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General Assembly Raised Bill No. 5490
February Session, 2024
LCO No. 2336
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING THE THRESHOLD FOR THE DUES TAX, THE
SALES AND USE TAXES TREATMENT OF CERTAIN MOTOR
VEHICLES AND THE DEDICATION OF A PORTION OF THE REVENUE
GENERATED FROM MEALS SOLD BY AN EATING ESTABLISHMENT,
CATERER OR GROCERY STORE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-543 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2024): 2
(a) There is hereby imposed a tax equivalent to ten per cent of any 3
amount paid as dues or initiation fees to any social, athletic or sporting 4
club. Such tax shall be imposed upon the club receiving such amounts. 5
Reimbursement for such tax shall be collected by the club from the 6
member. Such reimbursement, termed "tax", shall be paid by the 7
member to the club charging the dues or initiation fees. Such tax, when 8
added to the amounts charged, shall be a debt from the member to the 9
club charging such amounts and shall be recoverable at law. The 10
amount of tax reimbursement, when so collected, shall be deemed to be 11
a special fund in trust for the state. [of Connecticut.] 12 Raised Bill No. 5490
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(b) The following shall be exempt from the dues tax: 13
(1) A club [shall be exempt from the dues tax] if the annual dues of a 14
member enjoying full privileges and any initiation fee required of such 15
a member are each [one hundred dollars] two hundred fifty or less; [.] 16
(2) A club sponsored and controlled by a charitable or religious 17
organization, a governmental agency or a nonprofit educational 18
institution; [shall be exempt from the dues tax.] 19
(3) Any society, order or association operating under the lodge 20
system or any local fraternal organization among students of a college 21
or university; [shall be exempt from the dues tax.] and 22
(4) Lawn bowling clubs. [shall be exempt from the dues tax.] 23
Sec. 2. Section 12-412 of the 2024 supplement to the general statutes 24
is amended by adding subdivision (127) as follows (Effective July 1, 2024, 25
and applicable to sales occurring on or after July 1, 2024): 26
(NEW) (127) Sales of and the storage, use or other consumption of (A) 27
any ambulance-type motor vehicle used exclusively to transport any 28
medically incapacitated individual, except any such vehicle used to 29
transport any such individual for payment, and (B) any ambulance 30
operating under a license or certificate issued in accordance with the 31
provisions of section 19a-180. 32
Sec. 3. Subdivision (1) of section 12-408 of the 2024 supplement to the 33
general statutes is repealed and the following is substituted in lieu 34
thereof (Effective July 1, 2024, and applicable to sales occurring on or after 35
July 1, 2024): 36
(1) (A) For the privilege of making any sales, as defined in 37
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 38
for a consideration, a tax is hereby imposed on all retailers at the rate of 39
six and thirty-five-hundredths per cent of the gross receipts of any 40
retailer from the sale of all tangible personal property sold at retail or 41
from the rendering of any services constituting a sale in accordance with 42 Raised Bill No. 5490
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subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 43
rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 44
subdivision; 45
(B) (i) At a rate of fifteen per cent with respect to each transfer of 46
occupancy, from the total amount of rent received by a hotel or lodging 47
house for the first period not exceeding thirty consecutive calendar 48
days; 49
(ii) At a rate of eleven per cent with respect to each transfer of 50
occupancy, from the total amount of rent received by a bed and 51
breakfast establishment for the first period not exceeding thirty 52
consecutive calendar days; 53
(C) With respect to the sale of a motor vehicle to any individual who 54
is a member of the armed forces of the United States and is on full-time 55
active duty in Connecticut and who is considered, under 50 App USC 56
574, a resident of another state, or to any such individual and the spouse 57
thereof, at a rate of four and one-half per cent of the gross receipts of any 58
retailer from such sales, provided such retailer requires and maintains a 59
declaration by such individual, prescribed as to form by the 60
commissioner and bearing notice to the effect that false statements made 61
in such declaration are punishable, or other evidence, satisfactory to the 62
commissioner, concerning the purchaser's state of residence under 50 63
App USC 574; 64
(D) (i) With respect to the sales of computer and data processing 65
services occurring on or after July 1, 2001, at the rate of one per cent, and 66
(ii) with respect to sales of Internet access services, on and after July 1, 67
2001, such services shall be exempt from such tax; 68
(E) (i) With respect to the sales of labor that is otherwise taxable under 69
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 70
12-407 on existing vessels and repair or maintenance services on vessels 71
occurring on and after July 1, 1999, such services shall be exempt from 72
such tax; 73 Raised Bill No. 5490
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(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 74
used for transporting a vessel, at the rate of two and ninety-nine-75
hundredths per cent, except that the sale of a vessel shall be exempt from 76
such tax if such vessel is docked in this state for sixty or fewer days in a 77
calendar year; 78
(iii) With respect to the sale of dyed diesel fuel, as defined in 79
subsection (d) of section 12-487, sold by a marine fuel dock exclusively 80
for marine purposes, at the rate of two and ninety-nine-hundredths per 81
cent; 82
(F) With respect to patient care services for which payment is 83
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 84
at the rate of five and three-fourths per cent and on and after July 1, 2001, 85
such services shall be exempt from such tax; 86
(G) With respect to the rental or leasing of a passenger motor vehicle 87
for a period of thirty consecutive calendar days or less, at a rate of nine 88
and thirty-five-hundredths per cent; 89
(H) With respect to the sale of (i) a motor vehicle for a sales price 90
exceeding [fifty] seventy-five thousand dollars, at a rate of seven and 91
three-fourths per cent on the entire sales price, (ii) jewelry, whether real 92
or imitation, for a sales price exceeding five thousand dollars, at a rate 93
of seven and three-fourths per cent on the entire sales price, and (iii) an 94
article of clothing or footwear intended to be worn on or about the 95
human body, a handbag, luggage, umbrella, wallet or watch for a sales 96
price exceeding one thousand dollars, at a rate of seven and three-97
fourths per cent on the entire sales price. For purposes of this 98
subparagraph, "motor vehicle" has the meaning provided in section 14-99
1, but does not include a motor vehicle subject to the provisions of 100
subparagraph (C) of this subdivision, a motor vehicle having a gross 101
vehicle weight rating over twelve thousand five hundred pounds, or a 102
motor vehicle having a gross vehicle weight rating of twelve thousand 103
five hundred pounds or less that is not used for private passenger 104
purposes, but is designed or used to transport merchandise, freight or 105 Raised Bill No. 5490
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persons in connection with any business enterprise and issued a 106
commercial registration or more specific type of registration by the 107
Department of Motor Vehicles; 108
(I) With respect to the sale of meals, as defined in subdivision (13) of 109
section 12-412, sold by an eating establishment, caterer or grocery store; 110
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 111
such as are ordinarily dispensed at bars and soda fountains, or in 112
connection therewith; in addition to the tax imposed under 113
subparagraph (A) of this subdivision, at the rate of one per cent; 114
(J) The rate of tax imposed by this chapter shall be applicable to all 115
retail sales upon the effective date of such rate, except that a new rate 116
that represents an increase in the rate applicable to the sale shall not 117
apply to any sales transaction wherein a binding sales contract without 118
an escalator clause has been entered into prior to the effective date of the 119
new rate and delivery is made within ninety days after the effective date 120
of the new rate. For the purposes of payment of the tax imposed under 121
this section, any retailer of services taxable under subdivision (37) of 122
subsection (a) of section 12-407, who computes taxable income, for 123
purposes of taxation under the Internal Revenue Code of 1986, or any 124
subsequent corresponding internal revenue code of the United States, 125
as amended from time to time, on an accounting basis that recognizes 126
only cash or other valuable consideration actually received as income 127
and who is liable for such tax only due to the rendering of such services 128
may make payments related to such tax for the period during which 129
such income is received, without penalty or interest, without regard to 130
when such service is rendered; 131
(K) (i) For calendar quarters ending on or after September 30, 2019, 132
the commissioner shall deposit into the regional planning incentive 133
account, established pursuant to section 4-66k, six and seven-tenths per 134
cent of the amounts received by the state from the tax imposed under 135
subparagraph (B) of this subdivision and ten and seven-tenths per cent 136
of the amounts received by the state from the tax imposed under 137
subparagraph (G) of this subdivision; 138 Raised Bill No. 5490
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(ii) For calendar quarters ending on or after September 30, 2018, the 139
commissioner shall deposit into the Tourism Fund established under 140
section 10-395b ten per cent of the amounts received by the state from 141
the tax imposed under subparagraph (B) of this subdivision; 142
(iii) For calendar quarters ending on or after September 30, 2024, the 143
commissioner shall deposit into the Tourism Fund established under 144
section 10-395b fifty per cent of the amounts received by the state from 145
the tax imposed under subparagraph (I) of this subdivision; 146
(L) (i) For calendar months commencing on or after July 1, 2021, but 147
prior to July 1, 2023, the commissioner shall deposit into the municipal 148
revenue sharing account established pursuant to section 4-66l seven and 149
nine-tenths per cent of the amounts received by the state from the tax 150
imposed under subparagraph (A) of this subdivision, including such 151
amounts received on or after July 1, 2023, attributable to the fiscal year 152
ending June 30, 2023; [and] 153
(ii) For calendar months commencing on or after July 1, 2023, the 154
commissioner shall deposit into the Municipal Revenue Sharing Fund 155
established pursuant to section 4-66p seven and nine-tenths per cent of 156
the amounts received by the state from the tax imposed under 157
subparagraph (A) of this subdivision; [and] 158
(M) (i) For calendar months commencing on or after July 1, 2017, the 159
commissioner shall deposit into the Special Transportation Fund 160
established under section 13b-68 seven and nine-tenths per cent of the 161
amounts received by the state from the tax imposed under 162
subparagraph (A) of this subdivision; 163
(ii) For calendar months commencing on or after July 1, 2018, but 164
prior to July 1, 2019, the commissioner shall deposit into the Special 165
Transportation Fund established under section 13b-68 eight per cent of 166
the amounts received by the state from the tax imposed under 167
subparagraphs (A) and (H) of this subdivision on the sale of a motor 168
vehicle; 169 Raised Bill No. 5490
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(iii) For calendar months commencing on or after July 1, 2019, but 170
prior to July 1, 2020, the commissioner shall deposit into the Special 171
Transportation Fund established under section 13b-68 seventeen per 172
cent of the amounts received by the state from the tax imposed under 173
subparagraphs (A) and (H) of this subdivision on the sale of a motor 174
vehicle; 175
(iv) For calendar months commencing on or after July 1, 2020, but 176
prior to July 1, 2021, the commissioner shall deposit into the Special 177
Transportation Fund established under section 13b-68 twenty-five per 178
cent of the amounts received by the state from the tax imposed under 179
subparagraphs (A) and (H) of this subdivision on the sale of a motor 180
vehicle; 181
(v) For calendar months commencing on or after July 1, 2021, but 182
prior to July 1, 2022, the commissioner shall deposit into the Special 183
Transportation Fund established under section 13b-68 seventy-five per 184
cent of the amounts received by the state from the tax imposed under 185
subparagraphs (A) and (H) of this subdivision on the sale of a motor 186
vehicle; and 187
(vi) For calendar months commencing on or after July 1, 2022, the 188
commissioner shall deposit into the Special Transportation Fund 189
established under section 13b-68 one hundred per cent of the amounts 190
received by the state from the tax imposed under subparagraphs (A) 191
and (H) of this subdivision on the sale of a motor vehicle. 192
Sec. 4. Subdivision (1) of section 12-411 of the 2024 supplement to the 193
general statutes is repealed and the following is substituted in lieu 194
thereof (Effective July 1, 2024, and applicable to sales occurring on or after 195
July 1, 2024): 196
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 197
consumption or any other use in this state of tangible personal property 198
purchased from any retailer for storage, acceptance, consumption or any 199
other use in this state, the acceptance or receipt of any services 200
constituting a sale in accordance with subdivision (2) of subsection (a) 201 Raised Bill No. 5490
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of section 12-407, purchased from any retailer for consumption or use in 202
this state, or the storage, acceptance, consumption or any other use in 203
this state of tangible personal property which has been manufactured, 204
fabricated, assembled or processed from materials by a person, either 205
within or without this state, for storage, acceptance, consumption or any 206
other use by such person in this state, to be measured by the sales price 207
of materials, at the rate of six and thirty-five-hundredths per cent of the 208
sales price of such property or services, except, in lieu of said rate, [:] the 209
rates provided in subparagraphs (B) to (I), inclusive, of this subdivision; 210
(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 211
house for the first period not exceeding thirty consecutive calendar 212
days; 213
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 214
establishment for the first period not exceeding thirty consecutive 215
calendar days; 216
(C) With respect to the storage, acceptance, consumption or use in 217
this state of a motor vehicle purchased from any retailer for storage, 218
acceptance, consumption or use in this state by any individual who is a 219
member of the armed forces of the United States and is on full-time 220
active duty in Connecticut and who is considered, under 50 App USC 221
574, a resident of another state, or to any such individual and the spouse 222
of such individual at a rate of four and one-half per cent of the sales price 223
of such vehicle, provided such retailer requires and maintains a 224
declaration by such individual, prescribed as to form by the 225
commissioner and bearing notice to the effect that false statements made 226
in such declaration are punishable, or other evidence, satisfactory to the 227
commissioner, concerning the purchaser's state of residence under 50 228
App USC 574; 229
(D) (i) With respect to the acceptance or receipt in this state of labor 230
that is otherwise taxable under subparagraph (C) or (G) of subdivision 231
(2) of subsection (a) of section 12-407 on existing vessels and repair or 232
maintenance services on vessels occurring on and after July 1, 1999, such 233 Raised Bill No. 5490
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services shall be exempt from such tax; 234
(ii) (I) With respect to the storage, acceptance or other use of a vessel 235
in this state, at the rate of two and ninety-nine-hundredths per cent, 236
except that such storage, acceptance or other use shall be exempt from 237
such tax if such vessel is docked in this state for sixty or fewer days in a 238
calendar year; 239
(II) With respect to the storage, acceptance or other use of a motor for 240
a vessel or a trailer used for transporting a vessel in this state, at the rate 241
of two and ninety-nine-hundredths per cent; 242
(III) With respect to the storage, acceptance or other use of dyed diesel 243
fuel, as defined in subsection (d) of section 12-487, exclusively for 244
marine purposes, at the rate of two and ninety-nine-hundredths per 245
cent; 246
(E) (i) With respect to the acceptance or receipt in this state of 247
computer and data processing services purchased from any retailer for 248
consumption or use in this state occurring on or after July 1, 2001, at the 249
rate of one per cent of such services, and (ii) with respect to the 250
acceptance or receipt in this state of Internet access services, on and after 251
July 1, 2001, such services shall be exempt from such tax; 252
(F) With respect to the acceptance or receipt in this state of patient 253
care services purchased from any retailer for consumption or use in this 254
state for which payment is received by the hospital on or after July 1, 255
1999, and prior to July 1, 2001, at the rate of five and three-fourths per 256
cent and on and after July 1, 2001, such services shall be exempt from 257
such tax; 258
(G) With respect to the rental or leasing of a passenger motor vehicle 259
for a period of thirty consecutive calendar days or less, at a rate of nine 260
and thirty-five-hundredths per cent; 261
(H) With respect to the acceptance or receipt in this state of (i) a motor 262
vehicle for a sales price exceeding [fifty] seventy-five thousand dollars, 263 Raised Bill No. 5490
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at a rate of seven and three-fourths per cent on the entire sales price, (ii) 264
jewelry, whether real or imitation, for a sales price exceeding five 265
thousand dollars, at a rate of seven and three-fourths per cent on the 266
entire sales price, and (iii) an article of clothing or footwear intended to 267
be worn on or about the human body, a handbag, luggage, umbrella, 268
wallet or watch for a sales price exceeding one thousand dollars, at a 269
rate of seven and three-fourths per cent on the entire sales price. For 270
purposes of this subparagraph, "motor vehicle" has the meaning 271
provided in section 14-1, but does not include a motor vehicle subject to 272
the provisions of subparagraph (C) of this subdivision, a motor vehicle 273
having a gross vehicle weight rating over twelve thousand five hundred 274
pounds, or a motor vehicle having a gross vehicle weight rating of 275
twelve thousand five hundred pounds or less that is not used for private 276
passenger purposes, but is designed or used to transport merchandise, 277
freight or persons in connection with any business enterprise and issued 278
a commercial registration or more specific type of registration by the 279
Department of Motor Vehicles; 280
(I) With respect to the acceptance or receipt in this state of meals, as 281
defined in subdivision (13) of section 12-412, sold by an eating 282
establishment, caterer or grocery store; and spirituous, malt or vinous 283
liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 284
at bars and soda fountains, or in connection therewith; in addition to the 285
tax imposed under subparagraph (A) of this subdivision, at the rate of 286
one per cent; 287
(J) (i) For calendar quarters ending on or after September 30, 2019, the 288
commissioner shall deposit into the regional planning incentive 289
account, established pursuant to section 4-66k, six and seven-tenths per 290
cent of the amounts received by the state from the tax imposed under 291
subparagraph (B) of this subdivision and ten and seven-tenths per cent 292
of the amounts received by the state from the tax imposed under 293
subparagraph (G) of this subdivision; 294
(ii) For calendar quarters ending on or after September 30, 2018, the 295
commissioner shall deposit into the Tourism Fund established under 296 Raised Bill No. 5490
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section 10-395b ten per cent of the amounts received by the state from 297
the tax imposed under subparagraph (B) of this subdivision; 298
(K) (i) For calendar months commencing on or after July 1, 2021, but 299
prior to July 1, 2023, the commissioner shall deposit into the municipal 300
revenue sharing account established pursuant to section 4-66l seven and 301
nine-tenths per cent of the amounts received by the state from the tax 302
imposed under subparagraph (A) of this subdivision, including such 303
amounts received on or after July 1, 2023, attributable to the fiscal year 304
ending June 30, 2023; [and] 305
(ii) For calendar months commencing on or after July 1, 2023, the 306
commissioner shall deposit into the Municipal Revenue Sharing Fund 307
established pursuant to section 4-66p seven and nine-tenths per cent of 308
the amounts received by the state from the tax imposed under 309
subparagraph (A) of this subdivision; [and] 310
(iii) For calendar quarters ending on or after September 30, 2024, the 311
commissioner shall deposit into the Tourism Fund established under 312
section 10-395b fifty per cent of the amounts received by the state from 313
the tax imposed under subparagraph (I) of this subdivision; 314
(L) (i) For calendar months commencing on or after July 1, 2017, the 315
commissioner shall deposit into said Special Transportation Fund seven 316
and nine-tenths per cent of the amounts received by the state from the 317
tax imposed under subparagraph (A) of this subdivision; 318
(ii) For calendar months commencing on or after July 1, 2018, but 319
prior to July 1, 2019, the commissioner shall deposit into the Special 320
Transportation Fund established under section 13b-68 eight per cent of 321
the amounts received by the state from the tax imposed under 322
subparagraphs (A) and (H) of this subdivision on the acceptance or 323
receipt in this state of a motor vehicle; 324
(iii) For calendar months commencing on or after July 1, 2019, but 325
prior to July 1, 2020, the commissioner shall deposit into the Special 326
Transportation Fund established under section 13b-68 seventeen per 327 Raised Bill No. 5490
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cent of the amounts received by the state from the tax imposed under 328
subparagraphs (A) and (H) of this subdivision on the acceptance or 329
receipt in this state of a motor vehicle; 330
(iv) For calendar months commencing on or after July 1, 2020, but 331
prior to July 1, 2021, the commissioner shall deposit into the Special 332
Transportation Fund established under section 13b-68 twenty-five per 333
cent of the amounts received by the state from the tax imposed under 334
subparagraphs (A) and (H) of this subdivision on the acceptance or 335
receipt in this state of a motor vehicle; 336
(v) For calendar months commencing on or after July 1, 2021, but 337
prior to July 1, 2022, the commissioner shall deposit into the Special 338
Transportation Fund established under section 13b-68 seventy-five per 339
cent of the amounts received by the state from the tax imposed under 340
subparagraphs (A) and (H) of this subdivision on the acceptance or 341
receipt in this state of a motor vehicle; and 342
(vi) For calendar months commencing on or after July 1, 2022, the 343
commissioner shall deposit into the Special Transportation Fund 344
established under section 13b-68 one hundred per cent of the amounts 345
received by the state from the tax imposed under subparagraphs (A) 346
and (H) of this subdivision on the acceptance or receipt in this state of a 347
motor vehicle. 348
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2024 12-543
Sec. 2 July 1, 2024, and
applicable to sales
occurring on or after July
1, 2024
12-412(127)
Sec. 3 July 1, 2024, and
applicable to sales
occurring on or after July
1, 2024
12-408(1) Raised Bill No. 5490
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Sec. 4 July 1, 2024, and
applicable to sales
occurring on or after July
1, 2024
12-411(1)
Statement of Purpose:
To (1) increase the threshold for the imposition of the dues tax, (2)
exempt ambulance-type motor vehicles and ambulances from the sales
and use taxes, (3) increase the sales price threshold of motor vehicles
subject to a higher sales and use taxes rate, and (4) dedicate a portion of
the revenue generated from the meals tax to the Tourism Fund.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]