LCO No. 2364 1 of 64
General Assembly Raised Bill No. 5463
February Session, 2020
LCO No. 2364
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING TH E LEGISLATIVE COMMISSIONERS'
RECOMMENDATIONS FOR MINOR AND TECHNICAL REVISIONS TO
THE TAX AND RELATED STATUTES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 12-35 of the 2020 supplement to 1
the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective October 1, 2020): 3
(a) (1) Wherever used in this chapter, unless otherwise provided, 4
"state collection agency" includes the Treasurer, the Commissioner of 5
Revenue Services and any other state official, board or commission 6
authorized by law to collect taxes payable to the state and any duly 7
appointed deputy of any such official, board or commission; "tax" 8
includes not only the principal of any tax but also all interest, penalties, 9
fees and other charges added thereto by law; and "serving officer" 10
includes any state marshal, constable or employee of such state 11
collection agency designated for such purpose by a state collection 12
agency and any person so designated by the Labor Commissioner. 13 Raised Bill No. 5463
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(2) Upon the failure of any person to pay any tax, except any tax 14
under chapter 216, due the state within thirty days from its due date, the 15
state collection agency charged by law with its collection shall add 16
thereto such penalty or interest or both as are prescribed by law, 17
provided, (A) if any statutory penalty is not specified, there may be 18
added a penalty in the amount of ten per cent of the whole or such part 19
of the principal of the tax as is unpaid or fifty dollars, whichever amount 20
is greater, and [provided,] (B) if any statutory interest is not specified, 21
there shall be added interest at the rate of one per cent of the whole or 22
such part of the principal of the tax as is unpaid for each month or 23
fraction thereof, from the due date of such tax to the date of payment. 24
(3) Upon the failure of any person to pay any tax, except any tax 25
under chapter 216, due within thirty days of its due date, the state 26
collection agency charged by law with the collection of such tax may 27
make out and sign a warrant directed to any serving officer for distraint 28
upon any property of such person found within the state, whether real 29
or personal. An itemized bill shall be attached thereto, certified by the 30
state collection agency issuing such warrant as a true statement of the 31
amount due from such person. 32
(A) Such warrant shall have the same force and effect as an execution 33
issued pursuant to chapter 906. Such warrant may be levied on any real 34
property or tangible or intangible personal property of such person, and 35
sale made pursuant to such warrant in the same manner and with the 36
same force and effect as a levy of sale pursuant to an execution. In 37
addition thereto, if such warrant has been issued by the Commissioner 38
of Revenue Services, [his] the commissioner's deputy, the Labor 39
Commissioner, the executive director of the Employment Security 40
Division or any person in the Employment Security Division in a 41
position equivalent to or higher than the position presently held by a 42
revenue examiner four, said serving officer shall be authorized to place 43
a keeper in any place of business and it shall be such keeper's duty to 44
secure the income of such business for the state and, when it is in the 45
best interest of the state, to force cessation of such business operation. In 46
addition, the Attorney General may collect any such tax by civil action. 47 Raised Bill No. 5463
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(B) Each serving officer so receiving a warrant shall make a return 48
with respect to such warrant to the appropriate collection agency within 49
a period of ten days following receipt of such warrant. Each serving 50
officer shall collect from such person, in addition to the amount shown 51
on such warrant, [his] such officer's fees and charges, which shall be 52
twice those authorized by statute for serving officers, provided the 53
minimum charge shall be five dollars and money collected pursuant to 54
such warrant shall be first applied to the amount of any fees and charges 55
of the serving officer. In the case of an employee of the state acting as a 56
serving officer the fees and charges collected by such employee shall 57
inure to the benefit of the state. 58
(4) For the purposes of this section, "keeper" means a person who has 59
been given authority by an officer authorized to serve a tax warrant to 60
act in the state's interest to secure the income of a business for the state 61
and, when it is in the best interest of the state, to force the cessation of 62
such business's operation, upon the failure of such business to pay taxes 63
owed to the state. 64
Sec. 2. Section 12-40 of the general statutes is repealed and the 65
following is substituted in lieu thereof (Effective October 1, 2020): 66
The assessors in each town, except as otherwise specially provided 67
by law, shall, on or before the fifteenth day of October annually, post on 68
the signposts therein, if any, or at some other exterior place near the 69
office of the town clerk, or publish in a newspaper published in such 70
town or, if no newspaper is published in such town, then in any 71
newspaper published in the state having a general circulation in such 72
town, a notice requiring all persons therein liable to pay taxes to bring 73
in a declaration of the taxable personal property belonging to them on 74
the first day of October in that year in accordance with section [12-42] 75
12-41 and the taxable personal property for which a declaration is 76
required in accordance with section 12-43, as amended by this act. 77
Sec. 3. Section 12-43 of the general statutes is repealed and the 78
following is substituted in lieu thereof (Effective October 1, 2020): 79 Raised Bill No. 5463
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(a) Each owner of tangible personal property located in any town for 80
three months or more during the assessment year immediately 81
preceding any assessment day, who is a nonresident of such town, shall 82
file a declaration of such personal property with the assessors of the 83
town in which the same is located on such assessment day, if located in 84
such town for three months or more in such year, otherwise, in the town 85
in which such property is located for the three months or more in such 86
year nearest to such assessment day, under the same provisions as apply 87
to residents, and such personal property shall not be liable to taxation 88
in any other town in this state. The declaration of each nonresident 89
taxpayer shall contain the nonresident's post-office and street address. 90
(b) At least thirty days before the expiration of the time for filing such 91
declaration, the assessors shall mail blank declaration forms to each 92
nonresident, or to such nonresident's attorney or agent having custody 93
of the nonresident's taxable property, or send such forms electronically 94
to such nonresident's electronic mail address or the electronic mail 95
address of such nonresident's attorney or agent, provided such 96
nonresident has requested, in writing, to receive such forms 97
electronically. If the identity or mailing address of a nonresident 98
taxpayer is not discovered until after the expiration of time for filing a 99
declaration, the assessor shall, not later than ten days after determining 100
the identity or mailing address, mail a declaration form to the 101
nonresident taxpayer. [Said] Such taxpayer shall file the declaration not 102
later than fifteen days after the date such declaration form is sent. Each 103
nonresident taxpayer who fails to file a declaration in accordance with 104
the provisions of this section shall be subject to the penalty provided in 105
subsection (e) of section 12-41. 106
(c) As used in this section, "nonresident" means a person who does 107
not reside in the town in which such person's tangible personal property 108
is located on the assessment day, or a company, corporation, limited 109
liability company, partnership or any other type of business enterprise 110
that does not have an established place for conducting business in such 111
town on the assessment day. 112 Raised Bill No. 5463
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Sec. 4. Section 12-44 of the general statutes is repealed and the 113
following is substituted in lieu thereof (Effective October 1, 2020): 114
Twenty-five per cent of the amount of the valuation of any property 115
taxable by any city, borough, school district, fire district or other 116
municipal association which bases its grand list upon that of the town 117
in which it is situated shall be added to such amount on the assessment 118
list of such municipal association in each case in which twenty-five per 119
cent has been added to such amount by such town for the failure to file 120
a list as prescribed by section [12-42] 12-41 or 12-43, as amended by this 121
act; but such penalty shall not be in addition to that previously imposed 122
in the town assessment. 123
Sec. 5. Section 12-54 of the general statutes is repealed and the 124
following is substituted in lieu thereof (Effective October 1, 2020): 125
Each person liable to give in a declaration of such person's taxable 126
tangible personal property and failing to do so may, within sixty days 127
after the expiration of the time fixed by law for filing such declaration, 128
be notified in writing by the [assessors] assessor or a majority of [them] 129
the board of assessors to appear before them to be examined under oath 130
as to such person's property liable to taxation and for the purpose of 131
verifying a declaration made out by them under the provisions of 132
section [12-42] 12-41. Any person who wilfully neglects or refuses to 133
appear before the assessors and make oath as to such person's taxable 134
property within ten days after having been so notified or who, having 135
appeared, refuses to answer shall be fined not more than one thousand 136
dollars. The assessors shall promptly notify the proper prosecuting 137
officers of any violation of any provision of this section. Nothing in this 138
section shall be construed to preclude the assessor from performing an 139
audit of such person's taxable personal property, as provided in section 140
12-53. 141
Sec. 6. Subsection (b) of section 12-57a of the general statutes is 142
repealed and the following is substituted in lieu thereof (Effective October 143
1, 2020): 144 Raised Bill No. 5463
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(b) Whenever any such lessee of personal property fails to file the 145
information required in this section, it shall be assumed that any such 146
property in the lessee's possession is owned by the lessee, who shall be 147
subject to the penalty as provided in section [12-42] 12-41 in the same 148
manner as any owner of personal property who fails to file a personal 149
property declaration as required. 150
Sec. 7. Subsection (a) of section 12-111 of the general statutes is 151
repealed and the following is substituted in lieu thereof (Effective October 152
1, 2020): 153
(a) (1) Any person, including any lessee of real property whose lease 154
has been recorded as provided in section 47-19 and who is bound under 155
the terms of a lease to pay real property taxes and any person to whom 156
title to such property has been transferred since the assessment date, 157
claiming to be aggrieved by the doings of the assessors of such town 158
may appeal therefrom to the board of assessment appeals. Such appeal 159
shall be filed, in writing, on or before February twentieth. The written 160
appeal shall include, but is not limited to, the property owner's name, 161
name and position of the signer, description of the property which is the 162
subject of the appeal, name and mailing address of the party to be sent 163
all correspondence by the board of assessment appeals, reason for the 164
appeal, appellant's estimate of value, signature of property owner, or 165
duly authorized agent of the property owner, and date of signature. 166
(2) The board shall notify each aggrieved taxpayer who filed a written 167
appeal in the proper form and in a timely manner, no later than March 168
first immediately following the assessment date, of the date, time and 169
place of the appeal hearing. Such notice shall be sent no later than seven 170
calendar days preceding the hearing date, except that the board may 171
elect not to conduct an appeal hearing for any commercial, industrial, 172
utility or apartment property with an assessed value greater than one 173
million dollars. The board shall, not later than March first, notify the 174
appellant that the board has elected not to conduct an appeal hearing. 175
An appellant whose appeal will not be heard by the board may appeal 176
directly to the Superior Court pursuant to section 12-117a. 177 Raised Bill No. 5463
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(3) The board shall determine all appeals for which the board 178
conducts an appeal hearing and send written notification of the final 179
determination of such appeals to each such person within one week 180
after such determination has been made. Such written notification shall 181
include information describing the property owner's right to appeal the 182
determination of such board. Such board may equalize and adjust the 183
grand list of such town and may increase or decrease the assessment of 184
any taxable property or interest therein and may add an assessment for 185
property omitted by the assessors which should be added thereto; and 186
may add to the grand list the name of any person omitted by the 187
assessors and owning taxable property in such town, placing therein all 188
property liable to taxation which it has reason to believe is owned by 189
such person, at the percentage of its actual valuation, as determined by 190
the assessors in accordance with the provisions of sections 12-64 and 12-191
71, from the best information that it can obtain. [, and if] If such property 192
should have been included in the declaration, as required by section [12-193
42] 12-41 or 12-43, as amended by this act, [it] the board shall add thereto 194
twenty-five per cent of such assessment; but, before proceeding to 195
increase the assessment of any person or to add to the grand list the 196
name of any person so omitted, [it] the board shall mail to such person, 197
postage paid, at least one week before making such increase or addition, 198
a written or printed notice addressed to such person at the town in 199
which such person resides, to appear before such board and show cause 200
why such increase or addition should not be made. 201
(4) When the board increases or decreases the gross assessment of any 202
taxable real property or interest therein, the amount of such gross 203
assessment shall be fixed until the assessment year in which the 204
municipality next implements a revaluation of all real property 205
pursuant to section 12-62, unless the assessor increases or decreases the 206
gross assessment of the property to [(1)] (A) comply with an order of a 207
court of jurisdiction, [(2)] (B) reflect an addition for new construction, 208
[(3)] (C) reflect a reduction for damage or demolition, or [(4)] (D) correct 209
a factual error by issuance of a certificate of correction. Notwithstanding 210
the provisions of this subsection, if, prior to the next revaluation, the 211 Raised Bill No. 5463
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assessor increases or decreases a gross assessment established by the 212
board for any other reason, the assessor shall submit a written 213
explanation to the board setting forth the reason for such increase or 214
decrease. The assessor shall also append the written explanation to the 215
property card for the real estate parcel whose gross assessment was 216
increased or decreased. 217
Sec. 8. Subdivision (4) of section 12-120a of the general statutes is 218
repealed and the following is substituted in lieu thereof (Effective October 219
1, 2020): 220
(4) (A) For purposes of taxable registered motor vehicles, such report 221
shall include the total number of motor vehicles and the total assessed 222
value of such motor vehicles for each of the following classifications 223
related to use: (i) Passenger, (ii) commercial, (iii) combination, (iv) farm, 224
and (v) any other classification; (B) for purposes of taxable vehicles 225
which are not registered and mobile manufactured homes, such report 226
shall include the total number of such vehicles and mobile 227
manufactured homes and the total assessed value for each such 228
category; (C) for purposes of all other taxable personal property, such 229
report shall include the total value of each category of such property as 230
contained in the tax list required pursuant to sections [12-42] 12-41 and 231
12-43, as amended by this act. 232
Sec. 9. Subsection (a) of section 12-121f of the general statutes is 233
repealed and the following is substituted in lieu thereof (Effective October 234
1, 2020): 235
(a) An assessment list in any town, city or borough is not invalid as 236
to the taxpayers of the taxing district as a whole because the assessor 237
committed any one or more of the errors or omissions listed in 238
subdivisions (1) to (15), inclusive, of this subsection unless an action 239
contesting the validity of the assessment list is brought within four 240
months after the assessment date and the plaintiff establishes that the 241
assessor's error or omission will produce a substantial injustice to the 242
taxpayers as a whole: 243 Raised Bill No. 5463
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(1) The assessor failed to give the legal notice required by section 12-244
40, as amended by this act, that all persons liable to pay taxes in the 245
taxing district must, when required by law, bring in written or printed 246
lists of the taxable property belonging to them; 247
(2) The assessor received a list that is either not sworn to or not signed 248
by the person giving that list as required by section 12-49; 249
(3) The assessor received a list after the deadline specified by section 250
[12-42] 12-41 but neglected to fill out a list of the property described and 251
add to the assessment the penalty set by section [12-42] 12-41 for failing 252
to file before the deadline; 253
(4) The assessor failed to give the notice required by subsection (c) of 254
section 12-53 after adding property to the list of any person or 255
corporation making a sworn list; 256
(5) The assessor failed to give the notice required by subsection (c) of 257
section 12-53 after making out a list for a person or corporation that was 258
liable to pay taxes and failed to give a required list; 259
(6) The assessor failed to assess and set house lots separately in lists 260
as land as required by section [12-42] 12-63; 261
(7) The assessor failed to sign any assessment list, or did not sign the 262
assessment list of a town, city or borough collectively but signed the 263
assessment list individually for districts in the town, city or borough; 264
(8) The assessor failed, as required by subsection (a) of section 12-55, 265
to arrange an assessment list in alphabetical order, or to lodge the list in 266
the required office on or before the day designated by law, or at all; 267
(9) The assessor decreased valuations after the day on which the 268
assessment list was lodged or was required by law to be lodged in the 269
required office, but before the date on which the abstract of such list was 270
transmitted or was required to be transmitted to the Secretary of the 271
Office of Policy and Management; 272 Raised Bill No. 5463
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(10) The assessor failed, as required by section 12-42, to fill out a list 273
for any person or corporation that failed to return a required list; 274
(11) The assessor incorrectly made an assessment list abstract 275
required by subsection (a) of section 12-55; 276
(12) The assessor failed to compare, sign, return, date or make oath to 277
an abstract of an assessment list of his or her town, as required by law, 278
or omitted from an abstract any part of the list of any person; 279
(13) The assessor did not take the oath required by law; 280
(14) The assessor failed to return to a district clerk an assessment list 281
of the district assessment; or 282
(15) The assessor omitted from the assessment list the taxable 283
property of any person or corporation liable to pay taxes. 284
Sec. 10. Section 12-170aa of the 2020 supplement to the general 285
statutes is repealed and the following is substituted in lieu thereof 286
(Effective October 1, 2020): 287
(a) There is established, for the assessment year commencing October 288
1, 1985, and each assessment year thereafter, a revised state program of 289
property tax relief for certain elderly homeowners as determined in 290
accordance with subsection (b) of this section, and additionally for the 291
assessment year commencing October 1, 1986, and each assessment year 292
thereafter, the property tax relief benefits of such program are made 293
available to certain homeowners who are permanently and totally 294
disabled as determined in accordance with said subsection. [(b) of this 295
section.] 296
(b) (1) The program established by this section shall provide for a 297
reduction in property tax, except in the case of benefits payable as a 298
grant under certain circumstances in accordance with provisions in 299
subsection (j) of this section, applicable to the assessed value of certain 300
real property, determined in accordance with subsection (c) of this 301
section, for any (A) owner of real property, including any owner of real 302 Raised Bill No. 5463
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property held in trust for such owner, provided such owner or such 303
owner and such owner's spouse are the grantor and beneficiary of such 304
trust, (B) tenant for life or tenant for a term of years liable for property 305
tax under section 12-48, or (C) resident of a multiple-dwelling complex 306
under certain contractual conditions as provided in [said] subsection (j) 307
of this section, who (i) at the close of the preceding calendar year has 308
attained age sixty-five or over, or whose spouse domiciled with such 309
homeowner, has attained age sixty-five or over at the close of the 310
preceding calendar year, or is fifty years of age or over and the surviving 311
spouse of a homeowner who at the time of [his] such homeowner's 312
death had qualified and was entitled to tax relief under this section, 313
provided such spouse was domiciled with such homeowner at the time 314
of [his] such homeowner's death, or (ii) at the close of the preceding 315
calendar year has not attained age sixty-five and is eligible in accordance 316
with applicable federal regulations to receive permanent total disability 317
benefits under Social Security, or has not been engaged in employment 318
covered by Social Security and accordingly has not qualified for benefits 319
thereunder but who has become qualified for permanent total disability 320
benefits under any federal, state or local government retirement or 321
disability plan, including the Railroad Retirement Act and any 322
government-related teacher's retirement plan, determined by the 323
Secretary of the Office of Policy and Management to contain 324
requirements in respect to qualification for such permanent total 325
disability benefits [which] that are comparable to such requirements 326
under Social Security; and in addition to qualification under clause (i) 327
or (ii) [above] of this subdivision, whose taxable and nontaxable income, 328
the total of which shall hereinafter be called "qualifying income", in the 329
tax year of such homeowner ending immediately preceding the date of 330
application for benefits under the program in this section, was not in 331
excess of sixteen thousand two hundred dollars, if unmarried, or twenty 332
thousand dollars, jointly with spouse if married, subject to adjustments 333
in accordance with subdivision (2) of this subsection, evidence of which 334
income shall be required in the form of a signed affidavit to be submitted 335
to the assessor in the municipality in which application for benefits 336
under this section is filed. The amount of any Medicaid payments made 337 Raised Bill No. 5463
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on behalf of such homeowner or the spouse of such homeowner shall 338
not constitute income. The amount of tax reduction provided under this 339
section, determined in accordance with and subject to the variable 340
factors in the schedule of amounts of tax reduction in subsection (c) of 341
this section, shall be allowed only with respect to a residential dwelling 342
owned by such qualified homeowner and used as such homeowner's 343
primary place of residence. If title to real property or a tenancy interest 344
liable for real property taxes is recorded in the name of such qualified 345
homeowner or his spouse making a claim and qualifying under this 346
section and any other person or persons, the claimant hereunder shall 347
be entitled to pay his fractional share of the tax on such property 348
calculated in accordance with the provisions of this section, and such 349
other person or persons shall pay his or their fractional share of the tax 350
without regard for the provisions of this section, unless also qualified 351
hereunder. For the purposes of this section, a "mobile manufactured 352
home", as defined in section 12-63a, or a dwelling on leased land, 353
including, but not limited to, a modular home, shall be deemed to be 354
real property and the word "taxes" shall not include special assessments, 355
interest and lien fees. 356
(2) The amounts of qualifying income as provided in this section shall 357
be adjusted annually in a uniform manner to reflect the annual inflation 358
adjustment in Social Security income, with each such adjustment of 359
qualifying income determined to the nearest one hundred dollars. Each 360
such adjustment of qualifying income shall be prepared by the Secretary 361
of the Office of Policy and Management in relation to the annual 362
inflation adjustment in Social Security, if any, becoming effective at any 363
time during the twelve-month period immediately preceding the first 364
day of October each year and the amount of such adjustment shall be 365
distributed to the assessors in each municipality not later than the thirty-366
first day of December next following. 367
(3) For purposes of determining qualifying income under subdivision 368
(1) of this subsection with respect to a married homeowner who submits 369
an application for tax reduction in accordance with this section, the 370
Social Security income of the spouse of such homeowner shall not be 371 Raised Bill No. 5463
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included in the qualifying income of such homeowner, for purposes of 372
determining eligibility for benefits under this section, if such spouse is 373
a resident of a health care or nursing home facility in this state receiving 374
payment related to such spouse under the Title XIX Medicaid program. 375
An applicant who is legally separated pursuant to the provisions of 376
section 46b-40, as of the thirty-first day of December preceding the date 377
on which such person files an application for a grant in accordance with 378
subsection (a) of this section, may apply as an unmarried person and 379
shall be regarded as such for purposes of determining qualifying income 380
under said subsection. 381
(c) The amount of reduction in property tax provided under this 382
section shall, subject to the provisions of subsection (d) of this section, 383
be determined in accordance with the following schedule: 384
T1 Qualifying Income Tax Reduction Tax Reduction
T2 As Percentage For Any Year
T3 Over Not Exceeding Of Property Tax
T4 Married Homeowners Maximum Minimum
T5 $ 0 $11,700 50% $1,250 $400
T6 11,700 15,900 40 1,000 350
T7 15,900 19,700 30 750 250
T8 19,700 23,600 20 500 150
T9 23,600 28,900 10 250 150
T10 28,900 None
T11 Unmarried Homeowners
T12 $ 0 $11,700 40% $1,000 $350
T13 11,700 15,900 30 750 250
T14 15,900 19,700 20 500 150
T15 19,700 23,600 10 250 150
T16 23,600 None
(d) Any homeowner qualified for tax reduction in accordance with 385
subsection (b) of this section in an amount to be determined under the 386 Raised Bill No. 5463
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schedule of such tax reduction in subsection (c) of this section, shall in 387
no event receive less in tax reduction than the minimum amount of such 388
reduction applicable to the qualifying income of such homeowner 389
according to the schedule in said subsection (c). 390
(e) (1) Any claim for tax reduction under this section shall be 391
submitted for approval, on the application form prepared for such 392
purpose by the Secretary of the Office of Policy and Management, in the 393
first year claim for such tax relief is filed and biennially thereafter. The 394
amount of tax reduction approved shall be applied to the real property 395
tax payable by the homeowner for the assessment year in which such 396
application is submitted and approved. If any such homeowner has 397
qualified for tax reduction under this section, the tax reduction 398
determined shall, when possible, be applied and prorated uniformly 399
over the number of installments in which the real property tax is due 400
and payable to the municipality in which [he] such homeowner resides. 401
In the case of any homeowner who is eligible for tax reduction under 402
this section as a result of increases in qualifying income, [effective with 403
respect to the assessment year commencing October 1, 1987,] under the 404
schedule of qualifying income and tax reduction in subsection (c) of this 405
section, exclusive of any such increases related to [social security] Social 406
Security adjustments in accordance with subsection (b) of this section, 407
the total amount of tax reduction to which such homeowner is entitled 408
shall be credited and uniformly prorated against property tax 409
installment payments applicable to such homeowner's residence 410
[which] that become due after such homeowner's application for tax 411
reduction under this section is accepted. In the event that a homeowner 412
has paid in full the amount of property tax applicable to such 413
homeowner's residence, regardless of whether the municipality requires 414
the payment of property taxes in one or more installments, such 415
municipality shall make payment to such homeowner in the amount of 416
the tax reduction allowed. The municipality shall be reimbursed for the 417
amount of such payment in accordance with subsection (g) of this 418
section. 419
(2) In respect to such application required biennially after the filing 420 Raised Bill No. 5463
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and approval for the first year, the tax assessor in each municipality 421
shall notify each such homeowner concerning application requirements 422
by regular mail not later than February first, annually enclosing a copy 423
of the required application form. Such homeowner may submit such 424
application to the assessor by mail, provided it is received by the 425
assessor not later than April fifteenth in the assessment year with 426
respect to which such tax reduction is claimed. Not later than April 427
thirtieth of such year the assessor shall notify, by mail evidenced by a 428
certificate of mailing, any such homeowner for whom such application 429
was not received by said April fifteenth concerning application 430
requirements and such homeowner shall be required not later than May 431
fifteenth to submit such application personally or, for reasonable cause, 432
by a person acting on behalf of such taxpayer as approved by the 433
assessor. In the year immediately following any year in which such 434
homeowner has submitted application and qualified for tax reduction 435
in accordance with this section, such homeowner shall be presumed, 436
without filing application therefor, to be qualified for tax reduction in 437
accordance with the schedule in subsection (c) of this section in the same 438
percentage of property tax as allowed in the year immediately 439
preceding. 440
(3) If any homeowner has qualified and received tax reduction under 441
this section and subsequently in any calendar year has qualifying 442
income in excess of the maximum described in this section, such 443
homeowner shall notify the tax assessor on or before the next filing date 444
and shall be denied tax reduction under this section for the assessment 445
year and any subsequent year or until such homeowner has reapplied 446
and again qualified for benefits under this section. Any such person who 447
fails to so notify the tax assessor of his disqualification shall refund all 448
amounts of tax reduction improperly taken and be fined not more than 449
five hundred dollars. 450
(f) (1) Any homeowner, believing such homeowner is entitled to tax 451
reduction benefits under this section for any assessment year, shall 452
make application as required in subsection (e) of this section, to the 453
assessor of the municipality in which the homeowner resides, for such 454 Raised Bill No. 5463
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tax reduction at any time from February first to and including May 455
fifteenth of the year in which tax reduction is claimed. A homeowner 456
may make application to the secretary prior to August fifteenth of the 457
claim year for an extension of the application period. The secretary may 458
grant such extension in the case of extenuating circumstance due to 459
illness or incapacitation as evidenced by a certificate signed by a 460
physician or an advanced practice registered nurse to that extent, or if 461
the secretary determines there is good cause for doing so. Such 462
application for tax reduction benefits shall be submitted on a form 463
prescribed and furnished by the secretary to the assessor. In making 464
application the homeowner shall present to such assessor, in 465
substantiation of such homeowner's application, a copy of such 466
homeowner's federal income tax return, including a copy of the Social 467
Security statement of earnings for such homeowner, and that of such 468
homeowner's spouse, if filed separately, for such homeowner's taxable 469
year ending immediately prior to the submission of such application, or 470
if not required to file a return, such other evidence of qualifying income 471
in respect to such taxable year as may be required by the assessor. 472
(2) When the assessor is satisfied that the applying homeowner is 473
entitled to tax reduction in accordance with this section, such assessor 474
shall issue a certificate of credit, in such form as the secretary may 475
prescribe and supply showing the amount of tax reduction allowed. A 476
duplicate of such certificate shall be delivered to the applicant and the 477
tax collector of the municipality and the assessor shall keep the fourth 478
copy of such certificate and a copy of the application. Any homeowner 479
who, for the purpose of obtaining a tax reduction under this section, 480
wilfully fails to disclose all matters related thereto or with intent to 481
defraud makes false statement shall refund all property tax credits 482
improperly taken and shall be fined not more than five hundred dollars. 483
(3) Applications filed under this section shall not be open for public 484
inspection. 485
(g) (1) On or before July first, annually, each municipality shall 486
submit to the secretary a claim for the tax reductions approved under 487 Raised Bill No. 5463
LCO No. 2364 17 of 64
this section in relation to the assessment list of October first immediately 488
preceding. On or after December [1, 1987] first, annually, any 489
municipality that neglects to transmit to the secretary the claim as 490
required by this section shall forfeit two hundred fifty dollars to the 491
state, except that the secretary may waive such forfeiture in accordance 492
with procedures and standards established by regulations adopted in 493
accordance with chapter 54. 494
(2) Subject to procedures for review and approval of such data 495
pursuant to section 12-120b, said secretary shall, on or before December 496
fifteenth next following, certify to the Comptroller the amount due each 497
municipality as reimbursement for loss of property tax revenue related 498
to the tax reductions allowed under this section, except that the 499
secretary may reduce the amount due as reimbursement under this 500
section by up to one hundred per cent for any municipality that is not 501
eligible for a grant under section 32-9s. The Comptroller shall draw an 502
order on the Treasurer on or before the fifth business day following 503
December fifteenth and the Treasurer shall pay the amount due each 504
municipality not later than the thirty-first day of December. 505
(3) Any claimant aggrieved by the results of the secretary's review 506
shall have the rights of appeal as set forth in section 12-120b. The 507
amount of the grant payable to each municipality in any year in 508
accordance with this section shall be reduced proportionately in the 509
event that the total of such grants in such year exceeds the amount 510
appropriated for the purposes of this section with respect to such year. 511
(h) Any person who is the owner of a residential dwelling on leased 512
land, including any such person who is a sublessee under terms of the 513
lease agreement applicable to such land, shall be entitled to claim tax 514
relief under the provisions of this section, subject to all requirements 515
therein except as provided in this [subdivision] subsection, with respect 516
to property taxes paid by such person on the assessed value of such 517
dwelling, provided (1) the dwelling is such person's principal place of 518
residence, (2) such lease or sublease requires that such person as the 519
lessee or sublessee, whichever is applicable, pay all property taxes 520 Raised Bill No. 5463
LCO No. 2364 18 of 64
related to the dwelling and (3) such lease or sublease is recorded in the 521
land records of the town. 522
(i) (1) If any person with respect to whom a claim for tax reduction in 523
accordance with this section has been approved for any assessment year 524
transfers, assigns, grants or otherwise conveys on or after the first day 525
of October but prior to the first day of August in such assessment year 526
the interest in real property to which such claim for tax credit is related, 527
regardless of whether such transfer, assignment, grant or conveyance is 528
voluntary or involuntary, the amount of such tax credit shall be a pro 529
rata portion of the amount otherwise applicable in such assessment year 530
to be determined by a fraction the numerator of which shall be the 531
number of full months from the first day of October in such assessment 532
year to the date of such conveyance and the denominator of which shall 533
be twelve. If such conveyance occurs in the month of October the 534
grantor shall be disqualified for tax credit in such assessment year. The 535
grantee shall be required within a period not exceeding ten days 536
immediately following the date of such conveyance to notify the 537
assessor thereof, or in the absence of such notice, upon determination 538
by the assessor that such transfer, assignment, grant or conveyance has 539
occurred, the assessor shall [(1)] (A) determine the amount of tax 540
reduction to which the grantor is entitled for such assessment year with 541
respect to the interest in real property conveyed and notify the tax 542
collector of the reduced amount of tax reduction applicable to such 543
interest, and [(2)] (B) notify the Secretary of the Office of Policy and 544
Management on or before the October first immediately following the 545
end of the assessment year in which such conveyance occurs of the 546
reduction in such tax reduction for purposes of a corresponding 547
adjustment in the amount of state payment to the municipality next 548
following as reimbursement for the revenue loss related to such tax 549
reductions. On or after December [1, 1987] first, annually, any 550
municipality [which] that neglects to transmit to the Secretary of the 551
Office of Policy and Management the claim as required by this section 552
shall forfeit two hundred fifty dollars to the state provided the secretary 553
may waive such forfeiture in accordance with procedures and standards 554 Raised Bill No. 5463
LCO No. 2364 19 of 64
established by regulations adopted in accordance with chapter 54. 555
(2) Upon receipt of such notice from the assessor, the tax collector 556
shall, if such notice is received after the tax due date in the municipality, 557
within ten days thereafter mail or hand a bill to the grantee stating the 558
additional amount of tax due as determined by the assessor. Such tax 559
shall be due and payable and collectible as other property taxes and 560
subject to the same liens and processes of collection, provided such tax 561
shall be due and payable in an initial or single installment not sooner 562
than thirty days after the date such bill is mailed or handed to the 563
grantee and in equal amounts in any remaining, regular installments as 564
the same are due and payable. 565
(j) (1) Notwithstanding the intent in subsections (a) to (i), inclusive, 566
of this section to provide for benefits in the form of property tax 567
reduction applicable to persons liable for payment of such property tax 568
and qualified in accordance with requirements related to age and 569
income as provided in subsection (b) of this section, a certain annual 570
benefit, determined in amount under the provisions of subsections (c) 571
and (d) of this section but payable in a manner as prescribed in this 572
subsection, shall be provided with respect to any person who (A) is 573
qualified in accordance with said requirements related to age and 574
income as provided in subsection (b) of this section, including 575
provisions concerning such person's spouse, and (B) is a resident of a 576
dwelling unit within a multiple-dwelling complex containing dwelling 577
units for occupancy by certain elderly persons under terms of a contract 578
between such resident and the owner of such complex, in accordance 579
with which contract such resident occupies a certain dwelling unit 580
subject to the express provision that such resident has no legal title, 581
interest or leasehold estate in the real or personal property of such 582
complex, and under the terms of which contract such resident agrees to 583
pay the owner of the complex a fee, as a condition precedent to 584
occupancy and a monthly or other such periodic fee thereafter as a 585
condition of continued occupancy. In no event shall any such resident 586
be qualified for benefits payable in accordance with this subsection if, as 587
determined by the assessor in the municipality in which such complex 588 Raised Bill No. 5463
LCO No. 2364 20 of 64
is situated, such resident's contract with the owner of such complex, or 589
occupancy by such resident (i) confers upon such resident any 590
ownership interest in the dwelling unit occupied or in such complex, or 591
(ii) establishes a contract of lease of any type for the dwelling unit 592
occupied by such resident. 593
(2) The amount of annual benefit payable in accordance with this 594
subsection to any such resident, qualified as provided in subdivision (1) 595
of this subsection, shall be determined in relation to an assumed amount 596
of property tax liability applicable to the assessed value for the dwelling 597
unit which such resident occupies, as determined by the assessor in the 598
municipality in which such complex is situated. Annually, not later than 599
the first day of June, the assessor in such municipality, upon receipt of 600
an application for such benefit submitted in accordance with this 601
subsection by any such resident, shall determine, with respect to the 602
assessment list in such municipality for the assessment year 603
commencing October first immediately preceding, the portion of the 604
assessed value of the entire complex, as included in such assessment list, 605
attributable to the dwelling unit occupied by such resident. The 606
assumed property tax liability for purposes of this subsection shall be 607
the product of such assessed value and the mill rate in such municipality 608
as determined for purposes of property tax imposed on said assessment 609
list for the assessment year commencing October first immediately 610
preceding. The amount of benefit to which such resident shall be 611
entitled for such assessment year shall be equivalent to the amount of 612
tax reduction for which such resident would qualify, considering such 613
assumed property tax liability to be the actual property tax applicable 614
to such resident's dwelling unit and such resident as liable for the 615
payment of such tax, in accordance with the schedule of qualifying 616
income and tax reduction as provided in subsection (c) of this section, 617
subject to provisions concerning maximum allowable benefit for any 618
assessment year under subsections (c) and (d) of this section. The 619
amount of benefit as determined for such resident in respect to any 620
assessment year shall be payable by the state as a grant to such resident 621
equivalent to the amount of property tax reduction to which such 622 Raised Bill No. 5463
LCO No. 2364 21 of 64
resident would be entitled under subsections (a) to (i), inclusive, of this 623
section if such resident were the owner of such dwelling unit and 624
qualified for tax reduction benefits under said subsections (a) to (i), 625
inclusive. 626
(3) Any such resident entitled to a grant as provided in subdivision 627
(2) of this subsection shall be required to submit an application for such 628
grant to the assessor in the municipality in which such resident resides 629
at any time from February first to and including the fifteenth day of May 630
in the year in which such grant is claimed, on a form prescribed and 631
furnished for such purpose by the Secretary of the Office of Policy and 632
Management. Any such resident submitting an application for such 633
grant shall be required to present to the assessor, in substantiation of 634
such application, a copy of such resident's federal income tax return, 635
and if not required to file a federal income tax return, such other 636
evidence of qualifying income, receipts for money received or cancelled 637
checks, or copies thereof, and any other evidence the assessor may 638
require. Not later than the first day of July in such year, the assessor shall 639
submit to the Secretary of the Office of Policy and Management (A) a 640
copy of the application prepared by such resident, together with such 641
resident's federal income tax return, if required to file such a return, and 642
any other information submitted in relation thereto, (B) determinations 643
of the assessor concerning the assessed value of the dwelling unit in 644
such complex occupied by such resident, and (C) the amount of such 645
grant approved by the assessor. Said secretary, upon approving such 646
grant, shall certify the amount thereof and not later than the fifteenth 647
day of September immediately following submit approval for payment 648
of such grant to the State Comptroller. Not later than five business days 649
immediately following receipt of such approval for payment, the State 650
Comptroller shall draw [his or her] an order [upon] on the State 651
Treasurer and the Treasurer shall pay the amount of the grant to such 652
resident not later than the first day of October immediately following. 653
(k) If the Secretary of the Office of Policy and Management makes any 654
adjustments to the grants for tax reductions or assumed amounts of 655
property tax liability claimed under this section subsequent to the 656 Raised Bill No. 5463
LCO No. 2364 22 of 64
[Comptroller the] State Comptroller's order of payment of [said] such 657
grants in any year, the amount of such adjustment shall be reflected in 658
the next payment the Treasurer shall make to such municipality 659
pursuant to this section. 660
Sec. 11. Subsection (a) of section 12-208 of the 2020 supplement to the 661
general statutes is repealed and the following is substituted in lieu 662
thereof (Effective October 1, 2020): 663
(a) Any company subject to any tax or charge under this chapter that 664
is aggrieved by the action of the commissioner or the commissioner's 665
authorized agent in fixing the amount of any tax, penalty, interest or 666
charge provided for by this chapter may apply to the commissioner, in 667
writing, not later than sixty days after the notice of such action is 668
delivered or mailed to the company, for a hearing and a correction of 669
the amount of such tax, penalty, interest or charge, so fixed, setting forth 670
the reasons why such hearing should be granted and the amount in 671
which such tax, penalty, interest or charge should be reduced. The 672
commissioner shall promptly consider each such application and may 673
grant or deny the hearing requested. If the hearing is denied, the 674
applicant shall be notified forthwith. If it is granted, the commissioner 675
shall notify the applicant of the time and place fixed for such hearing. 676
After such hearing the commissioner may make such order in the 677
premises as appears to [him] the commissioner just and lawful and shall 678
furnish a copy of such order to the applicant. The commissioner may, 679
by notice in writing, at any time within three years after the date when 680
any return of any such person has been due, order a hearing on [his 681
own] the commissioner's initiative and require such person or any other 682
individual whom the commissioner believes to be in possession of 683
relevant information concerning such person to appear before the 684
commissioner or the commissioner's authorized agent with any 685
specified books of account, papers or other documents, for examination 686
under oath. 687
Sec. 12. Subsection (b) of section 12-214 of the 2020 supplement to the 688
general statutes is repealed and the following is substituted in lieu 689 Raised Bill No. 5463
LCO No. 2364 23 of 64
thereof (Effective October 1, 2020): 690
[(b) (1) With respect to income years commencing on or after January 691
1, 1989, and prior to January 1, 1992, any company subject to the tax 692
imposed in accordance with subsection (a) of this section shall pay, for 693
each such income year, an additional tax in an amount equal to twenty 694
per cent of the tax calculated under said subsection (a) for such income 695
year, without reduction of the tax so calculated by the amount of any 696
credit against such tax. The additional amount of tax determined under 697
this subsection for any income year shall constitute a part of the tax 698
imposed by the provisions of said subsection (a) and shall become due 699
and be paid, collected and enforced as provided in this chapter. 700
(2) With respect to income years commencing on or after January 1, 701
1992, and prior to January 1, 1993, any company subject to the tax 702
imposed in accordance with subsection (a) of this section shall pay, for 703
each such income year, an additional tax in an amount equal to ten per 704
cent of the tax calculated under said subsection (a) for such income year, 705
without reduction of the tax so calculated by the amount of any credit 706
against such tax. The additional amount of tax determined under this 707
subsection for any income year shall constitute a part of the tax imposed 708
by the provisions of said subsection (a) and shall become due and be 709
paid, collected and enforced as provided in this chapter. 710
(3) With respect to income years commencing on or after January 1, 711
2003, and prior to January 1, 2004, any company subject to the tax 712
imposed in accordance with subsection (a) of this section shall pay, for 713
each such income year, an additional tax in an amount equal to twenty 714
per cent of the tax calculated under said subsection (a) for such income 715
year, without reduction of the tax so calculated by the amount of any 716
credit against such tax. The additional amount of tax determined under 717
this subsection for any income year shall constitute a part of the tax 718
imposed by the provisions of said subsection (a) and shall become due 719
and be paid, collected and enforced as provided in this chapter. 720
(4) With respect to income years commencing on or after January 1, 721 Raised Bill No. 5463
LCO No. 2364 24 of 64
2004, and prior to January 1, 2005, any company subject to the tax 722
imposed in accordance with subsection (a) of this section shall pay, for 723
each such income year, an additional tax in an amount equal to twenty-724
five per cent of the tax calculated under said subsection (a) for such 725
income year, without reduction of the tax so calculated by the amount 726
of any credit against such tax, except that any company that pays the 727
minimum tax of two hundred fifty dollars under section 12-219 or 12-728
223c for such income year shall not be subject to the additional tax 729
imposed by this subdivision. The additional amount of tax determined 730
under this subdivision for any income year shall constitute a part of the 731
tax imposed by the provisions of said subsection (a) and shall become 732
due and be paid, collected and enforced as provided in this chapter.] 733
[(5)] (b) (1) With respect to income years commencing on or after 734
January 1, 2006, and prior to January 1, 2007, any company subject to the 735
tax imposed in accordance with subsection (a) of this section shall pay, 736
except when the tax so calculated is equal to two hundred fifty dollars, 737
for each such income year, an additional tax in an amount equal to 738
twenty per cent of the tax calculated under said subsection (a) for such 739
income year, without reduction of the tax so calculated by the amount 740
of any credit against such tax. The additional amount of tax determined 741
under this subsection for any income year shall constitute a part of the 742
tax imposed by the provisions of said subsection (a) and shall become 743
due and be paid, collected and enforced as provided in this chapter. 744
[(6)] (2) (A) With respect to income years commencing on or after 745
January 1, 2009, and prior to January 1, 2012, any company subject to the 746
tax imposed in accordance with subsection (a) of this section shall pay, 747
for each such income year, except when the tax so calculated is equal to 748
two hundred fifty dollars, an additional tax in an amount equal to ten 749
per cent of the tax calculated under said subsection (a) for such income 750
year, without reduction of the tax so calculated by the amount of any 751
credit against such tax. The additional amount of tax determined under 752
this subsection for any income year shall constitute a part of the tax 753
imposed by the provisions of said subsection (a) and shall become due 754
and be paid, collected and enforced as provided in this chapter. 755 Raised Bill No. 5463
LCO No. 2364 25 of 64
(B) Any company whose gross income for the income year was less 756
than one hundred million dollars shall not be subject to the additional 757
tax imposed under subparagraph (A) of this subdivision. This exception 758
shall not apply to companies filing a combined return for the income 759
year under section 12-223a or a unitary return under subsection (d) of 760
section 12-218d. 761
[(7)] (3) (A) With respect to income years commencing on or after 762
January 1, 2012, and prior to January 1, 2018, any company subject to the 763
tax imposed in accordance with subsection (a) of this section shall pay, 764
for each such income year, except when the tax so calculated is equal to 765
two hundred fifty dollars, an additional tax in an amount equal to 766
twenty per cent of the tax calculated under said subsection (a) for such 767
income year, without reduction of the tax so calculated by the amount 768
of any credit against such tax. The additional amount of tax determined 769
under this subsection for any income year shall constitute a part of the 770
tax imposed by the provisions of said subsection (a) and shall become 771
due and be paid, collected and enforced as provided in this chapter. 772
(B) Any company whose gross income for the income year was less 773
than one hundred million dollars shall not be subject to the additional 774
tax imposed under subparagraph (A) of this subdivision. With respect 775
to income years commencing on or after January 1, 2012, and prior to 776
January 1, 2016, this exception shall not apply to companies filing a 777
combined return for the income year under section 12-223a or a unitary 778
return under subsection (d) of section 12-218d. With respect to income 779
years commencing on or after January 1, 2016, and prior to January 1, 780
2018, this exception shall not apply to taxable members of a combined 781
group that files a combined unitary tax return. 782
[(8)] (4) (A) With respect to income years commencing on or after 783
January 1, 2018, and prior to January 1, 2021, any company subject to the 784
tax imposed in accordance with subsection (a) of this section shall pay, 785
for such income year, except when the tax so calculated is equal to two 786
hundred fifty dollars, an additional tax in an amount equal to ten per 787
cent of the tax calculated under said subsection (a) for such income year, 788 Raised Bill No. 5463
LCO No. 2364 26 of 64
without reduction of the tax so calculated by the amount of any credit 789
against such tax. The additional amount of tax determined under this 790
subsection for any income year shall constitute a part of the tax imposed 791
by the provisions of said subsection (a) and shall become due and be 792
paid, collected and enforced as provided in this chapter. 793
(B) Any company whose gross income for the income year was less 794
than one hundred million dollars shall not be subject to the additional 795
tax imposed under subparagraph (A) of this subdivision. This exception 796
shall not apply to taxable members of a combined group that files a 797
combined unitary tax return. 798
Sec. 13. Subsection (b) of section 12-219 of the 2020 supplement to the 799
general statutes is repealed and the following is substituted in lieu 800
thereof (Effective October 1, 2020): 801
[(b) (1) With respect to income years commencing on or after January 802
1, 1989, and prior to January 1, 1992, the additional tax imposed on any 803
company and calculated in accordance with subsection (a) of this section 804
shall, for each such income year, except when the tax so calculated is 805
equal to two hundred fifty dollars, be increased by adding thereto an 806
amount equal to twenty per cent of the additional tax so calculated for 807
such income year, without reduction of the additional tax so calculated 808
by the amount of any credit against such tax. The increased amount of 809
tax payable by any company under this section, as determined in 810
accordance with this subsection, shall become due and be paid, collected 811
and enforced as provided in this chapter. 812
(2) With respect to income years commencing on or after January 1, 813
1992, and prior to January 1, 1993, the additional tax imposed on any 814
company and calculated in accordance with subsection (a) of this section 815
shall, for each such income year, except when the tax so calculated is 816
equal to two hundred fifty dollars, be increased by adding thereto an 817
amount equal to ten per cent of the additional tax so calculated for such 818
income year, without reduction of the tax so calculated by the amount 819
of any credit against such tax. The increased amount of tax payable by 820 Raised Bill No. 5463
LCO No. 2364 27 of 64
any company under this section, as determined in accordance with this 821
subsection, shall become due and be paid, collected and enforced as 822
provided in this chapter. 823
(3) With respect to income years commencing on or after January 1, 824
2003, and prior to January 1, 2004, the additional tax imposed on any 825
company and calculated in accordance with subsection (a) of this section 826
shall, for each such income year, be increased by adding thereto an 827
amount equal to twenty per cent of the additional tax so calculated for 828
such income year, without reduction of the tax so calculated by the 829
amount of any credit against such tax. The increased amount of tax 830
payable by any company under this section, as determined in 831
accordance with this subsection, shall become due and be paid, collected 832
and enforced as provided in this chapter. 833
(4) With respect to income years commencing on or after January 1, 834
2004, and prior to January 1, 2005, the additional tax imposed on any 835
company and calculated in accordance with subsection (a) of this section 836
shall, for each such income year, be increased by adding thereto an 837
amount equal to twenty-five per cent of the additional tax so calculated 838
for such income year, without reduction of the tax so calculated by the 839
amount of any credit against such tax, except that any company that 840
pays the minimum tax of two hundred fifty dollars under this section or 841
section 12-223c for such income year shall not be subject to such 842
additional tax. The increased amount of tax payable by any company 843
under this subdivision, as determined in accordance with this 844
subsection, shall become due and be paid, collected and enforced as 845
provided in this chapter.] 846
[(5)] (b) (1) With respect to income years commencing on or after 847
January 1, 2006, and prior to January 1, 2007, the additional tax imposed 848
on any company and calculated in accordance with subsection (a) of this 849
section shall, for each such income year, except when the tax so 850
calculated is equal to two hundred fifty dollars, be increased by adding 851
thereto an amount equal to twenty per cent of the additional tax so 852
calculated for such income year, without reduction of the tax so 853 Raised Bill No. 5463
LCO No. 2364 28 of 64
calculated by the amount of any credit against such tax. The increased 854
amount of tax payable by any company under this section, as 855
determined in accordance with this subsection, shall become due and be 856
paid, collected and enforced as provided in this chapter. 857
[(6)] (2) (A) With respect to income years commencing on or after 858
January 1, 2009, and prior to January 1, 2012, the additional tax imposed 859
on any company and calculated in accordance with subsection (a) of this 860
section shall, for each such income year, except when the tax so 861
calculated is equal to two hundred fifty dollars, be increased by adding 862
thereto an amount equal to ten per cent of the additional tax so 863
calculated for such income year, without reduction of the tax so 864
calculated by the amount of any credit against such tax. The increased 865
amount of tax payable by any company under this section, as 866
determined in accordance with this subsection, shall become due and be 867
paid, collected and enforced as provided in this chapter. 868
(B) Any company whose gross income for the income year was less 869
than one hundred million dollars shall not be subject to the additional 870
tax imposed under subparagraph (A) of this subdivision. This exception 871
shall not apply to companies filing a combined return for the income 872
year under section 12-223a or a unitary return under subsection (d) of 873
section 12-218d. 874
[(7)] (3) (A) With respect to income years commencing on or after 875
January 1, 2012, and prior to January 1, 2018, the additional tax imposed 876
on any company and calculated in accordance with subsection (a) of this 877
section shall, for each such income year, except when the tax so 878
calculated is equal to two hundred fifty dollars, be increased by adding 879
thereto an amount equal to twenty per cent of the additional tax so 880
calculated for such income year, without reduction of the tax so 881
calculated by the amount of any credit against such tax. The increased 882
amount of tax payable by any company under this section, as 883
determined in accordance with this subsection, shall become due and be 884
paid, collected and enforced as provided in this chapter. 885 Raised Bill No. 5463
LCO No. 2364 29 of 64
(B) Any company whose gross income for the income year was less 886
than one hundred million dollars shall not be subject to the additional 887
tax imposed under subparagraph (A) of this subdivision. With respect 888
to income years commencing on or after January 1, 2012, and prior to 889
January 1, 2016, this exception shall not apply to companies filing a 890
combined return for the income year under section 12-223a or a unitary 891
return under subsection (d) of section 12-218d. With respect to income 892
years commencing on or after January 1, 2016, and prior to January 1, 893
2018, this exception shall not apply to taxable members of a combined 894
group that files a combined unitary tax return. 895
[(8)] (4) (A) With respect to income years commencing on or after 896
January 1, 2018, and prior to January 1, 2021, the additional tax imposed 897
on any company and calculated in accordance with subsection (a) of this 898
section shall, for such income year, except when the tax so calculated is 899
equal to two hundred fifty dollars, be increased by adding thereto an 900
amount equal to ten per cent of the additional tax so calculated for such 901
income year, without reduction of the tax so calculated by the amount 902
of any credit against such tax. The increased amount of tax payable by 903
any company under this section, as determined in accordance with this 904
subsection, shall become due and be paid, collected and enforced as 905
provided in this chapter. 906
(B) Any company whose gross income for the income year was less 907
than one hundred million dollars shall not be subject to the additional 908
tax imposed under subparagraph (A) of this subdivision. This exception 909
shall not apply to taxable members of a combined group that files a 910
combined unitary tax return. 911
Sec. 14. Subdivision (3) of subsection (a) of section 12-217 of the 2020 912
supplement to the general statutes is repealed and the following is 913
substituted in lieu thereof (Effective October 1, 2020): 914
(3) Notwithstanding any provision of this section to the contrary, no 915
dividend received from a real estate investment trust shall be deductible 916
under this section by the recipient unless the dividend is: (A) Deductible 917 Raised Bill No. 5463
LCO No. 2364 30 of 64
under Section 243 of the Internal Revenue Code; (B) received by a 918
qualified dividend recipient from a qualified real estate investment trust 919
and, as of the last day of the period for which such dividend is paid, 920
persons, not including the qualified dividend recipient or any person 921
that is either a related person to, or an employee or director of, the 922
qualified dividend recipient, have outstanding cash cap ital 923
contributions to the qualified real estate investment trust that, in the 924
aggregate, exceed five per cent of the fair market value of the aggregate 925
real estate assets, valued as of the last day of the period for which such 926
dividend is paid, then held by the qualified real estate investment trust; 927
or (C) received from a captive real estate investment trust that is subject 928
to the tax imposed under this chapter. For purposes of this section, [a] 929
"related person" [is as defined in subdivision (7) of subsection (a) of 930
section 12-217m] has the same meaning as provided in section 12-217ii, 931
"real estate assets" [is as defined] has the same meaning as provided in 932
Section 856 of the Internal Revenue Code, [a] "qualified dividend 933
recipient" means a dividend recipient who has invested in a qualified 934
real estate investment trust prior to April 1, 1997, and [a] "qualified real 935
estate investment trust" means an entity that both was incorporated and 936
had contributed to it a minimum of five hundred million dollars' worth 937
of real estate assets prior to April 1, 1997, and that elects to be a real 938
estate investment trust under Section 856 of the Internal Revenue Code 939
prior to April 1, 1998. 940
Sec. 15. Subsection (a) of section 12-217zz of the 2020 supplement to 941
the general statutes is repealed and the following is substituted in lieu 942
thereof (Effective October 1, 2020): 943
(a) [Notwithstanding any other provision of law, and except] Except 944
as otherwise provided in subsection (b) of this section and sections 12-945
217aaa and 12-217bbb, the amount of tax credit or credits otherwise 946
allowable against the tax imposed under this chapter shall be as follows: 947
(1) For any income year commencing on or after January 1, 2002, and 948
prior to January 1, 2015, the amount of tax credit or credits otherwise 949
allowable shall not exceed seventy per cent of the amount of tax due 950 Raised Bill No. 5463
LCO No. 2364 31 of 64
from such taxpayer under this chapter with respect to any such income 951
year of the taxpayer prior to the application of such credit or credits; 952
(2) For any income year commencing on or after January 1, 2015, the 953
amount of tax credit or credits otherwise allowable shall not exceed fifty 954
and one one-hundredths per cent of the amount of tax due from such 955
taxpayer under this chapter with respect to any such income year of the 956
taxpayer prior to the application of such credit or credits; 957
(3) Notwithstanding the provisions of subdivision (2) of this 958
subsection, any taxpayer that possesses excess credits may utilize the 959
excess credits as follows: 960
(A) For income years commencing on or after January 1, 2016, and 961
prior to January 1, 2017, the aggregate amount of tax credits and excess 962
credits allowable shall not exceed fifty-five per cent of the amount of tax 963
due from such taxpayer under this chapter with respect to any such 964
income year of the taxpayer prior to the application of such credit or 965
credits; 966
(B) For income years commencing on or after January 1, 2017, and 967
prior to January 1, 2018, the aggregate amount of tax credits and excess 968
credits allowable shall not exceed sixty per cent of the amount of tax due 969
from such taxpayer under this chapter with respect to any such income 970
year of the taxpayer prior to the application of such credit or credits; and 971
(C) For income years commencing on or after January 1, 2018, and 972
prior to January 1, 2019, the aggregate amount of tax credits and excess 973
credits allowable shall not exceed sixty-five per cent of the amount of 974
tax due from such taxpayer under this chapter with respect to any such 975
income year of the taxpayer prior to the application of such credit or 976
credits; 977
(4) For purposes of this subsection, "excess credits" means any 978
remaining credits available under section 12-217j, 12-217n or 32-9t after 979
tax credits are utilized in accordance with subdivision (2) of this 980
subsection. 981 Raised Bill No. 5463
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Sec. 16. Subsection (i) of section 12-391 of the 2020 supplement to the 982
general statutes is repealed and the following is substituted in lieu 983
thereof (Effective October 1, 2020): 984
(i) [The] With respect to the estates of decedents dying on or after 985
January 1, 2021, the tax calculated pursuant to the provisions of this 986
section shall be reduced in an amount equal to half of the amount 987
invested by a decedent in a private investment fund or fund of funds 988
pursuant to subdivision (43) of section 32-39, provided (1) any such 989
reduction shall not exceed five million dollars for any such decedent, (2) 990
any such amount invested by the decedent shall have been invested in 991
such fund or fund of funds for ten years or more, and (3) the aggregate 992
amount of all taxes reduced under this subsection shall not exceed thirty 993
million dollars. 994
Sec. 17. Subsection (b) of section 12-408h of the 2020 supplement to 995
the general statutes is repealed and the following is substituted in lieu 996
thereof (Effective October 1, 2020): 997
(b) A short-term rental facilitator shall be required to obtain a permit 998
to collect the tax set forth in subparagraph (B) of subdivision (1) of 999
section 12-408 and shall be considered the retailer for each retail sale of 1000
a short-term rental that such facilitator facilitates on its platform for a 1001
short-term rental operator. Each short-term rental facilitator shall (1) be 1002
required to collect and remit for each such sale any tax imposed under 1003
section 12-408, (2) be responsible for all obligations imposed under this 1004
chapter as if such short-term rental facilitator was the operator of such 1005
[lodging house] short-term rental and retailer for such sale, and (3) keep 1006
such records and information as may be required by the Commissioner 1007
of Revenue Services to ensure proper collection and remittance of such 1008
tax. 1009
Sec. 18. Section 12-410 of the 2020 supplement to the general statutes 1010
is repealed and the following is substituted in lieu thereof (Effective 1011
October 1, 2020): 1012
[(1)] (a) For the purpose of the proper administration of this chapter 1013 Raised Bill No. 5463
LCO No. 2364 33 of 64
and to prevent evasion of the sales tax it shall be presumed that all 1014
receipts are gross receipts that are subject to the tax until the contrary is 1015
established. The burden of proving that a sale of tangible personal 1016
property or service constituting a sale in accordance with subdivision 1017
(2) of subsection (a) of section 12-407 is not a sale at retail is upon the 1018
person who makes the sale unless such person takes in good faith from 1019
the purchaser a certificate to the effect that the property or service is 1020
purchased for resale. 1021
[(2)] (b) The certificate relieves the seller from the burden of proof 1022
only if taken in good faith from a person who is engaged in the business 1023
of selling tangible personal property or services constituting a sale in 1024
accordance with subdivision (2) of subsection (a) of section 12-407 and 1025
who holds the permit provided for in section 12-409 and who, at the 1026
time of purchasing the tangible personal property or service: [(A)] (1) 1027
Intends to sell it in the regular course of business; [(B)] (2) intends to 1028
utilize such personal property in the delivery of landscaping or 1029
horticulture services, provided the total sale price of all such 1030
landscaping and horticulture services are taxable under this chapter; or 1031
[(C)] (3) is unable to ascertain at the time of purchase whether the 1032
property or service will be sold or will be used for some other purpose. 1033
The burden of establishing that a certificate is taken in good faith is on 1034
the seller. A certificate to the effect that property or service is purchased 1035
for resale taken from the purchaser by the seller shall be deemed to be 1036
taken in good faith if the tangible personal property or service 1037
purchased is similar to or of the same general character as property or 1038
service which the seller could reasonably assume would be sold by the 1039
purchaser in the regular course of business. 1040
[(3)] (c) The certificate shall be signed by and bear the name and 1041
address of the purchaser, shall indicate the number of the permit issued 1042
to the purchaser and shall indicate the general character of the tangible 1043
personal property or service sold by the purchaser in the regular course 1044
of business. The certificate shall be substantially in such form as the 1045
commissioner prescribes. 1046 Raised Bill No. 5463
LCO No. 2364 34 of 64
[(4) (A)] (d) (1) If a purchaser who gives a certificate makes any use 1047
of the service or property other than retention, demonstration or display 1048
while holding it for sale in the regular course of business, the use shall 1049
be deemed a retail sale by the purchaser as of the time the service or 1050
property is first used by the purchaser, and the cost of the service or 1051
property to the purchaser shall be deemed the gross receipts from such 1052
retail sale. 1053
[(B)] (2) Notwithstanding the provisions of [subparagraph (A) of this] 1054
subdivision (1) of this subsection, any use by a certificated air carrier of 1055
an aircraft for purposes other than retention, demonstration or display 1056
while holding it for sale in the regular course of business shall not be 1057
deemed a retail sale by such carrier as of the time the aircraft is first used 1058
by such carrier, irrespective of the classification of such aircraft on the 1059
balance sheet of such carrier for accounting and tax purposes. 1060
[(5) (A)] (e) (1) For the purpose of the proper administration of this 1061
chapter and to prevent evasion of the sales tax, a sale of any service 1062
described in subdivision (37) of subsection (a) of section 12-407 shall be 1063
considered a sale for resale only if the service to be resold is an integral, 1064
inseparable component part of a service described in said subdivision 1065
that is to be subsequently sold by the purchaser to an ultimate 1066
consumer. The purchaser of the service for resale shall maintain, in such 1067
form as the commissioner requires, records that substantiate: [(i)] (A) 1068
From whom the service was purchased and to whom the service was 1069
sold, [(ii)] (B) the purchase price of the service, and [(iii)] (C) the nature 1070
of the service to demonstrate that the services were an integral, 1071
inseparable component part of a service described in subdivision (37) of 1072
subsection (a) of section 12-407 that was subsequently sold to a 1073
consumer. 1074
[(B)] (2) Notwithstanding the provisions of [subparagraph (A) of this] 1075
subdivision (1) of this subsection, no sale of a service described in 1076
subdivision (37) of subsection (a) of section 12-407 by a seller shall be 1077
considered a sale for resale if such service is to be subsequently sold by 1078
the purchaser to an ultimate consumer that is affiliated with the 1079 Raised Bill No. 5463
LCO No. 2364 35 of 64
purchaser in the manner described in subparagraph (A) of subdivision 1080
(62) of section 12-412. 1081
[(C)] (3) For purposes of [subparagraph (A) of this] subdivision (1) of 1082
this subsection, the sale of canned or prewritten computer software shall 1083
be considered a sale for resale if such software is subsequently sold, 1084
licensed or leased unaltered by the purchaser to an ultimate consumer. 1085
The purchaser of the software for resale shall maintain, in such form as 1086
the commissioner requires, records that substantiate: [(i)] (A) From 1087
whom the software was purchased and to whom the software was sold, 1088
licensed or leased, [(ii)] (B) the purchase price of the software, and [(iii)] 1089
(C) the nature of the transaction with the ultimate consumer to 1090
demonstrate that the same software was provided unaltered to the 1091
ultimate consumer. 1092
[(D)] (4) For purposes of [subparagraph (A) of this] subdivision (1) of 1093
this subsection, the sale of digital goods shall be considered a sale for 1094
resale if the digital goods are subsequently sold, licensed, leased, 1095
broadcast, transmitted, or distributed, in whole or in part, as an integral, 1096
inseparable component part of a digital good or service described in 1097
subdivision (26), (27), (37) or (39) of subsection (a) of section 12-407 by 1098
the purchaser of the digital goods to an ultimate consumer. The 1099
purchaser of the digital goods for resale shall maintain, in such form as 1100
the commissioner requires, records that substantiate: [(i)] (A) From 1101
whom the digital goods were purchased and to whom the services 1102
described in subdivision (26), (27), (37) or (39) of subsection (a) of section 1103
12-407 was sold, licensed, leased, broadcast, transmitted, or distributed, 1104
in whole or in part, [(ii)] (B) the purchase price of the digital goods, and 1105
[(iii)] (C) the nature of the transaction with the ultimate consumer. 1106
[(E)] (5) For purposes of [subparagraph (A) of this] subdivision (1) of 1107
this subsection, the sale of services described in subdivision (37) of 1108
subsection (a) of section 12-407 shall be considered a sale for resale if 1109
such services are subsequently resold as an integral inseparable 1110
component part of digital goods sold by the purchaser of the services to 1111
an ultimate consumer of the digital goods. The purchaser of the services 1112 Raised Bill No. 5463
LCO No. 2364 36 of 64
described in subdivision (37) of subsection (a) of section 12-407 for resale 1113
shall maintain, in such form as the commissioner requires, records that 1114
substantiate: [(i)] (A) From whom the services described in subdivision 1115
(37) of subsection (a) of section 12-407 were [purchases] purchased and 1116
to whom the digital goods were sold, licensed, or leased, [(ii)] (B) the 1117
purchase prices of the services described in subdivision (37) of 1118
subsection (a) of section 12-407, and [(iii)] (C) the nature of the 1119
transaction with the ultimate consumer. 1120
[(6)] (f) For the purpose of the proper administration of this chapter 1121
and to prevent evasion of the sales tax, no sale of any service by a seller 1122
shall be considered a sale for resale if such service is to be subsequently 1123
sold by the purchaser, without change, to an ultimate consumer that is 1124
affiliated with the purchaser in the manner described in subparagraph 1125
(A) of subdivision (62) of section 12-412. 1126
Sec. 19. Subdivision (120) of section 12-412 of the 2020 supplement to 1127
the general statutes is repealed and the following is substituted in lieu 1128
thereof (Effective October 1, 2020): 1129
(120) [On and after April 1, 2015, sales] Sales of the following 1130
nonprescription drugs or medicines available for purchase for use in or 1131
on the body: Vitamin or mineral concentrates; dietary supplements; 1132
natural or herbal drugs or medicines; products intended to be taken for 1133
coughs, cold, asthma or allergies, or antihistamines; laxatives; 1134
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral 1135
and antifungal medicines; antiseptics; astringents; anesthetics; steroidal 1136
medicines; anthelmintics; emetics and antiemetics; antacids; and any 1137
medication prepared to be used in the eyes, ears or nose. 1138
Nonprescription drugs or medicines shall not include cosmetics, 1139
[dentrifrices] dentifrices, mouthwash, shaving and hair care products, 1140
soaps or deodorants. 1141
Sec. 20. Subsection (c) of section 12-414 of the general statutes is 1142
repealed and the following is substituted in lieu thereof (Effective October 1143
1, 2020): 1144 Raised Bill No. 5463
LCO No. 2364 37 of 64
(c) (1) For purposes of the sales tax, the return shall show the gross 1145
receipts of the seller during the preceding reporting period. For 1146
purposes of the use tax, [(1)] (A) in case of a return filed by a retailer, the 1147
return shall show the total sales price of the services or property sold by 1148
the retailer, the storage, acceptance, consumption or other use of which 1149
became subject to the use tax during the preceding reporting period, and 1150
[(2)] (B) in case of a return filed by a purchaser, the return shall show the 1151
total sales price of the service or property purchased by the purchaser, 1152
the storage, acceptance, consumption or other use of which became 1153
subject to the use tax during the preceding reporting period. The return 1154
shall also show the amount of the taxes for the period covered by the 1155
return in such manner as the commissioner may require and such other 1156
information as the commissioner deems necessary for the proper 1157
administration of this chapter. 1158
(2) The Commissioner of Revenue Services is authorized in his or her 1159
discretion, for purposes of expediency, to permit returns to be filed in 1160
an alternative form wherein the person filing the return may elect (A) to 1161
report his or her gross receipts, including the tax reimbursement to be 1162
collected as provided for in this section, as a part of such gross receipts, 1163
or (B) to report his or her gross receipts exclusive of the tax collected in 1164
such cases where the gross receipts from sales have been segregated 1165
from tax collections. In the case of [the former] a return filed in 1166
accordance with the provisions of subparagraph (A) of this subdivision, 1167
the percentage of such tax-included gross receipts that may be 1168
considered to be the gross receipts from sales exclusive of the taxes 1169
collected thereon shall be computed by dividing the numeral one by the 1170
sum of the rate of tax provided in section 12-408, expressed as a decimal, 1171
and the numeral one. 1172
Sec. 21. Section 12-433 of the general statutes is repealed and the 1173
following is substituted in lieu thereof (Effective October 1, 2020): 1174
Wherever used in this chapter, unless the context otherwise requires: 1175
(1) "Alcoholic beverage" and "beverage" include wine, beer and 1176 Raised Bill No. 5463
LCO No. 2364 38 of 64
liquor; [as defined in this section; "absolute alcohol"] 1177
(2) "Absolute alcohol" means dehydrated alcohol containing not less 1178
than ninety-nine per cent by weight of ethyl alcohol; ["beer"] 1179
(3) "Beer" means any beverage obtained by the alcoholic fermentation 1180
of an infusion or decoction of barley, malt and hops in drinking water 1181
and containing more than one-half of one per cent of absolute alcohol 1182
by volume; ["wine"] 1183
(4) "Wine" means any alcoholic beverage obtained by the 1184
fermentation of natural sugar contents of fruits or other agricultural 1185
products containing sugar; ["still wine"] 1186
(5) "Still wine" means any wine that contains not more than three 1187
hundred ninety-two one thousandths (0.392) of a gram of carbon 1188
dioxide per hundred milliliters of wine, and shall include any fortified 1189
wine, cider that is made from the alcoholic fermentation of the juice of 1190
apples, vermouth and any artificial or imitation wine or compound sold 1191
as "still wine" containing not less than three and two-tenths per cent of 1192
absolute alcohol by volume; ["sparkling wine"] 1193
(6) "Sparkling wine" means champagne and any other effervescent 1194
wine charged with more than three hundred ninety -two one 1195
thousandths (0.392) of a gram of carbon dioxide per hundred milliliters 1196
of wine, whether artificially or as a result of secondary fermentation of 1197
the wine within the container; ["fortified wine"] 1198
(7) "Fortified wine" means any wine, the alcoholic contents of which 1199
have been increased, by whatever process, beyond that produced by 1200
natural fermentation; ["liquor"] 1201
(8) "Liquor" means any beverage [which] that contains alcohol 1202
obtained by distillation mixed with drinkable water and other 1203
substances in solution; ["liquor cooler"] 1204
(9) "Liquor cooler" means any liquid combined with liquor, [as 1205
defined in this section,] containing not more than seven per cent of 1206 Raised Bill No. 5463
LCO No. 2364 39 of 64
alcohol by volume; ["gallon"] 1207
(10) "Gallon" or "wine gallon" means one hundred twenty-eight fluid 1208
ounces; ["proof gallon"] 1209
(11) "Proof gallon" means the equivalent of one wine gallon at 100 1210
proof; ["proof spirit"] 1211
(12) "Proof spirit" or "proof" [shall be held to be that] means alcoholic 1212
liquor [which] that contains one-half by volume of alcohol of a specific 1213
gravity of seventy-nine hundred and thirty-nine ten-thousandths 1214
(0.7939) at 60° F; ["alcohol"] 1215
(13) "Alcohol" means ethyl alcohol, hydrated oxide of ethyl or spirit 1216
of wine, from whatever source or by whatever process produced; 1217
["person"] 1218
(14) "Person" means any individual, firm, fiduciary, partnership, 1219
corporation, limited liability company, trust or association, however 1220
formed; ["taxpayer"] 1221
(15) "Taxpayer" means any person liable to taxation under this 1222
chapter except railroad and airline companies so far as they conduct 1223
such beverage business in cars or passenger trains or on airplanes; 1224
["distributor"] 1225
(16) "Distributor" means any person, wherever resident or located, 1226
[who] that holds a wholesaler's or manufacturer's permit or wholesaler 1227
or manufacturer permit for beer only issued under chapter 545, or [his] 1228
such person's backer, if any; ["licensed distributor"] 1229
(17) "Licensed distributor" means a distributor holding a license 1230
issued by the Commissioner of Revenue Services under the provisions 1231
of this chapter; ["tax period"] 1232
(18) "Tax period" means any period of one calendar month, or any 1233
part thereof; ["barrel"] 1234 Raised Bill No. 5463
LCO No. 2364 40 of 64
(19) "Barrel" means not less than twenty-eight nor more than thirty-1235
one gallons; ["half barrel"] 1236
(20) "Half barrel" means not less than fourteen nor more than fifteen 1237
and one-half gallons; ["quarter barrel"] 1238
(21) "Quarter barrel" means not less than seven nor more than seven 1239
and three-quarters gallons; ["sell"] 1240
(22) "Sell" or "sale" includes and applies to gifts, exchanges and barter 1241
and includes any alcoholic beverages coming into the possession of a 1242
distributor [which] that cannot be satisfactorily accounted for by the 1243
distributor to the Commissioner of Revenue Services. 1244
Sec. 22. Section 12-438 of the general statutes is repealed and the 1245
following is substituted in lieu thereof (Effective October 1, 2020): 1246
Any person [who] that applies for a cancellation of [his] such person's 1247
distributor's license shall take an inventory at the beginning of business 1248
on the first day of the following month showing the number of gallons 1249
of each kind of alcoholic beverage mentioned in section 12-435 owned 1250
by [him] such person and held within the state. Each such person shall, 1251
[within] not later than fifteen days after taking such inventory, file a 1252
copy of such inventory with the commissioner, on forms prescribed and 1253
furnished by [him] the commissioner, and shall pay a tax on such 1254
inventory at the rates specified in said section 12-435. Each return filed 1255
under the provisions of this section shall give such additional 1256
information as the commissioner requires and shall include a statement 1257
of the amount of tax due under such return. 1258
Sec. 23. Subsection (c) of section 12-458 of the general statutes is 1259
repealed and the following is substituted in lieu thereof (Effective October 1260
1, 2020): 1261
(c) Any person who owns or operates a vehicle that runs only upon 1262
rails or tracks and that is properly registered with the federal 1263
government, in accordance with the provisions of Section 4222 of the 1264 Raised Bill No. 5463
LCO No. 2364 41 of 64
Internal Revenue Code of 1986, or any subsequent corresponding 1265
internal revenue code of the United States, as amended from time to 1266
time, shall be exempt from paying to a distributor the motor fuels tax 1267
imposed pursuant to this section for use in such vehicle. 1268
Sec. 24. Section 12-587 of the general statutes is repealed and the 1269
following is substituted in lieu thereof (Effective October 1, 2020): 1270
(a) (1) As used in this chapter: (A) "Company" includes a corporation, 1271
partnership, limited partnership, limited liability company, limited 1272
liability partnership, association, individual or any fiduciary thereof; (B) 1273
"quarterly period" means a period of three calendar months 1274
commencing on the first day of January, April, July or October and 1275
ending on the last day of March, June, September or December, 1276
respectively; (C) except as provided in subdivision (2) of this subsection, 1277
"gross earnings" means all consideration received from the first sale 1278
within this state of a petroleum product; (D) "petroleum products" 1279
means those products which contain or are made from petroleum or a 1280
petroleum derivative; (E) "first sale of petroleum products within this 1281
state" means the initial sale of a petroleum product delivered to a 1282
location in this state; (F) "export" or "exportation" means the conveyance 1283
of petroleum products from within this state to a location outside this 1284
state for the purpose of sale or use outside this state; and (G) "sale for 1285
exportation" means a sale of petroleum products to a purchaser which 1286
itself exports such products. 1287
(2) For purposes of this chapter, "gross earnings" means gross 1288
earnings as defined in subdivision (1) of this subsection, except, with 1289
respect to the first sale of gasoline or gasohol within this state, if the 1290
consideration received from such first sale reflects a price of gasoline or 1291
gasohol sold or used in this state in excess of three dollars per gallon, 1292
gross earnings from such first sale shall be deemed to be three dollars 1293
per gallon, and any consideration received that is derived from that 1294
portion of the price of such gasoline or gasohol in excess of three dollars 1295
per gallon shall be disregarded in the calculation of gross earnings. 1296
Notwithstanding the provisions of this chapter, the Commissioner of 1297 Raised Bill No. 5463
LCO No. 2364 42 of 64
Revenue Services may suspend enforcement activities with respect to 1298
this subdivision until all policies and procedures necessary to 1299
implement the provision of this subdivision are in place, but in no event 1300
shall such suspension extend beyond April 15, 2012. 1301
(b) (1) Except as otherwise provided in subdivision (2) of this 1302
subsection, any company [which] that is engaged in the refining or 1303
distribution, or both, of petroleum products and which distributes such 1304
products in this state shall pay a quarterly tax on its gross earnings 1305
derived from the first sale of petroleum products within this state. Each 1306
company shall on or before the last day of the month next succeeding 1307
each quarterly period render to the commissioner a return on forms 1308
prescribed or furnished by the commissioner and signed by the person 1309
performing the duties of treasurer or an authorized agent or officer, 1310
including the amount of gross earnings derived from the first sale of 1311
petroleum products within this state for the quarterly period and such 1312
other facts as the commissioner may require for the purpose of making 1313
any computation required by this chapter. [Except as otherwise 1314
provided in subdivision (3) of this subsection, the] The rate of tax shall 1315
be (A) [five per cent with respect to calendar quarters prior to July 1, 1316
2005; (B) five and eight-tenths per cent with respect to calendar quarters 1317
commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six 1318
and three-tenths per cent with respect to calendar quarters commencing 1319
on or after July 1, 2006, and prior to July 1, 2007; (D)] seven per cent with 1320
respect to calendar quarters commencing on or after July 1, 2007, and 1321
prior to July 1, 2013; and [(E)] (B) eight and one-tenth per cent with 1322
respect to calendar quarters commencing on or after July 1, 2013. 1323
(2) Gross earnings derived from the first sale of the following 1324
petroleum products within this state shall be exempt from tax: 1325
(A) Any petroleum products sold for exportation from this state for 1326
sale or use outside this state; 1327
(B) [the] The product designated by the American Society for Testing 1328
and Materials as "Specification for Heating Oil D396-69", commonly 1329 Raised Bill No. 5463
LCO No. 2364 43 of 64
known as number 2 heating oil, to be used exclusively for heating 1330
purposes or to be used in a commercial fishing vessel, which vessel 1331
qualifies for an exemption pursuant to subdivision (40) of section 12-1332
412; 1333
(C) [kerosene] Kerosene, commonly known as number 1 oil, to be 1334
used exclusively for heating purposes, provided delivery is of both 1335
number 1 and number 2 oil, and via a truck with a metered delivery 1336
ticket to a residential dwelling or to a centrally metered system serving 1337
a group of residential dwellings; 1338
(D) [the] The product identified as propane gas, to be used primarily 1339
for heating purposes; 1340
(E) [bunker] Bunker fuel oil, intermediate fuel, marine diesel oil and 1341
marine gas oil to be used in any vessel (i) having a displacement 1342
exceeding four thousand dead weight tons, or (ii) primarily engaged in 1343
interstate commerce; 1344
(F) [for] For any first sale occurring prior to July 1, 2008, propane gas 1345
to be used as a fuel for a motor vehicle; 1346
(G) [for] For any first sale occurring on or after July 1, 2002, grade 1347
number 6 fuel oil, as defined in regulations adopted pursuant to section 1348
16a-22c, to be used exclusively by a company [which] that, in accordance 1349
with census data contained in the Standard Industrial Classification 1350
Manual, United States Office of Management and Budget, 1987 edition, 1351
is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 1352
32 or 33 in the North American Industrial Classification System United 1353
States Manual, United States Office of Management and Budget, 1997 1354
edition; 1355
(H) [for] For any first sale occurring on or after July 1, 2002, number 1356
2 heating oil to be used exclusively in a vessel primarily engaged in 1357
interstate commerce, which vessel qualifies for an exemption under 1358
subdivision (40) of section 12-412; 1359 Raised Bill No. 5463
LCO No. 2364 44 of 64
(I) [for] For any first sale occurring on or after July 1, 2000, paraffin or 1360
microcrystalline waxes; 1361
(J) [for] For any first sale occurring prior to July 1, 2008, petroleum 1362
products to be used as a fuel for a fuel cell, as defined in subdivision 1363
(113) of section 12-412; 1364
(K) [a] A commercial heating oil blend containing not less than ten 1365
per cent of alternative fuels derived from agricultural produce, food 1366
waste, waste vegetable oil or municipal solid waste, including, but not 1367
limited to, biodiesel or low sulfur dyed diesel fuel; 1368
(L) [for] For any first sale occurring on or after July 1, 2007, diesel fuel 1369
other than diesel fuel to be used in an electric generating facility to 1370
generate electricity; 1371
(M) [for] For any first sale occurring on or after July 1, 2013, cosmetic 1372
grade mineral oil; or 1373
(N) [propane] Propane gas to be used as a fuel for a school bus. 1374
[(3) The rate of tax on gross earnings derived from the first sale of 1375
grade number 6 fuel oil, as defined in regulations adopted pursuant to 1376
section 16a-22c, to be used exclusively by a company which, in 1377
accordance with census data contained in the Standard Industrial 1378
Classification Manual, United States Office of Management and Budget, 1379
1987 edition, is included in code classifications 2000 to 3999, inclusive, 1380
or in Sector 31, 32 or 33 in the North American Industrial Classification 1381
System United States Manual, United States Office of Management and 1382
Budget, 1997 edition, or number 2 heating oil used exclusively in a 1383
vessel primarily engaged in interstate commerce, which vessel qualifies 1384
for an exemption under section 12-412 shall be: (A) Four per cent with 1385
respect to calendar quarters commencing on or after July 1, 1998, and 1386
prior to July 1, 1999; (B) three per cent with respect to calendar quarters 1387
commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two 1388
per cent with respect to calendar quarters commencing on or after July 1389
1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to 1390 Raised Bill No. 5463
LCO No. 2364 45 of 64
calendar quarters commencing on or after July 1, 2001, and prior to July 1391
1, 2002.] 1392
(c) (1) Any company [which] that imports or causes to be imported 1393
into this state petroleum products for sale, use or consumption in this 1394
state, other than a company subject to and having paid the tax on such 1395
company's gross earnings from first sales of petroleum products within 1396
this state, which earnings include gross earnings attributable to such 1397
imported or caused to be imported petroleum products, in accordance 1398
with subsection (b) of this section, shall pay a quarterly tax on the 1399
consideration given or contracted to be given for such petroleum 1400
product if the consideration given or contracted to be given for all such 1401
deliveries during the quarterly period for which such tax is to be paid 1402
exceeds three thousand dollars. [Except as otherwise provided in 1403
subdivision (3) of this subsection, the] The rate of tax shall be (A) [five 1404
per cent with respect to calendar quarters commencing prior to July 1, 1405
2005; (B) five and eight-tenths per cent with respect to calendar quarters 1406
commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six 1407
and three-tenths per cent with respect to calendar quarters commencing 1408
on or after July 1, 2006, and prior to July 1, 2007; (D)] seven per cent with 1409
respect to calendar quarters commencing on or after July 1, 2007, and 1410
prior to July 1, 2013; and [(E)] (B) eight and one-tenth per cent with 1411
respect to calendar quarters commencing on or after July 1, 2013. Fuel in 1412
the fuel supply tanks of a motor vehicle, which fuel tanks are directly 1413
connected to the engine, shall not be considered a delivery for the 1414
purposes of this subsection. 1415
(2) Consideration given or contracted to be given for petroleum 1416
products, gross earnings from the first sale of which are exempt from 1417
tax under subdivision (2) of subsection (b) of this section, shall be 1418
exempt from tax. 1419
[(3) The rate of tax on consideration given or contracted to be given 1420
for grade number 6 fuel oil, as defined in regulations adopted pursuant 1421
to section 16a-22c, to be used exclusively by a company which, in 1422
accordance with census data contained in the Standard Industrial 1423 Raised Bill No. 5463
LCO No. 2364 46 of 64
Classification Manual, United States Office of Management and Budget, 1424
1987 edition, is included in code classifications 2000 to 3999, inclusive, 1425
or in Sector 31, 32 or 33 in the North American Industrial Classification 1426
System United States Manual, United States Office of Management and 1427
Budget, 1997 edition, or number 2 heating oil used exclusively in a 1428
vessel primarily engaged in interstate commerce, which vessel qualifies 1429
for an exemption under section 12-412 shall be: (A) Four per cent with 1430
respect to calendar quarters commencing on or after July 1, 1998, and 1431
prior to July 1, 1999; (B) three per cent with respect to calendar quarters 1432
commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two 1433
per cent with respect to calendar quarters commencing on or after July 1434
1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to 1435
calendar quarters commencing on or after July 1, 2001, and prior to July 1436
1, 2002.] 1437
(d) The amount of tax reported to be due on such return shall be due 1438
and payable on or before the last day of the month next succeeding the 1439
quarterly period. The tax imposed under the provisions of this chapter 1440
shall be in addition to any other tax imposed by this state on such 1441
company. 1442
(e) For the purposes of this chapter, the gross earnings of any 1443
producer or refiner of petroleum products operating a service station 1444
along the highways or interstate highways within the state pursuant to 1445
a contract with the Department of Transportation or operating a service 1446
station which is used as a training or test marketing center under the 1447
provisions of subsection (b) of section 14-344d, shall be calculated by 1448
multiplying the volume of petroleum products delivered by any 1449
producer or refiner to any such station by such producer's or refiner's 1450
dealer tank wagon price or dealer wholesale price in the area of the 1451
service station. 1452
Sec. 25. Subsection (a) of section 12-587a of the general statutes is 1453
repealed and the following is substituted in lieu thereof (Effective October 1454
1, 2020): 1455 Raised Bill No. 5463
LCO No. 2364 47 of 64
(a) (1) Any company, as such term is used in section 12-587, as 1456
amended by this act, liable for the tax imposed under subsection (b) of 1457
[said] section 12-587, as amended by this act, on gross earnings from the 1458
first sale of petroleum products within this state, which products the 1459
purchaser thereof subsequently sells for exportation and sale or use 1460
outside this state, shall be allowed a credit against any tax for which 1461
such company is liable in accordance with subsection (b) of [said] 1462
section 12-587, as amended by this act, in the amount of tax paid to the 1463
state with respect to the sale of such products, provided (A) such 1464
purchaser has submitted certification to such company, in such form as 1465
prescribed by the Commissioner of Revenue Services, that such 1466
products were sold or used outside this state, (B) such certification and 1467
any additional information related to such sale or use by such 1468
purchaser, which said commissioner may request, have been submitted 1469
to said commissioner, and (C) such company makes a payment to such 1470
purchaser, related to such products sold or used outside this state, in the 1471
amount equal to the tax imposed under [said] section 12-587, as 1472
amended by this act, on gross earnings from the first sale to such 1473
purchaser within the state. 1474
(2) The credit allowed pursuant to subdivision (1) of this subsection 1475
may also be claimed, in the same manner as provided in said 1476
subdivision (1), by any such company when the petroleum products 1477
sold in a first sale within this state by such company are incorporated 1478
by the purchaser thereof into a material that is included in U.S. industry 1479
group 3255 in the North American Industrial Classification System 1480
United States Manual, United States Office of Management and Budget, 1481
2007 edition, and such products are subsequently exported for sale or 1482
use outside this state. Such company shall be allowed said credit in the 1483
amount of tax paid to the state with respect to the sale of such products. 1484
(3) In addition, such company shall be allowed such credit when 1485
there has been any sale of such products subsequent to the sale by such 1486
company but prior to sale or use outside this state, provided (A) each 1487
purchaser receives payment, related to such products sold or used 1488
outside this state, equal to the tax imposed under [said] section 12-587, 1489 Raised Bill No. 5463
LCO No. 2364 48 of 64
as amended by this act, on gross earnings from the first sale of such 1490
products within this state, and (B) the purchaser selling or using such 1491
products outside this state complies with the requirements in this 1492
section related to a purchaser of such products from the company liable 1493
for such tax. 1494
Sec. 26. Section 12-631 of the general statutes is repealed and the 1495
following is substituted in lieu thereof (Effective October 1, 2020): 1496
As used in this chapter, the following terms have the following 1497
meanings: 1498
[(a)] (1) "Business firm" means any business entity authorized to do 1499
business in the state and subject to the tax due under the provisions of 1500
chapter 207, 208, 209, 210, 211, 212 or 213a. 1501
[(b)] (2) "Community services" means any type of counseling and 1502
advice, emergency assistance or medical care furnished to individuals 1503
or groups in the state. 1504
[(c)] (3) "Crime prevention" means any activity which aids in the 1505
reduction of crime in the state. 1506
[(d)] (4) "Education" means any type of scholastic instruction or 1507
scholarship assistance to any person who resides in the state that enables 1508
such person to prepare for better opportunities, including teaching 1509
services donated pursuant to section 10-21c. 1510
[(e)] (5) "Job training" means any type of instruction to any person 1511
who resides in the state that enables such person to acquire vocational 1512
skills to become employable or seek a higher grade of employment, 1513
including training offered pursuant to section 10-21b. 1514
[(f)] (6) "Neighborhood" means any specific geographic area, urban, 1515
interurban, suburban, or rural, which is experiencing problems 1516
endangering its existence as a viable and stable neighborhood. 1517
[(g)] (7) "Neighborhood assistance" means the furnishing of financial 1518 Raised Bill No. 5463
LCO No. 2364 49 of 64
assistance, labor, material, or technical advice to aid in the physical 1519
improvement or rehabilitation of all or any part of a neighborhood. 1520
[(h)] (8) "Neighborhood organization" means any organization 1521
performing community services in the state [which: (1)] that: (A) Holds 1522
a ruling from the Internal Revenue Service of the United States 1523
Department of the Treasury that the organization is exempt from 1524
income taxation under the provisions of the Internal Revenue Code; [, 1525
or (2)] (B) is designated as a community development corporation by 1526
the United States government under the provisions of Title VII of the 1527
Economic Opportunity Act of 1964; [, or (3)] or (C) is incorporated as a 1528
charitable corporation or trust under the provisions of chapter 598a. 1529
[(i)] (9) "Families of low and moderate income" means families 1530
meeting the criteria for designation as families of low and moderate 1531
income established by the Commissioner of Housing pursuant to 1532
subsection (f) of section 8-39. 1533
Sec. 27. Subdivision (1) of subsection (a) of section 12-632 of the 1534
general statutes is repealed and the following is substituted in lieu 1535
thereof (Effective October 1, 2020): 1536
(a) (1) Except as otherwise provided in subdivision (2) of this 1537
subsection, on or before July first of each year, any municipality desiring 1538
to obtain benefits under the provisions of this chapter shall, after 1539
approval by the legislative body of such municipality, submit to the 1540
Commissioner of Revenue Services a list on a form prescribed and made 1541
available by the commissioner of programs eligible for investment by 1542
business firms under the provisions of this chapter. Such activities shall 1543
consist of providing neighborhood assistance; job training or education; 1544
community services; crime prevention; energy conservation or 1545
construction or rehabilitation of dwelling units for families of low and 1546
moderate income in the state; donation of money to an open space 1547
acquisition fund of any political subdivision of the state or any nonprofit 1548
land conservation organization, which fund qualifies under [subsection 1549
(h)] subdivision (8) of section 12-631, as amended by this act, and is used 1550 Raised Bill No. 5463
LCO No. 2364 50 of 64
for the purchase of land, interest in land or permanent conservation 1551
restriction on land which is to be permanently preserved as protected 1552
open space; or any of the activities described in section 12-634, 12-635 or 1553
12-635a. Such list shall indicate, for each program specified: The concept 1554
of the program, the neighborhood area to be served, why the program 1555
is needed, the estimated amount required to be invested in the program, 1556
the suggested plan for implementing the program, the agency 1557
designated by the municipality to oversee implementation of the 1558
program and such other information as the commissioner may 1559
prescribe. Each municipality shall hold at least one public hearing on 1560
the subject of which programs shall be included on such list prior to the 1561
submission of such list to the commissioner. 1562
Sec. 28. Subsection (c) of section 12-632 of the general statutes is 1563
repealed and the following is substituted in lieu thereof (Effective October 1564
1, 2020): 1565
(c) Any business firm which desires to engage in any of the activities 1566
or programs approved by any municipality pursuant to subsection (a) 1567
of this section and listed pursuant to subsection (b) of this section may 1568
apply to the Commissioner of Revenue Services for a tax credit in an 1569
amount as provided in section 12-633, 12-634, 12-635 or 12-635a. The 1570
proposal for such credit, which shall be made on a form prescribed and 1571
made available by the commissioner, shall set forth the program to be 1572
conducted, the neighborhood area to be invested in, the plans for 1573
implementing the program and such other information as said 1574
commissioner may prescribe. Such proposals shall be submitted to the 1575
commissioner on or after September fifteenth but no later than October 1576
first of each year. Such proposals shall be approved or disapproved by 1577
the Commissioner of Revenue Services based on the compliance of such 1578
proposal with the provisions of this chapter and regulations adopted 1579
pursuant to this chapter. The commissioner may only approve 1580
proposals received between September fifteenth and October first of 1581
each year. If, in the opinion of the Commissioner of Revenue Services, a 1582
business firm's investment can, for the purposes of this chapter, be made 1583
through contributions to a neighborhood organization as defined in 1584 Raised Bill No. 5463
LCO No. 2364 51 of 64
[subsection (h)] subdivision (8) of section 12-631, as amended by this act, 1585
tax credits may be allowed in amounts as provided in section 12-633, 12-1586
634, 12-635 or 12-635a. 1587
Sec. 29. Subsection (f) of section 12-632 of the general statutes is 1588
repealed and the following is substituted in lieu thereof (Effective October 1589
1, 2020): 1590
(f) The sum of all tax [credit] credits granted pursuant to the 1591
provisions of section 12-633, 12-634, 12-635 or 12-635a shall not exceed 1592
one hundred fifty thousand dollars annually per business firm and no 1593
tax credit shall be granted to any business firm for any individual 1594
amount invested of less than two hundred fifty dollars. 1595
Sec. 30. Section 17b-738 of the general statutes is repealed and the 1596
following is substituted in lieu thereof (Effective October 1, 2020): 1597
The Commissioner of Early Childhood shall establish and administer 1598
a program of loans to business firms, as defined in [subsection (a) of] 1599
section 12-631, as amended by this act, for the purpose of planning, site 1600
preparation, construction, renovation or acquisition of facilities, within 1601
the state, for use as licensed child care centers, family child care homes 1602
or group child care homes to be used primarily by the children of 1603
employees of such corporations and children of employees of the 1604
municipalities in which such facilities are located. Such loans shall be 1605
made in accordance with the terms and conditions as provided in 1606
regulations adopted by the commissioner, in accordance with chapter 1607
54, shall be made for a period not to exceed five years and shall bear 1608
interest at a rate to be determined in accordance with subsection (t) of 1609
section 3-20. 1610
Sec. 31. Section 12-657 of the general statutes is repealed and the 1611
following is substituted in lieu thereof (Effective October 1, 2020): 1612
The administration of this chapter is vested in the Commissioner of 1613
Revenue Services. All forms necessary and proper for the enforcement 1614
of this chapter shall be prescribed and furnished by the commissioner. 1615 Raised Bill No. 5463
LCO No. 2364 52 of 64
The commissioner may require any agent, clerk, stenographer or other 1616
assistant to execute a bond in such sum as said commissioner 1617
determines for the faithful discharge of his duties. The commissioner 1618
may prescribe regulations and rulings, not inconsistent with law, to 1619
carry into effect the provisions of this chapter, which regulations and 1620
rulings, when reasonably designed to carry out the intent and purpose 1621
of this chapter, shall be prima facie evidence of its proper interpretation. 1622
The commissioner shall, at least annually, and [oftener in his] more 1623
often at the commissioner's discretion, publish for distribution all 1624
regulations prescribed hereunder and such rulings as appear to [him] 1625
the commissioner to be of general interest. 1626
Sec. 32. Subdivision (1) of subsection (b) of section 12-699a of the 2020 1627
supplement to the general statutes is repealed and the following is 1628
substituted in lieu thereof (Effective October 1, 2020): 1629
(b) (1) Each affected business entity required to pay the tax imposed 1630
under section 12-699 and whose required annual payment for the 1631
taxable year is greater than or equal to one thousand dollars shall make 1632
the required annual payment each taxable year, in four required 1633
estimated tax installments on the following due dates: (A) For the first 1634
required installment, the fifteenth day of the fourth month of the taxable 1635
year; (B) for the second required installment, the fifteenth day of the 1636
sixth month of the taxable year; (C) for the third required installment, 1637
the fifteenth day of the ninth month of the taxable year; [,] and (D) for 1638
the fourth required installment, the fifteenth day of the first month of 1639
the next succeeding taxable year. An affected business entity may elect 1640
to pay any required installment prior to the specified due date. Except 1641
as provided in subdivision (2) of this subsection, the amount of each 1642
required installment shall be twenty-five per cent of the required annual 1643
payment. 1644
Sec. 33. Subdivision (10) of subsection (a) of section 12-701 of the 2020 1645
supplement to the general statutes is repealed and the following is 1646
substituted in lieu thereof (Effective October 1, 2020): 1647 Raised Bill No. 5463
LCO No. 2364 53 of 64
(10) "Connecticut fiduciary adjustment" means the net positive or 1648
negative total of the following items relating to income, gain, loss or 1649
deduction of a trust or estate: 1650
(A) There shall be added together: 1651
(i) [any] Any interest income from obligations issued by or on behalf 1652
of any state, political subdivision thereof, or public instrumentality, 1653
state or local authority, district or similar public entity, exclusive of such 1654
income from obligations issued by or on behalf of the state of 1655
Connecticut, any political subdivision thereof, or public 1656
instrumentality, state or local authority, district or similar public entity 1657
created under the laws of the state of Connecticut and exclusive of any 1658
such income with respect to which taxation by any state is prohibited by 1659
federal law; [,] 1660
(ii) [any] Any exempt-interest dividends, as defined in Section 1661
852(b)(5) of the Internal Revenue Code, exclusive of such exempt-1662
interest dividends derived from obligations issued by or on behalf of the 1663
state of Connecticut, any political subdivision thereof, or public 1664
instrumentality, state or local authority, district or similar public entity 1665
created under the laws of the state of Connecticut and exclusive of such 1666
exempt-interest dividends derived from obligations, the income with 1667
respect to which taxation by any state is prohibited by federal law; [,] 1668
(iii) [any] Any interest or dividend income on obligations or securities 1669
of any authority, commission or instrumentality of the United States 1670
[which] that federal law exempts from federal income tax but does not 1671
exempt from state income taxes; [,] 1672
(iv) [to] To the extent properly includable in determining the net gain 1673
or loss from the sale or other disposition of capital assets for federal 1674
income tax purposes, any loss from the sale or exchange of obligations 1675
issued by or on behalf of the state of Connecticut, any political 1676
subdivision thereof, or public instrumentality, state or local authority, 1677
district or similar public entity created under the laws of the state of 1678
Connecticut, in the income year such loss was recognized; [,] 1679 Raised Bill No. 5463
LCO No. 2364 54 of 64
(v) [to] To the extent deductible in determining federal taxable 1680
income prior to deductions relating to distributions to beneficiaries, any 1681
income taxes imposed by this state; [,] 1682
(vi) [to] To the extent deductible in determining federal taxable 1683
income prior to deductions relating to distributions to beneficiaries, any 1684
interest on indebtedness incurred or continued to purchase or carry 1685
obligations or securities the interest on which is exempt from tax under 1686
this chapter; [,] 1687
(vii) [expenses] Expenses paid or incurred during the taxable year for 1688
the production or collection of income which is exempt from tax under 1689
this chapter, or the management, conservation or maintenance of 1690
property held for the production of such income, and the amortizable 1691
bond premium for the taxable year on any bond the interest on which is 1692
exempt from taxation under this chapter, to the extent that such 1693
expenses and premiums are deductible in determining federal taxable 1694
income prior to deductions relating to distributions to beneficiaries; [,] 1695
(viii) [to] To the extent deductible in determining federal taxable 1696
income prior to deductions relating to distributions to beneficiaries, the 1697
deduction allowable as qualified domestic production activities income, 1698
pursuant to Section 199 of the Internal Revenue Code; [,] and 1699
(ix) [to] To the extent not includable in federal taxable income prior 1700
to deductions relating to distributions to beneficiaries, the total amount 1701
of a lump sum distribution for the taxable year. 1702
(B) There shall be subtracted from the sum of such items: 1703
(i) [to] To the extent properly includable in gross income for federal 1704
income tax purposes, any income with respect to which taxation by any 1705
state is prohibited by federal law; [,] 1706
(ii) [to] To the extent allowable under section 12-718, exempt 1707
dividends paid by a regulated investment company; [,] 1708
(iii) [with] With respect to any trust or estate [which] that is a 1709 Raised Bill No. 5463
LCO No. 2364 55 of 64
shareholder of an S corporation [which] that is carrying on, or [which] 1710
that has the right to carry on, business in this state, as said term is used 1711
in section 12-214, as amended by this act, the amount of such 1712
shareholder's pro rata share of such corporation's nonseparately 1713
computed items, as defined in Section 1366 of the Internal Revenue 1714
Code, that is subject to tax under chapter 208, in accordance with 1715
subsection (c) of section 12-217 multiplied by such corporation's 1716
apportionment fraction, if any, as determined in accordance with 1717
section 12-218; [,] 1718
(iv) [to] To the extent properly includable in gross income for federal 1719
income tax purposes, any interest income from obligations issued by or 1720
on behalf of the state of Connecticut, any political subdivision thereof, 1721
or public instrumentality, state or local authority, district or similar 1722
public entity created under the laws of the state of Connecticut; [,] 1723
(v) [to] To the extent properly includable in determining the net gain 1724
or loss from the sale or other disposition of capital assets for federal 1725
income tax purposes, any gain from the sale or exchange of obligations 1726
issued by or on behalf of the state of Connecticut, any political 1727
subdivision thereof, or public instrumentality, state or local authority, 1728
district or similar public entity created under the laws of the state of 1729
Connecticut, in the income year such gain was recognized; [,] 1730
(vi) [any] Any interest on indebtedness incurred or continued to 1731
purchase or carry obligations or securities the interest on which is 1732
subject to tax under this chapter, but exempt from federal income tax, to 1733
the extent that such interest on indebtedness is not deductible in 1734
determining federal taxable income prior to deductions relating to 1735
distributions to beneficiaries; [,] 1736
(vii) [ordinary] Ordinary and necessary expenses paid or incurred 1737
during the taxable year for the production or collection of income 1738
[which] that is subject to taxation under this chapter, but exempt from 1739
federal income tax, or the management, conservation or maintenance of 1740
property held for the production of such income, and the amortizable 1741 Raised Bill No. 5463
LCO No. 2364 56 of 64
bond premium for the taxable year on any bond the interest on which is 1742
subject to tax under this chapter, but exempt from federal income tax, to 1743
the extent that such expenses and premiums are not deductible in 1744
determining federal taxable income prior to deductions relating to 1745
distributions to beneficiaries; [,] and 1746
(viii) [the] The amount of any refund or credit for overpayment of 1747
income taxes imposed by this state, to the extent properly includable in 1748
gross income for federal income tax purposes for the taxable year and to 1749
the extent deductible in determining federal taxable income prior to 1750
deductions relating to distributions to beneficiaries for the preceding 1751
taxable year. 1752
Sec. 34. Subdivision (24) of subsection (a) of section 12-701 of the 2020 1753
supplement to the general statutes is repealed and the following is 1754
substituted in lieu thereof (Effective October 1, 2020): 1755
(24) "Adjusted federal tentative minimum tax" of an individual 1756
means such individual's federal tentative minimum tax or, in the case of 1757
an individual whose Connecticut adjusted gross income includes 1758
modifications described in subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), 1759
(A)(vii) or (A)(viii) of subdivision (20) of this subsection [(a) of this 1760
section] or subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), 1761
(B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision (20) of this subsection, 1762
[(a) of this section,] the amount that would have been the federal 1763
tentative minimum tax if such tax were calculated by including, to the 1764
extent not includable in federal alternative minimum taxable income, 1765
the modifications described in subparagraph (A)(i), (A)(ii), (A)(v), 1766
(A)(vi), (A)(vii) or (A)(viii) of subdivision (20) of this subsection, [(a) of 1767
this section,] by excluding, to the extent includable in federal alternative 1768
minimum taxable income, the modifications described in subparagraph 1769
(B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or 1770
(B)(xv) of subdivision (20) of this subsection [(a) of this section,] and by 1771
excluding, to the extent includable in federal alternative minimum 1772
taxable income, the amount of any interest income or exempt-interest 1773
dividends, as defined in Section 852(b)(5) of the Internal Revenue Code, 1774 Raised Bill No. 5463
LCO No. 2364 57 of 64
from obligations that are issued by or on behalf of the state of 1775
Connecticut, any political subdivision thereof, or public 1776
instrumentality, state or local authority, district, or similar public entity 1777
that is created under the laws of the state of Connecticut, or from 1778
obligations that are issued by or on behalf of any territory or possession 1779
of the United States, any political subdivision of such territory or 1780
possession, or public instrumentality, authority, district or similar 1781
public entity of such territory or possession, the income with respect to 1782
which taxation by any state is prohibited by federal law. If such 1783
individual is a beneficiary of a trust or estate, then, in calculating his or 1784
her federal tentative minimum tax, his or her federal alternative taxable 1785
income shall be increased or decreased, as the case may be, by the net 1786
amount of such individual's proportionate share of the Connecticut 1787
fiduciary adjustment relating to modifications that are described in, to 1788
the extent not includable in federal alternative minimum taxable 1789
income, subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) 1790
of subdivision (20) of this subsection, [(a) of this section,] or, to the extent 1791
includable in federal alternative minimum taxable income, 1792
subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), 1793
(B)(xiii) or (B)(xv) of subdivision (20) of this subsection. [(a) of this 1794
section.] 1795
Sec. 35. Subdivision (30) of subsection (a) of section 12-701 of the 2020 1796
supplement to the general statutes is repealed and the following is 1797
substituted in lieu thereof (Effective October 1, 2020): 1798
(30) "Adjusted federal alternative minimum taxable income" of an 1799
individual means his or her federal alternative minimum taxable 1800
income or, in the case of an individual whose Connecticut adjusted 1801
gross income includes modifications described in subparagraph (A)(i), 1802
(A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) of subdivision (20) of this 1803
subsection [(a) of this section] or subparagraph (B)(i), (B)(ii), (B)(v), 1804
(B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision 1805
(20) of this subsection, [(a) of this section,] the amount that would have 1806
been the federal alternative minimum taxable income if such amount 1807
were calculated by including, to the extent not includable in federal 1808 Raised Bill No. 5463
LCO No. 2364 58 of 64
alternative minimum taxable income, the modifications described in 1809
subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) of 1810
subdivision (20) of this subsection, [(a) of this section,] by excluding, to 1811
the extent includable in federal alternative minimum taxable income, 1812
the modifications described in subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), 1813
(B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision (20) of 1814
this subsection, [(a) of this section,] and by excluding, to the extent 1815
includable in federal alternative minimum taxable income, the amount 1816
of any interest income or exempt-interest dividends, as defined in 1817
Section 852(b)(5) of the Internal Revenue Code, from obligations that are 1818
issued by or on behalf of the state of Connecticut, any political 1819
subdivision thereof, or public instrumentality, state or local authority, 1820
district, or similar public entity that is created under the laws of the state 1821
of Connecticut, or from obligations that are issued by or on behalf of any 1822
territory or possession of the United States, any political subdivision of 1823
such territory or possession, or public instrumentality, authority, 1824
district or similar public entity of such territory or possession, the 1825
income with respect to which taxation by any state is prohibited by 1826
federal law. If such individual is a beneficiary of a trust or estate, then, 1827
for purposes of calculating his or her adjusted federal alternative 1828
minimum taxable income, his or her federal alternative minimum 1829
taxable income shall also be increased or decreased, as the case may be, 1830
by the net amount of such individual's proportionate share of the 1831
Connecticut fiduciary adjustment relating to modifications to the extent 1832
not includable in federal alternative minimum taxable income, that are 1833
described in subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or 1834
(A)(viii) of subdivision (20) of this subsection [(a) of this section] or to 1835
the extent includable in federal alternative minimum taxable income, 1836
subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), 1837
(B)(xiii) or (B)(xv) of subdivision (20) of this subsection. [(a) of this 1838
section.] 1839
Sec. 36. Section 12-701a of the general statutes is repealed and the 1840
following is substituted in lieu thereof (Effective October 1, 2020): 1841
The maximum [annual modification] amount that may be subtracted 1842 Raised Bill No. 5463
LCO No. 2364 59 of 64
under subparagraph (B)(xiii) of subdivision (20) of subsection (a) of 1843
section 12-701 shall be equal to the amount of contributions to all 1844
accounts established pursuant to any qualified state tuition program, as 1845
defined in Section 529(b) of the Internal Revenue Code, established and 1846
maintained by this state or any official, agency or instrumentality of the 1847
state, but shall not exceed five thousand dollars for each individual 1848
taxpayer, or ten thousand dollars for taxpayers filing a joint return. Any 1849
amount of a contribution that is not subtracted by the taxpayer in the 1850
year for which the contribution is made, on or after January 1, 2006, may 1851
be carried forward as a subtraction from income for the succeeding five 1852
years; provided the amount subtracted shall not exceed the maximum 1853
allowed in each subsequent taxable year. 1854
Sec. 37. Subdivision (5) of subsection (c) of section 12-717 of the 1855
general statutes is repealed and the following is substituted in lieu 1856
thereof (Effective October 1, 2020): 1857
(5) If a trust changes its status from resident to nonresident or from 1858
nonresident to resident, the provisions of subdivisions (1) to (4), 1859
inclusive, of this subsection shall apply, except that the term 1860
"individual" shall be read as "trust", reference to "items of income, gain, 1861
loss or deduction" shall mean the trust's share of such items determined 1862
in accordance with the methods of allocation set forth in section 12-714, 1863
reference to "gain" shall include any modification for includable gain 1864
under [subsection (9)] subdivision (9) of subsection (a) of section 12-701 1865
and federal adjusted gross income shall be determined as if the trust 1866
were an individual. 1867
Sec. 38. Subdivision (4) of section 12-801 of the 2020 supplement to 1868
the general statutes is repealed and the following is substituted in lieu 1869
thereof (Effective October 1, 2020): 1870
(4) "Lottery" means (A) the Connecticut state lottery conducted prior 1871
to the transfer authorized under section 12-808 by the Division of Special 1872
Revenue, (B) after such transfer, the Connecticut state lottery conducted 1873
by the corporation pursuant to sections [12-563a and] 12-800 to 12-818, 1874 Raised Bill No. 5463
LCO No. 2364 60 of 64
inclusive, (C) the state lottery referred to in subsection (a) of section 53-1875
278g, and (D) keno conducted by the corporation pursuant to section 12-1876
806c; 1877
Sec. 39. Subsection (c) of section 4-28f of the general statutes is 1878
repealed and the following is substituted in lieu thereof (Effective October 1879
1, 2020): 1880
(c) The trust fund shall be administered by a board of trustees, except 1881
that the board shall suspend its operations from July 1, 2003, to June 30, 1882
2005, inclusive. The board shall consist of seventeen trustees. The 1883
appointment of the initial trustees shall be as follows: (1) The Governor 1884
shall appoint four trustees, one of whom shall serve for a term of one 1885
year from July 1, 2000, two of whom shall serve for a term of two years 1886
from July 1, 2000, and one of whom shall serve for a term of three years 1887
from July 1, 2000; (2) the speaker of the House of Representatives and 1888
the president pro tempore of the Senate each shall appoint two trustees, 1889
one of whom shall serve for a term of two years from July 1, 2000, and 1890
one of whom shall serve for a term of three years from July 1, 2000; (3) 1891
the majority leader of the House of Representatives and the majority 1892
leader of the Senate each shall appoint two trustees, one of whom shall 1893
serve for a term of one year from July 1, 2000, and one of whom shall 1894
serve for a term of three years from July 1, 2000; (4) the minority leader 1895
of the House of Representatives and the minority leader of the Senate 1896
each shall appoint two trustees, one of whom shall serve for a term of 1897
one year from July 1, 2000, and one of whom shall serve for a term of 1898
two years from July 1, 2000; and (5) the Secretary of the Office of Policy 1899
and Management, or the secretary's designee, shall serve as an ex-officio 1900
voting member. Following the expiration of such initial terms, 1901
subsequent trustees shall serve for a term of three years. The period of 1902
suspension of the board's operations from July 1, 2003, to June 30, 2005, 1903
inclusive, shall not be included in the term of any trustee serving on July 1904
1, 2003. The trustees shall serve without compensation except for 1905
reimbursement for necessary expenses incurred in performing their 1906
duties. The board of trustees shall establish rules of procedure for the 1907
conduct of its business which shall include, but not be limited to, 1908 Raised Bill No. 5463
LCO No. 2364 61 of 64
criteria, processes and procedures to be used in selecting programs to 1909
receive money from the trust fund. The trust fund shall be within the 1910
Office of Policy and Management for administrative purposes only. The 1911
board of trustees shall, not later than January first of each year, except 1912
following a fiscal year in which the trust fund does not receive a deposit 1913
from the Tobacco Settlement Fund, [shall] submit a report of its activities 1914
and accomplishments to the joint standing committees of the General 1915
Assembly having cognizance of matters relating to public health and 1916
appropriations and the budgets of state agencies, in accordance with 1917
section 11-4a. 1918
Sec. 40. Section 4-66k of the 2020 supplement to the general statutes 1919
is repealed and the following is substituted in lieu thereof (Effective 1920
October 1, 2020): 1921
(a) There is established an account to be known as the "regional 1922
planning incentive account" which shall be a separate, nonlapsing 1923
account within the General Fund. The account shall contain any moneys 1924
required by law to be deposited in the account. Except as provided in 1925
subsection (d) of this section, moneys [,] in the account shall be 1926
expended by the Secretary of the Office of Policy and Management in 1927
accordance with subsection (b) of this section for the purposes of first 1928
providing funding to regional planning organizations in accordance 1929
with the provisions of subsections (b) and (c) of this section and then to 1930
providing grants under the regional performance incentive program 1931
established pursuant to section 4-124s. 1932
(b) For the fiscal year ending June 30, 2014, funds from the regional 1933
planning incentive account shall be distributed to each regional 1934
planning organization, as defined in section 4-124i, revision of 1958, 1935
revised to January 1, 2013, in the amount of one hundred twenty-five 1936
thousand dollars. Any regional council of governments that is 1937
comprised of any two or more regional planning organizations that 1938
voluntarily consolidate on or before December 31, 2013, shall receive an 1939
additional payment in an amount equal to the amount the regional 1940
planning organizations would have received if such regional planning 1941 Raised Bill No. 5463
LCO No. 2364 62 of 64
organizations had not voluntarily consolidated. 1942
(c) Beginning in the fiscal year ending June 30, 2015, and annually 1943
thereafter, funds from the regional planning incentive account shall be 1944
distributed to each regional council of governments formed pursuant to 1945
section 4-124j, in the amount of one hundred twenty-five thousand 1946
dollars plus fifty cents per capita, using population information from 1947
the most recent federal decennial census. Any regional council of 1948
governments that is comprised of any two or more regional planning 1949
organizations, as defined in section 4-124i of the general statutes, 1950
revision of 1958, revised to January 1, 2013, that voluntarily consolidated 1951
on or before December 31, 2013, shall receive a payment in the amount 1952
of one hundred twenty-five thousand dollars for each such regional 1953
planning organization that voluntarily consolidated on or before said 1954
date. 1955
(d) There is established a regionalization subaccount within the 1956
regional planning incentive account. If the Connecticut Lottery 1957
Corporation offers online its existing lottery draw games through the 1958
corporation's Internet web site, online service or mobile application, the 1959
revenue from such online offering that exceeds an amount equivalent to 1960
the costs of the debt-free community college program under section 10a-1961
174 shall be deposited in the subaccount, or, if such online offering is not 1962
established, the amount provided under subsection (b) of section 364 of 1963
public act 19-117 for regionalization initiatives shall be deposited in the 1964
subaccount. Moneys in the subaccount shall be expended only for the 1965
purposes recommended by the task force established under section 4-1966
66s. 1967
Sec. 41. Subsection (h) of section 38a-88a of the general statutes is 1968
repealed and the following is substituted in lieu thereof (Effective October 1969
1, 2020): 1970
(h) No taxpayer shall be eligible for a credit under this section and 1971
[either] section 12-217e [or section 12-217m] for the same investment. No 1972
two taxpayers shall be eligible for any tax credit with respect to the same 1973 Raised Bill No. 5463
LCO No. 2364 63 of 64
investment, employee or facility. 1974
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2020 12-35(a)
Sec. 2 October 1, 2020 12-40
Sec. 3 October 1, 2020 12-43
Sec. 4 October 1, 2020 12-44
Sec. 5 October 1, 2020 12-54
Sec. 6 October 1, 2020 12-57a(b)
Sec. 7 October 1, 2020 12-111(a)
Sec. 8 October 1, 2020 12-120a(4)
Sec. 9 October 1, 2020 12-121f(a)
Sec. 10 October 1, 2020 12-170aa
Sec. 11 October 1, 2020 12-208(a)
Sec. 12 October 1, 2020 12-214(b)
Sec. 13 October 1, 2020 12-219(b)
Sec. 14 October 1, 2020 12-217(a)(3)
Sec. 15 October 1, 2020 12-217zz(a)
Sec. 16 October 1, 2020 12-391(i)
Sec. 17 October 1, 2020 12-408h(b)
Sec. 18 October 1, 2020 12-410
Sec. 19 October 1, 2020 12-412(120)
Sec. 20 October 1, 2020 12-414(c)
Sec. 21 October 1, 2020 12-433
Sec. 22 October 1, 2020 12-438
Sec. 23 October 1, 2020 12-458(c)
Sec. 24 October 1, 2020 12-587
Sec. 25 October 1, 2020 12-587a(a)
Sec. 26 October 1, 2020 12-631
Sec. 27 October 1, 2020 12-632(a)(1)
Sec. 28 October 1, 2020 12-632(c)
Sec. 29 October 1, 2020 12-632(f)
Sec. 30 October 1, 2020 17b-738
Sec. 31 October 1, 2020 12-657
Sec. 32 October 1, 2020 12-699a(b)(1)
Sec. 33 October 1, 2020 12-701(a)(10)
Sec. 34 October 1, 2020 12-701(a)(24)
Sec. 35 October 1, 2020 12-701(a)(30)
Sec. 36 October 1, 2020 12-701a Raised Bill No. 5463
LCO No. 2364 64 of 64
Sec. 37 October 1, 2020 12-717(c)(5)
Sec. 38 October 1, 2020 12-801(4)
Sec. 39 October 1, 2020 4-28f(c)
Sec. 40 October 1, 2020 4-66k
Sec. 41 October 1, 2020 38a-88a(h)
Statement of Purpose:
To make minor and technical revisions to the tax and related statutes.
[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.]