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General Assembly Raised Bill No. 5504
February Session, 2024
LCO No. 2932
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING FUNDING FOR THE AMERICA 250
SEMIQUINCENTENNIAL INITIATIVE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (1) of section 12-408 of the 2024 supplement to 1
the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective July 1, 2024, and applicable to sales occurring on or after 3
July 1, 2024): 4
(1) (A) For the privilege of making any sales, as defined in 5
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 6
for a consideration, a tax is hereby imposed on all retailers at the rate of 7
six and thirty-five-hundredths per cent of the gross receipts of any 8
retailer from the sale of all tangible personal property sold at retail or 9
from the rendering of any services constituting a sale in accordance with 10
subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 11
rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 12
subdivision; 13
(B) (i) (I) At a rate of fifteen per cent with respect to each transfer of 14 Raised Bill No. 5504
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occupancy, from the total amount of rent received by a hotel or lodging 15
house for the first period not exceeding thirty consecutive calendar 16
days; and 17
(II) On and after July 1, 2024, through June 30, 2028, in addition to the 18
tax imposed under clause (i)(I) of this subparagraph, at a rate of six-19
hundred-fifteen-thousandths per cent with respect to each transfer of 20
occupancy, from the total amount of rent received by a hotel or lodging 21
house for the first period not exceeding thirty consecutive calendar 22
days; 23
(ii) At a rate of eleven per cent with respect to each transfer of 24
occupancy, from the total amount of rent received by a bed and 25
breakfast establishment for the first period not exceeding thirty 26
consecutive calendar days; 27
(C) With respect to the sale of a motor vehicle to any individual who 28
is a member of the armed forces of the United States and is on full-time 29
active duty in Connecticut and who is considered, under 50 App USC 30
574, a resident of another state, or to any such individual and the spouse 31
thereof, at a rate of four and one-half per cent of the gross receipts of any 32
retailer from such sales, provided such retailer requires and maintains a 33
declaration by such individual, prescribed as to form by the 34
commissioner and bearing notice to the effect that false statements made 35
in such declaration are punishable, or other evidence, satisfactory to the 36
commissioner, concerning the purchaser's state of residence under 50 37
App USC 574; 38
(D) (i) With respect to the sales of computer and data processing 39
services occurring on or after July 1, 2001, at the rate of one per cent, and 40
(ii) with respect to sales of Internet access services, on and after July 1, 41
2001, such services shall be exempt from such tax; 42
(E) (i) With respect to the sales of labor that is otherwise taxable under 43
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 44
12-407 on existing vessels and repair or maintenance services on vessels 45
occurring on and after July 1, 1999, such services shall be exempt from 46 Raised Bill No. 5504
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such tax; 47
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 48
used for transporting a vessel, at the rate of two and ninety-nine-49
hundredths per cent, except that the sale of a vessel shall be exempt from 50
such tax if such vessel is docked in this state for sixty or fewer days in a 51
calendar year; 52
(iii) With respect to the sale of dyed diesel fuel, as defined in 53
subsection (d) of section 12-487, sold by a marine fuel dock exclusively 54
for marine purposes, at the rate of two and ninety-nine-hundredths per 55
cent; 56
(F) With respect to patient care services for which payment is 57
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 58
at the rate of five and three-fourths per cent and on and after July 1, 2001, 59
such services shall be exempt from such tax; 60
(G) With respect to the rental or leasing of a passenger motor vehicle 61
for a period of thirty consecutive calendar days or less, (i) at a rate of 62
nine and thirty-five-hundredths per cent, and (ii) on and after July 1, 63
2024, through June 30, 2028, in addition to the tax imposed under clause 64
(i) of this subparagraph, at a rate of six-hundred-fifteen-thousandths per 65
cent; 66
(H) With respect to the sale of (i) a motor vehicle for a sales price 67
exceeding fifty thousand dollars, at a rate of seven and three-fourths per 68
cent on the entire sales price, (ii) jewelry, whether real or imitation, for 69
a sales price exceeding five thousand dollars, at a rate of seven and 70
three-fourths per cent on the entire sales price, and (iii) an article of 71
clothing or footwear intended to be worn on or about the human body, 72
a handbag, luggage, umbrella, wallet or watch for a sales price 73
exceeding one thousand dollars, at a rate of seven and three-fourths per 74
cent on the entire sales price. For purposes of this subparagraph, "motor 75
vehicle" has the meaning provided in section 14-1, but does not include 76
a motor vehicle subject to the provisions of subparagraph (C) of this 77
subdivision, a motor vehicle having a gross vehicle weight rating over 78 Raised Bill No. 5504
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twelve thousand five hundred pounds, or a motor vehicle having a 79
gross vehicle weight rating of twelve thousand five hundred pounds or 80
less that is not used for private passenger purposes, but is designed or 81
used to transport merchandise, freight or persons in connection with 82
any business enterprise and issued a commercial registration or more 83
specific type of registration by the Department of Motor Vehicles; 84
(I) With respect to the sale of meals, as defined in subdivision (13) of 85
section 12-412, sold by an eating establishment, caterer or grocery store; 86
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 87
such as are ordinarily dispensed at bars and soda fountains, or in 88
connection therewith; in addition to the tax imposed under 89
subparagraph (A) of this subdivision, at the rate of one per cent; 90
(J) The rate of tax imposed by this chapter shall be applicable to all 91
retail sales upon the effective date of such rate, except that a new rate 92
that represents an increase in the rate applicable to the sale shall not 93
apply to any sales transaction wherein a binding sales contract without 94
an escalator clause has been entered into prior to the effective date of the 95
new rate and delivery is made within ninety days after the effective date 96
of the new rate. For the purposes of payment of the tax imposed under 97
this section, any retailer of services taxable under subdivision (37) of 98
subsection (a) of section 12-407, who computes taxable income, for 99
purposes of taxation under the Internal Revenue Code of 1986, or any 100
subsequent corresponding internal revenue code of the United States, 101
as amended from time to time, on an accounting basis that recognizes 102
only cash or other valuable consideration actually received as income 103
and who is liable for such tax only due to the rendering of such services 104
may make payments related to such tax for the period during which 105
such income is received, without penalty or interest, without regard to 106
when such service is rendered; 107
(K) (i) For calendar quarters ending on or after September 30, 2019, 108
the commissioner shall deposit into the regional planning incentive 109
account, established pursuant to section 4-66k, six and seven-tenths per 110
cent of the amounts received by the state from the tax imposed under 111 Raised Bill No. 5504
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[subparagraph (B)] subparagraphs (B)(i)(I) and (B)(ii) of this subdivision 112
and ten and seven-tenths per cent of the amounts received by the state 113
from the tax imposed under subparagraph (G)(i) of this subdivision; 114
(ii) For calendar quarters ending on or after September 30, 2018, the 115
commissioner shall deposit into the Tourism Fund established under 116
section 10-395b ten per cent of the amounts received by the state from 117
the tax imposed under [subparagraph (B)] subparagraphs (B)(i)(I) and 118
(B)(ii) of this subdivision; 119
(L) (i) For calendar months commencing on or after July 1, 2021, but 120
prior to July 1, 2023, the commissioner shall deposit into the municipal 121
revenue sharing account established pursuant to section 4-66l seven and 122
nine-tenths per cent of the amounts received by the state from the tax 123
imposed under subparagraph (A) of this subdivision, including such 124
amounts received on or after July 1, 2023, attributable to the fiscal year 125
ending June 30, 2023; [and] 126
(ii) For calendar months commencing on or after July 1, 2023, the 127
commissioner shall deposit into the Municipal Revenue Sharing Fund 128
established pursuant to section 4-66p seven and nine-tenths per cent of 129
the amounts received by the state from the tax imposed under 130
subparagraph (A) of this subdivision; [and] 131
(M) (i) For calendar months commencing on or after July 1, 2017, the 132
commissioner shall deposit into the Special Transportation Fund 133
established under section 13b-68 seven and nine-tenths per cent of the 134
amounts received by the state from the tax imposed under 135
subparagraph (A) of this subdivision; 136
(ii) For calendar months commencing on or after July 1, 2018, but 137
prior to July 1, 2019, the commissioner shall deposit into the Special 138
Transportation Fund established under section 13b-68 eight per cent of 139
the amounts received by the state from the tax imposed under 140
subparagraphs (A) and (H) of this subdivision on the sale of a motor 141
vehicle; 142 Raised Bill No. 5504
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(iii) For calendar months commencing on or after July 1, 2019, but 143
prior to July 1, 2020, the commissioner shall deposit into the Special 144
Transportation Fund established under section 13b-68 seventeen per 145
cent of the amounts received by the state from the tax imposed under 146
subparagraphs (A) and (H) of this subdivision on the sale of a motor 147
vehicle; 148
(iv) For calendar months commencing on or after July 1, 2020, but 149
prior to July 1, 2021, the commissioner shall deposit into the Special 150
Transportation Fund established under section 13b-68 twenty-five per 151
cent of the amounts received by the state from the tax imposed under 152
subparagraphs (A) and (H) of this subdivision on the sale of a motor 153
vehicle; 154
(v) For calendar months commencing on or after July 1, 2021, but 155
prior to July 1, 2022, the commissioner shall deposit into the Special 156
Transportation Fund established under section 13b-68 seventy-five per 157
cent of the amounts received by the state from the tax imposed under 158
subparagraphs (A) and (H) of this subdivision on the sale of a motor 159
vehicle; [and] 160
(vi) For calendar months commencing on or after July 1, 2022, the 161
commissioner shall deposit into the Special Transportation Fund 162
established under section 13b-68 one hundred per cent of the amounts 163
received by the state from the tax imposed under subparagraphs (A) 164
and (H) of this subdivision on the sale of a motor vehicle; and 165
(N) For calendar months commencing on or after July 1, 2024, but 166
prior to July 1, 2028, the commissioner shall deposit into the America 167
250 account established under section 3 of this act the amounts received 168
by the state from the tax imposed under subparagraphs (B)(i)(II) and 169
(G)(ii) of this subdivision. 170
Sec. 2. Subdivision (1) of section 12-411 of the 2024 supplement to the 171
general statutes is repealed and the following is substituted in lieu 172
thereof (Effective July 1, 2024, and applicable to sales occurring on or after 173
July 1, 2024): 174 Raised Bill No. 5504
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(1) (A) An excise tax is hereby imposed on the storage, acceptance, 175
consumption or any other use in this state of tangible personal property 176
purchased from any retailer for storage, acceptance, consumption or any 177
other use in this state, the acceptance or receipt of any services 178
constituting a sale in accordance with subdivision (2) of subsection (a) 179
of section 12-407, purchased from any retailer for consumption or use in 180
this state, or the storage, acceptance, consumption or any other use in 181
this state of tangible personal property which has been manufactured, 182
fabricated, assembled or processed from materials by a person, either 183
within or without this state, for storage, acceptance, consumption or any 184
other use by such person in this state, to be measured by the sales price 185
of materials, at the rate of six and thirty-five-hundredths per cent of the 186
sales price of such property or services, except, in lieu of said rate, [:] the 187
rates provided in subparagraphs (B) to (I), inclusive, of this subdivision; 188
(B) (i) (I) At a rate of fifteen per cent of the rent paid to a hotel or 189
lodging house for the first period not exceeding thirty consecutive 190
calendar days; and 191
(II) On and after July 1, 2024, through June 30, 2028, in addition to the 192
tax imposed under clause (i)(I) of this subparagraph, at a rate of six-193
hundred-fifteen-thousandths per cent of the rent paid to a hotel or 194
lodging house for the first period not exceeding thirty consecutive 195
calendar days; 196
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 197
establishment for the first period not exceeding thirty consecutive 198
calendar days; 199
(C) With respect to the storage, acceptance, consumption or use in 200
this state of a motor vehicle purchased from any retailer for storage, 201
acceptance, consumption or use in this state by any individual who is a 202
member of the armed forces of the United States and is on full-time 203
active duty in Connecticut and who is considered, under 50 App USC 204
574, a resident of another state, or to any such individual and the spouse 205
of such individual at a rate of four and one-half per cent of the sales price 206 Raised Bill No. 5504
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of such vehicle, provided such retailer requires and maintains a 207
declaration by such individual, prescribed as to form by the 208
commissioner and bearing notice to the effect that false statements made 209
in such declaration are punishable, or other evidence, satisfactory to the 210
commissioner, concerning the purchaser's state of residence under 50 211
App USC 574; 212
(D) (i) With respect to the acceptance or receipt in this state of labor 213
that is otherwise taxable under subparagraph (C) or (G) of subdivision 214
(2) of subsection (a) of section 12-407 on existing vessels and repair or 215
maintenance services on vessels occurring on and after July 1, 1999, such 216
services shall be exempt from such tax; 217
(ii) (I) With respect to the storage, acceptance or other use of a vessel 218
in this state, at the rate of two and ninety-nine-hundredths per cent, 219
except that such storage, acceptance or other use shall be exempt from 220
such tax if such vessel is docked in this state for sixty or fewer days in a 221
calendar year; 222
(II) With respect to the storage, acceptance or other use of a motor for 223
a vessel or a trailer used for transporting a vessel in this state, at the rate 224
of two and ninety-nine-hundredths per cent; 225
(III) With respect to the storage, acceptance or other use of dyed diesel 226
fuel, as defined in subsection (d) of section 12-487, exclusively for 227
marine purposes, at the rate of two and ninety-nine-hundredths per 228
cent; 229
(E) (i) With respect to the acceptance or receipt in this state of 230
computer and data processing services purchased from any retailer for 231
consumption or use in this state occurring on or after July 1, 2001, at the 232
rate of one per cent of such services, and (ii) with respect to the 233
acceptance or receipt in this state of Internet access services, on and after 234
July 1, 2001, such services shall be exempt from such tax; 235
(F) With respect to the acceptance or receipt in this state of patient 236
care services purchased from any retailer for consumption or use in this 237 Raised Bill No. 5504
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state for which payment is received by the hospital on or after July 1, 238
1999, and prior to July 1, 2001, at the rate of five and three-fourths per 239
cent and on and after July 1, 2001, such services shall be exempt from 240
such tax; 241
(G) With respect to the rental or leasing of a passenger motor vehicle 242
for a period of thirty consecutive calendar days or less, (i) at a rate of 243
nine and thirty-five-hundredths per cent, and (ii) on and after July 1, 244
2024, through June 30, 2028, in addition to the tax imposed under clause 245
(i) of this subparagraph, at a rate of six-hundred-fifteen-thousandths per 246
cent; 247
(H) With respect to the acceptance or receipt in this state of (i) a motor 248
vehicle for a sales price exceeding fifty thousand dollars, at a rate of 249
seven and three-fourths per cent on the entire sales price, (ii) jewelry, 250
whether real or imitation, for a sales price exceeding five thousand 251
dollars, at a rate of seven and three-fourths per cent on the entire sales 252
price, and (iii) an article of clothing or footwear intended to be worn on 253
or about the human body, a handbag, luggage, umbrella, wallet or 254
watch for a sales price exceeding one thousand dollars, at a rate of seven 255
and three-fourths per cent on the entire sales price. For purposes of this 256
subparagraph, "motor vehicle" has the meaning provided in section 14-257
1, but does not include a motor vehicle subject to the provisions of 258
subparagraph (C) of this subdivision, a motor vehicle having a gross 259
vehicle weight rating over twelve thousand five hundred pounds, or a 260
motor vehicle having a gross vehicle weight rating of twelve thousand 261
five hundred pounds or less that is not used for private passenger 262
purposes, but is designed or used to transport merchandise, freight or 263
persons in connection with any business enterprise and issued a 264
commercial registration or more specific type of registration by the 265
Department of Motor Vehicles; 266
(I) With respect to the acceptance or receipt in this state of meals, as 267
defined in subdivision (13) of section 12-412, sold by an eating 268
establishment, caterer or grocery store; and spirituous, malt or vinous 269
liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 270 Raised Bill No. 5504
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at bars and soda fountains, or in connection therewith; in addition to the 271
tax imposed under subparagraph (A) of this subdivision, at the rate of 272
one per cent; 273
(J) (i) For calendar quarters ending on or after September 30, 2019, the 274
commissioner shall deposit into the regional planning incentive 275
account, established pursuant to section 4-66k, six and seven-tenths per 276
cent of the amounts received by the state from the tax imposed under 277
[subparagraph (B)] subparagraphs (B)(i)(I) and (B)(ii) of this subdivision 278
and ten and seven-tenths per cent of the amounts received by the state 279
from the tax imposed under subparagraph (G)(i) of this subdivision; 280
(ii) For calendar quarters ending on or after September 30, 2018, the 281
commissioner shall deposit into the Tourism Fund established under 282
section 10-395b ten per cent of the amounts received by the state from 283
the tax imposed under [subparagraph (B)] subparagraphs (B)(i)(I) and 284
(B)(ii) of this subdivision; 285
(K) (i) For calendar months commencing on or after July 1, 2021, but 286
prior to July 1, 2023, the commissioner shall deposit into the municipal 287
revenue sharing account established pursuant to section 4-66l seven and 288
nine-tenths per cent of the amounts received by the state from the tax 289
imposed under subparagraph (A) of this subdivision, including such 290
amounts received on or after July 1, 2023, attributable to the fiscal year 291
ending June 30, 2023; [and] 292
(ii) For calendar months commencing on or after July 1, 2023, the 293
commissioner shall deposit into the Municipal Revenue Sharing Fund 294
established pursuant to section 4-66p seven and nine-tenths per cent of 295
the amounts received by the state from the tax imposed under 296
subparagraph (A) of this subdivision; [and] 297
(L) (i) For calendar months commencing on or after July 1, 2017, the 298
commissioner shall deposit into said Special Transportation Fund seven 299
and nine-tenths per cent of the amounts received by the state from the 300
tax imposed under subparagraph (A) of this subdivision; 301 Raised Bill No. 5504
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(ii) For calendar months commencing on or after July 1, 2018, but 302
prior to July 1, 2019, the commissioner shall deposit into the Special 303
Transportation Fund established under section 13b-68 eight per cent of 304
the amounts received by the state from the tax imposed under 305
subparagraphs (A) and (H) of this subdivision on the acceptance or 306
receipt in this state of a motor vehicle; 307
(iii) For calendar months commencing on or after July 1, 2019, but 308
prior to July 1, 2020, the commissioner shall deposit into the Special 309
Transportation Fund established under section 13b-68 seventeen per 310
cent of the amounts received by the state from the tax imposed under 311
subparagraphs (A) and (H) of this subdivision on the acceptance or 312
receipt in this state of a motor vehicle; 313
(iv) For calendar months commencing on or after July 1, 2020, but 314
prior to July 1, 2021, the commissioner shall deposit into the Special 315
Transportation Fund established under section 13b-68 twenty-five per 316
cent of the amounts received by the state from the tax imposed under 317
subparagraphs (A) and (H) of this subdivision on the acceptance or 318
receipt in this state of a motor vehicle; 319
(v) For calendar months commencing on or after July 1, 2021, but 320
prior to July 1, 2022, the commissioner shall deposit into the Special 321
Transportation Fund established under section 13b-68 seventy-five per 322
cent of the amounts received by the state from the tax imposed under 323
subparagraphs (A) and (H) of this subdivision on the acceptance or 324
receipt in this state of a motor vehicle; [and] 325
(vi) For calendar months commencing on or after July 1, 2022, the 326
commissioner shall deposit into the Special Transportation Fund 327
established under section 13b-68 one hundred per cent of the amounts 328
received by the state from the tax imposed under subparagraphs (A) 329
and (H) of this subdivision on the acceptance or receipt in this state of a 330
motor vehicle; and 331
(M) For calendar months commencing on or after July 1, 2024, but 332
prior to July 1, 2028, the commissioner shall deposit into the America 333 Raised Bill No. 5504
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250 account established under section 3 of this act the amounts received 334
by the state from the tax imposed under subparagraphs (B)(i)(II) and 335
(G)(ii) of this subdivision. 336
Sec. 3. (NEW) (Effective July 1, 2024) There is established an account 337
to be known as the "America 250 account" which shall be a separate, 338
nonlapsing account. The account shall contain any moneys required by 339
law to be deposited in the account. Moneys in the account shall be 340
expended by the Secretary of the Office of Policy and Management for 341
the purposes of funding the America 250 semiquincentennial initiative. 342
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2024, and
applicable to sales
occurring on or after July
1, 2024
12-408(1)
Sec. 2 July 1, 2024, and
applicable to sales
occurring on or after July
1, 2024
12-411(1)
Sec. 3 July 1, 2024 New section
Statement of Purpose:
To temporarily increase the rates of the room occupancy tax on hotels
and lodging houses and the sales and use taxes on the rental or leasing
of a passenger motor vehicle and dedicate the additional revenue
generated from such increases to be used for the America 250
semiquincentennial initiative.
[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.]