Connecticut 2021 Regular Session

Connecticut Senate Bill SB01025 Compare Versions

Only one version of the bill is available at this time.

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3	3	LCO No. 4725 1 of 54
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5	5	General Assembly Raised Bill No. 1025
6	6	January Session, 2021
7	7	LCO No. 4725
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9	9
10	10	Referred to Committee on PLANNING AND DEVELOPMENT
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12	12
13	13	Introduced by:
14	14	(PD)
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19	19	AN ACT CONCERNING SH ORT-TERM RENTAL PROP ERTIES.
20	20	Be it enacted by the Senate and House of Representatives in General
21	21	Assembly convened:
22	22
23	23	Section 1. (NEW) (Effective July 1, 2021) For the purposes of this 1
24	24	section and sections 2 to 4, inclusive, of this act: 2
25	25	(1) "Applicant" means a person who files an application with the 3
26	26	commissioner pursuant to section 2 of this act; 4
27	27	(2) "Commissioner" means the Commissioner of Consumer 5
28	28	Protection; 6
29	29	(3) "Dwelling unit" has the same meaning as provided in section 47a-7
30	30	1 of the general statutes; 8
31	31	(4) "Guest" means an individual, other than the owner, lessee, lessor, 9
32	32	sublessee or sublessor of a short-term rental property, who occupies a 10
33	33	short-term rental property pursuant to a short-term rental transaction; 11
34	34	(5) "Short-term rental operator" means the owner, lessee or sublessee 12
35	35	of a short-term rental property who offers the short-term rental property 13 Raised Bill No. 1025
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37	37
38	38
39	39	LCO No. 4725 2 of 54
40	40
41	41	for occupancy by a guest pursuant to a short-term rental transaction; 14
42	42	(6) "Short-term rental platform" means any platform, including, but 15
43	43	not limited to, an Internet web site, that (A) allows a short-term rental 16
44	44	operator to offer a dwelling unit, or any portion thereof, for occupancy 17
45	45	as a short-term rental property, (B) allows a potential guest to arrange 18
46	46	payment for occupancy of a short-term rental property, whether such 19
47	47	guest pays directly to a short-term rental operator or through the 20
48	48	platform, and (C) allows the platform operator to derive revenues from 21
49	49	providing or maintaining the services described in this subdivision for 22
50	50	a short-term rental property; 23
51	51	(7) "Short-term rental property" means a dwelling unit, or any portion 24
52	52	thereof, in this state that is (A) the subject of a short-term rental 25
53	53	transaction, and (B) not a hotel, lodging house or bed and breakfast 26
54	54	establishment; and 27
55	55	(8) "Short-term rental transaction" means a transaction in which a 28
56	56	short-term rental operator offers a short-term rental property for 29
57	57	occupancy by a guest through a short-term rental platform for a period 30
58	58	of thirty consecutive calendar days or less. 31
59	59	Sec. 2. (NEW) (Effective July 1, 2021) (a) (1) Each short-term rental 32
60	60	operator or prospective short-term rental operator shall apply for a 33
61	61	license from the commissioner for each dwelling unit that such person 34
62	62	intends to operate as a short-term rental property on or after January 1, 35
63	63	2022. Each application for a license, or renewal of a license, pursuant to 36
64	64	this subsection shall be made on a form prescribed by the commissioner. 37
65	65	The commissioner shall require, as a precondition to issuing or 38
66	66	renewing a license pursuant to this subsection, that the applicant submit 39
67	67	to the commissioner, in a form and manner prescribed by the 40
68	68	commissioner, proof that the applicant: 41
69	69	(A) Maintains a property and casualty insurance policy that contains 42
70	70	the minimum provisions prescribed by the Insurance Commissioner 43
71	71	pursuant to section 5 of this act; 44 Raised Bill No. 1025
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77	77	(B) Provided all notices required by section 3 of this act; and 45
78	78	(C) In the case of an application for renewal of a license under this 46
79	79	subsection: 47
80	80	(i) Maintained the insurance coverage described in subparagraph (A) 48
81	81	of this subdivision during the two years immediately preceding; 49
82	82	(ii) Paid any and all sales and use taxes due and payable to this state, 50
83	83	and any and all taxes due and payable to a municipality pursuant to 51
84	84	section 6 of this act, during the two years immediately preceding; 52
85	85	(iii) Provided all notices required by section 3 of this act; and 53
86	86	(iv) Complied with the provisions of any ordinance enacted pursuant 54
87	87	to section 7 of this act during the two years immediately preceding. 55
88	88	(2) Each license issued by the commissioner pursuant to this 56
89	89	subsection shall expire two years after its issuance. The commissioner 57
90	90	may refuse to issue or renew, or may suspend or revoke, any license 58
91	91	required by this section if the applicant for such license or renewal 59
92	92	engages in any conduct prohibited by this section. 60
93	93	(3) Not later than fifteen days after the commissioner issues or renews 61
94	94	a license pursuant to this subsection, the commissioner shall send a 62
95	95	notice, in a form and manner prescribed by the commissioner, to the 63
96	96	Commissioner of Revenue Services disclosing: 64
97	97	(A) The name of the applicant for such license or renewal; and 65
98	98	(B) The address of the licensed short-term rental property. 66
99	99	(b) If the commissioner refuses to issue or renew, or suspends or 67
100	100	revokes, a license pursuant to subsection (a) of this section, the 68
101	101	commissioner shall notify the applicant or short-term rental operator, as 69
102	102	applicable, of such decision, the grounds for such decision and of such 70
103	103	applicant's or short-term rental operator's right to request a hearing not 71
104	104	later than ten days after the date on which the commissioner issued such 72 Raised Bill No. 1025
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106	106
107	107
108	108	LCO No. 4725 4 of 54
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110	110	notice to such applicant. If the applicant or short-term rental operator 73
111	111	requests a hearing within such ten-day period, the commissioner shall 74
112	112	conduct a hearing concerning such refusal, suspension or revocation in 75
113	113	accordance with the provisions of chapter 54 of the general statutes 76
114	114	concerning contested cases. The applicant or short-term rental operator 77
115	115	may appeal therefrom in accordance with the provisions of section 4-78
116	116	183 of the general statutes. 79
117	117	(c) The Attorney General, at the request of the commissioner, is 80
118	118	authorized to apply in the name of this state to the Superior Court for 81
119	119	an order temporarily or permanently restraining and enjoining any 82
120	120	short-term rental operator from operating in violation of any provision 83
121	121	of sections 1 to 4, inclusive, of this act. 84
122	122	Sec. 3. (NEW) (Effective July 1, 2021) Not later than the day that an 85
123	123	applicant files an application with the commissioner pursuant to section 86
124	124	2 of this act, the applicant shall send a notice, in a form and manner 87
125	125	prescribed by the commissioner, to the owner, lessor or sublessor of the 88
126	126	dwelling unit or short-term rental property that is the subject of such 89
127	127	application, and all owners, lessors, lessees, sublessors and sublessees 90
128	128	of abutting and adjacent dwelling units, disclosing: 91
129	129	(1) The name of such applicant; 92
130	130	(2) The address of such dwelling unit or short-term rental property; 93
131	131	and 94
132	132	(3) That such applicant has filed, or intends to file, such application. 95
133	133	Sec. 4. (NEW) (Effective July 1, 2021) The commissioner may adopt 96
134	134	regulations, in accordance with the provisions of chapter 54 of the 97
135	135	general statutes, to implement the provisions of sections 1 to 3, inclusive, 98
136	136	of this act. 99
137	137	Sec. 5. (NEW) (Effective July 1, 2021) The Insurance Commissioner 100
138	138	shall adopt regulations, in accordance with the provisions of chapter 54 101
139	139	of the general statutes, prescribing the minimum provisions to be 102 Raised Bill No. 1025
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141	141
142	142
143	143	LCO No. 4725 5 of 54
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145	145	included in each property and casualty policy issued on or after the 103
146	146	effective date of such regulations covering a short-term rental property, 104
147	147	as defined in section 1 of this act. Such policy shall include liability 105
148	148	coverage of not less than one million dollars against claims for bodily 106
149	149	injury or death and property damage. 107
150	150	Sec. 6. (NEW) (Effective July 1, 2021) Any municipality may, by vote 108
151	151	of its legislative body or, in a municipality where the legislative body is 109
152	152	a town meeting, by vote of the board of selectmen, levy a tax on each 110
153	153	short-term rental operator operating one or more short-term rental 111
154	154	properties, as both terms are defined in section 1 of this act, within such 112
155	155	municipality, provided such tax shall not exceed an amount that is equal 113
156	156	to six per cent of such short-term rental operator's income from all short-114
157	157	term rental transactions, as defined in section 1 of this act, concerning 115
158	158	such short-term rental properties during the tax year for which such tax 116
159	159	is levied. 117
160	160	Sec. 7. (NEW) (Effective July 1, 2021) Any municipality may, by vote 118
161	161	of its legislative body or, in a municipality where the legislative body is 119
162	162	a town meeting, by vote of the board of selectmen, limit the number of 120
163	163	days that guests may occupy a short-term rental property during a 121
164	164	calendar year. For the purposes of this section, "guest" and "short-term 122
165	165	rental property" have the same meaning as provided in section 1 of this 123
166	166	act. 124
167	167	Sec. 8. Section 12-407 of the general statutes is repealed and the 125
168	168	following is substituted in lieu thereof (Effective July 1, 2021, and 126
169	169	applicable to sales occurring on or after July 1, 2021): 127
170	170	(a) Whenever used in this chapter: 128
171	171	(1) "Person" means and includes any individual, firm, copartnership, 129
172	172	joint venture, association, association of persons however formed, social 130
173	173	club, fraternal organization, corporation, limited liability company, 131
174	174	foreign municipal electric utility as defined in section 12-59, estate, trust, 132
175	175	fiduciary, receiver, trustee, syndicate, the United States, this state or any 133
176	176	political subdivision thereof or any group or combination acting as a 134 Raised Bill No. 1025
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179	179
180	180	LCO No. 4725 6 of 54
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182	182	unit, and any other individual or officer acting under the authority of 135
183	183	any court in this state. 136
184	184	(2) "Sale" and "selling" mean and include: 137
185	185	(A) Any transfer of title, exchange or barter, conditional or otherwise, 138
186	186	in any manner or by any means whatsoever, of tangible personal 139
187	187	property for a consideration; 140
188	188	(B) Any withdrawal, except a withdrawal pursuant to a transaction 141
189	189	in foreign or interstate commerce, of tangible personal property from 142
190	190	the place where it is located for delivery to a point in this state for the 143
191	191	purpose of the transfer of title, exchange or barter, conditional or 144
192	192	otherwise, in any manner or by any means whatsoever, of the property 145
193	193	for a consideration; 146
194	194	(C) The producing, fabricating, processing, printing or imprinting of 147
195	195	tangible personal property for a consideration for consumers who 148
196	196	furnish either directly or indirectly the materials used in the producing, 149
197	197	fabricating, processing, printing or imprinting, including, but not 150
198	198	limited to, sign construction, photofinishing, duplicating and 151
199	199	photocopying; 152
200	200	(D) The furnishing and distributing of tangible personal property for 153
201	201	a consideration by social clubs and fraternal organizations to their 154
202	202	members or others; 155
203	203	(E) The furnishing, preparing, or serving for a consideration of food, 156
204	204	meals or drinks; 157
205	205	(F) A transaction whereby the possession of property is transferred 158
206	206	but the seller retains the title as security for the payment of the price; 159
207	207	(G) A transfer for a consideration of the title of tangible personal 160
208	208	property which has been produced, fabricated or printed to the special 161
209	209	order of the customer, or of any publication, including, but not limited 162
210	210	to, sign construction, photofinishing, duplicating and photocopying; 163 Raised Bill No. 1025
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216	216	(H) A transfer for a consideration of the occupancy of any room or 164
217	217	rooms in a hotel, lodging house, [or] bed and breakfast establishment or 165
218	218	short-term rental property for a period of thirty consecutive calendar 166
219	219	days or less; 167
220	220	(I) The rendering of certain services, as defined in subdivision (37) of 168
221	221	this subsection, for a consideration, exclusive of such services rendered 169
222	222	by an employee for the employer; 170
223	223	(J) The leasing or rental of tangible personal property of any kind 171
224	224	whatsoever, including, but not limited to, motor vehicles, linen or 172
225	225	towels, machinery or apparatus, office equipment and data processing 173
226	226	equipment, provided for purposes of this subdivision and the 174
227	227	application of sales and use tax to contracts of lease or rental of tangible 175
228	228	personal property, the leasing or rental of any motion picture film by 176
229	229	the owner or operator of a motion picture theater for purposes of display 177
230	230	at such theater shall not constitute a sale within the meaning of this 178
231	231	subsection; 179
232	232	(K) The rendering of telecommunications service, as defined in 180
233	233	subdivision (26) of this subsection, for a consideration on or after 181
234	234	January 1, 1990, exclusive of any such service rendered by an employee 182
235	235	for the employer of such employee, subject to the provisions related to 183
236	236	telecommunications service in accordance with section 12-407a; 184
237	237	(L) (i) The rendering of community antenna television service, as 185
238	238	defined in subdivision (27) of this subsection, for a consideration on or 186
239	239	after January 1, 1990, exclusive of any such service rendered by an 187
240	240	employee for the employer of such employee. For purposes of this 188
241	241	chapter, "community antenna television service" includes service 189
242	242	provided by a holder of a certificate of cable franchise authority 190
243	243	pursuant to section 16-331p, and service provided by a community 191
244	244	antenna television company issued a certificate of video franchise 192
245	245	authority pursuant to section 16-331e for any service area in which it 193
246	246	was not certified to provide community antenna television service 194
247	247	pursuant to section 16-331 on or before October 1, 2007; 195 Raised Bill No. 1025
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253	253	(ii) The rendering of certified competitive video service, as defined in 196
254	254	subdivision (38) of this subsection, for consideration on or after October 197
255	255	1, 2007, exclusive of any such service rendered by an employee for the 198
256	256	employer of such employee; 199
257	257	(M) The transfer for consideration of space or the right to use any 200
258	258	space for the purpose of storage or mooring of any noncommercial 201
259	259	vessel, exclusive of dry or wet storage or mooring of such vessel during 202
260	260	the period commencing on the first day of October in any year to and 203
261	261	including the thirty-first day of May of the next succeeding year; 204
262	262	(N) The sale for consideration of naming rights to any place of 205
263	263	amusement, entertainment or recreation within the meaning of 206
264	264	subdivision (3) of section 12-540; 207
265	265	(O) The transfer for consideration of a prepaid telephone calling 208
266	266	service, as defined in subdivision (34) of this subsection, and the 209
267	267	recharge of a prepaid telephone calling service, provided, if the sale or 210
268	268	recharge of a prepaid telephone calling service does not take place at the 211
269	269	retailer's place of business and an item is shipped by the retailer to the 212
270	270	customer, the sale or recharge shall be deemed to take place at the 213
271	271	customer's shipping address, but, if such sale or recharge does not take 214
272	272	place at the retailer's place of business and no item is shipped by the 215
273	273	retailer to the customer, the sale or recharge shall be deemed to take 216
274	274	place at the customer's billing address or the location associated with 217
275	275	the customer's mobile telephone number; and 218
276	276	(P) The furnishing by any person, for a consideration, of space for 219
277	277	storage of tangible personal property when such person is engaged in 220
278	278	the business of furnishing such space, but "sale" and "selling" do not 221
279	279	mean or include the furnishing of space which is used by a person for 222
280	280	residential purposes. As used in this subparagraph, "space for storage" 223
281	281	means secure areas, such as rooms, units, compartments or containers, 224
282	282	whether accessible from outside or from within a building, that are 225
283	283	designated for the use of a customer, where the customer can store and 226
284	284	retrieve property, including self-storage units, mini-storage units and 227 Raised Bill No. 1025
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287	287
288	288	LCO No. 4725 9 of 54
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290	290	areas by any other name to which the customer has either unlimited free 228
291	291	access or free access within reasonable business hours or upon 229
292	292	reasonable notice to the service provider to add or remove property, but 230
293	293	does not mean the rental of an entire building, such as a warehouse. For 231
294	294	purposes of this subparagraph, furnishing space for storage shall not 232
295	295	include general warehousing and storage, where the warehouse 233
296	296	typically handles, stores and retrieves a customer's property using the 234
297	297	warehouse's staff and equipment and does not allow the customer free 235
298	298	access to the storage space and shall not include accepting specific items 236
299	299	of property for storage, such as clothing at a dry cleaning establishment 237
300	300	or golf bags at a golf club. 238
301	301	(3) (A) "Retail sale" or "sale at retail" means and includes a sale for 239
302	302	any purpose other than resale in the regular course of business of 240
303	303	tangible personal property or a transfer for a consideration of the 241
304	304	occupancy of any room or rooms in a hotel, lodging house, [or] bed and 242
305	305	breakfast establishment or short-term rental property for a period of 243
306	306	thirty consecutive calendar days or less, or the rendering of any service 244
307	307	described in subdivision (2) of this subsection. The delivery in this state 245
308	308	of tangible personal property by an owner or former owner thereof or 246
309	309	by a factor, if the delivery is to a consumer pursuant to a retail sale made 247
310	310	by a retailer not engaged in business in this state, is a retail sale in this 248
311	311	state by the person making the delivery. Such person shall include the 249
312	312	retail selling price of the property in such person's gross receipts. 250
313	313	(B) "Retail sale" or "sale at retail" does not include any sale of any 251
314	314	tangible personal property, where, no later than one hundred twenty 252
315	315	days after the original sale, the original purchaser sells or becomes 253
316	316	contractually obligated to sell such property to a retailer who is 254
317	317	contractually obligated to lease such property back to such original 255
318	318	purchaser in a lease that is taxable under this chapter or the sale of such 256
319	319	property by the original purchaser to the retailer who is contractually 257
320	320	obligated to lease such property back to such original purchaser in a 258
321	321	lease that is taxable under this chapter. If the original purchaser has paid 259
322	322	sales or use tax on the original sale of such property to the original 260
323	323	purchaser, such original purchaser may (i) claim a refund of such tax 261 Raised Bill No. 1025
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329	329	under the provisions of section 12-425, upon presentation of proof 262
330	330	satisfactory to the commissioner that the mutual contractual obligations 263
331	331	described in this subparagraph were undertaken no later than one 264
332	332	hundred twenty days after the original sale and that such tax was paid 265
333	333	to the original retailer on the original sale and was remitted to the 266
334	334	commissioner by such original retailer or by such original purchaser, or 267
335	335	(ii) issue at the time of such original sale or no later than one hundred 268
336	336	twenty days thereafter a certificate, in the form prescribed by the 269
337	337	commissioner, to the original retailer certifying that the mutual 270
338	338	contractual obligations described in this subparagraph have been 271
339	339	undertaken. If such certificate is issued to the original retailer at the time 272
340	340	of the original sale, no tax on the original sale shall be collected by the 273
341	341	original retailer from the original purchaser. If the certificate is issued 274
342	342	after the time of the original sale but no later than one hundred twenty 275
343	343	days thereafter, the original retailer shall refund to the original 276
344	344	purchaser the tax collected on the original sale and, if the original 277
345	345	retailer has previously remitted the tax to the commissioner, the original 278
346	346	retailer may either treat the amount so refunded as a credit against the 279
347	347	tax due on the return next filed under this chapter, or claim a refund 280
348	348	under section 12-425. If such certificate is issued no later than one 281
349	349	hundred twenty days after the time of the original sale but the tangible 282
350	350	personal property originally purchased is not, in fact, subsequently 283
351	351	leased by the original purchaser, such original purchaser shall be liable 284
352	352	for and be required to pay the tax due on the original sale. 285
353	353	(4) "Storage" includes any keeping or retention in this state for any 286
354	354	purpose except sale in the regular course of business or subsequent use 287
355	355	solely outside this state of tangible personal property purchased from a 288
356	356	retailer. 289
357	357	(5) "Use" includes the exercise of any right or power over tangible 290
358	358	personal property incident to the ownership of that property, except 291
359	359	that it does not include the sale of that property in the regular course of 292
360	360	business. 293
361	361	(6) "Storage" and "use" do not include (A) keeping, retaining or 294 Raised Bill No. 1025
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367	367	exercising any right or power over tangible personal property shipped 295
368	368	or brought into this state for the purpose of subsequently transporting 296
369	369	it outside the state for use thereafter solely outside the state, or for the 297
370	370	purpose of being processed, fabricated or manufactured into, attached 298
371	371	to or incorporated into, other tangible personal property to be 299
372	372	transported outside the state and thereafter used solely outside the state, 300
373	373	or (B) keeping, retaining or exercising any right or power over tangible 301
374	374	personal property acquired by the customer of a commercial printer 302
375	375	while such property is located at the premises of the commercial printer 303
376	376	in this state pursuant to a contract with such printer for printing and 304
377	377	distribution of printed material if the commercial printer could have 305
378	378	acquired such property without application of tax under this chapter. 306
379	379	(7) "Purchase" and "purchasing" means and includes: (A) Any 307
380	380	transfer, exchange or barter, conditional or otherwise, in any manner or 308
381	381	by any means whatsoever, of tangible personal property or of the 309
382	382	occupancy of any room or rooms in a hotel, lodging house, [or] bed and 310
383	383	breakfast establishment or short-term rental property for a period of 311
384	384	thirty consecutive calendar days or less for a consideration; (B) a 312
385	385	transaction whereby the possession of property is transferred but the 313
386	386	seller retains the title as security for the payment of the price; (C) a 314
387	387	transfer for a consideration of tangible personal property which has 315
388	388	been produced, fabricated or printed to the special order of the 316
389	389	customer, or of any publication; (D) when performed outside this state 317
390	390	or when the customer gives a resale certificate pursuant to section 12-318
391	391	410, the producing, fabricating, processing, printing or imprinting of 319
392	392	tangible personal property for a consideration for consumers who 320
393	393	furnish either directly or indirectly the materials used in the producing, 321
394	394	fabricating, processing, printing or imprinting; (E) the acceptance or 322
395	395	receipt of any service described in any of the subparagraphs of 323
396	396	subdivision (2) of this subsection; (F) any leasing or rental of tangible 324
397	397	personal property. Wherever in this chapter reference is made to the 325
398	398	purchase or purchasing of tangible personal property, it shall be 326
399	399	construed to include purchases as described in this subsection. 327
400	400	(8) (A) "Sales price" means the total amount for which tangible 328 Raised Bill No. 1025
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406	406	personal property is sold by a retailer, the total amount of rent for which 329
407	407	occupancy of a room is transferred by an operator, the total amount for 330
408	408	which any service described in subdivision (2) of this subsection is 331
409	409	rendered by a retailer or the total amount of payment or periodic 332
410	410	payments for which tangible personal property is leased by a retailer, 333
411	411	valued in money, whether paid in money or otherwise, which amount 334
412	412	is due and owing to the retailer or operator and, subject to the provisions 335
413	413	of subdivision (1) of section 12-408, as amended by this act, whether or 336
414	414	not actually received by the retailer or operator, without any deduction 337
415	415	on account of any of the following: (i) The cost of the property sold; (ii) 338
416	416	the cost of materials used, labor or service cost, interest charged, losses 339
417	417	or any other expenses; (iii) for any sale occurring on or after July 1, 1993, 340
418	418	any charges by the retailer to the purchaser for shipping or delivery, 341
419	419	notwithstanding whether such charges are separately stated in a written 342
420	420	contract, or on a bill or invoice rendered to such purchaser or whether 343
421	421	such shipping or delivery is provided by the retailer or a third party. 344
422	422	The provisions of subparagraph (A) (iii) of this subdivision shall not 345
423	423	apply to any item exempt from taxation pursuant to section 12-412. Such 346
424	424	total amount includes any services that are a part of the sale; except as 347
425	425	otherwise provided in subparagraph (B)(v) or (B)(vi) of this subdivision, 348
426	426	any amount for which credit is given to the purchaser by the retailer, 349
427	427	and all compensation and all employment-related expenses, whether or 350
428	428	not separately stated, paid to or on behalf of employees of a retailer of 351
429	429	any service described in subdivision (2) of this subsection. 352
430	430	(B) "Sales price" does not include any of the following: (i) Cash 353
431	431	discounts allowed and taken on sales; (ii) any portion of the amount 354
432	432	charged for property returned by purchasers, which upon rescission of 355
433	433	the contract of sale is refunded either in cash or credit, provided the 356
434	434	property is returned within ninety days from the date of purchase; (iii) 357
435	435	the amount of any tax, not including any manufacturers' or importers' 358
436	436	excise tax, imposed by the United States upon or with respect to retail 359
437	437	sales whether imposed upon the retailer or the purchaser; (iv) the 360
438	438	amount charged for labor rendered in installing or applying the 361
439	439	property sold, provided such charge is separately stated and exclusive 362 Raised Bill No. 1025
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443	443	LCO No. 4725 13 of 54
444	444
445	445	of such charge for any service rendered within the purview of 363
446	446	subparagraph (I) of subdivision (37) of this subsection; (v) unless the 364
447	447	provisions of subdivision (4) of section 12-430 or of section 12-430a are 365
448	448	applicable, any amount for which credit is given to the purchaser by the 366
449	449	retailer, provided such credit is given solely for property of the same 367
450	450	kind accepted in part payment by the retailer and intended by the 368
451	451	retailer to be resold; (vi) the full face value of any coupon used by a 369
452	452	purchaser to reduce the price paid to a retailer for an item of tangible 370
453	453	personal property, whether or not the retailer will be reimbursed for 371
454	454	such coupon, in whole or in part, by the manufacturer of the item of 372
455	455	tangible personal property or by a third party; (vii) the amount charged 373
456	456	for separately stated compensation, fringe benefits, workers' 374
457	457	compensation and payroll taxes or assessments paid to or on behalf of 375
458	458	employees of a retailer who has contracted to manage a service 376
459	459	recipient's property or business premises and renders management 377
460	460	services described in subparagraph (I) or (J) of subdivision (37) of this 378
461	461	subsection, provided, the employees perform such services solely for 379
462	462	the service recipient at its property or business premises and "sales 380
463	463	price" shall include the separately stated compensation, fringe benefits, 381
464	464	workers' compensation and payroll taxes or assessments paid to or on 382
465	465	behalf of any employee of the retailer who is an officer, director or 383
466	466	owner of more than five per cent of the outstanding capital stock of the 384
467	467	retailer. Determination whether an employee performs services solely 385
468	468	for a service recipient at its property or business premises for purposes 386
469	469	of this subdivision shall be made by reference to such employee's 387
470	470	activities during the time period beginning on the later of the 388
471	471	commencement of the management contract, the date of the employee's 389
472	472	first employment by the retailer or the date which is six months 390
473	473	immediately preceding the date of such determination; (viii) the amount 391
474	474	charged for separately stated compensation, fringe benefits, workers' 392
475	475	compensation and payroll taxes or assessments paid to or on behalf of 393
476	476	(I) a leased employee, or (II) a worksite employee by a professional 394
477	477	employer organization pursuant to a professional employer agreement. 395
478	478	For purposes of this subparagraph, an employee shall be treated as a 396
479	479	leased employee if the employee is provided to the client at the 397 Raised Bill No. 1025
480	480
481	481
482	482
483	483	LCO No. 4725 14 of 54
484	484
485	485	commencement of an agreement with an employee leasing organization 398
486	486	under which at least seventy-five per cent of the employees provided to 399
487	487	the client at the commencement of such initial agreement qualify as 400
488	488	leased employees pursuant to Section 414(n) of the Internal Revenue 401
489	489	Code of 1986, or any subsequent corresponding internal revenue code 402
490	490	of the United States, as from time to time amended, or the employee is 403
491	491	added to the client's workforce by the employee leasing organization 404
492	492	subsequent to the commencement of such initial agreement and 405
493	493	qualifies as a leased employee pursuant to Section 414(n) of said Internal 406
494	494	Revenue Code of 1986 without regard to subparagraph (B) of paragraph 407
495	495	(2) thereof. A leased employee, or a worksite employee subject to a 408
496	496	professional employer agreement, shall not include any employee who 409
497	497	is hired by a temporary help service and assigned to support or 410
498	498	supplement the workforce of a temporary help service's client; (ix) any 411
499	499	amount received by a retailer from a purchaser as the battery deposit 412
500	500	that is required to be paid under subsection (a) of section 22a-245h; the 413
501	501	refund value of a beverage container that is required to be paid under 414
502	502	subsection (a) of section 22a-244; or a deposit that is required by law to 415
503	503	be paid by the purchaser to the retailer and that is required by law to be 416
504	504	refunded to the purchaser by the retailer when the same or similar 417
505	505	tangible personal property is delivered as required by law to the retailer 418
506	506	by the purchaser, if such amount is separately stated on the bill or 419
507	507	invoice rendered by the retailer to the purchaser; and (x) the amount 420
508	508	charged for separately stated compensation, fringe benefits, workers' 421
509	509	compensation and payroll taxes or assessments paid to a media payroll 422
510	510	services company, as defined in this subsection. 423
511	511	(9) (A) "Gross receipts" means the total amount of the sales price from 424
512	512	retail sales of tangible personal property by a retailer, the total amount 425
513	513	of the rent from transfers of occupancy of rooms by an operator, the total 426
514	514	amount of the sales price from retail sales of any service described in 427
515	515	subdivision (2) of this subsection by a retailer of services, or the total 428
516	516	amount of payment or periodic payments from leases or rentals of 429
517	517	tangible personal property by a retailer, valued in money, whether 430
518	518	received in money or otherwise, which amount is due and owing to the 431 Raised Bill No. 1025
519	519
520	520
521	521
522	522	LCO No. 4725 15 of 54
523	523
524	524	retailer or operator and, subject to the provisions of subdivision (1) of 432
525	525	section 12-408, as amended by this act, whether or not actually received 433
526	526	by the retailer or operator, without any deduction on account of any of 434
527	527	the following: (i) The cost of the property sold; however, in accordance 435
528	528	with such regulations as the Commissioner of Revenue Services may 436
529	529	prescribe, a deduction may be taken if the retailer has purchased 437
530	530	property for some other purpose than resale, has reimbursed the 438
531	531	retailer's vendor for tax which the vendor is required to pay to the state 439
532	532	or has paid the use tax with respect to the property, and has resold the 440
533	533	property prior to making any use of the property other than retention, 441
534	534	demonstration or display while holding it for sale in the regular course 442
535	535	of business. If such a deduction is taken by the retailer, no refund or 443
536	536	credit will be allowed to the retailer's vendor with respect to the sale of 444
537	537	the property; (ii) the cost of the materials used, labor or service cost, 445
538	538	interest paid, losses or any other expense; (iii) for any sale occurring on 446
539	539	or after July 1, 1993, except for any item exempt from taxation pursuant 447
540	540	to section 12-412, any charges by the retailer to the purchaser for 448
541	541	shipping or delivery, notwithstanding whether such charges are 449
542	542	separately stated in the written contract, or on a bill or invoice rendered 450
543	543	to such purchaser or whether such shipping or delivery is provided by 451
544	544	the retailer or a third party. The total amount of the sales price includes 452
545	545	any services that are a part of the sale; all receipts, cash, credits and 453
546	546	property of any kind; except as otherwise provided in subparagraph 454
547	547	(B)(v) or (B)(vi) of this subdivision, any amount for which credit is 455
548	548	allowed by the retailer to the purchaser; and all compensation and all 456
549	549	employment-related expenses, whether or not separately stated, paid to 457
550	550	or on behalf of employees of a retailer of any service described in 458
551	551	subdivision (2) of this subsection. 459
552	552	(B) "Gross receipts" do not include any of the following: (i) Cash 460
553	553	discounts allowed and taken on sales; (ii) any portion of the sales price 461
554	554	of property returned by purchasers, which upon rescission of the 462
555	555	contract of sale is refunded either in cash or credit, provided the 463
556	556	property is returned within ninety days from the date of sale; (iii) the 464
557	557	amount of any tax, not including any manufacturers' or importers' 465 Raised Bill No. 1025
558	558
559	559
560	560
561	561	LCO No. 4725 16 of 54
562	562
563	563	excise tax, imposed by the United States upon or with respect to retail 466
564	564	sales whether imposed upon the retailer or the purchaser; (iv) the 467
565	565	amount charged for labor rendered in installing or applying the 468
566	566	property sold, provided such charge is separately stated and exclusive 469
567	567	of such charge for any service rendered within the purview of 470
568	568	subparagraph (I) of subdivision (37) of this subsection; (v) unless the 471
569	569	provisions of subdivision (4) of section 12-430 or of section 12-430a are 472
570	570	applicable, any amount for which credit is given to the purchaser by the 473
571	571	retailer, provided such credit is given solely for property of the same 474
572	572	kind accepted in part payment by the retailer and intended by the 475
573	573	retailer to be resold; (vi) the full face value of any coupon used by a 476
574	574	purchaser to reduce the price paid to the retailer for an item of tangible 477
575	575	personal property, whether or not the retailer will be reimbursed for 478
576	576	such coupon, in whole or in part, by the manufacturer of the item of 479
577	577	tangible personal property or by a third party; (vii) the amount charged 480
578	578	for separately stated compensation, fringe benefits, workers' 481
579	579	compensation and payroll taxes or assessments paid to or on behalf of 482
580	580	employees of a retailer who has contracted to manage a service 483
581	581	recipient's property or business premises and renders management 484
582	582	services described in subparagraph (I) or (J) of subdivision (37) of this 485
583	583	subsection, provided the employees perform such services solely for the 486
584	584	service recipient at its property or business premises and "gross 487
585	585	receipts" shall include the separately stated compensation, fringe 488
586	586	benefits, workers' compensation and payroll taxes or assessments paid 489
587	587	to or on behalf of any employee of the retailer who is an officer, director 490
588	588	or owner of more than five per cent of the outstanding capital stock of 491
589	589	the retailer. Determination whether an employee performs services 492
590	590	solely for a service recipient at its property or business premises for 493
591	591	purposes of this subdivision shall be made by reference to such 494
592	592	employee's activities during the time period beginning on the later of 495
593	593	the commencement of the management contract, the date of the 496
594	594	employee's first employment by the retailer or the date which is six 497
595	595	months immediately preceding the date of such determination; (viii) the 498
596	596	amount charged for separately stated compensation, fringe benefits, 499
597	597	workers' compensation and payroll taxes or assessments paid to or on 500 Raised Bill No. 1025
598	598
599	599
600	600
601	601	LCO No. 4725 17 of 54
602	602
603	603	behalf of (I) a leased employee, or (II) a worksite employee by a 501
604	604	professional employer organization pursuant to a professional 502
605	605	employer agreement. For purposes of this subparagraph, an employee 503
606	606	shall be treated as a leased employee if the employee is provided to the 504
607	607	client at the commencement of an agreement with an employee leasing 505
608	608	organization under which at least seventy-five per cent of the employees 506
609	609	provided to the client at the commencement of such initial agreement 507
610	610	qualify as leased employees pursuant to Section 414(n) of the Internal 508
611	611	Revenue Code of 1986, or any subsequent corresponding internal 509
612	612	revenue code of the United States, as from time to time amended, or the 510
613	613	employee is added to the client's workforce by the employee leasing 511
614	614	organization subsequent to the commencement of such initial 512
615	615	agreement and qualifies as a leased employee pursuant to Section 414(n) 513
616	616	of said Internal Revenue Code of 1986 without regard to subparagraph 514
617	617	(B) of paragraph (2) thereof. A leased employee, or a worksite employee 515
618	618	subject to a professional employer agreement, shall not include any 516
619	619	employee who is hired by a temporary help service and assigned to 517
620	620	support or supplement the workforce of a temporary help service's 518
621	621	client; (ix) the amount received by a retailer from a purchaser as the 519
622	622	battery deposit that is required to be paid under subsection (a) of section 520
623	623	22a-256h; the refund value of a beverage container that is required to be 521
624	624	paid under subsection (a) of section 22a-244 or a deposit that is required 522
625	625	by law to be paid by the purchaser to the retailer and that is required by 523
626	626	law to be refunded to the purchaser by the retailer when the same or 524
627	627	similar tangible personal property is delivered as required by law to the 525
628	628	retailer by the purchaser, if such amount is separately stated on the bill 526
629	629	or invoice rendered by the retailer to the purchaser; and (x) the amount 527
630	630	charged for separately stated compensation, fringe benefits, workers' 528
631	631	compensation and payroll taxes or assessments paid to a media payroll 529
632	632	services company, as defined in this subsection. 530
633	633	(10) "Business" includes any activity engaged in by any person or 531
634	634	caused to be engaged in by any person with the object of gain, benefit 532
635	635	or advantage, either direct or indirect. 533
636	636	(11) "Seller" includes every person engaged in the business of selling 534 Raised Bill No. 1025
637	637
638	638
639	639
640	640	LCO No. 4725 18 of 54
641	641
642	642	tangible personal property or rendering any service described in any of 535
643	643	the subparagraphs of subdivision (2) of this subsection, the gross 536
644	644	receipts from the retail sale of which are required to be included in the 537
645	645	measure of the sales tax and every operator as defined in subdivision 538
646	646	(18) of this subsection. 539
647	647	(12) "Retailer" includes: 540
648	648	(A) Every person engaged in the business of making sales at retail or 541
649	649	in the business of making retail sales at auction of tangible personal 542
650	650	property owned by the person or others; 543
651	651	(B) Every person engaged in the business of making sales for storage, 544
652	652	use or other consumption or in the business of making sales at auction 545
653	653	of tangible personal property owned by the person or others for storage, 546
654	654	use or other consumption; 547
655	655	(C) Every operator, as defined in subdivision (18) of this subsection; 548
656	656	(D) Every seller rendering any service described in subdivision (2) of 549
657	657	this subsection; 550
658	658	(E) Every person under whom any salesman, representative, peddler 551
659	659	or canvasser operates in this state, or from whom such salesman, 552
660	660	representative, peddler or canvasser obtains the tangible personal 553
661	661	property that is sold; 554
662	662	(F) Every person with whose assistance any seller is enabled to solicit 555
663	663	orders within this state; 556
664	664	(G) Every person making retail sales of tangible personal property or 557
665	665	services from outside this state to a destination within this state, 558
666	666	provided such person has gross receipts of at least one hundred 559
667	667	thousand dollars and made two hundred or more retail sales from 560
668	668	outside this state to destinations within this state during the twelve-561
669	669	month period ended on the September thirtieth immediately preceding 562
670	670	the monthly or quarterly period with respect to which such person's 563
671	671	liability for tax under this chapter is determined; 564 Raised Bill No. 1025
672	672
673	673
674	674
675	675	LCO No. 4725 19 of 54
676	676
677	677	(H) Any person owned or controlled, either directly or indirectly, by 565
678	678	a retailer engaged in business in this state which is the same as or similar 566
679	679	to the line of business in which such person so owned or controlled is 567
680	680	engaged; 568
681	681	(I) Any person owned or controlled, either directly or indirectly, by 569
682	682	the same interests that own or control, either directly or indirectly, a 570
683	683	retailer engaged in business in this state which is the same as or similar 571
684	684	to the line of business in which such person so owned or controlled is 572
685	685	engaged; 573
686	686	(J) Any assignee of a person engaged in the business of leasing 574
687	687	tangible personal property to others, where leased property of such 575
688	688	person which is subject to taxation under this chapter is situated within 576
689	689	this state and such assignee has a security interest, as defined in 577
690	690	subdivision (35) of subsection (b) of section 42a-1-201, in such property; 578
691	691	(K) Every person making retail sales of items of tangible personal 579
692	692	property from outside this state to a destination within this state who 580
693	693	repairs or services such items, under a warranty, in this state, either 581
694	694	directly or indirectly through an agent, independent contractor or 582
695	695	subsidiary; 583
696	696	(L) Every person making sales of tangible personal property or 584
697	697	services through an agreement with another person located in this state 585
698	698	under which such person located in this state, for a commission or other 586
699	699	consideration that is based upon the sale of tangible personal property 587
700	700	or services by the retailer, directly or indirectly refers potential 588
701	701	customers, whether by a link on an Internet web site or otherwise, to the 589
702	702	retailer, provided the cumulative gross receipts from sales by the retailer 590
703	703	to customers in the state who are referred to the retailer by all such 591
704	704	persons with this type of an agreement with the retailer, is in excess of 592
705	705	one hundred thousand dollars during the preceding four quarterly 593
706	706	periods ending on the last day of March, June, September and 594
707	707	December; 595
708	708	(M) Any marketplace facilitator, as defined in section 12-408e; and 596 Raised Bill No. 1025
709	709
710	710
711	711
712	712	LCO No. 4725 20 of 54
713	713
714	714	(N) Any short-term rental facilitator, as defined in section 12-408h. 597
715	715	(13) "Tangible personal property" means personal property that may 598
716	716	be seen, weighed, measured, felt or touched or that is in any other 599
717	717	manner perceptible to the senses. "Tangible personal property" includes 600
718	718	(A) digital goods, (B) canned or prewritten computer software, 601
719	719	including canned or prewritten software that is electronically accessed 602
720	720	or transferred, other than when purchased by a business for use by such 603
721	721	business, and any additional content related to such software, and (C) 604
722	722	the distribution, generation or transmission of electricity. 605
723	723	(14) "In this state" or "in the state" means within the exterior limits of 606
724	724	the state of Connecticut and includes all territory within these limits 607
725	725	owned by or ceded to the United States of America. 608
726	726	(15) (A) "Engaged in business in the state" means and, to the extent 609
727	727	not prohibited by the Constitution of the United States, includes, but 610
728	728	shall not be limited to, the following acts or methods of transacting 611
729	729	business: 612
730	730	(i) Selling in this state, or any activity in this state in connection with 613
731	731	selling in this state, tangible personal property for use, storage or 614
732	732	consumption within the state; 615
733	733	(ii) Engaging in the transfer for a consideration of the occupancy of 616
734	734	any room or rooms in a hotel, lodging house [or] bed and breakfast 617
735	735	establishment or short-term rental property for a period of thirty 618
736	736	consecutive calendar days or less; 619
737	737	(iii) Rendering in this state any service described in any of the 620
738	738	subparagraphs of subdivision (2) of this subsection; 621
739	739	(iv) Maintaining, occupying or using, permanently or temporarily, 622
740	740	directly or indirectly, through a subsidiary or agent, by whatever name 623
741	741	called, any office, place of distribution, sales or sample room or place, 624
742	742	warehouse or storage point or other place of business or having any 625
743	743	representative, agent, salesman, canvasser or solicitor operating in this 626 Raised Bill No. 1025
744	744
745	745
746	746
747	747	LCO No. 4725 21 of 54
748	748
749	749	state for the purpose of selling, delivering or taking orders; 627
750	750	(v) Selling tangible personal property or services from outside this 628
751	751	state to a destination within this state, provided at least one hundred 629
752	752	thousand dollars of gross receipts are received and two hundred or 630
753	753	more retail sales from outside this state to destinations within this state 631
754	754	are made during the twelve-month period ended on the September 632
755	755	thirtieth immediately preceding the monthly or quarterly period with 633
756	756	respect to which liability for tax under this chapter is determined; 634
757	757	(vi) Being owned or controlled, either directly or indirectly, by a 635
758	758	retailer engaged in business in this state which is the same as or similar 636
759	759	to the line of business in which the retailer so owned or controlled is 637
760	760	engaged; 638
761	761	(vii) Being owned or controlled, either directly or indirectly, by the 639
762	762	same interests that own or control, either directly or indirectly, a retailer 640
763	763	engaged in business in this state which is the same as or similar to the 641
764	764	line of business in which the retailer so owned or controlled is engaged; 642
765	765	(viii) Being the assignee of a person engaged in the business of leasing 643
766	766	tangible personal property to others, where leased property of such 644
767	767	person is situated within this state and such assignee has a security 645
768	768	interest, as defined in subdivision (35) of subsection (b) of section 42a-1-646
769	769	201, in such property; 647
770	770	(ix) Notwithstanding the fact that retail sales of items of tangible 648
771	771	personal property are made from outside this state to a destination 649
772	772	within this state, repairing or servicing such items, under a warranty, in 650
773	773	this state, either directly or indirectly through an agent, independent 651
774	774	contractor or subsidiary; and 652
775	775	(x) Selling tangible personal property or services through an 653
776	776	agreement with a person located in this state, under which such person 654
777	777	located in this state, for a commission or other consideration that is 655
778	778	based upon the sale of tangible personal property or services by the 656
779	779	retailer, directly or indirectly refers potential customers, whether by a 657 Raised Bill No. 1025
780	780
781	781
782	782
783	783	LCO No. 4725 22 of 54
784	784
785	785	link on an Internet web site or otherwise, to the retailer, provided the 658
786	786	cumulative gross receipts from sales by the retailer to customers in the 659
787	787	state who are referred to the retailer by all such persons with this type 660
788	788	of agreement with the retailer is in excess of one hundred thousand 661
789	789	dollars during the four preceding four quarterly periods ending on the 662
790	790	last day of March, June, September and December. 663
791	791	(B) A retailer who has contracted with a commercial printer for 664
792	792	printing and distribution of printed material shall not be deemed to be 665
793	793	engaged in business in this state because of the ownership or leasing by 666
794	794	the retailer of tangible or intangible personal property located at the 667
795	795	premises of the commercial printer in this state, the sale by the retailer 668
796	796	of property of any kind produced or processed at and shipped or 669
797	797	distributed from the premises of the commercial printer in this state, the 670
798	798	activities of the retailer's employees or agents at the premises of the 671
799	799	commercial printer in this state, which activities relate to quality control, 672
800	800	distribution or printing services performed by the printer, or the 673
801	801	activities of any kind performed by the commercial printer in this state 674
802	802	for or on behalf of the retailer. 675
803	803	(C) A retailer not otherwise engaged in business in the state who 676
804	804	purchases fulfillment services carried on in this state by a person other 677
805	805	than an affiliated person, or who owns tangible personal property 678
806	806	located on the premises of an unaffiliated person other than a 679
807	807	marketplace facilitator, as defined in section 12-408e, performing 680
808	808	fulfillment services for such retailer, shall not be deemed to be engaged 681
809	809	in business in this state. For purposes of this subparagraph, (i) persons 682
810	810	are affiliated persons with respect to each other where one of such 683
811	811	persons has an ownership interest of more than five per cent, whether 684
812	812	direct or indirect, in the other, or where an ownership interest of more 685
813	813	than five per cent, whether direct or indirect, is held in each of such 686
814	814	persons by another person or by a group of other persons who are 687
815	815	affiliated persons with respect to each other, and (ii) "fulfillment 688
816	816	services" means services that are performed by a person on its premises 689
817	817	on behalf of a purchaser of such services and that involve the receipt of 690
818	818	orders from the purchaser of such services or an agent thereof, which 691 Raised Bill No. 1025
819	819
820	820
821	821
822	822	LCO No. 4725 23 of 54
823	823
824	824	orders are to be filled by the person from an inventory of products that 692
825	825	are offered for sale by the purchaser of such services, and the shipment 693
826	826	of such orders outside this state to customers of the purchaser of such 694
827	827	services. 695
828	828	(D) A retailer not otherwise engaged in business in this state that 696
829	829	participates in a trade show or shows at the convention center, as 697
830	830	defined in subdivision (3) of section 32-600, shall not be deemed to be 698
831	831	engaged in business in this state, regardless of whether the retailer has 699
832	832	employees or other staff present at such trade shows, provided the 700
833	833	retailer's activity at such trade shows is limited to displaying goods or 701
834	834	promoting services, no sales are made, any orders received are sent 702
835	835	outside this state for acceptance or rejection and are filled from outside 703
836	836	this state, and provided further that such participation is not more than 704
837	837	fourteen days, or part thereof, in the aggregate during the retailer's 705
838	838	income year for federal income tax purposes. 706
839	839	(16) "Hotel" means any building regularly used and kept open as such 707
840	840	for the feeding and lodging of guests where any person who conducts 708
841	841	himself properly and who is able and ready to pay for such services is 709
842	842	received if there are accommodations for such person and which derives 710
843	843	the major portion of its operating receipts from the renting of rooms and 711
844	844	the sale of food. "Hotel" includes any apartment hotel wherein 712
845	845	apartments are rented for fixed periods of time, furnished or 713
846	846	unfurnished, while the keeper of such hotel supplies food to the 714
847	847	occupants thereof, if required, but does not include a bed and breakfast 715
848	848	establishment or short-term rental property. 716
849	849	(17) "Lodging house" means any building or portion of a building, 717
850	850	other than a hotel, an apartment hotel, [or] a bed and breakfast 718
851	851	establishment or a short term-rental property, in which persons are 719
852	852	lodged for hire with or without meals, including, but not limited to, any 720
853	853	motel, motor court, motor inn, tourist court, furnished residence or 721
854	854	similar accommodation; provided the terms "hotel", "apartment hotel", 722
855	855	"lodging house", [and "bed and breakfast"] "bed and breakfast 723
856	856	establishment" and "short term rental property" shall not be construed 724 Raised Bill No. 1025
857	857
858	858
859	859
860	860	LCO No. 4725 24 of 54
861	861
862	862	to include: (A) Privately owned and operated convalescent homes, 725
863	863	residential care homes, homes for the infirm, indigent or chronically ill; 726
864	864	(B) religious or charitable homes for the aged, infirm, indigent or 727
865	865	chronically ill; (C) privately owned and operated summer camps for 728
866	866	children; (D) summer camps for children operated by religious or 729
867	867	charitable organizations; (E) lodging accommodations at educational 730
868	868	institutions; or (F) lodging accommodations at any facility operated by 731
869	869	and in the name of any nonprofit charitable organization, provided the 732
870	870	income from such lodging accommodations at such facility is not subject 733
871	871	to federal income tax. 734
872	872	(18) "Operator" means any person operating a hotel, lodging house, 735
873	873	[or] bed and breakfast establishment or short-term rental property in the 736
874	874	state, including, but not limited to, the owner or proprietor of such 737
875	875	premises, lessee, sublessee, mortgagee in possession, licensee or any 738
876	876	other person otherwise operating such hotel, lodging house, [or] bed 739
877	877	and breakfast establishment or short-term rental property. 740
878	878	(19) "Occupancy" means the use or possession, or the right to the use 741
879	879	or possession, of any room or rooms in a hotel, lodging house, [or] bed 742
880	880	and breakfast establishment or short-term rental property, or the right 743
881	881	to the use or possession of the furnishings or the services and 744
882	882	accommodations accompanying the use and possession of such room or 745
883	883	rooms, for the first period of not more than thirty consecutive calendar 746
884	884	days. 747
885	885	(20) "Room" means any room or rooms of any kind in any part or 748
886	886	portion of a hotel, lodging house, [or] bed and breakfast establishment 749
887	887	or short-term rental property let out for use or possession for lodging 750
888	888	purposes. 751
889	889	(21) "Rent" means the consideration received for occupancy and any 752
890	890	meals included with such occupancy, valued in money, whether 753
891	891	received in money or otherwise, including all receipts, cash, credits and 754
892	892	property or services of any kind or nature, and also any amount for 755
893	893	which credit is allowed by the operator to the occupant, without any 756 Raised Bill No. 1025
894	894
895	895
896	896
897	897	LCO No. 4725 25 of 54
898	898
899	899	deduction therefrom whatsoever. 757
900	900	(22) "Certificated air carrier" means a person issued a certificate or 758
901	901	certificates by the Federal Aviation Administration pursuant to Title 14, 759
902	902	Chapter I, Subchapter G, Part 121, 135, 139 or 141 of the Code of Federal 760
903	903	Regulations or the Civil Aeronautics Board pursuant to Title 14, Chapter 761
904	904	II, Subchapter A, Parts 201 to 208, inclusive, and 298 of the Code of 762
905	905	Federal Regulations, as such regulations may hereafter be amended or 763
906	906	reclassified. 764
907	907	(23) "Aircraft" means aircraft, as the term is defined in section 15-34. 765
908	908	(24) "Vessel" means vessel, as the term is defined in section 15-127. 766
909	909	(25) "Licensed marine dealer" means a marine dealer, as the term is 767
910	910	defined in section 15-141, who has been issued a marine dealer's 768
911	911	certificate by the Commissioner of Energy and Environmental 769
912	912	Protection. 770
913	913	(26) (A) "Telecommunications service" means the electronic 771
914	914	transmission, conveyance or routing of voice, image, data, audio, video 772
915	915	or any other information or signals to a point or between or among 773
916	916	points. "Telecommunications service" includes such transmission, 774
917	917	conveyance or routing in which computer processing applications are 775
918	918	used to act on the form, code or protocol of the content for purposes of 776
919	919	transmission, conveyance or routing without regard to whether such 777
920	920	service is referred to as a voice over Internet protocol service or is 778
921	921	classified by the Federal Communications Commission as enhanced or 779
922	922	value added. "Telecommunications service" does not include (i) value-780
923	923	added nonvoice data services, (ii) radio and television audio and video 781
924	924	programming services, regardless of the medium, including the 782
925	925	furnishing of transmission, conveyance or routing of such services by 783
926	926	the programming service provider. Radio and television audio and 784
927	927	video programming services shall include, but not be limited to, cable 785
928	928	service as defined in 47 USC 522(6), audio and video programming 786
929	929	services delivered by commercial mobile radio service providers, as 787
930	930	defined in 47 CFR 20, and video programming service by certified 788 Raised Bill No. 1025
931	931
932	932
933	933
934	934	LCO No. 4725 26 of 54
935	935
936	936	competitive video service providers, (iii) any telecommunications 789
937	937	service (I) rendered by a company in control of such service when 790
938	938	rendered for private use within its organization, or (II) used, allocated 791
939	939	or distributed by a company within its organization, including in such 792
940	940	organization affiliates, as defined in section 33-840, for the purpose of 793
941	941	conducting business transactions of the organization if such service is 794
942	942	purchased or leased from a company rendering telecommunications 795
943	943	service and such purchase or lease is subject to tax under this chapter, 796
944	944	(iv) access or interconnection service purchased by a provider of 797
945	945	telecommunications service from another provider of such service for 798
946	946	purposes of rendering such service, provided the purchaser submits to 799
947	947	the seller a certificate attesting to the applicability of this exclusion, upon 800
948	948	receipt of which the seller is relieved of any tax liability for such sale so 801
949	949	long as the certificate is taken in good faith by the seller, (v) data 802
950	950	processing and information services that allow data to be generated, 803
951	951	acquired, stored, processed or retrieved and delivered by an electronic 804
952	952	transmission to a purchaser where such purchaser's primary purpose 805
953	953	for the underlying transaction is the processed data or information, (vi) 806
954	954	installation or maintenance of wiring equipment on a customer's 807
955	955	premises, (vii) tangible personal property, (viii) advertising, including, 808
956	956	but not limited to, directory advertising, (ix) billing and collection 809
957	957	services provided to third parties, (x) Internet access service, (xi) 810
958	958	ancillary services, and (xii) digital products delivered electronically, 811
959	959	including, but not limited to, software, music, video, reading materials 812
960	960	or ring tones. 813
961	961	(B) For purposes of the tax imposed under this chapter (i) gross 814
962	962	receipts from the rendering of telecommunications service shall include 815
963	963	any subscriber line charge or charges as required by the Federal 816
964	964	Communications Commission and any charges for access service 817
965	965	collected by any person rendering such service unless otherwise 818
966	966	excluded from such gross receipts under this chapter, and such gross 819
967	967	receipts from the rendering of telecommunications service shall also 820
968	968	include any charges for vertical service, for the installation or 821
969	969	maintenance of wiring equipment on a customer's premises, and for 822 Raised Bill No. 1025
970	970
971	971
972	972
973	973	LCO No. 4725 27 of 54
974	974
975	975	directory assistance service; (ii) gross receipts from the rendering of 823
976	976	telecommunications service shall not include any local charge for calls 824
977	977	from public or semipublic telephones; and (iii) gross receipts from the 825
978	978	rendering of telecommunications service shall not include any charge 826
979	979	for calls purchased using a prepaid telephone calling service, as defined 827
980	980	in subdivision (34) of this subsection. 828
981	981	(27) "Community antenna television service" means (A) the one-way 829
982	982	transmission to subscribers of video programming or information by 830
983	983	cable, fiber optics, satellite, microwave or any other means, and 831
984	984	subscriber interaction, if any, which is required for the selection of such 832
985	985	video programming or information, and (B) noncable communications 833
986	986	service, as defined in section 16-1, unless such noncable 834
987	987	communications service is purchased by a cable network as that term is 835
988	988	used in subsection (k) of section 12-218. 836
989	989	(28) "Hospital" means a hospital included within the definition of 837
990	990	health care facilities or institutions under section 19a-630 and licensed 838
991	991	as a short-term general hospital by the Department of Public Health, but 839
992	992	does not include (A) any hospital which, on January 30, 1997, is within 840
993	993	the class of hospitals licensed by the department as children's general 841
994	994	hospitals, or (B) a short-term acute hospital operated exclusively by the 842
995	995	state other than a short-term acute hospital operated by the state as a 843
996	996	receiver pursuant to chapter 920. 844
997	997	(29) "Patient care services" means therapeutic and diagnostic medical 845
998	998	services provided by the hospital to inpatients and outpatients 846
999	999	including tangible personal property transferred in connection with 847
1000	1000	such services. 848
1001	1001	(30) "Another state" or "other state" means any state of the United 849
1002	1002	States or the District of Columbia excluding the state of Connecticut. 850
1003	1003	(31) "Professional employer agreement" means a written contract 851
1004	1004	between a professional employer organization and a service recipient 852
1005	1005	whereby the professional employer organization agrees to provide at 853
1006	1006	least seventy-five per cent of the employees at the service recipient's 854 Raised Bill No. 1025
1007	1007
1008	1008
1009	1009
1010	1010	LCO No. 4725 28 of 54
1011	1011
1012	1012	worksite, which contract provides that such worksite employees are 855
1013	1013	intended to be permanent employees rather than temporary employees, 856
1014	1014	and employer responsibilities for such worksite employees, including 857
1015	1015	hiring, firing and disciplining, are allocated between the professional 858
1016	1016	employer organization and the service recipient. 859
1017	1017	(32) "Professional employer organization" means any person that 860
1018	1018	enters into a professional employer agreement with a service recipient 861
1019	1019	whereby the professional employer organization agrees to provide at 862
1020	1020	least seventy-five per cent of the employees at the service recipient's 863
1021	1021	worksite. 864
1022	1022	(33) "Worksite employee" means an employee, the employer 865
1023	1023	responsibilities for which, including hiring, firing and disciplining, are 866
1024	1024	allocated, under a professional employer agreement, between a 867
1025	1025	professional employer organization and a service recipient. 868
1026	1026	(34) "Prepaid telephone calling service" means the right to exclusively 869
1027	1027	purchase telecommunications service, that must be paid for in advance 870
1028	1028	and that enables the origination of calls using an access number or 871
1029	1029	authorization code, or both, whether manually or electronically dialed, 872
1030	1030	provided the remaining amount of units of service that have been 873
1031	1031	prepaid shall be known on a continuous basis. 874
1032	1032	(35) "Canned or prewritten software" means all software, other than 875
1033	1033	custom software, that is held or existing for general or repeated sale, 876
1034	1034	license or lease. Software initially developed as custom software for in-877
1035	1035	house use and subsequently sold, licensed or leased to unrelated third 878
1036	1036	parties shall be considered canned or prewritten software. 879
1037	1037	(36) "Custom software" means a computer program prepared to the 880
1038	1038	special order of a single customer. 881
1039	1039	(37) "Services" for purposes of subdivision (2) of this subsection, 882
1040	1040	means: 883
1041	1041	(A) Computer and data processing services, including, but not 884 Raised Bill No. 1025
1042	1042
1043	1043
1044	1044
1045	1045	LCO No. 4725 29 of 54
1046	1046
1047	1047	limited to, time, programming, code writing, modification of existing 885
1048	1048	programs, feasibility studies and installation and implementation of 886
1049	1049	software programs and systems even where such services are rendered 887
1050	1050	in connection with the development, creation or production of canned 888
1051	1051	or custom software or the license of custom software, but excluding 889
1052	1052	digital goods; 890
1053	1053	(B) Credit information and reporting services; 891
1054	1054	(C) Services by employment agencies and agencies providing 892
1055	1055	personnel services; 893
1056	1056	(D) Private investigation, protection, patrol work, watchman and 894
1057	1057	armored car services, exclusive of (i) services of off-duty police officers 895
1058	1058	and off-duty firefighters, and (ii) coin and currency services provided to 896
1059	1059	a financial services company by or through another financial services 897
1060	1060	company. For purposes of this subparagraph, "financial services 898
1061	1061	company" has the same meaning as provided under subparagraphs (A) 899
1062	1062	to (H), inclusive, of subdivision (6) of subsection (a) of section 12-218b; 900
1063	1063	(E) Painting and lettering services; 901
1064	1064	(F) Photographic studio services; 902
1065	1065	(G) Telephone answering services; 903
1066	1066	(H) Stenographic services; 904
1067	1067	(I) Services to industrial, commercial or income-producing real 905
1068	1068	property, including, but not limited to, such services as management, 906
1069	1069	electrical, plumbing, painting and carpentry, provided income-907
1070	1070	producing property shall not include property used exclusively for 908
1071	1071	residential purposes in which the owner resides and which contains no 909
1072	1072	more than three dwelling units, or a housing facility for low and 910
1073	1073	moderate income families and persons owned or operated by a 911
1074	1074	nonprofit housing organization, as defined in subdivision (29) of section 912
1075	1075	12-412; 913 Raised Bill No. 1025
1076	1076
1077	1077
1078	1078
1079	1079	LCO No. 4725 30 of 54
1080	1080
1081	1081	(J) Business analysis, management, management consulting and 914
1082	1082	public relations services, excluding (i) any environmental consulting 915
1083	1083	services, (ii) any training services provided by an institution of higher 916
1084	1084	education licensed or accredited by the Board of Regents for Higher 917
1085	1085	Education or Office of Higher Education pursuant to sections 10a-35a 918
1086	1086	and 10a-34, respectively, and (iii) on and after January 1, 1994, any 919
1087	1087	business analysis, management, management consulting and public 920
1088	1088	relations services when such services are rendered in connection with 921
1089	1089	an aircraft leased or owned by a certificated air carrier or in connection 922
1090	1090	with an aircraft which has a maximum certificated take-off weight of six 923
1091	1091	thousand pounds or more; 924
1092	1092	(K) Services providing "piped-in" music to business or professional 925
1093	1093	establishments; 926
1094	1094	(L) Flight instruction and chartering services by a certificated air 927
1095	1095	carrier on an aircraft, the use of which for such purposes, but for the 928
1096	1096	provisions of subdivision (4) of section 12-410 and subdivision (12) of 929
1097	1097	section 12-411, as amended by this act, would be deemed a retail sale 930
1098	1098	and a taxable storage or use, respectively, of such aircraft by such 931
1099	1099	carrier; 932
1100	1100	(M) Motor vehicle repair services, including any type of repair, 933
1101	1101	painting or replacement related to the body or any of the operating parts 934
1102	1102	of a motor vehicle; 935
1103	1103	(N) Motor vehicle parking, excluding space in a parking lot owned or 936
1104	1104	leased under the terms of a lease of not less than ten years' duration and 937
1105	1105	operated by an employer for the exclusive use of its employees; 938
1106	1106	(O) Radio or television repair services; 939
1107	1107	(P) Furniture reupholstering and repair services; 940
1108	1108	(Q) Repair services to any electrical or electronic device, including, 941
1109	1109	but not limited to, equipment used for purposes of refrigeration or air-942
1110	1110	conditioning; 943 Raised Bill No. 1025
1111	1111
1112	1112
1113	1113
1114	1114	LCO No. 4725 31 of 54
1115	1115
1116	1116	(R) Lobbying or consulting services for purposes of representing the 944
1117	1117	interests of a client in relation to the functions of any governmental 945
1118	1118	entity or instrumentality; 946
1119	1119	(S) Services of the agent of any person in relation to the sale of any 947
1120	1120	item of tangible personal property for such person, exclusive of the 948
1121	1121	services of a consignee selling works of art, as defined in subsection (b) 949
1122	1122	of section 12-376c, or articles of clothing or footwear intended to be worn 950
1123	1123	on or about the human body other than (i) any special clothing or 951
1124	1124	footwear primarily designed for athletic activity or protective use and 952
1125	1125	which is not normally worn except when used for the athletic activity or 953
1126	1126	protective use for which it was designed, and (ii) jewelry, handbags, 954
1127	1127	luggage, umbrellas, wallets, watches and similar items carried on or 955
1128	1128	about the human body but not worn on the body, under consignment, 956
1129	1129	exclusive of services provided by an auctioneer; 957
1130	1130	(T) Locksmith services; 958
1131	1131	(U) Advertising or public relations services, including layout, art 959
1132	1132	direction, graphic design, mechanical preparation or production 960
1133	1133	supervision, not related to the development of media advertising or 961
1134	1134	cooperative direct mail advertising; 962
1135	1135	(V) Landscaping and horticulture services; 963
1136	1136	(W) Window cleaning services; 964
1137	1137	(X) Maintenance services; 965
1138	1138	(Y) Janitorial services; 966
1139	1139	(Z) Exterminating services; 967
1140	1140	(AA) Swimming pool cleaning and maintenance services; 968
1141	1141	(BB) Miscellaneous personal services included in industry group 729 969
1142	1142	in the Standard Industrial Classification Manual, United States Office of 970
1143	1143	Management and Budget, 1987 edition, or industry group 532220, 971 Raised Bill No. 1025
1144	1144
1145	1145
1146	1146
1147	1147	LCO No. 4725 32 of 54
1148	1148
1149	1149	812191, 812199 or 812990 of the North American Industry Classification 972
1150	1150	System United States Manual, United States Office of Management and 973
1151	1151	Budget (NAICS), 1997 edition, exclusive of (i) services rendered by 974
1152	1152	massage therapists licensed pursuant to chapter 384a, and (ii) services 975
1153	1153	rendered by an electrologist licensed pursuant to chapter 388; 976
1154	1154	(CC) Any repair or maintenance service to any item of tangible 977
1155	1155	personal property including any contract of warranty or service related 978
1156	1156	to any such item; 979
1157	1157	(DD) Business analysis, management or managing consulting 980
1158	1158	services rendered by a general partner, or an affiliate thereof, to a 981
1159	1159	limited partnership, provided (i) the general partner, or an affiliate 982
1160	1160	thereof, is compensated for the rendition of such services other than 983
1161	1161	through a distributive share of partnership profits or an annual 984
1162	1162	percentage of partnership capital or assets established in the limited 985
1163	1163	partnership's offering statement, and (ii) the general partner, or an 986
1164	1164	affiliate thereof, offers such services to others, including any other 987
1165	1165	partnership. As used in this subparagraph "an affiliate of a general 988
1166	1166	partner" means an entity which is directly or indirectly owned fifty per 989
1167	1167	cent or more in common with a general partner; 990
1168	1168	(EE) Notwithstanding the provisions of section 12-412, except 991
1169	1169	subdivision (87) of said section 12-412, patient care services, as defined 992
1170	1170	in subdivision (29) of this subsection by a hospital, except that "sale" and 993
1171	1171	"selling" does not include such patient care services for which payment 994
1172	1172	is received by the hospital during the period commencing July 1, 2001, 995
1173	1173	and ending June 30, 2003; 996
1174	1174	(FF) Health and athletic club services, exclusive of (i) any such 997
1175	1175	services provided without any additional charge which are included in 998
1176	1176	any dues or initiation fees paid to any such club, which dues or fees are 999
1177	1177	subject to tax under section 12-543, and (ii) any such services provided 1000
1178	1178	by a municipality or an organization that is described in Section 501(c) 1001
1179	1179	of the Internal Revenue Code of 1986, or any subsequent corresponding 1002
1180	1180	internal revenue code of the United States, as amended from time to 1003 Raised Bill No. 1025
1181	1181
1182	1182
1183	1183
1184	1184	LCO No. 4725 33 of 54
1185	1185
1186	1186	time; 1004
1187	1187	(GG) Motor vehicle storage services, including storage of motor 1005
1188	1188	homes, campers and camp trailers, other than the furnishing of space as 1006
1189	1189	described in subparagraph (P) of subdivision (2) of this subsection; 1007
1190	1190	(HH) Packing and crating services, other than those provided in 1008
1191	1191	connection with the sale of tangible personal property by the retailer of 1009
1192	1192	such property; 1010
1193	1193	(II) Motor vehicle towing and road services, other than motor vehicle 1011
1194	1194	repair services; 1012
1195	1195	(JJ) Intrastate transportation services provided by livery services, 1013
1196	1196	including limousines, community cars or vans, with a driver. Intrastate 1014
1197	1197	transportation services shall not include transportation by taxicab, 1015
1198	1198	motor bus, ambulance or ambulette, scheduled public transportation, 1016
1199	1199	nonemergency medical transportation provided under the Medicaid 1017
1200	1200	program, paratransit services provided by agreement or arrangement 1018
1201	1201	with the state or any political subdivision of the state, dial-a-ride 1019
1202	1202	services or services provided in connection with funerals; 1020
1203	1203	(KK) Pet grooming and pet boarding services, except if such services 1021
1204	1204	are provided as an integral part of professional veterinary services, and 1022
1205	1205	pet obedience services; 1023
1206	1206	(LL) Services in connection with a cosmetic medical procedure. For 1024
1207	1207	purposes of this subparagraph, "cosmetic medical procedure" means 1025
1208	1208	any medical procedure performed on an individual that is directed at 1026
1209	1209	improving the individual's appearance and that does not meaningfully 1027
1210	1210	promote the proper function of the body or prevent or treat illness or 1028
1211	1211	disease. "Cosmetic medical procedure" includes, but is not limited to, 1029
1212	1212	cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 1030
1213	1213	tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 1031
1214	1214	skin resurfacing, laser treatment of leg veins and sclerotherapy. 1032
1215	1215	"Cosmetic medical procedure" does not include reconstructive surgery. 1033
1216	1216	"Reconstructive surgery" includes any surgery performed on abnormal 1034 Raised Bill No. 1025
1217	1217
1218	1218
1219	1219
1220	1220	LCO No. 4725 34 of 54
1221	1221
1222	1222	structures caused by or related to congenital defects, developmental 1035
1223	1223	abnormalities, trauma, infection, tumors or disease, including 1036
1224	1224	procedures to improve function or give a more normal appearance; 1037
1225	1225	(MM) Manicure services, pedicure services and all other nail services, 1038
1226	1226	regardless of where performed, including airbrushing, fills, full sets, nail 1039
1227	1227	sculpting, paraffin treatments and polishes; 1040
1228	1228	(NN) Spa services, regardless of where performed, including body 1041
1229	1229	waxing and wraps, peels, scrubs and facials; 1042
1230	1230	(OO) Car wash services, including coin-operated car washes; 1043
1231	1231	(PP) Dry cleaning services and laundry services, excluding coin-1044
1232	1232	operated services; 1045
1233	1233	(QQ) Interior design services described in industry group 54141 of 1046
1234	1234	the NAICS, 2017 edition, as amended from time to time. 1047
1235	1235	(38) "Media payroll services company" means a retailer whose 1048
1236	1236	principal business activity is the management and payment of 1049
1237	1237	compensation, fringe benefits, workers' compensation, payroll taxes or 1050
1238	1238	assessments to individuals providing services to an eligible production 1051
1239	1239	company pursuant to section 12-217jj. 1052
1240	1240	(39) "Certified competitive video service" means video programming 1053
1241	1241	service provided through wireline facilities, a portion of which are 1054
1242	1242	located in the public right-of-way, without regard to delivery 1055
1243	1243	technology, including Internet protocol technology. "Certified 1056
1244	1244	competitive video service" does not include any video programming 1057
1245	1245	provided by a commercial mobile service provider, as defined in 47 USC 1058
1246	1246	332(d); any video programming provided as part of community antenna 1059
1247	1247	television service; any video programming provided as part of, and via, 1060
1248	1248	a service that enables users to access content, information, electronic 1061
1249	1249	mail or other services over the Internet. 1062
1250	1250	(40) "Directory assistance" means an ancillary service of providing 1063
1251	1251	telephone number information or address information. 1064 Raised Bill No. 1025
1252	1252
1253	1253
1254	1254
1255	1255	LCO No. 4725 35 of 54
1256	1256
1257	1257	(41) "Vertical service" means an ancillary service that is offered in 1065
1258	1258	connection with one or more telecommunications services, offering 1066
1259	1259	advanced calling features that allow customers to identify callers and to 1067
1260	1260	manage multiple calls and call connections, including conference 1068
1261	1261	bridging services. 1069
1262	1262	(42) "Bed and breakfast establishment" means any private operator-1070
1263	1263	occupied house, other than a hotel, [or] lodging house or short-term 1071
1264	1264	rental property, with twelve or fewer rooms in which persons are 1072
1265	1265	lodged for hire and a full morning meal is included in the rent. 1073
1266	1266	(43) "Digital goods" means audio works, visual works, audio-visual 1074
1267	1267	works, reading materials or ring tones, that are electronically accessed 1075
1268	1268	or transferred. 1076
1269	1269	(44) "Short-term rental property" means any dwelling unit, other than 1077
1270	1270	a hotel, lodging house or bed and breakfast establishment, in which a 1078
1271	1271	guest is lodged for hire, with or without meals, pursuant to a short-term 1079
1272	1272	rental transaction. For the purposes of this subdivision, "dwelling unit", 1080
1273	1273	"guest" and "short-term rental transaction" have the same meanings as 1081
1274	1274	provided in section 1 of this act. 1082
1275	1275	(b) Wherever in this chapter reference is made to the sale of tangible 1083
1276	1276	personal property or services, it shall be construed to include sales 1084
1277	1277	described in subdivision (2) of subsection (a) of this section, except as 1085
1278	1278	may be specifically provided to the contrary. 1086
1279	1279	Sec. 9. Section 12-408 of the general statutes is repealed and the 1087
1280	1280	following is substituted in lieu thereof (Effective July 1, 2021, and 1088
1281	1281	applicable to sales occurring on or after July 1, 2021): 1089
1282	1282	(1) (A) For the privilege of making any sales, as defined in 1090
1283	1283	subdivision (2) of subsection (a) of section 12-407, as amended by this 1091
1284	1284	act, at retail, in this state for a consideration, a tax is hereby imposed on 1092
1285	1285	all retailers at the rate of six and thirty-five-hundredths per cent of the 1093
1286	1286	gross receipts of any retailer from the sale of all tangible personal 1094
1287	1287	property sold at retail or from the rendering of any services constituting 1095 Raised Bill No. 1025
1288	1288
1289	1289
1290	1290
1291	1291	LCO No. 4725 36 of 54
1292	1292
1293	1293	a sale in accordance with subdivision (2) of subsection (a) of section 12-1096
1294	1294	407, as amended by this act, except, in lieu of said rate, the rates 1097
1295	1295	provided in subparagraphs (B) to (I), inclusive, of this subdivision; 1098
1296	1296	(B) (i) At a rate of fifteen per cent with respect to each transfer of 1099
1297	1297	occupancy, from the total amount of rent received by a hotel or lodging 1100
1298	1298	house for the first period not exceeding thirty consecutive calendar 1101
1299	1299	days; 1102
1300	1300	(ii) At a rate of eleven per cent with respect to each transfer of 1103
1301	1301	occupancy, from the total amount of rent received by a bed and 1104
1302	1302	breakfast establishment for the first period not exceeding thirty 1105
1303	1303	consecutive calendar days; 1106
1304	1304	(iii) At a rate of five per cent with respect to each transfer of 1107
1305	1305	occupancy to a guest, as defined in section 1 of this act, from the total 1108
1306	1306	amount of rent received by a short-term rental operator, as defined in 1109
1307	1307	section 1 of this act, for the first period not exceeding thirty consecutive 1110
1308	1308	calendar days; 1111
1309	1309	(C) With respect to the sale of a motor vehicle to any individual who 1112
1310	1310	is a member of the armed forces of the United States and is on full-time 1113
1311	1311	active duty in Connecticut and who is considered, under 50 App USC 1114
1312	1312	574, a resident of another state, or to any such individual and the spouse 1115
1313	1313	thereof, at a rate of four and one-half per cent of the gross receipts of any 1116
1314	1314	retailer from such sales, provided such retailer requires and maintains a 1117
1315	1315	declaration by such individual, prescribed as to form by the 1118
1316	1316	commissioner and bearing notice to the effect that false statements made 1119
1317	1317	in such declaration are punishable, or other evidence, satisfactory to the 1120
1318	1318	commissioner, concerning the purchaser's state of residence under 50 1121
1319	1319	App USC 574; 1122
1320	1320	(D) (i) With respect to the sales of computer and data processing 1123
1321	1321	services occurring on or after July 1, 2001, at the rate of one per cent, and 1124
1322	1322	(ii) with respect to sales of Internet access services, on and after July 1, 1125
1323	1323	2001, such services shall be exempt from such tax; 1126 Raised Bill No. 1025
1324	1324
1325	1325
1326	1326
1327	1327	LCO No. 4725 37 of 54
1328	1328
1329	1329	(E) (i) With respect to the sales of labor that is otherwise taxable under 1127
1330	1330	subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 1128
1331	1331	12-407, as amended by this act, on existing vessels and repair or 1129
1332	1332	maintenance services on vessels occurring on and after July 1, 1999, such 1130
1333	1333	services shall be exempt from such tax; 1131
1334	1334	(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 1132
1335	1335	used for transporting a vessel, at the rate of two and ninety-nine-1133
1336	1336	hundredths per cent, except that the sale of a vessel shall be exempt from 1134
1337	1337	such tax if such vessel is docked in this state for sixty or fewer days in a 1135
1338	1338	calendar year; 1136
1339	1339	(iii) With respect to the sale of dyed diesel fuel, as defined in 1137
1340	1340	subsection (d) of section 12-487, sold by a marine fuel dock exclusively 1138
1341	1341	for marine purposes, at the rate of two and ninety-nine-hundredths per 1139
1342	1342	cent; 1140
1343	1343	(F) With respect to patient care services for which payment is 1141
1344	1344	received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 1142
1345	1345	at the rate of five and three-fourths per cent and on and after July 1, 2001, 1143
1346	1346	such services shall be exempt from such tax; 1144
1347	1347	(G) With respect to the rental or leasing of a passenger motor vehicle 1145
1348	1348	for a period of thirty consecutive calendar days or less, at a rate of nine 1146
1349	1349	and thirty-five-hundredths per cent; 1147
1350	1350	(H) With respect to the sale of (i) a motor vehicle for a sales price 1148
1351	1351	exceeding fifty thousand dollars, at a rate of seven and three-fourths per 1149
1352	1352	cent on the entire sales price, (ii) jewelry, whether real or imitation, for 1150
1353	1353	a sales price exceeding five thousand dollars, at a rate of seven and 1151
1354	1354	three-fourths per cent on the entire sales price, and (iii) an article of 1152
1355	1355	clothing or footwear intended to be worn on or about the human body, 1153
1356	1356	a handbag, luggage, umbrella, wallet or watch for a sales price 1154
1357	1357	exceeding one thousand dollars, at a rate of seven and three-fourths per 1155
1358	1358	cent on the entire sales price. For purposes of this subparagraph, "motor 1156
1359	1359	vehicle" has the meaning provided in section 14-1, but does not include 1157
1360	1360	a motor vehicle subject to the provisions of subparagraph (C) of this 1158 Raised Bill No. 1025
1361	1361
1362	1362
1363	1363
1364	1364	LCO No. 4725 38 of 54
1365	1365
1366	1366	subdivision, a motor vehicle having a gross vehicle weight rating over 1159
1367	1367	twelve thousand five hundred pounds, or a motor vehicle having a 1160
1368	1368	gross vehicle weight rating of twelve thousand five hundred pounds or 1161
1369	1369	less that is not used for private passenger purposes, but is designed or 1162
1370	1370	used to transport merchandise, freight or persons in connection with 1163
1371	1371	any business enterprise and issued a commercial registration or more 1164
1372	1372	specific type of registration by the Department of Motor Vehicles; 1165
1373	1373	(I) With respect to the sale of meals, as defined in subdivision (13) of 1166
1374	1374	section 12-412, sold by an eating establishment, caterer or grocery store; 1167
1375	1375	and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 1168
1376	1376	such as are ordinarily dispensed at bars and soda fountains, or in 1169
1377	1377	connection therewith; in addition to the tax imposed under 1170
1378	1378	subparagraph (A) of this subdivision, at the rate of one per cent; 1171
1379	1379	(J) The rate of tax imposed by this chapter shall be applicable to all 1172
1380	1380	retail sales upon the effective date of such rate, except that a new rate 1173
1381	1381	that represents an increase in the rate applicable to the sale shall not 1174
1382	1382	apply to any sales transaction wherein a binding sales contract without 1175
1383	1383	an escalator clause has been entered into prior to the effective date of the 1176
1384	1384	new rate and delivery is made within ninety days after the effective date 1177
1385	1385	of the new rate. For the purposes of payment of the tax imposed under 1178
1386	1386	this section, any retailer of services taxable under subdivision (37) of 1179
1387	1387	subsection (a) of section 12-407, as amended by this act, who computes 1180
1388	1388	taxable income, for purposes of taxation under the Internal Revenue 1181
1389	1389	Code of 1986, or any subsequent corresponding internal revenue code 1182
1390	1390	of the United States, as amended from time to time, on an accounting 1183
1391	1391	basis that recognizes only cash or other valuable consideration actually 1184
1392	1392	received as income and who is liable for such tax only due to the 1185
1393	1393	rendering of such services may make payments related to such tax for 1186
1394	1394	the period during which such income is received, without penalty or 1187
1395	1395	interest, without regard to when such service is rendered; 1188
1396	1396	(K) (i) For calendar quarters ending on or after September 30, 2019, 1189
1397	1397	the commissioner shall deposit into the regional planning incentive 1190
1398	1398	account, established pursuant to section 4-66k, six and seven-tenths per 1191 Raised Bill No. 1025
1399	1399
1400	1400
1401	1401
1402	1402	LCO No. 4725 39 of 54
1403	1403
1404	1404	cent of the amounts received by the state from the tax imposed under 1192
1405	1405	[subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this subdivision 1193
1406	1406	and ten and seven-tenths per cent of the amounts received by the state 1194
1407	1407	from the tax imposed under subparagraph (G) of this subdivision; 1195
1408	1408	(ii) For calendar quarters ending on or after September 30, 2018, the 1196
1409	1409	commissioner shall deposit into the Tourism Fund established under 1197
1410	1410	section 10-395b ten per cent of the amounts received by the state from 1198
1411	1411	the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1199
1412	1412	(B)(ii) of this subdivision; 1200
1413	1413	(L) For calendar months commencing on or after July 1, 2021, the 1201
1414	1414	commissioner shall deposit into the municipal revenue sharing account 1202
1415	1415	established pursuant to section 4-66l seven and nine-tenths per cent of 1203
1416	1416	the amounts received by the state from the tax imposed under 1204
1417	1417	subparagraph (A) of this subdivision; and 1205
1418	1418	(M) (i) For calendar months commencing on or after July 1, 2017, the 1206
1419	1419	commissioner shall deposit into the Special Transportation Fund 1207
1420	1420	established under section 13b-68 seven and nine-tenths per cent of the 1208
1421	1421	amounts received by the state from the tax imposed under 1209
1422	1422	subparagraph (A) of this subdivision; 1210
1423	1423	(ii) For calendar months commencing on or after July 1, 2018, but 1211
1424	1424	prior to July 1, 2019, the commissioner shall deposit into the Special 1212
1425	1425	Transportation Fund established under section 13b-68 eight per cent of 1213
1426	1426	the amounts received by the state from the tax imposed under 1214
1427	1427	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1215
1428	1428	vehicle; 1216
1429	1429	(iii) For calendar months commencing on or after July 1, 2019, but 1217
1430	1430	prior to July 1, 2020, the commissioner shall deposit into the Special 1218
1431	1431	Transportation Fund established under section 13b-68 seventeen per 1219
1432	1432	cent of the amounts received by the state from the tax imposed under 1220
1433	1433	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1221
1434	1434	vehicle; 1222 Raised Bill No. 1025
1435	1435
1436	1436
1437	1437
1438	1438	LCO No. 4725 40 of 54
1439	1439
1440	1440	(iv) For calendar months commencing on or after July 1, 2020, but 1223
1441	1441	prior to July 1, 2021, the commissioner shall deposit into the Special 1224
1442	1442	Transportation Fund established under section 13b-68 twenty-five per 1225
1443	1443	cent of the amounts received by the state from the tax imposed under 1226
1444	1444	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1227
1445	1445	vehicle; 1228
1446	1446	(v) For calendar months commencing on or after July 1, 2021, but 1229
1447	1447	prior to July 1, 2022, the commissioner shall deposit into the Special 1230
1448	1448	Transportation Fund established under section 13b-68 seventy-five per 1231
1449	1449	cent of the amounts received by the state from the tax imposed under 1232
1450	1450	subparagraphs (A) and (H) of this subdivision on the sale of a motor 1233
1451	1451	vehicle; [and] 1234
1452	1452	(vi) For calendar months commencing on or after July 1, 2022, the 1235
1453	1453	commissioner shall deposit into the Special Transportation Fund 1236
1454	1454	established under section 13b-68 one hundred per cent of the amounts 1237
1455	1455	received by the state from the tax imposed under subparagraphs (A) 1238
1456	1456	and (H) of this subdivision on the sale of a motor vehicle; and 1239
1457	1457	(vii) For calendar months commencing on or after July 1, 2021, the 1240
1458	1458	commissioner shall deposit into the Housing Trust Fund established 1241
1459	1459	under section 8-336o fifty per cent of the amounts received by the state 1242
1460	1460	from the tax imposed under subparagraph (B)(iii) of this subdivision. 1243
1461	1461	(2) (A) Reimbursement for the tax hereby imposed shall be collected 1244
1462	1462	by the retailer from the consumer and such tax reimbursement, termed 1245
1463	1463	"tax" in this and the following subsections, shall be paid by the 1246
1464	1464	consumer to the retailer and each retailer shall collect from the consumer 1247
1465	1465	the full amount of the tax imposed by this chapter or an amount equal 1248
1466	1466	as nearly as possible or practicable to the average equivalent thereof. 1249
1467	1467	Such tax shall be a debt from the consumer to the retailer, when so 1250
1468	1468	added to the original sales price, and shall be recoverable at law in the 1251
1469	1469	same manner as other debts except as provided in section 12-432a. The 1252
1470	1470	amount of tax reimbursement, when so collected, shall be deemed to be 1253
1471	1471	a special fund in trust for the state of Connecticut. 1254 Raised Bill No. 1025
1472	1472
1473	1473
1474	1474
1475	1475	LCO No. 4725 41 of 54
1476	1476
1477	1477	(B) Whenever such tax, payable by the consumer (i) with respect to a 1255
1478	1478	charge account or credit sale, is remitted by the retailer to the 1256
1479	1479	commissioner and such sale as an account receivable is determined to 1257
1480	1480	be worthless and is actually written off as uncollectible for federal 1258
1481	1481	income tax purposes, or (ii) to a retailer who computes taxable income, 1259
1482	1482	for purposes of taxation under the Internal Revenue Code of 1986, or 1260
1483	1483	any subsequent corresponding internal revenue code of the United 1261
1484	1484	States, as amended from time to time, on the cash basis method of 1262
1485	1485	accounting with respect to a sale, is remitted by the retailer to the 1263
1486	1486	commissioner and such sale as an account receivable is determined to 1264
1487	1487	be worthless, the amount of such tax remitted may be credited against 1265
1488	1488	the tax due on the sales tax return filed by the retailer for the monthly 1266
1489	1489	or quarterly period, whichever is applicable, next following the period 1267
1490	1490	in which such amount is actually so written off, but in no event shall 1268
1491	1491	such credit be allowed later than three years following the date such tax 1269
1492	1492	is remitted, unless the credit relates to a period for which a waiver is 1270
1493	1493	given pursuant to subsection (g) of section 12-415. The commissioner 1271
1494	1494	shall, by regulations adopted in accordance with the provisions of 1272
1495	1495	chapter 54, provide standards for proving any such claim for credit. If 1273
1496	1496	any payment is made by a consumer with respect to an account, such 1274
1497	1497	payment shall be applied first toward the sales tax, and if any account 1275
1498	1498	with respect to which such credit is allowed is thereafter collected by the 1276
1499	1499	retailer in whole or in part, the amount so collected, up to the amount of 1277
1500	1500	the sales tax for which the credit was claimed, shall be included in the 1278
1501	1501	sales tax return covering the period in which such collection occurs. The 1279
1502	1502	tax applicable in any such case shall be determined in accordance with 1280
1503	1503	the rate of sales tax in effect at the time of the original sale. 1281
1504	1504	(C) (i) Any person required to collect tax in accordance with this 1282
1505	1505	subsection who demonstrates to the satisfaction of the Commissioner of 1283
1506	1506	Revenue Services by July first of any year that, in any two quarterly 1284
1507	1507	periods as described in section 12-414, within the most recent four 1285
1508	1508	consecutive quarterly periods, such person was a materialman as such 1286
1509	1509	term is used in chapter 847, who has at least fifty per cent of such 1287
1510	1510	person's sales of building materials to contractors, subcontractors or 1288 Raised Bill No. 1025
1511	1511
1512	1512
1513	1513
1514	1514	LCO No. 4725 42 of 54
1515	1515
1516	1516	repairmen for the improvement of real property, and is authorized by 1289
1517	1517	said chapter to file a mechanic's lien upon such real property and 1290
1518	1518	improvement shall, with respect to such sales made through the 1291
1519	1519	quarterly period ending the succeeding June thirtieth, collect tax due on 1292
1520	1520	such sales, and on sales to such contractors, subcontractors or repairmen 1293
1521	1521	of services described in subdivision (2) of subsection (a) of section 12-1294
1522	1522	407, as amended by this act, with respect to such building materials, for 1295
1523	1523	such purpose and made during such July first through June thirtieth 1296
1524	1524	period, at the time and to the extent that such person receives the 1297
1525	1525	receipts from, or consideration for, such sales from such contractors, 1298
1526	1526	subcontractors or repairmen, provided if such person receives a portion 1299
1527	1527	of such receipts or consideration, such person shall collect the tax due 1300
1528	1528	on such portion at the time the portion is received. The taxes imposed 1301
1529	1529	by this chapter on such receipts and consideration shall be deemed 1302
1530	1530	imposed, solely for purposes of determining when such person is 1303
1531	1531	required to collect and pay over such taxes to the commissioner under 1304
1532	1532	section 12-414, when such person has received payment of such receipts 1305
1533	1533	or consideration in money, or money's worth, from such contractor, 1306
1534	1534	subcontractor or repairman. A contractor, subcontractor or repairman 1307
1535	1535	who purchases building materials or services from such person 1308
1536	1536	pursuant to this subparagraph shall, at the time such contractor, 1309
1537	1537	subcontractor or repairman pays any portion of the purchase price, pay 1310
1538	1538	to the person the tax due on the portion of the purchase price so paid. 1311
1539	1539	(ii) In the event that a materialman described in this subparagraph 1312
1540	1540	factors any portion of such materialman's receivables, such materialman 1313
1541	1541	shall be deemed to have received payment of such receipts or 1314
1542	1542	consideration in money or money's worth, from the contractor, 1315
1543	1543	subcontractor or repairman and shall be required to pay over tax on 1316
1544	1544	such sale with the next return due, with a credit against such tax for any 1317
1545	1545	tax already paid over with respect to such sale. Any such amount of tax 1318
1546	1546	paid over shall be on account of the tax required to be collected on the 1319
1547	1547	sale to which it relates and such materialman may take a credit against 1320
1548	1548	any tax paid by such contractor, subcontractor or repairman in the 1321
1549	1549	future on such sale, to ensure that tax paid over with respect to such sale 1322 Raised Bill No. 1025
1550	1550
1551	1551
1552	1552
1553	1553	LCO No. 4725 43 of 54
1554	1554
1555	1555	does not exceed the amount of tax imposed on such sale as if the entire 1323
1556	1556	purchase price had been paid at the time of sale. 1324
1557	1557	(iii) A materialman described in this subparagraph who has not 1325
1558	1558	collected the tax due on the full purchase price for a sale described in 1326
1559	1559	this subparagraph from a contractor, subcontractor or repairman within 1327
1560	1560	one year from the date of such sale, shall pay over to the commissioner 1328
1561	1561	the tax due on any balance of such full purchase price with such 1329
1562	1562	materialman's return for the period which includes the date which is 1330
1563	1563	one year after the date of such sale. 1331
1564	1564	(iv) The commissioner may assess additional tax due with respect to 1332
1565	1565	a sale described in this subparagraph not later than three years from the 1333
1566	1566	date the tax is required to be paid over to the commissioner pursuant to 1334
1567	1567	this subparagraph, and in the case of a wilfully false or fraudulent return 1335
1568	1568	with intent to evade the tax, or where no return has been filed such 1336
1569	1569	taxpayer shall be subject to the provisions of section 12-428. 1337
1570	1570	(D) In the case of a sale by a producer or wholesaler of newspapers to 1338
1571	1571	a vendor who is not otherwise required to obtain a permit under this 1339
1572	1572	chapter, such producer or wholesaler shall collect the sales tax on such 1340
1573	1573	newspapers at the point of transfer to such vendor. Such tax shall be 1341
1574	1574	based on the stated retail price of such newspapers. Such vendor may 1342
1575	1575	add an amount to the price of the newspapers equal to the amount paid 1343
1576	1576	as sales tax to the producer or wholesaler and such vendor shall not be 1344
1577	1577	required to remit such amount to the state. 1345
1578	1578	(3) For the purpose of adding and collecting the tax imposed by this 1346
1579	1579	chapter, or an amount equal as nearly as possible or practicable to the 1347
1580	1580	average equivalent thereof, by the retailer from the consumer the 1348
1581	1581	following bracket system shall be in force and effect as follows: 1349
1582	1582
1583	1583	T1 Amount of Sale Amount of Tax
1584	1584	T2 $0.00 to $0.07 inclusive No Tax
1585	1585	T3 .08 to .23 inclusive 1 cent Raised Bill No. 1025
1586	1586
1587	1587
1588	1588
1589	1589	LCO No. 4725 44 of 54
1590	1590
1591	1591	T4 .24 to .39 inclusive 2 cents
1592	1592	T5 .40 to .55 inclusive 3 cents
1593	1593	T6 .56 to .70 inclusive 4 cents
1594	1594	T7 .71 to .86 inclusive 5 cents
1595	1595	T8 .87 to 1.02 inclusive 6 cents
1596	1596	T9 1.03 to 1.18 inclusive 7 cents
1597	1597
1598	1598	On all sales above $1.18, the tax shall be computed at the rate of six 1350
1599	1599	and thirty-five-hundredths per cent. 1351
1600	1600	(4) No retailer shall advertise or hold out or state to the public or to 1352
1601	1601	any consumer, directly or indirectly, that the tax or any part thereof will 1353
1602	1602	be assumed or absorbed by the retailer or that it will not be added to the 1354
1603	1603	sales price of the property sold or that, if added, it or any part thereof 1355
1604	1604	will be refunded. Under the provisions of this section, however, a 1356
1605	1605	retailer may advertise the sale of tangible personal property by any of 1357
1606	1606	the following methods: By stating the sales price alone without reference 1358
1607	1607	to the tax; by stating separately the sales price and the amount of tax to 1359
1608	1608	be collected thereon; by stating the sales price "plus tax" or "exclusive of 1360
1609	1609	tax" or by stating a sales price which includes the tax, together with the 1361
1610	1610	words "tax included" or "tax incl."; provided the retailer in the case of all 1362
1611	1611	such sales shall maintain his records to show separately the actual price 1363
1612	1612	of such sales and the amount of the tax paid thereon; and provided such 1364
1613	1613	retailer, if requested, shall furnish the consumer with a sales slip or other 1365
1614	1614	like evidence of the sale, showing the tax separately computed thereon. 1366
1615	1615	Any person violating any provision of this subsection shall be fined five 1367
1616	1616	hundred dollars for each offense. 1368
1617	1617	(5) No retailer shall exhibit or display on his premises any notice, sign 1369
1618	1618	or other advertising matter tending to mislead the public in connection 1370
1619	1619	with the imposition or collection of the tax. The Commissioner of 1371
1620	1620	Revenue Services may approve a form of notice for the purpose of 1372
1621	1621	explaining the operation of the tax. 1373
1622	1622	(6) The Commissioner of Revenue Services shall adopt regulations, in 1374 Raised Bill No. 1025
1623	1623
1624	1624
1625	1625
1626	1626	LCO No. 4725 45 of 54
1627	1627
1628	1628	accordance with chapter 54, establishing a procedure for determination 1375
1629	1629	of qualifications with respect to the reduced rate of sales tax in the case 1376
1630	1630	of certain sales of motor vehicles to members of the armed forces as 1377
1631	1631	provided in subsection (1) of this section. 1378
1632	1632	(7) For purposes of the tax imposed by this chapter, with respect to 1379
1633	1633	toll telephone service paid by inserting coins in coin-operated 1380
1634	1634	telephones, the tax shall be computed to the nearest multiple of five 1381
1635	1635	cents, except if the tax is midway between multiples of five cents, the 1382
1636	1636	next higher multiple shall apply. 1383
1637	1637	Sec. 10. Section 12-411 of the general statutes is repealed and the 1384
1638	1638	following is substituted in lieu thereof (Effective July 1, 2021, and 1385
1639	1639	applicable to sales occurring on or after July 1, 2021): 1386
1640	1640	(1) (A) An excise tax is hereby imposed on the storage, acceptance, 1387
1641	1641	consumption or any other use in this state of tangible personal property 1388
1642	1642	purchased from any retailer for storage, acceptance, consumption or any 1389
1643	1643	other use in this state, the acceptance or receipt of any services 1390
1644	1644	constituting a sale in accordance with subdivision (2) of subsection (a) 1391
1645	1645	of section 12-407, as amended by this act, purchased from any retailer 1392
1646	1646	for consumption or use in this state, or the storage, acceptance, 1393
1647	1647	consumption or any other use in this state of tangible personal property 1394
1648	1648	which has been manufactured, fabricated, assembled or processed from 1395
1649	1649	materials by a person, either within or without this state, for storage, 1396
1650	1650	acceptance, consumption or any other use by such person in this state, 1397
1651	1651	to be measured by the sales price of materials, at the rate of six and 1398
1652	1652	thirty-five-hundredths per cent of the sales price of such property or 1399
1653	1653	services, except, in lieu of said rate: 1400
1654	1654	(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 1401
1655	1655	house for the first period not exceeding thirty consecutive calendar 1402
1656	1656	days; 1403
1657	1657	(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 1404
1658	1658	establishment for the first period not exceeding thirty consecutive 1405
1659	1659	calendar days; 1406 Raised Bill No. 1025
1660	1660
1661	1661
1662	1662
1663	1663	LCO No. 4725 46 of 54
1664	1664
1665	1665	(iii) At a rate of five per cent of the rent paid to a short-term rental 1407
1666	1666	operator, as defined in section 1 of this act, for the first period not 1408
1667	1667	exceeding thirty consecutive calendar days; 1409
1668	1668	(C) With respect to the storage, acceptance, consumption or use in 1410
1669	1669	this state of a motor vehicle purchased from any retailer for storage, 1411
1670	1670	acceptance, consumption or use in this state by any individual who is a 1412
1671	1671	member of the armed forces of the United States and is on full-time 1413
1672	1672	active duty in Connecticut and who is considered, under 50 App USC 1414
1673	1673	574, a resident of another state, or to any such individual and the spouse 1415
1674	1674	of such individual at a rate of four and one-half per cent of the sales price 1416
1675	1675	of such vehicle, provided such retailer requires and maintains a 1417
1676	1676	declaration by such individual, prescribed as to form by the 1418
1677	1677	commissioner and bearing notice to the effect that false statements made 1419
1678	1678	in such declaration are punishable, or other evidence, satisfactory to the 1420
1679	1679	commissioner, concerning the purchaser's state of residence under 50 1421
1680	1680	App USC 574; 1422
1681	1681	(D) (i) With respect to the acceptance or receipt in this state of labor 1423
1682	1682	that is otherwise taxable under subparagraph (C) or (G) of subdivision 1424
1683	1683	(2) of subsection (a) of section 12-407, as amended by this act, on existing 1425
1684	1684	vessels and repair or maintenance services on vessels occurring on and 1426
1685	1685	after July 1, 1999, such services shall be exempt from such tax; 1427
1686	1686	(ii) (I) With respect to the storage, acceptance or other use of a vessel 1428
1687	1687	in this state, at the rate of two and ninety-nine-hundredths per cent, 1429
1688	1688	except that such storage, acceptance or other use shall be exempt from 1430
1689	1689	such tax if such vessel is docked in this state for sixty or fewer days in a 1431
1690	1690	calendar year; 1432
1691	1691	(II) With respect to the storage, acceptance or other use of a motor for 1433
1692	1692	a vessel or a trailer used for transporting a vessel in this state, at the rate 1434
1693	1693	of two and ninety-nine-hundredths per cent; 1435
1694	1694	(III) With respect to the storage, acceptance or other use of dyed diesel 1436
1695	1695	fuel, as defined in subsection (d) of section 12-487, exclusively for 1437
1696	1696	marine purposes, at the rate of two and ninety-nine-hundredths per 1438 Raised Bill No. 1025
1697	1697
1698	1698
1699	1699
1700	1700	LCO No. 4725 47 of 54
1701	1701
1702	1702	cent; 1439
1703	1703	(E) (i) With respect to the acceptance or receipt in this state of 1440
1704	1704	computer and data processing services purchased from any retailer for 1441
1705	1705	consumption or use in this state occurring on or after July 1, 2001, at the 1442
1706	1706	rate of one per cent of such services, and (ii) with respect to the 1443
1707	1707	acceptance or receipt in this state of Internet access services, on and after 1444
1708	1708	July 1, 2001, such services shall be exempt from such tax; 1445
1709	1709	(F) With respect to the acceptance or receipt in this state of patient 1446
1710	1710	care services purchased from any retailer for consumption or use in this 1447
1711	1711	state for which payment is received by the hospital on or after July 1, 1448
1712	1712	1999, and prior to July 1, 2001, at the rate of five and three-fourths per 1449
1713	1713	cent and on and after July 1, 2001, such services shall be exempt from 1450
1714	1714	such tax; 1451
1715	1715	(G) With respect to the rental or leasing of a passenger motor vehicle 1452
1716	1716	for a period of thirty consecutive calendar days or less, at a rate of nine 1453
1717	1717	and thirty-five-hundredths per cent; 1454
1718	1718	(H) With respect to the acceptance or receipt in this state of (i) a motor 1455
1719	1719	vehicle for a sales price exceeding fifty thousand dollars, at a rate of 1456
1720	1720	seven and three-fourths per cent on the entire sales price, (ii) jewelry, 1457
1721	1721	whether real or imitation, for a sales price exceeding five thousand 1458
1722	1722	dollars, at a rate of seven and three-fourths per cent on the entire sales 1459
1723	1723	price, and (iii) an article of clothing or footwear intended to be worn on 1460
1724	1724	or about the human body, a handbag, luggage, umbrella, wallet or 1461
1725	1725	watch for a sales price exceeding one thousand dollars, at a rate of seven 1462
1726	1726	and three-fourths per cent on the entire sales price. For purposes of this 1463
1727	1727	subparagraph, "motor vehicle" has the meaning provided in section 14-1464
1728	1728	1, but does not include a motor vehicle subject to the provisions of 1465
1729	1729	subparagraph (C) of this subdivision, a motor vehicle having a gross 1466
1730	1730	vehicle weight rating over twelve thousand five hundred pounds, or a 1467
1731	1731	motor vehicle having a gross vehicle weight rating of twelve thousand 1468
1732	1732	five hundred pounds or less that is not used for private passenger 1469
1733	1733	purposes, but is designed or used to transport merchandise, freight or 1470 Raised Bill No. 1025
1734	1734
1735	1735
1736	1736
1737	1737	LCO No. 4725 48 of 54
1738	1738
1739	1739	persons in connection with any business enterprise and issued a 1471
1740	1740	commercial registration or more specific type of registration by the 1472
1741	1741	Department of Motor Vehicles; 1473
1742	1742	(I) With respect to the acceptance or receipt in this state of meals, as 1474
1743	1743	defined in subdivision (13) of section 12-412, sold by an eating 1475
1744	1744	establishment, caterer or grocery store; and spirituous, malt or vinous 1476
1745	1745	liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 1477
1746	1746	at bars and soda fountains, or in connection therewith; in addition to the 1478
1747	1747	tax imposed under subparagraph (A) of this subdivision, at the rate of 1479
1748	1748	one per cent; 1480
1749	1749	(J) (i) For calendar quarters ending on or after September 30, 2019, the 1481
1750	1750	commissioner shall deposit into the regional planning incentive 1482
1751	1751	account, established pursuant to section 4-66k, six and seven-tenths per 1483
1752	1752	cent of the amounts received by the state from the tax imposed under 1484
1753	1753	[subparagraph (B)] subparagraphs (B)(i) and (B)(ii) of this subdivision 1485
1754	1754	and ten and seven-tenths per cent of the amounts received by the state 1486
1755	1755	from the tax imposed under subparagraph (G) of this subdivision; 1487
1756	1756	(ii) For calendar quarters ending on or after September 30, 2018, the 1488
1757	1757	commissioner shall deposit into the Tourism Fund established under 1489
1758	1758	section 10-395b ten per cent of the amounts received by the state from 1490
1759	1759	the tax imposed under [subparagraph (B)] subparagraphs (B)(i) and 1491
1760	1760	(B)(ii) of this subdivision; 1492
1761	1761	(K) For calendar months commencing on or after July 1, 2021, the 1493
1762	1762	commissioner shall deposit into said municipal revenue sharing account 1494
1763	1763	seven and nine-tenths per cent of the amounts received by the state from 1495
1764	1764	the tax imposed under subparagraph (A) of this subdivision; and 1496
1765	1765	(L) (i) For calendar months commencing on or after July 1, 2017, the 1497
1766	1766	commissioner shall deposit into said Special Transportation Fund seven 1498
1767	1767	and nine-tenths per cent of the amounts received by the state from the 1499
1768	1768	tax imposed under subparagraph (A) of this subdivision; 1500
1769	1769	(ii) For calendar months commencing on or after July 1, 2018, but 1501 Raised Bill No. 1025
1770	1770
1771	1771
1772	1772
1773	1773	LCO No. 4725 49 of 54
1774	1774
1775	1775	prior to July 1, 2019, the commissioner shall deposit into the Special 1502
1776	1776	Transportation Fund established under section 13b-68 eight per cent of 1503
1777	1777	the amounts received by the state from the tax imposed under 1504
1778	1778	subparagraphs (A) and (H) of this subdivision on the acceptance or 1505
1779	1779	receipt in this state of a motor vehicle; 1506
1780	1780	(iii) For calendar months commencing on or after July 1, 2019, but 1507
1781	1781	prior to July 1, 2020, the commissioner shall deposit into the Special 1508
1782	1782	Transportation Fund established under section 13b-68 seventeen per 1509
1783	1783	cent of the amounts received by the state from the tax imposed under 1510
1784	1784	subparagraphs (A) and (H) of this subdivision on the acceptance or 1511
1785	1785	receipt in this state of a motor vehicle; 1512
1786	1786	(iv) For calendar months commencing on or after July 1, 2020, but 1513
1787	1787	prior to July 1, 2021, the commissioner shall deposit into the Special 1514
1788	1788	Transportation Fund established under section 13b-68 twenty-five per 1515
1789	1789	cent of the amounts received by the state from the tax imposed under 1516
1790	1790	subparagraphs (A) and (H) of this subdivision on the acceptance or 1517
1791	1791	receipt in this state of a motor vehicle; 1518
1792	1792	(v) For calendar months commencing on or after July 1, 2021, but 1519
1793	1793	prior to July 1, 2022, the commissioner shall deposit into the Special 1520
1794	1794	Transportation Fund established under section 13b-68 seventy-five per 1521
1795	1795	cent of the amounts received by the state from the tax imposed under 1522
1796	1796	subparagraphs (A) and (H) of this subdivision on the acceptance or 1523
1797	1797	receipt in this state of a motor vehicle; [and] 1524
1798	1798	(vi) For calendar months commencing on or after July 1, 2022, the 1525
1799	1799	commissioner shall deposit into the Special Transportation Fund 1526
1800	1800	established under section 13b-68 one hundred per cent of the amounts 1527
1801	1801	received by the state from the tax imposed under subparagraphs (A) 1528
1802	1802	and (H) of this subdivision on the acceptance or receipt in this state of a 1529
1803	1803	motor vehicle; and 1530
1804	1804	(vii) For calendar months commencing on or after July 1, 2021, the 1531
1805	1805	commissioner shall deposit into the Housing Trust Fund established 1532
1806	1806	under section 8-336o fifty per cent of the amounts received by the state 1533 Raised Bill No. 1025
1807	1807
1808	1808
1809	1809
1810	1810	LCO No. 4725 50 of 54
1811	1811
1812	1812	from the tax imposed under subparagraph (B)(iii) of this subdivision. 1534
1813	1813	(2) Every person storing, accepting, consuming or otherwise using in 1535
1814	1814	this state services or tangible personal property purchased from a 1536
1815	1815	retailer for storage, acceptance, consumption or any other use in this 1537
1816	1816	state and every person storing, accepting, consuming or otherwise using 1538
1817	1817	in this state tangible personal property which has been manufactured, 1539
1818	1818	fabricated, assembled or processed from materials purchased from a 1540
1819	1819	retailer by such person, either within or without this state, for storage, 1541
1820	1820	acceptance, consumption or any other use by such person in this state is 1542
1821	1821	liable for the tax. Such person's liability is not extinguished until the tax 1543
1822	1822	has been paid to this state, except that a receipt from a retailer engaged 1544
1823	1823	in business in this state or from a retailer who is authorized by the 1545
1824	1824	commissioner, under such regulations as the commissioner may 1546
1825	1825	prescribe, to collect the tax and who is, for the purposes of this chapter 1547
1826	1826	relating to the use tax, regarded as a retailer engaged in business in this 1548
1827	1827	state, given to the purchaser pursuant to subdivision (3) of this section 1549
1828	1828	is sufficient to relieve the purchaser from further liability for the tax to 1550
1829	1829	which the receipt refers. 1551
1830	1830	(3) Every retailer engaged in business in this state and making sales 1552
1831	1831	of services or of tangible personal property for storage, acceptance, 1553
1832	1832	consumption or any other use in this state, not exempted under this 1554
1833	1833	chapter, shall, at the time of making a sale or, if the storage, acceptance, 1555
1834	1834	consumption or other use is not then taxable hereunder, at the time the 1556
1835	1835	storage, acceptance, consumption or use becomes taxable, collect the use 1557
1836	1836	tax from the purchaser and give to the purchaser a receipt therefor in 1558
1837	1837	the manner and form prescribed by the commissioner. For the purpose 1559
1838	1838	of uniformity of tax collection by the retailer the tax brackets set forth in 1560
1839	1839	subdivision (3) of section 12-408, as amended by this act, pertaining to 1561
1840	1840	the sales tax shall be employed in the computation of the tax imposed 1562
1841	1841	by this section. 1563
1842	1842	(4) The tax required to be collected by the retailer constitutes a debt 1564
1843	1843	owed to the retailer by the person purchasing tangible personal 1565
1844	1844	property or services from such retailer. The amount of tax, when so 1566 Raised Bill No. 1025
1845	1845
1846	1846
1847	1847
1848	1848	LCO No. 4725 51 of 54
1849	1849
1850	1850	collected, shall be deemed to be a special fund in trust for the state of 1567
1851	1851	Connecticut. 1568
1852	1852	(5) The provisions of subdivision (4) of section 12-408, as amended by 1569
1853	1853	this act, pertaining to the sales tax shall apply with equal force to the use 1570
1854	1854	tax. 1571
1855	1855	(6) The tax required to be collected by the retailer from the purchaser 1572
1856	1856	shall be displayed separately from the list price, the price advertised in 1573
1857	1857	the premises, the marked price, or other price on the sales check or other 1574
1858	1858	proof of sales. 1575
1859	1859	(7) Any person violating the provisions of subdivision (3), (5) or (6) 1576
1860	1860	of this section shall be fined five hundred dollars for each offense. 1577
1861	1861	(8) Every retailer selling services or tangible personal property for 1578
1862	1862	storage, acceptance, consumption or any other use in this state shall 1579
1863	1863	register with the commissioner and give the name and address of all 1580
1864	1864	agents operating in this state, the location of all distribution or sales 1581
1865	1865	houses or offices or other places of business in this state and such other 1582
1866	1866	information as the commissioner may require. 1583
1867	1867	(9) For the purpose of the proper administration of this chapter and 1584
1868	1868	to prevent evasion of the use tax and the duty to collect the use tax, it 1585
1869	1869	shall be presumed that services or tangible personal property sold by 1586
1870	1870	any person for delivery in this state is sold for storage, acceptance, 1587
1871	1871	consumption or other use in this state until the contrary is established. 1588
1872	1872	The burden of proving the contrary is upon the person who makes the 1589
1873	1873	sale unless such person takes from the purchaser a certificate to the 1590
1874	1874	effect that the services or property is purchased for resale. 1591
1875	1875	(10) The certificate relieves the person selling the services or property 1592
1876	1876	from the burden of proof only if taken in good faith from a person who 1593
1877	1877	is engaged in the business of selling services or tangible personal 1594
1878	1878	property and who holds the permit provided for by section 12-409 and 1595
1879	1879	who, at the time of purchasing the services or tangible personal 1596
1880	1880	property, intends to sell it in the regular course of business or is unable 1597 Raised Bill No. 1025
1881	1881
1882	1882
1883	1883
1884	1884	LCO No. 4725 52 of 54
1885	1885
1886	1886	to ascertain at the time of purchase whether the service or property will 1598
1887	1887	be sold or will be used for some other purpose. 1599
1888	1888	(11) The certificate shall be signed by and bear the name and address 1600
1889	1889	of the purchaser, shall indicate the number of the permit issued to the 1601
1890	1890	purchaser and shall indicate the general character of the service or 1602
1891	1891	tangible personal property sold by the purchaser in the regular course 1603
1892	1892	of business. The certificate shall be substantially in such form as the 1604
1893	1893	commissioner may prescribe. 1605
1894	1894	(12) (A) If a purchaser who gives a certificate makes any storage or 1606
1895	1895	use of the service or property other than retention, demonstration or 1607
1896	1896	display while holding it for sale in the regular course of business, the 1608
1897	1897	storage or use is taxable as of the time the service or property is first so 1609
1898	1898	stored or used. 1610
1899	1899	(B) Notwithstanding the provisions of subparagraph (A) of this 1611
1900	1900	subdivision, any storage or use by a certificated air carrier of an aircraft 1612
1901	1901	for purposes other than retention, demonstration or display while 1613
1902	1902	holding it for sale in the regular course of business shall not be deemed 1614
1903	1903	a taxable storage or use by such carrier as of the time the aircraft is first 1615
1904	1904	stored or used by such carrier, irrespective of the classification of such 1616
1905	1905	aircraft on the balance sheet of such carrier for accounting and tax 1617
1906	1906	purposes. 1618
1907	1907	(13) It shall be presumed that tangible personal property shipped or 1619
1908	1908	brought to this state by the purchaser was purchased from a retailer for 1620
1909	1909	storage, use or other consumption in this state. 1621
1910	1910	(14) (A) For the purpose of the proper administration of this chapter 1622
1911	1911	and to prevent evasion of the use tax, a purchase of any service 1623
1912	1912	described in subdivision (37) of subsection (a) of section 12-407, as 1624
1913	1913	amended by this act, shall be considered a purchase for resale only if the 1625
1914	1914	service to be resold is an integral, inseparable component part of a 1626
1915	1915	service described in said subdivision that is to be subsequently sold by 1627
1916	1916	the purchaser to an ultimate consumer. The purchaser of the service for 1628
1917	1917	resale shall maintain, in such form as the commissioner requires, records 1629 Raised Bill No. 1025
1918	1918
1919	1919
1920	1920
1921	1921	LCO No. 4725 53 of 54
1922	1922
1923	1923	that substantiate: (i) From whom the service was purchased and to 1630
1924	1924	whom the service was sold; (ii) the purchase price of the service; and 1631
1925	1925	(iii) the nature of the service to demonstrate that the service was an 1632
1926	1926	integral, inseparable component part of a service described in 1633
1927	1927	subdivision (37) of subsection (a) of section 12-407, as amended by this 1634
1928	1928	act, that was subsequently sold to a consumer. 1635
1929	1929	(B) Notwithstanding the provisions of subparagraph (A) of this 1636
1930	1930	subdivision, no purchase of a service described in subdivision (37) of 1637
1931	1931	subsection (a) of section 12-407, as amended by this act, by a purchaser 1638
1932	1932	shall be considered a purchase for resale if such service is to be 1639
1933	1933	subsequently sold by the purchaser to an ultimate consumer that is 1640
1934	1934	affiliated with the purchaser in the manner described in subparagraph 1641
1935	1935	(A) of subdivision (62) of section 12-412. 1642
1936	1936	(15) For the purpose of the proper administration of this chapter and 1643
1937	1937	to prevent evasion of the use tax, no purchase of any service by a 1644
1938	1938	purchaser shall be considered a purchase for resale if such service is to 1645
1939	1939	be subsequently sold by the purchaser, without change, to an ultimate 1646
1940	1940	consumer that is affiliated with the purchaser in the manner described 1647
1941	1941	in subparagraph (A) of subdivision (62) of section 12-412. 1648
1942	1942	This act shall take effect as follows and shall amend the following
1943	1943	sections:
1944	1944
1945	1945	Section 1 July 1, 2021 New section
1946	1946	Sec. 2 July 1, 2021 New section
1947	1947	Sec. 3 July 1, 2021 New section
1948	1948	Sec. 4 July 1, 2021 New section
1949	1949	Sec. 5 July 1, 2021 New section
1950	1950	Sec. 6 July 1, 2021 New section
1951	1951	Sec. 7 July 1, 2021 New section
1952	1952	Sec. 8 July 1, 2021, and
1953	1953	applicable to sales
1954	1954	occurring on or after July
1955	1955	1, 2021
1956	1956	12-407 Raised Bill No. 1025
1957	1957
1958	1958
1959	1959
1960	1960	LCO No. 4725 54 of 54
1961	1961
1962	1962	Sec. 9 July 1, 2021, and
1963	1963	applicable to sales
1964	1964	occurring on or after July
1965	1965	1, 2021
1966	1966	12-408
1967	1967	Sec. 10 July 1, 2021, and
1968	1968	applicable to sales
1969	1969	occurring on or after July
1970	1970	1, 2021
1971	1971	12-411
1972	1972
1973	1973	Statement of Purpose:
1974	1974	To (1) require that (A) short-term rental properties be licensed by the
1975	1975	Commissioner of Consumer Protection, (B) short-term rental operators
1976	1976	notify owners of abutting and adjacent properties regarding use of a
1977	1977	dwelling unit as a short-term rental property, and (C) short-term rental
1978	1978	operators maintain minimum insurance coverage and the Insurance
1979	1979	Commissioner adopt regulations concerning such coverage, (2) permit
1980	1980	municipalities to tax short-term rental operators, and (3) subject short-
1981	1981	term rental transactions to the sales and use tax.
1982	1982	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
1983	1983	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
1984	1984	underlined.]
1985	1985