Connecticut 2021 Regular Session

Connecticut House Bill HB06406 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	6		General Assembly Raised Bill No. 6406
8	7		January Session, 2021
9	8		LCO No. 2918
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12	11		Referred to Committee on HIGHER EDUCATION AND
13	12		EMPLOYMENT ADVANCEMENT
14	13
15	14
16	15		Introduced by:
17	16		(HED)
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21	21		AN ACT EXEMPTING WOR KFORCE DEVELOPMENT P ROGRAMS
22	22		FROM THE SALES TAX.
23	23		Be it enacted by the Senate and House of Representatives in General
24	24		Assembly convened:
25	25
26	26		Section 1. Subdivision (37) of subsection (a) of section 12-407 of the 1
27	27		general statutes is repealed and the following is substituted in lieu 2
28	28		thereof (Effective January 1, 2022): 3
29	29		(37) "Services" for purposes of subdivision (2) of this subsection, 4
30	30		means: 5
31	31		(A) Computer and data processing services, including, but not 6
32	32		limited to, time, programming, code writing, modification of existing 7
33	33		programs, feasibility studies and installation and implementation of 8
34	34		software programs and systems even where such services are rendered 9
35	35		in connection with the development, creation or production of canned 10
36	36		or custom software or the license of custom software, but excluding 11
37	37		digital goods; 12
38	38		(B) Credit information and reporting services; 13 Raised Bill No. 6406
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45	44		(C) Services by employment agencies and agencies providing 14
46	45		personnel services; 15
47	46		(D) Private investigation, protection, patrol work, watchman and 16
48	47		armored car services, exclusive of (i) services of off-duty police officers 17
49	48		and off-duty firefighters, and (ii) coin and currency services provided to 18
50	49		a financial services company by or through another financial services 19
51	50		company. For purposes of this subparagraph, "financial services 20
52	51		company" has the same meaning as provided under subparagraphs (A) 21
53	52		to (H), inclusive, of subdivision (6) of subsection (a) of section 12-218b; 22
54	53		(E) Painting and lettering services; 23
55	54		(F) Photographic studio services; 24
56	55		(G) Telephone answering services; 25
57	56		(H) Stenographic services; 26
58	57		(I) Services to industrial, commercial or income-producing real 27
59	58		property, including, but not limited to, such services as management, 28
60	59		electrical, plumbing, painting and carpentry, provided income-29
61	60		producing property shall not include property used exclusively for 30
62	61		residential purposes in which the owner resides and which contains no 31
63	62		more than three dwelling units, or a housing facility for low and 32
64	63		moderate income families and persons owned or operated by a 33
65	64		nonprofit housing organization, as defined in subdivision (29) of section 34
66	65		12-412; 35
67	66		(J) Business analysis, management, management consulting and 36
68	67		public relations services, excluding (i) any environmental consulting 37
69	68		services, (ii) any workforce development or training services provided 38
70	69		by an institution of higher education licensed or accredited by the Board 39
71	70		of Regents for Higher Education or Office of Higher Education pursuant 40
72	71		to sections 10a-35a and 10a-34, respectively, or by a third party to an 41
73	72		employer for the development or training of the employees of such 42
74	73		employer, and (iii) on and after January 1, 1994, any business analysis, 43 Raised Bill No. 6406
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81	79		management, management consulting and public relations services 44
82	80		when such services are rendered in connection with an aircraft leased or 45
83	81		owned by a certificated air carrier or in connection with an aircraft 46
84	82		which has a maximum certificated take-off weight of six thousand 47
85	83		pounds or more; 48
86	84		(K) Services providing "piped-in" music to business or professional 49
87	85		establishments; 50
88	86		(L) Flight instruction and chartering services by a certificated air 51
89	87		carrier on an aircraft, the use of which for such purposes, but for the 52
90	88		provisions of subdivision (4) of section 12-410 and subdivision (12) of 53
91	89		section 12-411, would be deemed a retail sale and a taxable storage or 54
92	90		use, respectively, of such aircraft by such carrier; 55
93	91		(M) Motor vehicle repair services, including any type of repair, 56
94	92		painting or replacement related to the body or any of the operating parts 57
95	93		of a motor vehicle; 58
96	94		(N) Motor vehicle parking, excluding space in a parking lot owned or 59
97	95		leased under the terms of a lease of not less than ten years' duration and 60
98	96		operated by an employer for the exclusive use of its employees; 61
99	97		(O) Radio or television repair services; 62
100	98		(P) Furniture reupholstering and repair services; 63
101	99		(Q) Repair services to any electrical or electronic device, including, 64
102	100		but not limited to, equipment used for purposes of refrigeration or air-65
103	101		conditioning; 66
104	102		(R) Lobbying or consulting services for purposes of representing the 67
105	103		interests of a client in relation to the functions of any governmental 68
106	104		entity or instrumentality; 69
107	105		(S) Services of the agent of any person in relation to the sale of any 70
108		-	item of tangible personal property for such person, exclusive of the 71 Raised Bill No. 6406
	106	+	item of tangible personal property for such person, exclusive of the 71
	107	+	services of a consignee selling works of art, as defined in subsection (b) 72 Raised Bill No. 6406
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115		-	services of a consignee selling works of art, as defined in subsection (b) 72
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116	113		of section 12-376c, or articles of clothing or footwear intended to be worn 73
117	114		on or about the human body other than (i) any special clothing or 74
118	115		footwear primarily designed for athletic activity or protective use and 75
119	116		which is not normally worn except when used for the athletic activity or 76
120	117		protective use for which it was designed, and (ii) jewelry, handbags, 77
121	118		luggage, umbrellas, wallets, watches and similar items carried on or 78
122	119		about the human body but not worn on the body, under consignment, 79
123	120		exclusive of services provided by an auctioneer; 80
124	121		(T) Locksmith services; 81
125	122		(U) Advertising or public relations services, including layout, art 82
126	123		direction, graphic design, mechanical preparation or production 83
127	124		supervision, not related to the development of media advertising or 84
128	125		cooperative direct mail advertising; 85
129	126		(V) Landscaping and horticulture services; 86
130	127		(W) Window cleaning services; 87
131	128		(X) Maintenance services; 88
132	129		(Y) Janitorial services; 89
133	130		(Z) Exterminating services; 90
134	131		(AA) Swimming pool cleaning and maintenance services; 91
135	132		(BB) Miscellaneous personal services included in industry group 729 92
136	133		in the Standard Industrial Classification Manual, United States Office of 93
137	134		Management and Budget, 1987 edition, or industry group 532220, 94
138	135		812191, 812199 or 812990 of the North American Industry Classification 95
139	136		System United States Manual, United States Office of Management and 96
140	137		Budget (NAICS), 1997 edition, exclusive of (i) services rendered by 97
141	138		massage therapists licensed pursuant to chapter 384a, and (ii) services 98
142		-	rendered by an electrologist licensed pursuant to chapter 388; 99 Raised Bill No. 6406
	139	+	rendered by an electrologist licensed pursuant to chapter 388; 99
	140	+	(CC) Any repair or maintenance service to any item of tangible 100 Raised Bill No. 6406
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149		-	(CC) Any repair or maintenance service to any item of tangible 100
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150	146		personal property including any contract of warranty or service related 101
151	147		to any such item; 102
152	148		(DD) Business analysis, management or managing consulting 103
153	149		services rendered by a general partner, or an affiliate thereof, to a 104
154	150		limited partnership, provided (i) the general partner, or an affiliate 105
155	151		thereof, is compensated for the rendition of such services other than 106
156	152		through a distributive share of partnership profits or an annual 107
157	153		percentage of partnership capital or assets established in the limited 108
158	154		partnership's offering statement, and (ii) the general partner, or an 109
159	155		affiliate thereof, offers such services to others, including any other 110
160	156		partnership. As used in this subparagraph "an affiliate of a general 111
161	157		partner" means an entity which is directly or indirectly owned fifty per 112
162	158		cent or more in common with a general partner; 113
163	159		(EE) Notwithstanding the provisions of section 12-412, except 114
164	160		subdivision (87) of said section 12-412, patient care services, as defined 115
165	161		in subdivision (29) of this subsection by a hospital, except that "sale" and 116
166	162		"selling" does not include such patient care services for which payment 117
167	163		is received by the hospital during the period commencing July 1, 2001, 118
168	164		and ending June 30, 2003; 119
169	165		(FF) Health and athletic club services, exclusive of (i) any such 120
170	166		services provided without any additional charge which are included in 121
171	167		any dues or initiation fees paid to any such club, which dues or fees are 122
172	168		subject to tax under section 12-543, and (ii) any such services provided 123
173	169		by a municipality or an organization that is described in Section 501(c) 124
174	170		of the Internal Revenue Code of 1986, or any subsequent corresponding 125
175	171		internal revenue code of the United States, as amended from time to 126
176	172		time; 127
177	173		(GG) Motor vehicle storage services, including storage of motor 128
178	174		homes, campers and camp trailers, other than the furnishing of space as 129
179		-	described in subparagraph (P) of subdivision (2) of this subsection; 130 Raised Bill No. 6406
	175	+	described in subparagraph (P) of subdivision (2) of this subsection; 130
	176	+	(HH) Packing and crating services, other than those provided in 131
	177	+	connection with the sale of tangible personal property by the retailer of 132 Raised Bill No. 6406
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186		-	~~(HH) Packing and crating services,~~ ~~other than those provided in 131~~
187		-	~~connection with the sale of tangible personal property by the retailer of 132~~
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188	183		such property; 133
189	184		(II) Motor vehicle towing and road services, other than motor vehicle 134
190	185		repair services; 135
191	186		(JJ) Intrastate transportation services provided by livery services, 136
192	187		including limousines, community cars or vans, with a driver. Intrastate 137
193	188		transportation services shall not include transportation by taxicab, 138
194	189		motor bus, ambulance or ambulette, scheduled public transportation, 139
195	190		nonemergency medical transportation provided under the Medicaid 140
196	191		program, paratransit services provided by agreement or arrangement 141
197	192		with the state or any political subdivision of the state, dial-a-ride 142
198	193		services or services provided in connection with funerals; 143
199	194		(KK) Pet grooming and pet boarding services, except if such services 144
200	195		are provided as an integral part of professional veterinary services, and 145
201	196		pet obedience services; 146
202	197		(LL) Services in connection with a cosmetic medical procedure. For 147
203	198		purposes of this subparagraph, "cosmetic medical procedure" means 148
204	199		any medical procedure performed on an individual that is directed at 149
205	200		improving the individual's appearance and that does not meaningfully 150
206	201		promote the proper function of the body or prevent or treat illness or 151
207	202		disease. "Cosmetic medical procedure" includes, but is not limited to, 152
208	203		cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 153
209	204		tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 154
210	205		skin resurfacing, laser treatment of leg veins and sclerotherapy. 155
211	206		"Cosmetic medical procedure" does not include reconstructive surgery. 156
212	207		"Reconstructive surgery" includes any surgery performed on abnormal 157
213	208		structures caused by or related to congenital defects, developmental 158
214	209		abnormalities, trauma, infection, tumors or disease, including 159
215	210		procedures to improve function or give a more normal appearance; 160
216		-	(MM) Manicure services, pedicure services and all other nail services, 161 Raised Bill No. 6406
	211	+	(MM) Manicure services, pedicure services and all other nail services, 161
	212	+	regardless of where performed, including airbrushing, fills, full sets, nail 162
	213	+	sculpting, paraffin treatments and polishes; 163 Raised Bill No. 6406
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223		-	~~regardless~~ of ~~where performed, including airbrushing, fills, full sets, nail 162~~
224		-	~~sculpting, paraffin treatments and polishes; 163~~
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225	219		(NN) Spa services, regardless of where performed, including body 164
226	220		waxing and wraps, peels, scrubs and facials; 165
227	221		(OO) Car wash services, including coin-operated car washes; 166
228	222		(PP) Dry cleaning services and laundry services, excluding coin-167
229	223		operated services; 168
230	224		(QQ) Interior design services described in industry group 54141 of 169
231	225		the NAICS, 2017 edition, as amended from time to time. 170
232	226		This act shall take effect as follows and shall amend the following
233	227		sections:
234	228
235	229		Section 1 January 1, 2022 12-407(a)(37)
236	230
237		-	HED Joint Favorable C/R FIN
	231	+	Statement of Purpose:
	232	+	To exempt services for workforce development and training from the
	233	+	sales tax.
	234	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	235	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	236	+	underlined.]
238	237