Connecticut 2024 Regular Session

Connecticut Senate Bill SB00269 Latest Draft

Bill / Introduced Version Filed 02/27/2024

                               
 
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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the general statutes is repealed and the following is substituted in lieu 2 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.]