Connecticut 2019 Regular Session

Connecticut Senate Bill SB01141 Compare Versions

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Version 2 (New)

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7		-	General Assembly ~~Substitute~~ Bill No. 1141
	5	+	General Assembly Raised Bill No. 1141
8	6		January Session, 2019
	7	+	LCO No. 7318
	8	+
	9	+
	10	+	Referred to Committee on FINANCE, REVENUE AND
	11	+	BONDING
	12	+
	13	+
	14	+	Introduced by:
	15	+	(FIN)
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13		-
14		-	AN ACT CONCERNING MU NICIPAL CAPACITY AND PROPERTY TAX
15		-	REFORM.
	20	+	AN ACT CONCERNING PR OPERTY TAX REFORM.
16	21		Be it enacted by the Senate and House of Representatives in General
17	22		Assembly convened:
18	23
19		-	Section 1. (NEW) (Effective July 1, 2019) (a) There is established a 1
20		-	fund to be known as the "Municipal Capacity Fund". The fund shall 2
21		-	contain any moneys required by law to be deposited in the fund and 3
22		-	shall be held in trust separate and apart from all other moneys, funds 4
23		-	and accounts. Any balance remaining in the fund at the end of any 5
24		-	fiscal year shall be carried forward in the fund for the fiscal year next 6
25		-	succeeding. Moneys in the fund shall be expended by the 7
26		-	Commissioner of Revenue Services in accordance with this section. 8
27		-	(b) The commissioner shall reserve five million dollars of the 9
28		-	moneys in the fund to make grants under a capacity building grant 10
29		-	program in accordance with the provisions of this subsection. 11
30		-	(1) The Secretary of the Office of Policy and Management shall 12
31		-	solicit grant proposals from regional councils of governments 13
32		-	organized under the provisions of sections 4-124i to 4-124p, inclusive, 14
33		-	of the general statutes, to provide to all members within a council's 15
34		-	planning region: (A) A program, service or function that replaces a 16
35		-	program, service or function currently performed by individual 17
36		-	members; or (B) a new program, service or function to be offered to all 18 Substitute Bill No. 1141
	24	+	Section 1. (NEW) (Effective July 1, 2019) (a) There is imposed a local 1
	25	+	sales tax at the rate of one-half of one per cent on all sales subject to the 2
	26	+	tax imposed under chapter 219 of the general statutes. Each retailer 3
	27	+	shall file returns with and make payments to the Commissioner of 4
	28	+	Revenue Services in the same form and manner as provided for the tax 5
	29	+	under said chapter. The commissioner shall deposit any local sales tax 6
	30	+	collected by the state pursuant to this section into the Municipal 7
	31	+	Capacity Fund established under section 2 of this act. 8
	32	+	(b) If any person fails to pay the amount of tax reported due on its 9
	33	+	report within the time specified under this section, there shall be 10
	34	+	imposed a penalty equal to ten per cent of such amount due and 11
	35	+	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 12
	36	+	interest at the rate of one per cent per month or fraction thereof, from 13
	37	+	the due date of such tax until the date of payment. Subject to the 14
	38	+	provisions of section 12-3a of the general statutes, the commissioner 15
	39	+	Raised Bill No. 1141
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43		-	members. Each member may elect to participate in such program, 19
44		-	service or function and shall be given the opportunity to change its 20
45		-	election at least annually while the program, service or function is in 21
46		-	effect. 22
47		-	(2) The secretary shall establish requirements of and procedures and 23
48		-	guidelines for the program, the amounts of the grants to be awarded 24
49		-	and deadlines for proposal submissions and final selection of grant 25
50		-	recipients. 26
51		-	(3) As used in this subsection, "planning region" and "member" have 27
52		-	the same meanings as provided in section 4-124i of the general 28
53		-	statutes. 29
54		-	(c) The balance remaining in the fund shall be distributed annually 30
55		-	as municipal capacity grants in accordance with the following 31
56		-	provisions: 32
57		-	(1) The Secretary of the Office of Policy and Management shall 33
58		-	calculate and publish annually a municipal fiscal capacity gap metric 34
59		-	for each municipality in the state. Such metric shall be calculated in 35
60		-	accordance with the methodologies used in the May, 2015 New 36
61		-	England Public Policy Center Research Report 15-1, multiplied by 37
62		-	minus one. 38
63		-	(2) Municipalities with a negative fiscal capacity gap metric shall be 39
64		-	eligible for a municipal capacity grant. For each eligible municipality, 40
65		-	the secretary shall calculate a remaining gap figure by (A) multiplying 41
66		-	the fiscal capacity gap metric of such municipality by the population of 42
67		-	such municipality, as estimated in the most recent State Register and 43
68		-	Manual published by the Secretary of the State, and (B) subtracting the 44
69		-	amount of noneducation municipal aid from the state for the fiscal 45
70		-	year. Grants shall be apportioned from the balance remaining in the 46
71		-	fund in proportion to each eligible municipality's remaining gap figure 47
72		-	as a fraction of the total remaining gap figures of all eligible 48
73		-	municipalities. 49 Substitute Bill No. 1141
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	45	+	may waive all or part of the penalties provided under this section 16
	46	+	when it is proven to the commissioner's satisfaction that the failure to 17
	47	+	pay any tax was due to reasonable cause and was not intentional or 18
	48	+	due to neglect. 19
	49	+	(c) Each person, other than a retailer, who is required, on behalf of 20
	50	+	such retailer, to collect, truthfully account for and pay over a tax 21
	51	+	imposed on such retailer under this section and who wilfully fails to 22
	52	+	collect, truthfully account for and pay over such tax or who wilfully 23
	53	+	attempts in any manner to evade or defeat the tax or the payment 24
	54	+	thereof, shall, in addition to other penalties provided by law, be liable 25
	55	+	for a penalty equal to the total amount of the tax evaded, or not 26
	56	+	collected, or not accounted for and paid over, including any penalty or 27
	57	+	interest attributable to such wilful failure to collect or truthfully 28
	58	+	account for and pay over such tax or such wilful attempt to evade or 29
	59	+	defeat such tax, provided such penalty shall only be imposed against 30
	60	+	such person in the event that such tax, penalty or interest cannot 31
	61	+	otherwise be collected from such retailer. The amount of such penalty 32
	62	+	with respect to which a person may be personally liable under this 33
	63	+	section shall be collected in accordance with the provisions of section 34
	64	+	12-555a of the general statutes and any amount so collected shall be 35
	65	+	allowed as a credit against the amount of such tax, penalty or interest 36
	66	+	due and owing from the retailer. The dissolution of the retailer shall 37
	67	+	not discharge any person in relation to any personal liability under this 38
	68	+	section for wilful failure to collect or truthfully account for and pay 39
	69	+	over such tax or for a wilful attempt to evade or defeat such tax prior 40
	70	+	to dissolution, except as otherwise provided in this section. For 41
	71	+	purposes of this section, "person" includes any individual, corporation, 42
	72	+	limited liability company or partnership and any officer or employee 43
	73	+	of any corporation, including a dissolved corporation, and a member 44
	74	+	or employee of any partnership or limited liability company who, as 45
	75	+	such officer, employee or member, is under a duty to file a tax return 46
	76	+	under this section on behalf of a cannabis retailer or to collect or 47
	77	+	truthfully account for and pay over a tax imposed under this section 48
	78	+	Raised Bill No. 1141
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80		-	Sec. 2. (NEW) (Effective July 1, 2019) Any taxpayer that makes an 50
81		-	investment in commercial or industrial real property that results in an 51
82		-	increase in the property's assessed value that is attributable to such 52
83		-	investment may choose one of the following options for property tax 53
84		-	relief: 54
85		-	(1) The taxpayer may claim a credit in the amount of the increase in 55
86		-	such property's assessed value that is attributable to such investment. 56
87		-	Such credit shall be allowed against the taxpayer's property tax 57
88		-	liability for the fiscal year in which such increase occurs. If the amount 58
89		-	of the credit allowed pursuant to this subdivision exceeds the 59
90		-	taxpayer's property tax liability for the fiscal year, the unused portion 60
91		-	of the credit shall be carried forward to succeeding fiscal years until 61
92		-	fully used; 62
93		-	(2) The taxpayer may elect to have the portion that is the fractional 63
94		-	increase in such property's assessment that is attributable to such 64
95		-	investment taxed at the rate of ten mills or at the rate of twenty-five 65
96		-	per cent of the current mill rate, whichever is less, for a period of seven 66
97		-	years; or 67
98		-	(3) The taxpayer may elect to have the portion that is the fractional 68
99		-	increase in such property's assessment that is attributable to such 69
100		-	investment excluded for three years from the calculation of property 70
101		-	tax, with the property tax on such portion phased in up to one 71
102		-	hundred per cent over the next four years in equal increments. 72
103		-	Sec. 3. (Effective July 1, 2019) For the fiscal years commencing July 1, 73
104		-	2019, and July 1, 2020, the Comptroller shall transfer one hundred 74
105		-	million dollars in each fiscal year from the resources of the General 75
106		-	Fund to the Municipal Capacity Fund established in section 1 of this 76
107		-	act. 77
	82	+	LCO No. 7318 3 of 6
	83	+
	84	+	on behalf of such retailer. 49
	85	+	(d) No tax credit or credits shall be allowable against the tax 50
	86	+	imposed under this section. 51
	87	+	(e) The provisions of sections 12-551 to 12-554, inclusive, and section 52
	88	+	12-555a of the general statutes shall apply to the provisions of this 53
	89	+	section in the same manner and with the same force and effect as if the 54
	90	+	language of said sections had been incorporated in full into this section 55
	91	+	and had expressly referred to the tax under this section, except to the 56
	92	+	extent that any provision is inconsistent with a provision in this 57
	93	+	section. 58
	94	+	(f) The commissioner may adopt regulations, in accordance with the 59
	95	+	provisions of chapter 54 of the general statutes, to implement the 60
	96	+	provisions of this section. 61
	97	+	(g) At the close of each fiscal year in which the tax imposed under 62
	98	+	the provisions of this section are received by the commissioner, the 63
	99	+	Comptroller is authorized to record as revenue for such fiscal year the 64
	100	+	amounts of such tax that are received by the commissioner not later 65
	101	+	than five business days from the last day of July immediately 66
	102	+	following the end of such fiscal year. 67
	103	+	Sec. 2. (NEW) (Effective July 1, 2019) (a) There is established a fund to 68
	104	+	be known as the "Municipal Capacity Fund". The fund shall contain 69
	105	+	any moneys required by law to be deposited in the fund and shall be 70
	106	+	held in trust separate and apart from all other moneys, funds and 71
	107	+	accounts. Any balance remaining in the fund at the end of any fiscal 72
	108	+	year shall be carried forward in the fund for the fiscal year next 73
	109	+	succeeding. Moneys in the fund shall be expended by the 74
	110	+	Commissioner of Revenue Services in accordance with this section. 75
	111	+	(b) The commissioner shall reserve twenty-five million dollars of the 76
	112	+	moneys in the fund to make grants under a capacity building grant 77
	113	+	program in accordance with the provisions of this subsection. 78
	114	+	Raised Bill No. 1141
	115	+
	116	+
	117	+
	118	+	LCO No. 7318 4 of 6
	119	+
	120	+	(1) The Secretary of the Office of Policy and Management shall 79
	121	+	solicit grant proposals from regional councils of governments 80
	122	+	organized under the provisions of sections 4-124i to 4-124p, inclusive, 81
	123	+	of the general statutes, to provide to all members within a council's 82
	124	+	planning region: (A) A program, service or function that replaces a 83
	125	+	program, service or function currently performed by individual 84
	126	+	members; or (B) a new program, service or function to be offered to all 85
	127	+	members. Each member may elect to participate in such program, 86
	128	+	service or function and shall be given the opportunity to change its 87
	129	+	election at least annually while the program, service or function is in 88
	130	+	effect. 89
	131	+	(2) The secretary shall establish requirements of and procedures and 90
	132	+	guidelines for the program, the amounts of the grants to be awarded 91
	133	+	and deadlines for proposal submissions and final selection of grant 92
	134	+	recipients. 93
	135	+	(3) As used in this subsection, "planning region" and "member" have 94
	136	+	the same meanings as provided in section 4-124i of the general 95
	137	+	statutes. 96
	138	+	(c) The balance remaining in the fund shall be distributed annually 97
	139	+	as municipal capacity grants in accordance with the provisions of this 98
	140	+	subsection. 99
	141	+	(1) The Secretary of the Office of Policy and Management shall 100
	142	+	calculate and publish annually a municipal fiscal capacity gap metric 101
	143	+	for each municipality in the state. Such metric shall be calculated in 102
	144	+	accordance with the methodologies used in the May, 2015 New 103
	145	+	England Public Policy Center Research Report 15-1, multiplied by 104
	146	+	minus one. 105
	147	+	(2) Municipalities with a negative fiscal capacity gap metric shall be 106
	148	+	eligible for a municipal capacity grant. For each eligible municipality, 107
	149	+	the secretary shall calculate a remaining gap figure by (A) multiplying 108
	150	+	the fiscal capacity gap metric of such municipality by the population of 109
	151	+	Raised Bill No. 1141
	152	+
	153	+
	154	+
	155	+	LCO No. 7318 5 of 6
	156	+
	157	+	such municipality, as estimated in the most recent State Register and 110
	158	+	Manual published by the Secretary of the State, and (B) subtracting the 111
	159	+	amount of noneducation municipal aid from the state for the fiscal 112
	160	+	year. Grants shall be apportioned from the balance remaining in the 113
	161	+	fund in proportion to each eligible municipality's remaining gap figure 114
	162	+	as a fraction of the total remaining gap figures of all eligible 115
	163	+	municipalities. 116
	164	+	Sec. 3. (NEW) (Effective July 1, 2019) Any taxpayer that makes an 117
	165	+	investment in commercial or industrial real property that results in an 118
	166	+	increase in the property's assessed value that is attributable to such 119
	167	+	investment may choose one of the following options for tax relief: 120
	168	+	(1) The taxpayer may claim a credit in the amount of the increase in 121
	169	+	such property's assessed value that is attributable to such investment. 122
	170	+	Such credit shall be allowed against the taxpayer's property tax 123
	171	+	liability for the income year in which such increase occurs. If the 124
	172	+	amount of the credit allowed pursuant to this subdivision exceeds the 125
	173	+	taxpayer's property tax liability for the income year, the unused 126
	174	+	portion of the credit shall be carried forward to succeeding income 127
	175	+	years until fully used; 128
	176	+	(2) The taxpayer may elect to have the portion that is the fractional 129
	177	+	increase in such property's assessment that is attributable to such 130
	178	+	investment taxed at the rate of ten mills or at the rate of twenty-five 131
	179	+	per cent of the current mill rate, whichever is less, for a period of seven 132
	180	+	years; or 133
	181	+	(3) The taxpayer may elect to have the portion that is the fractional 134
	182	+	increase in such property's assessment that is attributable to such 135
	183	+	investment excluded for three years from the calculation of property 136
	184	+	tax, with the property tax on such portion phasing up to one hundred 137
	185	+	per cent over the next four years in equal increments. 138
	186	+	Raised Bill No. 1141
	187	+
	188	+
	189	+
	190	+	LCO No. 7318 6 of 6
	191	+
108	192		This act shall take effect as follows and shall amend the following
109	193		sections:
110	194
111		-	Section 1 July 1, 2019 New section Substitute Bill No. 1141
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	195	+	Section 1 July 1, 2019 New section
118	196		Sec. 2 July 1, 2019 New section
119	197		Sec. 3 July 1, 2019 New section
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121		-	FIN Joint Favorable Subst.
	199	+	Statement of Purpose:
	200	+	To implement various initiatives to improve municipal capacity and
	201	+	establish a local sales tax and dedicate the revenue to such initiatives.
	202	+
	203	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	204	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	205	+	not underlined.]
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