Connecticut 2025 Regular Session

Connecticut House Bill HB07176 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 4527 1 of 14
4	4
5	5	General Assembly Raised Bill No. 7176
6	6	January Session, 2025
7	7	LCO No. 4527
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
12	12
13	13
14	14	Introduced by:
15	15	(FIN)
16	16
17	17
18	18
19	19
20	20	AN ACT CONCERNING SALES AND USE TAXES RELATED TO
21	21	CERTAIN VEHICLES AND AIRCRAFT INDUSTRY JOINT VENTURES,
22	22	THE DEDICATION OF A PORTION OF THE MEALS TAX REVENUE
23	23	AND THE DUES TAX THRESHOLD.
24	24	Be it enacted by the Senate and House of Representatives in General
25	25	Assembly convened:
26	26
27	27	Section 1. Subdivision (1) of section 12-408 of the general statutes is 1
28	28	repealed and the following is substituted in lieu thereof (Effective July 1, 2
29	29	2025, and applicable to sales occurring on or after July 1, 2025): 3
30	30	(1) (A) For the privilege of making any sales, as defined in 4
31	31	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 5
32	32	for a consideration, a tax is hereby imposed on all retailers at the rate of 6
33	33	six and thirty-five-hundredths per cent of the gross receipts of any 7
34	34	retailer from the sale of all tangible personal property sold at retail or 8
35	35	from the rendering of any services constituting a sale in accordance with 9
36	36	subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 10
37	37	rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 11
38	38	subdivision; 12
39	39	Raised Bill No. 7176
40	40
41	41
42	42
43	43	LCO No. 4527 2 of 14
44	44
45	45	(B) (i) At a rate of fifteen per cent with respect to each transfer of 13
46	46	occupancy, from the total amount of rent received by a hotel or lodging 14
47	47	house for the first period not exceeding thirty consecutive calendar 15
48	48	days; 16
49	49	(ii) At a rate of eleven per cent with respect to each transfer of 17
50	50	occupancy, from the total amount of rent received by a bed and 18
51	51	breakfast establishment for the first period not exceeding thirty 19
52	52	consecutive calendar days; 20
53	53	(C) With respect to the sale of a motor vehicle to any individual who 21
54	54	is a member of the armed forces of the United States and is on full-time 22
55	55	active duty in Connecticut and who is considered, under 50 App USC 23
56	56	574, a resident of another state, or to any such individual and the spouse 24
57	57	thereof, at a rate of four and one-half per cent of the gross receipts of any 25
58	58	retailer from such sales, provided such retailer requires and maintains a 26
59	59	declaration by such individual, prescribed as to form by the 27
60	60	commissioner and bearing notice to the effect that false statements made 28
61	61	in such declaration are punishable, or other evidence, satisfactory to the 29
62	62	commissioner, concerning the purchaser's state of residence under 50 30
63	63	App USC 574; 31
64	64	(D) (i) With respect to the sales of computer and data processing 32
65	65	services occurring on or after July 1, 2001, at the rate of one per cent, and 33
66	66	(ii) with respect to sales of Internet access services, on and after July 1, 34
67	67	2001, such services shall be exempt from such tax; 35
68	68	(E) (i) With respect to the sales of labor that is otherwise taxable under 36
69	69	subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 37
70	70	12-407 on existing vessels and repair or maintenance services on vessels 38
71	71	occurring on and after July 1, 1999, such services shall be exempt from 39
72	72	such tax; 40
73	73	(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 41
74	74	used for transporting a vessel, at the rate of two and ninety-nine-42
75	75	hundredths per cent, except that the sale of a vessel shall be exempt from 43
76	76	Raised Bill No. 7176
77	77
78	78
79	79
80	80	LCO No. 4527 3 of 14
81	81
82	82	such tax if such vessel is docked in this state for sixty or fewer days in a 44
83	83	calendar year; 45
84	84	(iii) With respect to the sale of dyed diesel fuel, as defined in 46
85	85	subsection (d) of section 12-487, sold by a marine fuel dock exclusively 47
86	86	for marine purposes, at the rate of two and ninety-nine-hundredths per 48
87	87	cent; 49
88	88	(F) With respect to patient care services for which payment is 50
89	89	received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 51
90	90	at the rate of five and three-fourths per cent and on and after July 1, 2001, 52
91	91	such services shall be exempt from such tax; 53
92	92	(G) With respect to the rental or leasing of a passenger motor vehicle 54
93	93	for a period of thirty consecutive calendar days or less, at a rate of nine 55
94	94	and thirty-five-hundredths per cent; 56
95	95	(H) With respect to the sale of (i) a motor vehicle for a sales price 57
96	96	exceeding [fifty] seventy-five thousand dollars, at a rate of seven and 58
97	97	three-fourths per cent on the entire sales price, (ii) jewelry, whether real 59
98	98	or imitation, for a sales price exceeding five thousand dollars, at a rate 60
99	99	of seven and three-fourths per cent on the entire sales price, and (iii) an 61
100	100	article of clothing or footwear intended to be worn on or about the 62
101	101	human body, a handbag, luggage, umbrella, wallet or watch for a sales 63
102	102	price exceeding one thousand dollars, at a rate of seven and three-64
103	103	fourths per cent on the entire sales price. For purposes of this 65
104	104	subparagraph, "motor vehicle" has the meaning provided in section 14-66
105	105	1, but does not include a motor vehicle subject to the provisions of 67
106	106	subparagraph (C) of this subdivision, a motor vehicle having a gross 68
107	107	vehicle weight rating over twelve thousand five hundred pounds, or a 69
108	108	motor vehicle having a gross vehicle weight rating of twelve thousand 70
109	109	five hundred pounds or less that is not used for private passenger 71
110	110	purposes, but is designed or used to transport merchandise, freight or 72
111	111	persons in connection with any business enterprise and issued a 73
112	112	commercial registration or more specific type of registration by the 74
113	113	Raised Bill No. 7176
114	114
115	115
116	116
117	117	LCO No. 4527 4 of 14
118	118
119	119	Department of Motor Vehicles; 75
120	120	(I) With respect to the sale of meals, as defined in subdivision (13) of 76
121	121	section 12-412, sold by an eating establishment, caterer or grocery store; 77
122	122	and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 78
123	123	such as are ordinarily dispensed at bars and soda fountains, or in 79
124	124	connection therewith; in addition to the tax imposed under 80
125	125	subparagraph (A) of this subdivision, at the rate of one per cent; 81
126	126	(J) The rate of tax imposed by this chapter shall be applicable to all 82
127	127	retail sales upon the effective date of such rate, except that a new rate 83
128	128	that represents an increase in the rate applicable to the sale shall not 84
129	129	apply to any sales transaction wherein a binding sales contract without 85
130	130	an escalator clause has been entered into prior to the effective date of the 86
131	131	new rate and delivery is made within ninety days after the effective date 87
132	132	of the new rate. For the purposes of payment of the tax imposed under 88
133	133	this section, any retailer of services taxable under subdivision (37) of 89
134	134	subsection (a) of section 12-407, who computes taxable income, for 90
135	135	purposes of taxation under the Internal Revenue Code of 1986, or any 91
136	136	subsequent corresponding internal revenue code of the United States, 92
137	137	as amended from time to time, on an accounting basis that recognizes 93
138	138	only cash or other valuable consideration actually received as income 94
139	139	and who is liable for such tax only due to the rendering of such services 95
140	140	may make payments related to such tax for the period during which 96
141	141	such income is received, without penalty or interest, without regard to 97
142	142	when such service is rendered; 98
143	143	(K) (i) For calendar quarters ending on or after September 30, 2019, 99
144	144	the commissioner shall deposit into the regional planning incentive 100
145	145	account, established pursuant to section 4-66k, six and seven-tenths per 101
146	146	cent of the amounts received by the state from the tax imposed under 102
147	147	subparagraph (B) of this subdivision and ten and seven-tenths per cent 103
148	148	of the amounts received by the state from the tax imposed under 104
149	149	subparagraph (G) of this subdivision; 105
150	150	Raised Bill No. 7176
151	151
152	152
153	153
154	154	LCO No. 4527 5 of 14
155	155
156	156	(ii) [For calendar quarters ending on or after September 30, 2018, the] 106
157	157	The commissioner shall deposit into the Tourism Fund established 107
158	158	under section 10-395b: (I) For calendar quarters ending on or after 108
159	159	September 30, 2018, ten per cent of the amounts received by the state 109
160	160	from the tax imposed under subparagraph (B) of this subdivision; and 110
161	161	(II) for calendar quarters ending on or after September 30, 2025, fifty per 111
162	162	cent of the amounts received by the state from the tax imposed under 112
163	163	subparagraph (I) of this subdivision; 113
164	164	(L) (i) For calendar months commencing on or after July 1, 2021, but 114
165	165	prior to July 1, 2023, the commissioner shall deposit into the municipal 115
166	166	revenue sharing account established pursuant to section 4-66l seven and 116
167	167	nine-tenths per cent of the amounts received by the state from the tax 117
168	168	imposed under subparagraph (A) of this subdivision, including such 118
169	169	amounts received on or after July 1, 2023, attributable to the fiscal year 119
170	170	ending June 30, 2023; and 120
171	171	(ii) For calendar months commencing on or after July 1, 2023, the 121
172	172	commissioner shall deposit into the Municipal Revenue Sharing Fund 122
173	173	established pursuant to section 4-66p seven and nine-tenths per cent of 123
174	174	the amounts received by the state from the tax imposed under 124
175	175	subparagraph (A) of this subdivision; and 125
176	176	(M) (i) For calendar months commencing on or after July 1, 2017, the 126
177	177	commissioner shall deposit into the Special Transportation Fund 127
178	178	established under section 13b-68 seven and nine-tenths per cent of the 128
179	179	amounts received by the state from the tax imposed under 129
180	180	subparagraph (A) of this subdivision; 130
181	181	(ii) For calendar months commencing on or after July 1, 2018, but 131
182	182	prior to July 1, 2019, the commissioner shall deposit into the Special 132
183	183	Transportation Fund established under section 13b-68 eight per cent of 133
184	184	the amounts received by the state from the tax imposed under 134
185	185	subparagraphs (A) and (H) of this subdivision on the sale of a motor 135
186	186	vehicle; 136
187	187	Raised Bill No. 7176
188	188
189	189
190	190
191	191	LCO No. 4527 6 of 14
192	192
193	193	(iii) For calendar months commencing on or after July 1, 2019, but 137
194	194	prior to July 1, 2020, the commissioner shall deposit into the Special 138
195	195	Transportation Fund established under section 13b-68 seventeen per 139
196	196	cent of the amounts received by the state from the tax imposed under 140
197	197	subparagraphs (A) and (H) of this subdivision on the sale of a motor 141
198	198	vehicle; 142
199	199	(iv) For calendar months commencing on or after July 1, 2020, but 143
200	200	prior to July 1, 2021, the commissioner shall deposit into the Special 144
201	201	Transportation Fund established under section 13b-68 twenty-five per 145
202	202	cent of the amounts received by the state from the tax imposed under 146
203	203	subparagraphs (A) and (H) of this subdivision on the sale of a motor 147
204	204	vehicle; 148
205	205	(v) For calendar months commencing on or after July 1, 2021, but 149
206	206	prior to July 1, 2022, the commissioner shall deposit into the Special 150
207	207	Transportation Fund established under section 13b-68 seventy-five per 151
208	208	cent of the amounts received by the state from the tax imposed under 152
209	209	subparagraphs (A) and (H) of this subdivision on the sale of a motor 153
210	210	vehicle; and 154
211	211	(vi) For calendar months commencing on or after July 1, 2022, the 155
212	212	commissioner shall deposit into the Special Transportation Fund 156
213	213	established under section 13b-68 one hundred per cent of the amounts 157
214	214	received by the state from the tax imposed under subparagraphs (A) 158
215	215	and (H) of this subdivision on the sale of a motor vehicle. 159
216	216	Sec. 2. Subdivision (1) of section 12-411 of the general statutes is 160
217	217	repealed and the following is substituted in lieu thereof (Effective July 1, 161
218	218	2025, and applicable to sales occurring on or after July 1, 2025): 162
219	219	(1) (A) An excise tax is hereby imposed on the storage, acceptance, 163
220	220	consumption or any other use in this state of tangible personal property 164
221	221	purchased from any retailer for storage, acceptance, consumption or any 165
222	222	other use in this state, the acceptance or receipt of any services 166
223	223	constituting a sale in accordance with subdivision (2) of subsection (a) 167
224	224	Raised Bill No. 7176
225	225
226	226
227	227
228	228	LCO No. 4527 7 of 14
229	229
230	230	of section 12-407, purchased from any retailer for consumption or use in 168
231	231	this state, or the storage, acceptance, consumption or any other use in 169
232	232	this state of tangible personal property which has been manufactured, 170
233	233	fabricated, assembled or processed from materials by a person, either 171
234	234	within or without this state, for storage, acceptance, consumption or any 172
235	235	other use by such person in this state, to be measured by the sales price 173
236	236	of materials, at the rate of six and thirty-five-hundredths per cent of the 174
237	237	sales price of such property or services, except, in lieu of said rate, [:] the 175
238	238	rates provided in subparagraphs (B) to (I), inclusive, of this subdivision; 176
239	239	(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 177
240	240	house for the first period not exceeding thirty consecutive calendar 178
241	241	days; 179
242	242	(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 180
243	243	establishment for the first period not exceeding thirty consecutive 181
244	244	calendar days; 182
245	245	(C) With respect to the storage, acceptance, consumption or use in 183
246	246	this state of a motor vehicle purchased from any retailer for storage, 184
247	247	acceptance, consumption or use in this state by any individual who is a 185
248	248	member of the armed forces of the United States and is on full-time 186
249	249	active duty in Connecticut and who is considered, under 50 App USC 187
250	250	574, a resident of another state, or to any such individual and the spouse 188
251	251	of such individual at a rate of four and one-half per cent of the sales price 189
252	252	of such vehicle, provided such retailer requires and maintains a 190
253	253	declaration by such individual, prescribed as to form by the 191
254	254	commissioner and bearing notice to the effect that false statements made 192
255	255	in such declaration are punishable, or other evidence, satisfactory to the 193
256	256	commissioner, concerning the purchaser's state of residence under 50 194
257	257	App USC 574; 195
258	258	(D) (i) With respect to the acceptance or receipt in this state of labor 196
259	259	that is otherwise taxable under subparagraph (C) or (G) of subdivision 197
260	260	(2) of subsection (a) of section 12-407 on existing vessels and repair or 198
261	261	Raised Bill No. 7176
262	262
263	263
264	264
265	265	LCO No. 4527 8 of 14
266	266
267	267	maintenance services on vessels occurring on and after July 1, 1999, such 199
268	268	services shall be exempt from such tax; 200
269	269	(ii) (I) With respect to the storage, acceptance or other use of a vessel 201
270	270	in this state, at the rate of two and ninety-nine-hundredths per cent, 202
271	271	except that such storage, acceptance or other use shall be exempt from 203
272	272	such tax if such vessel is docked in this state for sixty or fewer days in a 204
273	273	calendar year; 205
274	274	(II) With respect to the storage, acceptance or other use of a motor for 206
275	275	a vessel or a trailer used for transporting a vessel in this state, at the rate 207
276	276	of two and ninety-nine-hundredths per cent; 208
277	277	(III) With respect to the storage, acceptance or other use of dyed diesel 209
278	278	fuel, as defined in subsection (d) of section 12-487, exclusively for 210
279	279	marine purposes, at the rate of two and ninety-nine-hundredths per 211
280	280	cent; 212
281	281	(E) (i) With respect to the acceptance or receipt in this state of 213
282	282	computer and data processing services purchased from any retailer for 214
283	283	consumption or use in this state occurring on or after July 1, 2001, at the 215
284	284	rate of one per cent of such services, and (ii) with respect to the 216
285	285	acceptance or receipt in this state of Internet access services, on and after 217
286	286	July 1, 2001, such services shall be exempt from such tax; 218
287	287	(F) With respect to the acceptance or receipt in this state of patient 219
288	288	care services purchased from any retailer for consumption or use in this 220
289	289	state for which payment is received by the hospital on or after July 1, 221
290	290	1999, and prior to July 1, 2001, at the rate of five and three-fourths per 222
291	291	cent and on and after July 1, 2001, such services shall be exempt from 223
292	292	such tax; 224
293	293	(G) With respect to the rental or leasing of a passenger motor vehicle 225
294	294	for a period of thirty consecutive calendar days or less, at a rate of nine 226
295	295	and thirty-five-hundredths per cent; 227
296	296	Raised Bill No. 7176
297	297
298	298
299	299
300	300	LCO No. 4527 9 of 14
301	301
302	302	(H) With respect to the acceptance or receipt in this state of (i) a motor 228
303	303	vehicle for a sales price exceeding [fifty] seventy-five thousand dollars, 229
304	304	at a rate of seven and three-fourths per cent on the entire sales price, (ii) 230
305	305	jewelry, whether real or imitation, for a sales price exceeding five 231
306	306	thousand dollars, at a rate of seven and three-fourths per cent on the 232
307	307	entire sales price, and (iii) an article of clothing or footwear intended to 233
308	308	be worn on or about the human body, a handbag, luggage, umbrella, 234
309	309	wallet or watch for a sales price exceeding one thousand dollars, at a 235
310	310	rate of seven and three-fourths per cent on the entire sales price. For 236
311	311	purposes of this subparagraph, "motor vehicle" has the meaning 237
312	312	provided in section 14-1, but does not include a motor vehicle subject to 238
313	313	the provisions of subparagraph (C) of this subdivision, a motor vehicle 239
314	314	having a gross vehicle weight rating over twelve thousand five hundred 240
315	315	pounds, or a motor vehicle having a gross vehicle weight rating of 241
316	316	twelve thousand five hundred pounds or less that is not used for private 242
317	317	passenger purposes, but is designed or used to transport merchandise, 243
318	318	freight or persons in connection with any business enterprise and issued 244
319	319	a commercial registration or more specific type of registration by the 245
320	320	Department of Motor Vehicles; 246
321	321	(I) With respect to the acceptance or receipt in this state of meals, as 247
322	322	defined in subdivision (13) of section 12-412, sold by an eating 248
323	323	establishment, caterer or grocery store; and spirituous, malt or vinous 249
324	324	liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 250
325	325	at bars and soda fountains, or in connection therewith; in addition to the 251
326	326	tax imposed under subparagraph (A) of this subdivision, at the rate of 252
327	327	one per cent; 253
328	328	(J) (i) For calendar quarters ending on or after September 30, 2019, the 254
329	329	commissioner shall deposit into the regional planning incentive 255
330	330	account, established pursuant to section 4-66k, six and seven-tenths per 256
331	331	cent of the amounts received by the state from the tax imposed under 257
332	332	subparagraph (B) of this subdivision and ten and seven-tenths per cent 258
333	333	of the amounts received by the state from the tax imposed under 259
334	334	subparagraph (G) of this subdivision; 260
335	335	Raised Bill No. 7176
336	336
337	337
338	338
339	339	LCO No. 4527 10 of 14
340	340
341	341	(ii) [For calendar quarters ending on or after September 30, 2018, the] 261
342	342	The commissioner shall deposit into the Tourism Fund established 262
343	343	under section 10-395b: (I) For calendar quarters ending on or after 263
344	344	September 30, 2018, ten per cent of the amounts received by the state 264
345	345	from the tax imposed under subparagraph (B) of this subdivision; and 265
346	346	(II) for calendar quarters ending on or after September 30, 2025, fifty per 266
347	347	cent of the amounts received by the state from the tax imposed under 267
348	348	subparagraph (I) of this subdivision; 268
349	349	(K) (i) For calendar months commencing on or after July 1, 2021, but 269
350	350	prior to July 1, 2023, the commissioner shall deposit into the municipal 270
351	351	revenue sharing account established pursuant to section 4-66l seven and 271
352	352	nine-tenths per cent of the amounts received by the state from the tax 272
353	353	imposed under subparagraph (A) of this subdivision, including such 273
354	354	amounts received on or after July 1, 2023, attributable to the fiscal year 274
355	355	ending June 30, 2023; and 275
356	356	(ii) For calendar months commencing on or after July 1, 2023, the 276
357	357	commissioner shall deposit into the Municipal Revenue Sharing Fund 277
358	358	established pursuant to section 4-66p seven and nine-tenths per cent of 278
359	359	the amounts received by the state from the tax imposed under 279
360	360	subparagraph (A) of this subdivision; and 280
361	361	(L) (i) For calendar months commencing on or after July 1, 2017, the 281
362	362	commissioner shall deposit into said Special Transportation Fund seven 282
363	363	and nine-tenths per cent of the amounts received by the state from the 283
364	364	tax imposed under subparagraph (A) of this subdivision; 284
365	365	(ii) For calendar months commencing on or after July 1, 2018, but 285
366	366	prior to July 1, 2019, the commissioner shall deposit into the Special 286
367	367	Transportation Fund established under section 13b-68 eight per cent of 287
368	368	the amounts received by the state from the tax imposed under 288
369	369	subparagraphs (A) and (H) of this subdivision on the acceptance or 289
370	370	receipt in this state of a motor vehicle; 290
371	371	(iii) For calendar months commencing on or after July 1, 2019, but 291
372	372	Raised Bill No. 7176
373	373
374	374
375	375
376	376	LCO No. 4527 11 of 14
377	377
378	378	prior to July 1, 2020, the commissioner shall deposit into the Special 292
379	379	Transportation Fund established under section 13b-68 seventeen per 293
380	380	cent of the amounts received by the state from the tax imposed under 294
381	381	subparagraphs (A) and (H) of this subdivision on the acceptance or 295
382	382	receipt in this state of a motor vehicle; 296
383	383	(iv) For calendar months commencing on or after July 1, 2020, but 297
384	384	prior to July 1, 2021, the commissioner shall deposit into the Special 298
385	385	Transportation Fund established under section 13b-68 twenty-five per 299
386	386	cent of the amounts received by the state from the tax imposed under 300
387	387	subparagraphs (A) and (H) of this subdivision on the acceptance or 301
388	388	receipt in this state of a motor vehicle; 302
389	389	(v) For calendar months commencing on or after July 1, 2021, but 303
390	390	prior to July 1, 2022, the commissioner shall deposit into the Special 304
391	391	Transportation Fund established under section 13b-68 seventy-five per 305
392	392	cent of the amounts received by the state from the tax imposed under 306
393	393	subparagraphs (A) and (H) of this subdivision on the acceptance or 307
394	394	receipt in this state of a motor vehicle; and 308
395	395	(vi) For calendar months commencing on or after July 1, 2022, the 309
396	396	commissioner shall deposit into the Special Transportation Fund 310
397	397	established under section 13b-68 one hundred per cent of the amounts 311
398	398	received by the state from the tax imposed under subparagraphs (A) 312
399	399	and (H) of this subdivision on the acceptance or receipt in this state of a 313
400	400	motor vehicle. 314
401	401	Sec. 3. Subdivision (58) of section 12-412 of the general statutes is 315
402	402	repealed and the following is substituted in lieu thereof (Effective July 1, 316
403	403	2025): 317
404	404	(58) (A) Sales of any services rendered for purposes of (i) personnel 318
405	405	services, (ii) commercial or industrial marketing, development, testing 319
406	406	or research services, or (iii) business analysis and management services, 320
407	407	whenever, pursuant to a joint venture agreement, the recipient of any 321
408	408	such services is either a corporation, a partnership, or a limited liability 322
409	409	Raised Bill No. 7176
410	410
411	411
412	412
413	413	LCO No. 4527 12 of 14
414	414
415	415	company, and such services are rendered by one or more corporate 323
416	416	shareholders, or a corporate partner or corporate member in such joint 324
417	417	venture, and in accordance with which, except as provided in 325
418	418	subparagraph (B) of this subdivision, the company rendering such 326
419	419	service must have an ownership interest equivalent to not less than 327
420	420	twenty-five per cent of total ownership in such joint venture, provided 328
421	421	(I) the purpose of such joint venture is directly related to production or 329
422	422	development of new or experimental products or systems and the 330
423	423	marketing and support thereof, (II) at least one of the corporations 331
424	424	participating in such joint venture shall have been actively engaged in 332
425	425	business in this state for not less than ten years, and (III) exemption for 333
426	426	such sales in accordance with this subsection, with respect to any single 334
427	427	joint venture, shall not be allowed for a period in excess of twenty 335
428	428	consecutive years from the date of such venture's incorporation, 336
429	429	formation or organization, or in the case of a joint venture in existence 337
430	430	prior to January 1, 1986, within the aircraft industry, for a period in 338
431	431	excess of [forty] fifty consecutive years, and such exemption shall be 339
432	432	applicable to sales of such services rendered on or after January 1, 1986. 340
433	433	(B) In the case of a joint venture in the aircraft industry, the ownership 341
434	434	interest percentage of each participant in such joint venture shall be 342
435	435	equal to the aggregate ownership interest percentage owned directly or 343
436	436	indirectly by every participant in such venture that is a related member, 344
437	437	as defined in subsection (a) of section 12-218c. 345
438	438	Sec. 4. Section 12-412 of the general statutes is amended by adding 346
439	439	subdivision (127) as follows (Effective July 1, 2025, and applicable to sales 347
440	440	occurring on or after July 1, 2025): 348
441	441	(NEW) (127) Sales of and the storage, use or other consumption of (A) 349
442	442	any ambulance-type motor vehicle used exclusively to transport any 350
443	443	medically incapacitated individual, except any such vehicle used to 351
444	444	transport any such individual for payment, and (B) any ambulance 352
445	445	operating under a license or certificate issued in accordance with the 353
446	446	provisions of section 19a-180. 354
447	447	Raised Bill No. 7176
448	448
449	449
450	450
451	451	LCO No. 4527 13 of 14
452	452
453	453	Sec. 5. Section 12-543 of the general statutes is repealed and the 355
454	454	following is substituted in lieu thereof (Effective July 1, 2025): 356
455	455	(a) There is hereby imposed a tax equivalent to ten per cent of any 357
456	456	amount paid as dues or initiation fees to any social, athletic or sporting 358
457	457	club. Such tax shall be imposed upon the club receiving such amounts. 359
458	458	Reimbursement for such tax shall be collected by the club from the 360
459	459	member. Such reimbursement, termed "tax", shall be paid by the 361
460	460	member to the club charging the dues or initiation fees. Such tax when 362
461	461	added to the amounts charged shall be a debt from the member to the 363
462	462	club charging such amounts and shall be recoverable at law. The 364
463	463	amount of tax reimbursement, when so collected, shall be deemed to be 365
464	464	a special fund in trust for the state. [of Connecticut.] 366
465	465	(b) The following shall be exempt from the dues tax: 367
466	466	(1) A club [shall be exempt from the dues tax] if the annual dues of a 368
467	467	member enjoying full privileges and any initiation fee required of such 369
468	468	a member are each [one hundred] two hundred fifty dollars or less; [.] 370
469	469	(2) A club sponsored and controlled by a charitable or religious 371
470	470	organization, a governmental agency or a nonprofit educational 372
471	471	institution; [shall be exempt from the dues tax.] 373
472	472	(3) Any society, order or association operating under the lodge 374
473	473	system or any local fraternal organization among students of a college 375
474	474	or university; [shall be exempt from the dues tax.] and 376
475	475	(4) Lawn bowling clubs. [shall be exempt from the dues tax.] 377
476	476	This act shall take effect as follows and shall amend the following
477	477	sections:
478	478
479	479	Section 1 July 1, 2025, and
480	480	applicable to sales
481	481	occurring on or after July
482	482	1, 2025
483	483	12-408(1)
484	484	Raised Bill No. 7176
485	485
486	486
487	487
488	488	LCO No. 4527 14 of 14
489	489
490	490	Sec. 2 July 1, 2025, and
491	491	applicable to sales
492	492	occurring on or after July
493	493	1, 2025
494	494	12-411(1)
495	495	Sec. 3 July 1, 2025 12-412(58)
496	496	Sec. 4 July 1, 2025, and
497	497	applicable to sales
498	498	occurring on or after July
499	499	1, 2025
500	500	12-412(127)
501	501	Sec. 5 July 1, 2025 12-543
502	502
503	503	Statement of Purpose:
504	504	To (1) increase the sales price threshold of motor vehicles subject to a
505	505	higher sales and use taxes rate, (2) dedicate a portion of the revenue
506	506	generated from the meals tax to the Tourism Fund, (3) extend a sales
507	507	and use taxes exemption for certain joint ventures within the aircraft
508	508	industry, (4) exempt from the sales and use taxes the sale of and the
509	509	storage, use or other consumption in this state of ambulance-type motor
510	510	vehicles and ambulances, and (5) increase the threshold for imposition
511	511	of the dues tax.
512	512
513	513	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
514	514	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
515	515	underlined.]
516	516