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General Assembly Raised Bill No. 1090
January Session, 2019
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Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING TH E DEPARTMENT OF REVENUE SERVICES'
RECOMMENDATIONS FOR TAX ADMINISTRATION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-39h of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
Notwithstanding any instructions by the payor to the contrary, any 3
partial payment against any tax outstanding shall be applied by the 4
Commissioner of Revenue Services first to any penalties unless a 5
waiver of penalty has been requested and approved in accordance 6
with the general statutes, and (1) for periods ending on or after July 1, 7
2018, and prior to December 31, 2019, any amount in excess of such 8
penalty shall be applied first to such tax and then to the interest on 9
such tax, and (2) for periods ending on and after December 31, 2019, 10
any amount in excess of such penalty shall be applied first to interest 11
on such tax and then to the tax. 12
Sec. 2. Subsection (b) of section 12-687 of the general statutes is 13
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repealed and the following is substituted in lieu thereof (Effective from 14
passage): 15
(b) Where any tax payment is required to be made by electronic 16
funds transfer, such payment shall be treated as a tax payment not 17
made in a timely manner if the electronic funds transfer for the amount 18
of the tax payment is not initiated on or before the due date thereof. 19
[Any] (1) For periods ending prior to December 31, 2019, any tax 20
payment treated under this subsection as a tax payment not made in a 21
timely manner shall be subject to interest in accordance with the 22
applicable provisions of the general statutes, and a penalty that shall 23
be equal to two per cent of the tax payment required to be made by 24
electronic funds transfer, if such failure to pay by electronic funds 25
transfer is for not more than five days, five per cent of the tax payment 26
required to be made by electronic funds transfer, if such failure to pay 27
by electronic funds transfer is for more than five days but not more 28
than fifteen days, and ten per cent of the tax payment required to be 29
made by electronic funds transfer, if such failure to pay by electronic 30
funds transfer is for more than fifteen days; and (2) for periods ending 31
on and after December 31, 2019, any tax payment treated under this 32
subsection as a tax payment not made in a timely manner shall be 33
subject to interest and penalty in accordance with the applicable 34
provisions of the general statutes. 35
Sec. 3. (NEW) (Effective July 1, 2019, and applicable to refund claims 36
received on or after July 1, 2019) Notwithstanding any other provision of 37
law, no refund shall be made to a person of tax collected from a 38
customer of such person until the person has established to the 39
satisfaction of the Commissioner of Revenue Services that the amount 40
of tax for which the refund is being claimed has been or will be repaid 41
to the customer. 42
Sec. 4. Subdivision (2) of subsection (e) of section 12-391 of the 43
general statutes is repealed and the following is substituted in lieu 44
thereof (Effective from passage): 45
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(2) (A) For a nonresident estate, the state shall have the power to 46
levy the estate tax upon all real property situated in this state and 47
tangible personal property having an actual situs in this state. 48
(B) For real property and tangible personal property owned by a 49
pass-through entity, the entity shall be disregarded for estate tax 50
purposes and such property shall be treated as personally owned by 51
the decedent if (i) the entity does not actively carry on a business for 52
the purpose of profit and gain, (ii) the ownership of the property by 53
the entity was not for a valid business purpose, or (iii) the property 54
was acquired by other than a bona fide sale for full and adequate 55
consideration and the decedent retained a power with respect to or 56
interest in the property that would bring the real property situated in 57
this state or the tangible personal property having an actual situs in the 58
state within the decedent's federal gross estate. For purposes of this 59
subparagraph, "pass-through entity" means a partnership or an S 60
corporation, as those terms are defined in section 12-699, or a single 61
member limited liability company that is disregarded for federal 62
income tax purposes. 63
(C) The state is permitted to calculate the estate tax and levy said tax 64
to the fullest extent permitted by the Constitution of the United States. 65
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 12-39h
Sec. 2 from passage 12-687(b)
Sec. 3 July 1, 2019, and
applicable to refund claims
received on or after July 1,
2019
New section
Sec. 4 from passage 12-391(e)(2)
Statement of Purpose:
To implement the Department of Revenue Services' recommendations
for tax administration.
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[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]