Connecticut 2024 Regular Session

Connecticut Senate Bill SB00269 Compare Versions

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33 LCO No. 1990 1 of 12
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55 General Assembly Raised Bill No. 269
66 February Session, 2024
77 LCO No. 1990
88
99
1010 Referred to Committee on HOUSING
1111
1212
1313 Introduced by:
1414 (HSG)
1515
1616
1717
1818
1919 AN ACT REDUCING THE SALES AND USE TAXES FOR CERTAIN
2020 GOODS USED IN NEW HOUSING CONSTRUCTION.
2121 Be it enacted by the Senate and House of Representatives in General
2222 Assembly convened:
2323
2424 Section 1. Subdivision (1) of section 12-408 of the 2024 supplement to 1
2525 the general statutes is repealed and the following is substituted in lieu 2
2626 thereof (Effective July 1, 2024, and applicable to sales occurring on or after 3
2727 July 1, 2024): 4
2828 (1) (A) For the privilege of making any sales, as defined in 5
2929 subdivision (2) of subsection (a) of section 12-407, at retail, in this state 6
3030 for a consideration, a tax is hereby imposed on all retailers at the rate of 7
3131 six and thirty-five-hundredths per cent of the gross receipts of any 8
3232 retailer from the sale of all tangible personal property sold at retail or 9
3333 from the rendering of any services constituting a sale in accordance with 10
3434 subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 11
3535 rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 12
3636 subdivision; 13
3737 (B) (i) At a rate of fifteen per cent with respect to each transfer of 14
3838 occupancy, from the total amount of rent received by a hotel or lodging 15 Raised Bill No. 269
3939
4040
4141
4242 LCO No. 1990 2 of 12
4343
4444 house for the first period not exceeding thirty consecutive calendar 16
4545 days; 17
4646 (ii) At a rate of eleven per cent with respect to each transfer of 18
4747 occupancy, from the total amount of rent received by a bed and 19
4848 breakfast establishment for the first period not exceeding thirty 20
4949 consecutive calendar days; 21
5050 (C) With respect to the sale of a motor vehicle to any individual who 22
5151 is a member of the armed forces of the United States and is on full-time 23
5252 active duty in Connecticut and who is considered, under 50 App USC 24
5353 574, a resident of another state, or to any such individual and the spouse 25
5454 thereof, at a rate of four and one-half per cent of the gross receipts of any 26
5555 retailer from such sales, provided such retailer requires and maintains a 27
5656 declaration by such individual, prescribed as to form by the 28
5757 commissioner and bearing notice to the effect that false statements made 29
5858 in such declaration are punishable, or other evidence, satisfactory to the 30
5959 commissioner, concerning the purchaser's state of residence under 50 31
6060 App USC 574; 32
6161 (D) (i) With respect to the sales of computer and data processing 33
6262 services occurring on or after July 1, 2001, at the rate of one per cent, and 34
6363 (ii) with respect to sales of Internet access services, on and after July 1, 35
6464 2001, such services shall be exempt from such tax; 36
6565 (E) (i) With respect to the sales of labor that is otherwise taxable under 37
6666 subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 38
6767 12-407 on existing vessels and repair or maintenance services on vessels 39
6868 occurring on and after July 1, 1999, such services shall be exempt from 40
6969 such tax; 41
7070 (ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 42
7171 used for transporting a vessel, at the rate of two and ninety-nine-43
7272 hundredths per cent, except that the sale of a vessel shall be exempt from 44
7373 such tax if such vessel is docked in this state for sixty or fewer days in a 45
7474 calendar year; 46 Raised Bill No. 269
7575
7676
7777
7878 LCO No. 1990 3 of 12
7979
8080 (iii) With respect to the sale of dyed diesel fuel, as defined in 47
8181 subsection (d) of section 12-487, sold by a marine fuel dock exclusively 48
8282 for marine purposes, at the rate of two and ninety-nine-hundredths per 49
8383 cent; 50
8484 (F) With respect to patient care services for which payment is 51
8585 received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 52
8686 at the rate of five and three-fourths per cent and on and after July 1, 2001, 53
8787 such services shall be exempt from such tax; 54
8888 (G) With respect to the rental or leasing of a passenger motor vehicle 55
8989 for a period of thirty consecutive calendar days or less, at a rate of nine 56
9090 and thirty-five-hundredths per cent; 57
9191 (H) With respect to the sale of (i) a motor vehicle for a sales price 58
9292 exceeding fifty thousand dollars, at a rate of seven and three-fourths per 59
9393 cent on the entire sales price, (ii) jewelry, whether real or imitation, for 60
9494 a sales price exceeding five thousand dollars, at a rate of seven and 61
9595 three-fourths per cent on the entire sales price, and (iii) an article of 62
9696 clothing or footwear intended to be worn on or about the human body, 63
9797 a handbag, luggage, umbrella, wallet or watch for a sales price 64
9898 exceeding one thousand dollars, at a rate of seven and three-fourths per 65
9999 cent on the entire sales price. For purposes of this subparagraph, "motor 66
100100 vehicle" has the meaning provided in section 14-1, but does not include 67
101101 a motor vehicle subject to the provisions of subparagraph (C) of this 68
102102 subdivision, a motor vehicle having a gross vehicle weight rating over 69
103103 twelve thousand five hundred pounds, or a motor vehicle having a 70
104104 gross vehicle weight rating of twelve thousand five hundred pounds or 71
105105 less that is not used for private passenger purposes, but is designed or 72
106106 used to transport merchandise, freight or persons in connection with 73
107107 any business enterprise and issued a commercial registration or more 74
108108 specific type of registration by the Department of Motor Vehicles; 75
109109 (I) With respect to the sale of meals, as defined in subdivision (13) of 76
110110 section 12-412, sold by an eating establishment, caterer or grocery store; 77
111111 and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 78 Raised Bill No. 269
112112
113113
114114
115115 LCO No. 1990 4 of 12
116116
117117 such as are ordinarily dispensed at bars and soda fountains, or in 79
118118 connection therewith; in addition to the tax imposed under 80
119119 subparagraph (A) of this subdivision, at the rate of one per cent; 81
120120 (J) With respect to the sale of tangible personal property purchased 82
121121 for the construction of a new residential development project, at the rate 83
122122 of three per cent, provided such project contains not fewer than fifty 84
123123 dwelling units of affordable housing, as defined in section 8-39a, except 85
124124 that the provisions of this subparagraph shall not apply to a project that 86
125125 qualifies for an exemption under section 12-412; 87
126126 [(J)] (K) The rate of tax imposed by this chapter shall be applicable to 88
127127 all retail sales upon the effective date of such rate, except that a new rate 89
128128 that represents an increase in the rate applicable to the sale shall not 90
129129 apply to any sales transaction wherein a binding sales contract without 91
130130 an escalator clause has been entered into prior to the effective date of the 92
131131 new rate and delivery is made within ninety days after the effective date 93
132132 of the new rate. For the purposes of payment of the tax imposed under 94
133133 this section, any retailer of services taxable under subdivision (37) of 95
134134 subsection (a) of section 12-407, who computes taxable income, for 96
135135 purposes of taxation under the Internal Revenue Code of 1986, or any 97
136136 subsequent corresponding internal revenue code of the United States, 98
137137 as amended from time to time, on an accounting basis that recognizes 99
138138 only cash or other valuable consideration actually received as income 100
139139 and who is liable for such tax only due to the rendering of such services 101
140140 may make payments related to such tax for the period during which 102
141141 such income is received, without penalty or interest, without regard to 103
142142 when such service is rendered; 104
143143 [(K)] (L) (i) For calendar quarters ending on or after September 30, 105
144144 2019, the commissioner shall deposit into the regional planning 106
145145 incentive account, established pursuant to section 4-66k, six and seven-107
146146 tenths per cent of the amounts received by the state from the tax 108
147147 imposed under subparagraph (B) of this subdivision and ten and seven-109
148148 tenths per cent of the amounts received by the state from the tax 110
149149 imposed under subparagraph (G) of this subdivision; 111 Raised Bill No. 269
150150
151151
152152
153153 LCO No. 1990 5 of 12
154154
155155 (ii) For calendar quarters ending on or after September 30, 2018, the 112
156156 commissioner shall deposit into the Tourism Fund established under 113
157157 section 10-395b ten per cent of the amounts received by the state from 114
158158 the tax imposed under subparagraph (B) of this subdivision; 115
159159 [(L)] (M) (i) For calendar months commencing on or after July 1, 2021, 116
160160 but prior to July 1, 2023, the commissioner shall deposit into the 117
161161 municipal revenue sharing account established pursuant to section 4-66l 118
162162 seven and nine-tenths per cent of the amounts received by the state from 119
163163 the tax imposed under subparagraph (A) of this subdivision, including 120
164164 such amounts received on or after July 1, 2023, attributable to the fiscal 121
165165 year ending June 30, 2023; and 122
166166 (ii) For calendar months commencing on or after July 1, 2023, the 123
167167 commissioner shall deposit into the Municipal Revenue Sharing Fund 124
168168 established pursuant to section 4-66p seven and nine-tenths per cent of 125
169169 the amounts received by the state from the tax imposed under 126
170170 subparagraph (A) of this subdivision; and 127
171171 [(M)] (N) (i) For calendar months commencing on or after July 1, 2017, 128
172172 the commissioner shall deposit into the Special Transportation Fund 129
173173 established under section 13b-68 seven and nine-tenths per cent of the 130
174174 amounts received by the state from the tax impo sed under 131
175175 subparagraph (A) of this subdivision; 132
176176 (ii) For calendar months commencing on or after July 1, 2018, but 133
177177 prior to July 1, 2019, the commissioner shall deposit into the Special 134
178178 Transportation Fund established under section 13b-68 eight per cent of 135
179179 the amounts received by the state from the tax imposed under 136
180180 subparagraphs (A) and (H) of this subdivision on the sale of a motor 137
181181 vehicle; 138
182182 (iii) For calendar months commencing on or after July 1, 2019, but 139
183183 prior to July 1, 2020, the commissioner shall deposit into the Special 140
184184 Transportation Fund established under section 13b-68 seventeen per 141
185185 cent of the amounts received by the state from the tax imposed under 142
186186 subparagraphs (A) and (H) of this subdivision on the sale of a motor 143 Raised Bill No. 269
187187
188188
189189
190190 LCO No. 1990 6 of 12
191191
192192 vehicle; 144
193193 (iv) For calendar months commencing on or after July 1, 2020, but 145
194194 prior to July 1, 2021, the commissioner shall deposit into the Special 146
195195 Transportation Fund established under section 13b-68 twenty-five per 147
196196 cent of the amounts received by the state from the tax imposed under 148
197197 subparagraphs (A) and (H) of this subdivision on the sale of a motor 149
198198 vehicle; 150
199199 (v) For calendar months commencing on or after July 1, 2021, but 151
200200 prior to July 1, 2022, the commissioner shall deposit into the Special 152
201201 Transportation Fund established under section 13b-68 seventy-five per 153
202202 cent of the amounts received by the state from the tax imposed under 154
203203 subparagraphs (A) and (H) of this subdivision on the sale of a motor 155
204204 vehicle; and 156
205205 (vi) For calendar months commencing on or after July 1, 2022, the 157
206206 commissioner shall deposit into the Special Transportation Fund 158
207207 established under section 13b-68 one hundred per cent of the amounts 159
208208 received by the state from the tax imposed under subparagraphs (A) 160
209209 and (H) of this subdivision on the sale of a motor vehicle. 161
210210 Sec. 2. Subdivision (1) of section 12-411 of the 2024 supplement to the 162
211211 general statutes is repealed and the following is substituted in lieu 163
212212 thereof (Effective July 1, 2024, and applicable to sales occurring on or after 164
213213 July 1, 2024): 165
214214 (1) (A) An excise tax is hereby imposed on the storage, acceptance, 166
215215 consumption or any other use in this state of tangible personal property 167
216216 purchased from any retailer for storage, acceptance, consumption or any 168
217217 other use in this state, the acceptance or receipt of any services 169
218218 constituting a sale in accordance with subdivision (2) of subsection (a) 170
219219 of section 12-407, purchased from any retailer for consumption or use in 171
220220 this state, or the storage, acceptance, consumption or any other use in 172
221221 this state of tangible personal property which has been manufactured, 173
222222 fabricated, assembled or processed from materials by a person, either 174
223223 within or without this state, for storage, acceptance, consumption or any 175 Raised Bill No. 269
224224
225225
226226
227227 LCO No. 1990 7 of 12
228228
229229 other use by such person in this state, to be measured by the sales price 176
230230 of materials, at the rate of six and thirty-five-hundredths per cent of the 177
231231 sales price of such property or services, except, in lieu of said rate: 178
232232 (B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 179
233233 house for the first period not exceeding thirty consecutive calendar 180
234234 days; 181
235235 (ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 182
236236 establishment for the first period not exceeding thirty consecutive 183
237237 calendar days; 184
238238 (C) With respect to the storage, acceptance, consumption or use in 185
239239 this state of a motor vehicle purchased from any retailer for storage, 186
240240 acceptance, consumption or use in this state by any individual who is a 187
241241 member of the armed forces of the United States and is on full-time 188
242242 active duty in Connecticut and who is considered, under 50 App USC 189
243243 574, a resident of another state, or to any such individual and the spouse 190
244244 of such individual at a rate of four and one-half per cent of the sales price 191
245245 of such vehicle, provided such retailer requires and maintains a 192
246246 declaration by such individual, prescribed as to form by the 193
247247 commissioner and bearing notice to the effect that false statements made 194
248248 in such declaration are punishable, or other evidence, satisfactory to the 195
249249 commissioner, concerning the purchaser's state of residence under 50 196
250250 App USC 574; 197
251251 (D) (i) With respect to the acceptance or receipt in this state of labor 198
252252 that is otherwise taxable under subparagraph (C) or (G) of subdivision 199
253253 (2) of subsection (a) of section 12-407 on existing vessels and repair or 200
254254 maintenance services on vessels occurring on and after July 1, 1999, such 201
255255 services shall be exempt from such tax; 202
256256 (ii) (I) With respect to the storage, acceptance or other use of a vessel 203
257257 in this state, at the rate of two and ninety-nine-hundredths per cent, 204
258258 except that such storage, acceptance or other use shall be exempt from 205
259259 such tax if such vessel is docked in this state for sixty or fewer days in a 206
260260 calendar year; 207 Raised Bill No. 269
261261
262262
263263
264264 LCO No. 1990 8 of 12
265265
266266 (II) With respect to the storage, acceptance or other use of a motor for 208
267267 a vessel or a trailer used for transporting a vessel in this state, at the rate 209
268268 of two and ninety-nine-hundredths per cent; 210
269269 (III) With respect to the storage, acceptance or other use of dyed diesel 211
270270 fuel, as defined in subsection (d) of section 12-487, exclusively for 212
271271 marine purposes, at the rate of two and ninety-nine-hundredths per 213
272272 cent; 214
273273 (E) (i) With respect to the acceptance or receipt in this state of 215
274274 computer and data processing services purchased from any retailer for 216
275275 consumption or use in this state occurring on or after July 1, 2001, at the 217
276276 rate of one per cent of such services, and (ii) with respect to the 218
277277 acceptance or receipt in this state of Internet access services, on and after 219
278278 July 1, 2001, such services shall be exempt from such tax; 220
279279 (F) With respect to the acceptance or receipt in this state of patient 221
280280 care services purchased from any retailer for consumption or use in this 222
281281 state for which payment is received by the hospital on or after July 1, 223
282282 1999, and prior to July 1, 2001, at the rate of five and three-fourths per 224
283283 cent and on and after July 1, 2001, such services shall be exempt from 225
284284 such tax; 226
285285 (G) With respect to the rental or leasing of a passenger motor vehicle 227
286286 for a period of thirty consecutive calendar days or less, at a rate of nine 228
287287 and thirty-five-hundredths per cent; 229
288288 (H) With respect to the acceptance or receipt in this state of (i) a motor 230
289289 vehicle for a sales price exceeding fifty thousand dollars, at a rate of 231
290290 seven and three-fourths per cent on the entire sales price, (ii) jewelry, 232
291291 whether real or imitation, for a sales price exceeding five thousand 233
292292 dollars, at a rate of seven and three-fourths per cent on the entire sales 234
293293 price, and (iii) an article of clothing or footwear intended to be worn on 235
294294 or about the human body, a handbag, luggage, umbrella, wallet or 236
295295 watch for a sales price exceeding one thousand dollars, at a rate of seven 237
296296 and three-fourths per cent on the entire sales price. For purposes of this 238
297297 subparagraph, "motor vehicle" has the meaning provided in section 14-239 Raised Bill No. 269
298298
299299
300300
301301 LCO No. 1990 9 of 12
302302
303303 1, but does not include a motor vehicle subject to the provisions of 240
304304 subparagraph (C) of this subdivision, a motor vehicle having a gross 241
305305 vehicle weight rating over twelve thousand five hundred pounds, or a 242
306306 motor vehicle having a gross vehicle weight rating of twelve thousand 243
307307 five hundred pounds or less that is not used for private passenger 244
308308 purposes, but is designed or used to transport merchandise, freight or 245
309309 persons in connection with any business enterprise and issued a 246
310310 commercial registration or more specific type of registration by the 247
311311 Department of Motor Vehicles; 248
312312 (I) With respect to the acceptance or receipt in this state of meals, as 249
313313 defined in subdivision (13) of section 12-412, sold by an eating 250
314314 establishment, caterer or grocery store; and spirituous, malt or vinous 251
315315 liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 252
316316 at bars and soda fountains, or in connection therewith; in addition to the 253
317317 tax imposed under subparagraph (A) of this subdivision, at the rate of 254
318318 one per cent; 255
319319 (J) With respect to the storage, use or other consumption of tangible 256
320320 personal property for the construction of a new residential development 257
321321 project at the rate of three per cent, provided such project contains not 258
322322 fewer than fifty dwelling units of affordable housing, as defined in 259
323323 section 8-39a, except that the provisions of this subparagraph shall not 260
324324 apply to a project that qualifies for an exemption under section 12-412; 261
325325 [(J)] (K) (i) For calendar quarters ending on or after September 30, 262
326326 2019, the commissioner shall deposit into the regional planning 263
327327 incentive account, established pursuant to section 4-66k, six and seven-264
328328 tenths per cent of the amounts received by the state from the tax 265
329329 imposed under subparagraph (B) of this subdivision and ten and seven-266
330330 tenths per cent of the amounts received by the state from the tax 267
331331 imposed under subparagraph (G) of this subdivision; 268
332332 (ii) For calendar quarters ending on or after September 30, 2018, the 269
333333 commissioner shall deposit into the Tourism Fund established under 270
334334 section 10-395b ten per cent of the amounts received by the state from 271 Raised Bill No. 269
335335
336336
337337
338338 LCO No. 1990 10 of 12
339339
340340 the tax imposed under subparagraph (B) of this subdivision; 272
341341 [(K)] (L) (i) For calendar months commencing on or after July 1, 2021, 273
342342 but prior to July 1, 2023, the commissioner shall deposit into the 274
343343 municipal revenue sharing account established pursuant to section 4-66l 275
344344 seven and nine-tenths per cent of the amounts received by the state from 276
345345 the tax imposed under subparagraph (A) of this subdivision, including 277
346346 such amounts received on or after July 1, 2023, attributable to the fiscal 278
347347 year ending June 30, 2023; and 279
348348 (ii) For calendar months commencing on or after July 1, 2023, the 280
349349 commissioner shall deposit into the Municipal Revenue Sharing Fund 281
350350 established pursuant to section 4-66p seven and nine-tenths per cent of 282
351351 the amounts received by the state from the tax imposed under 283
352352 subparagraph (A) of this subdivision; and 284
353353 [(L)] (M) (i) For calendar months commencing on or after July 1, 2017, 285
354354 the commissioner shall deposit into said Special Transportation Fund 286
355355 seven and nine-tenths per cent of the amounts received by the state from 287
356356 the tax imposed under subparagraph (A) of this subdivision; 288
357357 (ii) For calendar months commencing on or after July 1, 2018, but 289
358358 prior to July 1, 2019, the commissioner shall deposit into the Special 290
359359 Transportation Fund established under section 13b-68 eight per cent of 291
360360 the amounts received by the state from the tax imposed under 292
361361 subparagraphs (A) and (H) of this subdivision on the acceptance or 293
362362 receipt in this state of a motor vehicle; 294
363363 (iii) For calendar months commencing on or after July 1, 2019, but 295
364364 prior to July 1, 2020, the commissioner shall deposit into the Special 296
365365 Transportation Fund established under section 13b-68 seventeen per 297
366366 cent of the amounts received by the state from the tax imposed under 298
367367 subparagraphs (A) and (H) of this subdivision on the acceptance or 299
368368 receipt in this state of a motor vehicle; 300
369369 (iv) For calendar months commencing on or after July 1, 2020, but 301
370370 prior to July 1, 2021, the commissioner shall deposit into the Special 302 Raised Bill No. 269
371371
372372
373373
374374 LCO No. 1990 11 of 12
375375
376376 Transportation Fund established under section 13b-68 twenty-five per 303
377377 cent of the amounts received by the state from the tax imposed under 304
378378 subparagraphs (A) and (H) of this subdivision on the acceptance or 305
379379 receipt in this state of a motor vehicle; 306
380380 (v) For calendar months commencing on or after July 1, 2021, but 307
381381 prior to July 1, 2022, the commissioner shall deposit into the Special 308
382382 Transportation Fund established under section 13b-68 seventy-five per 309
383383 cent of the amounts received by the state from the tax imposed under 310
384384 subparagraphs (A) and (H) of this subdivision on the acceptance or 311
385385 receipt in this state of a motor vehicle; and 312
386386 (vi) For calendar months commencing on or after July 1, 2022, the 313
387387 commissioner shall deposit into the Special Transportation Fund 314
388388 established under section 13b-68 one hundred per cent of the amounts 315
389389 received by the state from the tax imposed under subparagraphs (A) 316
390390 and (H) of this subdivision on the acceptance or receipt in this state of a 317
391391 motor vehicle. 318
392392 Sec. 3. Section 4-66o of the general statutes is repealed and the 319
393393 following is substituted in lieu thereof (Effective July 1, 2024): 320
394394 The Secretary of the Office of Policy and Management may establish 321
395395 receivables for the revenue anticipated pursuant to subparagraph [(K)] 322
396396 (L) of subdivision (1) of section 12-408, as amended by this act, and 323
397397 section 4-66l. 324
398398 This act shall take effect as follows and shall amend the following
399399 sections:
400400
401401 Section 1 July 1, 2024, and
402402 applicable to sales
403403 occurring on or after July
404404 1, 2024
405405 12-408(1)
406406 Sec. 2 July 1, 2024, and
407407 applicable to sales
408408 occurring on or after July
409409 1, 2024
410410 12-411(1)
411411 Sec. 3 July 1, 2024 4-66o Raised Bill No. 269
412412
413413
414414
415415 LCO No. 1990 12 of 12
416416
417417
418418 Statement of Purpose:
419419 To reduce the sales and use taxes for certain tangible personal property
420420 used in new housing construction.
421421 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
422422 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
423423 underlined.]
424424