
	614	+	Sec. 6. Section 12-214 of the general statutes is amended by adding 481
	615	+	subsection (d) as follows (Effective from passage): 482
	616	+	(NEW) (d) The provisions of section 12-242d shall not apply to any 483
	617	+	additional tax due as a result of the changes made to subdivision (8) of 484
	618	+	subsection (b) of this section pursuant to section 5 of this act for any 485
	619	+	income year commencing prior to the effective date of section 5 of this 486
	620	+	act. 487
	621	+	Sec. 7. Subsection (b) of section 12-284b of the general statutes is 488
	622	+	repealed and the following is substituted in lieu thereof (Effective from 489
	623	+	passage and applicable to taxable years commencing on or after January 1, 490
	624	+	2019): 491
	625	+	(b) Each limited liability company, limited liability partnership, 492
	626	+	limited partnership and S corporation shall be liable for the tax 493
	627	+	imposed by this section for each taxable year or portion thereof that 494
	628	+	such company, partnership or corporation is an affected business 495
	629	+	entity. For taxable years commencing prior to January 1, 2013, each 496
	630	+	affected business entity shall annually, on or before the fifteenth day of 497
	631	+	the fourth month following the close of its taxable year, pay to the 498
	632	+	Commissioner of Revenue Services a tax in the amount of two 499
	633	+	hundred fifty dollars. For taxable years commencing on or after 500
	634	+	January 1, 2013, but prior to January 1, 2019, each affected business 501
	635	+	entity shall, on or before the fifteenth day of the fourth month 502
	636	+	following the close of every other taxable year, pay to the 503
	637	+	Commissioner of Revenue Services a tax in the amount of two 504
	638	+	hundred fifty dollars. 505
	639	+	Sec. 8. Subdivision (2) of subsection (e) of section 12-217jj of the 506
	640	+	general statutes is repealed and the following is substituted in lieu 507
	641	+	thereof (Effective from passage and applicable to taxable years commencing 508
	642	+	on or after January 1, 2019): 509
	643	+	(2) Notwithstanding the provisions of subdivision (1) of this 510
	644	+	subsection, any entity that is not subject to tax under this chapter or 511
	645	+	Governor's Bill No. 877
	646	+
	647	+
	648	+
	649	+	LCO No. 4566 18 of 138
	650	+
	651	+	chapter 207 shall not be subject to the limitations on the transfer of 512
	652	+	credits provided in subparagraphs (B) and (C) of said subdivision (1), 513
	653	+	provided such entity owns not less than fifty per cent, directly or 514
	654	+	indirectly, of a business entity, [subject to tax under] as defined in 515
	655	+	section 12-284b, as amended by this act. 516
	656	+	Sec. 9. Section 12-640 of the general statutes is repealed and the 517
	657	+	following is substituted in lieu thereof (Effective from passage and 518
	658	+	applicable to gifts made on or after January 1, 2019): 519
	659	+	For [the calendar year 1991 and each year thereafter] calendar years 520
	660	+	commencing January 1, 1991, but prior to January 1, 2019, a tax 521
	661	+	computed as provided in section 12-642, as amended by this act, is 522
	662	+	hereby imposed on the transfer of property by gift during such taxable 523
	663	+	year by any individual resident or nonresident provided, for the 524
	664	+	calendar year commencing January 1, 1991, such tax shall be imposed 525
	665	+	only on those gifts [which are] that were transferred on or after 526
	666	+	September 1, 1991. 527
	667	+	Sec. 10. Section 12-642 of the general statutes is repealed and the 528
	668	+	following is substituted in lieu thereof (Effective from passage): 529
	669	+	(a) (1) With respect to calendar years commencing prior to January 530
	670	+	1, 2001, the tax imposed by section 12-640, as amended by this act, for 531
	671	+	the calendar year shall be at a rate of the taxable gifts made by the 532
	672	+	donor during the calendar year set forth in the following schedule: 533
387	673		T1 Amount of Taxable Gifts Rate of Tax
388	674		T2 Not over $25,000 1%
389	675		T3 Over $25,000 $250, plus 2% of the excess
390	676		T4 but not over $50,000 over $25,000
391	677		T5 Over $50,000 $750, plus 3% of the excess
392	678		T6 but not over $75,000 over $50,000
393	679		T7 Over $75,000 $1,500, plus 4% of the excess
394	680		T8 but not over $100,000 over $75,000
	681	+	Governor's Bill No. 877
	682	+
	683	+
	684	+
	685	+	LCO No. 4566 19 of 138
	686	+
395	687		T9 Over $100,000 $2,500, plus 5% of the excess
396	688		T10 but not over $200,000 over $100,000
397	689		T11 Over $200,000 $7,500, plus 6% of the excess
398	690		T12 over $200,000
399	691
400		-	(2) With respect to the calendar years commencing January 1, 2001, ~~309~~
401		-	January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed ~~310~~
402		-	by section 12-640, as amended by this act, for each such calendar year ~~311~~
403		-	shall be at a rate of the taxable gifts made by the donor during the ~~312~~
404		-	calendar year set forth in the following schedule: ~~313~~
	692	+	(2) With respect to the calendar years commencing January 1, 2001, 534
	693	+	January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed 535
	694	+	by section 12-640, as amended by this act, for each such calendar year 536
	695	+	shall be at a rate of the taxable gifts made by the donor during the 537
	696	+	calendar year set forth in the following schedule: 538
405	697		T13 Amount of Taxable Gifts Rate of Tax
406	698		T14 Over $25,000 $250, plus 2% of the excess
407	699		T15 but not over $50,000 over $25,000
408	700		T16 Over $50,000 $750, plus 3% of the excess
409	701		T17 but not over $75,000 over $50,000
410	702		T18 Over $75,000 $1,500, plus 4% of the excess
411	703		T19 but not over $100,000 over $75,000
412	704		T20 Over $100,000 $2,500, plus 5% of the excess
413	705		T21 but not over $675,000 over $100,000
414		-	T22 Over $675,000 $31,250, plus 6% of the excess Substitute Bill No. 877
415		-
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420		-
	706	+	T22 Over $675,000 $31,250, plus 6% of the excess
421	707		T23 over $675,000
422	708
423		-	(3) With respect to Connecticut taxable gifts, as defined in section 314
424		-	12-643, as amended by this act, made by a donor during a calendar 315
425		-	year commencing on or after January 1, 2005, but prior to January 1, 316
426		-	2010, including the aggregate amount of all Connecticut taxable gifts 317
427		-	made by the donor during all calendar years commencing on or after 318
428		-	January 1, 2005, but prior to January 1, 2010, the tax imposed by 319
429		-	section 12-640, as amended by this act, for the calendar year shall be at 320
430		-	the rate set forth in the following schedule, with a credit allowed 321
431		-	against such tax for any tax previously paid to this state pursuant to 322
432		-	this subdivision: 323
	709	+	(3) With respect to Connecticut taxable gifts, as defined in section 539
	710	+	12-643, as amended by this act, made by a donor during a calendar 540
	711	+	year commencing on or after January 1, 2005, but prior to January 1, 541
	712	+	2010, including the aggregate amount of all Connecticut taxable gifts 542
	713	+	made by the donor during all calendar years commencing on or after 543
	714	+	January 1, 2005, but prior to January 1, 2010, the tax imposed by 544
	715	+	section 12-640, as amended by this act, for the calendar year shall be at 545
	716	+	the rate set forth in the following schedule, with a credit allowed 546
	717	+	against such tax for any tax previously paid to this state pursuant to 547
	718	+	this subdivision: 548
	719	+	Governor's Bill No. 877
	720	+
	721	+
	722	+
	723	+	LCO No. 4566 20 of 138
	724	+
433	725		T24 Amount of Taxable Gifts Rate of Tax
434	726		T25 Not over $2,000,000 None
435	727		T26 Over $2,000,000
436	728		T27 but not over $2,100,000 5.085% of the excess over $0
437	729		T28 Over $2,100,000 $106,800 plus 8% of the excess
438	730		T29 but not over $2,600,000 over $2,100,000
439	731		T30 Over $2,600,000 $146,800 plus 8.8% of the excess
440	732		T31 but not over $3,100,000 over $2,600,000
441	733		T32 Over $3,100,000 $190,800 plus 9.6% of the excess
442	734		T33 but not over $3,600,000 over $3,100,000
443	735		T34 Over $3,600,000 $238,800 plus 10.4% of the excess
444	736		T35 but not over $4,100,000 over $3,600,000
445	737		T36 Over $4,100,000 $290,800 plus 11.2% of the excess
446	738		T37 but not over $5,100,000 over $4,100,000
447	739		T38 Over $5,100,000 $402,800 plus 12% of the excess
448	740		T39 but not over $6,100,000 over $5,100,000
449	741		T40 Over $6,100,000 $522,800 plus 12.8% of the excess
450	742		T41 but not over $7,100,000 over $6,100,000
451	743		T42 Over $7,100,000 $650,800 plus 13.6% of the excess
452	744		T43 but not over $8,100,000 over $7,100,000
453		-	T44 Over $8,100,000 $786,800 plus 14.4% of the excess Substitute Bill No. 877
454		-
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459		-
	745	+	T44 Over $8,100,000 $786,800 plus 14.4% of the excess
460	746		T45 but not over $9,100,000 over $8,100,000
461	747		T46 Over $9,100,000 $930,800 plus 15.2% of the excess
462	748		T47 but not over $10,100,000 over $9,100,000
463	749		T48 Over $10,100,000 $1,082,800 plus 16% of the excess
464	750		T49 over $10,100,000
465	751
466		-	(4) With respect to Connecticut taxable gifts, as defined in section 324
467		-	12-643, as amended by this act, made by a donor during a calendar 325
468		-	year commencing on or after January 1, 2010, but prior to January 1, 326
469		-	2011, including the aggregate amount of all Connecticut taxable gifts 327
470		-	made by the donor during all calendar years commencing on or after 328
471		-	January 1, 2005, the tax imposed by section 12-640, as amended by this 329
472		-	act, for the calendar year shall be at the rate set forth in the following 330
473		-	schedule, with a credit allowed against such tax for any tax previously 331
474		-	paid to this state pursuant to this subdivision or pursuant to 332
475		-	subdivision (3) of this subsection, provided such credit shall not 333
476		-	exceed the amount of tax imposed by this section: 334
	752	+	(4) With respect to Connecticut taxable gifts, as defined in section 549
	753	+	12-643, as amended by this act, made by a donor during a calendar 550
	754	+	year commencing on or after January 1, 2010, but prior to January 1, 551
	755	+	2011, including the aggregate amount of all Connecticut taxable gifts 552
	756	+	made by the donor during all calendar years commencing on or after 553
	757	+	January 1, 2005, the tax imposed by section 12-640, as amended by this 554
	758	+	act, for the calendar year shall be at the rate set forth in the following 555
	759	+	Governor's Bill No. 877
	760	+
	761	+
	762	+
	763	+	LCO No. 4566 21 of 138
	764	+
	765	+	schedule, with a credit allowed against such tax for any tax previously 556
	766	+	paid to this state pursuant to this subdivision or pursuant to 557
	767	+	subdivision (3) of this subsection, provided such credit shall not 558
	768	+	exceed the amount of tax imposed by this section: 559
477	769		T50 Amount of Taxable Gifts Rate of Tax
478	770		T51 Not over $3,500,000 None
479	771		T52 Over $3,500,000 7.2% of the excess
480	772		T53 but not over $3,600,000 over $3,500,000
481	773		T54 Over $3,600,000 $7,200 plus 7.8% of the excess
482	774		T55 but not over $4,100,000 over $3,600,000
483	775		T56 Over $4,100,000 $46,200 plus 8.4% of the excess
484	776		T57 but not over $5,100,000 over $4,100,000
485	777		T58 Over $5,100,000 $130,200 plus 9.0% of the excess
486	778		T59 but not over $6,100,000 over $5,100,000
487	779		T60 Over $6,100,000 $220,200 plus 9.6% of the excess
488	780		T61 but not over $7,100,000 over $6,100,000
489	781		T62 Over $7,100,000 $316,200 plus 10.2% of the excess
490	782		T63 but not over $8,100,000 over $7,100,000
491	783		T64 Over $8,100,000 $418,200 plus 10.8% of the excess
492		-	T65 but not over $9,100,000 over $8,100,000 Substitute Bill No. 877
493		-
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498		-
	784	+	T65 but not over $9,100,000 over $8,100,000
499	785		T66 Over $9,100,000 $526,200 plus 11.4% of the excess
500	786		T67 but not over $10,100,000 over $9,100,000
501	787		T68 Over $10,100,000 $640,200 plus 12% of the excess
502	788		T69 over $10,100,000
503	789
504		-	(5) With respect to Connecticut taxable gifts, as defined in section 335
505		-	12-643, as amended by this act, made by a donor during a calendar 336
506		-	year commencing on or after January 1, 2011, but prior to January 1, 337
507		-	2018, including the aggregate amount of all Connecticut taxable gifts 338
508		-	made by the donor during all calendar years commencing on or after 339
509		-	January 1, 2005, the tax imposed by section 12-640, as amended by this 340
510		-	act, for the calendar year shall be at the rate set forth in the following 341
511		-	schedule, with a credit allowed against such tax for any tax previously 342
512		-	paid to this state pursuant to this subdivision or pursuant to 343
513		-	subdivision (3) or (4) of this subsection, provided such credit shall not 344
514		-	exceed the amount of tax imposed by this section: 345
	790	+	(5) With respect to Connecticut taxable gifts, as defined in section 560
	791	+	12-643, as amended by this act, made by a donor during a calendar 561
	792	+	year commencing on or after January 1, 2011, but prior to January 1, 562
	793	+	2018, including the aggregate amount of all Connecticut taxable gifts 563
	794	+	made by the donor during all calendar years commencing on or after 564
	795	+	January 1, 2005, the tax imposed by section 12-640, as amended by this 565
	796	+	act, for the calendar year shall be at the rate set forth in the following 566
	797	+	schedule, with a credit allowed against such tax for any tax previously 567
	798	+	Governor's Bill No. 877
	799	+
	800	+
	801	+
	802	+	LCO No. 4566 22 of 138
	803	+
	804	+	paid to this state pursuant to this subdivision or pursuant to 568
	805	+	subdivision (3) or (4) of this subsection, provided such credit shall not 569
	806	+	exceed the amount of tax imposed by this section: 570
515	807		T70
516	808		Amount of Taxable Gifts Rate of Tax
517	809		T71 Not over $2,000,000 None
518	810		T72 Over $2,000,000 7.2% of the excess
519	811		T73 but not over $3,600,000 over $2,000,000
520	812		T74 Over $3,600,000 $115,200 plus 7.8% of the excess
521	813		T75 but not over $4,100,000 over $3,600,000
522	814		T76 Over $4,100,000 $154,200 plus 8.4% of the excess
523	815		T77 but not over $5,100,000 over $4,100,000
524	816		T78 Over $5,100,000 $238,200 plus 9.0% of the excess
525	817		T79 but not over $6,100,000 over $5,100,000
526	818		T80 Over $6,100,000 $328,200 plus 9.6% of the excess
527	819		T81 but not over $7,100,000 over $6,100,000
528	820		T82 Over $7,100,000 $424,200 plus 10.2% of the excess
529	821		T83 but not over $8,100,000 over $7,100,000
530	822		T84 Over $8,100,000 $526,200 plus 10.8% of the excess
531	823		T85 but not over $9,100,000 over $8,100,000
532		-	T86 Over $9,100,000 $634,200 plus 11.4% of the excess Substitute Bill No. 877
533		-
534		-
535		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
536		-	R01-SB.docx }
537		-	15 of 104
538		-
	824	+	T86 Over $9,100,000 $634,200 plus 11.4% of the excess
539	825		T87 but not over $10,100,000 over $9,100,000
540	826		T88 Over $10,100,000 $748,200 plus 12% of the excess
541	827		T89 over $10,100,000
542	828
543		-	(6) With respect to Connecticut taxable gifts, as defined in section 346
544		-	12-643, as amended by this act, made by a donor during a calendar 347
545		-	year commencing on or after January 1, 2018, but prior to January 1, 348
546		-	2019, including the aggregate amount of all Connecticut taxable gifts 349
547		-	made by the donor during all calendar years commencing on or after 350
548		-	January 1, 2005, the tax imposed by section 12-640, as amended by this 351
549		-	act, for the calendar year shall be at the rate set forth in the following 352
550		-	schedule, with a credit allowed against such tax for any tax previously 353
551		-	paid to this state pursuant to this subdivision or pursuant to 354
552		-	subdivision (3), (4) or (5) of this subsection, provided such credit shall 355
553		-	not exceed the amount of tax imposed by this section: 356
	829	+	(6) With respect to Connecticut taxable gifts, as defined in section 571
	830	+	12-643, as amended by this act, made by a donor during a calendar 572
	831	+	year commencing on or after January 1, 2018, but prior to January 1, 573
	832	+	2019, including the aggregate amount of all Connecticut taxable gifts 574
	833	+	made by the donor during all calendar years commencing on or after 575
	834	+	January 1, 2005, the tax imposed by section 12-640, as amended by this 576
	835	+	act, for the calendar year shall be at the rate set forth in the following 577
	836	+	schedule, with a credit allowed against such tax for any tax previously 578
	837	+	paid to this state pursuant to this subdivision or pursuant to 579
	838	+	Governor's Bill No. 877
	839	+
	840	+
	841	+
	842	+	LCO No. 4566 23 of 138
	843	+
	844	+	subdivision (3), (4) or (5) of this subsection, provided such credit shall 580
	845	+	not exceed the amount of tax imposed by this section: 581
554	846		T90
555	847		Amount of Taxable Gifts Rate of Tax
556	848		T91 Not over $2,600,000 None
557	849		T92 Over $2,600,000 7.2% of the excess
558	850		T93 but not over $3,600,000 over $2,600,000
559	851		T94 Over $3,600,000 $72,000 plus 7.8% of the excess
560	852		T95 but not over $4,100,000 over $3,600,000
561	853		T96 Over $4,100,000 $111,000 plus 8.4% of the excess
562	854		T97 but not over $5,100,000 over $4,100,000
563	855		T98 Over $5,100,000 $195,000 plus 10% of the excess
564	856		T99 but not over $6,100,000 over $5,100,000
565	857		T100 Over $6,100,000 $295,000 plus 10.4% of the excess
566	858		T101 but not over $7,100,000 over $6,100,000
567	859		T102 Over $7,100,000 $399,000 plus 10.8% of the excess
568	860		T103 but not over $8,100,000 over $7,100,000
569	861		T104 Over $8,100,000 $507,000 plus 11.2% of the excess
570	862		T105 but not over $9,100,000 over $8,100,000
571	863		T106 Over $9,100,000 $619,000 plus 11.6% of the excess
572		-	T107 but not over $10,100,000 over $9,100,000 Substitute Bill No. 877
573		-
574		-
575		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
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577		-	16 of 104
578		-
	864	+	T107 but not over $10,100,000 over $9,100,000
579	865		T108 Over $10,100,000 $735,000 plus 12% of the excess
580	866		T109 over $10,100,000
581	867
582		-	[(7) With respect to Connecticut taxable gifts, as defined in section 357
583		-	12-643, made by a donor during a calendar year commencing on or 358
584		-	after January 1, 2019, but prior to January 1, 2020, including the 359
585		-	aggregate amount of all Connecticut taxable gifts made by the donor 360
586		-	during all calendar years commencing on or after January 1, 2005, the 361
587		-	tax imposed by section 12-640 for the calendar year shall be at the rate 362
588		-	set forth in the following schedule, with a credit allowed against such 363
589		-	tax for any tax previously paid to this state pursuant to this 364
590		-	subdivision or pursuant to subdivision (3), (4), (5) or (6) of this 365
591		-	subsection, provided such credit shall not exceed the amount of tax 366
592		-	imposed by this section: 367
	868	+	[(7) With respect to Connecticut taxable gifts, as defined in section 582
	869	+	12-643, made by a donor during a calendar year commencing on or 583
	870	+	after January 1, 2019, but prior to January 1, 2020, including the 584
	871	+	aggregate amount of all Connecticut taxable gifts made by the donor 585
	872	+	during all calendar years commencing on or after January 1, 2005, the 586
	873	+	tax imposed by section 12-640 for the calendar year shall be at the rate 587
	874	+	set forth in the following schedule, with a credit allowed against such 588
	875	+	tax for any tax previously paid to this state pursuant to this 589
	876	+	subdivision or pursuant to subdivision (3), (4), (5) or (6) of this 590
	877	+	subsection, provided such credit shall not exceed the amount of tax 591
	878	+	Governor's Bill No. 877
	879	+
	880	+
	881	+
	882	+	LCO No. 4566 24 of 138
	883	+
	884	+	imposed by this section: 592
593	885		T110
594	886		Amount of Taxable Gifts Rate of Tax
595	887		T111 Not over $3,600,000 None
596	888		T112 Over $3,600,000 7.8% of the excess
597	889		T113 but not over $4,100,000 over $3,600,000
598	890		T114 Over $4,100,000 $39,000 plus 8.4% of the excess
599	891		T115 but not over $5,100,000 over $4,100,000
600	892		T116 Over $5,100,000 $123,000 plus 10% of the excess
601	893		T117 but not over $6,100,000 over $5,100,000
602	894		T118 Over $6,100,000 $223,000 plus 10.4% of the excess
603	895		T119 but not over $7,100,000 over $6,100,000
604	896		T120 Over $7,100,000 $327,000 plus 10.8% of the excess
605	897		T121 but not over $8,100,000 over $7,100,000
606	898		T122 Over $8,100,000 $435,000 plus 11.2% of the excess
607	899		T123 but not over $9,100,000 over $8,100,000
608	900		T124 Over $9,100,000 $547,000 plus 11.6% of the excess
609	901		T125 but not over $10,100,000 over $9,100,000
610	902		T126 Over $10,100,000 $663,000 plus 12% of the excess
611	903		T127 over $10,100,000
612		-	Substitute Bill No. 877
613		-
614		-
615		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
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617		-	17 of 104
618		-
619		-	(8) With respect to Connecticut taxable gifts, as defined in section 368
620		-	12-643, made by a donor during a calendar year commencing on or 369
621		-	after January 1, 2020, but prior to January 1, 2021, including the 370
622		-	aggregate amount of all Connecticut taxable gifts made by the donor 371
623		-	during all calendar years commencing on or after January 1, 2005, the 372
624		-	tax imposed by section 12-640 for the calendar year shall be at the rate 373
625		-	set forth in the following schedule, with a credit allowed against such 374
626		-	tax for any tax previously paid to this state pursuant to this 375
627		-	subdivision or pursuant to subdivision (3), (4), (5), (6) or (7) of this 376
628		-	subsection, provided such credit shall not exceed the amount of tax 377
629		-	imposed by this section: 378
	904	+
	905	+	(8) With respect to Connecticut taxable gifts, as defined in section 593
	906	+	12-643, made by a donor during a calendar year commencing on or 594
	907	+	after January 1, 2020, but prior to January 1, 2021, including the 595
	908	+	aggregate amount of all Connecticut taxable gifts made by the donor 596
	909	+	during all calendar years commencing on or after January 1, 2005, the 597
	910	+	tax imposed by section 12-640 for the calendar year shall be at the rate 598
	911	+	set forth in the following schedule, with a credit allowed against such 599
	912	+	tax for any tax previously paid to this state pursuant to this 600
	913	+	subdivision or pursuant to subdivision (3), (4), (5), (6) or (7) of this 601
	914	+	subsection, provided such credit shall not exceed the amount of tax 602
	915	+	imposed by this section: 603
630	916		T128 Amount of Taxable Gifts Rate of Tax
	917	+	Governor's Bill No. 877
	918	+
	919	+
	920	+
	921	+	LCO No. 4566 25 of 138
	922	+
631	923		T129 Not over $5,100,000 None
632	924		T130 Over $5,100,000 10% of the excess
633	925		T131 but not over $6,100,000 over $5,100,000
634	926		T132 Over $6,100,000 $100,000 plus 10.4% of the excess
635	927		T133 but not over $7,100,000 over $6,100,000
636	928		T134 Over $7,100,000 $204,000 plus 10.8% of the excess
637	929		T135 but not over $8,100,000 over $7,100,000
638	930		T136 Over $8,100,000 $312,000 plus 11.2% of the excess
639	931		T137 but not over $9,100,000 over $8,100,000
640	932		T138 Over $9,100,000 $424,000 plus 11.6% of the excess
641	933		T139 but not over $10,100,000 over $9,100,000
642	934		T140 Over $10,100,000 $540,000 plus 12% of the excess
643	935		T141 over $10,100,000
644	936
645		-	(9) With respect to Connecticut taxable gifts, as defined in section 379
646		-	12-643, made by a donor during a calendar year commencing on or 380
647		-	after January 1, 2021, but prior to January 1, 2022, including the 381
648		-	aggregate amount of all Connecticut taxable gifts made by the donor 382
649		-	during all calendar years commencing on or after January 1, 2005, the 383
650		-	tax imposed by section 12-640 for the calendar year shall be at the rate 384
651		-	set forth in the following schedule, with a credit allowed against such 385
652		-	tax for any tax previously paid to this state pursuant to this 386 Substitute Bill No. 877
653		-
654		-
655		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
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657		-	18 of 104
658		-
659		-	subdivision or pursuant to subdivision (3), (4), (5), (6), (7) or (8) of this 387
660		-	subsection, provided such credit shall not exceed the amount of tax 388
661		-	imposed by this section: 389
	937	+	(9) With respect to Connecticut taxable gifts, as defined in section 604
	938	+	12-643, made by a donor during a calendar year commencing on or 605
	939	+	after January 1, 2021, but prior to January 1, 2022, including the 606
	940	+	aggregate amount of all Connecticut taxable gifts made by the donor 607
	941	+	during all calendar years commencing on or after January 1, 2005, the 608
	942	+	tax imposed by section 12-640 for the calendar year shall be at the rate 609
	943	+	set forth in the following schedule, with a credit allowed against such 610
	944	+	tax for any tax previously paid to this state pursuant to this 611
	945	+	subdivision or pursuant to subdivision (3), (4), (5), (6), (7) or (8) of this 612
	946	+	subsection, provided such credit shall not exceed the amount of tax 613
	947	+	imposed by this section: 614
662	948		T142 Amount of Taxable Gifts Rate of Tax
663	949		T143 Not over $7,100,000 None
664	950		T144 Over $7,100,000 10.8% of the excess
665	951		T145 but not over $8,100,000 over $7,100,000
666	952		T146 Over $8,100,000 $108,000 plus 11.2% of the excess
667	953		T147 but not over $9,100,000 over $8,100,000
668	954		T148 Over $9,100,000 $220,000 plus 11.6% of the excess
669	955		T149 but not over $10,100,000 over $9,100,000
670	956		T150 Over $10,100,000 $336,000 plus 12% of the excess
	957	+	Governor's Bill No. 877
	958	+
	959	+
	960	+
	961	+	LCO No. 4566 26 of 138
	962	+
671	963		T151 over $10,100,000
672	964
673		-	(10) With respect to Connecticut taxable gifts, as defined in section ~~390~~
674		-	12-643, made by a donor during a calendar year commencing on or ~~391~~
675		-	after January 1, 2022, but prior to January 1, 2023, including the ~~392~~
676		-	aggregate amount of all Connecticut taxable gifts made by the donor ~~393~~
677		-	during all calendar years commencing on or after January 1, 2005, the ~~394~~
678		-	tax imposed by section 12-640 for the calendar year shall be at the rate ~~395~~
679		-	set forth in the following schedule, with a credit allowed against such ~~396~~
680		-	tax for any tax previously paid to this state pursuant to this ~~397~~
681		-	subdivision or pursuant to subdivision (3), (4), (5), (6), (7), (8) or (9) of ~~398~~
682		-	this subsection, provided such credit shall not exceed the amount of ~~399~~
683		-	tax imposed by this section: ~~400~~
	965	+	(10) With respect to Connecticut taxable gifts, as defined in section 615
	966	+	12-643, made by a donor during a calendar year commencing on or 616
	967	+	after January 1, 2022, but prior to January 1, 2023, including the 617
	968	+	aggregate amount of all Connecticut taxable gifts made by the donor 618
	969	+	during all calendar years commencing on or after January 1, 2005, the 619
	970	+	tax imposed by section 12-640 for the calendar year shall be at the rate 620
	971	+	set forth in the following schedule, with a credit allowed against such 621
	972	+	tax for any tax previously paid to this state pursuant to this 622
	973	+	subdivision or pursuant to subdivision (3), (4), (5), (6), (7), (8) or (9) of 623
	974	+	this subsection, provided such credit shall not exceed the amount of 624
	975	+	tax imposed by this section: 625
684	976		T152 Amount of Taxable Gifts Rate of Tax
685	977		T153 Not over $9,100,000 None
686	978		T154 Over $9,100,000 11.6% of the excess
687	979		T155 but not over $10,100,000 over $9,100,000
688	980		T156 Over $10,100,000 $116,000 plus 12% of the excess
689	981		T157 over $10,100,000
690	982
691		-	(11) With respect to Connecticut taxable gifts, as defined in section 401 Substitute Bill No. 877
692		-
693		-
694		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
695		-	R01-SB.docx }
696		-	19 of 104
697		-
698		-	12-643, made by a donor during a calendar year commencing on or 402
699		-	after January 1, 2023, including the aggregate amount of all 403
700		-	Connecticut taxable gifts made by the donor during all calendar years 404
701		-	commencing on or after January 1, 2005, the tax imposed by section 12-405
702		-	640 for the calendar year shall be at the rate set forth in the following 406
703		-	schedule, with a credit allowed against such tax for any tax previously 407
704		-	paid to this state pursuant to this subdivision or pursuant to 408
705		-	subdivision (3), (4), (5), (6), (7), (8), (9) or (10) of this subsection, 409
706		-	provided such credit shall not exceed the amount of tax imposed by 410
707		-	this section: 411
	983	+	(11) With respect to Connecticut taxable gifts, as defined in section 626
	984	+	12-643, made by a donor during a calendar year commencing on or 627
	985	+	after January 1, 2023, including the aggregate amount of all 628
	986	+	Connecticut taxable gifts made by the donor during all calendar years 629
	987	+	commencing on or after January 1, 2005, the tax imposed by section 12-630
	988	+	640 for the calendar year shall be at the rate set forth in the following 631
	989	+	schedule, with a credit allowed against such tax for any tax previously 632
	990	+	paid to this state pursuant to this subdivision or pursuant to 633
	991	+	subdivision (3), (4), (5), (6), (7), (8), (9) or (10) of this subsection, 634
	992	+	provided such credit shall not exceed the amount of tax imposed by 635
	993	+	this section: 636
708	994		T158 Amount of Taxable Gifts Rate of Tax
	995	+	Governor's Bill No. 877
	996	+
	997	+
	998	+
	999	+	LCO No. 4566 27 of 138
	1000	+
709	1001		T159 Not over the None
710	1002		T160 federal basic exclusion amount
711	1003		T161 Over the 12% of the excess over the
712	1004		T162 federal basic exclusion amount federal basic exclusion amount]
713	1005
714		-	(b) The tax imposed by section 12-640, as amended by this act, shall 412
715		-	be paid by the donor. If the gift tax is not paid when due the donee of 413
716		-	any gift shall be personally liable for the tax to the extent of the value 414
717		-	of the gift. 415
718		-	(c) [(1)] With respect to Connecticut taxable gifts, as defined in 416
719		-	section 12-643, as amended by this act, made by a donor during a 417
720		-	calendar year commencing on or after January 1, 2016, but prior to 418
721		-	January 1, 2019, the aggregate amount of tax imposed by section 12-419
722		-	640, as amended by this act, for all calendar years commencing on or 420
723		-	after January 1, 2016, shall not exceed twenty million dollars. 421
724		-	[(2) With respect to Connecticut taxable gifts, as defined in section 422
725		-	12-643, made by a donor during a calendar year commencing on or 423
726		-	after January 1, 2019, the aggregate amount of tax imposed by section 424
727		-	12-640 for all calendar years commencing on or after January 1, 2016, 425
728		-	shall not exceed fifteen million dollars.] 426
729		-	Sec. 6. Subdivision (3) of section 12-643 of the general statutes is 427 Substitute Bill No. 877
730		-
731		-
732		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
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734		-	20 of 104
735		-
736		-	repealed and the following is substituted in lieu thereof (Effective from 428
737		-	passage and applicable to estates of decedents dying on or after January 1, 429
738		-	2019): 430
739		-	(3) "Connecticut taxable gifts" means taxable gifts made during a 431
740		-	calendar year commencing on or after January 1, 2005, but prior to 432
741		-	January 1, 2019, that are, (A) for residents of this state, taxable gifts, 433
742		-	wherever located, but excepting gifts of real estate or tangible personal 434
743		-	property located outside this state, and (B) for nonresidents of this 435
744		-	state, gifts of real estate or tangible personal property located within 436
745		-	this state. 437
746		-	Sec. 7. Subsections (c) to (e), inclusive, of section 12-391 of the 438
747		-	general statutes are repealed and the following is substituted in lieu 439
748		-	thereof (Effective from passage and applicable to estates of decedents dying on 440
749		-	or after January 1, 2019): 441
750		-	(c) For purposes of this section and section 12-392, as amended by 442
751		-	this act: 443
752		-	(1) (A) "Connecticut taxable estate" means, with respect to the 444
753		-	estates of decedents dying on or after January 1, 2005, but prior to 445
754		-	January 1, 2010, (i) the gross estate less allowable deductions, as 446
755		-	determined under Chapter 11 of the Internal Revenue Code, plus (ii) 447
756		-	the aggregate amount of all Connecticut taxable gifts, as defined in 448
757		-	section 12-643, as amended by this act, made by the decedent for all 449
758		-	calendar years beginning on or after January 1, 2005, but prior to 450
759		-	January 1, 2010. The deduction for state death taxes paid under Section 451
760		-	2058 of said code shall be disregarded. 452
761		-	(B) "Connecticut taxable estate" means, with respect to the estates of 453
762		-	decedents dying on or after January 1, 2010, but prior to January 1, 454
763		-	2015, (i) the gross estate less allowable deductions, as determined 455
764		-	under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 456
765		-	amount of all Connecticut taxable gifts, as defined in section 12-643, as 457
766		-	amended by this act, made by the decedent for all calendar years 458 Substitute Bill No. 877
767		-
768		-
769		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
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771		-	21 of 104
772		-
773		-	beginning on or after January 1, 2005, but prior to January 1, 2015. The 459
774		-	deduction for state death taxes paid under Section 2058 of said code 460
775		-	shall be disregarded. 461
776		-	(C) "Connecticut taxable estate" means, with respect to the estates of 462
777		-	decedents dying on or after January 1, 2015, but prior to January 1, 463
778		-	2019, (i) the gross estate less allowable deductions, as determined 464
779		-	under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 465
780		-	amount of all Connecticut taxable gifts, as defined in section 12-643, as 466
781		-	amended by this act, made by the decedent for all calendar years 467
782		-	beginning on or after January 1, 2005, but prior to January 1, 2019, 468
783		-	other than Connecticut taxable gifts that are includable in the gross 469
784		-	estate for federal estate tax purposes of the decedent, plus (iii) the 470
785		-	amount of any tax paid to this state pursuant to section 12-642, as 471
786		-	amended by this act, by the decedent or the decedent's estate on any 472
787		-	gift made by the decedent or the decedent's spouse during the three-473
788		-	year period preceding the date of the decedent's death. The deduction 474
789		-	for state death taxes paid under Section 2058 of the Internal Revenue 475
790		-	Code shall be disregarded. 476
791		-	(D) "Connecticut taxable estate" means, with respect to the estates of 477
792		-	decedents dying on or after January 1, 2019, (i) the gross estate less 478
793		-	allowable deductions, as determined under Chapter 11 of the Internal 479
794		-	Revenue Code, plus (ii) the aggregate amount of all taxable gifts, as 480
795		-	defined in section 12-643, as amended by this act, made by the 481
796		-	decedent for all calendar years beginning on or after January 1, 2005, 482
797		-	but prior to January 1, 2019, other than Connecticut taxable gifts that 483
798		-	are includable in the gross estate for federal tax purposes of the 484
799		-	decedent, plus (iii) the amount of any tax paid to this state pursuant to 485
800		-	section 12-642, as amended by this act, by the decedent or the 486
801		-	decedent's estate on any gift made by the decedent or the decedent's 487
802		-	spouse during the three-year period preceding the date of the 488
803		-	decedent's death, plus (iv) the amount of any taxable gift, as defined in 489
804		-	Section 2503 of the Internal Revenue Code, excluding any taxable gift 490
805		-	made when the decedent was a nonresident or that is real property or 491 Substitute Bill No. 877
806		-
807		-
808		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
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810		-	22 of 104
811		-
812		-	tangible personal property having an actual situs outside this state at 492
813		-	the time the gift was made, that is (I) made on or after January 1, 2019, 493
814		-	(II) not otherwise included in the decedent's gross estate, and (III) 494
815		-	made during the three-year period preceding the date of the decedent's 495
816		-	death. The deduction for state death taxes paid under Section 2058 of 496
817		-	the Internal Revenue Code shall be disregarded. 497
818		-	(2) "Internal Revenue Code" means the Internal Revenue Code of 498
819		-	1986, or any subsequent corresponding internal revenue code of the 499
820		-	United States, as amended from time to time, except in the event of 500
821		-	repeal of the federal estate tax, then all references to the Internal 501
822		-	Revenue Code in this section shall mean the Internal Revenue Code as 502
823		-	in force on the day prior to the effective date of such repeal. 503
824		-	(3) "Gross estate" means the gross estate, for federal estate tax 504
825		-	purposes. 505
826		-	(4) "Federal basic exclusion amount" means the dollar amount 506
827		-	published annually by the Internal Revenue Service at which a 507
828		-	decedent would be required to file a federal estate tax return based on 508
829		-	the value of the decedent's gross estate and federally taxable gifts. 509
830		-	(d) (1) (A) With respect to the estates of decedents who die on or 510
831		-	after January 1, 2005, but prior to January 1, 2010, a tax is imposed 511
832		-	upon the transfer of the estate of each person who at the time of death 512
833		-	was a resident of this state. The amount of the tax shall be determined 513
834		-	using the schedule in subsection (g) of this section. A credit shall be 514
835		-	allowed against such tax for any taxes paid to this state pursuant to 515
836		-	section 12-642, as amended by this act, for Connecticut taxable gifts 516
837		-	made on or after January 1, 2005, but prior to January 1, 2010. 517
838		-	(B) With respect to the estates of decedents who die on or after 518
839		-	January 1, 2010, but prior to January 1, 2015, a tax is imposed upon the 519
840		-	transfer of the estate of each person who at the time of death was a 520
841		-	resident of this state. The amount of the tax shall be determined using 521
842		-	the schedule in subsection (g) of this section. A credit shall be allowed 522 Substitute Bill No. 877
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848		-
849		-	against such tax for any taxes paid to this state pursuant to section 12-523
850		-	642, as amended by this act, for Connecticut taxable gifts made on or 524
851		-	after January 1, 2005, but prior to January 1, 2015, provided such credit 525
852		-	shall not exceed the amount of tax imposed by this section. 526
853		-	(C) With respect to the estates of decedents who die on or after 527
854		-	January 1, 2015, but prior to January 1, 2016, a tax is imposed upon the 528
855		-	transfer of the estate of each person who at the time of death was a 529
856		-	resident of this state. The amount of the tax shall be determined using 530
857		-	the schedule in subsection (g) of this section. A credit shall be allowed 531
858		-	against such tax for (i) any taxes paid to this state pursuant to section 532
859		-	12-642, as amended by this act, by the decedent or the decedent's estate 533
860		-	for Connecticut taxable gifts made on or after January 1, 2005, but prior 534
861		-	to January 1, 2016, and (ii) any taxes paid by the decedent's spouse to 535
862		-	this state pursuant to section 12-642, as amended by this act, for 536
863		-	Connecticut taxable gifts made by the decedent on or after January 1, 537
864		-	2005, but prior to January 1, 2016, that are includable in the gross estate 538
865		-	of the decedent, provided such credit shall not exceed the amount of 539
866		-	tax imposed by this section. 540
867		-	(D) With respect to the estates of decedents who die on or after 541
868		-	January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 542
869		-	transfer of the estate of each person who at the time of death was a 543
870		-	resident of this state. The amount of the tax shall be determined using 544
871		-	the schedule in subsection (g) of this section. A credit shall be allowed 545
872		-	against such tax for (i) any taxes paid to this state pursuant to section 546
873		-	12-642, as amended by this act, by the decedent or the decedent's estate 547
874		-	for Connecticut taxable gifts made on or after January 1, 2005, but prior 548
875		-	to January 1, 2019, and (ii) any taxes paid by the decedent's spouse to 549
876		-	this state pursuant to section 12-642, as amended by this act, for 550
877		-	Connecticut taxable gifts made by the decedent on or after January 1, 551
878		-	2005, but prior to January 1, 2019, that are includable in the gross estate 552
879		-	of the decedent, provided such credit shall not exceed the amount of 553
880		-	tax imposed by this section. In no event shall the amount of tax 554
881		-	payable under this section exceed twenty million dollars. Such twenty-555 Substitute Bill No. 877
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887		-
888		-	million-dollar limit shall be reduced by the amount of (I) any taxes 556
889		-	paid to this state pursuant to section 12-642, as amended by this act, by 557
890		-	the decedent or the decedent's estate for Connecticut taxable gifts 558
891		-	made on or after January 1, 2016, but prior to January 1, 2019, and (II) 559
892		-	any taxes paid by the decedent's spouse to this state pursuant to 560
893		-	section 12-642, as amended by this act, for Connecticut taxable gifts 561
894		-	made by the decedent on or after January 1, 2016, but prior to January 562
895		-	1, 2019, that are includable in the gross estate of the decedent, but in no 563
896		-	event shall the amount be reduced below zero. 564
897		-	(E) With respect to the estates of decedents who die on or after 565
898		-	January 1, 2019, a tax is imposed upon the transfer of the estate of each 566
899		-	person who at the time of death was a resident of this state. The 567
900		-	amount of the tax shall be determined using the schedule in subsection 568
901		-	(g) of this section. A credit shall be allowed against such tax for (i) any 569
902		-	taxes paid to this state pursuant to section 12-642, as amended by this 570
903		-	act, by the decedent or the decedent's estate for Connecticut taxable 571
904		-	gifts made on or after January 1, 2005, and (ii) any taxes paid by the 572
905		-	decedent's spouse to this state pursuant to section 12-642, as amended 573
906		-	by this act, for Connecticut taxable gifts made by the decedent on or 574
907		-	after January 1, 2005, that are includable in the gross estate of the 575
908		-	decedent, provided such credit shall not exceed the amount of tax 576
909		-	imposed by this section. In no event shall the amount of tax payable 577
910		-	under this section exceed fifteen million dollars. Such fifteen-million-578
911		-	dollar limit shall be reduced by the amount of (I) any taxes paid to this 579
912		-	state pursuant to section 12-642, as amended by this act, by the 580
913		-	decedent or the decedent's estate for Connecticut taxable gifts made on 581
914		-	or after January 1, 2016, and (II) any taxes paid by the decedent's 582
915		-	spouse to this state pursuant to section 12-642, as amended by this act, 583
916		-	for Connecticut taxable gifts made by the decedent on or after January 584
917		-	1, 2016, that are includable in the gross estate of the decedent, but in no 585
918		-	event shall the amount be reduced below zero. 586
919		-	(2) If real or tangible personal property of such decedent is located 587
920		-	outside this state, the amount of tax due under this section shall be 588 Substitute Bill No. 877
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926		-
927		-	reduced by an amount computed by multiplying the tax otherwise due 589
928		-	pursuant to subdivision (1) of this subsection, without regard to the 590
929		-	credit allowed for any taxes paid to this state pursuant to section 12-591
930		-	642, as amended by this act, by a fraction, (A) the numerator of which 592
931		-	is the value of that part of the decedent's gross estate attributable to 593
932		-	real or tangible personal property located outside of the state, and (B) 594
933		-	the denominator of which is the value of the decedent's gross estate. 595
934		-	(3) For a resident estate, the state shall have the power to levy the 596
935		-	estate tax upon real property situated in this state, tangible personal 597
936		-	property having an actual situs in this state and intangible personal 598
937		-	property included in the gross estate of the decedent, regardless of 599
938		-	where it is located. The state is permitted to calculate the estate tax and 600
939		-	levy said tax to the fullest extent permitted by the Constitution of the 601
940		-	United States. 602
941		-	(e) (1) (A) With respect to the estates of decedents who die on or 603
942		-	after January 1, 2005, but prior to January 1, 2010, a tax is imposed 604
943		-	upon the transfer of the estate of each person who at the time of death 605
944		-	was a nonresident of this state. The amount of such tax shall be 606
945		-	computed by multiplying (i) the amount of tax determined using the 607
946		-	schedule in subsection (g) of this section by (ii) a fraction, the 608
947		-	numerator of which is the value of that part of the decedent's gross 609
948		-	estate over which this state has jurisdiction for estate tax purposes, and 610
949		-	the denominator of which is the value of the decedent's gross estate. A 611
950		-	credit shall be allowed against such tax for any taxes paid to this state 612
951		-	pursuant to section 12-642, as amended by this act, for Connecticut 613
952		-	taxable gifts made on or after January 1, 2005, but prior to January 1, 614
953		-	2010. 615
954		-	(B) With respect to the estates of decedents who die on or after 616
955		-	January 1, 2010, but prior to January 1, 2016, a tax is imposed upon the 617
956		-	transfer of the estate of each person who at the time of death was a 618
957		-	nonresident of this state. The amount of such tax shall be computed by 619
958		-	multiplying (i) the amount of tax determined using the schedule in 620
959		-	subsection (g) of this section by (ii) a fraction, the numerator of which 621 Substitute Bill No. 877
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965		-
966		-	is the value of that part of the decedent's gross estate over which this 622
967		-	state has jurisdiction for estate tax purposes, and the denominator of 623
968		-	which is the value of the decedent's gross estate. A credit shall be 624
969		-	allowed against such tax for any taxes paid to this state pursuant to 625
970		-	section 12-642, as amended by this act, for Connecticut taxable gifts 626
971		-	made on or after January 1, 2005, but prior to January 1, 2016, provided 627
972		-	such credit shall not exceed the amount of tax imposed by this section. 628
973		-	(C) With respect to the estates of decedents who die on or after 629
974		-	January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 630
975		-	transfer of the estate of each person who at the time of death was a 631
976		-	nonresident of this state. The amount of such tax shall be computed by 632
977		-	multiplying (i) the amount of tax determined using the schedule in 633
978		-	subsection (g) of this section by (ii) a fraction, the numerator of which 634
979		-	is the value of that part of the decedent's gross estate over which this 635
980		-	state has jurisdiction for estate tax purposes, and the denominator of 636
981		-	which is the value of the decedent's gross estate. A credit shall be 637
982		-	allowed against such tax for any taxes paid to this state pursuant to 638
983		-	section 12-642, as amended by this act, for Connecticut taxable gifts 639
984		-	made on or after January 1, 2005, but prior to January 1, 2019, provided 640
985		-	such credit shall not exceed the amount of tax imposed by this section. 641
986		-	In no event shall the amount of tax payable under this section exceed 642
987		-	twenty million dollars. Such twenty-million-dollar limit shall be 643
988		-	reduced by the amount of (I) any taxes paid to this state pursuant to 644
989		-	section 12-642, as amended by this act, by the decedent or the 645
990		-	decedent's estate for Connecticut taxable gifts made on or after January 646
991		-	1, 2016, but prior to January 1, 2019, and (II) any taxes paid by the 647
992		-	decedent's spouse to this state pursuant to section 12-642, as amended 648
993		-	by this act, for Connecticut taxable gifts made by the decedent on or 649
994		-	after January 1, 2016, but prior to January 1, 2019, that are includable in 650
995		-	the gross estate of the decedent, but in no event shall the amount be 651
996		-	reduced below zero. 652
997		-	(D) With respect to the estates of decedents who die on or after 653
998		-	January 1, 2019, a tax is imposed upon the transfer of the estate of each 654 Substitute Bill No. 877
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1004		-
1005		-	person who at the time of death was a nonresident of this state. The 655
1006		-	amount of such tax shall be computed by multiplying the amount of 656
1007		-	tax determined using the schedule in subsection (g) of this section by a 657
1008		-	fraction, the numerator of which is the value of that part of the 658
1009		-	decedent's gross estate over which this state has jurisdiction for estate 659
1010		-	tax purposes, and the denominator of which is the value of the 660
1011		-	decedent's gross estate. A credit shall be allowed against such tax for 661
1012		-	(i) any taxes paid to this state pursuant to section 12-642, as amended 662
1013		-	by this act, by the decedent or the decedent's estate for Connecticut 663
1014		-	taxable gifts made on or after January 1, 2005, and (ii) any taxes paid 664
1015		-	by the decedent's spouse to this state pursuant to section 12-642, as 665
1016		-	amended by this act, for Connecticut taxable gifts made by the 666
1017		-	decedent on or after January 1, 2005, that are includable in the gross 667
1018		-	estate of the decedent, provided such credit shall not exceed the 668
1019		-	amount of tax imposed by this section. In no event shall the amount of 669
1020		-	tax payable under this section exceed fifteen million dollars. Such 670
1021		-	fifteen-million-dollar limit shall be reduced by the amount of (I) any 671
1022		-	taxes paid to this state pursuant to section 12-642, as amended by this 672
1023		-	act, by the decedent or the decedent's estate for Connecticut taxable 673
1024		-	gifts made on or after January 1, 2016, and (II) any taxes paid by the 674
1025		-	decedent's spouse to this state pursuant to section 12-642, as amended 675
1026		-	by this act, for Connecticut taxable gifts made by the decedent on or 676
1027		-	after January 1, 2016, that are includable in the gross estate of the 677
1028		-	decedent, but in no event shall the amount be reduced below zero. 678
1029		-	(2) For a nonresident estate, the state shall have the power to levy 679
1030		-	the estate tax upon all real property situated in this state and tangible 680
1031		-	personal property having an actual situs in this state. The state is 681
1032		-	permitted to calculate the estate tax and levy said tax to the fullest 682
1033		-	extent permitted by the Constitution of the United States. 683
1034		-	Sec. 8. Subparagraph (L) of subdivision (1) of section 12-408 of the 684
1035		-	general statutes is repealed and the following is substituted in lieu 685
1036		-	thereof (Effective July 1, 2019, and applicable to sales occurring on or after 686
1037		-	July 1, 2019): 687 Substitute Bill No. 877
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1043		-
1044		-	(L) (i) For calendar months commencing on or after July 1, 2017, the 688
1045		-	commissioner shall deposit into the Special Transportation Fund 689
1046		-	established under section 13b-68 seven and nine-tenths per cent of the 690
1047		-	amounts received by the state from the tax imposed under 691
1048		-	subparagraph (A) of this subdivision; 692
1049		-	(ii) For calendar months commencing on or after July 1, 2018, but 693
1050		-	prior to July 1, 2019, the commissioner shall deposit into the Special 694
1051		-	Transportation Fund established under section 13b-68 eight per cent of 695
1052		-	the amounts received by the state from the tax imposed under 696
1053		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 697
1054		-	vehicle; 698
1055		-	(iii) For calendar months commencing on or after July 1, 2019, but 699
1056		-	prior to July 1, 2020, the commissioner shall deposit into the Special 700
1057		-	Transportation Fund established under section 13b-68 [thirty-three] 701
1058		-	fifteen per cent of the amounts received by the state from the tax 702
1059		-	imposed under subparagraphs (A) and (H) of this subdivision on the 703
1060		-	sale of a motor vehicle; and 704
1061		-	(iv) For calendar months commencing on or after July 1, 2020, [but 705
1062		-	prior to July 1, 2021,] the commissioner shall deposit into the Special 706
1063		-	Transportation Fund established under section 13b-68 [fifty-six] 707
1064		-	eighteen per cent of the amounts received by the state from the tax 708
1065		-	imposed under subparagraphs (A) and (H) of this subdivision on the 709
1066		-	sale of a motor vehicle. [;] 710
1067		-	[(v) For calendar months commencing on or after July 1, 2021, but 711
1068		-	prior to July 1, 2022, the commissioner shall deposit into the Special 712
1069		-	Transportation Fund established under section 13b-68 seventy-five per 713
1070		-	cent of the amounts received by the state from the tax imposed under 714
1071		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 715
1072		-	vehicle; and 716
1073		-	(vi) For calendar months commencing on or after July 1, 2022, the 717
1074		-	commissioner shall deposit into the Special Transportation Fund 718 Substitute Bill No. 877
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1080		-
1081		-	established under section 13b-68 one hundred per cent of the amounts 719
1082		-	received by the state from the tax imposed under subparagraphs (A) 720
1083		-	and (H) of this subdivision on the sale of a motor vehicle.] 721
1084		-	Sec. 9. Subparagraph (K) of subdivision (1) of section 12-411 of the 722
1085		-	general statutes is repealed and the following is substituted in lieu 723
1086		-	thereof (Effective July 1, 2019, and applicable to sales occurring on or after 724
1087		-	July 1, 2019): 725
1088		-	(K) (i) For calendar months commencing on or after July 1, 2017, the 726
1089		-	commissioner shall deposit into said Special Transportation Fund 727
1090		-	seven and nine-tenths per cent of the amounts received by the state 728
1091		-	from the tax imposed under subparagraph (A) of this subdivision; 729
1092		-	(ii) For calendar months commencing on or after July 1, 2018, but 730
1093		-	prior to July 1, 2019, the commissioner shall deposit into the Special 731
1094		-	Transportation Fund established under section 13b-68 eight per cent of 732
1095		-	the amounts received by the state from the tax imposed under 733
1096		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 734
1097		-	receipt in this state of a motor vehicle; 735
1098		-	(iii) For calendar months commencing on or after July 1, 2019, but 736
1099		-	prior to July 1, 2020, the commissioner shall deposit into the Special 737
1100		-	Transportation Fund established under section 13b-68 [thirty-three] 738
1101		-	fifteen per cent of the amounts received by the state from the tax 739
1102		-	imposed under subparagraphs (A) and (H) of this subdivision on the 740
1103		-	acceptance or receipt in this state of a motor vehicle; and 741
1104		-	(iv) For calendar months commencing on or after July 1, 2020, [but 742
1105		-	prior to July 1, 2021,] the commissioner shall deposit into the Special 743
1106		-	Transportation Fund established under section 13b-68 [fifty-six] 744
1107		-	eighteen per cent of the amounts received by the state from the tax 745
1108		-	imposed under subparagraphs (A) and (H) of this subdivision on the 746
1109		-	acceptance or receipt in this state of a motor vehicle. [;] 747
1110		-	[(v) For calendar months commencing on or after July 1, 2021, but 748
1111		-	prior to July 1, 2022, the commissioner shall deposit into the Special 749 Substitute Bill No. 877
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1117		-
1118		-	Transportation Fund established under section 13b-68 seventy-five per 750
1119		-	cent of the amounts received by the state from the tax imposed under 751
1120		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 752
1121		-	receipt in this state of a motor vehicle; and 753
1122		-	(vi) For calendar months commencing on or after July 1, 2022, the 754
1123		-	commissioner shall deposit into the Special Transportation Fund 755
1124		-	established under section 13b-68 one hundred per cent of the amounts 756
1125		-	received by the state from the tax imposed under subparagraphs (A) 757
1126		-	and (H) of this subdivision on the acceptance or receipt in this state of 758
1127		-	a motor vehicle.] 759
1128		-	Sec. 10. Subdivision (13) of subsection (a) of section 12-407 of the 760
1129		-	general statutes is repealed and the following is substituted in lieu 761
1130		-	thereof (Effective October 1, 2019, and applicable to sales occurring on or 762
1131		-	after October 1, 2019): 763
1132		-	(13) "Tangible personal property" means personal property [which] 764
1133		-	that may be seen, weighed, measured, felt or touched or [which] that is 765
1134		-	in any other manner perceptible to the senses. [including] "Tangible 766
1135		-	personal property" includes (A) digital goods, (B) canned or prewritten 767
1136		-	computer software, [. Tangible personal property includes] including 768
1137		-	canned or prewritten software that is electronically accessed or 769
1138		-	transferred, other than when purchased by a business for use by such 770
1139		-	business, and any additional content related to such software, and (C) 771
1140		-	the distribution, generation or transmission of electricity. 772
1141		-	Sec. 11. Subsection (a) of section 12-407 of the general statutes is 773
1142		-	amended by adding subdivision (43) as follows (Effective October 1, 774
1143		-	2019, and applicable to sales occurring on or after October 1, 2019): 775
1144		-	(NEW) (43) "Digital goods" means audio works, visual works, 776
1145		-	audio-visual works, reading materials or ring tones, that are 777
1146		-	electronically accessed or transferred. 778
1147		-	Sec. 12. Subdivision (5) of section 12-410 of the general statutes is 779
1148		-	repealed and the following is substituted in lieu thereof (Effective 780 Substitute Bill No. 877
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1154		-
1155		-	October 1, 2019, and applicable to sales occurring on or after October 1, 781
1156		-	2019): 782
1157		-	(5) (A) For the purpose of the proper administration of this chapter 783
1158		-	and to prevent evasion of the sales tax, a sale of any service described 784
1159		-	in subdivision (37) of subsection (a) of section 12-407, as amended by 785
1160		-	this act, shall be considered a sale for resale only if the service to be 786
1161		-	resold is an integral, inseparable component part of a service described 787
1162		-	in said subdivision that is to be subsequently sold by the purchaser to 788
1163		-	an ultimate consumer. The purchaser of the service for resale shall 789
1164		-	maintain, in such form as the commissioner requires, records that 790
1165		-	substantiate: (i) From whom the service was purchased and to whom 791
1166		-	the service was sold, (ii) the purchase price of the service, and (iii) the 792
1167		-	nature of the service to demonstrate that the services were an integral, 793
1168		-	inseparable component part of a service described in subdivision (37) 794
1169		-	of subsection (a) of section 12-407, as amended by this act, that was 795
1170		-	subsequently sold to a consumer. 796
1171		-	(B) Notwithstanding the provisions of subparagraph (A) of this 797
1172		-	subdivision, no sale of a service described in subdivision (37) of 798
1173		-	subsection (a) of section 12-407, as amended by this act, by a seller 799
1174		-	shall be considered a sale for resale if such service is to be 800
1175		-	subsequently sold by the purchaser to an ultimate consumer that is 801
1176		-	affiliated with the purchaser in the manner described in subparagraph 802
1177		-	(A) of subdivision (62) of section 12-412. 803
1178		-	(C) For purposes of subparagraph (A) of this subdivision, the sale of 804
1179		-	canned or prewritten computer software shall be considered a sale for 805
1180		-	resale if such software is subsequently sold, licensed or leased 806
1181		-	unaltered by the purchaser to an ultimate consumer. The purchaser of 807
1182		-	the software for resale shall maintain, in such form as the 808
1183		-	commissioner requires, records that substantiate: (i) From whom the 809
1184		-	software was purchased and to whom the software was sold, licensed 810
1185		-	or leased, (ii) the purchase price of the software, and (iii) the nature of 811
1186		-	the transaction with the ultimate consumer to demonstrate that the 812
1187		-	same software was provided unaltered to the ultimate consumer. 813 Substitute Bill No. 877
1188		-
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1193		-
1194		-	(D) For purposes of subparagraph (A) of this subdivision, the sale of 814
1195		-	digital goods or services described in subdivision (37) of subsection (a) 815
1196		-	of section 12-407, as amended by this act, shall be considered a sale for 816
1197		-	resale if such digital goods or services are subsequently resold as an 817
1198		-	integral, inseparable component part of a digital good or a service 818
1199		-	described in subdivision (37) of subsection (a) of section 12-407, as 819
1200		-	amended by this act, by the purchaser to an ultimate consumer. The 820
1201		-	purchaser of the digital goods or services described in subdivision (37) 821
1202		-	of subsection (a) of section 12-407, as amended by this act, for resale 822
1203		-	shall maintain, in such form as the commissioner requires, records that 823
1204		-	substantiate: (i) From whom such digital goods or services were 824
1205		-	purchased and to whom such digital goods or services were resold, (ii) 825
1206		-	the purchase price of such digital goods or services, and (iii) the nature 826
1207		-	of the transaction with the ultimate consumer. 827
1208		-	Sec. 13. Subdivision (37) of subsection (a) of section 12-407 of the 828
1209		-	general statutes is repealed and the following is substituted in lieu 829
1210		-	thereof (Effective October 1, 2019, and applicable to sales occurring on or 830
1211		-	after October 1, 2019): 831
1212		-	(37) "Services" for purposes of subdivision (2) of this subsection, 832
1213		-	means: 833
1214		-	(A) Computer and data processing services, including, but not 834
1215		-	limited to, time, programming, code writing, modification of existing 835
1216		-	programs, feasibility studies and installation and implementation of 836
1217		-	software programs and systems even where such services are rendered 837
1218		-	in connection with the development, creation or production of canned 838
1219		-	or custom software or the license of custom software, but excluding 839
1220		-	digital goods; 840
1221		-	(B) Credit information and reporting services; 841
1222		-	(C) Services by employment agencies and agencies providing 842
1223		-	personnel services; 843
1224		-	(D) Private investigation, protection, patrol work, watchman and 844 Substitute Bill No. 877
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1230		-
1231		-	armored car services, exclusive of (i) services of off-duty police officers 845
1232		-	and off-duty firefighters, and (ii) coin and currency services provided 846
1233		-	to a financial services company by or through another financial 847
1234		-	services company. For purposes of this subparagraph, "financial 848
1235		-	services company" has the same meaning as provided under 849
1236		-	subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 850
1237		-	of section 12-218b; 851
1238		-	(E) Painting and lettering services; 852
1239		-	(F) Photographic studio services; 853
1240		-	(G) Telephone answering services; 854
1241		-	(H) Stenographic services; 855
1242		-	(I) Services to industrial, commercial or income-producing real 856
1243		-	property, including, but not limited to, such services as management, 857
1244		-	electrical, plumbing, painting and carpentry, provided 858
1245		-	income-producing property shall not include property used 859
1246		-	exclusively for residential purposes in which the owner resides and 860
1247		-	which contains no more than three dwelling units, or a housing facility 861
1248		-	for low and moderate income families and persons owned or operated 862
1249		-	by a nonprofit housing organization, as defined in subdivision (29) of 863
1250		-	section 12-412; 864
1251		-	(J) Business analysis, management, management consulting and 865
1252		-	public relations services, excluding (i) any environmental consulting 866
1253		-	services, (ii) any training services provided by an institution of higher 867
1254		-	education licensed or accredited by the Board of Regents for Higher 868
1255		-	Education or Office of Higher Education pursuant to sections 10a-35a 869
1256		-	and 10a-34, respectively, and (iii) on and after January 1, 1994, any 870
1257		-	business analysis, management, management consulting and public 871
1258		-	relations services when such services are rendered in connection with 872
1259		-	an aircraft leased or owned by a certificated air carrier or in connection 873
1260		-	with an aircraft which has a maximum certificated take-off weight of 874
1261		-	six thousand pounds or more; 875 Substitute Bill No. 877
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1267		-
1268		-	(K) Services providing "piped-in" music to business or professional 876
1269		-	establishments; 877
1270		-	(L) Flight instruction and chartering services by a certificated air 878
1271		-	carrier on an aircraft, the use of which for such purposes, but for the 879
1272		-	provisions of subdivision (4) of section 12-410 and subdivision (12) of 880
1273		-	section 12-411, would be deemed a retail sale and a taxable storage or 881
1274		-	use, respectively, of such aircraft by such carrier; 882
1275		-	(M) Motor vehicle repair services, including any type of repair, 883
1276		-	painting or replacement related to the body or any of the operating 884
1277		-	parts of a motor vehicle; 885
1278		-	(N) Motor vehicle parking, including the provision of space, other 886
1279		-	than metered space, in a lot having thirty or more spaces, excluding (i) 887
1280		-	space in a parking lot owned or leased under the terms of a lease of not 888
1281		-	less than ten years' duration and operated by an employer for the 889
1282		-	exclusive use of its employees, (ii) space in municipally operated 890
1283		-	railroad parking facilities in municipalities located within an area of 891
1284		-	the state designated as a severe nonattainment area for ozone under 892
1285		-	the federal Clean Air Act or space in a railroad parking facility in a 893
1286		-	municipality located within an area of the state designated as a severe 894
1287		-	nonattainment area for ozone under the federal Clean Air Act owned 895
1288		-	or operated by the state on or after April 1, 2000, (iii) space in a 896
1289		-	seasonal parking lot provided by an entity subject to the exemption set 897
1290		-	forth in subdivision (1) of section 12-412, and (iv) space in a 898
1291		-	municipally owned parking lot; 899
1292		-	(O) Radio or television repair services; 900
1293		-	(P) Furniture reupholstering and repair services; 901
1294		-	(Q) Repair services to any electrical or electronic device, including, 902
1295		-	but not limited to, equipment used for purposes of refrigeration or 903
1296		-	air-conditioning; 904
1297		-	(R) Lobbying or consulting services for purposes of representing the 905 Substitute Bill No. 877
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1303		-
1304		-	interests of a client in relation to the functions of any governmental 906
1305		-	entity or instrumentality; 907
1306		-	(S) Services of the agent of any person in relation to the sale of any 908
1307		-	item of tangible personal property for such person, exclusive of the 909
1308		-	services of a consignee selling works of art, as defined in subsection (b) 910
1309		-	of section 12-376c, or articles of clothing or footwear intended to be 911
1310		-	worn on or about the human body other than (i) any special clothing 912
1311		-	or footwear primarily designed for athletic activity or protective use 913
1312		-	and which is not normally worn except when used for the athletic 914
1313		-	activity or protective use for which it was designed, and (ii) jewelry, 915
1314		-	handbags, luggage, umbrellas, wallets, watches and similar items 916
1315		-	carried on or about the human body but not worn on the body, under 917
1316		-	consignment, exclusive of services provided by an auctioneer; 918
1317		-	(T) Locksmith services; 919
1318		-	(U) Advertising or public relations services, including layout, art 920
1319		-	direction, graphic design, mechanical preparation or production 921
1320		-	supervision, not related to the development of media advertising or 922
1321		-	cooperative direct mail advertising; 923
1322		-	(V) Landscaping and horticulture services; 924
1323		-	(W) Window cleaning services; 925
1324		-	(X) Maintenance services; 926
1325		-	(Y) Janitorial services; 927
1326		-	(Z) Exterminating services; 928
1327		-	(AA) Swimming pool cleaning and maintenance services; 929
1328		-	(BB) Miscellaneous personal services included in industry group 729 930
1329		-	in the Standard Industrial Classification Manual, United States Office 931
1330		-	of Management and Budget, 1987 edition, or [U.S.] industry group 932
1331		-	532220, 812191, 812199 or 812990 [in] of the North American 933 Substitute Bill No. 877
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1337		-
1338		-	[Industrial] Industry Classification System United States Manual, 934
1339		-	United States Office of Management and Budget (NAICS), 1997 935
1340		-	edition, exclusive of (i) services rendered by massage therapists 936
1341		-	licensed pursuant to chapter 384a, and (ii) services rendered by an 937
1342		-	electrologist licensed pursuant to chapter 388; 938
1343		-	(CC) Any repair or maintenance service to any item of tangible 939
1344		-	personal property including any contract of warranty or service related 940
1345		-	to any such item; 941
1346		-	(DD) Business analysis, management or managing consulting 942
1347		-	services rendered by a general partner, or an affiliate thereof, to a 943
1348		-	limited partnership, provided (i) the general partner, or an affiliate 944
1349		-	thereof, is compensated for the rendition of such services other than 945
1350		-	through a distributive share of partnership profits or an annual 946
1351		-	percentage of partnership capital or assets established in the limited 947
1352		-	partnership's offering statement, and (ii) the general partner, or an 948
1353		-	affiliate thereof, offers such services to others, including any other 949
1354		-	partnership. As used in this subparagraph "an affiliate of a general 950
1355		-	partner" means an entity which is directly or indirectly owned fifty per 951
1356		-	cent or more in common with a general partner; 952
1357		-	(EE) Notwithstanding the provisions of section 12-412, as amended 953
1358		-	by this act, except subdivision (87) of said section 12-412, patient care 954
1359		-	services, as defined in subdivision (29) of this subsection by a hospital, 955
1360		-	except that "sale" and "selling" does not include such patient care 956
1361		-	services for which payment is received by the hospital during the 957
1362		-	period commencing July 1, 2001, and ending June 30, 2003; 958
1363		-	(FF) Health and athletic club services, exclusive of (i) any such 959
1364		-	services provided without any additional charge which are included in 960
1365		-	any dues or initiation fees paid to any such club, which dues or fees 961
1366		-	are subject to tax under section 12-543, and (ii) any such services 962
1367		-	provided by a municipality or an organization that is described in 963
1368		-	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 964
1369		-	corresponding internal revenue code of the United States, as amended 965 Substitute Bill No. 877
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1375		-
1376		-	from time to time; [amended;] 966
1377		-	(GG) Motor vehicle storage services, including storage of motor 967
1378		-	homes, campers and camp trailers, other than the furnishing of space 968
1379		-	as described in subparagraph (P) of subdivision (2) of this subsection; 969
1380		-	(HH) Packing and crating services, other than those provided in 970
1381		-	connection with the sale of tangible personal property by the retailer of 971
1382		-	such property; 972
1383		-	(II) Motor vehicle towing and road services, other than motor 973
1384		-	vehicle repair services; 974
1385		-	(JJ) Intrastate transportation services provided by livery services, 975
1386		-	including limousines, community cars or vans, with a driver. Intrastate 976
1387		-	transportation services shall not include transportation by taxicab, 977
1388		-	motor bus, ambulance or ambulette, scheduled public transportation, 978
1389		-	nonemergency medical transportation provided under the Medicaid 979
1390		-	program, paratransit services provided by agreement or arrangement 980
1391		-	with the state or any political subdivision of the state, dial-a-ride 981
1392		-	services or services provided in connection with funerals; 982
1393		-	(KK) Pet grooming and pet boarding services, except if such services 983
1394		-	are provided as an integral part of professional veterinary services, 984
1395		-	and pet obedience services; 985
1396		-	(LL) Services in connection with a cosmetic medical procedure. For 986
1397		-	purposes of this subparagraph, "cosmetic medical procedure" means 987
1398		-	any medical procedure performed on an individual that is directed at 988
1399		-	improving the individual's appearance and that does not meaningfully 989
1400		-	promote the proper function of the body or prevent or treat illness or 990
1401		-	disease. "Cosmetic medical procedure" includes, but is not limited to, 991
1402		-	cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 992
1403		-	tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 993
1404		-	skin resurfacing, laser treatment of leg veins and sclerotherapy. 994
1405		-	"Cosmetic medical procedure" does not include reconstructive surgery. 995
1406		-	"Reconstructive surgery" includes any surgery performed on abnormal 996 Substitute Bill No. 877
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1412		-
1413		-	structures caused by or related to congenital defects, developmental 997
1414		-	abnormalities, trauma, infection, tumors or disease, including 998
1415		-	procedures to improve function or give a more normal appearance; 999
1416		-	(MM) Manicure services, pedicure services and all other nail 1000
1417		-	services, regardless of where performed, including airbrushing, fills, 1001
1418		-	full sets, nail sculpting, paraffin treatments and polishes; 1002
1419		-	(NN) Spa services, regardless of where performed, including body 1003
1420		-	waxing and wraps, peels, scrubs and facials; [and] 1004
1421		-	(OO) Car wash services, including coin-operated car washes; 1005
1422		-	(PP) Prearranged rides that originate in this state, provided by 1006
1423		-	transportation network companies. As used in this subparagraph, 1007
1424		-	"prearranged ride" and "transportation network company" have the 1008
1425		-	same meanings as provided in section 13b-116. 1009
1426		-	Sec. 14. Subsections (b) and (c) of section 13b-121 of the general 1010
1427		-	statutes are repealed and the following is substituted in lieu thereof 1011
1428		-	(Effective from passage): 1012
1429		-	(b) Each transportation network company shall pay a fee of twenty-1013
1430		-	five cents on each prearranged ride that originates in this state prior to 1014
1431		-	October 1, 2019. 1015
1432		-	(c) On or before the last day of the month next succeeding each 1016
1433		-	calendar quarter, until and including October 31, 2019, each 1017
1434		-	transportation network company shall: (1) File a return electronically 1018
1435		-	for the preceding period with the Commissioner of Revenue Services 1019
1436		-	on such forms as the commissioner may prescribe; and (2) make 1020
1437		-	payment of the fees required under subsection (b) of this section by 1021
1438		-	electronic funds transfer in the manner provided by chapter 228g. Any 1022
1439		-	document received and maintained by the commissioner with respect 1023
1440		-	to a transportation network company shall be return information, as 1024
1441		-	defined in section 12-15, and shall not be subject to disclosure under 1025
1442		-	the Freedom of Information Act, as defined in section 1-200. 1026 Substitute Bill No. 877
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1448		-
1449		-	Sec. 15. Subdivision (1) of section 12-408 of the general statutes, as 1027
1450		-	amended by section 8 of this act, is repealed and the following is 1028
1451		-	substituted in lieu thereof (Effective January 1, 2020, and applicable to 1029
1452		-	sales occurring on or after January 1, 2020): 1030
1453		-	(1) (A) For the privilege of making any sales, as defined in 1031
1454		-	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 1032
1455		-	for a consideration, a tax is hereby imposed on all retailers at the rate 1033
1456		-	of six and thirty-five-hundredths per cent of the gross receipts of any 1034
1457		-	retailer from the sale of all tangible personal property sold at retail or 1035
1458		-	from the rendering of any services constituting a sale in accordance 1036
1459		-	with subdivision (2) of subsection (a) of section 12-407, except, in lieu 1037
1460		-	of said rate, [of six and thirty-five-hundredths per cent,] the rates 1038
1461		-	provided in subparagraphs (B) to [(H)] (I), inclusive, of this 1039
1462		-	subdivision; 1040
1463		-	(B) (i) At a rate of fifteen per cent with respect to each transfer of 1041
1464		-	occupancy, from the total amount of rent received by a hotel or 1042
1465		-	lodging house for the first period not exceeding thirty consecutive 1043
1466		-	calendar days; 1044
1467		-	(ii) At a rate of eleven per cent with respect to each transfer of 1045
1468		-	occupancy, from the total amount of rent received by a bed and 1046
1469		-	breakfast establishment for the first period not exceeding thirty 1047
1470		-	consecutive calendar days; 1048
1471		-	(C) With respect to the sale of a motor vehicle to any individual who 1049
1472		-	is a member of the armed forces of the United States and is on full-time 1050
1473		-	active duty in Connecticut and who is considered, under 50 App USC 1051
1474		-	574, a resident of another state, or to any such individual and the 1052
1475		-	spouse thereof, at a rate of four and one-half per cent of the gross 1053
1476		-	receipts of any retailer from such sales, provided such retailer requires 1054
1477		-	and maintains a declaration by such individual, prescribed as to form 1055
1478		-	by the commissioner and bearing notice to the effect that false 1056
1479		-	statements made in such declaration are punishable, or other evidence, 1057
1480		-	satisfactory to the commissioner, concerning the purchaser's state of 1058 Substitute Bill No. 877
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1486		-
1487		-	residence under 50 App USC 574; 1059
1488		-	(D) (i) With respect to the sales of computer and data processing 1060
1489		-	services occurring on or after July 1, 2001, at the rate of one per cent, 1061
1490		-	and (ii) with respect to sales of Internet access services, on and after 1062
1491		-	July 1, 2001, such services shall be exempt from such tax; 1063
1492		-	(E) (i) With respect to the sales of labor that is otherwise taxable 1064
1493		-	under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 1065
1494		-	section 12-407 on existing vessels and repair or maintenance services 1066
1495		-	on vessels occurring on and after July 1, 1999, such services shall be 1067
1496		-	exempt from such tax; 1068
1497		-	(ii) With respect to the sale of a vessel, a motor for a vessel or a 1069
1498		-	trailer used for transporting a vessel, at the rate of two and ninety-1070
1499		-	nine-hundredths per cent, except that the sale of a vessel shall be 1071
1500		-	exempt from such tax if such vessel is docked in this state for sixty or 1072
1501		-	fewer days in a calendar year; 1073
1502		-	(F) With respect to patient care services for which payment is 1074
1503		-	received by the hospital on or after July 1, 1999, and prior to July 1, 1075
1504		-	2001, at the rate of five and three-fourths per cent and on and after July 1076
1505		-	1, 2001, such services shall be exempt from such tax; 1077
1506		-	(G) With respect to the rental or leasing of a passenger motor 1078
1507		-	vehicle for a period of thirty consecutive calendar days or less, at a rate 1079
1508		-	of nine and thirty-five-hundredths per cent; 1080
1509		-	(H) With respect to the sale of (i) a motor vehicle for a sales price 1081
1510		-	exceeding fifty thousand dollars, at a rate of seven and three-fourths 1082
1511		-	per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1083
1512		-	for a sales price exceeding five thousand dollars, at a rate of seven and 1084
1513		-	three-fourths per cent on the entire sales price, and (iii) an article of 1085
1514		-	clothing or footwear intended to be worn on or about the human body, 1086
1515		-	a handbag, luggage, umbrella, wallet or watch for a sales price 1087
1516		-	exceeding one thousand dollars, at a rate of seven and three-fourths 1088
1517		-	per cent on the entire sales price. For purposes of this subparagraph, 1089 Substitute Bill No. 877
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1523		-
1524		-	"motor vehicle" has the meaning provided in section 14-1, but does not 1090
1525		-	include a motor vehicle subject to the provisions of subparagraph (C) 1091
1526		-	of this subdivision, a motor vehicle having a gross vehicle weight 1092
1527		-	rating over twelve thousand five hundred pounds, or a motor vehicle 1093
1528		-	having a gross vehicle weight rating of twelve thousand five hundred 1094
1529		-	pounds or less that is not used for private passenger purposes, but is 1095
1530		-	designed or used to transport merchandise, freight or persons in 1096
1531		-	connection with any business enterprise and issued a commercial 1097
1532		-	registration or more specific type of registration by the Department of 1098
1533		-	Motor Vehicles; 1099
1534		-	(I) With respect to the sale of meals, as defined in subdivision (13) of 1100
1535		-	section 12-412, sold by an eating establishment, caterer or grocery 1101
1536		-	store; and spirituous, malt or vinous liquors, soft drinks, sodas or 1102
1537		-	beverages such as are ordinarily dispensed at bars and soda fountains, 1103
1538		-	or in connection therewith; at the rate of seven and thirty-five-1104
1539		-	hundredths per cent; 1105
1540		-	[(I)] (J) The rate of tax imposed by this chapter shall be applicable to 1106
1541		-	all retail sales upon the effective date of such rate, except that a new 1107
1542		-	rate [which] that represents an increase in the rate applicable to the 1108
1543		-	sale shall not apply to any sales transaction wherein a binding sales 1109
1544		-	contract without an escalator clause has been entered into prior to the 1110
1545		-	effective date of the new rate and delivery is made within ninety days 1111
1546		-	after the effective date of the new rate. For the purposes of payment of 1112
1547		-	the tax imposed under this section, any retailer of services taxable 1113
1548		-	under subdivision (37) of subsection (a) of section 12-407, as amended 1114
1549		-	by this act, who computes taxable income, for purposes of taxation 1115
1550		-	under the Internal Revenue Code of 1986, or any subsequent 1116
1551		-	corresponding internal revenue code of the United States, as amended 1117
1552		-	from time to time, [amended,] on an accounting basis [which] that 1118
1553		-	recognizes only cash or other valuable consideration actually received 1119
1554		-	as income and who is liable for such tax only due to the rendering of 1120
1555		-	such services may make payments related to such tax for the period 1121
1556		-	during which such income is received, without penalty or interest, 1122 Substitute Bill No. 877
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1562		-
1563		-	without regard to when such service is rendered; 1123
1564		-	[(J)] (K) (i) For calendar quarters ending on or after September 30, 1124
1565		-	2019, the commissioner shall deposit into the regional planning 1125
1566		-	incentive account, established pursuant to section 4-66k, six and seven-1126
1567		-	tenths per cent of the amounts received by the state from the tax 1127
1568		-	imposed under subparagraph (B) of this subdivision and ten and 1128
1569		-	seven-tenths per cent of the amounts received by the state from the tax 1129
1570		-	imposed under subparagraph (G) of this subdivision; 1130
1571		-	(ii) For calendar quarters ending on or after September 30, 2018, the 1131
1572		-	commissioner shall deposit into the Tourism Fund established under 1132
1573		-	section 10-395b ten per cent of the amounts received by the state from 1133
1574		-	the tax imposed under subparagraph (B) of this subdivision; 1134
1575		-	[(K)] (L) For calendar months commencing on or after July 1, 2021, 1135
1576		-	the commissioner shall deposit into the municipal revenue sharing 1136
1577		-	account established pursuant to section 4-66l seven and nine-tenths per 1137
1578		-	cent of the amounts received by the state from the tax imposed under 1138
1579		-	subparagraph (A) of this subdivision; and 1139
1580		-	[(L)] (M) (i) For calendar months commencing on or after July 1, 1140
1581		-	2017, the commissioner shall deposit into the Special Transportation 1141
1582		-	Fund established under section 13b-68 seven and nine-tenths per cent 1142
1583		-	of the amounts received by the state from the tax imposed under 1143
1584		-	subparagraph (A) of this subdivision; 1144
1585		-	(ii) For calendar months commencing on or after July 1, 2018, but 1145
1586		-	prior to July 1, 2019, the commissioner shall deposit into the Special 1146
1587		-	Transportation Fund established under section 13b-68 eight per cent of 1147
1588		-	the amounts received by the state from the tax imposed under 1148
1589		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1149
1590		-	vehicle; 1150
1591		-	(iii) For calendar months commencing on or after July 1, 2019, but 1151
1592		-	prior to July 1, 2020, the commissioner shall deposit into the Special 1152
1593		-	Transportation Fund established under section 13b-68 fifteen per cent 1153 Substitute Bill No. 877
1594		-
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1599		-
1600		-	of the amounts received by the state from the tax imposed under 1154
1601		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1155
1602		-	vehicle; and 1156
1603		-	(iv) For calendar months commencing on or after July 1, 2020, the 1157
1604		-	commissioner shall deposit into the Special Transportation Fund 1158
1605		-	established under section 13b-68 eighteen per cent of the amounts 1159
1606		-	received by the state from the tax imposed under subparagraphs (A) 1160
1607		-	and (H) of this subdivision on the sale of a motor vehicle. 1161
1608		-	Sec. 16. Subdivision (1) of section 12-411 of the general statutes, as 1162
1609		-	amended by section 9 of this act, is repealed and the following is 1163
1610		-	substituted in lieu thereof (Effective January 1, 2020, and applicable to 1164
1611		-	sales occurring on or after January 1, 2020): 1165
1612		-	(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1166
1613		-	consumption or any other use in this state of tangible personal 1167
1614		-	property purchased from any retailer for storage, acceptance, 1168
1615		-	consumption or any other use in this state, the acceptance or receipt of 1169
1616		-	any services constituting a sale in accordance with subdivision (2) of 1170
1617		-	subsection (a) of section 12-407, purchased from any retailer for 1171
1618		-	consumption or use in this state, or the storage, acceptance, 1172
1619		-	consumption or any other use in this state of tangible personal 1173
1620		-	property which has been manufactured, fabricated, assembled or 1174
1621		-	processed from materials by a person, either within or without this 1175
1622		-	state, for storage, acceptance, consumption or any other use by such 1176
1623		-	person in this state, to be measured by the sales price of materials, at 1177
1624		-	the rate of six and thirty-five-hundredths per cent of the sales price of 1178
1625		-	such property or services, except, in lieu of said rate: [of six and thirty-1179
1626		-	five-hundredths per cent;] 1180
1627		-	(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or 1181
1628		-	lodging house for the first period not exceeding thirty consecutive 1182
1629		-	calendar days; 1183
1630		-	(ii) At a rate of eleven per cent of the rent paid to a bed and 1184 Substitute Bill No. 877
1631		-
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1636		-
1637		-	breakfast establishment for the first period not exceeding thirty 1185
1638		-	consecutive calendar days; 1186
1639		-	(C) With respect to the storage, acceptance, consumption or use in 1187
1640		-	this state of a motor vehicle purchased from any retailer for storage, 1188
1641		-	acceptance, consumption or use in this state by any individual who is a 1189
1642		-	member of the armed forces of the United States and is on full-time 1190
1643		-	active duty in Connecticut and who is considered, under 50 App USC 1191
1644		-	574, a resident of another state, or to any such individual and the 1192
1645		-	spouse of such individual at a rate of four and one-half per cent of the 1193
1646		-	sales price of such vehicle, provided such retailer requires and 1194
1647		-	maintains a declaration by such individual, prescribed as to form by 1195
1648		-	the commissioner and bearing notice to the effect that false statements 1196
1649		-	made in such declaration are punishable, or other evidence, 1197
1650		-	satisfactory to the commissioner, concerning the purchaser's state of 1198
1651		-	residence under 50 App USC 574; 1199
1652		-	(D) (i) With respect to the acceptance or receipt in this state of labor 1200
1653		-	that is otherwise taxable under subparagraph (C) or (G) of subdivision 1201
1654		-	(2) of subsection (a) of section 12-407 on existing vessels and repair or 1202
1655		-	maintenance services on vessels occurring on and after July 1, 1999, 1203
1656		-	such services shall be exempt from such tax; 1204
1657		-	(ii) (I) With respect to the storage, acceptance or other use of a vessel 1205
1658		-	in this state, at the rate of two and ninety-nine-hundredths per cent, 1206
1659		-	except that such storage, acceptance or other use shall be exempt from 1207
1660		-	such tax if such vessel is docked in this state for sixty or fewer days in 1208
1661		-	a calendar year; 1209
1662		-	(II) With respect to the storage, acceptance or other use of a motor 1210
1663		-	for a vessel or a trailer used for transporting a vessel in this state, at the 1211
1664		-	rate of two and ninety-nine-hundredths per cent; 1212
1665		-	(E) (i) With respect to the acceptance or receipt in this state of 1213
1666		-	computer and data processing services purchased from any retailer for 1214
1667		-	consumption or use in this state occurring on or after July 1, 2001, at 1215 Substitute Bill No. 877
1668		-
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1673		-
1674		-	the rate of one per cent of such services, and (ii) with respect to the 1216
1675		-	acceptance or receipt in this state of Internet access services, on and 1217
1676		-	after July 1, 2001, such services shall be exempt from such tax; 1218
1677		-	(F) With respect to the acceptance or receipt in this state of patient 1219
1678		-	care services purchased from any retailer for consumption or use in 1220
1679		-	this state for which payment is received by the hospital on or after July 1221
1680		-	1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1222
1681		-	per cent and on and after July 1, 2001, such services shall be exempt 1223
1682		-	from such tax; 1224
1683		-	(G) With respect to the rental or leasing of a passenger motor 1225
1684		-	vehicle for a period of thirty consecutive calendar days or less, at a rate 1226
1685		-	of nine and thirty-five-hundredths per cent; 1227
1686		-	(H) With respect to the acceptance or receipt in this state of (i) a 1228
1687		-	motor vehicle for a sales price exceeding fifty thousand dollars, at a 1229
1688		-	rate of seven and three-fourths per cent on the entire sales price, (ii) 1230
1689		-	jewelry, whether real or imitation, for a sales price exceeding five 1231
1690		-	thousand dollars, at a rate of seven and three-fourths per cent on the 1232
1691		-	entire sales price, and (iii) an article of clothing or footwear intended to 1233
1692		-	be worn on or about the human body, a handbag, luggage, umbrella, 1234
1693		-	wallet or watch for a sales price exceeding one thousand dollars, at a 1235
1694		-	rate of seven and three-fourths per cent on the entire sales price. For 1236
1695		-	purposes of this subparagraph, "motor vehicle" has the meaning 1237
1696		-	provided in section 14-1, but does not include a motor vehicle subject 1238
1697		-	to the provisions of subparagraph (C) of this subdivision, a motor 1239
1698		-	vehicle having a gross vehicle weight rating over twelve thousand five 1240
1699		-	hundred pounds, or a motor vehicle having a gross vehicle weight 1241
1700		-	rating of twelve thousand five hundred pounds or less that is not used 1242
1701		-	for private passenger purposes, but is designed or used to transport 1243
1702		-	merchandise, freight or persons in connection with any business 1244
1703		-	enterprise and issued a commercial registration or more specific type 1245
1704		-	of registration by the Department of Motor Vehicles; 1246
1705		-	(I) With respect to the acceptance or receipt in this state of meals, as 1247 Substitute Bill No. 877
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1711		-
1712		-	defined in subdivision (13) of section 12-412, sold by an eating 1248
1713		-	establishment, caterer or grocery store; and spirituous, malt or vinous 1249
1714		-	liquors, soft drinks, sodas or beverages such as are ordinarily 1250
1715		-	dispensed at bars and soda fountains, or in connection therewith; at 1251
1716		-	the rate of seven and thirty-five-hundredths per cent; 1252
1717		-	[(I)] (J) (i) For calendar quarters ending on or after September 30, 1253
1718		-	2019, the commissioner shall deposit into the regional planning 1254
1719		-	incentive account, established pursuant to section 4-66k, six and seven-1255
1720		-	tenths per cent of the amounts received by the state from the tax 1256
1721		-	imposed under subparagraph (B) of this subdivision and ten and 1257
1722		-	seven-tenths per cent of the amounts received by the state from the tax 1258
1723		-	imposed under subparagraph (G) of this subdivision; 1259
1724		-	(ii) For calendar quarters ending on or after September 30, 2018, the 1260
1725		-	commissioner shall deposit into the Tourism Fund established under 1261
1726		-	section 10-395b ten per cent of the amounts received by the state from 1262
1727		-	the tax imposed under subparagraph (B) of this subdivision; 1263
1728		-	[(J)] (K) For calendar months commencing on or after July 1, 2021, 1264
1729		-	the commissioner shall deposit into said municipal revenue sharing 1265
1730		-	account seven and nine-tenths per cent of the amounts received by the 1266
1731		-	state from the tax imposed under subparagraph (A) of this 1267
1732		-	subdivision; and 1268
1733		-	[(K)] (L) (i) For calendar months commencing on or after July 1, 1269
1734		-	2017, the commissioner shall deposit into said Special Transportation 1270
1735		-	Fund seven and nine-tenths per cent of the amounts received by the 1271
1736		-	state from the tax imposed under subparagraph (A) of this 1272
1737		-	subdivision; 1273
1738		-	(ii) For calendar months commencing on or after July 1, 2018, but 1274
1739		-	prior to July 1, 2019, the commissioner shall deposit into the Special 1275
1740		-	Transportation Fund established under section 13b-68 eight per cent of 1276
1741		-	the amounts received by the state from the tax imposed under 1277
1742		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 1278 Substitute Bill No. 877
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1748		-
1749		-	receipt in this state of a motor vehicle; 1279
1750		-	(iii) For calendar months commencing on or after July 1, 2019, but 1280
1751		-	prior to July 1, 2020, the commissioner shall deposit into the Special 1281
1752		-	Transportation Fund established under section 13b-68 fifteen per cent 1282
1753		-	of the amounts received by the state from the tax imposed under 1283
1754		-	subparagraphs (A) and (H) of this subdivision on the acceptance or 1284
1755		-	receipt in this state of a motor vehicle; and 1285
1756		-	(iv) For calendar months commencing on or after July 1, 2020, the 1286
1757		-	commissioner shall deposit into the Special Transportation Fund 1287
1758		-	established under section 13b-68 eighteen per cent of the amounts 1288
1759		-	received by the state from the tax imposed under subparagraphs (A) 1289
1760		-	and (H) of this subdivision on the acceptance or receipt in this state of 1290
1761		-	a motor vehicle. 1291
1762		-	Sec. 17. Subdivision (37) of subsection (a) of section 12-407 of the 1292
1763		-	general statutes, as amended by section 13 of this act, is repealed and 1293
1764		-	the following is substituted in lieu thereof (Effective January 1, 2020, and 1294
1765		-	applicable to sales occurring on or after January 1, 2020): 1295
1766		-	(37) "Services" for purposes of subdivision (2) of this subsection, 1296
1767		-	means: 1297
1768		-	(A) Computer and data processing services, including, but not 1298
1769		-	limited to, time, programming, code writing, modification of existing 1299
1770		-	programs, feasibility studies and installation and implementation of 1300
1771		-	software programs and systems even where such services are rendered 1301
1772		-	in connection with the development, creation or production of canned 1302
1773		-	or custom software or the license of custom software, but excluding 1303
1774		-	digital goods; 1304
1775		-	(B) Credit information and reporting services; 1305
1776		-	(C) Services by employment agencies and agencies providing 1306
1777		-	personnel services; 1307 Substitute Bill No. 877
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1783		-
1784		-	(D) Private investigation, protection, patrol work, watchman and 1308
1785		-	armored car services, exclusive of (i) services of off-duty police officers 1309
1786		-	and off-duty firefighters, and (ii) coin and currency services provided 1310
1787		-	to a financial services company by or through another financial 1311
1788		-	services company. For purposes of this subparagraph, "financial 1312
1789		-	services company" has the same meaning as provided under 1313
1790		-	subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 1314
1791		-	of section 12-218b; 1315
1792		-	(E) Painting and lettering services; 1316
1793		-	(F) Photographic studio services; 1317
1794		-	(G) Telephone answering services; 1318
1795		-	(H) Stenographic services; 1319
1796		-	(I) Services to industrial, commercial or income-producing real 1320
1797		-	property, including, but not limited to, such services as management, 1321
1798		-	electrical, plumbing, painting and ca rpentry, provided 1322
1799		-	income-producing property shall not include property used 1323
1800		-	exclusively for residential purposes in which the owner resides and 1324
1801		-	which contains no more than three dwelling units, or a housing facility 1325
1802		-	for low and moderate income families and persons owned or operated 1326
1803		-	by a nonprofit housing organization, as defined in subdivision (29) of 1327
1804		-	section 12-412; 1328
1805		-	(J) Business analysis, management, management consulting and 1329
1806		-	public relations services, excluding (i) any environmental consulting 1330
1807		-	services, (ii) any training services provided by an institution of higher 1331
1808		-	education licensed or accredited by the Board of Regents for Higher 1332
1809		-	Education or Office of Higher Education pursuant to sections 10a-35a 1333
1810		-	and 10a-34, respectively, and (iii) on and after January 1, 1994, any 1334
1811		-	business analysis, management, management consulting and public 1335
1812		-	relations services when such services are rendered in connection with 1336
1813		-	an aircraft leased or owned by a certificated air carrier or in connection 1337
1814		-	with an aircraft which has a maximum certificated take-off weight of 1338 Substitute Bill No. 877
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1820		-
1821		-	six thousand pounds or more; 1339
1822		-	(K) Services providing "piped-in" music to business or professional 1340
1823		-	establishments; 1341
1824		-	(L) Flight instruction and chartering services by a certificated air 1342
1825		-	carrier on an aircraft, the use of which for such purposes, but for the 1343
1826		-	provisions of subdivision (4) of section 12-410 and subdivision (12) of 1344
1827		-	section 12-411, would be deemed a retail sale and a taxable storage or 1345
1828		-	use, respectively, of such aircraft by such carrier; 1346
1829		-	(M) Motor vehicle repair services, including any type of repair, 1347
1830		-	painting or replacement related to the body or any of the operating 1348
1831		-	parts of a motor vehicle; 1349
1832		-	(N) Motor vehicle parking, [including the provision of space, other 1350
1833		-	than metered space, in a lot having thirty or more spaces,] excluding 1351
1834		-	[(i)] space in a parking lot owned or leased under the terms of a lease 1352
1835		-	of not less than ten years' duration and operated by an employer for 1353
1836		-	the exclusive use of its employees; [, (ii) space in municipally operated 1354
1837		-	railroad parking facilities in municipalities located within an area of 1355
1838		-	the state designated as a severe nonattainment area for ozone under 1356
1839		-	the federal Clean Air Act or space in a railroad parking facility in a 1357
1840		-	municipality located within an area of the state designated as a severe 1358
1841		-	nonattainment area for ozone under the federal Clean Air Act owned 1359
1842		-	or operated by the state on or after April 1, 2000, (iii) space in a 1360
1843		-	seasonal parking lot provided by an entity subject to the exemption set 1361
1844		-	forth in subdivision (1) of section 12-412, and (iv) space in a 1362
1845		-	municipally owned parking lot;] 1363
1846		-	(O) Radio or television repair services; 1364
1847		-	(P) Furniture reupholstering and repair services; 1365
1848		-	(Q) Repair services to any electrical or electronic device, including, 1366
1849		-	but not limited to, equipment used for purposes of refrigeration or 1367
1850		-	air-conditioning; 1368 Substitute Bill No. 877
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1856		-
1857		-	(R) Lobbying or consulting services for purposes of representing the 1369
1858		-	interests of a client in relation to the functions of any governmental 1370
1859		-	entity or instrumentality; 1371
1860		-	(S) Services of the agent of any person in relation to the sale of any 1372
1861		-	item of tangible personal property for such person, exclusive of the 1373
1862		-	services of a consignee selling works of art, as defined in subsection (b) 1374
1863		-	of section 12-376c, or articles of clothing or footwear intended to be 1375
1864		-	worn on or about the human body other than (i) any special clothing 1376
1865		-	or footwear primarily designed for athletic activity or protective use 1377
1866		-	and which is not normally worn except when used for the athletic 1378
1867		-	activity or protective use for which it was designed, and (ii) jewelry, 1379
1868		-	handbags, luggage, umbrellas, wallets, watches and similar items 1380
1869		-	carried on or about the human body but not worn on the body, under 1381
1870		-	consignment, exclusive of services provided by an auctioneer; 1382
1871		-	(T) Locksmith services; 1383
1872		-	(U) Advertising or public relations services, including layout, art 1384
1873		-	direction, graphic design, mechanical preparation or production 1385
1874		-	supervision, not related to the development of media advertising or 1386
1875		-	cooperative direct mail advertising; 1387
1876		-	(V) Landscaping and horticulture services; 1388
1877		-	(W) Window cleaning services; 1389
1878		-	(X) Maintenance services; 1390
1879		-	(Y) Janitorial services; 1391
1880		-	(Z) Exterminating services; 1392
1881		-	(AA) Swimming pool cleaning and maintenance services; 1393
1882		-	(BB) Miscellaneous personal services included in industry group 729 1394
1883		-	in the Standard Industrial Classification Manual, United States Office 1395
1884		-	of Management and Budget, 1987 edition, or industry group 532220, 1396 Substitute Bill No. 877
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1890		-
1891		-	812191, 812199 or 812990 of the North American Industry 1397
1892		-	Classification System United States Manual, United States Office of 1398
1893		-	Management and Budget (NAICS), 1997 edition, exclusive of (i) 1399
1894		-	services rendered by massage therapists licensed pursuant to chapter 1400
1895		-	384a, and (ii) services rendered by an electrologist licensed pursuant to 1401
1896		-	chapter 388; 1402
1897		-	(CC) Any repair or maintenance service to any item of tangible 1403
1898		-	personal property including any contract of warranty or service related 1404
1899		-	to any such item; 1405
1900		-	(DD) Business analysis, management or managing consulting 1406
1901		-	services rendered by a general partner, or an affiliate thereof, to a 1407
1902		-	limited partnership, provided (i) the general partner, or an affiliate 1408
1903		-	thereof, is compensated for the rendition of such services other than 1409
1904		-	through a distributive share of partnership profits or an annual 1410
1905		-	percentage of partnership capital or assets established in the limited 1411
1906		-	partnership's offering statement, and (ii) the general partner, or an 1412
1907		-	affiliate thereof, offers such services to others, including any other 1413
1908		-	partnership. As used in this subparagraph "an affiliate of a general 1414
1909		-	partner" means an entity which is directly or indirectly owned fifty per 1415
1910		-	cent or more in common with a general partner; 1416
1911		-	(EE) Notwithstanding the provisions of section 12-412, as amended 1417
1912		-	by this act, except subdivision (87) of said section 12-412, patient care 1418
1913		-	services, as defined in subdivision (29) of this subsection by a hospital, 1419
1914		-	except that "sale" and "selling" does not include such patient care 1420
1915		-	services for which payment is received by the hospital during the 1421
1916		-	period commencing July 1, 2001, and ending June 30, 2003; 1422
1917		-	(FF) Health and athletic club services, exclusive of (i) any such 1423
1918		-	services provided without any additional charge which are included in 1424
1919		-	any dues or initiation fees paid to any such club, which dues or fees 1425
1920		-	are subject to tax under section 12-543, and (ii) any such services 1426
1921		-	provided by a municipality or an organization that is described in 1427
1922		-	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1428 Substitute Bill No. 877
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1928		-
1929		-	corresponding internal revenue code of the United States, as amended 1429
1930		-	from time to time; 1430
1931		-	(GG) Motor vehicle storage services, including storage of motor 1431
1932		-	homes, campers and camp trailers, other than the furnishing of space 1432
1933		-	as described in subparagraph (P) of subdivision (2) of this subsection; 1433
1934		-	(HH) Packing and crating services, other than those provided in 1434
1935		-	connection with the sale of tangible personal property by the retailer of 1435
1936		-	such property; 1436
1937		-	(II) Motor vehicle towing and road services, other than motor 1437
1938		-	vehicle repair services; 1438
1939		-	(JJ) Intrastate transportation services provided by livery services, 1439
1940		-	including limousines, community cars or vans, with a driver. Intrastate 1440
1941		-	transportation services shall not include transportation by taxicab, 1441
1942		-	motor bus, ambulance or ambulette, scheduled public transportation, 1442
1943		-	nonemergency medical transportation provided under the Medicaid 1443
1944		-	program, paratransit services provided by agreement or arrangement 1444
1945		-	with the state or any political subdivision of the state, dial-a-ride 1445
1946		-	services or services provided in connection with funerals; 1446
1947		-	(KK) Pet grooming and pet boarding services, except if such services 1447
1948		-	are provided as an integral part of professional veterinary services, 1448
1949		-	and pet obedience services; 1449
1950		-	(LL) Services in connection with a cosmetic medical procedure. For 1450
1951		-	purposes of this subparagraph, "cosmetic medical procedure" means 1451
1952		-	any medical procedure performed on an individual that is directed at 1452
1953		-	improving the individual's appearance and that does not meaningfully 1453
1954		-	promote the proper function of the body or prevent or treat illness or 1454
1955		-	disease. "Cosmetic medical procedure" includes, but is not limited to, 1455
1956		-	cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 1456
1957		-	tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 1457
1958		-	skin resurfacing, laser treatment of leg veins and sclerotherapy. 1458
1959		-	"Cosmetic medical procedure" does not include reconstructive surgery. 1459 Substitute Bill No. 877
1960		-
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1965		-
1966		-	"Reconstructive surgery" includes any surgery performed on abnormal 1460
1967		-	structures caused by or related to congenital defects, developmental 1461
1968		-	abnormalities, trauma, infection, tumors or disease, including 1462
1969		-	procedures to improve function or give a more normal appearance; 1463
1970		-	(MM) Manicure services, pedicure services and all other nail 1464
1971		-	services, regardless of where performed, including airbrushing, fills, 1465
1972		-	full sets, nail sculpting, paraffin treatments and polishes; 1466
1973		-	(NN) Spa services, regardless of where performed, including body 1467
1974		-	waxing and wraps, peels, scrubs and facials; 1468
1975		-	(OO) Car wash services, including coin-operated car washes; 1469
1976		-	(PP) Prearranged rides that originate in this state, provided by 1470
1977		-	transportation network companies. As used in this subparagraph, 1471
1978		-	"prearranged ride" and "transportation network company" have the 1472
1979		-	same meanings as provided in section 13b-116; [.] 1473
1980		-	(QQ) Dry cleaning services and laundry services, excluding coin-1474
1981		-	operated services; 1475
1982		-	(RR) Interior design services described in industry group 54141 of 1476
1983		-	the NAICS, 2017 edition, as amended from time to time. 1477
1984		-	Sec. 18. Section 12-412 of the general statutes is amended by adding 1478
1985		-	subdivision (124) as follows (Effective January 1, 2020, and applicable to 1479
1986		-	sales occurring on or after January 1, 2020): 1480
1987		-	(NEW) (124) (A) Sales of interior design services set forth in 1481
1988		-	subparagraph (RR) of subdivision (37) of subsection (a) of section 12-1482
1989		-	407, as amended by this act, that are purchased by a business for use 1483
1990		-	by such business. 1484
1991		-	(B) To qualify for such exemption, each purchaser of the services 1485
1992		-	exempt pursuant to the provisions of this subdivision shall present a 1486
1993		-	certificate to the retailer, in such form as the commissioner may 1487 Substitute Bill No. 877
1994		-
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1999		-
2000		-	prescribe, certifying that the purchaser is a business and is purchasing 1488
2001		-	such services for its business. The purchaser of the services shall be 1489
2002		-	liable for the tax otherwise imposed if the certificate is improperly 1490
2003		-	provided to the seller, and any person who wilfully delivers a 1491
2004		-	certificate that is known to be fraudulent or false in any material 1492
2005		-	matter to a seller shall, in addition to any other penalty provided by 1493
2006		-	law, be guilty of a class D felony. 1494
2007		-	Sec. 19. (NEW) (Effective July 1, 2019) (a) The Commissioner of 1495
2008		-	Revenue Services shall require taxpayers required to collect the tax 1496
2009		-	under chapter 219 of the general statutes to enter into an agreement 1497
2010		-	with an electronic payment processing company to provide automated 1498
2011		-	sales tax collection and remittance, whereby such company (1) 1499
2012		-	segregates an amount equal to the sales tax, if any, for each sales 1500
2013		-	transaction payment processed by such company, and (2) remits such 1501
2014		-	amount automatically to the Department of Revenue Services within 1502
2015		-	twenty-four hours after such sales transaction. 1503
2016		-	(b) The commissioner may issue a request for proposals to evaluate 1504
2017		-	companies that are eligible to provide automated sales tax collection 1505
2018		-	and remittance and shall publish annually a list of such companies that 1506
2019		-	are approved by the commissioner. 1507
2020		-	Sec. 20. Section 12-704c of the general statutes is repealed and the 1508
2021		-	following is substituted in lieu thereof (Effective from passage): 1509
2022		-	(a) Any resident of this state, as defined in subdivision (1) of 1510
2023		-	subsection (a) of section 12-701, subject to the tax under this chapter for 1511
2024		-	any taxable year shall be entitled to a credit in determining the amount 1512
2025		-	of tax liability under this chapter, for all or a portion, as permitted by 1513
2026		-	this section, of the amount of property tax, as defined in this section, 1514
2027		-	first becoming due and actually paid during such taxable year by such 1515
2028		-	person on such person's primary residence or motor vehicle in 1516
2029		-	accordance with the provisions of this section, provided in the case of a 1517
2030		-	person who files a return under the federal income tax for such taxable 1518
2031		-	year as an unmarried individual, a married individual filing separately 1519 Substitute Bill No. 877
2032		-
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2037		-
2038		-	or a head of household, one motor vehicle shall be eligible for such 1520
2039		-	credit and in the case of a husband and wife who file a return under 1521
2040		-	federal income tax for such taxable year as married individuals filing 1522
2041		-	jointly, no more than two motor vehicles shall be eligible for a credit 1523
2042		-	under the provisions of this section. 1524
2043		-	(b) (1) The credit allowed under this section shall not exceed (A) [for 1525
2044		-	taxable years commencing on or after January 1, 2006, but prior to 1526
2045		-	January 1, 2011, five hundred dollars; (B)] for taxable years 1527
2046		-	commencing on or after January 1, 2011, but prior to January 1, 2016, 1528
2047		-	three hundred dollars; and [(C)] (B) for taxable years commencing on 1529
2048		-	or after January 1, 2016, two hundred dollars. In the case of any 1530
2049		-	husband and wife who file a return under the federal income tax for 1531
2050		-	such taxable year as married individuals filing a joint return, the credit 1532
2051		-	allowed, in the aggregate, shall not exceed such [amounts] amount for 1533
2052		-	each such taxable year. 1534
2053		-	(2) Notwithstanding the provisions of subsection (a) of this section, 1535
2054		-	for the taxable years commencing January 1, 2017, [and January 1, 1536
2055		-	2018] to January 1, 2020, inclusive, the credit under this section shall be 1537
2056		-	allowed only for a resident of this state (A) who has attained age sixty-1538
2057		-	five before the close of the applicable taxable year, or (B) who files a 1539
2058		-	return under the federal income tax for the applicable taxable year 1540
2059		-	validly claiming one or more dependents. 1541
2060		-	[(c) (1) (A) For taxable years commencing prior to January 1, 2000, in 1542
2061		-	the case of any such taxpayer who files under the federal income tax 1543
2062		-	for such taxable year as an unmarried individual whose Connecticut 1544
2063		-	adjusted gross income exceeds fifty-two thousand five hundred 1545
2064		-	dollars, the amount of the credit that exceeds one hundred dollars shall 1546
2065		-	be reduced by ten per cent for each ten thousand dollars, or fraction 1547
2066		-	thereof, by which the taxpayer's Connecticut adjusted gross income 1548
2067		-	exceeds said amount. 1549
2068		-	(B) For taxable years commencing on or after January 1, 2000, but 1550
2069		-	prior to January 1, 2001, in the case of any such taxpayer who files 1551 Substitute Bill No. 877
2070		-
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2075		-
2076		-	under the federal income tax for such taxable year as an unmarried 1552
2077		-	individual whose Connecticut adjusted gross income exceeds fifty-1553
2078		-	three thousand five hundred dollars, the amount of the credit that 1554
2079		-	exceeds one hundred dollars shall be reduced by ten per cent for each 1555
2080		-	ten thousand dollars, or fraction thereof, by which the taxpayer's 1556
2081		-	Connecticut adjusted gross income exceeds said amount. 1557
2082		-	(C) For taxable years commencing on or after January 1, 2001, but 1558
2083		-	prior to January 1, 2004, in the case of any such taxpayer who files 1559
2084		-	under the federal income tax for such taxable year as an unmarried 1560
2085		-	individual whose Connecticut adjusted gross income exceeds fifty-four 1561
2086		-	thousand five hundred dollars, the amount of the credit shall be 1562
2087		-	reduced by ten per cent for each ten thousand dollars, or fraction 1563
2088		-	thereof, by which the taxpayer's Connecticut adjusted gross income 1564
2089		-	exceeds said amount. 1565
2090		-	(D) For taxable years commencing on or after January 1, 2004, but 1566
2091		-	prior to January 1, 2007, in the case of any such taxpayer who files 1567
2092		-	under the federal income tax for such taxable year as an unmarried 1568
2093		-	individual whose Connecticut adjusted gross income exceeds fifty-five 1569
2094		-	thousand dollars, the amount of the credit shall be reduced by ten per 1570
2095		-	cent for each ten thousand dollars, or fraction thereof, by which the 1571
2096		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 1572
2097		-	(E) For taxable years commencing on or after January 1, 2007, but 1573
2098		-	prior to January 1, 2008, in the case of any such taxpayer who files 1574
2099		-	under the federal income tax for such taxable year as an unmarried 1575
2100		-	individual whose Connecticut adjusted gross income exceeds fifty-five 1576
2101		-	thousand five hundred dollars, the amount of the credit shall be 1577
2102		-	reduced by ten per cent for each ten thousand dollars, or fraction 1578
2103		-	thereof, by which the taxpayer's Connecticut adjusted gross income 1579
2104		-	exceeds said amount. 1580
2105		-	(F) For taxable years commencing on or after January 1, 2008, but 1581
2106		-	prior to January 1, 2011, in the case of any such taxpayer who files 1582
2107		-	under the federal income tax for such taxable year as an unmarried 1583 Substitute Bill No. 877
2108		-
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2113		-
2114		-	individual whose Connecticut adjusted gross income exceeds fifty-six 1584
2115		-	thousand five hundred dollars, the amount of the credit shall be 1585
2116		-	reduced by ten per cent for each ten thousand dollars, or fraction 1586
2117		-	thereof, by which the taxpayer's Connecticut adjusted gross income 1587
2118		-	exceeds said amount.] 1588
2119		-	[(G)] (c) (1) (A) For taxable years commencing on or after January 1, 1589
2120		-	2011, but prior to January 1, 2013, in the case of any such taxpayer who 1590
2121		-	files under the federal income tax for such taxable year as an 1591
2122		-	unmarried individual whose Connecticut adjusted gross income 1592
2123		-	exceeds fifty-six thousand five hundred dollars, the amount of the 1593
2124		-	credit shall be reduced by fifteen per cent for each ten thousand 1594
2125		-	dollars, or fraction thereof, by which the taxpayer's Connecticut 1595
2126		-	adjusted gross income exceeds said amount. 1596
2127		-	[(H)] (B) For taxable years commencing on or after January 1, 2013, 1597
2128		-	but prior to January 1, 2014, in the case of any such taxpayer who files 1598
2129		-	under the federal income tax for such taxable year as an unmarried 1599
2130		-	individual whose Connecticut adjusted gross income exceeds sixty 1600
2131		-	thousand five hundred dollars, the amount of the credit shall be 1601
2132		-	reduced by fifteen per cent for each ten thousand dollars, or fraction 1602
2133		-	thereof, by which the taxpayer's Connecticut adjusted gross income 1603
2134		-	exceeds said amount. 1604
2135		-	[(I)] (C) For taxable years commencing on or after January 1, 2014, 1605
2136		-	but prior to January 1, 2016, in the case of any such taxpayer who files 1606
2137		-	under the federal income tax for such taxable year as an unmarried 1607
2138		-	individual whose Connecticut adjusted gross income exceeds forty-1608
2139		-	seven thousand five hundred dollars, the amount of the credit shall be 1609
2140		-	reduced by fifteen per cent for each ten thousand dollars, or fraction 1610
2141		-	thereof, by which the taxpayer's Connecticut adjusted gross income 1611
2142		-	exceeds said amount. 1612
2143		-	[(J)] (D) For taxable years commencing on or after January 1, 2016, in 1613
2144		-	the case of any such taxpayer who files under the federal income tax 1614
2145		-	for such taxable year as an unmarried individual whose Connecticut 1615 Substitute Bill No. 877
2146		-
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2151		-
2152		-	adjusted gross income exceeds forty-nine thousand five hundred 1616
2153		-	dollars, the amount of the credit shall be reduced by fifteen per cent for 1617
2154		-	each ten thousand dollars, or fraction thereof, by which the taxpayer's 1618
2155		-	Connecticut adjusted gross income exceeds said amount. 1619
2156		-	(2) In the case of any such taxpayer who files under the federal 1620
2157		-	income tax for such taxable year as a married individual filing 1621
2158		-	separately whose Connecticut adjusted gross income exceeds thirty-1622
2159		-	five thousand two hundred fifty dollars, the amount of the credit shall 1623
2160		-	be reduced by fifteen per cent for each five thousand dollars, or 1624
2161		-	fraction thereof, by which the taxpayer's Connecticut adjusted gross 1625
2162		-	income exceeds said amount. 1626
2163		-	(3) In the case of a taxpayer who files under the federal income tax 1627
2164		-	for such taxable year as a head of household whose Connecticut 1628
2165		-	adjusted gross income exceeds fifty-four thousand five hundred 1629
2166		-	dollars, the amount of the credit shall be reduced by fifteen per cent for 1630
2167		-	each ten thousand dollars or fraction thereof, by which the taxpayer's 1631
2168		-	Connecticut adjusted gross income exceeds said amount. 1632
2169		-	(4) In the case of a taxpayer who files under federal income tax for 1633
2170		-	such taxable year as married individuals filing jointly whose 1634
2171		-	Connecticut adjusted gross income exceeds seventy thousand five 1635
2172		-	hundred dollars, the amount of the credit shall be reduced by fifteen 1636
2173		-	per cent for each ten thousand dollars, or fraction thereof, by which the 1637
2174		-	taxpayer's Connecticut adjusted gross income exceeds said amount. 1638
2175		-	(d) The credit allowed under the provisions of this section shall be 1639
2176		-	available for any person leasing a motor vehicle pursuant to a written 1640
2177		-	agreement for a term of more than one year. Such lessee shall be 1641
2178		-	entitled to the credit in accordance with the provisions of this section 1642
2179		-	for the taxes actually paid by the lessor or lessee on such leased 1643
2180		-	vehicle, provided the lessee was lawfully in possession of the motor 1644
2181		-	vehicle at such time when the taxes first became due. The lessor shall 1645
2182		-	provide the lessee with documentation establishing, to the satisfaction 1646
2183		-	of the Commissioner of Revenue Services, the amount of property tax 1647 Substitute Bill No. 877
2184		-
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2189		-
2190		-	paid during the time period in which the lessee was lawfully in 1648
2191		-	possession of the motor vehicle. The lessor of the motor vehicle shall 1649
2192		-	not be entitled to a credit under the provisions of this section. 1650
2193		-	(e) The credit may only be used to reduce [such] a qualifying 1651
2194		-	taxpayer's tax liability for the year for which such credit is applicable 1652
2195		-	and shall not be used to reduce such tax liability to less than zero. 1653
2196		-	(f) The amount of tax due pursuant to sections 12-705 and 12-722 1654
2197		-	shall be calculated without regard to this credit. 1655
2198		-	(g) For the purposes of this section: (1) "Property tax" means the 1656
2199		-	amount of property tax exclusive of any interest, fees or charges 1657
2200		-	thereon for which a taxpayer is liable, or in the case of any husband 1658
2201		-	and wife who file a return under the federal income tax for such 1659
2202		-	taxable year as married individuals filing a joint return, for which the 1660
2203		-	husband or wife or both are liable, to a Connecticut political 1661
2204		-	subdivision on the taxpayer's primary residence or motor vehicles; (2) 1662
2205		-	"motor vehicle" means a motor vehicle, as defined in section 14-1, 1663
2206		-	[which] that is privately owned or leased; and (3) property tax first 1664
2207		-	becomes due, if due and payable in a single installment, on the date 1665
2208		-	designated by the legislative body of the municipality as the date on 1666
2209		-	which such installment shall be due and payable and, if due and 1667
2210		-	payable in two or more installments, on the date designated by the 1668
2211		-	legislative body of the municipality as the date on which such 1669
2212		-	installment shall be due and payable or, at the election of the taxpayer, 1670
2213		-	on the date designated by the legislative body of the municipality as 1671
2214		-	the date on which any earlier installment of such tax shall be due and 1672
2215		-	payable. 1673
2216		-	Sec. 21. Section 12-498 of the general statutes is repealed and the 1674
2217		-	following is substituted in lieu thereof (Effective July 1, 2019): 1675
2218		-	(a) The tax imposed by section 12-494 shall not apply to: 1676
2219		-	(1) Deeds which this state is prohibited from taxing under the 1677
2220		-	Constitution or laws of the United States; 1678 Substitute Bill No. 877
2221		-
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2226		-
2227		-	(2) [deeds] Deeds which secure a debt or other obligation; 1679
2228		-	(3) [deeds] Deeds to which this state or any of its political 1680
2229		-	subdivisions or its or their respective agencies is a party; 1681
2230		-	(4) [tax] Tax deeds; 1682
2231		-	(5) [deeds] Deeds of release of property which is security for a debt 1683
2232		-	or other obligation; 1684
2233		-	(6) [deeds] Deeds of partition; 1685
2234		-	(7) [deeds] Deeds made pursuant to mergers of corporations; 1686
2235		-	(8) [deeds] Deeds made by a subsidiary corporation to its parent 1687
2236		-	corporation for no consideration other than the cancellation or 1688
2237		-	surrender of the subsidiary's stock; 1689
2238		-	(9) [deeds] Deeds made pursuant to a decree of the Superior Court 1690
2239		-	under section 46b-81, 49-24 or 52-495 or pursuant to a judgment of 1691
2240		-	foreclosure by market sale under section 49-24 or pursuant to a 1692
2241		-	judgment of loss mitigation under section 49-30t or 49-30u; 1693
2242		-	(10) [deeds] Deeds, when the consideration for the interest or 1694
2243		-	property conveyed is less than two thousand dollars; 1695
2244		-	(11) [deeds] Deeds between affiliated corporations, provided both of 1696
2245		-	such corporations are exempt from taxation pursuant to paragraph (2), 1697
2246		-	(3) or (25) of Section 501(c) of the Internal Revenue Code of 1986, or 1698
2247		-	any subsequent corresponding internal revenue code of the United 1699
2248		-	States, as amended from time to time; [amended;] 1700
2249		-	(12) [deeds] Deeds made by a corporation which is exempt from 1701
2250		-	taxation pursuant to paragraph (3) of Section 501(c) of the Internal 1702
2251		-	Revenue Code of 1986, or any subsequent corresponding internal 1703
2252		-	revenue code of the United States, as amended from time to time, 1704
2253		-	[amended,] to any corporation which is exempt from taxation 1705
2254		-	pursuant to said paragraph (3) of said Section 501(c); 1706 Substitute Bill No. 877
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2260		-
2261		-	(13) [deeds] Deeds made to any nonprofit organization which is 1707
2262		-	organized for the purpose of holding undeveloped land in trust for 1708
2263		-	conservation or recreation purposes; 1709
2264		-	(14) [deeds] Deeds between spouses; 1710
2265		-	(15) [deeds] Deeds of property for the Adriaen's Landing site or the 1711
2266		-	stadium facility site, for purposes of the overall project, each as defined 1712
2267		-	in section 32-651; 1713
2268		-	(16) [land] Land transfers made on or after July 1, 1998, to a water 1714
2269		-	company, as defined in section 16-1, provided the land is classified as 1715
2270		-	class I or class II land, as defined in section 25-37c, after such transfer; 1716
2271		-	(17) [transfers] Transfers or conveyances to effectuate a mere change 1717
2272		-	of identity or form of ownership or organization, where there is no 1718
2273		-	change in beneficial ownership; 1719
2274		-	(18) [conveyances] Conveyances of residential property which occur 1720
2275		-	not later than six months after the date on which the property was 1721
2276		-	previously conveyed to the transferor if the transferor is (A) an 1722
2277		-	employer which acquired the property from an employee pursuant to 1723
2278		-	an employee relocation plan, or (B) an entity in the business of 1724
2279		-	purchasing and selling residential property of employees who are 1725
2280		-	being relocated pursuant to such a plan; 1726
2281		-	(19) [deeds] Deeds in lieu of foreclosure that transfer the transferor's 1727
2282		-	principal residence; [and] 1728
2283		-	(20) [any] Any instrument [transferring a] that transfers the 1729
2284		-	transferor's principal residence where the gross purchase price is 1730
2285		-	insufficient to pay the sum of (A) mortgages encumbering the property 1731
2286		-	transferred, and (B) any real property taxes and municipal utility or 1732
2287		-	other charges for which the municipality may place a lien on the 1733
2288		-	property and which have priority over the mortgages encumbering the 1734
2289		-	property transferred; [.] and 1735 Substitute Bill No. 877
2290		-
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2295		-
2296		-	(21) Deeds that transfer the transferor's principal residence, where 1736
2297		-	such residence has a concrete foundation that has deteriorated due to 1737
2298		-	the presence of pyrrhotite and such transferor has obtained a written 1738
2299		-	evaluation from a professional engineer licensed pursuant to chapter 1739
2300		-	391 indicating that the foundation of such residence was made with 1740
2301		-	defective concrete. The exemption authorized under this subdivision 1741
2302		-	shall (A) apply to the first transfer of such residence after such written 1742
2303		-	evaluation has been obtained, and (B) not be available to a transferor 1743
2304		-	who has received financial assistance to repair or replace such 1744
2305		-	foundation from the Crumbling Foundations Assistance Fund 1745
2306		-	established under section 8-441. 1746
2307		-	(b) The tax imposed by subdivision (1) of subsection (a) of section 1747
2308		-	12-494 shall not apply to: 1748
2309		-	(1) [deeds] Deeds of the principal residence of any person approved 1749
2310		-	for assistance under section 12-129b or 12-170aa for the current 1750
2311		-	assessment year of the municipality in which such person resides or to 1751
2312		-	any such transfer which occurs within fifteen months of the 1752
2313		-	completion of any municipal assessment year for which such person 1753
2314		-	qualified for such assistance; 1754
2315		-	(2) [deeds] Deeds of property located in an area designated as an 1755
2316		-	enterprise zone in accordance with section 32-70; and 1756
2317		-	(3) [deeds] Deeds of property located in an entertainment district 1757
2318		-	designated under section 32-76 or established under section 2 of public 1758
2319		-	act 93-311. 1759
2320		-	Sec. 22. Subsection (b) of section 12-284b of the general statutes is 1760
2321		-	repealed and the following is substituted in lieu thereof (Effective from 1761
2322		-	passage and applicable to taxable years commencing on or after January 1, 1762
2323		-	2019): 1763
2324		-	(b) Each limited liability company, limited liability partnership, 1764
2325		-	limited partnership and S corporation shall be liable for the tax 1765
2326		-	imposed by this section for each taxable year or portion thereof that 1766 Substitute Bill No. 877
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2332		-
2333		-	such company, partnership or corporation is an affected business 1767
2334		-	entity. For taxable years commencing prior to January 1, 2013, each 1768
2335		-	affected business entity shall annually, on or before the fifteenth day of 1769
2336		-	the fourth month following the close of its taxable year, pay to the 1770
2337		-	Commissioner of Revenue Services a tax in the amount of two 1771
2338		-	hundred fifty dollars. For taxable years commencing on or after 1772
2339		-	January 1, 2013, but prior to January 1, 2019, each affected business 1773
2340		-	entity shall, on or before the fifteenth day of the fourth month 1774
2341		-	following the close of every other taxable year, pay to the 1775
2342		-	Commissioner of Revenue Services a tax in the amount of two 1776
2343		-	hundred fifty dollars. 1777
2344		-	Sec. 23. Subdivision (2) of subsection (e) of section 12-217jj of the 1778
2345		-	general statutes is repealed and the following is substituted in lieu 1779
2346		-	thereof (Effective from passage and applicable to taxable years commencing 1780
2347		-	on or after January 1, 2019): 1781
2348		-	(2) Notwithstanding the provisions of subdivision (1) of this 1782
2349		-	subsection, any entity that is not subject to tax under this chapter or 1783
2350		-	chapter 207 shall not be subject to the limitations on the transfer of 1784
2351		-	credits provided in subparagraphs (B) and (C) of said subdivision (1), 1785
2352		-	provided such entity owns not less than fifty per cent, directly or 1786
2353		-	indirectly, of a business entity, [subject to tax under] as defined in 1787
2354		-	section 12-284b, as amended by this act. 1788
2355		-	Sec. 24. Subdivision (1) of subsection (a) of section 12-219 of the 1789
2356		-	general statutes is repealed and the following is substituted in lieu 1790
2357		-	thereof (Effective from passage): 1791
2358		-	(a) (1) Each company subject to the provisions of this part shall pay 1792
2359		-	for the privilege of carrying on or doing business within the state, the 1793
2360		-	larger of the tax, if any, imposed by section 12-214, as amended by this 1794
2361		-	act, and the tax calculated under this subsection. The tax calculated 1795
2362		-	under this section shall be a tax of (A) three and one-tenth mills per 1796
2363		-	dollar for [each income year] income years commencing prior to 1797
2364		-	January 1, 2020, (B) two and six-tenths mills per dollar for the income 1798 Substitute Bill No. 877
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2370		-
2371		-	year commencing on or after January 1, 2020, and prior to January 1, 1799
2372		-	2021, (C) two and one-tenth mills per dollar for the income year 1800
2373		-	commencing on or after January 1, 2021, and prior to January 1, 2022, 1801
2374		-	(D) one and one-tenth mills per dollar for the income year 1802
2375		-	commencing on or after January 1, 2022, and prior to January 1, 2023, 1803
2376		-	and (E) zero mills per dollar for income years commencing on or after 1804
2377		-	January 1, 2023, of the amount derived [(A)] (i) by adding [(i)] (I) the 1805
2378		-	average value of the issued and outstanding capital stock, including 1806
2379		-	treasury stock at par or face value, fractional shares, scrip certificates 1807
2380		-	convertible into shares of stock and amounts received on subscriptions 1808
2381		-	to capital stock, computed on the balances at the beginning and end of 1809
2382		-	the taxable year or period, the average value of surplus and undivided 1810
2383		-	profit computed on the balances at the beginning and end of the 1811
2384		-	taxable year or period, and [(ii)] (II) the average value of all surplus 1812
2385		-	reserves computed on the balances at the beginning and end of the 1813
2386		-	taxable year or period, [(B)] (ii) by subtracting from the sum so 1814
2387		-	calculated [(i)] (I) the average value of any deficit carried on the 1815
2388		-	balance sheet computed on the balances at the beginning and end of 1816
2389		-	the taxable year or period, and [(ii)] (II) the average value of any 1817
2390		-	holdings of stock of private corporations including treasury stock 1818
2391		-	shown on the balance sheet computed on the balances at the beginning 1819
2392		-	and end of the taxable year or period, and [(C)] (iii) by apportioning 1820
2393		-	the remainder so derived between this and other states under the 1821
2394		-	provisions of section 12-219a, provided in no event shall the tax so 1822
2395		-	calculated exceed one million dollars or be less than two hundred fifty 1823
2396		-	dollars. 1824
2397		-	Sec. 25. Subdivision (8) of subsection (b) of section 12-214 of the 1825
2398		-	general statutes is repealed and the following is substituted in lieu 1826
2399		-	thereof (Effective from passage and applicable to income years commencing 1827
2400		-	on or after January 1, 2019): 1828
2401		-	(8) (A) With respect to income years commencing on or after 1829
2402		-	January 1, 2018, and prior to January 1, [2019] 2021, any company 1830
2403		-	subject to the tax imposed in accordance with subsection (a) of this 1831 Substitute Bill No. 877
2404		-
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2409		-
2410		-	section shall pay, for such income year, except when the tax so 1832
2411		-	calculated is equal to two hundred fifty dollars, an additional tax in an 1833
2412		-	amount equal to ten per cent of the tax calculated under said 1834
2413		-	subsection (a) for such income year, without reduction of the tax so 1835
2414		-	calculated by the amount of any credit against such tax. The additional 1836
2415		-	amount of tax determined under this subsection for any income year 1837
2416		-	shall constitute a part of the tax imposed by the provisions of said 1838
2417		-	subsection (a) and shall become due and be paid, collected and 1839
2418		-	enforced as provided in this chapter. 1840
2419		-	(B) Any company whose gross income for the income year was less 1841
2420		-	than one hundred million dollars shall not be subject to the additional 1842
2421		-	tax imposed under subparagraph (A) of this subdivision. This 1843
2422		-	exception shall not apply to taxable members of a combined group that 1844
2423		-	files a combined unitary tax return. 1845
2424		-	Sec. 26. Section 12-214 of the general statutes is amended by adding 1846
2425		-	subsection (d) as follows (Effective from passage): 1847
2426		-	(NEW) (d) The provisions of section 12-242d shall not apply to any 1848
2427		-	additional tax due as a result of the change made to subparagraph (A) 1849
2428		-	of subdivision (8) of subsection (b) of this section pursuant to section 1850
2429		-	25 of this act for any income year commencing prior to the effective 1851
2430		-	date of section 25 of this act. 1852
2431		-	Sec. 27. Subdivision (8) of subsection (b) of section 12-219 of the 1853
2432		-	general statutes is repealed and the following is substituted in lieu 1854
2433		-	thereof (Effective from passage and applicable to income years commencing 1855
2434		-	on or after January 1, 2019): 1856
2435		-	(8) (A) With respect to income years commencing on or after 1857
2436		-	January 1, 2018, and prior to January 1, [2019] 2021, the additional tax 1858
2437		-	imposed on any company and calculated in accordance with 1859
2438		-	subsection (a) of this section shall, for such income year, except when 1860
2439		-	the tax so calculated is equal to two hundred fifty dollars, be increased 1861
2440		-	by adding thereto an amount equal to ten per cent of the additional tax 1862 Substitute Bill No. 877
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2446		-
2447		-	so calculated for such income year, without reduction of the tax so 1863
2448		-	calculated by the amount of any credit against such tax. The increased 1864
2449		-	amount of tax payable by any company under this section, as 1865
2450		-	determined in accordance with this subsection, shall become due and 1866
2451		-	be paid, collected and enforced as provided in this chapter. 1867
2452		-	(B) Any company whose gross income for the income year was less 1868
2453		-	than one hundred million dollars shall not be subject to the additional 1869
2454		-	tax imposed under subparagraph (A) of this subdivision. This 1870
2455		-	exception shall not apply to taxable members of a combined group that 1871
2456		-	files a combined unitary tax return. 1872
2457		-	Sec. 28. Section 12-219 of the general statutes is amended by adding 1873
2458		-	subsection (f) as follows (Effective from passage): 1874
2459		-	(NEW) (f) The provisions of section 12-242d shall not apply to any 1875
2460		-	additional tax due as a result of the change made to subparagraph (A) 1876
2461		-	of subdivision (8) of subsection (b) of this section pursuant to section 1877
2462		-	27 of this act for any income year commencing prior to the effective 1878
2463		-	date of section 27 of this act. 1879
2464		-	Sec. 29. Subdivision (1) of subsection (k) of section 12-218e of the 1880
2465		-	general statutes is repealed and the following is substituted in lieu 1881
2466		-	thereof (Effective from passage, and applicable to income years commencing 1882
2467		-	on or after January 1, 2019): 1883
2468		-	(k) (1) In the case of a combined group whose unitary business is 1884
2469		-	primarily engaged in manufacturing, in no event shall the tax 1885
2470		-	calculated for a combined group on a combined unitary basis, prior to 1886
2471		-	surtax and application of credits, exceed the nexus combined base tax 1887
2472		-	described in subdivision (2) of this subsection by more than two 1888
2473		-	million five hundred thousand dollars. 1889
2474		-	Sec. 30. Subsection (a) of section 34-38n of the general statutes is 1890
2475		-	repealed and the following is substituted in lieu thereof (Effective July 1891
2476		-	1, 2019): 1892 Substitute Bill No. 877
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2482		-
2483		-	(a) The Secretary of the State shall receive, for filing any document 1893
2484		-	or certificate required to be filed under sections 34-10, 34-13a, 34-13e, 1894
2485		-	34-32, 34-32a, 34-32c, 34-38g and 34-38s, the following fees: (1) For 1895
2486		-	reservation or cancellation of reservation of name, sixty dollars; (2) for 1896
2487		-	a certificate of limited partnership and appointment of statutory agent, 1897
2488		-	one hundred twenty dollars; (3) for a certificate of amendment, one 1898
2489		-	hundred twenty dollars; (4) for a certificate of merger or consolidation, 1899
2490		-	sixty dollars; (5) for a certificate of registration, one hundred twenty 1900
2491		-	dollars; (6) for a change of agent or change of address of agent, twenty 1901
2492		-	dollars; (7) for a certificate of reinstatement, one hundred twenty 1902
2493		-	dollars; and (8) for an annual report, [twenty] eighty dollars. 1903
2494		-	Sec. 31. Subsection (a) of section 34-243u of the general statutes is 1904
2495		-	repealed and the following is substituted in lieu thereof (Effective July 1905
2496		-	1, 2019): 1906
2497		-	(a) Fees for filing documents and issuing certificates: (1) Filing an 1907
2498		-	application to reserve a limited liability company name or to cancel a 1908
2499		-	reserved limited liability company name, sixty dollars; (2) filing a 1909
2500		-	transfer of reserved limited liability company name, sixty dollars; (3) 1910
2501		-	filing a certificate of organization, including appointment of registered 1911
2502		-	agent, one hundred twenty dollars; (4) filing a change of address of 1912
2503		-	agent certificate or change of agent certificate, fifty dollars; (5) filing a 1913
2504		-	notice of resignation of registered agent, fifty dollars; (6) filing an 1914
2505		-	amendment to certificate of organization, one hundred twenty dollars; 1915
2506		-	(7) filing a restated certificate of organization, one hundred twenty 1916
2507		-	dollars; (8) filing a certificate of merger, sixty dollars; (9) filing a 1917
2508		-	certificate of interest exchange, sixty dollars; (10) filing a certificate of 1918
2509		-	abandonment, fifty dollars; (11) filing a certificate of reinstatement, one 1919
2510		-	hundred twenty dollars; (12) filing a foreign registration certificate by a 1920
2511		-	foreign limited liability company to transact business in this state, one 1921
2512		-	hundred twenty dollars; (13) filing an application of foreign limited 1922
2513		-	liability company for amended foreign registration certificate, one 1923
2514		-	hundred twenty dollars; (14) filing a certificate of withdrawal of 1924
2515		-	registration under section 34-275h, one hundred twenty dollars; (15) 1925 Substitute Bill No. 877
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2521		-
2522		-	filing an annual report, [twenty] eighty dollars; (16) filing an interim 1926
2523		-	notice of change of manager or member, twenty dollars; (17) filing a 1927
2524		-	registration of name or a renewal of registration of name, sixty dollars; 1928
2525		-	(18) filing a statement of correction, one hundred dollars; and (19) 1929
2526		-	filing a transfer of registration, sixty dollars plus the qualification fee. 1930
2527		-	Sec. 32. Subsection (a) of section 34-413 of the general statutes is 1931
2528		-	repealed and the following is substituted in lieu thereof (Effective July 1932
2529		-	1, 2019): 1933
2530		-	(a) Fees for filing documents and processing certificates: (1) Filing 1934
2531		-	application to reserve a registered limited liability partnership name or 1935
2532		-	to cancel a reserved limited liability partnership name, sixty dollars; (2) 1936
2533		-	filing transfer of reserved registered limited liability partnership name, 1937
2534		-	sixty dollars; (3) filing change of address of statutory agent or change 1938
2535		-	of statutory agent, fifty dollars; (4) filing certificate of limited liability 1939
2536		-	partnership, one hundred twenty dollars; (5) filing amendment to 1940
2537		-	certificate of limited liability partnership, one hundred twenty dollars; 1941
2538		-	(6) filing certificate of authority to transact business in this state, 1942
2539		-	including appointment of statutory agent, one hundred twenty dollars; 1943
2540		-	(7) filing amendment to certificate of authority to transact business in 1944
2541		-	this state, one hundred twenty dollars; (8) filing an annual report, 1945
2542		-	[twenty] eighty dollars; (9) filing statement of merger, sixty dollars; 1946
2543		-	and (10) filing certificate of reinstatement, one hundred twenty dollars. 1947
2544		-	Sec. 33. Section 12-704d of the general statutes is repealed and the 1948
2545		-	following is substituted in lieu thereof (Effective July 1, 2019, and 1949
2546		-	applicable to income and taxable years commencing on or after January 1, 1950
2547		-	2019): 1951
2548		-	(a) As used in this section: 1952
2549		-	(1) "Angel investor" means an accredited investor, as defined by the 1953
2550		-	Securities and Exchange Commission, or network of accredited 1954
2551		-	investors who review new or proposed businesses for potential 1955
2552		-	investment and who may seek active involvement, such as consulting 1956 Substitute Bill No. 877
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2558		-
2559		-	and mentoring, in a Connecticut business, but "angel investor" does 1957
2560		-	not include (A) a person controlling fifty per cent or more of the 1958
2561		-	Connecticut business invested in by the angel investor, (B) a venture 1959
2562		-	capital company, or (C) any bank, bank and trust company, insurance 1960
2563		-	company, trust company, national bank, savings association or 1961
2564		-	building and loan association for activities that are a part of its normal 1962
2565		-	course of business; 1963
2566		-	(2) "Cash investment" means the contribution of cash, at a risk of 1964
2567		-	loss, to a qualified Connecticut business in exchange for qualified 1965
2568		-	securities; 1966
2569		-	(3) "Connecticut business" means any business with its principal 1967
2570		-	place of business in Connecticut; 1968
2571		-	(4) "Bioscience" means manufacturing pharmaceuticals, medicines, 1969
2572		-	medical equipment or medical devices and analytical laboratory 1970
2573		-	instruments, operating medical or diagnostic testing laboratories, or 1971
2574		-	conducting pure research and development in life sciences; 1972
2575		-	(5) "Advanced materials" means developing, formulating or 1973
2576		-	manufacturing advanced alloys, coatings, lubricants, refrigerants, 1974
2577		-	surfactants, emulsifiers or substrates; 1975
2578		-	(6) "Photonics" means generation, emission, transmission, 1976
2579		-	modulation, signal processing, switching, amplification, detection and 1977
2580		-	sensing of light from ultraviolet to infrared and the manufacture, 1978
2581		-	research or development of opto-electronic devices, including, but not 1979
2582		-	limited to, lasers, masers, fiber optic devices, quantum devices, 1980
2583		-	holographic devices and related technologies; 1981
2584		-	(7) "Information technology" means software publishing, motion 1982
2585		-	picture and video production, teleproduction and postproduction 1983
2586		-	services, telecommunications, data processing, hosting and related 1984
2587		-	services, custom computer programming services, computer system 1985
2588		-	design, computer facilities management services, other computer 1986
2589		-	related services and computer training; 1987 Substitute Bill No. 877
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2595		-
2596		-	(8) "Clean technology" means the production, manufacture, design, 1988
2597		-	research or development of clean energy, green buildings, smart grid, 1989
2598		-	high-efficiency transportation vehicles and alternative fuels, 1990
2599		-	environmental products, environmental remediation and pollution 1991
2600		-	prevention; 1992
2601		-	(9) "Qualified securities" means any form of equity, including a 1993
2602		-	general or limited partnership interest, common stock, preferred stock, 1994
2603		-	with or without voting rights, without regard to seniority position that 1995
2604		-	must be convertible into common stock; and 1996
2605		-	(10) "Emerging technology business" means any business that is 1997
2606		-	engaged in bioscience, advanced materials, photonics, information 1998
2607		-	technology, clean technology or any other emerging technology as 1999
2608		-	determined by the Commissioner of Economic and Community 2000
2609		-	Development. 2001
2610		-	(b) There shall be allowed a credit against the tax imposed under 2002
2611		-	this chapter, other than the liability imposed by section 12-707, for a 2003
2612		-	cash investment of not less than twenty-five thousand dollars in the 2004
2613		-	qualified securities of a Connecticut business by an angel investor. The 2005
2614		-	credit shall be in an amount equal to twenty-five per cent of such 2006
2615		-	investor's cash investment, provided the total tax credits allowed to 2007
2616		-	any angel investor shall not exceed [two hundred fifty] five hundred 2008
2617		-	thousand dollars. The credit shall be claimed in the taxable year in 2009
2618		-	which such cash investment is made by the angel investor. The credit 2010
2619		-	may be sold, assigned or otherwise transferred, in whole or in part. 2011
2620		-	(c) To qualify for a tax credit pursuant to this section, a cash 2012
2621		-	investment shall be in a Connecticut business that (1) has been 2013
2622		-	approved as a qualified Connecticut business pursuant to subsection 2014
2623		-	(d) of this section; (2) had annual gross revenues of less than one 2015
2624		-	million dollars in the most recent income year of such business; (3) has 2016
2625		-	fewer than twenty-five employees, not less than seventy-five per cent 2017
2626		-	of whom reside in this state; (4) has been operating in this state for less 2018
2627		-	than seven consecutive years; (5) is primarily owned by the 2019 Substitute Bill No. 877
2628		-
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2633		-
2634		-	management of the business and their families; and (6) received less 2020
2635		-	than two million dollars in cash investments eligible for the tax credits 2021
2636		-	provided by this section. 2022
2637		-	(d) (1) A Connecticut business may apply to Connecticut 2023
2638		-	Innovations, Incorporated, for approval as a Connecticut business 2024
2639		-	qualified to receive cash investments eligible for a tax credit pursuant 2025
2640		-	to this section. The application shall include (A) the name of the 2026
2641		-	business and a copy of the organizational documents of such business, 2027
2642		-	(B) a business plan, including a description of the business and the 2028
2643		-	management, product, market and financial plan of the business, (C) a 2029
2644		-	description of the business's innovative technology, product or service, 2030
2645		-	(D) a statement of the potential economic impact of the business, 2031
2646		-	including the number, location and types of jobs expected to be 2032
2647		-	created, (E) a description of the qualified securities to be issued and the 2033
2648		-	amount of cash investment sought by the qualified Connecticut 2034
2649		-	business, (F) a statement of the amount, timing and projected use of 2035
2650		-	the proceeds to be raised from the proposed sale of qualified securities, 2036
2651		-	and (G) such other information as the chief executive officer of 2037
2652		-	Connecticut Innovations, Incorporated, may require. 2038
2653		-	(2) Said chief executive officer shall, on a monthly basis, compile a 2039
2654		-	list of approved applications, categorized by the cash investments 2040
2655		-	being sought by the qualified Connecticut business and type of 2041
2656		-	qualified securities offered. 2042
2657		-	(e) (1) Any angel investor that intends to make a cash investment in 2043
2658		-	a business on such list may apply to Connecticut Innovations, 2044
2659		-	Incorporated, to reserve a tax credit in the amount indicated by such 2045
2660		-	investor. The aggregate amount of all tax credits under this section that 2046
2661		-	may be reserved by Connecticut Innovations, Incorporated, shall not 2047
2662		-	exceed six million dollars annually for the fiscal years commencing 2048
2663		-	July 1, 2010, to July 1, 2012, inclusive, and shall not exceed [three] five 2049
2664		-	million dollars in each fiscal year thereafter. Each fiscal year, 2050
2665		-	Connecticut Innovations, Incorporated, shall not reserve more than 2051
2666		-	seventy-five per cent of the tax credits available under this section for 2052 Substitute Bill No. 877
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2672		-
2673		-	investments in emerging technology businesses, except if any credits 2053
2674		-	remain available for reservation after April first in any fiscal year, such 2054
2675		-	remaining credits may be reserved for investments in such businesses, 2055
2676		-	and may be prioritized for veteran-owned, women-owned or minority-2056
2677		-	owned businesses and businesses owned by individuals with 2057
2678		-	disabilities. Connecticut Innovations, Incorporated, shall not reserve 2058
2679		-	tax credits under this section for any investment made on or after July 2059
2680		-	1, [2019] 2024. 2060
2681		-	(2) The amount of the credit allowed to any investor pursuant to this 2061
2682		-	section shall not exceed the amount of tax due from such investor 2062
2683		-	under this chapter, other than section 12-707, with respect to such 2063
2684		-	taxable year. Any tax credit that is claimed by the angel investor but 2064
2685		-	not applied against the tax due under this chapter, other than the 2065
2686		-	liability imposed under section 12-707, may be carried forward for the 2066
2687		-	five immediately succeeding taxable years until the full credit has been 2067
2688		-	applied. 2068
2689		-	(f) If the angel investor is an S corporation or an entity treated as a 2069
2690		-	partnership for federal income tax purposes, the tax credit may be 2070
2691		-	claimed by the shareholders or partners of the angel investor. If the 2071
2692		-	angel investor is a single member limited liability company that is 2072
2693		-	disregarded as an entity separate from its owner, the tax credit may be 2073
2694		-	claimed by such limited liability company's owner, provided such 2074
2695		-	owner is a person subject to the tax imposed under this chapter. 2075
2696		-	(g) A review of the cumulative effectiveness of the credit under this 2076
2697		-	section shall be conducted by Connecticut Innovations, Incorporated, 2077
2698		-	by July 1, 2014, and by July first annually thereafter. Such review shall 2078
2699		-	include, but need not be limited to, the number and type of 2079
2700		-	Connecticut businesses that received angel investments, the number of 2080
2701		-	angel investors and the aggregate amount of cash investments, the 2081
2702		-	current status of each Connecticut business that received angel 2082
2703		-	investments, the number of employees employed in each year 2083
2704		-	following the year in which such Connecticut business received the 2084
2705		-	angel investment, and the economic impact in the state, of the 2085 Substitute Bill No. 877
2706		-
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2711		-
2712		-	Connecticut business that received the angel investment. Such review 2086
2713		-	shall be submitted to the Office of Policy and Management and to the 2087
2714		-	joint standing committee of the General Assembly having cognizance 2088
2715		-	of matters relating to commerce, in accordance with the provisions of 2089
2716		-	section 11-4a. 2090
2717		-	Sec. 34. Subsection (a) of section 12-217zz of the general statutes is 2091
2718		-	repealed and the following is substituted in lieu thereof (Effective from 2092
2719		-	passage and applicable to income years commencing on or after January 1, 2093
2720		-	2019): 2094
2721		-	(a) Notwithstanding any other provision of law, and except as 2095
2722		-	otherwise provided in subsection (b) of this section and sections 12-2096
2723		-	217aaa and 12-217bbb, the amount of tax credit or credits otherwise 2097
2724		-	allowable against the tax imposed under this chapter shall be as 2098
2725		-	follows: 2099
2726		-	(1) For any income year commencing on or after January 1, 2002, 2100
2727		-	and prior to January 1, 2015, the amount of tax credit or credits 2101
2728		-	otherwise allowable shall not exceed seventy per cent of the amount of 2102
2729		-	tax due from such taxpayer under this chapter with respect to any such 2103
2730		-	income year of the taxpayer prior to the application of such credit or 2104
2731		-	credits; 2105
2732		-	(2) For any income year commencing on or after January 1, 2015, the 2106
2733		-	amount of tax credit or credits otherwise allowable shall not exceed 2107
2734		-	fifty and one one-hundredths per cent of the amount of tax due from 2108
2735		-	such taxpayer under this chapter with respect to any such income year 2109
2736		-	of the taxpayer prior to the application of such credit or credits; 2110
2737		-	(3) Notwithstanding the provisions of subdivision (2) of this 2111
2738		-	subsection, any taxpayer that possesses excess credits may utilize the 2112
2739		-	excess credits as follows: 2113
2740		-	(A) For income years commencing on or after January 1, 2016, and 2114
2741		-	prior to January 1, 2017, the aggregate amount of tax credits and excess 2115
2742		-	credits allowable shall not exceed fifty-five per cent of the amount of 2116 Substitute Bill No. 877
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2748		-
2749		-	tax due from such taxpayer under this chapter with respect to any such 2117
2750		-	income year of the taxpayer prior to the application of such credit or 2118
2751		-	credits; 2119
2752		-	(B) For income years commencing on or after January 1, 2017, and 2120
2753		-	prior to January 1, 2018, the aggregate amount of tax credits and excess 2121
2754		-	credits allowable shall not exceed sixty per cent of the amount of tax 2122
2755		-	due from such taxpayer under this chapter with respect to any such 2123
2756		-	income year of the taxpayer prior to the application of such credit or 2124
2757		-	credits; and 2125
2758		-	(C) For income years commencing on or after January 1, 2018, and 2126
2759		-	prior to January 1, 2019, the aggregate amount of tax credits and excess 2127
2760		-	credits allowable shall not exceed sixty-five per cent of the amount of 2128
2761		-	tax due from such taxpayer under this chapter with respect to any such 2129
2762		-	income year of the taxpayer prior to the application of such credit or 2130
2763		-	credits; 2131
2764		-	[(D) For income years commencing on or after January 1, 2019, the 2132
2765		-	aggregate amount of tax credits and excess credits allowable shall not 2133
2766		-	exceed seventy per cent of the amount of tax due from such taxpayer 2134
2767		-	under this chapter with respect to any such income year of the 2135
2768		-	taxpayer prior to the application of such credit or credits;] 2136
2769		-	(4) For purposes of this subsection, "excess credits" means any 2137
2770		-	remaining credits available under section 12-217j, 12-217n or 32-9t after 2138
2771		-	tax credits are utilized in accordance with subdivision (2) of this 2139
2772		-	subsection. 2140
2773		-	Sec. 35. (NEW) (Effective from passage and applicable to quarterly periods 2141
2774		-	commencing on or after July 1, 2019) Notwithstanding any provision of 2142
2775		-	the general statutes allowing for a higher amount, for any quarterly 2143
2776		-	periods commencing on or after July 1, 2019, the amount of the tax 2144
2777		-	credit or credits allowable against the tax imposed under chapter 212 2145
2778		-	of the general statutes shall not exceed fifty and one one-hundredths 2146
2779		-	per cent of the amount of tax due from a taxpayer under such chapter 2147 Substitute Bill No. 877
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2785		-
2786		-	with respect to any such quarterly period of the taxpayer prior to the 2148
2787		-	application of such credit or credits. 2149
2788		-	Sec. 36. Subsection (a) of section 12-264 of the general statutes is 2150
2789		-	repealed and the following is substituted in lieu thereof (Effective July 2151
2790		-	1, 2019): 2152
2791		-	(a) Each (1) municipality, or department or agency thereof, or 2153
2792		-	district manufacturing, selling or distributing gas to be used for light, 2154
2793		-	heat or power, (2) company the principal business of which is 2155
2794		-	manufacturing, selling or distributing gas or steam to be used for light, 2156
2795		-	heat or power, including each foreign electric company, as defined in 2157
2796		-	section 16-246f, that holds property in this state, and (3) company 2158
2797		-	required to register pursuant to section 16-258a, shall pay a quarterly 2159
2798		-	tax upon gross earnings from such operations in this state. Gross 2160
2799		-	earnings from such operations under subdivisions (1) and (2) of this 2161
2800		-	subsection shall include, as determined by the Commissioner of 2162
2801		-	Revenue Services, (A) all income included in operating revenue 2163
2802		-	accounts in the uniform systems of accounts prescribed by the Public 2164
2803		-	Utilities Regulatory Authority for operations within the taxable 2165
2804		-	quarter and, with respect to each such company, (B) all income 2166
2805		-	identified in said uniform systems of accounts as income from 2167
2806		-	merchandising, jobbing and contract work, (C) all revenues identified 2168
2807		-	in said uniform systems of accounts as income from nonutility 2169
2808		-	operations, (D) all revenues identified in said uniform systems of 2170
2809		-	accounts as nonoperating retail income, and (E) receipts from the sale 2171
2810		-	of residuals and other by-products obtained in connection with the 2172
2811		-	production of gas, electricity or steam. Gross earnings from such 2173
2812		-	operations under subdivision (3) of this subsection shall be gross 2174
2813		-	income from the sales of natural gas. [, provided gross income shall not 2175
2814		-	include income from the sale of natural gas to an existing combined 2176
2815		-	cycle facility comprised of three gas turbines providing electric 2177
2816		-	generation services, as defined in section 16-1, with a total capacity of 2178
2817		-	seven hundred seventy-five megawatts, for use in the production of 2179
2818		-	electricity.] Gross earnings of a gas company, as defined in section 16-2180 Substitute Bill No. 877
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2824		-
2825		-	1, shall not include income earned in a taxable quarter commencing 2181
2826		-	prior to June 30, 2008, from the sale of natural gas or propane as a fuel 2182
2827		-	for a motor vehicle. No deductions shall be allowed from such gross 2183
2828		-	earnings for any commission, rebate or other payment, except a refund 2184
2829		-	resulting from an error or overcharge and those specifically mentioned 2185
2830		-	in section 12-265. Gross earnings of a company, as described in 2186
2831		-	subdivision (2) of this subsection, shall not include income earned in 2187
2832		-	any taxable quarter commencing on or after July 1, 2000, from the sale 2188
2833		-	of steam. 2189
2834		-	Sec. 37. Subsection (b) of section 12-326a of the general statutes is 2190
2835		-	repealed and the following is substituted in lieu thereof (Effective July 2191
2836		-	1, 2019): 2192
2837		-	(b) In the absence of the filing with the Commissioner of Revenue 2193
2838		-	Services of satisfactory proof of a lesser or higher cost of doing 2194
2839		-	business, such cost shall be presumed to be (1) in the case of a 2195
2840		-	stamping agent who is selling cigarettes to subjobbers and chain stores, 2196
2841		-	(A) seven-eighths of one per cent of the basic cost of cigarettes to such 2197
2842		-	stamping agent plus (B) the cost of cartage to such subjobbers and 2198
2843		-	chain stores, if performed or paid for by such stamping agent, which, 2199
2844		-	absent satisfactory proof to the contrary shall be presumed to be three-2200
2845		-	fourths of one per cent of the basic cost of cigarettes to such stamping 2201
2846		-	agent; [or] (2) in the case of a stamping agent who is selling cigarettes 2202
2847		-	to dealers, (A) five and three-fourths per cent of the basic cost of 2203
2848		-	cigarettes to such stamping agent plus (B) the cost of cartage to such 2204
2849		-	dealers, if performed or paid for by such stamping agent, which, 2205
2850		-	absent satisfactory proof to the contrary shall be presumed to be three-2206
2851		-	fourths of one per cent of the basic cost of cigarettes to such stamping 2207
2852		-	agent; (3) in the case of a subjobber who is selling cigarettes to dealers, 2208
2853		-	(A) four and seven-eighths per cent of the basic cost of cigarettes to the 2209
2854		-	stamping agent plus (B) the cost of cartage to such dealers, if 2210
2855		-	performed or paid for by such subjobber, which, absent satisfactory 2211
2856		-	proof to the contrary shall be presumed to be three-fourths of one per 2212
2857		-	cent of the basic cost of cigarettes to the stamping agent; (4) in the case 2213 Substitute Bill No. 877
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2863		-
2864		-	of a dealer, [eight] eighteen per cent of the sum of (A) the basic cost of 2214
2865		-	cigarettes to the stamping agent plus (B) the cost of doing business by 2215
2866		-	the stamping agent with respect to cigarettes sold to dealers; and (5) in 2216
2867		-	the case of sales at retail by a stamping agent, subjobber or chain store, 2217
2868		-	the cost to the stamping agent, subjobber or chain store, as the case 2218
2869		-	may be, shall be the same as the cost to the dealer. 2219
2870		-	Sec. 38. (NEW) (Effective October 1, 2019, and applicable to sales 2220
2871		-	occurring on or after October 1, 2019) (a) As used in this section: 2221
2872		-	(1) "Electronic nicotine delivery system" has the same meaning as 2222
2873		-	provided in section 19a-342a of the general statutes; 2223
2874		-	(2) "Liquid nicotine container" has the same meaning as provided in 2224
2875		-	section 19a-342a of the general statutes; 2225
2876		-	(3) "Vapor product" has the same meaning as provided in section 2226
2877		-	19a-342a of the general statutes; 2227
2878		-	(4) "Electronic cigarette liquid" means a liquid that, when used in an 2228
2879		-	electronic nicotine delivery system or a vapor product, produces a 2229
2880		-	vapor that may or may not include nicotine and is inhaled by the user 2230
2881		-	of such electronic nicotine delivery system or vapor product; 2231
2882		-	(5) "Electronic cigarette products" means electronic nicotine delivery 2232
2883		-	systems, liquid nicotine containers, vapor products and electronic 2233
2884		-	cigarette liquids; 2234
2885		-	(6) "Electronic cigarette wholesaler" means (A) any person engaged 2235
2886		-	in the business of selling electronic cigarette products at wholesale in 2236
2887		-	the state, (B) any person in this state who purchases electronic cigarette 2237
2888		-	products at wholesale from a manufacturer, or (C) any dealer, retailer 2238
2889		-	or other person that otherwise imports, or causes another person to 2239
2890		-	import, untaxed electronic cigarette products into this state; 2240
2891		-	(7) "Wholesale sales price" means the price of electronic cigarette 2241
2892		-	products or, if no price has been set, the wholesale value of such 2242 Substitute Bill No. 877
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2898		-
2899		-	products; and 2243
2900		-	(8) "Sale" means any transfer of title or possession or both, exchange, 2244
2901		-	barter, distribution or gift, of electronic cigarette products, with or 2245
2902		-	without consideration. 2246
2903		-	(b) For each calendar month commencing on or after October 1, 2247
2904		-	2019, a tax is imposed on all sales of electronic cigarette products made 2248
2905		-	in this state by electronic cigarette wholesalers at the rate of fifty per 2249
2906		-	cent of the wholesale sales price of such products, whether or not sold 2250
2907		-	at wholesale, or if not sold, then at the same rate upon the use by the 2251
2908		-	wholesaler. Only one sale of the same product shall be used in 2252
2909		-	computing the amount of tax due under this subsection. 2253
2910		-	(c) Each electronic cigarette wholesaler shall file with the 2254
2911		-	Commissioner of Revenue Services, on or before the last day of each 2255
2912		-	month, a report for the calendar month immediately preceding in such 2256
2913		-	form and containing such information as the commissioner may 2257
2914		-	prescribe. The return shall be accompanied by a payment of the 2258
2915		-	amount of the tax shown to be due thereon. Each electronic cigarette 2259
2916		-	wholesaler shall file such return electronically with the Department of 2260
2917		-	Revenue Services and make such payment by electronic funds transfer 2261
2918		-	in the manner provided by chapter 228g of the general statutes. 2262
2919		-	(d) If any person fails to pay the amount of tax reported due on its 2263
2920		-	report within the time specified under this section, there shall be 2264
2921		-	imposed a penalty equal to ten per cent of such amount due and 2265
2922		-	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 2266
2923		-	interest at the rate of one per cent per month or fraction thereof, from 2267
2924		-	the due date of such tax until the date of payment. Subject to the 2268
2925		-	provisions of section 12-3a of the general statutes, the commissioner 2269
2926		-	may waive all or part of the penalties provided under this section 2270
2927		-	when it is proven to the commissioner's satisfaction that the failure to 2271
2928		-	pay any tax was due to reasonable cause and was not intentional or 2272
2929		-	due to neglect. 2273 Substitute Bill No. 877
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2935		-
2936		-	(e) Each person, other than an electronic cigarette wholesaler, who is 2274
2937		-	required, on behalf of an electronic cigarette wholesaler, to collect, 2275
2938		-	truthfully account for and pay over the tax imposed on such electronic 2276
2939		-	cigarette wholesaler under this section and who wilfully fails to collect, 2277
2940		-	truthfully account for and pay over such tax or who wilfully attempts 2278
2941		-	in any manner to evade or defeat the tax or the payment thereof, shall, 2279
2942		-	in addition to other penalties provided by law, be liable for a penalty 2280
2943		-	equal to the total amount of the tax evaded, or not collected, or not 2281
2944		-	accounted for and paid over, including any penalty or interest 2282
2945		-	attributable to such wilful failure to collect or truthfully account for 2283
2946		-	and pay over such tax or such wilful attempt to evade or defeat such 2284
2947		-	tax, provided such penalty shall only be imposed against such person 2285
2948		-	in the event that such tax, penalty or interest cannot otherwise be 2286
2949		-	collected from the electronic cigarette wholesaler. The amount of such 2287
2950		-	penalty with respect to which a person may be personally liable under 2288
2951		-	this section shall be collected in accordance with the provisions of 2289
2952		-	section 12-555a of the general statutes and any amount so collected 2290
2953		-	shall be allowed as a credit against the amount of such tax, penalty or 2291
2954		-	interest due and owing from the electronic cigarette wholesaler. The 2292
2955		-	dissolution of the electronic cigarette wholesaler shall not discharge 2293
2956		-	any person in relation to any personal liability under this section for 2294
2957		-	wilful failure to collect or truthfully account for and pay over such tax 2295
2958		-	or for a wilful attempt to evade or defeat such tax prior to dissolution, 2296
2959		-	except as otherwise provided in this section. For purposes of this 2297
2960		-	section, "person" includes any individual, corporation, limited liability 2298
2961		-	company or partnership and any officer or employe e of any 2299
2962		-	corporation, including a dissolved corporation, and a member or 2300
2963		-	employee of any partnership or limited liability company who, as such 2301
2964		-	officer, employee or member, is under a duty to file a tax return under 2302
2965		-	this section on behalf of an electronic cigarette wholesaler or to collect 2303
2966		-	or truthfully account for and pay over the tax imposed under this 2304
2967		-	section on behalf of an electronic cigarette wholesaler. 2305
2968		-	(f) No tax credit or credits shall be allowable against the tax 2306
2969		-	imposed under this section. 2307 Substitute Bill No. 877
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2975		-
2976		-	(g) The provisions of sections 12-550 to 12-554, inclusive, and section 2308
2977		-	12-555a of the general statutes shall apply to the provisions of this 2309
2978		-	section in the same manner and with the same force and effect as if the 2310
2979		-	language of said sections had been incorporated in full into this section 2311
2980		-	and had expressly referred to the tax under this section, except to the 2312
2981		-	extent that any provision is inconsistent with a provision in this 2313
2982		-	section. 2314
2983		-	(h) The commissioner may adopt regulations, in accordance with 2315
2984		-	the provisions of chapter 54 of the general statutes, to implement the 2316
2985		-	provisions of this section. 2317
2986		-	(i) At the close of each fiscal year commencing with the fiscal year 2318
2987		-	ending June 30, 2020, the Comptroller is authorized to record as 2319
2988		-	revenue for such fiscal year the amount of the tax imposed under the 2320
2989		-	provisions of this section that is received by the commissioner not later 2321
2990		-	than five business days from the last day of July immediately 2322
2991		-	following the end of such fiscal year. 2323
2992		-	Sec. 39. Section 12-435 of the general statutes is repealed and the 2324
2993		-	following is substituted in lieu thereof (Effective July 1, 2019, and 2325
2994		-	applicable to sales occurring on or after July 1, 2019): 2326
2995		-	Each distributor of alcoholic beverages shall pay a tax to the state on 2327
2996		-	all sales within the state of alcoholic beverages, except sales to licensed 2328
2997		-	distributors, sales of alcoholic beverages [which] that, in the course of 2329
2998		-	such sales, are actually transported to some point without the state and 2330
2999		-	except [malt beverages which are] beer that is consumed on the 2331
3000		-	premises covered by a manufacturer's permit, at the rates for the 2332
3001		-	respective categories of alcoholic beverages listed below: 2333
3002		-	[(a)] (1) Beer, except as provided in subdivision (2) of this section, 2334
3003		-	seven dollars and [twenty] ninety-two cents for each barrel, three 2335
3004		-	dollars and [sixty] ninety-six cents for each half barrel, one dollar and 2336
3005		-	[eighty] ninety-eight cents for each quarter barrel and [twenty-four] 2337
3006		-	twenty-six cents per wine gallon or fraction thereof on quantities less 2338 Substitute Bill No. 877
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3012		-
3013		-	than a quarter barrel; 2339
3014		-	(2) Beer sold on the premises covered by a manufacturer's permit for 2340
3015		-	off-premises consumption, three dollars and ninety-six cents for each 2341
3016		-	barrel, one dollar and ninety-eight cents for each half barrel, ninety-2342
3017		-	nine cents for each quarter barrel and thirteen cents per wine gallon or 2343
3018		-	fraction thereof on quantities less than a quarter barrel; 2344
3019		-	[(b)] (3) Liquor, five dollars and [forty] ninety-four cents per wine 2345
3020		-	gallon; 2346
3021		-	[(c)] (4) Still wines containing not more than twenty-one per cent of 2347
3022		-	absolute alcohol, except as provided in [subsections (g) and (h)] 2348
3023		-	subdivisions (8) and (9) of this section, [seventy-two] seventy-nine 2349
3024		-	cents per wine gallon; 2350
3025		-	[(d)] (5) Still wines containing more than twenty-one per cent of 2351
3026		-	absolute alcohol and sparkling wines, one dollar and [eighty] ninety-2352
3027		-	eight cents per wine gallon; 2353
3028		-	[(e)] (6) Alcohol in excess of 100 proof, five dollars and [forty] 2354
3029		-	ninety-four cents per proof gallon; 2355
3030		-	[(f)] (7) Liquor coolers containing not more than seven per cent of 2356
3031		-	alcohol by volume, two dollars and [forty-six] seventy-one cents per 2357
3032		-	wine gallon; 2358
3033		-	[(g)] (8) Still wine containing not more than twenty-one per cent of 2359
3034		-	absolute alcohol, produced by a person who produces not more than 2360
3035		-	fifty-five thousand wine gallons of wine during the calendar year, 2361
3036		-	[eighteen] twenty cents per wine gallon, provided such person 2362
3037		-	presents to each distributor of alcoholic beverages described in this 2363
3038		-	section a certificate, issued by the commissioner, stating that such 2364
3039		-	person produces not more than fifty-five thousand wine gallons of 2365
3040		-	wine during the calendar year. The commissioner is authorized to 2366
3041		-	issue such certificates, prescribe the procedures for obtaining such 2367
3042		-	certificates and prescribe their form; and 2368 Substitute Bill No. 877
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3048		-
3049		-	[(h)] (9) Cider containing not more than seven per cent of absolute 2369
3050		-	alcohol shall be subject to the same rate as applies to beer, as provided 2370
3051		-	in [subsection (a)] subdivision (1) of this section. 2371
3052		-	Sec. 40. (Effective July 1, 2019) (a) No person, except a licensed 2372
3053		-	distributor, shall, on or after July 1, 2019, sell, or after August 15, 2019, 2373
3054		-	possess with intent to sell, alcoholic beverages owned by such person 2374
3055		-	and held within this state on July 1, 2019, without complying with the 2375
3056		-	provisions of this section. Each such person shall take an inventory of 2376
3057		-	the alcoholic beverages owned by such person and held within this 2377
3058		-	state at the opening of business on July 1, 2019, including therein the 2378
3059		-	whole number and any fractional part of (1) barrels, half barrels, 2379
3060		-	quarter barrels and wine gallons of quantities less than quarter barrels, 2380
3061		-	of (A) beer, and (B) cider containing not more than seven per cent of 2381
3062		-	absolute alcohol; (2) wine gallons of liquor; (3) wine gallons of still 2382
3063		-	wines containing not more than twenty-one per cent of absolute 2383
3064		-	alcohol; (4) wine gallons of (A) still wines containing more than 2384
3065		-	twenty-one per cent of absolute alcohol, and (B) sparkling wines; (5) 2385
3066		-	proof gallons of alcohol in excess of 100 proof; and (6) liquor coolers 2386
3067		-	containing not more than seven per cent alcohol by volume. Not later 2387
3068		-	than August 15, 2019, each such person shall file a report of such 2388
3069		-	inventory with the Commissioner of Revenue Services on forms to be 2389
3070		-	prescribed or furnished by said commissioner. The tax on such 2390
3071		-	inventory, at the rates set forth in subsection (b) of this section, shall be 2391
3072		-	due and payable on the due date of such report. 2392
3073		-	(b) The tax on alcoholic beverages included in such inventory shall 2393
3074		-	be at the following rates: 2394
3075		-	(1) (A) Beer, and (B) cider containing not more than seven per cent 2395
3076		-	of absolute alcohol, seventy-two cents for each barrel, thirty-six cents 2396
3077		-	for each half barrel, eighteen cents for each quarter barrel and two 2397
3078		-	cents per wine gallon or fraction thereof on quantities less than a 2398
3079		-	quarter barrel; 2399
3080		-	(2) Liquor, fifty-four cents per wine gallon; 2400 Substitute Bill No. 877
3081		-
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3086		-
3087		-	(3) Still wines containing not more than twenty-one per cent of 2401
3088		-	absolute alcohol, seven cents per wine gallon; 2402
3089		-	(4) Still wines containing more than twenty-one per cent of absolute 2403
3090		-	alcohol and sparkling wines, eighteen cents per wine gallon; 2404
3091		-	(5) Alcohol in excess of 100 proof, fifty-four cents per proof gallon; 2405
3092		-	(6) Liquor coolers containing not more than seven per cent alcohol 2406
3093		-	by volume, twenty-five cents per wine gallon; and 2407
3094		-	(7) Still wines containing not more than twenty-one per cent of 2408
3095		-	absolute alcohol, produced by a person who produces not more than 2409
3096		-	fifty-five thousand wine gallons of wine during the calendar year, two 2410
3097		-	cents per wine gallon. 2411
3098		-	(c) If any person required to file a report under this section fails to 2412
3099		-	file such report on or before August 15, 2019, the commissioner shall 2413
3100		-	make an estimate of the amounts of alcoholic beverages of the 2414
3101		-	categories specified in subsection (b) of this section owned by such 2415
3102		-	person and held within this state on July 1, 2019, based on any 2416
3103		-	information in the commissioner's possession or that may come into 2417
3104		-	the commissioner's possession. The provisions of chapter 220 of the 2418
3105		-	general statutes pertaining to failure to file returns, examination of 2419
3106		-	returns by the commissioner, the issuance of deficiency assessments or 2420
3107		-	assessments where no return has been filed, the collection of tax, the 2421
3108		-	imposition of penalties and the accrual of interest shall apply to the 2422
3109		-	persons required to pay the tax imposed under this section as if such 2423
3110		-	persons were distributors licensed under chapter 220 of the general 2424
3111		-	statutes. Failure to file such report and pay the tax when due shall be 2425
3112		-	sufficient reason to revoke any state license or permit issued by the 2426
3113		-	Department of Revenue Services to such person. 2427
3114		-	(d) The Commissioner of Consumer Protection shall cooperate with 2428
3115		-	the Commissioner of Revenue Services in the enforcement of the tax 2429
3116		-	imposed pursuant to this section. 2430 Substitute Bill No. 877
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3122		-
3123		-	Sec. 41. Section 12-541 of the general statutes is repealed and the 2431
3124		-	following is substituted in lieu thereof (Effective July 1, 2019, and 2432
3125		-	applicable to sales made on or after July 1, 2019): 2433
3126		-	(a) [There] Except as provided in subsection (b) of this section, there 2434
3127		-	is hereby imposed a tax of ten per cent of the admission charge to any 2435
3128		-	place of amusement, entertainment or recreation. [, except that no] No 2436
3129		-	tax shall be imposed with respect to any admission charge: 2437
3130		-	(1) [when] When the admission charge is less than one dollar or, in 2438
3131		-	the case of any motion picture show, when the admission charge is not 2439
3132		-	more than five dollars; [,] 2440
3133		-	(2) [when] When a daily admission charge is imposed [which] that 2441
3134		-	entitles the patron to participate in an athletic or sporting activity; [,] 2442
3135		-	(3) [to] To any event, other than events held at the stadium facility, 2443
3136		-	as defined in section 32-651, if all of the proceeds from the event inure 2444
3137		-	exclusively to an entity [which] that is exempt from federal income tax 2445
3138		-	under the Internal Revenue Code, provided such entity actively 2446
3139		-	engages in and assumes the financial risk associated with the 2447
3140		-	presentation of such event; [,] 2448
3141		-	(4) [to] To any event, other than events held at the stadium facility, 2449
3142		-	as defined in section 32-651, [which] that, in the opinion of the 2450
3143		-	commissioner, is conducted primarily to raise funds for an entity 2451
3144		-	[which] that is exempt from federal income tax under the Internal 2452
3145		-	Revenue Code, provided the commissioner is satisfied that the net 2453
3146		-	profit [which] that inures to such entity from such event will exceed 2454
3147		-	the amount of the admissions tax [which] that, but for this subdivision, 2455
3148		-	would be imposed upon the person making such charge to such event; 2456
3149		-	[,] 2457
3150		-	(5) [other] Other than for events held at the stadium facility, as 2458
3151		-	defined in section 32-651, paid by centers of service for elderly persons, 2459
3152		-	as described in section 17a-310; [,] 2460 Substitute Bill No. 877
3153		-
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3158		-
3159		-	(6) [to] To any production featuring live performances by actors or 2461
3160		-	musicians presented at Gateway's Candlewood Playhouse, Ocean 2462
3161		-	Beach Park or any nonprofit theater or playhouse in the state, provided 2463
3162		-	such theater or playhouse possesses evidence confirming exemption 2464
3163		-	from federal tax under Section 501 of the Internal Revenue Code; [,] 2465
3164		-	(7) [to] To any carnival or amusement ride; [,] 2466
3165		-	(8) [to] To any interscholastic athletic event held at the stadium 2467
3166		-	facility, as defined in section 32-651; [,] or 2468
3167		-	(9) [if] If the admission charge would have been subject to tax under 2469
3168		-	the provisions of section 12-542 of the general statutes, revision of 2470
3169		-	1958, revised to January 1, 1999. 2471
3170		-	(b) (1) For the following venues and events, for sales occurring on or 2472
3171		-	after July 1, 2019, but prior to July 1, 2020, the tax imposed under this 2473
3172		-	section shall be seven and one-half per cent of the admission charge to: 2474
3173		-	(A) Any event at the XL Center in Hartford; 2475
3174		-	(B) Any event at the Dunkin' Donuts Park in Hartford; 2476
3175		-	(C) Any athletic event presented by a member team of the Atlantic 2477
3176		-	League of Professional Baseball at the New Britain Stadium; 2478
3177		-	(D) Any event at the Webster Bank Arena in Bridgeport; 2479
3178		-	(E) Any event at the Oakdale Theatre in Wallingford; and 2480
3179		-	(F) Any event other than an interscholastic athletic event at the 2481
3180		-	stadium facility, as defined in section 32-651. 2482
3181		-	(2) For the venues and events specified in subdivision (1) of this 2483
3182		-	subsection, for sales occurring on or after July 1, 2020, the tax imposed 2484
3183		-	under this section shall be five per cent of the admission charge. 2485
3184		-	(3) On and after July 1, [2000] 2001, and prior to October 1, 2019, the 2486 Substitute Bill No. 877
3185		-
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3190		-
3191		-	tax imposed under this section on any motion picture show shall be 2487
3192		-	[eight] six per cent of the admission charge and, on and after [July 1, 2488
3193		-	2001] October 1, 2019, the tax imposed on any such motion picture 2489
3194		-	show shall be six and thirty-five-hundredths per cent of such charge. 2490
3195		-	[(b)] (c) The tax shall be imposed upon the person making such 2491
3196		-	charge and reimbursement for the tax shall be collected by such person 2492
3197		-	from the purchase. Such reimbursement, termed "tax", shall be paid by 2493
3198		-	the purchaser to the person making the admission charge. Such tax, 2494
3199		-	when added to the admission charge, shall be a debt from the 2495
3200		-	purchaser to the person making the admission charge and shall be 2496
3201		-	recoverable at law. The amount of tax reimbursement, when so 2497
3202		-	collected, shall be deemed to be a special fund in trust for the state of 2498
3203		-	Connecticut. 2499
3204		-	Sec. 42. (NEW) (Effective July 1, 2019) (a) As used in this section: 2500
3205		-	(1) "Single-use checkout bag" means a plastic bag with a thickness of 2501
3206		-	less than four mils or a paper bag that is provided by a store to a 2502
3207		-	customer at the point of sale. "Single-use checkout bag" does not 2503
3208		-	include: (A) A compostable plastic bag; (B) a bag provided to contain 2504
3209		-	meat, seafood, loose produce or other unwrapped food items; (C) a 2505
3210		-	newspaper bag; or (D) a laundry or dry cleaning bag; 2506
3211		-	(2) "Compostable plastic bag" means a plastic bag that (A) conforms 2507
3212		-	to the American Society of Testing Materials (ASTM) standard D6400; 2508
3213		-	(B) is certified and labeled as meeting the ASTM standard D6400 2509
3214		-	standard specification by a recognized verification entity; and (C) is 2510
3215		-	capable of undergoing biological decomposition in a compost site such 2511
3216		-	that the material breaks down into carbon dioxide, water, inorganic 2512
3217		-	compounds and biomass at a rate consistent with known compostable 2513
3218		-	materials; and 2514
3219		-	(3) "Store" means any retailer, as defined in section 12-407 of the 2515
3220		-	general statutes, as amended by this act, that maintains a retail store 2516
3221		-	within the state and sells tangible personal property directly to the 2517 Substitute Bill No. 877
3222		-
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3227		-
3228		-	public. 2518
3229		-	(b) Each store shall charge a fee of ten cents for each single-use 2519
3230		-	checkout bag provided to a customer at the point of sale. The store 2520
3231		-	shall indicate the number of single-use checkout bags provided and 2521
3232		-	the total amount of the fee charged on any transaction receipt provided 2522
3233		-	to a customer. Any fees collected pursuant to this subsection shall be 2523
3234		-	excluded from gross receipts under chapter 219 of the general statutes. 2524
3235		-	(c) Each store shall report all fees collected pursuant to subsection 2525
3236		-	(b) of this section to the Commissioner of Revenue Services with its 2526
3237		-	return due under section 12-414 of the general statutes and remit 2527
3238		-	payment at the same time and in the same form and manner required 2528
3239		-	under 12-414 of the general statutes. 2529
3240		-	(d) Any fees due and unpaid under this section shall be subject to 2530
3241		-	the penalties and interest established under section 12-419 of the 2531
3242		-	general statutes and the amount of such fee, penalty or interest, due 2532
3243		-	and unpaid, may be collected under the provisions of section 12-35 of 2533
3244		-	the general statutes as if they were taxes due to the state. 2534
3245		-	(e) The provisions of sections 12-415, 12-416 and 12-421 to 12-428, 2535
3246		-	inclusive, of the general statutes shall apply to the provisions of this 2536
3247		-	section in the same manner and with the same force and effect as if the 2537
3248		-	language of said sections had been incorporated in full into this section 2538
3249		-	and had expressly referred to the fee imposed under this section, 2539
3250		-	except to the extent that any such provision is inconsistent with a 2540
3251		-	provision of this section. 2541
3252		-	(f) The Commissioner of Revenue Services, in consultation with the 2542
3253		-	Commissioner of Energy and Environmental Protection, may adopt 2543
3254		-	regulations in accordance with the provisions of chapter 54 of the 2544
3255		-	general statutes, to carry out the provisions of this section. 2545
3256		-	(g) At the close of each fiscal year commencing with the fiscal year 2546
3257		-	ending June 30, 2020, the Comptroller is authorized to record as 2547
3258		-	revenue for such fiscal year the amount of the fee imposed under the 2548 Substitute Bill No. 877
3259		-
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3264		-
3265		-	provisions of this section that is received by the Commissioner of 2549
3266		-	Revenue Services not later than five business days from the last day of 2550
3267		-	July immediately following the end of such fiscal year. 2551
3268		-	Sec. 43. Section 12-263q of the general statutes is repealed and the 2552
3269		-	following is substituted in lieu thereof (Effective from passage): 2553
3270		-	(a) (1) For each calendar quarter commencing on or after July 1, 2554
3271		-	2017, each hospital shall pay a tax on the total net revenue received by 2555
3272		-	such hospital for the provision of inpatient hospital services and 2556
3273		-	outpatient hospital services. 2557
3274		-	(A) On and after July 1, 2017, [and prior to July 1, 2019,] the rate of 2558
3275		-	tax for the provision of inpatient hospital services shall be six per cent 2559
3276		-	of each hospital's audited net revenue for the fiscal year, [2016] as set 2560
3277		-	forth in subparagraph (C) of this subdivision, attributable to inpatient 2561
3278		-	hospital services. 2562
3279		-	(B) On and after July 1, 2017, [and prior to July 1, 2019,] the rate of 2563
3280		-	tax for the provision of outpatient hospital services shall be nine 2564
3281		-	hundred million dollars less the total tax imposed on all hospitals for 2565
3282		-	the provision of inpatient hospital services, which sum shall be 2566
3283		-	divided by the total audited net revenue for the fiscal year, [2016] as 2567
3284		-	set forth in subparagraph (C) of this subdivision, attributable to 2568
3285		-	outpatient hospital services, of all hospitals that are required to pay 2569
3286		-	such tax. 2570
3287		-	(C) [On and after July 1, 2019, the rate of tax for the provision of 2571
3288		-	inpatient hospital services and outpatient hospital services shall be 2572
3289		-	three hundred eighty-four million dollars divided by the total audited 2573
3290		-	net revenue for fiscal year 2016, of all hospitals that are required to pay 2574
3291		-	such tax.] For the state fiscal years commencing July 1, 2017, and July 2575
3292		-	1, 2018, the fiscal year upon which the tax shall be imposed under 2576
3293		-	subparagraphs (A) and (B) of this subdivision shall be fiscal year 2016. 2577
3294		-	For the biennium commencing July 1, 2019, and for each biennium 2578
3295		-	thereafter, the fiscal year upon which the tax shall be imposed under 2579 Substitute Bill No. 877
3296		-
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3301		-
3302		-	subparagraphs (A) and (B) of this subdivision for each year of the 2580
3303		-	biennium shall be the fiscal year occurring three years prior to the first 2581
3304		-	state fiscal year of each biennium. 2582
3305		-	(D) If a hospital or hospitals subject to the tax imposed under this 2583
3306		-	subdivision merge, consolidate or otherwise reorganize, the surviving 2584
3307		-	hospital shall assume and be liable for the total tax imposed under this 2585
3308		-	subdivision on the merging, consolidating or reorganizing hospitals, 2586
3309		-	including any outstanding liabilities from periods prior to such 2587
3310		-	merger, consolidation or reorganization. If a hospital ceases to operate 2588
3311		-	as a hospital for any reason other than a merger, consolidation or 2589
3312		-	reorganization, or ceases for any reason to be subject to the tax 2590
3313		-	imposed under this subdivision, the amount of tax due from each 2591
3314		-	taxpayer under this subdivision shall not be recalculated to take into 2592
3315		-	account such occurrence but the total amount of such tax to be 2593
3316		-	collected under subparagraphs (A) and (B) of this subdivision shall be 2594
3317		-	reduced by the amount of the tax liability imposed on the hospital that 2595
3318		-	is no longer subject to the tax. 2596
3319		-	(E) (i) If the Commissioner of Social Services determines for any 2597
3320		-	fiscal year that the effective rate of tax for the tax imposed on net 2598
3321		-	revenue for the provision of inpatient hospital services exceeds the rate 2599
3322		-	permitted under the provisions of 42 CFR 433.68(f), as amended from 2600
3323		-	time to time, the amount of tax collected that exceeds the permissible 2601
3324		-	amount shall be refunded to hospitals, in proportion to the amount of 2602
3325		-	net revenue for the provision of inpatient hospital services upon which 2603
3326		-	the hospitals were taxed. The effective rate of tax shall be calculated by 2604
3327		-	comparing the amount of tax paid by hospitals on net revenue for the 2605
3328		-	provision of inpatient hospital services in a state fiscal year with the 2606
3329		-	amount of net revenue received by hospitals subject to the tax for the 2607
3330		-	provision of inpatient hospital services for the equivalent fiscal year. 2608
3331		-	(ii) On or before July 1, 2020, and annually thereafter, each hospital 2609
3332		-	subject to the tax imposed under this subdivision shall report to the 2610
3333		-	Commissioner of Social Services, in the manner prescribed by and on 2611
3334		-	forms provided by said commissioner, the amount of tax paid 2612 Substitute Bill No. 877
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3340		-
3341		-	pursuant to this subsection by such hospital and the amount of net 2613
3342		-	revenue received by such hospital for the provision of inpatient 2614
3343		-	hospital services, in the state fiscal year commencing two years prior to 2615
3344		-	each such reporting date. Not later than ninety days after said 2616
3345		-	commissioner receives completed reports from all hospitals required to 2617
3346		-	submit such reports, said commissioner shall notify the Commissioner 2618
3347		-	of Revenue Services of the amount of any refund due each hospital to 2619
3348		-	be in compliance with 42 CFR 433.68(f), as amended from time to time. 2620
3349		-	Not later than thirty days after receiving such notice, the 2621
3350		-	Commissioner of Revenue Services shall notify the Comptroller of the 2622
3351		-	amount of each such refund and the Comptroller shall draw an order 2623
3352		-	on the Treasurer for payment of each such refund. No interest shall be 2624
3353		-	added to any refund issued pursuant to this subparagraph. 2625
3354		-	(2) Except as provided in subdivision (3) of this subsection, each 2626
3355		-	[such] hospital subject to the tax imposed under subdivision (1) of this 2627
3356		-	subsection shall be required to pay the total amount due in four 2628
3357		-	quarterly payments consistent with section 12-263s, with the first 2629
3358		-	quarter commencing with the first day of each state fiscal year and the 2630
3359		-	last quarter ending on the last day of each state fiscal year. Hospitals 2631
3360		-	shall make all payments required under this subsection in accordance 2632
3361		-	with procedures established by and on forms provided by the 2633
3362		-	commissioner. 2634
3363		-	(3) (A) For the state fiscal year commencing July 1, 2017, each 2635
3364		-	hospital required to pay tax on inpatient hospital services or outpatient 2636
3365		-	hospital services shall make an estimated tax payment on December 2637
3366		-	15, 2017, which estimated payment shall be equal to one hundred 2638
3367		-	thirty-three per cent of the tax due under chapter 211a for the period 2639
3368		-	ending June 30, 2017. If a hospital was not required to pay tax under 2640
3369		-	[said] chapter 211a on either inpatient hospital services or outpatient 2641
3370		-	hospital services, such hospital shall make its estimated payment 2642
3371		-	based on its unaudited net patient revenue. 2643
3372		-	(B) Each hospital required to pay tax pursuant to this subdivision on 2644
3373		-	inpatient hospital services or outpatient hospital services shall pay the 2645 Substitute Bill No. 877
3374		-
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3379		-
3380		-	remaining balance determined to be due in two equal payments, which 2646
3381		-	shall be due on April 30, 2018, and July 31, 2018, respectively. 2647
3382		-	(C) (i) For each state fiscal year commencing on or after July 1, 2017, 2648
3383		-	and prior to July 1, 2019, each hospital required to pay tax on inpatient 2649
3384		-	hospital services or outpatient hospital services shall calculate the 2650
3385		-	amount of tax due on forms prescribed by the commissioner by 2651
3386		-	multiplying the applicable rate set forth in subdivision (1) of this 2652
3387		-	subsection by its audited net revenue for fiscal year 2016. [Hospitals 2653
3388		-	shall make all payments required under this section in accordance with 2654
3389		-	procedures established by and on forms provided by the 2655
3390		-	commissioner.] 2656
3391		-	(ii) For each state fiscal year commencing on or after July 1, 2019, 2657
3392		-	each hospital required to pay tax on inpatient hospital services or 2658
3393		-	outpatient hospital services shall calculate the amount of tax due on 2659
3394		-	forms prescribed by the commissioner by multiplying the applicable 2660
3395		-	rate set forth in subdivision (1) of this subsection by its audited net 2661
3396		-	revenue for the fiscal year, as set forth in subparagraph (C) of 2662
3397		-	subdivision (1) of this subsection. 2663
3398		-	(D) The commissioner shall apply any payment made by a hospital 2664
3399		-	in connection with the tax under chapter 211a for the period ending 2665
3400		-	September 30, 2017, as a partial payment of such hospital's estimated 2666
3401		-	tax payment due on December 15, 2017, under subparagraph (A) of 2667
3402		-	this subdivision. The commissioner shall return to a hospital any credit 2668
3403		-	claimed by such hospital in connection with the tax imposed under 2669
3404		-	[said] chapter 211a for the period ending September 30, 2017, for 2670
3405		-	assignment as provided under section 12-263s. 2671
3406		-	(4) (A) [Each] (i) For each state fiscal year commencing on or after 2672
3407		-	July 1, 2017, and prior to July 1, 2019, each hospital required to pay tax 2673
3408		-	on inpatient hospital services or outpatient hospital services shall 2674
3409		-	submit to the commissioner such information as the commissioner 2675
3410		-	requires in order to calculate the audited net inpatient revenue for 2676
3411		-	fiscal year 2016, the audited net outpatient revenue for fiscal year 2016 2677 Substitute Bill No. 877
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3417		-
3418		-	and the audited net revenue for fiscal year 2016 of all such health care 2678
3419		-	providers. Such information shall be provided to the commissioner not 2679
3420		-	later than January 1, 2018. The commissioner shall make additional 2680
3421		-	requests for information as necessary to fully audit each hospital's net 2681
3422		-	revenue. Upon completion of the commissioner's examination, the 2682
3423		-	commissioner shall notify, prior to February 28, 2018, each hospital of 2683
3424		-	its audited net inpatient revenue for fiscal year 2016, audited net 2684
3425		-	outpatient revenue for fiscal year 2016 and audited net revenue for 2685
3426		-	fiscal year 2016. 2686
3427		-	(ii) For each state fiscal year commencing on or after July 1, 2019, 2687
3428		-	each hospital required to pay tax on inpatient hospital services or 2688
3429		-	outpatient hospital services shall submit to the commissioner 2689
3430		-	biennially such information as the commissioner requires in order to 2690
3431		-	calculate for the applicable fiscal year, as set forth in subparagraph (C) 2691
3432		-	of subdivision (1) of this subsection, the audited net inpatient revenue, 2692
3433		-	the audited net outpatient revenue and the audited net revenue of all 2693
3434		-	such health care providers. For the state fiscal year commencing July 1, 2694
3435		-	2019, such information shall be provided to the commissioner not later 2695
3436		-	than June 30, 2019. For the biennium commencing July 1, 2021, and 2696
3437		-	each biennium thereafter, such information shall be provided to the 2697
3438		-	commissioner not later than January fifteenth of the second year of the 2698
3439		-	biennium immediately preceding. The commissioner shall make 2699
3440		-	additional requests for information as necessary to fully audit each 2700
3441		-	hospital's net revenue. Upon completion of the commissioner's 2701
3442		-	examination, the commissioner shall notify each hospital of its audited 2702
3443		-	net inpatient revenue, audited net outpatient revenue and audited net 2703
3444		-	revenue for the applicable fiscal year, as set forth in subparagraph (C) 2704
3445		-	of subdivision (1) of this subsection. 2705
3446		-	(B) Any hospital that fails to provide the requested information 2706
3447		-	[prior to January 1, 2018,] by the dates specified in subparagraph (A) of 2707
3448		-	this subdivision or fails to comply with a request for additional 2708
3449		-	information made under this subdivision shall be subject to a penalty 2709
3450		-	of one thousand dollars per day for each day the hospital fails to 2710 Substitute Bill No. 877
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3456		-
3457		-	provide the requested information or additional information. 2711
3458		-	(C) The commissioner may engage an independent auditor to assist 2712
3459		-	in the performance of the commissioner's duties and responsibilities 2713
3460		-	under this subdivision. 2714
3461		-	(5) Net revenue derived from providing a health care item or service 2715
3462		-	to a patient shall be taxed only one time under this section. 2716
3463		-	(6) (A) For purposes of this section: 2717
3464		-	(i) ["Audited net inpatient revenue for fiscal year 2016"] "Audited 2718
3465		-	net inpatient revenue for the fiscal year" means the amount of revenue 2719
3466		-	that the commissioner determines, in accordance with federal law, that 2720
3467		-	a hospital received for the provision of inpatient hospital services 2721
3468		-	during the [2016] applicable federal fiscal year; 2722
3469		-	(ii) ["Audited net outpatient revenue for fiscal year 2016"] "Audited 2723
3470		-	net outpatient revenue for the fiscal year" means the amount of 2724
3471		-	revenue that the commissioner determines, in accordance with federal 2725
3472		-	law, that a hospital received for the provision of outpatient hospital 2726
3473		-	services during the [2016] applicable federal fiscal year; and 2727
3474		-	(iii) ["Audited net revenue for fiscal year 2016"] "Audited net 2728
3475		-	revenue for the fiscal year" means net revenue, as reported in each 2729
3476		-	hospital's audited financial statement, less the amount of revenue that 2730
3477		-	the commissioner determines, in accordance with federal law, that a 2731
3478		-	hospital received from other than the provision of inpatient hospital 2732
3479		-	services and outpatient hospital services. The total audited net revenue 2733
3480		-	for the fiscal year [2016] shall be the sum of all audited net revenue for 2734
3481		-	the applicable fiscal year [2016] for all hospitals required to pay tax on 2735
3482		-	inpatient hospital services and outpatient hospital services. 2736
3483		-	(B) Audited net inpatient revenue and audited net outpatient 2737
3484		-	revenue shall be based on information provided by each hospital 2738
3485		-	required to pay tax on inpatient hospital services or outpatient hospital 2739
3486		-	services. 2740 Substitute Bill No. 877
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3492		-
3493		-	(b) (1) The Commissioner of Social Services shall seek approval from 2741
3494		-	the Centers for Medicare and Medicaid Services to exempt from the 2742
3495		-	net revenue tax imposed under subsection (a) of this section the 2743
3496		-	following: (A) Specialty hospitals; (B) children's general hospitals; and 2744
3497		-	(C) hospitals operated exclusively by the state other than a short-term 2745
3498		-	acute hospital operated by the state as a receiver pursuant to chapter 2746
3499		-	920. Any hospital for which the Centers for Medicare and Medicaid 2747
3500		-	Services grants an exemption shall be exempt from the net revenue tax 2748
3501		-	imposed under subsection (a) of this section. Any hospital for which 2749
3502		-	the Centers for Medicare and Medicaid Services denies an exemption 2750
3503		-	shall be deemed to be a hospital for purposes of this section and shall 2751
3504		-	be required to pay the net revenue tax imposed under subsection (a) of 2752
3505		-	this section on inpatient hospital services and outpatient hospital 2753
3506		-	services. 2754
3507		-	(2) Each hospital shall provide to the Commissioner of Social 2755
3508		-	Services, upon request, such information as said commissioner may 2756
3509		-	require to make any computations necessary to seek approval for 2757
3510		-	exemption under this subsection. 2758
3511		-	(3) As used in this subsection, (A) "specialty hospital" means a 2759
3512		-	health care facility, as defined in section 19a-630, other than a facility 2760
3513		-	licensed by the Department of Public Health as a short-term general 2761
3514		-	hospital or a short-term children's hospital. "Specialty hospital" 2762
3515		-	includes, but is not limited to, a psychiatric hospital or a chronic 2763
3516		-	disease hospital, and (B) "children's general hospital" means a health 2764
3517		-	care facility, as defined in section 19a-630, that is licensed by the 2765
3518		-	Department of Public Health as a short-term children's hospital. 2766
3519		-	"Children's general hospital" does not include a specialty hospital. 2767
3520		-	(c) Prior to [January 1, 2018] July 1, 2019, and every three years 2768
3521		-	thereafter, the Commissioner of Social Services shall seek approval 2769
3522		-	from the Centers for Medicare and Medicaid Services to exempt 2770
3523		-	financially distressed hospitals from the net revenue tax imposed on 2771
3524		-	outpatient hospital services. Any such hospital for which the Centers 2772
3525		-	for Medicare and Medicaid Services grants an exemption shall be 2773 Substitute Bill No. 877
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3531		-
3532		-	exempt from the net revenue tax imposed on outpatient hospital 2774
3533		-	services under subsection (a) of this section. Any hospital for which the 2775
3534		-	Centers for Medicare and Medicaid Services denies an exemption shall 2776
3535		-	be required to pay the net revenue tax imposed on outpatient hospital 2777
3536		-	services under subsection (a) of this section. For purposes of this 2778
3537		-	subsection, "financially distressed hospital" means a hospital that has 2779
3538		-	experienced over a five-year period an average net loss of more than 2780
3539		-	five per cent of aggregate revenue. A hospital has an average net loss 2781
3540		-	of more than five per cent of aggregate revenue if such a loss is 2782
3541		-	reflected in the five most recent years of financial reporting that have 2783
3542		-	been made available by the Health Systems Planning Unit of the Office 2784
3543		-	of Health Strategy for such hospital in accordance with section 19a-670 2785
3544		-	as of the effective date of the request for approval which effective date 2786
3545		-	shall be July first of the year in which the request is made. 2787
3546		-	(d) The commissioner shall issue guidance regarding the 2788
3547		-	administration of the tax on inpatient hospital services and outpatient 2789
3548		-	hospital services. Such guidance shall be issued upon completion of a 2790
3549		-	study of the applicable federal law governing the administration of tax 2791
3550		-	on inpatient hospital services and outpatient hospital services. The 2792
3551		-	commissioner shall conduct such study in collaboration with the 2793
3552		-	Commissioner of Social Services, the Secretary of the Office of Policy 2794
3553		-	and Management, the Connecticut Hospital Association and the 2795
3554		-	hospitals subject to the tax imposed on inpatient hospital services and 2796
3555		-	outpatient hospital services. 2797
3556		-	(e) (1) The commissioner shall determine, in consultation with the 2798
3557		-	Commissioner of Social Services, the Secretary of the Office of Policy 2799
3558		-	and Management, the Connecticut Hospital Association and the 2800
3559		-	hospitals subject to the tax imposed on inpatient hospital services and 2801
3560		-	outpatient hospital services, if there is any underreporting of revenue 2802
3561		-	on hospitals' audited financial statements. Such consultation shall only 2803
3562		-	be as authorized under section 12-15. The commissioner shall issue 2804
3563		-	guidance, if necessary, to address any such underreporting. 2805
3564		-	(2) If the commissioner determines, in accordance with this 2806 Substitute Bill No. 877
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3570		-
3571		-	subsection, that a hospital underreported net revenue on its audited 2807
3572		-	financial statement, the amount of underreported net revenue shall be 2808
3573		-	added to the amount of net revenue reported on such hospital's 2809
3574		-	audited financial statement so as to comply with federal law and the 2810
3575		-	revised net revenue amount shall be used for purposes of calculating 2811
3576		-	the amount of tax owed by such hospital under this section. For 2812
3577		-	purposes of this subsection, "underreported net revenue" means any 2813
3578		-	revenue of a hospital subject to the tax imposed under this section that 2814
3579		-	is required to be included in net revenue from the provision of 2815
3580		-	inpatient hospital services and net revenue from the provision of 2816
3581		-	outpatient hospital services to comply with 42 CFR 433.56, as amended 2817
3582		-	from time to time, 42 CFR 433.68, as amended from time to time, and 2818
3583		-	Section 1903(w) of the Social Security Act, as amended from time to 2819
3584		-	time, but that was not reported on such hospital's audited financial 2820
3585		-	statement. Underreported net revenue shall only include revenue of 2821
3586		-	the hospital subject to such tax. 2822
3587		-	(f) Nothing in this section shall affect the commissioner's obligations 2823
3588		-	under section 12-15 regarding disclosure and inspection of returns and 2824
3589		-	return information. 2825
3590		-	(g) The provisions of section 17b-8 shall not apply to any exemption 2826
3591		-	or exemptions sought by the [Department] Commissioner of Social 2827
3592		-	Services from the Centers for Medicare and Medicaid Services under 2828
3593		-	this section. 2829
3594		-	Sec. 44. Subsection (a) of section 12-263r of the general statutes is 2830
3595		-	repealed and the following is substituted in lieu thereof (Effective from 2831
3596		-	passage): 2832
3597		-	(a) For each calendar quarter commencing on or after July 1, 2017, 2833
3598		-	there is hereby imposed a quarterly fee on each nursing home and 2834
3599		-	intermediate care facility in this state, which fee shall be the product of 2835
3600		-	each facility's total resident days during the calendar quarter 2836
3601		-	multiplied by the user fee. Except as otherwise provided in this 2837
3602		-	section, (1) the user fee for nursing homes shall be twenty-one dollars 2838 Substitute Bill No. 877
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3608		-
3609		-	and two cents, and (2) the user fee for intermediate care facilities shall 2839
3610		-	be (A) twenty-seven dollars and twenty-six cents for calendar quarters 2840
3611		-	commencing on or after July 1, 2017, and prior to July 1, 2019, and (B) 2841
3612		-	twenty-seven dollars and seventy-six cents for calendar quarters 2842
3613		-	commencing on or after July 1, 2019. As used in this subsection, 2843
3614		-	"resident day" means nursing home resident day and intermediate care 2844
3615		-	facility resident day, as applicable. 2845
3616		-	Sec. 45. Section 12-571 of the general statutes is repealed and the 2846
3617		-	following is substituted in lieu thereof (Effective October 1, 2019): 2847
3618		-	(a) The Commissioner of Consumer Protection shall enter into 2848
3619		-	negotiations with a person or business organization for the award of a 2849
3620		-	contract of sale of the off-track betting system including, but not 2850
3621		-	limited to, the assets and liabilities of the system and the right to 2851
3622		-	operate the system. Such contract of sale shall authorize the purchaser 2852
3623		-	of the system to establish and conduct a system of off-track betting on 2853
3624		-	races held within or without the state pursuant to the provisions of this 2854
3625		-	chapter. All proceeds derived from such sale shall be deposited as 2855
3626		-	provided in section 39 of public act 93-332. Until the effective date of 2856
3627		-	transfer of ownership of the off-track betting system, the commissioner 2857
3628		-	shall establish and conduct systems of off-track betting on races held 2858
3629		-	within or without the state pursuant to the provisions of this chapter. 2859
3630		-	(b) It is hereby declared that off-track betting on races conducted 2860
3631		-	under the administration or regulatory authority of the department in 2861
3632		-	the manner and subject to the conditions of this chapter shall be lawful 2862
3633		-	notwithstanding the provisions of any other law, general, special or 2863
3634		-	municipal, including any law prohibiting or restricting lotteries, 2864
3635		-	bookmaking or any other kind of gambling, it being the purpose of this 2865
3636		-	chapter to derive from such betting, as authorized by this chapter, a 2866
3637		-	reasonable revenue for the support of state government and to prevent 2867
3638		-	and curb unlawful bookmaking and illegal betting on races. 2868
3639		-	[(b)] (c) Until the effective date of transfer of ownership of the off-2869
3640		-	track betting system, the commissioner shall adopt rules and 2870 Substitute Bill No. 877
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3646		-
3647		-	regulations, consistent with this chapter, establishing and governing 2871
3648		-	the permitted method or methods of operation of the system of off-2872
3649		-	track betting. 2873
3650		-	(d) For the purposes of this section, the effective date of transfer of 2874
3651		-	ownership of the off-track betting system was June 30, 1993. 2875
3652		-	Sec. 46. (NEW) (Effective October 1, 2019) (a) For the purposes of this 2876
3653		-	section, "advance deposit wager" means an off-track betting wager on 2877
3654		-	racing events by means of telephone or other electronic means. Any 2878
3655		-	advance deposit wager that originates or is placed from within the 2879
3656		-	boundaries of the state shall be considered to be a wager made 2880
3657		-	exclusively in the state. 2881
3658		-	(b) (1) No person or business organization, other than the 2882
3659		-	authorized operator of the off-track betting system, shall conduct off-2883
3660		-	track betting in the state or accept off-track betting wagers or advance 2884
3661		-	deposit wagers originating or placed from within the boundaries of the 2885
3662		-	state. 2886
3663		-	(2) A violation of subdivision (1) of this subsection shall be an unfair 2887
3664		-	trade practice pursuant to subsection (a) of section 42-110b of the 2888
3665		-	general statutes and any person or business organization that violates 2889
3666		-	the provisions of said subdivision shall be further subject to the 2890
3667		-	penalty for professional gambling, as provided in subsection (b) of 2891
3668		-	section 53-278b of the general statutes, and for transmission of 2892
3669		-	gambling information, as provided in subsection (a) of section 53-278d 2893
3670		-	of the general statutes. 2894
3671		-	Sec. 47. (Effective from passage) For the fiscal years ending June 30, 2895
3672		-	2020, and June 30, 2021, the amount deemed appropriated pursuant to 2896
3673		-	sections 3-20i and 3-115b of the general statutes in each such fiscal year 2897
3674		-	shall be one dollar. 2898
3675		-	Sec. 48. (Effective July 1, 2019) Not later than June 30, 2020, the 2899
3676		-	Comptroller shall transfer $20,000,000 of the resources of the Special 2900
3677		-	Transportation Fund for the fiscal year ending June 30, 2020, to be 2901 Substitute Bill No. 877
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3683		-
3684		-	accounted for as revenue of the Special Transportation Fund for the 2902
3685		-	fiscal year ending June 30, 2021. 2903
3686		-	Sec. 49. (Effective from passage) Not later than June 30, 2019, the 2904
3687		-	Comptroller shall designate $100,000,000 of the resources of the 2905
3688		-	General Fund for the fiscal year ending June 30, 2019, to be accounted 2906
3689		-	for as revenue of the General Fund as follows: (1) $50,000,000 for the 2907
3690		-	fiscal year ending June 30, 2020, and $50,000,000 for the fiscal year 2908
3691		-	ending June 30, 2021. 2909
3692		-	Sec. 50. Subdivision (1) of subsection (a) of section 12-217 of the 2910
3693		-	general statutes is repealed and the following is substituted in lieu 2911
3694		-	thereof (Effective from passage): 2912
3695		-	(a) (1) In arriving at net income as defined in section 12-213, whether 2913
3696		-	or not the taxpayer is taxable under the federal corporation net income 2914
3697		-	tax, there shall be deducted from gross income, (A) all items deductible 2915
3698		-	under the Internal Revenue Code effective and in force on the last day 2916
3699		-	of the income year except (i) any taxes imposed under the provisions 2917
3700		-	of this chapter which are paid or accrued in the income year and in the 2918
3701		-	income year commencing January 1, 1989, and thereafter, any taxes in 2919
3702		-	any state of the United States or any political subdivision of such state, 2920
3703		-	or the District of Columbia, imposed on or measured by the income or 2921
3704		-	profits of a corporation which are paid or accrued in the income year, 2922
3705		-	(ii) deductions for depreciation, which shall be allowed as provided in 2923
3706		-	subsection (b) of this section, (iii) deductions for qualified domestic 2924
3707		-	production activities income, as provided in Section 199 of the Internal 2925
3708		-	Revenue Code, and (iv) in the case of any captive real estate 2926
3709		-	investment trust, the deduction for dividends paid provided under 2927
3710		-	Section 857(b)(2) of the Internal Revenue Code, and (B) additionally, in 2928
3711		-	the case of a regulated investment company, the sum of (i) the exempt-2929
3712		-	interest dividends, as defined in the Internal Revenue Code, and (ii) 2930
3713		-	expenses, bond premium, and interest related to tax-exempt income 2931
3714		-	that are disallowed as deductions under the Internal Revenue Code, 2932
3715		-	and (C) in the case of a taxpayer maintaining an international banking 2933
3716		-	facility as defined in the laws of the United States or the regulations of 2934 Substitute Bill No. 877
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3722		-
3723		-	the Board of Governors of the Federal Reserve System, as either may 2935
3724		-	be amended from time to time, the gross income attributable to the 2936
3725		-	international banking facility, provided, no expense or loss attributable 2937
3726		-	to the international banking facility shall be a deduction under any 2938
3727		-	provision of this section, and (D) additionally, in the case of all 2939
3728		-	taxpayers, all dividends as defined in the Internal Revenue Code 2940
3729		-	effective and in force on the last day of the income year not otherwise 2941
3730		-	deducted from gross income, including dividends received from a 2942
3731		-	DISC or former DISC as defined in Section 992 of the Internal Revenue 2943
3732		-	Code and dividends deemed to have been distributed by a DISC or 2944
3733		-	former DISC as provided in Section 995 of said Internal Revenue Code, 2945
3734		-	other than thirty per cent of dividends received from a domestic 2946
3735		-	corporation in which the taxpayer owns less than twenty per cent of 2947
3736		-	the total voting power and value of the stock of such corporation, and 2948
3737		-	(E) additionally, in the case of all taxpayers, the value of any capital 2949
3738		-	gain realized from the sale of any land, or interest in land, to the state, 2950
3739		-	any political subdivision of the state, or to any nonprofit land 2951
3740		-	conservation organization where such land is to be permanently 2952
3741		-	preserved as protected open space or to a water company, as defined 2953
3742		-	in section 25-32a, where such land is to be permanently preserved as 2954
3743		-	protected open space or as Class I or Class II water company land, and 2955
3744		-	(F) in the case of manufacturers, the amount of any contribution to a 2956
3745		-	manufacturing reinvestment account established pursuant to section 2957
3746		-	32-9zz in the income year that such contribution is made to the extent 2958
3747		-	not deductible for federal income tax purposes, [(G) additionally, to 2959
3748		-	the extent allowable under subsection (g) of section 32-776, the amount 2960
3749		-	paid by a 7/7 participant, as defined in section 32-776, for the 2961
3750		-	remediation of a brownfield,] and [(H)] (G) the amount of any 2962
3751		-	contribution made on or after December 23, 2017, by the state of 2963
3752		-	Connecticut or a political subdivision thereof to the extent included in 2964
3753		-	a company's gross income under Section 118(b)(2) of the Internal 2965
3754		-	Revenue Code. 2966
3755		-	Sec. 51. Sections 12-704f and 32-776 of the general statutes are 2967
3756		-	repealed. (Effective from passage and applicable to taxable years commencing 2968 Substitute Bill No. 877
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3762		-
3763		-	on or after January 1, 2019) 2969
3764		-	Sec. 52. Section 16-331ii of the general statutes is repealed. (Effective 2970
3765		-	July 1, 2019) 2971
3766		-	Sec. 53. Subdivision (91) of section 12-412 of the general statutes is 2972
3767		-	repealed. (Effective January 1, 2020) 2973
	1006	+	(b) The tax imposed by section 12-640, as amended by this act, shall 637
	1007	+	be paid by the donor. If the gift tax is not paid when due the donee of 638
	1008	+	any gift shall be personally liable for the tax to the extent of the value 639
	1009	+	of the gift. 640
	1010	+	(c) [(1)] With respect to Connecticut taxable gifts, as defined in 641
	1011	+	section 12-643, as amended by this act, made by a donor during a 642
	1012	+	calendar year commencing on or after January 1, 2016, but prior to 643
	1013	+	January 1, 2019, the aggregate amount of tax imposed by section 12-644
	1014	+	640, as amended by this act, for all calendar years commencing on or 645
	1015	+	after January 1, 2016, shall not exceed twenty million dollars. 646
	1016	+	[(2) With respect to Connecticut taxable gifts, as defined in section 647
	1017	+	12-643, made by a donor during a calendar year commencing on or 648
	1018	+	after January 1, 2019, the aggregate amount of tax imposed by section 649
	1019	+	12-640 for all calendar years commencing on or after January 1, 2016, 650
	1020	+	shall not exceed fifteen million dollars.] 651
	1021	+	Sec. 11. Subdivision (3) of section 12-643 of the general statutes is 652
	1022	+	repealed and the following is substituted in lieu thereof (Effective from 653
	1023	+	passage and applicable to estates of decedents dying on or after January 1, 654
	1024	+	2019): 655
	1025	+	(3) "Connecticut taxable gifts" means taxable gifts made during a 656
	1026	+	calendar year commencing on or after January 1, 2005, but prior to 657
	1027	+	January 1, 2019, that are, (A) for residents of this state, taxable gifts, 658
	1028	+	wherever located, but excepting gifts of real estate or tangible personal 659
	1029	+	property located outside this state, and (B) for nonresidents of this 660
	1030	+	state, gifts of real estate or tangible personal property located within 661
	1031	+	this state. 662
	1032	+	Governor's Bill No. 877
	1033	+
	1034	+
	1035	+
	1036	+	LCO No. 4566 28 of 138
	1037	+
	1038	+	Sec. 12. Subsections (a) to (e), inclusive, of section 12-391 of the 663
	1039	+	general statutes are repealed and the following is substituted in lieu 664
	1040	+	thereof (Effective from passage and applicable to estates of decedents dying on 665
	1041	+	or after January 1, 2019): 666
	1042	+	(a) With respect to estates of decedents who die prior to January 1, 667
	1043	+	2005, and except as otherwise provided in section 59 of public act 03-1 668
	1044	+	of the June 30 special session, a tax is imposed upon the transfer of the 669
	1045	+	estate of each person who at the time of death was a resident of this 670
	1046	+	state. The amount of the tax shall be the amount of the federal credit 671
	1047	+	allowable for estate, inheritance, legacy and succession taxes paid to 672
	1048	+	any state or the District of Columbia under the provisions of the 673
	1049	+	federal internal revenue code in force at the date of such decedent's 674
	1050	+	death in respect to any property owned by such decedent or subject to 675
	1051	+	such taxes as part of or in connection with the estate of such decedent. 676
	1052	+	If real or tangible personal property of such decedent is located outside 677
	1053	+	this state and is subject to estate, inheritance, legacy, or succession 678
	1054	+	taxes by any state or states, other than the state of Connecticut, or by 679
	1055	+	the District of Columbia for which such federal credit is allowable, the 680
	1056	+	amount of tax due under this section shall be reduced by the lesser of: 681
	1057	+	(1) The amount of any such taxes paid to such other state or states or 682
	1058	+	said district and allowed as a credit against the federal estate tax; or (2) 683
	1059	+	an amount computed by multiplying such federal credit by a fraction, 684
	1060	+	(A) the numerator of which is the value of that part of the decedent's 685
	1061	+	gross estate over which such other state or states or said district have 686
	1062	+	jurisdiction for estate tax purposes to the same extent to which this 687
	1063	+	state would assert jurisdiction for estate tax purposes under this 688
	1064	+	chapter with respect to the residents of such other state or states or 689
	1065	+	said district, and (B) the denominator of which is the value of the 690
	1066	+	decedent's gross estate. Property of a resident estate over which this 691
	1067	+	state has jurisdiction for estate tax purposes includes real property 692
	1068	+	situated in this state, tangible personal property having an actual situs 693
	1069	+	in this state, and intangible personal property owned by the decedent, 694
	1070	+	regardless of where it is located. The amount of any estate tax imposed 695
	1071	+	Governor's Bill No. 877
	1072	+
	1073	+
	1074	+
	1075	+	LCO No. 4566 29 of 138
	1076	+
	1077	+	under this subsection shall also be reduced, but not below zero, by the 696
	1078	+	amount of any tax that is imposed under chapter 216 and that is 697
	1079	+	actually paid to this state. 698
	1080	+	(b) With respect to the estates of decedents who die prior to January 699
	1081	+	1, 2005, and except as otherwise provided in section 59 of public act 03-700
	1082	+	1 of the June 30 special session, a tax is imposed upon the transfer of 701
	1083	+	the estate of each person who at the time of death was a nonresident of 702
	1084	+	this state, the amount of which shall be computed by multiplying (1) 703
	1085	+	the federal credit allowable for estate, inheritance, legacy, and 704
	1086	+	succession taxes paid to any state or states or the District of Columbia 705
	1087	+	under the provisions of the federal internal revenue code in force at the 706
	1088	+	date of such decedent's death in respect to any property owned by 707
	1089	+	such decedent or subject to such taxes as a part of or in connection 708
	1090	+	with the estate of such decedent by (2) a fraction, (A) the numerator of 709
	1091	+	which is the value of that part of the decedent's gross estate over which 710
	1092	+	this state has jurisdiction for estate tax purposes and (B) the 711
	1093	+	denominator of which is the value of the decedent's gross estate. 712
	1094	+	Property of a nonresident estate over which this state has jurisdiction 713
	1095	+	for estate tax purposes includes real property situated in this state and 714
	1096	+	tangible personal property having an actual situs in this state. The 715
	1097	+	amount of any estate tax imposed under this subsection shall also be 716
	1098	+	reduced, but not below zero, by the amount of any tax that is imposed 717
	1099	+	under chapter 216 and that is actually paid to this state. 718
	1100	+	(c) For purposes of this section and section 12-392, as amended by 719
	1101	+	this act: 720
	1102	+	(1) (A) "Connecticut taxable estate" means, with respect to the 721
	1103	+	estates of decedents dying on or after January 1, 2005, but prior to 722
	1104	+	January 1, 2010, (i) the gross estate less allowable deductions, as 723
	1105	+	determined under Chapter 11 of the Internal Revenue Code, plus (ii) 724
	1106	+	the aggregate amount of all Connecticut taxable gifts, as defined in 725
	1107	+	section 12-643, as amended by this act, made by the decedent for all 726
	1108	+	calendar years beginning on or after January 1, 2005, but prior to 727
	1109	+	Governor's Bill No. 877
	1110	+
	1111	+
	1112	+
	1113	+	LCO No. 4566 30 of 138
	1114	+
	1115	+	January 1, 2010. The deduction for state death taxes paid under Section 728
	1116	+	2058 of said code shall be disregarded. 729
	1117	+	(B) "Connecticut taxable estate" means, with respect to the estates of 730
	1118	+	decedents dying on or after January 1, 2010, but prior to January 1, 731
	1119	+	2015, (i) the gross estate less allowable deductions, as determined 732
	1120	+	under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 733
	1121	+	amount of all Connecticut taxable gifts, as defined in section 12-643, as 734
	1122	+	amended by this act, made by the decedent for all calendar years 735
	1123	+	beginning on or after January 1, 2005, but prior to January 1, 2015. The 736
	1124	+	deduction for state death taxes paid under Section 2058 of said code 737
	1125	+	shall be disregarded. 738
	1126	+	(C) "Connecticut taxable estate" means, with respect to the estates of 739
	1127	+	decedents dying on or after January 1, 2015, but prior to January 1, 740
	1128	+	2019, (i) the gross estate less allowable deductions, as determined 741
	1129	+	under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate 742
	1130	+	amount of all Connecticut taxable gifts, as defined in section 12-643, as 743
	1131	+	amended by this act, made by the decedent for all calendar years 744
	1132	+	beginning on or after January 1, 2005, but prior to January 1, 2019, 745
	1133	+	other than Connecticut taxable gifts that are includable in the gross 746
	1134	+	estate for federal estate tax purposes of the decedent, plus (iii) the 747
	1135	+	amount of any tax paid to this state pursuant to section 12-642, as 748
	1136	+	amended by this act, by the decedent or the decedent's estate on any 749
	1137	+	gift made by the decedent or the decedent's spouse during the three-750
	1138	+	year period preceding the date of the decedent's death. The deduction 751
	1139	+	for state death taxes paid under Section 2058 of the Internal Revenue 752
	1140	+	Code shall be disregarded. 753
	1141	+	(D) "Connecticut taxable estate" means, with respect to the estates of 754
	1142	+	decedents dying on or after January 1, 2019, (i) the gross estate less 755
	1143	+	allowable deductions, as determined under Chapter 11 of the Internal 756
	1144	+	Revenue Code, plus (ii) the aggregate amount of all taxable gifts, as 757
	1145	+	defined in section 12-643, as amended by this act, made by the 758
	1146	+	decedent for all calendar years beginning on or after January 1, 2005, 759
	1147	+	Governor's Bill No. 877
	1148	+
	1149	+
	1150	+
	1151	+	LCO No. 4566 31 of 138
	1152	+
	1153	+	but prior to January 1, 2019, other than Connecticut taxable gifts that 760
	1154	+	are includable in the gross estate for federal tax purposes of the 761
	1155	+	decedent, plus (iii) the amount of any tax paid to this state pursuant to 762
	1156	+	section 12-642, as amended by this act, by the decedent or the 763
	1157	+	decedent's estate on any gift made by the decedent or the decedent's 764
	1158	+	spouse during the three-year period preceding the date of the 765
	1159	+	decedent's death, plus (iv) the amount of any taxable gift, as defined in 766
	1160	+	Section 2503 of the Internal Revenue Code, excluding any taxable gift 767
	1161	+	made when the decedent was a nonresident or that is real property or 768
	1162	+	tangible personal property having an actual situs outside this state at 769
	1163	+	the time the gift was made, that is (I) made on or after January 1, 2019, 770
	1164	+	(II) not otherwise included in the decedent's gross estate, and (III) 771
	1165	+	made during the three-year period preceding the date of the decedent's 772
	1166	+	death. The deduction for state death taxes paid under Section 2058 of 773
	1167	+	the Internal Revenue Code shall be disregarded. 774
	1168	+	(2) "Internal Revenue Code" means the Internal Revenue Code of 775
	1169	+	1986, or any subsequent corresponding internal revenue code of the 776
	1170	+	United States, as amended from time to time, except in the event of 777
	1171	+	repeal of the federal estate tax, then all references to the Internal 778
	1172	+	Revenue Code in this section shall mean the Internal Revenue Code as 779
	1173	+	in force on the day prior to the effective date of such repeal. 780
	1174	+	(3) "Gross estate" means the gross estate, for federal estate tax 781
	1175	+	purposes. 782
	1176	+	(4) "Federal basic exclusion amount" means the dollar amount 783
	1177	+	published annually by the Internal Revenue Service at which a 784
	1178	+	decedent would be required to file a federal estate tax return based on 785
	1179	+	the value of the decedent's gross estate and federally taxable gifts. 786
	1180	+	(d) (1) (A) With respect to the estates of decedents who die on or 787
	1181	+	after January 1, 2005, but prior to January 1, 2010, a tax is imposed 788
	1182	+	upon the transfer of the estate of each person who at the time of death 789
	1183	+	was a resident of this state. The amount of the tax shall be determined 790
	1184	+	Governor's Bill No. 877
	1185	+
	1186	+
	1187	+
	1188	+	LCO No. 4566 32 of 138
	1189	+
	1190	+	using the schedule in subsection (g) of this section. A credit shall be 791
	1191	+	allowed against such tax for any taxes paid to this state pursuant to 792
	1192	+	section 12-642, as amended by this act, for Connecticut taxable gifts 793
	1193	+	made on or after January 1, 2005, but prior to January 1, 2010. 794
	1194	+	(B) With respect to the estates of decedents who die on or after 795
	1195	+	January 1, 2010, but prior to January 1, 2015, a tax is imposed upon the 796
	1196	+	transfer of the estate of each person who at the time of death was a 797
	1197	+	resident of this state. The amount of the tax shall be determined using 798
	1198	+	the schedule in subsection (g) of this section. A credit shall be allowed 799
	1199	+	against such tax for any taxes paid to this state pursuant to section 12-800
	1200	+	642, as amended by this act, for Connecticut taxable gifts made on or 801
	1201	+	after January 1, 2005, but prior to January 1, 2015, provided such credit 802
	1202	+	shall not exceed the amount of tax imposed by this section. 803
	1203	+	(C) With respect to the estates of decedents who die on or after 804
	1204	+	January 1, 2015, but prior to January 1, 2016, a tax is imposed upon the 805
	1205	+	transfer of the estate of each person who at the time of death was a 806
	1206	+	resident of this state. The amount of the tax shall be determined using 807
	1207	+	the schedule in subsection (g) of this section. A credit shall be allowed 808
	1208	+	against such tax for (i) any taxes paid to this state pursuant to section 809
	1209	+	12-642, as amended by this act, by the decedent or the decedent's estate 810
	1210	+	for Connecticut taxable gifts made on or after January 1, 2005, but prior 811
	1211	+	to January 1, 2016, and (ii) any taxes paid by the decedent's spouse to 812
	1212	+	this state pursuant to section 12-642, as amended by this act, for 813
	1213	+	Connecticut taxable gifts made by the decedent on or after January 1, 814
	1214	+	2005, but prior to January 1, 2016, that are includable in the gross estate 815
	1215	+	of the decedent, provided such credit shall not exceed the amount of 816
	1216	+	tax imposed by this section. 817
	1217	+	(D) With respect to the estates of decedents who die on or after 818
	1218	+	January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 819
	1219	+	transfer of the estate of each person who at the time of death was a 820
	1220	+	resident of this state. The amount of the tax shall be determined using 821
	1221	+	the schedule in subsection (g) of this section. A credit shall be allowed 822
	1222	+	Governor's Bill No. 877
	1223	+
	1224	+
	1225	+
	1226	+	LCO No. 4566 33 of 138
	1227	+
	1228	+	against such tax for (i) any taxes paid to this state pursuant to section 823
	1229	+	12-642, as amended by this act, by the decedent or the decedent's estate 824
	1230	+	for Connecticut taxable gifts made on or after January 1, 2005, but prior 825
	1231	+	to January 1, 2019, and (ii) any taxes paid by the decedent's spouse to 826
	1232	+	this state pursuant to section 12-642, as amended by this act, for 827
	1233	+	Connecticut taxable gifts made by the decedent on or after January 1, 828
	1234	+	2005, but prior to January 1, 2019, that are includable in the gross estate 829
	1235	+	of the decedent, provided such credit shall not exceed the amount of 830
	1236	+	tax imposed by this section. In no event shall the amount of tax 831
	1237	+	payable under this section exceed twenty million dollars. Such twenty-832
	1238	+	million-dollar limit shall be reduced by the amount of (I) any taxes 833
	1239	+	paid to this state pursuant to section 12-642, as amended by this act, by 834
	1240	+	the decedent or the decedent's estate for Connecticut taxable gifts 835
	1241	+	made on or after January 1, 2016, and (II) any taxes paid by the 836
	1242	+	decedent's spouse to this state pursuant to section 12-642, as amended 837
	1243	+	by this act, for Connecticut taxable gifts made by the decedent on or 838
	1244	+	after January 1, 2016, but prior to January 1, 2019, that are includable in 839
	1245	+	the gross estate of the decedent, but in no event shall the amount be 840
	1246	+	reduced below zero. 841
	1247	+	(E) With respect to the estates of decedents who die on or after 842
	1248	+	January 1, 2019, a tax is imposed upon the transfer of the estate of each 843
	1249	+	person who at the time of death was a resident of this state. The 844
	1250	+	amount of the tax shall be determined using the schedule in subsection 845
	1251	+	(g) of this section. A credit shall be allowed against such tax for (i) any 846
	1252	+	taxes paid to this state pursuant to section 12-642, as amended by this 847
	1253	+	act, by the decedent or the decedent's estate for Connecticut taxable 848
	1254	+	gifts made on or after January 1, 2005, and (ii) any taxes paid by the 849
	1255	+	decedent's spouse to this state pursuant to section 12-642, as amended 850
	1256	+	by this act, for Connecticut taxable gifts made by the decedent on or 851
	1257	+	after January 1, 2005, that are includable in the gross estate of the 852
	1258	+	decedent, provided such credit shall not exceed the amount of tax 853
	1259	+	imposed by this section. In no event shall the amount of tax payable 854
	1260	+	under this section exceed fifteen million dollars. Such fifteen-million-855
	1261	+	Governor's Bill No. 877
	1262	+
	1263	+
	1264	+
	1265	+	LCO No. 4566 34 of 138
	1266	+
	1267	+	dollar limit shall be reduced by the amount of (I) any taxes paid to this 856
	1268	+	state pursuant to section 12-642, as amended by this act, by the 857
	1269	+	decedent or the decedent's estate for Connecticut taxable gifts made on 858
	1270	+	or after January 1, 2016, and (II) any taxes paid by the decedent's 859
	1271	+	spouse to this state pursuant to section 12-642, as amended by this act, 860
	1272	+	for Connecticut taxable gifts made by the decedent on or after January 861
	1273	+	1, 2016, that are includable in the gross estate of the decedent, but in no 862
	1274	+	event shall the amount be reduced below zero. 863
	1275	+	(2) If real or tangible personal property of such decedent is located 864
	1276	+	outside this state, the amount of tax due under this section shall be 865
	1277	+	reduced by an amount computed by multiplying the tax otherwise due 866
	1278	+	pursuant to subdivision (1) of this subsection, without regard to the 867
	1279	+	credit allowed for any taxes paid to this state pursuant to section 12-868
	1280	+	642, as amended by this act, by a fraction, (A) the numerator of which 869
	1281	+	is the value of that part of the decedent's gross estate attributable to 870
	1282	+	real or tangible personal property located outside of the state, and (B) 871
	1283	+	the denominator of which is the value of the decedent's gross estate. 872
	1284	+	(3) For a resident estate, the state shall have the power to levy the 873
	1285	+	estate tax upon real property situated in this state, tangible personal 874
	1286	+	property having an actual situs in this state and intangible personal 875
	1287	+	property included in the gross estate of the decedent, regardless of 876
	1288	+	where it is located. The state is permitted to calculate the estate tax and 877
	1289	+	levy said tax to the fullest extent permitted by the Constitution of the 878
	1290	+	United States. 879
	1291	+	(e) (1) (A) With respect to the estates of decedents who die on or 880
	1292	+	after January 1, 2005, but prior to January 1, 2010, a tax is imposed 881
	1293	+	upon the transfer of the estate of each person who at the time of death 882
	1294	+	was a nonresident of this state. The amount of such tax shall be 883
	1295	+	computed by multiplying (i) the amount of tax determined using the 884
	1296	+	schedule in subsection (g) of this section by (ii) a fraction, the 885
	1297	+	numerator of which is the value of that part of the decedent's gross 886
	1298	+	estate over which this state has jurisdiction for estate tax purposes, and 887
	1299	+	Governor's Bill No. 877
	1300	+
	1301	+
	1302	+
	1303	+	LCO No. 4566 35 of 138
	1304	+
	1305	+	the denominator of which is the value of the decedent's gross estate. A 888
	1306	+	credit shall be allowed against such tax for any taxes paid to this state 889
	1307	+	pursuant to section 12-642, as amended by this act, for Connecticut 890
	1308	+	taxable gifts made on or after January 1, 2005, but prior to January 1, 891
	1309	+	2010. 892
	1310	+	(B) With respect to the estates of decedents who die on or after 893
	1311	+	January 1, 2010, but prior to January 1, 2016, a tax is imposed upon the 894
	1312	+	transfer of the estate of each person who at the time of death was a 895
	1313	+	nonresident of this state. The amount of such tax shall be computed by 896
	1314	+	multiplying (i) the amount of tax determined using the schedule in 897
	1315	+	subsection (g) of this section by (ii) a fraction, the numerator of which 898
	1316	+	is the value of that part of the decedent's gross estate over which this 899
	1317	+	state has jurisdiction for estate tax purposes, and the denominator of 900
	1318	+	which is the value of the decedent's gross estate. A credit shall be 901
	1319	+	allowed against such tax for any taxes paid to this state pursuant to 902
	1320	+	section 12-642, as amended by this act, for Connecticut taxable gifts 903
	1321	+	made on or after January 1, 2005, but prior to January 1, 2016, provided 904
	1322	+	such credit shall not exceed the amount of tax imposed by this section. 905
	1323	+	(C) With respect to the estates of decedents who die on or after 906
	1324	+	January 1, 2016, but prior to January 1, 2019, a tax is imposed upon the 907
	1325	+	transfer of the estate of each person who at the time of death was a 908
	1326	+	nonresident of this state. The amount of such tax shall be computed by 909
	1327	+	multiplying (i) the amount of tax determined using the schedule in 910
	1328	+	subsection (g) of this section by (ii) a fraction, the numerator of which 911
	1329	+	is the value of that part of the decedent's gross estate over which this 912
	1330	+	state has jurisdiction for estate tax purposes, and the denominator of 913
	1331	+	which is the value of the decedent's gross estate. A credit shall be 914
	1332	+	allowed against such tax for any taxes paid to this state pursuant to 915
	1333	+	section 12-642, as amended by this act, for Connecticut taxable gifts 916
	1334	+	made on or after January 1, 2005, but prior to January 1, 2019, provided 917
	1335	+	such credit shall not exceed the amount of tax imposed by this section. 918
	1336	+	In no event shall the amount of tax payable under this section exceed 919
	1337	+	twenty million dollars. Such twenty-million-dollar limit shall be 920
	1338	+	Governor's Bill No. 877
	1339	+
	1340	+
	1341	+
	1342	+	LCO No. 4566 36 of 138
	1343	+
	1344	+	reduced by the amount of (I) any taxes paid to this state pursuant to 921
	1345	+	section 12-642, as amended by this act, by the decedent or the 922
	1346	+	decedent's estate for Connecticut taxable gifts made on or after January 923
	1347	+	1, 2016, but prior to January 1, 2019, and (II) any taxes paid by the 924
	1348	+	decedent's spouse to this state pursuant to section 12-642, as amended 925
	1349	+	by this act, for Connecticut taxable gifts made by the decedent on or 926
	1350	+	after January 1, 2016, but prior to January 1, 2019, that are includable in 927
	1351	+	the gross estate of the decedent, but in no event shall the amount be 928
	1352	+	reduced below zero. 929
	1353	+	(D) With respect to the estates of decedents who die on or after 930
	1354	+	January 1, 2019, a tax is imposed upon the transfer of the estate of each 931
	1355	+	person who at the time of death was a nonresident of this state. The 932
	1356	+	amount of such tax shall be computed by multiplying the amount of 933
	1357	+	tax determined using the schedule in subsection (g) of this section by a 934
	1358	+	fraction, the numerator of which is the value of that part of the 935
	1359	+	decedent's gross estate over which this state has jurisdiction for estate 936
	1360	+	tax purposes, and the denominator of which is the value of the 937
	1361	+	decedent's gross estate. A credit shall be allowed against such tax for 938
	1362	+	(i) any taxes paid to this state pursuant to section 12-642, as amended 939
	1363	+	by this act, by the decedent or the decedent's estate for Connecticut 940
	1364	+	taxable gifts made on or after January 1, 2005, and (ii) any taxes paid 941
	1365	+	by the decedent's spouse to this state pursuant to section 12-642, as 942
	1366	+	amended by this act, for Connecticut taxable gifts made by the 943
	1367	+	decedent on or after January 1, 2005, that are includable in the gross 944
	1368	+	estate of the decedent, provided such credit shall not exceed the 945
	1369	+	amount of tax imposed by this section. In no event shall the amount of 946
	1370	+	tax payable under this section exceed fifteen million dollars. Such 947
	1371	+	fifteen-million-dollar limit shall be reduced by the amount of (I) any 948
	1372	+	taxes paid to this state pursuant to section 12-642, as amended by this 949
	1373	+	act, by the decedent or the decedent's estate for Connecticut taxable 950
	1374	+	gifts made on or after January 1, 2016, and (II) any taxes paid by the 951
	1375	+	decedent's spouse to this state pursuant to section 12-642, as amended 952
	1376	+	by this act, for Connecticut taxable gifts made by the decedent on or 953
	1377	+	Governor's Bill No. 877
	1378	+
	1379	+
	1380	+
	1381	+	LCO No. 4566 37 of 138
	1382	+
	1383	+	after January 1, 2016, that are includable in the gross estate of the 954
	1384	+	decedent, but in no event shall the amount be reduced below zero. 955
	1385	+	(2) For a nonresident estate, the state shall have the power to levy 956
	1386	+	the estate tax upon all real property situated in this state and tangible 957
	1387	+	personal property having an actual situs in this state. The state is 958
	1388	+	permitted to calculate the estate tax and levy said tax to the fullest 959
	1389	+	extent permitted by the Constitution of the United States. 960
	1390	+	Sec. 13. Subsections (a) and (b) of section 12-392 of the general 961
	1391	+	statutes are repealed and the following is substituted in lieu thereof 962
	1392	+	(Effective from passage and applicable to estates of decedents dying on or after 963
	1393	+	January 1, 2019): 964
	1394	+	(a) (1) (A) For the estates of decedents dying prior to July 1, 2009, the 965
	1395	+	tax imposed by this chapter shall become due at the date of the taxable 966
	1396	+	transfer and shall become payable, and shall be paid, without 967
	1397	+	assessment, notice or demand, to the Commissioner of Revenue 968
	1398	+	Services at the expiration of nine months from the date of death. For 969
	1399	+	the estates of decedents dying on or after July 1, 2009, but prior to 970
	1400	+	January 1, 2019, the tax imposed by this chapter shall become due at 971
	1401	+	the date of the taxable transfer and shall become payable and shall be 972
	1402	+	paid, without assessment, notice or demand, to the commissioner at 973
	1403	+	the expiration of six months from the date of death. For the estates of 974
	1404	+	decedents dying on or after January 1, 2019, the tax imposed by this 975
	1405	+	chapter shall become due at the date of the taxable transfer and shall 976
	1406	+	become payable and shall be paid, without assessment, notice or 977
	1407	+	demand, to the commissioner at the expiration of nine months from 978
	1408	+	the date of death. 979
	1409	+	(B) Executors, administrators, trustees, grantees, donees, 980
	1410	+	beneficiaries and surviving joint owners shall be liable for the tax and 981
	1411	+	for any interest or penalty thereon until it is paid, notwithstanding any 982
	1412	+	provision of chapter 802b, except that no executor, administrator, 983
	1413	+	trustee, grantee, donee, beneficiary or surviving joint owner shall be 984
	1414	+	Governor's Bill No. 877
	1415	+
	1416	+
	1417	+
	1418	+	LCO No. 4566 38 of 138
	1419	+
	1420	+	liable for a greater sum than the value of the property actually received 985
	1421	+	by him or her. If the amount of tax reported to be due on the return is 986
	1422	+	not paid [, for the estates of decedents dying prior to July 1, 2009, 987
	1423	+	within such nine months, or for the estates of decedents dying on or 988
	1424	+	after July 1, 2009, within such six months] within the time period set 989
	1425	+	forth in subparagraph (A) of this subdivision, there shall be imposed a 990
	1426	+	penalty equal to ten per cent of such amount due and unpaid, or fifty 991
	1427	+	dollars, whichever is greater. Such amount shall bear interest at the 992
	1428	+	rate of one per cent per month or fraction thereof from the due date of 993
	1429	+	such tax until the date of payment. Subject to the provisions of section 994
	1430	+	12-3a, the commissioner may waive all or part of the penalties 995
	1431	+	provided under this chapter when it is proven to the commissioner's 996
	1432	+	satisfaction that the failure to pay any tax was due to reasonable cause 997
	1433	+	and was not intentional or due to neglect. 998
	1434	+	(2) The Commissioner of Revenue Services may, for reasonable 999
	1435	+	cause shown, extend the time for payment. The commissioner may 1000
	1436	+	require the filing of a tentative return and the payment of the tax 1001
	1437	+	reported to be due thereon in connection with such extension. Any 1002
	1438	+	additional tax [which] that may be found to be due on the filing of a 1003
	1439	+	return as allowed by such extension shall bear interest at the rate of 1004
	1440	+	one per cent per month or fraction thereof from the original due date 1005
	1441	+	of such tax to the date of actual payment. 1006
	1442	+	(3) (A) Whenever there is a claimed overpayment of the tax imposed 1007
	1443	+	by this chapter, the Commissioner of Revenue Services shall return to 1008
	1444	+	the fiduciary or transferee the overpayment which shall bear interest at 1009
	1445	+	the rate of two-thirds of one per cent per month or fraction thereof, 1010
	1446	+	such interest commencing, for the estates of decedents dying prior to 1011
	1447	+	July 1, 2009, or on or after January 1, 2019, from the expiration of nine 1012
	1448	+	months after the death of the transferor or date of payment, whichever 1013
	1449	+	is later, or, for the estates of decedents dying on or after July 1, 2009, 1014
	1450	+	but prior to January 1, 2019, from the expiration of six months after the 1015
	1451	+	death of the transferor or date of payment, whichever is later, as 1016
	1452	+	provided in subparagraphs (B) and (C) of this subdivision. 1017
	1453	+	Governor's Bill No. 877
	1454	+
	1455	+
	1456	+
	1457	+	LCO No. 4566 39 of 138
	1458	+
	1459	+	(B) In case of such overpayment pursuant to a tax return, no interest 1018
	1460	+	shall be allowed or paid under this subdivision on such overpayment 1019
	1461	+	for any month or fraction thereof prior to (i) the ninety-first day after 1020
	1462	+	the last day prescribed for filing the tax return associated with such 1021
	1463	+	overpayment, determined without regard to any extension of time for 1022
	1464	+	filing, or (ii) the ninety-first day after the date such return was filed, 1023
	1465	+	whichever is later. 1024
	1466	+	(C) In case of such overpayment pursuant to an amended tax return, 1025
	1467	+	no interest shall be allowed or paid under this subdivision on such 1026
	1468	+	overpayment for any month or fraction thereof prior to the ninety-first 1027
	1469	+	day after the date such amended tax return was filed. 1028
	1470	+	(b) (1) The tax imposed by this chapter shall be reported on a tax 1029
	1471	+	return which shall be filed on or before the date fixed for paying the 1030
	1472	+	tax, determined without regard to any extension of time for paying the 1031
	1473	+	tax. The commissioner shall design a form of return and forms for such 1032
	1474	+	additional statements or schedules as the commissioner may require to 1033
	1475	+	be filed. Such forms shall provide for the setting forth of such facts as 1034
	1476	+	the commissioner deems necessary for the proper enforcement of this 1035
	1477	+	chapter. The commissioner shall furnish appropriate forms to each 1036
	1478	+	taxpayer upon application or otherwise as the commissioner deems 1037
	1479	+	necessary. Failure to receive a form shall not relieve any person from 1038
	1480	+	the obligation to file a return under the provisions of this chapter. In 1039
	1481	+	any case in which the commissioner believes that it would be 1040
	1482	+	advantageous to him or her in the administration of the tax imposed 1041
	1483	+	by this chapter, the commissioner may require that a true copy of the 1042
	1484	+	federal estate tax return made to the Internal Revenue Service be 1043
	1485	+	provided. 1044
	1486	+	(2) Any tax return or other document, including any amended tax 1045
	1487	+	return under section 12-398, that is required to be filed under this 1046
	1488	+	chapter shall be filed, and shall be treated as filed, only if filed with (A) 1047
	1489	+	the Commissioner of Revenue Services, if required under subdivision 1048
	1490	+	(3) of this subsection, and (B) (i) the court of probate for the district 1049
	1491	+	Governor's Bill No. 877
	1492	+
	1493	+
	1494	+
	1495	+	LCO No. 4566 40 of 138
	1496	+
	1497	+	within which the decedent resided at the date of his or her death, or, 1050
	1498	+	(ii) if the decedent died a nonresident of this state, in the court of 1051
	1499	+	probate for the district within which real estate or tangible personal 1052
	1500	+	property of the decedent is situated. The return shall contain a 1053
	1501	+	statement, to be signed under penalty of false statement by the person 1054
	1502	+	who is required to make and file the return under this chapter, that the 1055
	1503	+	return has been filed with the Commissioner of Revenue Services, if 1056
	1504	+	required under subdivision (3) of this subsection, and the appropriate 1057
	1505	+	court of probate. 1058
	1506	+	(3) (A) A tax return shall be filed, in the case of every decedent who 1059
	1507	+	died prior to January 1, 2005, and at the time of death was (i) a resident 1060
	1508	+	of this state, or (ii) a nonresident of this state whose gross estate 1061
	1509	+	includes any real property situated in this state or tangible personal 1062
	1510	+	property having an actual situs in this state, whenever the personal 1063
	1511	+	representative of the estate is required by the laws of the United States 1064
	1512	+	to file a federal estate tax return. 1065
	1513	+	(B) A tax return shall be filed, in the case of every decedent who dies 1066
	1514	+	on or after January 1, 2005, but prior to January 1, 2010, and at the time 1067
	1515	+	of death was (i) a resident of this state, or (ii) a nonresident of this state 1068
	1516	+	whose gross estate includes any real property situated in this state or 1069
	1517	+	tangible personal property having an actual situs in this state. If the 1070
	1518	+	decedent's Connecticut taxable estate is over two million dollars, such 1071
	1519	+	tax return shall be filed with the Commissioner of Revenue Services 1072
	1520	+	and a copy of such return shall be filed with the court of probate for 1073
	1521	+	the district within which the decedent resided at the date of his or her 1074
	1522	+	death or, if the decedent died a nonresident of this state, the court of 1075
	1523	+	probate for the district within which such real property or tangible 1076
	1524	+	personal property is situated. If the decedent's Connecticut taxable 1077
	1525	+	estate is two million dollars or less, such return shall be filed with the 1078
	1526	+	court of probate for the district within which the decedent resided at 1079
	1527	+	the date of his or her death or, if the decedent died a nonresident of 1080
	1528	+	this state, the court of probate for the district within which such real 1081
	1529	+	property or tangible personal property is situated, and no such return 1082
	1530	+	Governor's Bill No. 877
	1531	+
	1532	+
	1533	+
	1534	+	LCO No. 4566 41 of 138
	1535	+
	1536	+	shall be filed with the Commissioner of Revenue Services. The judge of 1083
	1537	+	probate for the district in which such return is filed shall review each 1084
	1538	+	such return and shall issue a written opinion to the estate 1085
	1539	+	representative in each case in which the judge determines that the 1086
	1540	+	estate is not subject to tax under this chapter. 1087
	1541	+	(C) A tax return shall be filed, in the case of every decedent who 1088
	1542	+	dies on or after January 1, 2010, but prior to January 1, 2011, and at the 1089
	1543	+	time of death was (i) a resident of this state, or (ii) a nonresident of this 1090
	1544	+	state whose gross estate includes any real property situated in this 1091
	1545	+	state or tangible personal property having an actual situs in this state. 1092
	1546	+	If the decedent's Connecticut taxable estate is over three million five 1093
	1547	+	hundred thousand dollars, such tax return shall be filed with the 1094
	1548	+	Commissioner of Revenue Services and a copy of such return shall be 1095
	1549	+	filed with the court of probate for the district within which the 1096
	1550	+	decedent resided at the date of his or her death or, if the decedent died 1097
	1551	+	a nonresident of this state, the court of probate for the district within 1098
	1552	+	which such real property or tangible personal property is situated. If 1099
	1553	+	the decedent's Connecticut taxable estate is three million five hundred 1100
	1554	+	thousand dollars or less, such return shall be filed with the court of 1101
	1555	+	probate for the district within which the decedent resided at the date 1102
	1556	+	of his or her death or, if the decedent died a nonresident of this state, 1103
	1557	+	the court of probate for the district within which such real property or 1104
	1558	+	tangible personal property is situated, and no such return shall be filed 1105
	1559	+	with the Commissioner of Revenue Services. The judge of probate for 1106
	1560	+	the district in which such return is filed shall review each such return 1107
	1561	+	and shall issue a written opinion to the estate representative in each 1108
	1562	+	case in which the judge determines that the estate is not subject to tax 1109
	1563	+	under this chapter. 1110
	1564	+	(D) A tax return shall be filed, in the case of every decedent who 1111
	1565	+	dies on or after January 1, 2011, but prior to January 1, 2018, and at the 1112
	1566	+	time of death was (i) a resident of this state, or (ii) a nonresident of this 1113
	1567	+	state whose gross estate includes any real property situated in this 1114
	1568	+	state or tangible personal property having an actual situs in this state. 1115
	1569	+	Governor's Bill No. 877
	1570	+
	1571	+
	1572	+
	1573	+	LCO No. 4566 42 of 138
	1574	+
	1575	+	If the decedent's Connecticut taxable estate is over two million dollars, 1116
	1576	+	such tax return shall be filed with the Commissioner of Revenue 1117
	1577	+	Services and a copy of such return shall be filed with the court of 1118
	1578	+	probate for the district within which the decedent resided at the date 1119
	1579	+	of his or her death or, if the decedent died a nonresident of this state, 1120
	1580	+	the court of probate for the district within which such real property or 1121
	1581	+	tangible personal property is situated. If the decedent's Connecticut 1122
	1582	+	taxable estate is two million dollars or less, such return shall be filed 1123
	1583	+	with the court of probate for the district within which the decedent 1124
	1584	+	resided at the date of his or her death or, if the decedent died a 1125
	1585	+	nonresident of this state, the court of probate for the district within 1126
	1586	+	which such real property or tangible personal property is situated, and 1127
	1587	+	no such return shall be filed with the Commissioner of Revenue 1128
	1588	+	Services. The judge of probate for the district in which such return is 1129
	1589	+	filed shall review each such return and shall issue a written opinion to 1130
	1590	+	the estate representative in each case in which the judge determines 1131
	1591	+	that the estate is not subject to tax under this chapter. 1132
	1592	+	(E) A tax return shall be filed, in the case of every decedent who dies 1133
	1593	+	on or after January 1, 2018, but prior to January 1, 2019, and at the time 1134
	1594	+	of death was (i) a resident of this state, or (ii) a nonresident of this state 1135
	1595	+	whose gross estate includes any real property situated in this state or 1136
	1596	+	tangible personal property having an actual situs in this state. If the 1137
	1597	+	decedent's Connecticut taxable estate is over two million six hundred 1138
	1598	+	thousand dollars, such tax return shall be filed with the Commissioner 1139
	1599	+	of Revenue Services and a copy of such return shall be filed with the 1140
	1600	+	court of probate for the district within which the decedent resided at 1141
	1601	+	the date of his or her death or, if the decedent died a nonresident of 1142
	1602	+	this state, the court of probate for the district within which such real 1143
	1603	+	property or tangible personal property is situated. If the decedent's 1144
	1604	+	Connecticut taxable estate is two million six hundred thousand dollars 1145
	1605	+	or less, such return shall be filed with the court of probate for the 1146
	1606	+	district within which the decedent resided at the date of his or her 1147
	1607	+	death or, if the decedent died a nonresident of this state, the court of 1148
	1608	+	Governor's Bill No. 877
	1609	+
	1610	+
	1611	+
	1612	+	LCO No. 4566 43 of 138
	1613	+
	1614	+	probate for the district within which such real property or tangible 1149
	1615	+	personal property is situated, and no such return shall be filed with the 1150
	1616	+	Commissioner of Revenue Services. The judge of probate for the 1151
	1617	+	district in which such return is filed shall review each such return and 1152
	1618	+	shall issue a written opinion to the estate representative in each case in 1153
	1619	+	which the judge determines that the estate is not subject to tax under 1154
	1620	+	this chapter. 1155
	1621	+	(F) A tax return shall be filed, in the case of every decedent who dies 1156
	1622	+	on or after January 1, 2019, but prior to January 1, 2020, and at the time 1157
	1623	+	of death was (i) a resident of this state, or (ii) a nonresident of this state 1158
	1624	+	whose gross estate includes any real property situated in this state or 1159
	1625	+	tangible personal property having an actual situs in this state. If the 1160
	1626	+	decedent's Connecticut taxable estate is over three million six hundred 1161
	1627	+	thousand dollars, such tax return shall be filed with the Commissioner 1162
	1628	+	of Revenue Services and a copy of such return shall be filed with the 1163
	1629	+	court of probate for the district within which the decedent resided at 1164
	1630	+	the date of his or her death or, if the decedent died a nonresident of 1165
	1631	+	this state, the court of probate for the district within which such real 1166
	1632	+	property or tangible personal property is situated. If the decedent's 1167
	1633	+	Connecticut taxable estate is three million six hundred thousand 1168
	1634	+	dollars or less, such return shall be filed with the court of probate for 1169
	1635	+	the district within which the decedent resided at the date of his or her 1170
	1636	+	death or, if the decedent died a nonresident of this state, the court of 1171
	1637	+	probate for the district within which such real property or tangible 1172
	1638	+	personal property is situated, and no such return shall be filed with the 1173
	1639	+	Commissioner of Revenue Services. The judge of probate for the 1174
	1640	+	district in which such return is filed shall review each such return and 1175
	1641	+	shall issue a written opinion to the estate representative in each case in 1176
	1642	+	which the judge determines that the estate is not subject to tax under 1177
	1643	+	this chapter. 1178
	1644	+	(G) A tax return shall be filed, in the case of every decedent who 1179
	1645	+	dies on or after January 1, 2020, but prior to January 1, 2021, and at the 1180
	1646	+	time of death was (i) a resident of this state, or (ii) a nonresident of this 1181
	1647	+	Governor's Bill No. 877
	1648	+
	1649	+
	1650	+
	1651	+	LCO No. 4566 44 of 138
	1652	+
	1653	+	state whose gross estate includes any real property situated in this 1182
	1654	+	state or tangible personal property having an actual situs in this state. 1183
	1655	+	If the decedent's Connecticut taxable estate is over five million one 1184
	1656	+	hundred thousand dollars, such tax return shall be filed with the 1185
	1657	+	Commissioner of Revenue Services and a copy of such return shall be 1186
	1658	+	filed with the court of probate for the district within which the 1187
	1659	+	decedent resided at the date of his or her death or, if the decedent died 1188
	1660	+	a nonresident of this state, the court of probate for the district within 1189
	1661	+	which such real property or tangible personal property is situated. If 1190
	1662	+	the decedent's Connecticut taxable estate is five million one hundred 1191
	1663	+	thousand dollars or less, such return shall be filed with the court of 1192
	1664	+	probate for the district within which the decedent resided at the date 1193
	1665	+	of his or her death or, if the decedent died a nonresident of this state, 1194
	1666	+	the court of probate for the district within which such real property or 1195
	1667	+	tangible personal property is situated, and no such return shall be filed 1196
	1668	+	with the Commissioner of Revenue Services. The judge of probate for 1197
	1669	+	the district in which such return is filed shall review each such return 1198
	1670	+	and shall issue a written opinion to the estate representative in each 1199
	1671	+	case in which the judge determines that the estate is not subject to tax 1200
	1672	+	under this chapter. 1201
	1673	+	(H) A tax return shall be filed, in the case of every decedent who 1202
	1674	+	dies on or after January 1, 2021, but prior to January 1, 2022, and at the 1203
	1675	+	time of death was (i) a resident of this state, or (ii) a nonresident of this 1204
	1676	+	state whose gross estate includes any real property situated in this 1205
	1677	+	state or tangible personal property having an actual situs in this state. 1206
	1678	+	If the decedent's Connecticut taxable estate is over seven million one 1207
	1679	+	hundred thousand dollars, such tax return shall be filed with the 1208
	1680	+	Commissioner of Revenue Services and a copy of such return shall be 1209
	1681	+	filed with the court of probate for the district within which the 1210
	1682	+	decedent resided at the date of his or her death or, if the decedent died 1211
	1683	+	a nonresident of this state, the court of probate for the district within 1212
	1684	+	which such real property or tangible personal property is situated. If 1213
	1685	+	the decedent's Connecticut taxable estate is seven million one hundred 1214
	1686	+	Governor's Bill No. 877
	1687	+
	1688	+
	1689	+
	1690	+	LCO No. 4566 45 of 138
	1691	+
	1692	+	thousand dollars or less, such return shall be filed with the court of 1215
	1693	+	probate for the district within which the decedent resided at the date 1216
	1694	+	of his or her death or, if the decedent died a nonresident of this state, 1217
	1695	+	the court of probate for the district within which such real property or 1218
	1696	+	tangible personal property is situated, and no such return shall be filed 1219
	1697	+	with the Commissioner of Revenue Services. The judge of probate for 1220
	1698	+	the district in which such return is filed shall review each such return 1221
	1699	+	and shall issue a written opinion to the estate representative in each 1222
	1700	+	case in which the judge determines that the estate is not subject to tax 1223
	1701	+	under this chapter. 1224
	1702	+	(I) A tax return shall be filed, in the case of every decedent who dies 1225
	1703	+	on or after January 1, 2022, but prior to January 1, 2023, and at the time 1226
	1704	+	of death was (i) a resident of this state, or (ii) a nonresident of this state 1227
	1705	+	whose gross estate includes any real property situated in this state or 1228
	1706	+	tangible personal property having an actual situs in this state. If the 1229
	1707	+	decedent's Connecticut taxable estate is over nine million one hundred 1230
	1708	+	thousand dollars, such tax return shall be filed with the Commissioner 1231
	1709	+	of Revenue Services and a copy of such return shall be filed with the 1232
	1710	+	court of probate for the district within which the decedent resided at 1233
	1711	+	the date of his or her death or, if the decedent died a nonresident of 1234
	1712	+	this state, the court of probate for the district within which such real 1235
	1713	+	property or tangible personal property is situated. If the decedent's 1236
	1714	+	Connecticut taxable estate is nine million one hundred thousand 1237
	1715	+	dollars or less, such return shall be filed with the court of probate for 1238
	1716	+	the district within which the decedent resided at the date of his or her 1239
	1717	+	death or, if the decedent died a nonresident of this state, the court of 1240
	1718	+	probate for the district within which such real property or tangible 1241
	1719	+	personal property is situated, and no such return shall be filed with the 1242
	1720	+	Commissioner of Revenue Services. The judge of probate for the 1243
	1721	+	district in which such return is filed shall review each such return and 1244
	1722	+	shall issue a written opinion to the estate representative in each case in 1245
	1723	+	which the judge determines that the estate is not subject to tax under 1246
	1724	+	this chapter. 1247
	1725	+	Governor's Bill No. 877
	1726	+
	1727	+
	1728	+
	1729	+	LCO No. 4566 46 of 138
	1730	+
	1731	+	(J) A tax return shall be filed, in the case of every decedent who dies 1248
	1732	+	on or after January 1, 2023, and at the time of death was (i) a resident 1249
	1733	+	of this state, or (ii) a nonresident of this state whose gross estate 1250
	1734	+	includes any real property situated in this state or tangible personal 1251
	1735	+	property having an actual situs in this state. If the decedent's 1252
	1736	+	Connecticut taxable estate is over [five million four hundred ninety 1253
	1737	+	thousand dollars] the federal basic exclusion amount, such tax return 1254
	1738	+	shall be filed with the Commissioner of Revenue Services and a copy 1255
	1739	+	of such return shall be filed with the court of probate for the district 1256
	1740	+	within which the decedent resided at the date of his or her death or, if 1257
	1741	+	the decedent died a nonresident of this state, the court of probate for 1258
	1742	+	the district within which such real property or tangible personal 1259
	1743	+	property is situated. If the decedent's Connecticut taxable estate is 1260
	1744	+	equal to or less than [five million four hundred ninety thousand 1261
	1745	+	dollars] the federal basic exclusion amount, such return shall be filed 1262
	1746	+	with the court of probate for the district within which the decedent 1263
	1747	+	resided at the date of his or her death or, if the decedent died a 1264
	1748	+	nonresident of this state, the court of probate for the district within 1265
	1749	+	which such real property or tangible personal property is situated, and 1266
	1750	+	no such return shall be filed with the Commissioner of Revenue 1267
	1751	+	Services. The judge of probate for the district in which such return is 1268
	1752	+	filed shall review each such return and shall issue a written opinion to 1269
	1753	+	the estate representative in each case in which the judge determines 1270
	1754	+	that the estate is not subject to tax under this chapter. 1271
	1755	+	(4) The duly authorized executor or administrator shall file the 1272
	1756	+	return. If there is more than one executor or administrator, the return 1273
	1757	+	shall be made jointly by all. If there is no executor or administrator 1274
	1758	+	appointed, qualified and acting, each person in actual or constructive 1275
	1759	+	possession of any property of the decedent is constituted an executor 1276
	1760	+	for purposes of the tax and shall make and file a return. If in any case 1277
	1761	+	the executor is unable to make a complete return as to any part of the 1278
	1762	+	gross estate, the executor shall provide all the information available to 1279
	1763	+	him or her with respect to such property, including a full description, 1280
	1764	+	Governor's Bill No. 877
	1765	+
	1766	+
	1767	+
	1768	+	LCO No. 4566 47 of 138
	1769	+
	1770	+	and the name of every person holding a legal or beneficial interest in 1281
	1771	+	the property. If the executor is unable to make a return as to any 1282
	1772	+	property, each person holding a legal or equitable interest in such 1283
	1773	+	property shall, upon notice from the commissioner, make a return as to 1284
	1774	+	that part of the gross estate. 1285
	1775	+	(5) On or before the last day of the month next succeeding each 1286
	1776	+	calendar quarter, and commencing with the calendar quarter ending 1287
	1777	+	September 30, 2005, each court of probate shall file with the 1288
	1778	+	commissioner a report for the calendar quarter in such form as the 1289
	1779	+	commissioner may prescribe. The report shall pertain to returns filed 1290
	1780	+	with the court of probate during the calendar quarter. 1291
	1781	+	(6) The Commissioner of Revenue Services may, for reasonable 1292
	1782	+	cause shown, extend the time for filing the return. 1293
	1783	+	(7) If any person required to make and file the tax return under this 1294
	1784	+	chapter fails to file the return within the time prescribed, the 1295
	1785	+	commissioner may assess and compute the tax upon the best 1296
	1786	+	information obtainable. To the tax imposed upon the basis of such 1297
	1787	+	return, there shall be added an amount equal to ten per cent of such 1298
	1788	+	tax or fifty dollars, whichever is greater. The tax shall bear interest at 1299
	1789	+	the rate of one per cent per month or fraction thereof from the due date 1300
	1790	+	of such tax until the date of payment. 1301
	1791	+	(8) The commissioner shall provide notice of any (A) deficiency 1302
	1792	+	assessment with respect to the payment of any tax under this chapter, 1303
	1793	+	(B) assessment with respect to any failure to make and file a return 1304
	1794	+	under this chapter by a person required to file, and (C) tax return or 1305
	1795	+	other document, including any amended tax return under section 12-1306
	1796	+	398 that is required to be filed under this chapter to the court of 1307
	1797	+	probate for the district within which the commissioner contends that 1308
	1798	+	the decedent resided at the date of his or her death or, if the decedent 1309
	1799	+	died a nonresident of this state, to the court of probate for the district 1310
	1800	+	within which the commissioner contends that real estate or tangible 1311
	1801	+	Governor's Bill No. 877
	1802	+
	1803	+
	1804	+
	1805	+	LCO No. 4566 48 of 138
	1806	+
	1807	+	personal property of the decedent is situated. 1312
	1808	+	Sec. 14. Subdivision (1) of section 12-408 of the general statutes is 1313
	1809	+	repealed and the following is substituted in lieu thereof (Effective July 1314
	1810	+	1, 2019, and applicable to sales occurring on or after July 1, 2019): 1315
	1811	+	(1) (A) For the privilege of making any sales, as defined in 1316
	1812	+	subdivision (2) of subsection (a) of section 12-407, as amended by this 1317
	1813	+	act, at retail, in this state for a consideration, a tax is hereby imposed 1318
	1814	+	on all retailers at the rate of six and thirty-five-hundredths per cent of 1319
	1815	+	the gross receipts of any retailer from the sale of all tangible personal 1320
	1816	+	property sold at retail or from the rendering of any services 1321
	1817	+	constituting a sale in accordance with subdivision (2) of subsection (a) 1322
	1818	+	of section 12-407, as amended by this act, except, in lieu of said rate of 1323
	1819	+	six and thirty-five-hundredths per cent, the rates provided in 1324
	1820	+	subparagraphs (B) to (H), inclusive, of this subdivision; 1325
	1821	+	(B) (i) At a rate of [fifteen] seventeen per cent with respect to each 1326
	1822	+	transfer of occupancy, from the total amount of rent received by a hotel 1327
	1823	+	or lodging house for the first period not exceeding thirty consecutive 1328
	1824	+	calendar days; 1329
	1825	+	(ii) At a rate of [eleven] thirteen per cent with respect to each 1330
	1826	+	transfer of occupancy, from the total amount of rent received by a bed 1331
	1827	+	and breakfast establishment for the first period not exceeding thirty 1332
	1828	+	consecutive calendar days; 1333
	1829	+	(C) With respect to the sale of a motor vehicle to any individual who 1334
	1830	+	is a member of the armed forces of the United States and is on full-time 1335
	1831	+	active duty in Connecticut and who is considered, under 50 App USC 1336
	1832	+	574, a resident of another state, or to any such individual and the 1337
	1833	+	spouse thereof, at a rate of four and one-half per cent of the gross 1338
	1834	+	receipts of any retailer from such sales, provided such retailer requires 1339
	1835	+	and maintains a declaration by such individual, prescribed as to form 1340
	1836	+	by the commissioner and bearing notice to the effect that false 1341
	1837	+	statements made in such declaration are punishable, or other evidence, 1342
	1838	+	Governor's Bill No. 877
	1839	+
	1840	+
	1841	+
	1842	+	LCO No. 4566 49 of 138
	1843	+
	1844	+	satisfactory to the commissioner, concerning the purchaser's state of 1343
	1845	+	residence under 50 App USC 574; 1344
	1846	+	(D) (i) With respect to the sales of computer and data processing 1345
	1847	+	services occurring on or after July 1, 2001, at the rate of one per cent, 1346
	1848	+	and (ii) with respect to sales of Internet access services, on and after 1347
	1849	+	July 1, 2001, such services shall be exempt from such tax; 1348
	1850	+	(E) [(i)] With respect to the sales of labor that is otherwise taxable 1349
	1851	+	under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 1350
	1852	+	section 12-407 on existing vessels and repair or maintenance services 1351
	1853	+	on vessels occurring on and after July 1, 1999, such services shall be 1352
	1854	+	exempt from such tax; 1353
	1855	+	[(ii) With respect to the sale of a vessel, a motor for a vessel or a 1354
	1856	+	trailer used for transporting a vessel, at the rate of two and ninety-1355
	1857	+	nine-hundredths per cent, except that the sale of a vessel shall be 1356
	1858	+	exempt from such tax if such vessel is docked in this state for sixty or 1357
	1859	+	fewer days in a calendar year;] 1358
	1860	+	(F) With respect to patient care services for which payment is 1359
	1861	+	received by the hospital on or after July 1, 1999, and prior to July 1, 1360
	1862	+	2001, at the rate of five and three-fourths per cent and on and after July 1361
	1863	+	1, 2001, such services shall be exempt from such tax; 1362
	1864	+	(G) With respect to the rental or leasing of a passenger motor 1363
	1865	+	vehicle for a period of thirty consecutive calendar days or less, at a rate 1364
	1866	+	of nine and thirty-five-hundredths per cent; 1365
	1867	+	(H) With respect to the sale of (i) a motor vehicle for a sales price 1366
	1868	+	exceeding fifty thousand dollars, at a rate of seven and three-fourths 1367
	1869	+	per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1368
	1870	+	for a sales price exceeding five thousand dollars, at a rate of seven and 1369
	1871	+	three-fourths per cent on the entire sales price, and (iii) an article of 1370
	1872	+	clothing or footwear intended to be worn on or about the human body, 1371
	1873	+	a handbag, luggage, umbrella, wallet or watch for a sales price 1372
	1874	+	Governor's Bill No. 877
	1875	+
	1876	+
	1877	+
	1878	+	LCO No. 4566 50 of 138
	1879	+
	1880	+	exceeding one thousand dollars, at a rate of seven and three-fourths 1373
	1881	+	per cent on the entire sales price. For purposes of this subparagraph, 1374
	1882	+	"motor vehicle" has the meaning provided in section 14-1, but does not 1375
	1883	+	include a motor vehicle subject to the provisions of subparagraph (C) 1376
	1884	+	of this subdivision, a motor vehicle having a gross vehicle weight 1377
	1885	+	rating over twelve thousand five hundred pounds, or a motor vehicle 1378
	1886	+	having a gross vehicle weight rating of twelve thousand five hundred 1379
	1887	+	pounds or less that is not used for private passenger purposes, but is 1380
	1888	+	designed or used to transport merchandise, freight or persons in 1381
	1889	+	connection with any business enterprise and issued a commercial 1382
	1890	+	registration or more specific type of registration by the Department of 1383
	1891	+	Motor Vehicles; 1384
	1892	+	(I) The rate of tax imposed by this chapter shall be applicable to all 1385
	1893	+	retail sales upon the effective date of such rate, except that a new rate 1386
	1894	+	which represents an increase in the rate applicable to the sale shall not 1387
	1895	+	apply to any sales transaction wherein a binding sales contract without 1388
	1896	+	an escalator clause has been entered into prior to the effective date of 1389
	1897	+	the new rate and delivery is made within ninety days after the effective 1390
	1898	+	date of the new rate. For the purposes of payment of the tax imposed 1391
	1899	+	under this section, any retailer of services taxable under subdivision 1392
	1900	+	(37) of subsection (a) of section 12-407, as amended by this act, who 1393
	1901	+	computes taxable income, for purposes of taxation under the Internal 1394
	1902	+	Revenue Code of 1986, or any subsequent corresponding internal 1395
	1903	+	revenue code of the United States, as amended from time to time, 1396
	1904	+	[amended,] on an accounting basis which recognizes only cash or other 1397
	1905	+	valuable consideration actually received as income and who is liable 1398
	1906	+	for such tax only due to the rendering of such services may make 1399
	1907	+	payments related to such tax for the period during which such income 1400
	1908	+	is received, without penalty or interest, without regard to when such 1401
	1909	+	service is rendered; 1402
	1910	+	(J) (i) For calendar quarters ending on or after September 30, 2019, 1403
	1911	+	the commissioner shall deposit into the regional planning incentive 1404
	1912	+	account, established pursuant to section 4-66k, six and seven-tenths 1405
	1913	+	Governor's Bill No. 877
	1914	+
	1915	+
	1916	+
	1917	+	LCO No. 4566 51 of 138
	1918	+
	1919	+	per cent of the amounts received by the state from the tax imposed 1406
	1920	+	under subparagraph (B) of this subdivision and ten and seven-tenths 1407
	1921	+	per cent of the amounts received by the state from the tax imposed 1408
	1922	+	under subparagraph (G) of this subdivision; 1409
	1923	+	(ii) For calendar quarters ending on or after September 30, 2018, the 1410
	1924	+	commissioner shall deposit into the Tourism Fund established under 1411
	1925	+	section 10-395b ten per cent of the amounts received by the state from 1412
	1926	+	the tax imposed under subparagraph (B) of this subdivision; and 1413
	1927	+	[(K) For calendar months commencing on or after July 1, 2021, the 1414
	1928	+	commissioner shall deposit into the municipal revenue sharing 1415
	1929	+	account established pursuant to section 4-66l seven and nine-tenths per 1416
	1930	+	cent of the amounts received by the state from the tax imposed under 1417
	1931	+	subparagraph (A) of this subdivision; and] 1418
	1932	+	[(L)] (K) (i) For calendar months commencing on or after July 1, 1419
	1933	+	2017, the commissioner shall deposit into the Special Transportation 1420
	1934	+	Fund established under section 13b-68 seven and nine-tenths per cent 1421
	1935	+	of the amounts received by the state from the tax imposed under 1422
	1936	+	subparagraph (A) of this subdivision; 1423
	1937	+	(ii) For calendar months commencing on or after July 1, 2018, [but 1424
	1938	+	prior to July 1, 2019,] the commissioner shall deposit into the Special 1425
	1939	+	Transportation Fund established under section 13b-68 eight per cent of 1426
	1940	+	the amounts received by the state from the tax imposed under 1427
	1941	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1428
	1942	+	vehicle. [;] 1429
	1943	+	[(iii) For calendar months commencing on or after July 1, 2019, but 1430
	1944	+	prior to July 1, 2020, the commissioner shall deposit into the Special 1431
	1945	+	Transportation Fund established under section 13b-68 thirty-three per 1432
	1946	+	cent of the amounts received by the state from the tax imposed under 1433
	1947	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1434
	1948	+	vehicle; 1435
	1949	+	Governor's Bill No. 877
	1950	+
	1951	+
	1952	+
	1953	+	LCO No. 4566 52 of 138
	1954	+
	1955	+	(iv) For calendar months commencing on or after July 1, 2020, but 1436
	1956	+	prior to July 1, 2021, the commissioner shall deposit into the Special 1437
	1957	+	Transportation Fund established under section 13b-68 fifty-six per cent 1438
	1958	+	of the amounts received by the state from the tax imposed under 1439
	1959	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1440
	1960	+	vehicle; 1441
	1961	+	(v) For calendar months commencing on or after July 1, 2021, but 1442
	1962	+	prior to July 1, 2022, the commissioner shall deposit into the Special 1443
	1963	+	Transportation Fund established under section 13b-68 seventy-five per 1444
	1964	+	cent of the amounts received by the state from the tax imposed under 1445
	1965	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1446
	1966	+	vehicle; and 1447
	1967	+	(vi) For calendar months commencing on or after July 1, 2022, the 1448
	1968	+	commissioner shall deposit into the Special Transportation Fund 1449
	1969	+	established under section 13b-68 one hundred per cent of the amounts 1450
	1970	+	received by the state from the tax imposed under subparagraphs (A) 1451
	1971	+	and (H) of this subdivision on the sale of a motor vehicle.] 1452
	1972	+	Sec. 15. Subdivision (1) of section 12-408 of the general statutes, as 1453
	1973	+	amended by section 14 of this act, is repealed and the following is 1454
	1974	+	substituted in lieu thereof (Effective January 1, 2020, and applicable to 1455
	1975	+	sales occurring on or after January 1, 2020): 1456
	1976	+	(1) (A) For the privilege of making any sales, as defined in 1457
	1977	+	subdivision (2) of subsection (a) of section 12-407, as amended by this 1458
	1978	+	act, at retail, in this state for a consideration, a tax is hereby imposed 1459
	1979	+	on all retailers at the rate of six and thirty-five-hundredths per cent of 1460
	1980	+	the gross receipts of any retailer from the sale of all tangible personal 1461
	1981	+	property sold at retail or from the rendering of any services 1462
	1982	+	constituting a sale in accordance with subdivision (2) of subsection (a) 1463
	1983	+	of section 12-407, as amended by this act, except, in lieu of said rate of 1464
	1984	+	six and thirty-five-hundredths per cent, the rates provided in 1465
	1985	+	subparagraphs (B) to (H), inclusive, of this subdivision; 1466
	1986	+	Governor's Bill No. 877
	1987	+
	1988	+
	1989	+
	1990	+	LCO No. 4566 53 of 138
	1991	+
	1992	+	(B) (i) At a rate of seventeen per cent with respect to each transfer of 1467
	1993	+	occupancy, from the total amount of rent received by a hotel or 1468
	1994	+	lodging house for the first period not exceeding thirty consecutive 1469
	1995	+	calendar days; 1470
	1996	+	(ii) At a rate of thirteen per cent with respect to each transfer of 1471
	1997	+	occupancy, from the total amount of rent received by a bed and 1472
	1998	+	breakfast establishment for the first period not exceeding thirty 1473
	1999	+	consecutive calendar days; 1474
	2000	+	(iii) At a rate of six and thirty-five-hundredths per cent with respect 1475
	2001	+	to each transfer of occupancy, from the total amount of rent received 1476
	2002	+	by a campground for the first period not exceeding thirty consecutive 1477
	2003	+	days; 1478
	2004	+	(C) With respect to the sale of a motor vehicle to any individual who 1479
	2005	+	is a member of the armed forces of the United States and is on full-time 1480
	2006	+	active duty in Connecticut and who is considered, under 50 App USC 1481
	2007	+	574, a resident of another state, or to any such individual and the 1482
	2008	+	spouse thereof, at a rate of four and one-half per cent of the gross 1483
	2009	+	receipts of any retailer from such sales, provided such retailer requires 1484
	2010	+	and maintains a declaration by such individual, prescribed as to form 1485
	2011	+	by the commissioner and bearing notice to the effect that false 1486
	2012	+	statements made in such declaration are punishable, or other evidence, 1487
	2013	+	satisfactory to the commissioner, concerning the purchaser's state of 1488
	2014	+	residence under 50 App USC 574; 1489
	2015	+	(D) (i) With respect to the sales of computer and data processing 1490
	2016	+	services occurring on or after July 1, 2001, at the rate of one per cent, 1491
	2017	+	and (ii) with respect to sales of Internet access services, on and after 1492
	2018	+	July 1, 2001, such services shall be exempt from such tax; 1493
	2019	+	(E) With respect to the sales of labor that is otherwise taxable under 1494
	2020	+	subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 1495
	2021	+	12-407 on existing vessels and repair or maintenance services on 1496
	2022	+	vessels occurring on and after July 1, 1999, but prior to January 1, 2020, 1497
	2023	+	Governor's Bill No. 877
	2024	+
	2025	+
	2026	+
	2027	+	LCO No. 4566 54 of 138
	2028	+
	2029	+	such services shall be exempt from such tax; 1498
	2030	+	(F) With respect to patient care services for which payment is 1499
	2031	+	received by the hospital on or after July 1, 1999, and prior to July 1, 1500
	2032	+	2001, at the rate of five and three-fourths per cent and on and after July 1501
	2033	+	1, 2001, such services shall be exempt from such tax; 1502
	2034	+	(G) With respect to the rental or leasing of a passenger motor 1503
	2035	+	vehicle for a period of thirty consecutive calendar days or less, at a rate 1504
	2036	+	of nine and thirty-five-hundredths per cent; 1505
	2037	+	(H) With respect to the sale of (i) a motor vehicle for a sales price 1506
	2038	+	exceeding fifty thousand dollars, at a rate of seven and three-fourths 1507
	2039	+	per cent on the entire sales price, (ii) jewelry, whether real or imitation, 1508
	2040	+	for a sales price exceeding five thousand dollars, at a rate of seven and 1509
	2041	+	three-fourths per cent on the entire sales price, and (iii) an article of 1510
	2042	+	clothing or footwear intended to be worn on or about the human body, 1511
	2043	+	a handbag, luggage, umbrella, wallet or watch for a sales price 1512
	2044	+	exceeding one thousand dollars, at a rate of seven and three-fourths 1513
	2045	+	per cent on the entire sales price. For purposes of this subparagraph, 1514
	2046	+	"motor vehicle" has the meaning provided in section 14-1, but does not 1515
	2047	+	include a motor vehicle subject to the provisions of subparagraph (C) 1516
	2048	+	of this subdivision, a motor vehicle having a gross vehicle weight 1517
	2049	+	rating over twelve thousand five hundred pounds, or a motor vehicle 1518
	2050	+	having a gross vehicle weight rating of twelve thousand five hundred 1519
	2051	+	pounds or less that is not used for private passenger purposes, but is 1520
	2052	+	designed or used to transport merchandise, freight or persons in 1521
	2053	+	connection with any business enterprise and issued a commercial 1522
	2054	+	registration or more specific type of registration by the Department of 1523
	2055	+	Motor Vehicles; 1524
	2056	+	(I) The rate of tax imposed by this chapter shall be applicable to all 1525
	2057	+	retail sales upon the effective date of such rate, except that a new rate 1526
	2058	+	which represents an increase in the rate applicable to the sale shall not 1527
	2059	+	apply to any sales transaction wherein a binding sales contract without 1528
	2060	+	Governor's Bill No. 877
	2061	+
	2062	+
	2063	+
	2064	+	LCO No. 4566 55 of 138
	2065	+
	2066	+	an escalator clause has been entered into prior to the effective date of 1529
	2067	+	the new rate and delivery is made within ninety days after the effective 1530
	2068	+	date of the new rate. For the purposes of payment of the tax imposed 1531
	2069	+	under this section, any retailer of services taxable under subdivision 1532
	2070	+	(37) of subsection (a) of section 12-407, as amended by this act, who 1533
	2071	+	computes taxable income, for purposes of taxation under the Internal 1534
	2072	+	Revenue Code of 1986, or any subsequent corresponding internal 1535
	2073	+	revenue code of the United States, as from time to time amended, on 1536
	2074	+	an accounting basis which recognizes only cash or other valuable 1537
	2075	+	consideration actually received as income and who is liable for such 1538
	2076	+	tax only due to the rendering of such services may make payments 1539
	2077	+	related to such tax for the period during which such income is 1540
	2078	+	received, without penalty or interest, without regard to when such 1541
	2079	+	service is rendered; 1542
	2080	+	(J) (i) For calendar quarters ending on or after September 30, 2019, 1543
	2081	+	the commissioner shall deposit into the regional planning incentive 1544
	2082	+	account, established pursuant to section 4-66k, six and seven-tenths 1545
	2083	+	per cent of the amounts received by the state from the tax imposed 1546
	2084	+	under subparagraph (B) of this subdivision and ten and seven-tenths 1547
	2085	+	per cent of the amounts received by the state from the tax imposed 1548
	2086	+	under subparagraph (G) of this subdivision; 1549
	2087	+	(ii) For calendar quarters ending on or after September 30, 2018, the 1550
	2088	+	commissioner shall deposit into the Tourism Fund established under 1551
	2089	+	section 10-395b ten per cent of the amounts received by the state from 1552
	2090	+	the tax imposed under subparagraph [(B)] (B)(i) and (B)(ii) of this 1553
	2091	+	subdivision; and 1554
	2092	+	(K) (i) For calendar months commencing on or after July 1, 2017, the 1555
	2093	+	commissioner shall deposit into the Special Transportation Fund 1556
	2094	+	established under section 13b-68 seven and nine-tenths per cent of the 1557
	2095	+	amounts received by the state from the tax imposed under 1558
	2096	+	subparagraph (A) of this subdivision; 1559
	2097	+	Governor's Bill No. 877
	2098	+
	2099	+
	2100	+
	2101	+	LCO No. 4566 56 of 138
	2102	+
	2103	+	(ii) For calendar months commencing on or after July 1, 2018, the 1560
	2104	+	commissioner shall deposit into the Special Transportation Fund 1561
	2105	+	established under section 13b-68 eight per cent of the amounts 1562
	2106	+	received by the state from the tax imposed under subparagraphs (A) 1563
	2107	+	and (H) of this subdivision on the sale of a motor vehicle. 1564
	2108	+	Sec. 16. Subdivision (1) of section 12-411 of the general statutes is 1565
	2109	+	repealed and the following is substituted in lieu thereof (Effective July 1566
	2110	+	1, 2019, and applicable to sales occurring on or after July 1, 2019): 1567
	2111	+	(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1568
	2112	+	consumption or any other use in this state of tangible personal 1569
	2113	+	property purchased from any retailer for storage, acceptance, 1570
	2114	+	consumption or any other use in this state, the acceptance or receipt of 1571
	2115	+	any services constituting a sale in accordance with subdivision (2) of 1572
	2116	+	subsection (a) of section 12-407, as amended by this act, purchased 1573
	2117	+	from any retailer for consumption or use in this state, or the storage, 1574
	2118	+	acceptance, consumption or any other use in this state of tangible 1575
	2119	+	personal property which has been manufactured, fabricated, 1576
	2120	+	assembled or processed from materials by a person, either within or 1577
	2121	+	without this state, for storage, acceptance, consumption or any other 1578
	2122	+	use by such person in this state, to be measured by the sales price of 1579
	2123	+	materials, at the rate of six and thirty-five-hundredths per cent of the 1580
	2124	+	sales price of such property or services, except, in lieu of said rate of six 1581
	2125	+	and thirty-five-hundredths per cent; 1582
	2126	+	(B) (i) At a rate of [fifteen] seventeen per cent of the rent paid to a 1583
	2127	+	hotel or lodging house for the first period not exceeding thirty 1584
	2128	+	consecutive calendar days; 1585
	2129	+	(ii) At a rate of [eleven] thirteen per cent of the rent paid to a bed 1586
	2130	+	and breakfast establishment for the first period not exceeding thirty 1587
	2131	+	consecutive calendar days; 1588
	2132	+	(C) With respect to the storage, acceptance, consumption or use in 1589
	2133	+	this state of a motor vehicle purchased from any retailer for storage, 1590
	2134	+	Governor's Bill No. 877
	2135	+
	2136	+
	2137	+
	2138	+	LCO No. 4566 57 of 138
	2139	+
	2140	+	acceptance, consumption or use in this state by any individual who is a 1591
	2141	+	member of the armed forces of the United States and is on full-time 1592
	2142	+	active duty in Connecticut and who is considered, under 50 App USC 1593
	2143	+	574, a resident of another state, or to any such individual and the 1594
	2144	+	spouse of such individual at a rate of four and one-half per cent of the 1595
	2145	+	sales price of such vehicle, provided such retailer requires and 1596
	2146	+	maintains a declaration by such individual, prescribed as to form by 1597
	2147	+	the commissioner and bearing notice to the effect that false statements 1598
	2148	+	made in such declaration are punishable, or other evidence, 1599
	2149	+	satisfactory to the commissioner, concerning the purchaser's state of 1600
	2150	+	residence under 50 App USC 574; 1601
	2151	+	(D) [(i)] With respect to the acceptance or receipt in this state of 1602
	2152	+	labor that is otherwise taxable under subparagraph (C) or (G) of 1603
	2153	+	subdivision (2) of subsection (a) of section 12-407 on existing vessels 1604
	2154	+	and repair or maintenance services on vessels occurring on and after 1605
	2155	+	July 1, 1999, such services shall be exempt from such tax; 1606
	2156	+	[(ii) (I) With respect to the storage, acceptance or other use of a 1607
	2157	+	vessel in this state, at the rate of two and ninety-nine-hundredths per 1608
	2158	+	cent, except that such storage, acceptance or other use shall be exempt 1609
	2159	+	from such tax if such vessel is docked in this state for sixty or fewer 1610
	2160	+	days in a calendar year; 1611
	2161	+	(II) With respect to the storage, acceptance or other use of a motor 1612
	2162	+	for a vessel or a trailer used for transporting a vessel in this state, at the 1613
	2163	+	rate of two and ninety-nine-hundredths per cent;] 1614
	2164	+	(E) (i) With respect to the acceptance or receipt in this state of 1615
	2165	+	computer and data processing services purchased from any retailer for 1616
	2166	+	consumption or use in this state occurring on or after July 1, 2001, at 1617
	2167	+	the rate of one per cent of such services, and (ii) with respect to the 1618
	2168	+	acceptance or receipt in this state of Internet access services, on and 1619
	2169	+	after July 1, 2001, such services shall be exempt from such tax; 1620
	2170	+	(F) With respect to the acceptance or receipt in this state of patient 1621
	2171	+	Governor's Bill No. 877
	2172	+
	2173	+
	2174	+
	2175	+	LCO No. 4566 58 of 138
	2176	+
	2177	+	care services purchased from any retailer for consumption or use in 1622
	2178	+	this state for which payment is received by the hospital on or after July 1623
	2179	+	1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1624
	2180	+	per cent and on and after July 1, 2001, such services shall be exempt 1625
	2181	+	from such tax; 1626
	2182	+	(G) With respect to the rental or leasing of a passenger motor 1627
	2183	+	vehicle for a period of thirty consecutive calendar days or less, at a rate 1628
	2184	+	of nine and thirty-five-hundredths per cent; 1629
	2185	+	(H) With respect to the acceptance or receipt in this state of (i) a 1630
	2186	+	motor vehicle for a sales price exceeding fifty thousand dollars, at a 1631
	2187	+	rate of seven and three-fourths per cent on the entire sales price, (ii) 1632
	2188	+	jewelry, whether real or imitation, for a sales price exceeding five 1633
	2189	+	thousand dollars, at a rate of seven and three-fourths per cent on the 1634
	2190	+	entire sales price, and (iii) an article of clothing or footwear intended to 1635
	2191	+	be worn on or about the human body, a handbag, luggage, umbrella, 1636
	2192	+	wallet or watch for a sales price exceeding one thousand dollars, at a 1637
	2193	+	rate of seven and three-fourths per cent on the entire sales price. For 1638
	2194	+	purposes of this subparagraph, "motor vehicle" has the meaning 1639
	2195	+	provided in section 14-1, but does not include a motor vehicle subject 1640
	2196	+	to the provisions of subparagraph (C) of this subdivision, a motor 1641
	2197	+	vehicle having a gross vehicle weight rating over twelve thousand five 1642
	2198	+	hundred pounds, or a motor vehicle having a gross vehicle weight 1643
	2199	+	rating of twelve thousand five hundred pounds or less that is not used 1644
	2200	+	for private passenger purposes, but is designed or used to transport 1645
	2201	+	merchandise, freight or persons in connection with any business 1646
	2202	+	enterprise and issued a commercial registration or more specific type 1647
	2203	+	of registration by the Department of Motor Vehicles; 1648
	2204	+	(I) (i) For calendar quarters ending on or after September 30, 2019, 1649
	2205	+	the commissioner shall deposit into the regional planning incentive 1650
	2206	+	account, established pursuant to section 4-66k, six and seven-tenths 1651
	2207	+	per cent of the amounts received by the state from the tax imposed 1652
	2208	+	under subparagraph (B) of this subdivision and ten and seven-tenths 1653
	2209	+	Governor's Bill No. 877
	2210	+
	2211	+
	2212	+
	2213	+	LCO No. 4566 59 of 138
	2214	+
	2215	+	per cent of the amounts received by the state from the tax imposed 1654
	2216	+	under subparagraph (G) of this subdivision; 1655
	2217	+	(ii) For calendar quarters ending on or after September 30, 2018, the 1656
	2218	+	commissioner shall deposit into the Tourism Fund established under 1657
	2219	+	section 10-395b ten per cent of the amounts received by the state from 1658
	2220	+	the tax imposed under subparagraph (B) of this subdivision; and 1659
	2221	+	[(J) For calendar months commencing on or after July 1, 2021, the 1660
	2222	+	commissioner shall deposit into said municipal revenue sharing 1661
	2223	+	account seven and nine-tenths per cent of the amounts received by the 1662
	2224	+	state from the tax imposed under subparagraph (A) of this 1663
	2225	+	subdivision; and] 1664
	2226	+	[(K)] (J) (i) For calendar months commencing on or after July 1, 2017, 1665
	2227	+	the commissioner shall deposit into said Special Transportation Fund 1666
	2228	+	seven and nine-tenths per cent of the amounts received by the state 1667
	2229	+	from the tax imposed under subparagraph (A) of this subdivision; 1668
	2230	+	(ii) For calendar months commencing on or after July 1, 2018, [but 1669
	2231	+	prior to July 1, 2019,] the commissioner shall deposit into the Special 1670
	2232	+	Transportation Fund established under section 13b-68 eight per cent of 1671
	2233	+	the amounts received by the state from the tax imposed under 1672
	2234	+	subparagraphs (A) and (H) of this subdivision on the acceptance or 1673
	2235	+	receipt in this state of a motor vehicle. [;] 1674
	2236	+	[(iii) For calendar months commencing on or after July 1, 2019, but 1675
	2237	+	prior to July 1, 2020, the commissioner shall deposit into the Special 1676
	2238	+	Transportation Fund established under section 13b-68 thirty-three per 1677
	2239	+	cent of the amounts received by the state from the tax imposed under 1678
	2240	+	subparagraphs (A) and (H) of this subdivision on the acceptance or 1679
	2241	+	receipt in this state of a motor vehicle; 1680
	2242	+	(iv) For calendar months commencing on or after July 1, 2020, but 1681
	2243	+	prior to July 1, 2021, the commissioner shall deposit into the Special 1682
	2244	+	Transportation Fund established under section 13b-68 fifty-six per cent 1683
	2245	+	Governor's Bill No. 877
	2246	+
	2247	+
	2248	+
	2249	+	LCO No. 4566 60 of 138
	2250	+
	2251	+	of the amounts received by the state from the tax imposed under 1684
	2252	+	subparagraphs (A) and (H) of this subdivision on the acceptance or 1685
	2253	+	receipt in this state of a motor vehicle; 1686
	2254	+	(v) For calendar months commencing on or after July 1, 2021, but 1687
	2255	+	prior to July 1, 2022, the commissioner shall deposit into the Special 1688
	2256	+	Transportation Fund established under section 13b-68 seventy-five per 1689
	2257	+	cent of the amounts received by the state from the tax imposed under 1690
	2258	+	subparagraphs (A) and (H) of this subdivision on the acceptance or 1691
	2259	+	receipt in this state of a motor vehicle; and 1692
	2260	+	(vi) For calendar months commencing on or after July 1, 2022, the 1693
	2261	+	commissioner shall deposit into the Special Transportation Fund 1694
	2262	+	established under section 13b-68 one hundred per cent of the amounts 1695
	2263	+	received by the state from the tax imposed under subparagraphs (A) 1696
	2264	+	and (H) of this subdivision on the acceptance or receipt in this state of 1697
	2265	+	a motor vehicle.] 1698
	2266	+	Sec. 17. Subdivision (1) of section 12-411 of the general statutes, as 1699
	2267	+	amended by section 16 of this act, is repealed and the following is 1700
	2268	+	substituted in lieu thereof (Effective January 1, 2020, and applicable to 1701
	2269	+	sales occurring on or after January 1, 2020): 1702
	2270	+	(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1703
	2271	+	consumption or any other use in this state of tangible personal 1704
	2272	+	property purchased from any retailer for storage, acceptance, 1705
	2273	+	consumption or any other use in this state, the acceptance or receipt of 1706
	2274	+	any services constituting a sale in accordance with subdivision (2) of 1707
	2275	+	subsection (a) of section 12-407, as amended by this act, purchased 1708
	2276	+	from any retailer for consumption or use in this state, or the storage, 1709
	2277	+	acceptance, consumption or any other use in this state of tangible 1710
	2278	+	personal property which has been manufactured, fabricated, 1711
	2279	+	assembled or processed from materials by a person, either within or 1712
	2280	+	without this state, for storage, acceptance, consumption or any other 1713
	2281	+	use by such person in this state, to be measured by the sales price of 1714
	2282	+	Governor's Bill No. 877
	2283	+
	2284	+
	2285	+
	2286	+	LCO No. 4566 61 of 138
	2287	+
	2288	+	materials, at the rate of six and thirty-five-hundredths per cent of the 1715
	2289	+	sales price of such property or services, except, in lieu of said rate of six 1716
	2290	+	and thirty-five-hundredths per cent; 1717
	2291	+	(B) (i) At a rate of seventeen per cent of the rent paid to a hotel or 1718
	2292	+	lodging house for the first period not exceeding thirty consecutive 1719
	2293	+	calendar days; 1720
	2294	+	(ii) At a rate of thirteen per cent of the rent paid to a bed and 1721
	2295	+	breakfast establishment for the first period not exceeding thirty 1722
	2296	+	consecutive calendar days; 1723
	2297	+	(iii) At a rate of six and thirty-five-hundredths per cent with respect 1724
	2298	+	to each transfer of occupancy, from the total amount of rent received 1725
	2299	+	by a campground for the first period not exceeding thirty consecutive 1726
	2300	+	days; 1727
	2301	+	(C) With respect to the storage, acceptance, consumption or use in 1728
	2302	+	this state of a motor vehicle purchased from any retailer for storage, 1729
	2303	+	acceptance, consumption or use in this state by any individual who is a 1730
	2304	+	member of the armed forces of the United States and is on full-time 1731
	2305	+	active duty in Connecticut and who is considered, under 50 App USC 1732
	2306	+	574, a resident of another state, or to any such individual and the 1733
	2307	+	spouse of such individual at a rate of four and one-half per cent of the 1734
	2308	+	sales price of such vehicle, provided such retailer requires and 1735
	2309	+	maintains a declaration by such individual, prescribed as to form by 1736
	2310	+	the commissioner and bearing notice to the effect that false statements 1737
	2311	+	made in such declaration are punishable, or other evidence, 1738
	2312	+	satisfactory to the commissioner, concerning the purchaser's state of 1739
	2313	+	residence under 50 App USC 574; 1740
	2314	+	(D) With respect to the acceptance or receipt in this state of labor 1741
	2315	+	that is otherwise taxable under subparagraph (C) or (G) of subdivision 1742
	2316	+	(2) of subsection (a) of section 12-407 on existing vessels and repair or 1743
	2317	+	maintenance services on vessels occurring on and after July 1, 1999, but 1744
	2318	+	prior to January 1, 2020, such services shall be exempt from such tax; 1745
	2319	+	Governor's Bill No. 877
	2320	+
	2321	+
	2322	+
	2323	+	LCO No. 4566 62 of 138
	2324	+
	2325	+	(E) (i) With respect to the acceptance or receipt in this state of 1746
	2326	+	computer and data processing services purchased from any retailer for 1747
	2327	+	consumption or use in this state occurring on or after July 1, 2001, at 1748
	2328	+	the rate of one per cent of such services, and (ii) with respect to the 1749
	2329	+	acceptance or receipt in this state of Internet access services, on and 1750
	2330	+	after July 1, 2001, such services shall be exempt from such tax; 1751
	2331	+	(F) With respect to the acceptance or receipt in this state of patient 1752
	2332	+	care services purchased from any retailer for consumption or use in 1753
	2333	+	this state for which payment is received by the hospital on or after July 1754
	2334	+	1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths 1755
	2335	+	per cent and on and after July 1, 2001, such services shall be exempt 1756
	2336	+	from such tax; 1757
	2337	+	(G) With respect to the rental or leasing of a passenger motor 1758
	2338	+	vehicle for a period of thirty consecutive calendar days or less, at a rate 1759
	2339	+	of nine and thirty-five-hundredths per cent; 1760
	2340	+	(H) With respect to the acceptance or receipt in this state of (i) a 1761
	2341	+	motor vehicle for a sales price exceeding fifty thousand dollars, at a 1762
	2342	+	rate of seven and three-fourths per cent on the entire sales price, (ii) 1763
	2343	+	jewelry, whether real or imitation, for a sales price exceeding five 1764
	2344	+	thousand dollars, at a rate of seven and three-fourths per cent on the 1765
	2345	+	entire sales price, and (iii) an article of clothing or footwear intended to 1766
	2346	+	be worn on or about the human body, a handbag, luggage, umbrella, 1767
	2347	+	wallet or watch for a sales price exceeding one thousand dollars, at a 1768
	2348	+	rate of seven and three-fourths per cent on the entire sales price. For 1769
	2349	+	purposes of this subparagraph, "motor vehicle" has the meaning 1770
	2350	+	provided in section 14-1, but does not include a motor vehicle subject 1771
	2351	+	to the provisions of subparagraph (C) of this subdivision, a motor 1772
	2352	+	vehicle having a gross vehicle weight rating over twelve thousand five 1773
	2353	+	hundred pounds, or a motor vehicle having a gross vehicle weight 1774
	2354	+	rating of twelve thousand five hundred pounds or less that is not used 1775
	2355	+	for private passenger purposes, but is designed or used to transport 1776
	2356	+	merchandise, freight or persons in connection with any business 1777
	2357	+	Governor's Bill No. 877
	2358	+
	2359	+
	2360	+
	2361	+	LCO No. 4566 63 of 138
	2362	+
	2363	+	enterprise and issued a commercial registration or more specific type 1778
	2364	+	of registration by the Department of Motor Vehicles; 1779
	2365	+	(I) (i) For calendar quarters ending on or after September 30, 2019, 1780
	2366	+	the commissioner shall deposit into the regional planning incentive 1781
	2367	+	account, established pursuant to section 4-66k, six and seven-tenths 1782
	2368	+	per cent of the amounts received by the state from the tax imposed 1783
	2369	+	under subparagraph (B) of this subdivision and ten and seven-tenths 1784
	2370	+	per cent of the amounts received by the state from the tax imposed 1785
	2371	+	under subparagraph (G) of this subdivision; 1786
	2372	+	(ii) For calendar quarters ending on or after September 30, 2018, the 1787
	2373	+	commissioner shall deposit into the Tourism Fund established under 1788
	2374	+	section 10-395b ten per cent of the amounts received by the state from 1789
	2375	+	the tax imposed under subparagraph [(B)] (B)(i) and (B)(ii) of this 1790
	2376	+	subdivision; and 1791
	2377	+	(J) (i) For calendar months commencing on or after July 1, 2017, the 1792
	2378	+	commissioner shall deposit into said Special Transportation Fund 1793
	2379	+	seven and nine-tenths per cent of the amounts received by the state 1794
	2380	+	from the tax imposed under subparagraph (A) of this subdivision; 1795
	2381	+	(ii) For calendar months commencing on or after July 1, 2018, the 1796
	2382	+	commissioner shall deposit into the Special Transportation Fund 1797
	2383	+	established under section 13b-68 eight per cent of the amounts 1798
	2384	+	received by the state from the tax imposed under subparagraphs (A) 1799
	2385	+	and (H) of this subdivision on the acceptance or receipt in this state of 1800
	2386	+	a motor vehicle. 1801
	2387	+	Sec. 18. Subparagraph (M) of subdivision (2) of subsection (a) of 1802
	2388	+	section 12-407 of the general statutes is repealed and the following is 1803
	2389	+	substituted in lieu thereof (Effective October 1, 2019, and applicable to 1804
	2390	+	sales occurring on or after October 1, 2019): 1805
	2391	+	(M) The transfer for consideration of space or the right to use any 1806
	2392	+	space for the purpose of storage or mooring of any noncommercial 1807
	2393	+	Governor's Bill No. 877
	2394	+
	2395	+
	2396	+
	2397	+	LCO No. 4566 64 of 138
	2398	+
	2399	+	vessel; [, exclusive of dry or wet storage or mooring of such vessel 1808
	2400	+	during the period commencing on the first day of October in any year 1809
	2401	+	to and including the thirty-first day of May of the next succeeding 1810
	2402	+	year;] 1811
	2403	+	Sec. 19. Subdivision (13) of subsection (a) of section 12-407 of the 1812
	2404	+	general statutes is repealed and the following is substituted in lieu 1813
	2405	+	thereof (Effective October 1, 2019, and applicable to sales occurring on or 1814
	2406	+	after October 1, 2019): 1815
	2407	+	(13) "Tangible personal property" means personal property [which] 1816
	2408	+	that may be seen, weighed, measured, felt or touched or [which] that is 1817
	2409	+	in any other manner perceptible to the senses. [including] "Tangible 1818
	2410	+	personal property" includes (A) digital goods and canned or 1819
	2411	+	prewritten computer software, [. Tangible personal property includes] 1820
	2412	+	including prewritten software that is electronically accessed or 1821
	2413	+	transferred and any additional content related to such software, and 1822
	2414	+	(B) the distribution, generation or transmission of electricity. 1823
	2415	+	Sec. 20. Subsection (a) of section 12-407 of the general statutes is 1824
	2416	+	amended by adding subdivision (43) as follows (Effective October 1, 1825
	2417	+	2019, and applicable to sales occurring on or after October 1, 2019): 1826
	2418	+	(NEW) (43) "Digital goods" means audio works, visual works, 1827
	2419	+	audio-visual works, reading materials or ring tones, that are 1828
	2420	+	electronically accessed or transferred. 1829
	2421	+	Sec. 21. Subparagraph (A) of subdivision (37) of subsection (a) of 1830
	2422	+	section 12-407 of the general statutes is repealed and the following is 1831
	2423	+	substituted in lieu thereof (Effective October 1, 2019, and applicable to 1832
	2424	+	sales occurring on or after October 1, 2019): 1833
	2425	+	(A) Computer and data processing services, including, but not 1834
	2426	+	limited to, time, programming, code writing, modification of existing 1835
	2427	+	programs, feasibility studies and installation and implementation of 1836
	2428	+	software programs and systems even where such services are rendered 1837
	2429	+	Governor's Bill No. 877
	2430	+
	2431	+
	2432	+
	2433	+	LCO No. 4566 65 of 138
	2434	+
	2435	+	in connection with the development, creation or production of canned 1838
	2436	+	or custom software or the license of custom software, but excluding 1839
	2437	+	digital goods; 1840
	2438	+	Sec. 22. Subdivision (37) of subsection (a) of section 12-407 of the 1841
	2439	+	general statutes, as amended by section 21 of this act, is repealed and 1842
	2440	+	the following is substituted in lieu thereof (Effective January 1, 2020, and 1843
	2441	+	applicable to sales occurring on or after January 1, 2020): 1844
	2442	+	(37) "Services" for purposes of subdivision (2) of this subsection, 1845
	2443	+	means: 1846
	2444	+	(A) Computer and data processing services, including, but not 1847
	2445	+	limited to, time, programming, code writing, modification of existing 1848
	2446	+	programs, feasibility studies and installation and implementation of 1849
	2447	+	software programs and systems even where such services are rendered 1850
	2448	+	in connection with the development, creation or production of canned 1851
	2449	+	or custom software or the license of custom software, but excluding 1852
	2450	+	digital goods; 1853
	2451	+	(B) Credit information and reporting services; 1854
	2452	+	(C) Services by employment agencies and agencies providing 1855
	2453	+	personnel services; 1856
	2454	+	(D) Private investigation, protection, patrol work, watchman and 1857
	2455	+	armored car services, exclusive of (i) services of off-duty police officers 1858
	2456	+	and off-duty firefighters, and (ii) coin and currency services provided 1859
	2457	+	to a financial services company by or through another financial 1860
	2458	+	services company. For purposes of this subparagraph, "financial 1861
	2459	+	services company" has the same meaning as provided under 1862
	2460	+	subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) 1863
	2461	+	of section 12-218b; 1864
	2462	+	(E) Painting and lettering services; 1865
	2463	+	(F) Photographic studio services; 1866
	2464	+	Governor's Bill No. 877
	2465	+
	2466	+
	2467	+
	2468	+	LCO No. 4566 66 of 138
	2469	+
	2470	+	(G) Telephone answering services; 1867
	2471	+	(H) Stenographic services; 1868
	2472	+	(I) Services to industrial, commercial or income-producing real 1869
	2473	+	property, including, but not limited to, such services as management, 1870
	2474	+	electrical, plumbing, painting and carpentry, provided 1871
	2475	+	income-producing property shall not include [property used 1872
	2476	+	exclusively for residential purposes in which the owner resides and 1873
	2477	+	which contains no more than three dwelling units, or] a housing 1874
	2478	+	facility for low and moderate income families and persons owned or 1875
	2479	+	operated by a nonprofit housing organization, as defined in 1876
	2480	+	subdivision (29) of section 12-412; 1877
	2481	+	(J) Business analysis, management, management consulting and 1878
	2482	+	public relations services, excluding (i) any environmental consulting 1879
	2483	+	services, (ii) any training services provided by an institution of higher 1880
	2484	+	education licensed or accredited by the Board of Regents for Higher 1881
	2485	+	Education or Office of Higher Education pursuant to sections 10a-35a 1882
	2486	+	and 10a-34, respectively, and (iii) on and after January 1, 1994, any 1883
	2487	+	business analysis, management, management consulting and public 1884
	2488	+	relations services when such services are rendered in connection with 1885
	2489	+	an aircraft leased or owned by a certificated air carrier or in connection 1886
	2490	+	with an aircraft which has a maximum certificated take-off weight of 1887
	2491	+	six thousand pounds or more; 1888
	2492	+	(K) Services providing "piped-in" music to business or professional 1889
	2493	+	establishments; 1890
	2494	+	(L) Flight instruction and chartering services by a certificated air 1891
	2495	+	carrier on an aircraft, the use of which for such purposes, but for the 1892
	2496	+	provisions of subdivision (4) of section 12-410 and subdivision (12) of 1893
	2497	+	section 12-411, would be deemed a retail sale and a taxable storage or 1894
	2498	+	use, respectively, of such aircraft by such carrier; 1895
	2499	+	(M) Motor vehicle repair services, including any type of repair, 1896
	2500	+	Governor's Bill No. 877
	2501	+
	2502	+
	2503	+
	2504	+	LCO No. 4566 67 of 138
	2505	+
	2506	+	painting or replacement related to the body or any of the operating 1897
	2507	+	parts of a motor vehicle; 1898
	2508	+	(N) Motor vehicle parking, [including the provision of space, other 1899
	2509	+	than metered space, in a lot having thirty or more spaces,] excluding 1900
	2510	+	[(i)] space in a parking lot owned or leased under the terms of a lease 1901
	2511	+	of not less than ten years' duration and operated by an employer for 1902
	2512	+	the exclusive use of its employees; [, (ii) space in municipally operated 1903
	2513	+	railroad parking facilities in municipalities located within an area of 1904
	2514	+	the state designated as a severe nonattainment area for ozone under 1905
	2515	+	the federal Clean Air Act or space in a railroad parking facility in a 1906
	2516	+	municipality located within an area of the state designated as a severe 1907
	2517	+	nonattainment area for ozone under the federal Clean Air Act owned 1908
	2518	+	or operated by the state on or after April 1, 2000, (iii) space in a 1909
	2519	+	seasonal parking lot provided by an entity subject to the exemption set 1910
	2520	+	forth in subdivision (1) of section 12-412, and (iv) space in a 1911
	2521	+	municipally owned parking lot;] 1912
	2522	+	(O) Radio or television repair services; 1913
	2523	+	(P) Furniture reupholstering and repair services; 1914
	2524	+	(Q) Repair services to any electrical or electronic device, including, 1915
	2525	+	but not limited to, equipment used for purposes of refrigeration or 1916
	2526	+	air-conditioning; 1917
	2527	+	(R) Lobbying or consulting services for purposes of representing the 1918
	2528	+	interests of a client in relation to the functions of any governmental 1919
	2529	+	entity or instrumentality; 1920
	2530	+	(S) Services of the agent of any person in relation to the sale of any 1921
	2531	+	item of tangible personal property for such person, exclusive of the 1922
	2532	+	services of a consignee selling works of art, as defined in subsection (b) 1923
	2533	+	of section 12-376c, or articles of clothing or footwear intended to be 1924
	2534	+	worn on or about the human body other than (i) any special clothing 1925
	2535	+	or footwear primarily designed for athletic activity or protective use 1926
	2536	+	Governor's Bill No. 877
	2537	+
	2538	+
	2539	+
	2540	+	LCO No. 4566 68 of 138
	2541	+
	2542	+	and which is not normally worn except when used for the athletic 1927
	2543	+	activity or protective use for which it was designed, and (ii) jewelry, 1928
	2544	+	handbags, luggage, umbrellas, wallets, watches and similar items 1929
	2545	+	carried on or about the human body but not worn on the body, under 1930
	2546	+	consignment, exclusive of services provided by an auctioneer; 1931
	2547	+	(T) Locksmith services; 1932
	2548	+	(U) Advertising or public relations services, including layout, art 1933
	2549	+	direction, graphic design, mechanical preparation or production 1934
	2550	+	supervision, not related to the development of media advertising or 1935
	2551	+	cooperative direct mail advertising; 1936
	2552	+	(V) Landscaping and horticulture services; 1937
	2553	+	(W) Window cleaning services; 1938
	2554	+	(X) [Maintenance services] Services to buildings and dwellings, 1939
	2555	+	including, but not limited to, maintenance, repair, renovation, exterior 1940
	2556	+	cleaning, chimney cleaning, driveway cleaning, duct cleaning, drain or 1941
	2557	+	gutter cleaning, refuse collection, snow plowing and all other such 1942
	2558	+	services not specifically enumerated herein; 1943
	2559	+	(Y) Janitorial services; 1944
	2560	+	(Z) Exterminating and pest control services; 1945
	2561	+	(AA) Swimming pool cleaning and maintenance services; 1946
	2562	+	(BB) [Miscellaneous personal services included in industry group 1947
	2563	+	729 in the Standard Industrial Classification Manual, United States 1948
	2564	+	Office of Management and Budget, 1987 edition, or U.S. industry 1949
	2565	+	532220, 812191, 812199 or 812990 in] Personal and laundry services 1950
	2566	+	described in industry group 812 of the North American [Industrial] 1951
	2567	+	Industry Classification System United States Manual, United States 1952
	2568	+	Office of Management and Budget (NAICS), [1997] 2017 edition, 1953
	2569	+	exclusive of [(i) services rendered by massage therapists licensed 1954
	2570	+	Governor's Bill No. 877
	2571	+
	2572	+
	2573	+
	2574	+	LCO No. 4566 69 of 138
	2575	+
	2576	+	pursuant to chapter 384a, and (ii) services rendered by an electrologist 1955
	2577	+	licensed pursuant to chapter 388] death care services described in 1956
	2578	+	industry group 8122 of the NAICS, 2017 edition; 1957
	2579	+	(CC) Any repair or maintenance service to any item of tangible 1958
	2580	+	personal property including any contract of warranty or service related 1959
	2581	+	to any such item; 1960
	2582	+	(DD) Business analysis, management or managing consulting 1961
	2583	+	services rendered by a general partner, or an affiliate thereof, to a 1962
	2584	+	limited partnership, provided (i) the general partner, or an affiliate 1963
	2585	+	thereof, is compensated for the rendition of such services other than 1964
	2586	+	through a distributive share of partnership profits or an annual 1965
	2587	+	percentage of partnership capital or assets established in the limited 1966
	2588	+	partnership's offering statement, and (ii) the general partner, or an 1967
	2589	+	affiliate thereof, offers such services to others, including any other 1968
	2590	+	partnership. As used in this subparagraph "an affiliate of a general 1969
	2591	+	partner" means an entity which is directly or indirectly owned fifty per 1970
	2592	+	cent or more in common with a general partner; 1971
	2593	+	(EE) Notwithstanding the provisions of section 12-412, as amended 1972
	2594	+	by this act, except subdivision (87) of [said] section 12-412, patient care 1973
	2595	+	services, as defined in subdivision (29) of this subsection by a hospital, 1974
	2596	+	except that "sale" and "selling" does not include such patient care 1975
	2597	+	services for which payment is received by the hospital during the 1976
	2598	+	period commencing July 1, 2001, and ending June 30, 2003; 1977
	2599	+	(FF) Health and athletic club services, exclusive of (i) any such 1978
	2600	+	services provided without any additional charge which are included in 1979
	2601	+	any dues or initiation fees paid to any such club, which dues or fees 1980
	2602	+	are subject to tax under section 12-543, and (ii) any such services 1981
	2603	+	provided by a municipality or an organization that is described in 1982
	2604	+	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1983
	2605	+	corresponding internal revenue code of the United States, as from time 1984
	2606	+	to time amended; 1985
	2607	+	Governor's Bill No. 877
	2608	+
	2609	+
	2610	+
	2611	+	LCO No. 4566 70 of 138
	2612	+
	2613	+	(GG) Motor vehicle storage services, including storage of motor 1986
	2614	+	homes, campers and camp trailers, other than the furnishing of space 1987
	2615	+	as described in subparagraph (P) of subdivision (2) of this subsection; 1988
	2616	+	(HH) Packing and crating services, other than those provided in 1989
	2617	+	connection with the sale of tangible personal property by the retailer of 1990
	2618	+	such property; 1991
	2619	+	(II) Motor vehicle towing and road services, other than motor 1992
	2620	+	vehicle repair services; 1993
	2621	+	(JJ) Intrastate transportation services provided by livery services, 1994
	2622	+	including limousines, community cars or vans, with a driver. Intrastate 1995
	2623	+	transportation services shall not include transportation by taxicab, 1996
	2624	+	motor bus, ambulance or ambulette, scheduled public transportation, 1997
	2625	+	nonemergency medical transportation provided under the Medicaid 1998
	2626	+	program, paratransit services provided by agreement or arrangement 1999
	2627	+	with the state or any political subdivision of the state, dial-a-ride 2000
	2628	+	services or services provided in connection with funerals; 2001
	2629	+	(KK) [Pet] Animal grooming and [pet] animal boarding services, 2002
	2630	+	[except if such services are provided as an integral part of professional 2003
	2631	+	veterinary services,] and pet obedience services; 2004
	2632	+	(LL) Services in connection with a cosmetic medical procedure. For 2005
	2633	+	purposes of this subparagraph, "cosmetic medical procedure" means 2006
	2634	+	any medical procedure performed on an individual that is directed at 2007
	2635	+	improving the individual's appearance and that does not meaningfully 2008
	2636	+	promote the proper function of the body or prevent or treat illness or 2009
	2637	+	disease. "Cosmetic medical procedure" includes, but is not limited to, 2010
	2638	+	cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 2011
	2639	+	tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 2012
	2640	+	skin resurfacing, laser treatment of leg veins and sclerotherapy. 2013
	2641	+	"Cosmetic medical procedure" does not include reconstructive surgery. 2014
	2642	+	"Reconstructive surgery" includes any surgery performed on abnormal 2015
	2643	+	structures caused by or related to congenital defects, developmental 2016
	2644	+	Governor's Bill No. 877
	2645	+
	2646	+
	2647	+
	2648	+	LCO No. 4566 71 of 138
	2649	+
	2650	+	abnormalities, trauma, infection, tumors or disease, including 2017
	2651	+	procedures to improve function or give a more normal appearance; 2018
	2652	+	(MM) Manicure services, pedicure services and all other nail 2019
	2653	+	services, regardless of where performed, including airbrushing, fills, 2020
	2654	+	full sets, nail sculpting, paraffin treatments and polishes; 2021
	2655	+	(NN) Spa services, regardless of where performed, including body 2022
	2656	+	waxing and wraps, peels, scrubs and facials; [and] 2023
	2657	+	(OO) Car wash services, including coin-operated car washes; [.] 2024
	2658	+	(PP) Scenic and sightseeing transportation services described in 2025
	2659	+	industry group 487 of the NAICS, 2017 edition, as amended from time 2026
	2660	+	to time; 2027
	2661	+	(QQ) Real estate agent and broker services described in industry 2028
	2662	+	group 5312 and services for activities related to real estate described in 2029
	2663	+	industry group 5313 of the NAICS, 2017 edition, as amended from 2030
	2664	+	time to time; 2031
	2665	+	(RR) Travel arrangement and reservation services described in 2032
	2666	+	industry group 5615 of the NAICS, 2017 edition, as amended from 2033
	2667	+	time to time; 2034
	2668	+	(SS) Legal services described in industry group 5411 of the NAICS, 2035
	2669	+	2017 edition, as amended from time to time; 2036
	2670	+	(TT) Accounting services described in industry group 541211 and 2037
	2671	+	tax return preparation services described in industry group 541213 of 2038
	2672	+	the NAICS, 2017 edition, as amended from time to time; 2039
	2673	+	(UU) Architectural services described in industry group 54131 of the 2040
	2674	+	NAICS, 2017 edition, as amended from time to time; 2041
	2675	+	(VV) Engineering services described in industry group 54133 of the 2042
	2676	+	NAICS, 2017 edition, as amended from time to time; 2043
	2677	+	Governor's Bill No. 877
	2678	+
	2679	+
	2680	+
	2681	+	LCO No. 4566 72 of 138
	2682	+
	2683	+	(WW) Interior design services described in industry group 54141 of 2044
	2684	+	the NAICS, 2017 edition, as amended from time to time; 2045
	2685	+	(XX) Veterinary services described in industry group 54194 of the 2046
	2686	+	NAICS, 2017 edition, as amended from time to time; 2047
	2687	+	(YY) Sports and recreation instruction services described in industry 2048
	2688	+	group 61162 of the NAICS, 2017 edition, as amended from time to 2049
	2689	+	time; 2050
	2690	+	(ZZ) Services provided by amusement and recreat ion 2051
	2691	+	establishments described in industry group 7139 of the NAICS, 2017 2052
	2692	+	edition, as amended from time to time; and 2053
	2693	+	(AAA) Waste management and remediation services provided by 2054
	2694	+	establishments described in industry group 5621 of the NAICS, 2017 2055
	2695	+	edition, as amended from time to time. 2056
	2696	+	Sec. 23. Subparagraph (H) of subdivision (2) of subsection (a) of 2057
	2697	+	section 12-407 of the general statutes is repealed and the following is 2058
	2698	+	substituted in lieu thereof (Effective January 1, 2020, and applicable to 2059
	2699	+	sales occurring on or after January 1, 2020): 2060
	2700	+	(H) A transfer for a consideration of the occupancy of any room or 2061
	2701	+	rooms in a hotel, lodging house or bed and breakfast establishment or 2062
	2702	+	of any space in a campground, for a period of thirty consecutive 2063
	2703	+	calendar days or less; 2064
	2704	+	Sec. 24. Subparagraph (A) of subdivision (3) of subsection (a) of 2065
	2705	+	section 12-407 of the general statutes is repealed and the following is 2066
	2706	+	substituted in lieu thereof (Effective January 1, 2020, and applicable to 2067
	2707	+	sales occurring on or after January 1, 2020): 2068
	2708	+	(3) (A) "Retail sale" or "sale at retail" means and includes a sale for 2069
	2709	+	any purpose other than resale in the regular course of business of (i) 2070
	2710	+	tangible personal property, [or] (ii) a transfer for a consideration of the 2071
	2711	+	occupancy of (I) any room or rooms in a hotel, lodging house or bed 2072
	2712	+	Governor's Bill No. 877
	2713	+
	2714	+
	2715	+
	2716	+	LCO No. 4566 73 of 138
	2717	+
	2718	+	and breakfast establishment for a period of thirty consecutive calendar 2073
	2719	+	days or less, or (II) any space in a campground for a period of thirty 2074
	2720	+	consecutive calendar days or less, or (iii) the rendering of any service 2075
	2721	+	described in subdivision (2) of this subsection. The delivery in this 2076
	2722	+	state of tangible personal property by an owner or former owner 2077
	2723	+	thereof or by a factor, if the delivery is to a consumer pursuant to a 2078
	2724	+	retail sale made by a retailer not engaged in business in this state, is a 2079
	2725	+	retail sale in this state by the person making the delivery. Such person 2080
	2726	+	shall include the retail selling price of the property in such person's 2081
	2727	+	gross receipts. 2082
	2728	+	Sec. 25. Subdivision (7) of subsection (a) of section 12-407 of the 2083
	2729	+	general statutes is repealed and the following is substituted in lieu 2084
	2730	+	thereof (Effective January 1, 2020, and applicable to sales occurring on or 2085
	2731	+	after January 1, 2020): 2086
	2732	+	(7) "Purchase" and "purchasing" means and includes: (A) Any 2087
	2733	+	transfer, exchange or barter, conditional or otherwise, in any manner 2088
	2734	+	or by any means whatsoever, of (i) tangible personal property for a 2089
	2735	+	consideration, or (ii) of the occupancy of any room or rooms in a hotel, 2090
	2736	+	lodging house or bed and breakfast establishment for a period of thirty 2091
	2737	+	consecutive calendar days or less for a consideration or of any space in 2092
	2738	+	a campground for a period of thirty consecutive calendar days or less 2093
	2739	+	for a consideration; (B) a transaction whereby the possession of 2094
	2740	+	property is transferred but the seller retains the title as security for the 2095
	2741	+	payment of the price; (C) a transfer for a consideration of tangible 2096
	2742	+	personal property which has been produced, fabricated or printed to 2097
	2743	+	the special order of the customer, or of any publication; (D) when 2098
	2744	+	performed outside this state or when the customer gives a resale 2099
	2745	+	certificate pursuant to section 12-410, the producing, fabricating, 2100
	2746	+	processing, printing or imprinting of tangible personal property for a 2101
	2747	+	consideration for consumers who furnish either directly or indirectly 2102
	2748	+	the materials used in the producing, fabricating, processing, printing 2103
	2749	+	or imprinting; (E) the acceptance or receipt of any service described in 2104
	2750	+	any of the subparagraphs of subdivision (2) of this subsection; (F) any 2105
	2751	+	Governor's Bill No. 877
	2752	+
	2753	+
	2754	+
	2755	+	LCO No. 4566 74 of 138
	2756	+
	2757	+	leasing or rental of tangible personal property. Wherever in this 2106
	2758	+	chapter reference is made to the purchase or purchasing of tangible 2107
	2759	+	personal property, it shall be construed to include purchases as 2108
	2760	+	described in this subsection. 2109
	2761	+	Sec. 26. Subparagraph (A) of subdivision (8) of subsection (a) of 2110
	2762	+	section 12-407 of the general statutes is repealed and the following is 2111
	2763	+	substituted in lieu thereof (Effective January 1, 2020, and applicable to 2112
	2764	+	sales occurring on or after January 1, 2020): 2113
	2765	+	(8) (A) "Sales price" means the total amount for which tangible 2114
	2766	+	personal property is sold by a retailer, the total amount of rent for 2115
	2767	+	which occupancy of a room or of a space in a campground is 2116
	2768	+	transferred by an operator, the total amount for which any service 2117
	2769	+	described in subdivision (2) of this subsection is rendered by a retailer 2118
	2770	+	or the total amount of payment or periodic payments for which 2119
	2771	+	tangible personal property is leased by a retailer, valued in money, 2120
	2772	+	whether paid in money or otherwise, which amount is due and owing 2121
	2773	+	to the retailer or operator and, subject to the provisions of subdivision 2122
	2774	+	(1) of section 12-408, as amended by this act, whether or not actually 2123
	2775	+	received by the retailer or operator, without any deduction on account 2124
	2776	+	of any of the following: (i) The cost of the property sold; (ii) the cost of 2125
	2777	+	materials used, labor or service cost, interest charged, losses or any 2126
	2778	+	other expenses; (iii) for any sale occurring on or after July 1, 1993, any 2127
	2779	+	charges by the retailer to the purchaser for shipping or delivery, 2128
	2780	+	notwithstanding whether such charges are separately stated in a 2129
	2781	+	written contract, or on a bill or invoice rendered to such purchaser or 2130
	2782	+	whether such shipping or delivery is provided by the retailer or a third 2131
	2783	+	party. The provisions of subparagraph (A) (iii) of this subdivision shall 2132
	2784	+	not apply to any item exempt from taxation pursuant to section 12-412, 2133
	2785	+	as amended by this act. Such total amount includes any services that 2134
	2786	+	are a part of the sale; except as otherwise provided in subparagraph 2135
	2787	+	(B)(v) or (B)(vi) of this subdivision, any amount for which credit is 2136
	2788	+	given to the purchaser by the retailer, and all compensation and all 2137
	2789	+	employment-related expenses, whether or not separately stated, paid 2138
	2790	+	Governor's Bill No. 877
	2791	+
	2792	+
	2793	+
	2794	+	LCO No. 4566 75 of 138
	2795	+
	2796	+	to or on behalf of employees of a retailer of any service described in 2139
	2797	+	subdivision (2) of this subsection. 2140
	2798	+	Sec. 27. Subparagraph (A) of subdivision (9) of subsection (a) of 2141
	2799	+	section 12-407 of the general statutes is repealed and the following is 2142
	2800	+	substituted in lieu thereof (Effective January 1, 2020, and applicable to 2143
	2801	+	sales occurring on or after January 1, 2020): 2144
	2802	+	(9) (A) "Gross receipts" means the total amount of the sales price 2145
	2803	+	from retail sales of tangible personal property by a retailer, the total 2146
	2804	+	amount of the rent from transfers of occupancy of rooms or of space in 2147
	2805	+	a campground by an operator, the total amount of the sales price from 2148
	2806	+	retail sales of any service described in subdivision (2) of this subsection 2149
	2807	+	by a retailer of services, or the total amount of payment or periodic 2150
	2808	+	payments from leases or rentals of tangible personal property by a 2151
	2809	+	retailer, valued in money, whether received in money or otherwise, 2152
	2810	+	which amount is due and owing to the retailer or operator and, subject 2153
	2811	+	to the provisions of subdivision (1) of section 12-408, as amended by 2154
	2812	+	this act, whether or not actually received by the retailer or operator, 2155
	2813	+	without any deduction on account of any of the following: (i) The cost 2156
	2814	+	of the property sold; however, in accordance with such regulations as 2157
	2815	+	the Commissioner of Revenue Services may prescribe, a deduction 2158
	2816	+	may be taken if the retailer has purchased property for some other 2159
	2817	+	purpose than resale, has reimbursed the retailer's vendor for tax which 2160
	2818	+	the vendor is required to pay to the state or has paid the use tax with 2161
	2819	+	respect to the property, and has resold the property prior to making 2162
	2820	+	any use of the property other than retention, demonstration or display 2163
	2821	+	while holding it for sale in the regular course of business. If such a 2164
	2822	+	deduction is taken by the retailer, no refund or credit will be allowed 2165
	2823	+	to the retailer's vendor with respect to the sale of the property; (ii) the 2166
	2824	+	cost of the materials used, labor or service cost, interest paid, losses or 2167
	2825	+	any other expense; (iii) for any sale occurring on or after July 1, 1993, 2168
	2826	+	except for any item exempt from taxation pursuant to section 12-412, 2169
	2827	+	as amended by this act, any charges by the retailer to the purchaser for 2170
	2828	+	shipping or delivery, notwithstanding whether such charges are 2171
	2829	+	Governor's Bill No. 877
	2830	+
	2831	+
	2832	+
	2833	+	LCO No. 4566 76 of 138
	2834	+
	2835	+	separately stated in the written contract, or on a bill or invoice 2172
	2836	+	rendered to such purchaser or whether such shipping or delivery is 2173
	2837	+	provided by the retailer or a third party. The total amount of the sales 2174
	2838	+	price includes any services that are a part of the sale; all receipts, cash, 2175
	2839	+	credits and property of any kind; except as otherwise provided in 2176
	2840	+	subparagraph (B)(v) or (B)(vi) of this subdivision, any amount for 2177
	2841	+	which credit is allowed by the retailer to the purchaser; and all 2178
	2842	+	compensation and all employment-related expenses, whether or not 2179
	2843	+	separately stated, paid to or on behalf of employees of a retailer of any 2180
	2844	+	service described in subdivision (2) of this subsection. 2181
	2845	+	Sec. 28. Subparagraph (A) of subdivision (15) of subsection (a) of 2182
	2846	+	section 12-407 of the general statutes is repealed and the following is 2183
	2847	+	substituted in lieu thereof (Effective January 1, 2020, and applicable to 2184
	2848	+	sales occurring on or after January 1, 2020): 2185
	2849	+	(15) (A) "Engaged in business in the state" means and, to the extent 2186
	2850	+	not prohibited by the Constitution of the United States, includes, but 2187
	2851	+	shall not be limited to, the following acts or methods of transacting 2188
	2852	+	business: (i) Selling in this state, or any activity in this state in 2189
	2853	+	connection with selling in this state, tangible personal property for use, 2190
	2854	+	storage or consumption within the state; (ii) engaging in the transfer 2191
	2855	+	for a consideration of the occupancy of (I) any room or rooms in a 2192
	2856	+	hotel, lodging house or bed and breakfast establishment for a period of 2193
	2857	+	thirty consecutive calendar days or less, or (II) any space in a 2194
	2858	+	campground for a period of thirty consecutive calendar days or less; 2195
	2859	+	(iii) rendering in this state any service described in any of the 2196
	2860	+	subparagraphs of subdivision (2) of this subsection; (iv) maintaining, 2197
	2861	+	occupying or using, permanently or temporarily, directly or indirectly, 2198
	2862	+	through a subsidiary or agent, by whatever name called, any office, 2199
	2863	+	place of distribution, sales or sample room or place, warehouse or 2200
	2864	+	storage point or other place of business or having any representative, 2201
	2865	+	agent, salesman, canvasser or solicitor operating in this state for the 2202
	2866	+	purpose of selling, delivering or taking orders; (v) notwithstanding the 2203
	2867	+	fact that retail sales are made from outside this state to a destination 2204
	2868	+	Governor's Bill No. 877
	2869	+
	2870	+
	2871	+
	2872	+	LCO No. 4566 77 of 138
	2873	+
	2874	+	within this state, engaging in regular or systematic solicitation of sales 2205
	2875	+	of tangible personal property in this state by the display of 2206
	2876	+	advertisements on billboards or other outdoor advertising in this state, 2207
	2877	+	by the distribution of catalogs, periodicals, advertising flyers or other 2208
	2878	+	advertising by means of print, radio or television media, or by mail, 2209
	2879	+	telegraphy, telephone, computer data base, cable, optic, microwave, 2210
	2880	+	Internet or other communication system, for the purpose of effecting 2211
	2881	+	retail sales of tangible personal property, provided at least two 2212
	2882	+	hundred fifty thousand dollars of gross receipts are received and two 2213
	2883	+	hundred or more retail sales from outside this state to destinations 2214
	2884	+	within this state are made during the twelve-month period ended on 2215
	2885	+	the September thirtieth immediately preceding the monthly or 2216
	2886	+	quarterly period with respect to which liability for tax under this 2217
	2887	+	chapter is determined; (vi) being owned or controlled, either directly 2218
	2888	+	or indirectly, by a retailer engaged in business in this state which is the 2219
	2889	+	same as or similar to the line of business in which the retailer so owned 2220
	2890	+	or controlled is engaged; (vii) being owned or controlled, either 2221
	2891	+	directly or indirectly, by the same interests that own or control, either 2222
	2892	+	directly or indirectly, a retailer engaged in business in this state which 2223
	2893	+	is the same as or similar to the line of business in which the retailer so 2224
	2894	+	owned or controlled is engaged; (viii) being the assignee of a person 2225
	2895	+	engaged in the business of leasing tangible personal property to others, 2226
	2896	+	where leased property of such person is situated within this state and 2227
	2897	+	such assignee has a security interest, as defined in subdivision (35) of 2228
	2898	+	subsection (b) of section 42a-1-201, in such property; (ix) 2229
	2899	+	notwithstanding the fact that retail sales of items of tangible personal 2230
	2900	+	property are made from outside this state to a destination within this 2231
	2901	+	state, repairing or servicing such items, under a warranty, in this state, 2232
	2902	+	either directly or indirectly through an agent, independent contractor 2233
	2903	+	or subsidiary; and (x) selling tangible personal property or services 2234
	2904	+	through an agreement with a person located in this state, under which 2235
	2905	+	such person located in this state, for a commission or other 2236
	2906	+	consideration that is based upon the sale of tangible personal property 2237
	2907	+	or services by the retailer, directly or indirectly refers potential 2238
	2908	+	Governor's Bill No. 877
	2909	+
	2910	+
	2911	+
	2912	+	LCO No. 4566 78 of 138
	2913	+
	2914	+	customers, whether by a link on an Internet web site or otherwise, to 2239
	2915	+	the retailer, provided the cumulative gross receipts from sales by the 2240
	2916	+	retailer to customers in the state who are referred to the retailer by all 2241
	2917	+	such persons with this type of agreement with the retailer is in excess 2242
	2918	+	of two hundred fifty thousand dollars during the four preceding four 2243
	2919	+	quarterly periods ending on the last day of March, June, September 2244
	2920	+	and December. 2245
	2921	+	Sec. 29. Subdivisions (18) and (19) of subsection (a) of section 12-407 2246
	2922	+	of the general statutes are repealed and the following is substituted in 2247
	2923	+	lieu thereof (Effective January 1, 2020, and applicable to sales occurring on 2248
	2924	+	or after January 1, 2020): 2249
	2925	+	(18) "Operator" means any person operating a hotel, lodging house, 2250
	2926	+	[or] bed and breakfast establishment or campground in the state, 2251
	2927	+	including, but not limited to, the owner or proprietor of such premises, 2252
	2928	+	lessee, sublessee, mortgagee in possession, licensee or any other person 2253
	2929	+	otherwise operating such hotel, lodging house, [or] bed and breakfast 2254
	2930	+	establishment or campground. 2255
	2931	+	(19) "Occupancy" means the use or possession, or the right to the 2256
	2932	+	use or possession, of any room or rooms in a hotel, lodging house or 2257
	2933	+	bed and breakfast establishment or of any space in a campground, or 2258
	2934	+	the right to the use or possession of the furnishings or the services and 2259
	2935	+	accommodations accompanying the use and possession of such room 2260
	2936	+	or rooms or such space, for the first period of not more than thirty 2261
	2937	+	consecutive calendar days. 2262
	2938	+	Sec. 30. Subdivision (120) of section 12-412 of the general statutes is 2263
	2939	+	repealed and the following is substituted in lieu thereof (Effective 2264
	2940	+	January 1, 2020, and applicable to sales occurring on or after January 1, 2265
	2941	+	2020): 2266
	2942	+	(120) [On and after April 1, 2015, sales of the following 2267
	2943	+	nonprescription drugs or medicines available for purchase for use in or 2268
	2944	+	on the body: Vitamin or mineral concentrates; dietary supplements; 2269
	2945	+	Governor's Bill No. 877
	2946	+
	2947	+
	2948	+
	2949	+	LCO No. 4566 79 of 138
	2950	+
	2951	+	natural or herbal drugs or medicines; products intended to be taken for 2270
	2952	+	coughs, cold, asthma or allergies, or antihistamines; laxatives; 2271
	2953	+	antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral 2272
	2954	+	and antifungal medicines; antiseptics; astringents; anesthetics; 2273
	2955	+	steroidal medicines; anthelmintics; emetics and antiemetics; antacids; 2274
	2956	+	and any medication prepared to be used in the eyes, ears or nose. 2275
	2957	+	Nonprescription drugs or medicines shall not include cosmetics, 2276
	2958	+	dentrifrices, mouthwash, shaving and hair care products, soaps or 2277
	2959	+	deodorants.] Sales of marijuana sold pursuant to chapter 420f by a 2278
	2960	+	licensed dispensary for palliative use. 2279
	2961	+	Sec. 31. Subdivision (123) of section 12-412 of the general statutes is 2280
	2962	+	repealed and the following is substituted in lieu thereof (Effective 2281
	2963	+	January 1, 2020, and applicable to sales occurring on or after January 1, 2282
	2964	+	2020): 2283
	2965	+	(123) Sales of disposable or reusable diapers, but not including 2284
	2966	+	diaper cleaning services. 2285
	2967	+	Sec. 32. Section 12-412 of the general statutes is amended by adding 2286
	2968	+	subdivision (124) as follows (Effective January 1, 2020, and applicable to 2287
	2969	+	sales occurring on or after January 1, 2020): 2288
	2970	+	(NEW) (124) (A) Sales of services set forth in subparagraphs (QQ) to 2289
	2971	+	(XX), inclusive, and subparagraph (AAA) of subdivision (37) of 2290
	2972	+	subsection (a) of section 12-407, as amended by this act, that are 2291
	2973	+	purchased by a business for use by such business. 2292
	2974	+	(B) Each purchaser of services exempt pursuant to the provisions of 2293
	2975	+	this subdivision shall present, in order to qualify for such exemption, a 2294
	2976	+	certificate to the retailer, in such form as the commissioner may 2295
	2977	+	prescribe, certifying that the purchaser is a business and is purchasing 2296
	2978	+	such services for its business. The purchaser of the services shall be 2297
	2979	+	liable for the tax otherwise imposed if the certificate is improperly 2298
	2980	+	provided to the retailer, and any person who wilfully delivers a 2299
	2981	+	certificate that is known to be fraudulent or false in any material 2300
	2982	+	Governor's Bill No. 877
	2983	+
	2984	+
	2985	+
	2986	+	LCO No. 4566 80 of 138
	2987	+
	2988	+	matter to a retailer shall, in addition to any other penalty provided by 2301
	2989	+	law, be guilty of a class D felony. 2302
	2990	+	Sec. 33. Subdivision (4) of section 12-430 of the general statutes is 2303
	2991	+	repealed and the following is substituted in lieu thereof (Effective July 2304
	2992	+	1, 2019, and applicable to sales occurring on or after July 1, 2019): 2305
	2993	+	(4) [Where] For sales occurring prior to July 1, 2019, where a trade-2306
	2994	+	in of a motor vehicle is received by a motor vehicle dealer, upon the 2307
	2995	+	sale of another motor vehicle to a consumer, or where a trade-in of an 2308
	2996	+	aircraft, as defined in subdivision (5) of section 15-34, is received by an 2309
	2997	+	aircraft dealer, upon the sale of another aircraft to a consumer, or 2310
	2998	+	where a trade-in of a farm tractor, snowmobile or any vessel, as 2311
	2999	+	defined in section 15-127, is received by a retailer of farm tractors, 2312
	3000	+	snowmobiles or such vessels upon the sale of another farm tractor, 2313
	3001	+	snowmobile or such vessel to a consumer, the tax is only on the 2314
	3002	+	difference between the sale price of the motor vehicle, aircraft, 2315
	3003	+	snowmobile, farm tractor or such vessel purchased and the amount 2316
	3004	+	allowed on the motor vehicle, aircraft, snowmobile, farm tractor or 2317
	3005	+	such vessel traded in on such purchase. When any such motor vehicle, 2318
	3006	+	aircraft, snowmobile, farm tractor or such vessel traded in is 2319
	3007	+	subsequently sold to a consumer or user, the tax provided for in this 2320
	3008	+	chapter applies. 2321
	3009	+	Sec. 34. Section 4-66o of the general statutes is repealed and the 2322
	3010	+	following is substituted in lieu thereof (Effective July 1, 2019): 2323
	3011	+	The Secretary of the Office of Policy and Management may establish 2324
	3012	+	receivables for the revenue anticipated pursuant to [subparagraph (K) 2325
	3013	+	of subdivision (1) of section 12-408 and] section 4-66l. 2326
	3014	+	Sec. 35. Section 12-263p of the general statutes is repealed and the 2327
	3015	+	following is substituted in lieu thereof (Effective from passage): 2328
	3016	+	As used in sections 12-263p to 12-263x, inclusive, unless the context 2329
	3017	+	otherwise requires: 2330
	3018	+	Governor's Bill No. 877
	3019	+
	3020	+
	3021	+
	3022	+	LCO No. 4566 81 of 138
	3023	+
	3024	+	(1) "Commissioner" means the Commissioner of Revenue Services; 2331
	3025	+	(2) "Department" means the Department of Revenue Services; 2332
	3026	+	(3) "Taxpayer" means any health care provider subject to any tax or 2333
	3027	+	fee under section 12-263q, as amended by this act, or 12-263r, as 2334
	3028	+	amended by this act; 2335
	3029	+	(4) "Health care provider" means an individual or entity that 2336
	3030	+	receives any payment or payments for health care items or services 2337
	3031	+	provided; 2338
	3032	+	(5) "Gross receipts" means the amount received, whether in cash or 2339
	3033	+	in kind, from patients, third-party payers and others for taxable health 2340
	3034	+	care items or services provided by the taxpayer in the state, including 2341
	3035	+	retroactive adjustments under reimbursement agreements with third-2342
	3036	+	party payers, without any deduction for any expenses of any kind; 2343
	3037	+	(6) "Net revenue" means gross receipts less payer discounts, charity 2344
	3038	+	care and bad debts, to the extent the taxpayer previously paid tax 2345
	3039	+	under section 12-263q, as amended by this act, on the amount of such 2346
	3040	+	bad debts; 2347
	3041	+	(7) "Payer discounts" means the difference between a health care 2348
	3042	+	provider's published charges and the payments received by the health 2349
	3043	+	care provider from one or more health care payers for a rate or method 2350
	3044	+	of payment that is different than or discounted from such published 2351
	3045	+	charges. "Payer discounts" does not include charity care or bad debts; 2352
	3046	+	(8) "Charity care" means free or discounted health care services 2353
	3047	+	rendered by a health care provider to an individual who cannot afford 2354
	3048	+	to pay for such services, including, but not limited to, health care 2355
	3049	+	services provided to an uninsured patient who is not expected to pay 2356
	3050	+	all or part of a health care provider's bill based on income guidelines 2357
	3051	+	and other financial criteria set forth in the general statutes or in a 2358
	3052	+	health care provider's charity care policies on file at the office of such 2359
	3053	+	Governor's Bill No. 877
	3054	+
	3055	+
	3056	+
	3057	+	LCO No. 4566 82 of 138
	3058	+
	3059	+	provider. "Charity care" does not include bad debts or payer discounts; 2360
	3060	+	(9) "Received" means "received" or "accrued", construed according 2361
	3061	+	to the method of accounting customarily employed by the taxpayer; 2362
	3062	+	(10) "Hospital" means any health care facility, as defined in section 2363
	3063	+	19a-630, that (A) is licensed by the Department of Public Health as a 2364
	3064	+	short-term general hospital; (B) is maintained primarily for the care 2365
	3065	+	and treatment of patients with disorders other than mental diseases; 2366
	3066	+	(C) meets the requirements for participation in Medicare as a hospital; 2367
	3067	+	and (D) has in effect a utilization review plan, applicable to all 2368
	3068	+	Medicaid patients, that meets the requirements of 42 CFR 482.30, as 2369
	3069	+	amended from time to time, unless a waiver has been granted by the 2370
	3070	+	Secretary of the United States Department of Health and Human 2371
	3071	+	Services; 2372
	3072	+	(11) "Inpatient hospital services" means, in accordance with federal 2373
	3073	+	law, all services that are (A) ordinarily furnished in a hospital for the 2374
	3074	+	care and treatment of inpatients; (B) furnished under the direction of a 2375
	3075	+	physician or dentist; and (C) furnished in a hospital. "Inpatient 2376
	3076	+	hospital services" does not include skilled nursing facility services and 2377
	3077	+	intermediate care facility services furnished by a hospital with swing 2378
	3078	+	bed approval; 2379
	3079	+	(12) "Inpatient" means a patient who has been admitted to a medical 2380
	3080	+	institution as an inpatient on the recommendation of a physician or 2381
	3081	+	dentist and who (A) receives room, board and professional services in 2382
	3082	+	the institution for a twenty-four-hour period or longer, or (B) is 2383
	3083	+	expected by the institution to receive room, board and professional 2384
	3084	+	services in the institution for a twenty-four-hour period or longer, even 2385
	3085	+	if the patient does not actually stay in the institution for a twenty-four-2386
	3086	+	hour period or longer; 2387
	3087	+	(13) "Outpatient hospital services" means, in accordance with 2388
	3088	+	federal law, preventive, diagnostic, therapeutic, rehabilitative or 2389
	3089	+	palliative services that are (A) furnished to an outpatient; (B) furnished 2390
	3090	+	Governor's Bill No. 877
	3091	+
	3092	+
	3093	+
	3094	+	LCO No. 4566 83 of 138
	3095	+
	3096	+	by or under the direction of a physician or dentist; and (C) furnished 2391
	3097	+	by a hospital; 2392
	3098	+	(14) "Outpatient" means a patient of an organized medical facility or 2393
	3099	+	a distinct part of such facility, who is expected by the facility to receive, 2394
	3100	+	and who does receive, professional services for less than a twenty-2395
	3101	+	four-hour period regardless of the hour of admission, whether or not a 2396
	3102	+	bed is used or the patient remains in the facility past midnight; 2397
	3103	+	(15) "Nursing home" means any licensed chronic and convalescent 2398
	3104	+	nursing home or a rest home with nursing supervision; 2399
	3105	+	(16) "Intermediate care facility for individuals with intellectual 2400
	3106	+	disabilities" or "intermediate care facility" means a residential facility 2401
	3107	+	for persons with intellectual disability that is certified to meet the 2402
	3108	+	requirements of 42 CFR 442, Subpart C, as amended from time to time, 2403
	3109	+	and, in the case of a private facility, licensed pursuant to section 17a-2404
	3110	+	227; 2405
	3111	+	(17) "Medicare day" means a day of nursing home care service 2406
	3112	+	provided to an individual who is eligible for payment, in full or with a 2407
	3113	+	coinsurance requirement, under the federal Medicare program, 2408
	3114	+	including fee for service and managed care coverage; 2409
	3115	+	(18) "Nursing home resident day" means a day of nursing home care 2410
	3116	+	service provided to an individual and includes the day a resident is 2411
	3117	+	admitted and any day for which the nursing home is eligible for 2412
	3118	+	payment for reserving a resident's bed due to hospitalization or 2413
	3119	+	temporary leave and for the date of death. For purposes of this 2414
	3120	+	subdivision, a day of nursing home care service shall be the period of 2415
	3121	+	time between the census-taking hour in a nursing home on two 2416
	3122	+	successive calendar days. "Nursing home resident day" does not 2417
	3123	+	include a Medicare day or the day a resident is discharged; 2418
	3124	+	(19) "Intermediate care facility resident day" means a day of 2419
	3125	+	intermediate care facility residential care provided to an individual 2420
	3126	+	Governor's Bill No. 877
	3127	+
	3128	+
	3129	+
	3130	+	LCO No. 4566 84 of 138
	3131	+
	3132	+	and includes the day a resident is admitted and any day for which the 2421
	3133	+	intermediate care facility is eligible for payment for reserving a 2422
	3134	+	resident's bed due to hospitalization or temporary leave and for the 2423
	3135	+	date of death. For purposes of this subdivision, a day of intermediate 2424
	3136	+	care facility residential care shall be the period of time between the 2425
	3137	+	census-taking hour in a facility on two successive calendar days. 2426
	3138	+	"Intermediate care facility resident day" does not include the day a 2427
	3139	+	resident is discharged; 2428
	3140	+	(20) "Ambulatory surgical center" means any distinct entity that (A) 2429
	3141	+	operates exclusively for the purpose of providing surgical services to 2430
	3142	+	patients not requiring hospitalization and in which the expected 2431
	3143	+	duration of services would not exceed twenty-four hours following an 2432
	3144	+	admission, (B) has an agreement with the Centers for Medicare and 2433
	3145	+	Medicaid Services to participate in Medicare as an ambulatory surgical 2434
	3146	+	center, and (C) meets the general and specific conditions for 2435
	3147	+	participation in Medicare set forth in 42 CFR Part 416, Subparts B and 2436
	3148	+	C, as amended from time to time; 2437
	3149	+	(21) "Ambulatory surgical center services" means, in accordance 2438
	3150	+	with 42 CFR 433.56(a)(9), as amended from time to time, services for 2439
	3151	+	which payment is received from any payer that, if such services were 2440
	3152	+	furnished under the federal Medicare program (A) would be furnished 2441
	3153	+	in connection with covered surgical procedures performed in an 2442
	3154	+	ambulatory surgical center as provided in 42 CFR 416.164(a), as 2443
	3155	+	amended from time to time, and (B) for which payment would be 2444
	3156	+	included in the ambulatory surgical center payment established under 2445
	3157	+	42 CFR 416.171, as amended from time to time, for the covered surgical 2446
	3158	+	procedure. "Ambulatory surgical center services" includes facility 2447
	3159	+	services only and does not include surgical procedures, physicians' 2448
	3160	+	services, anesthetists' services, radiology services, diagnostic services 2449
	3161	+	or ambulance services, if such procedures or services would be 2450
	3162	+	reimbursed separately from facility services under 42 CFR 416.164(a), 2451
	3163	+	as amended from time to time; 2452
	3164	+	Governor's Bill No. 877
	3165	+
	3166	+
	3167	+
	3168	+	LCO No. 4566 85 of 138
	3169	+
	3170	+	[(20)] (22) "Medicaid" means the program operated by the 2453
	3171	+	Department of Social Services pursuant to section 17b-260 and 2454
	3172	+	authorized by Title XIX of the Social Security Act, as amended from 2455
	3173	+	time to time; and 2456
	3174	+	[(21)] (23) "Medicare" means the program operated by the Centers 2457
	3175	+	for Medicare and Medicaid Services in accordance with Title XVIII of 2458
	3176	+	the Social Security Act, as amended from time to time. 2459
	3177	+	Sec. 36. Section 12-263q of the general statutes is repealed and the 2460
	3178	+	following is substituted in lieu thereof (Effective from passage): 2461
	3179	+	(a) (1) For each calendar quarter commencing on or after July 1, 2462
	3180	+	2017, each hospital shall pay a tax on the total net revenue received by 2463
	3181	+	such hospital for the provision of inpatient hospital services and 2464
	3182	+	outpatient hospital services. 2465
	3183	+	(A) On and after July 1, 2017, [and prior to July 1, 2019,] the rate of 2466
	3184	+	tax for the provision of inpatient hospital services shall be six per cent 2467
	3185	+	of each hospital's audited net revenue for the fiscal year, [2016] as set 2468
	3186	+	forth in subparagraph (C) of this subdivision, attributable to inpatient 2469
	3187	+	hospital services. 2470
	3188	+	(B) On and after July 1, 2017, [and prior to July 1, 2019,] the rate of 2471
	3189	+	tax for the provision of outpatient hospital services shall be nine 2472
	3190	+	hundred million dollars less the total tax imposed on all hospitals for 2473
	3191	+	the provision of inpatient hospital services, which sum shall be 2474
	3192	+	divided by the total audited net revenue for the fiscal year, [2016] as 2475
	3193	+	set forth in subparagraph (C) of this subdivision, attributable to 2476
	3194	+	outpatient hospital services, of all hospitals that are required to pay 2477
	3195	+	such tax. 2478
	3196	+	(C) [On and after July 1, 2019, the rate of tax for the provision of 2479
	3197	+	inpatient hospital services and outpatient hospital services shall be 2480
	3198	+	three hundred eighty-four million dollars divided by the total audited 2481
	3199	+	net revenue for fiscal year 2016, of all hospitals that are required to pay 2482
	3200	+	Governor's Bill No. 877
	3201	+
	3202	+
	3203	+
	3204	+	LCO No. 4566 86 of 138
	3205	+
	3206	+	such tax.] For the state fiscal years commencing July 1, 2017, and July 2483
	3207	+	1, 2018, the fiscal year upon which the tax shall be imposed under 2484
	3208	+	subparagraphs (A) and (B) of this subdivision shall be fiscal year 2016. 2485
	3209	+	For the biennium commencing July 1, 2019, and for each biennium 2486
	3210	+	thereafter, the fiscal year upon which the tax shall be imposed under 2487
	3211	+	subparagraphs (A) and (B) of this subdivision for each year of the 2488
	3212	+	biennium shall be the fiscal year occurring three years prior to the first 2489
	3213	+	state fiscal year of each biennium. 2490
	3214	+	(D) If a hospital or hospitals subject to the tax imposed under this 2491
	3215	+	subdivision merge, consolidate or otherwise reorganize, the surviving 2492
	3216	+	hospital shall assume and be liable for the total tax imposed under this 2493
	3217	+	subdivision on the merging, consolidating or reorganizing hospitals, 2494
	3218	+	including any outstanding liabilities from periods prior to such 2495
	3219	+	merger, consolidation or reorganization. If a hospital ceases to operate 2496
	3220	+	as a hospital for any reason other than a merger, consolidation or 2497
	3221	+	reorganization, or ceases for any reason to be subject to the tax 2498
	3222	+	imposed under this subdivision, the amount of tax due from each 2499
	3223	+	taxpayer under this subdivision shall not be recalculated to take into 2500
	3224	+	account such occurrence but the total amount of such tax to be 2501
	3225	+	collected under subparagraphs (A) and (B) of this subdivision shall be 2502
	3226	+	reduced by the amount of the tax liability imposed on the hospital that 2503
	3227	+	is no longer subject to the tax. 2504
	3228	+	(E) (i) If the Commissioner of Social Services determines for any 2505
	3229	+	fiscal year that the effective rate of tax for the tax imposed on net 2506
	3230	+	revenue for the provision of inpatient hospital services exceeds the rate 2507
	3231	+	permitted under the provisions of 42 CFR 433.68(f), as amended from 2508
	3232	+	time to time, the amount of tax collected that exceeds the permissible 2509
	3233	+	amount shall be refunded to hospitals, in proportion to the amount of 2510
	3234	+	net revenue for the provision of inpatient hospital services upon which 2511
	3235	+	the hospitals were taxed. The effective rate of tax shall be calculated by 2512
	3236	+	comparing the amount of tax paid by hospitals on net revenue for the 2513
	3237	+	provision of inpatient hospital services in a state fiscal year with the 2514
	3238	+	amount of net revenue received by hospitals subject to the tax for the 2515
	3239	+	Governor's Bill No. 877
	3240	+
	3241	+
	3242	+
	3243	+	LCO No. 4566 87 of 138
	3244	+
	3245	+	provision of inpatient hospital services for the equivalent fiscal year. 2516
	3246	+	(ii) On or before July 1, 2020, and annually thereafter, each hospital 2517
	3247	+	subject to the tax imposed under this subdivision shall report to the 2518
	3248	+	Commissioner of Social Services, in the manner prescribed by and on 2519
	3249	+	forms provided by said commissioner, the amount of tax paid 2520
	3250	+	pursuant to this subsection by such hospital and the amount of net 2521
	3251	+	revenue received by such hospital for the provision of inpatient 2522
	3252	+	hospital services, in the state fiscal year commencing two years prior to 2523
	3253	+	each such reporting date. Not later than ninety days after said 2524
	3254	+	commissioner receives completed reports from all hospitals required to 2525
	3255	+	submit such reports, said commissioner shall notify the Commissioner 2526
	3256	+	of Revenue Services of the amount of any refund due each hospital to 2527
	3257	+	be in compliance with 42 CFR 433.68(f), as amended from time to time. 2528
	3258	+	Not later than thirty days after receiving such notice, the 2529
	3259	+	Commissioner of Revenue Services shall notify the Comptroller of the 2530
	3260	+	amount of each such refund and the Comptroller shall draw an order 2531
	3261	+	on the Treasurer for payment of each such refund. No interest shall be 2532
	3262	+	added to any refund issued pursuant to this subparagraph. 2533
	3263	+	(2) Except as provided in subdivision (3) of this subsection, each 2534
	3264	+	[such] hospital subject to the tax imposed under subdivision (1) of this 2535
	3265	+	subsection shall be required to pay the total amount due in four 2536
	3266	+	quarterly payments consistent with section 12-263s, with the first 2537
	3267	+	quarter commencing with the first day of each state fiscal year and the 2538
	3268	+	last quarter ending on the last day of each state fiscal year. Hospitals 2539
	3269	+	shall make all payments required under this subsection in accordance 2540
	3270	+	with procedures established by and on forms provided by the 2541
	3271	+	commissioner. 2542
	3272	+	(3) (A) For the state fiscal year commencing July 1, 2017, each 2543
	3273	+	hospital required to pay tax on inpatient hospital services or outpatient 2544
	3274	+	hospital services shall make an estimated tax payment on December 2545
	3275	+	15, 2017, which estimated payment shall be equal to one hundred 2546
	3276	+	thirty-three per cent of the tax due under chapter 211a for the period 2547
	3277	+	Governor's Bill No. 877
	3278	+
	3279	+
	3280	+
	3281	+	LCO No. 4566 88 of 138
	3282	+
	3283	+	ending June 30, 2017. If a hospital was not required to pay tax under 2548
	3284	+	[said] chapter 211a on either inpatient hospital services or outpatient 2549
	3285	+	hospital services, such hospital shall make its estimated payment 2550
	3286	+	based on its unaudited net patient revenue. 2551
	3287	+	(B) Each hospital required to pay tax pursuant to this subdivision on 2552
	3288	+	inpatient hospital services or outpatient hospital services shall pay the 2553
	3289	+	remaining balance determined to be due in two equal payments, which 2554
	3290	+	shall be due on April 30, 2018, and July 31, 2018, respectively. 2555
	3291	+	(C) (i) For each state fiscal year commencing on or after July 1, 2017, 2556
	3292	+	and prior to July 1, 2019, each hospital required to pay tax on inpatient 2557
	3293	+	hospital services or outpatient hospital services shall calculate the 2558
	3294	+	amount of tax due on forms prescribed by the commissioner by 2559
	3295	+	multiplying the applicable rate set forth in subdivision (1) of this 2560
	3296	+	subsection by its audited net revenue for fiscal year 2016. [Hospitals 2561
	3297	+	shall make all payments required under this section in accordance with 2562
	3298	+	procedures established by and on forms provided by the 2563
	3299	+	commissioner.] 2564
	3300	+	(ii) For each state fiscal year commencing on or after July 1, 2019, 2565
	3301	+	each hospital required to pay tax on inpatient hospital services or 2566
	3302	+	outpatient hospital services shall calculate the amount of tax due on 2567
	3303	+	forms prescribed by the commissioner by multiplying the applicable 2568
	3304	+	rate set forth in subdivision (1) of this subsection by its audited net 2569
	3305	+	revenue for the fiscal year, as set forth in subparagraph (C) of 2570
	3306	+	subdivision (1) of this subsection. 2571
	3307	+	(D) The commissioner shall apply any payment made by a hospital 2572
	3308	+	in connection with the tax under chapter 211a for the period ending 2573
	3309	+	September 30, 2017, as a partial payment of such hospital's estimated 2574
	3310	+	tax payment due on December 15, 2017, under subparagraph (A) of 2575
	3311	+	this subdivision. The commissioner shall return to a hospital any credit 2576
	3312	+	claimed by such hospital in connection with the tax imposed under 2577
	3313	+	[said] chapter 211a for the period ending September 30, 2017, for 2578
	3314	+	Governor's Bill No. 877
	3315	+
	3316	+
	3317	+
	3318	+	LCO No. 4566 89 of 138
	3319	+
	3320	+	assignment as provided under section 12-263s. 2579
	3321	+	(4) (A) [Each] (i) For each state fiscal year commencing on or after 2580
	3322	+	July 1, 2017, and prior to July 1, 2019, each hospital required to pay tax 2581
	3323	+	on inpatient hospital services or outpatient hospital services shall 2582
	3324	+	submit to the commissioner such information as the commissioner 2583
	3325	+	requires in order to calculate the audited net inpatient revenue for 2584
	3326	+	fiscal year 2016, the audited net outpatient revenue for fiscal year 2016 2585
	3327	+	and the audited net revenue for fiscal year 2016 of all such health care 2586
	3328	+	providers. Such information shall be provided to the commissioner not 2587
	3329	+	later than January 1, 2018. The commissioner shall make additional 2588
	3330	+	requests for information as necessary to fully audit each hospital's net 2589
	3331	+	revenue. Upon completion of the commissioner's examination, the 2590
	3332	+	commissioner shall notify, prior to February 28, 2018, each hospital of 2591
	3333	+	its audited net inpatient revenue for fiscal year 2016, audited net 2592
	3334	+	outpatient revenue for fiscal year 2016 and audited net revenue for 2593
	3335	+	fiscal year 2016. 2594
	3336	+	(ii) For each state fiscal year commencing on or after July 1, 2019, 2595
	3337	+	each hospital required to pay tax on inpatient hospital services or 2596
	3338	+	outpatient hospital services shall submit to the commissioner 2597
	3339	+	biennially such information as the commissioner requires in order to 2598
	3340	+	calculate for the applicable fiscal year, as set forth in subparagraph (C) 2599
	3341	+	of subdivision (1) of this subsection, the audited net inpatient revenue, 2600
	3342	+	the audited net outpatient revenue and the audited net revenue of all 2601
	3343	+	such health care providers. For the state fiscal year commencing July 1, 2602
	3344	+	2019, such information shall be provided to the commissioner not later 2603
	3345	+	than June 30, 2019. For the biennium commencing July 1, 2021, and 2604
	3346	+	each biennium thereafter, such information shall be provided to the 2605
	3347	+	commissioner not later than January fifteenth of the second year of the 2606
	3348	+	biennium immediately preceding. The commissioner shall make 2607
	3349	+	additional requests for information as necessary to fully audit each 2608
	3350	+	hospital's net revenue. Upon completion of the commissioner's 2609
	3351	+	examination, the commissioner shall notify each hospital of its audited 2610
	3352	+	net inpatient revenue, audited net outpatient revenue and audited net 2611
	3353	+	Governor's Bill No. 877
	3354	+
	3355	+
	3356	+
	3357	+	LCO No. 4566 90 of 138
	3358	+
	3359	+	revenue for the applicable fiscal year, as set forth in subparagraph (C) 2612
	3360	+	of subdivision (1) of this subsection. 2613
	3361	+	(B) Any hospital that fails to provide the requested information 2614
	3362	+	[prior to January 1, 2018,] by the dates specified in subparagraph (A) of 2615
	3363	+	this subdivision or fails to comply with a request for additional 2616
	3364	+	information made under this subdivision shall be subject to a penalty 2617
	3365	+	of one thousand dollars per day for each day the hospital fails to 2618
	3366	+	provide the requested information or additional information. 2619
	3367	+	(C) The commissioner may engage an independent auditor to assist 2620
	3368	+	in the performance of the commissioner's duties and responsibilities 2621
	3369	+	under this subdivision. 2622
	3370	+	[(5) Net revenue derived from providing a health care item or 2623
	3371	+	service to a patient shall be taxed only one time under this section.] 2624
	3372	+	[(6)] (5) (A) For purposes of this [section] subsection: 2625
	3373	+	(i) ["Audited net inpatient revenue for fiscal year 2016"] "Audited 2626
	3374	+	net inpatient revenue for the fiscal year" means the amount of revenue 2627
	3375	+	that the commissioner determines, in accordance with federal law, that 2628
	3376	+	a hospital received for the provision of inpatient hospital services 2629
	3377	+	during the [2016] applicable federal fiscal year; 2630
	3378	+	(ii) ["Audited net outpatient revenue for fiscal year 2016"] "Audited 2631
	3379	+	net outpatient revenue for the fiscal year" means the amount of 2632
	3380	+	revenue that the commissioner determines, in accordance with federal 2633
	3381	+	law, that a hospital received for the provision of outpatient hospital 2634
	3382	+	services during the [2016] applicable federal fiscal year; and 2635
	3383	+	(iii) ["Audited net revenue for fiscal year 2016"] "Audited net 2636
	3384	+	revenue for the fiscal year" means net revenue, as reported in each 2637
	3385	+	hospital's audited financial statement, less the amount of revenue that 2638
	3386	+	the commissioner determines, in accordance with federal law, that a 2639
	3387	+	hospital received from other than the provision of inpatient hospital 2640
	3388	+	Governor's Bill No. 877
	3389	+
	3390	+
	3391	+
	3392	+	LCO No. 4566 91 of 138
	3393	+
	3394	+	services and outpatient hospital services. The total audited net revenue 2641
	3395	+	for the fiscal year [2016] shall be the sum of all audited net revenue for 2642
	3396	+	the applicable fiscal year [2016] for all hospitals required to pay tax on 2643
	3397	+	inpatient hospital services and outpatient hospital services. 2644
	3398	+	(B) Audited net inpatient revenue and audited net outpatient 2645
	3399	+	revenue shall be based on information provided by each hospital 2646
	3400	+	required to pay tax on inpatient hospital services or outpatient hospital 2647
	3401	+	services. 2648
	3402	+	[(b) (1)] (6) (A) The Commissioner of Social Services shall seek 2649
	3403	+	approval from the Centers for Medicare and Medicaid Services to 2650
	3404	+	exempt from the net revenue tax imposed under [subsection (a) of this 2651
	3405	+	section] this subsection the following: [(A)] (i) Specialty hospitals; [(B)] 2652
	3406	+	(ii) children's general hospitals; and [(C)] (iii) hospitals operated 2653
	3407	+	exclusively by the state other than a short-term acute hospital operated 2654
	3408	+	by the state as a receiver pursuant to chapter 920. Any hospital for 2655
	3409	+	which the Centers for Medicare and Medicaid Services grants an 2656
	3410	+	exemption shall be exempt from the net revenue tax imposed under 2657
	3411	+	[subsection (a) of this section] this subsection. Any hospital for which 2658
	3412	+	the Centers for Medicare and Medicaid Services denies an exemption 2659
	3413	+	shall be deemed to be a hospital for purposes of this [section] 2660
	3414	+	subsection and shall be required to pay the net revenue tax imposed 2661
	3415	+	under [subsection (a) of this section] this subsection on inpatient 2662
	3416	+	hospital services and outpatient hospital services. 2663
	3417	+	[(2)] (B) Each hospital shall provide to the Commissioner of Social 2664
	3418	+	Services, upon request, such information as said commissioner may 2665
	3419	+	require to make any computations necessary to seek approval for 2666
	3420	+	exemption under this [subsection] subdivision. 2667
	3421	+	[(3)] (C) As used in this [subsection] subdivision, [(A)] (i) "specialty 2668
	3422	+	hospital" means a health care facility, as defined in section 19a-630, 2669
	3423	+	other than a facility licensed by the Department of Public Health as a 2670
	3424	+	short-term general hospital or a short-term children's hospital. 2671
	3425	+	Governor's Bill No. 877
	3426	+
	3427	+
	3428	+
	3429	+	LCO No. 4566 92 of 138
	3430	+
	3431	+	"Specialty hospital" includes, but is not limited to, a psychiatric 2672
	3432	+	hospital or a chronic disease hospital, and [(B)] (ii) "children's general 2673
	3433	+	hospital" means a health care facility, as defined in section 19a-630, 2674
	3434	+	that is licensed by the Department of Public Health as a short-term 2675
	3435	+	children's hospital. "Children's general hospital" does not include a 2676
	3436	+	specialty hospital. 2677
	3437	+	[(c)] (7) Prior to [January 1, 2018] July 1, 2019, and every three years 2678
	3438	+	thereafter, the Commissioner of Social Services shall seek approval 2679
	3439	+	from the Centers for Medicare and Medicaid Services to exempt 2680
	3440	+	financially distressed hospitals from the net revenue tax imposed on 2681
	3441	+	outpatient hospital services. Any such hospital for which the Centers 2682
	3442	+	for Medicare and Medicaid Services grants an exemption shall be 2683
	3443	+	exempt from the net revenue tax imposed on outpatient hospital 2684
	3444	+	services under [subsection (a) of this section] this subsection. Any 2685
	3445	+	hospital for which the Centers for Medicare and Medicaid Services 2686
	3446	+	denies an exemption shall be required to pay the net revenue tax 2687
	3447	+	imposed on outpatient hospital services under [subsection (a) of this 2688
	3448	+	section] this subsection. For purposes of this [subsection] subdivision, 2689
	3449	+	"financially distressed hospital" means a hospital that has experienced 2690
	3450	+	over a five-year period an average net loss of more than five per cent of 2691
	3451	+	aggregate revenue. A hospital has an average net loss of more than five 2692
	3452	+	per cent of aggregate revenue if such a loss is reflected in the five most 2693
	3453	+	recent years of financial reporting that have been made available by 2694
	3454	+	the Health Systems Planning Unit of the Office of Health Strategy for 2695
	3455	+	such hospital in accordance with section 19a-670 as of the effective date 2696
	3456	+	of the request for approval which effective date shall be July first of the 2697
	3457	+	year in which the request is made. 2698
	3458	+	[(d)] (8) The commissioner shall issue guidance regarding the 2699
	3459	+	administration of the tax on inpatient hospital services and outpatient 2700
	3460	+	hospital services. Such guidance shall be issued upon completion of a 2701
	3461	+	study of the applicable federal law governing the administration of tax 2702
	3462	+	on inpatient hospital services and outpatient hospital services. The 2703
	3463	+	commissioner shall conduct such study in collaboration with the 2704
	3464	+	Governor's Bill No. 877
	3465	+
	3466	+
	3467	+
	3468	+	LCO No. 4566 93 of 138
	3469	+
	3470	+	Commissioner of Social Services, the Secretary of the Office of Policy 2705
	3471	+	and Management, the Connecticut Hospital Association and the 2706
	3472	+	hospitals subject to the tax imposed on inpatient hospital services and 2707
	3473	+	outpatient hospital services. 2708
	3474	+	[(e) (1)] (9) (A) The commissioner shall determine, in consultation 2709
	3475	+	with the Commissioner of Social Services, the Secretary of the Office of 2710
	3476	+	Policy and Management, the Connecticut Hospital Association and the 2711
	3477	+	hospitals subject to the tax imposed on inpatient hospital services and 2712
	3478	+	outpatient hospital services, if there is any underreporting of revenue 2713
	3479	+	on hospitals' audited financial statements. Such consultation shall only 2714
	3480	+	be as authorized under section 12-15. The commissioner shall issue 2715
	3481	+	guidance, if necessary, to address any such underreporting. 2716
	3482	+	[(2)] (B) If the commissioner determines, in accordance with this 2717
	3483	+	[subsection] subdivision, that a hospital underreported net revenue on 2718
	3484	+	its audited financial statement, the amount of underreported net 2719
	3485	+	revenue shall be added to the amount of net revenue reported on such 2720
	3486	+	hospital's audited financial statement so as to comply with federal law 2721
	3487	+	and the revised net revenue amount shall be used for purposes of 2722
	3488	+	calculating the amount of tax owed by such hospital under this 2723
	3489	+	[section] subsection. For purposes of this [subsection] subdivision, 2724
	3490	+	"underreported net revenue" means any revenue of a hospital subject 2725
	3491	+	to the tax imposed under this section that is required to be included in 2726
	3492	+	net revenue from the provision of inpatient hospital services and net 2727
	3493	+	revenue from the provision of outpatient hospital services to comply 2728
	3494	+	with 42 CFR 433.56, as amended from time to time, 42 CFR 433.68, as 2729
	3495	+	amended from time to time, and Section 1903(w) of the Social Security 2730
	3496	+	Act, as amended from time to time, but that was not reported on such 2731
	3497	+	hospital's audited financial statement. Underreported net revenue shall 2732
	3498	+	only include revenue of the hospital subject to such tax. 2733
	3499	+	(b) (1) For each calendar quarter commencing on or after July 1, 2734
	3500	+	2019, each ambulatory surgical center shall pay a tax on the total net 2735
	3501	+	revenue received by such ambulatory surgical center for the provision 2736
	3502	+	Governor's Bill No. 877
	3503	+
	3504	+
	3505	+
	3506	+	LCO No. 4566 94 of 138
	3507	+
	3508	+	of ambulatory surgical center services. The rate of tax on such net 2737
	3509	+	revenue received for the provision of such services shall be six per 2738
	3510	+	cent, except that such tax shall not be imposed on Medicaid payments 2739
	3511	+	or Medicare payments received by the ambulatory surgical center for 2740
	3512	+	the provision of ambulatory surgical center services. 2741
	3513	+	(2) Net revenue from each hospital-owned ambulatory surgical 2742
	3514	+	center shall be considered net revenue of the hospital and shall be 2743
	3515	+	reported as net revenue from inpatient hospital services or outpatient 2744
	3516	+	hospital services to the extent such net revenue is derived from 2745
	3517	+	services that fall within the scope of inpatient hospital services or 2746
	3518	+	outpatient hospital services. As used in this subdivision, "hospital-2747
	3519	+	owned ambulatory surgical center" includes only those ambulatory 2748
	3520	+	surgical centers that are considered departments of the owner-hospital 2749
	3521	+	and that have provider-based status in accordance with 42 CFR 413.65, 2750
	3522	+	as amended from time to time. If an ambulatory surgical center is 2751
	3523	+	owned by a hospital, but is not considered to be a department of the 2752
	3524	+	hospital or does not have provider-based status in accordance with 42 2753
	3525	+	CFR 413.65, as amended from time to time, the net revenue of such 2754
	3526	+	ambulatory surgical center shall not be considered net revenue of the 2755
	3527	+	owner-hospital, and such ambulatory surgical center shall be required 2756
	3528	+	to file and pay tax for any net revenue received from the provision of 2757
	3529	+	ambulatory surgical center services. 2758
	3530	+	(c) Net revenue derived from providing a health care item or service 2759
	3531	+	to a patient shall be taxed only one time under this section. 2760
	3532	+	[(f)] (d) Nothing in this section shall affect the commissioner's 2761
	3533	+	obligations under section 12-15 regarding disclosure and inspection of 2762
	3534	+	returns and return information. 2763
	3535	+	[(g)] (e) The provisions of section 17b-8 shall not apply to any 2764
	3536	+	exemption or exemptions sought by the [Department] Commissioner 2765
	3537	+	of Social Services from the Centers for Medicare and Medicaid Services 2766
	3538	+	under this section. 2767
	3539	+	Governor's Bill No. 877
	3540	+
	3541	+
	3542	+
	3543	+	LCO No. 4566 95 of 138
	3544	+
	3545	+	Sec. 37. Subsection (a) of section 12-263r of the general statutes is 2768
	3546	+	repealed and the following is substituted in lieu thereof (Effective from 2769
	3547	+	passage): 2770
	3548	+	(a) For each calendar quarter commencing on or after July 1, 2017, 2771
	3549	+	there is hereby imposed a quarterly fee on each nursing home and 2772
	3550	+	intermediate care facility in this state, which fee shall be the product of 2773
	3551	+	each facility's total resident days during the calendar quarter 2774
	3552	+	multiplied by the user fee. Except as otherwise provided in this 2775
	3553	+	section, (1) the user fee for nursing homes shall be twenty-one dollars 2776
	3554	+	and two cents, and (2) the user fee for intermediate care facilities shall 2777
	3555	+	be (A) twenty-seven dollars and twenty-six cents for calendar quarters 2778
	3556	+	commencing on or after July 1, 2017, and prior to July 1, 2019, and (B) 2779
	3557	+	twenty-seven dollars and seventy-six cents for calendar quarters 2780
	3558	+	commencing on or after July 1, 2019. As used in this subsection, 2781
	3559	+	"resident day" means nursing home resident day and intermediate care 2782
	3560	+	facility resident day, as applicable. 2783
	3561	+	Sec. 38. Section 12-263i of the general statutes is repealed and the 2784
	3562	+	following is substituted in lieu thereof (Effective from passage): 2785
	3563	+	(a) As used in this section: 2786
	3564	+	(1) "Ambulatory surgical center" means an entity included within 2787
	3565	+	the definition of said term that is set forth in 42 CFR 416.2 and that is 2788
	3566	+	licensed by the Department of Public Health as an outpatient surgical 2789
	3567	+	facility, and any other ambulatory surgical center that is Medicare 2790
	3568	+	certified; 2791
	3569	+	(2) "Commissioner" means the Commissioner of Revenue Services; 2792
	3570	+	and 2793
	3571	+	(3) "Department" means the Department of Revenue Services. 2794
	3572	+	(b) (1) For each calendar quarter commencing on or after October 1, 2795
	3573	+	2015, and prior to July 1, 2019, there is hereby imposed a tax on each 2796
	3574	+	Governor's Bill No. 877
	3575	+
	3576	+
	3577	+
	3578	+	LCO No. 4566 96 of 138
	3579	+
	3580	+	ambulatory surgical center in this state to be paid each calendar 2797
	3581	+	quarter. The tax imposed by this section shall be at the rate of six per 2798
	3582	+	cent of the gross receipts of each ambulatory surgical center, except 2799
	3583	+	that [: (A) Prior to July 1, 2019,] such tax shall not be imposed on any 2800
	3584	+	amount of such gross receipts that constitutes either [(i)] (A) the first 2801
	3585	+	million dollars of gross receipts of the ambulatory surgical center in 2802
	3586	+	the applicable fiscal year, or [(ii)] (B) net revenue of a hospital that is 2803
	3587	+	subject to the tax imposed under section 12-263q, as amended by this 2804
	3588	+	act. [; and 2805
	3589	+	(B) On and after July 1, 2019, such tax shall not be imposed on any 2806
	3590	+	amount of such gross receipts that constitutes any of the following: (i) 2807
	3591	+	The first million dollars of gross receipts of the ambulatory surgical 2808
	3592	+	center in the applicable fiscal year, excluding Medicaid and Medicare 2809
	3593	+	payments, (ii) net revenue of a hospital that is subject to the tax 2810
	3594	+	imposed under section 12-263q, (iii) Medicaid payments received by 2811
	3595	+	the ambulatory surgical center, and (iv) Medicare payments received 2812
	3596	+	by the ambulatory surgical center.] 2813
	3597	+	(2) Nothing in this section shall prohibit an ambulatory surgical 2814
	3598	+	center from seeking remuneration for the tax imposed by this section. 2815
	3599	+	(3) Each ambulatory surgical center shall, [on or before January 31, 2816
	3600	+	2016, and thereafter] on or before the last day of January, April, July 2817
	3601	+	and October of each year until and including July 30, 2019, render to 2818
	3602	+	the commissioner a return, on forms prescribed or furnished by the 2819
	3603	+	commissioner, reporting the name and location of such ambulatory 2820
	3604	+	surgical center, the entire amount of gross receipts generated by such 2821
	3605	+	ambulatory surgical center during the calendar quarter ending on the 2822
	3606	+	last day of the preceding month and such other information as the 2823
	3607	+	commissioner deems necessary for the proper administration of this 2824
	3608	+	section. The tax imposed under this section shall be due and payable 2825
	3609	+	on the due date of such return. Each ambulatory surgical center shall 2826
	3610	+	be required to file such return electronically with the department and 2827
	3611	+	to make payment of such tax by electronic funds transfer in the 2828
	3612	+	Governor's Bill No. 877
	3613	+
	3614	+
	3615	+
	3616	+	LCO No. 4566 97 of 138
	3617	+
	3618	+	manner provided by chapter 228g, regardless of whether such 2829
	3619	+	ambulatory surgical center would have otherwise been required to file 2830
	3620	+	such return electronically or to make such tax payment by electronic 2831
	3621	+	funds transfer under the provisions of chapter 228g. 2832
	3622	+	(c) Whenever the tax imposed under this section is not paid when 2833
	3623	+	due, a penalty of ten per cent of the amount due and unpaid or fifty 2834
	3624	+	dollars, whichever is greater, shall be imposed and interest at the rate 2835
	3625	+	of one per cent per month or fraction thereof shall accrue on such tax 2836
	3626	+	from the due date of such tax until the date of payment. 2837
	3627	+	(d) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 2838
	3628	+	12-555a shall apply to the provisions of this section in the same manner 2839
	3629	+	and with the same force and effect as if the language of said sections 2840
	3630	+	had been incorporated in full into this section and had expressly 2841
	3631	+	referred to the tax imposed under this section, except to the extent that 2842
	3632	+	any provision is inconsistent with a provision in this section. 2843
	3633	+	(e) For the fiscal year ending June 30, 2016, and each fiscal year 2844
	3634	+	[thereafter] ending prior to July 1, 2019, the Comptroller is authorized 2845
	3635	+	to record as revenue for each fiscal year the amount of tax imposed 2846
	3636	+	under the provisions of this section prior to the end of each fiscal year 2847
	3637	+	and which tax is received by the Commissioner of Revenue Services 2848
	3638	+	not later than five business days after the last day of July immediately 2849
	3639	+	following the end of each fiscal year. 2850
	3640	+	Sec. 39. Subsection (b) of section 12-494 of the general statutes is 2851
	3641	+	repealed and the following is substituted in lieu thereof (Effective July 2852
	3642	+	1, 2019, and applicable to conveyances occurring on or after July 1, 2019): 2853
	3643	+	(b) The rate of tax imposed under subdivision (1) of subsection (a) of 2854
	3644	+	this section shall, in lieu of the rate under said subdivision (1), be 2855
	3645	+	imposed on certain conveyances as follows: (1) In the case of any 2856
	3646	+	conveyance of real property which at the time of such conveyance is 2857
	3647	+	used for any purpose other than residential use, except unimproved 2858
	3648	+	land, the tax under said subdivision (1) shall be imposed at the rate of 2859
	3649	+	Governor's Bill No. 877
	3650	+
	3651	+
	3652	+
	3653	+	LCO No. 4566 98 of 138
	3654	+
	3655	+	one and one-quarter per cent of the consideration for the interest in 2860
	3656	+	real property conveyed; (2) in the case of any conveyance in which the 2861
	3657	+	real property conveyed is a residential estate, including a primary 2862
	3658	+	dwelling and any auxiliary housing or structures, regardless of the 2863
	3659	+	number of deeds, instruments or writings used to convey such 2864
	3660	+	residential real estate, for which the consideration or aggregate 2865
	3661	+	consideration, as the case may be, in such conveyance is eight hundred 2866
	3662	+	thousand dollars or more, the tax under said subdivision (1) shall be 2867
	3663	+	imposed (A) at the rate of three-quarters of one per cent on that 2868
	3664	+	portion of such consideration up to and including the amount of eight 2869
	3665	+	hundred thousand dollars, and (B) at the rate of [one and one-quarter] 2870
	3666	+	one and one-half per cent on that portion of such consideration in 2871
	3667	+	excess of eight hundred thousand dollars; and (3) in the case of any 2872
	3668	+	conveyance in which real property on which mortgage payments have 2873
	3669	+	been delinquent for not less than six months is conveyed to a financial 2874
	3670	+	institution or its subsidiary which holds such a delinquent mortgage 2875
	3671	+	on such property, the tax under said subdivision (1) shall be imposed 2876
	3672	+	at the rate of three-quarters of one per cent of the consideration for the 2877
	3673	+	interest in real property conveyed. For the purposes of subdivision (1) 2878
	3674	+	of this subsection, "unimproved land" includes land designated as 2879
	3675	+	farm, forest or open space land. 2880
	3676	+	Sec. 40. Subsection (d) of section 12-217n of the general statutes is 2881
	3677	+	repealed and the following is substituted in lieu thereof (Effective from 2882
	3678	+	passage and applicable to taxable years commencing on or after January 1, 2883
	3679	+	2019): 2884
	3680	+	(d) (1) The credit provided for by this section shall be allowed for 2885
	3681	+	any income year commencing on or after January 1, 1993, provided 2886
	3682	+	any credits allowed for income years commencing on or after January 2887
	3683	+	1, 1993, and prior to January 1, 1995, may not be taken until income 2888
	3684	+	years commencing on or after January 1, 1995, and, for the purposes of 2889
	3685	+	subdivision (2) of this subsection, shall be treated as if the credit for 2890
	3686	+	each such income year first became allowable in the first income year 2891
	3687	+	commencing on or after January 1, 1995. 2892
	3688	+	Governor's Bill No. 877
	3689	+
	3690	+
	3691	+
	3692	+	LCO No. 4566 99 of 138
	3693	+
	3694	+	(2) No more than one-third of the amount of the credit allowable for 2893
	3695	+	any income year may be included in the calculation of the amount of 2894
	3696	+	the credit that may be taken in that income year. 2895
	3697	+	(3) The total amount of the credit under subdivision (1) of this 2896
	3698	+	subsection that may be taken for any income year may not exceed the 2897
	3699	+	greater of (A) fifty per cent of the taxpayer's tax liability or in the case 2898
	3700	+	of a combined return, fifty per cent of the combined tax liability, for 2899
	3701	+	such income year, determined without regard to any credits allowed 2900
	3702	+	under this section, and (B) the lesser of (i) two hundred per cent of the 2901
	3703	+	credit otherwise allowed under subsection (c) of this section for such 2902
	3704	+	income year, and (ii) ninety per cent of the taxpayer's tax liability or in 2903
	3705	+	the case of a combined return, ninety per cent of the combined liability 2904
	3706	+	for such income year, determined without regard to any credits 2905
	3707	+	allowed under this section. 2906
	3708	+	(4) (A) Credits that are allowed under this section [but] for taxable 2907
	3709	+	years commencing prior to January 1, 2019, that exceed the amount 2908
	3710	+	permitted to be taken in an income year [by reason of] pursuant to the 2909
	3711	+	provisions of subdivision (1), (2) or (3) of this subsection [,] shall be 2910
	3712	+	carried forward to each of the successive income years until such 2911
	3713	+	credits, or applicable portion thereof, are fully taken. No credit 2912
	3714	+	permitted under this section shall be taken in any income year until the 2913
	3715	+	full amount of all allowable credits carried forward to such year from 2914
	3716	+	any prior income year, commencing with the earliest such prior year, 2915
	3717	+	that otherwise may be taken under subdivision (2) of this subsection in 2916
	3718	+	that income year, have been fully taken. 2917
	3719	+	(B) Credits that are allowed under this section for taxable years 2918
	3720	+	commencing on or after January 1, 2019, that exceed the amount 2919
	3721	+	permitted to be taken in an income year pursuant to the provisions of 2920
	3722	+	subdivision (1), (2) or (3) of this subsection shall be carried forward to 2921
	3723	+	each of the successive income years until such credits, or applicable 2922
	3724	+	portion thereof, are fully taken. No credit permitted under this section 2923
	3725	+	shall be taken in any income year until the full amount of all allowable 2924
	3726	+	Governor's Bill No. 877
	3727	+
	3728	+
	3729	+
	3730	+	LCO No. 4566 100 of 138
	3731	+
	3732	+	credits carried forward to such year from any prior income year, 2925
	3733	+	commencing with the earliest such prior year, that otherwise may be 2926
	3734	+	taken under subdivision (2) of this subsection in that income year, 2927
	3735	+	have been fully taken. In no case may a credit allowed under this 2928
	3736	+	subparagraph, or any portion thereof, that is not used by a taxpayer be 2929
	3737	+	carried forward for a period of more than fifteen years. 2930
	3738	+	Sec. 41. Subsection (a) of section 12-217zz of the general statutes is 2931
	3739	+	repealed and the following is substituted in lieu thereof (Effective from 2932
	3740	+	passage and applicable to income years commencing on or after January 1, 2933
	3741	+	2019): 2934
	3742	+	(a) Notwithstanding any other provision of law, and except as 2935
	3743	+	otherwise provided in subsection (b) of this section and sections 12-2936
	3744	+	217aaa and 12-217bbb, the amount of tax credit or credits otherwise 2937
	3745	+	allowable against the tax imposed under this chapter shall be as 2938
	3746	+	follows: 2939
	3747	+	(1) For any income year commencing on or after January 1, 2002, 2940
	3748	+	and prior to January 1, 2015, the amount of tax credit or credits 2941
	3749	+	otherwise allowable shall not exceed seventy per cent of the amount of 2942
	3750	+	tax due from such taxpayer under this chapter with respect to any such 2943
	3751	+	income year of the taxpayer prior to the application of such credit or 2944
	3752	+	credits; 2945
	3753	+	(2) For any income year commencing on or after January 1, 2015, the 2946
	3754	+	amount of tax credit or credits otherwise allowable shall not exceed 2947
	3755	+	fifty and one one-hundredths per cent of the amount of tax due from 2948
	3756	+	such taxpayer under this chapter with respect to any such income year 2949
	3757	+	of the taxpayer prior to the application of such credit or credits; 2950
	3758	+	(3) Notwithstanding the provisions of subdivision (2) of this 2951
	3759	+	subsection, any taxpayer that possesses excess credits may utilize the 2952
	3760	+	excess credits as follows: 2953
	3761	+	(A) For income years commencing on or after January 1, 2016, and 2954
	3762	+	Governor's Bill No. 877
	3763	+
	3764	+
	3765	+
	3766	+	LCO No. 4566 101 of 138
	3767	+
	3768	+	prior to January 1, 2017, the aggregate amount of tax credits and excess 2955
	3769	+	credits allowable shall not exceed fifty-five per cent of the amount of 2956
	3770	+	tax due from such taxpayer under this chapter with respect to any such 2957
	3771	+	income year of the taxpayer prior to the application of such credit or 2958
	3772	+	credits; 2959
	3773	+	(B) For income years commencing on or after January 1, 2017, and 2960
	3774	+	prior to January 1, 2018, the aggregate amount of tax credits and excess 2961
	3775	+	credits allowable shall not exceed sixty per cent of the amount of tax 2962
	3776	+	due from such taxpayer under this chapter with respect to any such 2963
	3777	+	income year of the taxpayer prior to the application of such credit or 2964
	3778	+	credits; and 2965
	3779	+	(C) For income years commencing on or after January 1, 2018, and 2966
	3780	+	prior to January 1, 2019, the aggregate amount of tax credits and excess 2967
	3781	+	credits allowable shall not exceed sixty-five per cent of the amount of 2968
	3782	+	tax due from such taxpayer under this chapter with respect to any such 2969
	3783	+	income year of the taxpayer prior to the application of such credit or 2970
	3784	+	credits; 2971
	3785	+	[(D) For income years commencing on or after January 1, 2019, the 2972
	3786	+	aggregate amount of tax credits and excess credits allowable shall not 2973
	3787	+	exceed seventy per cent of the amount of tax due from such taxpayer 2974
	3788	+	under this chapter with respect to any such income year of the 2975
	3789	+	taxpayer prior to the application of such credit or credits;] 2976
	3790	+	(4) For purposes of this subsection, "excess credits" means any 2977
	3791	+	remaining credits available under section 12-217j, 12-217n, as amended 2978
	3792	+	by this act, or 32-9t after tax credits are utilized in accordance with 2979
	3793	+	subdivision (2) of this subsection. 2980
	3794	+	Sec. 42. (NEW) (Effective from passage and applicable to quarterly periods 2981
	3795	+	commencing on or after July 1, 2019) Notwithstanding any provision of 2982
	3796	+	the general statutes allowing for a higher amount, for any quarterly 2983
	3797	+	periods commencing on or after July 1, 2019, the amount of tax credit 2984
	3798	+	or credits allowable against the tax imposed under chapter 211 of the 2985
	3799	+	Governor's Bill No. 877
	3800	+
	3801	+
	3802	+
	3803	+	LCO No. 4566 102 of 138
	3804	+
	3805	+	general statutes, shall not exceed fifty and one one-hundredths per 2986
	3806	+	cent of the amount of tax due from a taxpayer under such chapter with 2987
	3807	+	respect to any such quarterly period of the taxpayer prior to the 2988
	3808	+	application of such credit or credits. 2989
	3809	+	Sec. 43. (NEW) (Effective from passage and applicable to quarterly periods 2990
	3810	+	commencing on or after July 1, 2019) Notwithstanding any provision of 2991
	3811	+	the general statutes allowing for a higher amount, for any quarterly 2992
	3812	+	periods commencing on or after July 1, 2019, the amount of tax credit 2993
	3813	+	or credits allowable against the tax imposed under chapter 212 of the 2994
	3814	+	general statutes, shall not exceed fifty and one one-hundredths per 2995
	3815	+	cent of the amount of tax due from a taxpayer under such chapter with 2996
	3816	+	respect to any such quarterly period of the taxpayer prior to the 2997
	3817	+	application of such credit or credits. 2998
	3818	+	Sec. 44. (NEW) (Effective from passage and applicable to quarterly periods 2999
	3819	+	commencing on or after July 1, 2019) Notwithstanding any provision of 3000
	3820	+	the general statutes allowing for a higher amount, for any quarterly 3001
	3821	+	periods commencing on or after July 1, 2019, the amount of tax credit 3002
	3822	+	or credits allowable against the tax imposed under chapter 227 of the 3003
	3823	+	general statutes, shall not exceed fifty and one one-hundredths per 3004
	3824	+	cent of the amount of tax due from a taxpayer under such chapter with 3005
	3825	+	respect to any such quarterly period of the taxpayer prior to the 3006
	3826	+	application of such credit or credits. 3007
	3827	+	Sec. 45. Subsection (a) of section 12-264 of the general statutes is 3008
	3828	+	repealed and the following is substituted in lieu thereof (Effective July 3009
	3829	+	1, 2019): 3010
	3830	+	(a) Each (1) municipality, or department or agency thereof, or 3011
	3831	+	district manufacturing, selling or distributing gas to be used for light, 3012
	3832	+	heat or power, (2) company the principal business of which is 3013
	3833	+	manufacturing, selling or distributing gas or steam to be used for light, 3014
	3834	+	heat or power, including each foreign electric company, as defined in 3015
	3835	+	section 16-246f, that holds property in this state, and (3) company 3016
	3836	+	Governor's Bill No. 877
	3837	+
	3838	+
	3839	+
	3840	+	LCO No. 4566 103 of 138
	3841	+
	3842	+	required to register pursuant to section 16-258a, shall pay a quarterly 3017
	3843	+	tax upon gross earnings from such operations in this state. Gross 3018
	3844	+	earnings from such operations under subdivisions (1) and (2) of this 3019
	3845	+	subsection shall include, as determined by the Commissioner of 3020
	3846	+	Revenue Services, (A) all income included in operating revenue 3021
	3847	+	accounts in the uniform systems of accounts prescribed by the Public 3022
	3848	+	Utilities Regulatory Authority for operations within the taxable 3023
	3849	+	quarter and, with respect to each such company, (B) all income 3024
	3850	+	identified in said uniform systems of accounts as income from 3025
	3851	+	merchandising, jobbing and contract work, (C) all revenues identified 3026
	3852	+	in said uniform systems of accounts as income from nonutility 3027
	3853	+	operations, (D) all revenues identified in said uniform systems of 3028
	3854	+	accounts as nonoperating retail income, and (E) receipts from the sale 3029
	3855	+	of residuals and other by-products obtained in connection with the 3030
	3856	+	production of gas, electricity or steam. Gross earnings from such 3031
	3857	+	operations under subdivision (3) of this subsection shall be gross 3032
	3858	+	income from the sales of natural gas. [, provided gross income shall not 3033
	3859	+	include income from the sale of natural gas to an existing combined 3034
	3860	+	cycle facility comprised of three gas turbines providing electric 3035
	3861	+	generation services, as defined in section 16-1, with a total capacity of 3036
	3862	+	seven hundred seventy-five megawatts, for use in the production of 3037
	3863	+	electricity.] Gross earnings of a gas company, as defined in section 16-3038
	3864	+	1, shall not include income earned in a taxable quarter commencing 3039
	3865	+	prior to June 30, 2008, from the sale of natural gas or propane as a fuel 3040
	3866	+	for a motor vehicle. No deductions shall be allowed from such gross 3041
	3867	+	earnings for any commission, rebate or other payment, except a refund 3042
	3868	+	resulting from an error or overcharge and those specifically mentioned 3043
	3869	+	in section 12-265. Gross earnings of a company, as described in 3044
	3870	+	subdivision (2) of this subsection, shall not include income earned in 3045
	3871	+	any taxable quarter commencing on or after July 1, 2000, from the sale 3046
	3872	+	of steam. 3047
	3873	+	Sec. 46. (NEW) (Effective October 1, 2019, and applicable to sales 3048
	3874	+	occurring on or after October 1, 2019) (a) As used in this section: 3049
	3875	+	Governor's Bill No. 877
	3876	+
	3877	+
	3878	+
	3879	+	LCO No. 4566 104 of 138
	3880	+
	3881	+	(1) "Electronic nicotine delivery system" has the same meaning as 3050
	3882	+	provided in section 19a-342a of the general statutes; 3051
	3883	+	(2) "Liquid nicotine container" has the same meaning as provided in 3052
	3884	+	section 19a-342a of the general statutes; 3053
	3885	+	(3) "Vapor product" has the same meaning as provided in section 3054
	3886	+	19a-342a of the general statutes; 3055
	3887	+	(4) "Electronic cigarette liquid" means a liquid that, when used in an 3056
	3888	+	electronic nicotine delivery system or a vapor product, produces a 3057
	3889	+	vapor that may or may not include nicotine and is inhaled by the user 3058
	3890	+	of such electronic nicotine delivery system or vapor product; 3059
	3891	+	(5) "Electronic cigarette products" means electronic nicotine delivery 3060
	3892	+	systems, liquid nicotine containers, vapor products and electronic 3061
	3893	+	cigarette liquids; 3062
	3894	+	(6) "Electronic cigarette wholesaler" means (A) any person engaged 3063
	3895	+	in the business of selling electronic cigarette products at wholesale in 3064
	3896	+	the state, (B) any person in this state who purchases electronic cigarette 3065
	3897	+	products at wholesale from a manufacturer, or (C) any dealer, retailer 3066
	3898	+	or other person that otherwise imports, or causes another person to 3067
	3899	+	import, untaxed electronic cigarette products into this state; 3068
	3900	+	(7) "Wholesale sales price" means the price of electronic cigarette 3069
	3901	+	products or, if no price has been set, the wholesale value of such 3070
	3902	+	products; and 3071
	3903	+	(8) "Sale" means any transfer of title or possession or both, exchange, 3072
	3904	+	barter, distribution or gift, of electronic cigarette products, with or 3073
	3905	+	without consideration. 3074
	3906	+	(b) For each calendar month commencing on or after October 1, 3075
	3907	+	2019, a tax is imposed on all sales of electronic cigarette products made 3076
	3908	+	in this state by electronic cigarette wholesalers at the rate of seventy-3077
	3909	+	five per cent of the wholesale sales price of such products, whether or 3078
	3910	+	Governor's Bill No. 877
	3911	+
	3912	+
	3913	+
	3914	+	LCO No. 4566 105 of 138
	3915	+
	3916	+	not sold at wholesale, or if not sold, then at the same rate upon the use 3079
	3917	+	by the wholesaler. Only one sale of the same product shall be used in 3080
	3918	+	computing the amount of tax due under this subsection. 3081
	3919	+	(c) Each electronic cigarette wholesaler shall file with the 3082
	3920	+	commissioner, on or before the last day of each month, a report for the 3083
	3921	+	calendar month immediately preceding in such form and containing 3084
	3922	+	such information as the Commissioner of Revenue Services may 3085
	3923	+	prescribe. The return shall be accompanied by a payment of the 3086
	3924	+	amount of the tax shown to be due thereon. Payment shall be made 3087
	3925	+	with such return. Each electronic cigarette wholesaler shall file such 3088
	3926	+	return electronically with the Department of Revenue Services and 3089
	3927	+	make such payment by electronic funds transfer in the manner 3090
	3928	+	provided by chapter 228g of the general statutes. 3091
	3929	+	(d) If any person fails to pay the amount of tax reported due on its 3092
	3930	+	report within the time specified under this section, there shall be 3093
	3931	+	imposed a penalty equal to ten per cent of such amount due and 3094
	3932	+	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 3095
	3933	+	interest at the rate of one per cent per month or fraction thereof, from 3096
	3934	+	the due date of such tax until the date of payment. Subject to the 3097
	3935	+	provisions of section 12-3a of the general statutes, the commissioner 3098
	3936	+	may waive all or part of the penalties provided under this section 3099
	3937	+	when it is proven to the commissioner's satisfaction that the failure to 3100
	3938	+	pay any tax was due to reasonable cause and was not intentional or 3101
	3939	+	due to neglect. 3102
	3940	+	(e) Each person, other than an electronic cigarette wholesaler, who is 3103
	3941	+	required, on behalf of an electronic cigarette wholesaler, to collect, 3104
	3942	+	truthfully account for and pay over the tax imposed on such electronic 3105
	3943	+	cigarette wholesaler under this section and who wilfully fails to collect, 3106
	3944	+	truthfully account for and pay over such tax or who wilfully attempts 3107
	3945	+	in any manner to evade or defeat the tax or the payment thereof, shall, 3108
	3946	+	in addition to other penalties provided by law, be liable for a penalty 3109
	3947	+	equal to the total amount of the tax evaded, or not collected, or not 3110
	3948	+	Governor's Bill No. 877
	3949	+
	3950	+
	3951	+
	3952	+	LCO No. 4566 106 of 138
	3953	+
	3954	+	accounted for and paid over, including any penalty or interest 3111
	3955	+	attributable to such wilful failure to collect or truthfully account for 3112
	3956	+	and pay over such tax or such wilful attempt to evade or defeat such 3113
	3957	+	tax, provided such penalty shall only be imposed against such person 3114
	3958	+	in the event that such tax, penalty or interest cannot otherwise be 3115
	3959	+	collected from the electronic cigarette wholesaler. The amount of such 3116
	3960	+	penalty with respect to which a person may be personally liable under 3117
	3961	+	this section shall be collected in accordance with the provisions of 3118
	3962	+	section 12-555a of the general statutes and any amount so collected 3119
	3963	+	shall be allowed as a credit against the amount of such tax, penalty or 3120
	3964	+	interest due and owing from the electronic cigarette wholesaler. The 3121
	3965	+	dissolution of the electronic cigarette wholesaler shall not discharge 3122
	3966	+	any person in relation to any personal liability under this section for 3123
	3967	+	wilful failure to collect or truthfully account for and pay over such tax 3124
	3968	+	or for a wilful attempt to evade or defeat such tax prior to dissolution, 3125
	3969	+	except as otherwise provided in this section. For purposes of this 3126
	3970	+	section, "person" includes any individual, corporation, limited liability 3127
	3971	+	company or partnership and any officer or employee of any 3128
	3972	+	corporation, including a dissolved corporation, and a member or 3129
	3973	+	employee of any partnership or limited liability company who, as such 3130
	3974	+	officer, employee or member, is under a duty to file a tax return under 3131
	3975	+	this section on behalf of an electronic cigarette wholesaler or to collect 3132
	3976	+	or truthfully account for and pay over the tax imposed under this 3133
	3977	+	section on behalf of an electronic cigarette wholesaler. 3134
	3978	+	(f) No tax credit or credits shall be allowable against the tax 3135
	3979	+	imposed under this section. 3136
	3980	+	(g) The provisions of sections 12-550 to 12-554, inclusive, and section 3137
	3981	+	12-555a of the general statutes shall apply to the provisions of this 3138
	3982	+	section in the same manner and with the same force and effect as if the 3139
	3983	+	language of said sections had been incorporated in full into this section 3140
	3984	+	and had expressly referred to the tax under this section, except to the 3141
	3985	+	extent that any provision is inconsistent with a provision in this 3142
	3986	+	section. 3143
	3987	+	Governor's Bill No. 877
	3988	+
	3989	+
	3990	+
	3991	+	LCO No. 4566 107 of 138
	3992	+
	3993	+	(h) The commissioner may adopt regulations, in accordance with 3144
	3994	+	the provisions of chapter 54 of the general statutes, to implement the 3145
	3995	+	provisions of this section. 3146
	3996	+	(i) At the close of each fiscal year commencing with the fiscal year 3147
	3997	+	ending June 30, 2020, the Comptroller is authorized to record as 3148
	3998	+	revenue for such fiscal year the amount of the tax imposed under the 3149
	3999	+	provisions of this section that is received by the commissioner not later 3150
	4000	+	than five business days from the last day of July immediately 3151
	4001	+	following the end of such fiscal year. 3152
	4002	+	Sec. 47. Subsection (a) of section 12-286a of the general statutes is 3153
	4003	+	repealed and the following is substituted in lieu thereof (Effective 3154
	4004	+	October 1, 2019): 3155
	4005	+	(a) Each distributor and each dealer, as defined in section 12-285, 3156
	4006	+	shall place and maintain in legible condition at each point of sale of 3157
	4007	+	cigarettes to consumers, including the front of each vending machine, 3158
	4008	+	and each restricted cigarette vending machine a notice which states (1) 3159
	4009	+	that the sale, giving or delivering of tobacco products, including 3160
	4010	+	cigarettes, to any person under [eighteen] twenty-one years of age is 3161
	4011	+	prohibited by section 53-344, as amended by this act, (2) the purchase 3162
	4012	+	or misrepresentation of age by a person under [eighteen] twenty-one 3163
	4013	+	years of age to purchase cigarettes or tobacco products is prohibited by 3164
	4014	+	[said] section 53-344, as amended by this act, and (3) the penalties and 3165
	4015	+	fines for violating [said] section 53-344, as amended by this act, and 3166
	4016	+	section 12-295a, as amended by this act. 3167
	4017	+	Sec. 48. Subsection (a) of section 12-295 of the general statutes is 3168
	4018	+	repealed and the following is substituted in lieu thereof (Effective 3169
	4019	+	October 1, 2019): 3170
	4020	+	(a) The commissioner may suspend or revoke the license of any 3171
	4021	+	dealer or distributor for failure to comply with any provision of this 3172
	4022	+	chapter or regulations related thereto or for the sale or delivery of 3173
	4023	+	tobacco in any form to a [minor under eighteen] person under twenty-3174
	4024	+	Governor's Bill No. 877
	4025	+
	4026	+
	4027	+
	4028	+	LCO No. 4566 108 of 138
	4029	+
	4030	+	one years of age, following a hearing with respect to which notice in 3175
	4031	+	writing, specifying the time and place of such hearing and requiring 3176
	4032	+	such dealer or distributor to show cause why such license should not 3177
	4033	+	be revoked, is mailed or delivered to such dealer or distributor not less 3178
	4034	+	than ten days preceding the date of such hearing. Such notice may be 3179
	4035	+	served personally or by registered or certified mail. 3180
	4036	+	Sec. 49. Subsection (a) of section 12-295a of the general statutes is 3181
	4037	+	repealed and the following is substituted in lieu thereof (Effective 3182
	4038	+	October 1, 2019): 3183
	4039	+	(a) If the Commissioner of Revenue Services finds, after a hearing, 3184
	4040	+	that a minor has purchased cigarettes or tobacco products, said 3185
	4041	+	commissioner shall assess such minor a civil penalty of not more than 3186
	4042	+	one hundred dollars for the first violation and not more than one 3187
	4043	+	hundred fifty dollars for any second or subsequent offense within 3188
	4044	+	twenty-four months after the first violation. For purposes of this 3189
	4045	+	section, "minor" means a person under twenty-one years of age. 3190
	4046	+	Sec. 50. Section 12-314a of the general statutes is repealed and the 3191
	4047	+	following is substituted in lieu thereof (Effective October 1, 2019): 3192
	4048	+	The Commissioner of Revenue Services may authorize a dealer or 3193
	4049	+	distributor to give or deliver any cigarette, as defined in section 12-285, 3194
	4050	+	or tobacco product, as defined in section 12-330a, in connection with 3195
	4051	+	the promotion or advertisement of such cigarette or tobacco product 3196
	4052	+	without receiving monetary consideration from the person receiving 3197
	4053	+	the cigarette or tobacco product, provided (1) such distribution is on 3198
	4054	+	the premises of a licensed dealer as defined in said section 12-285 or at 3199
	4055	+	any event or establishment with an area the access to which is limited 3200
	4056	+	to adult patrons provided such distribution is restricted to such area, 3201
	4057	+	(2) the sample of cigarettes, if applicable, contains no less than two 3202
	4058	+	cigarettes, and (3) the taxes on such cigarettes have been previously 3203
	4059	+	paid. The licensed dealer or distributor shall be liable for any gift or 3204
	4060	+	delivery of cigarettes or tobacco products to [minors on his] persons 3205
	4061	+	Governor's Bill No. 877
	4062	+
	4063	+
	4064	+
	4065	+	LCO No. 4566 109 of 138
	4066	+
	4067	+	under twenty-one years of age on such dealer's premises by any 3206
	4068	+	person conducting a promotion or advertisement of such cigarette or 3207
	4069	+	tobacco product in accordance with this section. This section shall not 3208
	4070	+	apply to the gift or delivery of a cigarette package in connection with a 3209
	4071	+	sale of similar package of cigarettes. 3210
	4072	+	Sec. 51. Section 53-344 of the general statutes is repealed and the 3211
	4073	+	following is substituted in lieu thereof (Effective October 1, 2019): 3212
	4074	+	(a) As used in this section: 3213
	4075	+	(1) "Cardholder" means any person who presents a driver's license 3214
	4076	+	or an identity card to a seller or seller's agent or employee, to purchase 3215
	4077	+	or receive tobacco from such seller or seller's agent or employee; 3216
	4078	+	(2) "Identity card" means an identification card issued in accordance 3217
	4079	+	with the provisions of section 1-1h; 3218
	4080	+	(3) "Transaction scan" means the process by which a seller or seller's 3219
	4081	+	agent or employee checks, by means of a transaction scan device, the 3220
	4082	+	validity of a driver's license or an identity card; and 3221
	4083	+	(4) "Transaction scan device" means any commercial device or 3222
	4084	+	combination of devices used at a point of sale that is capable of 3223
	4085	+	deciphering in an electronically readable format the information 3224
	4086	+	encoded on the magnetic strip or bar code of a driver's license or an 3225
	4087	+	identity card. 3226
	4088	+	(b) Any person who sells, gives or delivers to any person under 3227
	4089	+	[eighteen] twenty-one years of age tobacco shall be fined not more 3228
	4090	+	than two hundred dollars for the first offense, not more than three 3229
	4091	+	hundred fifty dollars for a second offense within a twenty-four-month 3230
	4092	+	period and not more than five hundred dollars for each subsequent 3231
	4093	+	offense within a twenty-four-month period. The provisions of this 3232
	4094	+	subsection shall not apply to a person under [eighteen] twenty-one 3233
	4095	+	years of age who is delivering or accepting delivery of tobacco (1) in 3234
	4096	+	Governor's Bill No. 877
	4097	+
	4098	+
	4099	+
	4100	+	LCO No. 4566 110 of 138
	4101	+
	4102	+	such person's capacity as an employee, or (2) as part of a scientific 3235
	4103	+	study being conducted by an organization for the purpose of medical 3236
	4104	+	research to further efforts in tobacco use prevention and cessation, 3237
	4105	+	provided such medical research has been approved by the 3238
	4106	+	organization's institutional review board, as defined in section 21a-408. 3239
	4107	+	(c) Any person under [eighteen] twenty-one years of age who 3240
	4108	+	purchases or misrepresents such person's age to purchase tobacco in 3241
	4109	+	any form or possesses tobacco in any form in any public place shall be 3242
	4110	+	fined not more than fifty dollars for the first offense and not less than 3243
	4111	+	fifty dollars or more than one hundred dollars for each subsequent 3244
	4112	+	offense. For purposes of this subsection, "public place" means any area 3245
	4113	+	that is used or held out for use by the public whether owned or 3246
	4114	+	operated by public or private interests. 3247
	4115	+	(d) (1) A seller or seller's agent or employee may perform a 3248
	4116	+	transaction scan to check the validity of a driver's license or identity 3249
	4117	+	card presented by a cardholder as a condition for selling, giving away 3250
	4118	+	or otherwise distributing tobacco to the cardholder. 3251
	4119	+	(2) If the information deciphered by the transaction scan performed 3252
	4120	+	under subdivision (1) of this subsection fails to match the information 3253
	4121	+	printed on the driver's license or identity card presented by the 3254
	4122	+	cardholder, or if the transaction scan indicates that the information so 3255
	4123	+	printed is false or fraudulent, neither the seller nor any seller's agent or 3256
	4124	+	employee shall sell, give away or otherwise distribute any tobacco to 3257
	4125	+	the cardholder. 3258
	4126	+	(3) Subdivision (1) of this subsection does not preclude a seller or 3259
	4127	+	seller's agent or employee from using a transaction scan device to 3260
	4128	+	check the validity of a document other than a driver's license or an 3261
	4129	+	identity card, if the document includes a bar code or magnetic strip 3262
	4130	+	that may be scanned by the device, as a condition for selling, giving 3263
	4131	+	away or otherwise distributing tobacco to the person presenting the 3264
	4132	+	document. 3265
	4133	+	Governor's Bill No. 877
	4134	+
	4135	+
	4136	+
	4137	+	LCO No. 4566 111 of 138
	4138	+
	4139	+	(e) (1) No seller or seller's agent or employee shall electronically or 3266
	4140	+	mechanically record or maintain any information derived from a 3267
	4141	+	transaction scan, except the following: (A) The name and date of birth 3268
	4142	+	of the person listed on the driver's license or identity card presented by 3269
	4143	+	a cardholder; (B) the expiration date and identification number of the 3270
	4144	+	driver's license or identity card presented by a cardholder. 3271
	4145	+	(2) No seller or seller's agent or employee shall use a transaction 3272
	4146	+	scan device for a purpose other than the purposes specified in 3273
	4147	+	subsection (e) of section 53-344b, as amended by this act, subsection (d) 3274
	4148	+	of this section or subsection (c) of section 30-86. 3275
	4149	+	(3) No seller or seller's agent or employee shall sell or otherwise 3276
	4150	+	disseminate the information derived from a transaction scan to any 3277
	4151	+	third party, including, but not limited to, selling or otherwise 3278
	4152	+	disseminating that information for any marketing, advertising or 3279
	4153	+	promotional activities, but a seller or seller's agent or employee may 3280
	4154	+	release that information pursuant to a court order. 3281
	4155	+	(4) Nothing in subsection (d) of this section or this subsection 3282
	4156	+	relieves a seller or seller's agent or employee of any responsibility to 3283
	4157	+	comply with any other applicable state or federal laws or rules 3284
	4158	+	governing the sale, giving away or other distribution of tobacco. 3285
	4159	+	(5) Any person who violates this subsection shall be subject to a civil 3286
	4160	+	penalty of not more than one thousand dollars. 3287
	4161	+	(f) (1) In any prosecution of a seller or seller's agent or employee for 3288
	4162	+	a violation of subsection (b) of this section, it shall be an affirmative 3289
	4163	+	defense that all of the following occurred: (A) A cardholder attempting 3290
	4164	+	to purchase or receive tobacco presented a driver's license or an 3291
	4165	+	identity card; (B) a transaction scan of the driver's license or identity 3292
	4166	+	card that the cardholder presented indicated that the license or card 3293
	4167	+	was valid; and (C) the tobacco was sold, given away or otherwise 3294
	4168	+	distributed to the cardholder in reasonable reliance upon the 3295
	4169	+	identification presented and the completed transaction scan. 3296
	4170	+	Governor's Bill No. 877
	4171	+
	4172	+
	4173	+
	4174	+	LCO No. 4566 112 of 138
	4175	+
	4176	+	(2) In determining whether a seller or seller's agent or employee has 3297
	4177	+	proven the affirmative defense provided by subdivision (1) of this 3298
	4178	+	section, the trier of fact in such prosecution shall consider that 3299
	4179	+	reasonable reliance upon the identification presented and the 3300
	4180	+	completed transaction scan may require a seller or seller's agent or 3301
	4181	+	employee to exercise reasonable diligence and that the use of a 3302
	4182	+	transaction scan device does not excuse a seller or seller's agent or 3303
	4183	+	employee from exercising such reasonable diligence to determine the 3304
	4184	+	following: (A) Whether a person to whom the seller or seller's agent or 3305
	4185	+	employee sells, gives away or otherwise distributes tobacco is 3306
	4186	+	[eighteen] twenty-one years of age or older; and (B) whether the 3307
	4187	+	description and picture appearing on the driver's license or identity 3308
	4188	+	card presented by a cardholder is that of the cardholder. 3309
	4189	+	Sec. 52. Section 53-344b of the general statutes is repealed and the 3310
	4190	+	following is substituted in lieu thereof (Effective October 1, 2019): 3311
	4191	+	(a) As used in this section and sections 21a-415 and 21a-415a: 3312
	4192	+	(1) "Electronic nicotine delivery system" means an electronic device 3313
	4193	+	that may be used to simulate smoking in the delivery of nicotine or 3314
	4194	+	other substance to a person inhaling from the device, and includes, but 3315
	4195	+	is not limited to, an electronic cigarette, electronic cigar, electronic 3316
	4196	+	cigarillo, electronic pipe or electronic hookah and any related device 3317
	4197	+	and any cartridge, electronic cigarette liquid or other component of 3318
	4198	+	such device; 3319
	4199	+	(2) "Cardholder" means any person who presents a driver's license 3320
	4200	+	or an identity card to a seller or seller's agent or employee, to purchase 3321
	4201	+	or receive an electronic nicotine delivery system or vapor product from 3322
	4202	+	such seller or seller's agent or employee; 3323
	4203	+	(3) "Identity card" means an identification card issued in accordance 3324
	4204	+	with the provisions of section 1-1h; 3325
	4205	+	(4) "Transaction scan" means the process by which a seller or seller's 3326
	4206	+	Governor's Bill No. 877
	4207	+
	4208	+
	4209	+
	4210	+	LCO No. 4566 113 of 138
	4211	+
	4212	+	agent or employee checks, by means of a transaction scan device, the 3327
	4213	+	validity of a driver's license or an identity card; 3328
	4214	+	(5) "Transaction scan device" means any commercial device or 3329
	4215	+	combination of devices used at a point of sale that is capable of 3330
	4216	+	deciphering in an electronically readable format the information 3331
	4217	+	encoded on the magnetic strip or bar code of a driver's license or an 3332
	4218	+	identity card; 3333
	4219	+	(6) "Sale" or "sell" means an act done intentionally by any person, 3334
	4220	+	whether done as principal, proprietor, agent, servant or employee, of 3335
	4221	+	transferring, or offering or attempting to transfer, for consideration, an 3336
	4222	+	electronic nicotine delivery system or vapor product, including 3337
	4223	+	bartering or exchanging, or offering to barter or exchange, an 3338
	4224	+	electronic nicotine delivery system or vapor product; 3339
	4225	+	(7) "Give" or "giving" means an act done intentionally by any 3340
	4226	+	person, whether done as principal, proprietor, agent, servant or 3341
	4227	+	employee, of transferring, or offering or attempting to transfer, 3342
	4228	+	without consideration, an electronic nicotine delivery system or vapor 3343
	4229	+	product; 3344
	4230	+	(8) "Deliver" or "delivering" means an act done intentionally by any 3345
	4231	+	person, whether as principal, proprietor, agent, servant or employee, 3346
	4232	+	of transferring, or offering or attempting to transfer, physical 3347
	4233	+	possession or control of an electronic nicotine delivery system or vapor 3348
	4234	+	product; 3349
	4235	+	(9) "Vapor product" means any product that employs a heating 3350
	4236	+	element, power source, electronic circuit or other electronic, chemical 3351
	4237	+	or mechanical means, regardless of shape or size, to produce a vapor 3352
	4238	+	that may or may not include nicotine, that is inhaled by the user of 3353
	4239	+	such product; and 3354
	4240	+	(10) "Electronic cigarette liquid" means a liquid that, when used in 3355
	4241	+	an electronic nicotine delivery system or vapor product, produces a 3356
	4242	+	Governor's Bill No. 877
	4243	+
	4244	+
	4245	+
	4246	+	LCO No. 4566 114 of 138
	4247	+
	4248	+	vapor that may or may not include nicotine and is inhaled by the user 3357
	4249	+	of such electronic nicotine delivery system or vapor product. 3358
	4250	+	(b) Any person who sells, gives or delivers to any person under 3359
	4251	+	[eighteen] twenty-one years of age an electronic nicotine delivery 3360
	4252	+	system or vapor product in any form shall be fined not more than two 3361
	4253	+	hundred dollars for the first offense, not more than three hundred fifty 3362
	4254	+	dollars for a second offense within a twenty-four-month period and 3363
	4255	+	not more than five hundred dollars for each subsequent offense within 3364
	4256	+	a twenty-four-month period. The provisions of this subsection shall 3365
	4257	+	not apply to a person under [eighteen] twenty-one years of age who is 3366
	4258	+	delivering or accepting delivery of an electronic nicotine delivery 3367
	4259	+	system or vapor product (1) in such person's capacity as an employee, 3368
	4260	+	or (2) as part of a scientific study being conducted by an organization 3369
	4261	+	for the purpose of medical research to further efforts in tobacco use 3370
	4262	+	prevention and cessation, provided such medical research has been 3371
	4263	+	approved by the organization's institutional review board, as defined 3372
	4264	+	in section 21a-408. 3373
	4265	+	(c) Any person under [eighteen] twenty-one years of age who 3374
	4266	+	purchases or misrepresents such person's age to purchase an electronic 3375
	4267	+	nicotine delivery system or vapor product in any form or possesses an 3376
	4268	+	electronic nicotine delivery system or vapor product in any form in 3377
	4269	+	any public place shall be fined not more than fifty dollars for the first 3378
	4270	+	offense and not less than fifty dollars or more than one hundred 3379
	4271	+	dollars for each subsequent offense. For purposes of this subsection 3380
	4272	+	"public place" means any area that is used or held out for use by the 3381
	4273	+	public whether owned or operated by public or private interests. 3382
	4274	+	(d) (1) A seller or seller's agent or employee may perform a 3383
	4275	+	transaction scan to check the validity of a driver's license or identity 3384
	4276	+	card presented by a cardholder as a condition for selling, giving or 3385
	4277	+	otherwise delivering an electronic nicotine delivery system or vapor 3386
	4278	+	product to the cardholder. 3387
	4279	+	Governor's Bill No. 877
	4280	+
	4281	+
	4282	+
	4283	+	LCO No. 4566 115 of 138
	4284	+
	4285	+	(2) If the information deciphered by the transaction scan performed 3388
	4286	+	under subdivision (1) of this subsection fails to match the information 3389
	4287	+	printed on the driver's license or identity card presented by the 3390
	4288	+	cardholder, or if the transaction scan indicates that the information so 3391
	4289	+	printed is false or fraudulent, neither the seller nor any seller's agent or 3392
	4290	+	employee shall sell, give or otherwise deliver any electronic nicotine 3393
	4291	+	delivery system or vapor product to the cardholder. 3394
	4292	+	(3) Subdivision (1) of this subsection does not preclude a seller or 3395
	4293	+	seller's agent or employee from using a transaction scan device to 3396
	4294	+	check the validity of a document other than a driver's license or an 3397
	4295	+	identity card, if the document includes a bar code or magnetic strip 3398
	4296	+	that may be scanned by the device, as a condition for selling, giving or 3399
	4297	+	otherwise delivering an electronic nicotine delivery system or vapor 3400
	4298	+	product to the person presenting the document. 3401
	4299	+	(e) (1) No seller or seller's agent or employee shall electronically or 3402
	4300	+	mechanically record or maintain any information derived from a 3403
	4301	+	transaction scan, except the following: (A) The name and date of birth 3404
	4302	+	of the person listed on the driver's license or identity card presented by 3405
	4303	+	a cardholder; and (B) the expiration date and identification number of 3406
	4304	+	the driver's license or identity card presented by a cardholder. 3407
	4305	+	(2) No seller or seller's agent or employee shall use a transaction 3408
	4306	+	scan device for a purpose other than the purposes specified in 3409
	4307	+	subsection (d) of this section, subsection (d) of section 53-344, as 3410
	4308	+	amended by this act, or subsection (c) of section 30-86. 3411
	4309	+	(3) No seller or seller's agent or employee shall sell or otherwise 3412
	4310	+	disseminate the information derived from a transaction scan to any 3413
	4311	+	third party, including, but not limited to, selling or otherwise 3414
	4312	+	disseminating that information for any marketing, advertising or 3415
	4313	+	promotional activities, but a seller or seller's agent or employee may 3416
	4314	+	release that information pursuant to a court order. 3417
	4315	+	(4) Nothing in subsection (d) of this section or this subsection 3418
	4316	+	Governor's Bill No. 877
	4317	+
	4318	+
	4319	+
	4320	+	LCO No. 4566 116 of 138
	4321	+
	4322	+	relieves a seller or seller's agent or employee of any responsibility to 3419
	4323	+	comply with any other applicable state or federal laws or rules 3420
	4324	+	governing selling, giving or otherwise delivering electronic nicotine 3421
	4325	+	delivery systems or vapor products. 3422
	4326	+	(5) Any person who violates this subsection shall be subject to a civil 3423
	4327	+	penalty of not more than one thousand dollars. 3424
	4328	+	(f) (1) In any prosecution of a seller or seller's agent or employee for 3425
	4329	+	a violation of subsection (b) of this section, it shall be an affirmative 3426
	4330	+	defense that all of the following occurred: (A) A cardholder attempting 3427
	4331	+	to purchase or receive an electronic nicotine delivery system or vapor 3428
	4332	+	product presented a driver's license or an identity card; (B) a 3429
	4333	+	transaction scan of the driver's license or identity card that the 3430
	4334	+	cardholder presented indicated that the license or card was valid; and 3431
	4335	+	(C) the electronic nicotine delivery system or vapor product was sold, 3432
	4336	+	given or otherwise delivered to the cardholder in reasonable reliance 3433
	4337	+	upon the identification presented and the completed transaction scan. 3434
	4338	+	(2) In determining whether a seller or seller's agent or employee has 3435
	4339	+	proven the affirmative defense provided by subdivision (1) of this 3436
	4340	+	section, the trier of fact in such prosecution shall consider that 3437
	4341	+	reasonable reliance upon the identification presented and the 3438
	4342	+	completed transaction scan may require a seller or seller's agent or 3439
	4343	+	employee to exercise reasonable diligence and that the use of a 3440
	4344	+	transaction scan device does not excuse a seller or seller's agent or 3441
	4345	+	employee from exercising such reasonable diligence to determine the 3442
	4346	+	following: (A) Whether a person to whom the seller or seller's agent or 3443
	4347	+	employee sells, gives or otherwise delivers an electronic nicotine 3444
	4348	+	delivery system or vapor product is [eighteen] twenty-one years of age 3445
	4349	+	or older; and (B) whether the description and picture appearing on the 3446
	4350	+	driver's license or identity card presented by a cardholder is that of the 3447
	4351	+	cardholder. 3448
	4352	+	(g) Each seller of electronic nicotine delivery systems or vapor 3449
	4353	+	Governor's Bill No. 877
	4354	+
	4355	+
	4356	+
	4357	+	LCO No. 4566 117 of 138
	4358	+
	4359	+	products or such seller's agent or employee shall require a person who 3450
	4360	+	is purchasing or attempting to purchase an electronic nicotine delivery 3451
	4361	+	system or vapor product, whose age is in question, to exhibit proper 3452
	4362	+	proof of age. If a person fails to provide such proof of age, such seller 3453
	4363	+	or seller's agent or employee shall not sell an electronic nicotine 3454
	4364	+	delivery system or vapor product to the person. As used in this 3455
	4365	+	subsection, "proper proof" means a motor vehicle operator's license, a 3456
	4366	+	valid passport or an identity card issued in accordance with the 3457
	4367	+	provisions of section 1-1h. 3458
	4368	+	Sec. 53. Section 21a-416 of the general statutes is repealed and the 3459
	4369	+	following is substituted in lieu thereof (Effective October 1, 2019): 3460
	4370	+	(a) For the purposes of this section: 3461
	4371	+	(1) "Electronic nicotine delivery system" has the same meaning as 3462
	4372	+	provided in section 19a-342. 3463
	4373	+	(2) "Liquid nicotine container" has the same meaning as provided in 3464
	4374	+	section 19a-342a. 3465
	4375	+	[(2)] (3) "Vapor product" has the same meaning as provided in 3466
	4376	+	section 19a-342. 3467
	4377	+	(4) "Electronic cigarette liquid" has the same meaning as provided in 3468
	4378	+	section 46 of this act. 3469
	4379	+	(5) "Electronic cigarette products" has the same meaning as 3470
	4380	+	provided in section 46 of this act. 3471
	4381	+	[(3)] (6) "Retail establishment" has the same meaning as provided in 3472
	4382	+	section 19a-106a. 3473
	4383	+	(b) [(1)] Except as provided in [subdivision (3) of this] subsection (c) 3474
	4384	+	of this section, no retail establishment may sell or offer for sale an 3475
	4385	+	electronic [nicotine delivery system or a vapor] cigarette product by 3476
	4386	+	any means other than an employee-assisted sale where the customer 3477
	4387	+	Governor's Bill No. 877
	4388	+
	4389	+
	4390	+
	4391	+	LCO No. 4566 118 of 138
	4392	+
	4393	+	has no direct access to the electronic [nicotine delivery system or 3478
	4394	+	vapor] cigarette product except through the assistance of the employee 3479
	4395	+	of such retail establishment. 3480
	4396	+	[(2) No retail establishment may sell or offer for sale an electronic 3481
	4397	+	nicotine delivery system or a vapor product from a self-service 3482
	4398	+	display.] 3483
	4399	+	[(3)] (c) The provisions of [subdivisions (1) and (2) of this] 3484
	4400	+	subsection (b) of this section shall not apply to a retail establishment if 3485
	4401	+	[minors] persons under twenty-one years of age are prohibited from 3486
	4402	+	entering the retail establishment and the prohibition on [minors] such 3487
	4403	+	persons entering the retail establishment is posted clearly on all 3488
	4404	+	entrances of the retail establishment. 3489
	4405	+	Sec. 54. Section 12-435 of the general statutes is repealed and the 3490
	4406	+	following is substituted in lieu thereof (Effective July 1, 2019): 3491
	4407	+	Each distributor of alcoholic beverages shall pay a tax to the state on 3492
	4408	+	all sales within the state of alcoholic beverages, except sales to licensed 3493
	4409	+	distributors, sales of alcoholic beverages [which] that, in the course of 3494
	4410	+	such sales, are actually transported to some point without the state and 3495
	4411	+	except [malt beverages which are] beer that is consumed on the 3496
	4412	+	premises covered by a manufacturer's permit, at the rates for the 3497
	4413	+	respective categories of alcoholic beverages listed below: 3498
	4414	+	[(a)] (1) Beer, except as provided in subdivision (2) of this section, 3499
	4415	+	seven dollars and twenty cents for each barrel, three dollars and sixty 3500
	4416	+	cents for each half barrel, one dollar and eighty cents for each quarter 3501
	4417	+	barrel and twenty-four cents per wine gallon or fraction thereof on 3502
	4418	+	quantities less than a quarter barrel; 3503
	4419	+	(2) Beer sold on the premises covered by a manufacturer's permit for 3504
	4420	+	off-premises consumption, three dollars and sixty cents for each barrel, 3505
	4421	+	one dollar and eighty cents for each half barrel, ninety cents for each 3506
	4422	+	quarter barrel and twelve cents per wine gallon or fraction thereof on 3507
	4423	+	Governor's Bill No. 877
	4424	+
	4425	+
	4426	+
	4427	+	LCO No. 4566 119 of 138
	4428	+
	4429	+	quantities less than a quarter barrel; 3508
	4430	+	[(b)] (3) Liquor, five dollars and forty cents per wine gallon; 3509
	4431	+	[(c)] (4) Still wines containing not more than twenty-one per cent of 3510
	4432	+	absolute alcohol, except as provided in [subsections (g) and (h)] 3511
	4433	+	subdivisions (8) and (9) of this section, seventy-two cents per wine 3512
	4434	+	gallon; 3513
	4435	+	[(d)] (5) Still wines containing more than twenty-one per cent of 3514
	4436	+	absolute alcohol and sparkling wines, one dollar and eighty cents per 3515
	4437	+	wine gallon; 3516
	4438	+	[(e)] (6) Alcohol in excess of 100 proof, five dollars and forty cents 3517
	4439	+	per proof gallon; 3518
	4440	+	[(f)] (7) Liquor coolers containing not more than seven per cent of 3519
	4441	+	alcohol by volume, two dollars and forty-six cents per wine gallon; 3520
	4442	+	[(g)] (8) Still wine containing not more than twenty-one per cent of 3521
	4443	+	absolute alcohol, produced by a person who produces not more than 3522
	4444	+	fifty-five thousand wine gallons of wine during the calendar year, 3523
	4445	+	eighteen cents per wine gallon, provided such person presents to each 3524
	4446	+	distributor of alcoholic beverages described in this section a certificate, 3525
	4447	+	issued by the commissioner, stating that such person produces not 3526
	4448	+	more than fifty-five thousand wine gallons of wine during the calendar 3527
	4449	+	year. The commissioner is authorized to issue such certificates, 3528
	4450	+	prescribe the procedures for obtaining such certificates and prescribe 3529
	4451	+	their form; and 3530
	4452	+	[(h)] (9) Cider containing not more than seven per cent of absolute 3531
	4453	+	alcohol shall be subject to the same rate as applies to beer, as provided 3532
	4454	+	in [subsection (a)] subdivision (1) of this section. 3533
	4455	+	Sec. 55. Section 22a-243 of the general statutes is repealed and the 3534
	4456	+	following is substituted in lieu thereof (Effective October 1, 2019): 3535
	4457	+	Governor's Bill No. 877
	4458	+
	4459	+
	4460	+
	4461	+	LCO No. 4566 120 of 138
	4462	+
	4463	+	For purposes of sections 22a-243 to 22a-245c, inclusive: 3536
	4464	+	(1) "Carbonated beverage" means beer or other malt beverages, and 3537
	4465	+	mineral waters, soda water and similar carbonated soft drinks in liquid 3538
	4466	+	form and intended for human consumption; 3539
	4467	+	(2) "Noncarbonated beverage" means water, including flavored 3540
	4468	+	water, nutritionally enhanced water and any beverage that is identified 3541
	4469	+	through the use of letters, words or symbols on such beverage's 3542
	4470	+	product label as a type of water, but excluding juice and mineral water; 3543
	4471	+	(3) "Alcoholic beverage" means any wine or liquor, as those terms 3544
	4472	+	are defined in section 12-433; 3545
	4473	+	[(3)] (4) "Beverage container" means [the] a miniature or any other 3546
	4474	+	individual, separate, sealed glass, metal or plastic bottle, can, jar or 3547
	4475	+	carton containing a carbonated [or] beverage, a noncarbonated 3548
	4476	+	beverage or an alcoholic beverage, but does not include a bottle, can, 3549
	4477	+	jar or carton (A) three liters or more in size if containing a 3550
	4478	+	noncarbonated beverage, or (B) made of high-density polyethylene; 3551
	4479	+	(5) "Miniature" means any sealable bottle, can, jar or carton, that (A) 3552
	4480	+	is primarily composed of glass, metal, plastic or any combination of 3553
	4481	+	such materials, (B) is fifty milliliters or less in size, and (C) contains an 3554
	4482	+	alcoholic beverage; 3555
	4483	+	[(4)] (6) "Consumer" means every person who purchases a beverage 3556
	4484	+	in a beverage container for use or consumption; 3557
	4485	+	[(5)] (7) "Dealer" means every person who engages in the sale of 3558
	4486	+	beverages in beverage containers to a consumer; 3559
	4487	+	[(6)] (8) "Distributor" means every person who engages in the sale of 3560
	4488	+	beverages in beverage containers to a dealer in this state including any 3561
	4489	+	manufacturer who engages in such sale and includes a dealer who 3562
	4490	+	engages in the sale of beverages in beverage containers on which no 3563
	4491	+	deposit has been collected prior to retail sale; 3564
	4492	+	Governor's Bill No. 877
	4493	+
	4494	+
	4495	+
	4496	+	LCO No. 4566 121 of 138
	4497	+
	4498	+	[(7)] (9) "Manufacturer" means every person bottling, canning or 3565
	4499	+	otherwise filling beverage containers for sale to distributors or dealers 3566
	4500	+	or, in the case of private label brands, the owner of the private label 3567
	4501	+	trademark; 3568
	4502	+	[(8)] (10) "Place of business of a dealer" means the fixed location at 3569
	4503	+	which a dealer sells or offers for sale beverages in beverage containers 3570
	4504	+	to consumers; 3571
	4505	+	[(9)] (11) "Redemption center" means any facility established to 3572
	4506	+	redeem empty beverage containers from consumers or to collect and 3573
	4507	+	sort empty beverage containers from dealers and to prepare such 3574
	4508	+	containers for redemption by the appropriate distributors; 3575
	4509	+	[(10)] (12) "Use or consumption" includes the exercise of any right or 3576
	4510	+	power over a beverage incident to the ownership thereof, other than 3577
	4511	+	the sale or the keeping or retention of a beverage for the purposes of 3578
	4512	+	sale; 3579
	4513	+	[(11)] (13) "Nonrefillable beverage container" means a beverage 3580
	4514	+	container [which] that is not designed to be refilled and reused in its 3581
	4515	+	original shape; and 3582
	4516	+	[(12)] (14) "Deposit initiator" means the first distributor to collect the 3583
	4517	+	deposit on a beverage container sold to any person within this state. 3584
	4518	+	Sec. 56. Section 22a-244 of the general statutes is repealed and the 3585
	4519	+	following is substituted in lieu thereof (Effective October 1, 2019): 3586
	4520	+	(a) (1) Every beverage container containing a carbonated beverage 3587
	4521	+	sold or offered for sale in this state, except for any such beverage 3588
	4522	+	containers sold or offered for sale for consumption on an interstate 3589
	4523	+	passenger carrier, shall have a refund value. Such refund value shall 3590
	4524	+	not be less than five cents and shall be a uniform amount throughout 3591
	4525	+	the distribution process in this state. 3592
	4526	+	(2) Every beverage container containing a noncarbonated beverage 3593
	4527	+	Governor's Bill No. 877
	4528	+
	4529	+
	4530	+
	4531	+	LCO No. 4566 122 of 138
	4532	+
	4533	+	sold or offered for sale in this state shall have a refund value, except 3594
	4534	+	for beverage containers containing a noncarbonated beverage that are 3595
	4535	+	(A) sold or offered for sale for consumption on an interstate passenger 3596
	4536	+	carrier, or (B) that comprise any dealer's existing inventory as of March 3597
	4537	+	31, 2009. Such refund value shall not be less than five cents and shall 3598
	4538	+	be a uniform amount throughout the distribution process in this state. 3599
	4539	+	(3) Every miniature that is sold or offered for sale in this state shall 3600
	4540	+	have a refund value, except for miniatures that are (A) sold or offered 3601
	4541	+	for sale for consumption on an interstate passenger carrier, or (B) that 3602
	4542	+	comprise any dealer's existing inventory as of September 30, 2019. 3603
	4543	+	Such refund value shall not be less than five cents and shall be a 3604
	4544	+	uniform amount throughout the distribution process in this state. 3605
	4545	+	(4) Every beverage container of greater than fifty milliliters but less 3606
	4546	+	than two liters that contains an alcoholic beverage that is sold or 3607
	4547	+	offered for sale in this state shall have a refund value, except for such 3608
	4548	+	beverage containers that are (A) sold or offered for sale for 3609
	4549	+	consumption on an interstate passenger carrier, or (B) that comprise 3610
	4550	+	any dealer's existing inventory as of September 30, 2019. Such refund 3611
	4551	+	value shall not be less than twenty-five cents and shall be a uniform 3612
	4552	+	amount throughout the distribution process in this state. 3613
	4553	+	(b) Every beverage container sold or offered for sale in this state, 3614
	4554	+	that has a refund value pursuant to subsection (a) of this section, shall 3615
	4555	+	clearly indicate by embossing or by a stamp or by a label or other 3616
	4556	+	method securely affixed to the beverage container (1) either the refund 3617
	4557	+	value of the container or the words "return for deposit" or "return for 3618
	4558	+	refund" or other words as approved by the Department of Energy and 3619
	4559	+	Environmental Protection, and (2) either the word "Connecticut" or the 3620
	4560	+	abbreviation "Ct.", provided this subdivision shall not apply to glass 3621
	4561	+	beverage containers permanently marked or embossed with a brand 3622
	4562	+	name. 3623
	4563	+	(c) No person shall sell or offer for sale in this state any metal 3624
	4564	+	Governor's Bill No. 877
	4565	+
	4566	+
	4567	+
	4568	+	LCO No. 4566 123 of 138
	4569	+
	4570	+	beverage container (1) a part of which is designed to be detached in 3625
	4571	+	order to open such container, or (2) that is connected to another 3626
	4572	+	beverage container by a device constructed of a material which does 3627
	4573	+	not decompose by photodegradation, chemical degradation or 3628
	4574	+	biodegradation within a reasonable time after exposure to the 3629
	4575	+	elements. 3630
	4576	+	Sec. 57. Subsection (a) of section 12-541 of the general statutes is 3631
	4577	+	repealed and the following is substituted in lieu thereof (Effective 3632
	4578	+	October 1, 2019): 3633
	4579	+	(a) There is hereby imposed a tax of ten per cent of the admission 3634
	4580	+	charge to any place of amusement, entertainment or recreation, except 3635
	4581	+	that no tax shall be imposed with respect to any admission charge (1) 3636
	4582	+	when the admission charge is less than one dollar or, in the case of any 3637
	4583	+	motion picture show, when the admission charge is not more than five 3638
	4584	+	dollars, (2) when a daily admission charge is imposed which entitles 3639
	4585	+	the patron to participate in an athletic or sporting activity, (3) to any 3640
	4586	+	event, other than events held at the stadium facility, as defined in 3641
	4587	+	section 32-651, if all of the proceeds from the event inure exclusively to 3642
	4588	+	an entity [which] that is exempt from federal income tax under the 3643
	4589	+	Internal Revenue Code, provided such entity actively engages in and 3644
	4590	+	assumes the financial risk associated with the presentation of such 3645
	4591	+	event, (4) to any event, other than events held at the stadium facility, as 3646
	4592	+	defined in section 32-651, [which] that, in the opinion of the 3647
	4593	+	commissioner, is conducted primarily to raise funds for an entity 3648
	4594	+	[which] that is exempt from federal income tax under the Internal 3649
	4595	+	Revenue Code, provided the commissioner is satisfied that the net 3650
	4596	+	profit [which] that inures to such entity from such event will exceed 3651
	4597	+	the amount of the admissions tax [which] that, but for this subdivision, 3652
	4598	+	would be imposed upon the person making such charge to such event, 3653
	4599	+	(5) other than for events held at the stadium facility, as defined in 3654
	4600	+	section 32-651, paid by centers of service for elderly persons, as 3655
	4601	+	described in section 17a-310, (6) to any production featuring live 3656
	4602	+	performances by actors or musicians presented at Gateway's 3657
	4603	+	Governor's Bill No. 877
	4604	+
	4605	+
	4606	+
	4607	+	LCO No. 4566 124 of 138
	4608	+
	4609	+	Candlewood Playhouse, Ocean Beach Park or any nonprofit theater or 3658
	4610	+	playhouse in the state, provided such theater or playhouse possesses 3659
	4611	+	evidence confirming exemption from federal tax under Section 501 of 3660
	4612	+	the Internal Revenue Code, (7) to any carnival or amusement ride, (8) 3661
	4613	+	to any interscholastic athletic event held at the stadium facility, as 3662
	4614	+	defined in section 32-651, or (9) if the admission charge would have 3663
	4615	+	been subject to tax under the provisions of section 12-542 of the general 3664
	4616	+	statutes, revision of 1958, revised to January 1, 1999. On and after [July 3665
	4617	+	1, 2000] October 1, 2019, the tax imposed under this section on any 3666
	4618	+	motion picture show shall be [eight] six and thirty-five-hundredths per 3667
	4619	+	cent of the admission charge. [and, on and after July 1, 2001, the tax 3668
	4620	+	imposed on any such motion picture show shall be six per cent of such 3669
	4621	+	charge.] 3670
	4622	+	Sec. 58. (NEW) (Effective from passage) (a) As used in this section: 3671
	4623	+	(1) (A) "Caloric sweetener" means sugar or any form of sugar-based 3672
	4624	+	substance, including, but not limited to, sucrose, fructose, glucose, 3673
	4625	+	high-fructose corn syrup, honey or maple syrup, that adds calories to a 3674
	4626	+	beverage; 3675
	4627	+	(B) "Caloric sweetener" does not include a sugar substitute, an 3676
	4628	+	artificial sweetener approved by the federal Food and Drug 3677
	4629	+	Administration or a nonnutritive sweetener, including, but not limited 3678
	4630	+	to, aspartame, saccharin, stevia or sucralose, that does not add calories 3679
	4631	+	to a beverage; 3680
	4632	+	(2) "Milk" means a fluid dairy or nondairy beverage from an animal 3681
	4633	+	or a plant source and includes natural milk concentrate, whether or not 3682
	4634	+	reconstituted, and milk powder or evaporated milk, whether or not 3683
	4635	+	reconstituted; 3684
	4636	+	(3) "Nonalcoholic beverage" means any beverage that contains less 3685
	4637	+	than one-half of one per cent of alcohol by volume; 3686
	4638	+	(4) "Person" has the same meaning as provided in section 12-1 of the 3687
	4639	+	Governor's Bill No. 877
	4640	+
	4641	+
	4642	+
	4643	+	LCO No. 4566 125 of 138
	4644	+
	4645	+	general statutes; 3688
	4646	+	(5) "Retailer" has the same meaning as described in section 12-407 of 3689
	4647	+	the general statutes, as amended by this act; and 3690
	4648	+	(6) (A) "Sweetened beverage" means any carbonated or 3691
	4649	+	noncarbonated nonalcoholic beverage that (i) is intended for human 3692
	4650	+	consumption, (ii) is ready for consumption without further processing 3693
	4651	+	such as dilution or carbonation, and (iii) contains added caloric 3694
	4652	+	sweetener; 3695
	4653	+	(B) "Sweetened beverage" does not include (i) milk or any beverage 3696
	4654	+	in which milk is the primary ingredient or is the first listed ingredient, 3697
	4655	+	regardless of sugar content, (ii) dairy or nondairy creamer, regardless 3698
	4656	+	of sugar content, (iii) any beverage that is one hundred per cent juice, 3699
	4657	+	(iv) infant formula, (v) medical food, as defined in 21 USC 360ee, as 3700
	4658	+	amended from time to time, (vi) any product in liquid form that is (I) 3701
	4659	+	designed as oral nutrition therapy for individuals who may have a 3702
	4660	+	limited ability to absorb or metabolize dietary nutrients from 3703
	4661	+	traditional food or beverages, or (II) an oral rehydration electrolyte 3704
	4662	+	solution to prevent or treat dehydration, (vii) any product sold in 3705
	4663	+	liquid form that is designed as supplemental, meal replacement or 3706
	4664	+	sole-source nutrition and includes proteins, carbohydrates and 3707
	4665	+	multiple vitamins and minerals, (viii) any product sold in liquid form 3708
	4666	+	that is designed for use for weight reduction, or (ix) any freshly 3709
	4667	+	prepared coffee or tea beverage that is sold by a retailer for immediate 3710
	4668	+	consumption. 3711
	4669	+	(b) On and after July 1, 2020, there is imposed a tax on the sale of 3712
	4670	+	any sweetened beverage sold by a retailer to a consumer within the 3713
	4671	+	state at the rate of one and one-half cent per ounce of such beverage. 3714
	4672	+	Such tax shall be in addition to any other tax applicable to such sale 3715
	4673	+	and shall be included, for purposes of chapter 219 of the general 3716
	4674	+	statutes, in the calculation of gross receipts. Each retailer shall collect 3717
	4675	+	from the consumer the full amount of the tax imposed by this 3718
	4676	+	Governor's Bill No. 877
	4677	+
	4678	+
	4679	+
	4680	+	LCO No. 4566 126 of 138
	4681	+
	4682	+	subsection. 3719
	4683	+	(c) (1) Each retailer shall (A) file a return electronically with the 3720
	4684	+	Commissioner of Revenue Services, on or before the last day of each 3721
	4685	+	month, setting forth the amount of tax due for the preceding month 3722
	4686	+	and such additional information as the commissioner may require, and 3723
	4687	+	(B) make payment of the tax required under subsection (b) of this 3724
	4688	+	section by electronic funds transfer in the manner provided by chapter 3725
	4689	+	228g of the general statutes. 3726
	4690	+	(2) The commissioner may permit or require a retailer to file returns 3727
	4691	+	or remit the tax on other than a monthly basis if the commissioner 3728
	4692	+	deems it necessary to ensure payment or facilitate collection of the tax. 3729
	4693	+	(d) The tax due under this section shall be subject to the penalties 3730
	4694	+	and interest established under section 12-547 of the general statutes 3731
	4695	+	and the amount of such tax, penalty or interest, due and unpaid, may 3732
	4696	+	be collected under the provisions of section 12-35 of the general 3733
	4697	+	statutes. 3734
	4698	+	(e) Subject to the provisions of section 12-3a of the general statutes, 3735
	4699	+	the commissioner may waive all or part of the penalties provided 3736
	4700	+	under this section when it is proven to the commissioner's satisfaction 3737
	4701	+	that the failure to remit the tax was due to reasonable cause and was 3738
	4702	+	not intentional or due to neglect. 3739
	4703	+	(f) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 3740
	4704	+	12-555a of the general statutes shall apply to the provisions of this 3741
	4705	+	section in the same manner and with the same force and effect as if the 3742
	4706	+	language of said sections had been incorporated in full into this section 3743
	4707	+	and had expressly referred to the fee imposed under this section, 3744
	4708	+	except to the extent that any such provision is inconsistent with a 3745
	4709	+	provision of this section. 3746
	4710	+	(g) The commissioner may adopt regulations in accordance with the 3747
	4711	+	provisions of chapter 54 of the general statutes, and make rulings, not 3748
	4712	+	Governor's Bill No. 877
	4713	+
	4714	+
	4715	+
	4716	+	LCO No. 4566 127 of 138
	4717	+
	4718	+	inconsistent with law, to carry into effect the provisions of this section, 3749
	4719	+	which regulations or rulings, when reasonably designed to carry out 3750
	4720	+	the intent and purpose of this section, shall be prima facie evidence of 3751
	4721	+	its proper interpretation. 3752
	4722	+	(h) At the close of each fiscal year commencing with the fiscal year 3753
	4723	+	ending June 30, 2021, the Comptroller is authorized to record as 3754
	4724	+	revenue for such fiscal year the amount of the tax imposed under the 3755
	4725	+	provisions of this section that is received by the commissioner not later 3756
	4726	+	than five business days from the last day of July immediately 3757
	4727	+	following the end of such fiscal year. 3758
	4728	+	Sec. 59. (Effective from passage) The Secretary of the Office of Policy 3759
	4729	+	and Management, in consultation with the Commissioners of Public 3760
	4730	+	Health and Revenue Services, shall conduct a study to define "junk 3761
	4731	+	food" and examine the administrative feasibility of imposing a tax on 3762
	4732	+	such junk food. Not later than January 1, 2020, the secretary shall 3763
	4733	+	submit a report, in accordance with the provisions of section 11-4a of 3764
	4734	+	the general statutes, of the results of such study to the joint standing 3765
	4735	+	committees of the General Assembly having cognizance of matters 3766
	4736	+	relating to public health and finance and revenue. 3767
	4737	+	Sec. 60. (NEW) (Effective October 1, 2019) (a) As used in this section: 3768
	4738	+	(1) "Single-use checkout bag" means a plastic bag with a thickness of 3769
	4739	+	less than four mils that is provided by a store to a customer at the point 3770
	4740	+	of sale. "Single-use checkout bag" does not include: (A) A compostable 3771
	4741	+	plastic bag; (B) a bag provided to contain meat, seafood, loose produce 3772
	4742	+	or other unwrapped food items; (C) a newspaper bag; or (D) a laundry 3773
	4743	+	or dry cleaning bag; 3774
	4744	+	(2) "Compostable plastic bag" means a plastic bag that (A) conforms 3775
	4745	+	to the American Society of Testing Materials (ASTM) standard D6400; 3776
	4746	+	(B) is certified and labeled as meeting the ASTM standard D6400 3777
	4747	+	standard specification by a recognized verification entity; and (C) is 3778
	4748	+	capable of undergoing biological decomposition in a compost site such 3779
	4749	+	Governor's Bill No. 877
	4750	+
	4751	+
	4752	+
	4753	+	LCO No. 4566 128 of 138
	4754	+
	4755	+	that the material breaks down into carbon dioxide, water, inorganic 3780
	4756	+	compounds and biomass at a rate consistent with known compostable 3781
	4757	+	materials; and 3782
	4758	+	(3) "Store" means any retailer, as defined in section 12-407 of the 3783
	4759	+	general statutes, as amended by this act, that maintains a retail store 3784
	4760	+	within the state and sells tangible personal property directly to the 3785
	4761	+	public. 3786
	4762	+	(b) Each store shall charge a fee of ten cents for each single-use 3787
	4763	+	checkout bag provided to a customer at the point of sale. The store 3788
	4764	+	shall indicate the number of single-use checkout bags provided and 3789
	4765	+	the total amount of the fee charged on any transaction receipt provided 3790
	4766	+	to a customer. Any fees collected pursuant to this subsection shall be 3791
	4767	+	excluded from gross receipts under chapter 219 of the general statutes. 3792
	4768	+	(c) Each store shall report all fees collected pursuant to subsection 3793
	4769	+	(b) of this section to the Commissioner of Revenue Services with its 3794
	4770	+	return due under section 12-414 of the general statutes and remit 3795
	4771	+	payment at the same time and in the same form and manner required 3796
	4772	+	under 12-414 of the general statutes. 3797
	4773	+	(d) Any fees due and unpaid under this section shall be subject to 3798
	4774	+	the penalties and interest established under section 12-419 of the 3799
	4775	+	general statutes and the amount of such fee, penalty or interest, due 3800
	4776	+	and unpaid, may be collected under the provisions of section 12-35 of 3801
	4777	+	the general statutes as if they were taxes due to the state. 3802
	4778	+	(e) The provisions of sections 12-415, 12-416 and 12-421 to 12-428, 3803
	4779	+	inclusive, of the general statutes shall apply to the provisions of this 3804
	4780	+	section in the same manner and with the same force and effect as if the 3805
	4781	+	language of said sections had been incorporated in full into this section 3806
	4782	+	and had expressly referred to the fee imposed under this section, 3807
	4783	+	except to the extent that any such provision is inconsistent with a 3808
	4784	+	provision of this section. 3809
	4785	+	Governor's Bill No. 877
	4786	+
	4787	+
	4788	+
	4789	+	LCO No. 4566 129 of 138
	4790	+
	4791	+	(f) The Commissioner of Revenue Services, in consultation with the 3810
	4792	+	Commissioner of Energy and Environmental Protection, may adopt 3811
	4793	+	regulations in accordance with the provisions of chapter 54 of the 3812
	4794	+	general statutes, to carry out the provisions of this section. 3813
	4795	+	(g) At the close of each fiscal year commencing with the fiscal year 3814
	4796	+	ending June 30, 2020, the Comptroller is authorized to record as 3815
	4797	+	revenue for such fiscal year the amount of the fee imposed under the 3816
	4798	+	provisions of this section that is received by the Commissioner of 3817
	4799	+	Revenue Services not later than five business days from the last day of 3818
	4800	+	July immediately following the end of such fiscal year. 3819
	4801	+	Sec. 61. Subsection (a) of section 34-38n of the general statutes is 3820
	4802	+	repealed and the following is substituted in lieu thereof (Effective July 3821
	4803	+	1, 2019): 3822
	4804	+	(a) The Secretary of the State shall receive, for filing any document 3823
	4805	+	or certificate required to be filed under sections 34-10, 34-13a, 34-13e, 3824
	4806	+	34-32, 34-32a, 34-32c, 34-38g and 34-38s, the following fees: (1) For 3825
	4807	+	reservation or cancellation of reservation of name, sixty dollars; (2) for 3826
	4808	+	a certificate of limited partnership and appointment of statutory agent, 3827
	4809	+	one hundred twenty dollars; (3) for a certificate of amendment, one 3828
	4810	+	hundred twenty dollars; (4) for a certificate of merger or consolidation, 3829
	4811	+	sixty dollars; (5) for a certificate of registration, one hundred twenty 3830
	4812	+	dollars; (6) for a change of agent or change of address of agent, twenty 3831
	4813	+	dollars; (7) for a certificate of reinstatement, one hundred twenty 3832
	4814	+	dollars; and (8) for an annual report, [twenty] one hundred dollars. 3833
	4815	+	Sec. 62. Subsection (a) of section 34-243u of the general statutes is 3834
	4816	+	repealed and the following is substituted in lieu thereof (Effective July 3835
	4817	+	1, 2019): 3836
	4818	+	(a) Fees for filing documents and issuing certificates: (1) Filing an 3837
	4819	+	application to reserve a limited liability company name or to cancel a 3838
	4820	+	reserved limited liability company name, sixty dollars; (2) filing a 3839
	4821	+	transfer of reserved limited liability company name, sixty dollars; (3) 3840
	4822	+	Governor's Bill No. 877
	4823	+
	4824	+
	4825	+
	4826	+	LCO No. 4566 130 of 138
	4827	+
	4828	+	filing a certificate of organization, including appointment of registered 3841
	4829	+	agent, one hundred twenty dollars; (4) filing a change of address of 3842
	4830	+	agent certificate or change of agent certificate, fifty dollars; (5) filing a 3843
	4831	+	notice of resignation of registered agent, fifty dollars; (6) filing an 3844
	4832	+	amendment to certificate of organization, one hundred twenty dollars; 3845
	4833	+	(7) filing a restated certificate of organization, one hundred twenty 3846
	4834	+	dollars; (8) filing a certificate of merger, sixty dollars; (9) filing a 3847
	4835	+	certificate of interest exchange, sixty dollars; (10) filing a certificate of 3848
	4836	+	abandonment, fifty dollars; (11) filing a certificate of reinstatement, one 3849
	4837	+	hundred twenty dollars; (12) filing a foreign registration certificate by a 3850
	4838	+	foreign limited liability company to transact business in this state, one 3851
	4839	+	hundred twenty dollars; (13) filing an application of foreign limited 3852
	4840	+	liability company for amended foreign registration certificate, one 3853
	4841	+	hundred twenty dollars; (14) filing a certificate of withdrawal of 3854
	4842	+	registration under section 34-275h, one hundred twenty dollars; (15) 3855
	4843	+	filing an annual report, [twenty] one hundred dollars; (16) filing an 3856
	4844	+	interim notice of change of manager or member, twenty dollars; (17) 3857
	4845	+	filing a registration of name or a renewal of registration of name, sixty 3858
	4846	+	dollars; (18) filing a statement of correction, one hundred dollars; and 3859
	4847	+	(19) filing a transfer of registration, sixty dollars plus the qualification 3860
	4848	+	fee. 3861
	4849	+	Sec. 63. Subsection (a) of section 34-413 of the general statutes is 3862
	4850	+	repealed and the following is substituted in lieu thereof (Effective July 3863
	4851	+	1, 2019): 3864
	4852	+	(a) Fees for filing documents and processing certificates: (1) Filing 3865
	4853	+	application to reserve a registered limited liability partnership name or 3866
	4854	+	to cancel a reserved limited liability partnership name, sixty dollars; (2) 3867
	4855	+	filing transfer of reserved registered limited liability partnership name, 3868
	4856	+	sixty dollars; (3) filing change of address of statutory agent or change 3869
	4857	+	of statutory agent, fifty dollars; (4) filing certificate of limited liability 3870
	4858	+	partnership, one hundred twenty dollars; (5) filing amendment to 3871
	4859	+	certificate of limited liability partnership, one hundred twenty dollars; 3872
	4860	+	(6) filing certificate of authority to transact business in this state, 3873
	4861	+	Governor's Bill No. 877
	4862	+
	4863	+
	4864	+
	4865	+	LCO No. 4566 131 of 138
	4866	+
	4867	+	including appointment of statutory agent, one hundred twenty dollars; 3874
	4868	+	(7) filing amendment to certificate of authority to transact business in 3875
	4869	+	this state, one hundred twenty dollars; (8) filing an annual report, 3876
	4870	+	[twenty] one hundred dollars; (9) filing statement of merger, sixty 3877
	4871	+	dollars; and (10) filing certificate of reinstatement, one hundred twenty 3878
	4872	+	dollars. 3879
	4873	+	Sec. 64. Subsection (a) of section 19a-7p of the general statutes is 3880
	4874	+	repealed and the following is substituted in lieu thereof (Effective July 3881
	4875	+	1, 2019): 3882
	4876	+	(a) Not later than September first, annually, the Secretary of the 3883
	4877	+	Office of Policy and Management, in consultation with the 3884
	4878	+	Commissioner of Public Health, shall (1) determine the amounts 3885
	4879	+	appropriated for the syringe services program, children's health 3886
	4880	+	initiatives, AIDS services, breast and cervical cancer detection and 3887
	4881	+	treatment, x-ray screening and tuberculosis care, and sexually 3888
	4882	+	transmitted disease control; and (2) inform the Insurance 3889
	4883	+	Commissioner of such amounts. 3890
	4884	+	Sec. 65. (Effective July 1, 2019) Not later than June 30, 2020, the 3891
	4885	+	Comptroller may transfer up to $20,000,000 of the resources of the 3892
	4886	+	Special Transportation Fund for the fiscal year ending June 30, 2020, to 3893
	4887	+	be accounted for as revenue of the Special Transportation Fund for the 3894
	4888	+	fiscal year ending June 30, 2021. 3895
	4889	+	Sec. 66. Subdivision (1) of subsection (a) of section 12-217 of the 3896
	4890	+	general statutes is repealed and the following is substituted in lieu 3897
	4891	+	thereof (Effective from passage): 3898
	4892	+	(a) (1) In arriving at net income as defined in section 12-213, whether 3899
	4893	+	or not the taxpayer is taxable under the federal corporation net income 3900
	4894	+	tax, there shall be deducted from gross income, (A) all items deductible 3901
	4895	+	under the Internal Revenue Code effective and in force on the last day 3902
	4896	+	of the income year except (i) any taxes imposed under the provisions 3903
	4897	+	of this chapter which are paid or accrued in the income year and in the 3904
	4898	+	Governor's Bill No. 877
	4899	+
	4900	+
	4901	+
	4902	+	LCO No. 4566 132 of 138
	4903	+
	4904	+	income year commencing January 1, 1989, and thereafter, any taxes in 3905
	4905	+	any state of the United States or any political subdivision of such state, 3906
	4906	+	or the District of Columbia, imposed on or measured by the income or 3907
	4907	+	profits of a corporation which are paid or accrued in the income year, 3908
	4908	+	(ii) deductions for depreciation, which shall be allowed as provided in 3909
	4909	+	subsection (b) of this section, (iii) deductions for qualified domestic 3910
	4910	+	production activities income, as provided in Section 199 of the Internal 3911
	4911	+	Revenue Code, and (iv) in the case of any captive real estate 3912
	4912	+	investment trust, the deduction for dividends paid provided under 3913
	4913	+	Section 857(b)(2) of the Internal Revenue Code, and (B) additionally, in 3914
	4914	+	the case of a regulated investment company, the sum of (i) the exempt-3915
	4915	+	interest dividends, as defined in the Internal Revenue Code, and (ii) 3916
	4916	+	expenses, bond premium, and interest related to tax-exempt income 3917
	4917	+	that are disallowed as deductions under the Internal Revenue Code, 3918
	4918	+	and (C) in the case of a taxpayer maintaining an international banking 3919
	4919	+	facility as defined in the laws of the United States or the regulations of 3920
	4920	+	the Board of Governors of the Federal Reserve System, as either may 3921
	4921	+	be amended from time to time, the gross income attributable to the 3922
	4922	+	international banking facility, provided, no expense or loss attributable 3923
	4923	+	to the international banking facility shall be a deduction under any 3924
	4924	+	provision of this section, and (D) additionally, in the case of all 3925
	4925	+	taxpayers, all dividends as defined in the Internal Revenue Code 3926
	4926	+	effective and in force on the last day of the income year not otherwise 3927
	4927	+	deducted from gross income, including dividends received from a 3928
	4928	+	DISC or former DISC as defined in Section 992 of the Internal Revenue 3929
	4929	+	Code and dividends deemed to have been distributed by a DISC or 3930
	4930	+	former DISC as provided in Section 995 of said Internal Revenue Code, 3931
	4931	+	other than thirty per cent of dividends received from a domestic 3932
	4932	+	corporation in which the taxpayer owns less than twenty per cent of 3933
	4933	+	the total voting power and value of the stock of such corporation, and 3934
	4934	+	(E) additionally, in the case of all taxpayers, the value of any capital 3935
	4935	+	gain realized from the sale of any land, or interest in land, to the state, 3936
	4936	+	any political subdivision of the state, or to any nonprofit land 3937
	4937	+	conservation organization where such land is to be permanently 3938
	4938	+	Governor's Bill No. 877
	4939	+
	4940	+
	4941	+
	4942	+	LCO No. 4566 133 of 138
	4943	+
	4944	+	preserved as protected open space or to a water company, as defined 3939
	4945	+	in section 25-32a, where such land is to be permanently preserved as 3940
	4946	+	protected open space or as Class I or Class II water company land, and 3941
	4947	+	(F) in the case of manufacturers, the amount of any contribution to a 3942
	4948	+	manufacturing reinvestment account established pursuant to section 3943
	4949	+	32-9zz in the income year that such contribution is made to the extent 3944
	4950	+	not deductible for federal income tax purposes, [(G) additionally, to 3945
	4951	+	the extent allowable under subsection (g) of section 32-776, the amount 3946
	4952	+	paid by a 7/7 participant, as defined in section 32-776, for the 3947
	4953	+	remediation of a brownfield,] and [(H)] (G) the amount of any 3948
	4954	+	contribution made on or after December 23, 2017, by the state of 3949
	4955	+	Connecticut or a political subdivision thereof to the extent included in 3950
	4956	+	a company's gross income under Section 118(b)(2) of the Internal 3951
	4957	+	Revenue Code. 3952
	4958	+	Sec. 67. Sections 12-704f and 32-776 of the general statutes are 3953
	4959	+	repealed. (Effective from passage and applicable to taxable years commencing 3954
	4960	+	on or after January 1, 2019) 3955
	4961	+	Sec. 68. Section 12-407e of the general statutes is repealed. (Effective 3956
	4962	+	July 1, 2019) 3957
	4963	+	Sec. 69. Subdivisions (91), (96), (102), (105), (108), (109), (114) and 3958
	4964	+	(121) of section 12-412 of the general statutes are repealed. (Effective 3959
	4965	+	January 1, 2020) 3960
3768	4966		This act shall take effect as follows and shall amend the following
3769	4967		sections:
3770	4968
3771		-	Section 1 from passage New section
3772		-	Sec. 2 from passage and
	4969	+	Section 1 from passage and
	4970	+	applicable to taxable years
	4971	+	commencing on or after
	4972	+	January 1, 2023
	4973	+	New section
	4974	+	Sec. 2 from passage 12-704c
	4975	+	Governor's Bill No. 877
	4976	+
	4977	+
	4978	+
	4979	+	LCO No. 4566 134 of 138
	4980	+
	4981	+	Sec. 3 from passage and
3773	4982		applicable to taxable years
3774	4983		commencing on or after
3775	4984		January 1, 2019
3776	4985		12-701(a)(20)(B)
3777		-	Sec. 3 January 1, 2020 New section
3778		-	Sec. 4 from passage and
	4986	+	Sec. 4 from passage 12-701
	4987	+	Sec. 5 from passage and
	4988	+	applicable to income years
	4989	+	commencing on or after
	4990	+	January 1, 2019
	4991	+	12-214(b)(8)
	4992	+	Sec. 6 from passage 12-214
	4993	+	Sec. 7 from passage and
	4994	+	applicable to taxable years
	4995	+	commencing on or after
	4996	+	January 1, 2019
	4997	+	12-284b(b)
	4998	+	Sec. 8 from passage and
	4999	+	applicable to taxable years
	5000	+	commencing on or after
	5001	+	January 1, 2019
	5002	+	12-217jj(e)(2)
	5003	+	Sec. 9 from passage and
3779	5004		applicable to gifts made on
3780	5005		or after January 1, 2019
3781	5006		12-640
3782		-	Sec. 5 from passage 12-642
3783		-	Sec. 6 from passage and
	5007	+	Sec. 10 from passage 12-642
	5008	+	Sec. 11 from passage and
3784	5009		applicable to estates of
3785	5010		decedents dying on or after
3786	5011		January 1, 2019
3787	5012		12-643(3)
3788		-	Sec. 7 from passage and
	5013	+	Sec. 12 from passage and
3789	5014		applicable to estates of
3790	5015		decedents dying on or after
3791	5016		January 1, 2019
3792		-	12-391(c) to (e)
3793		-	Sec. 8 July 1, 2019, and
	5017	+	12-391(a) to (e)
	5018	+	Sec. 13 from passage and
	5019	+	applicable to estates of
	5020	+	decedents dying on or after
	5021	+	January 1, 2019
	5022	+	12-392(a) and (b)
	5023	+	Sec. 14 July 1, 2019, and
3794	5024		applicable to sales
3795	5025		occurring on or after July
3796	5026		1, 2019
3797		-	12-408(1)(L)
3798		-	Sec. 9 July 1, 2019, and
3799		-	applicable to sales
3800		-	occurring on or after July
3801		-	1, 2019
3802		-	12-411(1)(K)
3803		-	Sec. 10 October 1, 2019, and
3804		-	applicable to sales
3805		-	occurring on or after
3806		-	October 1, 2019
3807		-	12-407(a)(13) Substitute Bill No. 877
3808		-
3809		-
3810		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
3811		-	R01-SB.docx }
3812		-	102 of 104
3813		-
3814		-	Sec. 11 October 1, 2019, and
3815		-	applicable to sales
3816		-	occurring on or after
3817		-	October 1, 2019
3818		-	12-407(a)
3819		-	Sec. 12 October 1, 2019, and
3820		-	applicable to sales
3821		-	occurring on or after
3822		-	October 1, 2019
3823		-	12-410(5)
3824		-	Sec. 13 October 1, 2019, and
3825		-	applicable to sales
3826		-	occurring on or after
3827		-	October 1, 2019
3828		-	12-407(a)(37)
3829		-	Sec. 14 from passage 13b-121(b) and (c)
	5027	+	12-408(1)
	5028	+	Governor's Bill No. 877
	5029	+
	5030	+
	5031	+
	5032	+	LCO No. 4566 135 of 138
	5033	+
3830	5034		Sec. 15 January 1, 2020, and
3831	5035		applicable to sales
3832	5036		occurring on or after
3833	5037		January 1, 2020
3834	5038		12-408(1)
3835		-	Sec. 16 ~~January~~ 1, ~~2020~~, and
	5039	+	Sec. 16 July 1, 2019, and
3836	5040		applicable to sales
3837		-	occurring on or after
3838		-	~~January~~ 1, ~~2020~~
	5041	+	occurring on or after July
	5042	+	1, 2019
3839	5043		12-411(1)
3840	5044		Sec. 17 January 1, 2020, and
3841	5045		applicable to sales
3842	5046		occurring on or after
3843	5047		January 1, 2020
	5048	+	12-411(1)
	5049	+	Sec. 18 October 1, 2019, and
	5050	+	applicable to sales
	5051	+	occurring on or after
	5052	+	October 1, 2019
	5053	+	12-407(a)(2)(M)
	5054	+	Sec. 19 October 1, 2019, and
	5055	+	applicable to sales
	5056	+	occurring on or after
	5057	+	October 1, 2019
	5058	+	12-407(a)(13)
	5059	+	Sec. 20 October 1, 2019, and
	5060	+	applicable to sales
	5061	+	occurring on or after
	5062	+	October 1, 2019
	5063	+	12-407(a)
	5064	+	Sec. 21 October 1, 2019, and
	5065	+	applicable to sales
	5066	+	occurring on or after
	5067	+	October 1, 2019
	5068	+	12-407(a)(37)(A)
	5069	+	Sec. 22 January 1, 2020, and
	5070	+	applicable to sales
	5071	+	occurring on or after
	5072	+	January 1, 2020
3844	5073		12-407(a)(37)
3845		-	Sec. 18 January 1, 2020, and
	5074	+	Sec. 23 January 1, 2020, and
	5075	+	applicable to sales
	5076	+	occurring on or after
	5077	+	January 1, 2020
	5078	+	12-407(a)(2)(H)
	5079	+	Sec. 24 January 1, 2020, and
	5080	+	applicable to sales
	5081	+	occurring on or after
	5082	+	January 1, 2020
	5083	+	12-407(a)(3)(A)
	5084	+	Governor's Bill No. 877
	5085	+
	5086	+
	5087	+
	5088	+	LCO No. 4566 136 of 138
	5089	+
	5090	+	Sec. 25 January 1, 2020, and
	5091	+	applicable to sales
	5092	+	occurring on or after
	5093	+	January 1, 2020
	5094	+	12-407(a)(7)
	5095	+	Sec. 26 January 1, 2020, and
	5096	+	applicable to sales
	5097	+	occurring on or after
	5098	+	January 1, 2020
	5099	+	12-407(a)(8)(A)
	5100	+	Sec. 27 January 1, 2020, and
	5101	+	applicable to sales
	5102	+	occurring on or after
	5103	+	January 1, 2020
	5104	+	12-407(a)(9)(A)
	5105	+	Sec. 28 January 1, 2020, and
	5106	+	applicable to sales
	5107	+	occurring on or after
	5108	+	January 1, 2020
	5109	+	12-407(a)(15)(A)
	5110	+	Sec. 29 January 1, 2020, and
	5111	+	applicable to sales
	5112	+	occurring on or after
	5113	+	January 1, 2020
	5114	+	12-407(a)(18) and (19)
	5115	+	Sec. 30 January 1, 2020, and
	5116	+	applicable to sales
	5117	+	occurring on or after
	5118	+	January 1, 2020
	5119	+	12-412(120)
	5120	+	Sec. 31 January 1, 2020, and
	5121	+	applicable to sales
	5122	+	occurring on or after
	5123	+	January 1, 2020
	5124	+	12-412(123)
	5125	+	Sec. 32 January 1, 2020, and
3846	5126		applicable to sales
3847	5127		occurring on or after
3848	5128		January 1, 2020
3849	5129		12-412
3850		-	Sec. 19 July 1, 2019 New section
3851		-	Sec. 20 from passage 12-704c
3852		-	Sec. 21 July 1, 2019 12-498
3853		-	Sec. 22 from passage and
	5130	+	Sec. 33 July 1, 2019, and
	5131	+	applicable to sales
	5132	+	occurring on or after July
	5133	+	1, 2019
	5134	+	12-430(4)
	5135	+	Sec. 34 July 1, 2019 4-66o
	5136	+	Sec. 35 from passage 12-263p
	5137	+	Sec. 36 from passage 12-263q
	5138	+	Sec. 37 from passage 12-263r(a)
	5139	+	Sec. 38 from passage 12-263i
	5140	+	Governor's Bill No. 877
	5141	+
	5142	+
	5143	+
	5144	+	LCO No. 4566 137 of 138
	5145	+
	5146	+	Sec. 39 July 1, 2019, and
	5147	+	applicable to conveyances
	5148	+	occurring on or after July
	5149	+	1, 2019
	5150	+	12-494(b)
	5151	+	Sec. 40 from passage and
3854	5152		applicable to taxable years
3855	5153		commencing on or after
3856	5154		January 1, 2019
3857		-	12-284b(b)
3858		-	Sec. 23 from passage and
3859		-	applicable to taxable years
3860		-	commencing on or after
3861		-	January 1, 2019
3862		-	12-217jj(e)(2)
3863		-	Sec. 24 from passage 12-219(a)(1) Substitute Bill No. 877
3864		-
3865		-
3866		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
3867		-	R01-SB.docx }
3868		-	103 of 104
3869		-
3870		-	Sec. 25 from passage and
3871		-	applicable to income years
3872		-	commencing on or after
3873		-	January 1, 2019
3874		-	12-214(b)(8)
3875		-	Sec. 26 from passage 12-214
3876		-	Sec. 27 from passage and
3877		-	applicable to income years
3878		-	commencing on or after
3879		-	January 1, 2019
3880		-	12-219(b)(8)
3881		-	Sec. 28 from passage 12-219
3882		-	Sec. 29 from passage, and
3883		-	applicable to income years
3884		-	commencing on or after
3885		-	January 1, 2019
3886		-	12-218e(k)(1)
3887		-	Sec. 30 July 1, 2019 34-38n(a)
3888		-	Sec. 31 July 1, 2019 34-243u(a)
3889		-	Sec. 32 July 1, 2019 34-413(a)
3890		-	Sec. 33 July 1, 2019, and
3891		-	applicable to income and
3892		-	taxable years commencing
3893		-	on or after January 1, 2019
3894		-	12-704d
3895		-	Sec. 34 from passage and
	5155	+	12-217n(d)
	5156	+	Sec. 41 from passage and
3896	5157		applicable to income years
3897	5158		commencing on or after
3898	5159		January 1, 2019
3899	5160		12-217zz(a)
3900		-	Sec. 35 from passage and
	5161	+	Sec. 42 from passage and
3901	5162		applicable to quarterly
3902	5163		periods commencing on or
3903	5164		after July 1, 2019
3904	5165		New section
3905		-	Sec. 36 July 1, 2019 12-264(a)
3906		-	Sec. 37 July 1, 2019 12-326a(b)
3907		-	Sec. 38 October 1, 2019, and
	5166	+	Sec. 43 from passage and
	5167	+	applicable to quarterly
	5168	+	periods commencing on or
	5169	+	after July 1, 2019
	5170	+	New section
	5171	+	Sec. 44 from passage and
	5172	+	applicable to quarterly
	5173	+	periods commencing on or
	5174	+	after July 1, 2019
	5175	+	New section
	5176	+	Sec. 45 July 1, 2019 12-264(a)
	5177	+	Sec. 46 October 1, 2019, and
3908	5178		applicable to sales
3909	5179		occurring on or after
3910	5180		October 1, 2019
3911	5181		New section
3912		-	Sec. 39 July 1, 2019, and
3913		-	applicable to sales
3914		-	occurring on or after July
3915		-	1, 2019
3916		-	12-435
3917		-	Sec. 40 July 1, 2019 New section Substitute Bill No. 877
3918		-
3919		-
3920		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00877-
3921		-	R01-SB.docx }
3922		-	104 of 104
3923		-
3924		-	Sec. 41 July 1, 2019, and
3925		-	applicable to sales made on
3926		-	or after July 1, 2019
3927		-	12-541
3928		-	Sec. 42 July 1, 2019 New section
3929		-	Sec. 43 from passage 12-263q
3930		-	Sec. 44 from passage 12-263r(a)
3931		-	Sec. 45 October 1, 2019 12-571
3932		-	Sec. 46 October 1, 2019 New section
3933		-	Sec. 47 from passage New section
3934		-	Sec. 48 July 1, 2019 New section
3935		-	Sec. 49 from passage New section
3936		-	Sec. 50 from passage 12-217(a)(1)
3937		-	Sec. 51 from passage and
	5182	+	Sec. 47 October 1, 2019 12-286a(a)
	5183	+	Sec. 48 October 1, 2019 12-295(a)
	5184	+	Sec. 49 October 1, 2019 12-295a(a)
	5185	+	Sec. 50 October 1, 2019 12-314a
	5186	+	Sec. 51 October 1, 2019 53-344
	5187	+	Sec. 52 October 1, 2019 53-344b
	5188	+	Sec. 53 October 1, 2019 21a-416
	5189	+	Sec. 54 July 1, 2019 12-435
	5190	+	Sec. 55 October 1, 2019 22a-243
	5191	+	Sec. 56 October 1, 2019 22a-244
	5192	+	Sec. 57 October 1, 2019 12-541(a)
	5193	+	Sec. 58 from passage New section
	5194	+	Governor's Bill No. 877
	5195	+
	5196	+
	5197	+
	5198	+	LCO No. 4566 138 of 138
	5199	+
	5200	+	Sec. 59 from passage New section
	5201	+	Sec. 60 October 1, 2019 New section
	5202	+	Sec. 61 July 1, 2019 34-38n(a)
	5203	+	Sec. 62 July 1, 2019 34-243u(a)
	5204	+	Sec. 63 July 1, 2019 34-413(a)
	5205	+	Sec. 64 July 1, 2019 19a-7p(a)
	5206	+	Sec. 65 July 1, 2019 New section
	5207	+	Sec. 66 from passage 12-217(a)(1)
	5208	+	Sec. 67 from passage and
3938	5209		applicable to taxable years
3939	5210		commencing on or after
3940	5211		January 1, 2019
3941	5212		Repealer section
3942		-	Sec. 52 July 1, 2019 Repealer section
3943		-	Sec. 53 January 1, 2020 Repealer section
3944		-
3945		-	FIN Joint Favorable Subst.
	5213	+	Sec. 68 July 1, 2019 Repealer section
	5214	+	Sec. 69 January 1, 2020 Repealer section
	5215	+
	5216	+	Statement of Purpose:
	5217	+	To implement the Governor's budget recommendations.
	5218	+
	5219	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	5220	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	5221	+	not underlined.]
3946	5222