LCO No. 5638 1 of 64
General Assembly Raised Bill No. 6658
January Session, 2021
LCO No. 5638
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING TH E LEGISLATIVE COMMISSIONERS'
RECOMMENDATIONS FOR MINOR AND TECHNICAL REVISIONS TO
THE TAX AND RELATED STATUTES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 12-35 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2021): 3
(a) (1) Wherever used in this chapter, unless otherwise provided, 4
"state collection agency" includes the Treasurer, the Commissioner of 5
Revenue Services and any other state official, board or commission 6
authorized by law to collect taxes payable to the state and any duly 7
appointed deputy of any such official, board or commission; "tax" 8
includes not only the principal of any tax but also all interest, penalties, 9
fees and other charges added thereto by law; and "serving officer" 10
includes any state marshal, constable or employee of such state 11
collection agency designated for such purpose by a state collection 12
agency and any person so designated by the Labor Commissioner. 13 Raised Bill No. 6658
LCO No. 5638 2 of 64
(2) Upon the failure of any person to pay any tax, except any tax 14
under chapter 216, due the state within thirty days from its due date, the 15
state collection agency charged by law with its collection shall add 16
thereto such penalty or interest or both as are prescribed by law, 17
provided, (A) if any statutory penalty is not specified, there may be 18
added a penalty in the amount of ten per cent of the whole or such part 19
of the principal of the tax as is unpaid or fifty dollars, whichever amount 20
is greater, and [provided,] (B) if any statutory interest is not specified, 21
there shall be added interest at the rate of one per cent of the whole or 22
such part of the principal of the tax as is unpaid for each month or 23
fraction thereof, from the due date of such tax to the date of payment. 24
(3) Upon the failure of any person to pay any tax, except any tax 25
under chapter 216, due within thirty days of its due date, the state 26
collection agency charged by law with the collection of such tax may 27
make out and sign a warrant directed to any serving officer for distraint 28
upon any property of such person found within the state, whether real 29
or personal. An itemized bill shall be attached thereto, certified by the 30
state collection agency issuing such warrant as a true statement of the 31
amount due from such person. 32
(A) Such warrant shall have the same force and effect as an execution 33
issued pursuant to chapter 906. Such warrant may be levied on any real 34
property or tangible or intangible personal property of such person, and 35
sale made pursuant to such warrant in the same manner and with the 36
same force and effect as a levy of sale pursuant to an execution. In 37
addition thereto, if such warrant has been issued by the Commissioner 38
of Revenue Services, [his] the commissioner's deputy, the Labor 39
Commissioner, the executive director of the Employment Security 40
Division or any person in the Employment Security Division in a 41
position equivalent to or higher than the position presently held by a 42
revenue examiner four, said serving officer shall be authorized to place 43
a keeper in any place of business and it shall be such keeper's duty to 44
secure the income of such business for the state and, when it is in the 45
best interest of the state, to force cessation of such business operation. In 46
addition, the Attorney General may collect any such tax by civil action. 47 Raised Bill No. 6658
LCO No. 5638 3 of 64
Each serving officer so receiving a warrant shall make a return with 48
respect to such warrant to the appropriate collection agency within a 49
period of ten days following receipt of such warrant. 50
(B) Each serving officer shall collect from such person, in addition to 51
the amount shown on such warrant, [his] such officer's fees and charges, 52
which shall be twice those authorized by statute for serving officers, 53
provided the minimum charge shall be five dollars and money collected 54
pursuant to such warrant shall be first applied to the amount of any fees 55
and charges of the serving officer. In the case of an employee of the state 56
acting as a serving officer the fees and charges collected by such 57
employee shall inure to the benefit of the state. 58
(4) For the purposes of this section, "keeper" means a person who has 59
been given authority by an officer authorized to serve a tax warrant to 60
act in the state's interest to secure the income of a business for the state 61
and, when it is in the best interest of the state, to force the cessation of 62
such business's operation, upon the failure of such business to pay taxes 63
owed to the state. 64
Sec. 2. Section 12-40 of the general statutes is repealed and the 65
following is substituted in lieu thereof (Effective October 1, 2021): 66
The assessors in each town, except as otherwise specially provided 67
by law, shall, on or before the fifteenth day of October annually, post on 68
the signposts therein, if any, or at some other exterior place near the 69
office of the town clerk, or publish in a newspaper published in such 70
town or, if no newspaper is published in such town, then in any 71
newspaper published in the state having a general circulation in such 72
town, a notice requiring all persons therein liable to pay taxes to bring 73
in a declaration of the taxable personal property belonging to them on 74
the first day of October in that year in accordance with section [12-42] 75
12-41 and the taxable personal property for which a declaration is 76
required in accordance with section 12-43, as amended by this act. 77
Sec. 3. Section 12-43 of the general statutes is repealed and the 78
following is substituted in lieu thereof (Effective October 1, 2021): 79 Raised Bill No. 6658
LCO No. 5638 4 of 64
(a) Each owner of tangible personal property located in any town for 80
three months or more during the assessment year immediately 81
preceding any assessment day, who is a nonresident of such town, shall 82
file a declaration of such personal property with the assessors of the 83
town in which the same is located on such assessment day, if located in 84
such town for three months or more in such year, otherwise, in the town 85
in which such property is located for the three months or more in such 86
year nearest to such assessment day, under the same provisions as apply 87
to residents, and such personal property shall not be liable to taxation 88
in any other town in this state. The declaration of each nonresident 89
taxpayer shall contain the nonresident's post-office and street address. 90
(b) At least thirty days before the expiration of the time for filing such 91
declaration, the assessors shall mail blank declaration forms to each 92
nonresident, or to such nonresident's attorney or agent having custody 93
of the nonresident's taxable property, or send such forms electronically 94
to such nonresident's electronic mail address or the electronic mail 95
address of such nonresident's attorney or agent, provided such 96
nonresident has requested, in writing, to receive such forms 97
electronically. If the identity or mailing address of a nonresident 98
taxpayer is not discovered until after the expiration of time for filing a 99
declaration, the assessor shall, not later than ten days after determining 100
the identity or mailing address, mail a declaration form to the 101
nonresident taxpayer. [Said] Such taxpayer shall file the declaration not 102
later than fifteen days after the date such declaration form is sent. Each 103
nonresident taxpayer who fails to file a declaration in accordance with 104
the provisions of this section shall be subject to the penalty provided in 105
subsection (e) of section 12-41. 106
(c) As used in this section, "nonresident" means a person who does 107
not reside in the town in which such person's tangible personal property 108
is located on the assessment day, or a company, corporation, limited 109
liability company, partnership or any other type of business enterprise 110
that does not have an established place for conducting business in such 111
town on the assessment day. 112 Raised Bill No. 6658
LCO No. 5638 5 of 64
Sec. 4. Section 12-44 of the general statutes is repealed and the 113
following is substituted in lieu thereof (Effective October 1, 2021): 114
Twenty-five per cent of the amount of the valuation of any property 115
taxable by any city, borough, school district, fire district or other 116
municipal association which bases its grand list upon that of the town 117
in which it is situated shall be added to such amount on the assessment 118
list of such municipal association in each case in which twenty-five per 119
cent has been added to such amount by such town for the failure to file 120
a list as prescribed by section [12-42] 12-41 or 12-43, as amended by this 121
act; but such penalty shall not be in addition to that previously imposed 122
in the town assessment. 123
Sec. 5. Section 12-54 of the general statutes is repealed and the 124
following is substituted in lieu thereof (Effective October 1, 2021): 125
Each person liable to give in a declaration of such person's taxable 126
tangible personal property and failing to do so may, within sixty days 127
after the expiration of the time fixed by law for filing such declaration, 128
be notified in writing by the [assessors] assessor or a majority of [them] 129
the board of assessors to appear before them to be examined under oath 130
as to such person's property liable to taxation and for the purpose of 131
verifying a declaration made out by them under the provisions of 132
section [12-42] 12-41. Any person who wilfully neglects or refuses to 133
appear before the assessors and make oath as to such person's taxable 134
property within ten days after having been so notified or who, having 135
appeared, refuses to answer shall be fined not more than one thousand 136
dollars. The assessors shall promptly notify the proper prosecuting 137
officers of any violation of any provision of this section. Nothing in this 138
section shall be construed to preclude the assessor from performing an 139
audit of such person's taxable personal property, as provided in section 140
12-53. 141
Sec. 6. Subsection (b) of section 12-57a of the general statutes is 142
repealed and the following is substituted in lieu thereof (Effective October 143
1, 2021): 144 Raised Bill No. 6658
LCO No. 5638 6 of 64
(b) Whenever any such lessee of personal property fails to file the 145
information required in this section, it shall be assumed that any such 146
property in the lessee's possession is owned by the lessee, who shall be 147
subject to the penalty as provided in section [12-42] 12-41 in the same 148
manner as any owner of personal property who fails to file a personal 149
property declaration as required. 150
Sec. 7. Subsection (a) of section 12-111 of the general statutes is 151
repealed and the following is substituted in lieu thereof (Effective October 152
1, 2021): 153
(a) (1) Any person, including any lessee of real property whose lease 154
has been recorded as provided in section 47-19 and who is bound under 155
the terms of a lease to pay real property taxes and any person to whom 156
title to such property has been transferred since the assessment date, 157
claiming to be aggrieved by the doings of the assessors of such town 158
may appeal therefrom to the board of assessment appeals. Such appeal 159
shall be filed, in writing, on or before February twentieth. The written 160
appeal shall include, but is not limited to, the property owner's name, 161
name and position of the signer, description of the property which is the 162
subject of the appeal, name and mailing address of the party to be sent 163
all correspondence by the board of assessment appeals, reason for the 164
appeal, appellant's estimate of value, signature of property owner, or 165
duly authorized agent of the property owner, and date of signature. 166
(2) The board shall notify each aggrieved taxpayer who filed a written 167
appeal in the proper form and in a timely manner, no later than March 168
first immediately following the assessment date, of the date, time and 169
place of the appeal hearing. Such notice shall be sent no later than seven 170
calendar days preceding the hearing date except that the board may 171
elect not to conduct an appeal hearing for any commercial, industrial, 172
utility or apartment property with an assessed value greater than one 173
million dollars. The board shall, not later than March first, notify the 174
appellant that the board has elected not to conduct an appeal hearing. 175
An appellant whose appeal will not be heard by the board may appeal 176
directly to the Superior Court pursuant to section 12-117a. 177 Raised Bill No. 6658
LCO No. 5638 7 of 64
(3) The board shall determine all appeals for which the board 178
conducts an appeal hearing and send written notification of the final 179
determination of such appeals to each such person within one week 180
after such determination has been made. Such written notification shall 181
include information describing the property owner's right to appeal the 182
determination of such board. Such board may equalize and adjust the 183
grand list of such town and may increase or decrease the assessment of 184
any taxable property or interest therein and may add an assessment for 185
property omitted by the assessors which should be added thereto; and 186
may add to the grand list the name of any person omitted by the 187
assessors and owning taxable property in such town, placing therein all 188
property liable to taxation which it has reason to believe is owned by 189
such person, at the percentage of its actual valuation, as determined by 190
the assessors in accordance with the provisions of sections 12-64 and 12-191
71, from the best information that it can obtain. [, and if] If such property 192
should have been included in the declaration, as required by section [12-193
42] 12-41 or 12-43, as amended by this act, [it] the board shall add thereto 194
twenty-five per cent of such assessment; but, before proceeding to 195
increase the assessment of any person or to add to the grand list the 196
name of any person so omitted, [it] the board shall mail to such person, 197
postage paid, at least one week before making such increase or addition, 198
a written or printed notice addressed to such person at the town in 199
which such person resides, to appear before such board and show cause 200
why such increase or addition should not be made. 201
(4) When the board increases or decreases the gross assessment of any 202
taxable real property or interest therein, the amount of such gross 203
assessment shall be fixed until the assessment year in which the 204
municipality next implements a revaluation of all real property 205
pursuant to section 12-62, unless the assessor increases or decreases the 206
gross assessment of the property to [(1)] (A) comply with an order of a 207
court of jurisdiction, [(2)] (B) reflect an addition for new construction, 208
[(3)] (C) reflect a reduction for damage or demolition, or [(4)] (D) correct 209
a factual error by issuance of a certificate of correction. Notwithstanding 210
the provisions of this subsection, if, prior to the next revaluation, the 211 Raised Bill No. 6658
LCO No. 5638 8 of 64
assessor increases or decreases a gross assessment established by the 212
board for any other reason, the assessor shall submit a written 213
explanation to the board setting forth the reason for such increase or 214
decrease. The assessor shall also append the written explanation to the 215
property card for the real estate parcel whose gross assessment was 216
increased or decreased. 217
Sec. 8. Subdivision (4) of section 12-120a of the general statutes is 218
repealed and the following is substituted in lieu thereof (Effective October 219
1, 2021): 220
(4) (A) For purposes of taxable registered motor vehicles, such report 221
shall include the total number of motor vehicles and the total assessed 222
value of such motor vehicles for each of the following classifications 223
related to use: (i) Passenger, (ii) commercial, (iii) combination, (iv) farm, 224
and (v) any other classification; (B) for purposes of taxable vehicles 225
which are not registered and mobile manufactured homes, such report 226
shall include the total number of such vehicles and mobile 227
manufactured homes and the total assessed value for each such 228
category; (C) for purposes of all other taxable personal property, such 229
report shall include the total value of each category of such property as 230
contained in the tax list required pursuant to sections [12-42] 12-41 and 231
12-43, as amended by this act. 232
Sec. 9. Subsection (a) of section 12-121f of the general statutes is 233
repealed and the following is substituted in lieu thereof (Effective October 234
1, 2021): 235
(a) An assessment list in any town, city or borough is not invalid as 236
to the taxpayers of the taxing district as a whole because the assessor 237
committed any one or more of the errors or omissions listed in 238
subdivisions (1) to (15), inclusive, of this subsection unless an action 239
contesting the validity of the assessment list is brought within four 240
months after the assessment date and the plaintiff establishes that the 241
assessor's error or omission will produce a substantial injustice to the 242
taxpayers as a whole: 243 Raised Bill No. 6658
LCO No. 5638 9 of 64
(1) The assessor failed to give the legal notice required by section 12-244
40, as amended by this act, that all persons liable to pay taxes in the 245
taxing district must, when required by law, bring in written or printed 246
lists of the taxable property belonging to them; 247
(2) The assessor received a list that is either not sworn to or not signed 248
by the person giving that list as required by section 12-49; 249
(3) The assessor received a list after the deadline specified by section 250
[12-42] 12-41 but neglected to fill out a list of the property described and 251
add to the assessment the penalty set by said section [12-42] for failing 252
to file before the deadline; 253
(4) The assessor failed to give the notice required by subsection (c) of 254
section 12-53 after adding property to the list of any person or 255
corporation making a sworn list; 256
(5) The assessor failed to give the notice required by subsection (c) of 257
section 12-53 after making out a list for a person or corporation that was 258
liable to pay taxes and failed to give a required list; 259
(6) The assessor failed to assess and set house lots separately in lists 260
as land as required by section [12-42] 12-63; 261
(7) The assessor failed to sign any assessment list, or did not sign the 262
assessment list of a town, city or borough collectively but signed the 263
assessment list individually for districts in the town, city or borough; 264
(8) The assessor failed, as required by subsection (a) of section 12-55, 265
to arrange an assessment list in alphabetical order, or to lodge the list in 266
the required office on or before the day designated by law, or at all; 267
(9) The assessor decreased valuations after the day on which the 268
assessment list was lodged or was required by law to be lodged in the 269
required office, but before the date on which the abstract of such list was 270
transmitted or was required to be transmitted to the Secretary of the 271
Office of Policy and Management; 272 Raised Bill No. 6658
LCO No. 5638 10 of 64
(10) The assessor failed, as required by section 12-42, to fill out a list 273
for any person or corporation that failed to return a required list; 274
(11) The assessor incorrectly made an assessment list abstract 275
required by subsection (a) of section 12-55; 276
(12) The assessor failed to compare, sign, return, date or make oath to 277
an abstract of an assessment list of his or her town, as required by law, 278
or omitted from an abstract any part of the list of any person; 279
(13) The assessor did not take the oath required by law; 280
(14) The assessor failed to return to a district clerk an assessment list 281
of the district assessment; or 282
(15) The assessor omitted from the assessment list the taxable 283
property of any person or corporation liable to pay taxes. 284
Sec. 10. Section 12-170aa of the general statutes is repealed and the 285
following is substituted in lieu thereof (Effective October 1, 2021): 286
There is established, for the assessment year commencing October 1, 287
1985, and each assessment year thereafter, a revised state program of 288
property tax relief for certain elderly homeowners as determined in 289
accordance with subsection (b) of this section, and additionally for the 290
assessment year commencing October 1, 1986, and each assessment year 291
thereafter, the property tax relief benefits of such program are made 292
available to certain homeowners who are permanently and totally 293
disabled as determined in accordance with said subsection. [(b) of this 294
section.] 295
(b) (1) The program established by this section shall provide for a 296
reduction in property tax, except in the case of benefits payable as a 297
grant under certain circumstances in accordance with provisions in 298
subsection (j) of this section, applicable to the assessed value of certain 299
real property, determined in accordance with subsection (c) of this 300
section, for any (A) owner of real property, including any owner of real 301
property held in trust for such owner, provided such owner or such 302 Raised Bill No. 6658
LCO No. 5638 11 of 64
owner and such owner's spouse are the grantor and beneficiary of such 303
trust, (B) tenant for life or tenant for a term of years liable for property 304
tax under section 12-48, or (C) resident of a multiple-dwelling complex 305
under certain contractual conditions as provided in [said] subsection (j) 306
of this section, who (i) at the close of the preceding calendar year has 307
attained age sixty-five or over, or whose spouse domiciled with such 308
homeowner, has attained age sixty-five or over at the close of the 309
preceding calendar year, or is fifty years of age or over and the surviving 310
spouse of a homeowner who at the time of [his] such homeowner's 311
death had qualified and was entitled to tax relief under this section, 312
provided such spouse was domiciled with such homeowner at the time 313
of [his] such homeowner's death, or (ii) at the close of the preceding 314
calendar year has not attained age sixty-five and is eligible in accordance 315
with applicable federal regulations to receive permanent total disability 316
benefits under Social Security, or has not been engaged in employment 317
covered by Social Security and accordingly has not qualified for benefits 318
thereunder but who has become qualified for permanent total disability 319
benefits under any federal, state or local government retirement or 320
disability plan, including the Railroad Retirement Act and any 321
government-related teacher's retirement plan, determined by the 322
Secretary of the Office of Policy and Management to contain 323
requirements in respect to qualification for such permanent total 324
disability benefits [which] that are comparable to such requirements 325
under Social Security; and in addition to qualification under clause (i) 326
or (ii) [above] of this subdivision, whose taxable and nontaxable income, 327
the total of which shall hereinafter be called "qualifying income", in the 328
tax year of such homeowner ending immediately preceding the date of 329
application for benefits under the program in this section, was not in 330
excess of sixteen thousand two hundred dollars, if unmarried, or twenty 331
thousand dollars, jointly with spouse if married, subject to adjustments 332
in accordance with subdivision (2) of this subsection, evidence of which 333
income shall be required in the form of a signed affidavit to be submitted 334
to the assessor in the municipality in which application for benefits 335
under this section is filed. The amount of any Medicaid payments made 336
on behalf of such homeowner or the spouse of such homeowner shall 337 Raised Bill No. 6658
LCO No. 5638 12 of 64
not constitute income. The amount of tax reduction provided under this 338
section, determined in accordance with and subject to the variable 339
factors in the schedule of amounts of tax reduction in subsection (c) of 340
this section, shall be allowed only with respect to a residential dwelling 341
owned by such qualified homeowner and used as such homeowner's 342
primary place of residence. If title to real property or a tenancy interest 343
liable for real property taxes is recorded in the name of such qualified 344
homeowner or his spouse making a claim and qualifying under this 345
section and any other person or persons, the claimant hereunder shall 346
be entitled to pay his fractional share of the tax on such property 347
calculated in accordance with the provisions of this section, and such 348
other person or persons shall pay his or their fractional share of the tax 349
without regard for the provisions of this section, unless also qualified 350
hereunder. For the purposes of this section, a "mobile manufactured 351
home", as defined in section 12-63a, or a dwelling on leased land, 352
including but not limited to a modular home, shall be deemed to be real 353
property and the word "taxes" shall not include special assessments, 354
interest and lien fees. 355
(2) The amounts of qualifying income as provided in this section shall 356
be adjusted annually in a uniform manner to reflect the annual inflation 357
adjustment in Social Security income, with each such adjustment of 358
qualifying income determined to the nearest one hundred dollars. Each 359
such adjustment of qualifying income shall be prepared by the Secretary 360
of the Office of Policy and Management in relation to the annual 361
inflation adjustment in Social Security, if any, becoming effective at any 362
time during the twelve-month period immediately preceding the first 363
day of October each year and the amount of such adjustment shall be 364
distributed to the assessors in each municipality not later than the thirty-365
first day of December next following. 366
(3) For purposes of determining qualifying income under subdivision 367
(1) of this subsection with respect to a married homeowner who submits 368
an application for tax reduction in accordance with this section, the 369
Social Security income of the spouse of such homeowner shall not be 370
included in the qualifying income of such homeowner, for purposes of 371 Raised Bill No. 6658
LCO No. 5638 13 of 64
determining eligibility for benefits under this section, if such spouse is 372
a resident of a health care or nursing home facility in this state receiving 373
payment related to such spouse under the Title XIX Medicaid program. 374
An applicant who is legally separated pursuant to the provisions of 375
section 46b-40, as of the thirty-first day of December preceding the date 376
on which such person files an application for a grant in accordance with 377
subsection (a) of this section, may apply as an unmarried person and 378
shall be regarded as such for purposes of determining qualifying income 379
under said subsection. 380
(c) The amount of reduction in property tax provided under this 381
section shall, subject to the provisions of subsection (d) of this section, 382
be determined in accordance with the following schedule: 383
T1 Qualifying Income Tax Reduction Tax Reduction
T2 As Percentage For Any Year
T3 Over Not Exceeding Of Property Tax
T4 Married Homeowners Maximum Minimum
T5 $ 0 $11,700 50% $1,250 $400
T6 11,700 15,900 40 1,000 350
T7 15,900 19,700 30 750 250
T8 19,700 23,600 20 500 150
T9 23,600 28,900 10 250 150
T10 28,900 None
T11 Unmarried Homeowners
T12 $ 0 $11,700 40% $1,000 $350
T13 11,700 15,900 30 750 250
T14 15,900 19,700 20 500 150
T15 19,700 23,600 10 250 150
T16 23,600 None
(d) Any homeowner qualified for tax reduction in accordance with 384 Raised Bill No. 6658
LCO No. 5638 14 of 64
subsection (b) of this section in an amount to be determined under the 385
schedule of such tax reduction in subsection (c) of this section, shall in 386
no event receive less in tax reduction than the minimum amount of such 387
reduction applicable to the qualifying income of such homeowner 388
according to the schedule in said subsection (c). 389
(e) (1) Any claim for tax reduction under this section shall be 390
submitted for approval, on the application form prepared for such 391
purpose by the Secretary of the Office of Policy and Management, in the 392
first year claim for such tax relief is filed and biennially thereafter. The 393
amount of tax reduction approved shall be applied to the real property 394
tax payable by the homeowner for the assessment year in which such 395
application is submitted and approved. If any such homeowner has 396
qualified for tax reduction under this section, the tax reduction 397
determined shall, when possible, be applied and prorated uniformly 398
over the number of installments in which the real property tax is due 399
and payable to the municipality in which [he] such homeowner resides. 400
In the case of any homeowner who is eligible for tax reduction under 401
this section as a result of increases in qualifying income, [effective with 402
respect to the assessment year commencing October 1, 1987,] under the 403
schedule of qualifying income and tax reduction in subsection (c) of this 404
section, exclusive of any such increases related to [social security] Social 405
Security adjustments in accordance with subsection (b) of this section, 406
the total amount of tax reduction to which such homeowner is entitled 407
shall be credited and uniformly prorated against property tax 408
installment payments applicable to such homeowner's residence 409
[which] that become due after such homeowner's application for tax 410
reduction under this section is accepted. In the event that a homeowner 411
has paid in full the amount of property tax applicable to such 412
homeowner's residence, regardless of whether the municipality requires 413
the payment of property taxes in one or more installments, such 414
municipality shall make payment to such homeowner in the amount of 415
the tax reduction allowed. The municipality shall be reimbursed for the 416
amount of such payment in accordance with subsection (g) of this 417
section. 418 Raised Bill No. 6658
LCO No. 5638 15 of 64
(2) In respect to such application required biennially after the filing 419
and approval for the first year, the tax assessor in each municipality 420
shall notify each such homeowner concerning application requirements 421
by regular mail not later than February first, annually enclosing a copy 422
of the required application form. Such homeowner may submit such 423
application to the assessor by mail, provided it is received by the 424
assessor not later than April fifteenth in the assessment year with 425
respect to which such tax reduction is claimed. Not later than April 426
thirtieth of such year the assessor shall notify, by mail evidenced by a 427
certificate of mailing, any such homeowner for whom such application 428
was not received by said April fifteenth concerning application 429
requirements and such homeowner shall be required not later than May 430
fifteenth to submit such application personally or, for reasonable cause, 431
by a person acting on behalf of such taxpayer as approved by the 432
assessor. In the year immediately following any year in which such 433
homeowner has submitted application and qualified for tax reduction 434
in accordance with this section, such homeowner shall be presumed, 435
without filing application therefor, to be qualified for tax reduction in 436
accordance with the schedule in subsection (c) of this section in the same 437
percentage of property tax as allowed in the year immediately 438
preceding. 439
(3) If any homeowner has qualified and received tax reduction under 440
this section and subsequently in any calendar year has qualifying 441
income in excess of the maximum described in this section, such 442
homeowner shall notify the tax assessor on or before the next filing date 443
and shall be denied tax reduction under this section for the assessment 444
year and any subsequent year or until such homeowner has reapplied 445
and again qualified for benefits under this section. Any such person who 446
fails to so notify the tax assessor of his disqualification shall refund all 447
amounts of tax reduction improperly taken and be fined not more than 448
five hundred dollars. 449
(f) (1) Any homeowner, believing such homeowner is entitled to tax 450
reduction benefits under this section for any assessment year, shall 451
make application as required in subsection (e) of this section, to the 452 Raised Bill No. 6658
LCO No. 5638 16 of 64
assessor of the municipality in which the homeowner resides, for such 453
tax reduction at any time from February first to and including May 454
fifteenth of the year in which tax reduction is claimed. A homeowner 455
may make application to the secretary prior to August fifteenth of the 456
claim year for an extension of the application period. The secretary may 457
grant such extension in the case of extenuating circumstance due to 458
illness or incapacitation as evidenced by a certificate signed by a 459
physician or an advanced practice registered nurse to that extent, or if 460
the secretary determines there is good cause for doing so. Such 461
application for tax reduction benefits shall be submitted on a form 462
prescribed and furnished by the secretary to the assessor. In making 463
application the homeowner shall present to such assessor, in 464
substantiation of such homeowner's application, a copy of such 465
homeowner's federal income tax return, including a copy of the Social 466
Security statement of earnings for such homeowner, and that of such 467
homeowner's spouse, if filed separately, for such homeowner's taxable 468
year ending immediately prior to the submission of such application, or 469
if not required to file a return, such other evidence of qualifying income 470
in respect to such taxable year as may be required by the assessor. 471
(2) When the assessor is satisfied that the applying homeowner is 472
entitled to tax reduction in accordance with this section, such assessor 473
shall issue a certificate of credit, in such form as the secretary may 474
prescribe and supply showing the amount of tax reduction allowed. A 475
duplicate of such certificate shall be delivered to the applicant and the 476
tax collector of the municipality and the assessor shall keep the fourth 477
copy of such certificate and a copy of the application. Any homeowner 478
who, for the purpose of obtaining a tax reduction under this section, 479
wilfully fails to disclose all matters related thereto or with intent to 480
defraud makes false statement shall refund all property tax credits 481
improperly taken and shall be fined not more than five hundred dollars. 482
(3) Applications filed under this section shall not be open for public 483
inspection. 484
(g) (1) On or before July first, annually, each municipality shall 485 Raised Bill No. 6658
LCO No. 5638 17 of 64
submit to the secretary a claim for the tax reductions approved under 486
this section in relation to the assessment list of October first immediately 487
preceding. On or after December [1, 1987] first, annually, any 488
municipality that neglects to transmit to the secretary the claim as 489
required by this section shall forfeit two hundred fifty dollars to the 490
state, except that the secretary may waive such forfeiture in accordance 491
with procedures and standards established by regulations adopted in 492
accordance with chapter 54. 493
(2) Subject to procedures for review and approval of such data 494
pursuant to section 12-120b, said secretary shall, on or before December 495
fifteenth next following, certify to the Comptroller the amount due each 496
municipality as reimbursement for loss of property tax revenue related 497
to the tax reductions allowed under this section, except that the 498
secretary may reduce the amount due as reimbursement under this 499
section by up to one hundred per cent for any municipality that is not 500
eligible for a grant under section 32-9s. The Comptroller shall draw an 501
order on the Treasurer on or before the fifth business day following 502
December fifteenth and the Treasurer shall pay the amount due each 503
municipality not later than the thirty-first day of December. 504
(3) Any claimant aggrieved by the results of the secretary's review 505
shall have the rights of appeal as set forth in section 12-120b. The 506
amount of the grant payable to each municipality in any year in 507
accordance with this section shall be reduced proportionately in the 508
event that the total of such grants in such year exceeds the amount 509
appropriated for the purposes of this section with respect to such year. 510
(h) Any person who is the owner of a residential dwelling on leased 511
land, including any such person who is a sublessee under terms of the 512
lease agreement applicable to such land, shall be entitled to claim tax 513
relief under the provisions of this section, subject to all requirements 514
therein except as provided in this [subdivision] subsection, with respect 515
to property taxes paid by such person on the assessed value of such 516
dwelling, provided (1) the dwelling is such person's principal place of 517
residence, (2) such lease or sublease requires that such person as the 518 Raised Bill No. 6658
LCO No. 5638 18 of 64
lessee or sublessee, whichever is applicable, pay all property taxes 519
related to the dwelling and (3) such lease or sublease is recorded in the 520
land records of the town. 521
(i) (1) If any person with respect to whom a claim for tax reduction in 522
accordance with this section has been approved for any assessment year 523
transfers, assigns, grants or otherwise conveys on or after the first day 524
of October but prior to the first day of August in such assessment year 525
the interest in real property to which such claim for tax credit is related, 526
regardless of whether such transfer, assignment, grant or conveyance is 527
voluntary or involuntary, the amount of such tax credit shall be a pro 528
rata portion of the amount otherwise applicable in such assessment year 529
to be determined by a fraction the numerator of which shall be the 530
number of full months from the first day of October in such assessment 531
year to the date of such conveyance and the denominator of which shall 532
be twelve. If such conveyance occurs in the month of October the 533
grantor shall be disqualified for tax credit in such assessment year. The 534
grantee shall be required within a period not exceeding ten days 535
immediately following the date of such conveyance to notify the 536
assessor thereof, or in the absence of such notice, upon determination 537
by the assessor that such transfer, assignment, grant or conveyance has 538
occurred, the assessor shall [(1)] (A) determine the amount of tax 539
reduction to which the grantor is entitled for such assessment year with 540
respect to the interest in real property conveyed and notify the tax 541
collector of the reduced amount of tax reduction applicable to such 542
interest, and [(2)] (B) notify the Secretary of the Office of Policy and 543
Management on or before the October first immediately following the 544
end of the assessment year in which such conveyance occurs of the 545
reduction in such tax reduction for purposes of a corresponding 546
adjustment in the amount of state payment to the municipality next 547
following as reimbursement for the revenue loss related to such tax 548
reductions. On or after December [1, 1987] first, annually, any 549
municipality [which] that neglects to transmit to the Secretary of the 550
Office of Policy and Management the claim as required by this section 551
shall forfeit two hundred fifty dollars to the state provided the secretary 552 Raised Bill No. 6658
LCO No. 5638 19 of 64
may waive such forfeiture in accordance with procedures and standards 553
established by regulations adopted in accordance with chapter 54. 554
(2) Upon receipt of such notice from the assessor, the tax collector 555
shall, if such notice is received after the tax due date in the municipality, 556
within ten days thereafter mail or hand a bill to the grantee stating the 557
additional amount of tax due as determined by the assessor. Such tax 558
shall be due and payable and collectible as other property taxes and 559
subject to the same liens and processes of collection, provided such tax 560
shall be due and payable in an initial or single installment not sooner 561
than thirty days after the date such bill is mailed or handed to the 562
grantee and in equal amounts in any remaining, regular installments as 563
the same are due and payable. 564
(j) (1) Notwithstanding the intent in subsections (a) to (i), inclusive, 565
of this section to provide for benefits in the form of property tax 566
reduction applicable to persons liable for payment of such property tax 567
and qualified in accordance with requirements related to age and 568
income as provided in subsection (b) of this section, a certain annual 569
benefit, determined in amount under the provisions of subsections (c) 570
and (d) of this section but payable in a manner as prescribed in this 571
subsection, shall be provided with respect to any person who (A) is 572
qualified in accordance with said requirements related to age and 573
income as provided in subsection (b) of this section, including 574
provisions concerning such person's spouse, and (B) is a resident of a 575
dwelling unit within a multiple-dwelling complex containing dwelling 576
units for occupancy by certain elderly persons under terms of a contract 577
between such resident and the owner of such complex, in accordance 578
with which contract such resident occupies a certain dwelling unit 579
subject to the express provision that such resident has no legal title, 580
interest or leasehold estate in the real or personal property of such 581
complex, and under the terms of which contract such resident agrees to 582
pay the owner of the complex a fee, as a condition precedent to 583
occupancy and a monthly or other such periodic fee thereafter as a 584
condition of continued occupancy. In no event shall any such resident 585
be qualified for benefits payable in accordance with this subsection if, as 586 Raised Bill No. 6658
LCO No. 5638 20 of 64
determined by the assessor in the municipality in which such complex 587
is situated, such resident's contract with the owner of such complex, or 588
occupancy by such resident (i) confers upon such resident any 589
ownership interest in the dwelling unit occupied or in such complex, or 590
(ii) establishes a contract of lease of any type for the dwelling unit 591
occupied by such resident. 592
(2) The amount of annual benefit payable in accordance with this 593
subsection to any such resident, qualified as provided in subdivision (1) 594
of this subsection, shall be determined in relation to an assumed amount 595
of property tax liability applicable to the assessed value for the dwelling 596
unit which such resident occupies, as determined by the assessor in the 597
municipality in which such complex is situated. Annually, not later than 598
the first day of June, the assessor in such municipality, upon receipt of 599
an application for such benefit submitted in accordance with this 600
subsection by any such resident, shall determine, with respect to the 601
assessment list in such municipality for the assessment year 602
commencing October first immediately preceding, the portion of the 603
assessed value of the entire complex, as included in such assessment list, 604
attributable to the dwelling unit occupied by such resident. The 605
assumed property tax liability for purposes of this subsection shall be 606
the product of such assessed value and the mill rate in such municipality 607
as determined for purposes of property tax imposed on said assessment 608
list for the assessment year commencing October first immediately 609
preceding. The amount of benefit to which such resident shall be 610
entitled for such assessment year shall be equivalent to the amount of 611
tax reduction for which such resident would qualify, considering such 612
assumed property tax liability to be the actual property tax applicable 613
to such resident's dwelling unit and such resident as liable for the 614
payment of such tax, in accordance with the schedule of qualifying 615
income and tax reduction as provided in subsection (c) of this section, 616
subject to provisions concerning maximum allowable benefit for any 617
assessment year under subsections (c) and (d) of this section. The 618
amount of benefit as determined for such resident in respect to any 619
assessment year shall be payable by the state as a grant to such resident 620 Raised Bill No. 6658
LCO No. 5638 21 of 64
equivalent to the amount of property tax reduction to which such 621
resident would be entitled under subsections (a) to (i), inclusive, of this 622
section if such resident were the owner of such dwelling unit and 623
qualified for tax reduction benefits under said subsections (a) to (i), 624
inclusive. 625
(3) Any such resident entitled to a grant as provided in subdivision 626
(2) of this subsection shall be required to submit an application for such 627
grant to the assessor in the municipality in which such resident resides 628
at any time from February first to and including the fifteenth day of May 629
in the year in which such grant is claimed, on a form prescribed and 630
furnished for such purpose by the Secretary of the Office of Policy and 631
Management. Any such resident submitting an application for such 632
grant shall be required to present to the assessor, in substantiation of 633
such application, a copy of such resident's federal income tax return, 634
and if not required to file a federal income tax return, such other 635
evidence of qualifying income, receipts for money received or cancelled 636
checks, or copies thereof, and any other evidence the assessor may 637
require. Not later than the first day of July in such year, the assessor shall 638
submit to the Secretary of the Office of Policy and Management (A) a 639
copy of the application prepared by such resident, together with such 640
resident's federal income tax return, if required to file such a return, and 641
any other information submitted in relation thereto, (B) determinations 642
of the assessor concerning the assessed value of the dwelling unit in 643
such complex occupied by such resident, and (C) the amount of such 644
grant approved by the assessor. Said secretary, upon approving such 645
grant, shall certify the amount thereof and not later than the fifteenth 646
day of September immediately following submit approval for payment 647
of such grant to the State Comptroller. Not later than five business days 648
immediately following receipt of such approval for payment, the State 649
Comptroller shall draw [his or her] an order [upon] on the State 650
Treasurer and the Treasurer shall pay the amount of the grant to such 651
resident not later than the first day of October immediately following. 652
(k) If the Secretary of the Office of Policy and Management makes any 653
adjustments to the grants for tax reductions or assumed amounts of 654 Raised Bill No. 6658
LCO No. 5638 22 of 64
property tax liability claimed under this section subsequent to the 655
[Comptroller the] State Comptroller's order of payment of [said] such 656
grants in any year, the amount of such adjustment shall be reflected in 657
the next payment the Treasurer shall make to such municipality 658
pursuant to this section. 659
Sec. 11. Subsection (a) of section 12-208 of the general statutes is 660
repealed and the following is substituted in lieu thereof (Effective October 661
1, 2021): 662
(a) Any company subject to any tax or charge under this chapter that 663
is aggrieved by the action of the commissioner or the commissioner's 664
authorized agent in fixing the amount of any tax, penalty, interest or 665
charge provided for by this chapter may apply to the commissioner, in 666
writing, not later than sixty days after the notice of such action is 667
delivered or mailed to the company, for a hearing and a correction of 668
the amount of such tax, penalty, interest or charge, so fixed, setting forth 669
the reasons why such hearing should be granted and the amount in 670
which such tax, penalty, interest or charge should be reduced. The 671
commissioner shall promptly consider each such application and may 672
grant or deny the hearing requested. If the hearing is denied, the 673
applicant shall be notified forthwith. If it is granted, the commissioner 674
shall notify the applicant of the time and place fixed for such hearing. 675
After such hearing the commissioner may make such order in the 676
premises as appears to [him] the commissioner just and lawful and shall 677
furnish a copy of such order to the applicant. The commissioner may, 678
by notice in writing, at any time within three years after the date when 679
any return of any such person has been due, order a hearing on [his 680
own] the commissioner's initiative and require such person or any other 681
individual whom the commissioner believes to be in possession of 682
relevant information concerning such person to appear before the 683
commissioner or the commissioner's authorized agent with any 684
specified books of account, papers or other documents, for examination 685
under oath. 686
Sec. 12. Subsection (b) of section 12-214 of the general statutes is 687 Raised Bill No. 6658
LCO No. 5638 23 of 64
repealed and the following is substituted in lieu thereof (Effective October 688
1, 2021): 689
[(b) (1) With respect to income years commencing on or after January 690
1, 1989, and prior to January 1, 1992, any company subject to the tax 691
imposed in accordance with subsection (a) of this section shall pay, for 692
each such income year, an additional tax in an amount equal to twenty 693
per cent of the tax calculated under said subsection (a) for such income 694
year, without reduction of the tax so calculated by the amount of any 695
credit against such tax. The additional amount of tax determined under 696
this subsection for any income year shall constitute a part of the tax 697
imposed by the provisions of said subsection (a) and shall become due 698
and be paid, collected and enforced as provided in this chapter. 699
(2) With respect to income years commencing on or after January 1, 700
1992, and prior to January 1, 1993, any company subject to the tax 701
imposed in accordance with subsection (a) of this section shall pay, for 702
each such income year, an additional tax in an amount equal to ten per 703
cent of the tax calculated under said subsection (a) for such income year, 704
without reduction of the tax so calculated by the amount of any credit 705
against such tax. The additional amount of tax determined under this 706
subsection for any income year shall constitute a part of the tax imposed 707
by the provisions of said subsection (a) and shall become due and be 708
paid, collected and enforced as provided in this chapter. 709
(3) With respect to income years commencing on or after January 1, 710
2003, and prior to January 1, 2004, any company subject to the tax 711
imposed in accordance with subsection (a) of this section shall pay, for 712
each such income year, an additional tax in an amount equal to twenty 713
per cent of the tax calculated under said subsection (a) for such income 714
year, without reduction of the tax so calculated by the amount of any 715
credit against such tax. The additional amount of tax determined under 716
this subsection for any income year shall constitute a part of the tax 717
imposed by the provisions of said subsection (a) and shall become due 718
and be paid, collected and enforced as provided in this chapter. 719 Raised Bill No. 6658
LCO No. 5638 24 of 64
(4) With respect to income years commencing on or after January 1, 720
2004, and prior to January 1, 2005, any company subject to the tax 721
imposed in accordance with subsection (a) of this section shall pay, for 722
each such income year, an additional tax in an amount equal to twenty-723
five per cent of the tax calculated under said subsection (a) for such 724
income year, without reduction of the tax so calculated by the amount 725
of any credit against such tax, except that any company that pays the 726
minimum tax of two hundred fifty dollars under section 12-219 or 12-727
223c for such income year shall not be subject to the additional tax 728
imposed by this subdivision. The additional amount of tax determined 729
under this subdivision for any income year shall constitute a part of the 730
tax imposed by the provisions of said subsection (a) and shall become 731
due and be paid, collected and enforced as provided in this chapter.] 732
[(5)] (b) (1) With respect to income years commencing on or after 733
January 1, 2006, and prior to January 1, 2007, any company subject to the 734
tax imposed in accordance with subsection (a) of this section shall pay, 735
except when the tax so calculated is equal to two hundred fifty dollars, 736
for each such income year, an additional tax in an amount equal to 737
twenty per cent of the tax calculated under said subsection (a) for such 738
income year, without reduction of the tax so calculated by the amount 739
of any credit against such tax. The additional amount of tax determined 740
under this subsection for any income year shall constitute a part of the 741
tax imposed by the provisions of said subsection (a) and shall become 742
due and be paid, collected and enforced as provided in this chapter. 743
[(6)] (2) (A) With respect to income years commencing on or after 744
January 1, 2009, and prior to January 1, 2012, any company subject to the 745
tax imposed in accordance with subsection (a) of this section shall pay, 746
for each such income year, except when the tax so calculated is equal to 747
two hundred fifty dollars, an additional tax in an amount equal to ten 748
per cent of the tax calculated under said subsection (a) for such income 749
year, without reduction of the tax so calculated by the amount of any 750
credit against such tax. The additional amount of tax determined under 751
this subsection for any income year shall constitute a part of the tax 752
imposed by the provisions of said subsection (a) and shall become due 753 Raised Bill No. 6658
LCO No. 5638 25 of 64
and be paid, collected and enforced as provided in this chapter. 754
(B) Any company whose gross income for the income year was less 755
than one hundred million dollars shall not be subject to the additional 756
tax imposed under subparagraph (A) of this subdivision. This exception 757
shall not apply to companies filing a combined return for the income 758
year under section 12-223a or a unitary return under subsection (d) of 759
section 12-218d. 760
[(7)] (3) (A) With respect to income years commencing on or after 761
January 1, 2012, and prior to January 1, 2018, any company subject to the 762
tax imposed in accordance with subsection (a) of this section shall pay, 763
for each such income year, except when the tax so calculated is equal to 764
two hundred fifty dollars, an additional tax in an amount equal to 765
twenty per cent of the tax calculated under said subsection (a) for such 766
income year, without reduction of the tax so calculated by the amount 767
of any credit against such tax. The additional amount of tax determined 768
under this subsection for any income year shall constitute a part of the 769
tax imposed by the provisions of said subsection (a) and shall become 770
due and be paid, collected and enforced as provided in this chapter. 771
(B) Any company whose gross income for the income year was less 772
than one hundred million dollars shall not be subject to the additional 773
tax imposed under subparagraph (A) of this subdivision. With respect 774
to income years commencing on or after January 1, 2012, and prior to 775
January 1, 2016, this exception shall not apply to companies filing a 776
combined return for the income year under section 12-223a or a unitary 777
return under subsection (d) of section 12-218d. With respect to income 778
years commencing on or after January 1, 2016, and prior to January 1, 779
2018, this exception shall not apply to taxable members of a combined 780
group that files a combined unitary tax return. 781
[(8)] (4) (A) With respect to income years commencing on or after 782
January 1, 2018, and prior to January 1, 2021, any company subject to the 783
tax imposed in accordance with subsection (a) of this section shall pay, 784
for such income year, except when the tax so calculated is equal to two 785 Raised Bill No. 6658
LCO No. 5638 26 of 64
hundred fifty dollars, an additional tax in an amount equal to ten per 786
cent of the tax calculated under said subsection (a) for such income year, 787
without reduction of the tax so calculated by the amount of any credit 788
against such tax. The additional amount of tax determined under this 789
subsection for any income year shall constitute a part of the tax imposed 790
by the provisions of said subsection (a) and shall become due and be 791
paid, collected and enforced as provided in this chapter. 792
(B) Any company whose gross income for the income year was less 793
than one hundred million dollars shall not be subject to the additional 794
tax imposed under subparagraph (A) of this subdivision. This exception 795
shall not apply to taxable members of a combined group that files a 796
combined unitary tax return. 797
Sec. 13. Subsection (b) of section 12-219 of the general statutes is 798
repealed and the following is substituted in lieu thereof (Effective October 799
1, 2021): 800
[(b) (1) With respect to income years commencing on or after January 801
1, 1989, and prior to January 1, 1992, the additional tax imposed on any 802
company and calculated in accordance with subsection (a) of this section 803
shall, for each such income year, except when the tax so calculated is 804
equal to two hundred fifty dollars, be increased by adding thereto an 805
amount equal to twenty per cent of the additional tax so calculated for 806
such income year, without reduction of the additional tax so calculated 807
by the amount of any credit against such tax. The increased amount of 808
tax payable by any company under this section, as determined in 809
accordance with this subsection, shall become due and be paid, collected 810
and enforced as provided in this chapter. 811
(2) With respect to income years commencing on or after January 1, 812
1992, and prior to January 1, 1993, the additional tax imposed on any 813
company and calculated in accordance with subsection (a) of this section 814
shall, for each such income year, except when the tax so calculated is 815
equal to two hundred fifty dollars, be increased by adding thereto an 816
amount equal to ten per cent of the additional tax so calculated for such 817 Raised Bill No. 6658
LCO No. 5638 27 of 64
income year, without reduction of the tax so calculated by the amount 818
of any credit against such tax. The increased amount of tax payable by 819
any company under this section, as determined in accordance with this 820
subsection, shall become due and be paid, collected and enforced as 821
provided in this chapter. 822
(3) With respect to income years commencing on or after January 1, 823
2003, and prior to January 1, 2004, the additional tax imposed on any 824
company and calculated in accordance with subsection (a) of this section 825
shall, for each such income year, be increased by adding thereto an 826
amount equal to twenty per cent of the additional tax so calculated for 827
such income year, without reduction of the tax so calculated by the 828
amount of any credit against such tax. The increased amount of tax 829
payable by any company under this section, as determined in 830
accordance with this subsection, shall become due and be paid, collected 831
and enforced as provided in this chapter. 832
(4) With respect to income years commencing on or after January 1, 833
2004, and prior to January 1, 2005, the additional tax imposed on any 834
company and calculated in accordance with subsection (a) of this section 835
shall, for each such income year, be increased by adding thereto an 836
amount equal to twenty-five per cent of the additional tax so calculated 837
for such income year, without reduction of the tax so calculated by the 838
amount of any credit against such tax, except that any company that 839
pays the minimum tax of two hundred fifty dollars under this section or 840
section 12-223c for such income year shall not be subject to such 841
additional tax. The increased amount of tax payable by any company 842
under this subdivision, as determined in accordance with this 843
subsection, shall become due and be paid, collected and enforced as 844
provided in this chapter.] 845
[(5)] (b) (1) With respect to income years commencing on or after 846
January 1, 2006, and prior to January 1, 2007, the additional tax imposed 847
on any company and calculated in accordance with subsection (a) of this 848
section shall, for each such income year, except when the tax so 849
calculated is equal to two hundred fifty dollars, be increased by adding 850 Raised Bill No. 6658
LCO No. 5638 28 of 64
thereto an amount equal to twenty per cent of the additional tax so 851
calculated for such income year, without reduction of the tax so 852
calculated by the amount of any credit against such tax. The increased 853
amount of tax payable by any company under this section, as 854
determined in accordance with this subsection, shall become due and be 855
paid, collected and enforced as provided in this chapter. 856
[(6)] (2) (A) With respect to income years commencing on or after 857
January 1, 2009, and prior to January 1, 2012, the additional tax imposed 858
on any company and calculated in accordance with subsection (a) of this 859
section shall, for each such income year, except when the tax so 860
calculated is equal to two hundred fifty dollars, be increased by adding 861
thereto an amount equal to ten per cent of the additional tax so 862
calculated for such income year, without reduction of the tax so 863
calculated by the amount of any credit against such tax. The increased 864
amount of tax payable by any company under this section, as 865
determined in accordance with this subsection, shall become due and be 866
paid, collected and enforced as provided in this chapter. 867
(B) Any company whose gross income for the income year was less 868
than one hundred million dollars shall not be subject to the additional 869
tax imposed under subparagraph (A) of this subdivision. This exception 870
shall not apply to companies filing a combined return for the income 871
year under section 12-223a or a unitary return under subsection (d) of 872
section 12-218d. 873
[(7)] (3) (A) With respect to income years commencing on or after 874
January 1, 2012, and prior to January 1, 2018, the additional tax imposed 875
on any company and calculated in accordance with subsection (a) of this 876
section shall, for each such income year, except when the tax so 877
calculated is equal to two hundred fifty dollars, be increased by adding 878
thereto an amount equal to twenty per cent of the additional tax so 879
calculated for such income year, without reduction of the tax so 880
calculated by the amount of any credit against such tax. The increased 881
amount of tax payable by any company under this section, as 882
determined in accordance with this subsection, shall become due and be 883 Raised Bill No. 6658
LCO No. 5638 29 of 64
paid, collected and enforced as provided in this chapter. 884
(B) Any company whose gross income for the income year was less 885
than one hundred million dollars shall not be subject to the additional 886
tax imposed under subparagraph (A) of this subdivision. With respect 887
to income years commencing on or after January 1, 2012, and prior to 888
January 1, 2016, this exception shall not apply to companies filing a 889
combined return for the income year under section 12-223a or a unitary 890
return under subsection (d) of section 12-218d. With respect to income 891
years commencing on or after January 1, 2016, and prior to January 1, 892
2018, this exception shall not apply to taxable members of a combined 893
group that files a combined unitary tax return. 894
[(8)] (4) (A) With respect to income years commencing on or after 895
January 1, 2018, and prior to January 1, 2021, the additional tax imposed 896
on any company and calculated in accordance with subsection (a) of this 897
section shall, for such income year, except when the tax so calculated is 898
equal to two hundred fifty dollars, be increased by adding thereto an 899
amount equal to ten per cent of the additional tax so calculated for such 900
income year, without reduction of the tax so calculated by the amount 901
of any credit against such tax. The increased amount of tax payable by 902
any company under this section, as determined in accordance with this 903
subsection, shall become due and be paid, collected and enforced as 904
provided in this chapter. 905
(B) Any company whose gross income for the income year was less 906
than one hundred million dollars shall not be subject to the additional 907
tax imposed under subparagraph (A) of this subdivision. This exception 908
shall not apply to taxable members of a combined group that files a 909
combined unitary tax return. 910
Sec. 14. Subdivision (3) of subsection (a) of section 12-217 of the 911
general statutes is repealed and the following is substituted in lieu 912
thereof (Effective October 1, 2021): 913
(3) Notwithstanding any provision of this section to the contrary, no 914
dividend received from a real estate investment trust shall be deductible 915 Raised Bill No. 6658
LCO No. 5638 30 of 64
under this section by the recipient unless the dividend is: (A) Deductible 916
under Section 243 of the Internal Revenue Code; (B) received by a 917
qualified dividend recipient from a qualified real estate investment trust 918
and, as of the last day of the period for which such dividend is paid, 919
persons, not including the qualified dividend recipient or any person 920
that is either a related person to, or an employee or director of, the 921
qualified dividend recipient, have outstanding cash capital 922
contributions to the qualified real estate investment trust that, in the 923
aggregate, exceed five per cent of the fair market value of the aggregate 924
real estate assets, valued as of the last day of the period for which such 925
dividend is paid, then held by the qualified real estate investment trust; 926
or (C) received from a captive real estate investment trust that is subject 927
to the tax imposed under this chapter. For purposes of this section, [a] 928
"related person" [is as defined in subdivision (7) of subsection (a) of 929
section 12-217m] has the same meaning as provided in section 12-217ii, 930
"real estate assets" [is as defined] has the same meaning as provided in 931
Section 856 of the Internal Revenue Code, [a] "qualified dividend 932
recipient" means a dividend recipient who has invested in a qualified 933
real estate investment trust prior to April 1, 1997, and [a] "qualified real 934
estate investment trust" means an entity that both was incorporated and 935
had contributed to it a minimum of five hundred million dollars' worth 936
of real estate assets prior to April 1, 1997, and that elects to be a real 937
estate investment trust under Section 856 of the Internal Revenue Code 938
prior to April 1, 1998. 939
Sec. 15. Subsection (a) of section 12-217zz of the general statutes is 940
repealed and the following is substituted in lieu thereof (Effective October 941
1, 2021): 942
(a) [Notwithstanding any other provision of law, and except] Except 943
as otherwise provided in subsection (b) of this section and sections 12-944
217aaa and 12-217bbb, the amount of tax credit or credits otherwise 945
allowable against the tax imposed under this chapter shall be as follows: 946
(1) For any income year commencing on or after January 1, 2002, and 947
prior to January 1, 2015, the amount of tax credit or credits otherwise 948 Raised Bill No. 6658
LCO No. 5638 31 of 64
allowable shall not exceed seventy per cent of the amount of tax due 949
from such taxpayer under this chapter with respect to any such income 950
year of the taxpayer prior to the application of such credit or credits; 951
(2) For any income year commencing on or after January 1, 2015, the 952
amount of tax credit or credits otherwise allowable shall not exceed fifty 953
and one one-hundredths per cent of the amount of tax due from such 954
taxpayer under this chapter with respect to any such income year of the 955
taxpayer prior to the application of such credit or credits; 956
(3) Notwithstanding the provisions of subdivision (2) of this 957
subsection, any taxpayer that possesses excess credits may utilize the 958
excess credits as follows: 959
(A) For income years commencing on or after January 1, 2016, and 960
prior to January 1, 2017, the aggregate amount of tax credits and excess 961
credits allowable shall not exceed fifty-five per cent of the amount of tax 962
due from such taxpayer under this chapter with respect to any such 963
income year of the taxpayer prior to the application of such credit or 964
credits; 965
(B) For income years commencing on or after January 1, 2017, and 966
prior to January 1, 2018, the aggregate amount of tax credits and excess 967
credits allowable shall not exceed sixty per cent of the amount of tax due 968
from such taxpayer under this chapter with respect to any such income 969
year of the taxpayer prior to the application of such credit or credits; and 970
(C) For income years commencing on or after January 1, 2018, and 971
prior to January 1, 2019, the aggregate amount of tax credits and excess 972
credits allowable shall not exceed sixty-five per cent of the amount of 973
tax due from such taxpayer under this chapter with respect to any such 974
income year of the taxpayer prior to the application of such credit or 975
credits; 976
(4) For purposes of this subsection, "excess credits" means any 977
remaining credits available under section 12-217j, 12-217n or 32-9t after 978
tax credits are utilized in accordance with subdivision (2) of this 979 Raised Bill No. 6658
LCO No. 5638 32 of 64
subsection. 980
Sec. 16. Subsection (i) of section 12-391 of the general statutes is 981
repealed and the following is substituted in lieu thereof (Effective October 982
1, 2021): 983
(i) [The] With respect to the estates of decedents dying on or after 984
January 1, 2021, the tax calculated pursuant to the provisions of this 985
section shall be reduced in an amount equal to half of the amount 986
invested by a decedent in a private investment fund or fund of funds 987
pursuant to subdivision (43) of section 32-39, provided (1) any such 988
reduction shall not exceed five million dollars for any such decedent, (2) 989
any such amount invested by the decedent shall have been invested in 990
such fund or fund of funds for ten years or more, and (3) the aggregate 991
amount of all taxes reduced under this subsection shall not exceed thirty 992
million dollars. 993
Sec. 17. Subsection (b) of section 12-408h of the general statutes is 994
repealed and the following is substituted in lieu thereof (Effective October 995
1, 2021): 996
(b) A short-term rental facilitator shall be required to obtain a permit 997
to collect the tax set forth in subparagraph (B) of subdivision (1) of 998
section 12-408 and shall be considered the retailer for each retail sale of 999
a short-term rental that such facilitator facilitates on its platform for a 1000
short-term rental operator. Each short-term rental facilitator shall (1) be 1001
required to collect and remit for each such sale any tax imposed under 1002
section 12-408, (2) be responsible for all obligations imposed under this 1003
chapter as if such short-term rental facilitator was the operator of such 1004
[lodging house] short-term rental and retailer for such sale, and (3) keep 1005
such records and information as may be required by the Commissioner 1006
of Revenue Services to ensure proper collection and remittance of such 1007
tax. 1008
Sec. 18. Section 12-410 of the general statutes is repealed and the 1009
following is substituted in lieu thereof (Effective October 1, 2021): 1010 Raised Bill No. 6658
LCO No. 5638 33 of 64
[(1)] (a) For the purpose of the proper administration of this chapter 1011
and to prevent evasion of the sales tax it shall be presumed that all 1012
receipts are gross receipts that are subject to the tax until the contrary is 1013
established. The burden of proving that a sale of tangible personal 1014
property or service constituting a sale in accordance with subdivision 1015
(2) of subsection (a) of section 12-407 is not a sale at retail is upon the 1016
person who makes the sale unless such person takes in good faith from 1017
the purchaser a certificate to the effect that the property or service is 1018
purchased for resale. 1019
[(2)] (b) The certificate relieves the seller from the burden of proof 1020
only if taken in good faith from a person who is engaged in the business 1021
of selling tangible personal property or services constituting a sale in 1022
accordance with subdivision (2) of subsection (a) of section 12-407 and 1023
who holds the permit provided for in section 12-409 and who, at the 1024
time of purchasing the tangible personal property or service: [(A)] (1) 1025
Intends to sell it in the regular course of business; [(B)] (2) intends to 1026
utilize such personal property in the delivery of landscaping or 1027
horticulture services, provided the total sale price of all such 1028
landscaping and horticulture services are taxable under this chapter; or 1029
[(C)] (3) is unable to ascertain at the time of purchase whether the 1030
property or service will be sold or will be used for some other purpose. 1031
The burden of establishing that a certificate is taken in good faith is on 1032
the seller. A certificate to the effect that property or service is purchased 1033
for resale taken from the purchaser by the seller shall be deemed to be 1034
taken in good faith if the tangible personal property or service 1035
purchased is similar to or of the same general character as property or 1036
service which the seller could reasonably assume would be sold by the 1037
purchaser in the regular course of business. 1038
[(3)] (c) The certificate shall be signed by and bear the name and 1039
address of the purchaser, shall indicate the number of the permit issued 1040
to the purchaser and shall indicate the general character of the tangible 1041
personal property or service sold by the purchaser in the regular course 1042
of business. The certificate shall be substantially in such form as the 1043
commissioner prescribes. 1044 Raised Bill No. 6658
LCO No. 5638 34 of 64
[(4) (A)] (d) (1) If a purchaser who gives a certificate makes any use 1045
of the service or property other than retention, demonstration or display 1046
while holding it for sale in the regular course of business, the use shall 1047
be deemed a retail sale by the purchaser as of the time the service or 1048
property is first used by the purchaser, and the cost of the service or 1049
property to the purchaser shall be deemed the gross receipts from such 1050
retail sale. 1051
[(B)] (2) Notwithstanding the provisions of [subparagraph (A) of this] 1052
subdivision (1) of this subsection, any use by a certificated air carrier of 1053
an aircraft for purposes other than retention, demonstration or display 1054
while holding it for sale in the regular course of business shall not be 1055
deemed a retail sale by such carrier as of the time the aircraft is first used 1056
by such carrier, irrespective of the classification of such aircraft on the 1057
balance sheet of such carrier for accounting and tax purposes. 1058
[(5) (A)] (e) (1) For the purpose of the proper administration of this 1059
chapter and to prevent evasion of the sales tax, a sale of any service 1060
described in subdivision (37) of subsection (a) of section 12-407 shall be 1061
considered a sale for resale only if the service to be resold is an integral, 1062
inseparable component part of a service described in said subdivision 1063
that is to be subsequently sold by the purchaser to an ultimate 1064
consumer. The purchaser of the service for resale shall maintain, in such 1065
form as the commissioner requires, records that substantiate: [(i)] (A) 1066
From whom the service was purchased and to whom the service was 1067
sold, [(ii)] (B) the purchase price of the service, and [(iii)] (C) the nature 1068
of the service to demonstrate that the services were an integral, 1069
inseparable component part of a service described in subdivision (37) of 1070
subsection (a) of section 12-407 that was subsequently sold to a 1071
consumer. 1072
[(B)] (2) Notwithstanding the provisions of [subparagraph (A) of this] 1073
subdivision (1) of this subsection, no sale of a service described in 1074
subdivision (37) of subsection (a) of section 12-407 by a seller shall be 1075
considered a sale for resale if such service is to be subsequently sold by 1076
the purchaser to an ultimate consumer that is affiliated with the 1077 Raised Bill No. 6658
LCO No. 5638 35 of 64
purchaser in the manner described in subparagraph (A) of subdivision 1078
(62) of section 12-412. 1079
[(C)] (3) For purposes of [subparagraph (A) of this] subdivision (1) of 1080
this subsection, the sale of canned or prewritten computer software shall 1081
be considered a sale for resale if such software is subsequently sold, 1082
licensed or leased unaltered by the purchaser to an ultimate consumer. 1083
The purchaser of the software for resale shall maintain, in such form as 1084
the commissioner requires, records that substantiate: [(i)] (A) From 1085
whom the software was purchased and to whom the software was sold, 1086
licensed or leased, [(ii)] (B) the purchase price of the software, and [(iii)] 1087
(C) the nature of the transaction with the ultimate consumer to 1088
demonstrate that the same software was provided unaltered to the 1089
ultimate consumer. 1090
[(D)] (4) For purposes of [subparagraph (A) of this] subdivision (1) of 1091
this subsection, the sale of digital goods shall be considered a sale for 1092
resale if the digital goods are subsequently sold, licensed, leased, 1093
broadcast, transmitted, or distributed, in whole or in part, as an integral, 1094
inseparable component part of a digital good or service described in 1095
subdivision (26), (27), (37) or (39) of subsection (a) of section 12-407 by 1096
the purchaser of the digital goods to an ultimate consumer. The 1097
purchaser of the digital goods for resale shall maintain, in such form as 1098
the commissioner requires, records that substantiate: [(i)] (A) From 1099
whom the digital goods were purchased and to whom the services 1100
described in subdivision (26), (27), (37) or (39) of subsection (a) of section 1101
12-407 was sold, licensed, leased, broadcast, transmitted, or distributed, 1102
in whole or in part, [(ii)] (B) the purchase price of the digital goods, and 1103
[(iii)] (C) the nature of the transaction with the ultimate consumer. 1104
[(E)] (5) For purposes of [subparagraph (A) of this] subdivision (1) of 1105
this subsection, the sale of services described in subdivision (37) of 1106
subsection (a) of section 12-407 shall be considered a sale for resale if 1107
such services are subsequently resold as an integral inseparable 1108
component part of digital goods sold by the purchaser of the services to 1109
an ultimate consumer of the digital goods. The purchaser of the services 1110 Raised Bill No. 6658
LCO No. 5638 36 of 64
described in subdivision (37) of subsection (a) of section 12-407 for resale 1111
shall maintain, in such form as the commissioner requires, records that 1112
substantiate: [(i)] (A) From whom the services described in subdivision 1113
(37) of subsection (a) of section 12-407 were [purchases] purchased and 1114
to whom the digital goods were sold, licensed, or leased, [(ii)] (B) the 1115
purchase prices of the services described in subdivision (37) of 1116
subsection (a) of section 12-407, and [(iii)] (C) the nature of the 1117
transaction with the ultimate consumer. 1118
[(6)] (f) For the purpose of the proper administration of this chapter 1119
and to prevent evasion of the sales tax, no sale of any service by a seller 1120
shall be considered a sale for resale if such service is to be subsequently 1121
sold by the purchaser, without change, to an ultimate consumer that is 1122
affiliated with the purchaser in the manner described in subparagraph 1123
(A) of subdivision (62) of section 12-412. 1124
Sec. 19. Subdivision (120) of section 12-412 of the general statutes is 1125
repealed and the following is substituted in lieu thereof (Effective October 1126
1, 2021): 1127
(120) [On and after April 1, 2015, sales] Sales of the following 1128
nonprescription drugs or medicines available for purchase for use in or 1129
on the body: Vitamin or mineral concentrates; dietary supplements; 1130
natural or herbal drugs or medicines; products intended to be taken for 1131
coughs, cold, asthma or allergies, or antihistamines; laxatives; 1132
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral 1133
and antifungal medicines; antiseptics; astringents; anesthetics; steroidal 1134
medicines; anthelmintics; emetics and antiemetics; antacids; and any 1135
medication prepared to be used in the eyes, ears or nose. 1136
Nonprescription drugs or medicines shall not include cosmetics, 1137
[dentrifrices] dentifrices, mouthwash, shaving and hair care products, 1138
soaps or deodorants. 1139
Sec. 20. Subsection (c) of section 12-414 of the general statutes is 1140
repealed and the following is substituted in lieu thereof (Effective October 1141
1, 2021): 1142 Raised Bill No. 6658
LCO No. 5638 37 of 64
(c) (1) For purposes of the sales tax, the return shall show the gross 1143
receipts of the seller during the preceding reporting period. For 1144
purposes of the use tax, [(1)] (A) in case of a return filed by a retailer, the 1145
return shall show the total sales price of the services or property sold by 1146
the retailer, the storage, acceptance, consumption or other use of which 1147
became subject to the use tax during the preceding reporting period, and 1148
[(2)] (B) in case of a return filed by a purchaser, the return shall show the 1149
total sales price of the service or property purchased by the purchaser, 1150
the storage, acceptance, consumption or other use of which became 1151
subject to the use tax during the preceding reporting period. The return 1152
shall also show the amount of the taxes for the period covered by the 1153
return in such manner as the commissioner may require and such other 1154
information as the commissioner deems necessary for the proper 1155
administration of this chapter. 1156
(2) The Commissioner of Revenue Services is authorized in his or her 1157
discretion, for purposes of expediency, to permit returns to be filed in 1158
an alternative form wherein the person filing the return may elect (A) to 1159
report his or her gross receipts, including the tax reimbursement to be 1160
collected as provided for in this section, as a part of such gross receipts, 1161
or (B) to report his or her gross receipts exclusive of the tax collected in 1162
such cases where the gross receipts from sales have been segregated 1163
from tax collections. In the case of [the former] a return filed in 1164
accordance with the provisions of subparagraph (A) of this subdivision, 1165
the percentage of such tax-included gross receipts that may be 1166
considered to be the gross receipts from sales exclusive of the taxes 1167
collected thereon shall be computed by dividing the numeral one by the 1168
sum of the rate of tax provided in section 12-408, expressed as a decimal, 1169
and the numeral one. 1170
Sec. 21. Section 12-433 of the general statutes is repealed and the 1171
following is substituted in lieu thereof (Effective October 1, 2021): 1172
Wherever used in this chapter, unless the context otherwise requires: 1173
(1) "Alcoholic beverage" and "beverage" include wine, beer and 1174 Raised Bill No. 6658
LCO No. 5638 38 of 64
liquor; [as defined in this section; "absolute alcohol"] 1175
(2) "Absolute alcohol" means dehydrated alcohol containing not less 1176
than ninety-nine per cent by weight of ethyl alcohol; ["beer"] 1177
(3) "Beer" means any beverage obtained by the alcoholic fermentation 1178
of an infusion or decoction of barley, malt and hops in drinking water 1179
and containing more than one-half of one per cent of absolute alcohol 1180
by volume; ["wine"] 1181
(4) "Wine" means any alcoholic beverage obtained by the 1182
fermentation of natural sugar contents of fruits or other agricultural 1183
products containing sugar; ["still wine"] 1184
(5) "Still wine" means any wine that contains not more than three 1185
hundred ninety-two one thousandths (0.392) of a gram of carbon 1186
dioxide per hundred milliliters of wine, and shall include any fortified 1187
wine, cider that is made from the alcoholic fermentation of the juice of 1188
apples, vermouth and any artificial or imitation wine or compound sold 1189
as "still wine" containing not less than three and two-tenths per cent of 1190
absolute alcohol by volume; ["sparkling wine"] 1191
(6) "Sparkling wine" means champagne and any other effervescent 1192
wine charged with more than three hundred ninety -two one 1193
thousandths (0.392) of a gram of carbon dioxide per hundred milliliters 1194
of wine, whether artificially or as a result of secondary fermentation of 1195
the wine within the container; ["fortified wine"] 1196
(7) "Fortified wine" means any wine, the alcoholic contents of which 1197
have been increased, by whatever process, beyond that produced by 1198
natural fermentation; ["liquor"] 1199
(8) "Liquor" means any beverage which contains alcohol obtained by 1200
distillation mixed with drinkable water and other substances in 1201
solution; ["liquor cooler"] 1202
(9) "Liquor cooler" means any liquid combined with liquor, as 1203
defined in this section, containing not more than seven per cent of 1204 Raised Bill No. 6658
LCO No. 5638 39 of 64
alcohol by volume; ["gallon"] 1205
(10) "Gallon" or "wine gallon" means one hundred twenty-eight fluid 1206
ounces; ["proof gallon"] 1207
(11) "Proof gallon" means the equivalent of one wine gallon at 100 1208
proof; ["proof spirit"] 1209
(12) "Proof spirit" or "proof" [shall be held to be that] means alcoholic 1210
liquor [which] that contains one-half by volume of alcohol of a specific 1211
gravity of seventy-nine hundred and thirty-nine ten-thousandths 1212
(0.7939) at 60° F; ["alcohol"] 1213
(13) "Alcohol" means ethyl alcohol, hydrated oxide of ethyl or spirit 1214
of wine, from whatever source or by whatever process produced; 1215
["person"] 1216
(14) "Person" means any individual, firm, fiduciary, partnership, 1217
corporation, limited liability company, trust or association, however 1218
formed; ["taxpayer"] 1219
(15) "Taxpayer" means any person liable to taxation under this 1220
chapter except railroad and airline companies so far as they conduct 1221
such beverage business in cars or passenger trains or on airplanes; 1222
["distributor"] 1223
(16) "Distributor" means any person, wherever resident or located, 1224
[who] that holds a wholesaler's or manufacturer's permit or wholesaler 1225
or manufacturer permit for beer only issued under chapter 545, or [his] 1226
such person's backer, if any; ["licensed distributor"] 1227
(17) "Licensed distributor" means a distributor holding a license 1228
issued by the Commissioner of Revenue Services under the provisions 1229
of this chapter; ["tax period"] 1230
(18) "Tax period" means any period of one calendar month, or any 1231
part thereof; ["barrel"] 1232 Raised Bill No. 6658
LCO No. 5638 40 of 64
(19) "Barrel" means not less than twenty-eight nor more than thirty-1233
one gallons; ["half barrel"] 1234
(20) "Half barrel" means not less than fourteen nor more than fifteen 1235
and one-half gallons; ["quarter barrel"] 1236
(21) "Quarter barrel" means not less than seven nor more than seven 1237
and three-quarters gallons; ["sell"] 1238
(22) "Sell" or "sale" includes and applies to gifts, exchanges and barter 1239
and includes any alcoholic beverages coming into the possession of a 1240
distributor [which] that cannot be satisfactorily accounted for by the 1241
distributor to the Commissioner of Revenue Services. 1242
Sec. 22. Section 12-438 of the general statutes is repealed and the 1243
following is substituted in lieu thereof (Effective October 1, 2021): 1244
Any person who applies for a cancellation of [his] such person's 1245
distributor's license shall take an inventory at the beginning of business 1246
on the first day of the following month showing the number of gallons 1247
of each kind of alcoholic beverage mentioned in section 12-435 owned 1248
by [him] such person and held within the state. Each such person shall, 1249
[within] not later than fifteen days after taking such inventory, file a 1250
copy of such inventory with the commissioner, on forms prescribed and 1251
furnished by [him] the commissioner, and shall pay a tax on such 1252
inventory at the rates specified in said section 12-435. Each return filed 1253
under the provisions of this section shall give such additional 1254
information as the commissioner requires and shall include a statement 1255
of the amount of tax due under such return. 1256
Sec. 23. Subsection (c) of section 12-458 of the general statutes is 1257
repealed and the following is substituted in lieu thereof (Effective October 1258
1, 2021): 1259
(c) Any person who owns or operates a vehicle that runs only upon 1260
rails or tracks and that is properly registered with the federal 1261
government, in accordance with the provisions of Section 4222 of the 1262 Raised Bill No. 6658
LCO No. 5638 41 of 64
Internal Revenue Code of 1986, or any subsequent corresponding 1263
internal revenue code of the United States, as amended from time to 1264
time, shall be exempt from paying to a distributor the motor fuels tax 1265
imposed pursuant to this section for use in such vehicle. 1266
Sec. 24. Section 12-587 of the general statutes is repealed and the 1267
following is substituted in lieu thereof (Effective October 1, 2021): 1268
(a) (1) As used in this chapter: (A) "Company" includes a corporation, 1269
partnership, limited partnership, limited liability company, limited 1270
liability partnership, association, individual or any fiduciary thereof; (B) 1271
"quarterly period" means a period of three calendar months 1272
commencing on the first day of January, April, July or October and 1273
ending on the last day of March, June, September or December, 1274
respectively; (C) except as provided in subdivision (2) of this subsection, 1275
"gross earnings" means all consideration received from the first sale 1276
within this state of a petroleum product; (D) "petroleum products" 1277
means those products which contain or are made from petroleum or a 1278
petroleum derivative; (E) "first sale of petroleum products within this 1279
state" means the initial sale of a petroleum product delivered to a 1280
location in this state; (F) "export" or "exportation" means the conveyance 1281
of petroleum products from within this state to a location outside this 1282
state for the purpose of sale or use outside this state; and (G) "sale for 1283
exportation" means a sale of petroleum products to a purchaser which 1284
itself exports such products. 1285
(2) For purposes of this chapter, "gross earnings" means gross 1286
earnings as defined in subdivision (1) of this subsection, except, with 1287
respect to the first sale of gasoline or gasohol within this state, if the 1288
consideration received from such first sale reflects a price of gasoline or 1289
gasohol sold or used in this state in excess of three dollars per gallon, 1290
gross earnings from such first sale shall be deemed to be three dollars 1291
per gallon, and any consideration received that is derived from that 1292
portion of the price of such gasoline or gasohol in excess of three dollars 1293
per gallon shall be disregarded in the calculation of gross earnings. 1294
Notwithstanding the provisions of this chapter, the Commissioner of 1295 Raised Bill No. 6658
LCO No. 5638 42 of 64
Revenue Services may suspend enforcement activities with respect to 1296
this subdivision until all policies and procedures necessary to 1297
implement the provision of this subdivision are in place, but in no event 1298
shall such suspension extend beyond April 15, 2012. 1299
(b) (1) Except as otherwise provided in subdivision (2) of this 1300
subsection, any company [which] that is engaged in the refining or 1301
distribution, or both, of petroleum products and which distributes such 1302
products in this state shall pay a quarterly tax on its gross earnings 1303
derived from the first sale of petroleum products within this state. Each 1304
company shall on or before the last day of the month next succeeding 1305
each quarterly period render to the commissioner a return on forms 1306
prescribed or furnished by the commissioner and signed by the person 1307
performing the duties of treasurer or an authorized agent or officer, 1308
including the amount of gross earnings derived from the first sale of 1309
petroleum products within this state for the quarterly period and such 1310
other facts as the commissioner may require for the purpose of making 1311
any computation required by this chapter. [Except as otherwise 1312
provided in subdivision (3) of this subsection, the] The rate of tax shall 1313
be (A) [five per cent with respect to calendar quarters prior to July 1, 1314
2005; (B) five and eight-tenths per cent with respect to calendar quarters 1315
commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six 1316
and three-tenths per cent with respect to calendar quarters commencing 1317
on or after July 1, 2006, and prior to July 1, 2007; (D)] seven per cent with 1318
respect to calendar quarters commencing on or after July 1, 2007, and 1319
prior to July 1, 2013; and [(E)] (B) eight and one-tenth per cent with 1320
respect to calendar quarters commencing on or after July 1, 2013. 1321
(2) Gross earnings derived from the first sale of the following 1322
petroleum products within this state shall be exempt from tax: 1323
(A) Any petroleum products sold for exportation from this state for 1324
sale or use outside this state; 1325
(B) [the] The product designated by the American Society for Testing 1326
and Materials as "Specification for Heating Oil D396-69", commonly 1327 Raised Bill No. 6658
LCO No. 5638 43 of 64
known as number 2 heating oil, to be used exclusively for heating 1328
purposes or to be used in a commercial fishing vessel, which vessel 1329
qualifies for an exemption pursuant to subdivision (4) of section 12-412; 1330
(C) [kerosene] Kerosene, commonly known as number 1 oil, to be 1331
used exclusively for heating purposes, provided delivery is of both 1332
number 1 and number 2 oil, and via a truck with a metered delivery 1333
ticket to a residential dwelling or to a centrally metered system serving 1334
a group of residential dwellings; 1335
(D) [the] The product identified as propane gas, to be used primarily 1336
for heating purposes; 1337
(E) [bunker] Bunker fuel oil, intermediate fuel, marine diesel oil and 1338
marine gas oil to be used in any vessel (i) having a displacement 1339
exceeding four thousand dead weight tons, or (ii) primarily engaged in 1340
interstate commerce; 1341
(F) [for] For any first sale occurring prior to July 1, 2008, propane gas 1342
to be used as a fuel for a motor vehicle; 1343
(G) [for] For any first sale occurring on or after July 1, 2002, grade 1344
number 6 fuel oil, as defined in regulations adopted pursuant to section 1345
16a-22c, to be used exclusively by a company [which] that, in accordance 1346
with census data contained in the Standard Industrial Classification 1347
Manual, United States Office of Management and Budget, 1987 edition, 1348
is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 1349
32 or 33 in the North American Industrial Classification System United 1350
States Manual, United States Office of Management and Budget, 1997 1351
edition; 1352
(H) [for] For any first sale occurring on or after July 1, 2002, number 1353
2 heating oil to be used exclusively in a vessel primarily engaged in 1354
interstate commerce, which vessel qualifies for an exemption under 1355
subdivision (40) of section 12-412; 1356
(I) [for] For any first sale occurring on or after July 1, 2000, paraffin or 1357 Raised Bill No. 6658
LCO No. 5638 44 of 64
microcrystalline waxes; 1358
(J) [for] For any first sale occurring prior to July 1, 2008, petroleum 1359
products to be used as a fuel for a fuel cell, as defined in subdivision 1360
(113) of section 12-412; 1361
(K) [a] A commercial heating oil blend containing not less than ten 1362
per cent of alternative fuels derived from agricultural produce, food 1363
waste, waste vegetable oil or municipal solid waste, including, but not 1364
limited to, biodiesel or low sulfur dyed diesel fuel; 1365
(L) [for] For any first sale occurring on or after July 1, 2007, diesel fuel 1366
other than diesel fuel to be used in an electric generating facility to 1367
generate electricity; 1368
(M) [for] For any first sale occurring on or after July 1, 2013, cosmetic 1369
grade mineral oil; or 1370
(N) [propane] Propane gas to be used as a fuel for a school bus. 1371
[(3) The rate of tax on gross earnings derived from the first sale of 1372
grade number 6 fuel oil, as defined in regulations adopted pursuant to 1373
section 16a-22c, to be used exclusively by a company which, in 1374
accordance with census data contained in the Standard Industrial 1375
Classification Manual, United States Office of Management and Budget, 1376
1987 edition, is included in code classifications 2000 to 3999, inclusive, 1377
or in Sector 31, 32 or 33 in the North American Industrial Classification 1378
System United States Manual, United States Office of Management and 1379
Budget, 1997 edition, or number 2 heating oil used exclusively in a 1380
vessel primarily engaged in interstate commerce, which vessel qualifies 1381
for an exemption under section 12-412 shall be: (A) Four per cent with 1382
respect to calendar quarters commencing on or after July 1, 1998, and 1383
prior to July 1, 1999; (B) three per cent with respect to calendar quarters 1384
commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two 1385
per cent with respect to calendar quarters commencing on or after July 1386
1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to 1387
calendar quarters commencing on or after July 1, 2001, and prior to July 1388 Raised Bill No. 6658
LCO No. 5638 45 of 64
1, 2002.] 1389
(c) (1) Any company [which] that imports or causes to be imported 1390
into this state petroleum products for sale, use or consumption in this 1391
state, other than a company subject to and having paid the tax on such 1392
company's gross earnings from first sales of petroleum products within 1393
this state, which earnings include gross earnings attributable to such 1394
imported or caused to be imported petroleum products, in accordance 1395
with subsection (b) of this section, shall pay a quarterly tax on the 1396
consideration given or contracted to be given for such petroleum 1397
product if the consideration given or contracted to be given for all such 1398
deliveries during the quarterly period for which such tax is to be paid 1399
exceeds three thousand dollars. [Except as otherwise provided in 1400
subdivision (3) of this subsection, the] The rate of tax shall be (A) [five 1401
per cent with respect to calendar quarters commencing prior to July 1, 1402
2005; (B) five and eight-tenths per cent with respect to calendar quarters 1403
commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six 1404
and three-tenths per cent with respect to calendar quarters commencing 1405
on or after July 1, 2006, and prior to July 1, 2007; (D)] seven per cent with 1406
respect to calendar quarters commencing on or after July 1, 2007, and 1407
prior to July 1, 2013; and [(E)] (B) eight and one-tenth per cent with 1408
respect to calendar quarters commencing on or after July 1, 2013. Fuel in 1409
the fuel supply tanks of a motor vehicle, which fuel tanks are directly 1410
connected to the engine, shall not be considered a delivery for the 1411
purposes of this subsection. 1412
(2) Consideration given or contracted to be given for petroleum 1413
products, gross earnings from the first sale of which are exempt from 1414
tax under subdivision (2) of subsection (b) of this section, shall be 1415
exempt from tax. 1416
[(3) The rate of tax on consideration given or contracted to be given 1417
for grade number 6 fuel oil, as defined in regulations adopted pursuant 1418
to section 16a-22c, to be used exclusively by a company which, in 1419
accordance with census data contained in the Standard Industrial 1420
Classification Manual, United States Office of Management and Budget, 1421 Raised Bill No. 6658
LCO No. 5638 46 of 64
1987 edition, is included in code classifications 2000 to 3999, inclusive, 1422
or in Sector 31, 32 or 33 in the North American Industrial Classification 1423
System United States Manual, United States Office of Management and 1424
Budget, 1997 edition, or number 2 heating oil used exclusively in a 1425
vessel primarily engaged in interstate commerce, which vessel qualifies 1426
for an exemption under section 12-412 shall be: (A) Four per cent with 1427
respect to calendar quarters commencing on or after July 1, 1998, and 1428
prior to July 1, 1999; (B) three per cent with respect to calendar quarters 1429
commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two 1430
per cent with respect to calendar quarters commencing on or after July 1431
1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to 1432
calendar quarters commencing on or after July 1, 2001, and prior to July 1433
1, 2002.] 1434
(d) The amount of tax reported to be due on such return shall be due 1435
and payable on or before the last day of the month next succeeding the 1436
quarterly period. The tax imposed under the provisions of this chapter 1437
shall be in addition to any other tax imposed by this state on such 1438
company. 1439
(e) For the purposes of this chapter, the gross earnings of any 1440
producer or refiner of petroleum products operating a service station 1441
along the highways or interstate highways within the state pursuant to 1442
a contract with the Department of Transportation or operating a service 1443
station which is used as a training or test marketing center under the 1444
provisions of subsection (b) of section 14-344d, shall be calculated by 1445
multiplying the volume of petroleum products delivered by any 1446
producer or refiner to any such station by such producer's or refiner's 1447
dealer tank wagon price or dealer wholesale price in the area of the 1448
service station. 1449
Sec. 25. Subsection (a) of section 12-587a of the general statutes is 1450
repealed and the following is substituted in lieu thereof (Effective October 1451
1, 2021): 1452
(a) (1) Any company, as such term is used in section 12-587, as 1453 Raised Bill No. 6658
LCO No. 5638 47 of 64
amended by this act, liable for the tax imposed under subsection (b) of 1454
[said] section 12-587, as amended by this act, on gross earnings from the 1455
first sale of petroleum products within this state, which products the 1456
purchaser thereof subsequently sells for exportation and sale or use 1457
outside this state, shall be allowed a credit against any tax for which 1458
such company is liable in accordance with subsection (b) of said section 1459
12-587, in the amount of tax paid to the state with respect to the sale of 1460
such products, provided (A) such purchaser has submitted certification 1461
to such company, in such form as prescribed by the Commissioner of 1462
Revenue Services, that such products were sold or used outside this 1463
state, (B) such certification and any additional information related to 1464
such sale or use by such purchaser, which said commissioner may 1465
request, have been submitted to said commissioner, and (C) such 1466
company makes a payment to such purchaser, related to such products 1467
sold or used outside this state, in the amount equal to the tax imposed 1468
under [said] section 12-587, as amended by this act, on gross earnings 1469
from the first sale to such purchaser within the state. 1470
(2) The credit allowed pursuant to subdivision (1) of this subsection 1471
may also be claimed, in the same manner as provided in said 1472
subdivision, [(1),] by any such company when the petroleum products 1473
sold in a first sale within this state by such company are incorporated 1474
by the purchaser thereof into a material that is included in U.S. industry 1475
group 3255 in the North American Industrial Classification System 1476
United States Manual, United States Office of Management and Budget, 1477
2007 edition, and such products are subsequently exported for sale or 1478
use outside this state. Such company shall be allowed [said] such credit 1479
in the amount of tax paid to the state with respect to the sale of such 1480
products. 1481
(3) In addition, such company shall be allowed such credit when 1482
there has been any sale of such products subsequent to the sale by such 1483
company but prior to sale or use outside this state, provided (A) each 1484
purchaser receives payment, related to such products sold or used 1485
outside this state, equal to the tax imposed under [said] section 12-587, 1486
as amended by this act, on gross earnings from the first sale of such 1487 Raised Bill No. 6658
LCO No. 5638 48 of 64
products within this state, and (B) the purchaser selling or using such 1488
products outside this state complies with the requirements in this 1489
section related to a purchaser of such products from the company liable 1490
for such tax. 1491
Sec. 26. Section 12-631 of the general statutes is repealed and the 1492
following is substituted in lieu thereof (Effective October 1, 2021): 1493
As used in this chapter, the following terms have the following 1494
meanings: 1495
[(a)] (1) "Business firm" means any business entity authorized to do 1496
business in the state and subject to the tax due under the provisions of 1497
chapter 207, 208, 209, 210, 211, 212 or 213a. 1498
[(b)] (2) "Community services" means any type of counseling and 1499
advice, emergency assistance or medical care furnished to individuals 1500
or groups in the state. 1501
[(c)] (3) "Crime prevention" means any activity which aids in the 1502
reduction of crime in the state. 1503
[(d)] (4) "Education" means any type of scholastic instruction or 1504
scholarship assistance to any person who resides in the state that enables 1505
such person to prepare for better opportunities, including teaching 1506
services donated pursuant to section 10-21c. 1507
[(e)] (5) "Job training" means any type of instruction to any person 1508
who resides in the state that enables such person to acquire vocational 1509
skills to become employable or seek a higher grade of employment, 1510
including training offered pursuant to section 10-21b. 1511
[(f)] (6) "Neighborhood" means any specific geographic area, urban, 1512
interurban, suburban, or rural, which is experiencing problems 1513
endangering its existence as a viable and stable neighborhood. 1514
[(g)] (7) "Neighborhood assistance" means the furnishing of financial 1515
assistance, labor, material, or technical advice to aid in the physical 1516 Raised Bill No. 6658
LCO No. 5638 49 of 64
improvement or rehabilitation of all or any part of a neighborhood. 1517
[(h)] (8) "Neighborhood organization" means any organization 1518
performing community services in the state [which: (1)] that: (A) Holds 1519
a ruling from the Internal Revenue Service of the United States 1520
Department of the Treasury that the organization is exempt from 1521
income taxation under the provisions of the Internal Revenue Code; [, 1522
or (2)] (B) is designated as a community development corporation by 1523
the United States government under the provisions of Title VII of the 1524
Economic Opportunity Act of 1964; [, or (3)] or (C) is incorporated as a 1525
charitable corporation or trust under the provisions of chapter 598a. 1526
[(i)] (9) "Families of low and moderate income" means families 1527
meeting the criteria for designation as families of low and moderate 1528
income established by the Commissioner of Housing pursuant to 1529
subsection (f) of section 8-39. 1530
Sec. 27. Subdivision (1) of subsection (a) of section 12-632 of the 1531
general statutes is repealed and the following is substituted in lieu 1532
thereof (Effective October 1, 2021): 1533
(a) (1) Except as otherwise provided in subdivision (2) of this 1534
subsection, on or before July first of each year, any municipality desiring 1535
to obtain benefits under the provisions of this chapter shall, after 1536
approval by the legislative body of such municipality, submit to the 1537
Commissioner of Revenue Services a list on a form prescribed and made 1538
available by the commissioner of programs eligible for investment by 1539
business firms under the provisions of this chapter. Such activities shall 1540
consist of providing neighborhood assistance; job training or education; 1541
community services; crime prevention; energy conservation or 1542
construction or rehabilitation of dwelling units for families of low and 1543
moderate income in the state; donation of money to an open space 1544
acquisition fund of any political subdivision of the state or any nonprofit 1545
land conservation organization, which fund qualifies under [subsection 1546
(h)] subdivision (8) of section 12-631, as amended by this act, and is used 1547
for the purchase of land, interest in land or permanent conservation 1548 Raised Bill No. 6658
LCO No. 5638 50 of 64
restriction on land which is to be permanently preserved as protected 1549
open space; or any of the activities described in section 12-634, 12-635 or 1550
12-635a. Such list shall indicate, for each program specified: The concept 1551
of the program, the neighborhood area to be served, why the program 1552
is needed, the estimated amount required to be invested in the program, 1553
the suggested plan for implementing the program, the agency 1554
designated by the municipality to oversee implementation of the 1555
program and such other information as the commissioner may 1556
prescribe. Each municipality shall hold at least one public hearing on 1557
the subject of which programs shall be included on such list prior to the 1558
submission of such list to the commissioner. 1559
Sec. 28. Subsection (c) of section 12-632 of the general statutes is 1560
repealed and the following is substituted in lieu thereof (Effective October 1561
1, 2021): 1562
(c) Any business firm [which] that desires to engage in any of the 1563
activities or programs approved by any municipality pursuant to 1564
subsection (a) of this section and listed pursuant to subsection (b) of this 1565
section may apply to the Commissioner of Revenue Services for a tax 1566
credit in an amount as provided in section 12-633, 12-634, 12-635 or 12-1567
635a. The proposal for such credit, which shall be made on a form 1568
prescribed and made available by the commissioner, shall set forth the 1569
program to be conducted, the neighborhood area to be invested in, the 1570
plans for implementing the program and such other information as said 1571
commissioner may prescribe. Such proposals shall be submitted to the 1572
commissioner on or after September fifteenth but no later than October 1573
first of each year. Such proposals shall be approved or disapproved by 1574
the [Commissioner of Revenue Services] commissioner based on the 1575
compliance of such proposal with the provisions of this chapter and 1576
regulations adopted pursuant to this chapter. The commissioner may 1577
only approve proposals received between September fifteenth and 1578
October first of each year. If, in the opinion of the [Commissioner of 1579
Revenue Services] commissioner, a business firm's investment can, for 1580
the purposes of this chapter, be made through contributions to a 1581
neighborhood organization as defined in [subsection (h)] subdivision (8) 1582 Raised Bill No. 6658
LCO No. 5638 51 of 64
of section 12-631, as amended by this act, tax credits may be allowed in 1583
amounts as provided in section 12-633, 12-634, 12-635 or 12-635a. 1584
Sec. 29. Subsection (f) of section 12-632 of the general statutes is 1585
repealed and the following is substituted in lieu thereof (Effective October 1586
1, 2021): 1587
(f) The sum of all tax [credit] credits granted pursuant to the 1588
provisions of section 12-633, 12-634, 12-635 or 12-635a shall not exceed 1589
one hundred fifty thousand dollars annually per business firm and no 1590
tax credit shall be granted to any business firm for any individual 1591
amount invested of less than two hundred fifty dollars. 1592
Sec. 30. Section 17b-738 of the general statutes is repealed and the 1593
following is substituted in lieu thereof (Effective October 1, 2021): 1594
The Commissioner of Early Childhood shall establish and administer 1595
a program of loans to business firms, as defined in [subsection (a) of] 1596
section 12-631, as amended by this act, for the purpose of planning, site 1597
preparation, construction, renovation or acquisition of facilities, within 1598
the state, for use as licensed child care centers, family child care homes 1599
or group child care homes to be used primarily by the children of 1600
employees of such corporations and children of employees of the 1601
municipalities in which such facilities are located. Such loans shall be 1602
made in accordance with the terms and conditions as provided in 1603
regulations adopted by the commissioner, in accordance with chapter 1604
54, shall be made for a period not to exceed five years and shall bear 1605
interest at a rate to be determined in accordance with subsection (t) of 1606
section 3-20. 1607
Sec. 31. Section 12-657 of the general statutes is repealed and the 1608
following is substituted in lieu thereof (Effective October 1, 2021): 1609
The administration of this chapter is vested in the Commissioner of 1610
Revenue Services. All forms necessary and proper for the enforcement 1611
of this chapter shall be prescribed and furnished by the commissioner. 1612
The commissioner may require any agent, clerk, stenographer or other 1613 Raised Bill No. 6658
LCO No. 5638 52 of 64
assistant to execute a bond in such sum as said commissioner 1614
determines for the faithful discharge of his duties. The commissioner 1615
may prescribe regulations and rulings, not inconsistent with law, to 1616
carry into effect the provisions of this chapter, which regulations and 1617
rulings, when reasonably designed to carry out the intent and purpose 1618
of this chapter, shall be prima facie evidence of its proper interpretation. 1619
The commissioner shall, at least annually, and [oftener in his] more 1620
often at the commissioner's discretion, publish for distribution all 1621
regulations prescribed hereunder and such rulings as appear to [him] 1622
the commissioner to be of general interest. 1623
Sec. 32. Subdivision (1) of subsection (b) of section 12-699a of the 1624
general statutes is repealed and the following is substituted in lieu 1625
thereof (Effective October 1, 2021): 1626
(b) (1) Each affected business entity required to pay the tax imposed 1627
under section 12-699 and whose required annual payment for the 1628
taxable year is greater than or equal to one thousand dollars shall make 1629
the required annual payment each taxable year, in four required 1630
estimated tax installments on the following due dates: (A) For the first 1631
required installment, the fifteenth day of the fourth month of the taxable 1632
year; (B) for the second required installment, the fifteenth day of the 1633
sixth month of the taxable year; (C) for the third required installment, 1634
the fifteenth day of the ninth month of the taxable year; [,] and (D) for 1635
the fourth required installment, the fifteenth day of the first month of 1636
the next succeeding taxable year. An affected business entity may elect 1637
to pay any required installment prior to the specified due date. Except 1638
as provided in subdivision (2) of this subsection, the amount of each 1639
required installment shall be twenty-five per cent of the required annual 1640
payment. 1641
Sec. 33. Subdivision (10) of subsection (a) of section 12-701 of the 1642
general statutes is repealed and the following is substituted in lieu 1643
thereof (Effective October 1, 2021): 1644
(10) "Connecticut fiduciary adjustment" means the net positive or 1645 Raised Bill No. 6658
LCO No. 5638 53 of 64
negative total of the following items relating to income, gain, loss or 1646
deduction of a trust or estate: 1647
(A) There shall be added together: 1648
(i) [any] Any interest income from obligations issued by or on behalf 1649
of any state, political subdivision thereof, or public instrumentality, 1650
state or local authority, district or similar public entity, exclusive of such 1651
income from obligations issued by or on behalf of the state of 1652
Connecticut, any political subdivision thereof, or public 1653
instrumentality, state or local authority, district or similar public entity 1654
created under the laws of the state of Connecticut and exclusive of any 1655
such income with respect to which taxation by any state is prohibited by 1656
federal law; [,] 1657
(ii) [any] Any exempt-interest dividends, as defined in Section 1658
852(b)(5) of the Internal Revenue Code, exclusive of such exempt-1659
interest dividends derived from obligations issued by or on behalf of the 1660
state of Connecticut, any political subdivision thereof, or public 1661
instrumentality, state or local authority, district or similar public entity 1662
created under the laws of the state of Connecticut and exclusive of such 1663
exempt-interest dividends derived from obligations, the income with 1664
respect to which taxation by any state is prohibited by federal law; [,] 1665
(iii) [any] Any interest or dividend income on obligations or securities 1666
of any authority, commission or instrumentality of the United States 1667
[which] that federal law exempts from federal income tax but does not 1668
exempt from state income taxes; [,] 1669
(iv) [to] To the extent properly includable in determining the net gain 1670
or loss from the sale or other disposition of capital assets for federal 1671
income tax purposes, any loss from the sale or exchange of obligations 1672
issued by or on behalf of the state of Connecticut, any political 1673
subdivision thereof, or public instrumentality, state or local authority, 1674
district or similar public entity created under the laws of the state of 1675
Connecticut, in the income year such loss was recognized; [,] 1676 Raised Bill No. 6658
LCO No. 5638 54 of 64
(v) [to] To the extent deductible in determining federal taxable 1677
income prior to deductions relating to distributions to beneficiaries, any 1678
income taxes imposed by this state; [,] 1679
(vi) [to] To the extent deductible in determining federal taxable 1680
income prior to deductions relating to distributions to beneficiaries, any 1681
interest on indebtedness incurred or continued to purchase or carry 1682
obligations or securities the interest on which is exempt from tax under 1683
this chapter; [,] 1684
(vii) [expenses] Expenses paid or incurred during the taxable year for 1685
the production or collection of income which is exempt from tax under 1686
this chapter, or the management, conservation or maintenance of 1687
property held for the production of such income, and the amortizable 1688
bond premium for the taxable year on any bond the interest on which is 1689
exempt from taxation under this chapter, to the extent that such 1690
expenses and premiums are deductible in determining federal taxable 1691
income prior to deductions relating to distributions to beneficiaries; [,] 1692
(viii) [to] To the extent deductible in determining federal taxable 1693
income prior to deductions relating to distributions to beneficiaries, the 1694
deduction allowable as qualified domestic production activities income, 1695
pursuant to Section 199 of the Internal Revenue Code; [,] and 1696
(ix) [to] To the extent not includable in federal taxable income prior 1697
to deductions relating to distributions to beneficiaries, the total amount 1698
of a lump sum distribution for the taxable year. 1699
(B) There shall be subtracted from the sum of such items: 1700
(i) [to] To the extent properly includable in gross income for federal 1701
income tax purposes, any income with respect to which taxation by any 1702
state is prohibited by federal law; [,] 1703
(ii) [to] To the extent allowable under section 12-718, exempt 1704
dividends paid by a regulated investment company; [,] 1705
(iii) [with] With respect to any trust or estate [which] that is a 1706 Raised Bill No. 6658
LCO No. 5638 55 of 64
shareholder of an S corporation [which] that is carrying on, or [which] 1707
that has the right to carry on, business in this state, as said term is used 1708
in section 12-214, as amended by this act, the amount of such 1709
shareholder's pro rata share of such corporation's nonseparately 1710
computed items, as defined in Section 1366 of the Internal Revenue 1711
Code, that is subject to tax under chapter 208, in accordance with 1712
subsection (c) of section 12-217 multiplied by such corporation's 1713
apportionment fraction, if any, as determined in accordance with 1714
section 12-218; [,] 1715
(iv) [to] To the extent properly includable in gross income for federal 1716
income tax purposes, any interest income from obligations issued by or 1717
on behalf of the state of Connecticut, any political subdivision thereof, 1718
or public instrumentality, state or local authority, district or similar 1719
public entity created under the laws of the state of Connecticut; [,] 1720
(v) [to] To the extent properly includable in determining the net gain 1721
or loss from the sale or other disposition of capital assets for federal 1722
income tax purposes, any gain from the sale or exchange of obligations 1723
issued by or on behalf of the state of Connecticut, any political 1724
subdivision thereof, or public instrumentality, state or local authority, 1725
district or similar public entity created under the laws of the state of 1726
Connecticut, in the income year such gain was recognized; [,] 1727
(vi) [any] Any interest on indebtedness incurred or continued to 1728
purchase or carry obligations or securities the interest on which is 1729
subject to tax under this chapter, but exempt from federal income tax, to 1730
the extent that such interest on indebtedness is not deductible in 1731
determining federal taxable income prior to deductions relating to 1732
distributions to beneficiaries; [,] 1733
(vii) [ordinary] Ordinary and necessary expenses paid or incurred 1734
during the taxable year for the production or collection of income 1735
[which] that is subject to taxation under this chapter, but exempt from 1736
federal income tax, or the management, conservation or maintenance of 1737
property held for the production of such income, and the amortizable 1738 Raised Bill No. 6658
LCO No. 5638 56 of 64
bond premium for the taxable year on any bond the interest on which is 1739
subject to tax under this chapter, but exempt from federal income tax, to 1740
the extent that such expenses and premiums are not deductible in 1741
determining federal taxable income prior to deductions relating to 1742
distributions to beneficiaries; [,] and 1743
(viii) [the] The amount of any refund or credit for overpayment of 1744
income taxes imposed by this state, to the extent properly includable in 1745
gross income for federal income tax purposes for the taxable year and to 1746
the extent deductible in determining federal taxable income prior to 1747
deductions relating to distributions to beneficiaries for the preceding 1748
taxable year. 1749
Sec. 34. Subdivision (24) of subsection (a) of section 12-701 of the 1750
general statutes is repealed and the following is substituted in lieu 1751
thereof (Effective October 1, 2021): 1752
(24) "Adjusted federal tentative minimum tax" of an individual 1753
means such individual's federal tentative minimum tax or, in the case of 1754
an individual whose Connecticut adjusted gross income includes 1755
modifications described in subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), 1756
(A)(vii) or (A)(viii) of subdivision (20) of this subsection [(a) of this 1757
section] or subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), 1758
(B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision (20) of this subsection, 1759
[(a) of this section,] the amount that would have been the federal 1760
tentative minimum tax if such tax were calculated by including, to the 1761
extent not includable in federal alternative minimum taxable income, 1762
the modifications described in subparagraph (A)(i), (A)(ii), (A)(v), 1763
(A)(vi), (A)(vii) or (A)(viii) of subdivision (20) of this subsection, [(a) of 1764
this section, by excluding,] to the extent includable in federal alternative 1765
minimum taxable income, the modifications described in subparagraph 1766
(B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or 1767
(B)(xv) of subdivision (20) of this subsection, [(a) of this section,] and by 1768
excluding, to the extent includable in federal alternative minimum 1769
taxable income, the amount of any interest income or exempt-interest 1770
dividends, as defined in Section 852(b)(5) of the Internal Revenue Code, 1771 Raised Bill No. 6658
LCO No. 5638 57 of 64
from obligations that are issued by or on behalf of the state of 1772
Connecticut, any political subdivision thereof, or public 1773
instrumentality, state or local authority, district, or similar public entity 1774
that is created under the laws of the state of Connecticut, or from 1775
obligations that are issued by or on behalf of any territory or possession 1776
of the United States, any political subdivision of such territory or 1777
possession, or public instrumentality, authority, district or similar 1778
public entity of such territory or possession, the income with respect to 1779
which taxation by any state is prohibited by federal law. If such 1780
individual is a beneficiary of a trust or estate, then, in calculating his or 1781
her federal tentative minimum tax, his or her federal alternative taxable 1782
income shall be increased or decreased, as the case may be, by the net 1783
amount of such individual's proportionate share of the Connecticut 1784
fiduciary adjustment relating to modifications that are described in, to 1785
the extent not includable in federal alternative minimum taxable 1786
income, subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) 1787
of subdivision (20) of this subsection, [(a) of this section,] or, to the extent 1788
includable in federal alternative minimum taxable income, 1789
subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), 1790
(B)(xiii) or (B)(xv) of subdivision (20) of this subsection. [(a) of this 1791
section.] 1792
Sec. 35. Subdivision (30) of subsection (a) of section 12-701 of the 1793
general statutes is repealed and the following is substituted in lieu 1794
thereof (Effective October 1, 2021): 1795
(30) "Adjusted federal alternative minimum taxable income" of an 1796
individual means his or her federal alternative minimum taxable 1797
income or, in the case of an individual whose Connecticut adjusted 1798
gross income includes modifications described in subparagraph (A)(i), 1799
(A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) of subdivision (20) of this 1800
subsection [(a) of this section] or subparagraph (B)(i), (B)(ii), (B)(v), 1801
(B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision 1802
(20) of this subsection, [(a) of this section,] the amount that would have 1803
been the federal alternative minimum taxable income if such amount 1804
were calculated by including, to the extent not includable in federal 1805 Raised Bill No. 6658
LCO No. 5638 58 of 64
alternative minimum taxable income, the modifications described in 1806
subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) of 1807
subdivision (20) of this subsection, [(a) of this section,] by excluding, to 1808
the extent includable in federal alternative minimum taxable income, 1809
the modifications described in subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), 1810
(B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision (20) of 1811
this subsection, [(a) of this section,] and by excluding, to the extent 1812
includable in federal alternative minimum taxable income, the amount 1813
of any interest income or exempt-interest dividends, as defined in 1814
Section 852(b)(5) of the Internal Revenue Code, from obligations that are 1815
issued by or on behalf of the state of Connecticut, any political 1816
subdivision thereof, or public instrumentality, state or local authority, 1817
district, or similar public entity that is created under the laws of the state 1818
of Connecticut, or from obligations that are issued by or on behalf of any 1819
territory or possession of the United States, any political subdivision of 1820
such territory or possession, or public instrumentality, authority, 1821
district or similar public entity of such territory or possession, the 1822
income with respect to which taxation by any state is prohibited by 1823
federal law. If such individual is a beneficiary of a trust or estate, then, 1824
for purposes of calculating his or her adjusted federal alternative 1825
minimum taxable income, his or her federal alternative minimum 1826
taxable income shall also be increased or decreased, as the case may be, 1827
by the net amount of such individual's proportionate share of the 1828
Connecticut fiduciary adjustment relating to modifications to the extent 1829
not includable in federal alternative minimum taxable income, that are 1830
described in subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or 1831
(A)(viii) of subdivision (20) of this subsection [(a) of this section] or to 1832
the extent includable in federal alternative minimum taxable income, 1833
subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), 1834
(B)(xiii) or (B)(xv) of subdivision (20) of this subsection. [(a) of this 1835
section.] 1836
Sec. 36. Section 12-701a of the general statutes is repealed and the 1837
following is substituted in lieu thereof (Effective October 1, 2021): 1838
The maximum [annual modification] amount that may be subtracted 1839 Raised Bill No. 6658
LCO No. 5638 59 of 64
under subparagraph (B)(xiii) of subdivision (20) of subsection (a) of 1840
section 12-701 shall be equal to the amount of contributions to all 1841
accounts established pursuant to any qualified state tuition program, as 1842
defined in Section 529(b) of the Internal Revenue Code, established and 1843
maintained by this state or any official, agency or instrumentality of the 1844
state, but shall not exceed five thousand dollars for each individual 1845
taxpayer, or ten thousand dollars for taxpayers filing a joint return. Any 1846
amount of a contribution that is not subtracted by the taxpayer in the 1847
year for which the contribution is made, on or after January 1, 2006, may 1848
be carried forward as a subtraction from income for the succeeding five 1849
years; provided the amount subtracted shall not exceed the maximum 1850
allowed in each subsequent taxable year. 1851
Sec. 37. Subdivision (5) of subsection (c) of section 12-717 of the 1852
general statutes is repealed and the following is substituted in lieu 1853
thereof (Effective October 1, 2021): 1854
(5) If a trust changes its status from resident to nonresident or from 1855
nonresident to resident, the provisions of subdivisions (1) to (4), 1856
inclusive, of this subsection shall apply, except that the term 1857
"individual" shall be read as "trust", reference to "items of income, gain, 1858
loss or deduction" shall mean the trust's share of such items determined 1859
in accordance with the methods of allocation set forth in section 12-714, 1860
reference to "gain" shall include any modification for includable gain 1861
under [subsection] subdivision (9) of subsection (a) of section 12-701 and 1862
federal adjusted gross income shall be determined as if the trust were 1863
an individual. 1864
Sec. 38. Subdivision (4) of section 12-801 of the general statutes is 1865
repealed and the following is substituted in lieu thereof (Effective October 1866
1, 2021): 1867
(4) "Lottery" means (A) the Connecticut state lottery conducted prior 1868
to the transfer authorized under section 12-808 by the Division of Special 1869
Revenue, (B) after such transfer, the Connecticut state lottery conducted 1870
by the corporation pursuant to sections [12-563a and] 12-800 to 12-818, 1871 Raised Bill No. 6658
LCO No. 5638 60 of 64
inclusive, (C) the state lottery referred to in subsection (a) of section 53-1872
278g, and (D) keno conducted by the corporation pursuant to section 12-1873
806c; 1874
Sec. 39. Subsection (c) of section 4-28f of the general statutes is 1875
repealed and the following is substituted in lieu thereof (Effective October 1876
1, 2021): 1877
(c) The trust fund shall be administered by a board of trustees, except 1878
that the board shall suspend its operations from July 1, 2003, to June 30, 1879
2005, inclusive. The board shall consist of seventeen trustees. The 1880
appointment of the initial trustees shall be as follows: (1) The Governor 1881
shall appoint four trustees, one of whom shall serve for a term of one 1882
year from July 1, 2000, two of whom shall serve for a term of two years 1883
from July 1, 2000, and one of whom shall serve for a term of three years 1884
from July 1, 2000; (2) the speaker of the House of Representatives and 1885
the president pro tempore of the Senate each shall appoint two trustees, 1886
one of whom shall serve for a term of two years from July 1, 2000, and 1887
one of whom shall serve for a term of three years from July 1, 2000; (3) 1888
the majority leader of the House of Representatives and the majority 1889
leader of the Senate each shall appoint two trustees, one of whom shall 1890
serve for a term of one year from July 1, 2000, and one of whom shall 1891
serve for a term of three years from July 1, 2000; (4) the minority leader 1892
of the House of Representatives and the minority leader of the Senate 1893
each shall appoint two trustees, one of whom shall serve for a term of 1894
one year from July 1, 2000, and one of whom shall serve for a term of 1895
two years from July 1, 2000; and (5) the Secretary of the Office of Policy 1896
and Management, or the secretary's designee, shall serve as an ex-officio 1897
voting member. Following the expiration of such initial terms, 1898
subsequent trustees shall serve for a term of three years. The period of 1899
suspension of the board's operations from July 1, 2003, to June 30, 2005, 1900
inclusive, shall not be included in the term of any trustee serving on July 1901
1, 2003. The trustees shall serve without compensation except for 1902
reimbursement for necessary expenses incurred in performing their 1903
duties. The board of trustees shall establish rules of procedure for the 1904
conduct of its business which shall include, but not be limited to, 1905 Raised Bill No. 6658
LCO No. 5638 61 of 64
criteria, processes and procedures to be used in selecting programs to 1906
receive money from the trust fund. The trust fund shall be within the 1907
Office of Policy and Management for administrative purposes only. The 1908
board of trustees shall, not later than January first of each year, except 1909
following a fiscal year in which the trust fund does not receive a deposit 1910
from the Tobacco Settlement Fund, [shall] submit a report of its activities 1911
and accomplishments to the joint standing committees of the General 1912
Assembly having cognizance of matters relating to public health and 1913
appropriations and the budgets of state agencies, in accordance with 1914
section 11-4a. 1915
Sec. 40. Section 4-66k of the general statutes is repealed and the 1916
following is substituted in lieu thereof (Effective October 1, 2021): 1917
(a) There is established an account to be known as the "regional 1918
planning incentive account" which shall be a separate, nonlapsing 1919
account within the General Fund. The account shall contain any moneys 1920
required by law to be deposited in the account. Except as provided in 1921
subsection (d) of this section, moneys [,] in the account shall be 1922
expended by the Secretary of the Office of Policy and Management in 1923
accordance with subsection (b) of this section for the purposes of first 1924
providing funding to regional planning organizations in accordance 1925
with the provisions of subsections (b) and (c) of this section and then to 1926
providing grants under the regional performance incentive program 1927
established pursuant to section 4-124s. 1928
(b) For the fiscal year ending June 30, 2014, funds from the regional 1929
planning incentive account shall be distributed to each regional 1930
planning organization, as defined in section 4-124i of the general 1931
statutes, revision of 1958, revised to January 1, 2013, in the amount of 1932
one hundred twenty-five thousand dollars. Any regional council of 1933
governments that is comprised of any two or more regional planning 1934
organizations that voluntarily consolidate on or before December 31, 1935
2013, shall receive an additional payment in an amount equal to the 1936
amount the regional planning organizations would have received if 1937
such regional planning organizations had not voluntarily consolidated. 1938 Raised Bill No. 6658
LCO No. 5638 62 of 64
(c) Beginning in the fiscal year ending June 30, 2015, and annually 1939
thereafter, funds from the regional planning incentive account shall be 1940
distributed to each regional council of governments formed pursuant to 1941
section 4-124j, in the amount of one hundred twenty-five thousand 1942
dollars plus fifty cents per capita, using population information from 1943
the most recent federal decennial census. Any regional council of 1944
governments that is comprised of any two or more regional planning 1945
organizations, as defined in section 4-124i of the general statutes, 1946
revision of 1958, revised to January 1, 2013, that voluntarily consolidated 1947
on or before December 31, 2013, shall receive a payment in the amount 1948
of one hundred twenty-five thousand dollars for each such regional 1949
planning organization that voluntarily consolidated on or before said 1950
date. 1951
(d) There is established a regionalization subaccount within the 1952
regional planning incentive account. If the Connecticut Lottery 1953
Corporation offers online its existing lottery draw games through the 1954
corporation's Internet web site, online service or mobile application, the 1955
revenue from such online offering that exceeds an amount equivalent to 1956
the costs of the debt-free community college program under section 10a-1957
174 shall be deposited in the subaccount, or, if such online offering is not 1958
established, the amount provided under subsection (b) of section 364 of 1959
public act 19-117 for regionalization initiatives shall be deposited in the 1960
subaccount. Moneys in the subaccount shall be expended only for the 1961
purposes recommended by the task force established under section 4-1962
66s. 1963
Sec. 41. Subsection (h) of section 38a-88a of the general statutes is 1964
repealed and the following is substituted in lieu thereof (Effective October 1965
1, 2021): 1966
(h) No taxpayer shall be eligible for a credit under this section and 1967
[either] section 12-217e [or section 12-217m] for the same investment. No 1968
two taxpayers shall be eligible for any tax credit with respect to the same 1969
investment, employee or facility. 1970 Raised Bill No. 6658
LCO No. 5638 63 of 64
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2021 12-35(a)
Sec. 2 October 1, 2021 12-40
Sec. 3 October 1, 2021 12-43
Sec. 4 October 1, 2021 12-44
Sec. 5 October 1, 2021 12-54
Sec. 6 October 1, 2021 12-57a(b)
Sec. 7 October 1, 2021 12-111(a)
Sec. 8 October 1, 2021 12-120a(4)
Sec. 9 October 1, 2021 12-121f(a)
Sec. 10 October 1, 2021 12-170aa
Sec. 11 October 1, 2021 12-208(a)
Sec. 12 October 1, 2021 12-214(b)
Sec. 13 October 1, 2021 12-219(b)
Sec. 14 October 1, 2021 12-217(a)(3)
Sec. 15 October 1, 2021 12-217zz(a)
Sec. 16 October 1, 2021 12-391(i)
Sec. 17 October 1, 2021 12-408h(b)
Sec. 18 October 1, 2021 12-410
Sec. 19 October 1, 2021 12-412(120)
Sec. 20 October 1, 2021 12-414(c)
Sec. 21 October 1, 2021 12-433
Sec. 22 October 1, 2021 12-438
Sec. 23 October 1, 2021 12-458(c)
Sec. 24 October 1, 2021 12-587
Sec. 25 October 1, 2021 12-587a(a)
Sec. 26 October 1, 2021 12-631
Sec. 27 October 1, 2021 12-632(a)(1)
Sec. 28 October 1, 2021 12-632(c)
Sec. 29 October 1, 2021 12-632(f)
Sec. 30 October 1, 2021 17b-738
Sec. 31 October 1, 2021 12-657
Sec. 32 October 1, 2021 12-699a(b)(1)
Sec. 33 October 1, 2021 12-701(a)(10)
Sec. 34 October 1, 2021 12-701(a)(24)
Sec. 35 October 1, 2021 12-701(a)(30)
Sec. 36 October 1, 2021 12-701a
Sec. 37 October 1, 2021 12-717(c)(5)
Sec. 38 October 1, 2021 12-801(4) Raised Bill No. 6658
LCO No. 5638 64 of 64
Sec. 39 October 1, 2021 4-28f(c)
Sec. 40 October 1, 2021 4-66k
Sec. 41 October 1, 2021 38a-88a(h)
Statement of Purpose:
To make minor and technical changes to the tax and related statutes.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]