Connecticut 2025 Regular Session

Connecticut House Bill HB07264 Compare Versions

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

Old	New	Differences
1	1
2	2
3	3	LCO No. 6363 1 of 11
4	4
5	5	General Assembly Raised Bill No. 7264
6	6	January Session, 2025
7	7	LCO No. 6363
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 INITIATIVES FOR THE COLLECTION OF
21	21	UNPAID TAXES AND THE DEPARTMENT OF REVENUE SERVICES'
22	22	RECOMMENDATIONS FOR REVISIONS TO THE TAX AND RELATED
23	23	STATUTES.
24	24	Be it enacted by the Senate and House of Representatives in General
25	25	Assembly convened:
26	26
27	27	Section 1. Section 12-35c of the general statutes is repealed and the 1
28	28	following is substituted in lieu thereof (Effective from passage): 2
29	29	(a) At the request of the Commissioner of Revenue Services, the 3
30	30	Attorney General may bring suit in the name of this state in the 4
31	31	appropriate court of any other state or the District of Columbia to collect 5
32	32	any tax legally due this state; and any political subdivision of this state 6
33	33	or the appropriate officer thereof, acting in its behalf, may bring suit in 7
34	34	the appropriate court of any other state or the District of Columbia to 8
35	35	collect any tax legally due such political subdivision. 9
36	36	(b) The Commissioner of Revenue Services may enter into 10
37	37	agreements with collection agencies and attorneys for collection 11
38	38	services, for the purposes of collecting a taxpayer's unpaid taxes and 12
39	39	Raised Bill No. 7264
40	40
41	41
42	42
43	43	LCO No. 6363 2 of 11
44	44
45	45	penalties and interest thereon. Such collection services may be 13
46	46	performed both within and without this state and may include bringing 14
47	47	an action in the name of this state in the appropriate court of any other 15
48	48	state or the District of Columbia to collect any tax legally due this state. 16
49	49	[(b)] (c) The courts shall recognize and enforce liabilities for taxes 17
50	50	similar to the taxes imposed by this state and lawfully imposed by any 18
51	51	other state, the District of Columbia or any political subdivision of such 19
52	52	state or district, which extends a like comity to this state, and the duly 20
53	53	authorized officer of any other state, the District of Columbia or any 21
54	54	political subdivision of such state or district, may sue for the collection 22
55	55	of such taxes in the courts of this state. A certificate by the Secretary of 23
56	56	the State of such other state or the Secretary of the District of Columbia, 24
57	57	as applicable, that the officer suing for the collection of such a tax is duly 25
58	58	authorized to collect the same shall be conclusive proof of such 26
59	59	authority. A certificate by the Commissioner of Revenue Services that 27
60	60	the tax of such other state, the District of Columbia or a political 28
61	61	subdivision of such state or district is similar to a tax imposed by this 29
62	62	state shall be prima facie evidence of such similarity. 30
63	63	(d) For the purposes of this section, the words "tax" and "taxes" shall 31
64	64	include interest and penalties due under any taxing statute, and liability 32
65	65	for such interest or penalties, or both, due under a taxing statute of 33
66	66	another state, the District of Columbia or a political subdivision of such 34
67	67	state or district shall be recognized and enforced by the courts of this 35
68	68	state to the same extent that the laws of such other state or district, as 36
69	69	applicable, permit the enforcement in its courts of liability for such 37
70	70	interest or penalties, or both, due under the tax laws of this state or any 38
71	71	political subdivision thereof. 39
72	72	Sec. 2. Section 12-35h of the general statutes is repealed and the 40
73	73	following is substituted in lieu thereof (Effective from passage): 41
74	74	When an agreement has been entered into by the Commissioner of 42
75	75	Revenue Services under section 12-35c, as amended by this act, or by the 43
76	76	Raised Bill No. 7264
77	77
78	78
79	79
80	80	LCO No. 6363 3 of 11
81	81
82	82	state for the [Commissioner of Revenue Services] commissioner, with a 44
83	83	collection agency or attorney for the purpose of collecting a [taxpayer’s] 45
84	84	taxpayer's unpaid taxes and penalties and interest thereon, the account 46
85	85	of the taxpayer shall be credited with the amounts of such unpaid taxes, 47
86	86	penalties and interest actually collected by the collection agency or 48
87	87	attorney before such amounts are reduced by the compensation paid by 49
88	88	the commissioner to, or retained by, the collection agency or attorney 50
89	89	for collection services provided pursuant to such agreement. 51
90	90	Sec. 3. Section 12-39g of the general statutes is repealed and the 52
91	91	following is substituted in lieu thereof (Effective from passage): 53
92	92	(a) Upon notification to the Comptroller by the Commissioner of 54
93	93	Revenue Services that any taxes, including penalties and interest related 55
94	94	thereto, (1) are [(1)] due to the state from any person and unpaid and a 56
95	95	period in excess of thirty days has elapsed following the date on which 57
96	96	such taxes were due, and (2) are not the subject of a timely filed 58
97	97	administrative appeal to [said] the commissioner or of a timely filed 59
98	98	appeal pending before any court of competent jurisdiction, the 60
99	99	Comptroller shall withhold any order upon the Treasurer for payment 61
100	100	of any amount payable by the state to such person unless the amount so 62
101	101	payable is reduced by the amount of such taxes, penalties and interest, 63
102	102	provided any such amount payable by the state shall not be so reduced 64
103	103	if such amount payable is a payment of salary or wages, or any payment 65
104	104	in lieu of or in addition to such salary or wages, to a state employee. The 66
105	105	Comptroller shall promptly notify the Commissioner of Revenue 67
106	106	Services of any payment reduced under the provisions of this [section] 68
107	107	subsection. 69
108	108	(b) With respect to any payments a department or office of the state 70
109	109	is authorized to make by means other than through the Comptroller, no 71
110	110	such payment shall be made unless such department or office first 72
111	111	requests and obtains clearance from the commissioner that the person 73
112	112	to whom the payment is to be made owes no taxes, penalties or interest 74
113	113	to the state. The commissioner shall promptly notify such department 75
114	114	Raised Bill No. 7264
115	115
116	116
117	117
118	118	LCO No. 6363 4 of 11
119	119
120	120	or office whether such person owes any such taxes, penalties or interest. 76
121	121	If the commissioner notifies such department or office that any taxes, 77
122	122	including penalties and interest related thereto, (1) are due to the state 78
123	123	from such person and unpaid and a period in excess of thirty days has 79
124	124	elapsed following the date on which such taxes were due, and (2) are 80
125	125	not the subject of a timely filed administrative appeal to the 81
126	126	commissioner or of a timely filed appeal pending before any court of 82
127	127	competent jurisdiction, such department or office shall withhold 83
128	128	payment of any amount payable to such person unless the amount so 84
129	129	payable is reduced by the amount of such taxes, penalties and interest, 85
130	130	provided any such amount payable by the state shall not be so reduced 86
131	131	if such amount payable is a payment of salary or wages, or any payment 87
132	132	in lieu of or in addition to such salary or wages, to a state employee. The 88
133	133	department or office shall promptly notify the commissioner of any 89
134	134	payment reduced under the provisions of this subsection and remit the 90
135	135	amount withheld to the commissioner. 91
136	136	[(b)] (c) For purposes of [subsection (a)] subsections (a) and (b) of this 92
137	137	section, any taxes for general or special purposes levied by a 93
138	138	municipality, any taxes imposed under chapter 223 and payable to such 94
139	139	municipality, any fines, penalties, costs or fees payable to such 95
140	140	municipality for the violation of any lawful regulation or ordinance in 96
141	141	furtherance of any general powers as enumerated in section 7-148, or 97
142	142	any charge payable to such municipality for connection with or for the 98
143	143	use of a waterworks or sewerage system shall be treated as if they were 99
144	144	taxes due to the state, where, pursuant to section 12-2, an agreement 100
145	145	exists between the commissioner and the governing authority of such 101
146	146	municipality providing for the collection by the commissioner, on behalf 102
147	147	of such municipality, of such taxes, fines, penalties, costs or fees, or 103
148	148	charges, provided such taxes, fines, penalties, costs or fees, or charges 104
149	149	(1) are [(1)] unpaid and a period in excess of thirty days has elapsed 105
150	150	following the date on which they were due, and (2) are not the subject 106
151	151	of a timely filed administrative appeal or of a timely filed appeal 107
152	152	pending before any court of competent jurisdiction. 108
153	153	Raised Bill No. 7264
154	154
155	155
156	156
157	157	LCO No. 6363 5 of 11
158	158
159	159	Sec. 4. (NEW) (Effective from passage) (a) The Commissioners of 109
160	160	Revenue Services and Motor Vehicles may enter into an agreement 110
161	161	pursuant to which the Commissioner of Motor Vehicles shall not issue 111
162	162	or renew a motor vehicle operator's license or a motor vehicle certificate 112
163	163	of registration for any person from whom any taxes, including penalties 113
164	164	and interest related thereto, (1) are due to the state and unpaid and a 114
165	165	period in excess of thirty days has elapsed following the date on which 115
166	166	such taxes were due, and (2) are not the subject of a timely filed 116
167	167	administrative appeal to the Commissioner of Revenue Services or of a 117
168	168	timely filed appeal pending before any court of competent jurisdiction. 118
169	169	The agreement shall include the procedures by which the Commissioner 119
170	170	of Revenue Services will provide a list of such persons to the 120
171	171	Commissioner of Motor Vehicles, how frequently such list will be 121
172	172	updated and provided and any other provisions the commissioners 122
173	173	deem necessary to carry out the provisions of this section. 123
174	174	(b) At least sixty days prior to the provision of the list to the 124
175	175	Commissioner of Motor Vehicles, the Commissioner of Revenue 125
176	176	Services shall notify each person who owes taxes, penalties or interest 126
177	177	to the state as set forth in subsection (a) of this section of such person's 127
178	178	inclusion in the list and of such person's right to appeal such inclusion. 128
179	179	Such person may request, not later than sixty days after the date of such 129
180	180	notification, a hearing with the Commissioner of Revenue Services. Such 130
181	181	request shall be in writing and set forth the grounds on which such 131
182	182	person is contesting inclusion in such list. If such person does not 132
183	183	request a hearing or fails to request a hearing in accordance with the 133
184	184	provisions of this subsection, the Commissioner of Revenue Services 134
185	185	shall include such person in the list provided to the Commissioner of 135
186	186	Motor Vehicles. The action of the Commissioner of Revenue Services on 136
187	187	any request for a hearing shall not be subject to appeal. 137
188	188	(c) Upon receipt of the list pursuant to subsection (a) of this section, 138
189	189	the Commissioner of Motor Vehicles shall not issue or renew a motor 139
190	190	vehicle operator's license or a motor vehicle certificate of registration for 140
191	191	any person included in such list until such person has paid all such 141
192	192	Raised Bill No. 7264
193	193
194	194
195	195
196	196	LCO No. 6363 6 of 11
197	197
198	198	taxes, penalties and interest owed to the state or makes a payment 142
199	199	arrangement acceptable to the Commissioner of Revenue Services. 143
200	200	(d) Nothing in this section shall be construed to create any cause of 144
201	201	action to challenge the taxes, penalties or interest owed to the state by a 145
202	202	person included in such list. 146
203	203	(e) Nothing in this section shall be construed to prohibit any person 147
204	204	whose motor vehicle operator's license is not issued or renewed 148
205	205	pursuant to this section from applying to the Commissioner of Motor 149
206	206	Vehicles for a special operator's permit in accordance with the 150
207	207	provisions of section 14-37a of the general statutes. 151
208	208	Sec. 5. Subsection (k) of section 8-395 of the general statutes is 152
209	209	repealed and the following is substituted in lieu thereof (Effective from 153
210	210	passage): 154
211	211	(k) The Connecticut Housing Finance Authority [, with the approval 155
212	212	of the Commissioner of Revenue Services,] shall adopt written 156
213	213	procedures in accordance with section 1-121 to implement the 157
214	214	provisions of this section. Such procedures shall include provisions for 158
215	215	issuing tax credit vouchers for cash contributions to housing programs 159
216	216	or projects based on a system of ranking housing programs. In 160
217	217	establishing such ranking system, the authority shall consider the 161
218	218	following: (1) The readiness of the project to be built; (2) use of the funds 162
219	219	to build or rehabilitate a specific housing project or to capitalize a 163
220	220	revolving loan fund providing low-cost loans for housing construction, 164
221	221	repair or rehabilitation to benefit persons of very low, low and moderate 165
222	222	income; (3) the extent the project will benefit families at or below 166
223	223	twenty-five per cent of the area median income and families with 167
224	224	incomes between twenty-five per cent and fifty per cent of the area 168
225	225	median income, as defined by the United States Department of Housing 169
226	226	and Urban Development; (4) evidence of the general administrative 170
227	227	capability of the nonprofit corporation to build or rehabilitate housing; 171
228	228	(5) evidence that any funds received by the nonprofit corporation for 172
229	229	Raised Bill No. 7264
230	230
231	231
232	232
233	233	LCO No. 6363 7 of 11
234	234
235	235	which a voucher was issued were used to accomplish the goals set forth 173
236	236	in the application; and (6) with respect to any income year commencing 174
237	237	on or after January 1, 1998: (A) Use of the funds to provide housing 175
238	238	opportunities in urban areas and the impact of such funds on 176
239	239	neighborhood revitalization; and (B) the extent to which tax credit funds 177
240	240	are leveraged by other funds. 178
241	241	Sec. 6. Subsections (a) and (b) of section 12-586f of the general statutes 179
242	242	are repealed and the following is substituted in lieu thereof (Effective 180
243	243	from passage): 181
244	244	(a) For the purposes of this section, "tribe" means the Mashantucket 182
245	245	Pequot Tribe and "compact" means the Tribal-State Compact between 183
246	246	the tribe and the state of Connecticut, as incorporated and amended in 184
247	247	the Final Mashantucket Pequot Gaming Procedures prescribed by the 185
248	248	Secretary of the United States Department of the Interior pursuant to 186
249	249	Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and 187
250	250	published in 56 Federal Register 24996 (May 31, 1991), as amended from 188
251	251	time to time, and includes any new compact entered into between the 189
252	252	state and the tribe pursuant to section 12-851. 190
253	253	(b) The expenses of administering the provisions of the compact shall 191
254	254	be financed as provided in this section. Assessments for regulatory costs 192
255	255	incurred by any state agency [which] that are subject to reimbursement 193
256	256	by the tribe in accordance with the provisions of the compact shall be 194
257	257	made by the Commissioner of [Revenue Services] Consumer Protection 195
258	258	in accordance with the provisions of the compact, including provisions 196
259	259	respecting adjustment of excess assessments. Any underassessment for 197
260	260	a prior fiscal year may be included in a subsequent assessment but shall 198
261	261	be specified as such. Payments made by the tribe in accordance with the 199
262	262	provisions of the compact shall be deposited in the General Fund and 200
263	263	shall be credited to the appropriation for the state agency incurring such 201
264	264	costs. 202
265	265	Sec. 7. Subsections (a) and (b) of section 12-586g of the general statutes 203
266	266	Raised Bill No. 7264
267	267
268	268
269	269
270	270	LCO No. 6363 8 of 11
271	271
272	272	are repealed and the following is substituted in lieu thereof (Effective 204
273	273	from passage): 205
274	274	(a) For the purposes of this section, "tribe" means the Mohegan Tribe 206
275	275	of Indians of Connecticut and "compact" means the Tribal-State 207
276	276	Compact between the tribe and the state of Connecticut, dated May 17, 208
277	277	1994, as amended from time to time, and includes any new compact 209
278	278	entered into between the state and the tribe pursuant to section 12-851. 210
279	279	(b) The expenses of administering the provisions of the compact shall 211
280	280	be financed as provided in this section. Assessments for regulatory costs 212
281	281	incurred by any state agency [which] that are subject to reimbursement 213
282	282	by the tribe in accordance with the provisions of the compact shall be 214
283	283	made by the Commissioner of [Revenue Services] Consumer Protection 215
284	284	in accordance with the provisions of the compact, including provisions 216
285	285	respecting adjustment of excess assessments. Any underassessment for 217
286	286	a prior fiscal year may be included in a subsequent assessment but shall 218
287	287	be specified as such. Payments made by the tribe in accordance with the 219
288	288	provisions of the compact shall be deposited in the General Fund and 220
289	289	shall be credited to the appropriation for the state agency incurring such 221
290	290	costs. 222
291	291	Sec. 8. Section 12-431 of the general statutes is repealed and the 223
292	292	following is substituted in lieu thereof (Effective from passage): 224
293	293	(a) (1) Except as otherwise provided in subdivision (2) or (3) of this 225
294	294	subsection, in case of the purchase of any motor vehicle, snowmobile, 226
295	295	vessel or aircraft other than from a licensed motor vehicle dealer or 227
296	296	licensed motor vehicle lessor, a snowmobile dealer, a licensed marine 228
297	297	dealer or a retailer of aircraft, respectively, the receipts therefrom shall 229
298	298	not be included in the measure of the sales tax, but the purchaser thereof 230
299	299	shall pay a use tax on the total purchase price thereof to the 231
300	300	Commissioner of Revenue Services, as provided in section 12-411, in the 232
301	301	case of tangible personal property purchased from a retailer, and, in the 233
302	302	case of motor vehicles, vessels and snowmobiles, before obtaining an 234
303	303	Raised Bill No. 7264
304	304
305	305
306	306
307	307	LCO No. 6363 9 of 11
308	308
309	309	original or transferal registration, in accordance with regulations 235
310	310	prescribed by the Commissioner of Revenue Services and on forms 236
311	311	approved by the Commissioner of Revenue Services and the 237
312	312	Commissioner of Motor Vehicles, and, in the case of aircraft, before 238
313	313	obtaining an original or transferal registration, in accordance with 239
314	314	regulations prescribed by the Commissioner of Revenue Services and 240
315	315	on forms approved by the Commissioner of Revenue Services and the 241
316	316	Commissioner of Transportation. 242
317	317	(2) No use tax shall be payable in cases of purchase (A) when the 243
318	318	purchaser is the spouse, mother, father, brother, sister or child of the 244
319	319	seller, (B) when a motor vehicle or vessel is sold in connection with the 245
320	320	organization, reorganization or liquidation of an incorporated business, 246
321	321	provided the last taxable sale or use of the motor vehicle or vessel was 247
322	322	subjected to a tax imposed by this chapter and the purchaser is the 248
323	323	incorporated business or a stockholder thereof, (C) when a motor 249
324	324	vehicle is sold in connection with the organization or termination of a 250
325	325	partnership or limited liability company, provided the last taxable sale 251
326	326	or use of the motor vehicle was subjected to a tax imposed by this 252
327	327	chapter and the purchaser is the partnership or limited liability 253
328	328	company, as the case may be, or a partner or member thereof as the case 254
329	329	may be, or (D) when a motor vehicle which has been declared a total 255
330	330	loss pursuant to the provisions of section 14-16c is rebuilt for sale or use, 256
331	331	provided the purchaser was subjected to the tax imposed by this chapter 257
332	332	for the last taxable sale of said vehicle. 258
333	333	(3) When a motor vehicle in which special equipment has previously 259
334	334	been installed exclusively for the use of a person with physical 260
335	335	disabilities is sold for use by a person with physical disabilities, the 261
336	336	purchaser shall pay a use tax on the total purchase price of the vehicle, 262
337	337	less the portion of such price attributable to such special equipment. 263
338	338	Unless established otherwise, the portion of the purchase price 264
339	339	attributable to the motor vehicle shall be deemed to be the value 265
340	340	determined pursuant to subsection (b) of this section. 266
341	341	Raised Bill No. 7264
342	342
343	343
344	344
345	345	LCO No. 6363 10 of 11
346	346
347	347	(b) In order to determine the total purchase price of a motor vehicle 267
348	348	or an aircraft for the purposes of this section, the commissioner shall, by 268
349	349	regulation, adopt by reference a book of valuations, for various 269
350	350	purposes, of motor vehicles and of aircraft, published by [a] an 270
351	351	applicable nationally recognized organization. The commissioner shall, 271
352	352	by regulation, determine which of the various valuations of motor 272
353	353	vehicles or aircraft contained in any such applicable book is appropriate 273
354	354	for the purposes of this section and such value shall, regardless of the 274
355	355	value placed on the motor vehicle or aircraft at the time of the purchase 275
356	356	by the parties to such transaction, be presumed to be the total purchase 276
357	357	price of such motor vehicle or aircraft for the purposes of this section 277
358	358	unless the purchaser can prove to the satisfaction of the commissioner 278
359	359	that such value is incorrect. 279
360	360	This act shall take effect as follows and shall amend the following
361	361	sections:
362	362
363	363	Section 1 from passage 12-35c
364	364	Sec. 2 from passage 12-35h
365	365	Sec. 3 from passage 12-39g
366	366	Sec. 4 from passage New section
367	367	Sec. 5 from passage 8-395(k)
368	368	Sec. 6 from passage 12-586f(a) and (b)
369	369	Sec. 7 from passage 12-586g(a) and (b)
370	370	Sec. 8 from passage 12-431
371	371
372	372	Statement of Purpose:
373	373	To (1) authorize the Commissioner of Revenue Services to enter into
374	374	agreements with collection agencies and attorneys to collect unpaid
375	375	taxes, (2) require departments and offices of the state to withhold
376	376	amounts of unpaid taxes, penalties and interest from payments payable
377	377	to persons owing such taxes, penalties and interest, (3) authorize the
378	378	Commissioners of Revenue Services and Motor Vehicles to enter into an
379	379	agreement to not issue or renew motor vehicle operator's licenses or
380	380	motor vehicle certificates of registration for persons who owe taxes,
381	381	penalties or interest to the state until such amounts are paid, and (4)
382	382	implement the Department of Revenue Services' recommendations for
383	383	revisions to the tax and related statutes.
384	384	Raised Bill No. 7264
385	385
386	386
387	387
388	388	LCO No. 6363 11 of 11
389	389
390	390
391	391	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
392	392	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
393	393	underlined.]
394	394