| 19 | | - | Section 1. (Effective from passage) The chairpersons and ranking 1 |
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| 20 | | - | members of the joint standing committee of the General Assembly 2 |
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| 21 | | - | having cognizance of matters relating to finance, revenue and bonding 3 |
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| 22 | | - | shall study certain revenues and tax policies of the state, as selected by 4 |
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| 23 | | - | said chairpersons and ranking members. Not later than January 1, 5 |
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| 24 | | - | 2020, said chairpersons and ranking members shall jointly submit a 6 |
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| 25 | | - | report, in accordance with the provisions of section 11-4a of the general 7 |
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| 26 | | - | statutes, to the General Assembly, summarizing the results of such 8 |
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| 27 | | - | study. 9 |
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| 25 | + | Section 1. Section 12-39h of the general statutes is repealed and the 1 |
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| 26 | + | following is substituted in lieu thereof (Effective from passage): 2 |
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| 27 | + | Notwithstanding any instructions by the payor to the contrary, any 3 |
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| 28 | + | partial payment against any tax outstanding shall be applied by the 4 |
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| 29 | + | Commissioner of Revenue Services first to any penalties unless a 5 |
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| 30 | + | waiver of penalty has been requested and approved in accordance 6 |
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| 31 | + | with the general statutes, and (1) for periods ending on or after July 1, 7 |
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| 32 | + | 2018, and prior to December 31, 2019, any amount in excess of such 8 |
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| 33 | + | penalty shall be applied first to such tax and then to the interest on 9 |
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| 34 | + | such tax, and (2) for periods ending on and after December 31, 2019, 10 |
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| 35 | + | any amount in excess of such penalty shall be applied first to interest 11 |
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| 36 | + | on such tax and then to the tax. 12 |
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| 37 | + | Sec. 2. Subsection (b) of section 12-687 of the general statutes is 13 |
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| 38 | + | Raised Bill No. 1090 |
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| 39 | + | |
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| 40 | + | |
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| 41 | + | |
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| 42 | + | LCO No. 5678 2 of 4 |
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| 43 | + | |
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| 44 | + | repealed and the following is substituted in lieu thereof (Effective from 14 |
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| 45 | + | passage): 15 |
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| 46 | + | (b) Where any tax payment is required to be made by electronic 16 |
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| 47 | + | funds transfer, such payment shall be treated as a tax payment not 17 |
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| 48 | + | made in a timely manner if the electronic funds transfer for the amount 18 |
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| 49 | + | of the tax payment is not initiated on or before the due date thereof. 19 |
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| 50 | + | [Any] (1) For periods ending prior to December 31, 2019, any tax 20 |
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| 51 | + | payment treated under this subsection as a tax payment not made in a 21 |
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| 52 | + | timely manner shall be subject to interest in accordance with the 22 |
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| 53 | + | applicable provisions of the general statutes, and a penalty that shall 23 |
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| 54 | + | be equal to two per cent of the tax payment required to be made by 24 |
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| 55 | + | electronic funds transfer, if such failure to pay by electronic funds 25 |
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| 56 | + | transfer is for not more than five days, five per cent of the tax payment 26 |
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| 57 | + | required to be made by electronic funds transfer, if such failure to pay 27 |
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| 58 | + | by electronic funds transfer is for more than five days but not more 28 |
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| 59 | + | than fifteen days, and ten per cent of the tax payment required to be 29 |
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| 60 | + | made by electronic funds transfer, if such failure to pay by electronic 30 |
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| 61 | + | funds transfer is for more than fifteen days; and (2) for periods ending 31 |
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| 62 | + | on and after December 31, 2019, any tax payment treated under this 32 |
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| 63 | + | subsection as a tax payment not made in a timely manner shall be 33 |
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| 64 | + | subject to interest and penalty in accordance with the applicable 34 |
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| 65 | + | provisions of the general statutes. 35 |
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| 66 | + | Sec. 3. (NEW) (Effective July 1, 2019, and applicable to refund claims 36 |
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| 67 | + | received on or after July 1, 2019) Notwithstanding any other provision of 37 |
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| 68 | + | law, no refund shall be made to a person of tax collected from a 38 |
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| 69 | + | customer of such person until the person has established to the 39 |
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| 70 | + | satisfaction of the Commissioner of Revenue Services that the amount 40 |
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| 71 | + | of tax for which the refund is being claimed has been or will be repaid 41 |
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| 72 | + | to the customer. 42 |
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| 73 | + | Sec. 4. Subdivision (2) of subsection (e) of section 12-391 of the 43 |
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| 74 | + | general statutes is repealed and the following is substituted in lieu 44 |
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| 75 | + | thereof (Effective from passage): 45 |
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| 76 | + | Raised Bill No. 1090 |
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| 77 | + | |
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| 78 | + | |
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| 79 | + | |
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| 80 | + | LCO No. 5678 3 of 4 |
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| 81 | + | |
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| 82 | + | (2) (A) For a nonresident estate, the state shall have the power to 46 |
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| 83 | + | levy the estate tax upon all real property situated in this state and 47 |
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| 84 | + | tangible personal property having an actual situs in this state. 48 |
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| 85 | + | (B) For real property and tangible personal property owned by a 49 |
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| 86 | + | pass-through entity, the entity shall be disregarded for estate tax 50 |
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| 87 | + | purposes and such property shall be treated as personally owned by 51 |
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| 88 | + | the decedent if (i) the entity does not actively carry on a business for 52 |
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| 89 | + | the purpose of profit and gain, (ii) the ownership of the property by 53 |
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| 90 | + | the entity was not for a valid business purpose, or (iii) the property 54 |
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| 91 | + | was acquired by other than a bona fide sale for full and adequate 55 |
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| 92 | + | consideration and the decedent retained a power with respect to or 56 |
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| 93 | + | interest in the property that would bring the real property situated in 57 |
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| 94 | + | this state or the tangible personal property having an actual situs in the 58 |
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| 95 | + | state within the decedent's federal gross estate. For purposes of this 59 |
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| 96 | + | subparagraph, "pass-through entity" means a partnership or an S 60 |
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| 97 | + | corporation, as those terms are defined in section 12-699, or a single 61 |
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| 98 | + | member limited liability company that is disregarded for federal 62 |
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| 99 | + | income tax purposes. 63 |
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| 100 | + | (C) The state is permitted to calculate the estate tax and levy said tax 64 |
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| 101 | + | to the fullest extent permitted by the Constitution of the United States. 65 |
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