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General Assembly Raised Bill No. 269
February Session, 2024
LCO No. 1990
Referred to Committee on HOUSING
Introduced by:
(HSG)
AN ACT REDUCING THE SALES AND USE TAXES FOR CERTAIN
GOODS USED IN NEW HOUSING CONSTRUCTION.
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the general statutes is repealed and the following is substituted in lieu 2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) At a rate of fifteen per cent with respect to each transfer of 14
occupancy, from the total amount of rent received by a hotel or lodging 15 Raised Bill No. 269
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house for the first period not exceeding thirty consecutive calendar 16
days; 17
(ii) At a rate of eleven per cent with respect to each transfer of 18
occupancy, from the total amount of rent received by a bed and 19
breakfast establishment for the first period not exceeding thirty 20
consecutive calendar days; 21
(C) With respect to the sale of a motor vehicle to any individual who 22
is a member of the armed forces of the United States and is on full-time 23
active duty in Connecticut and who is considered, under 50 App USC 24
574, a resident of another state, or to any such individual and the spouse 25
thereof, at a rate of four and one-half per cent of the gross receipts of any 26
retailer from such sales, provided such retailer requires and maintains a 27
declaration by such individual, prescribed as to form by the 28
commissioner and bearing notice to the effect that false statements made 29
in such declaration are punishable, or other evidence, satisfactory to the 30
commissioner, concerning the purchaser's state of residence under 50 31
App USC 574; 32
(D) (i) With respect to the sales of computer and data processing 33
services occurring on or after July 1, 2001, at the rate of one per cent, and 34
(ii) with respect to sales of Internet access services, on and after July 1, 35
2001, such services shall be exempt from such tax; 36
(E) (i) With respect to the sales of labor that is otherwise taxable under 37
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 38
12-407 on existing vessels and repair or maintenance services on vessels 39
occurring on and after July 1, 1999, such services shall be exempt from 40
such tax; 41
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 42
used for transporting a vessel, at the rate of two and ninety-nine-43
hundredths per cent, except that the sale of a vessel shall be exempt from 44
such tax if such vessel is docked in this state for sixty or fewer days in a 45
calendar year; 46 Raised Bill No. 269
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(iii) With respect to the sale of dyed diesel fuel, as defined in 47
subsection (d) of section 12-487, sold by a marine fuel dock exclusively 48
for marine purposes, at the rate of two and ninety-nine-hundredths per 49
cent; 50
(F) With respect to patient care services for which payment is 51
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 52
at the rate of five and three-fourths per cent and on and after July 1, 2001, 53
such services shall be exempt from such tax; 54
(G) With respect to the rental or leasing of a passenger motor vehicle 55
for a period of thirty consecutive calendar days or less, at a rate of nine 56
and thirty-five-hundredths per cent; 57
(H) With respect to the sale of (i) a motor vehicle for a sales price 58
exceeding fifty thousand dollars, at a rate of seven and three-fourths per 59
cent on the entire sales price, (ii) jewelry, whether real or imitation, for 60
a sales price exceeding five thousand dollars, at a rate of seven and 61
three-fourths per cent on the entire sales price, and (iii) an article of 62
clothing or footwear intended to be worn on or about the human body, 63
a handbag, luggage, umbrella, wallet or watch for a sales price 64
exceeding one thousand dollars, at a rate of seven and three-fourths per 65
cent on the entire sales price. For purposes of this subparagraph, "motor 66
vehicle" has the meaning provided in section 14-1, but does not include 67
a motor vehicle subject to the provisions of subparagraph (C) of this 68
subdivision, a motor vehicle having a gross vehicle weight rating over 69
twelve thousand five hundred pounds, or a motor vehicle having a 70
gross vehicle weight rating of twelve thousand five hundred pounds or 71
less that is not used for private passenger purposes, but is designed or 72
used to transport merchandise, freight or persons in connection with 73
any business enterprise and issued a commercial registration or more 74
specific type of registration by the Department of Motor Vehicles; 75
(I) With respect to the sale of meals, as defined in subdivision (13) of 76
section 12-412, sold by an eating establishment, caterer or grocery store; 77
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 78 Raised Bill No. 269
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such as are ordinarily dispensed at bars and soda fountains, or in 79
connection therewith; in addition to the tax imposed under 80
subparagraph (A) of this subdivision, at the rate of one per cent; 81
(J) With respect to the sale of tangible personal property purchased 82
for the construction of a new residential development project, at the rate 83
of three per cent, provided such project contains not fewer than fifty 84
dwelling units of affordable housing, as defined in section 8-39a, except 85
that the provisions of this subparagraph shall not apply to a project that 86
qualifies for an exemption under section 12-412; 87
[(J)] (K) The rate of tax imposed by this chapter shall be applicable to 88
all retail sales upon the effective date of such rate, except that a new rate 89
that represents an increase in the rate applicable to the sale shall not 90
apply to any sales transaction wherein a binding sales contract without 91
an escalator clause has been entered into prior to the effective date of the 92
new rate and delivery is made within ninety days after the effective date 93
of the new rate. For the purposes of payment of the tax imposed under 94
this section, any retailer of services taxable under subdivision (37) of 95
subsection (a) of section 12-407, who computes taxable income, for 96
purposes of taxation under the Internal Revenue Code of 1986, or any 97
subsequent corresponding internal revenue code of the United States, 98
as amended from time to time, on an accounting basis that recognizes 99
only cash or other valuable consideration actually received as income 100
and who is liable for such tax only due to the rendering of such services 101
may make payments related to such tax for the period during which 102
such income is received, without penalty or interest, without regard to 103
when such service is rendered; 104
[(K)] (L) (i) For calendar quarters ending on or after September 30, 105
2019, the commissioner shall deposit into the regional planning 106
incentive account, established pursuant to section 4-66k, six and seven-107
tenths per cent of the amounts received by the state from the tax 108
imposed under subparagraph (B) of this subdivision and ten and seven-109
tenths per cent of the amounts received by the state from the tax 110
imposed under subparagraph (G) of this subdivision; 111 Raised Bill No. 269
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(ii) For calendar quarters ending on or after September 30, 2018, the 112
commissioner shall deposit into the Tourism Fund established under 113
section 10-395b ten per cent of the amounts received by the state from 114
the tax imposed under subparagraph (B) of this subdivision; 115
[(L)] (M) (i) For calendar months commencing on or after July 1, 2021, 116
but prior to July 1, 2023, the commissioner shall deposit into the 117
municipal revenue sharing account established pursuant to section 4-66l 118
seven and nine-tenths per cent of the amounts received by the state from 119
the tax imposed under subparagraph (A) of this subdivision, including 120
such amounts received on or after July 1, 2023, attributable to the fiscal 121
year ending June 30, 2023; and 122
(ii) For calendar months commencing on or after July 1, 2023, the 123
commissioner shall deposit into the Municipal Revenue Sharing Fund 124
established pursuant to section 4-66p seven and nine-tenths per cent of 125
the amounts received by the state from the tax imposed under 126
subparagraph (A) of this subdivision; and 127
[(M)] (N) (i) For calendar months commencing on or after July 1, 2017, 128
the commissioner shall deposit into the Special Transportation Fund 129
established under section 13b-68 seven and nine-tenths per cent of the 130
amounts received by the state from the tax impo sed under 131
subparagraph (A) of this subdivision; 132
(ii) For calendar months commencing on or after July 1, 2018, but 133
prior to July 1, 2019, the commissioner shall deposit into the Special 134
Transportation Fund established under section 13b-68 eight per cent of 135
the amounts received by the state from the tax imposed under 136
subparagraphs (A) and (H) of this subdivision on the sale of a motor 137
vehicle; 138
(iii) For calendar months commencing on or after July 1, 2019, but 139
prior to July 1, 2020, the commissioner shall deposit into the Special 140
Transportation Fund established under section 13b-68 seventeen per 141
cent of the amounts received by the state from the tax imposed under 142
subparagraphs (A) and (H) of this subdivision on the sale of a motor 143 Raised Bill No. 269
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vehicle; 144
(iv) For calendar months commencing on or after July 1, 2020, but 145
prior to July 1, 2021, the commissioner shall deposit into the Special 146
Transportation Fund established under section 13b-68 twenty-five per 147
cent of the amounts received by the state from the tax imposed under 148
subparagraphs (A) and (H) of this subdivision on the sale of a motor 149
vehicle; 150
(v) For calendar months commencing on or after July 1, 2021, but 151
prior to July 1, 2022, the commissioner shall deposit into the Special 152
Transportation Fund established under section 13b-68 seventy-five per 153
cent of the amounts received by the state from the tax imposed under 154
subparagraphs (A) and (H) of this subdivision on the sale of a motor 155
vehicle; and 156
(vi) For calendar months commencing on or after July 1, 2022, the 157
commissioner shall deposit into the Special Transportation Fund 158
established under section 13b-68 one hundred per cent of the amounts 159
received by the state from the tax imposed under subparagraphs (A) 160
and (H) of this subdivision on the sale of a motor vehicle. 161
Sec. 2. Subdivision (1) of section 12-411 of the 2024 supplement to the 162
general statutes is repealed and the following is substituted in lieu 163
thereof (Effective July 1, 2024, and applicable to sales occurring on or after 164
July 1, 2024): 165
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 166
consumption or any other use in this state of tangible personal property 167
purchased from any retailer for storage, acceptance, consumption or any 168
other use in this state, the acceptance or receipt of any services 169
constituting a sale in accordance with subdivision (2) of subsection (a) 170
of section 12-407, purchased from any retailer for consumption or use in 171
this state, or the storage, acceptance, consumption or any other use in 172
this state of tangible personal property which has been manufactured, 173
fabricated, assembled or processed from materials by a person, either 174
within or without this state, for storage, acceptance, consumption or any 175 Raised Bill No. 269
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other use by such person in this state, to be measured by the sales price 176
of materials, at the rate of six and thirty-five-hundredths per cent of the 177
sales price of such property or services, except, in lieu of said rate: 178
(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 179
house for the first period not exceeding thirty consecutive calendar 180
days; 181
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 182
establishment for the first period not exceeding thirty consecutive 183
calendar days; 184
(C) With respect to the storage, acceptance, consumption or use in 185
this state of a motor vehicle purchased from any retailer for storage, 186
acceptance, consumption or use in this state by any individual who is a 187
member of the armed forces of the United States and is on full-time 188
active duty in Connecticut and who is considered, under 50 App USC 189
574, a resident of another state, or to any such individual and the spouse 190
of such individual at a rate of four and one-half per cent of the sales price 191
of such vehicle, provided such retailer requires and maintains a 192
declaration by such individual, prescribed as to form by the 193
commissioner and bearing notice to the effect that false statements made 194
in such declaration are punishable, or other evidence, satisfactory to the 195
commissioner, concerning the purchaser's state of residence under 50 196
App USC 574; 197
(D) (i) With respect to the acceptance or receipt in this state of labor 198
that is otherwise taxable under subparagraph (C) or (G) of subdivision 199
(2) of subsection (a) of section 12-407 on existing vessels and repair or 200
maintenance services on vessels occurring on and after July 1, 1999, such 201
services shall be exempt from such tax; 202
(ii) (I) With respect to the storage, acceptance or other use of a vessel 203
in this state, at the rate of two and ninety-nine-hundredths per cent, 204
except that such storage, acceptance or other use shall be exempt from 205
such tax if such vessel is docked in this state for sixty or fewer days in a 206
calendar year; 207 Raised Bill No. 269
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(II) With respect to the storage, acceptance or other use of a motor for 208
a vessel or a trailer used for transporting a vessel in this state, at the rate 209
of two and ninety-nine-hundredths per cent; 210
(III) With respect to the storage, acceptance or other use of dyed diesel 211
fuel, as defined in subsection (d) of section 12-487, exclusively for 212
marine purposes, at the rate of two and ninety-nine-hundredths per 213
cent; 214
(E) (i) With respect to the acceptance or receipt in this state of 215
computer and data processing services purchased from any retailer for 216
consumption or use in this state occurring on or after July 1, 2001, at the 217
rate of one per cent of such services, and (ii) with respect to the 218
acceptance or receipt in this state of Internet access services, on and after 219
July 1, 2001, such services shall be exempt from such tax; 220
(F) With respect to the acceptance or receipt in this state of patient 221
care services purchased from any retailer for consumption or use in this 222
state for which payment is received by the hospital on or after July 1, 223
1999, and prior to July 1, 2001, at the rate of five and three-fourths per 224
cent and on and after July 1, 2001, such services shall be exempt from 225
such tax; 226
(G) With respect to the rental or leasing of a passenger motor vehicle 227
for a period of thirty consecutive calendar days or less, at a rate of nine 228
and thirty-five-hundredths per cent; 229
(H) With respect to the acceptance or receipt in this state of (i) a motor 230
vehicle for a sales price exceeding fifty thousand dollars, at a rate of 231
seven and three-fourths per cent on the entire sales price, (ii) jewelry, 232
whether real or imitation, for a sales price exceeding five thousand 233
dollars, at a rate of seven and three-fourths per cent on the entire sales 234
price, and (iii) an article of clothing or footwear intended to be worn on 235
or about the human body, a handbag, luggage, umbrella, wallet or 236
watch for a sales price exceeding one thousand dollars, at a rate of seven 237
and three-fourths per cent on the entire sales price. For purposes of this 238
subparagraph, "motor vehicle" has the meaning provided in section 14-239 Raised Bill No. 269
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1, but does not include a motor vehicle subject to the provisions of 240
subparagraph (C) of this subdivision, a motor vehicle having a gross 241
vehicle weight rating over twelve thousand five hundred pounds, or a 242
motor vehicle having a gross vehicle weight rating of twelve thousand 243
five hundred pounds or less that is not used for private passenger 244
purposes, but is designed or used to transport merchandise, freight or 245
persons in connection with any business enterprise and issued a 246
commercial registration or more specific type of registration by the 247
Department of Motor Vehicles; 248
(I) With respect to the acceptance or receipt in this state of meals, as 249
defined in subdivision (13) of section 12-412, sold by an eating 250
establishment, caterer or grocery store; and spirituous, malt or vinous 251
liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 252
at bars and soda fountains, or in connection therewith; in addition to the 253
tax imposed under subparagraph (A) of this subdivision, at the rate of 254
one per cent; 255
(J) With respect to the storage, use or other consumption of tangible 256
personal property for the construction of a new residential development 257
project at the rate of three per cent, provided such project contains not 258
fewer than fifty dwelling units of affordable housing, as defined in 259
section 8-39a, except that the provisions of this subparagraph shall not 260
apply to a project that qualifies for an exemption under section 12-412; 261
[(J)] (K) (i) For calendar quarters ending on or after September 30, 262
2019, the commissioner shall deposit into the regional planning 263
incentive account, established pursuant to section 4-66k, six and seven-264
tenths per cent of the amounts received by the state from the tax 265
imposed under subparagraph (B) of this subdivision and ten and seven-266
tenths per cent of the amounts received by the state from the tax 267
imposed under subparagraph (G) of this subdivision; 268
(ii) For calendar quarters ending on or after September 30, 2018, the 269
commissioner shall deposit into the Tourism Fund established under 270
section 10-395b ten per cent of the amounts received by the state from 271 Raised Bill No. 269
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the tax imposed under subparagraph (B) of this subdivision; 272
[(K)] (L) (i) For calendar months commencing on or after July 1, 2021, 273
but prior to July 1, 2023, the commissioner shall deposit into the 274
municipal revenue sharing account established pursuant to section 4-66l 275
seven and nine-tenths per cent of the amounts received by the state from 276
the tax imposed under subparagraph (A) of this subdivision, including 277
such amounts received on or after July 1, 2023, attributable to the fiscal 278
year ending June 30, 2023; and 279
(ii) For calendar months commencing on or after July 1, 2023, the 280
commissioner shall deposit into the Municipal Revenue Sharing Fund 281
established pursuant to section 4-66p seven and nine-tenths per cent of 282
the amounts received by the state from the tax imposed under 283
subparagraph (A) of this subdivision; and 284
[(L)] (M) (i) For calendar months commencing on or after July 1, 2017, 285
the commissioner shall deposit into said Special Transportation Fund 286
seven and nine-tenths per cent of the amounts received by the state from 287
the tax imposed under subparagraph (A) of this subdivision; 288
(ii) For calendar months commencing on or after July 1, 2018, but 289
prior to July 1, 2019, the commissioner shall deposit into the Special 290
Transportation Fund established under section 13b-68 eight per cent of 291
the amounts received by the state from the tax imposed under 292
subparagraphs (A) and (H) of this subdivision on the acceptance or 293
receipt in this state of a motor vehicle; 294
(iii) For calendar months commencing on or after July 1, 2019, but 295
prior to July 1, 2020, the commissioner shall deposit into the Special 296
Transportation Fund established under section 13b-68 seventeen per 297
cent of the amounts received by the state from the tax imposed under 298
subparagraphs (A) and (H) of this subdivision on the acceptance or 299
receipt in this state of a motor vehicle; 300
(iv) For calendar months commencing on or after July 1, 2020, but 301
prior to July 1, 2021, the commissioner shall deposit into the Special 302 Raised Bill No. 269
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Transportation Fund established under section 13b-68 twenty-five per 303
cent of the amounts received by the state from the tax imposed under 304
subparagraphs (A) and (H) of this subdivision on the acceptance or 305
receipt in this state of a motor vehicle; 306
(v) For calendar months commencing on or after July 1, 2021, but 307
prior to July 1, 2022, the commissioner shall deposit into the Special 308
Transportation Fund established under section 13b-68 seventy-five per 309
cent of the amounts received by the state from the tax imposed under 310
subparagraphs (A) and (H) of this subdivision on the acceptance or 311
receipt in this state of a motor vehicle; and 312
(vi) For calendar months commencing on or after July 1, 2022, the 313
commissioner shall deposit into the Special Transportation Fund 314
established under section 13b-68 one hundred per cent of the amounts 315
received by the state from the tax imposed under subparagraphs (A) 316
and (H) of this subdivision on the acceptance or receipt in this state of a 317
motor vehicle. 318
Sec. 3. Section 4-66o of the general statutes is repealed and the 319
following is substituted in lieu thereof (Effective July 1, 2024): 320
The Secretary of the Office of Policy and Management may establish 321
receivables for the revenue anticipated pursuant to subparagraph [(K)] 322
(L) of subdivision (1) of section 12-408, as amended by this act, and 323
section 4-66l. 324
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 4-66o Raised Bill No. 269
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Statement of Purpose:
To reduce the sales and use taxes for certain tangible personal property
used in new housing construction.
[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.]