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