Substitute House Bill No. 5475
Public Act No. 22-110
AN ACT CONCERNING THE LEGISLATIVE COMMISSIONERS'
RECOMMENDATIONS FOR MINOR AND TECHNICAL REVISIONS
TO THE TAX AND RELATED STATUTES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 12-35 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(a) (1) Wherever used in this chapter, unless otherwise provided,
"state collection agency" includes the Treasurer, the Commissioner of
Revenue Services and any other state official, board or commission
authorized by law to collect taxes payable to the state and any duly
appointed deputy of any such official, board or commission; "tax"
includes not only the principal of any tax but also all interest, penalties,
fees and other charges added thereto by law; and "serving officer"
includes any state marshal, constable or employee of such state
collection agency designated for such purpose by a state collection
agency and any person so designated by the Labor Commissioner.
(2) Upon the failure of any person to pay any tax, except any tax
under chapter 216, due the state within thirty days from its due date, the
state collection agency charged by law with its collection shall add Substitute House Bill No. 5475
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thereto such penalty or interest or both as are prescribed by law,
provided, (A) if any statutory penalty is not specified, there may be
added a penalty in the amount of ten per cent of the whole or such part
of the principal of the tax as is unpaid or fifty dollars, whichever amount
is greater, and [provided,] (B) if any statutory interest is not specified,
there shall be added interest at the rate of one per cent of the whole or
such part of the principal of the tax as is unpaid for each month or
fraction thereof, from the due date of such tax to the date of payment.
(3) Upon the failure of any person to pay any tax, except any tax
under chapter 216, due within thirty days of its due date, the state
collection agency charged by law with the collection of such tax may
make out and sign a warrant directed to any serving officer for distraint
upon any property of such person found within the state, whether real
or personal. An itemized bill shall be attached thereto, certified by the
state collection agency issuing such warrant as a true statement of the
amount due from such person.
(A) Such warrant shall have the same force and effect as an execution
issued pursuant to chapter 906. Such warrant may be levied on any real
property or tangible or intangible personal property of such person, and
sale made pursuant to such warrant in the same manner and with the
same force and effect as a levy of sale pursuant to an execution. In
addition thereto, if such warrant has been issued by the Commissioner
of Revenue Services, [his] the commissioner's deputy, the Labor
Commissioner, the executive director of the Employment Security
Division or any person in the Employment Security Division in a
position equivalent to or higher than the position presently held by a
revenue examiner four, [said] such serving officer shall be authorized to
place a keeper in any place of business and it shall be such keeper's duty
to secure the income of such business for the state and, when it is in the
best interest of the state, to force cessation of such business operation. In
addition, the Attorney General may collect any such tax by civil action. Substitute House Bill No. 5475
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Each serving officer so receiving a warrant shall make a return with
respect to such warrant to the appropriate collection agency within a
period of ten days following receipt of such warrant.
(B) Each serving officer shall collect from such person, in addition to
the amount shown on such warrant, [his] such officer's fees and charges,
which shall be twice those authorized by statute for serving officers,
provided the minimum charge shall be five dollars and money collected
pursuant to such warrant shall be first applied to the amount of any fees
and charges of the serving officer. In the case of an employee of the state
acting as a serving officer the fees and charges collected by such
employee shall inure to the benefit of the state.
(4) For the purposes of this [section] subsection, "keeper" means a
person who has been given authority by an officer authorized to serve a
tax warrant to act in the state's interest to secure the income of a business
for the state and, when it is in the best interest of the state, to force the
cessation of such business's operation, upon the failure of such business
to pay taxes owed to the state.
Sec. 2. Section 12-40 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
The assessors in each town, except as otherwise specially provided
by law, shall, on or before the fifteenth day of October annually, post on
the signposts therein, if any, or at some other exterior place near the
office of the town clerk, or publish in a newspaper published in such
town or, if no newspaper is published in such town, then in any
newspaper published in the state having a general circulation in such
town, a notice requiring all persons therein liable to pay taxes to bring
in a declaration of the taxable personal property belonging to them on
the first day of October in that year in accordance with section [12-42]
12-41 and the taxable personal property for which a declaration is
required in accordance with section 12-43, as amended by this act. Substitute House Bill No. 5475
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Sec. 3. Section 12-43 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
(a) Each owner of tangible personal property located in any town for
three months or more during the assessment year immediately
preceding any assessment day, who is a nonresident of such town, shall
file a declaration of such personal property with the assessors of the
town in which the same is located on such assessment day, if located in
such town for three months or more in such year, otherwise, in the town
in which such property is located for the three months or more in such
year nearest to such assessment day, under the same provisions as apply
to residents, and such personal property shall not be liable to taxation
in any other town in this state. The declaration of each nonresident
taxpayer shall contain the nonresident's post-office and street address.
(b) At least thirty days before the expiration of the time for filing such
declaration, the assessors shall mail blank declaration forms to each
nonresident, or to such nonresident's attorney or agent having custody
of the nonresident's taxable property, or send such forms electronically
to such nonresident's electronic mail address or the electronic mail
address of such nonresident's attorney or agent, provided such
nonresident has requested, in writing, to receive such forms
electronically. If the identity or mailing address of a nonresident
taxpayer is not discovered until after the expiration of time for filing a
declaration, the assessor shall, not later than ten days after determining
the identity or mailing address, mail a declaration form to the
nonresident taxpayer. [Said] Such taxpayer shall file the declaration not
later than fifteen days after the date such declaration form is sent. Each
nonresident taxpayer who fails to file a declaration in accordance with
the provisions of this section shall be subject to the penalty provided in
subsection (e) of section 12-41.
(c) As used in this section, "nonresident" means a person who does
not reside in the town in which such person's tangible personal property Substitute House Bill No. 5475
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is located on the assessment day, or a company, corporation, limited
liability company, partnership or any other type of business enterprise
that does not have an established place for conducting business in such
town on the assessment day.
Sec. 4. Section 12-44 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
Twenty-five per cent of the amount of the valuation of any property
taxable by any city, borough, school district, fire district or other
municipal association which bases its grand list upon that of the town
in which it is situated shall be added to such amount on the assessment
list of such municipal association in each case in which twenty-five per
cent has been added to such amount by such town for the failure to file
a list as prescribed by section [12-42] 12-41 or 12-43, as amended by this
act; but such penalty shall not be in addition to that previously imposed
in the town assessment.
Sec. 5. Section 12-54 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
Each person liable to give in a declaration of such person's taxable
tangible personal property and failing to do so may, within sixty days
after the expiration of the time fixed by law for filing such declaration,
be notified in writing by the [assessors] assessor or a majority of [them]
the board of assessors to appear before them to be examined under oath
as to such person's property liable to taxation and for the purpose of
verifying a declaration made out by them under the provisions of
section [12-42] 12-41. Any person who wilfully neglects or refuses to
appear before the assessors and make oath as to such person's taxable
property within ten days after having been so notified or who, having
appeared, refuses to answer shall be fined not more than one thousand
dollars. The assessors shall promptly notify the proper prosecuting
officers of any violation of any provision of this section. Nothing in this Substitute House Bill No. 5475
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section shall be construed to preclude the assessor from performing an
audit of such person's taxable personal property, as provided in section
12-53.
Sec. 6. Subsection (b) of section 12-57a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(b) Whenever any such lessee of personal property fails to file the
information required in this section, it shall be assumed that any such
property in the lessee's possession is owned by the lessee, who shall be
subject to the penalty as provided in section [12-42] 12-41 in the same
manner as any owner of personal property who fails to file a personal
property declaration as required.
Sec. 7. Subsection (a) of section 12-111 of the 2022 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
(a) (1) Any person, including any lessee of real property whose lease
has been recorded as provided in section 47-19 and who is bound under
the terms of a lease to pay real property taxes and any person to whom
title to such property has been transferred since the assessment date,
claiming to be aggrieved by the doings of the assessors of such town
may appeal therefrom to the board of assessment appeals. Such appeal
shall be filed in writing or by electronic mail in a manner prescribed by
such board on or before February twentieth. The appeal shall include,
but is not limited to, the property owner's name, name and position of
the signer, description of the property which is the subject of the appeal,
name, mailing address and electronic mail address of the party to be
sent all correspondence by the board of assessment appeals, reason for
the appeal, appellant's estimate of value, signature of property owner,
or duly authorized agent of the property owner, and date of signature.
The board shall notify each aggrieved taxpayer who filed an appeal in Substitute House Bill No. 5475
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the proper form and in a timely manner, no later than March first
immediately following the assessment date, of the date, time and place
of the appeal hearing. Such notice shall be sent no later than seven
calendar days preceding the hearing date except that the board may
elect not to conduct an appeal hearing for any commercial, industrial,
utility or apartment property with an assessed value greater than one
million dollars.
(2) The board shall, not later than March first, notify the appellant
that the board has elected not to conduct an appeal hearing. An
appellant whose appeal will not be heard by the board may appeal
directly to the Superior Court pursuant to section 12-117a.
(3) The board shall determine all appeals for which the board
conducts an appeal hearing and send written notification of the final
determination of such appeals to each such person within one week
after such determination has been made. Such written notification shall
include information describing the property owner's right to appeal the
determination of such board. Such board may equalize and adjust the
grand list of such town and may increase or decrease the assessment of
any taxable property or interest therein and may add an assessment for
property omitted by the assessors which should be added thereto; and
may add to the grand list the name of any person omitted by the
assessors and owning taxable property in such town, placing therein all
property liable to taxation which it has reason to believe is owned by
such person, at the percentage of its actual valuation, as determined by
the assessors in accordance with the provisions of sections 12-64 and 12-
71, from the best information that it can obtain. [, and if] If such property
should have been included in the declaration, as required by section [12-
42] 12-41 or 12-43, as amended by this act, [it] the board shall add thereto
twenty-five per cent of such assessment; but, before proceeding to
increase the assessment of any person or to add to the grand list the
name of any person so omitted, [it] the board shall mail to such person, Substitute House Bill No. 5475
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postage paid, at least one week before making such increase or addition,
a written or printed notice addressed to such person at the town in
which such person resides, to appear before such board and show cause
why such increase or addition should not be made.
(4) When the board increases or decreases the gross assessment of any
taxable real property or interest therein, the amount of such gross
assessment shall be fixed until the assessment year in which the
municipality next implements a revaluation of all real property
pursuant to section 12-62, unless the assessor increases or decreases the
gross assessment of the property to [(1)] (A) comply with an order of a
court of jurisdiction, [(2)] (B) reflect an addition for new construction,
[(3)] (C) reflect a reduction for damage or demolition, or [(4)] (D) correct
a factual error by issuance of a certificate of correction. Notwithstanding
the provisions of this subsection, if, prior to the next revaluation, the
assessor increases or decreases a gross assessment established by the
board for any other reason, the assessor shall submit a written
explanation to the board setting forth the reason for such increase or
decrease. The assessor shall also append the written explanation to the
property card for the real estate parcel whose gross assessment was
increased or decreased.
Sec. 8. Subdivision (4) of section 12-120a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(4) (A) For purposes of taxable registered motor vehicles, such report
shall include the total number of motor vehicles and the total assessed
value of such motor vehicles for each of the following classifications
related to use: (i) Passenger, (ii) commercial, (iii) combination, (iv) farm,
and (v) any other classification; (B) for purposes of taxable vehicles
which are not registered and mobile manufactured homes, such report
shall include the total number of such vehicles and mobile
manufactured homes and the total assessed value for each such Substitute House Bill No. 5475
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category; (C) for purposes of all other taxable personal property, such
report shall include the total value of each category of such property as
contained in the tax list required pursuant to sections [12-42] 12-41 and
12-43, as amended by this act.
Sec. 9. Subsection (a) of section 12-121f of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(a) An assessment list in any town, city or borough is not invalid as
to the taxpayers of the taxing district as a whole because the assessor
committed any one or more of the errors or omissions listed in
subdivisions (1) to (15), inclusive, of this subsection unless an action
contesting the validity of the assessment list is brought within four
months after the assessment date and the plaintiff establishes that the
assessor's error or omission will produce a substantial injustice to the
taxpayers as a whole:
(1) The assessor failed to give the legal notice required by section 12-
40, as amended by this act, that all persons liable to pay taxes in the
taxing district must, when required by law, bring in written or printed
lists of the taxable property belonging to them;
(2) The assessor received a list that is either not sworn to or not signed
by the person giving that list as required by section 12-49;
(3) The assessor received a list after the deadline specified by section
[12-42] 12-41 but neglected to fill out a list of the property described and
add to the assessment the penalty set by said section [12-42] for failing
to file before the deadline;
(4) The assessor failed to give the notice required by subsection (c) of
section 12-53 after adding property to the list of any person or
corporation making a sworn list; Substitute House Bill No. 5475
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(5) The assessor failed to give the notice required by subsection (c) of
section 12-53 after making out a list for a person or corporation that was
liable to pay taxes and failed to give a required list;
(6) The assessor failed to assess and set house lots separately in lists
as land as required by section [12-42] 12-63;
(7) The assessor failed to sign any assessment list, or did not sign the
assessment list of a town, city or borough collectively but signed the
assessment list individually for districts in the town, city or borough;
(8) The assessor failed, as required by subsection (a) of section 12-55,
to arrange an assessment list in alphabetical order, or to lodge the list in
the required office on or before the day designated by law, or at all;
(9) The assessor decreased valuations after the day on which the
assessment list was lodged or was required by law to be lodged in the
required office, but before the date on which the abstract of such list was
transmitted or was required to be transmitted to the Secretary of the
Office of Policy and Management;
(10) The assessor failed, as required by section 12-42, to fill out a list
for any person or corporation that failed to return a required list;
(11) The assessor incorrectly made an assessment list abstract
required by subsection (a) of section 12-55;
(12) The assessor failed to compare, sign, return, date or make oath to
an abstract of an assessment list of his or her town, as required by law,
or omitted from an abstract any part of the list of any person;
(13) The assessor did not take the oath required by law;
(14) The assessor failed to return to a district clerk an assessment list
of the district assessment; or Substitute House Bill No. 5475
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(15) The assessor omitted from the assessment list the taxable
property of any person or corporation liable to pay taxes.
Sec. 10. Section 12-170aa of the 2022 supplement to the general
statutes is repealed and the following is substituted in lieu thereof
(Effective October 1, 2022):
(a) There is established, for the assessment year commencing October
1, 1985, and each assessment year thereafter, a revised state program of
property tax relief for certain elderly homeowners as determined in
accordance with subsection (b) of this section, and additionally for the
assessment year commencing October 1, 1986, and each assessment year
thereafter, the property tax relief benefits of such program are made
available to certain homeowners who are permanently and totally
disabled as determined in accordance with [said] subsection (b) of this
section.
(b) (1) The program established by this section shall provide for a
reduction in property tax, except in the case of benefits payable as a
grant under certain circumstances in accordance with provisions in
subsection (j) of this section, applicable to the assessed value of certain
real property, determined in accordance with subsection (c) of this
section, for any (A) owner of real property, including any owner of real
property held in trust for such owner, provided such owner or such
owner and such owner's spouse are the grantor and beneficiary of such
trust, (B) tenant for life or tenant for a term of years liable for property
tax under section 12-48, or (C) resident of a multiple-dwelling complex
under certain contractual conditions as provided in [said] subsection (j)
of this section, who (i) at the close of the preceding calendar year has
attained age sixty-five or over, or whose spouse domiciled with such
homeowner, has attained age sixty-five or over at the close of the
preceding calendar year, or is fifty years of age or over and the surviving
spouse of a homeowner who at the time of [his] such homeowner's
death had qualified and was entitled to tax relief under this section, Substitute House Bill No. 5475
Public Act No. 22-110 12 of 71
provided such spouse was domiciled with such homeowner at the time
of [his] such homeowner's death, or (ii) at the close of the preceding
calendar year has not attained age sixty-five and is eligible in accordance
with applicable federal regulations to receive permanent total disability
benefits under Social Security, or has not been engaged in employment
covered by Social Security and accordingly has not qualified for benefits
thereunder but who has become qualified for permanent total disability
benefits under any federal, state or local government retirement or
disability plan, including the Railroad Retirement Act and any
government-related teacher's retirement plan, determined by the
Secretary of the Office of Policy and Management to contain
requirements in respect to qualification for such permanent total
disability benefits [which] that are comparable to such requirements
under Social Security; and in addition to qualification under clause (i)
or (ii) [above] of this subdivision, whose taxable and nontaxable income,
the total of which shall hereinafter be called "qualifying income", in the
tax year of such homeowner ending immediately preceding the date of
application for benefits under the program in this section, was not in
excess of sixteen thousand two hundred dollars, if unmarried, or twenty
thousand dollars, jointly with spouse if married, subject to adjustments
in accordance with subdivision (2) of this subsection, evidence of which
income shall be required in the form of a signed affidavit to be submitted
to the assessor in the municipality in which application for benefits
under this section is filed. Such affidavit may be filed electronically, in
a manner prescribed by the assessor. The amount of any Medicaid
payments made on behalf of such homeowner or the spouse of such
homeowner shall not constitute income. The amount of tax reduction
provided under this section, determined in accordance with and subject
to the variable factors in the schedule of amounts of tax reduction in
subsection (c) of this section, shall be allowed only with respect to a
residential dwelling owned by such qualified homeowner and used as
such homeowner's primary place of residence. If title to real property or
a tenancy interest liable for real property taxes is recorded in the name Substitute House Bill No. 5475
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of such qualified homeowner or his spouse making a claim and
qualifying under this section and any other person or persons, the
claimant hereunder shall be entitled to pay his fractional share of the tax
on such property calculated in accordance with the provisions of this
section, and such other person or persons shall pay his or their fractional
share of the tax without regard for the provisions of this section, unless
also qualified hereunder. For the purposes of this section, a "mobile
manufactured home", as defined in section 12-63a, or a dwelling on
leased land, including but not limited to a modular home, shall be
deemed to be real property and the word "taxes" shall not include
special assessments, interest and lien fees.
(2) The amounts of qualifying income as provided in this section shall
be adjusted annually in a uniform manner to reflect the annual inflation
adjustment in Social Security income, with each such adjustment of
qualifying income determined to the nearest one hundred dollars. Each
such adjustment of qualifying income shall be prepared by the Secretary
of the Office of Policy and Management in relation to the annual
inflation adjustment in Social Security, if any, becoming effective at any
time during the twelve-month period immediately preceding the first
day of October each year and the amount of such adjustment shall be
distributed to the assessors in each municipality not later than the thirty-
first day of December next following.
(3) For purposes of determining qualifying income under subdivision
(1) of this subsection with respect to a married homeowner who submits
an application for tax reduction in accordance with this section, the
Social Security income of the spouse of such homeowner shall not be
included in the qualifying income of such homeowner, for purposes of
determining eligibility for benefits under this section, if such spouse is
a resident of a health care or nursing home facility in this state receiving
payment related to such spouse under the Title XIX Medicaid program.
An applicant who is legally separated pursuant to the provisions of Substitute House Bill No. 5475
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section 46b-40, as of the thirty-first day of December preceding the date
on which such person files an application for a grant in accordance with
subsection (a) of this section, may apply as an unmarried person and
shall be regarded as such for purposes of determining qualifying income
under said subsection.
(c) The amount of reduction in property tax provided under this
section shall, subject to the provisions of subsection (d) of this section,
be determined in accordance with the following schedule:
T1 Qualifying Income Tax Reduction Tax Reduction
T2 As Percentage For Any Year
T3 Over Not Of Property Tax
T4 Exceeding
T5 Married Homeowners Maximum Minimum
T6 $ 0 $11,700 50% $1,250 $400
T7 11,700 15,900 40 1,000 350
T8 15,900 19,700 30 750 250
T9 19,700 23,600 20 500 150
T10 23,600 28,900 10 250 150
T11 28,900 None
T12 Unmarried Homeowners
T13 $ 0 $11,700 40% $1,000 $350
T14 11,700 15,900 30 750 250
T15 15,900 19,700 20 500 150
T16 19,700 23,600 10 250 150
T17 23,600 None
(d) Any homeowner qualified for tax reduction in accordance with
subsection (b) of this section in an amount to be determined under the
schedule of such tax reduction in subsection (c) of this section, shall in
no event receive less in tax reduction than the minimum amount of such
reduction applicable to the qualifying income of such homeowner Substitute House Bill No. 5475
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according to the schedule in said subsection (c).
(e) (1) Any claim for tax reduction under this section shall be
submitted for approval, on the application form prepared for such
purpose by the Secretary of the Office of Policy and Management, in the
first year claim for such tax relief is filed and biennially thereafter. Such
application form may be submitted by mail or electronic mail, in a
manner prescribed by the secretary. The amount of tax reduction
approved shall be applied to the real property tax payable by the
homeowner for the assessment year in which such application is
submitted and approved. If any such homeowner has qualified for tax
reduction under this section, the tax reduction determined shall, when
possible, be applied and prorated uniformly over the number of
installments in which the real property tax is due and payable to the
municipality in which [he] such homeowner resides. In the case of any
homeowner who is eligible for tax reduction under this section as a
result of increases in qualifying income, [effective with respect to the
assessment year commencing October 1, 1987,] under the schedule of
qualifying income and tax reduction in subsection (c) of this section,
exclusive of any such increases related to [social security] Social Security
adjustments in accordance with subsection (b) of this section, the total
amount of tax reduction to which such homeowner is entitled shall be
credited and uniformly prorated against property tax installment
payments applicable to such homeowner's residence [which] that
become due after such homeowner's application for tax reduction under
this section is accepted. In the event that a homeowner has paid in full
the amount of property tax applicable to such homeowner's residence,
regardless of whether the municipality requires the payment of
property taxes in one or more installments, such municipality shall
make payment to such homeowner in the amount of the tax reduction
allowed. The municipality shall be reimbursed for the amount of such
payment in accordance with subsection (g) of this section. Substitute House Bill No. 5475
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(2) In respect to such application required biennially after the filing
and approval for the first year, the tax assessor in each municipality
shall notify each such homeowner concerning application requirements
by mail or, at such homeowner's option, electronic mail, not later than
February first, annually enclosing a copy of the required application
form. Such homeowner may submit such application to the assessor by
mail or electronic mail, in a manner prescribed by the assessor, provided
it is received by the assessor not later than April fifteenth in the
assessment year with respect to which such tax reduction is claimed.
Not later than April thirtieth of such year the assessor shall notify, by
mail evidenced by a certificate of mailing, any such homeowner for
whom such application was not received by said April fifteenth
concerning application requirements and such homeowner shall be
required not later than May fifteenth to submit such application
personally or by electronic mail, in a manner prescribed by the assessor,
or, for reasonable cause, by a person acting on behalf of such taxpayer
as approved by the assessor. In the year immediately following any year
in which such homeowner has submitted application and qualified for
tax reduction in accordance with this section, such homeowner shall be
presumed, without filing application therefor, to be qualified for tax
reduction in accordance with the schedule in subsection (c) of this
section in the same percentage of property tax as allowed in the year
immediately preceding.
(3) If any homeowner has qualified and received tax reduction under
this section and subsequently in any calendar year has qualifying
income in excess of the maximum described in this section, such
homeowner shall notify the tax assessor by mail or electronic mail, in a
manner prescribed by the assessor, on or before the next filing date and
shall be denied tax reduction under this section for the assessment year
and any subsequent year or until such homeowner has reapplied and
again qualified for benefits under this section. Any such person who
fails to so notify the tax assessor of his disqualification shall refund all Substitute House Bill No. 5475
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amounts of tax reduction improperly taken and be fined not more than
five hundred dollars.
(f) (1) Any homeowner, believing such homeowner is entitled to tax
reduction benefits under this section for any assessment year, shall
make application as required in subsection (e) of this section, to the
assessor of the municipality in which the homeowner resides, for such
tax reduction at any time from February first to and including May
fifteenth of the year in which tax reduction is claimed. A homeowner
may make application to the secretary prior to August fifteenth of the
claim year for an extension of the application period. The secretary may
grant such extension in the case of extenuating circumstance due to
illness or incapacitation as evidenced by a certificate signed by a
physician, physician assistant or an advanced practice registered nurse
to that extent, or if the secretary determines there is good cause for doing
so. Such application for tax reduction benefits shall be submitted on a
form prescribed and furnished by the secretary to the assessor. In
making application the homeowner shall present to such assessor, in
substantiation of such homeowner's application, a copy of such
homeowner's federal income tax return, including a copy of the Social
Security statement of earnings for such homeowner, and that of such
homeowner's spouse, if filed separately, for such homeowner's taxable
year ending immediately prior to the submission of such application, or
if not required to file a return, such other evidence of qualifying income
in respect to such taxable year as may be required by the assessor.
(2) When the assessor is satisfied that the applying homeowner is
entitled to tax reduction in accordance with this section, such assessor
shall issue a certificate of credit, in such form as the secretary may
prescribe and supply showing the amount of tax reduction allowed. A
duplicate of such certificate shall be delivered to the applicant and the
tax collector of the municipality and the assessor shall keep the fourth
copy of such certificate and a copy of the application. Any homeowner Substitute House Bill No. 5475
Public Act No. 22-110 18 of 71
who, for the purpose of obtaining a tax reduction under this section,
wilfully fails to disclose all matters related thereto or with intent to
defraud makes false statement shall refund all property tax credits
improperly taken and shall be fined not more than five hundred dollars.
(3) Applications filed under this section shall not be open for public
inspection.
(g) (1) On or before July first, annually, each municipality shall
submit to the secretary a claim for the tax reductions approved under
this section in relation to the assessment list of October first immediately
preceding. On or after December [1, 1987] first, annually, any
municipality that neglects to transmit to the secretary the claim as
required by this section shall forfeit two hundred fifty dollars to the
state, except that the secretary may waive such forfeiture in accordance
with procedures and standards established by regulations adopted in
accordance with chapter 54.
(2) Subject to procedures for review and approval of such data
pursuant to section 12-120b, said secretary shall, on or before December
fifteenth next following, certify to the Comptroller the amount due each
municipality as reimbursement for loss of property tax revenue related
to the tax reductions allowed under this section, except that the
secretary may reduce the amount due as reimbursement under this
section by up to one hundred per cent for any municipality that is not
eligible for a grant under section 32-9s. The Comptroller shall draw an
order on the Treasurer on or before the fifth business day following
December fifteenth and the Treasurer shall pay the amount due each
municipality not later than the thirty-first day of December.
(3) Any claimant aggrieved by the results of the secretary's review
shall have the rights of appeal as set forth in section 12-120b. The
amount of the grant payable to each municipality in any year in
accordance with this section shall be reduced proportionately in the Substitute House Bill No. 5475
Public Act No. 22-110 19 of 71
event that the total of such grants in such year exceeds the amount
appropriated for the purposes of this section with respect to such year.
(h) Any person who is the owner of a residential dwelling on leased
land, including any such person who is a sublessee under terms of the
lease agreement applicable to such land, shall be entitled to claim tax
relief under the provisions of this section, subject to all requirements
therein except as provided in this [subdivision] subsection, with respect
to property taxes paid by such person on the assessed value of such
dwelling, provided (1) the dwelling is such person's principal place of
residence, (2) such lease or sublease requires that such person as the
lessee or sublessee, whichever is applicable, pay all property taxes
related to the dwelling and (3) such lease or sublease is recorded in the
land records of the town.
(i) (1) If any person with respect to whom a claim for tax reduction in
accordance with this section has been approved for any assessment year
transfers, assigns, grants or otherwise conveys on or after the first day
of October but prior to the first day of August in such assessment year
the interest in real property to which such claim for tax credit is related,
regardless of whether such transfer, assignment, grant or conveyance is
voluntary or involuntary, the amount of such tax credit shall be a pro
rata portion of the amount otherwise applicable in such assessment year
to be determined by a fraction the numerator of which shall be the
number of full months from the first day of October in such assessment
year to the date of such conveyance and the denominator of which shall
be twelve. If such conveyance occurs in the month of October the
grantor shall be disqualified for tax credit in such assessment year. The
grantee shall be required within a period not exceeding ten days
immediately following the date of such conveyance to notify the
assessor thereof by mail or electronic mail, in a manner prescribed by
the assessor, or in the absence of such notice, upon determination by the
assessor that such transfer, assignment, grant or conveyance has Substitute House Bill No. 5475
Public Act No. 22-110 20 of 71
occurred, the assessor shall [(1)] (A) determine the amount of tax
reduction to which the grantor is entitled for such assessment year with
respect to the interest in real property conveyed and notify the tax
collector of the reduced amount of tax reduction applicable to such
interest, and [(2)] (B) notify the Secretary of the Office of Policy and
Management on or before the October first immediately following the
end of the assessment year in which such conveyance occurs of the
reduction in such tax reduction for purposes of a corresponding
adjustment in the amount of state payment to the municipality next
following as reimbursement for the revenue loss related to such tax
reductions. On or after December [1, 1987] first, annually, any
municipality [which] that neglects to transmit to the Secretary of the
Office of Policy and Management the claim as required by this section
shall forfeit two hundred fifty dollars to the state, [provided] except that
the secretary may waive such forfeiture in accordance with procedures
and standards established by regulations adopted in accordance with
chapter 54.
(2) Upon receipt of such notice from the assessor, the tax collector
shall, if such notice is received after the tax due date in the municipality,
within ten days thereafter mail, hand or deliver by electronic mail, at the
grantee's option, a bill to the grantee stating the additional amount of
tax due as determined by the assessor. Such tax shall be due and payable
and collectible as other property taxes and subject to the same liens and
processes of collection, provided such tax shall be due and payable in
an initial or single installment not sooner than thirty days after the date
such bill is mailed or handed to the grantee and in equal amounts in any
remaining, regular installments as the same are due and payable.
(j) (1) Notwithstanding the intent in subsections (a) to (i), inclusive,
of this section to provide for benefits in the form of property tax
reduction applicable to persons liable for payment of such property tax
and qualified in accordance with requirements related to age and Substitute House Bill No. 5475
Public Act No. 22-110 21 of 71
income as provided in subsection (b) of this section, a certain annual
benefit, determined in amount under the provisions of subsections (c)
and (d) of this section but payable in a manner as prescribed in this
subsection, shall be provided with respect to any person who (A) is
qualified in accordance with said requirements related to age and
income as provided in subsection (b) of this section, including
provisions concerning such person's spouse, and (B) is a resident of a
dwelling unit within a multiple-dwelling complex containing dwelling
units for occupancy by certain elderly persons under terms of a contract
between such resident and the owner of such complex, in accordance
with which contract such resident occupies a certain dwelling unit
subject to the express provision that such resident has no legal title,
interest or leasehold estate in the real or personal property of such
complex, and under the terms of which contract such resident agrees to
pay the owner of the complex a fee, as a condition precedent to
occupancy and a monthly or other such periodic fee thereafter as a
condition of continued occupancy. In no event shall any such resident
be qualified for benefits payable in accordance with this subsection if, as
determined by the assessor in the municipality in which such complex
is situated, such resident's contract with the owner of such complex, or
occupancy by such resident (i) confers upon such resident any
ownership interest in the dwelling unit occupied or in such complex, or
(ii) establishes a contract of lease of any type for the dwelling unit
occupied by such resident.
(2) The amount of annual benefit payable in accordance with this
subsection to any such resident, qualified as provided in subdivision (1)
of this subsection, shall be determined in relation to an assumed amount
of property tax liability applicable to the assessed value for the dwelling
unit which such resident occupies, as determined by the assessor in the
municipality in which such complex is situated. Annually, not later than
the first day of June, the assessor in such municipality, upon receipt of
an application for such benefit submitted in accordance with this Substitute House Bill No. 5475
Public Act No. 22-110 22 of 71
subsection by mail or electronic mail, in a manner prescribed by the
assessor, by any such resident, shall determine, with respect to the
assessment list in such municipality for the assessment year
commencing October first immediately preceding, the portion of the
assessed value of the entire complex, as included in such assessment list,
attributable to the dwelling unit occupied by such resident. The
assumed property tax liability for purposes of this subsection shall be
the product of such assessed value and the mill rate in such municipality
as determined for purposes of property tax imposed on said assessment
list for the assessment year commencing October first immediately
preceding. The amount of benefit to which such resident shall be
entitled for such assessment year shall be equivalent to the amount of
tax reduction for which such resident would qualify, considering such
assumed property tax liability to be the actual property tax applicable
to such resident's dwelling unit and such resident as liable for the
payment of such tax, in accordance with the schedule of qualifying
income and tax reduction as provided in subsection (c) of this section,
subject to provisions concerning maximum allowable benefit for any
assessment year under subsections (c) and (d) of this section. The
amount of benefit as determined for such resident in respect to any
assessment year shall be payable by the state as a grant to such resident
equivalent to the amount of property tax reduction to which such
resident would be entitled under subsections (a) to (i), inclusive, of this
section if such resident were the owner of such dwelling unit and
qualified for tax reduction benefits under said subsections (a) to (i),
inclusive.
(3) Any such resident entitled to a grant as provided in subdivision
(2) of this subsection shall be required to submit an application to the
assessor in the municipality in which such resident resides for such
grant by mail or electronic mail, in a manner prescribed by the assessor,
at any time from February first to and including the fifteenth day of May
in the year in which such grant is claimed, on a form prescribed and Substitute House Bill No. 5475
Public Act No. 22-110 23 of 71
furnished for such purpose by the Secretary of the Office of Policy and
Management. Any such resident submitting an application for such
grant shall be required to present to the assessor, in substantiation of
such application, a copy of such resident's federal income tax return,
and if not required to file a federal income tax return, such other
evidence of qualifying income, receipts for money received or cancelled
checks, or copies thereof, and any other evidence the assessor may
require. Not later than the first day of July in such year, the assessor shall
submit to the Secretary of the Office of Policy and Management (A) a
copy of the application prepared by such resident, together with such
resident's federal income tax return, if required to file such a return, and
any other information submitted in relation thereto, (B) determinations
of the assessor concerning the assessed value of the dwelling unit in
such complex occupied by such resident, and (C) the amount of such
grant approved by the assessor. Said secretary, upon approving such
grant, shall certify the amount thereof and not later than the fifteenth
day of September immediately following submit approval for payment
of such grant to the State Comptroller. Not later than five business days
immediately following receipt of such approval for payment, the State
Comptroller shall draw [his or her] an order [upon] on the State
Treasurer and the Treasurer shall pay the amount of the grant to such
resident not later than the first day of October immediately following.
(k) If the Secretary of the Office of Policy and Management makes any
adjustments to the grants for tax reductions or assumed amounts of
property tax liability claimed under this section subsequent to the
[Comptroller the] State Comptroller's order of payment of [said] such
grants in any year, the amount of such adjustment shall be reflected in
the next payment the Treasurer shall make to such municipality
pursuant to this section.
Sec. 11. Subsection (a) of section 12-208 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October Substitute House Bill No. 5475
Public Act No. 22-110 24 of 71
1, 2022):
(a) Any company subject to any tax or charge under this chapter that
is aggrieved by the action of the commissioner or the commissioner's
authorized agent in fixing the amount of any tax, penalty, interest or
charge provided for by this chapter may apply to the commissioner, in
writing, not later than sixty days after the notice of such action is
delivered or mailed to the company, for a hearing and a correction of
the amount of such tax, penalty, interest or charge, so fixed, setting forth
the reasons why such hearing should be granted and the amount in
which such tax, penalty, interest or charge should be reduced. The
commissioner shall promptly consider each such application and may
grant or deny the hearing requested. If the hearing is denied, the
applicant shall be notified forthwith. If it is granted, the commissioner
shall notify the applicant of the time and place fixed for such hearing.
After such hearing the commissioner may make such order in the
premises as appears to [him] the commissioner just and lawful and shall
furnish a copy of such order to the applicant. The commissioner may,
by notice in writing, at any time within three years after the date when
any return of any such person has been due, order a hearing on [his] the
commissioner's own initiative and require such person or any other
individual whom the commissioner believes to be in possession of
relevant information concerning such person to appear before the
commissioner or the commissioner's authorized agent with any
specified books of account, papers or other documents, for examination
under oath.
Sec. 12. Subsection (b) of section 12-214 of the 2022 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
[(b) (1) With respect to income years commencing on or after January
1, 1989, and prior to January 1, 1992, any company subject to the tax
imposed in accordance with subsection (a) of this section shall pay, for Substitute House Bill No. 5475
Public Act No. 22-110 25 of 71
each such income year, an additional tax in an amount equal to twenty
per cent of the tax calculated under said subsection (a) for such income
year, without reduction of the tax so calculated by the amount of any
credit against such tax. The additional amount of tax determined under
this subsection for any income year shall constitute a part of the tax
imposed by the provisions of said subsection (a) and shall become due
and be paid, collected and enforced as provided in this chapter.
(2) With respect to income years commencing on or after January 1,
1992, and prior to January 1, 1993, any company subject to the tax
imposed in accordance with subsection (a) of this section shall pay, for
each such income year, an additional tax in an amount equal to ten per
cent of the tax calculated under said subsection (a) for such income year,
without reduction of the tax so calculated by the amount of any credit
against such tax. The additional amount of tax determined under this
subsection for any income year shall constitute a part of the tax imposed
by the provisions of said subsection (a) and shall become due and be
paid, collected and enforced as provided in this chapter.
(3) With respect to income years commencing on or after January 1,
2003, and prior to January 1, 2004, any company subject to the tax
imposed in accordance with subsection (a) of this section shall pay, for
each such income year, an additional tax in an amount equal to twenty
per cent of the tax calculated under said subsection (a) for such income
year, without reduction of the tax so calculated by the amount of any
credit against such tax. The additional amount of tax determined under
this subsection for any income year shall constitute a part of the tax
imposed by the provisions of said subsection (a) and shall become due
and be paid, collected and enforced as provided in this chapter.
(4) With respect to income years commencing on or after January 1,
2004, and prior to January 1, 2005, any company subject to the tax
imposed in accordance with subsection (a) of this section shall pay, for
each such income year, an additional tax in an amount equal to twenty- Substitute House Bill No. 5475
Public Act No. 22-110 26 of 71
five per cent of the tax calculated under said subsection (a) for such
income year, without reduction of the tax so calculated by the amount
of any credit against such tax, except that any company that pays the
minimum tax of two hundred fifty dollars under section 12-219 or 12-
223c for such income year shall not be subject to the additional tax
imposed by this subdivision. The additional amount of tax determined
under this subdivision for any income year shall constitute a part of the
tax imposed by the provisions of said subsection (a) and shall become
due and be paid, collected and enforced as provided in this chapter.]
[(5)] (b) (1) With respect to income years commencing on or after
January 1, 2006, and prior to January 1, 2007, any company subject to the
tax imposed in accordance with subsection (a) of this section shall pay,
except when the tax so calculated is equal to two hundred fifty dollars,
for each such income year, an additional tax in an amount equal to
twenty per cent of the tax calculated under said subsection (a) for such
income year, without reduction of the tax so calculated by the amount
of any credit against such tax. The additional amount of tax determined
under this subsection for any income year shall constitute a part of the
tax imposed by the provisions of said subsection (a) and shall become
due and be paid, collected and enforced as provided in this chapter.
[(6)] (2) (A) With respect to income years commencing on or after
January 1, 2009, and prior to January 1, 2012, any company subject to the
tax imposed in accordance with subsection (a) of this section shall pay,
for each such income year, except when the tax so calculated is equal to
two hundred fifty dollars, an additional tax in an amount equal to ten
per cent of the tax calculated under said subsection (a) for such income
year, without reduction of the tax so calculated by the amount of any
credit against such tax. The additional amount of tax determined under
this subsection for any income year shall constitute a part of the tax
imposed by the provisions of said subsection (a) and shall become due
and be paid, collected and enforced as provided in this chapter. Substitute House Bill No. 5475
Public Act No. 22-110 27 of 71
(B) Any company whose gross income for the income year was less
than one hundred million dollars shall not be subject to the additional
tax imposed under subparagraph (A) of this subdivision. This exception
shall not apply to companies filing a combined return for the income
year under section 12-223a or a unitary return under subsection (d) of
section 12-218d.
[(7)] (3) (A) With respect to income years commencing on or after
January 1, 2012, and prior to January 1, 2018, any company subject to the
tax imposed in accordance with subsection (a) of this section shall pay,
for each such income year, except when the tax so calculated is equal to
two hundred fifty dollars, an additional tax in an amount equal to
twenty per cent of the tax calculated under said subsection (a) for such
income year, without reduction of the tax so calculated by the amount
of any credit against such tax. The additional amount of tax determined
under this subsection for any income year shall constitute a part of the
tax imposed by the provisions of said subsection (a) and shall become
due and be paid, collected and enforced as provided in this chapter.
(B) Any company whose gross income for the income year was less
than one hundred million dollars shall not be subject to the additional
tax imposed under subparagraph (A) of this subdivision. With respect
to income years commencing on or after January 1, 2012, and prior to
January 1, 2016, this exception shall not apply to companies filing a
combined return for the income year under section 12-223a or a unitary
return under subsection (d) of section 12-218d. With respect to income
years commencing on or after January 1, 2016, and prior to January 1,
2018, this exception shall not apply to taxable members of a combined
group that files a combined unitary tax return.
[(8)] (4) (A) With respect to income years commencing on or after
January 1, 2018, and prior to January 1, 2023, any company subject to the
tax imposed in accordance with subsection (a) of this section shall pay,
for such income year, except when the tax so calculated is equal to two Substitute House Bill No. 5475
Public Act No. 22-110 28 of 71
hundred fifty dollars, an additional tax in an amount equal to ten per
cent of the tax calculated under said subsection (a) for such income year,
without reduction of the tax so calculated by the amount of any credit
against such tax. The additional amount of tax determined under this
subsection for any income year shall constitute a part of the tax imposed
by the provisions of said subsection (a) and shall become due and be
paid, collected and enforced as provided in this chapter.
(B) Any company whose gross income for the income year was less
than one hundred million dollars shall not be subject to the additional
tax imposed under subparagraph (A) of this subdivision. This exception
shall not apply to taxable members of a combined group that files a
combined unitary tax return.
Sec. 13. Subsection (b) of section 12-219 of the 2022 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
[(b) (1) With respect to income years commencing on or after January
1, 1989, and prior to January 1, 1992, the additional tax imposed on any
company and calculated in accordance with subsection (a) of this section
shall, for each such income year, except when the tax so calculated is
equal to two hundred fifty dollars, be increased by adding thereto an
amount equal to twenty per cent of the additional tax so calculated for
such income year, without reduction of the additional tax so calculated
by the amount of any credit against such tax. The increased amount of
tax payable by any company under this section, as determined in
accordance with this subsection, shall become due and be paid, collected
and enforced as provided in this chapter.
(2) With respect to income years commencing on or after January 1,
1992, and prior to January 1, 1993, the additional tax imposed on any
company and calculated in accordance with subsection (a) of this section
shall, for each such income year, except when the tax so calculated is Substitute House Bill No. 5475
Public Act No. 22-110 29 of 71
equal to two hundred fifty dollars, be increased by adding thereto an
amount equal to ten per cent of the additional tax so calculated for such
income year, without reduction of the tax so calculated by the amount
of any credit against such tax. The increased amount of tax payable by
any company under this section, as determined in accordance with this
subsection, shall become due and be paid, collected and enforced as
provided in this chapter.
(3) With respect to income years commencing on or after January 1,
2003, and prior to January 1, 2004, the additional tax imposed on any
company and calculated in accordance with subsection (a) of this section
shall, for each such income year, be increased by adding thereto an
amount equal to twenty per cent of the additional tax so calculated for
such income year, without reduction of the tax so calculated by the
amount of any credit against such tax. The increased amount of tax
payable by any company under this section, as determined in
accordance with this subsection, shall become due and be paid, collected
and enforced as provided in this chapter.
(4) With respect to income years commencing on or after January 1,
2004, and prior to January 1, 2005, the additional tax imposed on any
company and calculated in accordance with subsection (a) of this section
shall, for each such income year, be increased by adding thereto an
amount equal to twenty-five per cent of the additional tax so calculated
for such income year, without reduction of the tax so calculated by the
amount of any credit against such tax, except that any company that
pays the minimum tax of two hundred fifty dollars under this section or
section 12-223c for such income year shall not be subject to such
additional tax. The increased amount of tax payable by any company
under this subdivision, as determined in accordance with this
subsection, shall become due and be paid, collected and enforced as
provided in this chapter.]
[(5)] (b) (1) With respect to income years commencing on or after Substitute House Bill No. 5475
Public Act No. 22-110 30 of 71
January 1, 2006, and prior to January 1, 2007, the additional tax imposed
on any company and calculated in accordance with subsection (a) of this
section shall, for each such income year, except when the tax so
calculated is equal to two hundred fifty dollars, be increased by adding
thereto an amount equal to twenty per cent of the additional tax so
calculated for such income year, without reduction of the tax so
calculated by the amount of any credit against such tax. The increased
amount of tax payable by any company under this section, as
determined in accordance with this subsection, shall become due and be
paid, collected and enforced as provided in this chapter.
[(6)] (2) (A) With respect to income years commencing on or after
January 1, 2009, and prior to January 1, 2012, the additional tax imposed
on any company and calculated in accordance with subsection (a) of this
section shall, for each such income year, except when the tax so
calculated is equal to two hundred fifty dollars, be increased by adding
thereto an amount equal to ten per cent of the additional tax so
calculated for such income year, without reduction of the tax so
calculated by the amount of any credit against such tax. The increased
amount of tax payable by any company under this section, as
determined in accordance with this subsection, shall become due and be
paid, collected and enforced as provided in this chapter.
(B) Any company whose gross income for the income year was less
than one hundred million dollars shall not be subject to the additional
tax imposed under subparagraph (A) of this subdivision. This exception
shall not apply to companies filing a combined return for the income
year under section 12-223a or a unitary return under subsection (d) of
section 12-218d.
[(7)] (3) (A) With respect to income years commencing on or after
January 1, 2012, and prior to January 1, 2018, the additional tax imposed
on any company and calculated in accordance with subsection (a) of this
section shall, for each such income year, except when the tax so Substitute House Bill No. 5475
Public Act No. 22-110 31 of 71
calculated is equal to two hundred fifty dollars, be increased by adding
thereto an amount equal to twenty per cent of the additional tax so
calculated for such income year, without reduction of the tax so
calculated by the amount of any credit against such tax. The increased
amount of tax payable by any company under this section, as
determined in accordance with this subsection, shall become due and be
paid, collected and enforced as provided in this chapter.
(B) Any company whose gross income for the income year was less
than one hundred million dollars shall not be subject to the additional
tax imposed under subparagraph (A) of this subdivision. With respect
to income years commencing on or after January 1, 2012, and prior to
January 1, 2016, this exception shall not apply to companies filing a
combined return for the income year under section 12-223a or a unitary
return under subsection (d) of section 12-218d. With respect to income
years commencing on or after January 1, 2016, and prior to January 1,
2018, this exception shall not apply to taxable members of a combined
group that files a combined unitary tax return.
[(8)] (4) (A) With respect to income years commencing on or after
January 1, 2018, and prior to January 1, 2023, the additional tax imposed
on any company and calculated in accordance with subsection (a) of this
section shall, for such income year, except when the tax so calculated is
equal to two hundred fifty dollars, be increased by adding thereto an
amount equal to ten per cent of the additional tax so calculated for such
income year, without reduction of the tax so calculated by the amount
of any credit against such tax. The increased amount of tax payable by
any company under this section, as determined in accordance with this
subsection, shall become due and be paid, collected and enforced as
provided in this chapter.
(B) Any company whose gross income for the income year was less
than one hundred million dollars shall not be subject to the additional
tax imposed under subparagraph (A) of this subdivision. This exception Substitute House Bill No. 5475
Public Act No. 22-110 32 of 71
shall not apply to taxable members of a combined group that files a
combined unitary tax return.
Sec. 14. Subdivision (3) of subsection (a) of section 12-217 of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
(3) Notwithstanding any provision of this section to the contrary, no
dividend received from a real estate investment trust shall be deductible
under this section by the recipient unless the dividend is: (A) Deductible
under Section 243 of the Internal Revenue Code; (B) received by a
qualified dividend recipient from a qualified real estate investment trust
and, as of the last day of the period for which such dividend is paid,
persons, not including the qualified dividend recipient or any person
that is either a related person to, or an employee or director of, the
qualified dividend recipient, have outstanding cash capital
contributions to the qualified real estate investment trust that, in the
aggregate, exceed five per cent of the fair market value of the aggregate
real estate assets, valued as of the last day of the period for which such
dividend is paid, then held by the qualified real estate investment trust;
or (C) received from a captive real estate investment trust that is subject
to the tax imposed under this chapter. For purposes of this section, [a]
"related person" [is as defined in subdivision (7) of subsection (a) of
section 12-217m] has the same meaning as provided in section 12-217ii,
"real estate assets" [is as defined] has the same meaning as provided in
Section 856 of the Internal Revenue Code, [a] "qualified dividend
recipient" means a dividend recipient who has invested in a qualified
real estate investment trust prior to April 1, 1997, and [a] "qualified real
estate investment trust" means an entity that both was incorporated and
had contributed to it a minimum of five hundred million dollars' worth
of real estate assets prior to April 1, 1997, and that elects to be a real
estate investment trust under Section 856 of the Internal Revenue Code
prior to April 1, 1998. Substitute House Bill No. 5475
Public Act No. 22-110 33 of 71
Sec. 15. Subsection (c) of section 12-391 of the general statutes is
amended by adding subdivision (4) as follows (Effective October 1, 2022):
(NEW) (4) "Federal basic exclusion amount" means the dollar amount
published annually by the Internal Revenue Service at which a decedent
would be required to file a federal estate tax return based on the value
of the decedent's gross estate and federally taxable gifts.
Sec. 16. Subparagraph (J) of subdivision (3) of subsection (b) of section
12-392 of the general statutes is repealed and the following is substituted
in lieu thereof (Effective October 1, 2022):
(J) A tax return shall be filed, in the case of every decedent who dies
on or after January 1, 2023, and at the time of death was (i) a resident of
this state, or (ii) a nonresident of this state whose gross estate includes
any real property situated in this state or tangible personal property
having an actual situs in this state. If the decedent's Connecticut taxable
estate is over [five million four hundred ninety thousand dollars] the
federal basic exclusion amount, such tax return shall be filed with the
Commissioner of Revenue Services and a copy of such return shall be
filed with the court of probate for the district within which the decedent
resided at the date of his or her death or, if the decedent died a
nonresident of this state, the court of probate for the district within
which such real property or tangible personal property is situated. If the
decedent's Connecticut taxable estate is equal to or less than [five million
four hundred ninety thousand dollars] the federal basic exclusion
amount, such return shall be filed with the court of probate for the
district within which the decedent resided at the date of his or her death
or, if the decedent died a nonresident of this state, the court of probate
for the district within which such real property or tangible personal
property is situated, and no such return shall be filed with the
Commissioner of Revenue Services. The judge of probate for the district
in which such return is filed shall review each such return and shall
issue a written opinion to the estate representative in each case in which Substitute House Bill No. 5475
Public Act No. 22-110 34 of 71
the judge determines that the estate is not subject to tax under this
chapter.
Sec. 17. Section 12-643 of the general statutes is amended by adding
subdivision (4) as follows (Effective October 1, 2022):
(NEW) (4) "Federal basic exclusion amount" means the dollar amount
published annually by the Internal Revenue Service over which a donor
would owe federal gift tax based on the value of the donor's federally
taxable gifts.
Sec. 18. Subsection (b) of section 12-408h of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(b) A short-term rental facilitator shall be required to obtain a permit
to collect the tax set forth in subparagraph (B) of subdivision (1) of
section 12-408 and shall be considered the retailer for each retail sale of
a short-term rental that such facilitator facilitates on its platform for a
short-term rental operator. Each short-term rental facilitator shall (1) be
required to collect and remit for each such sale any tax imposed under
section 12-408, (2) be responsible for all obligations imposed under this
chapter as if such short-term rental facilitator was the operator of such
[lodging house] short-term rental and retailer for such sale, and (3) keep
such records and information as may be required by the Commissioner
of Revenue Services to ensure proper collection and remittance of such
tax.
Sec. 19. Section 12-410 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
[(1)] (a) For the purpose of the proper administration of this chapter
and to prevent evasion of the sales tax it shall be presumed that all
receipts are gross receipts that are subject to the tax until the contrary is
established. The burden of proving that a sale of tangible personal Substitute House Bill No. 5475
Public Act No. 22-110 35 of 71
property or service constituting a sale in accordance with subdivision
(2) of subsection (a) of section 12-407 is not a sale at retail is upon the
person who makes the sale unless such person takes in good faith from
the purchaser a certificate to the effect that the property or service is
purchased for resale.
[(2)] (b) The certificate relieves the seller from the burden of proof
only if taken in good faith from a person who is engaged in the business
of selling tangible personal property or services constituting a sale in
accordance with subdivision (2) of subsection (a) of section 12-407 and
who holds the permit provided for in section 12-409 and who, at the
time of purchasing the tangible personal property or service: [(A)] (1)
Intends to sell it in the regular course of business; [(B)] (2) intends to
utilize such personal property in the delivery of landscaping or
horticulture services, provided the total sale price of all such
landscaping and horticulture services are taxable under this chapter; or
[(C)] (3) is unable to ascertain at the time of purchase whether the
property or service will be sold or will be used for some other purpose.
The burden of establishing that a certificate is taken in good faith is on
the seller. A certificate to the effect that property or service is purchased
for resale taken from the purchaser by the seller shall be deemed to be
taken in good faith if the tangible personal property or service
purchased is similar to or of the same general character as property or
service which the seller could reasonably assume would be sold by the
purchaser in the regular course of business.
[(3)] (c) The certificate shall be signed by and bear the name and
address of the purchaser, shall indicate the number of the permit issued
to the purchaser and shall indicate the general character of the tangible
personal property or service sold by the purchaser in the regular course
of business. The certificate shall be substantially in such form as the
commissioner prescribes.
[(4) (A)] (d) (1) If a purchaser who gives a certificate makes any use Substitute House Bill No. 5475
Public Act No. 22-110 36 of 71
of the service or property other than retention, demonstration or display
while holding it for sale in the regular course of business, the use shall
be deemed a retail sale by the purchaser as of the time the service or
property is first used by the purchaser, and the cost of the service or
property to the purchaser shall be deemed the gross receipts from such
retail sale.
[(B)] (2) Notwithstanding the provisions of [subparagraph (A) of this]
subdivision (1) of this subsection, any use by a certificated air carrier of
an aircraft for purposes other than retention, demonstration or display
while holding it for sale in the regular course of business shall not be
deemed a retail sale by such carrier as of the time the aircraft is first used
by such carrier, irrespective of the classification of such aircraft on the
balance sheet of such carrier for accounting and tax purposes.
[(5) (A)] (e) (1) For the purpose of the proper administration of this
chapter and to prevent evasion of the sales tax, a sale of any service
described in subdivision (37) of subsection (a) of section 12-407 shall be
considered a sale for resale only if the service to be resold is an integral,
inseparable component part of a service described in said subdivision
that is to be subsequently sold by the purchaser to an ultimate
consumer. The purchaser of the service for resale shall maintain, in such
form as the commissioner requires, records that substantiate: [(i)] (A)
From whom the service was purchased and to whom the service was
sold, [(ii)] (B) the purchase price of the service, and [(iii)] (C) the nature
of the service to demonstrate that the services were an integral,
inseparable component part of a service described in subdivision (37) of
subsection (a) of section 12-407 that was subsequently sold to a
consumer.
[(B)] (2) Notwithstanding the provisions of [subparagraph (A) of this]
subdivision (1) of this subsection, no sale of a service described in
subdivision (37) of subsection (a) of section 12-407 by a seller shall be
considered a sale for resale if such service is to be subsequently sold by Substitute House Bill No. 5475
Public Act No. 22-110 37 of 71
the purchaser to an ultimate consumer that is affiliated with the
purchaser in the manner described in subparagraph (A) of subdivision
(62) of section 12-412.
[(C)] (3) For purposes of [subparagraph (A) of this] subdivision (1) of
this subsection, the sale of canned or prewritten computer software shall
be considered a sale for resale if such software is subsequently sold,
licensed or leased unaltered by the purchaser to an ultimate consumer.
The purchaser of the software for resale shall maintain, in such form as
the commissioner requires, records that substantiate: [(i)] (A) From
whom the software was purchased and to whom the software was sold,
licensed or leased, [(ii)] (B) the purchase price of the software, and [(iii)]
(C) the nature of the transaction with the ultimate consumer to
demonstrate that the same software was provided unaltered to the
ultimate consumer.
[(D)] (4) For purposes of [subparagraph (A) of this] subdivision (1) of
this subsection, the sale of digital goods shall be considered a sale for
resale if the digital goods are subsequently sold, licensed, leased,
broadcast, transmitted, or distributed, in whole or in part, as an integral,
inseparable component part of a digital good or service described in
subdivision (26), (27), (37) or (39) of subsection (a) of section 12-407 by
the purchaser of the digital goods to an ultimate consumer. The
purchaser of the digital goods for resale shall maintain, in such form as
the commissioner requires, records that substantiate: [(i)] (A) From
whom the digital goods were purchased and to whom the services
described in subdivision (26), (27), (37) or (39) of subsection (a) of section
12-407 was sold, licensed, leased, broadcast, transmitted, or distributed,
in whole or in part, [(ii)] (B) the purchase price of the digital goods, and
[(iii)] (C) the nature of the transaction with the ultimate consumer.
[(E)] (5) For purposes of [subparagraph (A) of this] subdivision (1) of
this subsection, the sale of services described in subdivision (37) of
subsection (a) of section 12-407 shall be considered a sale for resale if Substitute House Bill No. 5475
Public Act No. 22-110 38 of 71
such services are subsequently resold as an integral inseparable
component part of digital goods sold by the purchaser of the services to
an ultimate consumer of the digital goods. The purchaser of the services
described in subdivision (37) of subsection (a) of section 12-407 for resale
shall maintain, in such form as the commissioner requires, records that
substantiate: [(i)] (A) From whom the services described in subdivision
(37) of subsection (a) of section 12-407 were purchases and to whom the
digital goods were sold, licensed, or leased, [(ii)] (B) the purchase prices
of the services described in subdivision (37) of subsection (a) of section
12-407, and [(iii)] (C) the nature of the transaction with the ultimate
consumer.
[(6)] (f) For the purpose of the proper administration of this chapter
and to prevent evasion of the sales tax, no sale of any service by a seller
shall be considered a sale for resale if such service is to be subsequently
sold by the purchaser, without change, to an ultimate consumer that is
affiliated with the purchaser in the manner described in subparagraph
(A) of subdivision (62) of section 12-412.
Sec. 20. Subsection (c) of section 12-414 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(c) (1) For purposes of the sales tax, the return shall show the gross
receipts of the seller during the preceding reporting period. For
purposes of the use tax, [(1)] (A) in case of a return filed by a retailer, the
return shall show the total sales price of the services or property sold by
the retailer, the storage, acceptance, consumption or other use of which
became subject to the use tax during the preceding reporting period, and
[(2)] (B) in case of a return filed by a purchaser, the return shall show the
total sales price of the service or property purchased by the purchaser,
the storage, acceptance, consumption or other use of which became
subject to the use tax during the preceding reporting period. The return
shall also show the amount of the taxes for the period covered by the Substitute House Bill No. 5475
Public Act No. 22-110 39 of 71
return in such manner as the commissioner may require and such other
information as the commissioner deems necessary for the proper
administration of this chapter.
(2) The Commissioner of Revenue Services is authorized, [in his or
her discretion,] for purposes of expediency, to permit returns to be filed
in an alternative form wherein the person filing the return may elect (A)
to report his or her gross receipts, including the tax reimbursement to
be collected as provided for in this section, as a part of such gross
receipts, or (B) to report his or her gross receipts exclusive of the tax
collected in such cases where the gross receipts from sales have been
segregated from tax collections. In the case of [the former] a return filed
in accordance with the provisions of subparagraph (A) of this
subdivision, the percentage of such tax-included gross receipts that may
be considered to be the gross receipts from sales exclusive of the taxes
collected thereon shall be computed by dividing the numeral one by the
sum of the rate of tax provided in section 12-408, expressed as a decimal,
and the numeral one.
Sec. 21. Section 12-433 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
Wherever used in this chapter, unless the context otherwise requires:
(1) "Alcoholic beverage" and "beverage" include wine, beer and
liquor; [as defined in this section; "absolute alcohol"]
(2) "Absolute alcohol" means dehydrated alcohol containing not less
than ninety-nine per cent by weight of ethyl alcohol; ["beer"]
(3) "Beer" means any beverage obtained by the alcoholic fermentation
of an infusion or decoction of barley, malt and hops in drinking water
and containing more than one-half of one per cent of absolute alcohol
by volume; ["wine"] Substitute House Bill No. 5475
Public Act No. 22-110 40 of 71
(4) "Wine" means any alcoholic beverage obtained by the
fermentation of natural sugar contents of fruits or other agricultural
products containing sugar; ["still wine"]
(5) "Still wine" means any wine that contains not more than three
hundred ninety-two one thousandths (0.392) of a gram of carbon
dioxide per hundred milliliters of wine, and shall include any fortified
wine, cider that is made from the alcoholic fermentation of the juice of
apples, vermouth and any artificial or imitation wine or compound sold
as "still wine" containing not less than three and two-tenths per cent of
absolute alcohol by volume; ["sparkling wine"]
(6) "Sparkling wine" means champagne and any other effervescent
wine charged with more than three hundred ninety -two one
thousandths (0.392) of a gram of carbon dioxide per hundred milliliters
of wine, whether artificially or as a result of secondary fermentation of
the wine within the container; ["fortified wine"]
(7) "Fortified wine" means any wine, the alcoholic contents of which
have been increased, by whatever process, beyond that produced by
natural fermentation; ["liquor"]
(8) "Liquor" means any beverage [which] that contains alcohol
obtained by distillation mixed with drinkable water and other
substances in solution; ["liquor cooler"]
(9) "Liquor cooler" means any liquid combined with liquor [, as
defined in this section,] containing not more than seven per cent of
alcohol by volume; ["gallon"]
(10) "Gallon" or "wine gallon" means one hundred twenty-eight fluid
ounces; ["proof gallon"]
(11) "Proof gallon" means the equivalent of one wine gallon at 100
proof; ["proof spirit"] Substitute House Bill No. 5475
Public Act No. 22-110 41 of 71
(12) "Proof spirit" or "proof" [shall be held to be that] means alcoholic
liquor [which] that contains one-half by volume of alcohol of a specific
gravity of seventy-nine hundred and thirty-nine ten-thousandths
(0.7939) at 60° F; ["alcohol"]
(13) "Alcohol" means ethyl alcohol, hydrated oxide of ethyl or spirit
of wine, from whatever source or by whatever process produced;
["person"]
(14) "Person" means any individual, firm, fiduciary, partnership,
corporation, limited liability company, trust or association, however
formed; ["taxpayer"]
(15) "Taxpayer" means any person liable to taxation under this
chapter except railroad and airline companies so far as they conduct
such beverage business in cars or passenger trains or on airplanes;
["distributor"]
(16) " Distributor" means any person, wherever resident or located,
[who] that holds a wholesaler's or manufacturer's permit or wholesaler
or manufacturer permit for beer only issued under chapter 545, or [his]
such person's backer, if any; ["licensed distributor"]
(17) "Licensed distributor" means a distributor holding a license
issued by the Commissioner of Revenue Services under the provisions
of this chapter; ["tax period"]
(18) "Tax period" means any period of one calendar month, or any
part thereof; ["barrel"]
(19) "Barrel" means not less than twenty-eight nor more than thirty-
one gallons; ["half barrel"]
(20) "Half barrel" means not less than fourteen nor more than fifteen
and one-half gallons; ["quarter barrel"] Substitute House Bill No. 5475
Public Act No. 22-110 42 of 71
(21) "Quarter barrel" means not less than seven nor more than seven
and three-quarters gallons; ["sell"]
(22) "Sell" or "sale" includes and applies to gifts, exchanges and barter
and includes any alcoholic beverages coming into the possession of a
distributor [which] that cannot be satisfactorily accounted for by the
distributor to the Commissioner of Revenue Services.
Sec. 22. Section 12-438 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
Any person who applies for a cancellation of [his] such person's
distributor's license shall take an inventory at the beginning of business
on the first day of the following month showing the number of gallons
of each kind of alcoholic beverage mentioned in section 12-435 owned
by [him] such person and held within the state. Each such person shall,
[within] not later than fifteen days after taking such inventory, file a
copy of such inventory with the commissioner, on forms prescribed and
furnished by [him] the commissioner, and shall pay a tax on such
inventory at the rates specified in said section 12-435. Each return filed
under the provisions of this section shall give such additional
information as the commissioner requires and shall include a statement
of the amount of tax due under such return.
Sec. 23. Subsection (c) of section 12-458 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(c) Any person who owns or operates a vehicle that runs only upon
rails or tracks and that is properly registered with the federal
government, in accordance with the provisions of Section 4222 of the
Internal Revenue Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as amended from time to
time, shall be exempt from paying to a distributor the motor fuels tax Substitute House Bill No. 5475
Public Act No. 22-110 43 of 71
imposed pursuant to this section for use in such vehicle.
Sec. 24. Section 12-587 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
(a) (1) As used in this chapter: (A) "Company" includes a corporation,
partnership, limited partnership, limited liability company, limited
liability partnership, association, individual or any fiduciary thereof; (B)
"quarterly period" means a period of three calendar months
commencing on the first day of January, April, July or October and
ending on the last day of March, June, September or December,
respectively; (C) except as provided in subdivision (2) of this subsection,
"gross earnings" means all consideration received from the first sale
within this state of a petroleum product; (D) "petroleum products"
means those products which contain or are made from petroleum or a
petroleum derivative; (E) "first sale of petroleum products within this
state" means the initial sale of a petroleum product delivered to a
location in this state; (F) "export" or "exportation" means the conveyance
of petroleum products from within this state to a location outside this
state for the purpose of sale or use outside this state; and (G) "sale for
exportation" means a sale of petroleum products to a purchaser which
itself exports such products.
(2) For purposes of this chapter, "gross earnings" means gross
earnings as defined in subdivision (1) of this subsection, except, with
respect to the first sale of gasoline or gasohol within this state, if the
consideration received from such first sale reflects a price of gasoline or
gasohol sold or used in this state in excess of three dollars per gallon,
gross earnings from such first sale shall be deemed to be three dollars
per gallon, and any consideration received that is derived from that
portion of the price of such gasoline or gasohol in excess of three dollars
per gallon shall be disregarded in the calculation of gross earnings.
Notwithstanding the provisions of this chapter, the Commissioner of
Revenue Services may suspend enforcement activities with respect to Substitute House Bill No. 5475
Public Act No. 22-110 44 of 71
this subdivision until all policies and procedures necessary to
implement the provision of this subdivision are in place, but in no event
shall such suspension extend beyond April 15, 2012.
(b) (1) Except as otherwise provided in subdivision (2) of this
subsection, any company [which] that is engaged in the refining or
distribution, or both, of petroleum products and which distributes such
products in this state shall pay a quarterly tax on its gross earnings
derived from the first sale of petroleum products within this state. Each
company shall on or before the last day of the month next succeeding
each quarterly period render to the commissioner a return on forms
prescribed or furnished by the commissioner and signed by the person
performing the duties of treasurer or an authorized agent or officer,
including the amount of gross earnings derived from the first sale of
petroleum products within this state for the quarterly period and such
other facts as the commissioner may require for the purpose of making
any computation required by this chapter. [Except as otherwise
provided in subdivision (3) of this subsection, the] The rate of tax shall
be (A) [five per cent with respect to calendar quarters prior to July 1,
2005; (B) five and eight-tenths per cent with respect to calendar quarters
commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six
and three-tenths per cent with respect to calendar quarters commencing
on or after July 1, 2006, and prior to July 1, 2007; (D)] seven per cent with
respect to calendar quarters commencing on or after July 1, 2007, and
prior to July 1, 2013; and [(E)] (B) eight and one-tenth per cent with
respect to calendar quarters commencing on or after July 1, 2013.
(2) Gross earnings derived from the first sale of the following
petroleum products within this state shall be exempt from tax:
(A) Any petroleum products sold for exportation from this state for
sale or use outside this state;
(B) [the] The product designated by the American Society for Testing Substitute House Bill No. 5475
Public Act No. 22-110 45 of 71
and Materials as "Specification for Heating Oil D396-69", commonly
known as number 2 heating oil, to be used exclusively for heating
purposes or to be used in a commercial fishing vessel, which vessel
qualifies for an exemption pursuant to subdivision (40) of section 12-
412;
(C) [kerosene] Kerosene, commonly known as number 1 oil, to be
used exclusively for heating purposes, provided delivery is of both
number 1 and number 2 oil, and via a truck with a metered delivery
ticket to a residential dwelling or to a centrally metered system serving
a group of residential dwellings;
(D) [the] The product identified as propane gas, to be used primarily
for heating purposes;
(E) [bunker] Bunker fuel oil, intermediate fuel, marine diesel oil and
marine gas oil to be used in any vessel (i) having a displacement
exceeding four thousand dead weight tons, or (ii) primarily engaged in
interstate commerce;
(F) [for] For any first sale occurring prior to July 1, 2008, propane gas
to be used as a fuel for a motor vehicle;
(G) [for] For any first sale occurring on or after July 1, 2002, grade
number 6 fuel oil, as defined in regulations adopted pursuant to section
16a-22c, to be used exclusively by a company [which] that, in accordance
with census data contained in the Standard Industrial Classification
Manual, United States Office of Management and Budget, 1987 edition,
is included in code classifications 2000 to 3999, inclusive, or in Sector 31,
32 or 33 in the North American Industrial Classification System United
States Manual, United States Office of Management and Budget, 1997
edition;
(H) [for] For any first sale occurring on or after July 1, 2002, number
2 heating oil to be used exclusively in a vessel primarily engaged in Substitute House Bill No. 5475
Public Act No. 22-110 46 of 71
interstate commerce, which vessel qualifies for an exemption under
subdivision (40) of section 12-412;
(I) [for] For any first sale occurring on or after July 1, 2000, paraffin or
microcrystalline waxes;
(J) [for] For any first sale occurring prior to July 1, 2008, petroleum
products to be used as a fuel for a fuel cell, as defined in subdivision
(113) of section 12-412;
(K) [a] A commercial heating oil blend containing not less than ten
per cent of alternative fuels derived from agricultural produce, food
waste, waste vegetable oil or municipal solid waste, including, but not
limited to, biodiesel or low sulfur dyed diesel fuel;
(L) [for] For any first sale occurring on or after July 1, 2007, diesel fuel
other than diesel fuel to be used in an electric generating facility to
generate electricity;
(M) [for] For any first sale occurring on or after July 1, 2013, cosmetic
grade mineral oil; or
(N) [propane] Propane gas to be used as a fuel for a school bus.
[(3) The rate of tax on gross earnings derived from the first sale of
grade number 6 fuel oil, as defined in regulations adopted pursuant to
section 16a-22c, to be used exclusively by a company which, in
accordance with census data contained in the Standard Industrial
Classification Manual, United States Office of Management and Budget,
1987 edition, is included in code classifications 2000 to 3999, inclusive,
or in Sector 31, 32 or 33 in the North American Industrial Classification
System United States Manual, United States Office of Management and
Budget, 1997 edition, or number 2 heating oil used exclusively in a
vessel primarily engaged in interstate commerce, which vessel qualifies
for an exemption under section 12-412 shall be: (A) Four per cent with Substitute House Bill No. 5475
Public Act No. 22-110 47 of 71
respect to calendar quarters commencing on or after July 1, 1998, and
prior to July 1, 1999; (B) three per cent with respect to calendar quarters
commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two
per cent with respect to calendar quarters commencing on or after July
1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to
calendar quarters commencing on or after July 1, 2001, and prior to July
1, 2002.]
(c) (1) Any company [which] that imports or causes to be imported
into this state petroleum products for sale, use or consumption in this
state, other than a company subject to and having paid the tax on such
company's gross earnings from first sales of petroleum products within
this state, which earnings include gross earnings attributable to such
imported or caused to be imported petroleum products, in accordance
with subsection (b) of this section, shall pay a quarterly tax on the
consideration given or contracted to be given for such petroleum
product if the consideration given or contracted to be given for all such
deliveries during the quarterly period for which such tax is to be paid
exceeds three thousand dollars. [Except as otherwise provided in
subdivision (3) of this subsection, the] The rate of tax shall be (A) [five
per cent with respect to calendar quarters commencing prior to July 1,
2005; (B) five and eight-tenths per cent with respect to calendar quarters
commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six
and three-tenths per cent with respect to calendar quarters commencing
on or after July 1, 2006, and prior to July 1, 2007; (D)] seven per cent with
respect to calendar quarters commencing on or after July 1, 2007, and
prior to July 1, 2013; and [(E)] (B) eight and one-tenth per cent with
respect to calendar quarters commencing on or after July 1, 2013. Fuel in
the fuel supply tanks of a motor vehicle, which fuel tanks are directly
connected to the engine, shall not be considered a delivery for the
purposes of this subsection.
(2) Consideration given or contracted to be given for petroleum Substitute House Bill No. 5475
Public Act No. 22-110 48 of 71
products, gross earnings from the first sale of which are exempt from
tax under subdivision (2) of subsection (b) of this section, shall be
exempt from tax.
[(3) The rate of tax on consideration given or contracted to be given
for grade number 6 fuel oil, as defined in regulations adopted pursuant
to section 16a-22c, to be used exclusively by a company which, in
accordance with census data contained in the Standard Industrial
Classification Manual, United States Office of Management and Budget,
1987 edition, is included in code classifications 2000 to 3999, inclusive,
or in Sector 31, 32 or 33 in the North American Industrial Classification
System United States Manual, United States Office of Management and
Budget, 1997 edition, or number 2 heating oil used exclusively in a
vessel primarily engaged in interstate commerce, which vessel qualifies
for an exemption under section 12-412 shall be: (A) Four per cent with
respect to calendar quarters commencing on or after July 1, 1998, and
prior to July 1, 1999; (B) three per cent with respect to calendar quarters
commencing on or after July 1, 1999, and prior to July 1, 2000; (C) two
per cent with respect to calendar quarters commencing on or after July
1, 2000, and prior to July 1, 2001; and (D) one per cent with respect to
calendar quarters commencing on or after July 1, 2001, and prior to July
1, 2002.]
(d) The amount of tax reported to be due on such return shall be due
and payable on or before the last day of the month next succeeding the
quarterly period. The tax imposed under the provisions of this chapter
shall be in addition to any other tax imposed by this state on such
company.
(e) For the purposes of this chapter, the gross earnings of any
producer or refiner of petroleum products operating a service station
along the highways or interstate highways within the state pursuant to
a contract with the Department of Transportation or operating a service
station which is used as a training or test marketing center under the Substitute House Bill No. 5475
Public Act No. 22-110 49 of 71
provisions of subsection (b) of section 14-344d, shall be calculated by
multiplying the volume of petroleum products delivered by any
producer or refiner to any such station by such producer's or refiner's
dealer tank wagon price or dealer wholesale price in the area of the
service station.
Sec. 25. Subsection (a) of section 12-587a of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(a) (1) Any company, as such term is used in section 12-587, as
amended by this act, liable for the tax imposed under subsection (b) of
[said] section 12-587, as amended by this act, on gross earnings from the
first sale of petroleum products within this state, which products the
purchaser thereof subsequently sells for exportation and sale or use
outside this state, shall be allowed a credit against any tax for which
such company is liable in accordance with subsection (b) of [said]
section 12-587, as amended by this act, in the amount of tax paid to the
state with respect to the sale of such products, provided (A) such
purchaser has submitted certification to such company, in such form as
prescribed by the Commissioner of Revenue Services, that such
products were sold or used outside this state, (B) such certification and
any additional information related to such sale or use by such
purchaser, which said commissioner may request, have been submitted
to said commissioner, and (C) such company makes a payment to such
purchaser, related to such products sold or used outside this state, in the
amount equal to the tax imposed under [said] section 12-587, as
amended by this act, on gross earnings from the first sale to such
purchaser within the state.
(2) The credit allowed pursuant to subdivision (1) of this subsection
may also be claimed, in the same manner as provided in said
subdivision, [(1),] by any such company when the petroleum products
sold in a first sale within this state by such company are incorporated Substitute House Bill No. 5475
Public Act No. 22-110 50 of 71
by the purchaser thereof into a material that is included in U.S. industry
group 3255 in the North American Industrial Classification System
United States Manual, United States Office of Management and Budget,
2007 edition, and such products are subsequently exported for sale or
use outside this state. Such company shall be allowed [said] such credit
in the amount of tax paid to the state with respect to the sale of such
products.
(3) In addition, such company shall be allowed such credit when
there has been any sale of such products subsequent to the sale by such
company but prior to sale or use outside this state, provided (A) each
purchaser receives payment, related to such products sold or used
outside this state, equal to the tax imposed under [said] section 12-587,
as amended by this act, on gross earnings from the first sale of such
products within this state, and (B) the purchaser selling or using such
products outside this state complies with the requirements in this
section related to a purchaser of such products from the company liable
for such tax.
Sec. 26. Section 12-631 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
As used in this chapter, the following terms have the following
meanings:
[(a)] (1) "Business firm" means any business entity authorized to do
business in the state and subject to the tax due under the provisions of
chapter 207, 208, 209, 210, 211, 212 or 213a.
[(b)] (2) "Community services" means any type of counseling and
advice, emergency assistance or medical care furnished to individuals
or groups in the state.
[(c)] (3) "Crime prevention" means any activity which aids in the
reduction of crime in the state. Substitute House Bill No. 5475
Public Act No. 22-110 51 of 71
[(d)] (4) "Education" means any type of scholastic instruction or
scholarship assistance to any person who resides in the state that enables
such person to prepare for better opportunities, including teaching
services donated pursuant to section 10-21c.
[(e)] (5) "Job training" means any type of instruction to any person
who resides in the state that enables such person to acquire vocational
skills to become employable or seek a higher grade of employment,
including training offered pursuant to section 10-21b.
[(f)] (6) "Neighborhood" means any specific geographic area, urban,
interurban, suburban, or rural, which is experiencing problems
endangering its existence as a viable and stable neighborhood.
[(g)] (7) "Neighborhood assistance" means the furnishing of financial
assistance, labor, material, or technical advice to aid in the physical
improvement or rehabilitation of all or any part of a neighborhood.
[(h)] (8) "Neighborhood organization" means any organization
performing community services in the state [which: (1)] that: (A) Holds
a ruling from the Internal Revenue Service of the United States
Department of the Treasury that the organization is exempt from
income taxation under the provisions of the Internal Revenue Code; [,
or (2)] (B) is designated as a community development corporation by
the United States government under the provisions of Title VII of the
Economic Opportunity Act of 1964; [, or (3)] or (C) is incorporated as a
charitable corporation or trust under the provisions of chapter 598a.
[(i)] (9) "Families of low and moderate income" means families
meeting the criteria for designation as families of low and moderate
income established by the Commissioner of Housing pursuant to
subsection (f) of section 8-39.
Sec. 27. Subdivision (1) of subsection (a) of section 12-632 of the
general statutes is repealed and the following is substituted in lieu Substitute House Bill No. 5475
Public Act No. 22-110 52 of 71
thereof (Effective October 1, 2022):
(a) (1) Except as otherwise provided in subdivision (2) of this
subsection, on or before July first of each year, any municipality desiring
to obtain benefits under the provisions of this chapter shall, after
approval by the legislative body of such municipality, submit to the
Commissioner of Revenue Services a list on a form prescribed and made
available by the commissioner of programs eligible for investment by
business firms under the provisions of this chapter. Such activities shall
consist of providing neighborhood assistance; job training or education;
community services; crime prevention; energy conservation or
construction or rehabilitation of dwelling units for families of low and
moderate income in the state; donation of money to an open space
acquisition fund of any political subdivision of the state or any nonprofit
land conservation organization, which fund qualifies under [subsection
(h)] subdivision (8) of section 12-631, as amended by this act, and is used
for the purchase of land, interest in land or permanent conservation
restriction on land [which] that is to be permanently preserved as
protected open space; or any of the activities described in section 12-634,
12-635 or 12-635a. Such list shall indicate, for each program specified:
The concept of the program, the neighborhood area to be served, why
the program is needed, the estimated amount required to be invested in
the program, the suggested plan for implementing the program, the
agency designated by the municipality to oversee implementation of the
program and such other information as the commissioner may
prescribe. Each municipality shall hold at least one public hearing on
the subject of which programs shall be included on such list prior to the
submission of such list to the commissioner.
Sec. 28. Subsection (c) of section 12-632 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(c) Any business firm [which] that desires to engage in any of the Substitute House Bill No. 5475
Public Act No. 22-110 53 of 71
activities or programs approved by any municipality pursuant to
subsection (a) of this section and listed pursuant to subsection (b) of this
section may apply to the Commissioner of Revenue Services for a tax
credit in an amount as provided in section 12-633, 12-634, 12-635 or 12-
635a. The proposal for such credit, which shall be made on a form
prescribed and made available by the commissioner, shall set forth the
program to be conducted, the neighborhood area to be invested in, the
plans for implementing the program and such other information as said
commissioner may prescribe. Such proposals shall be submitted to the
commissioner on or after September fifteenth but no later than October
first of each year. Such proposals shall be approved or disapproved by
the [Commissioner of Revenue Services] commissioner based on the
compliance of such proposal with the provisions of this chapter and
regulations adopted pursuant to this chapter. The commissioner may
only approve proposals received between September fifteenth and
October first of each year. If, in the opinion of the [Commissioner of
Revenue Services] commissioner, a business firm's investment can, for
the purposes of this chapter, be made through contributions to a
neighborhood organization as defined in [subsection (h)] subdivision (8)
of section 12-631, as amended by this act, tax credits may be allowed in
amounts as provided in section 12-633, 12-634, 12-635 or 12-635a.
Sec. 29. Subsection (f) of section 12-632 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(f) The sum of all tax [credit] credits granted pursuant to the
provisions of section 12-633, 12-634, 12-635 or 12-635a shall not exceed
one hundred fifty thousand dollars annually per business firm and no
tax credit shall be granted to any business firm for any individual
amount invested of less than two hundred fifty dollars.
Sec. 30. Section 17b-738 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022): Substitute House Bill No. 5475
Public Act No. 22-110 54 of 71
The Commissioner of Early Childhood shall establish and administer
a program of loans to business firms, as defined in [subsection (a) of]
section 12-631, as amended by this act, for the purpose of planning, site
preparation, construction, renovation or acquisition of facilities, within
the state, for use as licensed child care centers, family child care homes
or group child care homes to be used primarily by the children of
employees of such corporations and children of employees of the
municipalities in which such facilities are located. Such loans shall be
made in accordance with the terms and conditions as provided in
regulations adopted by the commissioner, in accordance with chapter
54, shall be made for a period not to exceed five years and shall bear
interest at a rate to be determined in accordance with subsection (t) of
section 3-20.
Sec. 31. Subdivision (1) of subsection (b) of section 12-699a of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
(b) (1) Each affected business entity required to pay the tax imposed
under section 12-699 and whose required annual payment for the
taxable year is greater than or equal to one thousand dollars shall make
the required annual payment each taxable year, in four required
estimated tax installments on the following due dates: (A) For the first
required installment, the fifteenth day of the fourth month of the taxable
year; (B) for the second required installment, the fifteenth day of the
sixth month of the taxable year; (C) for the third required installment,
the fifteenth day of the ninth month of the taxable year; [,] and (D) for
the fourth required installment, the fifteenth day of the first month of
the next succeeding taxable year. An affected business entity may elect
to pay any required installment prior to the specified due date. Except
as provided in subdivision (2) of this subsection, the amount of each
required installment shall be twenty-five per cent of the required annual
payment. Substitute House Bill No. 5475
Public Act No. 22-110 55 of 71
Sec. 32. Subdivision (10) of subsection (a) of section 12-701 of the 2022
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective October 1, 2022):
(10) "Connecticut fiduciary adjustment" means the net positive or
negative total of the following items relating to income, gain, loss or
deduction of a trust or estate:
(A) There shall be added together:
(i) [any] Any interest income from obligations issued by or on behalf
of any state, political subdivision thereof, or public instrumentality,
state or local authority, district or similar public entity, exclusive of such
income from obligations issued by or on behalf of the state of
Connecticut, any political subdivision thereof, or public
instrumentality, state or local authority, district or similar public entity
created under the laws of the state of Connecticut and exclusive of any
such income with respect to which taxation by any state is prohibited by
federal law; [,]
(ii) [any] Any exempt-interest dividends, as defined in Section
852(b)(5) of the Internal Revenue Code, exclusive of such exempt-
interest dividends derived from obligations issued by or on behalf of the
state of Connecticut, any political subdivision thereof, or public
instrumentality, state or local authority, district or similar public entity
created under the laws of the state of Connecticut and exclusive of such
exempt-interest dividends derived from obligations, the income with
respect to which taxation by any state is prohibited by federal law; [,]
(iii) [any] Any interest or dividend income on obligations or securities
of any authority, commission or instrumentality of the United States
[which] that federal law exempts from federal income tax but does not
exempt from state income taxes; [,]
(iv) [to] To the extent properly includable in determining the net gain Substitute House Bill No. 5475
Public Act No. 22-110 56 of 71
or loss from the sale or other disposition of capital assets for federal
income tax purposes, any loss from the sale or exchange of obligations
issued by or on behalf of the state of Connecticut, any political
subdivision thereof, or public instrumentality, state or local authority,
district or similar public entity created under the laws of the state of
Connecticut, in the income year such loss was recognized; [,]
(v) [to] To the extent deductible in determining federal taxable
income prior to deductions relating to distributions to beneficiaries, any
income taxes imposed by this state; [,]
(vi) [to] To the extent deductible in determining federal taxable
income prior to deductions relating to distributions to beneficiaries, any
interest on indebtedness incurred or continued to purchase or carry
obligations or securities the interest on which is exempt from tax under
this chapter; [,]
(vii) [expenses] Expenses paid or incurred during the taxable year for
the production or collection of income which is exempt from tax under
this chapter, or the management, conservation or maintenance of
property held for the production of such income, and the amortizable
bond premium for the taxable year on any bond the interest on which is
exempt from taxation under this chapter, to the extent that such
expenses and premiums are deductible in determining federal taxable
income prior to deductions relating to distributions to beneficiaries; [,]
(viii) [to] To the extent deductible in determining federal taxable
income prior to deductions relating to distributions to beneficiaries, the
deduction allowable as qualified domestic production activities income,
pursuant to Section 199 of the Internal Revenue Code; [,] and
(ix) [to] To the extent not includable in federal taxable income prior
to deductions relating to distributions to beneficiaries, the total amount
of a lump sum distribution for the taxable year. Substitute House Bill No. 5475
Public Act No. 22-110 57 of 71
(B) There shall be subtracted from the sum of such items:
(i) [to] To the extent properly includable in gross income for federal
income tax purposes, any income with respect to which taxation by any
state is prohibited by federal law; [,]
(ii) [to] To the extent allowable under section 12-718, exempt
dividends paid by a regulated investment company; [,]
(iii) [with] With respect to any trust or estate [which] that is a
shareholder of an S corporation which is carrying on, or [which] that has
the right to carry on, business in this state, as said term is used in section
12-214, as amended by this act, the amount of such shareholder's pro
rata share of such corporation's nonseparately computed items, as
defined in Section 1366 of the Internal Revenue Code, that is subject to
tax under chapter 208, in accordance with subsection (c) of section 12-
217 multiplied by such corporation's apportionment fraction, if any, as
determined in accordance with section 12-218; [,]
(iv) [to] To the extent properly includable in gross income for federal
income tax purposes, any interest income from obligations issued by or
on behalf of the state of Connecticut, any political subdivision thereof,
or public instrumentality, state or local authority, district or similar
public entity created under the laws of the state of Connecticut; [,]
(v) [to] To the extent properly includable in determining the net gain
or loss from the sale or other disposition of capital assets for federal
income tax purposes, any gain from the sale or exchange of obligations
issued by or on behalf of the state of Connecticut, any political
subdivision thereof, or public instrumentality, state or local authority,
district or similar public entity created under the laws of the state of
Connecticut, in the income year such gain was recognized; [,]
(vi) [any] Any interest on indebtedness incurred or continued to
purchase or carry obligations or securities the interest on which is Substitute House Bill No. 5475
Public Act No. 22-110 58 of 71
subject to tax under this chapter, but exempt from federal income tax, to
the extent that such interest on indebtedness is not deductible in
determining federal taxable income prior to deductions relating to
distributions to beneficiaries; [,]
(vii) [ordinary] Ordinary and necessary expenses paid or incurred
during the taxable year for the production or collection of income
[which] that is subject to taxation under this chapter, but exempt from
federal income tax, or the management, conservation or maintenance of
property held for the production of such income, and the amortizable
bond premium for the taxable year on any bond the interest on which is
subject to tax under this chapter, but exempt from federal income tax, to
the extent that such expenses and premiums are not deductible in
determining federal taxable income prior to deductions relating to
distributions to beneficiaries; [,] and
(viii) [the] The amount of any refund or credit for overpayment of
income taxes imposed by this state, to the extent properly includable in
gross income for federal income tax purposes for the taxable year and to
the extent deductible in determining federal taxable income prior to
deductions relating to distributions to beneficiaries for the preceding
taxable year.
Sec. 33. Subdivisions (24) to (31), inclusive, of subsection (a) of section
12-701 of the 2022 supplement to the general statutes are repealed and
the following is substituted in lieu thereof (Effective October 1, 2022):
(24) "Adjusted federal tentative minimum tax" of an individual
means such individual's federal tentative minimum tax or, in the case of
an individual whose Connecticut adjusted gross income includes
modifications described in subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi),
(A)(vii) or (A)(viii) of subdivision (20) of this subsection [(a) of this
section] or subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii),
(B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision (20) of this subsection, Substitute House Bill No. 5475
Public Act No. 22-110 59 of 71
[(a) of this section,] the amount that would have been the federal
tentative minimum tax if such tax were calculated by including, to the
extent not includable in federal alternative minimum taxable income,
the modifications described in subparagraph (A)(i), (A)(ii), (A)(v),
(A)(vi), (A)(vii) or (A)(viii) of subdivision (20) of this subsection, [(a) of
this section,] by excluding, to the extent includable in federal alternative
minimum taxable income, the modifications described in subparagraph
(B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or
(B)(xv) of subdivision (20) of this subsection, [(a) of this section,] and by
excluding, to the extent includable in federal alternative minimum
taxable income, the amount of any interest income or exempt-interest
dividends, as defined in Section 852(b)(5) of the Internal Revenue Code,
from obligations that are issued by or on behalf of the state of
Connecticut, any political subdivision thereof, or public
instrumentality, state or local authority, district, or similar public entity
that is created under the laws of the state of Connecticut, or from
obligations that are issued by or on behalf of any territory or possession
of the United States, any political subdivision of such territory or
possession, or public instrumentality, authority, district or similar
public entity of such territory or possession, the income with respect to
which taxation by any state is prohibited by federal law. If such
individual is a beneficiary of a trust or estate, then, in calculating his or
her federal tentative minimum tax, his or her federal alternative taxable
income shall be increased or decreased, as the case may be, by the net
amount of such individual's proportionate share of the Connecticut
fiduciary adjustment relating to modifications that are described in, to
the extent not includable in federal alternative minimum taxable
income, subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii)
of subdivision (20) of this subsection [(a) of this section,] or, to the extent
includable in federal alternative minimum taxable income,
subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x),
(B)(xiii) or (B)(xv) of subdivision (20) of this subsection. [(a) of this
section.] Substitute House Bill No. 5475
Public Act No. 22-110 60 of 71
(25) "Net Connecticut minimum tax" means the amount by which the
Connecticut minimum tax exceeds the income tax imposed under
section 12-700.
(26) (A) "Connecticut minimum tax" of an individual means the lesser
of (i) nineteen per cent of the adjusted federal tentative minimum tax, as
defined in subdivision (24) of this subsection, [(a) of this section,] or (ii)
five and one-half per cent of the adjusted federal alternative minimum
taxable income, as defined in subdivision (30) of this subsection. (B)
"Connecticut minimum tax" of a trust or estate means the lesser of (i)
nineteen per cent of the adjusted federal tentative minimum tax, as
defined in subdivision (28) of this subsection, or (ii) five and one-half
per cent of the adjusted federal alternative minimum taxable income, as
defined in subdivision (31) of this subsection.
(27) "Adjusted net Connecticut minimum tax" means (A) if the
Connecticut minimum tax is calculated under subparagraph (A)(i) or
(B)(i), as the case may be, of subdivision (26) of this subsection, the
excess, if any, of (i) the net Connecticut minimum tax, less the credit
allowed under subsection (e) of section 12-700a, over (ii) the amount that
would have been the net Connecticut minimum tax provided the
adjustments and items of preference specified in Section 53(d) of the
Internal Revenue Code had been used in determining the net
Connecticut minimum tax, less the credit that would have been allowed
under subsection (e) of section 12-700a for a similar tax determined by
using only the adjustments and items of preference specified in Section
53(d) of the Internal Revenue Code, or (B) if the Connecticut minimum
tax is calculated under subparagraph (A)(ii) or (B)(ii), as the case may
be, of subdivision (26) of this subsection, then the product of the excess
that is described in subparagraph (A) of this subdivision and that is
determined without regard to said subparagraph (A)(ii) or (B)(ii), as the
case may be, of subdivision (26) of this subsection, multiplied by a
fraction, the numerator of which is the net Connecticut minimum tax, as Substitute House Bill No. 5475
Public Act No. 22-110 61 of 71
if the Connecticut minimum tax were calculated under said
subparagraph (A)(ii) or (B)(ii), as the case may be, of subdivision (26) of
this subsection and the denominator of which is the net Connecticut
minimum tax, as if the Connecticut minimum tax were calculated under
said subparagraph (A)(i) or (B)(i), as the case may be, of subdivision (26)
of this subsection.
(28) "Adjusted federal tentative minimum tax" of a trust or estate
means its federal tentative minimum tax or, in the case of a trust or estate
whose Connecticut taxable income includes modifications described in
subparagraph (A)(i), (A)(ii), (A)(iv), (A)(v), (A)(vi) or (A)(vii) of
subdivision (10) of this subsection [(a) of this section] or subparagraph
(B)(i), (B)(ii), (B)(iii), (B)(iv), (B)(v), (B)(vi) or (B)(vii) of subdivision (10)
of this subsection, [(a) of this section,] the amount that would have been
the federal tentative minimum tax if such tax were calculated by
including, to the extent not includable in federal alternative minimum
taxable income, the modifications described in subparagraph (A)(i),
(A)(ii), (A)(iv), (A)(v), (A)(vi) or (A)(vii) of subdivision (10) of this
subsection, [(a) of this section,] by excluding, to the extent includable in
federal alternative minimum taxable income, the modifications
described in subparagraph (B)(i), (B)(ii), (B)(iii), (B)(iv), (B)(v), (B)(vi) or
(B)(vii) of subdivision (10) of this subsection, [(a) of this section,] and by
excluding, to the extent includable in federal alternative minimum
taxable income, the amount of any interest income or exempt-interest
dividends, as defined in Section 852(b)(5) of the Internal Revenue Code,
from obligations that are issued by or on behalf of the state of
Connecticut, any political subdivision thereof, or public
instrumentality, state or local authority, district, or similar public entity
that is created under the laws of the state of Connecticut, or from
obligations that are issued by or on behalf of any territory or possession
of the United States, any political subdivision of such territory or
possession, or public instrumentality, authority, district or similar
public entity of such territory or possession, the income with respect to Substitute House Bill No. 5475
Public Act No. 22-110 62 of 71
which taxation by any state is prohibited by federal law. If such trust or
estate is itself a beneficiary of a trust or estate, then, for purposes of
calculating its adjusted federal alternative minimum tax, its federal
alternative minimum taxable income shall also be increased or
decreased, as the case may be, by the net amount of such trust or estate's
proportionate share of the Connecticut fiduciary adjustment relating to
modifications that are described, to the extent not includable in federal
alternative minimum taxable income, in subparagraph (A)(i), (A)(ii),
(A)(iv), (A)(v), (A)(vi) or (A)(vii) of subdivision (10) of this subsection
[(a) of this section] or, to the extent includable in federal alternative
minimum taxable income, subparagraph (B)(i), (B)(ii), (B)(iii), (B)(iv),
(B)(v), (B)(vi) or (B)(vii) of subdivision (10) of this subsection. [(a) of this
section.]
(29) "Federal alternative minimum taxable income" means alternative
minimum taxable income, as defined in Section 55(b)(2) of the Internal
Revenue Code.
(30) "Adjusted federal alternative minimum taxable income" of an
individual means his or her federal alternative minimum taxable
income or, in the case of an individual whose Connecticut adjusted
gross income includes modifications described in subparagraph (A)(i),
(A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) of subdivision (20) of this
subsection [(a) of this section] or subparagraph (B)(i), (B)(ii), (B)(v),
(B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision
(20) of this subsection, [(a) of this section,] the amount that would have
been the federal alternative minimum taxable income if such amount
were calculated by including, to the extent not includable in federal
alternative minimum taxable income, the modifications described in
subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) of
subdivision (20) of this subsection, [(a) of this section,] by excluding, to
the extent includable in federal alternative minimum taxable income,
the modifications described in subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), Substitute House Bill No. 5475
Public Act No. 22-110 63 of 71
(B)(vii), (B)(viii), (B)(ix), (B)(x), (B)(xiii) or (B)(xv) of subdivision (20) of
this subsection, [(a) of this section,] and by excluding, to the extent
includable in federal alternative minimum taxable income, the amount
of any interest income or exempt-interest dividends, as defined in
Section 852(b)(5) of the Internal Revenue Code, from obligations that are
issued by or on behalf of the state of Connecticut, any political
subdivision thereof, or public instrumentality, state or local authority,
district, or similar public entity that is created under the laws of the state
of Connecticut, or from obligations that are issued by or on behalf of any
territory or possession of the United States, any political subdivision of
such territory or possession, or public instrumentality, authority,
district or similar public entity of such territory or possession, the
income with respect to which taxation by any state is prohibited by
federal law. If such individual is a beneficiary of a trust or estate, then,
for purposes of calculating his or her adjusted federal alternative
minimum taxable income, his or her federal alternative minimum
taxable income shall also be increased or decreased, as the case may be,
by the net amount of such individual's proportionate share of the
Connecticut fiduciary adjustment relating to modifications to the extent
not includable in federal alternative minimum taxable income, that are
described in subparagraph (A)(i), (A)(ii), (A)(v), (A)(vi), (A)(vii) or
(A)(viii) of subdivision (20) of this subsection [(a) of this section] or, to
the extent includable in federal alternative minimum taxable income,
subparagraph (B)(i), (B)(ii), (B)(v), (B)(vi), (B)(vii), (B)(viii), (B)(ix), (B)(x),
(B)(xiii) or (B)(xv) of subdivision (20) of this subsection. [(a) of this
section.]
(31) "Adjusted federal alternative minimum taxable income" of a trust
or estate means its federal alternative minimum taxable income or, in
the case of a trust or estate whose Connecticut taxable income includes
modifications described in subparagraph (A)(i), (A)(ii), (A)(iv), (A)(v),
(A)(vi) or (A)(vii) of subdivision (10) of this subsection [(a) of this
section] or subparagraph (B)(i), (B)(ii), (B)(iii), (B)(iv), (B)(v), (B)(vi) or Substitute House Bill No. 5475
Public Act No. 22-110 64 of 71
(B)(vii) of subdivision (10) of this subsection, [(a) of this section,] the
amount that would have been the federal alternative minimum taxable
income if such amount were calculated by including, to the extent not
includable in federal alternative minimum taxable income, the
modifications described in subparagraph (A)(i), (A)(ii), (A)(iv), (A)(v),
(A)(vi) or (A)(vii) of subdivision (10) of this subsection, [(a) of this
section,] by excluding, to the extent includable in federal alternative
minimum taxable income, the modifications described in subparagraph
(B)(i), (B)(ii), (B)(iii), (B)(iv), (B)(v), (B)(vi) or (B)(vii) of subdivision (10)
of this subsection, [(a) of this section,] and by excluding, to the extent
includable in federal alternative minimum taxable income, the amount
of any interest income or exempt-interest dividends, as defined in
Section 852(b)(5) of the Internal Revenue Code, from obligations that are
issued by or on behalf of the state of Connecticut, any political
subdivision thereof, or public instrumentality, state or local authority,
district, or similar public entity that is created under the laws of the state
of Connecticut, or from obligations that are issued by or on behalf of any
territory or possession of the United States, any political subdivision of
such territory or possession, or public instrumentality, authority,
district or similar public entity of such territory or possession, the
income with respect to which taxation by any state is prohibited by
federal law. If such trust or estate is itself a beneficiary of a trust or estate,
then, for purposes of calculating its adjusted federal alternative
minimum taxable income, its federal alternative minimum taxable
income shall also be increased or decreased, as the case may be, by the
net amount of such trust or estate's proportionate share of the
Connecticut fiduciary adjustment relating to modifications that are
described, to the extent not includable in federal alternative minimum
taxable income, in subparagraph (A)(i), (A)(ii), (A)(iv), (A)(v), (A)(vi) or
(A)(vii) of subdivision (10) of this subsection [(a) of this section,] or, to
the extent includable in federal alternative minimum taxable income,
subparagraph (B)(i), (B)(ii), (B)(iii), (B)(iv), (B)(v), (B)(vi) or (B)(vii) of
subdivision (10) of this subsection. [(a) of this section.] Substitute House Bill No. 5475
Public Act No. 22-110 65 of 71
Sec. 34. Section 12-701a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022):
The maximum [annual modification] amount that may be subtracted
under subparagraph (B)(xiii) of subdivision (20) of subsection (a) of
section 12-701 shall be equal to the amount of contributions to all
accounts established pursuant to any qualified state tuition program, as
defined in Section 529(b) of the Internal Revenue Code, established and
maintained by this state or any official, agency or instrumentality of the
state, but shall not exceed five thousand dollars for each individual
taxpayer, or ten thousand dollars for taxpayers filing a joint return. Any
amount of a contribution that is not subtracted by the taxpayer in the
year for which the contribution is made, on or after January 1, 2006, may
be carried forward as a subtraction from income for the succeeding five
years; provided the amount subtracted shall not exceed the maximum
allowed in each subsequent taxable year.
Sec. 35. Subdivision (5) of subsection (c) of section 12-717 of the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
(5) If a trust changes its status from resident to nonresident or from
nonresident to resident, the provisions of subdivisions (1) to (4),
inclusive, of this subsection shall apply, except that the term
"individual" shall be read as "trust", reference to "items of income, gain,
loss or deduction" shall mean the trust's share of such items determined
in accordance with the methods of allocation set forth in section 12-714,
reference to "gain" shall include any modification for includable gain
under [subsection] subdivision (9) of subsection (a) of section 12-701 and
federal adjusted gross income shall be determined as if the trust were
an individual.
Sec. 36. Subsection (f) of section 12-18b of the 2022 supplement to the
general statutes is repealed and the following is substituted in lieu Substitute House Bill No. 5475
Public Act No. 22-110 66 of 71
thereof (Effective October 1, 2022):
(f) For purposes of this section, any real property that is owned by
[the John Dempsey Hospital] The University of Connecticut Health
Center Finance Corporation established pursuant to the provisions of
sections 10a-250 to 10a-263, inclusive, or by one or more subsidiary
corporations established pursuant to subdivision (13) of section 10a-254
and that is free from taxation pursuant to the provisions of section 10a-
259 shall be deemed to be state-owned real property.
Sec. 37. Subsection (c) of section 12-19a of the 2022 supplement to the
general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
(c) As used in this section "total tax levied" means the total real
property tax levy in such town for the fiscal year preceding the fiscal
year in which a grant in lieu of taxes under this section is made, reduced
by the Secretary of the Office of Policy and Management in an amount
equal to all reimbursements certified as payable to such town by the
secretary for real property exemptions and credits on the taxable grand
list or rate bill of such town for the assessment year that corresponds to
that for which the assessed valuation of the state-owned land and
buildings has been provided. For purposes of this section and section
12-19b, any real property which is owned by [the John Dempsey
Hospital] The University of Connecticut Health Center Finance
Corporation established pursuant to the provisions of sections 10a-250
to 10a-263, inclusive, or by one or more subsidiary corporations
established pursuant to subdivision (13) of section 10a-254 and which is
free from taxation pursuant to the provisions of subdivision (13) of
section 10a-259 shall be deemed to be state-owned real property. As
used in this section and section 12-19b, "town" includes borough.
Sec. 38. Section 3-20d of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2022): Substitute House Bill No. 5475
Public Act No. 22-110 67 of 71
No state officer, employee, agency, board or commission, or any
agent thereof, shall incur, for any purpose, any obligation, by order,
contract, lease purchase, installment purchase or any other means,
which anticipates that any gain therefrom or interest payable thereon by
the state or such officer, employee, agency, board or commission, or
agent thereof, shall be excludable from the taxable income of the
recipient of such payments for the purposes of federal or state income
taxation unless, prior to the execution of any such obligation by or on
behalf of the state or such officer, employee, agency, board, commission
or agent, (1) such officer, employee, agency, board or commission, or the
agent thereof, has filed with the Treasurer, and the Treasurer has
approved, documents relating to the transaction which support the
availability of such tax exclusion and which set forth such monitoring
procedures as may be necessary to ensure compliance with any
requirements of the Internal Revenue Code of 1986, as from time to time
amended, or any subsequent corresponding internal revenue code of
the United States, related to the tax-exempt status of such obligation,
and (2) such obligation contains a certificate from the Treasurer to the
effect that the documents required to be filed with and approved by the
Treasurer pursuant to this section have been so filed and approved and
that any monitoring procedures which may be necessary to ensure
compliance with any requirements of the Internal Revenue Code of
1986, as from time to time amended, or any subsequent corresponding
internal revenue code of the United States, related to the tax-exempt
status of such obligation, have been implemented. Any such obligation
which does not contain such a certificate shall not be considered an
obligation of the state of Connecticut or of any officer, employee,
agency, board or commission thereof, or any agent thereof, for any
purpose relating to the exclusion of such obligation, or any gain
therefrom or interest thereon, from the taxable income of the recipient
for the purposes of federal or state income taxation. For the purposes of
this section, "state officer, employee, agency, board or commission, or
any agent thereof", shall include [the John Dempsey Hospital] The Substitute House Bill No. 5475
Public Act No. 22-110 68 of 71
University of Connecticut Health Center Finance Corporation or any
similar organization.
Sec. 39. Subsection (c) of section 4-28f of the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
(c) The trust fund shall be administered by a board of trustees, except
that the board shall suspend its operations from July 1, 2003, to June 30,
2005, inclusive. The board shall consist of seventeen trustees. The
appointment of the initial trustees shall be as follows: (1) The Governor
shall appoint four trustees, one of whom shall serve for a term of one
year from July 1, 2000, two of whom shall serve for a term of two years
from July 1, 2000, and one of whom shall serve for a term of three years
from July 1, 2000; (2) the speaker of the House of Representatives and
the president pro tempore of the Senate each shall appoint two trustees,
one of whom shall serve for a term of two years from July 1, 2000, and
one of whom shall serve for a term of three years from July 1, 2000; (3)
the majority leader of the House of Representatives and the majority
leader of the Senate each shall appoint two trustees, one of whom shall
serve for a term of one year from July 1, 2000, and one of whom shall
serve for a term of three years from July 1, 2000; (4) the minority leader
of the House of Representatives and the minority leader of the Senate
each shall appoint two trustees, one of whom shall serve for a term of
one year from July 1, 2000, and one of whom shall serve for a term of
two years from July 1, 2000; and (5) the Secretary of the Office of Policy
and Management, or the secretary's designee, shall serve as an ex-officio
voting member. Following the expiration of such initial terms,
subsequent trustees shall serve for a term of three years. The period of
suspension of the board's operations from July 1, 2003, to June 30, 2005,
inclusive, shall not be included in the term of any trustee serving on July
1, 2003. The trustees shall serve without compensation except for
reimbursement for necessary expenses incurred in performing their Substitute House Bill No. 5475
Public Act No. 22-110 69 of 71
duties. The board of trustees shall establish rules of procedure for the
conduct of its business which shall include, but not be limited to,
criteria, processes and procedures to be used in selecting programs to
receive money from the trust fund. The trust fund shall be within the
Office of Policy and Management for administrative purposes only. The
board of trustees shall, not later than January first of each year, except
following a fiscal year in which the trust fund does not receive a deposit
from the Tobacco Settlement Fund, [shall] submit a report of its activities
and accomplishments to the joint standing committees of the General
Assembly having cognizance of matters relating to public health and
appropriations and the budgets of state agencies, in accordance with
section 11-4a.
Sec. 40. Subsections (b) and (c) of section 4-66k of the 2022
supplement to the general statutes are repealed and the following is
substituted in lieu thereof (Effective October 1, 2022):
(b) For the fiscal year ending June 30, 2014, funds from the regional
planning incentive account shall be distributed to each regional
planning organization, as defined in section 4-124i of the general
statutes, revision of 1958, revised to January 1, 2013, in the amount of
one hundred twenty-five thousand dollars. Any regional council of
governments that is comprised of any two or more regional planning
organizations that voluntarily consolidate on or before December 31,
2013, shall receive an additional payment in an amount equal to the
amount the regional planning organizations would have received if
such regional planning organizations had not voluntarily consolidated.
(c) For the fiscal years ending June 30, 2015, to June 30, 2021, inclusive,
funds from the regional planning incentive account shall be distributed
to each regional council of governments formed pursuant to section 4-
124j, in the amount of one hundred twenty-five thousand dollars plus
fifty cents per capita, using population information from the most recent
federal decennial census. Any regional council of governments that is Substitute House Bill No. 5475
Public Act No. 22-110 70 of 71
comprised of any two or more regional planning organizations, as
defined in section 4-124i of the general statutes, revision of 1958, revised
to January 1, 2013, that voluntarily consolidated on or before December
31, 2013, shall receive a payment in the amount of one hundred twenty-
five thousand dollars for each such regional planning organization that
voluntarily consolidated on or before said date.
Sec. 41. Section 3-36c of the 2022 supplement to the general statutes is
repealed and the following is substituted in lieu thereof (Effective October
1, 2022):
The Treasurer, on behalf of the trust and for purposes of the trust,
may:
(1) Receive and invest moneys in the trust in any instruments,
obligations, securities or property in accordance with section 3-36d;
(2) Enter into one or more contractual agreements, including
contracts for legal, actuarial, accounting, custodial, advisory,
management, administrative, advertising, marketing and consulting
services for the trust and pay for such services from the assets of the
trust;
(3) Procure insurance in connection with the trust's property, assets,
activities or deposits to the trust;
(4) Apply for, accept and expend gifts, grants or donations from
public or private sources to enable the trust to carry out its objectives;
(5) Adopt regulations in accordance with chapter 54 for purposes of
[public act 21-111] sections 3-36b to 3-36i, inclusive;
(6) Sue and be sued;
(7) Establish one or more funds within the trust; and Substitute House Bill No. 5475
Public Act No. 22-110 71 of 71
(8) Take any other action necessary to carry out the purposes of
[public act 21-111] sections 3-36b to 3-36i, inclusive, and incidental to the
duties imposed on the Treasurer pursuant to [public act 21-111] said
sections.
Sec. 42. Subdivision (1) of subsection (a) of section 31-225a of the 2022
supplement to the general statutes is repealed and the following is
substituted in lieu thereof (Effective October 1, 2022):
(1) "Qualified employer" means each employer subject to this chapter
whose experience record has been chargeable with benefits for at least
one full experience year, with the exception of employers subject to a
flat entry rate of contributions as provided under subsection [(e)] (d) of
this section, employers subject to the maximum contribution rate under
subsection (c) of section 31-273, and reimbursing employers;
Sec. 43. Subsection (h) of section 38a-88a of the 2022 supplement to
the general statutes is repealed and the following is substituted in lieu
thereof (Effective October 1, 2022):
(h) No taxpayer shall be eligible for a credit under this section and
[either] section 12-217e [or section 12-217m] for the same investment. No
two taxpayers shall be eligible for any tax credit with respect to the same
investment, employee or facility.
Sec. 44. (Effective from passage) Section 465 of public act 21-2 of the June
special session shall take effect July 1, 2023, and shall be applicable to
calendar quarters commencing on or after July 1, 2023.