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Connecticut House Bill HB06443

Connecticut 2021 Regular Session

Connecticut House Bill HB06443 Compare Versions

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7-General Assembly Substitute Bill No. 6443
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5+General Assembly Governor's Bill No. 6443
86 January Session, 2021
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10+Referred to Committee on FINANCE, REVENUE AND
11+BONDING
12+
13+
14+Introduced by:
15+Request of the Governor Pursuant
16+to Joint Rule 9
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1018
1119
1220
1321
1422 AN ACT CONCERNING RE VENUE ITEMS TO IMPLEMENT THE
15-BIENNIAL BUDGET.
23+GOVERNOR'S BUDGET.
1624 Be it enacted by the Senate and House of Representatives in General
1725 Assembly convened:
1826
19-Section 1. (NEW) (Effective from passage) (a) As used in this section: 1
20-(1) "Employer" means an employer required to deduct and withhold 2
21-tax from wages pursuant to section 12-705 of the general statutes; and 3
22-(2) "Electing employee" means an employee of an employer, who (A) 4
23-is required to have amounts withheld from wages pursuant to section 5
24-12-705 of the general statutes, (B) receives an annual gross income for 6
25-wages from such employer of more than forty thousand dollars, and (C) 7
26-elects to participate in the wage compensation tax program established 8
27-under subsection (b) of this section. 9
28-(b) (1) There is established, for taxable years commencing on or after 10
29-January 1, 2022, a wage compensation tax program in which any 11
30-employee may elect to participate and the employer of such electing 12
31-employee shall pay a tax on the wages of such employee. 13
32-(2) There is imposed a tax on each employer that employs an electing 14
33-employee, in an amount equal to five per cent of such electing 15
34-employee's wages. Each such employer shall remit the tax to the 16 Substitute Bill No. 6443
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41-Department of Revenue Services in accordance with the provisions of 17
42-subsection (f) of this section. All revenue collected pursuant to this 18
43-section and any interest and penalty related thereto shall be deposited 19
44-in the Connecticut Equitable Investment Fund established under section 20
45-13 of this act. 21
46-(3) Each electing employee shall be allowed (A) a credit against the 22
47-tax imposed under chapter 229 of the general statutes, as provided in 23
48-subsection (g) of this section, and (B) a deduction from such electing 24
49-employee's federal adjusted gross income, as provided in subdivision 25
50-(20) of subsection (a) of section 12-701 of the general statutes, as 26
51-amended by this act, for contributions made to a Roth individual 27
52-retirement account under 26 USC 408A, as amended from time to time. 28
53-(c) (1) Each employer shall inform its current and newly hired 29
54-employees of the wage compensation tax program and provide to each 30
55-employee (A) information about how such employee may elect to 31
56-participate in such program, and (B) an estimated tax table that provides 32
57-projections of what such employee's wages and tax liability under 33
58-chapter 229 of the general statutes might be if such employee 34
59-participates in the program and what such wages and tax liability might 35
60-be if such employee does not participate in the program. 36
61-(2) No employer may prohibit an employee from participating in 37
62-such program, except that each employer may establish a reasonable 38
63-minimum period of time that an electing employee is required to 39
64-maintain participation in such program. 40
65-(d) (1) Each employer shall offer to pay, for any individual to whom 41
66-such employer will be required to issue an Internal Revenue Service 42
67-Form 1099 for any taxable year commencing on or after January 1, 2022, 43
68-the tax set forth in subdivision (2) of subsection (b) of this section as if 44
69-the amount reportable on said form were wages paid by such employer 45
70-to the individual. Each employer shall provide to each such individual 46
71-an estimated tax table that provides projections of what such 47
72-individual's tax liability under chapter 229 of the general statutes might 48 Substitute Bill No. 6443
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79-be if the employer paid such tax and what such tax liability might be if 49
80-such tax is not paid. Each employer that pays the tax under this 50
81-subdivision shall remit such tax to the Department of Revenue Services 51
82-in accordance with the provisions of subsection (f) of this section. 52
83-(2) Each individual for whom an employer has paid the tax under 53
84-subdivision (1) of this subsection shall be allowed a credit against the 54
85-tax imposed under chapter 229 of the general statutes, as provided in 55
86-subsection (g) of this section. 56
87-(e) The Department of Revenue Services shall assist employers in the 57
88-preparation of the estimated tax tables required under subsections (c) 58
89-and (d) of this section. 59
90-(f) Any employer that is subject to the tax imposed under subsection 60
91-(b) of this section or the payment of the tax under subsection (d) of this 61
92-section shall remit such tax to the Department of Revenue Services at 62
93-the same time and in the same manner such employer would be 63
94-required to pay the tax under section 12-705 of the general statutes, and 64
95-shall file a return in such form and manner as the Commissioner of 65
96-Revenue Services prescribes. Any individual who is under a duty to act 66
97-on behalf of an employer to comply with the provisions of this section 67
98-shall be jointly and severally liable with the employer for any tax, 68
99-amount, interest or penalty owed under this section. 69
100-(g) For taxable years commencing on or after January 1, 2022, each 70
101-electing employee, and each individual for whom an employer has paid 71
102-the tax under subsection (d) of this section, shall be allowed a credit 72
103-against the tax imposed under chapter 229 of the general statutes, in the 73
104-amount of ninety-five per cent of (1) the taxes paid by the employer of 74
105-such electing employee on such employee's wages, or (2) the taxes paid 75
106-on behalf of such individual pursuant to subsection (d) of this section, 76
107-as applicable. If the amount of the credit allowed pursuant to this 77
108-subsection exceeds the electing employee's or individual's liability for 78
109-the tax imposed under chapter 229 of the general statutes, the 79
110-Commissioner of Revenue Services shall treat such excess as an 80 Substitute Bill No. 6443
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117-overpayment and, except as provided under section 12-739 or 12-742 of 81
118-the general statutes, shall refund the amount of such excess, without 82
119-interest, to such electing employee or individual. 83
120-(h) The provisions of sections 12-550 to 12-554, inclusive, and section 84
121-12-555a of the general statutes shall apply to the provisions of this 85
122-section in the same manner and with the same force and effect as if the 86
123-language of said sections had been incorporated in full into this section 87
124-and had expressly referred to the tax imposed under this section, except 88
125-to the extent that any such provision is inconsistent with a provision of 89
126-this section. 90
127-Sec. 2. Subparagraph (B) of subdivision (20) of subsection (a) of 91
128-section 12-701 of the general statutes is repealed and the following is 92
129-substituted in lieu thereof (Effective January 1, 2022, and applicable to 93
130-taxable years commencing on or after January 1, 2022): 94
131-(B) There shall be subtracted therefrom: 95
132-(i) To the extent properly includable in gross income for federal 96
133-income tax purposes, any income with respect to which taxation by any 97
134-state is prohibited by federal law; 98
135-(ii) To the extent allowable under section 12-718, exempt dividends 99
136-paid by a regulated investment company; 100
137-(iii) To the extent properly includable in gross income for federal 101
138-income tax purposes, the amount of any refund or credit for 102
139-overpayment of income taxes imposed by this state, or any other state 103
140-of the United States or a political subdivision thereof, or the District of 104
141-Columbia; 105
142-(iv) To the extent properly includable in gross income for federal 106
143-income tax purposes and not otherwise subtracted from federal 107
144-adjusted gross income pursuant to clause (x) of this subparagraph in 108
145-computing Connecticut adjusted gross income, any tier 1 railroad 109
146-retirement benefits; 110 Substitute Bill No. 6443
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153-(v) To the extent any additional allowance for depreciation under 111
154-Section 168(k) of the Internal Revenue Code for property placed in 112
155-service after September 27, 2017, was added to federal adjusted gross 113
156-income pursuant to subparagraph (A)(ix) of this subdivision in 114
157-computing Connecticut adjusted gross income, twenty-five per cent of 115
158-such additional allowance for depreciation in each of the four 116
159-succeeding taxable years; 117
160-(vi) To the extent properly includable in gross income for federal 118
161-income tax purposes, any interest income from obligations issued by or 119
162-on behalf of the state of Connecticut, any political subdivision thereof, 120
163-or public instrumentality, state or local authority, district or similar 121
164-public entity created under the laws of the state of Connecticut; 122
165-(vii) To the extent properly includable in determining the net gain or 123
166-loss from the sale or other disposition of capital assets for federal income 124
167-tax purposes, any gain from the sale or exchange of obligations issued 125
168-by or on behalf of the state of Connecticut, any political subdivision 126
169-thereof, or public instrumentality, state or local authority, district or 127
170-similar public entity created under the laws of the state of Connecticut, 128
171-in the income year such gain was recognized; 129
172-(viii) Any interest on indebtedness incurred or continued to purchase 130
173-or carry obligations or securities the interest on which is subject to tax 131
174-under this chapter but exempt from federal income tax, to the extent that 132
175-such interest on indebtedness is not deductible in determining federal 133
176-adjusted gross income and is attributable to a trade or business carried 134
177-on by such individual; 135
178-(ix) Ordinary and necessary expenses paid or incurred during the 136
179-taxable year for the production or collection of income which is subject 137
180-to taxation under this chapter but exempt from federal income tax, or 138
181-the management, conservation or maintenance of property held for the 139
182-production of such income, and the amortizable bond premium for the 140
183-taxable year on any bond the interest on which is subject to tax under 141
184-this chapter but exempt from federal income tax, to the extent that such 142 Substitute Bill No. 6443
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191-expenses and premiums are not deductible in determining federal 143
192-adjusted gross income and are attributable to a trade or business carried 144
193-on by such individual; 145
194-(x) (I) For taxable years commencing prior to January 1, 2019, for a 146
195-person who files a return under the federal income tax as an unmarried 147
196-individual whose federal adjusted gross income for such taxable year is 148
197-less than fifty thousand dollars, or as a married individual filing 149
198-separately whose federal adjusted gross income for such taxable year is 150
199-less than fifty thousand dollars, or for a husband and wife who file a 151
200-return under the federal income tax as married individuals filing jointly 152
201-whose federal adjusted gross income for such taxable year is less than 153
202-sixty thousand dollars or a person who files a return under the federal 154
203-income tax as a head of household whose federal adjusted gross income 155
204-for such taxable year is less than sixty thousand dollars, an amount 156
205-equal to the Social Security benefits includable for federal income tax 157
206-purposes; 158
207-(II) For taxable years commencing prior to January 1, 2019, for a 159
208-person who files a return under the federal income tax as an unmarried 160
209-individual whose federal adjusted gross income for such taxable year is 161
210-fifty thousand dollars or more, or as a married individual filing 162
211-separately whose federal adjusted gross income for such taxable year is 163
212-fifty thousand dollars or more, or for a husband and wife who file a 164
213-return under the federal income tax as married individuals filing jointly 165
214-whose federal adjusted gross income from such taxable year is sixty 166
215-thousand dollars or more or for a person who files a return under the 167
216-federal income tax as a head of household whose federal adjusted gross 168
217-income for such taxable year is sixty thousand dollars or more, an 169
218-amount equal to the difference between the amount of Social Security 170
219-benefits includable for federal income tax purposes and the lesser of 171
220-twenty-five per cent of the Social Security benefits received during the 172
221-taxable year, or twenty-five per cent of the excess described in Section 173
222-86(b)(1) of the Internal Revenue Code; 174
223-(III) For the taxable year commencing January 1, 2019, and each 175 Substitute Bill No. 6443
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230-taxable year thereafter, for a person who files a return under the federal 176
231-income tax as an unmarried individual whose federal adjusted gross 177
232-income for such taxable year is less than seventy-five thousand dollars, 178
233-or as a married individual filing separately whose federal adjusted gross 179
234-income for such taxable year is less than seventy-five thousand dollars, 180
235-or for a husband and wife who file a return under the federal income tax 181
236-as married individuals filing jointly whose federal adjusted gross 182
237-income for such taxable year is less than one hundred thousand dollars 183
238-or a person who files a return under the federal income tax as a head of 184
239-household whose federal adjusted gross income for such taxable year is 185
240-less than one hundred thousand dollars, an amount equal to the Social 186
241-Security benefits includable for federal income tax purposes; and 187
242-(IV) For the taxable year commencing January 1, 2019, and each 188
243-taxable year thereafter, for a person who files a return under the federal 189
244-income tax as an unmarried individual whose federal adjusted gross 190
245-income for such taxable year is seventy-five thousand dollars or more, 191
246-or as a married individual filing separately whose federal adjusted gross 192
247-income for such taxable year is seventy-five thousand dollars or more, 193
248-or for a husband and wife who file a return under the federal income tax 194
249-as married individuals filing jointly whose federal adjusted gross 195
250-income from such taxable year is one hundred thousand dollars or more 196
251-or for a person who files a return under the federal income tax as a head 197
252-of household whose federal adjusted gross income for such taxable year 198
253-is one hundred thousand dollars or more, an amount equal to the 199
254-difference between the amount of Social Security benefits includable for 200
255-federal income tax purposes and the lesser of twenty-five per cent of the 201
256-Social Security benefits received during the taxable year, or twenty-five 202
257-per cent of the excess described in Section 86(b)(1) of the Internal 203
258-Revenue Code; 204
259-(xi) To the extent properly includable in gross income for federal 205
260-income tax purposes, any amount rebated to a taxpayer pursuant to 206
261-section 12-746; 207
262-(xii) To the extent properly includable in the gross income for federal 208 Substitute Bill No. 6443
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269-income tax purposes of a designated beneficiary, any distribution to 209
270-such beneficiary from any qualified state tuition program, as defined in 210
271-Section 529(b) of the Internal Revenue Code, established and 211
272-maintained by this state or any official, agency or instrumentality of the 212
273-state; 213
274-(xiii) To the extent allowable under section 12-701a, contributions to 214
275-accounts established pursuant to any qualified state tuition program, as 215
276-defined in Section 529(b) of the Internal Revenue Code, established and 216
277-maintained by this state or any official, agency or instrumentality of the 217
278-state; 218
279-(xiv) To the extent properly includable in gross income for federal 219
280-income tax purposes, the amount of any Holocaust victims' settlement 220
281-payment received in the taxable year by a Holocaust victim; 221
282-(xv) To the extent properly includable in gross income for federal 222
283-income tax purposes of an account holder, as defined in section 31-223
284-51ww, interest earned on funds deposited in the individual 224
285-development account, as defined in section 31-51ww, of such account 225
286-holder; 226
287-(xvi) To the extent properly includable in the gross income for federal 227
288-income tax purposes of a designated beneficiary, as defined in section 228
289-3-123aa, interest, dividends or capital gains earned on contributions to 229
290-accounts established for the designated beneficiary pursuant to the 230
291-Connecticut Homecare Option Program for the Elderly established by 231
292-sections 3-123aa to 3-123ff, inclusive; 232
293-(xvii) To the extent properly includable in gross income for federal 233
294-income tax purposes, any income received from the United States 234
295-government as retirement pay for a retired member of (I) the Armed 235
296-Forces of the United States, as defined in Section 101 of Title 10 of the 236
297-United States Code, or (II) the National Guard, as defined in Section 101 237
298-of Title 10 of the United States Code; 238
299-(xviii) To the extent properly includable in gross income for federal 239 Substitute Bill No. 6443
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306-income tax purposes for the taxable year, any income from the discharge 240
307-of indebtedness in connection with any reacquisition, after December 241
308-31, 2008, and before January 1, 2011, of an applicable debt instrument or 242
309-instruments, as those terms are defined in Section 108 of the Internal 243
310-Revenue Code, as amended by Section 1231 of the American Recovery 244
311-and Reinvestment Act of 2009, to the extent any such income was added 245
312-to federal adjusted gross income pursuant to subparagraph (A)(xi) of 246
313-this subdivision in computing Connecticut adjusted gross income for a 247
314-preceding taxable year; 248
315-(xix) To the extent not deductible in determining federal adjusted 249
316-gross income, the amount of any contribution to a manufacturing 250
317-reinvestment account established pursuant to section 32-9zz in the 251
318-taxable year that such contribution is made; 252
319-(xx) To the extent properly includable in gross income for federal 253
320-income tax purposes, (I) for the taxable year commencing January 1, 254
321-2015, ten per cent of the income received from the state teachers' 255
322-retirement system, (II) for the taxable years commencing January 1, 256
323-2016, to January 1, 2020, inclusive, twenty-five per cent of the income 257
324-received from the state teachers' retirement system, and (III) for the 258
325-taxable year commencing January 1, 2021, and each taxable year 259
326-thereafter, fifty per cent of the income received from the state teachers' 260
327-retirement system or the percentage, if applicable, pursuant to clause 261
328-(xxi) of this subparagraph; 262
329-(xxi) To the extent properly includable in gross income for federal 263
330-income tax purposes, except for retirement benefits under clause (iv) of 264
331-this subparagraph and retirement pay under clause (xvii) of this 265
332-subparagraph, for a person who files a return under the federal income 266
333-tax as an unmarried individual whose federal adjusted gross income for 267
334-such taxable year is less than seventy-five thousand dollars, or as a 268
335-married individual filing separately whose federal adjusted gross 269
336-income for such taxable year is less than seventy-five thousand dollars, 270
337-or as a head of household whose federal adjusted gross income for such 271
338-taxable year is less than seventy-five thousand dollars, or for a husband 272 Substitute Bill No. 6443
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345-and wife who file a return under the federal income tax as married 273
346-individuals filing jointly whose federal adjusted gross income for such 274
347-taxable year is less than one hundred thousand dollars, (I) for the taxable 275
348-year commencing January 1, 2019, fourteen per cent of any pension or 276
349-annuity income, (II) for the taxable year commencing January 1, 2020, 277
350-twenty-eight per cent of any pension or annuity income, (III) for the 278
351-taxable year commencing January 1, 2021, forty-two per cent of any 279
352-pension or annuity income, (IV) for the taxable year commencing 280
353-January 1, 2022, fifty-six per cent of any pension or annuity income, (V) 281
354-for the taxable year commencing January 1, 2023, seventy per cent of any 282
355-pension or annuity income, (VI) for the taxable year commencing 283
356-January 1, 2024, eighty-four per cent of any pension or annuity income, 284
357-and (VII) for the taxable year commencing January 1, 2025, and each 285
358-taxable year thereafter, any pension or annuity income; 286
359-(xxii) The amount of lost wages and medical, travel and housing 287
360-expenses, not to exceed ten thousand dollars in the aggregate, incurred 288
361-by a taxpayer during the taxable year in connection with the donation 289
362-to another person of an organ for organ transplantation occurring on or 290
363-after January 1, 2017; 291
364-(xxiii) To the extent properly includable in gross income for federal 292
365-income tax purposes, the amount of any financial assistance received 293
366-from the Crumbling Foundations Assistance Fund or paid to or on 294
367-behalf of the owner of a residential building pursuant to sections 8-442 295
368-and 8-443; 296
369-(xxiv) To the extent properly includable in gross income for federal 297
370-income tax purposes, the amount calculated pursuant to subsection (b) 298
371-of section 12-704g for income received by a general partner of a venture 299
372-capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 300
373-time; [and] 301
374-(xxv) To the extent any portion of a deduction under Section 179 of 302
375-the Internal Revenue Code was added to federal adjusted gross income 303
376-pursuant to subparagraph (A)(xiv) of this subdivision in computing 304 Substitute Bill No. 6443
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383-Connecticut adjusted gross income, twenty-five per cent of such 305
384-disallowed portion of the deduction in each of the four succeeding 306
385-taxable years; and 307
386-(xxvi) The amount of contributions made during the applicable 308
387-taxable year by an electing employee, as defined in section 1 of this act, 309
388-to a Roth individual retirement account under 26 USC 408A, as 310
389-amended from time to time, provided such electing employee was a 311
390-participant in the wage compensation tax program established under 312
391-section 1 of this act during at least six months of the applicable taxable 313
392-year. 314
393-Sec. 3. (NEW) (Effective January 1, 2022, and applicable to taxable years 315
394-commencing on or after January 1, 2022) (a) As used in this section, 316
395-"resident of the state" has the same meaning as provided in section 12-317
396-701 of the general statutes, as amended by this act. 318
397-(b) (1) Each resident of this state whose federal adjusted gross income 319
398-is five hundred thousand dollars or more shall be subject to a 320
399-consumption tax calculated as set forth in subdivision (2) of this 321
400-subsection. 322
401-(2) Each such resident shall multiply the amount of such resident's 323
402-federal adjusted gross income for the preceding taxable year by the 324
403-adjustment rate provided herein and shall owe such tax in the resulting 325
404-amount: 326
405-T1 Federal adjusted gross income Adjustment rate
406-T2 $500,000 to less than $2,000,000 0.7%
407-T3 $2,000,000 to less than $13,000,000 1.4%
408-T4 $13,000,000 or more 1.5%
409-
410-(c) (1) Each taxpayer subject to the tax under subsection (b) of this 327
411-section shall file a report with the Commissioner of Revenue Services, in 328
412-such form and containing such information as the commissioner 329
413-prescribes, on or before the fifteenth day of the fourth month following 330
414-the close of the taxpayer's taxable year. Such return shall accurately set 331 Substitute Bill No. 6443
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421-forth the amount of the tax calculated pursuant to subsection (b) of this 332
422-section for the preceding taxable year. A taxpayer required to file a 333
423-report for the tax under this subsection shall, without assessment, notice 334
424-or demand, pay the tax due to the commissioner on or before the date 335
425-specified in this subsection, determined without regard to any extension 336
426-of time for filing the report. 337
427-(2) All revenue collected pursuant to this section and any interest and 338
428-penalty related thereto shall be deposited in the Connecticut Equitable 339
429-Investment Fund established under section 13 of this act. 340
430-(d) If any person fails to pay the amount of the tax reported due on a 341
431-report within the time specified, there shall be imposed a penalty equal 342
432-to ten per cent of such amount due and unpaid, or fifty dollars, 343
433-whichever is greater. Such amount shall bear interest at the rate of one 344
434-per cent per month or fraction thereof, from the due date of such tax 345
435-until the date of payment. Subject to the provisions of section 12-3a of 346
436-the general statutes, the commissioner may waive all or part of the 347
437-penalties provided under this section when it is proven to the 348
438-commissioner's satisfaction that the failure to pay any tax was due to 349
439-reasonable cause and was not intentional or due to neglect. 350
440-(e) The provisions of sections 12-550 to 12-554, inclusive, and section 351
441-12-555a of the general statutes shall apply to the provisions of this 352
442-section in the same manner and with the same force and effect as if the 353
443-language of said sections had been incorporated in full into this section 354
444-and had expressly referred to the tax imposed under this section, except 355
445-to the extent that any such provision is inconsistent with a provision of 356
446-this section. 357
447-(f) The commissioner may adopt regulations, in accordance with the 358
448-provisions of chapter 54 of the general statutes, to implement the 359
449-provisions of this section. 360
450-Sec. 4. (NEW) (Effective January 1, 2022) (a) As used in this section: 361
451-(1) "Annual gross revenues" means income or revenue from all 362 Substitute Bill No. 6443
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458-sources, prior to any expenses or taxes, computed in accordance with 363
459-generally accepted accounting principles; 364
460-(2) "Assessable base" means the annual gross revenues derived from 365
461-digital advertising services in the state; 366
462-(3) "Digital advertising services" means advertisement services on a 367
463-digital interface, including banner advertising, search engine 368
464-advertising, interstitial advertising and other comparable advertising 369
465-services; and 370
466-(4) "Digital interface" means any type of software, including an 371
467-Internet web site or a part thereof or an application, that a person is able 372
468-to access with a device. 373
469-(b) (1) There is imposed a tax on the annual gross revenue of a person 374
470-derived from digital advertising services in the state as follows: 375
471-(A) Two and one-half per cent of the assessable base for a person with 376
472-global annual gross revenues of one hundred million dollars up to and 377
473-including one billion dollars; 378
474-(B) Five per cent of the assessable base for a person with global annual 379
475-gross revenues of more than one billion dollars up to and including five 380
476-billion dollars; 381
477-(C) Seven and one-half per cent of the assessable base for a person 382
478-with global annual gross revenues of more than five billion dollars up 383
479-to and including fifteen billion dollars; and 384
480-(D) Ten per cent of the assessable base for a person with global annual 385
481-gross revenues of more than fifteen billion dollars. 386
482-(2) The Commissioner of Revenue Services shall adopt regulations, in 387
483-accordance with the provisions of chapter 54 of the general statutes, to 388
484-establish the methodology to determine the portion of the annual gross 389
485-revenue of a person derived from digital advertising in the United States 390 Substitute Bill No. 6443
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491-
492-to be apportioned to the state for purposes of determining the assessable 391
493-base under this section. 392
494-(c) (1) Each taxpayer subject to the tax under this section shall file a 393
495-report with the Commissioner of Revenue Services, in such form and 394
496-manner and containing such information as the commissioner 395
497-prescribes. Such return shall accurately set forth the amount of the tax 396
498-calculated pursuant to subsection (b) of this section for the preceding 397
499-income year. 398
500-(2) All revenue collected pursuant to this section and any interest and 399
501-penalty related thereto shall be deposited in the Connecticut Equitable 400
502-Investment Fund established under section 13 of this act. 401
503-(d) If any person fails to pay the amount of the tax reported due on a 402
504-report within the time specified, there shall be imposed a penalty equal 403
505-to ten per cent of such amount due and unpaid, or fifty dollars, 404
506-whichever is greater. Such amount shall bear interest at the rate of one 405
507-per cent per month or fraction thereof, from the due date of such tax 406
508-until the date of payment. Subject to the provisions of section 12-3a of 407
509-the general statutes, the commissioner may waive all or part of the 408
510-penalties provided under this section when it is proven to the 409
511-commissioner's satisfaction that the failure to pay any tax was due to 410
512-reasonable cause and was not intentional or due to neglect. 411
513-(e) The provisions of sections 12-550 to 12-554, inclusive, and section 412
514-12-555a of the general statutes shall apply to the provisions of this 413
515-section in the same manner and with the same force and effect as if the 414
516-language of said sections had been incorporated in full into this section 415
517-and had expressly referred to the tax imposed under this section, except 416
518-to the extent that any such provision is inconsistent with a provision of 417
519-this section. 418
520-Sec. 5. Section 12-704e of the general statutes is repealed and the 419
521-following is substituted in lieu thereof (Effective July 1, 2021, and 420
522-applicable to taxable years commencing on or after January 1, 2021): 421 Substitute Bill No. 6443
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528-
529-(a) (1) Any resident of this state, as defined in subdivision (1) of 422
530-subsection (a) of section 12-701, who is subject to the tax imposed under 423
531-this chapter for any taxable year shall be allowed a credit against the tax 424
532-otherwise due under this chapter in an amount equal to the applicable 425
533-percentage [, as defined in subsection (e) of this section,] of the earned 426
534-income credit claimed and allowed for the same taxable year under 427
535-Section 32 of the Internal Revenue Code, as defined in subsection (a) of 428
536-section 12-701, as amended by this act. As used in this section, 429
537-"applicable percentage" means forty per cent. 430
538-(2) The Connecticut Equitable Investment Council established under 431
539-section 13 of this act shall transfer or disburse from the Connecticut 432
540-Equitable Investment Fund established under section 13 of this act 433
541-moneys sufficient to provide the credit under this section at the 434
542-applicable percentage rate specified. 435
543-(b) If the amount of the credit allowed pursuant to this section 436
544-exceeds the taxpayer's liability for the tax imposed under this chapter, 437
545-the Commissioner of Revenue Services shall treat such excess as an 438
546-overpayment and, except as provided under section 12-739 or 12-742, 439
547-shall refund the amount of such excess, without interest, to the taxpayer. 440
548-(c) If a married individual who is otherwise eligible for the credit 441
549-allowed hereunder has filed a joint federal income tax return for the 442
550-taxable year, but is required to file a separate return under this chapter 443
551-for such taxable year, the credit for which such individual is eligible 444
552-under this section shall be an amount equal to the applicable percentage 445
553-[, as defined in subsection (e) of this section,] of the earned income credit 446
554-claimed and allowed for such taxable year under [said] Section 32 of the 447
555-Internal Revenue Code multiplied by a fraction, the numerator of which 448
556-is such individual's federal adjusted gross income, as reported on such 449
557-individual's separate return under this chapter, and the denominator of 450
558-which is the federal adjusted gross income, as reported on the joint 451
559-federal income tax return. 452
560-(d) To the extent permitted under federal law, any state or federal 453 Substitute Bill No. 6443
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566-
567-earned income tax credit shall not be counted as income when received 454
568-by an individual who is an applicant for, or recipient of, benefits or 455
569-services under any state or federal program that provides such benefits 456
570-or services based on need, nor shall any such earned income tax credit 457
571-be counted as resources, for the purpose of determining the individual's 458
572-or any other individual's eligibility for such benefits or services, or the 459
573-amount of such benefits or services. 460
574-[(e) For purposes of this section, "applicable percentage" means 461
575-twenty-three per cent.] 462
576-Sec. 6. Subsection (i) of section 12-391 of the general statutes is 463
577-repealed and the following is substituted in lieu thereof (Effective July 1, 464
578-2021, and applicable to the estates of decedents dying on or after January 1, 465
579-2021): 466
580-(i) [The] With respect to the estates of decedents dying on or after 467
581-January 1, 2021, the tax calculated pursuant to the provisions of this 468
582-section shall be reduced in an amount equal to half of the amount 469
583-invested by a decedent in a private investment fund or fund of funds 470
584-pursuant to [subdivision (43) of section 32-39] section 13 of this act, 471
585-provided (1) any such reduction shall not exceed five million dollars for 472
586-any such decedent, and (2) any such amount invested by the decedent 473
587-shall have been invested in such fund or fund of funds for ten years or 474
588-more. [, and (3) the aggregate amount of all taxes reduced under this 475
589-subsection shall not exceed thirty million dollars.] 476
590-Sec. 7. (NEW) (Effective from passage) (a) As used in this section, 477
591-"lottery draw game" means any game in which one or more numbers, 478
592-letters or symbols are randomly drawn at predetermined times, not to 479
593-exceed four times per day, from a range of numbers, letters or symbols, 480
594-and prizes are paid to players possessing winning plays, as set forth in 481
595-each game's official game rules. "Lottery draw game" does not include 482
596-keno, as defined in section 12-801 of the general statutes. 483
597-(b) The Connecticut Lottery Corporation shall establish a program to 484 Substitute Bill No. 6443
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603-
604-sell lottery tickets for lottery draw games through the corporation's 485
605-Internet web site, online service or mobile application. The program 486
606-shall, at a minimum: 487
607-(1) Verify that a person who establishes an online lottery account to 488
608-purchase a lottery ticket through such program is eighteen years of age 489
609-or older and is located in the state; 490
610-(2) Restrict the sale of lottery tickets to transactions initiated and 491
611-received within the state; 492
612-(3) Allow a person to establish an online lottery account and use a 493
613-credit card, debit card or verified bank account to purchase lottery 494
614-tickets through such account; 495
615-(4) Limit a person with an online lottery account to using only one 496
616-debit card or credit card; 497
617-(5) Provide that any money in an online lottery account belongs solely 498
618-to the owner of the account and may be withdrawn by the owner; 499
619-(6) Establish a voluntary self-exclusion process to allow a person to 500
620-exclude himself or herself from establishing an online lottery account or 501
621-purchasing a lottery ticket through such program; 502
622-(7) At least every five years, be the subject of an independent review 503
623-for responsible play as assessed by industry standards; 504
624-(8) Provide responsible gambling and problem gambling 505
625-information; 506
626-(9) Limit the amount of money a person may (A) deposit into an 507
627-online lottery account, and (B) spend per day through such program; 508
628-and 509
629-(10) Display the results of lottery draw game drawings on the 510
630-corporation's Internet web site, online service or mobile application but 511
631-the lottery draw game drawings may not take place on the corporation's 512 Substitute Bill No. 6443
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637-
638-Internet web site, online service or mobile application. 513
639-(c) (1) The Connecticut Lottery Corporation may not establish a 514
640-program pursuant to this section until the Commissioner of Consumer 515
641-Protection adopts regulations in accordance with the provisions of 516
642-chapter 54 of the general statutes to implement the provisions of this 517
643-section and assure the integrity of such program. 518
644-(2) The corporation shall submit to the commissioner official game 519
645-rules for each lottery draw game the corporation seeks to offer through 520
646-the program. The corporation may not offer a lottery draw game 521
647-through the program until the commissioner approves, in writing, the 522
648-official rules for such game. 523
649-(d) After establishing the program pursuant to this section, the 524
650-corporation: (1) May implement initiatives to promote the purchase of 525
651-lottery tickets through lottery sales agents; (2) may implement initiatives 526
652-to promote the purchase of both online lottery draw games and the 527
653-purchase of lottery tickets through lottery sales agents; and (3) shall 528
654-conduct a public awareness campaign to educate the public regarding 529
655-responsible gambling and to inform the public of the programs available 530
656-for the prevention, treatment and rehabilitation of compulsive gamblers 531
657-in the state. 532
658-(e) All revenue collected from the sale of lottery tickets under the 533
659-program established pursuant to this section shall be deposited in the 534
660-Connecticut Equitable Investment Fund established under section 13 of 535
661-this act. 536
662-Sec. 8. Subdivision (4) of subsection (b) of section 12-806 of the general 537
663-statutes is repealed and the following is substituted in lieu thereof 538
664-(Effective from passage): 539
665-(4) (A) To introduce new lottery games, modify existing lottery 540
666-games, utilize existing and new technologies, determine distribution 541
667-channels for the sale of lottery tickets, introduce keno pursuant to signed 542
668-agreements with the Mashantucket Pequot Tribe and the Mohegan 543 Substitute Bill No. 6443
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674-
675-Tribe of Indians of Connecticut, in accordance with section 12-806c, and, 544
676-to the extent specifically authorized by regulations adopted by the 545
677-Department of Consumer Protection pursuant to chapter 54, introduce 546
678-instant ticket vending machines, kiosks and automated wagering 547
679-systems or machines, with all such rights being subject to regulatory 548
680-oversight by the Department of Consumer Protection; [, except that the 549
681-corporation shall not offer any interactive on-line lottery games, 550
682-including on-line video lottery games for promotional purposes;] and 551
683-(B) (1) To sell lottery draw games through the corporation's Internet 552
684-web site, online service or mobile application in accordance with section 553
685-7 of this act and to advertise lottery games on the corporation's Internet 554
686-web site, online service or mobile application; and (2) to offer interactive 555
687-lottery games for promotional purposes through the corporation's 556
688-Internet web site, online service or mobile application, provided (A) 557
689-there is no cost to play such interactive lottery games for promotional 558
690-purposes, (B) no prizes or rewards of any monetary value are awarded 559
691-for playing such interactive lottery games for promotional purposes, 560
692-and (C) no lottery ticket purchase is required to play such interactive 561
693-lottery games for promotional purposes. The corporation shall not offer 562
694-any interactive lottery game, including for promotional purposes, 563
695-except as expressly permitted pursuant to this subdivision; 564
696-Sec. 9. Subdivision (13) of subsection (b) of section 12-806 of the 565
697-general statutes is repealed and the following is substituted in lieu 566
698-thereof (Effective from passage): 567
699-(13) To pay the Office of Policy and Management to reimburse the 568
700-Department of Consumer Protection for the reasonable and necessary 569
701-costs arising from the department's regulatory oversight of the 570
702-corporation, in accordance with the assessment made pursuant to 571
703-section 12-806b, including costs arising directly or indirectly from the 572
704-licensing of lottery agents, performance of state police background 573
705-investigations, and the implementation of subsection (b) of section 12-574
706-562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a and 12-800 to 575
707-12-818, inclusive, as amended by this act, and section 7 of this act; 576 Substitute Bill No. 6443
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713-
714-Sec. 10. Section 12-810 of the general statutes is repealed and the 577
715-following is substituted in lieu thereof (Effective from passage): 578
716-(a) The Freedom of Information Act, as defined in section 1-200, shall 579
717-apply to all actions, meetings and records of the corporation, except (1) 580
718-where otherwise limited by subsection (c) of this section as to new 581
719-lottery games and serial numbers of unclaimed lottery tickets, [and] (2) 582
720-with respect to financial, credit and proprietary information submitted 583
721-by any person to the corporation in connection with any proposal to 584
722-provide goods, services or professional advice to the corporation as 585
723-provided in section 12-815, and (3) where otherwise limited by 586
724-subsection (d) of this section as to information submitted by any person 587
725-to the corporation regarding such person's participation in the 588
726-corporation's voluntary self-exclusion process established pursuant to 589
727-subdivision (6) of subsection (b) of section 7 of this act. 590
728-(b) The records of proceedings as provided in subsection (a) of section 591
729-12-805 shall be subject to disclosure pursuant to the provisions of 592
730-subsection (a) of section 1-210. 593
731-(c) Any new lottery game and the procedures for such game, until the 594
732-game is publicly announced by the corporation, and any serial number 595
733-of an unclaimed lottery ticket shall not be deemed public records, as 596
734-defined in section 1-200, and shall not be available to the public under 597
735-the provisions of section 1-210. The president shall submit a fiscal note 598
736-prepared by the corporation with respect to the procedures for a new 599
737-lottery game to the joint standing committees of the General Assembly 600
738-having cognizance of matters relating to finance, revenue, bonding and 601
739-public safety after approval of such game by the board. 602
740-(d) The name and any personally identifying information of a person 603
741-who is participating or has participated in the corporation's voluntary 604
742-self-exclusion process shall not be deemed public records, as defined in 605
743-section 1-200, and shall not be available to the public under the 606
744-provisions of section 1-210. The president may disclose the name and 607
745-any records of such person if such person claims a winning lottery ticket 608 Substitute Bill No. 6443
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751-
752-from the use of the online lottery program established pursuant to 609
753-section 7 of this act. 610
754-Sec. 11. Section 52-553 of the general statutes is repealed and the 611
755-following is substituted in lieu thereof (Effective from passage): 612
756-All wagers, and all contracts and securities of which the whole or any 613
757-part of the consideration is money or other valuable thing won, laid or 614
758-bet, at any game, horse race, sport or pastime, and all contracts to repay 615
759-any money knowingly lent at the time and place of such game, race, 616
760-sport or pastime, to any person so gaming, betting or wagering, or to 617
761-repay any money lent to any person who, at such time and place, so 618
762-pays, bets or wagers, shall be void, provided nothing in this section shall 619
763-(1) affect the validity of any negotiable instrument held by any person 620
764-who acquired the same for value and in good faith without notice of 621
765-illegality in the consideration, (2) apply to the sale of a raffle ticket 622
766-pursuant to section 7-172, (3) apply to the participation in the program 623
767-established by the Connecticut Lottery Corporation pursuant to section 624
768-7 of this act, or [(3)] (4) apply to any wager or contract otherwise 625
769-authorized by law. 626
770-Sec. 12. Section 52-554 of the general statutes is repealed and the 627
771-following is substituted in lieu thereof (Effective from passage): 628
772-Any person who, by playing at any game, or betting on the sides or 629
773-hands of such as play at any game, excluding any game permitted under 630
774-chapter 226 or any activity not prohibited under the provisions of 631
775-sections 53-278a to 53-278g, inclusive, loses the sum or value of one 632
776-dollar in the whole and pays or delivers the same or any part thereof, 633
777-may, within three months next following, recover from the winner the 634
778-money or the value of the goods so lost and paid or delivered, with costs 635
779-of suit in a civil action, without setting forth the special matter in his 636
780-complaint. If the defendant refuses to testify, if called upon in such 637
781-action, relative to the discovery of the property so won, he shall be 638
782-defaulted; but no evidence so given by him shall be offered against him 639
783-in any criminal prosecution. Nothing in this section shall preclude any 640 Substitute Bill No. 6443
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789-
790-person from using a credit card to participate in the program established 641
791-by the Connecticut Lottery Corporation pursuant to section 7 of this act. 642
792-Sec. 13. (NEW) (Effective July 1, 2021) (a) There is established a fund 643
793-to be known as the "Connecticut Equitable Investment Fund". The fund 644
794-shall contain any moneys required by law to be deposited in the fund 645
795-and shall be held in trust separate and apart from all other moneys, 646
796-funds and accounts. Investment earnings credited to the assets of the 647
797-fund shall become part of the assets of the fund. Any balance remaining 648
798-in the fund at the end of any fiscal year shall be carried forward in the 649
799-fund for the fiscal year next succeeding. Moneys in the fund shall be 650
800-expended by the Connecticut Equitable Investment Council established 651
801-pursuant to subsection (c) of this section to be used for the purposes set 652
802-forth in this section. The Connecticut Equitable Investment Fund shall 653
803-be a permanent investment fund to receive, invest and distribute 654
804-dedicated tax revenues as provided in this section. 655
805-(b) The following moneys shall be deposited in the fund: 656
806-(1) The revenues from (A) the wage compensation tax under section 657
807-1 of this act, (B) the consumption tax under section 3 of this act, and (C) 658
808-the digital advertising tax under section 4 of this act; 659
809-(2) The amounts of any private investment received pursuant to 660
810-subdivision (5) of subsection (c) of this section, to be invested in 661
811-accordance with the provisions of said subdivision; and 662
812-(3) (A) The taxes collected and retained by the state on or after July 1, 663
813-2021, on recreational cannabis and cannabis products, and (B) the 664
814-revenues generated and retained by the state from any form of online 665
815-wagering authorized on or after July 1, 2021. 666
816-(c) (1) There is established the Connecticut Equitable Investment 667
817-Council, which shall manage and oversee the Connecticut Equitable 668
818-Investment Fund. The council shall consist of the following members: 669
819-(A) The Governor, who shall serve as the chairperson of the council; (B) 670
820-the Treasurer; (C) the Secretary of the Office of Policy and Management; 671 Substitute Bill No. 6443
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826-
827-and (D) six members of the public, two of whom shall be appointed by 672
828-the Governor, two of whom shall be appointed by the president pro 673
829-tempore of the Senate and two of whom shall be appointed by the 674
830-speaker of the House of Representatives. 675
831-(2) The chairperson shall schedule meetings as necessary to 676
832-implement and accomplish the programs and strategies described in 677
833-subdivision (3) of this subsection, provided such meetings shall be held 678
834-not less than once every calendar quarter. 679
835-(3) The council shall protect and grow the moneys in the fund for 680
836-current and future generations through prudent, professional 681
837-investment management and support the growth of the state's economy 682
838-through investments-in-place programs and strategies that include, but 683
839-are not limited to: 684
840-(A) Building wealth in traditionally underserved communities by (i) 685
841-attracting and retaining neighborhood wealth, (ii) providing financial, 686
842-educational or related services to support initiatives that concentrate 687
843-investments in human capital and infrastructure, (iii) rebuilding 688
844-community assets through the construction, renovation or repair of 689
845-neighborhood structures or assets, (iv) providing programs, services 690
846-and assistance to support community reinvestment, (v) increasing 691
847-owner-occupancy of residential buildings and supporting pathways to 692
848-home ownership, and (vi) creating pipelines to employment; 693
849-(B) Reducing income inequality in the state by (i) transferring or 694
850-disbursing moneys sufficient to provide the credit under section 12-704e 695
851-of the general statutes, as amended by this act, at the applicable 696
852-percentage specified in said section, (ii) compensating worker value 697
853-over productivity, and (iii) expanding skill development and vocational 698
854-and technical training opportunities; 699
855-(C) Retaining and attracting talent to the state by increasing the 700
856-availability of venture capital; and 701
857-(D) Working with the state to reduce municipal reliance on property 702 Substitute Bill No. 6443
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863-
864-taxes through the establishment of a statewide commercial property tax 703
865-credit and initiatives to prioritize municipal need and capacity, provide 704
866-full funding for the grants in lieu of taxes program under section 12-18b 705
867-of the general statutes, reduce or eliminate intertown tax rate 706
868-advantages and monetize land use. 707
869-(4) The council shall establish a review process and standards to 708
870-evaluate the programs and strategies that will help it and the state 709
871-achieve the goals described in subdivision (3) of this subsection and 710
872-shall annually distribute not less than fifty per cent of the moneys in the 711
873-fund, excluding the amount of any private investment received 712
874-pursuant to subdivision (5) of this subsection, that are generated 713
875-through revenue streams that are less volatile, as determined by the 714
876-council. 715
877-(5) The council shall establish a program to solicit private investment 716
878-from state residents that the council will invest in a private investment 717
879-fund or funds of funds, provided any such private investment shall be 718
880-invested in venture capital firms (A) having offices located in the state, 719
881-and (B) that support the growth of business operations of companies in 720
882-the state in a manner that support the goals described in subdivision (3) 721
883-of this subsection. 722
884-Sec. 14. Subdivision (8) of subsection (b) of section 12-214 of the 723
885-general statutes is repealed and the following is substituted in lieu 724
886-thereof (Effective from passage): 725
887-(8) (A) With respect to income years commencing on or after January 726
888-1, 2018, [and prior to January 1, 2021,] any company subject to the tax 727
889-imposed in accordance with subsection (a) of this section shall pay, for 728
890-such income year, except when the tax so calculated is equal to two 729
891-hundred fifty dollars, an additional tax in an amount equal to ten per 730
892-cent of the tax calculated under said subsection (a) for such income year, 731
893-without reduction of the tax so calculated by the amount of any credit 732
894-against such tax. The additional amount of tax determined under this 733
895-subsection for any income year shall constitute a part of the tax imposed 734 Substitute Bill No. 6443
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901-
902-by the provisions of said subsection (a) and shall become due and be 735
903-paid, collected and enforced as provided in this chapter. 736
904-(B) Any company whose gross income for the income year was less 737
905-than one hundred million dollars shall not be subject to the additional 738
906-tax imposed under subparagraph (A) of this subdivision. This exception 739
907-shall not apply to taxable members of a combined group that files a 740
908-combined unitary tax return. 741
909-Sec. 15. Subdivision (8) of subsection (b) of section 12-219 of the 742
910-general statutes is repealed and the following is substituted in lieu 743
911-thereof (Effective from passage): 744
912-(8) (A) With respect to income years commencing on or after January 745
913-1, 2018, [and prior to January 1, 2021,] the additional tax imposed on any 746
914-company and calculated in accordance with subsection (a) of this section 747
915-shall, for such income year, except when the tax so calculated is equal to 748
916-two hundred fifty dollars, be increased by adding thereto an amount 749
917-equal to ten per cent of the additional tax so calculated for such income 750
918-year, without reduction of the tax so calculated by the amount of any 751
919-credit against such tax. The increased amount of tax payable by any 752
920-company under this section, as determined in accordance with this 753
921-subsection, shall become due and be paid, collected and enforced as 754
922-provided in this chapter. 755
923-(B) Any company whose gross income for the income year was less 756
924-than one hundred million dollars shall not be subject to the additional 757
925-tax imposed under subparagraph (A) of this subdivision. This exception 758
926-shall not apply to taxable members of a combined group that files a 759
927-combined unitary tax return. 760
928-Sec. 16. (Effective from passage) The provisions of section 12-242d of the 761
929-general statutes shall not apply to any additional tax due as a result of 762
930-the changes made to subdivision (8) of subsection (b) of section 12-214 763
931-of the general statutes pursuant to section 14 of this act or to section 12-764
932-219 of the general statutes pursuant to section 15 of this act, for income 765 Substitute Bill No. 6443
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938-
939-years commencing on or after January 1, 2021, but prior to the effective 766
940-date of this section and sections 14 and 15 of this act. 767
941-Sec. 17. Subsection (a) of section 12-217zz of the general statutes is 768
942-repealed and the following is substituted in lieu thereof (Effective from 769
943-passage and applicable to income years commencing on or after January 1, 770
944-2021): 771
945-(a) [Notwithstanding any other provision of law, and except] Except 772
946-as otherwise provided in subsection (b) of this section and sections 12-773
947-217aaa and 12-217bbb, the amount of tax credit or credits otherwise 774
948-allowable against the tax imposed under this chapter shall be as follows: 775
949-(1) For any income year commencing on or after January 1, 2002, and 776
950-prior to January 1, 2015, the amount of tax credit or credits otherwise 777
951-allowable shall not exceed seventy per cent of the amount of tax due 778
952-from such taxpayer under this chapter with respect to any such income 779
953-year of the taxpayer prior to the application of such credit or credits; 780
954-(2) For any income year commencing on or after January 1, 2015, the 781
955-amount of tax credit or credits otherwise allowable shall not exceed fifty 782
956-and one one-hundredths per cent of the amount of tax due from such 783
957-taxpayer under this chapter with respect to any such income year of the 784
958-taxpayer prior to the application of such credit or credits; 785
959-(3) Notwithstanding the provisions of subdivision (2) of this 786
960-subsection, any taxpayer that possesses excess credits may utilize the 787
961-excess credits as follows: 788
962-(A) For income years commencing on or after January 1, 2016, and 789
963-prior to January 1, 2017, the aggregate amount of tax credits and excess 790
964-credits allowable shall not exceed fifty-five per cent of the amount of tax 791
965-due from such taxpayer under this chapter with respect to any such 792
966-income year of the taxpayer prior to the application of such credit or 793
967-credits; 794
968-(B) For income years commencing on or after January 1, 2017, and 795 Substitute Bill No. 6443
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975-prior to January 1, 2018, the aggregate amount of tax credits and excess 796
976-credits allowable shall not exceed sixty per cent of the amount of tax due 797
977-from such taxpayer under this chapter with respect to any such income 798
978-year of the taxpayer prior to the application of such credit or credits; 799
979-[and] 800
980-(C) For income years commencing on or after January 1, 2018, and 801
981-prior to January 1, 2019, the aggregate amount of tax credits and excess 802
982-credits allowable shall not exceed sixty-five per cent of the amount of 803
983-tax due from such taxpayer under this chapter with respect to any such 804
984-income year of the taxpayer prior to the application of such credit or 805
985-credits; 806
986-[(4)] (D) For purposes of this [subsection] subdivision, "excess credits" 807
987-means any remaining credits available under section 12-217j, 12-217n or 808
988-32-9t after tax credits are utilized in accordance with subdivision (2) of 809
989-this subsection; 810
990-(4) Notwithstanding the provisions of subdivision (2) of this 811
991-subsection, for income years commencing on or after January 1, 2021, 812
992-the aggregate amount allowable of tax credits and any remaining credits 813
993-available under section 12-217j or 12-217n after tax credits are utilized in 814
994-accordance with subdivision (2) of this section shall not exceed seventy 815
995-per cent of the amount of tax due from such taxpayer under this chapter 816
996-with respect to any such income year of the taxpayer prior to the 817
997-application of such credit or credits. 818
998-Sec. 18. Subsections (d) and (e) of section 38a-88a of the general 819
999-statutes are repealed and the following is substituted in lieu thereof 820
1000-(Effective July 1, 2021): 821
1001-(d) (1) The tax [credit] credits allowed by this section shall only be 822
1002-available for investments [(1)] (A) in funds that are not open to 823
1003-additional investments or investors beyond the amount subscribed at 824
1004-the formation of the fund, or [(2)] (B) under subsection (c) of this section, 825
1005-in invest CT funds that are not open to additional investments or 826 Substitute Bill No. 6443
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1011-
1012-investors after submission of the invest CT fund's application to the 827
1013-commissioner pursuant to subsection (c) of this section. 828
1014-(2) On and after June 30, 2010, no eligibility certificate shall be 829
1015-provided under subdivision (6) of subsection (b) of this section for 830
1016-investments made in an insurance business. 831
1017-(3) On [or] and after July 1, 2011, no credit shall be allowed under 832
1018-subdivision (2) or (6) of subsection (b) of this section for an investment 833
1019-of less than one million dollars for which the commissioner has issued 834
1020-an eligibility certificate. A fund manager who has received an eligibility 835
1021-certificate but is not yet eligible to receive a certificate of continued 836
1022-eligibility shall provide documentation satisfactory to the commissioner 837
1023-not later than June 30, 2011, of its investment of one million dollars or 838
1024-more. Such documentation shall include, but is not limited to, cancelled 839
1025-checks, wire transfers, investment agreements or other documentation 840
1026-as the commissioner may request. On and after July 1, 2011, the 841
1027-commissioner shall revoke the certificate of eligibility for any insurance 842
1028-business for which its fund manager failed to provide sufficient 843
1029-documentation of said investment of not less than one million dollars. 844
1030-(4) Any credit allowed under subsection (b) or subsection (g) of this 845
1031-section that has not been claimed prior to January 1, 2010, may be carried 846
1032-forward pursuant to subsection (i) of this section. 847
1033-(e) The maximum amount of credit allowed under subsection (c) of 848
1034-this section shall be [three] five hundred fifty million dollars in 849
1035-aggregate and forty million dollars per year. 850
1036-Sec. 19. Section 12-217jj of the general statutes is repealed and the 851
1037-following is substituted in lieu thereof (Effective January 1, 2022): 852
1038-(a) As used in this section: 853
1039-(1) "Commissioner" means the Commissioner of Revenue Services. 854
1040-(2) "Department" means the Department of Economic and 855 Substitute Bill No. 6443
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1046-
1047-Community Development. 856
1048-(3) (A) "Qualified production" means entertainment content created 857
1049-in whole or in part within the state, including motion pictures, except as 858
1050-otherwise provided in this subparagraph; documentaries; long-form, 859
1051-specials, mini-series, series, sound recordings, videos and music videos 860
1052-and interstitials television programming; interactive television; 861
1053-relocated television production; interactive games; videogames; 862
1054-commercials; any format of digital media, including an interactive web 863
1055-site, created for distribution or exhibition to the general public; and any 864
1056-trailer, pilot, video teaser or demo created primarily to stimulate the 865
1057-sale, marketing, promotion or exploitation of future investment in either 866
1058-a product or a qualified production via any means and media in any 867
1059-digital media format, film or videotape, provided such program meets 868
1060-all the underlying criteria of a qualified production. For state fiscal years 869
1061-ending on or after June 30, 2014, "qualified production" shall not include 870
1062-a motion picture that has not been designated as a state-certified 871
1063-qualified production prior to July 1, 2013, and no tax credit voucher for 872
1064-such motion picture may be issued for such motion picture, except, for 873
1065-state fiscal years ending on or after June 30, 2015, "qualified production" 874
1066-shall include a motion picture for which twenty-five per cent or more of 875
1067-the principal photography shooting days are in this state at a facility that 876
1068-receives not less than twenty-five million dollars in private investment 877
1069-and opens for business on or after July 1, 2013, and a tax credit voucher 878
1070-may be issued for such motion picture. 879
1071-(B) "Qualified production" shall not include any ongoing television 880
1072-program created primarily as news, weather or financial market reports; 881
1073-a production featuring current events, other than a relocated television 882
1074-production, sporting events, an awards show or other gala event; a 883
1075-production whose sole purpose is fundraising; a long-form production 884
1076-that primarily markets a product or service; a production used for 885
1077-corporate training or in-house corporate advertising or other similar 886
1078-productions; or any production for which records are required to be 887
1079-maintained under 18 USC 2257, as amended from time to time, with 888 Substitute Bill No. 6443
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1085-
1086-respect to sexually explicit content. 889
1087-(4) "Eligible production company" means a corporation, partnership, 890
1088-limited liability company, or other business entity engaged in the 891
1089-business of producing qualified productions on a one-time or ongoing 892
1090-basis, and qualified by the Secretary of the State to engage in business 893
1091-in the state. 894
1092-(5) "Production expenses or costs" means all expenditures clearly and 895
1093-demonstrably incurred in the state in the preproduction, production or 896
1094-postproduction costs of a qualified production, including: 897
1095-(A) Expenditures incurred in the state in the form of either 898
1096-compensation or purchases including production work, production 899
1097-equipment not eligible for the infrastructure tax credit provided in 900
1098-section 12-217kk, production software, postproduction work, 901
1099-postproduction equipment, postproduction software, set design, set 902
1100-construction, props, lighting, wardrobe, makeup, makeup accessories, 903
1101-special effects, visual effects, audio effects, film processing, music, 904
1102-sound mixing, editing, location fees, soundstages and any and all other 905
1103-costs or services directly incurred in connection with a state-certified 906
1104-qualified production; 907
1105-(B) Expenditures for distribution, including preproduction, 908
1106-production or postproduction costs relating to the creation of trailers, 909
1107-marketing videos, commercials, point-of-purchase videos and any and 910
1108-all content created on film or digital media, including the duplication of 911
1109-films, videos, CDs, DVDs and any and all digital files now in existence 912
1110-and those yet to be created for mass consumer consumption; the 913
1111-purchase, by a company in the state, of any and all equipment relating 914
1112-to the duplication or mass market distribution of any content created or 915
1113-produced in the state by any digital media format which is now in use 916
1114-and those formats yet to be created for mass consumer consumption; 917
1115-and 918
1116-(C) "Production expenses or costs" does not include the following: (i) 919 Substitute Bill No. 6443
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1122-
1123-On and after January 1, 2008, compensation in excess of fifteen million 920
1124-dollars paid to any individual or entity representing an individual, for 921
1125-services provided in the production of a qualified production and on or 922
1126-after January 1, 2010, compensation subject to Connecticut personal 923
1127-income tax in excess of twenty million dollars paid in the aggregate to 924
1128-any individuals or entities representing individuals, for star talent 925
1129-provided in the production of a qualified production; (ii) media buys, 926
1130-promotional events or gifts or public relations associated with the 927
1131-promotion or marketing of any qualified production; (iii) deferred, 928
1132-leveraged or profit participation costs relating to any and all personnel 929
1133-associated with any and all aspects of the production, including, but not 930
1134-limited to, producer fees, director fees, talent fees and writer fees; (iv) 931
1135-costs relating to the transfer of the production tax credits; (v) any 932
1136-amounts paid to persons or businesses as a result of their participation 933
1137-in profits from the exploitation of the qualified production; and (vi) any 934
1138-expenses or costs relating to an independent certification, as required by 935
1139-subsection [(g)] (h) of this section, or as the department may otherwise 936
1140-require, pertaining to the amount of production expenses or costs set 937
1141-forth by an eligible production company in its application for a 938
1142-production tax credit. 939
1143-(6) "Sound recording" means a recording of music, poetry or spoken-940
1144-word performance, but does not include the audio portions of dialogue 941
1145-or words spoken and recorded as part of a motion picture, video, 942
1146-theatrical production, television news coverage or athletic event. 943
1147-(7) "State-certified qualified production" means a qualified 944
1148-production produced by an eligible production company that (A) is in 945
1149-compliance with regulations adopted pursuant to subsection [(k)] (l) of 946
1150-this section, (B) is authorized to conduct business in this state, and (C) 947
1151-has been approved by the department as qualifying for a production tax 948
1152-credit under this section. 949
1153-(8) "Interactive web site" means a web site, the production costs of 950
1154-which (A) exceed five hundred thousand dollars per income year, and 951
1155-(B) is primarily (i) interactive games or end user applications, or (ii) 952 Substitute Bill No. 6443
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1161-
1162-animation, simulation, sound, graphics, story lines or video created or 953
1163-repurposed for distribution over the Internet. An interactive web site 954
1164-does not include a web site primarily used for institutional, private, 955
1165-industrial, retail or wholesale marketing or promotional purposes, or 956
1166-which contains obscene content. 957
1167-(9) "Post-certification remedy" means the recapture, disallowance, 958
1168-recovery, reduction, repayment, forfeiture, decertification or any other 959
1169-remedy that would have the effect of reducing or otherwise limiting the 960
1170-use of a tax credit provided by this section. 961
1171-(10) "Compensation" means base salary or wages and does not 962
1172-include bonus pay, stock options, restricted stock units or similar 963
1173-arrangements. 964
1174-(11) "Relocated television production" means: 965
1175-(A) An ongoing television program all of the prior seasons of which 966
1176-were filmed outside this state, and may include current events shows, 967
1177-except those referenced in subparagraph (B)(i) of this subdivision. 968
1178-(B) An eligible production company's television programming in this 969
1179-state that (i) is not a general news program, sporting event or game 970
1180-broadcast, and (ii) is created at a qualified production facility that has 971
1181-had a minimum investment of twenty-five million dollars made by such 972
1182-eligible production company on or after January 1, 2012, at which 973
1183-facility the eligible production company creates ongoing television 974
1184-programming as defined in subparagraph (A) of this subdivision, and 975
1185-creates at least two hundred new jobs in Connecticut on or after January 976
1186-1, 2012. For purposes of this subdivision, "new job" means a full-time 977
1187-job, as defined in section 12-217ii, that did not exist in this state prior to 978
1188-January 1, 2012, and is filled by a new employee, and "new employee" 979
1189-includes a person who was employed outside this state by the eligible 980
1190-production company prior to January 1, 2012, but does not include a 981
1191-person who was employed in this state by the eligible production 982
1192-company or a related person, as defined in section 12-217ii, with respect 983 Substitute Bill No. 6443
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1199-to the eligible production company during the prior twelve months. 984
1200-(C) A relocated television production may be a state-certified 985
1201-qualified production for not more than ten successive income years, 986
1202-after which period the eligible production company shall be ineligible 987
1203-to resubmit an application for certification. 988
1204-(b) (1) The Department of Economic and Community Development 989
1205-shall administer a system of tax credit vouchers within the resources, 990
1206-requirements and purposes of this section for eligible production 991
1207-companies producing a state-certified qualified production in the state. 992
1208-(2) Any eligible production company incurring production expenses 993
1209-or costs shall be eligible for a credit (A) for income years commencing 994
1210-on or after January 1, 2010, but prior to January 1, 2018, against the tax 995
1211-imposed under chapter 207 or this chapter, [and] (B) for income years 996
1212-commencing on or after January 1, 2018, but prior to January 1, 2022, 997
1213-against the tax imposed under chapter 207 or 211 or this chapter, and 998
1214-(C) for income years commencing on or after January 1, 2022, against the 999
1215-tax imposed under chapter 207, 211, 219 or this chapter, as follows: (i) 1000
1216-For any such company incurring such expenses or costs of not less than 1001
1217-one hundred thousand dollars, but not more than five hundred 1002
1218-thousand dollars, a credit equal to ten per cent of such expenses or costs, 1003
1219-(ii) for any such company incurring such expenses or costs of more than 1004
1220-five hundred thousand dollars, but not more than one million dollars, a 1005
1221-credit equal to fifteen per cent of such expenses or costs, and (iii) for any 1006
1222-such company incurring such expenses or costs of more than one million 1007
1223-dollars, a credit equal to thirty per cent of such expenses or costs. 1008
1224-(c) No eligible production company incurring an amount of 1009
1225-production expenses or costs that qualifies for such credit shall be 1010
1226-eligible for such credit unless on or after January 1, 2010, such company 1011
1227-conducts (1) not less than fifty per cent of principal photography days 1012
1228-within the state, or (2) expends not less than fifty per cent of 1013
1229-postproduction costs within the state, or (3) expends not less than one 1014
1230-million dollars of postproduction costs within the state. 1015 Substitute Bill No. 6443
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1237-(d) For income years commencing on or after January 1, 2010, no 1016
1238-expenses or costs incurred outside the state and used within the state 1017
1239-shall be eligible for a credit, and one hundred per cent of such expenses 1018
1240-or costs shall be counted toward such credit when incurred within the 1019
1241-state and used within the state. 1020
1242-(e) (1) On and after July 1, 2006, and for income years commencing 1021
1243-on or after January 1, 2006, any credit allowed pursuant to this section 1022
1244-may be sold, assigned or otherwise transferred, in whole or in part, to 1023
1245-one or more taxpayers, provided (A) no credit, after issuance, may be 1024
1246-sold, assigned or otherwise transferred, in whole or in part, more than 1025
1247-three times, (B) in the case of a credit allowed for the income year 1026
1248-commencing on or after January 1, 2011, and prior to January 1, 2012, 1027
1249-any entity that is not subject to tax under chapter 207 or this chapter may 1028
1250-transfer not more than fifty per cent of such credit in any one income 1029
1251-year, and (C) in the case of a credit allowed for an income year 1030
1252-commencing on or after January 1, 2012, any entity that is not subject to 1031
1253-tax under chapter 207 or this chapter may transfer not more than 1032
1254-twenty-five per cent of such credit in any one income year. 1033
1255-(2) Notwithstanding the provisions of subdivision (1) of this 1034
1256-subsection, any entity that is not subject to tax under this chapter or 1035
1257-chapter 207 shall not be subject to the limitations on the transfer of 1036
1258-credits provided in subparagraphs (B) and (C) of said subdivision (1), 1037
1259-provided such entity owns not less than fifty per cent, directly or 1038
1260-indirectly, of a business entity, as defined in section 12-284b. 1039
1261-(3) Notwithstanding the provisions of subdivision (1) of this 1040
1262-subsection, any qualified production that is created in whole or in 1041
1263-significant part, as determined by the Commissioner of Economic and 1042
1264-Community Development, at a qualified production facility shall not be 1043
1265-subject to the limitations of subparagraph (B) or (C) of said subdivision 1044
1266-(1). For purposes of this subdivision, "qualified production facility" 1045
1267-means a facility (A) located in this state, (B) intended for film, television 1046
1268-or digital media production, and (C) that has had a minimum 1047
1269-investment of three million dollars, or less if the Commissioner of 1048 Substitute Bill No. 6443
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1275-
1276-Economic and Community Development determines such facility 1049
1277-otherwise qualifies. 1050
1278-(4) (A) For the income year commencing January 1, 2018, any credit 1051
1279-that is sold, assigned or otherwise transferred, in whole or in part, to one 1052
1280-or more taxpayers pursuant to subdivision (1) of this subsection may be 1053
1281-claimed against the tax imposed under chapter 211 only if there is 1054
1282-common ownership of at least fifty per cent between such taxpayer and 1055
1283-the eligible production company that sold, assigned or otherwise 1056
1284-transferred such credit. Such taxpayer may only claim ninety-two per 1057
1285-cent of the amount of such credit entered by the department on the 1058
1286-production tax credit voucher. 1059
1287-(B) For income years commencing on or after January 1, 2019, any 1060
1288-credit that is sold, assigned or otherwise transferred, in whole or in part, 1061
1289-to one or more taxpayers pursuant to subdivision (1) of this subsection, 1062
1290-which credit is claimed against the tax imposed under chapter 211, shall 1063
1291-be subject to the following limits: 1064
1292-(i) The taxpayer may only claim ninety-five per cent of the amount of 1065
1293-such credit entered by the department on the production tax credit 1066
1294-voucher; and 1067
1295-(ii) If there is common ownership of at least fifty per cent between 1068
1296-such taxpayer and the eligible production company that sold, assigned 1069
1297-or otherwise transferred such credit, such taxpayer may only claim 1070
1298-ninety-two per cent of the amount of such credit entered by the 1071
1299-department on the production tax credit voucher. 1072
1300-(5) For income years commencing on or after January 1, 2022, any 1073
1301-credit that is claimed against the tax imposed under chapter 219 shall be 1074
1302-subject to the following limits: 1075
1303-(A) Any credit that is sold, assigned or otherwise transferred, in 1076
1304-whole or in part, to one or more taxpayers pursuant to subdivision (1) 1077
1305-of this subsection may be claimed against the tax imposed under chapter 1078
1306-219 only if there is common ownership of at least fifty per cent between 1079 Substitute Bill No. 6443
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1312-
1313-such taxpayer and the eligible production company that sold, assigned 1080
1314-or otherwise transferred such credit; and 1081
1315-(B) The eligible production company or taxpayer claiming the credit 1082
1316-against the tax imposed under chapter 219 may only claim ninety-two 1083
1317-per cent of the amount of such credit entered by the department on the 1084
1318-production tax credit voucher. 1085
1319-(f) (1) On and after July 1, 2006, and for income years commencing on 1086
1320-or after January 1, 2006, but prior to January 1, 2015, all or part of any 1087
1321-such credit allowed under this section may be claimed against the tax 1088
1322-imposed under chapter 207 or this chapter for the income year in which 1089
1323-the production expenses or costs were incurred, or in the three 1090
1324-immediately succeeding income years. 1091
1325-(2) For production tax credit vouchers issued on or after July 1, 2015, 1092
1326-but prior to January 1, 2018, all or part of any such credit may be claimed 1093
1327-against [(A)] the tax imposed under chapter 207 or this chapter, [or (B) 1094
1328-for income years commencing on or after January 1, 2018,] for the 1095
1329-income year in which the production expenses or costs were incurred, 1096
1330-or in the five immediately succeeding income years. 1097
1331-(3) For production tax credit vouchers issued on or after July 1, 2018, 1098
1332-but prior to January 1, 2022, all or part of any such credit may be claimed 1099
1333-against the tax imposed under chapter 207 or 211 or this chapter, for the 1100
1334-income year in which the production expenses or costs were incurred, 1101
1335-or in the five immediately succeeding income years. 1102
1336-(4) For production tax credit vouchers issued on or after January 1, 1103
1337-2022, all or part of any such credit may be claimed against the tax 1104
1338-imposed under chapter 207, 211, 219 or this chapter, for the income year 1105
1339-in which the production expenses or costs were incurred, or in the five 1106
1340-immediately succeeding income years. 1107
1341-[(3)] (g) Any production tax credit allowed under this [subsection] 1108
1342-section shall be nonrefundable. 1109 Substitute Bill No. 6443
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1349-[(g)] (h) (1) An eligible production company shall apply to the 1110
1350-department for a tax credit voucher on an annual basis, but not later 1111
1351-than ninety days after the first production expenses or costs are incurred 1112
1352-in the production of a qualified production, and shall provide with such 1113
1353-application such information as the department may require to 1114
1354-determine such company's eligibility to claim a credit under this section. 1115
1355-No production expenses or costs may be listed more than once for 1116
1356-purposes of the tax credit voucher pursuant to this section, or pursuant 1117
1357-to section 12-217kk or 12-217ll, and if a production expense or cost has 1118
1358-been included in a claim for a credit, such production expense or cost 1119
1359-may not be included in any subsequent claim for a credit. 1120
1360-(2) Not later than ninety days after the end of the annual period, or 1121
1361-after the last production expenses or costs are incurred in the production 1122
1362-of a qualified production, an eligible production company shall apply 1123
1363-to the department for a production tax credit voucher, and shall provide 1124
1364-with such application such information and independent certification as 1125
1365-the department may require pertaining to the amount of such 1126
1366-company's production expenses or costs. Such independent certification 1127
1367-shall be provided by an audit professional chosen from a list compiled 1128
1368-by the department. If the department determines that such company is 1129
1369-eligible to be issued a production tax credit voucher, the department 1130
1370-shall enter on the voucher the amount of production expenses or costs 1131
1371-that has been established to the satisfaction of the department and the 1132
1372-amount of such company's credit under this section. The department 1133
1373-shall provide a copy of such voucher to the commissioner, upon request. 1134
1374-(3) The department shall charge a reasonable administrative fee 1135
1375-sufficient to cover the department's costs to analyze applications 1136
1376-submitted under this section. 1137
1377-[(h)] (i) If an eligible production company sells, assigns or otherwise 1138
1378-transfers a credit under this section to another taxpayer, the transferor 1139
1379-and transferee shall jointly submit written notification of such transfer 1140
1380-to the department not later than thirty days after such transfer. If such 1141
1381-transferee sells, assigns or otherwise transfers a credit under this section 1142 Substitute Bill No. 6443
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1388-to a subsequent transferee, such transferee and such subsequent 1143
1389-transferee shall jointly submit written notification of such transfer to the 1144
1390-department not later than thirty days after such transfer. The 1145
1391-notification after each transfer shall include the credit voucher number, 1146
1392-the date of transfer, the amount of such credit transferred, the tax credit 1147
1393-balance before and after the transfer, the tax identification numbers for 1148
1394-both the transferor and the transferee, and any other information 1149
1395-required by the department. Failure to comply with this subsection will 1150
1396-result in a disallowance of the tax credit until there is full compliance on 1151
1397-the part of the transferor and the transferee, and for a second or third 1152
1398-transfer, on the part of all subsequent transferors and transferees. The 1153
1399-department shall provide a copy of the notification of assignment to the 1154
1400-commissioner upon request. 1155
1401-[(i)] (j) Any eligible production company that submits information to 1156
1402-the department that it knows to be fraudulent or false shall, in addition 1157
1403-to any other penalties provided by law, be liable for a penalty equal to 1158
1404-the amount of such company's credit entered on the production tax 1159
1405-credit voucher issued under this section. 1160
1406-[(j)] (k) No tax credits transferred pursuant to this section shall be 1161
1407-subject to a post-certification remedy, and the department and the 1162
1408-commissioner shall have no right, except in the case of possible material 1163
1409-misrepresentation or fraud, to conduct any further or additional review, 1164
1410-examination or audit of the expenditures or costs for which such tax 1165
1411-credits were issued. The sole and exclusive remedy of the department 1166
1412-and the commissioner shall be to seek collection of the amount of such 1167
1413-tax credits from the entity that committed the fraud or 1168
1414-misrepresentation. 1169
1415-[(k)] (l) The department, in consultation with the commissioner, shall 1170
1416-adopt regulations, in accordance with the provisions of chapter 54, as 1171
1417-may be necessary for the administration of this section. 1172
1418-Sec. 20. Section 12-541 of the general statutes is repealed and the 1173
1419-following is substituted in lieu thereof (Effective June 30, 2021): 1174 Substitute Bill No. 6443
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1425-
1426-(a) The provisions of this section shall apply to sales occurring prior 1175
1427-to July 1, 2021. 1176
1428-(b) Except as provided in subsection [(b)] (c) of this section, there is 1177
1429-hereby imposed a tax of ten per cent of the admission charge to any 1178
1430-place of amusement, entertainment or recreation. No tax shall be 1179
1431-imposed with respect to any admission charge: 1180
1432-(1) When the admission charge is less than one dollar or, in the case 1181
1433-of any motion picture show, when the admission charge is not more 1182
1434-than five dollars; 1183
1435-(2) When a daily admission charge is imposed that entitles the patron 1184
1436-to participate in an athletic or sporting activity; 1185
1437-(3) To any event, other than events held at the stadium facility, as 1186
1438-defined in section 32-651, if all of the proceeds from the event inure 1187
1439-exclusively to an entity that is exempt from federal income tax under the 1188
1440-Internal Revenue Code, provided such entity actively engages in and 1189
1441-assumes the financial risk associated with the presentation of such 1190
1442-event; 1191
1443-(4) To any event, other than events held at the stadium facility, as 1192
1444-defined in section 32-651, that, in the opinion of the commissioner, is 1193
1445-conducted primarily to raise funds for an entity that is exempt from 1194
1446-federal income tax under the Internal Revenue Code, provided the 1195
1447-commissioner is satisfied that the net profit that inures to such entity 1196
1448-from such event will exceed the amount of the admissions tax that, but 1197
1449-for this subdivision, would be imposed upon the person making such 1198
1450-charge to such event; 1199
1451-(5) Other than for events held at the stadium facility, as defined in 1200
1452-section 32-651, paid by centers of service for elderly persons, as 1201
1453-described in section 17a-310; 1202
1454-(6) To any production featuring live performances by actors or 1203
1455-musicians presented at Gateway's Candlewood Playhouse, Ocean Beach 1204 Substitute Bill No. 6443
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1461-
1462-Park or any nonprofit theater or playhouse in the state, provided such 1205
1463-theater or playhouse possesses evidence confirming exemption from 1206
1464-federal tax under Section 501 of the Internal Revenue Code; 1207
1465-(7) To any carnival or amusement ride; 1208
1466-(8) To any interscholastic athletic event held at the stadium facility, 1209
1467-as defined in section 32-651; 1210
1468-(9) If the admission charge would have been subject to tax under the 1211
1469-provisions of section 12-542 of the general statutes, revision of 1958, 1212
1470-revised to January 1, 1999; or 1213
1471-(10) On and after July 1, 2020, to any event at the Dunkin' Donuts Park 1214
1472-in Hartford. 1215
1473-[(b)] (c) (1) For the following venues and events, for sales occurring 1216
1474-on or after July 1, 2019, but prior to July 1, 2020, the tax imposed under 1217
1475-this section shall be seven and one-half per cent of the admission charge 1218
1476-to: 1219
1477-(A) Any event at the XL Center in Hartford; 1220
1478-(B) Any event at Dillon Stadium in Hartford; 1221
1479-(C) Any athletic event presented by a member team of the Atlantic 1222
1480-League of Professional Baseball at the New Britain Stadium; 1223
1481-(D) Any event at the Webster Bank Arena in Bridgeport; 1224
1482-(E) Any event at the Harbor Yard Amphitheater in Bridgeport; 1225
1483-(F) Any event at Dodd Stadium in Norwich; 1226
1484-(G) Any event at the Oakdale Theatre in Wallingford; and 1227
1485-(H) Any event other than an interscholastic athletic event at the 1228
1486-stadium facility, as defined in section 32-651. 1229 Substitute Bill No. 6443
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1492-
1493-(2) For sales occurring on or after July 1, 2019, but prior to July 1, 2020, 1230
1494-for any event at the Dunkin' Donuts Park in Hartford, the tax imposed 1231
1495-under this section shall be five per cent of the admission charge. 1232
1496-(3) For the venues and events specified in subdivision (1) of this 1233
1497-subsection, for sales occurring on or after July 1, 2020, the tax imposed 1234
1498-under this section shall be five per cent of the admission charge. 1235
1499-(4) On and after July 1, 2001, the tax imposed under this section on 1236
1500-any motion picture show shall be six per cent of the admission charge. 1237
1501-[(c)] (d) The tax shall be imposed upon the person making such 1238
1502-charge and reimbursement for the tax shall be collected by such person 1239
1503-from the purchase. Such reimbursement, termed "tax", shall be paid by 1240
1504-the purchaser to the person making the admission charge. Such tax, 1241
1505-when added to the admission charge, shall be a debt from the purchaser 1242
1506-to the person making the admission charge and shall be recoverable at 1243
1507-law. The amount of tax reimbursement, when so collected, shall be 1244
1508-deemed to be a special fund in trust for the state of Connecticut. 1245
1509-Sec. 21. Subsection (a) of section 12-7b of the general statutes is 1246
1510-repealed and the following is substituted in lieu thereof (Effective July 1, 1247
1511-2021): 1248
1512-(a) The Commissioner of Revenue Services shall, annually on or 1249
1513-before the thirty-first day of December, submit to the legislative Office 1250
1514-of Fiscal Analysis a report concerning certain state tax data, applicable 1251
1515-with respect to the state fiscal year ending on the thirtieth day of June 1252
1516-immediately preceding, as follows: 1253
1517-(1) Sales and use tax data, including (A) gross receipts subject to sales 1254
1518-tax, stated separately in relation to sales of (i) any tangible personal 1255
1519-property, (ii) the leasing or rental of tangible personal property, and (iii) 1256
1520-the rendering of any services subject to said tax, (B) total revenue loss 1257
1521-related to each of the separate provisions for exemption under chapter 1258
1522-219, and (C) total amount of tax collected with respect to each of the 1259
1523-industrial classifications included in the Standard Industrial 1260 Substitute Bill No. 6443
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1529-
1530-Classification Code in current use for purposes of certain statistical data 1261
1531-by the Commissioner of Revenue Services; 1262
1532-(2) Corporation business tax data, including (A) total net income and 1263
1533-total net income apportioned to Connecticut for the most current income 1264
1534-years with respect to which final data is available at the time of each 1265
1535-such report, (B) amount of depreciation not allowed as a deduction in 1266
1536-determining net income for purposes of said tax, (C) operating loss 1267
1537-carry-overs, (D) credits and refunds, separately stated, for 1268
1538-overpayments of taxes due in prior years and to be applicable to the 1269
1539-most current income years with respect to which final data is available 1270
1540-at the time of each such report, (E) number of accounts and total 1271
1541-corporation tax attributable to determination in accordance with (i) net 1272
1542-income tax base, and (ii) the minimum tax base provisions under section 1273
1543-12-219, as amended by this act, and (F) total corporation tax attributable 1274
1544-to each of the industrial classifications included in the Standard 1275
1545-Industrial Classification Code in current use for purposes of certain 1276
1546-statistical data by the Commissioner of Revenue Services; 1277
1547-(3) Estate and gift tax data, including total taxes collected and the 1278
1548-number of taxpayers, separately stated with respect to the estate tax and 1279
1549-the gift tax; 1280
1550-(4) Personal income tax data, including (A) all components of and 1281
1551-adjustments to federal gross income, federal adjusted gross income and 1282
1552-federal taxable income, separately stated, of Connecticut taxpayers, 1283
1553-sorted into ten-thousand-dollar increments of federal adjusted gross 1284
1554-income up to and including one hundred thousand dollars, into twenty-1285
1555-five-thousand-dollar increments of federal adjusted gross income from 1286
1556-over one hundred thousand dollars up to and including two hundred 1287
1557-thousand dollars and into one increment over two hundred thousand 1288
1558-dollars of federal adjusted gross income, as derived from federal income 1289
1559-tax returns, and (B) all components of and adjustments to Connecticut 1290
1560-adjusted gross income and Connecticut taxable income, separately 1291
1561-stated, of Connecticut taxpayers, sorted into ten-thousand-dollar 1292
1562-increments of Connecticut adjusted gross income up to and including 1293 Substitute Bill No. 6443
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1568-
1569-one hundred thousand dollars, into twenty-five-thousand-dollar 1294
1570-increments of Connecticut adjusted gross income from over one 1295
1571-hundred thousand dollars up to and including two hundred thousand 1296
1572-dollars and into one increment over two hundred thousand dollars of 1297
1573-Connecticut adjusted gross income, as derived from state personal 1298
1574-income tax returns; 1299
1575-(5) [Admissions] (A) Prior to July 1, 2021, admissions and dues tax 1300
1576-data, including the number of taxpayers and the total amount of tax 1301
1577-collected, stated separately with respect to each of the taxes imposed 1302
1578-under chapter 225, and (B) on and after July 1, 2021, dues tax data, 1303
1579-including the number of taxpayers and the total amount of tax collected 1304
1580-under chapter 225; 1305
1581-(6) Real estate conveyance tax data, including (A) the number of 1306
1582-taxable transfers and the total amount of revenue, and (B) the amount 1307
1583-of revenue attributable to categories of purchase price for such transfers 1308
1584-of real estate, as follows: (i) Under thirty thousand dollars, (ii) brackets 1309
1585-of ten thousand dollars each from thirty thousand dollars up to two 1310
1586-hundred thousand dollars, and (iii) two hundred thousand dollars and 1311
1587-over; and 1312
1588-(7) Data applicable to any state tax not included in subdivisions (1) to 1313
1589-(6), inclusive, of this subsection, including totals applicable to each such 1314
1590-tax for (A) number of taxpayers, (B) payments in accordance with 1315
1591-applicable penalty provisions for delinquency, and (C) taxes collected 1316
1592-which became due in the preceding fiscal year. 1317
1593-Sec. 22. Subsection (a) of section 32-285 of the general statutes is 1318
1594-repealed and the following is substituted in lieu thereof (Effective July 1, 1319
1595-2021): 1320
1596-(a) (1) There is hereby established a tax incremental financing 1321
1597-program, under which the incremental hotel taxes collected under 1322
1598-subparagraph (H) of subdivision (2) of subsection (a) of section 12-407, 1323
1599-[which] that are generated by a project approved by the corporation 1324 Substitute Bill No. 6443
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1605-
1606-under this section may be used to pay the debt service on bonds issued 1325
1607-by the corporation to help finance, on a self-sustaining basis, significant 1326
1608-economic projects and encourage their location in the state. 1327
1609-(2) The incremental sales taxes collected under chapter 219, other 1328
1610-than the sales tax referenced in subdivision (1) of this subsection, and 1329
1611-[admissions, cabaret and] dues taxes collected under chapter 225 1330
1612-[which] that are generated by a project may, subject to approval 1331
1613-pursuant to this section by the joint standing committees of the General 1332
1614-Assembly having cognizance of matters relating to the Department of 1333
1615-Economic and Community Development and finance, revenue and 1334
1616-bonding, and the corporation, be used to pay the debt service on bonds 1335
1617-issued by the corporation to help finance, on a self-sustaining basis, 1336
1618-significant economic projects and encourage their location in the state. 1337
1619-Sec. 23. Subdivision (2) of subsection (f) of section 32-285 of the 1338
1620-general statutes is repealed and the following is substituted in lieu 1339
1621-thereof (Effective July 1, 2021): 1340
1622-(2) The corporation may approve a project only if it concludes that: 1341
1623-(A) The project is an eligible project; (B) the incremental hotel taxes or, 1342
1624-if applicable, the incremental sales taxes collected under chapter 219 and 1343
1625-the incremental [admissions, cabaret and] dues taxes collected under 1344
1626-chapter 225 that are generated by the project, together with other 1345
1627-dedicated sources of financing available to pay debt service on the 1346
1628-bonds, will be sufficient to pay interest and principal on the bonds as 1347
1629-they come due; (C) the project will be economically viable and will 1348
1630-contribute significantly to economic development and employment 1349
1631-opportunity in the state; and (D) the direct and indirect economic 1350
1632-benefits of the project to the state and the municipality in which it shall 1351
1633-be located will be greater than the costs to the state and such 1352
1634-municipality. 1353
1635-Sec. 24. Subsection (i) of section 32-656 of the general statutes is 1354
1636-repealed and the following is substituted in lieu thereof (Effective July 1, 1355
1637-2021): 1356 Substitute Bill No. 6443
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1643-
1644-(i) The secretary and the authority shall jointly select and appoint an 1357
1645-independent construction contract compliance officer or agent, which 1358
1646-may be an officer or agency of a political subdivision of the state, other 1359
1647-than the authority, or a private consultant experienced in similar public 1360
1648-contract compliance matters, to monitor compliance by the secretary, 1361
1649-the authority, the project manager and each prime construction 1362
1650-contractor with the provisions of applicable state law, including 1363
1651-subdivision (1) of section 12-412, subsection (a) of section 12-498, 1364
1652-[sections 12-541 and] section 13a-25, subdivision (1) of section 22a-134, 1365
1653-section 32-600, subsection (d) of section 32-602, subsection (c) of section 1366
1654-32-605, section 32-610, subsections (a) and (b) of section 32-614, sections 1367
1655-32-617, 32-617a, 32-650, 32-651 to 32-658, inclusive, 32-660 and 32-661, 1368
1656-subsection (b) of section 32-662, section 32-663, subsections (j) to (l), 1369
1657-inclusive, of section 32-664, sections 32-665 to 32-666a, inclusive, sections 1370
1658-32-668 and 48-21 and sections 29 and 30 of public act 00-140*, and with 1371
1659-applicable requirements of contracts with the secretary or the authority, 1372
1660-relating to set-asides for small contractors and minority business 1373
1661-enterprises and required efforts to hire available and qualified members 1374
1662-of minorities and available and qualified residents of the city of Hartford 1375
1663-and the town of East Hartford for construction jobs with respect to the 1376
1664-overall project and the on-site related private development. Such 1377
1665-independent contract compliance officer or agent shall file a written 1378
1666-report of his or her findings and recommendations with the secretary 1379
1667-and the authority each quarter during the period of project 1380
1668-development. 1381
1669-Sec. 25. (NEW) (Effective January 1, 2022) (a) As used in this section: 1382
1670-(1) "Child" means an individual who is under seventeen years of age; 1383
1671-(2) "Eligible taxpayer" means a resident of this state who is subject to 1384
1672-the tax under chapter 229 of the general statutes; and 1385
1673-(3) "Resident of this state" has the same meaning as provided in 1386
1674-subsection (a) of section 12-701 of the general statutes, as amended by 1387
1675-this act. 1388 Substitute Bill No. 6443
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1681-
1682-(b) Any eligible taxpayer shall be allowed a credit against the tax 1389
1683-imposed under chapter 229 of the general statutes, other than the 1390
1684-liability imposed under section 12-707 of the general statutes, for each 1391
1685-child, up to a maximum of three children, that the eligible taxpayer 1392
1686-validly claims as a dependent on such taxpayer's return filed under the 1393
1687-federal income tax for the applicable taxable year. 1394
1688-(1) For the taxable year commencing January 1, 2022, an eligible 1395
1689-taxpayer may claim one of the options set forth in this subdivision: 1396
1690-(A) Three hundred dollars per child, provided such amount shall be 1397
1691-reduced ten per cent for every one thousand dollars, or fraction thereof, 1398
1692-of federal adjusted gross income over (i) one hundred thousand dollars 1399
1693-for an individual who files a return under the federal income tax as an 1400
1694-unmarried individual or a married individual filing separately, (ii) one 1401
1695-hundred sixty thousand dollars for an individual who files a return 1402
1696-under the federal income tax as a head of household, and (iii) two 1403
1697-hundred thousand dollars for individuals who file a return under the 1404
1698-federal income tax as married individuals filing jointly or as a surviving 1405
1699-spouse, as defined in Section 2(a) of the Internal Revenue Code. The 1406
1700-credit allowed under this subparagraph shall not be used to reduce the 1407
1701-taxpayer's liability to less than zero; or 1408
1702-(B) Two hundred ten dollars per child, provided such amount shall 1409
1703-be reduced ten per cent for every one thousand dollars, or fraction 1410
1704-thereof, of federal adjusted gross income over (i) one hundred thousand 1411
1705-dollars for an individual who files a return under the federal income tax 1412
1706-as an unmarried individual or a married individual filing separately, (ii) 1413
1707-one hundred sixty thousand dollars for an individual who files a return 1414
1708-under the federal income tax as a head of household, and (iii) two 1415
1709-hundred thousand dollars for individuals who file a return under the 1416
1710-federal income tax as married individuals filing jointly or as a surviving 1417
1711-spouse. The credit allowed under this subparagraph shall not exceed 1418
1712-two and one-quarter per cent of the eligible taxpayer's federal adjusted 1419
1713-gross income. If the amount of the credit allowed pursuant to this 1420
1714-subparagraph exceeds the eligible taxpayer's liability for the tax 1421 Substitute Bill No. 6443
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1720-
1721-imposed under chapter 229 of the general statutes, the Commissioner of 1422
1722-Revenue Services shall treat such excess as an overpayment and, except 1423
1723-as provided under section 12-739 or 12-742 of the general statutes, shall 1424
1724-refund the amount of such excess, without interest, to the eligible 1425
1725-taxpayer. 1426
1726-(2) For the taxable year commencing January 1, 2023, and each taxable 1427
1727-year thereafter, an eligible taxpayer may claim one of the options set 1428
1728-forth in this subdivision: 1429
1729-(A) Six hundred dollars per child, provided such amount shall be 1430
1730-reduced ten per cent for every one thousand dollars, or fraction thereof, 1431
1731-of federal adjusted gross income over (i) one hundred thousand dollars 1432
1732-for an individual who files a return under the federal income tax as an 1433
1733-unmarried individual or a married individual filing separately, (ii) one 1434
1734-hundred sixty thousand dollars for an individual who files a return 1435
1735-under the federal income tax as a head of household, and (iii) two 1436
1736-hundred thousand dollars for individuals who file a return under the 1437
1737-federal income tax as married individuals filing jointly or as a surviving 1438
1738-spouse, as defined in Section 2(a) of the Internal Revenue Code. The 1439
1739-credit allowed under this subparagraph shall not be used to reduce the 1440
1740-taxpayer's liability to less than zero; or 1441
1741-(B) Four hundred twenty dollars per child, provided such amount 1442
1742-shall be reduced ten per cent for every one thousand dollars, or fraction 1443
1743-thereof, of federal adjusted gross income over (i) one hundred thousand 1444
1744-dollars for an individual who files a return under the federal income tax 1445
1745-as an unmarried individual or a married individual filing separately, (ii) 1446
1746-one hundred sixty thousand dollars for an individual who files a return 1447
1747-under the federal income tax as a head of household, and (iii) two 1448
1748-hundred thousand dollars for individuals who file a return under the 1449
1749-federal income tax as married individuals filing jointly or as a surviving 1450
1750-spouse. The credit allowed under this subparagraph shall not exceed 1451
1751-four and one-half per cent of the eligible taxpayer's federal adjusted 1452
1752-gross income. If the amount of the credit allowed pursuant to this 1453
1753-subparagraph exceeds the eligible taxpayer's liability for the tax 1454 Substitute Bill No. 6443
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1759-
1760-imposed under chapter 229 of the general statutes, the Commissioner of 1455
1761-Revenue Services shall treat such excess as an overpayment and, except 1456
1762-as provided under section 12-739 or 12-742 of the general statutes, shall 1457
1763-refund the amount of such excess, without interest, to the eligible 1458
1764-taxpayer. 1459
1765-(c) For the purposes of this section, the tax liability of an eligible 1460
1766-taxpayer shall be calculated without regard to the credit allowed under 1461
1767-section 12-704e of the general statutes, as amended by this act. 1462
1768-Sec. 26. Subparagraph (B) of subdivision (20) of subsection (a) of 1463
1769-section 12-701 of the general statutes is repealed and the following is 1464
1770-substituted in lieu thereof (Effective January 1, 2022): 1465
1771-(B) There shall be subtracted therefrom: 1466
1772-(i) To the extent properly includable in gross income for federal 1467
1773-income tax purposes, any income with respect to which taxation by any 1468
1774-state is prohibited by federal law; 1469
1775-(ii) To the extent allowable under section 12-718, exempt dividends 1470
1776-paid by a regulated investment company; 1471
1777-(iii) To the extent properly includable in gross income for federal 1472
1778-income tax purposes, the amount of any refund or credit for 1473
1779-overpayment of income taxes imposed by this state, or any other state 1474
1780-of the United States or a political subdivision thereof, or the District of 1475
1781-Columbia; 1476
1782-(iv) To the extent properly includable in gross income for federal 1477
1783-income tax purposes and not otherwise subtracted from federal 1478
1784-adjusted gross income pursuant to clause (x) of this subparagraph in 1479
1785-computing Connecticut adjusted gross income, any tier 1 railroad 1480
1786-retirement benefits; 1481
1787-(v) To the extent any additional allowance for depreciation under 1482
1788-Section 168(k) of the Internal Revenue Code for property placed in 1483 Substitute Bill No. 6443
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1794-
1795-service after September 27, 2017, was added to federal adjusted gross 1484
1796-income pursuant to subparagraph (A)(ix) of this subdivision in 1485
1797-computing Connecticut adjusted gross income, twenty-five per cent of 1486
1798-such additional allowance for depreciation in each of the four 1487
1799-succeeding taxable years; 1488
1800-(vi) To the extent properly includable in gross income for federal 1489
1801-income tax purposes, any interest income from obligations issued by or 1490
1802-on behalf of the state of Connecticut, any political subdivision thereof, 1491
1803-or public instrumentality, state or local authority, district or similar 1492
1804-public entity created under the laws of the state of Connecticut; 1493
1805-(vii) To the extent properly includable in determining the net gain or 1494
1806-loss from the sale or other disposition of capital assets for federal income 1495
1807-tax purposes, any gain from the sale or exchange of obligations issued 1496
1808-by or on behalf of the state of Connecticut, any political subdivision 1497
1809-thereof, or public instrumentality, state or local authority, district or 1498
1810-similar public entity created under the laws of the state of Connecticut, 1499
1811-in the income year such gain was recognized; 1500
1812-(viii) Any interest on indebtedness incurred or continued to purchase 1501
1813-or carry obligations or securities the interest on which is subject to tax 1502
1814-under this chapter but exempt from federal income tax, to the extent that 1503
1815-such interest on indebtedness is not deductible in determining federal 1504
1816-adjusted gross income and is attributable to a trade or business carried 1505
1817-on by such individual; 1506
1818-(ix) Ordinary and necessary expenses paid or incurred during the 1507
1819-taxable year for the production or collection of income which is subject 1508
1820-to taxation under this chapter but exempt from federal income tax, or 1509
1821-the management, conservation or maintenance of property held for the 1510
1822-production of such income, and the amortizable bond premium for the 1511
1823-taxable year on any bond the interest on which is subject to tax under 1512
1824-this chapter but exempt from federal income tax, to the extent that such 1513
1825-expenses and premiums are not deductible in determining federal 1514
1826-adjusted gross income and are attributable to a trade or business carried 1515 Substitute Bill No. 6443
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1832-
1833-on by such individual; 1516
1834-(x) (I) For taxable years commencing prior to January 1, 2019, for a 1517
1835-person who files a return under the federal income tax as an unmarried 1518
1836-individual whose federal adjusted gross income for such taxable year is 1519
1837-less than fifty thousand dollars, or as a married individual filing 1520
1838-separately whose federal adjusted gross income for such taxable year is 1521
1839-less than fifty thousand dollars, or for a husband and wife who file a 1522
1840-return under the federal income tax as married individuals filing jointly 1523
1841-whose federal adjusted gross income for such taxable year is less than 1524
1842-sixty thousand dollars or a person who files a return under the federal 1525
1843-income tax as a head of household whose federal adjusted gross income 1526
1844-for such taxable year is less than sixty thousand dollars, an amount 1527
1845-equal to the Social Security benefits includable for federal income tax 1528
1846-purposes; 1529
1847-(II) For taxable years commencing prior to January 1, 2019, for a 1530
1848-person who files a return under the federal income tax as an unmarried 1531
1849-individual whose federal adjusted gross income for such taxable year is 1532
1850-fifty thousand dollars or more, or as a married individual filing 1533
1851-separately whose federal adjusted gross income for such taxable year is 1534
1852-fifty thousand dollars or more, or for a husband and wife who file a 1535
1853-return under the federal income tax as married individuals filing jointly 1536
1854-whose federal adjusted gross income from such taxable year is sixty 1537
1855-thousand dollars or more or for a person who files a return under the 1538
1856-federal income tax as a head of household whose federal adjusted gross 1539
1857-income for such taxable year is sixty thousand dollars or more, an 1540
1858-amount equal to the difference between the amount of Social Security 1541
1859-benefits includable for federal income tax purposes and the lesser of 1542
1860-twenty-five per cent of the Social Security benefits received during the 1543
1861-taxable year, or twenty-five per cent of the excess described in Section 1544
1862-86(b)(1) of the Internal Revenue Code; 1545
1863-(III) For the taxable year commencing January 1, 2019, and each 1546
1864-taxable year thereafter, for a person who files a return under the federal 1547
1865-income tax as an unmarried individual whose federal adjusted gross 1548 Substitute Bill No. 6443
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1871-
1872-income for such taxable year is less than seventy-five thousand dollars, 1549
1873-or as a married individual filing separately whose federal adjusted gross 1550
1874-income for such taxable year is less than seventy-five thousand dollars, 1551
1875-or for a husband and wife who file a return under the federal income tax 1552
1876-as married individuals filing jointly whose federal adjusted gross 1553
1877-income for such taxable year is less than one hundred thousand dollars 1554
1878-or a person who files a return under the federal income tax as a head of 1555
1879-household whose federal adjusted gross income for such taxable year is 1556
1880-less than one hundred thousand dollars, an amount equal to the Social 1557
1881-Security benefits includable for federal income tax purposes; and 1558
1882-(IV) For the taxable year commencing January 1, 2019, and each 1559
1883-taxable year thereafter, for a person who files a return under the federal 1560
1884-income tax as an unmarried individual whose federal adjusted gross 1561
1885-income for such taxable year is seventy-five thousand dollars or more, 1562
1886-or as a married individual filing separately whose federal adjusted gross 1563
1887-income for such taxable year is seventy-five thousand dollars or more, 1564
1888-or for a husband and wife who file a return under the federal income tax 1565
1889-as married individuals filing jointly whose federal adjusted gross 1566
1890-income from such taxable year is one hundred thousand dollars or more 1567
1891-or for a person who files a return under the federal income tax as a head 1568
1892-of household whose federal adjusted gross income for such taxable year 1569
1893-is one hundred thousand dollars or more, an amount equal to the 1570
1894-difference between the amount of Social Security benefits includable for 1571
1895-federal income tax purposes and the lesser of twenty-five per cent of the 1572
1896-Social Security benefits received during the taxable year, or twenty-five 1573
1897-per cent of the excess described in Section 86(b)(1) of the Internal 1574
1898-Revenue Code; 1575
1899-(xi) To the extent properly includable in gross income for federal 1576
1900-income tax purposes, any amount rebated to a taxpayer pursuant to 1577
1901-section 12-746; 1578
1902-(xii) To the extent properly includable in the gross income for federal 1579
1903-income tax purposes of a designated beneficiary, any distribution to 1580
1904-such beneficiary from any qualified state tuition program, as defined in 1581 Substitute Bill No. 6443
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1910-
1911-Section 529(b) of the Internal Revenue Code, established and 1582
1912-maintained by this state or any official, agency or instrumentality of the 1583
1913-state; 1584
1914-(xiii) To the extent allowable under section 12-701a, contributions to 1585
1915-accounts established pursuant to any qualified state tuition program, as 1586
1916-defined in Section 529(b) of the Internal Revenue Code, established and 1587
1917-maintained by this state or any official, agency or instrumentality of the 1588
1918-state; 1589
1919-(xiv) To the extent properly includable in gross income for federal 1590
1920-income tax purposes, the amount of any Holocaust victims' settlement 1591
1921-payment received in the taxable year by a Holocaust victim; 1592
1922-(xv) To the extent properly includable in gross income for federal 1593
1923-income tax purposes of an account holder, as defined in section 31-1594
1924-51ww, interest earned on funds deposited in the individual 1595
1925-development account, as defined in section 31-51ww, of such account 1596
1926-holder; 1597
1927-(xvi) To the extent properly includable in the gross income for federal 1598
1928-income tax purposes of a designated beneficiary, as defined in section 1599
1929-3-123aa, interest, dividends or capital gains earned on contributions to 1600
1930-accounts established for the designated beneficiary pursuant to the 1601
1931-Connecticut Homecare Option Program for the Elderly established by 1602
1932-sections 3-123aa to 3-123ff, inclusive; 1603
1933-(xvii) To the extent properly includable in gross income for federal 1604
1934-income tax purposes, any income received from the United States 1605
1935-government as retirement pay for a retired member of (I) the Armed 1606
1936-Forces of the United States, as defined in Section 101 of Title 10 of the 1607
1937-United States Code, or (II) the National Guard, as defined in Section 101 1608
1938-of Title 10 of the United States Code; 1609
1939-(xviii) To the extent properly includable in gross income for federal 1610
1940-income tax purposes for the taxable year, any income from the discharge 1611
1941-of indebtedness in connection with any reacquisition, after December 1612 Substitute Bill No. 6443
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1947-
1948-31, 2008, and before January 1, 2011, of an applicable debt instrument or 1613
1949-instruments, as those terms are defined in Section 108 of the Internal 1614
1950-Revenue Code, as amended by Section 1231 of the American Recovery 1615
1951-and Reinvestment Act of 2009, to the extent any such income was added 1616
1952-to federal adjusted gross income pursuant to subparagraph (A)(xi) of 1617
1953-this subdivision in computing Connecticut adjusted gross income for a 1618
1954-preceding taxable year; 1619
1955-(xix) To the extent not deductible in determining federal adjusted 1620
1956-gross income, the amount of any contribution to a manufacturing 1621
1957-reinvestment account established pursuant to section 32-9zz in the 1622
1958-taxable year that such contribution is made; 1623
1959-(xx) To the extent properly includable in gross income for federal 1624
1960-income tax purposes, (I) for the taxable year commencing January 1, 1625
1961-2015, ten per cent of the income received from the state teachers' 1626
1962-retirement system, (II) for the taxable years commencing January 1, 1627
1963-2016, to January 1, 2020, inclusive, twenty-five per cent of the income 1628
1964-received from the state teachers' retirement system, and (III) for the 1629
1965-taxable year commencing January 1, 2021, and each taxable year 1630
1966-thereafter, fifty per cent of the income received from the state teachers' 1631
1967-retirement system or the percentage, if applicable, pursuant to clause 1632
1968-(xxi) of this subparagraph; 1633
1969-(xxi) To the extent properly includable in gross income for federal 1634
1970-income tax purposes, except for retirement benefits under clause (iv) of 1635
1971-this subparagraph and retirement pay under clause (xvii) of this 1636
1972-subparagraph, for a person who files a return under the federal income 1637
1973-tax as an unmarried individual whose federal adjusted gross income for 1638
1974-such taxable year is less than seventy-five thousand dollars, or as a 1639
1975-married individual filing separately whose federal adjusted gross 1640
1976-income for such taxable year is less than seventy-five thousand dollars, 1641
1977-or as a head of household whose federal adjusted gross income for such 1642
1978-taxable year is less than seventy-five thousand dollars, or for a husband 1643
1979-and wife who file a return under the federal income tax as married 1644
1980-individuals filing jointly whose federal adjusted gross income for such 1645 Substitute Bill No. 6443
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1986-
1987-taxable year is less than one hundred thousand dollars, (I) for the taxable 1646
1988-year commencing January 1, 2019, fourteen per cent of any pension or 1647
1989-annuity income, (II) for the taxable year commencing January 1, 2020, 1648
1990-twenty-eight per cent of any pension or annuity income, (III) for the 1649
1991-taxable year commencing January 1, 2021, forty-two per cent of any 1650
1992-pension or annuity income, (IV) for the taxable year commencing 1651
1993-January 1, 2022, fifty-six per cent of any pension or annuity income and 1652
1994-of any distributions from an individual retirement account other than a 1653
1995-Roth individual retirement account, (V) for the taxable year 1654
1996-commencing January 1, 2023, seventy per cent of any pension or annuity 1655
1997-income and of any distributions from an individual retirement account 1656
1998-other than a Roth individual retirement account, (VI) for the taxable year 1657
1999-commencing January 1, 2024, eighty-four per cent of any pension or 1658
2000-annuity income and of any distributions from an individual retirement 1659
2001-account other than a Roth individual retirement account, and (VII) for 1660
2002-the taxable year commencing January 1, 2025, and each taxable year 1661
2003-thereafter, any pension or annuity income and of any distributions from 1662
2004-an individual retirement account other than a Roth individual 1663
2005-retirement account; 1664
2006-(xxii) The amount of lost wages and medical, travel and housing 1665
2007-expenses, not to exceed ten thousand dollars in the aggregate, incurred 1666
2008-by a taxpayer during the taxable year in connection with the donation 1667
2009-to another person of an organ for organ transplantation occurring on or 1668
2010-after January 1, 2017; 1669
2011-(xxiii) To the extent properly includable in gross income for federal 1670
2012-income tax purposes, the amount of any financial assistance received 1671
2013-from the Crumbling Foundations Assistance Fund or paid to or on 1672
2014-behalf of the owner of a residential building pursuant to sections 8-442 1673
2015-and 8-443; 1674
2016-(xxiv) To the extent properly includable in gross income for federal 1675
2017-income tax purposes, the amount calculated pursuant to subsection (b) 1676
2018-of section 12-704g for income received by a general partner of a venture 1677
2019-capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 1678 Substitute Bill No. 6443
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2025-
2026-time; and 1679
2027-(xxv) To the extent any portion of a deduction under Section 179 of 1680
2028-the Internal Revenue Code was added to federal adjusted gross income 1681
2029-pursuant to subparagraph (A)(xiv) of this subdivision in computing 1682
2030-Connecticut adjusted gross income, twenty-five per cent of such 1683
2031-disallowed portion of the deduction in each of the four succeeding 1684
2032-taxable years. 1685
2033-Sec. 27. (NEW) (Effective January 1, 2022) (a) For taxable years 1686
2034-commencing on or after January 1, 2022, there is imposed a surcharge 1687
2035-on a taxpayer, excluding trusts or estates, whose Connecticut adjusted 1688
2036-gross income is equal to or greater than the threshold amount specified 1689
2037-in section 12-700 of the general statutes for imposition of the highest 1690
2038-marginal rate on such taxpayer. Such surcharge shall be at the rate of 1691
2039-two per cent of the net gain from the sale or exchange of capital assets, 1692
2040-as determined for federal income tax purposes. The surcharge shall be 1693
2041-in addition to any other tax, fee or surcharge for which the taxpayer is 1694
2042-liable. 1695
2043-(b) Each taxpayer subject to the surcharge shall file a report with the 1696
2044-Commissioner of Revenue Services, in such form and containing such 1697
2045-information as the commissioner prescribes, on or before the fifteenth 1698
2046-day of the fourth month following the close of the taxpayer's taxable 1699
2047-year. Such return shall accurately set forth the amount of the net gain 1700
2048-calculated pursuant to subsection (a) of this section for the preceding 1701
2049-taxable year and the amount of the taxpayer's surcharge liability for 1702
2050-such year. A taxpayer required to file a report shall, without assessment, 1703
2051-notice or demand, pay any surcharge due thereon to the commissioner 1704
2052-on or before the date specified in this subsection, determined without 1705
2053-regard to any extension of time for filing the report. 1706
2054-(c) If any person fails to pay the amount of the surcharge reported 1707
2055-due on a report within the time specified, there shall be imposed a 1708
2056-penalty equal to ten per cent of such amount due and unpaid, or fifty 1709
2057-dollars, whichever is greater. Such amount shall bear interest at the rate 1710 Substitute Bill No. 6443
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2063-
2064-of one per cent per month or fraction thereof, from the due date of such 1711
2065-surcharge until the date of payment. Subject to the provisions of section 1712
2066-12-3a of the general statutes, the commissioner may waive all or part of 1713
2067-the penalties provided under this section when it is proven to the 1714
2068-commissioner's satisfaction that the failure to pay any surcharge was 1715
2069-due to reasonable cause and was not intentional or due to neglect. 1716
2070-(d) The provisions of sections 12-550 to 12-554, inclusive, and section 1717
2071-12-555a of the general statutes shall apply to the provisions of this 1718
2072-section in the same manner and with the same force and effect as if the 1719
2073-language of said sections had been incorporated in full into this section 1720
2074-and had expressly referred to the surcharge under this section, except to 1721
2075-the extent that any provision is inconsistent with a provision in this 1722
2076-section. 1723
2077-(e) The commissioner may adopt regulations, in accordance with the 1724
2078-provisions of chapter 54 of the general statutes, to implement the 1725
2079-provisions of this section. 1726
2080-Sec. 28. Subdivision (2) of subsection (b) of section 12-704c of the 1727
2081-general statutes is repealed and the following is substituted in lieu 1728
2082-thereof (Effective from passage and applicable to taxable years commencing on 1729
2083-or after January 1, 2021): 1730
2084-(2) Notwithstanding the provisions of subsection (a) of this section, 1731
2085-for the taxable years commencing January 1, 2017, to January 1, [2020] 1732
2086-2022, inclusive, the credit under this section shall be allowed only for a 1733
2087-resident of this state (A) who has attained age sixty-five before the close 1734
2088-of the applicable taxable year, or (B) who files a return under the federal 1735
2089-income tax for the applicable taxable year validly claiming one or more 1736
2090-dependents. 1737
2091-Sec. 29. Section 12-412 of the general statutes is amended by adding 1738
2092-subdivision (125) as follows (Effective July 1, 2021, and applicable to sales 1739
2093-occurring on or after July 1, 2021): 1740
2094-(NEW) (125) (A) Sales of and the storage, use or other consumption 1741 Substitute Bill No. 6443
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2100-
2101-of breast pumps and breast pump collection and storage supplies, when 1742
2102-sold to an individual for home use, and repair or replacement parts for 1743
2103-and repair services rendered to such breast pumps. 1744
2104-(B) (i) Sales of and the storage, use or other consumption of breast 1745
2105-pump kits prepackaged by the breast pump manufacturer, when sold to 1746
2106-an individual for home use, provided the breast pump kit is composed 1747
2107-entirely of (I) a breast pump and breast pump collection and storage 1748
2108-supplies, that are exempt under this subdivision, or (II) breast pump 1749
2109-collection and storage supplies that are exempt under this subdivision. 1750
2110-(ii) If a breast pump kit includes other taxable items of tangible 1751
2111-personal property, the sale of and the storage, use or other consumption 1752
2112-of such breast pump kit is subject to the tax imposed under this chapter 1753
2113-unless the sales price of the other taxable items of tangible personal 1754
2114-property packaged and sold with the breast pump kit at the time of sale 1755
2115-is ten per cent or less of the total sale price of the breast pump kit. 1756
2116-(C) As used in this subdivision: 1757
2117-(i) "Breast pump" means an electrically or manually controlled pump 1758
2118-device used to express milk from a human breast during lactation, 1759
2119-including any external power supply unit packaged and sold with the 1760
2120-pump device at the time of sale to power the pump device; 1761
2121-(ii) (I) "Breast pump collection and storage supplies" means items of 1762
2122-tangible personal property such as breast shields and breast shield 1763
2123-connectors, breast pump tubes and tubing adapters; breast pump valves 1764
2124-and membranes; backflow protectors and backflow protector adapters; 1765
2125-bottles and bottle caps specific to the operation of the breast pump, 1766
2126-breast milk storage bags; and related items sold as part of a breast pump 1767
2127-kit prepackaged by the breast pump manufacturer; that are used in 1768
2128-conjunction with a breast pump to collect milk expressed from a human 1769
2129-breast and to store collected milk until it is ready for consumption; 1770
2130-(II) "Breast pump collection and storage supplies" does not include 1771
2131-bottles and bottle caps not specific to the operation of the breast pump; 1772 Substitute Bill No. 6443
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2137-
2138-breast pump travel bags or other similar carrying accessories, including 1773
2139-ice packs, labels and other similar products, unless sold as part of a 1774
2140-breast pump kit prepackaged by the breast pump manufacturer; breast 1775
2141-pump cleaning supplies, unless sold as part of a breast pump kit 1776
2142-prepackaged by the breast pump manufacturer; nursing bras, bra pads, 1777
2143-breast shells or other similar products; or creams, ointments and other 1778
2144-similar products that relieve breastfeeding-related symptoms or 1779
2145-conditions of the breasts or nipples; and 1780
2146-(III) "Breast pump kit" means a prepackaged set that contains one or 1781
2147-more of the following items: A breast pump; breast pump collection and 1782
2148-storage supplies; and other items of tangible personal property that may 1783
2149-be useful to initiate, support or sustain breastfeeding using a breast 1784
2150-pump during lactation. 1785
2151-Sec. 30. (Effective July 1, 2021, and applicable to sales occurring on or after 1786
2152-July 1, 2021) For the fiscal year commencing July 1, 2021, any 1787
2153-establishment that (1) sells meals, as defined in subdivision (13) of 1788
2154-section 12-412 of the general statutes, subject to the tax under 1789
2155-subparagraph (I) of subdivision (1) of section 12-408 of the general 1790
2156-statutes, and (2) is included in Sector 72 of the North American 1791
2157-Industrial Classification System, United States Manual, United States 1792
2158-Office of Management and Budget, 2017 edition, may retain thirteen and 1793
2159-six-tenths per cent of the tax collected by such establishment that is 1794
2160-attributable to the sale of meals. Each such establishment shall include 1795
2161-in each return required to be filed with the Department of Revenue 1796
2162-Services the total amount of the tax collected from such sales for the 1797
2163-period reported, the amount retained by such establishment and any 1798
2164-other information or documentation the Commissioner of Revenue 1799
2165-Services may require. 1800
2166-Sec. 31. Section 12-263i of the general statutes is repealed and the 1801
2167-following is substituted in lieu thereof (Effective June 1, 2021, and 1802
2168-applicable to calendar quarters commencing on or after July 1, 2020): 1803
2169-(a) As used in this section: 1804 Substitute Bill No. 6443
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2175-
2176-(1) "Ambulatory surgical center" means an entity included within the 1805
2177-definition of said term that is set forth in 42 CFR 416.2 and that is 1806
2178-licensed by the Department of Public Health as an outpatient surgical 1807
2179-facility, and any other ambulatory surgical center that is Medicare 1808
2180-certified; 1809
2181-(2) "Commissioner" means the Commissioner of Revenue Services; 1810
2182-and 1811
2183-(3) "Department" means the Department of Revenue Services. 1812
2184-(b) (1) For each calendar quarter commencing on or after October 1, 1813
2185-2015, but prior to July 1, 2021, there is hereby imposed a tax on each 1814
2186-ambulatory surgical center in this state to be paid each calendar quarter. 1815
2187-The tax imposed by this section shall be at the rate of six per cent of the 1816
2188-gross receipts of each ambulatory surgical center, except that: 1817
2189-(A) Prior to July 1, 2019, such tax shall not be imposed on any amount 1818
2190-of such gross receipts that constitutes either (i) the first million dollars 1819
2191-of gross receipts of the ambulatory surgical center in the applicable fiscal 1820
2192-year, or (ii) net revenue of a hospital that is subject to the tax imposed 1821
2193-under section 12-263q; [and] 1822
2194-(B) On and after July 1, 2019, but prior to July 1, 2021, such tax shall 1823
2195-not be imposed on any amount of such gross receipts that constitutes 1824
2196-any of the following: (i) The first million dollars of gross receipts of the 1825
2197-ambulatory surgical center in the applicable fiscal year, excluding 1826
2198-Medicaid and Medicare payments, (ii) net revenue of a hospital that is 1827
2199-subject to the tax imposed under section 12-263q, (iii) Medicaid 1828
2200-payments received by the ambulatory surgical center, and (iv) Medicare 1829
2201-payments received by the ambulatory surgical center; and 1830
2202-(C) For the calendar quarters commencing on or after July 1, 2020, but 1831
2203-prior to July 1, 2021, COVID-19 expenses may be deducted from the 1832
2204-gross receipts of the ambulatory surgical center prior to the imposition 1833
2205-of such tax. As used in this subparagraph, (i) "COVID-19 expenses" 1834
2206-means all amounts incurred by or on behalf of an ambulatory surgical 1835 Substitute Bill No. 6443
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2212-
2213-center directly or indirectly as a result of COVID-19, including, but not 1836
2214-limited to, amounts for the purchase, lease, licensing or use of tangible 1837
2215-or intangible property in connection with tests for, protection or 1838
2216-prevention against or treatment of COVID-19 or its symptoms, for the 1839
2217-ambulatory surgical center's personnel, patients, service providers, 1840
2218-visitors, facilities or tangible personal property, and (ii) "COVID-19" 1841
2219-means the respiratory disease designated by the World Health 1842
2220-Organization on February 11, 2020, as coronavirus 2019, and any related 1843
2221-mutation thereof recognized by said organization as a communicable 1844
2222-respiratory disease. 1845
2223-(2) Nothing in this section shall prohibit an ambulatory surgical 1846
2224-center from seeking remuneration for the tax imposed by this section. 1847
2225-(3) Each ambulatory surgical center shall, on or before January 31, 1848
2226-2016, and thereafter on or before the last day of January, April, July and 1849
2227-October of each year until and including July 31, 2021, render to the 1850
2228-commissioner a return, on forms prescribed or furnished by the 1851
2229-commissioner, reporting the name and location of such ambulatory 1852
2230-surgical center, the entire amount of gross receipts generated by such 1853
2231-ambulatory surgical center during the calendar quarter ending on the 1854
2232-last day of the preceding month and such other information as the 1855
2233-commissioner deems necessary for the proper administration of this 1856
2234-section. The tax imposed under this section shall be due and payable on 1857
2235-the due date of such return. Each ambulatory surgical center shall be 1858
2236-required to file such return electronically with the department and to 1859
2237-make payment of such tax by electronic funds transfer in the manner 1860
2238-provided by chapter 228g, regardless of whether such ambulatory 1861
2239-surgical center would have otherwise been required to file such return 1862
2240-electronically or to make such tax payment by electronic funds transfer 1863
2241-under the provisions of chapter 228g. 1864
2242-(c) Whenever the tax imposed under this section is not paid when 1865
2243-due, a penalty of ten per cent of the amount due and unpaid or fifty 1866
2244-dollars, whichever is greater, shall be imposed and interest at the rate of 1867
2245-one per cent per month or fraction thereof shall accrue on such tax from 1868 Substitute Bill No. 6443
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2251-
2252-the due date of such tax until the date of payment. 1869
2253-(d) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 1870
2254-12-555a shall apply to the provisions of this section in the same manner 1871
2255-and with the same force and effect as if the language of said sections had 1872
2256-been incorporated in full into this section and had expressly referred to 1873
2257-the tax imposed under this section, except to the extent that any 1874
2258-provision is inconsistent with a provision in this section. 1875
2259-(e) For the fiscal [year] years ending June 30, 2016, [and each fiscal 1876
2260-year thereafter] to June 30, 2021, inclusive, the Comptroller is authorized 1877
2261-to record as revenue for each fiscal year the amount of tax imposed 1878
2262-under the provisions of this section prior to the end of each fiscal year 1879
2263-and which tax is received by the Commissioner of Revenue Services not 1880
2264-later than five business days after the last day of July immediately 1881
2265-following the end of each fiscal year. 1882
2266-Sec. 32. Subdivision (2) of subsection (a) of section 12-407 of the 1883
2267-general statutes is repealed and the following is substituted in lieu 1884
2268-thereof (Effective July 1, 2021, and applicable to sales occurring on or after 1885
2269-July 1, 2021): 1886
2270-(2) "Sale" and "selling" mean and include: 1887
2271-(A) Any transfer of title, exchange or barter, conditional or otherwise, 1888
2272-in any manner or by any means whatsoever, of tangible personal 1889
2273-property for a consideration; 1890
2274-(B) Any withdrawal, except a withdrawal pursuant to a transaction 1891
2275-in foreign or interstate commerce, of tangible personal property from 1892
2276-the place where it is located for delivery to a point in this state for the 1893
2277-purpose of the transfer of title, exchange or barter, conditional or 1894
2278-otherwise, in any manner or by any means whatsoever, of the property 1895
2279-for a consideration; 1896
2280-(C) The producing, fabricating, processing, printing or imprinting of 1897
2281-tangible personal property for a consideration for consumers who 1898 Substitute Bill No. 6443
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2287-
2288-furnish either directly or indirectly the materials used in the producing, 1899
2289-fabricating, processing, printing or imprinting, including, but not 1900
2290-limited to, sign construction, photofinishing, duplicating and 1901
2291-photocopying; 1902
2292-(D) The furnishing and distributing of tangible personal property for 1903
2293-a consideration by social clubs and fraternal organizations to their 1904
2294-members or others; 1905
2295-(E) The furnishing, preparing, or serving for a consideration of food, 1906
2296-meals or drinks; 1907
2297-(F) A transaction whereby the possession of property is transferred 1908
2298-but the seller retains the title as security for the payment of the price; 1909
2299-(G) A transfer for a consideration of the title of tangible personal 1910
2300-property which has been produced, fabricated or printed to the special 1911
2301-order of the customer, or of any publication, including, but not limited 1912
2302-to, sign construction, photofinishing, duplicating and photocopying; 1913
2303-(H) A transfer for a consideration of the occupancy of any room or 1914
2304-rooms in a hotel, lodging house or bed and breakfast establishment for 1915
2305-a period of thirty consecutive calendar days or less; 1916
2306-(I) The rendering of certain services, as defined in subdivision (37) of 1917
2307-this subsection, for a consideration, exclusive of such services rendered 1918
2308-by an employee for the employer; 1919
2309-(J) The leasing or rental of tangible personal property of any kind 1920
2310-whatsoever, including, but not limited to, motor vehicles, linen or 1921
2311-towels, machinery or apparatus, office equipment and data processing 1922
2312-equipment, provided for purposes of this subdivision and the 1923
2313-application of sales and use tax to contracts of lease or rental of tangible 1924
2314-personal property, the leasing or rental of any motion picture film by 1925
2315-the owner or operator of a motion picture theater for purposes of display 1926
2316-at such theater shall not constitute a sale within the meaning of this 1927
2317-subsection; 1928 Substitute Bill No. 6443
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2323-
2324-(K) The rendering of telecommunications service, as defined in 1929
2325-subdivision (26) of this subsection, for a consideration on or after 1930
2326-January 1, 1990, exclusive of any such service rendered by an employee 1931
2327-for the employer of such employee, subject to the provisions related to 1932
2328-telecommunications service in accordance with section 12-407a; 1933
2329-(L) (i) The rendering of community antenna television service, as 1934
2330-defined in subdivision (27) of this subsection, for a consideration on or 1935
2331-after January 1, 1990, exclusive of any such service rendered by an 1936
2332-employee for the employer of such employee. For purposes of this 1937
2333-chapter, "community antenna television service" includes service 1938
2334-provided by a holder of a certificate of cable franchise authority 1939
2335-pursuant to section 16-331p, and service provided by a community 1940
2336-antenna television company issued a certificate of video franchise 1941
2337-authority pursuant to section 16-331e for any service area in which it 1942
2338-was not certified to provide community antenna television service 1943
2339-pursuant to section 16-331 on or before October 1, 2007; 1944
2340-(ii) The rendering of certified competitive video service, as defined in 1945
2341-subdivision (38) of this subsection, for consideration on or after October 1946
2342-1, 2007, exclusive of any such service rendered by an employee for the 1947
2343-employer of such employee; 1948
2344-(M) The transfer for consideration of space or the right to use any 1949
2345-space for the purpose of storage or mooring of any noncommercial 1950
2346-vessel, exclusive of dry or wet storage or mooring of such vessel during 1951
2347-the period commencing on the first day of October in any year to and 1952
2348-including the thirty-first day of May of the next succeeding year; 1953
2349-(N) The sale for consideration of naming rights to any place of 1954
2350-amusement, entertainment or recreation within the meaning of 1955
2351-subdivision (3) of section 12-540; 1956
2352-(O) The transfer for consideration of a prepaid telephone calling 1957
2353-service, as defined in subdivision (34) of this subsection, and the 1958
2354-recharge of a prepaid telephone calling service, provided, if the sale or 1959 Substitute Bill No. 6443
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2360-
2361-recharge of a prepaid telephone calling service does not take place at the 1960
2362-retailer's place of business and an item is shipped by the retailer to the 1961
2363-customer, the sale or recharge shall be deemed to take place at the 1962
2364-customer's shipping address, but, if such sale or recharge does not take 1963
2365-place at the retailer's place of business and no item is shipped by the 1964
2366-retailer to the customer, the sale or recharge shall be deemed to take 1965
2367-place at the customer's billing address or the location associated with 1966
2368-the customer's mobile telephone number; [and] 1967
2369-(P) The furnishing by any person, for a consideration, of space for 1968
2370-storage of tangible personal property when such person is engaged in 1969
2371-the business of furnishing such space, but "sale" and "selling" do not 1970
2372-mean or include the furnishing of space which is used by a person for 1971
2373-residential purposes. As used in this subparagraph, "space for storage" 1972
2374-means secure areas, such as rooms, units, compartments or containers, 1973
2375-whether accessible from outside or from within a building, that are 1974
2376-designated for the use of a customer, where the customer can store and 1975
2377-retrieve property, including self-storage units, mini-storage units and 1976
2378-areas by any other name to which the customer has either unlimited free 1977
2379-access or free access within reasonable business hours or upon 1978
2380-reasonable notice to the service provider to add or remove property, but 1979
2381-does not mean the rental of an entire building, such as a warehouse. For 1980
2382-purposes of this subparagraph, furnishing space for storage shall not 1981
2383-include general warehousing and storage, where the warehouse 1982
2384-typically handles, stores and retrieves a customer's property using the 1983
2385-warehouse's staff and equipment and does not allow the customer free 1984
2386-access to the storage space and shall not include accepting specific items 1985
2387-of property for storage, such as clothing at a dry cleaning establishment 1986
2388-or golf bags at a golf club; and 1987
2389-(Q) The rendering of an ambulatory surgical center service, as 1988
2390-defined in subdivision (45) of this subsection, by an ambulatory surgical 1989
2391-center, as defined in subdivision (44) of this subsection, for a 1990
2392-consideration, exclusive of such service rendered by an employee for the 1991
2393-employer of such employee, subject to the provisions related to 1992 Substitute Bill No. 6443
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2399-
2400-ambulatory surgical center services in accordance with this section and 1993
2401-section 12-408, as amended by this act. 1994
2402-Sec. 33. Subsection (a) of section 12-407 of the general statutes is 1995
2403-amended by adding subdivisions (44) and (45) as follows (Effective July 1996
2404-1, 2021, and applicable to sales occurring on or after July 1, 2021): 1997
2405-(NEW) (44) "Ambulatory surgical center" means any distinct entity 1998
2406-that (A) operates exclusively for the purpose of providing surgical 1999
2407-services to patients not requiring hospitalization and in which the 2000
2408-expected duration of services would not exceed twenty-four hours 2001
2409-following an admission, (B) has an agreement with the Centers for 2002
2410-Medicare and Medicaid Services to participate in Medicare as an 2003
2411-ambulatory surgical center, and (C) meets the general and specific 2004
2412-conditions for participation in Medicare set forth in 42 CFR Part 416, 2005
2413-Subparts B and C, as amended from time to time. 2006
2414-(NEW) (45) (A) "Ambulatory surgical center service" means only 2007
2415-those procedures or services included in a facility fee payment to an 2008
2416-ambulatory surgical center facility associated with each surgical 2009
2417-procedure and that are not reimbursable ancillary or professional 2010
2418-procedures or services. "Ambulatory surgical center service" includes 2011
2419-facility services only and does not include surgical procedures, 2012
2420-physicians' services, anesthetists' services, radiology services, 2013
2421-diagnostic services or ambulance services, if such procedures or services 2014
2422-would be reimbursed as a separate line item from the facility fee 2015
2423-payment to an ambulatory surgical center facility. 2016
2424-(B) For the purposes of the tax imposed under this chapter, "gross 2017
2425-receipts" means the amounts received, in cash or in kind, from patients, 2018
2426-third-party payers and others, including retroactive adjustments under 2019
2427-reimbursement agreements with third-party payers, for the rendering 2020
2428-of ambulatory surgical center services by an ambulatory surgical center. 2021
2429-"Gross receipts" does not include (i) amounts received by an ambulatory 2022
2430-surgical center that were or are subject to the tax imposed under section 2023
2431-12-263i of the general statutes, as amended by this act, (ii) the first one 2024 Substitute Bill No. 6443
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2437-
2438-million five hundred thousand dollars of gross receipts received during 2025
2439-each twelve-month period commencing July first, excluding Medicaid 2026
2440-and Medicare payments, by an ambulatory surgical center for the 2027
2441-provision of ambulatory surgical center services, (iii) Medicaid or 2028
2442-Medicare payments received by the ambulatory surgical center for the 2029
2443-provision of ambulatory surgical center services, (iv) payer discounts, 2030
2444-charity care and bad debts, or (v) amounts received by an ambulatory 2031
2445-surgical center for tangible personal property used in connection with 2032
2446-the rendering of an ambulatory surgical center service, including 2033
2447-implants, devices, drugs and biologicals, regardless of the identity of the 2034
2448-payer for such ambulatory surgical center. 2035
2449-(C) As used in this subdivision: (i) "Medicaid" means the program 2036
2450-operated by the Department of Social Services pursuant to section 17b-2037
2451-260 and authorized by Title XIX of the Social Security Act, as amended 2038
2452-from time to time; (ii) "Medicare" means the program operated by the 2039
2453-Centers for Medicare and Medicaid Services in accordance with Title 2040
2454-XVIII of the Social Security Act, as amended from time to time, 2041
2455-including, but not limited to, programs established pursuant to Parts A, 2042
2456-B and C of Title XVIII of the Social Security Act, as amended from time 2043
2457-to time; (iii) "payer discount" means the difference between an 2044
2458-ambulatory surgical center's published charges and payments received 2045
2459-by such center from one or more third-party payers for a method of 2046
2460-payment that is different than or a rate that is reduced from the 2047
2461-published charges. "Payer discount" does not include charity care or bad 2048
2462-debts; and (iv) "charity care" means free or discounted health care 2049
2463-services rendered by an ambulatory surgical center to an individual 2050
2464-who cannot afford to pay for such services and includes, but is not 2051
2465-limited to, health care services provided to an uninsured patient who is 2052
2466-not expected to pay all or part of an ambulatory surgical center's bill 2053
2467-based on income guidelines and other financial criteria set forth in the 2054
2468-general statutes or in an ambulatory surgical center's charity care 2055
2469-policies on file at the office of such center. "Charity care" does not 2056
2470-include bad debts or payer discounts. 2057 Substitute Bill No. 6443
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2476-
2477-Sec. 34. Subparagraph (J) of subdivision (1) of section 12-408 of the 2058
2478-general statutes is repealed and the following is substituted in lieu 2059
2479-thereof (Effective July 1, 2021, and applicable to sales occurring on or after 2060
2480-July 1, 2021): 2061
2481-(J) (i) The rate of tax imposed by this chapter shall be applicable to all 2062
2482-retail sales upon the effective date of such rate, except that a new rate 2063
2483-that represents an increase in the rate applicable to the sale shall not 2064
2484-apply to any sales transaction wherein a binding sales contract without 2065
2485-an escalator clause has been entered into prior to the effective date of the 2066
2486-new rate and delivery is made within ninety days after the effective date 2067
2487-of the new rate. 2068
2488-(ii) For the purposes of payment of the tax imposed under this 2069
2489-section, any retailer of services (I) taxable under subdivision (37) of 2070
2490-subsection (a) of section 12-407, who computes taxable income, for 2071
2491-purposes of taxation under the Internal Revenue Code of 1986, or any 2072
2492-subsequent corresponding internal revenue code of the United States, 2073
2493-as amended from time to time, on an accounting basis that recognizes 2074
2494-only cash or other valuable consideration actually received as income 2075
2495-and who is liable for such tax only due to the rendering of such services, 2076
2496-and (II) taxable under subparagraph (Q) of subdivision (2) of subsection 2077
2497-(a) of section 12-407, as amended this act, may make payments related 2078
2498-to such tax for the period during which such income is or gross receipts 2079
2499-are received, without penalty or interest, without regard to when such 2080
2500-service is rendered; 2081
2501-Sec. 35. (NEW) (Effective July 1, 2021, and applicable to sales occurring on 2082
2502-or after July 1, 2021) (a) As used in this section: 2083
2503-(1) "Ambulatory surgical center" has the same meaning as provided 2084
2504-in subsection (a) of section 12-407 of the general statutes, as amended by 2085
2505-this act; 2086
2506-(2) "Ambulatory surgical center service" has the same meaning as 2087
2507-provided in subsection (a) of section 12-407 of the general statutes, as 2088 Substitute Bill No. 6443
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2513-
2514-amended by this act; 2089
2515-(3) "Medicaid" has the same meaning as provided in subdivision (45) 2090
2516-of subsection (a) of section 12-407, as amended by this act; 2091
2517-(4) "Medicaid investment" means an amount equal to the greater of 2092
2518-(A) fifty per cent of the aggregate amount of Medicaid payments 2093
2519-received during the applicable reporting period by an ambulatory 2094
2520-surgical center for the provision of ambulatory surgical center services, 2095
2521-or (B) fifty per cent of the aggregate amount of Medicaid payments that 2096
2522-would have been due and owing had services similar to the ambulatory 2097
2523-surgical center services provided by the ambulatory surgical center 2098
2524-during the applicable reporting period been performed by and at a 2099
2525-hospital instead; and 2100
2526-(5) "State health plan investment" means an amount equal to twenty-2101
2527-five per cent of the aggregate payments received from or on behalf of 2102
2528-each individual who is covered under a health plan pursuant to section 2103
2529-5-259 of the general statutes, during the applicable reporting period by 2104
2530-an ambulatory surgical center for the provision of ambulatory surgical 2105
2531-center services. 2106
2532-(b) Each ambulatory surgical center shall be allowed, for each 2107
2533-reporting period, a credit against the tax imposed under chapter 219 of 2108
2534-the general statutes in the amount of the Medicaid investment plus the 2109
2535-state health plan investment. If the amount of the credit allowed 2110
2536-pursuant to this subsection exceeds the ambulatory surgical center's tax 2111
2537-liability for the tax imposed under chapter 219 of the general statutes for 2112
2538-the reporting period, the ambulatory surgical center shall file a claim for 2113
2539-refund, in such form and manner as prescribed by the Commissioner of 2114
2540-Revenue Services. Upon verification of the claim, the commissioner 2115
2541-shall treat such excess as an overpayment and shall refund the amount 2116
2542-of such excess to the ambulatory surgical center. There shall be added 2117
2543-to the amount of such refund interest at the rate of two-thirds of one per 2118
2544-cent for each month or fraction thereof that elapses between the 2119
2545-ninetieth day following receipt of such claim for refund by the 2120 Substitute Bill No. 6443
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2551-
2552-commissioner and the date of notice by the commissioner that such 2121
2553-refund is due. An ambulatory surgical center that claims a credit or 2122
2554-receives a refund under this subsection is entitled to retain such credit 2123
2555-or refund for its own account and is not required to refund or pay the 2124
2556-amount of such credit or refund to any user of or payer for ambulatory 2125
2557-surgical center services. 2126
2558-Sec. 36. Section 1-1j of the general statutes is repealed and the 2127
2559-following is substituted in lieu thereof (Effective July 1, 2022): 2128
2560-(a) Each state agency, as defined in section 4-166, shall accept 2129
2561-payment in cash or by check, draft or money order for any license issued 2130
2562-by such agency pursuant to the provisions of the general statutes. 2131
2563-(b) Except as [otherwise] provided by any other provision of the 2132
2564-general statutes, the Secretary of the Office of Policy and Management 2133
2565-may authorize any state agency [(1)] to accept payment of any fee, cost 2134
2566-or fine payable to such agency by means of a credit card, charge card or 2135
2567-debit card [,] or an electronic payment service, [and (2) to charge a 2136
2568-service fee for any such payment made by credit card, charge card or 2137
2569-debit card or an electronic payment service] provided each state agency 2138
2570-that accepts payment by means of a credit card, charge card or debit 2139
2571-card shall charge the payor using such card a service fee, except that 2140
2572-such service fee may be waived by such state agency for a category of 2141
2573-fee, cost or fine, if such waiver has been approved by said secretary. 2142
2574-[Such] 2143
2575-(c) (1) Any service fee imposed pursuant to subsection (b) of this 2144
2576-section shall [be (A) related to] (A) be for the purpose of defraying the 2145
2577-cost of service, (B) [uniform for all credit cards, charge cards and debit 2146
2578-cards accepted] not exceed any charge by the credit card, charge card or 2147
2579-debit card issuer or processor, including any discount rate, and (C) be 2148
2580-applied only when allowed by the operating rules and regulations of the 2149
2581-credit card, charge card or debit card issuer or processor involved or 2150
2582-when authorized in writing by such issuer or processor. 2151 Substitute Bill No. 6443
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2588-
2589-(2) Each state agency that charges a service fee pursuant to this 2152
2590-section or any other provision of the general statutes shall disclose such 2153
2591-service fee to a payor prior to the imposition of such service fee. Such 2154
2592-disclosure shall be made in accordance with any requirements for 2155
2593-disclosure set forth by the card issuer or processor. 2156
2594-(d) Payments by credit card, charge card, debit card or an electronic 2157
2595-payment service shall be made at such times and under such conditions 2158
2596-as the secretary may prescribe in regulations adopted in accordance 2159
2597-with the provisions of chapter 54. 2160
2598-(e) Payment of a fee, cost or fine, and any applicable service fee, by 2161
2599-credit card, charge card, debit card or an electronic payment service 2162
2600-shall constitute full payment of such fee, cost, fine or service fee, 2163
2601-regardless of any discount applied by a credit card company. 2164
2602-Sec. 37. Subsection (g) of section 3-99a of the general statutes is 2165
2603-repealed and the following is substituted in lieu thereof (Effective July 1, 2166
2604-2022): 2167
2605-(g) The Secretary of the State may allow remittances to be in the form 2168
2606-of a credit card account number and an authorization to draw upon a 2169
2607-specified credit card account, at such time and under such conditions as 2170
2608-the Secretary may prescribe. Remittances in the form of an authorization 2171
2609-to draw upon a specified credit card account shall include an amount 2172
2610-for purposes of paying the discount rate associated with drawing upon 2173
2611-the credit card account, unless the remittances are drawn on an account 2174
2612-with a financial institution that agrees to add the number to the credit 2175
2613-card holder's billing, in which event the remittances drawn shall not 2176
2614-include an amount for purposes of paying the discount rate associated 2177
2615-with the drawing upon the credit card account. 2178
2616-Sec. 38. Section 14-11i of the general statutes is repealed and the 2179
2617-following is substituted in lieu thereof (Effective July 1, 2022): 2180
2618-The Commissioner of Motor Vehicles may allow the payment of any 2181
2619-fee specified in this chapter or chapter 247 by means of a credit card and 2182 Substitute Bill No. 6443
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2625-
2626-[may] shall charge each payor a service fee for any payment made by 2183
2627-means of a credit card. The fee shall not exceed any charge by the credit 2184
2628-card issuer or by its authorized agent, including any discount rate. 2185
2629-Payments by credit card shall be made under such conditions as the 2186
2630-commissioner may prescribe, except that the commissioner shall 2187
2631-determine the rate or amount of the service fee for any such credit card 2188
2632-in accordance with subsection (c) of section 1-1j, as amended by this act. 2189
2633-Such service fee may be waived by the commissioner for a category of 2190
2634-fee if such waiver has been approved by the Secretary of the Office of 2191
2635-Policy and Management pursuant to subsection (b) of section 1-1j, as 2192
2636-amended by this act. If any charge with respect to payment of a fee by 2193
2637-means of a credit card is not authorized by such issuer or its authorized 2194
2638-agent, the commissioner shall assess the payor the fee specified in 2195
2639-subsection (f) of section 14-50. 2196
2640-Sec. 39. Subsection (g) of section 19a-88 of the general statutes is 2197
2641-repealed and the following is substituted in lieu thereof (Effective July 1, 2198
2642-2022): 2199
2643-(g) (1) The Department of Public Health shall administer a secure on-2200
2644-line license renewal system for persons holding a license to practice 2201
2645-medicine or surgery under chapter 370, dentistry under chapter 379, 2202
2646-nursing under chapter 378 or nurse-midwifery under chapter 377. The 2203
2647-department shall require such persons to renew their licenses using the 2204
2648-on-line renewal system and to pay professional services fees on-line by 2205
2649-means of a credit card or electronic transfer of funds from a bank or 2206
2650-credit union account, except in extenuating circumstances, including, 2207
2651-but not limited to, circumstances in which a licensee does not have 2208
2652-access to a credit card and submits a notarized affidavit affirming that 2209
2653-fact, the department may allow the licensee to renew his or her license 2210
2654-using a paper form prescribed by the department and pay professional 2211
2655-service fees by check or money order. 2212
2656-(2) The department shall charge a service fee for each payment made 2213
2657-by means of a credit card. The Commissioner of Public Health shall 2214
2658-determine the rate or amount of the service fee for any such credit card 2215 Substitute Bill No. 6443
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2664-
2665-in accordance with subsection (c) of section 1-1j, as amended by this act. 2216
2666-Such service fee may be waived by the commissioner for a category of 2217
2667-fee if such waiver has been approved by the Secretary of the Office of 2218
2668-Policy and Management pursuant to subsection (b) of section 1-1j, as 2219
2669-amended by this act. 2220
2670-Sec. 40. Section 45a-113b of the general statutes is repealed and the 2221
2671-following is substituted in lieu thereof (Effective July 1, 2022): 2222
2672-Each [court of probate] Probate Court may allow the payment of any 2223
2673-fees charged by such court by means of a credit card, charge card or 2224
2674-debit card. [and may] Such court shall charge the person making such 2225
2675-payment a service fee for any such payment made by means of any such 2226
2676-card. The fee shall not exceed any charge by the card issuer, including 2227
2677-any discount rate. The Probate Court Administrator shall determine the 2228
2678-rate or amount of the service fee for any such card in accordance with 2229
2679-subsection (c) of section 1-1j, as amended by this act. 2230
2680-Sec. 41. Section 51-193b of the general statutes is repealed and the 2231
2681-following is substituted in lieu thereof (Effective July 1, 2022): 2232
2682-Payment of any fees, costs, fines or other charges to the Judicial 2233
2683-Branch may be made by means of a credit card [,] and the payor [may] 2234
2684-shall be charged a service fee for any such payment made by means of 2235
2685-a credit card. The service fee shall not exceed any charge by the credit 2236
2686-card issuer, including any discount rate. Payments by credit card shall 2237
2687-be made at such time and under such conditions as the Office of the 2238
2688-Chief Court Administrator may prescribe, except that the Chief Court 2239
2689-Administrator shall determine the rate or amount of the service fee for 2240
2690-any such card in accordance with subsection (c) of section 1-1j, as 2241
2691-amended by this act. 2242
2692-Sec. 42. (NEW) (Effective from passage and applicable to calendar months 2243
2693-commencing on or after January 1, 2023) (a) As used in this section: 2244
2694-(1) "Carrier" means any person that operates or causes to be operated 2245
2695-on any highway in this state any eligible motor vehicle. "Carrier" does 2246 Substitute Bill No. 6443
2696-
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2700-73 of 90
2701-
2702-not include the state, any political subdivision of the state, the United 2247
2703-States or the federal government; 2248
2704-(2) "Commissioner" means the Commissioner of Revenue Services; 2249
2705-(3) "Department" means the Department of Revenue Services; 2250
2706-(4) "Eligible motor vehicle" means a motor vehicle, as defined in 2251
2707-section 14-1 of the general statutes, that (A) has a gross weight of twenty-2252
2708-six thousand pounds or more, and (B) carries a classification between 2253
2709-Class 8 and Class 13, inclusive, under the Federal Highway 2254
2710-Administration vehicle classification system; 2255
2711-(5) "Gross weight" has the same meaning as provided in section 14-1 2256
2712-of the general statutes; and 2257
2713-(6) "Highway" has the same meaning as provided in section 14-1 of 2258
2714-the general statutes. 2259
2715-(b) (1) For each calendar month commencing on or after January 1, 2260
2716-2023, a tax is imposed on every carrier for the privilege of operating or 2261
2717-causing to be operated an eligible motor vehicle on any highway of the 2262
2718-state. Use of any such highway shall be measured by the number of 2263
2719-miles traveled within the state by each eligible motor vehicle operated 2264
2720-or caused to be operated by such carrier during each month. The amount 2265
2721-of tax due from each carrier shall be determined in accordance with the 2266
2722-provisions of subdivision (2) of this subsection. 2267
2723-(2) Each carrier shall calculate the number of miles traveled by each 2268
2724-eligible motor vehicle operated or caused to be operated by such carrier 2269
2725-within the state during each month. The miles traveled within the state 2270
2726-by each eligible motor vehicle shall be multiplied by the tax rate as 2271
2727-follows, such rate to be based on the gross weight of each such vehicle: 2272
2728-T5 Gross Weight in Pounds Rate in Dollars
2729-T6 26,000-28,000 0.0250 Substitute Bill No. 6443
2730-
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2734-74 of 90
2735-
2736-T7 28,001-30,000 0.0279
2737-T8 30,001-32,000 0.0308
2738-T9 32,001-34,000 0.0337
2739-T10 34,001-36,000 0.0365
2740-T11 36,001-38,000 0.0394
2741-T12 38,001-40,000 0.0423
2742-T13 40,001-42,000 0.0452
2743-T14 42,001-44,000 0.0481
2744-T15 44,001-46,000 0.0510
2745-T16 46,001-48,000 0.0538
2746-T17 48,001-50,000 0.0567
2747-T18 50,001-52,000 0.0596
2748-T19 52,001-54,000 0.0625
2749-T20 54,001-56,000 0.0654
2750-T21 56,001-58,000 0.0683
2751-T22 58,001-60,000 0.0712
2752-T23 60,001-62,000 0.0740
2753-T24 62,001-64,000 0.0769
2754-T25 64,001-66,000 0.0798
2755-T26 66,001-68,000 0.0827 Substitute Bill No. 6443
2756-
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2760-75 of 90
2761-
2762-T27 68,001-70,000 0.0856
2763-T28 70,001-72,000 0.0885
2764-T29 72,001-74,000 0.0913
2765-T30 74,001-76,000 0.0942
2766-T31 76,001-78,000 0.0971
2767-T32 78,001-80,000 0.1000
2768-T33 80,001 and over 0.1750
2769-
2770-(c) (1) Each carrier shall file with the commissioner, on or before the 2273
2771-last day of each month, a return for the calendar month immediately 2274
2772-preceding, in such form and containing such information as the 2275
2773-commissioner may prescribe. The return shall be accompanied by 2276
2774-payment of the amount of the tax shown to be due thereon. Each carrier 2277
2775-shall be required to file such return electronically with the department 2278
2776-and to make such payment by electronic funds transfer in the manner 2279
2777-provided by chapter 228g of the general statutes, irrespective of whether 2280
2778-the carrier would have otherwise been required to file such return 2281
2779-electronically or to make such payment by electronic funds transfer 2282
2780-under the provisions of said chapter. 2283
2781-(2) Notwithstanding the provisions of subsection (a) of section 13b-2284
2782-61 of the general statutes, the commissioner shall deposit into the Special 2285
2783-Transportation Fund established under section 13b-68 of the general 2286
2784-statutes the amounts received by the state from the tax imposed under 2287
2785-this section. 2288
2786-(d) (1) Each carrier desiring to use any highway of the state on or after 2289
2787-January 1, 2023, shall file an application for a permit with the 2290
2788-commissioner, in such form and containing such information as the 2291
2789-commissioner may prescribe. No carrier may lawfully operate or cause 2292
2790-to be operated an eligible motor vehicle in the state on or after January 2293 Substitute Bill No. 6443
2791-
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2795-76 of 90
2796-
2797-1, 2023, without obtaining a permit from the commissioner. 2294
2798-(2) Upon receipt of a fully completed application from a carrier, the 2295
2799-commissioner shall grant and issue a permit to such carrier. Such permit 2296
2800-shall be valid only for the carrier to which it is issued and the eligible 2297
2801-motor vehicles such carrier operates or causes to be operated on the 2298
2802-highways of the state and shall not be assignable. The carrier shall 2299
2803-maintain a copy of the permit within each eligible motor vehicle that 2300
2804-such carrier operates or causes to be operated in the state. 2301
2805-(e) (1) Whenever a carrier fails to comply with any provision of this 2302
2806-section, the commissioner shall order a hearing to be held, requiring 2303
2807-such carrier to show cause why such carrier's permit should not be 2304
2808-revoked or suspended. The commissioner shall provide at least ten days' 2305
2809-notice, in writing, to such carrier of the date, time and place of such 2306
2810-hearing and may serve such notice personally or by registered or 2307
2811-certified mail. If, after such hearing, the commissioner revokes or 2308
2812-suspends a permit, the commissioner shall not restore such permit to or 2309
2813-issue a new permit for such carrier unless the commissioner is satisfied 2310
2814-that the carrier will comply with the provisions of this section. 2311
2815-(2) Whenever a carrier files returns for four successive monthly 2312
2816-periods showing that none of the eligible motor vehicles operated or 2313
2817-caused to be operated by such carrier used any highway of the state, the 2314
2818-commissioner shall order a hearing to be held, requiring such carrier to 2315
2819-show cause why such carrier's permit should not be cancelled. The 2316
2820-commissioner shall provide at least thirty days' notice, in writing, to 2317
2821-such carrier of the date, time and place of such hearing and may serve 2318
2822-such notice personally or by registered or certified mail. If, after such 2319
2823-hearing, the commissioner cancels a permit, the commissioner shall not 2320
2824-issue a new permit for such carrier unless the commissioner is satisfied 2321
2825-that the carrier will make use of the highways of the state. 2322
2826-(f) Each person, other than a carrier, who is required, on behalf of 2323
2827-such carrier, to collect, truthfully account for and pay over a tax imposed 2324
2828-on such carrier under this section and who wilfully fails to collect, 2325 Substitute Bill No. 6443
2829-
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2833-77 of 90
2834-
2835-truthfully account for and pay over such tax or who wilfully attempts in 2326
2836-any manner to evade or defeat the tax or the payment thereof, shall, in 2327
2837-addition to other penalties provided by law, be liable for a penalty equal 2328
2838-to the total amount of the tax evaded, or not collected, or not accounted 2329
2839-for and paid over, including any penalty or interest attributable to such 2330
2840-wilful failure to collect or truthfully account for and pay over such tax 2331
2841-or such wilful attempt to evade or defeat such tax, provided such 2332
2842-penalty shall only be imposed against such person in the event that such 2333
2843-tax, penalty or interest cannot otherwise be collected from such carrier. 2334
2844-The amount of such penalty with respect to which a person may be 2335
2845-personally liable under this section shall be collected in accordance with 2336
2846-the provisions of subsection (n) of this section and any amount so 2337
2847-collected shall be allowed as a credit against the amount of such tax, 2338
2848-penalty or interest due and owing from the carrier. The dissolution of 2339
2849-the carrier shall not discharge any person in relation to any personal 2340
2850-liability under this section for wilful failure to collect or truthfully 2341
2851-account for and pay over such tax or for a wilful attempt to evade or 2342
2852-defeat such tax prior to dissolution, except as otherwise provided in this 2343
2853-section. For purposes of this subsection, "person" includes any 2344
2854-individual, corporation, limited liability company or partnership and 2345
2855-any officer or employee of any corporation, including a dissolved 2346
2856-corporation, and a member of or employee of any partnership or limited 2347
2857-liability company who, as such officer, employee or member, is under a 2348
2858-duty to file a tax return under this section on behalf of a carrier or to 2349
2859-collect or truthfully account for and pay over a tax imposed under this 2350
2860-section on behalf of such carrier. 2351
2861-(g) (1) The commissioner may examine the records of any carrier 2352
2862-subject to a tax imposed under the provisions of this section as the 2353
2863-commissioner deems necessary. If the commissioner determines that 2354
2864-there is a deficiency with respect to the payment of any such tax due 2355
2865-under the provisions of this section, the commissioner shall assess or 2356
2866-reassess the deficiency in tax, give notice of such deficiency assessment 2357
2867-or reassessment to the taxpayer and make demand upon the taxpayer 2358
2868-for payment. Such amount shall bear interest at the rate of one per cent 2359 Substitute Bill No. 6443
2869-
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2873-78 of 90
2874-
2875-per month or fraction thereof from the date when the original tax was 2360
2876-due and payable. When it appears that any part of the deficiency for 2361
2877-which a deficiency assessment is made is due to negligence or 2362
2878-intentional disregard of the provisions of this section or regulations 2363
2879-promulgated thereunder, there shall be imposed a penalty equal to ten 2364
2880-per cent of the amount of such deficiency assessment, or fifty dollars, 2365
2881-whichever is greater. When it appears that any part of the deficiency for 2366
2882-which a deficiency assessment is made is due to fraud or intent to evade 2367
2883-the provisions of this section or regulations promulgated thereunder, 2368
2884-there shall be imposed a penalty equal to twenty-five per cent of the 2369
2885-amount of such deficiency assessment. No taxpayer shall be subject to 2370
2886-more than one penalty under this subsection in relation to the same tax 2371
2887-period. Subject to the provisions of section 12-3a of the general statutes, 2372
2888-the commissioner may waive all or part of the penalties provided under 2373
2889-this section when it is proven to the commissioner's satisfaction that the 2374
2890-failure to pay any tax was due to reasonable cause and was not 2375
2891-intentional or due to neglect. Any decision rendered by any federal 2376
2892-court holding that a taxpayer has filed a fraudulent return with the 2377
2893-Director of Internal Revenue shall subject the taxpayer to the penalty 2378
2894-imposed by this section without the necessity of further proof thereof, 2379
2895-except when it can be shown that the return to the state so differed from 2380
2896-the return to the federal government as to afford a reasonable 2381
2897-presumption that the attempt to defraud did not extend to the return 2382
2898-filed with the state. Within thirty days of the mailing of such notice, the 2383
2899-taxpayer shall pay to the commissioner, in cash, or by check, draft or 2384
2900-money order drawn to the order of the Commissioner of Revenue 2385
2901-Services, any additional amount of tax, penalty and interest shown to be 2386
2902-due. 2387
2903-(2) Except in the case of a wilfully false or fraudulent return with 2388
2904-intent to evade the tax, no assessment of additional tax shall be made 2389
2905-after the expiration of more than three years from the date of the filing 2390
2906-of a return or from the original due date of a return, whichever is later. 2391
2907-If no return has been filed as provided under the provisions of this 2392
2908-section, the commissioner may make such return at any time thereafter, 2393 Substitute Bill No. 6443
2909-
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2913-79 of 90
2914-
2915-according to the best information obtainable and according to the form 2394
2916-prescribed. To the tax imposed upon the basis of such return, there shall 2395
2917-be added an amount equal to ten per cent of such tax, or fifty dollars, 2396
2918-whichever is greater. The tax shall bear interest at the rate of one per 2397
2919-cent per month or fraction thereof from the due date of such tax to the 2398
2920-date of payment. Where, before the expiration of the period prescribed 2399
2921-herein for the assessment of an additional tax, a taxpayer has consented 2400
2922-in writing that such period may be extended, the amount of such 2401
2923-additional tax due may be determined at any time within such extended 2402
2924-period. The period so extended may be further extended by subsequent 2403
2925-consents in writing before the expiration of the extended period. 2404
2926-(h) (1) Any carrier believing that it has overpaid any taxes due under 2405
2927-the provisions of this section may file a claim for refund in writing with 2406
2928-the commissioner within three years from the due date for which such 2407
2929-overpayment was made, stating the specific grounds upon which the 2408
2930-claim is founded. Failure to file a claim within the time prescribed in this 2409
2931-section constitutes a waiver of any demand against the state on account 2410
2932-of overpayment. The commissioner shall review such claim within a 2411
2933-reasonable time and, if the commissioner determines that a refund is 2412
2934-due, the commissioner shall credit the overpayment against any amount 2413
2935-then due and payable from the carrier under this section or any 2414
2936-provision of the general statutes and shall refund any balance 2415
2937-remaining. The commissioner shall notify the Comptroller of the 2416
2938-amount of such refund and the Comptroller shall draw an order on the 2417
2939-Treasurer in the amount thereof for payment to such carrier. If the 2418
2940-commissioner determines that such claim is not valid, either in whole or 2419
2941-in part, the commissioner shall mail notice of the proposed disallowance 2420
2942-to the claimant, which notice shall set forth briefly the commissioner's 2421
2943-findings of fact and the basis of disallowance in each case decided in 2422
2944-whole or in part adversely to the claimant. Sixty days after the date on 2423
2945-which it is mailed, a notice of proposed disallowance shall constitute a 2424
2946-final disallowance except only for such amounts as to which the 2425
2947-taxpayer filed, as provided in subdivision (2) of this subsection, a 2426
2948-written protest with the commissioner. 2427 Substitute Bill No. 6443
2949-
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2953-80 of 90
2954-
2955-(2) On or before the sixtieth day after the mailing of the proposed 2428
2956-disallowance, the claimant may file with the commissioner a written 2429
2957-protest against the proposed disallowance in which the claimant shall 2430
2958-set forth the grounds on which the protest is based. If a protest is filed, 2431
2959-the commissioner shall reconsider the proposed disallowance and, if the 2432
2960-claimant has so requested, may grant or deny the claimant or the 2433
2961-claimant's authorized representatives an oral hearing. 2434
2962-(3) The commissioner shall mail notice of the commissioner's 2435
2963-determination to the claimant, which notice shall set forth briefly the 2436
2964-commissioner's findings of fact and the basis of decision in each case 2437
2965-decided in whole or in part adversely to the claimant. 2438
2966-(4) The action of the commissioner on the claimant's protest shall be 2439
2967-final upon the expiration of thirty days from the date on which the 2440
2968-commissioner mails notice of the commissioner's action to the claimant 2441
2969-unless within such period the claimant seeks judicial review of the 2442
2970-commissioner's determination pursuant to subsection (l) of this section. 2443
2971-(i) (1) Any person required under this section or regulations adopted 2444
2972-thereunder to pay any tax, make a return, keep any record or supply 2445
2973-any information, who wilfully fails to pay such tax, make such return, 2446
2974-keep such records or supply such information, at the time required by 2447
2975-law, shall, in addition to any other penalty provided by law, be fined 2448
2976-not more than one thousand dollars or imprisoned not more than one 2449
2977-year, or both. Notwithstanding the provisions of section 54-193 of the 2450
2978-general statutes, no person shall be prosecuted for a violation of the 2451
2979-provisions of this subsection committed on or after January 1, 2023, 2452
2980-except within three years next after such violation has been committed. 2453
2981-As used in this subsection, "person" includes any officer or employee of 2454
2982-a corporation or a member or employee of a partnership under a duty 2455
2983-to pay such tax, make such return, keep such records or supply such 2456
2984-information. 2457
2985-(2) Any person who wilfully delivers or discloses to the commissioner 2458
2986-or the commissioner's authorized agent any list, return, account, 2459 Substitute Bill No. 6443
2987-
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2991-81 of 90
2992-
2993-statement or other document, known by such person to be fraudulent 2460
2994-or false in any material matter, shall, in addition to any other penalty 2461
2995-provided by law, be guilty of a class D felony. No person shall be 2462
2996-charged with an offense under both subdivision (1) of this subsection 2463
2997-and this subdivision in relation to the same tax period but such person 2464
2998-may be charged and prosecuted for both such offenses upon the same 2465
2999-information. 2466
3000-(j) (1) Each carrier shall keep such records, receipts, invoices and other 2467
3001-pertinent papers in such form as the commissioner requires. 2468
3002-(2) In addition to the requirements set forth under subdivision (1) of 2469
3003-this subsection, each carrier shall maintain, on a monthly basis, a list of 2470
3004-all the eligible motor vehicles that such carrier operates or causes to 2471
3005-operate on a highway in the state during such month. All such lists shall 2472
3006-be maintained by the carrier for not less than four years after the date of 2473
3007-each such month and shall be made available to the commissioner upon 2474
3008-request. 2475
3009-(3) The commissioner or the commissioner's authorized agent may 2476
3010-examine the records, receipts, invoices, other pertinent papers and 2477
3011-equipment of any person liable under the provisions of this section and 2478
3012-may investigate the character of the business of such person to verify 2479
3013-the accuracy of any return made or, if no return is made by such person, 2480
3014-to ascertain and determine the amount required to be paid. 2481
3015-(k) Any carrier that is aggrieved by the action of the commissioner or 2482
3016-an authorized agent of the commissioner in fixing the amount of any 2483
3017-tax, penalty or interest under this section may apply to the 2484
3018-commissioner, in writing, not later than sixty days after the notice of 2485
3019-such action is delivered or mailed to such carrier, for a hearing and a 2486
3020-correction of the amount of such tax, penalty or interest, setting forth the 2487
3021-reasons why such hearing should be granted and the amount by which 2488
3022-such tax, penalty or interest should be reduced. The commissioner shall 2489
3023-promptly consider each such application and may grant or deny the 2490
3024-hearing requested. If the hearing request is denied, the carrier shall be 2491 Substitute Bill No. 6443
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3029-82 of 90
3030-
3031-notified forthwith. If the hearing request is granted, the commissioner 2492
3032-shall notify the carrier of the date, time and place for such hearing. After 2493
3033-such hearing, the commissioner may make such order as appears just 2494
3034-and lawful to the commissioner and shall furnish a copy of such order 2495
3035-to the carrier. The commissioner may, by notice in writing, order a 2496
3036-hearing on the commissioner's own initiative and require a carrier or 2497
3037-any other individual who the commissioner believes to be in possession 2498
3038-of relevant information concerning such carrier to appear before the 2499
3039-commissioner or the commissioner's authorized agent with any 2500
3040-specified books of account, papers or other documents, for examination 2501
3041-under oath. 2502
3042-(l) Any carrier that is aggrieved because of any order, decision, 2503
3043-determination or disallowance the commissioner made under 2504
3044-subsection (h) or (k) of this section may, not later than thirty days after 2505
3045-service of notice of such order, decision, determination or disallowance, 2506
3046-take an appeal therefrom to the superior court for the judicial district of 2507
3047-New Britain, which appeal shall be accompanied by a citation to the 2508
3048-commissioner to appear before said court. Such citation shall be signed 2509
3049-by the same authority and such appeal shall be returnable at the same 2510
3050-time and served and returned in the same manner as is required in the 2511
3051-case of a summons in a civil action. The authority issuing the citation 2512
3052-shall take from the appellant a bond or recognizance to the state of 2513
3053-Connecticut, with surety, to prosecute the appeal to effect and to comply 2514
3054-with the orders and decrees of the court in the premises. Such appeals 2515
3055-shall be preferred cases, to be heard, unless cause appears to the 2516
3056-contrary, at the first session, by the court or by a committee appointed 2517
3057-by the court. Said court may grant such relief as may be equitable and, 2518
3058-if such tax has been paid prior to the granting of such relief, may order 2519
3059-the Treasurer to pay the amount of such relief. If the appeal has been 2520
3060-taken without probable cause, the court may tax double or triple costs, 2521
3061-as the case demands and, upon all such appeals that are denied, costs 2522
3062-may be taxed against such carrier at the discretion of the court but no 2523
3063-costs shall be taxed against the state. 2524 Substitute Bill No. 6443
3064-
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3068-83 of 90
3069-
3070-(m) The commissioner and any agent of the commissioner duly 2525
3071-authorized to conduct any inquiry, investigation or hearing pursuant to 2526
3072-this section shall have power to administer oaths and take testimony 2527
3073-under oath relative to the matter of inquiry or investigation. At any 2528
3074-hearing ordered by the commissioner, the commissioner or the 2529
3075-commissioner's agent authorized to conduct such hearing and having 2530
3076-authority by law to issue such process may subpoena witnesses and 2531
3077-require the production of books, papers and documents pertinent to 2532
3078-such inquiry or investigation. No witness under subpoena authorized 2533
3079-to be issued under the provisions of this section shall be excused from 2534
3080-testifying or from producing books, papers or documentary evidence on 2535
3081-the ground that such testimony or the production of such books, papers 2536
3082-or documentary evidence would tend to incriminate such witness, but 2537
3083-such books, papers or documentary evidence so produced shall not be 2538
3084-used in any criminal proceeding against such witness. If any person 2539
3085-disobeys such process or, having appeared in obedience thereto, refuses 2540
3086-to answer any pertinent question put to such person by the 2541
3087-commissioner or the commissioner's authorized agent, or to produce 2542
3088-any books, papers or other documentary evidence pursuant thereto, the 2543
3089-commissioner or such agent may apply to the superior court of the 2544
3090-judicial district wherein the carrier has a business address or wherein 2545
3091-the carrier's business has been conducted, or to any judge of such court 2546
3092-if the same is not in session, setting forth such disobedience to process 2547
3093-or refusal to answer, and such court or such judge shall cite such person 2548
3094-to appear before such court or such judge to answer such question or to 2549
3095-produce such books, papers or other documentary evidence and, upon 2550
3096-such person's refusal so to do, shall commit such person to a community 2551
3097-correctional center until such person testifies, but not for a period longer 2552
3098-than sixty days. Notwithstanding the serving of the term of such 2553
3099-commitment by any person, the commissioner may proceed in all 2554
3100-respects with such inquiry and examination as if the witness had not 2555
3101-previously been called upon to testify. Officers who serve subpoenas 2556
3102-issued by the commissioner or under the commissioner's authority and 2557
3103-witnesses attending hearings conducted by the commissioner pursuant 2558
3104-to this section shall receive fees and compensation at the same rates as 2559 Substitute Bill No. 6443
3105-
3106-
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3109-84 of 90
3110-
3111-officers and witnesses in the courts of this state, to be paid on vouchers 2560
3112-of the commissioner on order of the Comptroller from the proper 2561
3113-appropriation for the administration of this section. 2562
3114-(n) The amount of any tax, penalty or interest due and unpaid under 2563
3115-the provisions of this section may be collected under the provisions of 2564
3116-section 12-35 of the general statutes. The warrant provided under said 2565
3117-section shall be signed by the commissioner or the commissioner's 2566
3118-authorized agent. The amount of any such tax, penalty and interest shall 2567
3119-be a lien on the real estate of the carrier from the last day of the month 2568
3120-next preceding the due date of such civil penalty until such civil penalty 2569
3121-is paid. The commissioner may record such lien in the records of any 2570
3122-town in which the real estate of such carrier is situated but no such lien 2571
3123-shall be enforceable against a bona fide purchaser or qualified 2572
3124-encumbrancer of such real estate. When any tax with respect to which a 2573
3125-lien has been recorded under the provisions of this subsection has been 2574
3126-satisfied, the commissioner shall, upon request of any interested party, 2575
3127-issue a certificate discharging such lien, which certificate shall be 2576
3128-recorded in the same office in which the lien was recorded. Any action 2577
3129-for the foreclosure of such lien shall be brought by the Attorney General 2578
3130-in the name of the state in the superior court for the judicial district in 2579
3131-which the real estate subject to such lien is situated, or, if such real estate 2580
3132-is located in two or more judicial districts, in the superior court for any 2581
3133-one such judicial district, and the court may limit the time for 2582
3134-redemption or order the sale of such real estate or pass such other or 2583
3135-further decree as it judges equitable. 2584
3136-(o) No tax credit or credits shall be allowable against the tax imposed 2585
3137-under this section. 2586
3138-(p) Any person who knowingly violates any provision of this section 2587
3139-for which no other penalty is provided shall be fined one thousand 2588
3140-dollars. 2589
3141-(q) The commissioner may adopt regulations, in accordance with the 2590
3142-provisions of chapter 54 of the general statutes, to implement the 2591 Substitute Bill No. 6443
3143-
3144-
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3147-85 of 90
3148-
3149-provisions of this section. 2592
3150-(r) At the close of each fiscal year, commencing with the fiscal year 2593
3151-ending June 30, 2023, in which the tax imposed under the provisions of 2594
3152-this section is received by the commissioner, the Comptroller is 2595
3153-authorized to record as revenue for such fiscal year the amount of such 2596
3154-tax that is received by the commissioner not later than five business days 2597
3155-from the July thirty-first immediately following the end of such fiscal 2598
3156-year. 2599
3157-Sec. 43. (Effective from passage) (a) As used in this section: 2600
3158-(1) "Person" has the same meaning as provided in section 12-1 of the 2601
3159-general statutes; 2602
3160-(2) "Affected taxable period" means any taxable period ending on or 2603
3161-before December 30, 2020; 2604
3162-(3) "Affected person" means a person owing any tax for an affected 2605
3163-taxable period; 2606
3164-(4) "Tax" means any tax imposed by any law of this state and required 2607
3165-to be collected by the department, other than the tax imposed under 2608
3166-chapter 222 of the general statutes on any licensee, as defined in 2609
3167-subdivision (1) of subsection (c) of section 12-486 of the general statutes; 2610
3168-(5) "Commissioner" means the Commissioner of Revenue Services; 2611
3169-and 2612
3170-(6) "Department" means the Department of Revenue Services. 2613
3171-(b) (1) The commissioner shall establish a tax amnesty program for 2614
3172-persons owing any tax for any affected taxable period. The tax amnesty 2615
3173-program shall be conducted during the period from November 1, 2021, 2616
3174-to January 31, 2022, inclusive. 2617
3175-(2) An amnesty application shall be prepared by the commissioner 2618
3176-that shall provide for specification by the affected person of the tax and 2619 Substitute Bill No. 6443
3177-
3178-
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3181-86 of 90
3182-
3183-the affected taxable period for which amnesty is being sought under the 2620
3184-tax amnesty program. The commissioner may require that such amnesty 2621
3185-applications be filed electronically and that the amounts associated with 2622
3186-such applications be paid electronically. 2623
3187-(3) Any affected person who files an amnesty application shall, 2624
3188-subject to review of such application by the commissioner, be eligible 2625
3189-for a reduction of interest due on the amount of tax owed by such person 2626
3190-for an affected taxable period. Upon compliance with all requirements 2627
3191-of the tax amnesty program under this section, an affected person whose 2628
3192-application is granted by the commissioner shall be entitled to a 2629
3193-seventy-five per cent reduction in interest that would otherwise be 2630
3194-owed on the tax such person owes for the affected taxable period. 2631
3195-(4) The tax amnesty program shall provide that, upon the filing of an 2632
3196-amnesty application by an affected person and payment by such person 2633
3197-of the tax and interest determined to be due by the commissioner from 2634
3198-such person for an affected taxable period, the commissioner shall not 2635
3199-seek to collect any civil penalties that may be applicable and shall not 2636
3200-seek criminal prosecution for any affected person for an affected taxable 2637
3201-period for which amnesty has been granted. 2638
3202-(5) An amnesty application, if filed by an affected person and if 2639
3203-granted by the commissioner, shall constitute an express and absolute 2640
3204-relinquishment by the affected person of all of the affected person's 2641
3205-administrative and judicial rights of appeal that have not run or 2642
3206-otherwise expired as of the date payment is made for an affected taxable 2643
3207-period, and no payment made by an affected person pursuant to this 2644
3208-section for an affected taxable period shall be refunded or credited to 2645
3209-such person. The commissioner shall not consider any request to 2646
3210-exercise the authority granted to the commissioner under section 12-39s 2647
3211-of the general statutes in connection with any amnesty application 2648
3212-granted by the commissioner under this section. 2649
3213-(6) Each affected person who files an amnesty application during the 2650
3214-period the tax amnesty program under this section is conducted shall 2651 Substitute Bill No. 6443
3215-
3216-
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3219-87 of 90
3220-
3221-pay all amounts due to the state under such program with such 2652
3222-application. Any person who fails to pay all such amounts due shall be 2653
3223-ineligible for amnesty under such program. 2654
3224-(7) No amnesty application shall be accepted for an affected taxable 2655
3225-period in which the liability for such period has already been paid, 2656
3226-unless such application is filed to report an additional amount of tax for 2657
3227-such period. In no event shall an amnesty application result in a refund 2658
3228-or credit of any amount of tax, penalty or interest previously paid. 2659
3229-(c) Amnesty shall not be granted pursuant to subsection (b) of this 2660
3230-section to any affected person who (1) is a party to any criminal 2661
3231-investigation or to any criminal litigation that is pending on July 1, 2021, 2662
3232-in any court of the United States or this state, (2) is a party to a closing 2663
3233-agreement with the commissioner, (3) has made an offer of compromise 2664
3234-that has been accepted by the commissioner, or (4) is a party to a 2665
3235-managed audit agreement. 2666
3236-(d) The provisions of subsection (d) of section 12-35i of the general 2667
3237-statutes shall not apply to an affected taxable period that ends on or 2668
3238-before November 30, 2012, for which no return has been previously 2669
3239-filed, if such period is the subject of or included in any amnesty 2670
3240-application granted by the commissioner under this section, provided 2671
3241-the affected person pays all amounts due to the state in connection with 2672
3242-such application in accordance with the provisions of subdivision (6) of 2673
3243-subsection (b) of this section. 2674
3244-(e) Any person who wilfully delivers or discloses to the commissioner 2675
3245-or the commissioner's authorized agent any application, list return, 2676
3246-account, statement or other document, known by such person to be 2677
3247-fraudulent or false in any material matter, shall be ineligible for the tax 2678
3248-amnesty program under this section and may, in addition to any other 2679
3249-penalty provided by law, be fined not more than five thousand dollars 2680
3250-or imprisoned not more than five years nor less than one year, or both. 2681
3251-(f) Notwithstanding any provision of the general statutes, the 2682 Substitute Bill No. 6443
3252-
3253-
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3256-88 of 90
3257-
3258-commissioner may do all things necessary to provide for the timely 2683
3259-implementation of this section. 2684
3260-Sec. 44. (Effective from passage) The Comptroller shall transfer from the 2685
3261-General Fund to the Tourism Fund established under section 10-395b of 2686
3262-the general statutes: (1) For the fiscal year ending June 30, 2021, nine 2687
3263-million eight hundred thousand dollars; and (2) for the fiscal year 2688
3264-ending June 30, 2022, three million one hundred thousand dollars. 2689
3265-Sec. 45. (Effective from passage) For the fiscal years ending June 30, 2690
3266-2022, and June 30, 2023, the amount deemed appropriated pursuant to 2691
3267-sections 3-20i and 3-115b of the general statutes in each of said fiscal 2692
3268-years shall be one dollar. 2693
3269-Sec. 46. (Effective from passage) Not later than June 30, 2021, the 2694
3270-Comptroller shall designate two hundred thirty-five million dollars of 2695
3271-the resources of the General Fund for the fiscal year ending June 30, 2696
3272-2021, to be accounted for as revenue of the General Fund as follows: One 2697
3273-hundred seventeen million five hundred thousand dollars for the fiscal 2698
3274-year ending June 30, 2022, and one hundred seventeen million five 2699
3275-hundred thousand dollars for the fiscal year ending June 30, 2023. 2700
3276-Sec. 47. (Effective from passage) The Comptroller shall transfer from the 2701
3277-Budget Reserve Fund: (1) On July 1, 2021, eight hundred ninety million 2702
3278-dollars, to be credited to the resources of the General Fund and used as 2703
3279-revenue for the fiscal year ending June 30, 2022; and (2) on July 1, 2022, 2704
3280-nine hundred ninety-five million dollars, to be credited to the resources 2705
3281-of the General Fund and used as revenue for the fiscal year ending June 2706
3282-30, 2023. The amount of a transfer set forth in this section shall be 2707
3283-reduced by the amount of any federal aid received by the state that is 2708
3284-used to reduce state budgetary requirements for such fiscal year. 2709
27+Section 1. Section 1-1j of the general statutes is repealed and the 1
28+following is substituted in lieu thereof (Effective July 1, 2022): 2
29+(a) Each state agency, as defined in section 4-166, shall accept 3
30+payment in cash or by check, draft or money order for any license issued 4
31+by such agency pursuant to the provisions of the general statutes. 5
32+(b) Except as [otherwise] provided by any other provision of the 6
33+general statutes, the Secretary of the Office of Policy and Management 7
34+may authorize any state agency [(1)] to accept payment of any fee, cost 8
35+or fine payable to such agency by means of a credit card, charge card or 9
36+debit card [,] or an electronic payment service, [and (2) to charge a 10
37+service fee for any such payment made by credit card, charge card or 11
38+debit card or an electronic payment service] provided each state agency 12
39+that accepts payment by means of a credit card, charge card or debit 13 Governor's Bill No. 6443
40+
41+
42+
43+LCO No. 3267 2 of 79
44+
45+card shall charge the payor using such card a service fee, except that 14
46+such service fee may be waived by such state agency for a category of 15
47+fee, cost or fine, if such waiver has been approved by said secretary. 16
48+[Such] 17
49+(c) (1) Any service fee imposed pursuant to subsection (b) of this 18
50+section shall [be (A) related to] (A) be for the purpose of defraying the 19
51+cost of service, (B) [uniform for all credit cards, charge cards and debit 20
52+cards accepted] not exceed any charge by the credit card, charge card or 21
53+debit card issuer or processor, including any discount rate, and (C) be 22
54+applied only when allowed by the operating rules and regulations of the 23
55+credit card, charge card or debit card issuer or processor involved or 24
56+when authorized in writing by such issuer or processor. 25
57+(2) Each state agency that charges a service fee pursuant to this 26
58+section or any other provision of the general statutes shall disclose such 27
59+service fee to a payor prior to the imposition of such service fee. Such 28
60+disclosure shall be made in accordance with any requirements for 29
61+disclosure set forth by the card issuer or processor. 30
62+(d) Payments by credit card, charge card, debit card or an electronic 31
63+payment service shall be made at such times and under such conditions 32
64+as the secretary may prescribe in regulations adopted in accordance 33
65+with the provisions of chapter 54. 34
66+(e) Payment of a fee, cost or fine, and any applicable service fee, by 35
67+credit card, charge card, debit card or an electronic payment service 36
68+shall constitute full payment of such fee, cost, fine or service fee, 37
69+regardless of any discount applied by a credit card company. 38
70+Sec. 2. Subsection (g) of section 3-99a of the general statutes is 39
71+repealed and the following is substituted in lieu thereof (Effective July 1, 40
72+2022): 41
73+(g) The Secretary of the State may allow remittances to be in the form 42
74+of a credit card account number and an authorization to draw upon a 43
75+specified credit card account, at such time and under such conditions as 44 Governor's Bill No. 6443
76+
77+
78+
79+LCO No. 3267 3 of 79
80+
81+the Secretary may prescribe. Remittances in the form of an authorization 45
82+to draw upon a specified credit card account shall include an amount 46
83+for purposes of paying the discount rate associated with drawing upon 47
84+the credit card account, unless the remittances are drawn on an account 48
85+with a financial institution that agrees to add the number to the credit 49
86+card holder's billing, in which event the remittances drawn shall not 50
87+include an amount for purposes of paying the discount rate associated 51
88+with the drawing upon the credit card account. 52
89+Sec. 3. Section 14-11i of the general statutes is repealed and the 53
90+following is substituted in lieu thereof (Effective July 1, 2022): 54
91+The Commissioner of Motor Vehicles may allow the payment of any 55
92+fee specified in this chapter or chapter 247 by means of a credit card and 56
93+[may] shall charge each payor a service fee for any payment made by 57
94+means of a credit card. The fee shall not exceed any charge by the credit 58
95+card issuer or by its authorized agent, including any discount rate. 59
96+Payments by credit card shall be made under such conditions as the 60
97+commissioner may prescribe, except that the commissioner shall 61
98+determine the rate or amount of the service fee for any such credit card 62
99+in accordance with subsection (c) of section 1-1j, as amended by this act. 63
100+Such service fee may be waived by the commissioner for a category of 64
101+fee if such waiver has been approved by the Secretary of the Office of 65
102+Policy and Management pursuant to subsection (b) of section 1-1j, as 66
103+amended by this act. If any charge with respect to payment of a fee by 67
104+means of a credit card is not authorized by such issuer or its authorized 68
105+agent, the commissioner shall assess the payor the fee specified in 69
106+subsection (f) of section 14-50. 70
107+Sec. 4. Subsection (g) of section 19a-88 of the general statutes is 71
108+repealed and the following is substituted in lieu thereof (Effective July 1, 72
109+2022): 73
110+(g) (1) The Department of Public Health shall administer a secure on-74
111+line license renewal system for persons holding a license to practice 75
112+medicine or surgery under chapter 370, dentistry under chapter 379, 76 Governor's Bill No. 6443
113+
114+
115+
116+LCO No. 3267 4 of 79
117+
118+nursing under chapter 378 or nurse-midwifery under chapter 377. The 77
119+department shall require such persons to renew their licenses using the 78
120+on-line renewal system and to pay professional services fees on-line by 79
121+means of a credit card or electronic transfer of funds from a bank or 80
122+credit union account, except in extenuating circumstances, including, 81
123+but not limited to, circumstances in which a licensee does not have 82
124+access to a credit card and submits a notarized affidavit affirming that 83
125+fact, the department may allow the licensee to renew his or her license 84
126+using a paper form prescribed by the department and pay professional 85
127+service fees by check or money order. 86
128+(2) The department shall charge a service fee for each payment made 87
129+by means of a credit card. The Commissioner of Public Health shall 88
130+determine the rate or amount of the service fee for any such credit card 89
131+in accordance with subsection (c) of section 1-1j, as amended by this act. 90
132+Such service fee may be waived by the commissioner for a category of 91
133+fee if such waiver has been approved by the Secretary of the Office of 92
134+Policy and Management pursuant to subsection (b) of section 1-1j, as 93
135+amended by this act. 94
136+Sec. 5. Section 45a-113b of the general statutes is repealed and the 95
137+following is substituted in lieu thereof (Effective July 1, 2022): 96
138+Each [court of probate] Probate Court may allow the payment of any 97
139+fees charged by such court by means of a credit card, charge card or 98
140+debit card. [and may] Such court shall charge the person making such 99
141+payment a service fee for any such payment made by means of any such 100
142+card. The fee shall not exceed any charge by the card issuer, including 101
143+any discount rate. The Probate Court Administrator shall determine the 102
144+rate or amount of the service fee for any such card in accordance with 103
145+subsection (c) of section 1-1j, as amended by this act. 104
146+Sec. 6. Section 51-193b of the general statutes is repealed and the 105
147+following is substituted in lieu thereof (Effective July 1, 2022): 106
148+Payment of any fees, costs, fines or other charges to the Judicial 107
149+Branch may be made by means of a credit card [,] and the payor [may] 108 Governor's Bill No. 6443
150+
151+
152+
153+LCO No. 3267 5 of 79
154+
155+shall be charged a service fee for any such payment made by means of 109
156+a credit card. The service fee shall not exceed any charge by the credit 110
157+card issuer, including any discount rate. Payments by credit card shall 111
158+be made at such time and under such conditions as the Office of the 112
159+Chief Court Administrator may prescribe, except that the Chief Court 113
160+Administrator shall determine the rate or amount of the service fee for 114
161+any such card in accordance with subsection (c) of section 1-1j, as 115
162+amended by this act. 116
163+Sec. 7. (NEW) (Effective from passage) (a) As used in this section, 117
164+"lottery draw game" means any game in which one or more numbers, 118
165+letters or symbols are randomly drawn at predetermined times, not to 119
166+exceed four times per day, from a range of numbers, letters or symbols, 120
167+and prizes are paid to players possessing winning plays, as set forth in 121
168+each game's official game rules. "Lottery draw game" does not include 122
169+keno, as defined in section 12-801 of the general statutes. 123
170+(b) The Connecticut Lottery Corporation shall establish a program to 124
171+sell lottery tickets for lottery draw games through the corporation's 125
172+Internet web site, online service or mobile application. The program 126
173+shall, at a minimum: 127
174+(1) Verify that a person who establishes an online lottery account to 128
175+purchase a lottery ticket through such program is eighteen years of age 129
176+or older and is located in the state; 130
177+(2) Restrict the sale of lottery tickets to transactions initiated and 131
178+received within the state; 132
179+(3) Allow a person to establish an online lottery account and use a 133
180+credit card, debit card or verified bank account to purchase lottery 134
181+tickets through such account; 135
182+(4) Limit a person with an online lottery account to using only one 136
183+debit card or credit card; 137
184+(5) Provide that any money in an online lottery account belongs solely 138 Governor's Bill No. 6443
185+
186+
187+
188+LCO No. 3267 6 of 79
189+
190+to the owner of the account and may be withdrawn by the owner; 139
191+(6) Establish a voluntary self-exclusion process to allow a person to 140
192+exclude himself or herself from establishing an online lottery account or 141
193+purchasing a lottery ticket through such program; 142
194+(7) At least every five years, be the subject of an independent review 143
195+for responsible play as assessed by industry standards; 144
196+(8) Provide responsible gambling and problem gambling 145
197+information; 146
198+(9) Limit the amount of money a person may (A) deposit into an 147
199+online lottery account, and (B) spend per day through such program; 148
200+and 149
201+(10) Display the results of lottery draw game drawings on the 150
202+corporation's Internet web site, online service or mobile application but 151
203+the lottery draw game drawings may not take place on the corporation's 152
204+Internet web site, online service or mobile application. 153
205+(c) (1) The Connecticut Lottery Corporation may not establish a 154
206+program pursuant to this section until the Commissioner of Consumer 155
207+Protection adopts regulations in accordance with the provisions of 156
208+chapter 54 of the general statutes to implement the provisions of this 157
209+section and assure the integrity of such program. 158
210+(2) The corporation shall submit to the commissioner official game 159
211+rules for each lottery draw game the corporation seeks to offer through 160
212+the program. The corporation may not offer a lottery draw game 161
213+through the program until the commissioner approves, in writing, the 162
214+official rules for such game. 163
215+(d) After establishing the program pursuant to this section, the 164
216+corporation: (1) May implement initiatives to promote the purchase of 165
217+lottery tickets through lottery sales agents; (2) may implement initiatives 166
218+to promote the purchase of both online lottery draw games and the 167
219+purchase of lottery tickets through lottery sales agents; and (3) shall 168 Governor's Bill No. 6443
220+
221+
222+
223+LCO No. 3267 7 of 79
224+
225+conduct a public awareness campaign to educate the public regarding 169
226+responsible gambling and to inform the public of the programs available 170
227+for the prevention, treatment and rehabilitation of compulsive gamblers 171
228+in the state. 172
229+Sec. 8. Subdivision (4) of subsection (b) of section 12-806 of the general 173
230+statutes is repealed and the following is substituted in lieu thereof 174
231+(Effective from passage): 175
232+(4) (A) To introduce new lottery games, modify existing lottery 176
233+games, utilize existing and new technologies, determine distribution 177
234+channels for the sale of lottery tickets, introduce keno pursuant to signed 178
235+agreements with the Mashantucket Pequot Tribe and the Mohegan 179
236+Tribe of Indians of Connecticut, in accordance with section 12-806c, and, 180
237+to the extent specifically authorized by regulations adopted by the 181
238+Department of Consumer Protection pursuant to chapter 54, introduce 182
239+instant ticket vending machines, kiosks and automated wagering 183
240+systems or machines, with all such rights being subject to regulatory 184
241+oversight by the Department of Consumer Protection; [, except that the 185
242+corporation shall not offer any interactive on-line lottery games, 186
243+including on-line video lottery games for promotional purposes;] and 187
244+(B) (1) To sell lottery draw games through the corporation's Internet 188
245+web site, online service or mobile application in accordance with section 189
246+7 of this act and to advertise lottery games on the corporation's Internet 190
247+web site, online service or mobile application; and (2) to offer interactive 191
248+lottery games for promotional purposes through the corporation's 192
249+Internet web site, online service or mobile application, provided (A) 193
250+there is no cost to play such interactive lottery games for promotional 194
251+purposes, (B) no prizes or rewards of any monetary value are awarded 195
252+for playing such interactive lottery games for promotional purposes, 196
253+and (C) no lottery ticket purchase is required to play such interactive 197
254+lottery games for promotional purposes. The corporation shall not offer 198
255+any interactive lottery game, including for promotional purposes, 199
256+except as expressly permitted pursuant to this subdivision; 200 Governor's Bill No. 6443
257+
258+
259+
260+LCO No. 3267 8 of 79
261+
262+Sec. 9. Subdivision (13) of subsection (b) of section 12-806 of the 201
263+general statutes is repealed and the following is substituted in lieu 202
264+thereof (Effective from passage): 203
265+(13) To pay the Office of Policy and Management to reimburse the 204
266+Department of Consumer Protection for the reasonable and necessary 205
267+costs arising from the department's regulatory oversight of the 206
268+corporation, in accordance with the assessment made pursuant to 207
269+section 12-806b, including costs arising directly or indirectly from the 208
270+licensing of lottery agents, performance of state police background 209
271+investigations, and the implementation of subsection (b) of section 12-210
272+562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a and 12-800 to 211
273+12-818, inclusive, as amended by this act, and section 7 of this act; 212
274+Sec. 10. Section 12-810 of the general statutes is repealed and the 213
275+following is substituted in lieu thereof (Effective from passage): 214
276+(a) The Freedom of Information Act, as defined in section 1-200, shall 215
277+apply to all actions, meetings and records of the corporation, except (1) 216
278+where otherwise limited by subsection (c) of this section as to new 217
279+lottery games and serial numbers of unclaimed lottery tickets, [and] (2) 218
280+with respect to financial, credit and proprietary information submitted 219
281+by any person to the corporation in connection with any proposal to 220
282+provide goods, services or professional advice to the corporation as 221
283+provided in section 12-815, and (3) where otherwise limited by 222
284+subsection (d) of this section as to information submitted by any person 223
285+to the corporation regarding such person's participation in the 224
286+corporation's voluntary self-exclusion process established pursuant to 225
287+subdivision (6) of subsection (b) of section 7 of this act. 226
288+(b) The records of proceedings as provided in subsection (a) of section 227
289+12-805 shall be subject to disclosure pursuant to the provisions of 228
290+subsection (a) of section 1-210. 229
291+(c) Any new lottery game and the procedures for such game, until the 230
292+game is publicly announced by the corporation, and any serial number 231
293+of an unclaimed lottery ticket shall not be deemed public records, as 232 Governor's Bill No. 6443
294+
295+
296+
297+LCO No. 3267 9 of 79
298+
299+defined in section 1-200, and shall not be available to the public under 233
300+the provisions of section 1-210. The president shall submit a fiscal note 234
301+prepared by the corporation with respect to the procedures for a new 235
302+lottery game to the joint standing committees of the General Assembly 236
303+having cognizance of matters relating to finance, revenue, bonding and 237
304+public safety after approval of such game by the board. 238
305+(d) The name and any personally identifying information of a person 239
306+who is participating or has participated in the corporation's voluntary 240
307+self-exclusion process shall not be deemed public records, as defined in 241
308+section 1-200, and shall not be available to the public under the 242
309+provisions of section 1-210. The president may disclose the name and 243
310+any records of such person if such person claims a winning lottery ticket 244
311+from the use of the online lottery program established pursuant to 245
312+section 7 of this act. 246
313+Sec. 11. Section 12-818 of the general statutes is repealed and the 247
314+following is substituted in lieu thereof (Effective from passage): 248
315+[For each of the fiscal years ending June 30, 2010, and June 30, 2011, 249
316+the Connecticut Lottery Corporation shall transfer one million nine 250
317+hundred thousand dollars of the revenue received from the sale of 251
318+lottery tickets to the chronic gamblers treatment rehabilitation account 252
319+created pursuant to section 17a-713. For the fiscal years ending June 30, 253
320+2012, to June 30, 2013, inclusive, the Connecticut Lottery Corporation 254
321+shall transfer one million nine hundred thousand dollars of the revenue 255
322+received from the sale of lottery tickets to the chronic gamblers 256
323+treatment rehabilitation account created pursuant to section 17a-713.] 257
324+For the fiscal [year] years ending June 30, 2014, [and each fiscal year 258
325+thereafter, the Connecticut Lottery Corporation] to June 30, 2021, 259
326+inclusive, the corporation shall transfer two million three hundred 260
327+thousand dollars of the revenue received from the sale of lottery tickets 261
328+to the chronic gamblers treatment rehabilitation account created 262
329+pursuant to section 17a-713. For the fiscal year ending June 30, 2022, and 263
330+each fiscal year thereafter, the corporation shall transfer two million four 264
331+hundred thousand dollars of the revenue received from the sale of 265 Governor's Bill No. 6443
332+
333+
334+
335+LCO No. 3267 10 of 79
336+
337+lottery tickets to the chronic gamblers treatment rehabilitation account. 266
338+Sec. 12. Section 52-553 of the general statutes is repealed and the 267
339+following is substituted in lieu thereof (Effective from passage): 268
340+All wagers, and all contracts and securities of which the whole or any 269
341+part of the consideration is money or other valuable thing won, laid or 270
342+bet, at any game, horse race, sport or pastime, and all contracts to repay 271
343+any money knowingly lent at the time and place of such game, race, 272
344+sport or pastime, to any person so gaming, betting or wagering, or to 273
345+repay any money lent to any person who, at such time and place, so 274
346+pays, bets or wagers, shall be void, provided nothing in this section shall 275
347+(1) affect the validity of any negotiable instrument held by any person 276
348+who acquired the same for value and in good faith without notice of 277
349+illegality in the consideration, (2) apply to the sale of a raffle ticket 278
350+pursuant to section 7-172, (3) apply to the participation in the program 279
351+established by the Connecticut Lottery Corporation pursuant to section 280
352+7 of this act, or [(3)] (4) apply to any wager or contract otherwise 281
353+authorized by law. 282
354+Sec. 13. Section 52-554 of the general statutes is repealed and the 283
355+following is substituted in lieu thereof (Effective from passage): 284
356+Any person who, by playing at any game, or betting on the sides or 285
357+hands of such as play at any game, excluding any game permitted under 286
358+chapter 226 or any activity not prohibited under the provisions of 287
359+sections 53-278a to 53-278g, inclusive, loses the sum or value of one 288
360+dollar in the whole and pays or delivers the same or any part thereof, 289
361+may, within three months next following, recover from the winner the 290
362+money or the value of the goods so lost and paid or delivered, with costs 291
363+of suit in a civil action, without setting forth the special matter in his 292
364+complaint. If the defendant refuses to testify, if called upon in such 293
365+action, relative to the discovery of the property so won, he shall be 294
366+defaulted; but no evidence so given by him shall be offered against him 295
367+in any criminal prosecution. Nothing in this section shall preclude any 296
368+person from using a credit card to participate in the program established 297 Governor's Bill No. 6443
369+
370+
371+
372+LCO No. 3267 11 of 79
373+
374+by the Connecticut Lottery Corporation pursuant to section 7 of this act. 298
375+Sec. 14. Section 12-263p of the general statutes is repealed and the 299
376+following is substituted in lieu thereof (Effective July 1, 2021, and 300
377+applicable to calendar quarters commencing on or after July 1, 2021): 301
378+As used in sections 12-263p to 12-263x, inclusive, as amended by this 302
379+act, and section 15 of this act, unless the context otherwise requires: 303
380+(1) "Commissioner" means the Commissioner of Revenue Services; 304
381+(2) "Department" means the Department of Revenue Services; 305
382+(3) "Taxpayer" means any health care provider subject to any tax or 306
383+fee under section 12-263q, [or] 12-263r or section 15 of this act; 307
384+(4) "Health care provider" means an individual or entity that receives 308
385+any payment or payments for health care items or services provided; 309
386+(5) "Gross receipts" means the amount received, whether in cash or in 310
387+kind, from patients, third-party payers and others for taxable health care 311
388+items or services provided by the taxpayer in the state, including 312
389+retroactive adjustments under reimbursement agreements with third-313
390+party payers, without any deduction for any expenses of any kind; 314
391+(6) "Net revenue" means gross receipts less payer discounts, charity 315
392+care and bad debts, to the extent the taxpayer previously paid tax under 316
393+section 12-263q or section 15 of this act, on the amount of such bad debts; 317
394+(7) "Payer discounts" means the difference between a health care 318
395+provider's published charges and the payments received by the health 319
396+care provider from one or more health care payers for a rate or method 320
397+of payment that is different than or discounted from such published 321
398+charges. "Payer discounts" does not include charity care or bad debts; 322
399+(8) "Charity care" means free or discounted health care services 323
400+rendered by a health care provider to an individual who cannot afford 324
401+to pay for such services, including, but not limited to, health care 325 Governor's Bill No. 6443
402+
403+
404+
405+LCO No. 3267 12 of 79
406+
407+services provided to an uninsured patient who is not expected to pay all 326
408+or part of a health care provider's bill based on income guidelines and 327
409+other financial criteria set forth in the general statutes or in a health care 328
410+provider's charity care policies on file at the office of such provider. 329
411+"Charity care" does not include bad debts or payer discounts; 330
412+(9) "Received" means "received" or "accrued", construed according to 331
413+the method of accounting customarily employed by the taxpayer; 332
414+(10) "Hospital" means any health care facility, as defined in section 333
415+19a-630, that (A) is licensed by the Department of Public Health as a 334
416+short-term general hospital; (B) is maintained primarily for the care and 335
417+treatment of patients with disorders other than mental diseases; (C) 336
418+meets the requirements for participation in Medicare as a hospital; and 337
419+(D) has in effect a utilization review plan, applicable to all Medicaid 338
420+patients, that meets the requirements of 42 CFR 482.30, as amended from 339
421+time to time, unless a waiver has been granted by the Secretary of the 340
422+United States Department of Health and Human Services; 341
423+(11) "Inpatient hospital services" means, in accordance with federal 342
424+law, all services that are (A) ordinarily furnished in a hospital for the 343
425+care and treatment of inpatients; (B) furnished under the direction of a 344
426+physician or dentist; and (C) furnished in a hospital. "Inpatient hospital 345
427+services" does not include skilled nursing facility services and 346
428+intermediate care facility services furnished by a hospital with swing 347
429+bed approval; 348
430+(12) "Inpatient" means a patient who has been admitted to a medical 349
431+institution as an inpatient on the recommendation of a physician or 350
432+dentist and who (A) receives room, board and professional services in 351
433+the institution for a twenty-four-hour period or longer, or (B) is expected 352
434+by the institution to receive room, board and professional services in the 353
435+institution for a twenty-four-hour period or longer, even if the patient 354
436+does not actually stay in the institution for a twenty-four-hour period or 355
437+longer; 356
438+(13) "Outpatient hospital services" means, in accordance with federal 357 Governor's Bill No. 6443
439+
440+
441+
442+LCO No. 3267 13 of 79
443+
444+law, preventive, diagnostic, therapeutic, rehabilitative or palliative 358
445+services that are (A) furnished to an outpatient; (B) furnished by or 359
446+under the direction of a physician or dentist; and (C) furnished by a 360
447+hospital; 361
448+(14) "Outpatient" means a patient of an organized medical facility or 362
449+a distinct part of such facility, who is expected by the facility to receive, 363
450+and who does receive, professional services for less than a twenty-four-364
451+hour period regardless of the hour of admission, whether or not a bed 365
452+is used or the patient remains in the facility past midnight; 366
453+(15) "Nursing home" means any licensed chronic and convalescent 367
454+nursing home or a rest home with nursing supervision; 368
455+(16) "Intermediate care facility for individuals with intellectual 369
456+disabilities" or "intermediate care facility" means a residential facility for 370
457+persons with intellectual disability that is certified to meet the 371
458+requirements of 42 CFR 442, Subpart C, as amended from time to time, 372
459+and, in the case of a private facility, licensed pursuant to section 17a-227; 373
460+(17) "Medicare day" means a day of nursing home care service 374
461+provided to an individual who is eligible for payment, in full or with a 375
462+coinsurance requirement, under the federal Medicare program, 376
463+including fee for service and managed care coverage; 377
464+(18) "Nursing home resident day" means a day of nursing home care 378
465+service provided to an individual and includes the day a resident is 379
466+admitted and any day for which the nursing home is eligible for 380
467+payment for reserving a resident's bed due to hospitalization or 381
468+temporary leave and for the date of death. For purposes of this 382
469+subdivision, a day of nursing home care service shall be the period of 383
470+time between the census-taking hour in a nursing home on two 384
471+successive calendar days. "Nursing home resident day" does not include 385
472+a Medicare day or the day a resident is discharged; 386
473+(19) "Intermediate care facility resident day" means a day of 387
474+intermediate care facility residential care provided to an individual and 388 Governor's Bill No. 6443
475+
476+
477+
478+LCO No. 3267 14 of 79
479+
480+includes the day a resident is admitted and any day for which the 389
481+intermediate care facility is eligible for payment for reserving a 390
482+resident's bed due to hospitalization or temporary leave and for the date 391
483+of death. For purposes of this subdivision, a day of intermediate care 392
484+facility residential care shall be the period of time between the census-393
485+taking hour in a facility on two successive calendar days. "Intermediate 394
486+care facility resident day" does not include the day a resident is 395
487+discharged; 396
488+(20) "Ambulatory surgical center" means any distinct entity that (A) 397
489+operates exclusively for the purpose of providing surgical services to 398
490+patients not requiring hospitalization and in which the expected 399
491+duration of services would not exceed twenty-four hours following an 400
492+admission, (B) has an agreement with the Centers for Medicare and 401
493+Medicaid Services to participate in Medicare as an ambulatory surgical 402
494+center, and (C) meets the general and specific conditions for 403
495+participation in Medicare set forth in 42 CFR Part 416, Subparts B and 404
496+C, as amended from time to time; 405
497+(21) "Ambulatory surgical center services" means, in accordance with 406
498+42 CFR 433.56(a)(9), as amended from time to time, services for which 407
499+payment is received from any payer that, if such services were furnished 408
500+under the federal Medicare program, (A) would be furnished in 409
501+connection with covered surgical procedures performed in an 410
502+ambulatory surgical center as provided in 42 CFR 416.164(a), as 411
503+amended from time to time, and (B) for which payment would be 412
504+included in the ambulatory surgical center payment established under 413
505+42 CFR 416.171, as amended from time to time, for the covered surgical 414
506+procedure. "Ambulatory surgical center services" includes facility 415
507+services only and does not include surgical procedures, physicians' 416
508+services, anesthetists' services, radiology services, diagnostic services or 417
509+ambulance services, if such procedures or services would be reimbursed 418
510+separately from facility services under 42 CFR 416.164(a), as amended 419
511+from time to time; 420
512+[(20)] (22) "Medicaid" means the program operated by the 421 Governor's Bill No. 6443
513+
514+
515+
516+LCO No. 3267 15 of 79
517+
518+Department of Social Services pursuant to section 17b-260 and 422
519+authorized by Title XIX of the Social Security Act, as amended from time 423
520+to time; and 424
521+[(21)] (23) "Medicare" means the program operated by the Centers for 425
522+Medicare and Medicaid Services in accordance with Title XVIII of the 426
523+Social Security Act, as amended from time to time. 427
524+Sec. 15. (NEW) (Effective July 1, 2021, and applicable to calendar quarters 428
525+commencing on or after July 1, 2021) (a) For each calendar quarter 429
526+commencing on or after July 1, 2021, each ambulatory surgical center 430
527+shall pay a tax on the total net revenue received by each ambulatory 431
528+surgical center for the provision of ambulatory surgical center services. 432
529+The tax imposed by this section shall be six per cent, except that revenue 433
530+from Medicaid payments and Medicare payments received by the 434
531+ambulatory surgical center for the provision of ambulatory surgical 435
532+center services shall be exempt from the tax. 436
533+(b) (1) Net revenue derived from providing a health care item or 437
534+service to a patient shall be taxed only one time under this section and 438
535+section 12-263q of the general statutes. 439
536+(2) Net revenue from each hospital-owned ambulatory surgical 440
537+center shall be considered net revenue of the hospital and shall be 441
538+reported as net revenue from inpatient hospital services or outpatient 442
539+hospital services to the extent such net revenue is derived from services 443
540+that fall within the scope of inpatient hospital services or outpatient 444
541+hospital services. As used in this subsection, "hospital-owned 445
542+ambulatory surgical center" includes only those ambulatory surgical 446
543+centers that are considered departments of the owner-hospital and that 447
544+have provider-based status in accordance with 42 CFR 413.65, as 448
545+amended from time to time. If an ambulatory surgical center is owned 449
546+by a hospital but is not considered to be a department of the hospital or 450
547+does not have provider-based status in accordance with 42 CFR 413.65, 451
548+as amended from time to time, the net revenue of such ambulatory 452
549+surgical center shall not be considered net revenue of the owner-hospital 453 Governor's Bill No. 6443
550+
551+
552+
553+LCO No. 3267 16 of 79
554+
555+and such ambulatory surgical center shall be required to file and pay tax 454
556+for any net revenue received from the provision of ambulatory surgical 455
557+center services. 456
558+Sec. 16. Section 12-263i of the general statutes is repealed and the 457
559+following is substituted in lieu thereof (Effective July 1, 2021): 458
560+(a) As used in this section: 459
561+(1) "Ambulatory surgical center" means an entity included within the 460
562+definition of said term that is set forth in 42 CFR 416.2 and that is 461
563+licensed by the Department of Public Health as an outpatient surgical 462
564+facility, and any other ambulatory surgical center that is Medicare 463
565+certified; 464
566+(2) "Commissioner" means the Commissioner of Revenue Services; 465
567+and 466
568+(3) "Department" means the Department of Revenue Services. 467
569+(b) (1) For each calendar quarter commencing on or after October 1, 468
570+2015, but prior to July 1, 2021, there is hereby imposed a tax on each 469
571+ambulatory surgical center in this state to be paid each calendar quarter. 470
572+The tax imposed by this section shall be at the rate of six per cent of the 471
573+gross receipts of each ambulatory surgical center, except that: 472
574+(A) Prior to July 1, 2019, such tax shall not be imposed on any amount 473
575+of such gross receipts that constitutes either (i) the first million dollars 474
576+of gross receipts of the ambulatory surgical center in the applicable fiscal 475
577+year, or (ii) net revenue of a hospital that is subject to the tax imposed 476
578+under section 12-263q; and 477
579+(B) On and after July 1, 2019, but prior to July 1, 2021, such tax shall 478
580+not be imposed on any amount of such gross receipts that constitutes 479
581+any of the following: (i) The first million dollars of gross receipts of the 480
582+ambulatory surgical center in the applicable fiscal year, excluding 481
583+Medicaid and Medicare payments, (ii) net revenue of a hospital that is 482
584+subject to the tax imposed under section 12-263q, (iii) Medicaid 483 Governor's Bill No. 6443
585+
586+
587+
588+LCO No. 3267 17 of 79
589+
590+payments received by the ambulatory surgical center, and (iv) Medicare 484
591+payments received by the ambulatory surgical center. 485
592+(2) Nothing in this section shall prohibit an ambulatory surgical 486
593+center from seeking remuneration for the tax imposed by this section. 487
594+(3) Each ambulatory surgical center shall, on or before January 31, 488
595+2016, and thereafter on or before the last day of January, April, July and 489
596+October of each year until and including July 31, 2021, render to the 490
597+commissioner a return, on forms prescribed or furnished by the 491
598+commissioner, reporting the name and location of such ambulatory 492
599+surgical center, the entire amount of gross receipts generated by such 493
600+ambulatory surgical center during the calendar quarter ending on the 494
601+last day of the preceding month and such other information as the 495
602+commissioner deems necessary for the proper administration of this 496
603+section. The tax imposed under this section shall be due and payable on 497
604+the due date of such return. Each ambulatory surgical center shall be 498
605+required to file such return electronically with the department and to 499
606+make payment of such tax by electronic funds transfer in the manner 500
607+provided by chapter 228g, regardless of whether such ambulatory 501
608+surgical center would have otherwise been required to file such return 502
609+electronically or to make such tax payment by electronic funds transfer 503
610+under the provisions of chapter 228g. 504
611+(c) Whenever the tax imposed under this section is not paid when 505
612+due, a penalty of ten per cent of the amount due and unpaid or fifty 506
613+dollars, whichever is greater, shall be imposed and interest at the rate of 507
614+one per cent per month or fraction thereof shall accrue on such tax from 508
615+the due date of such tax until the date of payment. 509
616+(d) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 510
617+12-555a shall apply to the provisions of this section in the same manner 511
618+and with the same force and effect as if the language of said sections had 512
619+been incorporated in full into this section and had expressly referred to 513
620+the tax imposed under this section, except to the extent that any 514
621+provision is inconsistent with a provision in this section. 515 Governor's Bill No. 6443
622+
623+
624+
625+LCO No. 3267 18 of 79
626+
627+(e) For the fiscal [year] years ending June 30, 2016, [and each fiscal 516
628+year thereafter] to June 30, 2021, inclusive, the Comptroller is authorized 517
629+to record as revenue for each fiscal year the amount of tax imposed 518
630+under the provisions of this section prior to the end of each fiscal year 519
631+and which tax is received by the Commissioner of Revenue Services not 520
632+later than five business days after the last day of July immediately 521
633+following the end of each fiscal year. 522
634+Sec. 17. Section 12-263s of the general statutes is repealed and the 523
635+following is substituted in lieu thereof (Effective July 1, 2021, and 524
636+applicable to calendar quarters commencing on or after July 1, 2021): 525
637+(a) No tax credit or credits shall be allowable against any tax or fee 526
638+imposed under section 12-263q, [or] 12-263r or section 15 of this act. 527
639+Notwithstanding any other provision of the general statutes, any health 528
640+care provider that has been assigned tax credits under section 32-9t for 529
641+application against the taxes imposed under chapter 211a may further 530
642+assign such tax credits to another taxpayer or taxpayers one time, 531
643+provided such other taxpayer or taxpayers may claim such credit only 532
644+with respect to a taxable year for which the assigning health care 533
645+provider would have been eligible to claim such credit and such other 534
646+taxpayer or taxpayers may not further assign such credit. The assigning 535
647+health care provider shall file with the commissioner information 536
648+requested by the commissioner regarding such assignments, including 537
649+but not limited to, the current holders of credits as of the end of the 538
650+preceding calendar year. 539
651+(b) (1) Each taxpayer doing business in this state shall, on or before 540
652+the last day of January, April, July and October of each year, render to 541
653+the commissioner a quarterly return, on forms prescribed or furnished 542
654+by the commissioner and signed by one of the taxpayer's principal 543
655+officers, stating specifically the name and location of such taxpayer, the 544
656+amount of its net patient revenue or resident days during the calendar 545
657+quarter ending on the last day of the preceding month and such other 546
658+information as the commissioner deems necessary for the proper 547
659+administration of this section and the state's Medicaid program. Except 548 Governor's Bill No. 6443
660+
661+
662+
663+LCO No. 3267 19 of 79
664+
665+as provided in subdivision (2) of this subsection, the taxes and fees 549
666+imposed under section 12-263q, [or] 12-263r or section 15 of this act shall 550
667+be due and payable on the due date of such return. Each taxpayer shall 551
668+be required to file such return electronically with the department and to 552
669+make such payment by electronic funds transfer in the manner provided 553
670+by chapter 228g, irrespective of whether the taxpayer would have 554
671+otherwise been required to file such return electronically or to make 555
672+such payment by electronic funds transfer under the provisions of said 556
673+chapter. 557
674+(2) (A) A taxpayer may file, on or before the due date of a payment of 558
675+tax or fee imposed under section 12-263q, [or] 12-263r or section 15 of 559
676+this act, a request for a reasonable extension of time for such payment 560
677+for reasons of undue hardship. Undue hardship shall be demonstrated 561
678+by a showing that such taxpayer is at substantial risk of defaulting on a 562
679+bond covenant or similar obligation if such taxpayer were to make 563
680+payment on the due date of the amount for which the extension is 564
681+requested. Such request shall be filed on forms prescribed by the 565
682+commissioner and shall include complete information of such 566
683+taxpayer's inability, due to undue hardship, to make payment of the tax 567
684+or fee on or before the due date of such payment. The commissioner 568
685+shall not grant any extension for a general statement of hardship by the 569
686+taxpayer or for the convenience of the taxpayer. 570
687+(B) The commissioner may grant an extension if the commissioner 571
688+determines an undue hardship exists. Such extension shall not exceed 572
689+three months from the original due date of the payment, except that the 573
690+commissioner may grant an additional extension not exceeding three 574
691+months from the initial extended due date of the payment (i) upon the 575
692+filing of a subsequent request by the taxpayer on or before the extended 576
693+due date of the payment, on forms prescribed by the commissioner, and 577
694+(ii) upon a showing of extraordinary circumstances, as determined by 578
695+the commissioner. 579
696+(3) If the commissioner grants an extension pursuant to subdivision 580
697+(2) of this subsection, no penalty shall be imposed and no interest shall 581 Governor's Bill No. 6443
698+
699+
700+
701+LCO No. 3267 20 of 79
702+
703+accrue during the period of time for which an extension is granted if the 582
704+taxpayer pays the tax or fee due on or before the extended due date of 583
705+the payment. If the taxpayer does not pay such tax or fee by the extended 584
706+due date, a penalty shall be imposed in accordance with subsection (c) 585
707+of this section and interest shall begin to accrue at a rate of one per cent 586
708+per month for each month or fraction thereof from the extended due 587
709+date of such tax or fee until the date of payment. 588
710+(c) (1) Except as provided in subdivision (2) of subsection (b) of this 589
711+section, if any taxpayer fails to pay the amount of tax or fee reported to 590
712+be due on such taxpayer's return within the time specified under the 591
713+provisions of this section, there shall be imposed a penalty equal to ten 592
714+per cent of such amount due and unpaid, or fifty dollars, whichever is 593
715+greater. The tax or fee shall bear interest at the rate of one per cent per 594
716+month or fraction thereof, from the due date of such tax or fee until the 595
717+date of payment. 596
718+(2) If any taxpayer has not made its return within one month of the 597
719+due date of such return, the commissioner may make such return at any 598
720+time thereafter, according to the best information obtainable and 599
721+according to the form prescribed. There shall be added to the tax or fee 600
722+imposed upon the basis of such return an amount equal to ten per cent 601
723+of such tax or fee, or fifty dollars, whichever is greater. The tax or fee 602
724+shall bear interest at the rate of one per cent per month or fraction 603
725+thereof, from the due date of such tax or fee until the date of payment. 604
726+(3) Subject to the provisions of section 12-3a, the commissioner may 605
727+waive all or part of the penalties provided under this subsection when 606
728+it is proven to the commissioner's satisfaction that the failure to pay any 607
729+tax or fee on time was due to reasonable cause and was not intentional 608
730+or due to neglect. 609
731+(4) The commissioner shall notify the Commissioner of Social 610
732+Services of any amount delinquent under this section and, upon receipt 611
733+of such notice, the Commissioner of Social Services shall deduct and 612
734+withhold such amount from amounts otherwise payable by the 613 Governor's Bill No. 6443
735+
736+
737+
738+LCO No. 3267 21 of 79
739+
740+Department of Social Services to the delinquent taxpayer. 614
741+(d) (1) Any person required under sections 12-263q to 12-263v, 615
742+inclusive, as amended by this act, or section 15 of this act to pay any tax 616
743+or fee, make a return, keep any records or supply any information, who 617
744+wilfully fails, at the time required by law, to pay such tax or fee, make 618
745+such return, keep such records or supply such information, shall, in 619
746+addition to any other penalty provided by law, be fined not more than 620
747+one thousand dollars or imprisoned not more than one year, or both. As 621
748+used in this subsection, "person" includes any officer or employee of a 622
749+taxpayer under a duty to pay such tax or fee, make such return, keep 623
750+such records or supply such information. Notwithstanding the 624
751+provisions of section 54-193, no person shall be prosecuted for a 625
752+violation of the provisions of this subsection committed on or after July 626
753+1, 1997, except within three years next after such violation has been 627
754+committed. 628
755+(2) Any person who wilfully delivers or discloses to the commissioner 629
756+or the commissioner's authorized agent any list, return, account, 630
757+statement or other document, known by such person to be fraudulent 631
758+or false in any material matter, shall, in addition to any other penalty 632
759+provided by law, be guilty of a class D felony. No person shall be 633
760+charged with an offense under both this subdivision and subdivision (1) 634
761+of this subsection in relation to the same tax period but such person may 635
762+be charged and prosecuted for both such offenses upon the same 636
763+information. 637
764+Sec. 18. Section 12-263t of the general statutes is repealed and the 638
765+following is substituted in lieu thereof (Effective July 1, 2021, and 639
766+applicable to calendar quarters commencing on or after July 1, 2021): 640
767+(a) (1) The commissioner may examine the records of any taxpayer 641
768+subject to a tax or fee imposed under section 12-263q, [or] 12-263r or 642
769+section 15 of this act, as the commissioner deems necessary. If the 643
770+commissioner determines from such examination that there is a 644
771+deficiency with respect to the payment of any such tax or fee due under 645 Governor's Bill No. 6443
772+
773+
774+
775+LCO No. 3267 22 of 79
776+
777+section 12-263q, [or] 12-263r or section 15 of this act, the commissioner 646
778+shall assess the deficiency in tax or fee, give notice of such deficiency 647
779+assessment to the taxpayer and make demand for payment. Such 648
780+amount shall bear interest at the rate of one per cent per month or 649
781+fraction thereof from the date when the original tax or fee was due and 650
782+payable. 651
783+(A) When it appears that any part of the deficiency for which a 652
784+deficiency assessment is made is due to negligence or intentional 653
785+disregard of the provisions of this section or regulations adopted 654
786+thereunder, there shall be imposed a penalty equal to ten per cent of the 655
787+amount of such deficiency assessment, or fifty dollars, whichever is 656
788+greater. 657
789+(B) When it appears that any part of the deficiency for which a 658
790+deficiency assessment is made is due to fraud or intent to evade the 659
791+provisions of this section or regulations adopted thereunder, there shall 660
792+be imposed a penalty equal to twenty-five per cent of the amount of such 661
793+deficiency assessment. No taxpayer shall be subject to more than one 662
794+penalty under this subdivision in relation to the same tax period. Not 663
795+later than thirty days after the mailing of such notice, the taxpayer shall 664
796+pay to the commissioner, in cash or by check, draft or money order 665
797+drawn to the order of the Commissioner of Revenue Services, any 666
798+additional amount of tax, penalty and interest shown to be due. 667
799+(2) Except in the case of a wilfully false or fraudulent return with 668
800+intent to evade the tax or fee, no assessment of additional tax or fee shall 669
801+be made after the expiration of more than three years from the date of 670
802+the filing of a return or from the original due date of a return, whichever 671
803+is later. Where, before the expiration of the period prescribed under this 672
804+subsection for the assessment of an additional tax or fee, a taxpayer has 673
805+consented, in writing, that such period may be extended, the amount of 674
806+such additional tax due may be determined at any time within such 675
807+extended period. The period so extended may be further extended by 676
808+subsequent consents, in writing, before the expiration of the extended 677
809+period. 678 Governor's Bill No. 6443
810+
811+
812+
813+LCO No. 3267 23 of 79
814+
815+(b) (1) The commissioner may enter into an agreement with the 679
816+Commissioner of Social Services delegating to the Commissioner of 680
817+Social Services the authority to examine the records and returns of any 681
818+taxpayer subject to any tax or fee imposed under section 12-263q, [or] 682
819+12-263r or section 15 of this act and to determine whether such tax has 683
820+been underpaid or overpaid. If such authority is so delegated, 684
821+examinations of such records and returns by the Commissioner of Social 685
822+Services and determinations by the Commissioner of Social Services that 686
823+such tax or fee has been underpaid or overpaid shall have the same 687
824+effect as similar examinations or determinations made by the 688
825+commissioner. 689
826+(2) The commissioner may enter into an agreement with the 690
827+Commissioner of Social Services in order to facilitate the exchange of 691
828+returns or return information necessary for the Commissioner of Social 692
829+Services to perform his or her responsibilities under this section and to 693
830+ensure compliance with the state's Medicaid program. 694
831+(3) The Commissioner of Social Services may engage an independent 695
832+auditor to assist in the performance of said commissioner's duties and 696
833+responsibilities under this subsection. Any reports generated by such 697
834+independent auditor shall be provided simultaneously to the 698
835+department and the Department of Social Services. 699
836+(c) (1) The commissioner may require all persons subject to a tax or 700
837+fee imposed under section 12-263q, [or] 12-263r or section 15 of this act 701
838+to keep such records as the commissioner may prescribe and may 702
839+require the production of books, papers, documents and other data, to 703
840+provide or secure information pertinent to the determination of the 704
841+taxes or fees imposed under section 12-263q, [or] 12-263r or section 15 of 705
842+this act and the enforcement and collection thereof. 706
843+(2) The commissioner or any person authorized by the commissioner 707
844+may examine the books, papers, records and equipment of any person 708
845+liable under the provisions of this section and may investigate the 709
846+character of the business of such person to verify the accuracy of any 710 Governor's Bill No. 6443
847+
848+
849+
850+LCO No. 3267 24 of 79
851+
852+return made or, if no return is made by the person, to ascertain and 711
853+determine the amount required to be paid. 712
854+(d) The commissioner may adopt regulations, in accordance with the 713
855+provisions of chapter 54, to implement the provisions of sections 12-714
856+263q to 12-263x, inclusive, as amended by this act. 715
857+Sec. 19. Section 12-263u of the general statutes is repealed and the 716
858+following is substituted in lieu thereof (Effective July 1, 2021, and 717
859+applicable to calendar quarters commencing on or after July 1, 2021): 718
860+(a) Any taxpayer subject to any tax or fee under section 12-263q, [or] 719
861+12-263r or section 15 of this act, believing that it has overpaid any tax or 720
862+fee due under said sections, may file a claim for refund, in writing, with 721
863+the commissioner not later than three years after the due date for which 722
864+such overpayment was made, stating the specific grounds upon which 723
865+the claim is founded. Failure to file a claim within the time prescribed in 724
866+this subsection shall constitute a waiver of any demand against the state 725
867+on account of overpayment. Within a reasonable time, as determined by 726
868+the commissioner, following receipt of such claim for refund, the 727
869+commissioner shall determine whether such claim is valid and, if so 728
870+determined, the commissioner shall notify the Comptroller of the 729
871+amount of such refund and the Comptroller shall draw an order on the 730
872+Treasurer in the amount thereof for payment to the taxpayer. If the 731
873+commissioner determines that such claim is not valid, either in whole or 732
874+in part, the commissioner shall mail notice of the proposed disallowance 733
875+in whole or in part of the claim to the taxpayer, which notice shall set 734
876+forth briefly the commissioner's findings of fact and the basis of 735
877+disallowance in each case decided in whole or in part adversely to the 736
878+taxpayer. Sixty days after the date on which it is mailed, a notice of 737
879+proposed disallowance shall constitute a final disallowance except only 738
880+for such amounts as to which the taxpayer has filed, as provided in 739
881+subsection (b) of this section, a written protest with the commissioner. 740
882+(b) On or before the sixtieth day after the mailing of the proposed 741
883+disallowance, the taxpayer may file with the commissioner a written 742 Governor's Bill No. 6443
884+
885+
886+
887+LCO No. 3267 25 of 79
888+
889+protest against the proposed disallowance in which the taxpayer sets 743
890+forth the grounds on which the protest is based. If a protest is filed, the 744
891+commissioner shall reconsider the proposed disallowance and, if the 745
892+taxpayer has so requested, may grant or deny the taxpayer or its 746
893+authorized representatives a hearing. 747
894+(c) The commissioner shall mail notice of the commissioner's 748
895+determination to the taxpayer, which notice shall set forth briefly the 749
896+commissioner's findings of fact and the basis of decision in each case 750
897+decided in whole or in part adversely to the taxpayer. 751
898+(d) The action of the commissioner on the taxpayer's protest shall be 752
899+final upon the expiration of one month from the date on which the 753
900+commissioner mails notice of the commissioner's determination to the 754
901+taxpayer, unless within such period the taxpayer seeks judicial review 755
902+of the commissioner's determination. 756
903+Sec. 20. Section 12-263v of the general statutes is repealed and the 757
904+following is substituted in lieu thereof (Effective July 1, 2021): 758
905+(a) Any taxpayer subject to any tax or fee under section 12-263q, [or] 759
906+12-263r or section 15 of this act that is aggrieved by the action of the 760
907+commissioner, the Commissioner of Social Services or an authorized 761
908+agent of said commissioners in fixing the amount of any tax, penalty, 762
909+interest or fee under sections 12-263q to 12-263t, inclusive, as amended 763
910+by this act, or section 15 of this act may apply to the commissioner, in 764
911+writing, not later than sixty days after the notice of such action is 765
912+delivered or mailed to such taxpayer, for a hearing and a correction of 766
913+the amount of such tax, penalty, interest or fee, setting forth the reasons 767
914+why such hearing should be granted and the amount by which such tax, 768
915+penalty, interest or fee should be reduced. The commissioner shall 769
916+promptly consider each such application and may grant or deny the 770
917+hearing requested. If the hearing request is denied, the taxpayer shall be 771
918+notified immediately. If the hearing request is granted, the 772
919+commissioner shall notify the applicant of the date, time and place for 773
920+such hearing. After such hearing, the commissioner may make such 774 Governor's Bill No. 6443
921+
922+
923+
924+LCO No. 3267 26 of 79
925+
926+order as appears just and lawful to the commissioner and shall furnish 775
927+a copy of such order to the taxpayer. The commissioner may, by notice 776
928+in writing, order a hearing on the commissioner's own initiative and 777
929+require a taxpayer or any other individual who the commissioner 778
930+believes to be in possession of relevant information concerning such 779
931+taxpayer to appear before the commissioner or the commissioner's 780
932+authorized agent with any specified books of account, papers or other 781
933+documents, for examination under oath. 782
934+(b) Any taxpayer subject to any tax or fee under section 12-263q, [or] 783
935+12-263r or section 15 of this act that is aggrieved because of any order, 784
936+decision, determination or disallowance of the commissioner made 785
937+under sections 12-263q to 12-263u, inclusive, as amended by this act, or 786
938+section 15 of this act or subsection (a) of this section may, not later than 787
939+thirty days after service of notice of such order, decision, determination 788
940+or disallowance, take an appeal therefrom to the superior court for the 789
941+judicial district of New Britain, which appeal shall be accompanied by a 790
942+citation to the commissioner to appear before said court. Such citation 791
943+shall be signed by the same authority and such appeal shall be 792
944+returnable at the same time and served and returned in the same 793
945+manner as is required in case of a summons in a civil action. The 794
946+authority issuing the citation shall take from the appellant a bond or 795
947+recognizance to the state of Connecticut, with surety, to prosecute the 796
948+appeal to effect and to comply with the orders and decrees of the court 797
949+in the premises. Such appeals shall be preferred cases, to be heard, 798
950+unless cause appears to the contrary, at the first session, by the court or 799
951+by a committee appointed by the court. Said court may grant such relief 800
952+as may be equitable and, if such tax or charge has been paid prior to the 801
953+granting of such relief, may order the Treasurer to pay the amount of 802
954+such relief, with interest at the rate of two-thirds of one per cent per 803
955+month or fraction thereof, to such taxpayer. If the appeal has been taken 804
956+without probable cause, the court may tax double or triple costs, as the 805
957+case demands and, upon all such appeals that are denied, costs may be 806
958+taxed against such taxpayer at the discretion of the court but no costs 807
959+shall be taxed against the state. 808 Governor's Bill No. 6443
960+
961+
962+
963+LCO No. 3267 27 of 79
964+
965+Sec. 21. Section 12-263x of the general statutes is repealed and the 809
966+following is substituted in lieu thereof (Effective July 1, 2021, and 810
967+applicable to calendar quarters commencing on or after July 1, 2021): 811
968+The amount of any tax, penalty, interest or fee, due and unpaid under 812
969+the provisions of sections 12-263q to 12-263v, inclusive, as amended by 813
970+this act, or section 15 of this act may be collected under the provisions 814
971+of section 12-35. The warrant provided under section 12-35 shall be 815
972+signed by the commissioner or the commissioner's authorized agent. 816
973+The amount of any such tax, penalty, interest or fee shall be a lien on the 817
974+real estate of the taxpayer from the last day of the month next preceding 818
975+the due date of such tax until such tax is paid. The commissioner may 819
976+record such lien in the records of any town in which the real estate of 820
977+such taxpayer is situated but no such lien shall be enforceable against a 821
978+bona fide purchaser or qualified encumbrancer of such real estate. When 822
979+any tax or fee with respect to which a lien has been recorded under the 823
980+provisions of this subsection has been satisfied, the commissioner shall, 824
981+upon request of any interested party, issue a certificate discharging such 825
982+lien, which certificate shall be recorded in the same office in which the 826
983+lien was recorded. Any action for the foreclosure of such lien shall be 827
984+brought by the Attorney General in the name of the state in the superior 828
985+court for the judicial district in which the property subject to such lien is 829
986+situated, or, if such property is located in two or more judicial districts, 830
987+in the superior court for any one such judicial district, and the court may 831
988+limit the time for redemption or order the sale of such property or make 832
989+such other or further decree as it judges equitable. For purposes of 833
990+section 12-39g, a fee under this section shall be treated as a tax. 834
991+Sec. 22. Section 3-114s of the general statutes is repealed and the 835
992+following is substituted in lieu thereof (Effective July 1, 2021): 836
993+At the close of each fiscal year, [commencing with the fiscal year 837
994+ending June 30, 2018,] the Comptroller is authorized to record as 838
995+revenue for each such fiscal year the amount of tax and fee imposed 839
996+under sections 12-263q to 12-263x, inclusive, as amended by this act, and 840
997+section 15 of this act, that is received by the Commissioner of Revenue 841 Governor's Bill No. 6443
998+
999+
1000+
1001+LCO No. 3267 28 of 79
1002+
1003+Services not later than five business days after the last day of July 842
1004+immediately following the end of such fiscal year. 843
1005+Sec. 23. Section 19a-37f of the general statutes is repealed and the 844
1006+following is substituted in lieu thereof (Effective from passage): 845
1007+(a) As used in this section: 846
1008+(1) "Commissioner" means the Commissioner of Public Health, or the 847
1009+commissioner's designee; 848
1010+(2) "Community water system" means a public water system that 849
1011+regularly serves at least twenty-five residents; 850
1012+(3) "Consumer" has the same meaning as provided in section 25-32a; 851
1013+(4) "Customer" means any (A) person, (B) firm, (C) corporation, (D) 852
1014+company, (E) association, (F) governmental unit, except a state agency, 853
1015+(G) lessee that, by the terms of a written lease or agreement, is 854
1016+responsible for the water bill, or (H) owner of property, that receives 855
1017+water service furnished by a water company; 856
1018+(5) "Department" means the Department of Public Health; 857
1019+(6) "Noncommunity water system" means a public water system that 858
1020+serves at least twenty-five persons at least sixty days of the year and is 859
1021+not a community water system; 860
1022+(7) "Nontransient noncommunity water system" means a 861
1023+noncommunity water system that regularly serves at least twenty-five 862
1024+of the same persons over six months per year; 863
1025+(8) "Public water system" means a water company that supplies 864
1026+drinking water to fifteen or more consumers or twenty-five or more 865
1027+persons daily at least sixty days of the year; 866
1028+[(9) "Sanitary survey" means the review of a public water system by 867
1029+the department to evaluate the adequacy of the public water system, its 868
1030+sources of supply and operations and the distribution of safe drinking 869 Governor's Bill No. 6443
1031+
1032+
1033+
1034+LCO No. 3267 29 of 79
1035+
1036+water;] 870
1037+[(10)] (9) "Service connection" means the service pipe from the water 871
1038+main to the curb stop or adjacent to the street line or property line, but 872
1039+does not include a service pipe used only for fire service or irrigation 873
1040+purposes; and 874
1041+[(11)] (10) "Water company" has the same meaning as provided in 875
1042+section 25-32a. 876
1043+(b) On or before August 1, 2019, and [August 1, 2020] and annually 877
1044+thereafter, the department shall issue a statement, in such manner as the 878
1045+department determines, to each water company that owns a community 879
1046+water system or systems showing the number of service connections 880
1047+and the source of such number each community water system or 881
1048+systems has listed in the department's records as of the date of issuance 882
1049+of the statement. For purposes of this subsection, the department shall 883
1050+combine the number of service connections of all water systems owned 884
1051+and operated by the same water company for a total count of service 885
1052+connections. If any water company disagrees with the number of service 886
1053+connections listed in such statement, the water company shall, not later 887
1054+than thirty days after the date of issuance of such statement, report to 888
1055+the department, in a form and manner prescribed by the department, 889
1056+the accurate number of services connections the water company's 890
1057+community water system or systems serve. 891
1058+[(c) On or before October 1, 2019, and October 1, 2020, the 892
1059+department, in consultation with the Office of Policy and Management, 893
1060+shall post on the department's Internet web site (1) the staff and costs to 894
1061+support the department's ability to maintain primacy under the federal 895
1062+Safe Drinking Water Act, 42 USC 300f, et seq., as amended from time to 896
1063+time, which costs, taking into consideration funding received from state 897
1064+and federal sources, shall constitute the safe drinking water primacy 898
1065+assessment for the current fiscal year, and (2) the assessment amounts 899
1066+due, based on the posted costs and in accordance with subsection (d) of 900
1067+this section.] 901 Governor's Bill No. 6443
1068+
1069+
1070+
1071+LCO No. 3267 30 of 79
1072+
1073+[(d)] (c) (1) For the fiscal years ending June 30, 2019, June 30, 2020, 902
1074+and June 30, 2021, each water company that owns a community or 903
1075+nontransient noncommunity water system or systems sh all pay 904
1076+annually to the department a safe drinking water [primacy] assessment 905
1077+amount in accordance with the following: (A) Each community water 906
1078+system having less than fifty service connections and nontransient 907
1079+noncommunity water system shall be assessed one hundred twenty-five 908
1080+dollars; (B) each community water system having at least fifty but less 909
1081+than one hundred service connections shall be assessed one hundred 910
1082+fifty dollars; and (C) each community water system having at least one 911
1083+hundred service connections shall be assessed an amount established by 912
1084+the commissioner, not to exceed three dollars per service connection. 913
1085+(2) For the fiscal year ending June 30, 2022, each water company that 914
1086+owns a community or nontransient noncommunity water system or 915
1087+systems shall pay to the department a safe drinking water assessment 916
1088+amount in accordance with the following: (A) Each community water 917
1089+system having less than fifty service connections and nontransient 918
1090+noncommunity water system shall be assessed one hundred eighty 919
1091+dollars; (B) each community water system having at least fifty but less 920
1092+than one hundred service connections shall be assessed two hundred 921
1093+sixteen dollars; and (C) each community water system having at least 922
1094+one hundred service connections shall be assessed two dollars and sixty-923
1095+nine cents per service connection. 924
1096+(3) For the fiscal year ending June 30, 2023, and annually thereafter, 925
1097+the commissioner shall, subject to the approval of the Secretary of the 926
1098+Office of Policy and Management, adjust the amounts set forth in 927
1099+subdivision (2) of this subsection on a pro rata basis to reflect the 928
1100+weighted average of (A) the percentage increase applied to wages of the 929
1101+engineering, scientific and technical bargaining unit, that constitutes a 930
1102+general wage increase, and (B) the percentage change in the applicable 931
1103+estimated fringe benefit rate as determined by the commissioner in the 932
1104+same fiscal year, provided such percentages are adjusted to reflect the 933
1105+fractional part of the fiscal year to which each change applies. On or 934
1106+before October 1, 2022, and annually thereafter, the department shall 935 Governor's Bill No. 6443
1107+
1108+
1109+
1110+LCO No. 3267 31 of 79
1111+
1112+post the adjusted amounts on the department's Internet web site. The 936
1113+commissioner shall assess each water company that owns a community 937
1114+or nontransient noncommunity water system or systems the applicable 938
1115+adjusted amount as posted by the department. 939
1116+(4) For purposes of this [subdivision] subsection, a community water 940
1117+system's service connections shall be determined in accordance with 941
1118+subsection (b) of this section. 942
1119+[(2)] (5) On or before January 1, [2020, and January 1, 2021] 2022, and 943
1120+annually thereafter, the department shall issue an invoice, in such 944
1121+manner as the department determines, to each water company that 945
1122+owns a community or nontransient noncommunity water system or 946
1123+systems for the amount due pursuant to subdivision (1), (2) or (3), as 947
1124+applicable, of this subsection. Each such water company shall pay the 948
1125+amount invoiced, in the same year the department issued in the invoice, 949
1126+in accordance with the following schedule: 950
1127+(A) A nontransient noncommunity water system shall pay one 951
1128+hundred per cent of the amount invoiced on or before March first; 952
1129+(B) A community water system having less than one hundred service 953
1130+connections shall pay one hundred per cent of the amount invoiced on 954
1131+or before May first; and 955
1132+(C) A community water system having one hundred or more service 956
1133+connections shall pay fifty per cent of the invoiced amount by March 957
1134+first and the remaining fifty per cent of the amount invoiced by May 958
1135+first. 959
1136+[(e)] (d) If a water company is acquired by another water company 960
1137+for any reason, the acquiring water company shall pay the amount due 961
1138+to the department for the acquired water company's assessment under 962
1139+subsection [(d)] (c) of this section. 963
1140+[(f)] (e) (1) A water company that owns a community water system 964
1141+may collect the assessment amount due for the community water system 965 Governor's Bill No. 6443
1142+
1143+
1144+
1145+LCO No. 3267 32 of 79
1146+
1147+from a customer of such community water system. The amount 966
1148+collected by the water company from an individual customer may be a 967
1149+pro rata share of such assessment amount and may be adjusted by the 968
1150+water company to reflect the bad debt component and surplus or deficit 969
1151+related to primacy assessment collections of the water company for the 970
1152+prior billing period. Such amount may appear as a separate item on the 971
1153+customer's bills. 972
1154+(2) The assessment amount due for a community water system under 973
1155+subdivision (1) of this subsection may be adopted in rates through the 974
1156+existing rate approval process for the water company or may appear as 975
1157+a separate item identified as an assessment on each customer's bill 976
1158+without requiring a revision to or approval of the schedule of authorized 977
1159+rates and charges for the water company that is otherwise required 978
1160+pursuant to section 7-239 or 16-19 or any special act or enabling 979
1161+legislation establishing a water company. Such charges shall be subject 980
1162+to the past due and collection procedures, including interest charges, of 981
1163+the water company as are applicable to any other authorized customer 982
1164+charge or fee. 983
1165+[(g) The requirement for a water company to pay the assessment shall 984
1166+terminate immediately if the department no longer has primacy under 985
1167+the federal Safe Drinking Water Act, 42 USC 300f, et seq., as amended 986
1168+from time to time, whether removed by the federal Environmental 987
1169+Protection Agency or through any other action by a state or federal 988
1170+authority. If the assessment is terminated and not reinstated on or before 989
1171+one hundred eighty days after such termination, the water company 990
1172+shall credit its customers any amounts collected from such customers 991
1173+for such assessment amount that the water company is no longer 992
1174+required to pay to the department.] 993
1175+[(h)] (f) If any assessment or part thereof is not paid on or before thirty 994
1176+days after the date when such assessment is due, the commissioner may 995
1177+impose a fee equal to one and one-half per cent on the balance due of 996
1178+such assessment for each month of nonpayment beyond such initial 997
1179+thirty-day period unless the water company that has not paid such 998 Governor's Bill No. 6443
1180+
1181+
1182+
1183+LCO No. 3267 33 of 79
1184+
1185+assessment or part thereof is a town, city or borough, in which case the 999
1186+water company shall be subject to the provisions of section 12-38. 1000
1187+[(i)] (g) On or before November 1, 2019, and November 1, 2020, the 1001
1188+department shall post on its Internet web site a report that includes: (1) 1002
1189+Resources, activities and costs that support the department's ability to 1003
1190+maintain primacy under the federal Safe Drinking Water Act, 42 USC 1004
1191+300f, et seq., as amended from time to time, in the previous fiscal year; 1005
1192+(2) the number of full-time equivalent positions that performed the 1006
1193+required functions to maintain primacy in the previous fiscal year; and 1007
1194+(3) quality improvement strategies the department has deployed to 1008
1195+streamline operations to make efficient and effective use of staff and 1009
1196+resources. The commissioner shall provide for a comment period of 1010
1197+thirty days following the posting of such report. At the conclusion of 1011
1198+such public comment period, but not later than January 1, 2020, and not 1012
1199+later than January 1, 2021, the commissioner shall submit such report 1013
1200+and summary of comments received to the Governor and the joint 1014
1201+standing committee of the General Assembly having cognizance of 1015
1202+matters relating to public health, in accordance with the provisions of 1016
1203+section 11-4a. 1017
1204+[(j)] (h) The commissioner may adopt regulations, in accordance with 1018
1205+the provisions of chapter 54, to carry out the provisions of this section. 1019
1206+[(k)] (i) State agencies shall be exempt from the requirements of 1020
1207+subsections [(d) to (h)] (c) to (f), inclusive, of this section. 1021
1208+Sec. 24. (NEW) (Effective from passage and applicable to calendar months 1022
1209+commencing on or after January 1, 2023) (a) As used in this section: 1023
1210+(1) "Carrier" means any person that operates or causes to be operated 1024
1211+on any highway in this state any eligible motor vehicle. "Carrier" does 1025
1212+not include the state, any political subdivision of the state, the United 1026
1213+States or the federal government; 1027
1214+(2) "Commissioner" means the Commissioner of Revenue Services; 1028 Governor's Bill No. 6443
1215+
1216+
1217+
1218+LCO No. 3267 34 of 79
1219+
1220+(3) "Department" means the Department of Revenue Services; 1029
1221+(4) "Eligible motor vehicle" means a motor vehicle, as defined in 1030
1222+section 14-1 of the general statutes, that (A) has a gross weight of twenty-1031
1223+six thousand pounds or more, and (B) carries a classification between 1032
1224+Class 8 and Class 13, inclusive, under the Federal High way 1033
1225+Administration vehicle classification system; 1034
1226+(5) "Gross weight" has the same meaning as provided in section 14-1 1035
1227+of the general statutes; and 1036
1228+(6) "Highway" has the same meaning as provided in section 14-1 of 1037
1229+the general statutes. 1038
1230+(b) (1) For each calendar month commencing on or after January 1, 1039
1231+2023, a tax is imposed on every carrier for the privilege of operating or 1040
1232+causing to be operated an eligible motor vehicle on any highway of the 1041
1233+state. Use of any such highway shall be measured by the number of 1042
1234+miles traveled within the state by each eligible motor vehicle operated 1043
1235+or caused to be operated by such carrier during each month. The amount 1044
1236+of tax due from each carrier shall be determined in accordance with the 1045
1237+provisions of subdivision (2) of this subsection. 1046
1238+(2) Each carrier shall calculate the number of miles traveled by each 1047
1239+eligible motor vehicle operated or caused to be operated by such carrier 1048
1240+within the state during each month. The miles traveled within the state 1049
1241+by each eligible motor vehicle shall be multiplied by the tax rate as 1050
1242+follows, such rate to be based on the gross weight of each such vehicle: 1051
1243+T1 Gross Weight in Pounds Rate in Dollars
1244+T2 26,000-28,000 0.0250
1245+T3 28,001-30,000 0.0279
1246+T4 30,001-32,000 0.0308
1247+T5 32,001-34,000 0.0337 Governor's Bill No. 6443
1248+
1249+
1250+
1251+LCO No. 3267 35 of 79
1252+
1253+T6 34,001-36,000 0.0365
1254+T7 36,001-38,000 0.0394
1255+T8 38,001-40,000 0.0423
1256+T9 40,001-42,000 0.0452
1257+T10 42,001-44,000 0.0481
1258+T11 44,001-46,000 0.0510
1259+T12 46,001-48,000 0.0538
1260+T13 48,001-50,000 0.0567
1261+T14 50,001-52,000 0.0596
1262+T15 52,001-54,000 0.0625
1263+T16 54,001-56,000 0.0654
1264+T17 56,001-58,000 0.0683
1265+T18 58,001-60,000 0.0712
1266+T19 60,001-62,000 0.0740
1267+T20 62,001-64,000 0.0769
1268+T21 64,001-66,000 0.0798
1269+T22 66,001-68,000 0.0827
1270+T23 68,001-70,000 0.0856
1271+T24 70,001-72,000 0.0885
1272+T25 72,001-74,000 0.0913
1273+T26 74,001-76,000 0.0942 Governor's Bill No. 6443
1274+
1275+
1276+
1277+LCO No. 3267 36 of 79
1278+
1279+T27 76,001-78,000 0.0971
1280+T28 78,001-80,000 0.1000
1281+T29 80,001 and over 0.1750
1282+
1283+(c) (1) Each carrier shall file with the commissioner, on or before the 1052
1284+last day of each month, a return for the calendar month immediately 1053
1285+preceding, in such form and containing such information as the 1054
1286+commissioner may prescribe. The return shall be accompanied by 1055
1287+payment of the amount of the tax shown to be due thereon. Each carrier 1056
1288+shall be required to file such return electronically with the department 1057
1289+and to make such payment by electronic funds transfer in the manner 1058
1290+provided by chapter 228g of the general statutes, irrespective of whether 1059
1291+the carrier would have otherwise been required to file such return 1060
1292+electronically or to make such payment by electronic funds transfer 1061
1293+under the provisions of said chapter. 1062
1294+(2) Notwithstanding the provisions of subsection (a) of section 13b-1063
1295+61 of the general statutes, the commissioner shall deposit into the Special 1064
1296+Transportation Fund established under section 13b-61 of the general 1065
1297+statutes the amounts received by the state from the tax imposed under 1066
1298+this section. 1067
1299+(d) (1) Each carrier desiring to use any highway of the state on or after 1068
1300+January 1, 2023, shall file an application for a permit with the 1069
1301+commissioner, in such form and containing such information as the 1070
1302+commissioner may prescribe. No carrier may lawfully operate or cause 1071
1303+to be operated an eligible motor vehicle in the state on or after January 1072
1304+1, 2023, without obtaining a permit from the commissioner. 1073
1305+(2) Upon receipt of a fully completed application from a carrier, the 1074
1306+commissioner shall grant and issue a permit to such carrier. Such permit 1075
1307+shall be valid only for the carrier to which it is issued and the eligible 1076
1308+motor vehicles such carrier operates or causes to be operated on the 1077
1309+highways of the state and shall not be assignable. The carrier shall 1078 Governor's Bill No. 6443
1310+
1311+
1312+
1313+LCO No. 3267 37 of 79
1314+
1315+maintain a copy of the permit within each eligible motor vehicle that 1079
1316+such carrier operates or causes to be operated in the state. 1080
1317+(e) (1) Whenever a carrier fails to comply with any provision of this 1081
1318+section, the commissioner shall order a hearing to be held, requiring 1082
1319+such carrier to show cause why such carrier's permit should not be 1083
1320+revoked or suspended. The commissioner shall provide at least ten days' 1084
1321+notice, in writing, to such carrier of the date, time and place of such 1085
1322+hearing and may serve such notice personally or by registered or 1086
1323+certified mail. If, after such hearing, the commissioner revokes or 1087
1324+suspends a permit, the commissioner shall not restore such permit to or 1088
1325+issue a new permit for such carrier unless the commissioner is satisfied 1089
1326+that the carrier will comply with the provisions of this section. 1090
1327+(2) Whenever a carrier files returns for four successive monthly 1091
1328+periods showing that none of the eligible motor vehicles operated or 1092
1329+caused to be operated by such carrier used any highway of the state, the 1093
1330+commissioner shall order a hearing to be held, requiring such carrier to 1094
1331+show cause why such carrier's permit should not be cancelled. The 1095
1332+commissioner shall provide at least thirty days' notice, in writing, to 1096
1333+such carrier of the date, time and place of such hearing and may serve 1097
1334+such notice personally or by registered or certified mail. If, after such 1098
1335+hearing, the commissioner cancels a permit, the commissioner shall not 1099
1336+issue a new permit for such carrier unless the commissioner is satisfied 1100
1337+that the carrier will make use of the highways of the state. 1101
1338+(f) Each person, other than a carrier, who is required, on behalf of 1102
1339+such carrier, to collect, truthfully account for and pay over a tax imposed 1103
1340+on such carrier under this section and who wilfully fails to collect, 1104
1341+truthfully account for and pay over such tax or who wilfully attempts in 1105
1342+any manner to evade or defeat the tax or the payment thereof, shall, in 1106
1343+addition to other penalties provided by law, be liable for a penalty equal 1107
1344+to the total amount of the tax evaded, or not collected, or not accounted 1108
1345+for and paid over, including any penalty or interest attributable to such 1109
1346+wilful failure to collect or truthfully account for and pay over such tax 1110
1347+or such wilful attempt to evade or defeat such tax, provided such 1111 Governor's Bill No. 6443
1348+
1349+
1350+
1351+LCO No. 3267 38 of 79
1352+
1353+penalty shall only be imposed against such person in the event that such 1112
1354+tax, penalty or interest cannot otherwise be collected from such carrier. 1113
1355+The amount of such penalty with respect to which a person may be 1114
1356+personally liable under this section shall be collected in accordance with 1115
1357+the provisions of subsection (n) of this section and any amount so 1116
1358+collected shall be allowed as a credit against the amount of such tax, 1117
1359+penalty or interest due and owing from the carrier. The dissolution of 1118
1360+the carrier shall not discharge any person in relation to any personal 1119
1361+liability under this section for wilful failure to collect or truthfully 1120
1362+account for and pay over such tax or for a wilful attempt to evade or 1121
1363+defeat such tax prior to dissolution, except as otherwise provided in this 1122
1364+section. For purposes of this subsection, "person" includes any 1123
1365+individual, corporation, limited liability company or partnership and 1124
1366+any officer or employee of any corporation, including a dissolved 1125
1367+corporation, and a member of or employee of any partnership or limited 1126
1368+liability company who, as such officer, employee or member, is under a 1127
1369+duty to file a tax return under this section on behalf of a carrier or to 1128
1370+collect or truthfully account for and pay over a tax imposed under this 1129
1371+section on behalf of such carrier. 1130
1372+(g) (1) The commissioner may examine the records of any carrier 1131
1373+subject to a tax imposed under the provisions of this section as the 1132
1374+commissioner deems necessary. If the commissioner determines that 1133
1375+there is a deficiency with respect to the payment of any such tax due 1134
1376+under the provisions of this section, the commissioner shall assess or 1135
1377+reassess the deficiency in tax, give notice of such deficiency assessment 1136
1378+or reassessment to the taxpayer and make demand upon the taxpayer 1137
1379+for payment. Such amount shall bear interest at the rate of one per cent 1138
1380+per month or fraction thereof from the date when the original tax was 1139
1381+due and payable. When it appears that any part of the deficiency for 1140
1382+which a deficiency assessment is made is due to negligence or 1141
1383+intentional disregard of the provisions of this section or regulations 1142
1384+promulgated thereunder, there shall be imposed a penalty equal to ten 1143
1385+per cent of the amount of such deficiency assessment, or fifty dollars, 1144
1386+whichever is greater. When it appears that any part of the deficiency for 1145 Governor's Bill No. 6443
1387+
1388+
1389+
1390+LCO No. 3267 39 of 79
1391+
1392+which a deficiency assessment is made is due to fraud or intent to evade 1146
1393+the provisions of this section or regulations promulgated thereunder, 1147
1394+there shall be imposed a penalty equal to twenty-five per cent of the 1148
1395+amount of such deficiency assessment. No taxpayer shall be subject to 1149
1396+more than one penalty under this subsection in relation to the same tax 1150
1397+period. Subject to the provisions of section 12-3a of the general statutes, 1151
1398+the commissioner may waive all or part of the penalties provided under 1152
1399+this section when it is proven to the commissioner's satisfaction that the 1153
1400+failure to pay any tax was due to reasonable cause and was not 1154
1401+intentional or due to neglect. Any decision rendered by any federal 1155
1402+court holding that a taxpayer has filed a fraudulent return with the 1156
1403+Director of Internal Revenue shall subject the taxpayer to the penalty 1157
1404+imposed by this section without the necessity of further proof thereof, 1158
1405+except when it can be shown that the return to the state so differed from 1159
1406+the return to the federal government as to afford a reasonable 1160
1407+presumption that the attempt to defraud did not extend to the return 1161
1408+filed with the state. Within thirty days of the mailing of such notice, the 1162
1409+taxpayer shall pay to the commissioner, in cash, or by check, draft or 1163
1410+money order drawn to the order of the Commissioner of Revenue 1164
1411+Services, any additional amount of tax, penalty and interest shown to be 1165
1412+due. 1166
1413+(2) Except in the case of a wilfully false or fraudulent return with 1167
1414+intent to evade the tax, no assessment of additional tax shall be made 1168
1415+after the expiration of more than three years from the date of the filing 1169
1416+of a return or from the original due date of a return, whichever is later. 1170
1417+If no return has been filed as provided under the provisions of this 1171
1418+section, the commissioner may make such return at any time thereafter, 1172
1419+according to the best information obtainable and according to the form 1173
1420+prescribed. To the tax imposed upon the basis of such return, there shall 1174
1421+be added an amount equal to ten per cent of such tax, or fifty dollars, 1175
1422+whichever is greater. The tax shall bear interest at the rate of one per 1176
1423+cent per month or fraction thereof from the due date of such tax to the 1177
1424+date of payment. Where, before the expiration of the period prescribed 1178
1425+herein for the assessment of an additional tax, a taxpayer has consented 1179 Governor's Bill No. 6443
1426+
1427+
1428+
1429+LCO No. 3267 40 of 79
1430+
1431+in writing that such period may be extended, the amount of such 1180
1432+additional tax due may be determined at any time within such extended 1181
1433+period. The period so extended may be further extended by subsequent 1182
1434+consents in writing before the expiration of the extended period. 1183
1435+(h) (1) Any carrier believing that it has overpaid any taxes due under 1184
1436+the provisions of this section may file a claim for refund in writing with 1185
1437+the commissioner within three years from the due date for which such 1186
1438+overpayment was made, stating the specific grounds upon which the 1187
1439+claim is founded. Failure to file a claim within the time prescribed in this 1188
1440+section constitutes a waiver of any demand against the state on account 1189
1441+of overpayment. The commissioner shall review such claim within a 1190
1442+reasonable time and, if the commissioner determines that a refund is 1191
1443+due, the commissioner shall credit the overpayment against any amount 1192
1444+then due and payable from the carrier under this section or any 1193
1445+provision of the general statutes and shall refund any balance 1194
1446+remaining. The commissioner shall notify the Comptroller of the 1195
1447+amount of such refund and the Comptroller shall draw an order on the 1196
1448+Treasurer in the amount thereof for payment to such carrier. If the 1197
1449+commissioner determines that such claim is not valid, either in whole or 1198
1450+in part, the commissioner shall mail notice of the proposed disallowance 1199
1451+to the claimant, which notice shall set forth briefly the commissioner's 1200
1452+findings of fact and the basis of disallowance in each case decided in 1201
1453+whole or in part adversely to the claimant. Sixty days after the date on 1202
1454+which it is mailed, a notice of proposed disallowance shall constitute a 1203
1455+final disallowance except only for such amounts as to which the 1204
1456+taxpayer filed, as provided in subdivision (2) of this subsection, a 1205
1457+written protest with the commissioner. 1206
1458+(2) On or before the sixtieth day after the mailing of the proposed 1207
1459+disallowance, the claimant may file with the commissioner a written 1208
1460+protest against the proposed disallowance in which the claimant shall 1209
1461+set forth the grounds on which the protest is based. If a protest is filed, 1210
1462+the commissioner shall reconsider the proposed disallowance and, if the 1211
1463+claimant has so requested, may grant or deny the claimant or the 1212
1464+claimant's authorized representatives an oral hearing. 1213 Governor's Bill No. 6443
1465+
1466+
1467+
1468+LCO No. 3267 41 of 79
1469+
1470+(3) The commissioner shall mail notice of the commissioner's 1214
1471+determination to the claimant, which notice shall set forth briefly the 1215
1472+commissioner's findings of fact and the basis of decision in each case 1216
1473+decided in whole or in part adversely to the claimant. 1217
1474+(4) The action of the commissioner on the claimant's protest shall be 1218
1475+final upon the expiration of thirty days from the date on which the 1219
1476+commissioner mails notice of the commissioner's action to the company 1220
1477+or municipal utility unless within such period the claimant seeks 1221
1478+judicial review of the commissioner's determination pursuant to 1222
1479+subsection (l) of this section. 1223
1480+(i) (1) Any person required under this section or regulations adopted 1224
1481+thereunder to pay any tax, make a return, keep any record or supply 1225
1482+any information, who wilfully fails to pay such tax, make such return, 1226
1483+keep such records or supply such information, at the time required by 1227
1484+law, shall, in addition to any other penalty provided by law, be fined 1228
1485+not more than one thousand dollars or imprisoned not more than one 1229
1486+year, or both. Notwithstanding the provisions of section 54-193 of the 1230
1487+general statutes, no person shall be prosecuted for a violation of the 1231
1488+provisions of this subsection committed on or after January 1, 2023, 1232
1489+except within three years next after such violation has been committed. 1233
1490+As used in this subsection, "person" includes any officer or employee of 1234
1491+a corporation or a member or employee of a partnership under a duty 1235
1492+to pay such tax, make such return, keep such records or supply such 1236
1493+information. 1237
1494+(2) Any person who wilfully delivers or discloses to the commissioner 1238
1495+or the commissioner's authorized agent any list, return, account, 1239
1496+statement or other document, known by such person to be fraudulent 1240
1497+or false in any material matter, shall, in addition to any other penalty 1241
1498+provided by law, be guilty of a class D felony. No person shall be 1242
1499+charged with an offense under both subdivisions (1) and (2) of this 1243
1500+subsection in relation to the same tax period but such person may be 1244
1501+charged and prosecuted for both such offenses upon the same 1245
1502+information. 1246 Governor's Bill No. 6443
1503+
1504+
1505+
1506+LCO No. 3267 42 of 79
1507+
1508+(j) (1) Each carrier shall keep such records, receipts, invoices and other 1247
1509+pertinent papers in such form as the commissioner requires. 1248
1510+(2) In addition to the requirements set forth under subdivision (1) of 1249
1511+this subsection, each carrier shall maintain, on a monthly basis, a list of 1250
1512+all the eligible motor vehicles that such carrier operates or causes to 1251
1513+operate on a highway in the state during such month. All such lists shall 1252
1514+be maintained by the carrier for not less than four years after the date of 1253
1515+each such month and shall be made available to the commissioner upon 1254
1516+request. 1255
1517+(3) The commissioner or the commissioner's authorized agent may 1256
1518+examine the records, receipts, invoices, other pertinent papers and 1257
1519+equipment of any person liable under the provisions of this section and 1258
1520+may investigate the character of the business of such person to verify 1259
1521+the accuracy of any return made or, if no return is made by such person, 1260
1522+to ascertain and determine the amount required to be paid. 1261
1523+(k) Any carrier that is aggrieved by the action of the commissioner or 1262
1524+an authorized agent of the commissioner in fixing the amount of any 1263
1525+tax, penalty or interest under this section may apply to the 1264
1526+commissioner, in writing, not later than sixty days after the notice of 1265
1527+such action is delivered or mailed to such carrier, for a hearing and a 1266
1528+correction of the amount of such tax, penalty or interest, setting forth the 1267
1529+reasons why such hearing should be granted and the amount by which 1268
1530+such tax, penalty or interest should be reduced. The commissioner shall 1269
1531+promptly consider each such application and may grant or deny the 1270
1532+hearing requested. If the hearing request is denied, the carrier shall be 1271
1533+notified forthwith. If the hearing request is granted, the commissioner 1272
1534+shall notify the carrier of the date, time and place for such hearing. After 1273
1535+such hearing, the commissioner may make such order as appears just 1274
1536+and lawful to the commissioner and shall furnish a copy of such order 1275
1537+to the carrier. The commissioner may, by notice in writing, order a 1276
1538+hearing on the commissioner's own initiative and require a carrier or 1277
1539+any other individual who the commissioner believes to be in possession 1278
1540+of relevant information concerning such carrier to appear before the 1279 Governor's Bill No. 6443
1541+
1542+
1543+
1544+LCO No. 3267 43 of 79
1545+
1546+commissioner or the commissioner's authorized agent with any 1280
1547+specified books of account, papers or other documents, for examination 1281
1548+under oath. 1282
1549+(l) Any carrier that is aggrieved because of any order, decision, 1283
1550+determination or disallowance the commissioner made under 1284
1551+subsection (h) or (k) of this section may, not later than thirty days after 1285
1552+service of notice of such order, decision, determination or disallowance, 1286
1553+take an appeal therefrom to the superior court for the judicial district of 1287
1554+New Britain, which appeal shall be accompanied by a citation to the 1288
1555+commissioner to appear before said court. Such citation shall be signed 1289
1556+by the same authority and such appeal shall be returnable at the same 1290
1557+time and served and returned in the same manner as is required in the 1291
1558+case of a summons in a civil action. The authority issuing the citation 1292
1559+shall take from the appellant a bond or recognizance to the state of 1293
1560+Connecticut, with surety, to prosecute the appeal to effect and to comply 1294
1561+with the orders and decrees of the court in the premises. Such appeals 1295
1562+shall be preferred cases, to be heard, unless cause appears to the 1296
1563+contrary, at the first session, by the court or by a committee appointed 1297
1564+by the court. Said court may grant such relief as may be equitable and, 1298
1565+if such tax has been paid prior to the granting of such relief, may order 1299
1566+the Treasurer to pay the amount of such relief. If the appeal has been 1300
1567+taken without probable cause, the court may tax double or triple costs, 1301
1568+as the case demands and, upon all such appeals that are denied, costs 1302
1569+may be taxed against such carrier at the discretion of the court but no 1303
1570+costs shall be taxed against the state. 1304
1571+(m) The commissioner and any agent of the commissioner duly 1305
1572+authorized to conduct any inquiry, investigation or hearing pursuant to 1306
1573+this section shall have power to administer oaths and take testimony 1307
1574+under oath relative to the matter of inquiry or investigation. At any 1308
1575+hearing ordered by the commissioner, the commissioner or the 1309
1576+commissioner's agent authorized to conduct such hearing and having 1310
1577+authority by law to issue such process may subpoena witnesses and 1311
1578+require the production of books, papers and documents pertinent to 1312
1579+such inquiry or investigation. No witness under subpoena authorized 1313 Governor's Bill No. 6443
1580+
1581+
1582+
1583+LCO No. 3267 44 of 79
1584+
1585+to be issued under the provisions of this section shall be excused from 1314
1586+testifying or from producing books, papers or documentary evidence on 1315
1587+the ground that such testimony or the production of such books, papers 1316
1588+or documentary evidence would tend to incriminate such witness, but 1317
1589+such books, papers or documentary evidence so produced shall not be 1318
1590+used in any criminal proceeding against such witness. If any person 1319
1591+disobeys such process or, having appeared in obedience thereto, refuses 1320
1592+to answer any pertinent question put to such person by the 1321
1593+commissioner or the commissioner's authorized agent, or to produce 1322
1594+any books, papers or other documentary evidence pursuant thereto, the 1323
1595+commissioner or such agent may apply to the superior court of the 1324
1596+judicial district wherein the carrier has a business address or wherein 1325
1597+the carrier's business has been conducted, or to any judge of such court 1326
1598+if the same is not in session, setting forth such disobedience to process 1327
1599+or refusal to answer, and such court or such judge shall cite such person 1328
1600+to appear before such court or such judge to answer such question or to 1329
1601+produce such books, papers or other documentary evidence and, upon 1330
1602+such person's refusal so to do, shall commit such person to a community 1331
1603+correctional center until such person testifies, but not for a period longer 1332
1604+than sixty days. Notwithstanding the serving of the term of such 1333
1605+commitment by any person, the commissioner may proceed in all 1334
1606+respects with such inquiry and examination as if the witness had not 1335
1607+previously been called upon to testify. Officers who serve subpoenas 1336
1608+issued by the commissioner or under the commissioner's authority and 1337
1609+witnesses attending hearings conducted by the commissioner pursuant 1338
1610+to this section shall receive fees and compensation at the same rates as 1339
1611+officers and witnesses in the courts of this state, to be paid on vouchers 1340
1612+of the commissioner on order of the Comptroller from the proper 1341
1613+appropriation for the administration of this section. 1342
1614+(n) The amount of any tax, penalty or interest due and unpaid under 1343
1615+the provisions of this section may be collected under the provisions of 1344
1616+section 12-35 of the general statutes. The warrant provided under said 1345
1617+section shall be signed by the commissioner or the commissioner's 1346
1618+authorized agent. The amount of any such tax, penalty and interest shall 1347 Governor's Bill No. 6443
1619+
1620+
1621+
1622+LCO No. 3267 45 of 79
1623+
1624+be a lien on the real estate of the carrier from the last day of the month 1348
1625+next preceding the due date of such civil penalty until such civil penalty 1349
1626+is paid. The commissioner may record such lien in the records of any 1350
1627+town in which the real estate of such carrier is situated but no such lien 1351
1628+shall be enforceable against a bona fide purchaser or qualified 1352
1629+encumbrancer of such real estate. When any tax with respect to which a 1353
1630+lien has been recorded under the provisions of this subsection has been 1354
1631+satisfied, the commissioner shall, upon request of any interested party, 1355
1632+issue a certificate discharging such lien, which certificate shall be 1356
1633+recorded in the same office in which the lien was recorded. Any action 1357
1634+for the foreclosure of such lien shall be brought by the Attorney General 1358
1635+in the name of the state in the superior court for the judicial district in 1359
1636+which the real estate subject to such lien is situated, or, if such real estate 1360
1637+is located in two or more judicial districts, in the superior court for any 1361
1638+one such judicial district, and the court may limit the time for 1362
1639+redemption or order the sale of such real estate or pass such other or 1363
1640+further decree as it judges equitable. 1364
1641+(o) No tax credit or credits shall be allowable against the tax imposed 1365
1642+under this section. 1366
1643+(p) Any person who knowingly violates any provision of this section 1367
1644+for which no other penalty is provided shall be fined one thousand 1368
1645+dollars. 1369
1646+(q) The commissioner may adopt regulations, in accordance with the 1370
1647+provisions of chapter 54 of the general statutes, to implement the 1371
1648+provisions of this section. 1372
1649+(r) At the close of each fiscal year, commencing with the fiscal year 1373
1650+ending June 30, 2023, in which the tax imposed under the provisions of 1374
1651+this section are received by the commissioner, the Comptroller is 1375
1652+authorized to record as revenue for such fiscal year the amount of such 1376
1653+tax that are received by the commissioner not later than five business 1377
1654+days from the July thirty-first immediately following the end of such 1378
1655+fiscal year. 1379 Governor's Bill No. 6443
1656+
1657+
1658+
1659+LCO No. 3267 46 of 79
1660+
1661+Sec. 25. Section 3-20j of the general statutes is repealed and the 1380
1662+following is substituted in lieu thereof (Effective from passage): 1381
1663+(a) As used in this section, the following terms have the following 1382
1664+meanings, unless the context clearly indicates a different meaning or 1383
1665+intent: 1384
1666+(1) "Credit revenue bonds" means revenue bonds issued pursuant to 1385
1667+this section; 1386
1668+(2) "Collection agent" means the financial institution acting as the 1387
1669+trustee or agent for the trustee that receives the pledged revenues 1388
1670+directed by the state to be paid to it by taxpayers; 1389
1671+(3) "Debt service requirements" means (A) (i) principal and interest 1390
1672+with respect to bonds, (ii) interest with respect to bond anticipation 1391
1673+notes, and (iii) unrefunded principal with respect to bond anticipation 1392
1674+notes, (B) the purchase price of bonds and bond anticipation notes that 1393
1675+are subject to purchase or redemption at the option of the bondowner or 1394
1676+noteowner, (C) the amounts, if any, required to establish or maintain 1395
1677+reserves, sinking funds or other funds or accounts at the respective 1396
1678+levels required to be established or maintained therein in accordance 1397
1679+with the proceedings authorizing the issuance of bonds, (D) expenses of 1398
1680+issuance and administration with respect to bonds and bond 1399
1681+anticipation notes, as determined by the Treasurer, (E) the amounts, if 1400
1682+any, becoming due and payable under a reimbursement agreement or 1401
1683+similar agreement entered into pursuant to authority granted under the 1402
1684+proceedings authorizing the issuance of bonds and bond anticipation 1403
1685+notes, and (F) any other costs or expenses deemed by the Treasurer to 1404
1686+be necessary or proper to be paid in connection with the bonds and bond 1405
1687+anticipation notes, including, without limitation, the cost of any credit 1406
1688+facility, including, but not limited to, a letter of credit or policy of bond 1407
1689+insurance, issued by a financial institution pursuant to an agreement 1408
1690+approved pursuant to the proceedings authorizing the issuance of 1409
1691+bonds and bond anticipation notes; 1410
1692+(4) "Dedicated savings" for a period means the amounts for such 1411 Governor's Bill No. 6443
1693+
1694+
1695+
1696+LCO No. 3267 47 of 79
1697+
1698+period determined by the Treasurer pursuant to subsection (n) of this 1412
1699+section to have been saved by the issuance of credit revenue bonds; 1413
1700+(5) "Pledged revenues" means withholding taxes statutorily pledged 1414
1701+to repayment of credit revenue bonds; 1415
1702+(6) "Proceedings" means the proceedings of the State Bond 1416
1703+Commission authorizing the issuance of bonds pursuant to this section, 1417
1704+the provisions of any resolution or trust indenture securing bonds, that 1418
1705+are incorporated into such proceedings, the provisions of any other 1419
1706+documents or agreements that are incorporated into such proceedings 1420
1707+and, to the extent applicable, a certificate of determination filed by the 1421
1708+Treasurer in accordance with this section; 1422
1709+(7) "Trustee" means the financial institution acting as trustee under 1423
1710+the trust indenture pursuant to which bonds or notes are issued; and 1424
1711+(8) "Withholding taxes" means taxes required to be deducted and 1425
1712+withheld pursuant to sections 12-705 and 12-706 and paid to the 1426
1713+Commissioner of Revenue Services pursuant to section 12-707 upon 1427
1714+receipt by the state and including penalty and interest charges on such 1428
1715+taxes. 1429
1716+(b) Whenever any general statute or public or special act, whether 1430
1717+enacted before, on or after October 31, 2017, authorizes general 1431
1718+obligation bonds of the state to be issued for any purpose, such general 1432
1719+statute or public or special act shall be deemed to have authorized such 1433
1720+bonds to be issued as either general obligation bonds or credit revenue 1434
1721+bonds under this section. In no event shall the total of the principal 1435
1722+amount of general obligation bonds and credit revenue bonds issued 1436
1723+pursuant to the authority of any general statute or public or special act 1437
1724+exceed the amount authorized thereunder. Except as provided for in this 1438
1725+section, all provisions of section 3-20, except subsection (p) of said 1439
1726+section, shall apply to such credit revenue bonds. 1440
1727+(c) Bonds issued pursuant to this section shall be special obligations 1441
1728+of the state and shall not be payable from or charged upon any funds 1442 Governor's Bill No. 6443
1729+
1730+
1731+
1732+LCO No. 3267 48 of 79
1733+
1734+other than the pledged revenues or other receipts, funds or moneys 1443
1735+pledged therefor, nor shall the state or any political subdivision thereof 1444
1736+be subject to any liability thereon, except to the extent of such pledged 1445
1737+revenues or other receipts, funds or moneys pledged therefor as 1446
1738+provided in this section. As part of the contract of the state with the 1447
1739+owners of such bonds, all amounts necessary for punctual payment of 1448
1740+principal of and interest on such bonds, and redemption premium, if 1449
1741+any, with respect to such bonds, is hereby appropriated and the 1450
1742+Treasurer shall pay such principal and interest and redemption 1451
1743+premium, if any, as the same shall become due but only from such 1452
1744+sources. The issuance of bonds issued under this section shall not 1453
1745+directly or indirectly or contingently obligate the state or any political 1454
1746+subdivision thereof to levy or to pledge any form of taxation whatever 1455
1747+therefor, except for taxes included in the pledged revenues, or to make 1456
1748+any additional appropriation for their payment. Such bonds shall not 1457
1749+constitute a charge, lien or encumbrance, legal or equitable, upon any 1458
1750+property of the state or of any political subdivision thereof other than 1459
1751+the pledged revenues or other receipts, funds or moneys pledged 1460
1752+therefor as provided in this section, and the substance of such limitation 1461
1753+shall be plainly stated on the face of each such bond and bond 1462
1754+anticipation note. 1463
1755+(d) The state hereby pledges all its right, title and interest to the 1464
1756+pledged revenues to secure the due and punctual payment of the 1465
1757+principal of and interest on the credit revenue bonds, and redemption 1466
1758+premium, if any, with respect to such bonds. Such pledge shall secure 1467
1759+all such credit revenue bonds equally, and such pledge is and shall be 1468
1760+prior in interest to any other claim of any party to the pledged revenues, 1469
1761+including any holder of general obligation bonds of the state. Such 1470
1762+bonds also may be secured by a pledge of reserves, sinking funds and 1471
1763+any other funds and accounts, including proceeds from investment of 1472
1764+any of the foregoing, authorized hereby or by the proceedings 1473
1765+authorizing the issuance of such bonds, and by moneys paid under a 1474
1766+credit facility including, but not limited to, a letter of credit or policy of 1475
1767+bond insurance, issued by a financial institution pursuant to an 1476 Governor's Bill No. 6443
1768+
1769+
1770+
1771+LCO No. 3267 49 of 79
1772+
1773+agreement authorized by such proceedings. 1477
1774+(e) The pledge of the pledged revenues under this section is made by 1478
1775+the state by operation of law through this section, and as a statutory lien 1479
1776+is effective without any further act or agreement by the state, and shall 1480
1777+be valid and binding from the time the pledge is made, and any 1481
1778+revenues or other receipts, funds or moneys so pledged and received by 1482
1779+the state shall be subject immediately to the lien of such pledge without 1483
1780+any physical delivery thereof or further act. The lien of any such pledge 1484
1781+shall be valid and binding as against all parties having claims of any 1485
1782+kind in tort, contract or otherwise against the state, irrespective of 1486
1783+whether such parties have notice thereof. 1487
1784+(f) In the proceedings authorizing any credit revenue bonds, the state 1488
1785+shall direct the trustee to establish one or more collection accounts with 1489
1786+the collection agent to receive the pledged revenues and shall direct 1490
1787+payment of the pledged revenues into such collection accounts of the 1491
1788+collection agent. Funds in such collection accounts shall be kept separate 1492
1789+and apart from any other funds of the state until disbursed as provided 1493
1790+for in the proceedings authorizing such credit revenue bonds. Such 1494
1791+proceedings shall provide that no funds from such collection accounts 1495
1792+shall be disbursed to the control of the state until and at such times as 1496
1793+all current claims of any trustee set out in the proceedings have been 1497
1794+satisfied, and thereafter may be disbursed to the control of the state free 1498
1795+and clear of any claim by the trustee or the holders of any credit revenue 1499
1796+bonds. The agreements with the depositaries establishing the collection 1500
1797+accounts may provide for customary settlement terms for the collection 1501
1798+of revenues. The expenses of the state in establishing such collection 1502
1799+accounts and directing the deposit of pledged revenues therein, 1503
1800+including the expenses of the Department of Revenue Services and the 1504
1801+office of the Comptroller in establishing mechanisms to verify, allocate, 1505
1802+track and audit such accounts and the deposits therein, may be paid as 1506
1803+costs of issuance of any bonds issued pursuant to section 3-20 or this 1507
1804+section. 1508
1805+(g) The proceedings under which bonds are authorized to be issued, 1509 Governor's Bill No. 6443
1806+
1807+
1808+
1809+LCO No. 3267 50 of 79
1810+
1811+pursuant to this section, may, subject to the provisions of the general 1510
1812+statutes, contain any or all of the following: 1511
1813+(1) Covenants that confirm, as part of the contract with the holders of 1512
1814+the credit revenue bonds, the agreements of the state set forth in 1513
1815+subsections (d) to (f), inclusive, of this section; 1514
1816+(2) Provisions for the execution of reimbursement agreements or 1515
1817+similar agreements in connection with credit facilities including, but not 1516
1818+limited to, letters of credit or policies of bond insurance, remarketing 1517
1819+agreements and agreements for the purpose of moderating interest rate 1518
1820+fluctuations, and of such other agreements entered into pursuant to 1519
1821+section 3-20a; 1520
1822+(3) Provisions for the collection, custody, investment, reinvestment 1521
1823+and use of the pledged revenues or other receipts, funds or moneys 1522
1824+pledged therefor; 1523
1825+(4) Provisions regarding the establishment and maintenance of 1524
1826+reserves, sinking funds and any other funds and accounts as shall be 1525
1827+approved by the State Bond Commission in such amounts as may be 1526
1828+established by the State Bond Commission, and the regulation and 1527
1829+disposition thereof, including requirements that any such funds and 1528
1830+accounts be held separate from or not be commingled with other funds 1529
1831+of the state; 1530
1832+(5) Provisions for the issuance of additional bonds on a parity with 1531
1833+bonds theretofore issued, including establishment of coverage 1532
1834+requirements as a condition of the issuance of such additional bonds; 1533
1835+(6) Provisions regarding the rights and remedies available in case of 1534
1836+a default to the bondowners, or any trustee under any contract, loan 1535
1837+agreement, document, instrument or trust indenture, including the right 1536
1838+to appoint a trustee to represent their interests upon occurrence of an 1537
1839+event of default, as defined in said proceedings, provided, if any bonds 1538
1840+shall be secured by a trust indenture, the respective owners of such 1539
1841+bonds or notes shall have no authority except as set forth in such trust 1540 Governor's Bill No. 6443
1842+
1843+
1844+
1845+LCO No. 3267 51 of 79
1846+
1847+indenture to appoint a separate trustee to represent them, and provided 1541
1848+further no such right or remedy shall allow principal and interest on 1542
1849+such bonds to be accelerated; and 1543
1850+(7) Provisions or covenants of like or different character from the 1544
1851+foregoing which are consistent with this and which the State Bond 1545
1852+Commission determines in such proceedings are necessary, convenient 1546
1853+or desirable to better secure the bonds, or will tend to make the bonds 1547
1854+more marketable, and which are in the best interests of the state. Any 1548
1855+provision which may be included in proceedings authorizing the 1549
1856+issuance of bonds hereunder may be included in a trust indenture duly 1550
1857+approved in accordance with this subsection which secures the bonds 1551
1858+and any notes issued in anticipation thereof, and in such case the 1552
1859+provisions of such indenture shall be deemed to be a part of such 1553
1860+proceedings as though they were expressly included therein. 1554
1861+(h) Bonds issued pursuant to this section shall be secured by a trust 1555
1862+indenture, approved by the State Bond Commission, by and between 1556
1863+the state and a corporate trustee, which may be any trust company or 1557
1864+bank having the powers of a trust company within or without the state. 1558
1865+Such trust indenture may contain such provisions for protecting and 1559
1866+enforcing the rights and remedies of the bondowners as may be 1560
1867+reasonable and proper and not in violation of law, including covenants 1561
1868+setting forth the duties of the state in relation to the exercise of its powers 1562
1869+pursuant to the pledged revenues and the custody, safeguarding and 1563
1870+application of all moneys. The state may provide by such trust indenture 1564
1871+for the payment of the pledged revenues or other receipts, funds or 1565
1872+moneys to the trustee under such trust indenture or to any other 1566
1873+depository, and for the method of disbursement thereof, with such 1567
1874+safeguards and restrictions as it may determine, but consistent with the 1568
1875+provisions of subsections (d) to (f), inclusive, of this section. 1569
1876+(i) The Treasurer shall have power to purchase bonds of the state 1570
1877+issued pursuant to this section out of any funds available therefor. The 1571
1878+Treasurer may hold, pledge, cancel or resell such bonds subject to and 1572
1879+in accordance with agreements with bondowners. 1573 Governor's Bill No. 6443
1880+
1881+
1882+
1883+LCO No. 3267 52 of 79
1884+
1885+(j) Bonds issued pursuant to this section are hereby made negotiable 1574
1886+instruments within the meaning of and for all purposes of the Uniform 1575
1887+Commercial Code, whether or not such bonds are of such form and 1576
1888+character as to be negotiable instruments under the terms of the 1577
1889+Uniform Commercial Code, subject only to the provisions of such bonds 1578
1890+for registration. 1579
1891+(k) Any moneys held by the Treasurer or a trustee pursuant to a trust 1580
1892+indenture with respect to bonds issued pursuant to this section, 1581
1893+including pledged revenues, other pledged receipts, funds or moneys 1582
1894+and proceeds from the sale of such bonds, may, pending the use or 1583
1895+application of the proceeds thereof for an authorized purpose, be (1) 1584
1896+invested and reinvested in such obligations, securities and investments 1585
1897+as are set forth in subsection (f) of section 3-20 and in participation 1586
1898+certificates in the Short Term Investment Fund created under section 3-1587
1899+27a, or (2) deposited or redeposited in such bank or banks as shall be 1588
1900+provided in the resolution authorizing the issuance of such bonds, the 1589
1901+certificate of determination authorizing issuance of such bond 1590
1902+anticipation notes or in the indenture securing such bonds. Proceeds 1591
1903+from investments authorized by this subsection, less amounts required 1592
1904+under the proceedings authorizing the issuance of bonds, shall be 1593
1905+credited to the General Fund. 1594
1906+(l) Bonds issued pursuant to this section are hereby made securities 1595
1907+in which all public officers and public bodies of the state and its political 1596
1908+subdivisions, all insurance companies, credit unions, building and loan 1597
1909+associations, investment companies, banking associations, trust 1598
1910+companies, executors, administrators, trustees and other fiduciaries and 1599
1911+pension, profit-sharing and retirement funds may properly and legally 1600
1912+invest funds, including capital in their control or belonging to them. 1601
1913+Such bonds are hereby made securities which may properly and legally 1602
1914+be deposited with and received by any state or municipal officer or any 1603
1915+agency or political subdivision of the state for any purpose for which 1604
1916+the deposit of bonds or obligations of the state is now or may hereafter 1605
1917+be authorized by law. 1606 Governor's Bill No. 6443
1918+
1919+
1920+
1921+LCO No. 3267 53 of 79
1922+
1923+(m) The state covenants with the purchasers and all subsequent 1607
1924+owners and transferees of bonds issued by the state pursuant to this 1608
1925+section, in consideration of the acceptance of the payment for the bonds, 1609
1926+until such bonds, together with the interest thereon, with interest on any 1610
1927+unpaid installment of interest and all costs and expenses in connection 1611
1928+with any action or proceeding on behalf of such owners, are fully met 1612
1929+and discharged, or unless expressly permitted or otherwise authorized 1613
1930+by the terms of each contract and agreement made or entered into by or 1614
1931+on behalf of the state with or for the benefit of such owners, that the state 1615
1932+will impose, charge, raise, levy, collect and apply the pledged revenues 1616
1933+and other receipts, funds or moneys pledged for the payment of debt 1617
1934+service requirements as provided in this section, in such amounts as 1618
1935+may be necessary to pay such debt service requirements in each year in 1619
1936+which bonds are outstanding and further, that the state (1) will not limit 1620
1937+or alter the duties imposed on the Treasurer and other officers of the 1621
1938+state by law and by the proceedings authorizing the issuance of bonds 1622
1939+with respect to application of pledged revenues or other receipts, funds 1623
1940+or moneys pledged for the payment of debt service requirements as 1624
1941+provided in said sections; (2) will not alter the provisions establishing 1625
1942+collection accounts with the collection agent or the direction of pledged 1626
1943+revenues to such collection accounts, or the provisions applying such 1627
1944+pledged revenues to the debt service requirements with respect to bonds 1628
1945+or notes; (3) will not issue any bonds, notes or other evidences of 1629
1946+indebtedness, other than the bonds, having any rights arising out of said 1630
1947+sections or secured by any pledge of or other lien or charge on the 1631
1948+pledged revenues or other receipts, funds or moneys pledged for the 1632
1949+payment of debt service requirements as provided in said sections; (4) 1633
1950+will not create or cause to be created any lien or charge on such pledged 1634
1951+amounts, other than a lien or pledge created thereon pursuant to said 1635
1952+sections, provided nothing in this subsection shall prevent the state from 1636
1953+issuing evidences of indebtedness (A) which are secured by a pledge or 1637
1954+lien which is and shall on the face thereof be expressly subordinate and 1638
1955+junior in all respects to every lien and pledge created by or pursuant to 1639
1956+said sections; (B) for which the full faith and credit of the state is pledged 1640
1957+and which are not expressly secured by any specific lien or charge on 1641 Governor's Bill No. 6443
1958+
1959+
1960+
1961+LCO No. 3267 54 of 79
1962+
1963+such pledged amounts; or (C) which are secured by a pledge of or lien 1642
1964+on moneys or funds derived on or after such date as every pledge or lien 1643
1965+thereon created by or pursuant to said sections shall be discharged and 1644
1966+satisfied; (5) will carry out and perform, or cause to be carried out and 1645
1967+performed, every promise, covenant, agreement or contract made or 1646
1968+entered into by the state or on its behalf with the owners of any bonds; 1647
1969+(6) will not in any way impair the rights, exemptions or remedies of such 1648
1970+owners; and (7) will not limit, modify, rescind, repeal or otherwise alter 1649
1971+the rights or obligations of the appropriate officers of the state to impose, 1650
1972+maintain, charge or collect the taxes, fees, charges and other receipts 1651
1973+constituting the pledged revenues as may be necessary to produce 1652
1974+sufficient revenues to fulfill the terms of the proceedings authorizing the 1653
1975+issuance of the bonds; and provided further the state may change the 1654
1976+rate of withholding taxes, calculation of amounts to which the rate 1655
1977+applies, including exemptions and deductions so long as any such 1656
1978+change, had it been in effect, would not have reduced the withholding 1657
1979+taxes for any twelve consecutive months within the preceding fifteen 1658
1980+months to less than an amount three times the maximum debt service 1659
1981+payable on bonds issued and outstanding under this section for the 1660
1982+current or any future fiscal year. The State Bond Commission is 1661
1983+authorized to include this covenant of the state in any agreement with 1662
1984+the owner of any such bonds. 1663
1985+[(n) At the time of issuance of any credit revenue bonds pursuant to 1664
1986+this section, the Treasurer shall determine the amount of principal and 1665
1987+interest estimated to be saved by the issuance of credit revenue bonds 1666
1988+instead of general obligation bonds, as measured by the difference 1667
1989+between the stated principal and interest payable with respect to such 1668
1990+credit revenue bonds in each fiscal year during which bonds shall be 1669
1991+outstanding, and the principal and interest estimated to be payable in 1670
1992+each fiscal year during which such bonds would have been outstanding 1671
1993+had such bonds been issued as general obligation bonds payable over 1672
1994+the same period on the basis of equal amounts of principal stated to be 1673
1995+due in each fiscal year, subject to any specific adjustments which the 1674
1996+Treasurer may consider appropriate to take into account in the structure 1675 Governor's Bill No. 6443
1997+
1998+
1999+
2000+LCO No. 3267 55 of 79
2001+
2002+for a specific bond issue, provided in any fiscal year that the Treasurer 1676
2003+determines there are no savings, the estimated savings shall be zero for 1677
2004+such fiscal year. The Treasurer shall base such determination on such 1678
2005+factors as the Treasurer shall deem relevant, which may include advice 1679
2006+from financial advisors to the state, historical trading patterns of 1680
2007+outstanding state general obligation bonds and spreads to common 1681
2008+municipal bond indexes. The Treasurer shall set out such estimated 1682
2009+savings for each fiscal year during which each issue of credit revenue 1683
2010+bonds shall be stated to be outstanding in a bond determination which 1684
2011+shall be filed with the State Bond Commission at or prior to the issuance 1685
2012+of such credit revenue bonds, and such amounts shall be dedicated 1686
2013+savings for purposes of this section. 1687
2014+(o) For each fiscal year during which credit revenue bonds shall be 1688
2015+outstanding, there shall be transferred from the General Fund of the 1689
2016+state to the Budget Reserve Fund established pursuant to section 4-30a, 1690
2017+at the beginning of such fiscal year, an amount equal to the aggregate 1691
2018+dedicated savings for all such bonds issued and to be outstanding in 1692
2019+such fiscal year, unless the Governor declares an emergency or the 1693
2020+existence of extraordinary circumstances, in which the provisions of 1694
2021+section 4-85 are invoked, and at least three-fifths of the members of each 1695
2022+chamber of the General Assembly vote to diminish such required 1696
2023+transfer during the fiscal year for which the emergency or existence of 1697
2024+extraordinary circumstances are determined, or in such other 1698
2025+circumstances as may be permitted by the terms of the bonds, notes or 1699
2026+other obligations issued pursuant to this section. Amounts so 1700
2027+transferred shall not be available for appropriation for any other 1701
2028+purpose, but shall only be used as provided in section 4-30a. 1702
2029+(p) (1) Prior to July 1, 2021, net earnings of investments of proceeds 1703
2030+of bonds issued pursuant to section 3-20 or pursuant to this section and 1704
2031+accrued interest on the issuance of such bonds and premiums on the 1705
2032+issuance of such bonds shall be deposited to the credit of the General 1706
2033+Fund, after (A) payment of any expenses incurred by the Treasurer or 1707
2034+State Bond Commission in connection with such issuance, or (B) 1708
2035+application to interest on bonds, notes or other obligations of the state. 1709 Governor's Bill No. 6443
2036+
2037+
2038+
2039+LCO No. 3267 56 of 79
2040+
2041+(2) On and after July 1, 2021, notwithstanding subsection (f) of section 1710
2042+3-20, (A) net earnings of investments of proceeds of bonds issued 1711
2043+pursuant to section 3-20 or pursuant to this section and accrued interest 1712
2044+on the issuance of such bonds shall be deposited to the credit of the 1713
2045+General Fund, and (B) premiums, net of any original issue discount, on 1714
2046+the issuance of such bonds shall, after payment of any expenses incurred 1715
2047+by the Treasurer or State Bond Commission in connection with such 1716
2048+issuance, be deposited at the direction of the Treasurer to the credit of 1717
2049+an account or fund to fund all or a portion of any purpose or project 1718
2050+authorized by the State Bond Commission pursuant to any bond act up 1719
2051+to the amount authorized by the State Bond Commission, provided the 1720
2052+bonds for such purpose or project are unissued, and provided further 1721
2053+the certificate of determination the Treasurer files with the secretary of 1722
2054+the State Bond Commission for such authorized bonds sets forth the 1723
2055+amount of the deposit applied to fund each such purpose and project. 1724
2056+Upon such filing, the Treasurer shall record bonds in the amount of net 1725
2057+premiums credited to each purpose and project as set forth in the 1726
2058+certificate of determination of the Treasurer as deemed issued and 1727
2059+retired and the Treasurer shall not thereafter exercise authority to issue 1728
2060+bonds in such amount for such purpose or project. Upon such recording 1729
2061+by the Treasurer, such bonds shall be deemed to have been issued, 1730
2062+retired and no longer authorized for issuance or outstanding for the 1731
2063+purposes of section 3-21, and for the purpose of aligning the funding of 1732
2064+such authorized purpose and project with amounts generated by net 1733
2065+premiums, but shall not constitute an actual bond issuance or bond 1734
2066+retirement for any other purposes including, but not limited to, financial 1735
2067+reporting purposes.] 1736
2068+[(q)] (n) Any general obligation bonds or notes issued pursuant to 1737
2069+section 3-20 may be refunded by credit revenue bonds or notes issued 1738
2070+pursuant to this section, and any credit revenue bonds issued pursuant 1739
2071+to this section may be refunded by general obligation bonds or notes 1740
2072+issued pursuant to subsection (g) of section 3-20 in the manner, and 1741
2073+subject to the same conditions, as set out in subsection (g) of section 3-1742
2074+20. 1743 Governor's Bill No. 6443
2075+
2076+
2077+
2078+LCO No. 3267 57 of 79
2079+
2080+Sec. 26. Subparagraph (B) of subdivision (20) of subsection (a) of 1744
2081+section 12-701 of the general statutes is repealed and the following is 1745
2082+substituted in lieu thereof (Effective from passage and applicable to taxable 1746
2083+years commencing on or after January 1, 2021): 1747
2084+(B) There shall be subtracted therefrom: 1748
2085+(i) To the extent properly includable in gross income for federal 1749
2086+income tax purposes, any income with respect to which taxation by any 1750
2087+state is prohibited by federal law; 1751
2088+(ii) To the extent allowable under section 12-718, exempt dividends 1752
2089+paid by a regulated investment company; 1753
2090+(iii) To the extent properly includable in gross income for federal 1754
2091+income tax purposes, the amount of any refund or credit for 1755
2092+overpayment of income taxes imposed by this state, or any other state 1756
2093+of the United States or a political subdivision thereof, or the District of 1757
2094+Columbia; 1758
2095+(iv) To the extent properly includable in gross income for federal 1759
2096+income tax purposes and not otherwise subtracted from federal 1760
2097+adjusted gross income pursuant to clause (x) of this subparagraph in 1761
2098+computing Connecticut adjusted gross income, any tier 1 railroad 1762
2099+retirement benefits; 1763
2100+(v) To the extent any additional allowance for depreciation under 1764
2101+Section 168(k) of the Internal Revenue Code for property placed in 1765
2102+service after September 27, 2017, was added to federal adjusted gross 1766
2103+income pursuant to subparagraph (A)(ix) of this subdivision in 1767
2104+computing Connecticut adjusted gross income, twenty-five per cent of 1768
2105+such additional allowance for depreciation in each of the four 1769
2106+succeeding taxable years; 1770
2107+(vi) To the extent properly includable in gross income for federal 1771
2108+income tax purposes, any interest income from obligations issued by or 1772
2109+on behalf of the state of Connecticut, any political subdivision thereof, 1773 Governor's Bill No. 6443
2110+
2111+
2112+
2113+LCO No. 3267 58 of 79
2114+
2115+or public instrumentality, state or local authority, district or similar 1774
2116+public entity created under the laws of the state of Connecticut; 1775
2117+(vii) To the extent properly includable in determining the net gain or 1776
2118+loss from the sale or other disposition of capital assets for federal income 1777
2119+tax purposes, any gain from the sale or exchange of obligations issued 1778
2120+by or on behalf of the state of Connecticut, any political subdivision 1779
2121+thereof, or public instrumentality, state or local authority, district or 1780
2122+similar public entity created under the laws of the state of Connecticut, 1781
2123+in the income year such gain was recognized; 1782
2124+(viii) Any interest on indebtedness incurred or continued to purchase 1783
2125+or carry obligations or securities the interest on which is subject to tax 1784
2126+under this chapter but exempt from federal income tax, to the extent that 1785
2127+such interest on indebtedness is not deductible in determining federal 1786
2128+adjusted gross income and is attributable to a trade or business carried 1787
2129+on by such individual; 1788
2130+(ix) Ordinary and necessary expenses paid or incurred during the 1789
2131+taxable year for the production or collection of income which is subject 1790
2132+to taxation under this chapter but exempt from federal income tax, or 1791
2133+the management, conservation or maintenance of property held for the 1792
2134+production of such income, and the amortizable bond premium for the 1793
2135+taxable year on any bond the interest on which is subject to tax under 1794
2136+this chapter but exempt from federal income tax, to the extent that such 1795
2137+expenses and premiums are not deductible in determining federal 1796
2138+adjusted gross income and are attributable to a trade or business carried 1797
2139+on by such individual; 1798
2140+(x) (I) For taxable years commencing prior to January 1, 2019, for a 1799
2141+person who files a return under the federal income tax as an unmarried 1800
2142+individual whose federal adjusted gross income for such taxable year is 1801
2143+less than fifty thousand dollars, or as a married individual filing 1802
2144+separately whose federal adjusted gross income for such taxable year is 1803
2145+less than fifty thousand dollars, or for a husband and wife who file a 1804
2146+return under the federal income tax as married individuals filing jointly 1805 Governor's Bill No. 6443
2147+
2148+
2149+
2150+LCO No. 3267 59 of 79
2151+
2152+whose federal adjusted gross income for such taxable year is less than 1806
2153+sixty thousand dollars or a person who files a return under the federal 1807
2154+income tax as a head of household whose federal adjusted gross income 1808
2155+for such taxable year is less than sixty thousand dollars, an amount 1809
2156+equal to the Social Security benefits includable for federal income tax 1810
2157+purposes; 1811
2158+(II) For taxable years commencing prior to January 1, 2019, for a 1812
2159+person who files a return under the federal income tax as an unmarried 1813
2160+individual whose federal adjusted gross income for such taxable year is 1814
2161+fifty thousand dollars or more, or as a married individual filing 1815
2162+separately whose federal adjusted gross income for such taxable year is 1816
2163+fifty thousand dollars or more, or for a husband and wife who file a 1817
2164+return under the federal income tax as married individuals filing jointly 1818
2165+whose federal adjusted gross income from such taxable year is sixty 1819
2166+thousand dollars or more or for a person who files a return under the 1820
2167+federal income tax as a head of household whose federal adjusted gross 1821
2168+income for such taxable year is sixty thousand dollars or more, an 1822
2169+amount equal to the difference between the amount of Social Security 1823
2170+benefits includable for federal income tax purposes and the lesser of 1824
2171+twenty-five per cent of the Social Security benefits received during the 1825
2172+taxable year, or twenty-five per cent of the excess described in Section 1826
2173+86(b)(1) of the Internal Revenue Code; 1827
2174+(III) For the taxable year commencing January 1, 2019, and each 1828
2175+taxable year thereafter, for a person who files a return under the federal 1829
2176+income tax as an unmarried individual whose federal adjusted gross 1830
2177+income for such taxable year is less than seventy-five thousand dollars, 1831
2178+or as a married individual filing separately whose federal adjusted gross 1832
2179+income for such taxable year is less than seventy-five thousand dollars, 1833
2180+or for a husband and wife who file a return under the federal income tax 1834
2181+as married individuals filing jointly whose federal adjusted gross 1835
2182+income for such taxable year is less than one hundred thousand dollars 1836
2183+or a person who files a return under the federal income tax as a head of 1837
2184+household whose federal adjusted gross income for such taxable year is 1838
2185+less than one hundred thousand dollars, an amount equal to the Social 1839 Governor's Bill No. 6443
2186+
2187+
2188+
2189+LCO No. 3267 60 of 79
2190+
2191+Security benefits includable for federal income tax purposes; and 1840
2192+(IV) For the taxable year commencing January 1, 2019, and each 1841
2193+taxable year thereafter, for a person who files a return under the federal 1842
2194+income tax as an unmarried individual whose federal adjusted gross 1843
2195+income for such taxable year is seventy-five thousand dollars or more, 1844
2196+or as a married individual filing separately whose federal adjusted gross 1845
2197+income for such taxable year is seventy-five thousand dollars or more, 1846
2198+or for a husband and wife who file a return under the federal income tax 1847
2199+as married individuals filing jointly whose federal adjusted gross 1848
2200+income from such taxable year is one hundred thousand dollars or more 1849
2201+or for a person who files a return under the federal income tax as a head 1850
2202+of household whose federal adjusted gross income for such taxable year 1851
2203+is one hundred thousand dollars or more, an amount equal to the 1852
2204+difference between the amount of Social Security benefits includable for 1853
2205+federal income tax purposes and the lesser of twenty-five per cent of the 1854
2206+Social Security benefits received during the taxable year, or twenty-five 1855
2207+per cent of the excess described in Section 86(b)(1) of the Internal 1856
2208+Revenue Code; 1857
2209+(xi) To the extent properly includable in gross income for federal 1858
2210+income tax purposes, any amount rebated to a taxpayer pursuant to 1859
2211+section 12-746; 1860
2212+(xii) To the extent properly includable in the gross income for federal 1861
2213+income tax purposes of a designated beneficiary, any distribution to 1862
2214+such beneficiary from any qualified state tuition program, as defined in 1863
2215+Section 529(b) of the Internal Revenue Code, established and 1864
2216+maintained by this state or any official, agency or instrumentality of the 1865
2217+state; 1866
2218+(xiii) To the extent allowable under section 12-701a, contributions to 1867
2219+accounts established pursuant to any qualified state tuition program, as 1868
2220+defined in Section 529(b) of the Internal Revenue Code, established and 1869
2221+maintained by this state or any official, agency or instrumentality of the 1870
2222+state; 1871 Governor's Bill No. 6443
2223+
2224+
2225+
2226+LCO No. 3267 61 of 79
2227+
2228+(xiv) To the extent properly includable in gross income for federal 1872
2229+income tax purposes, the amount of any Holocaust victims' settlement 1873
2230+payment received in the taxable year by a Holocaust victim; 1874
2231+(xv) To the extent properly includable in gross income for federal 1875
2232+income tax purposes of an account holder, as defined in section 31-1876
2233+51ww, interest earned on funds deposited in th e individual 1877
2234+development account, as defined in section 31-51ww, of such account 1878
2235+holder; 1879
2236+(xvi) To the extent properly includable in the gross income for federal 1880
2237+income tax purposes of a designated beneficiary, as defined in section 1881
2238+3-123aa, interest, dividends or capital gains earned on contributions to 1882
2239+accounts established for the designated beneficiary pursuant to the 1883
2240+Connecticut Homecare Option Program for the Elderly established by 1884
2241+sections 3-123aa to 3-123ff, inclusive; 1885
2242+(xvii) To the extent properly includable in gross income for federal 1886
2243+income tax purposes, any income received from the United States 1887
2244+government as retirement pay for a retired member of (I) the Armed 1888
2245+Forces of the United States, as defined in Section 101 of Title 10 of the 1889
2246+United States Code, or (II) the National Guard, as defined in Section 101 1890
2247+of Title 10 of the United States Code; 1891
2248+(xviii) To the extent properly includable in gross income for federal 1892
2249+income tax purposes for the taxable year, any income from the discharge 1893
2250+of indebtedness in connection with any reacquisition, after December 1894
2251+31, 2008, and before January 1, 2011, of an applicable debt instrument or 1895
2252+instruments, as those terms are defined in Section 108 of the Internal 1896
2253+Revenue Code, as amended by Section 1231 of the American Recovery 1897
2254+and Reinvestment Act of 2009, to the extent any such income was added 1898
2255+to federal adjusted gross income pursuant to subparagraph (A)(xi) of 1899
2256+this subdivision in computing Connecticut adjusted gross income for a 1900
2257+preceding taxable year; 1901
2258+(xix) To the extent not deductible in determining federal adjusted 1902
2259+gross income, the amount of any contribution to a manufacturing 1903 Governor's Bill No. 6443
2260+
2261+
2262+
2263+LCO No. 3267 62 of 79
2264+
2265+reinvestment account established pursuant to section 32-9zz in the 1904
2266+taxable year that such contribution is made; 1905
2267+(xx) To the extent properly includable in gross income for federal 1906
2268+income tax purposes, (I) for the taxable year commencing January 1, 1907
2269+2015, ten per cent of the income received from the state teachers' 1908
2270+retirement system, (II) for the taxable years commencing January 1, 1909
2271+2016, to January 1, [2020] 2022, inclusive, twenty-five per cent of the 1910
2272+income received from the state teachers' retirement system, and (III) for 1911
2273+the taxable year commencing January 1, [2021] 2023, and each taxable 1912
2274+year thereafter, fifty per cent of the income received from the state 1913
2275+teachers' retirement system or the percentage, if applicable, pursuant to 1914
2276+clause (xxi) of this subparagraph; 1915
2277+(xxi) To the extent properly includable in gross income for federal 1916
2278+income tax purposes, except for retirement benefits under clause (iv) of 1917
2279+this subparagraph and retirement pay under clause (xvii) of this 1918
2280+subparagraph, for a person who files a return under the federal income 1919
2281+tax as an unmarried individual whose federal adjusted gross income for 1920
2282+such taxable year is less than seventy-five thousand dollars, or as a 1921
2283+married individual filing separately whose federal adjusted gross 1922
2284+income for such taxable year is less than seventy-five thousand dollars, 1923
2285+or as a head of household whose federal adjusted gross income for such 1924
2286+taxable year is less than seventy-five thousand dollars, or for a husband 1925
2287+and wife who file a return under the federal income tax as married 1926
2288+individuals filing jointly whose federal adjusted gross income for such 1927
2289+taxable year is less than one hundred thousand dollars, (I) for the taxable 1928
2290+year commencing January 1, 2019, fourteen per cent of any pension or 1929
2291+annuity income, (II) for the taxable [year] years commencing January 1, 1930
2292+2020, to January 1, 2022, inclusive, twenty-eight per cent of any pension 1931
2293+or annuity income, (III) for the taxable year commencing January 1, 1932
2294+[2021] 2023, forty-two per cent of any pension or annuity income, (IV) 1933
2295+for the taxable year commencing January 1, [2022] 2024, fifty-six per cent 1934
2296+of any pension or annuity income, (V) for the taxable year commencing 1935
2297+January 1, [2023] 2025, seventy per cent of any pension or annuity 1936
2298+income, (VI) for the taxable year commencing January 1, [2024] 2026, 1937 Governor's Bill No. 6443
2299+
2300+
2301+
2302+LCO No. 3267 63 of 79
2303+
2304+eighty-four per cent of any pension or annuity income, and (VII) for the 1938
2305+taxable year commencing January 1, [2025] 2027, and each taxable year 1939
2306+thereafter, any pension or annuity income; 1940
2307+(xxii) The amount of lost wages and medical, travel and housing 1941
2308+expenses, not to exceed ten thousand dollars in the aggregate, incurred 1942
2309+by a taxpayer during the taxable year in connection with the donation 1943
2310+to another person of an organ for organ transplantation occurring on or 1944
2311+after January 1, 2017; 1945
2312+(xxiii) To the extent properly includable in gross income for federal 1946
2313+income tax purposes, the amount of any financial assistance received 1947
2314+from the Crumbling Foundations Assistance Fund or paid to or on 1948
2315+behalf of the owner of a residential building pursuant to sections 8-442 1949
2316+and 8-443; 1950
2317+(xxiv) To the extent properly includable in gross income for federal 1951
2318+income tax purposes, the amount calculated pursuant to subsection (b) 1952
2319+of section 12-704g for income received by a general partner of a venture 1953
2320+capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 1954
2321+time; and 1955
2322+(xxv) To the extent any portion of a deduction under Section 179 of 1956
2323+the Internal Revenue Code was added to federal adjusted gross income 1957
2324+pursuant to subparagraph (A)(xiv) of this subdivision in computing 1958
2325+Connecticut adjusted gross income, twenty-five per cent of such 1959
2326+disallowed portion of the deduction in each of the four succeeding 1960
2327+taxable years. 1961
2328+Sec. 27. (Effective from passage) The provisions of section 12-722 of the 1962
2329+general statutes shall not apply to any additional tax due as a result of 1963
2330+the changes made to subparagraph (B) of subdivision (20) of subsection 1964
2331+(a) of section 12-701 of the general statutes pursuant to section 26 of this 1965
2332+act, for the taxable year commencing January 1, 2021. 1966
2333+Sec. 28. Subdivision (2) of subsection (b) of section 12-704c of the 1967
2334+general statutes is repealed and the following is substituted in lieu 1968 Governor's Bill No. 6443
2335+
2336+
2337+
2338+LCO No. 3267 64 of 79
2339+
2340+thereof (Effective from passage and applicable to taxable years commencing on 1969
2341+or after January 1, 2021): 1970
2342+(2) Notwithstanding the provisions of subsection (a) of this section, 1971
2343+for the taxable years commencing January 1, 2017, to January 1, [2020] 1972
2344+2022, inclusive, the credit under this section shall be allowed only for a 1973
2345+resident of this state (A) who has attained age sixty-five before the close 1974
2346+of the applicable taxable year, or (B) who files a return under the federal 1975
2347+income tax for the applicable taxable year validly claiming one or more 1976
2348+dependents. 1977
2349+Sec. 29. Subparagraph (L) of subdivision (1) of section 12-408 of the 1978
2350+general statutes is repealed and the following is substituted in lieu 1979
2351+thereof (Effective from passage): 1980
2352+(L) For calendar months commencing on or after July 1, [2021] 2023, 1981
2353+the commissioner shall deposit into the municipal revenue sharing 1982
2354+account established pursuant to section 4-66l seven and nine-tenths per 1983
2355+cent of the amounts received by the state from the tax imposed under 1984
2356+subparagraph (A) of this subdivision; and 1985
2357+Sec. 30. Subparagraph (K) of subdivision (1) of section 12-411 of the 1986
2358+general statutes is repealed and the following is substituted in lieu 1987
2359+thereof (Effective from passage): 1988
2360+(K) For calendar months commencing on or after July 1, [2021] 2023, 1989
2361+the commissioner shall deposit into said municipal revenue sharing 1990
2362+account seven and nine-tenths per cent of the amounts received by the 1991
2363+state from the tax imposed under subparagraph (A) of this subdivision; 1992
2364+and 1993
2365+Sec. 31. Subdivision (8) of subsection (b) of section 12-214 of the 1994
2366+general statutes is repealed and the following is substituted in lieu 1995
2367+thereof (Effective from passage): 1996
2368+(8) (A) With respect to income years commencing on or after January 1997
2369+1, 2018, [and prior to January 1, 2021,] any company subject to the tax 1998 Governor's Bill No. 6443
2370+
2371+
2372+
2373+LCO No. 3267 65 of 79
2374+
2375+imposed in accordance with subsection (a) of this section shall pay, for 1999
2376+such income year, except when the tax so calculated is equal to two 2000
2377+hundred fifty dollars, an additional tax in an amount equal to ten per 2001
2378+cent of the tax calculated under said subsection (a) for such income year, 2002
2379+without reduction of the tax so calculated by the amount of any credit 2003
2380+against such tax. The additional amount of tax determined under this 2004
2381+subsection for any income year shall constitute a part of the tax imposed 2005
2382+by the provisions of said subsection (a) and shall become due and be 2006
2383+paid, collected and enforced as provided in this chapter. 2007
2384+(B) Any company whose gross income for the income year was less 2008
2385+than one hundred million dollars shall not be subject to the additional 2009
2386+tax imposed under subparagraph (A) of this subdivision. This exception 2010
2387+shall not apply to taxable members of a combined group that files a 2011
2388+combined unitary tax return. 2012
2389+Sec. 32. Subdivision (8) of subsection (b) of section 12-219 of the 2013
2390+general statutes is repealed and the following is substituted in lieu 2014
2391+thereof (Effective from passage): 2015
2392+(8) (A) With respect to income years commencing on or after January 2016
2393+1, 2018, [and prior to January 1, 2021,] the additional tax imposed on any 2017
2394+company and calculated in accordance with subsection (a) of this section 2018
2395+shall, for such income year, except when the tax so calculated is equal to 2019
2396+two hundred fifty dollars, be increased by adding thereto an amount 2020
2397+equal to ten per cent of the additional tax so calculated for such income 2021
2398+year, without reduction of the tax so calculated by the amount of any 2022
2399+credit against such tax. The increased amount of tax payable by any 2023
2400+company under this section, as determined in accordance with this 2024
2401+subsection, shall become due and be paid, collected and enforced as 2025
2402+provided in this chapter. 2026
2403+(B) Any company whose gross income for the income year was less 2027
2404+than one hundred million dollars shall not be subject to the additional 2028
2405+tax imposed under subparagraph (A) of this subdivision. This exception 2029
2406+shall not apply to taxable members of a combined group that files a 2030 Governor's Bill No. 6443
2407+
2408+
2409+
2410+LCO No. 3267 66 of 79
2411+
2412+combined unitary tax return. 2031
2413+Sec. 33. Subdivision (1) of subsection (a) of section 12-219 of the 2032
2414+general statutes is repealed and the following is substituted in lieu 2033
2415+thereof (Effective from passage): 2034
2416+(a) (1) Each company subject to the provisions of this part shall pay 2035
2417+for the privilege of carrying on or doing business within the state, the 2036
2418+larger of the tax, if any, imposed by section 12-214, as amended by this 2037
2419+act, and the tax calculated under this subsection. The tax calculated 2038
2420+under this section shall be a tax of (A) three and one-tenth mills per 2039
2421+dollar for income years commencing prior to January 1, [2021] 2024, (B) 2040
2422+two and six-tenths mills per dollar for the income year commencing on 2041
2423+or after January 1, [2021] 2024, and prior to January 1, [2022] 2025, (C) 2042
2424+two and one-tenth mills per dollar for the income year commencing on 2043
2425+or after January 1, [2022] 2025, and prior to January 1, [2023] 2026, (D) 2044
2426+one and six-tenths mills per dollar for the income year commencing on 2045
2427+or after January 1, 2026, and prior to January 1, 2027, (E) one and one-2046
2428+tenth mills per dollar for the income year commencing on or after 2047
2429+January 1, [2023] 2027, and prior to January 1, [2024] 2028, and [(E)] (F) 2048
2430+zero mills per dollar for income years commencing on or after January 2049
2431+1, [2024] 2028, of the amount derived (i) by adding (I) the average value 2050
2432+of the issued and outstanding capital stock, including treasury stock at 2051
2433+par or face value, fractional shares, scrip certificates convertible into 2052
2434+shares of stock and amounts received on subscriptions to capital stock, 2053
2435+computed on the balances at the beginning and end of the taxable year 2054
2436+or period, the average value of surplus and undivided profit computed 2055
2437+on the balances at the beginning and end of the taxable year or period, 2056
2438+and (II) the average value of all surplus reserves computed on the 2057
2439+balances at the beginning and end of the taxable year or period, (ii) by 2058
2440+subtracting from the sum so calculated (I) the average value of any 2059
2441+deficit carried on the balance sheet computed on the balances at the 2060
2442+beginning and end of the taxable year or period, and (II) the average 2061
2443+value of any holdings of stock of private corporations including treasury 2062
2444+stock shown on the balance sheet computed on the balances at the 2063
2445+beginning and end of the taxable year or period, and (iii) by 2064 Governor's Bill No. 6443
2446+
2447+
2448+
2449+LCO No. 3267 67 of 79
2450+
2451+apportioning the remainder so derived between this and other states 2065
2452+under the provisions of section 12-219a, provided in no event shall the 2066
2453+tax so calculated exceed one million dollars or be less than two hundred 2067
2454+fifty dollars. 2068
2455+Sec. 34. (Effective from passage) The provisions of section 12-242d of the 2069
2456+general statutes shall not apply to any additional tax due as a result of 2070
2457+the changes made to subdivision (8) of subsection (b) of section 12-214 2071
2458+of the general statutes pursuant to section 31 of this act or to section 12-2072
2459+219 of the general statutes pursuant to sections 32 and 33 of this act, for 2073
2460+income years commencing on or after January 1, 2021, but prior to the 2074
2461+effective date of sections 32 to 34, inclusive, of this act. 2075
2462+Sec. 35. Subsection (d) of section 12-217n of the general statutes is 2076
2463+repealed and the following is substituted in lieu thereof (Effective from 2077
2464+passage and applicable to income years commencing on or after January 1, 2078
2465+2021): 2079
2466+(d) (1) The credit provided for by this section shall be allowed for any 2080
2467+income year commencing on or after January 1, 1993, provided any 2081
2468+credits allowed for income years commencing on or after January 1, 2082
2469+1993, and prior to January 1, 1995, may not be taken until income years 2083
2470+commencing on or after January 1, 1995, and, for the purposes of 2084
2471+subdivision (2) of this subsection, shall be treated as if the credit for each 2085
2472+such income year first became allowable in the first income year 2086
2473+commencing on or after January 1, 1995. 2087
2474+(2) No more than one-third of the amount of the credit allowable for 2088
2475+any income year may be included in the calculation of the amount of the 2089
2476+credit that may be taken in that income year. 2090
2477+(3) The total amount of the credit under subdivision (1) of this 2091
2478+subsection that may be taken for any income year may not exceed the 2092
2479+greater of (A) fifty per cent of the taxpayer's tax liability or in the case of 2093
2480+a combined return, fifty per cent of the combined tax liability, for such 2094
2481+income year, determined without regard to any credits allowed under 2095
2482+this section, and (B) the lesser of (i) two hundred per cent of the credit 2096 Governor's Bill No. 6443
2483+
2484+
2485+
2486+LCO No. 3267 68 of 79
2487+
2488+otherwise allowed under subsection (c) of this section for such income 2097
2489+year, and (ii) ninety per cent of the taxpayer's tax liability or in the case 2098
2490+of a combined return, ninety per cent of the combined liability for such 2099
2491+income year, determined without regard to any credits allowed under 2100
2492+this section. 2101
2493+(4) (A) Credits that are allowed under this section [but] for income 2102
2494+years commenting prior to January 1, 2021, that exceed the amount 2103
2495+permitted to be taken in an income year [by reason] pursuant to the 2104
2496+provisions of subdivision (1), (2) or (3) of this subsection [,] shall be 2105
2497+carried forward to each of the successive income years until such credits, 2106
2498+or applicable portion thereof, are fully taken. 2107
2499+(B) Credits that are allowed under this section for income years 2108
2500+commencing on or after January 1, 2021, that exceed the amount 2109
2501+permitted to be taken in an income year pursuant to the provisions of 2110
2502+subdivision (1), (2) or (3) of this subsection shall be carried forward to 2111
2503+each of the successive income years until such credits, or applicable 2112
2504+portion thereof, are fully taken. No credit or portion thereof allowed 2113
2505+under this section for income years commencing on or after January 1, 2114
2506+2021, shall be carried forward for a period of more than fifteen years. 2115
2507+(C) No credit [permitted] allowed under this section shall be taken in 2116
2508+any income year until the full amount of all allowable credits carried 2117
2509+forward to such year from any prior income year, commencing with the 2118
2510+earliest such prior year, that otherwise may be taken under subdivision 2119
2511+(2) of this subsection in that income year, have been fully taken. 2120
2512+Sec. 36. Subsection (a) of section 12-264 of the general statutes is 2121
2513+repealed and the following is substituted in lieu thereof (Effective July 1, 2122
2514+2021): 2123
2515+(a) Each (1) municipality, or department or agency thereof, or district 2124
2516+manufacturing, selling or distributing gas to be used for light, heat or 2125
2517+power, (2) company the principal business of which is manufacturing, 2126
2518+selling or distributing gas or steam to be used for light, heat or power, 2127
2519+including each foreign electric company, as defined in section 16-246f, 2128 Governor's Bill No. 6443
2520+
2521+
2522+
2523+LCO No. 3267 69 of 79
2524+
2525+that holds property in this state, and (3) company required to register 2129
2526+pursuant to section 16-258a, shall pay a quarterly tax upon gross 2130
2527+earnings from such operations in this state. Gross earnings from such 2131
2528+operations under subdivisions (1) and (2) of this subsection shall 2132
2529+include, as determined by the Commissioner of Revenue Services, (A) 2133
2530+all income included in operating revenue accounts in the uniform 2134
2531+systems of accounts prescribed by the Public Utilities Regulatory 2135
2532+Authority for operations within the taxable quarter and, with respect to 2136
2533+each such company, (B) all income identified in said uniform systems of 2137
2534+accounts as income from merchandising, jobbing and contract work, (C) 2138
2535+all revenues identified in said uniform systems of accounts as income 2139
2536+from nonutility operations, (D) all revenues identified in said uniform 2140
2537+systems of accounts as nonoperating retail income, and (E) receipts from 2141
2538+the sale of residuals and other by-products obtained in connection with 2142
2539+the production of gas, electricity or steam. Gross earnings from such 2143
2540+operations under subdivision (3) of this subsection shall be gross income 2144
2541+from the sales of natural gas. [, provided gross income shall not include 2145
2542+income from the sale of natural gas to an existing combined cycle facility 2146
2543+comprised of three gas turbines providing electric generation services, 2147
2544+as defined in section 16-1, with a total capacity of seven hundred 2148
2545+seventy-five megawatts, for use in the production of electricity.] Gross 2149
2546+earnings of a gas company, as defined in section 16-1, shall not include 2150
2547+income earned in a taxable quarter commencing prior to June 30, 2008, 2151
2548+from the sale of natural gas or propane as a fuel for a motor vehicle. No 2152
2549+deductions shall be allowed from such gross earnings for any 2153
2550+commission, rebate or other payment, except a refund resulting from an 2154
2551+error or overcharge and those specifically mentioned in section 12-265. 2155
2552+Gross earnings of a company, as described in subdivision (2) of this 2156
2553+subsection, shall not include income earned in any taxable quarter 2157
2554+commencing on or after July 1, 2000, from the sale of steam. 2158
2555+Sec. 37. (NEW) (Effective from passage and applicable to quarterly periods 2159
2556+commencing on or after July 1, 2021) Notwithstanding any provision of the 2160
2557+general statutes allowing for a higher amount, for quarterly periods 2161
2558+commencing on or after July 1, 2021, the amount of the tax credit or 2162 Governor's Bill No. 6443
2559+
2560+
2561+
2562+LCO No. 3267 70 of 79
2563+
2564+credits allowable against the tax imposed under chapter 212 of the 2163
2565+general statutes shall not exceed fifty and one one-hundredths per cent 2164
2566+of the amount of tax due from a taxpayer under said chapter with 2165
2567+respect to any such quarterly period of the taxpayer prior to the 2166
2568+application of such credit or credits. 2167
2569+Sec. 38. (Effective from passage) (a) As used in this section: 2168
2570+(1) "Person" has the same meaning as provided in section 12-1 of the 2169
2571+general statutes; 2170
2572+(2) "Affected taxable period" means any taxable period ending on or 2171
2573+before December 30, 2020; 2172
2574+(3) "Affected person" means a person owing any tax for an affected 2173
2575+taxable period; 2174
2576+(4) "Tax" means any tax imposed by any law of this state and required 2175
2577+to be collected by the department, other than the tax imposed under 2176
2578+chapter 222 of the general statutes on any licensee, as defined in 2177
2579+subdivision (1) of subsection (c) of section 12-486 of the general statutes; 2178
2580+(5) "Commissioner" means the Commissioner of Revenue Services; 2179
2581+and 2180
2582+(6) "Department" means the Department of Revenue Services. 2181
2583+(b) (1) The commissioner shall establish a tax amnesty program for 2182
2584+persons owing any tax for any affected taxable period. The tax amnesty 2183
2585+program shall be conducted during the period from November 1, 2021, 2184
2586+to January 31, 2022, inclusive. 2185
2587+(2) An amnesty application shall be prepared by the commissioner 2186
2588+that shall provide for specification by the affected person of the tax and 2187
2589+the affected taxable period for which amnesty is being sought under the 2188
2590+tax amnesty program. The commissioner may require that such amnesty 2189
2591+applications be filed electronically and that the amounts associated with 2190
2592+such applications be paid electronically. 2191 Governor's Bill No. 6443
2593+
2594+
2595+
2596+LCO No. 3267 71 of 79
2597+
2598+(3) Any affected person who files an amnesty application shall, 2192
2599+subject to review of such application by the commissioner, be eligible 2193
2600+for a reduction of interest due on the amount of tax owed by such person 2194
2601+for an affected taxable period. Upon compliance with all requirements 2195
2602+of the tax amnesty program under this section, an affected person whose 2196
2603+application is granted by the commissioner shall be entitled to a 2197
2604+seventy-five per cent reduction in interest that would otherwise be 2198
2605+owed on the tax such person owes for the affected taxable period. 2199
2606+(4) The tax amnesty program shall provide that, upon the filing of an 2200
2607+amnesty application by an affected person and payment by such person 2201
2608+of the tax and interest determined to be due by the commissioner from 2202
2609+such person for an affected taxable period, the commissioner shall not 2203
2610+seek to collect any civil penalties that may be applicable and shall not 2204
2611+seek criminal prosecution for any affected person for an affected taxable 2205
2612+period for which amnesty has been granted. 2206
2613+(5) An amnesty application, if filed by an affected person and if 2207
2614+granted by the commissioner, shall constitute an express and absolute 2208
2615+relinquishment by the affected person of all of the affected person's 2209
2616+administrative and judicial rights of appeal that have not run or 2210
2617+otherwise expired as of the date payment is made for an affected taxable 2211
2618+period, and no payment made by an affected person pursuant to this 2212
2619+section for an affected taxable period shall be refunded or credited to 2213
2620+such person. The commissioner shall not consider any request to 2214
2621+exercise the authority granted to the commissioner under section 12-39s 2215
2622+of the general statutes in connection with any amnesty application 2216
2623+granted by the commissioner under this section. 2217
2624+(6) Each affected person who files an amnesty application during the 2218
2625+period the tax amnesty program under this section is conducted shall 2219
2626+pay all amounts due to the state under such program with such 2220
2627+application. Any person who fails to pay all such amounts due shall be 2221
2628+ineligible for amnesty under such program. 2222
2629+(7) No amnesty application shall be accepted for an affected taxable 2223 Governor's Bill No. 6443
2630+
2631+
2632+
2633+LCO No. 3267 72 of 79
2634+
2635+period in which the liability for such period has already been paid, 2224
2636+unless such application is filed to report an additional amount of tax for 2225
2637+such period. In no event shall an amnesty application result in a refund 2226
2638+or credit of any amount of tax, penalty or interest previously paid. 2227
2639+(c) Amnesty shall not be granted pursuant to subsection (b) of this 2228
2640+section to any affected person who (1) is a party to any criminal 2229
2641+investigation or to any criminal litigation that is pending on July 1, 2021, 2230
2642+in any court of the United States or this state, (2) is a party to a closing 2231
2643+agreement with the commissioner, (3) has made an offer of compromise 2232
2644+that has been accepted by the commissioner, or (4) is a party to a 2233
2645+managed audit agreement. 2234
2646+(d) The provisions of subsection (d) of section 12-35i of the general 2235
2647+statutes shall not apply to an affected taxable period that ends on or 2236
2648+before November 30, 2012, for which no return has been previously 2237
2649+filed, if such period is the subject of or included in any amnesty 2238
2650+application granted by the commissioner under this section, provided 2239
2651+the affected person pays all amounts due to the state in connection with 2240
2652+such application in accordance with the provisions of subdivision (6) of 2241
2653+subsection (b) of this section. 2242
2654+(e) Any person who wilfully delivers or discloses to the commissioner 2243
2655+or the commissioner's authorized agent any application, list return, 2244
2656+account, statement or other document, known by such person to be 2245
2657+fraudulent or false in any material matter, shall be ineligible for the tax 2246
2658+amnesty program under this section and may, in addition to any other 2247
2659+penalty provided by law, be fined not more than five thousand dollars 2248
2660+or imprisoned not more than five years nor less than one year, or both. 2249
2661+(f) Notwithstanding any provision of the general statutes, the 2250
2662+commissioner may do all things necessary to provide for the timely 2251
2663+implementation of this section. 2252
2664+Sec. 39. (Effective from passage) Notwithstanding the provisions of 2253
2665+section 4-66k of the general statutes, as amended by this act, the 2254
2666+Comptroller shall transfer from the regional planning incentive account, 2255 Governor's Bill No. 6443
2667+
2668+
2669+
2670+LCO No. 3267 73 of 79
2671+
2672+established pursuant to said section: (1) On or before June 30, 2022, three 2256
2673+million dollars, to be credited to the resources of the General Fund for 2257
2674+the fiscal year ending June 30, 2022; and (2) on or before June 30, 2023, 2258
2675+three million dollars, to be credited to the resources of the General Fund 2259
2676+for the fiscal year ending June 30, 2023. 2260
2677+Sec. 40. Section 4-66k of the general statutes is repealed and the 2261
2678+following is substituted in lieu thereof (Effective from passage): 2262
2679+(a) There is established an account to be known as the "regional 2263
2680+planning incentive account" which shall be a separate, nonlapsing 2264
2681+account within the General Fund. The account shall contain any moneys 2265
2682+required by law to be deposited in the account. [Except as provided in 2266
2683+subsection (d) of this section, moneys,] Moneys in the account shall be 2267
2684+expended by the Secretary of the Office of Policy and Management in 2268
2685+accordance with subsection (b) of this section for the purposes of first 2269
2686+providing funding to regional planning organizations in accordance 2270
2687+with the provisions of subsections (b) and (c) of this section and then to 2271
2688+providing grants under the regional performance incentive program 2272
2689+established pursuant to section 4-124s. 2273
2690+(b) For the fiscal year ending June 30, 2014, funds from the regional 2274
2691+planning incentive account shall be distributed to each regional 2275
2692+planning organization, as defined in section 4-124i, revision of 1958, 2276
2693+revised to January 1, 2013, in the amount of one hundred twenty-five 2277
2694+thousand dollars. Any regional council of governments that is 2278
2695+comprised of any two or more regional planning organizations that 2279
2696+voluntarily consolidate on or before December 31, 2013, shall receive an 2280
2697+additional payment in an amount equal to the amount the regional 2281
2698+planning organizations would have received if such regional planning 2282
2699+organizations had not voluntarily consolidated. 2283
2700+(c) Beginning in the fiscal year ending June 30, 2015, and annually 2284
2701+thereafter, funds from the regional planning incentive account shall be 2285
2702+distributed to each regional council of governments formed pursuant to 2286
2703+section 4-124j, in the amount of one hundred twenty-five thousand 2287 Governor's Bill No. 6443
2704+
2705+
2706+
2707+LCO No. 3267 74 of 79
2708+
2709+dollars plus fifty cents per capita, using population information from 2288
2710+the most recent federal decennial census. Any regional council of 2289
2711+governments that is comprised of any two or more regional planning 2290
2712+organizations, as defined in section 4-124i, revision of 1958, revised to 2291
2713+January 1, 2013, that voluntarily consolidated on or before December 31, 2292
2714+2013, shall receive a payment in the amount of one hundred twenty-five 2293
2715+thousand dollars for each such regional planning organization that 2294
2716+voluntarily consolidated on or before said date. 2295
2717+[(d) There is established a regionalization subaccount within the 2296
2718+regional planning incentive account. If the Connecticut Lottery 2297
2719+Corporation offers online its existing lottery draw games through the 2298
2720+corporation's Internet web site, online service or mobile application, the 2299
2721+revenue from such online offering that exceeds an amount equivalent to 2300
2722+the costs of the debt-free community college program under section 10a-2301
2723+174 shall be deposited in the subaccount, or, if such online offering is not 2302
2724+established, the amount provided under subsection (b) of section 364 of 2303
2725+public act 19-117 for regionalization initiatives shall be deposited in the 2304
2726+subaccount. Moneys in the subaccount shall be expended only for the 2305
2727+purposes recommended by the task force established under section 4-2306
2728+66s.] 2307
2729+Sec. 41. Subsection (a) of section 4-66s of the general statutes is 2308
2730+repealed and the following is substituted in lieu thereof (Effective from 2309
2731+passage): 2310
2732+(a) There is established a task force to study ways to encourage 2311
2733+greater and improved collaboration among the state and municipal 2312
2734+governments and regional bodies. Such study shall include, but not be 2313
2735+limited to, (1) the examination of functions, activities or services, 2314
2736+currently performed by municipalities individually, that might be more 2315
2737+efficiently performed by the Office of Policy and Management on behalf 2316
2738+of municipalities willing to opt in or opt out of accepting such 2317
2739+performance on their behalf, (2) the examination of functions, activities 2318
2740+or services, currently performed by the state or municipalities that 2319
2741+might be provided in a more efficient, high-quality, cost-effective or 2320 Governor's Bill No. 6443
2742+
2743+
2744+
2745+LCO No. 3267 75 of 79
2746+
2747+responsive manner by regional councils of governments, regional 2321
2748+educational service centers or other similar regional bodies that are 2322
2749+responsive to residents, (3) cost savings of government services, 2323
2750+including, but not limited to, joint purchasing, for a municipality and its 2324
2751+local or regional school district, (4) cost savings through the sharing of 2325
2752+government services, including, but not limited to, joint purchasing, 2326
2753+among municipalities, (5) the standardization and alignment of various 2327
2754+regions of the state, and (6) analyses of any other initiatives that might 2328
2755+facilitate the delivery of services in a more efficient, high-quality, cost-2329
2756+effective or responsive manner. [, and (7) a recommendation of the 2330
2757+division, if any, of revenue in the regionalization subaccount within the 2331
2758+regional planning incentive account established under section 4-66k, 2332
2759+between the Office of Policy and Management and the regional councils 2333
2760+of governments, regional educational service centers or similar regional 2334
2761+bodies for the purposes of subdivisions (1) and (2) of this subsection.] 2335
2762+Any initiative recommended to be undertaken by the task force shall be 2336
2763+offered to municipalities on a voluntary basis. 2337
2764+Sec. 42. (Effective from passage) The Comptroller shall transfer from the 2338
2765+General Fund to the Tourism Fund established under section 10-395b of 2339
2766+the general statutes: (1) For the fiscal year ending June 30, 2021, nine 2340
2767+million eight hundred thousand dollars; and (2) for the fiscal year 2341
2768+ending June 30, 2022, three million one hundred thousand dollars. 2342
2769+Sec. 43. (Effective from passage) For the fiscal years ending June 30, 2343
2770+2022, and June 30, 2023, the amount deemed appropriated pursuant to 2344
2771+sections 3-20i and 3-115b of the general statutes in each of said fiscal 2345
2772+years shall be one dollar. 2346
2773+Sec. 44. (Effective from passage) Notwithstanding the provisions of 2347
2774+section 4-30a of the general statutes, the Comptroller shall transfer from 2348
2775+the Budget Reserve Fund: (1) On July 1, 2021, seven hundred seventy-2349
2776+five million dollars, to be credited to the resources of the General Fund 2350
2777+and used as revenue for the fiscal year ending June 30, 2022; and (2) on 2351
2778+July 1, 2022, nine hundred seventy-five million dollars, to be credited to 2352
2779+the resources of the General Fund and used as revenue for the fiscal year 2353 Governor's Bill No. 6443
2780+
2781+
2782+
2783+LCO No. 3267 76 of 79
2784+
2785+ending June 30, 2023. The amount of a transfer set forth in this section 2354
2786+shall be reduced by the amount of any federal aid received by the state 2355
2787+that is used to reduce state budgetary requirements for such fiscal year. 2356
2788+Sec. 45. Subsection (a) of section 10a-8c of the general statutes is 2357
2789+repealed and the following is substituted in lieu thereof (Effective from 2358
2790+passage): 2359
2791+(a) Except as provided in subsection (b) of this section, 2360
2792+notwithstanding the provisions of sections 10a-77a, 10a-99a, 10a-109c, 2361
2793+10a-109i and 10a-143a, no funds shall be appropriated to the Office of 2362
2794+Higher Education for grants pursuant to subdivision (2) of subsection 2363
2795+(a) of section 10a-77a, subdivision (2) of subsection (a) of section 10a-2364
2796+99a, subdivision (2) of subsection (b) of section 10a-109i and subdivision 2365
2797+(2) of subsection (a) of section 10a-143a, [: (1) Until] until such time as 2366
2798+the amount in the Budget Reserve Fund, established in section 4-30a, 2367
2799+equals [ten] fifteen per cent of the net General Fund appropriations for 2368
2800+the fiscal year in progress, [(2)] and provided further, (1) the amount of 2369
2801+the grants appropriated shall be reduced proportionately if the amount 2370
2802+available is less than the amount required for such grants, and [(3)] (2) 2371
2803+the amount of funds available to be appropriated during any fiscal year 2372
2804+for such grants shall not exceed twenty-five million dollars. 2373
2805+Sec. 46. (NEW) (Effective from passage) (a) The Attorney General may, 2374
2806+pursuant to the Attorney General's authority under section 3-125 of the 2375
2807+general statutes, enter into any agreement concerning any state-wide 2376
2808+opioid claim, including an agreement to compromise, release, waive or 2377
2809+otherwise settle such claim, on behalf of the state and any political 2378
2810+subdivisions. For the purposes of this section, "state-wide opioid claim" 2379
2811+means any claim the state asserts or could assert concerning the 2380
2812+manufacturing, marketing, distributing or selling of opioids, or 2381
2813+activities related thereto. 2382
2814+(b) Notwithstanding any provision of the general statutes, no 2383
2815+claimant may assert any state-wide opioid claim for which the state has 2384
2816+entered into an agreement to compromise, release, waive or otherwise 2385 Governor's Bill No. 6443
2817+
2818+
2819+
2820+LCO No. 3267 77 of 79
2821+
2822+settle such claim pursuant to this section. 2386
2823+Sec. 47. Section 368 of public act 19-117 is repealed. (Effective from 2387
2824+passage) 2388
32852825 This act shall take effect as follows and shall amend the following
32862826 sections:
32872827
3288-Section 1 from passage New section Substitute Bill No. 6443
3289-
3290-
3291-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06443-
3292-R01-HB.docx }
3293-89 of 90
3294-
3295-Sec. 2 January 1, 2022, and
3296-applicable to taxable years
3297-commencing on or after
3298-January 1, 2022
3299-12-701(a)(20)(B)
3300-Sec. 3 January 1, 2022, and
3301-applicable to taxable years
3302-commencing on or after
3303-January 1, 2022
3304-New section
3305-Sec. 4 January 1, 2022 New section
3306-Sec. 5 July 1, 2021, and
3307-applicable to taxable years
3308-commencing on or after
3309-January 1, 2021
3310-12-704e
3311-Sec. 6 July 1, 2021, and
3312-applicable to the estates of
3313-decedents dying on or after
3314-January 1, 2021
3315-12-391(i)
2828+Section 1 July 1, 2022 1-1j
2829+Sec. 2 July 1, 2022 3-99a(g)
2830+Sec. 3 July 1, 2022 14-11i
2831+Sec. 4 July 1, 2022 19a-88(g)
2832+Sec. 5 July 1, 2022 45a-113b
2833+Sec. 6 July 1, 2022 51-193b
33162834 Sec. 7 from passage New section
33172835 Sec. 8 from passage 12-806(b)(4)
33182836 Sec. 9 from passage 12-806(b)(13)
33192837 Sec. 10 from passage 12-810
3320-Sec. 11 from passage 52-553
3321-Sec. 12 from passage 52-554
3322-Sec. 13 July 1, 2021 New section
3323-Sec. 14 from passage 12-214(b)(8)
3324-Sec. 15 from passage 12-219(b)(8)
3325-Sec. 16 from passage New section
3326-Sec. 17 from passage and
3327-applicable to income years
2838+Sec. 11 from passage 12-818
2839+Sec. 12 from passage 52-553
2840+Sec. 13 from passage 52-554
2841+Sec. 14 July 1, 2021, and
2842+applicable to calendar
2843+quarters commencing on or
2844+after July 1, 2021
2845+12-263p
2846+Sec. 15 July 1, 2021, and
2847+applicable to calendar
2848+quarters commencing on or
2849+after July 1, 2021
2850+New section
2851+Sec. 16 July 1, 2021 12-263i
2852+Sec. 17 July 1, 2021, and
2853+applicable to calendar
2854+quarters commencing on or
2855+after July 1, 2021
2856+12-263s
2857+Sec. 18 July 1, 2021, and
2858+applicable to calendar
2859+quarters commencing on or
2860+after July 1, 2021
2861+12-263t
2862+Sec. 19 July 1, 2021, and
2863+applicable to calendar
2864+quarters commencing on or
2865+after July 1, 2021
2866+12-263u Governor's Bill No. 6443
2867+
2868+
2869+
2870+LCO No. 3267 78 of 79
2871+
2872+Sec. 20 July 1, 2021 12-263v
2873+Sec. 21 July 1, 2021, and
2874+applicable to calendar
2875+quarters commencing on or
2876+after July 1, 2021
2877+12-263x
2878+Sec. 22 July 1, 2021 3-114s
2879+Sec. 23 from passage 19a-37f
2880+Sec. 24 from passage and
2881+applicable to calendar
2882+months commencing on or
2883+after January 1, 2023
2884+New section
2885+Sec. 25 from passage 3-20j
2886+Sec. 26 from passage and
2887+applicable to taxable years
33282888 commencing on or after
33292889 January 1, 2021
3330-12-217zz(a)
3331-Sec. 18 July 1, 2021 38a-88a(d) and (e)
3332-Sec. 19 January 1, 2022 12-217jj
3333-Sec. 20 June 30, 2021 12-541
3334-Sec. 21 July 1, 2021 12-7b(a)
3335-Sec. 22 July 1, 2021 32-285(a)
3336-Sec. 23 July 1, 2021 32-285(f)(2)
3337-Sec. 24 July 1, 2021 32-656(i)
3338-Sec. 25 January 1, 2022 New section
3339-Sec. 26 January 1, 2022 12-701(a)(20)(B)
3340-Sec. 27 January 1, 2022 New section Substitute Bill No. 6443
3341-
3342-
3343-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06443-
3344-R01-HB.docx }
3345-90 of 91
3346-
2890+12-701(a)(20)(B)
2891+Sec. 27 from passage New section
33472892 Sec. 28 from passage and
33482893 applicable to taxable years
33492894 commencing on or after
33502895 January 1, 2021
33512896 12-704c(b)(2)
3352-Sec. 29 July 1, 2021, and
3353-applicable to sales
3354-occurring on or after July
3355-1, 2021
3356-12-412
3357-Sec. 30 July 1, 2021, and
3358-applicable to sales
3359-occurring on or after July
3360-1, 2021
2897+Sec. 29 from passage 12-408(1)(L)
2898+Sec. 30 from passage 12-411(1)(K)
2899+Sec. 31 from passage 12-214(b)(8)
2900+Sec. 32 from passage 12-219(b)(8)
2901+Sec. 33 from passage 12-219(a)(1)
2902+Sec. 34 from passage New section
2903+Sec. 35 from passage and
2904+applicable to income years
2905+commencing on or after
2906+January 1, 2021
2907+12-217n(d)
2908+Sec. 36 July 1, 2021 12-264(a)
2909+Sec. 37 from passage and
2910+applicable to quarterly
2911+periods commencing on or
2912+after July 1, 2021
33612913 New section
3362-Sec. 31 June 1, 2021, and
3363-applicable to calendar
3364-quarters commencing on or
3365-after July 1, 2020
3366-12-263i
3367-Sec. 32 July 1, 2021, and
3368-applicable to sales
3369-occurring on or after July
3370-1, 2021
3371-12-407(a)(2)
3372-Sec. 33 July 1, 2021, and
3373-applicable to sales
3374-occurring on or after July
3375-1, 2021
3376-12-407(a)
3377-Sec. 34 July 1, 2021, and
3378-applicable to sales
3379-occurring on or after July
3380-1, 2021
3381-12-408(1)(J)
3382-Sec. 35 July 1, 2021, and
3383-applicable to sales
3384-occurring on or after July
3385-1, 2021
3386-New section
3387-Sec. 36 July 1, 2022 1-1j
3388-Sec. 37 July 1, 2022 3-99a(g)
3389-Sec. 38 July 1, 2022 14-11i
3390-Sec. 39 July 1, 2022 19a-88(g)
3391-Sec. 40 July 1, 2022 45a-113b
3392-Sec. 41 July 1, 2022 51-193b
3393-Sec. 42 from passage and
3394-applicable to calendar
3395-months commencing on or
3396-after January 1, 2023
3397-New section Substitute Bill No. 6443
3398-
3399-
3400-LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06443-
3401-R01-HB.docx }
3402-91 of 91
3403-
3404-Sec. 43 from passage New section
2914+Sec. 38 from passage New section
2915+Sec. 39 from passage New section
2916+Sec. 40 from passage 4-66k
2917+Sec. 41 from passage 4-66s(a)
2918+Sec. 42 from passage New section
2919+Sec. 43 from passage New section Governor's Bill No. 6443
2920+
2921+
2922+
2923+LCO No. 3267 79 of 79
2924+
34052925 Sec. 44 from passage New section
3406-Sec. 45 from passage New section
2926+Sec. 45 from passage 10a-8c(a)
34072927 Sec. 46 from passage New section
3408-Sec. 47 from passage New section
3409-
3410-
3411-FIN Joint Favorable Subst.
2928+Sec. 47 from passage Repealer section
2929+
2930+Statement of Purpose:
2931+To implement the Governor's budget recommendations.
2932+
2933+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
2934+that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
2935+underlined.]
34122936