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General Assembly Substitute Bill No. 7147
January Session, 2025
AN ACT AUTHORIZING MUNICIPALITIES TO IMPOSE A TAX ON THE
ENDOWMENT FUNDS OF PRIVATE INSTITUTIONS OF HIGHER
EDUCATION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2025, and applicable to taxable 1
years commencing on or after January 1, 2026) (a) As used in this section: 2
(1) "Applicable educational institution" means an independent 3
institution of higher education, as defined in section 10a-173 of the 4
general statutes, whose assets have an aggregate fair market value 5
exceeding three hundred million dollars at the end of the preceding 6
taxable year; and (2) "net investment income" has the same meaning as 7
provided in 26 USC 4940(c), as amended from time to time. 8
(b) A municipality in which greater than fifty per cent of the students 9
enrolled in an applicable educational institution attend classes may, 10
upon the affirmative vote of the legislative body of such municipality, 11
impose a tax not exceeding two per cent of the net investment income 12
of such institution for each taxable year. 13
(c) The legislative body of a municipality, upon approving the 14
imposition of a tax pursuant to this section, shall determine whether 15
such tax shall be due and payable in a single installment or in two 16
semiannual installments and shall designate the date or dates on which 17
such installment or installments shall be due and payable. 18 Substitute Bill No. 7147
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(d) This section shall be administered by the tax collector of a 19
municipality. All forms necessary or convenient for the enforcement of 20
this section shall be prescribed by the Commissioner of Revenue 21
Services and shall be printed and furnished by such tax collector. The 22
Commissioner of Revenue Services may adopt and enforce rules and 23
regulations relating to the administration and enforcement of this 24
chapter, in accordance with chapter 54 of the general statutes. 25
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025, and
applicable to taxable years
commencing on or after
January 1, 2026
New section
Statement of Legislative Commissioners:
In the effective date line, "assessment years commencing on and after
October 1, 2025" was changed to "taxable years commencing on or after
January 1, 2026" for accuracy and consistency with the general statutes.
PD Joint Favorable Subst. -LCO