Connecticut House Bill HB05472 Introduced / Bill

                        
 
 
 
LCO No. 2517  	1 of 43 
 
General Assembly  Raised Bill No. 5472  
February Session, 2022 
LCO No. 2517 
 
 
Referred to Committee on FINANCE, REVENUE AND 
BONDING  
 
 
Introduced by:  
(FIN)  
 
 
 
 
AN ACT CONCERNING THE DEPARTMENT OF REVENUE SERVICES' 
RECOMMENDATIONS FOR TAX ADMINISTRATION AND REVISIONS 
TO THE TAX AND RELATED STATUTES. 
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. Section 12-736 of the general statutes is repealed and the 1 
following is substituted in lieu thereof (Effective from passage): 2 
(a) Any person required to collect, truthfully account for and pay over 3 
the tax imposed under this chapter who wilfully fails to collect such tax 4 
or truthfully account for and pay over such tax or who wilfully attempts 5 
in any manner to evade or defeat the tax or the payment thereof, shall, 6 
in addition to other penalties provided by law, be liable for a penalty 7 
equal to the total amount of the tax evaded, or not collected, or not 8 
accounted for and paid over, including any penalty or interest 9 
attributable to such wilful failure to collect or truthfully account for and 10 
pay over such tax or such wilful attempt to evade or defeat such tax. The 11 
amount of a penalty for which a person may be personally liable under 12 
this section shall be collected in accordance with the provisions of 13 
section 12-734. 14  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	2 of 43 
 
(b) Any person who with fraudulent intent shall fail to pay, to deduct 15 
or to withhold and pay any tax, to make, render, sign or certify any 16 
return or to supply any information within the time required by or 17 
under this chapter shall be subject to a penalty of not more than one 18 
thousand dollars, in addition to any other amounts required under this 19 
chapter to be imposed, assessed and collected by the commissioner. 20 
Sec. 2. Subdivision (1) of subsection (b) of section 12-704 of the general 21 
statutes is repealed and the following is substituted in lieu thereof 22 
(Effective from passage and applicable to taxable years commencing on or after 23 
January 1, 2022): 24 
(b) (1) (A) If, as a direct result of (i) the change to or correction of a 25 
taxpayer's income tax return filed with another state of the United States 26 
or a political subdivision thereof or the District of Columbia by the tax 27 
officers or other competent authority of such jurisdiction, or (ii) a 28 
taxpayer paying an assessment issued against the taxpayer by the tax 29 
officers or other competent authority of such jurisdiction for any taxable 30 
year for which the taxpayer has not filed an income tax return with such 31 
jurisdiction, the amount of tax of such other jurisdiction that the 32 
taxpayer is finally required to pay is different from the amount used to 33 
determine the credit allowed to any taxpayer under this section for any 34 
taxable year, the taxpayer shall provide notice of such difference to the 35 
commissioner by filing, on or before the date that is ninety days after the 36 
final determination of such amount, an amended return under this 37 
chapter, and shall concede the accuracy of such determination or state 38 
wherein it is erroneous. The commissioner may redetermine, and the 39 
taxpayer shall be required to pay, the tax for any taxable year affected, 40 
regardless of any otherwise applicable statute of limitations. 41 
(B) If a taxpayer files an amended return under this subdivision as a 42 
direct result of the taxpayer paying an assessment as set forth in 43 
subparagraph (A)(ii) of this subdivision, the taxpayer shall not be 44 
eligible for a refund if the amended return is filed more than five years 45 
after the original due date of the taxpayer's Connecticut income tax 46 
return, even if such amended return is filed within the time prescribed 47  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	3 of 43 
 
under subdivision (2) of subsection (b) of section 12-732, as amended by 48 
this act.  49 
Sec. 3. Subsection (b) of section 12-732 of the general statutes is 50 
repealed and the following is substituted in lieu thereof (Effective from 51 
passage and applicable to taxable years commencing on or after January 1, 52 
2022): 53 
(b) (1) Notwithstanding the three-year limitation provided by 54 
subsection (a) of this section, if a taxpayer has timely complied with the 55 
requirements of subsection (b) of section 12-727, and, as a direct result 56 
of the change to or correction of the taxpayer's federal income tax return 57 
by the United States Internal Revenue Service or other competent 58 
authority, or as a direct result of a renegotiation of a contract or 59 
subcontract with the United States, the tax that has previously been 60 
reported to be due on a tax return under this chapter has been overpaid, 61 
or as a direct result of an amendment by the taxpayer of the taxpayer's 62 
federal income tax return, the tax that has previously been reported to 63 
be due on a tax return under this chapter has been overpaid, any claim 64 
for refund subsequently filed by such taxpayer will be deemed to be 65 
timely filed. 66 
(2) Notwithstanding the three-year limitation provided by subsection 67 
(a) of this section, if a taxpayer has timely complied with the 68 
requirements of subsection (b) of section 12-704, as amended by this act, 69 
and as a direct result of (A) the change to or correction of taxpayer's 70 
income tax return by the tax officers or other competent authority of 71 
another state of the United States or a political subdivision thereof or the 72 
District of Columbia, the tax that has previously been reported to be due 73 
on a tax return under this chapter has been overpaid, [or as a direct 74 
result of] (B) an amendment by the taxpayer of the taxpayer's income 75 
tax return to another state of the United States or a political subdivision 76 
thereof or the District of Columbia, the tax that has previously been 77 
reported to be due on a tax return under this chapter has been overpaid, 78 
or (C) a taxpayer paying an assessment issued against the taxpayer by 79 
the tax officers or other competent authority of another state of the 80  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	4 of 43 
 
United States or a political subdivision thereof or the District of 81 
Columbia for any taxable year for which the taxpayer has not filed an 82 
income tax return with such jurisdiction, the tax that has previously 83 
been reported to be due on a tax return under this chapter has been 84 
overpaid, any claim for refund subsequently filed by such taxpayer will 85 
be deemed to be timely filed. 86 
Sec. 4. Section 12-39f of the general statutes is repealed and the 87 
following is substituted in lieu thereof (Effective from passage): 88 
(a) For purposes of making payment of any refund as provided in this 89 
title on account of any tax, or penalty or interest thereon, paid to the 90 
state, the Comptroller, upon certification by the Commissioner of 91 
Revenue Services, is authorized to draw on the Treasurer in the amount 92 
of such refund and the Treasurer shall pay the amount thereof from the 93 
fund to which such tax, penalty or interest is credited. 94 
(b) Notwithstanding any provision of law, interest added to a refund 95 
of tax issued by the Commissioner of Revenue Services for a tax period 96 
shall not exceed five million dollars and no court may award interest in 97 
excess of five million dollars in any tax appeal in connection with a claim 98 
for refund of tax for a tax period.  99 
Sec. 5. (NEW) (Effective from passage) (a) (1) Except as provided in 100 
subdivision (2) of this subsection, where the results of any civil audit, 101 
investigation, examination or reexamination conducted by the 102 
Commissioner of Revenue Services have become final by operation of 103 
law or by exhaustion of all available administrative and judicial rights 104 
of appeal, the period covered by such audit, investigation, examination 105 
or reexamination shall be closed and the taxpayer may not file any 106 
additional claims for refund for such period. 107 
(2) A taxpayer may file a claim of refund for any period for which the 108 
results of any civil audit, investigation, examination or reexamination 109 
conducted by the commissioner have become final by operation of law 110 
or for which the associated administrative or judicial rights of appeal 111 
have been exhausted, provided such claim is filed not later than six 112  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	5 of 43 
 
months after the date such results become final by operation of law or 113 
the date such rights of appeal are exhausted, as applicable and 114 
whichever is later. 115 
(b) The provisions of subsection (a) of this section shall not affect 116 
claims for refunds authorized under the provisions of sections 12-226, 117 
12-704, as amended by this act, and 12-727 of the general statutes. 118 
Sec. 6. Section 29-18b of the general statutes is repealed and the 119 
following is substituted in lieu thereof (Effective from passage): 120 
(a) The Commissioner of Emergency Services and Public Protection 121 
may appoint persons nominated by the Commissioner of Revenue 122 
Services to act as special policemen in the Department of Revenue 123 
Services. Such appointees shall serve at the pleasure of the 124 
Commissioner of Emergency Services and Public Protection and, during 125 
such tenure, shall have all the powers conferred on state policemen. 126 
Such special policemen shall, in addition to their duties with said 127 
department, be subject to call by the Commissioner of Emergency 128 
Services and Public Protection for such emergency service as the 129 
Commissioner of Emergency Services and Public Protection may 130 
prescribe. 131 
(b) Special policemen in the Department of Revenue Services may, in 132 
connection with their official duties relating to any criminal tax 133 
investigation, disclose return information, as defined in section 12-15, to 134 
the extent such disclosure is necessary to obtain information that is not 135 
otherwise reasonably available with respect to the enforcement of any 136 
criminal law of this state.  137 
Sec. 7. (NEW) (Effective from passage) (a) Notwithstanding the 138 
provisions of section 12-15 of the general statutes, the Commissioner of 139 
Revenue Services may, subject to terms and conditions the 140 
commissioner may prescribe, disclose returns or return information, as 141 
those terms are defined in said section, to an authorized member of an 142 
organized local police department, upon written request by the chief of 143 
police of such department. Such written request shall: (1) Establish the 144  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	6 of 43 
 
relevance of such return or return information to an authorized 145 
investigation being conducted by such department into a violation of a 146 
criminal law of this state; (2) establish that no other source of such 147 
information is available to such department; and (3) include the name 148 
of each member of such department who will be authorized to receive 149 
such return or return information. If the commissioner deems such 150 
return or return information to be relevant to such investigation, the 151 
commissioner may disclose such return or return information to such 152 
department. 153 
(b) No member of an organized local police department who receives 154 
any return or return information pursuant to this section may disclose 155 
such return or return information except in connection with a criminal 156 
prosecution, including any judicial proceeding related thereto, when 157 
such return or return information is directly involved in and necessary 158 
to such prosecution. Any person who violates this subsection shall be 159 
fined not more than one thousand dollars or imprisoned not more than 160 
one year, or both. 161 
Sec. 8. Subdivision (9) of section 53a-3 of the 2022 supplement to the 162 
general statutes is repealed and the following is substituted in lieu 163 
thereof (Effective from passage): 164 
(9) "Peace officer" means a member of the Division of State Police 165 
within the Department of Emergency Services and Public Protection or 166 
an organized local police department, a chief inspector or inspector in 167 
the Division of Criminal Justice, a state marshal while exercising 168 
authority granted under any provision of the general statutes, a judicial 169 
marshal in the performance of the duties of a judicial marshal, a 170 
conservation officer or special conservation officer, as defined in section 171 
26-5, a constable who performs criminal law enforcement duties, a 172 
special policeman appointed under section 29-18, 29-18a, 29-18b, as 173 
amended by this act, or 29-19, an adult probation officer, an official of 174 
the Department of Correction authorized by the Commissioner of 175 
Correction to make arrests in a correctional institution or facility, any 176 
investigator in the investigations unit of the office of the State Treasurer, 177  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	7 of 43 
 
an inspector of motor vehicles in the Department of Motor Vehicles, 178 
who is certified under the provisions of sections 7-294a to 7-294e, 179 
inclusive, a United States marshal or deputy marshal, any special agent 180 
of the federal government authorized to enforce the provisions of Title 181 
21 of the United States Code, or a member of a law enforcement unit of 182 
the Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of 183 
Connecticut created and governed by a memorandum of agreement 184 
under section 47-65c who is certified as a police officer by the Police 185 
Officer Standards and Training Council pursuant to sections 7-294a to 186 
7-294e, inclusive; 187 
Sec. 9. Subsection (b) of section 53a-19 of the general statutes is 188 
repealed and the following is substituted in lieu thereof (Effective from 189 
passage): 190 
(b) Notwithstanding the provisions of subsection (a) of this section, a 191 
person is not justified in using deadly physical force upon another 192 
person if he or she knows that he or she can avoid the necessity of using 193 
such force with complete safety (1) by retreating, except that the actor 194 
shall not be required to retreat if he or she is in his or her dwelling, as 195 
defined in section 53a-100, or place of work and was not the initial 196 
aggressor, or if he or she is a peace officer [or a special policeman 197 
appointed under section 29-18b,] or a private person assisting such 198 
peace officer [or special policeman] at his or her direction, and acting 199 
pursuant to section 53a-22, as amended by this act, or (2) by 200 
surrendering possession of property to a person asserting a claim of 201 
right thereto, or (3) by complying with a demand that he or she abstain 202 
from performing an act which he or she is not obliged to perform. 203 
Sec. 10. Section 53a-22 of the 2022 supplement to the general statutes 204 
is repealed and the following is substituted in lieu thereof (Effective from 205 
passage): 206 
(a) (1) For purposes of this section, a reasonable belief that a person 207 
has committed an offense means a reasonable belief in facts or 208 
circumstances which if true would in law constitute an offense. If the 209  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	8 of 43 
 
believed facts or circumstances would not in law constitute an offense, 210 
an erroneous though not unreasonable belief that the law is otherwise 211 
does not render justifiable the use of physical force to make an arrest or 212 
to prevent an escape from custody. 213 
(2) A peace officer [, special policeman appointed under section 29-214 
18b] or an authorized official of the Department of Correction or the 215 
Board of Pardons and Paroles who is effecting an arrest pursuant to a 216 
warrant or preventing an escape from custody is justified in using the 217 
physical force prescribed in subsections (b), (c) and (d) of this section 218 
unless such warrant is invalid and is known by such officer to be invalid. 219 
(b) Except as provided in subsection (a) or (d) of this section, a peace 220 
officer [, special policeman appointed under section 29-18b] or an 221 
authorized official of the Department of Correction or the Board of 222 
Pardons and Paroles is justified in using physical force upon another 223 
person when and to the extent that he or she reasonably believes such 224 
use to be necessary to: (1) Effect an arrest or prevent the escape from 225 
custody of a person whom he or she reasonably believes to have 226 
committed an offense, unless he or she knows that the arrest or custody 227 
is unauthorized; or (2) defend himself or herself or a third person from 228 
the use or imminent use of physical force while effecting or attempting 229 
to effect an arrest or while preventing or attempting to prevent an 230 
escape. 231 
(c) (1) Except as provided in subsection (d) of this section, a peace 232 
officer [, special policeman appointed under section 29-18b] or an 233 
authorized official of the Department of Correction or the Board of 234 
Pardons and Paroles is justified in using deadly physical force upon 235 
another person for the purposes specified in subsection (b) of this 236 
section only when his or her actions are objectively reasonable under the 237 
given circumstances at that time, and: 238 
(A) He or she reasonably believes such use to be necessary to defend 239 
himself or herself or a third person from the use or imminent use of 240 
deadly physical force; or  241  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	9 of 43 
 
(B) He or she (i) has reasonably determined that there are no available 242 
reasonable alternatives to the use of deadly physical force, (ii) 243 
reasonably believes that the force employed creates no unreasonable 244 
risk of injury to a third party, and (iii) reasonably believes such use of 245 
force to be necessary to (I) effect an arrest of a person whom he or she 246 
reasonably believes has committed or attempted to commit a felony 247 
which involved the infliction of serious physical injury, and if, where 248 
feasible, he or she has given warning of his or her intent to use deadly 249 
physical force, or (II) prevent the escape from custody of a person whom 250 
he or she reasonably believes has committed a felony which involved 251 
the infliction of serious physical injury and who poses a significant 252 
threat of death or serious physical injury to others, and if, where feasible, 253 
he or she has given warning of his or her intent to use deadly physical 254 
force. 255 
(2) For purposes of evaluating whether actions of a peace officer [, 256 
special policeman appointed under section 29-18b] or an authorized 257 
official of the Department of Correction or the Board of Pardons and 258 
Paroles are reasonable under subdivision (1) of this subsection, factors 259 
to be considered include, but are not limited to, whether (A) the person 260 
upon whom deadly physical force was used possessed or appeared to 261 
possess a deadly weapon, (B) the peace officer [, special policeman 262 
appointed under section 29-18b] or an authorized official of the 263 
Department of Correction or the Board of Pardons and Paroles engaged 264 
in reasonable deescalation measures prior to using deadly physical 265 
force, and (C) any unreasonable conduct of the peace officer [, special 266 
policeman appointed under section 29-18b] or an authorized official of 267 
the Department of Correction or the Board of Pardons and Paroles led 268 
to an increased risk of an occurrence of the situation that precipitated 269 
the use of such force. 270 
(d) A peace officer [, special policeman appointed under section 29-271 
18b] or an authorized official of the Department of Correction or the 272 
Board of Pardons and Paroles is justified in using a chokehold or other 273 
method of restraint applied to the neck area or that otherwise impedes 274 
the ability to breathe or restricts blood circulation to the brain of another 275  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	10 of 43 
 
person for the purposes specified in subsection (b) of this section only 276 
when he or she reasonably believes such use to be necessary to defend 277 
himself or herself from the use or imminent use of deadly physical force. 278 
(e) Except as provided in subsection (f) of this section, a person who 279 
has been directed by a peace officer [, special policeman appointed 280 
under section 29-18b] or an authorized official of the Department of 281 
Correction or the Board of Pardons and Paroles to assist such peace 282 
officer [, special policeman] or official to effect an arrest or to prevent an 283 
escape from custody is justified in using reasonable physical force when 284 
and to the extent that he or she reasonably believes such to be necessary 285 
to carry out such peace officer's [, special policeman's] or official's 286 
direction. 287 
(f) A person who has been directed to assist a peace officer [, special 288 
policeman appointed under section 29-18b] or an authorized official of 289 
the Department of Correction or the Board of Pardons and Paroles 290 
under circumstances specified in subsection (e) of this section may use 291 
deadly physical force to effect an arrest or to prevent an escape from 292 
custody only when: (1) He or she reasonably believes such use to be 293 
necessary to defend himself or herself or a third person from what he or 294 
she reasonably believes to be the use or imminent use of deadly physical 295 
force; or (2) he or she is directed or authorized by such peace officer [, 296 
special policeman] or official to use deadly physical force, unless he or 297 
she knows that the peace officer [, special policeman] or official himself 298 
or herself is not authorized to use deadly physical force under the 299 
circumstances. 300 
(g) A private person acting on his or her own account is justified in 301 
using reasonable physical force upon another person when and to the 302 
extent that he or she reasonably believes such use to be necessary to 303 
effect an arrest or to prevent the escape from custody of an arrested 304 
person whom he or she reasonably believes to have committed an 305 
offense and who in fact has committed such offense; but he or she is not 306 
justified in using deadly physical force in such circumstances, except in 307 
defense of person as prescribed in section 53a-19, as amended by this 308  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	11 of 43 
 
act. 309 
(h) In determining whether use of force by a peace officer who is a 310 
police officer, as defined in subsection (a) of section 29-6d, is justified 311 
pursuant to this section, the trier of fact may draw an unfavorable 312 
inference from a police officer's deliberate failure in violation of section 313 
29-6d to record such use of physical force. 314 
Sec. 11. Section 53a-23 of the general statutes is repealed and the 315 
following is substituted in lieu thereof (Effective from passage): 316 
A person is not justified in using physical force to resist an arrest by 317 
a reasonably identifiable peace officer, [or special policeman appointed 318 
under section 29-18b,] whether such arrest is legal or illegal. 319 
Sec. 12. Section 53a-167a of the general statutes is repealed and the 320 
following is substituted in lieu thereof (Effective from passage): 321 
(a) A person is guilty of interfering with an officer when such person 322 
obstructs, resists, hinders or endangers any peace officer [, special 323 
policeman appointed under section 29-18b] or firefighter in the 324 
performance of such peace officer's [, special policeman's] or firefighter's 325 
duties. 326 
(b) Interfering with an officer is a class A misdemeanor, except that, 327 
if such violation causes the death or serious physical injury of another 328 
person, such person shall be guilty of a class D felony. 329 
Sec. 13. Section 53a-167b of the general statutes is repealed and the 330 
following is substituted in lieu thereof (Effective from passage): 331 
(a) A person is guilty of failure to assist a peace officer [, special 332 
policeman] or firefighter when, commanded by a peace officer [, special 333 
policeman appointed under section 29-18b] or firefighter authorized to 334 
command assistance, such person refuses to assist such peace officer [, 335 
special policeman] or firefighter in the execution of such peace officer's 336 
[, special policeman's] or firefighter's duties. 337  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	12 of 43 
 
(b) Failure to assist a peace officer [, special policeman] or firefighter 338 
is a class A misdemeanor. 339 
Sec. 14. Subsection (a) of section 53a-167c of the general statutes is 340 
repealed and the following is substituted in lieu thereof (Effective from 341 
passage): 342 
(a) A person is guilty of assault of public safety, emergency medical, 343 
public transit or health care personnel when, with intent to prevent a 344 
reasonably identifiable peace officer, [special policeman appointed 345 
under section 29-18b,] firefighter or employee of an emergency medical 346 
service organization, as defined in section 53a-3, as amended by this act, 347 
emergency room physician or nurse, health care employee as defined in 348 
section 19a-490q, employee of the Department of Correction, member or 349 
employee of the Board of Pardons and Paroles, probation officer, 350 
employee of the Judicial Branch assigned to provide pretrial secure 351 
detention and programming services to juveniles accused of the 352 
commission of a delinquent act, liquor control agent, state or municipal 353 
animal control officer, security officer, employee of the Department of 354 
Children and Families assigned to provide direct services to children 355 
and youths in the care or custody of the department, employee of a 356 
municipal police department assigned to provide security at the police 357 
department's lockup and holding facility, active individual member of 358 
a volunteer canine search and rescue team, as defined in section 5-249, 359 
or public transit employee from performing his or her duties, and while 360 
such peace officer, [special policeman,] firefighter, employee, physician, 361 
nurse, health care employee, member, liquor control agent, animal 362 
control officer, security officer, probation officer or active individual 363 
member is acting in the performance of his or her duties, (1) such person 364 
causes physical injury to such peace officer, [special policeman,] 365 
firefighter, employee, physician, nurse, member, liquor control agent, 366 
animal control officer, security officer, probation officer or active 367 
individual member, or (2) such person throws or hurls, or causes to be 368 
thrown or hurled, any rock, bottle, can or other article, object or missile 369 
of any kind capable of causing physical harm, damage or injury, at such 370 
peace officer, [special policeman,] firefighter, employee, physician, 371  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	13 of 43 
 
nurse, member, liquor control agent, animal control officer, security 372 
officer, probation officer or active individual member, or (3) such person 373 
uses or causes to be used any mace, tear gas or any like or similar 374 
deleterious agent against such peace officer, [special policeman,] 375 
firefighter, employee, physician, nurse, member, liquor control agent, 376 
animal control officer, security officer, probation officer or active 377 
individual member, or (4) such person throws or hurls, or causes to be 378 
thrown or hurled, any paint, dye or other like or similar staining, 379 
discoloring or coloring agent or any type of offensive or noxious liquid, 380 
agent or substance at such peace officer, [special policeman,] firefighter, 381 
employee, physician, nurse, member, liquor control agent, animal 382 
control officer, security officer, probation officer or active individual 383 
member, or (5) such person throws or hurls, or causes to be thrown or 384 
hurled, any bodily fluid including, but not limited to, urine, feces, blood 385 
or saliva at such peace officer, [special policeman,] firefighter, employee, 386 
physician, nurse, member, liquor control agent, animal control officer, 387 
security officer, probation officer or active individual member. For the 388 
purposes of this section, "public transit employee" means a person 389 
employed by the state, a political subdivision of the state, a transit 390 
district formed under chapter 103a or a person with whom the 391 
Commissioner of Transportation has contracted in accordance with 392 
section 13b-34 to provide transportation services who operates a vehicle 393 
or vessel providing public ferry service or fixed route bus service or 394 
performs duties directly related to the operation of such vehicle or 395 
vessel, or who, as part of the provision of public rail service, is a train 396 
operator, conductor, inspector, signal person or station agent and 397 
"security officer" has the same meaning as provided in section 29-152u.  398 
Sec. 15. Subsection (a) of section 12-699 of the general statutes is 399 
repealed and the following is substituted in lieu thereof (Effective from 400 
passage): 401 
(a) As used in this [section and section 12-699a] chapter and section 402 
16 of this act: 403 
(1) "Partnership" has the same meaning as provided in Section 404  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	14 of 43 
 
7701(a)(2) of the Internal Revenue Code, as defined in section 12-213, 405 
and regulations adopted thereunder. "Partnership" includes a limited 406 
liability company that is treated as a partnership for federal income tax 407 
purposes; 408 
(2) "S corporation" means a corporation or a limited liability company 409 
that is treated as an S corporation for federal income tax purposes; 410 
(3) "Affected business entity" means a partnership or an S 411 
corporation, but does not include a publicly-traded partnership, as 412 
defined in Section 7704(b) of the Internal Revenue Code, that has agreed 413 
to file an annual return pursuant to section 12-726 reporting the name, 414 
address, Social Security number or federal employer identification 415 
number and such other information required by the Commissioner of 416 
Revenue Services of each unitholder whose distributive share of 417 
partnership income derived from or connected with sources within this 418 
state was more than five hundred dollars; 419 
(4) "Member" means (A) a shareholder of an S corporation, (B) a 420 
partner in (i) a general partnership, (ii) a limited partnership, or (iii) a 421 
limited liability partnership, or (C) a member of a limited liability 422 
company that is treated as a partnership or an S corporation for federal 423 
income tax purposes; and 424 
(5) "Taxable year" means the taxable year of an affected business 425 
entity for federal income tax purposes. 426 
Sec. 16. (NEW) (Effective from passage) (a) Any affected business entity 427 
may elect to file a composite income tax return on behalf of each 428 
nonresident individual who is a member of such affected business 429 
entity, subject to any requirements and conditions the Commissioner of 430 
Revenue Services may prescribe in the return form and instructions for 431 
such return. The affected business entity shall make such election by the 432 
due date or extended due date of such affected business entity's return 433 
under chapter 228z of the general statutes. 434 
(b) If an affected business entity elects to file a composite income tax 435  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	15 of 43 
 
return pursuant to subsection (a) of this section, the affected business 436 
entity shall pay to the commissioner the tax calculated under subsection 437 
(c) of this section, plus penalties and interest due thereon, on behalf of 438 
each nonresident individual member of such affected business entity. 439 
Any such payment made by an affected business entity to the 440 
commissioner with respect to any taxable period shall be considered to 441 
be a payment by such nonresident individual member for the tax 442 
imposed on such member under chapter 229 of the general statutes for 443 
such taxable period. 444 
(c) The composite income tax due on behalf of each nonresident 445 
individual member shall equal (1) such member's distributive share of 446 
the affected business entity's items derived from or connected with 447 
sources within this state as calculated under subdivision (1) of 448 
subsection (c) of section 12-699 of the general statutes multiplied by the 449 
highest marginal rate in effect under section 12-700 of the general 450 
statutes for the taxable year, less (2) the credit allowed to such 451 
nonresident individual member pursuant to subdivision (1) of 452 
subsection (g) of section 12-699 of the general statutes with respect to 453 
the affected business entity. In no event shall an amount due on behalf 454 
of a nonresident individual member be less than zero. Such composite 455 
income tax shall be due at the same time, and subject to penalties and 456 
interest, as if such tax was a tax due from the affected business entity 457 
under section 12-699 of the general statutes, as amended by this act. 458 
(d) (1) If income from one or more affected business entities that each 459 
elect to file a composite income tax return pursuant to this section is the 460 
only source of income derived from or connected with sources within 461 
this state for a nonresident individual member, or for the member and 462 
the member's spouse if a joint federal income tax return is or shall be 463 
filed, the filing by the affected business entity of the composite income 464 
tax return and the payment by the affected business entity on behalf of 465 
the member of the tax imposed under this section shall satisfy the filing 466 
and payment requirements otherwise separately imposed on the 467 
member under chapter 229 of the general statutes. The commissioner 468 
may make any deficiency assessment against the affected business 469  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	16 of 43 
 
entity or the member, provided any such assessment against the 470 
member shall be limited to the member's share thereof. Except as 471 
provided in section 12-733 of the general statutes, any such assessment 472 
shall be made not later than three years after the affected business 473 
entity's annual return pursuant to section 12-699 of the general statutes, 474 
as amended by this act, is filed. 475 
(2) If income from one or more affected business entities that each 476 
elect to file a composite income tax return pursuant to this section is not 477 
the only source of income derived from or connected with sources 478 
within this state for a nonresident individual member, or for the 479 
member and the member's spouse if a joint federal income tax return is 480 
or shall be filed, nothing in this section shall be construed as excusing 481 
the member from the obligation to file such member's own separate tax 482 
return under chapter 229 of the general statutes. In such event, the 483 
member shall receive credit for the composite income tax paid under 484 
this section by the affected business entity on the member's behalf. The 485 
commissioner may make any deficiency assessment that is related to the 486 
member's distributive share of income from the affected business entity 487 
against the affected business entity or the member. Except as provided 488 
in section 12-733 of the general statutes, any such assessment against the 489 
affected business entity shall be made not later than three years after the 490 
affected business entity's annual return pursuant to section 12-699 of the 491 
general statutes, as amended by this act, is filed. 492 
Sec. 17. Subsection (c) of section 12-391 of the general statutes is 493 
amended by adding subdivision (4) as follows (Effective October 1, 2022): 494 
(NEW) (4) "Federal basic exclusion amount" means the dollar amount 495 
published annually by the Internal Revenue Service at which a decedent 496 
would be required to file a federal estate tax return based on the value 497 
of the decedent's gross estate and federally taxable gifts. 498 
Sec. 18. Subparagraph (J) of subdivision (3) of subsection (b) of section 499 
12-392 of the general statutes is repealed and the following is substituted 500 
in lieu thereof (Effective October 1, 2022): 501  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	17 of 43 
 
(J) A tax return shall be filed, in the case of every decedent who dies 502 
on or after January 1, 2023, and at the time of death was (i) a resident of 503 
this state, or (ii) a nonresident of this state whose gross estate includes 504 
any real property situated in this state or tangible personal property 505 
having an actual situs in this state. If the decedent's Connecticut taxable 506 
estate is over [five million four hundred ninety thousand dollars] the 507 
federal basic exclusion amount, such tax return shall be filed with the 508 
Commissioner of Revenue Services and a copy of such return shall be 509 
filed with the court of probate for the district within which the decedent 510 
resided at the date of his or her death or, if the decedent died a 511 
nonresident of this state, the court of probate for the district within 512 
which such real property or tangible personal property is situated. If the 513 
decedent's Connecticut taxable estate is equal to or less than [five million 514 
four hundred ninety thousand dollars] the federal basic exclusion 515 
amount, such return shall be filed with the court of probate for the 516 
district within which the decedent resided at the date of his or her death 517 
or, if the decedent died a nonresident of this state, the court of probate 518 
for the district within which such real property or tangible personal 519 
property is situated, and no such return shall be filed with the 520 
Commissioner of Revenue Services. The judge of probate for the district 521 
in which such return is filed shall review each such return and shall 522 
issue a written opinion to the estate representative in each case in which 523 
the judge determines that the estate is not subject to tax under this 524 
chapter. 525 
Sec. 19. Section 12-643 of the general statutes is amended by adding 526 
subdivision (4) as follows (Effective October 1, 2022): 527 
(NEW) (4) "Federal basic exclusion amount" means the dollar amount 528 
published annually by the Internal Revenue Service over which a donor 529 
would owe federal gift tax based on the value of the donor's federally 530 
taxable gifts. 531 
Sec. 20. Subdivision (1) of subsection (d) of section 12-704c of the 2022 532 
supplement to the general statutes is repealed and the following is 533 
substituted in lieu thereof (Effective from passage): 534  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	18 of 43 
 
(d) (1) Notwithstanding the provisions of subsections (b) and (c) of 535 
this section, for taxable years commencing on or after January 1, [2021] 536 
2023, for any taxpayer who paid the conveyance tax on real property at 537 
the rate prescribed by subparagraph (C)(ii) of subdivision (2) of 538 
subsection (b) of section 12-494, the credit allowed under this section 539 
shall not exceed thirty-three and one-third per cent of the amount of the 540 
conveyance tax paid [at such rate] in excess of one and one-quarter per 541 
cent on that portion of the consideration taxed under section 12-494 that 542 
is in excess of eight hundred thousand dollars, in each of the three 543 
taxable years [next succeeding the second] beginning with the third 544 
taxable year after the taxable year in which such conveyance tax was 545 
paid. For any taxable year such taxpayer claims the credit or portion 546 
thereof under this subsection, such credit shall be in lieu of any credit 547 
such taxpayer may be eligible to claim under subsection (b) or (c) of this 548 
section. 549 
Sec. 21. Section 12-415 of the general statutes is repealed and the 550 
following is substituted in lieu thereof (Effective from passage): 551 
(a) If the commissioner is not satisfied with the return or returns of 552 
the tax or the amount of tax required to be paid to the state by any 553 
person, the commissioner may compute and assess or reassess the 554 
amount required to be paid upon the basis of the facts contained in the 555 
return or returns or upon the basis of any information which is in or that 556 
may come into the commissioner's possession. [Except in the case of 557 
fraud or intent to evade or in the case of new information that may come 558 
into the commissioner's possession, the commissioner may not make 559 
more than one assessment for a tax period for which a return has been 560 
filed.] 561 
(b) The amount of the assessment or reassessment, exclusive of 562 
penalties, shall bear interest at the rate of one per cent per month or 563 
fraction thereof from the last day of the month succeeding the period for 564 
which the amount or any portion thereof should have been returned 565 
until the date of payment. 566  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	19 of 43 
 
(c) When it appears that any part of the deficiency for which a 567 
deficiency assessment or reassessment is made is due to negligence or 568 
intentional disregard of the provisions of this chapter or regulations 569 
promulgated thereunder, there shall be imposed a penalty equal to 570 
fifteen per cent of the amount of such deficiency assessment or 571 
reassessment, or fifty dollars, whichever is greater. 572 
(d) When it appears that any part of the deficiency for which a 573 
deficiency assessment or reassessment is made is due to fraud or intent 574 
to evade the provisions of this chapter or regulations promulgated 575 
thereunder, there shall be imposed a penalty equal to twenty-five per 576 
cent of the amount of such deficiency assessment or reassessment. No 577 
taxpayer shall be subject to a penalty under both subsection (c) of this 578 
section and this subsection in relation to the same tax period. 579 
(e) The commissioner shall give to the retailer or person storing, 580 
accepting, consuming or otherwise using services or tangible personal 581 
property written notice of the commissioner's assessment or 582 
reassessment. The notice may be served personally or by mail. If by 583 
mail, it shall be addressed to the retailer or person storing, accepting, 584 
consuming or otherwise using services or tangible personal property at 585 
the address as it appears in the records of the commissioner's office.  586 
(f) Except in the case of fraud, intent to evade this chapter or 587 
authorized regulations, failure to make a return, or claim for additional 588 
amount pursuant to [subdivision (3)] subsection (c) of section 12-418, as 589 
amended by this act, every notice of a deficiency assessment or 590 
reassessment shall be mailed within three years after the last day of the 591 
month following the period for which the amount is proposed to be 592 
assessed or reassessed or within three years after the return is filed, 593 
whichever period expires later. The limitation specified in this 594 
subsection does not apply in case of a sales tax proposed to be assessed 595 
or reassessed with respect to sales of services or property for the storage, 596 
acceptance, consumption or other use of which notice of a deficiency 597 
assessment or reassessment has been or is given pursuant to this 598 
subsection, subsection (e) of this section, subsection (c) of section 12-416, 599  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	20 of 43 
 
as amended by this act, [subdivision (1)] and subsection (a) of section 600 
12-417, [and this subsection] as amended by this act. The limitation 601 
specified in this subsection does not apply in case of an amount of use 602 
tax proposed to be assessed or reassessed with respect to storage, 603 
acceptance, consumption or other use of services or property for the sale 604 
of which notice of a deficiency assessment or reassessment has been or 605 
is given pursuant to this subsection and said subsections. [and this 606 
subsection.] 607 
(g) If, before the expiration of the time prescribed in subsection (f) of 608 
this section for the mailing of a notice of deficiency [determination] 609 
assessment or reassessment, the taxpayer has consented in writing to 610 
the mailing of the notice after such time, the notice may be mailed at any 611 
time prior to the expiration of the period agreed upon. The period so 612 
agreed upon may be extended by subsequent agreements in writing 613 
made before the expiration of the period previously agreed upon. 614 
Sec. 22. Section 12-416 of the general statutes is repealed and the 615 
following is substituted in lieu thereof (Effective from passage): 616 
If any person fails to make a return, the commissioner shall make an 617 
estimate of the amount of the gross receipts of the person or, as the case 618 
may be, of the amount of the total sales price of services or tangible 619 
personal property sold or purchased by the person, the storage, 620 
acceptance, consumption or other use of which in this state is subject to 621 
the use tax. The estimate shall be made for the period or periods in 622 
respect to which the person failed to make a return and shall be based 623 
upon any information which is in or may come into the commissioner's 624 
possession. To the tax imposed upon the basis of such estimate, there 625 
shall be added an amount equal to fifteen per cent of such tax, or fifty 626 
dollars, whichever is greater. No person shall be subject to a penalty 627 
under both this section and section 12-419, as amended by this act. 628 
[Except in the case of new information that may come into the 629 
commissioner's possession, the] The commissioner may [not] make 630 
more than one assessment for a tax period for which a tax return has not 631 
been filed. 632  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	21 of 43 
 
(b) The amount of the assessment shall bear interest at the rate of one 633 
per cent per month or fraction thereof from the last day of the month 634 
succeeding the period for which the amount or any portion thereof 635 
should have been returned until the date of payment. 636 
(c) Promptly after making the assessment, the commissioner shall 637 
give to the person written notice of the estimate, assessment and 638 
penalty, the notice to be served personally or by mail in the manner 639 
prescribed for service of notice of a deficiency assessment.  640 
(d) Nothing in this section shall preclude the commissioner from 641 
issuing a deficiency assessment or reassessment pursuant to the 642 
provisions of section 12-415, as amended by this act, for any period for 643 
which the commissioner issues a written notice of estimate, assessment 644 
and penalty under this section.  645 
Sec. 23. Section 12-417 of the general statutes is repealed and the 646 
following is substituted in lieu thereof (Effective from passage): 647 
[(1)] (a) If the commissioner believes that the collection of any tax or 648 
any amount of tax required to be collected and paid to the state or of any 649 
assessment will be jeopardized by delay, the commissioner shall make 650 
an assessment or reassessment of the tax or amount of tax required to 651 
be collected, noting that fact upon the assessment or reassessment and 652 
serving written notice thereof, personally or by mail, in the manner 653 
prescribed for service of notice of a deficiency assessment or 654 
reassessment, on the person against whom the jeopardy assessment or 655 
reassessment is made. Ten days after the date on which such notice is 656 
served on such person, such notice shall constitute a final assessment or 657 
reassessment except only for such amounts as to which such person has 658 
filed a written [petition for reassessment] protest with the 659 
commissioner, as provided in [subdivision (3)] subsection (c) of this 660 
section. 661 
[(2)] (b) The amount assessed or reassessed is due and payable no 662 
later than the tenth day after service of the notice of assessment or 663 
reassessment, unless on or before such tenth day the person against 664  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	22 of 43 
 
whom such assessment or reassessment is made has obtained a stay of 665 
collection, as provided in [subdivision (3)] subsection (c) of this section. 666 
To the extent that collection has not been stayed, the commissioner may 667 
enforce collection of such tax by using the method provided in section 668 
12-35, as amended by this act, or by using any other method provided 669 
for in the general statutes relating to the enforced collection of taxes, 670 
provided, if the amount of such tax has been definitely fixed, the amount 671 
so fixed shall be assessed and collected, and if the amount of such tax 672 
has not been definitely fixed, the commissioner shall assess and collect 673 
such amount as, in the commissioner's opinion, from the facts available 674 
to the commissioner, is sufficient. If the amount specified in the notice 675 
of jeopardy assessment or reassessment is not paid on or before the tenth 676 
day after service of notice thereof upon the person against whom the 677 
jeopardy assessment or reassessment is made, the delinquency penalty 678 
and the interest provided in section 12-419, as amended by this act, shall 679 
attach to the amount of the tax or the amount of the tax required to be 680 
collected. 681 
[(3)] (c) The person against whom a jeopardy assessment or 682 
reassessment is made may file a [petition for the reassessment] written 683 
protest thereof, pursuant to section 12-418, as amended by this act, with 684 
the commissioner on or before the tenth day after the service upon such 685 
person of notice of the jeopardy assessment or reassessment. Such 686 
person may obtain a stay of collection of the whole or any part of the 687 
amount of such jeopardy assessment or reassessment by filing with the 688 
commissioner, on or before such tenth day, a bond of a surety company 689 
authorized to do business in this state or other security acceptable to the 690 
commissioner in such an amount not exceeding double the amount as 691 
to which the stay is desired, as the commissioner deems necessary to 692 
ensure compliance with this chapter, conditioned upon payment of as 693 
much of the amount, the collection of which is stayed by the bond, as is 694 
found to be due from such person. The security may be sold by the 695 
commissioner in the manner prescribed by section 12-430, as amended 696 
by this act. At any time thereafter in respect to the whole or any part of 697 
the amount covered by the bond, such person may waive the stay, and 698  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	23 of 43 
 
if as the result of such waiver, any part of the amount covered by the 699 
bond is paid, the bond shall, at the request of such person, be 700 
proportionately reduced. 701 
Sec. 24. Section 12-418 of the general statutes is repealed and the 702 
following is substituted in lieu thereof (Effective from passage): 703 
[(1)(A)] (a) (1) Any person against whom an assessment or a 704 
reassessment is made under section 12-414a, 12-415, as amended by this 705 
act, 12-416, as amended by this act, or 12-424 or any person directly 706 
interested may [petition for a reassessment] file a written protest not 707 
later than sixty days after service upon such person of notice thereof. If 708 
a petition for reassessment is not filed within the sixty-day period, the 709 
assessment or reassessment becomes final at the expiration of the 710 
period. 711 
[(B)] (2) Any person against whom an assessment or reassessment is 712 
made under section 12-417, as amended by this act, or any person 713 
directly interested may [petition for a reassessment] file a written 714 
protest not later than ten days after service of notice upon such person. 715 
If a [petition for reassessment] written protest is not filed within such 716 
ten-day period, the assessment or reassessment becomes final at the 717 
expiration of the period. 718 
[(2)] (b) If a [petition for reassessment] written protest is filed within 719 
the sixty-day period, in the case of an assessment or reassessment made 720 
under section 12-414a, 12-415, as amended by this act, 12-416, as 721 
amended by this act, or 12-424, or within the ten-day period, in the case 722 
of an assessment or reassessment made under section 12-417, as 723 
amended by this act, the commissioner shall reconsider the assessment 724 
or reassessment and, if the person has so requested in the petition, shall, 725 
in the commissioner's discretion, grant the person an oral hearing and 726 
shall give such person ten days' notice of the time and place of the 727 
hearing. The commissioner may continue the hearing from time to time, 728 
as may be necessary, and may assign the conduct of such hearing to a 729 
representative of the commissioner. 730  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	24 of 43 
 
[(3)] (c) The commissioner may decrease or increase the amount of 731 
the assessment or reassessment before it becomes final, but the amount 732 
may be increased only if a claim for the increase is asserted by the 733 
commissioner at or before the hearing. 734 
[(4)] (d) The order or decision of the commissioner upon a [petition 735 
for reassessment] protest becomes final one month after service upon 736 
the [petitioner] person filing the protest of notice thereof unless within 737 
such period [the petitioner] such person seeks judicial review of the 738 
commissioner's order or decision pursuant to section 12-422. 739 
[(5)] (e) All assessments or reassessments made by the commissioner 740 
under section 12-414a, 12-415, as amended by this act, 12-416, as 741 
amended by this act, or 12-424 are due and payable at the time they 742 
become final. 743 
[(6)] (f) Any notice required by this section shall be served personally 744 
or by mail in the manner prescribed for service of notice of a deficiency 745 
assessment. 746 
Sec. 25. Section 12-419 of the general statutes is repealed and the 747 
following is substituted in lieu thereof (Effective from passage): 748 
(a) Any person, other than an individual making purchases for 749 
personal use or consumption and not making purchases for use or 750 
consumption in carrying on a trade, occupation, business or profession, 751 
who fails to pay any tax to the state or any amount of tax required to be 752 
collected and paid to the state, except amounts of assessments or 753 
reassessments made by the commissioner under sections 12-415 and 12-754 
416, as amended by this act, within the time required shall pay, in 755 
addition to such tax or such amount of tax required to be collected and 756 
paid, a penalty of fifteen per cent of the tax or fifty dollars, whichever 757 
amount is greater, plus interest on such tax or such amount of tax 758 
required to be collected and paid at the rate of one per cent per month 759 
or fraction thereof from the due date to the date of payment. 760 
(b) Any individual making purchases for personal use or 761  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	25 of 43 
 
consumption and not making purchases for use or consumption in 762 
carrying on a trade, occupation, business or profession who fails to pay 763 
use tax to the state, except amounts of assessments or reassessments 764 
made by the commissioner under sections 12-415 and 12-416, as 765 
amended by this act, within the time required shall pay, in addition to 766 
such tax, a penalty of ten per cent of the tax, plus interest on such tax at 767 
the rate of one per cent per month or fraction thereof from the due date 768 
of such tax to the date of payment. 769 
(c) Subject to the provisions of section 12-3a, the commissioner may 770 
waive all or any part of the penalties provided under this chapter when 771 
it is proven to the satisfaction of the commissioner that failure to pay 772 
any tax was due to reasonable cause and was not intentional or due to 773 
neglect. 774 
Sec. 26. Subdivision (6) of subsection (a) of section 12-408c of the 775 
general statutes is repealed and the following is substituted in lieu 776 
thereof (Effective from passage): 777 
(6) The commissioner may, at any time within three years after the 778 
date of receipt of such claim for refund, examine such claim and 779 
supporting documentation and, if any error is disclosed by such 780 
examination, mail a notice of assessment or reassessment in the manner 781 
provided in section 12-415, as amended by this act, as if a return had 782 
been filed with which the commissioner was not satisfied. In such event, 783 
the claimant may [petition for reassessment] file a written protest in the 784 
time and manner provided in section 12-418, as amended by this act. 785 
The order or decision of the commissioner upon the petition for 786 
reassessment shall be subject to judicial review in the time and manner 787 
provided in section 12-422. 788 
Sec. 27. Subsections (c) and (d) of section 12-420b of the general 789 
statutes are repealed and the following is substituted in lieu thereof 790 
(Effective from passage): 791 
(c) The commissioner may, in the commissioner’s sole discretion, 792 
terminate a managed compliance agreement and conduct an audit of an 793  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	26 of 43 
 
eligible taxpayer under [subdivision (1)] subsection (a) of section 12-415, 794 
as amended by this act, if the eligible taxpayer fails to fulfill any of the 795 
terms of a managed compliance agreement and such failure is materially 796 
adverse to the commissioner and the taxpayer fails to cure such failure 797 
not later than thirty days after the mailing of written notice of such 798 
failure by the commissioner, provided no such notice need be given in 799 
the event such failure is not capable of being cured or the commissioner 800 
believes that the collection of any tax required to be collected and paid 801 
to the state or of any assessment or reassessment will be jeopardized by 802 
delay. Any such termination shall be effective on the first day of the 803 
fourth month following the month in which notice of such termination 804 
is given by the commissioner to the taxpayer, except that such 805 
termination shall take effect immediately if such failure is not capable of 806 
being cured or if the commissioner believes that the collection of any tax 807 
required to be collected and paid to the state or of any assessment or 808 
reassessment will be jeopardized by delay. 809 
(d) Nothing in this section shall abridge or alter any other 810 
requirements, rights or obligations of an eligible taxpayer or the 811 
commissioner granted or imposed by statute or regulation, including, 812 
but not limited to, penalties for negligence or intentional disregard of 813 
the provisions of this chapter, except as provided in subsection (c) of this 814 
section; penalties for failure to file returns or for fraud or intent to evade 815 
the provisions of this chapter; limitation periods and waivers of 816 
limitation periods; the right of an eligible taxpayer to [petition for 817 
reassessment] file a written protest under section 12-418, as amended by 818 
this act; the right of an eligible taxpayer to appeal an assessment under 819 
section 12-422; or the right of an eligible taxpayer to claim a refund 820 
under section 12-425. 821 
Sec. 28. Subsections (b) to (d), inclusive, of section 12-420c of the 822 
general statutes are repealed and the following is substituted in lieu 823 
thereof (Effective from passage): 824 
(b) Such agreement may provide that, upon compliance by the 825 
taxpayer with all the terms of [said] such agreement, in calculating the 826  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	27 of 43 
 
total amount of the audit assessment resulting from such managed audit 827 
the first ten thousand dollars of interest and ten per cent of any 828 
additional interest otherwise due under [subdivision (2)] subsection (b) 829 
of section 12-415, as amended by this act, shall not be imposed. Any 830 
interest accruing after the initial assessment shall be at the rate of 831 
interest specified in [subdivision (2)] subsection (b) of section 12-415, as 832 
amended by this act. 833 
(c) The commissioner may, in the commissioner's sole discretion, 834 
terminate a managed audit agreement and conduct an audit of an 835 
eligible taxpayer under [subdivision (1)] subsection (a) of section 12-415, 836 
as amended by this act, if the eligible taxpayer fails to fulfill any of the 837 
terms of a managed audit agreement, or if the commissioner believes 838 
that a managed audit should not be conducted for any other reason. 839 
(d) Nothing in this section shall abridge or alter any other 840 
requirements, rights or obligations of an eligible taxpayer or the 841 
commissioner granted or imposed by statute or regulation, including, 842 
but not limited to, penalties for negligence or intentional disregard of 843 
the provisions of this chapter, except as provided in subsection (c) of this 844 
section; penalties for failure to file returns or for fraud or intent to evade 845 
the provisions of this chapter; limitation periods and waivers of 846 
limitation periods; the right of an eligible taxpayer to [petition for 847 
reassessment] file a written protest under section 12-418, as amended by 848 
this act; the right of an eligible taxpayer to appeal an assessment under 849 
section 12-422 or the right of an eligible taxpayer to claim a refund under 850 
section 12-425. 851 
Sec. 29. Subdivision (1) of section 12-425 of the general statutes is 852 
repealed and the following is substituted in lieu thereof (Effective from 853 
passage): 854 
No refund shall be allowed unless a claim therefor is filed with the 855 
commissioner within three years from the last day of the month 856 
succeeding the period for which the overpayment was made, or, with 857 
respect to assessments or reassessments made under sections 12-415 and 858  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	28 of 43 
 
12-416, as amended by this act, within six months after the assessments 859 
become final. No credit shall be allowed after the expiration of the 860 
period specified for filing claims for refund unless a claim for credit is 861 
filed with the commissioner within such period, or unless the credit 862 
relates to a period for which a waiver is given pursuant to subsection (g) 863 
of section 12-415, as amended by this act. 864 
Sec. 30. Subparagraphs (C) and (D) of subdivision (7) of section 12-865 
430 of the general statutes are repealed and the following is substituted 866 
in lieu thereof (Effective from passage): 867 
(C) (i) Every prime or general contractor who is an unverified 868 
contractor shall post with the commissioner a good and valid bond with 869 
a surety company authorized to do business in this state in an amount 870 
equal to five per cent of the contract price, to secure the payment of any 871 
sums due under this chapter either from such contractor or from any 872 
subcontractor who enters into a contract with such contractor to 873 
perform any part of the contract entered into by such contractor. The 874 
commissioner shall release such contractor from its obligations under 875 
such bond if it has been established, to the commissioner's satisfaction, 876 
that such contractor has met the requirements of either clause (ii) or (iii) 877 
of this subparagraph. 878 
(ii) If a prime or general contractor who is an unverified contractor 879 
establishes, to the satisfaction of the commissioner by submitting such 880 
documentation, including any forms prescribed by the commissioner, 881 
as the commissioner deems necessary, that such contractor has paid all 882 
of the taxes that it owes in connection with the contract and that its 883 
subcontractors who are unverified contractors have paid all of the taxes 884 
that they owe in connection with the contract, the commissioner shall 885 
release such contractor from its obligations under the bond. 886 
(iii) (I) If a prime or general contractor who is an unverified contractor 887 
establishes, to the satisfaction of the commissioner by submitting such 888 
documentation, including any forms prescribed by the commissioner, 889 
as the commissioner deems necessary, that such contractor has paid all 890  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	29 of 43 
 
of the taxes that it owes in connection with the contract, has held back 891 
an amount equal to five per cent of the payments being made by such 892 
contractor in connection with the contract to its subcontractors who are 893 
unverified contractors, and has complied with the provisions of either 894 
subclause (V) or (VI) of this clause, as the case may be, the commissioner 895 
shall release such contractor from its obligations under the bond. 896 
(II) Every prime or general contractor who is an unverified contractor 897 
and doing business with a subcontractor who is an unverified contractor 898 
shall hold back an amount equal to five per cent of such payments 899 
otherwise required to be made to such subcontractor until such 900 
subcontractor furnishes such contractor with a certificate of compliance, 901 
as described in this clause, authorizing the full or partial release of the 902 
amount held back from such payments to such subcontractor. Such 903 
contractor shall provide written notice of the requirement to hold back 904 
to each subcontractor who is an unverified contractor not later than the 905 
time of commencement of work under the contract by such 906 
subcontractor. 907 
(III) The amount required to be held back from a subcontractor who 908 
is an unverified contractor, when so held back, shall be held to be a 909 
special fund in trust for the state. No such subcontractor shall have any 910 
right of action against a prime or general contractor holding back under 911 
this clause with respect to any amount held back in compliance with or 912 
intended compliance with this clause. 913 
(IV) Any subcontractor who is an unverified contractor shall, upon 914 
the completion of its work under the contract, request the commissioner, 915 
in writing, for the issuance of a certificate of compliance to such 916 
subcontractor. Such subcontractor shall submit, with such request, such 917 
documentation, including any forms prescribed by the commissioner, 918 
as the commissioner deems necessary. The commissioner shall, after 919 
receipt of such request and such required documentation, review the 920 
documentation in the context of generally accepted construction 921 
industry cost guidelines for the scope and type of construction project. 922 
Not later than one hundred twenty days after the receipt by the 923  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	30 of 43 
 
commissioner of the required documentation, the commissioner shall 924 
either issue a certificate of compliance authorizing the full or partial 925 
release of an amount held back from payments being made to such 926 
subcontractor, or shall be deemed to have issued such certificate. 927 
(V) If the commissioner issues a certificate of compliance authorizing 928 
a full release of the amount held back from a subcontractor who is an 929 
unverified contractor, the prime or general contractor holding back such 930 
amount shall pay over such amount to such subcontractor. Such 931 
contractor shall not be liable for any claim of the commissioner for any 932 
taxes of such subcontractor arising from the activities of such 933 
subcontractor on the project. 934 
(VI) If the commissioner issues a certificate of compliance authorizing 935 
a partial release of the amount held back from a subcontractor who is an 936 
unverified contractor, the prime or general contractor holding back such 937 
amount shall pay over the released amount to such subcontractor and 938 
shall pay over the unreleased amount to the commissioner. When such 939 
contractor pays over to the commissioner an amount held back in 940 
accordance with this subclause, such contractor shall not be liable for 941 
any claim of such subcontractor for such amount or for any claim of the 942 
commissioner for any taxes of such subcontractor arising from the 943 
activities of such subcontractor on the project for which the amount was 944 
paid over. If the amount that such contractor is required to pay over to 945 
the commissioner is not paid over on or before the thirtieth day after the 946 
date of mailing of such certificate of compliance, such contractor shall 947 
be liable for a penalty equal to ten per cent of such amount. The amount 948 
that such contractor is required to pay over to the commissioner, and 949 
the penalty thereon, may be collected under the provisions of section 12-950 
35, as amended by this act. 951 
(VII) The commissioner shall treat the issuance to a subcontractor 952 
who is an unverified contractor of a certificate of compliance 953 
authorizing a partial release of an amount held back in the same manner 954 
as the issuance to such subcontractor of a notice of assessment or 955 
reassessment under section 12-415, as amended by this act. 956  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	31 of 43 
 
(VIII) The issuance to a subcontractor who is an unverified contractor 957 
of a certificate of compliance shall not preclude the commissioner, in the 958 
exercise of the commissioner's authority under this chapter, from 959 
examining the tax returns and books and records of such subcontractor 960 
and, if appropriate and other than in connection with the project for 961 
which the certificate of compliance was issued, from making an 962 
assessment or reassessment against such subcontractor. 963 
(D) (i) Every prime or general contractor who is either a resident 964 
contractor or a verified contractor and doing business with a 965 
subcontractor who is an unverified contractor shall hold back an 966 
amount equal to five per cent of such payments otherwise required to 967 
be made to such subcontractor until such subcontractor furnishes such 968 
contractor with a certificate of compliance, as described in this 969 
subparagraph, authorizing the full or partial release of the amount held 970 
back from such payments to such subcontractor. Such contractor shall 971 
provide written notice of the requirement to hold back to each 972 
subcontractor who is an unverified contractor not later than the time of 973 
commencement of work under the contract by such subcontractor. 974 
(ii) The amount required to be held back from a subcontractor who is 975 
an unverified contractor, when so held back, shall be held to be a special 976 
fund in trust for the state. No such subcontractor shall have any right of 977 
action against a prime or general contractor holding back under this 978 
subparagraph with respect to any amount held back in compliance with 979 
or intended compliance with this subparagraph. 980 
(iii) A subcontractor who is an unverified contractor shall, upon the 981 
completion of its work under the contract, request the commissioner, in 982 
writing, for the issuance of a certificate of compliance to such 983 
subcontractor. Such subcontractor shall submit, with such request, such 984 
documentation, including any forms prescribed by the commissioner, 985 
as the commissioner deems necessary. The commissioner shall, after 986 
receipt of such request and such required documentation, review the 987 
documentation in the context of generally accepted construction 988 
industry cost guidelines for the scope and type of construction project. 989  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	32 of 43 
 
Not later than one hundred twenty days after the receipt by the 990 
commissioner of the required documentation, the commissioner shall 991 
either issue a certificate of compliance authorizing the full or partial 992 
release of an amount held back from payments being made to such 993 
subcontractor or shall be deemed to have issued such certificate. 994 
(iv) If the commissioner issues a certificate of compliance authorizing 995 
a full release of the amount held back from a subcontractor who is an 996 
unverified contractor, the prime or general contractor holding back such 997 
amount shall pay over such amount to such subcontractor. Such 998 
contractor shall not be liable for any claim of the commissioner for any 999 
taxes of such subcontractor arising from the activities of such 1000 
subcontractor on the project. 1001 
(v) If the commissioner issues a certificate of compliance authorizing 1002 
a partial release of the amount held back from a subcontractor who is an 1003 
unverified contractor, the prime or general contractor holding back such 1004 
amount shall pay over the released amount to such subcontractor and 1005 
shall pay over the unreleased amount to the commissioner. When such 1006 
contractor pays over to the commissioner an amount held back in 1007 
accordance with this clause, such contractor shall not be liable for any 1008 
claim of such subcontractor for such amount or for any claim of the 1009 
commissioner for any taxes of such subcontractor arising from the 1010 
activities of such subcontractor on the project for which the amount was 1011 
paid over. If the amount that such contractor is required to pay over to 1012 
the commissioner is not paid over on or before the thirtieth day after the 1013 
date of mailing of such certificate of compliance, such contractor shall 1014 
be liable for a penalty equal to ten per cent of such amount. The amount 1015 
that such contractor is required to pay over to the commissioner, and 1016 
the penalty thereon, may be collected under the provisions of section 12-1017 
35, as amended by this act. 1018 
(vi) The commissioner shall treat the issuance to a subcontractor who 1019 
is an unverified contractor of a certificate of compliance authorizing a 1020 
partial release of an amount held back in the same manner as the 1021 
issuance to such subcontractor of a notice of assessment or reassessment 1022  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	33 of 43 
 
under section 12-415, as amended by this act. 1023 
(vii) The issuance to a subcontractor who is an unverified contractor 1024 
of a certificate of compliance shall not preclude the commissioner, in the 1025 
exercise of the commissioner's authority under this chapter, from 1026 
examining the tax returns and books and records of such subcontractor 1027 
and, if appropriate and other than in connection with the project for 1028 
which the certificate of compliance was issued, from making an 1029 
assessment or reassessment against such subcontractor. 1030 
Sec. 31. Section 12-35 of the general statutes is repealed and the 1031 
following is substituted in lieu thereof (Effective from passage): 1032 
(a) (1) Wherever used in this chapter, unless otherwise provided, 1033 
"state collection agency" includes the Treasurer, the Commissioner of 1034 
Revenue Services and any other state official, board or commission 1035 
authorized by law to collect taxes payable to the state and any duly 1036 
appointed deputy of any such official, board or commission; "tax" 1037 
includes not only the principal of any tax but also all interest, penalties, 1038 
fees and other charges added thereto by law; and "serving officer" 1039 
includes any state marshal, constable or employee of such state 1040 
collection agency designated for such purpose by a state collection 1041 
agency and any person so designated by the Labor Commissioner.  1042 
(2) Upon the failure of any person to pay any tax, except any tax 1043 
under chapter 216, due the state within thirty days from its due date, the 1044 
state collection agency charged by law with its collection shall add 1045 
thereto such penalty or interest or both as are prescribed by law, 1046 
provided, (A) if any statutory penalty is not specified, there may be 1047 
added a penalty in the amount of ten per cent of the whole or such part 1048 
of the principal of the tax as is unpaid or fifty dollars, whichever amount 1049 
is greater, and [provided,] (B) if any statutory interest is not specified, 1050 
there shall be added interest at the rate of one per cent of the whole or 1051 
such part of the principal of the tax as is unpaid for each month or 1052 
fraction thereof, from the due date of such tax to the date of payment.  1053 
(3) Upon the failure of any person to pay any tax, except any tax 1054  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	34 of 43 
 
under chapter 216, due within thirty days of its due date, the state 1055 
collection agency charged by law with the collection of such tax may 1056 
make out and sign a warrant directed to any serving officer for distraint 1057 
upon any property of such person found within the state, whether real 1058 
or personal. An itemized bill shall be attached thereto, certified by the 1059 
state collection agency issuing such warrant as a true statement of the 1060 
amount due from such person.  1061 
(A) Such warrant shall have the same force and effect as an execution 1062 
issued pursuant to chapter 906. Such warrant may be levied on any real 1063 
property or tangible or intangible personal property of such person, and 1064 
sale made pursuant to such warrant in the same manner and with the 1065 
same force and effect as a levy of sale pursuant to an execution. In 1066 
addition thereto, if such warrant has been issued by the Commissioner 1067 
of Revenue Services, [his] the commissioner's deputy, the Labor 1068 
Commissioner, the executive director of the Employment Security 1069 
Division or any person in the Employment Security Division in a 1070 
position equivalent to or higher than the position presently held by a 1071 
revenue examiner four, [said] such serving officer shall be authorized to 1072 
place a keeper in any place of business and it shall be such keeper's duty 1073 
to secure the income of such business for the state and, when it is in the 1074 
best interest of the state, to force cessation of such business operation. In 1075 
addition, the Attorney General may collect any such tax by civil action. 1076 
Each serving officer so receiving a warrant shall make a return with 1077 
respect to such warrant to the appropriate collection agency within a 1078 
period of ten days following receipt of such warrant.  1079 
(B) Each serving officer shall collect from such person, in addition to 1080 
the amount shown on such warrant, [his] such officer's fees and charges, 1081 
which shall be twice those authorized by statute for serving officers, 1082 
provided the minimum charge shall be five dollars and money collected 1083 
pursuant to such warrant shall be first applied to the amount of any fees 1084 
and charges of the serving officer. In the case of an employee of the state 1085 
acting as a serving officer the fees and charges collected by such 1086 
employee shall inure to the benefit of the state.  1087  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	35 of 43 
 
(4) For the purposes of this section, "keeper" means a person who has 1088 
been given authority by an officer authorized to serve a tax warrant to 1089 
act in the state's interest to secure the income of a business for the state 1090 
and, when it is in the best interest of the state, to force the cessation of 1091 
such business's operation, upon the failure of such business to pay taxes 1092 
owed to the state. 1093 
(b) (1) Any such warrant on any intangible personal property of any 1094 
person may be served by mailing a certified copy of such warrant by 1095 
certified mail, return receipt requested, to any third person in possession 1096 
of, or obligated with respect to, receivables, bank accounts, evidences of 1097 
debt, securities, salaries, wages, commissions, compensation or other 1098 
intangible personal property subject to such warrant, ordering such 1099 
third person to forthwith deliver such property or pay the amount due 1100 
or payable to the state collection agency that has made out such warrant, 1101 
provided such warrant may be issued only after the state collection 1102 
agency making out such warrant has notified the person owning such 1103 
property, in writing, of its intention to issue such warrant. The notice of 1104 
intent shall be: (A) Given in person; (B) left at the dwelling or usual place 1105 
of business of such person; or (C) sent by certified mail, return receipt 1106 
requested, to such person's last known address, not less than thirty days 1107 
before the day the warrant is to be issued. 1108 
(2) Any such warrant on any intangible personal property of any 1109 
person may be served by electronic mail, facsimile machine or other 1110 
electronic means on any third person in possession of, or obligated with 1111 
respect to, receivables, bank accounts, evidences of debt, securities, 1112 
salaries, wages, commissions, compensation or other intangible 1113 
personal property subject to such warrant, ordering such third person 1114 
to forthwith deliver such property or pay the amount due or payable to 1115 
the state collection agency that has made out such warrant, provided 1116 
such warrant may be issued only after the state collection agency 1117 
making out such warrant has notified the person owning such property, 1118 
in writing, of its intention to issue such warrant. The notice of intent 1119 
shall be: (A) Given in person; (B) left at the dwelling or usual place of 1120 
business of such person; or (C) sent by certified mail, return receipt 1121  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	36 of 43 
 
requested, to such person's last-known address, not less than thirty days 1122 
before the day the warrant is to be issued. Any such warrant for tax due 1123 
may further include an order to such third person to continually deliver, 1124 
during the one hundred eighty days immediately following the date of 1125 
issuance of the warrant or until the tax is fully paid, whichever occurs 1126 
earlier, all intangible personal property that is due and that becomes due 1127 
to the person owing the tax. Except as otherwise provided in this 1128 
subdivision, such warrant shall have the same force and effect as an 1129 
execution issued pursuant to chapter 906.  1130 
(c) (1) Except as provided in subdivision (3) of this subsection: 1131 
(A) The Commissioner of Revenue Services may not collect a tax after 1132 
ten years from the date the tax was reported on a return that was filed 1133 
with the commissioner; and 1134 
(B) If the commissioner makes an assessment of any tax within the 1135 
statute of limitations applicable to the period for which such assessment 1136 
was made, the commissioner may not collect such tax after ten years 1137 
from the date such assessment became final. 1138 
(2) Any taxes that remain unpaid after the applicable ten-year period 1139 
shall be deemed abated as of the first day of the eleventh year 1140 
succeeding the date the return was filed or the assessment became final, 1141 
as applicable. 1142 
(3) This subsection shall not apply to any taxes for which the 1143 
commissioner has entered into an agreement under the provisions of 1144 
section 12-2d or 12-2e or to any taxes that have been secured by the 1145 
recoding of a lien on the real property or personal property of a 1146 
taxpayer.  1147 
Sec. 32. (NEW) (Effective from passage) (a) For purposes of this section: 1148 
(1) "Consumer collection agency" has the same meaning as provided 1149 
in section 36a-800 of the general statutes; and 1150 
(2) "Qualifying outstanding tax liabilities" means any taxes due to the 1151  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	37 of 43 
 
Commissioner of Revenue Services that have been eligible for 1152 
collections under the provisions of section 12-35 of the general statutes, 1153 
as amended by this act, for not less than three years. "Qualifying 1154 
outstanding tax liabilities" does not include (A) taxes that are the subject 1155 
of litigation, a criminal investigation, wage garnishment, lien or other 1156 
tax warrant, or (B) taxes that are the subject of a settlement agreement, 1157 
an active payment plan or an offer of compromise and for which the 1158 
taxpayer has not defaulted on such agreement, payment plan or offer of 1159 
compromise. 1160 
(b) (1) The Commissioner of Revenue Services may sell qualifying 1161 
outstanding tax liabilities to any consumer collection agency licensed 1162 
under section 36a-801 of the general statutes and in compliance with the 1163 
provisions of chapter 669 of the general statutes. Any eligible consumer 1164 
collection agency may submit an application to purchase qualifying 1165 
outstanding tax liabilities to the commissioner, in such form and manner 1166 
prescribed by the commissioner and containing such information as the 1167 
commissioner determines is necessary to verify the eligibility of such 1168 
consumer collection agency to purchase, and to effectuate the sale of, 1169 
qualifying outstanding tax liabilities. 1170 
(2) If, after evaluation of an application, the commissioner determines 1171 
that it is in the best interest of the state to effectuate such sale, the 1172 
commissioner may enter into an agreement with the consumer 1173 
collection agency to sell qualifying outstanding tax liabilities to such 1174 
agency. Such agreement shall constitute prima facie evidence that the 1175 
consumer collection agency is the bona fide purchaser of the qualifying 1176 
outstanding tax liabilities identified in the agreement. The provisions of 1177 
subsection (c) of section 36a-813 of the general statutes shall not apply 1178 
to the commissioner. 1179 
(3) Notwithstanding the provisions of section 12-15 of the general 1180 
statutes, the commissioner may disclose to a consumer collection agency 1181 
that purchases qualifying outstanding tax liabilities such information as 1182 
the commissioner deems necessary for such consumer collection agency 1183 
to pursue collection of such tax liabilities. Any information disclosed 1184  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	38 of 43 
 
pursuant to this subdivision may not be redisclosed by the consumer 1185 
collection agency, except as necessary for such consumer collection 1186 
agency to pursue collection of such tax liabilities. 1187 
(c) A consumer collection agency that has purchased qualifying 1188 
outstanding tax liabilities: 1189 
(1) May pursue collections of such tax liabilities for not more than six 1190 
years after the date of sale; and  1191 
(2) Shall not be deemed a state collection agency for purposes of 1192 
section 12-35 of the general statutes, as amended by this act, by virtue of 1193 
the consumer collection agency's purchase of qualifying outstanding tax 1194 
liabilities. No consumer collection agency shall hold itself out to be or 1195 
represent in any way that it is a state collection agency or affiliated with 1196 
or authorized to act on behalf of the commissioner or the state. 1197 
(d) Qualifying outstanding tax liabilities purchased under the 1198 
provisions of this section may not be resold or otherwise reassigned. 1199 
(e) Any qualifying outstanding tax liabilities purchased by a 1200 
consumer collection agency shall be deemed to have been satisfied and 1201 
moneys received by the commissioner from such sale shall be deemed 1202 
to have been applied against the account of the taxpayer that owed such 1203 
tax liabilities and shall be deposited in the General Fund. 1204 
(f) Nothing in this section shall require the commissioner to sell 1205 
qualifying outstanding tax liabilities and any decision to sell qualifying 1206 
outstanding tax liabilities shall be at the sole discretion of the 1207 
commissioner. 1208 
Sec. 33. Section 12-35c of the general statutes is repealed and the 1209 
following is substituted in lieu thereof (Effective from passage): 1210 
(a) At the request of the Commissioner of Revenue Services, the 1211 
Attorney General may bring suit in the name of this state in the 1212 
appropriate court of any other state to collect any tax legally due this 1213 
state; and any political subdivision of this state or the appropriate officer 1214  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	39 of 43 
 
thereof, acting in its behalf, may bring suit in the appropriate court of 1215 
any other state or the District of Columbia to collect any tax legally due 1216 
[to] such political subdivision.  1217 
(b) The Commissioner of Revenue Services may enter i nto 1218 
agreements with collection agencies and attorneys for collection 1219 
services, for the purposes of collecting a taxpayer's unpaid taxes and 1220 
penalties and interest thereon. Such collection services may be 1221 
performed both within and without this state and may include bringing 1222 
an action in the name of this state in the appropriate court of any other 1223 
state or the District of Columbia to collect any tax legally due this state. 1224 
(c) The courts shall recognize and enforce liabilities for taxes similar 1225 
to the taxes imposed by this state and lawfully imposed by any other 1226 
state, the District of Columbia or any political subdivision [thereof] of 1227 
such state or district, which extends a like comity to this state, and the 1228 
duly authorized officer of any other state, the District of Columbia or 1229 
any political subdivision [thereof] of such state or district, may sue for 1230 
the collection of such taxes in the courts of this state. A certificate by the 1231 
Secretary of the State of such other state or the Secretary of the District 1232 
of Columbia, as applicable, that the officer suing for the collection of 1233 
such a tax is duly authorized to collect the same shall be conclusive 1234 
proof of such authority. A certificate by the Commissioner of Revenue 1235 
Services that the tax of such other state, the District of Columbia or a 1236 
political subdivision [thereof] of such state or district is similar to a tax 1237 
imposed by this state shall be prima facie evidence of such similarity. 1238 
For the purposes of this section, the words "tax" and "taxes" shall include 1239 
interest and penalties due under any taxing statute, and liability for such 1240 
interest or penalties, or both, due under a taxing statute of another state, 1241 
the District of Columbia or a political subdivision [thereof] of such state 1242 
or district shall be recognized and enforced by the courts of this state to 1243 
the same extent that the laws of such other state or district, as applicable, 1244 
permit the enforcement in its courts of liability for such interest or 1245 
penalties, or both, due under the tax laws of this state or any political 1246 
subdivision thereof.  1247  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	40 of 43 
 
Sec. 34. Section 12-35h of the general statutes is repealed and the 1248 
following is substituted in lieu thereof (Effective from passage): 1249 
When an agreement has been entered into, by the state for the 1250 
Commissioner of Revenue Services or by said commissioner, with a 1251 
collection agency or attorney for the purpose of collecting a taxpayer’s 1252 
unpaid taxes and penalties and interest thereon, the account of the 1253 
taxpayer shall be credited with the amounts of such unpaid taxes, 1254 
penalties and interest actually collected by the collection agency or 1255 
attorney before such amounts are reduced by the compensation paid by 1256 
the commissioner to, or retained by, the collection agency or attorney 1257 
for collection services provided pursuant to such agreement. 1258 
Sec. 35. Section 12-39o of the general statutes is repealed and the 1259 
following is substituted in lieu thereof (Effective from passage): 1260 
(a) For purposes of this section: [, "license"] 1261 
(1) "License" means [(1)] (A) any license issued by the commissioner 1262 
pursuant to the provisions of chapter 214, [(2)] (B) any license issued by 1263 
the commissioner pursuant to the provisions of section 12-330b, or [(3)] 1264 
(C) a seller's permit issued by the commissioner pursuant to section 12-1265 
409; [.] 1266 
(2) "Related person" means (A) an individual, a corporation, a 1267 
partnership, an association or a trust that is in control of a person subject 1268 
to this section, (B) a corporation, a partnership, an association or a trust 1269 
that is controlled by a person subject to this section, (C) a corporation, a 1270 
partnership, an association or a trust, controlled by an individual, a 1271 
corporation, a partnership, an association or a trust that is in control of 1272 
a person subject to this section, or (D) a member of the same controlled 1273 
group as a person subject to this section; and 1274 
(3) "Control" means (A) with respect to a corporation, ownership, 1275 
directly or indirectly, of stock possessing fifty per cent or more of the 1276 
total combined voting power of all classes of the stock of such 1277 
corporation entitled to vote, and (B) with respect to a trust, ownership, 1278  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	41 of 43 
 
directly or indirectly, of fifty per cent or more of the beneficial interest 1279 
in the principal or income of such trust. The ownership of stock in a 1280 
corporation, of a capital or profits interest in a partnership or association 1281 
or of a beneficial interest in a trust shall be determined in accordance 1282 
with the rules for constructive ownership of stock provided in Section 1283 
267(c) of the Internal Revenue Code of 1986, or any subsequent 1284 
corresponding internal revenue code of the United States, as amended 1285 
from time to time, other than paragraph (3) of said section. 1286 
(b) Prior to issuing or renewing the license of any person, the 1287 
commissioner may determine whether such person or related person 1288 
has failed to file any returns required to be filed with the commissioner 1289 
by such person or related person. If the commissioner determines that 1290 
such person or related person has failed to file any required returns, the 1291 
commissioner shall not issue a license to, or renew the license of, such 1292 
person until such person or related person, as applicable, files all 1293 
outstanding returns or makes an arrangement satisfactory to the 1294 
commissioner to file all outstanding returns. 1295 
(c) Prior to issuing or renewing the license of any person, the 1296 
commissioner may determine whether such person or related person 1297 
owes taxes to this state, which taxes are finally due and payable and 1298 
with respect to which any administrative or judicial remedies, or both, 1299 
have been exhausted or have lapsed. If the commissioner determines 1300 
that such person or related person owes such taxes, the commissioner 1301 
shall not issue a license to, or renew the license of, such person [,] until 1302 
such person or related person, as applicable, pays such taxes [,] or makes 1303 
an arrangement satisfactory to the commissioner to pay such taxes. 1304 
Sec. 36. (Effective from passage) (a) The Commissioner of Revenue 1305 
Services shall study alternative approaches for the imposition of the tax 1306 
under chapter 229 of the general statutes with respect to the residency 1307 
of individuals subject to such tax. The study shall identify any legislative 1308 
changes that may be made to improve the collection of such tax or to 1309 
implement an alternative approach for the imposition of such tax. 1310  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	42 of 43 
 
(b) The commissioner shall study each tax and fee that the 1311 
Department of Revenue Services is statutorily responsible for 1312 
administering, to determine the overall effectiveness of each such tax 1313 
and fee. The study shall (1) include information as to the amount of 1314 
revenue generated by each such tax and fee for the most recent year for 1315 
which the commissioner has complete records, and the costs incurred 1316 
by the department in the administration of each such tax and fee for 1317 
such year, and (2) identify any legislative changes that may be made to 1318 
improve the administration of any such tax or fee. 1319 
(c) The commissioner may (1) consult with any individuals, 1320 
businesses and state agencies the commissioner deems necessary or 1321 
appropriate to accomplish the purposes of the studies required under 1322 
this section, and (2) enter into a contract with any public or private entity 1323 
for the purposes of preparing a report required under this section. 1324 
(d) Not later than January 1, 2023, the commissioner shall submit a 1325 
report, in accordance with the provisions of section 11-4a of the general 1326 
statutes, for each study required under this section on the 1327 
commissioner's findings and recommendations to the joint standing 1328 
committee of the General Assembly having cognizance of matters 1329 
relating to finance, revenue and bonding. 1330 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 from passage 12-736 
Sec. 2 from passage and 
applicable to taxable years 
commencing on or after 
January 1, 2022 
12-704(b)(1) 
Sec. 3 from passage and 
applicable to taxable years 
commencing on or after 
January 1, 2022 
12-732(b) 
Sec. 4 from passage 12-39f 
Sec. 5 from passage New section 
Sec. 6 from passage 29-18b 
Sec. 7 from passage New section  Raised Bill No.  5472 
 
 
 
LCO No. 2517   	43 of 43 
 
Sec. 8 from passage 53a-3(9) 
Sec. 9 from passage 53a-19(b) 
Sec. 10 from passage 53a-22 
Sec. 11 from passage 53a-23 
Sec. 12 from passage 53a-167a 
Sec. 13 from passage 53a-167b 
Sec. 14 from passage 53a-167c(a) 
Sec. 15 from passage 12-699(a) 
Sec. 16 from passage New section 
Sec. 17 October 1, 2022 12-391(c) 
Sec. 18 October 1, 2022 12-392(b)(3)(J) 
Sec. 19 October 1, 2022 12-643 
Sec. 20 from passage 12-704c(d)(1) 
Sec. 21 from passage 12-415 
Sec. 22 from passage 12-416 
Sec. 23 from passage 12-417 
Sec. 24 from passage 12-418 
Sec. 25 from passage 12-419 
Sec. 26 from passage 12-408c(a)(6) 
Sec. 27 from passage 12-420b(c) and (d) 
Sec. 28 from passage 12-420c(b) to (d) 
Sec. 29 from passage 12-425(1) 
Sec. 30 from passage 12-430(7)(C) and (D) 
Sec. 31 from passage 12-35 
Sec. 32 from passage New section 
Sec. 33 from passage 12-35c 
Sec. 34 from passage 12-35h 
Sec. 35 from passage 12-39o 
Sec. 36 from passage New section 
 
Statement of Purpose:   
To implement the Department of Revenue Services' recommendations 
for tax administration and revisions to the tax and related statutes. 
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except 
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not 
underlined.]