Connecticut Senate Bill SB00431

Connecticut 2020 Regular Session

• Introduced: 3/5/20
• Refer: 3/5/20

Caption

An Act Concerning Nexus Provisions For Certain Disaster-related Or Emergency-related Work Performed In The State.

Impact

The bill is particularly significant as it addresses the nexus provisions under state tax law. By exempting out-of-state businesses engaging in disaster response from registering or paying property taxes and state taxes, it seeks to facilitate a quicker and more efficient response to disasters by removing bureaucratic hurdles. This encourages companies to provide essential services without the fear of immediate taxation or legal complications related to their presence in the state during emergencies.

Summary

SB00431, titled 'An Act Concerning Nexus Provisions For Certain Disaster-related Or Emergency-related Work Performed In The State,' aims to clarify the tax obligations and presence requirements for out-of-state businesses and their employees conducting disaster-related or emergency-related work in the state. The bill stipulates that such businesses and employees shall not be considered to have established residency or presence in the state due to their emergency activities, thereby exempting them from state registration and tax obligations during the disaster response period.

Contention

Noteworthy points of contention around SB00431 center on the implications of allowing out-of-state businesses to operate without establishing local nexus. While proponents argue it promotes rapid disaster recovery and supports vital infrastructure repairs, critics may raise concerns regarding potential abuse of these provisions and the implications for local businesses. The broader impact on state revenue from the temporary tax exemption could also be a point of debate, as it could limit financial resources available for recovery efforts.