Connecticut 2025 Regular Session

Connecticut House Bill HB07270 Compare Versions

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

Old	New	Differences
1	1
2	2
3	3	LCO No. 6964 1 of 39
4	4
5	5	General Assembly Raised Bill No. 7270
6	6	January Session, 2025
7	7	LCO No. 6964
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 REQUIREMENTS FOR CERTAIN TAX
21	21	APPEALS, THE DISAGGREGATION OF CERTAIN TAX SOURCING
22	22	INFORMATION, THE AMORTIZABLE BOND PREMIUM SUBTRACTION
23	23	FOR PURPOSES OF THE PERSONAL INCOME TAX AND THE
24	24	APPLICATION OF VALUATION ALLOWANCE FOR CERTAIN
25	25	COMBINED GROUP REPORTING.
26	26	Be it enacted by the Senate and House of Representatives in General
27	27	Assembly convened:
28	28
29	29	Section 1. (NEW) (Effective October 1, 2025) (a) (1) For a protest filed 1
30	30	by a taxpayer on or after October 1, 2025, under the provisions of any 2
31	31	section enumerated in subdivision (2) of this subsection, such taxpayer 3
32	32	shall file the protest on a form prescribed by the Commissioner of 4
33	33	Revenue Services that includes the following for the protest to be valid: 5
34	34	(A) The legal name of the taxpayer filing the protest and the 6
35	35	taxpayer's legal address, mailing address, phone number, federal tax 7
36	36	identification number and, if applicable, Connecticut tax registration 8
37	37	number; 9
38	38	(B) The tax type at issue, the period or periods at issue, the case 10
39	39	identification number or notice number assigned to the matter the 11
40	40	Raised Bill No. 7270
41	41
42	42
43	43
44	44	LCO No. 6964 2 of 39
45	45
46	46	taxpayer is contesting and the exact amount of the tax, penalty and 12
47	47	interest, as applicable, the taxpayer is contesting; 13
48	48	(C) If applicable, the name of the person to whom the taxpayer has 14
49	49	issued a power of attorney and the power of attorney's legal address, 15
50	50	mailing address, phone number and electronic mail address; 16
51	51	(D) Each issue the taxpayer wishes the commissioner to consider in 17
52	52	connection with such protest, including the amount of tax, penalty or 18
53	53	interest implicated by each issue, the factual grounds associated with 19
54	54	each issue, the documentary evidence supporting each issue and the 20
55	55	legal grounds for each issue; 21
56	56	(E) All evidence the taxpayer wishes the commissioner to consider 22
57	57	that supports the taxpayer's filing of the protest; and 23
58	58	(F) An affirmation from the taxpayer that the information contained 24
59	59	in the protest filing and any attachments thereto is true and accurate and 25
60	60	that all of the evidence the taxpayer intends to provide in support of the 26
61	61	protest has been identified and provided with the filing. 27
62	62	(2) The provisions of subdivision (1) of this subsection shall apply to 28
63	63	a protest filed under section 12-206, 12-225, 12-226 or 12-236 of the 29
64	64	general statutes, as each is amended by this act; 12-263e or 12-263m of 30
65	65	the general statutes; 12-268i, 12-311, 12-330l or 12-330ee of the general 31
66	66	statutes, as each is amended by this act; 12-330ll, 12-330mm or 12-395 of 32
67	67	the general statutes; 12-418, 12-447 or 12-461 of the general statutes, as 33
68	68	each is amended by this act; 12-477aa of the general statutes; 12-489, 12-34
69	69	493 or 12-493a of the general statutes, as each is amended by this act; 12-35
70	70	502a of the general statutes; 12-553 or 12-595 of the general statutes, as 36
71	71	each is amended by this act; 12-629, 12-649, 12-668 or 12-692 of the 37
72	72	general statutes; 12-729 or 12-790c of the general statutes, as each is 38
73	73	amended by this act; or 13b-121, 16-331cc, 22a-232, 22a-245a, 28-30f, 38a-39
74	74	277 or 51-81b of the general statutes. 40
75	75	(3) Any taxpayer that files a timely protest under any of the sections 41
76	76	Raised Bill No. 7270
77	77
78	78
79	79
80	80	LCO No. 6964 3 of 39
81	81
82	82	enumerated in subdivision (2) of this subsection shall have the 42
83	83	affirmative obligation to actively prosecute such protest, which 43
84	84	obligation shall include the provision of all information and 44
85	85	documentation the commissioner requires to render a determination of 45
86	86	such protest. 46
87	87	(4) For the purposes of this section, "protest" includes a request for a 47
88	88	hearing under any of the sections set forth in subdivision (2) of this 48
89	89	subsection, as applicable. 49
90	90	(b) If a taxpayer files a protest without all of the information required 50
91	91	under subdivision (1) of subsection (a) of this section, the commissioner 51
92	92	shall notify the taxpayer of the missing information. The taxpayer may 52
93	93	submit such information not later than ten business days after such 53
94	94	notification. 54
95	95	(c) If a taxpayer is unable to submit, at the time a protest is filed, all 55
96	96	of the evidence the taxpayer wishes the commissioner to consider, the 56
97	97	taxpayer may request an extension of time to submit such evidence. 57
98	98	Such extension shall not exceed three months from the date the protest 58
99	99	is due and shall be deemed granted by the commissioner if the taxpayer 59
100	100	includes such request for extension at the time the protest is filed and 60
101	101	identifies the specific evidence the taxpayer intends to submit. The 61
102	102	commissioner may refuse to consider evidence that is submitted after 62
103	103	the protest is filed or the date any extension granted under this 63
104	104	subparagraph expires, as applicable. Nothing in this subsection shall 64
105	105	prohibit the commissioner from requesting additional information or 65
106	106	documentation from the taxpayer in accordance with the provisions of 66
107	107	subsection (e) of this section. 67
108	108	(d) Notwithstanding any provision of the general statutes, if a 68
109	109	taxpayer fails to submit the information or evidence within the 69
110	110	applicable time period prescribed under subsection (b) or (c) of this 70
111	111	section, the protest shall be deemed invalid and the commissioner shall 71
112	112	not be required to consider or otherwise act on such protest. The 72
113	113	Raised Bill No. 7270
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115	115
116	116
117	117	LCO No. 6964 4 of 39
118	118
119	119	commissioner shall dismiss any such invalid protest without 73
120	120	consideration of the merits and shall notify the taxpayer of such 74
121	121	dismissal. A taxpayer may appeal such dismissal, not later than thirty 75
122	122	days after such notification, to the superior court for the judicial district 76
123	123	of New Britain, which court's jurisdiction shall be limited to the 77
124	124	commissioner's determination that the protest was invalid. If the court 78
125	125	finds that the commissioner's determination was made in error, the 79
126	126	court shall remand the matter to the commissioner with an order to 80
127	127	consider the merits of the protest. 81
128	128	(e) (1) The commissioner may request additional information or 82
129	129	documentation from a taxpayer that has filed a protest in accordance 83
130	130	with the provisions of this section if the commissioner determines such 84
131	131	additional information or documentation is necessary for the 85
132	132	commissioner to render a determination of such protest. The 86
133	133	commissioner shall notify the taxpayer in writing of the additional 87
134	134	information or documentation required and provide at least ten 88
135	135	business days for the taxpayer to submit such additional information or 89
136	136	documentation. If the taxpayer fails to submit the requested information 90
137	137	or documentation after two written requests for the same information 91
138	138	or documentation, the taxpayer shall be deemed to have abandoned the 92
139	139	protest. The commissioner shall dismiss any such abandoned protest 93
140	140	without consideration of the merits and shall notify the taxpayer of such 94
141	141	dismissal. A taxpayer may appeal such dismissal, not later than thirty 95
142	142	days after such notification, to the superior court for the judicial district 96
143	143	of New Britain, which court's jurisdiction shall be limited to the 97
144	144	commissioner's determination that the protest was abandoned. If the 98
145	145	court finds that the commissioner's determination was made in error, 99
146	146	the court shall remand the matter to the commissioner with an order to 100
147	147	consider the merits of the protest. 101
148	148	(2) Nothing in subdivision (1) of this subsection shall be construed to 102
149	149	limit or prohibit the commissioner from making multiple requests for 103
150	150	additional information or documentation the commissioner determines 104
151	151	is necessary for the commissioner to render a determination of such 105
152	152	Raised Bill No. 7270
153	153
154	154
155	155
156	156	LCO No. 6964 5 of 39
157	157
158	158	protest. 106
159	159	(3) The commissioner shall notify the taxpayer upon receipt of all of 107
160	160	the additional information and documentation requested pursuant to 108
161	161	this subsection. The commissioner shall render a determination not later 109
162	162	than one hundred eighty days after such notification with respect to the 110
163	163	subject of the protest. If the commissioner fails to render a determination 111
164	164	within the prescribed timeframe, the taxpayer is authorized to file an 112
165	165	appeal with the Superior Court in accordance with the applicable 113
166	166	statutory appeals provisions. 114
167	167	(f) The commissioner may adopt regulations, in accordance with the 115
168	168	provisions of chapter 54 of the general statutes, to implement the 116
169	169	provisions of this section. Notwithstanding the requirements of sections 117
170	170	4-168 to 4-172, inclusive, of the general statutes, prior to adopting such 118
171	171	regulations, the commissioner may issue policies and procedures, which 119
172	172	shall have the force and effect of law, to implement the provisions of this 120
173	173	section. The commissioner shall, at least fifteen days prior to the 121
174	174	effective date of such policy or procedure, post any such policy or 122
175	175	procedure on the Department of Revenue's Internet web site and submit 123
176	176	such policy or procedure to the Secretary of the State for posting on the 124
177	177	eRegulations System. Any such policy or procedure shall no longer be 125
178	178	effective upon the adoption of such policy and procedure as a final 126
179	179	regulation in accordance with the provisions of chapter 54 of the general 127
180	180	statutes or forty-eight months after the effective date of this section, 128
181	181	whichever is earlier. 129
182	182	Sec. 2. Section 12-206 of the general statutes is repealed and the 130
183	183	following is substituted in lieu thereof (Effective October 1, 2025, and 131
184	184	applicable to protests filed on or after October 1, 2025): 132
185	185	(a) If any company fails to pay the amount of tax reported to be due 133
186	186	on its return within the time specified under the provisions of this 134
187	187	chapter, there shall be imposed a penalty equal to ten per cent of such 135
188	188	amount due and unpaid, or fifty dollars, whichever is greater. Such 136
189	189	Raised Bill No. 7270
190	190
191	191
192	192
193	193	LCO No. 6964 6 of 39
194	194
195	195	amount shall bear interest at the rate of one per cent per month or 137
196	196	fraction thereof, from the due date of such tax until the date of payment. 138
197	197	(b) If any company has not made its return within three months after 139
198	198	the time specified under the provisions of this chapter, the 140
199	199	commissioner may make such return at any time thereafter, according 141
200	200	to the best information obtainable and according to the form prescribed. 142
201	201	To the tax imposed upon the basis of such return, there shall be added 143
202	202	an amount equal to ten per cent of such tax, or fifty dollars, whichever 144
203	203	is greater. The tax shall bear interest at the rate of one per cent per month 145
204	204	or fraction thereof, from the due date of such tax until the date of 146
205	205	payment. No taxpayer shall be subject to a penalty under both 147
206	206	subsections (a) and (b) of this section in relation to the same tax period. 148
207	207	(c) Subject to the provisions of section 12-3a, the commissioner may 149
208	208	waive all or part of the penalties provided under this chapter when it is 150
209	209	proven to [his] the commissioner's satisfaction that the failure to pay any 151
210	210	tax was due to reasonable cause and was not intentional or due to 152
211	211	neglect. 153
212	212	(d) Any person required under this chapter to pay any tax, or 154
213	213	required under this chapter or by regulations adopted in accordance 155
214	214	with the provisions of section 12-204g to make a return, keep any 156
215	215	records or supply any information, who wilfully fails to pay such tax, 157
216	216	make such return, keep such records or supply such information, at the 158
217	217	time required by law or regulations, shall, in addition to any other 159
218	218	penalty provided by law, be fined not more than one thousand dollars 160
219	219	or imprisoned not more than one year or both. As used in this 161
220	220	subsection, "person" includes any officer or employee of a corporation, 162
221	221	or a member or employee of a partnership under a duty to pay such tax, 163
222	222	to make such return, keep such records or supply such information. 164
223	223	Notwithstanding the provisions of section 54-193, no person shall be 165
224	224	prosecuted for a violation of the provisions of this subsection committed 166
225	225	on or after July 1, 1997, except within three years next after such 167
226	226	violation has been committed. 168
227	227	Raised Bill No. 7270
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229	229
230	230
231	231	LCO No. 6964 7 of 39
232	232
233	233	(e) Any person who wilfully delivers or discloses to the commissioner 169
234	234	or [his] the commissioner's authorized agent any list, return, account, 170
235	235	statement [,] or other document, known by [him] such person to be 171
236	236	fraudulent or false in any material matter, shall, in addition to any other 172
237	237	penalty provided by law, be guilty of a class D felony. No person shall 173
238	238	be charged with an offense under both subsections (d) and (e) of this 174
239	239	section in relation to the same tax period but such person may be 175
240	240	charged and prosecuted for both such offenses upon the same 176
241	241	information. 177
242	242	(f) (1) Any company subject to any tax or charge under this chapter, 178
243	243	believing that it has overpaid any tax, other than any estimated tax paid 179
244	244	pursuant to section 12-204c, due under the provisions of this chapter 180
245	245	may file a claim for refund in writing with the commissioner [within] 181
246	246	not later than three years [from] after the due date for which such 182
247	247	overpayment was made, stating the specific grounds upon which the 183
248	248	claim is founded. Failure to file a claim within the time prescribed in this 184
249	249	section constitutes a waiver of any demand against the state on account 185
250	250	of overpayment. Not later than ninety days following receipt of such 186
251	251	claim for refund, the commissioner shall determine whether such claim 187
252	252	is valid and, if so determined, said commissioner shall notify the State 188
253	253	Comptroller of the amount of such refund and the State Comptroller 189
254	254	shall draw an order on the State Treasurer in the amount thereof for 190
255	255	payment to the taxpayer. If the commissioner determines that such 191
256	256	claim is not valid, either in whole or in part, [he] the commissioner shall 192
257	257	mail notice of the proposed disallowance in whole or in part of the claim 193
258	258	to the claimant, which notice shall set forth briefly the commissioner's 194
259	259	findings of fact and the basis of disallowance in each case decided in 195
260	260	whole or in part adversely to the claimant. Sixty days after the date on 196
261	261	which it is mailed, a notice of proposed disallowance shall constitute a 197
262	262	final disallowance except only for such amounts as to which the 198
263	263	company has filed, as provided in subdivision (2) of this subsection, a 199
264	264	written protest with the commissioner. 200
265	265	(2) On or before the sixtieth day after the mailing of the proposed 201
266	266	Raised Bill No. 7270
267	267
268	268
269	269
270	270	LCO No. 6964 8 of 39
271	271
272	272	disallowance, the company may file with the commissioner a written 202
273	273	protest against the proposed disallowance in [which it sets forth the 203
274	274	grounds on which the protest is based] accordance with the provisions 204
275	275	of section 1 of this act. If a valid protest is filed, the commissioner shall 205
276	276	reconsider the proposed disallowance and, if the company has so 206
277	277	requested, may grant or deny the company or its authorized 207
278	278	representatives an oral hearing. 208
279	279	(3) The commissioner shall mail notice of [his] the commissioner's 209
280	280	determination to the company, which notice shall set forth briefly the 210
281	281	commissioner's findings of fact and the basis of decision in each case 211
282	282	decided in whole or in part adversely to the company. 212
283	283	(4) The action of the commissioner on the company's protest, other 213
284	284	than a protest deemed invalid under section 1 of this act, shall be final 214
285	285	upon the expiration of one month from the date on which [he] the 215
286	286	commissioner mails notice of his or her action to the company unless 216
287	287	within such period the company seeks judicial review of the 217
288	288	commissioner's determination pursuant to subsection (b) of section 12-218
289	289	208. 219
290	290	Sec. 3. Section 12-225 of the general statutes is repealed and the 220
291	291	following is substituted in lieu thereof (Effective October 1, 2025, and 221
292	292	applicable to protests filed on or after October 1, 2025): 222
293	293	(a) Any company [which] that, either intentionally or through error, 223
294	294	fails to include in its return items of income or invested capital or 224
295	295	[which] that claims unlawful deductions therefrom shall make a 225
296	296	supplemental return disclosing such facts within three years from the 226
297	297	due date of the return and, [within] not later than thirty days thereafter, 227
298	298	shall pay to the commissioner any tax due thereon, with interest upon 228
299	299	the amount of such additional tax at the rate of one per cent per month 229
300	300	or fraction thereof from the date when the original tax became due and 230
301	301	payable. 231
302	302	(b) (1) Any company [which] that fails to include in its return items 232
303	303	Raised Bill No. 7270
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305	305
306	306
307	307	LCO No. 6964 9 of 39
308	308
309	309	of deductions or includes items of nontaxable income or makes any 233
310	310	other error in such return may, within three years from the due date of 234
311	311	the return, file with the commissioner an amended return, together with 235
312	312	a claim for refund of taxes overpaid as shown by such amended return. 236
313	313	Failure to file a claim within the time prescribed in this section 237
314	314	constitutes a waiver of any demand against the state on account of 238
315	315	overpayment. The commissioner shall, within one hundred eighty days 239
316	316	of the receipt of such claim, determine whether such claim is valid and, 240
317	317	if so, the commissioner shall notify the State Comptroller of the amount 241
318	318	of such refund and the State Comptroller shall draw an order on the 242
319	319	State Treasurer in the amount thereof for payment to such company. If 243
320	320	the commissioner determines that such claim is not valid, either in 244
321	321	whole or in part, [he] the commissioner shall mail notice of the proposed 245
322	322	disallowance in whole or in part of the claim to the company, which 246
323	323	notice shall set forth briefly the commissioner's findings of fact and the 247
324	324	basis of disallowance in each case decided in whole or in part adversely 248
325	325	to the claimant. Sixty days after the date on which it is mailed, a notice 249
326	326	of proposed disallowance shall constitute a final disallowance except 250
327	327	only for such amount as to which the company has filed, as provided in 251
328	328	subdivision (2) of this subsection, a written protest with the 252
329	329	commissioner. For the purposes of computing any refund due or 253
330	330	adjusting net income as a result of the inclusion of income, the taxation 254
331	331	of which by the state of Connecticut is prohibited by federal law, 255
332	332	including the Constitution of the United States, as applied, no expenses 256
333	333	related to such income shall be deducted in computing net income 257
334	334	under this chapter. 258
335	335	(2) On or before the sixtieth day after the mailing of the proposed 259
336	336	disallowance, the company may file with the commissioner a written 260
337	337	protest against the proposed disallowance in [which it sets forth the 261
338	338	grounds on which the protest is based] accordance with the provisions 262
339	339	of section 1 of this act. If a valid protest is filed, the commissioner shall 263
340	340	reconsider the proposed disallowance and, if the company has so 264
341	341	requested, may grant or deny the company or its authorized 265
342	342	Raised Bill No. 7270
343	343
344	344
345	345
346	346	LCO No. 6964 10 of 39
347	347
348	348	representatives an oral hearing. 266
349	349	(3) The commissioner shall mail notice of [his] the commissioner's 267
350	350	determination to the company, which notice shall set forth briefly the 268
351	351	commissioner's findings of fact and the basis of decision in each case 269
352	352	decided in whole or in part adversely to the company. 270
353	353	(4) The action of the commissioner on the company's protest, other 271
354	354	than a protest deemed invalid under section 1 of this act, shall be final 272
355	355	upon the expiration of one month from the date on which [he] the 273
356	356	commissioner mails notice of his or her action to the company unless 274
357	357	within such period the company seeks judicial review of the 275
358	358	commissioner's determination pursuant to section 12-237. 276
359	359	Sec. 4. Section 12-226 of the general statutes is repealed and the 277
360	360	following is substituted in lieu thereof (Effective October 1, 2025): 278
361	361	(a) (1) Any company whose income, profits or earnings are changed, 279
362	362	adjusted or corrected for any income year by any official of the United 280
363	363	States government, or any agency thereof, in any respect affecting the 281
364	364	tax imposed by this part, shall provide notice of such change, 282
365	365	adjustment or correction to the commissioner by filing, on or before the 283
366	366	date that is ninety days after the final determination of such change, 284
367	367	adjustment or correction, or as otherwise required by the commissioner, 285
368	368	an amended return under this chapter, and shall concede the accuracy 286
369	369	of such determination or state wherein it is erroneous, and thereafter 287
370	370	promptly furnish to the commissioner any information, schedules, 288
371	371	records, documents or papers relating to such change, adjustment or 289
372	372	correction as the commissioner requires. The time for filing such return 290
373	373	may be extended by the commissioner upon due cause shown. If, upon 291
374	374	examination, the commissioner finds that the company is liable for the 292
375	375	payment of an additional tax, the commissioner shall, within a 293
376	376	reasonable time from the receipt of such return, notify the company of 294
377	377	the amount of such additional tax, together with interest thereon 295
378	378	computed at the rate of one per cent per month or fraction thereof from 296
379	379	Raised Bill No. 7270
380	380
381	381
382	382
383	383	LCO No. 6964 11 of 39
384	384
385	385	the date when the original tax became due and payable. [Within] Not 297
386	386	later than thirty days [of the mailing of] after the date on which such 298
387	387	notice is mailed, the company shall pay to the commissioner, in cash or 299
388	388	by check, draft or money order, drawn to the order of the Commissioner 300
389	389	of Revenue Services, the amount of such additional tax and interest. If, 301
390	390	upon examination of such return and related information, the 302
391	391	commissioner finds that the company has overpaid the tax due the state 303
392	392	and has not received from or been allowed by the United States 304
393	393	government, or any agency thereof, a credit or a benefit as a deduction 305
394	394	or otherwise, for or by reason of such overpayment, the State Treasurer 306
395	395	shall pay the company, upon order of the State Comptroller, the amount 307
396	396	of such overpayment. If the commissioner determines that the 308
397	397	company's claim of overpayment is not valid, either in whole or in part, 309
398	398	the commissioner shall mail notice to the company of the proposed 310
399	399	disallowance of the claim in whole or in part, which notice shall set forth 311
400	400	briefly the commissioner's findings of fact and the basis of disallowance 312
401	401	in each case decided in whole or in part adversely to the claimant. Sixty 313
402	402	days after the date on which it is mailed, a notice of proposed 314
403	403	disallowance shall constitute a final disallowance except only for such 315
404	404	amounts as to which the company has filed a written protest with the 316
405	405	commissioner, as provided in subdivision (2) of this subsection. 317
406	406	(2) On or before the sixtieth day after the mailing of the proposed 318
407	407	disallowance, the company may file with the commissioner a written 319
408	408	protest against the proposed disallowance in [which it sets forth the 320
409	409	grounds on which the protest is based] accordance with the provisions 321
410	410	of section 1 of this act. If a valid protest is filed, the commissioner shall 322
411	411	reconsider the proposed disallowance and, if the company has so 323
412	412	requested, may grant or deny the company or its authorized 324
413	413	representatives an oral hearing. 325
414	414	(3) The commissioner shall mail notice of [his] the commissioner's 326
415	415	determination to the company, which notice shall set forth briefly the 327
416	416	commissioner's findings of fact and the basis of decision in each case 328
417	417	decided in whole or in part adversely to the company. 329
418	418	Raised Bill No. 7270
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420	420
421	421
422	422	LCO No. 6964 12 of 39
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424	424	(4) The action of the commissioner on the company's protest, other 330
425	425	than a protest deemed invalid under section 1 of this act, shall be final 331
426	426	upon the expiration of one month from the date on which [he] the 332
427	427	commissioner mails notice of his or her action to the company unless 333
428	428	within such period the company seeks judicial review of the 334
429	429	commissioner's determination pursuant to section 12-237. 335
430	430	(b) (1) Any company filing an amended return with any official of the 336
431	431	United States government, or any agency thereof, shall make an 337
432	432	amended return to the commissioner on or before the date that is ninety 338
433	433	days after the final determination is made on the amended return by 339
434	434	such federal official or agency. The commissioner shall treat any such 340
435	435	amended return reporting a tax overpayment as filed in processible 341
436	436	form, as described in subsection (c) of section 12-227, after proof of such 342
437	437	final determination on such amended federal return by such federal 343
438	438	official or agency is submitted to the commissioner. The time for filing 344
439	439	such amended return may be extended by the commissioner upon due 345
440	440	cause shown. If, upon examination, the commissioner finds that the 346
441	441	company is liable for the payment of an additional tax, the 347
442	442	commissioner shall, within a reasonable time from the receipt of such 348
443	443	amended return, notify the company of the amount of such additional 349
444	444	tax, together with interest thereon computed at the rate of one per cent 350
445	445	per month or fraction thereof from the date when the original tax 351
446	446	became due and payable. [Within] Not later than thirty days [of the 352
447	447	mailing of] after the date on which such notice is mailed, the company 353
448	448	shall pay to the commissioner, in cash or by check, draft or money order, 354
449	449	drawn to the order of the Commissioner of Revenue Services, the 355
450	450	amount of such additional tax and interest. If, upon examination of such 356
451	451	amended return and related information, the commissioner finds that 357
452	452	the company has overpaid the tax due the state and has not received 358
453	453	from or been allowed by the United States government, or any agency 359
454	454	thereof, a credit or a benefit, as a deduction or otherwise, for or by 360
455	455	reason of such overpayment, the company shall be paid by the State 361
456	456	Treasurer, upon order of the Comptroller, the amount of such 362
457	457	Raised Bill No. 7270
458	458
459	459
460	460
461	461	LCO No. 6964 13 of 39
462	462
463	463	overpayment. If the commissioner determines that the company's claim 363
464	464	of overpayment is not valid, either in whole or in part, the commissioner 364
465	465	shall mail notice of the proposed disallowance in whole or in part of the 365
466	466	claim to the company, which notice shall set forth briefly the 366
467	467	commissioner's findings of fact and the basis of disallowance in each 367
468	468	case decided in whole or in part adversely to the claimant. Sixty days 368
469	469	after the date on which it is mailed, a notice of proposed disallowance 369
470	470	shall constitute a final disallowance except only for such amounts as to 370
471	471	which the company has filed, as provided in subdivision (2) of this 371
472	472	subsection, a written protest with the commissioner. 372
473	473	(2) On or before the sixtieth day after the mailing of the proposed 373
474	474	disallowance, the company may file with the commissioner a written 374
475	475	protest against the proposed disallowance in [which it sets forth the 375
476	476	grounds on which the protest is based] accordance with the provisions 376
477	477	of section 1 of this act. If a valid protest is filed, the commissioner shall 377
478	478	reconsider the proposed disallowance and, if the company has so 378
479	479	requested, may grant or deny the company or its authorized 379
480	480	representatives an oral hearing. 380
481	481	(3) The commissioner shall mail notice of [his] the commissioner's 381
482	482	determination to the company, which notice shall set forth briefly the 382
483	483	commissioner's findings of fact and the basis of decision in each case 383
484	484	decided in whole or in part adversely to the company. 384
485	485	(4) The action of the commissioner on the company's protest, other 385
486	486	than a protest deemed invalid under section 1 of this act, shall be final 386
487	487	upon the expiration of one month from the date on which [he] the 387
488	488	commissioner mails notice of his or her action to the company unless 388
489	489	within such period the company seeks judicial review of the 389
490	490	commissioner's determination pursuant to section 12-237. 390
491	491	Sec. 5. Section 12-236 of the general statutes is repealed and the 391
492	492	following is substituted in lieu thereof (Effective October 1, 2025, and 392
493	493	applicable to hearing applications filed on or after October 1, 2025): 393
494	494	Raised Bill No. 7270
495	495
496	496
497	497
498	498	LCO No. 6964 14 of 39
499	499
500	500	Any taxpayer, aggrieved by the action of the commissioner or his 394
501	501	authorized agent in fixing the amount of any tax, penalty or interest 395
502	502	provided for by this part, may apply to the commissioner, in writing, 396
503	503	[within] not later than sixty days after the notice of such action is 397
504	504	delivered or mailed to it, for a hearing and a correction of the amount of 398
505	505	the tax, penalty or interest so fixed, [setting forth the reasons why such 399
506	506	hearing should be granted and the amount in which such tax, penalty 400
507	507	or interest should be reduced] in accordance with the provisions of 401
508	508	section 1 of this act. The commissioner shall promptly consider each 402
509	509	[such] valid application and may grant or deny the hearing requested. 403
510	510	If the hearing is denied, the applicant shall be notified thereof forthwith. 404
511	511	If it is granted, the commissioner shall notify the applicant of the time 405
512	512	and place fixed for such hearing. After such hearing the commissioner 406
513	513	may make such order in the premises as appears to [him] the 407
514	514	commissioner just and lawful and shall furnish a copy of such order to 408
515	515	the applicant. The commissioner may, by notice in writing, at any time 409
516	516	within three years after the date when any return of any taxpayer has 410
517	517	been due, order a hearing on [his] the commissioner's own initiative and 411
518	518	require the taxpayer or any other individual [whom he] who the 412
519	519	commissioner believes to be in possession of relevant information 413
520	520	concerning the taxpayer to appear before [him or his] the commissioner 414
521	521	or the commissioner's authorized agent with any specified books of 415
522	522	account, papers or other documents, for examination under oath. 416
523	523	Sec. 6. Section 12-268i of the general statutes is repealed and the 417
524	524	following is substituted in lieu thereof (Effective October 1, 2025, and 418
525	525	applicable to hearing applications filed on or after October 1, 2025): 419
526	526	Any taxpayer aggrieved by the action of the commissioner or [his] 420
527	527	the commissioner's authorized agent in fixing the amount of any tax, 421
528	528	penalty or interest provided for by chapter 210, 211 or 212 or this chapter 422
529	529	may apply to the commissioner, in writing, [within] not later than sixty 423
530	530	days after the notice of such action is delivered or mailed to it, for a 424
531	531	hearing and a correction of the amount of such tax, penalty or interest 425
532	532	so fixed, [setting forth the reasons why such hearing should be granted 426
533	533	Raised Bill No. 7270
534	534
535	535
536	536
537	537	LCO No. 6964 15 of 39
538	538
539	539	and the amount in which such tax, penalty or interest should be 427
540	540	reduced] in accordance with the provisions of section 1 of this act. The 428
541	541	commissioner shall promptly consider each [such] valid application and 429
542	542	may grant or deny the hearing requested. If the hearing is denied, the 430
543	543	applicant shall be notified thereof forthwith. If it is granted, the 431
544	544	commissioner shall notify the applicant of the time and place fixed for 432
545	545	such hearing. After such hearing the commissioner may make such 433
546	546	order in the premises as appears to [him] the commissioner just and 434
547	547	lawful and shall furnish a copy of such order to the applicant. The 435
548	548	commissioner may, by notice in writing, at any time within three years 436
549	549	after the date when any return of any taxpayer has been due, order a 437
550	550	hearing on [his] the commissioner's own initiative and require the 438
551	551	taxpayer or any other individual [whom he] who the commissioner 439
552	552	believes to be in possession of relevant information concerning the 440
553	553	taxpayer to appear before [him or his] the commissioner or the 441
554	554	commissioner's authorized agent with any specified books of account, 442
555	555	papers or other documents, for examination under oath. 443
556	556	Sec. 7. Section 12-311 of the general statutes is repealed and the 444
557	557	following is substituted in lieu thereof (Effective October 1, 2025, and 445
558	558	applicable to hearing applications filed on or after October 1, 2025): 446
559	559	Any person aggrieved by any action under this chapter of the 447
560	560	commissioner or the commissioner's authorized agent, for which a 448
561	561	hearing is not elsewhere provided, may apply to the commissioner for 449
562	562	a hearing, in writing, not later than sixty days after the notice of such 450
563	563	action is delivered or mailed to such person, [setting forth the reasons 451
564	564	why such hearing should be granted and the manner of relief sought] in 452
565	565	accordance with the provisions of section 1 of this act. The commissioner 453
566	566	shall promptly consider each [such] valid application and may grant or 454
567	567	deny the hearing requested. If the hearing is denied, the applicant shall 455
568	568	be notified thereof forthwith; if it is granted, the commissioner shall 456
569	569	notify the applicant of the time and place fixed for such hearing. After 457
570	570	such hearing, the commissioner may make such order in the premises 458
571	571	as appears to the commissioner just and lawful and shall furnish a copy 459
572	572	Raised Bill No. 7270
573	573
574	574
575	575
576	576	LCO No. 6964 16 of 39
577	577
578	578	of such order to the applicant. The commissioner may, by notice in 460
579	579	writing, at any time, order a hearing on the commissioner's own 461
580	580	initiative and require the taxpayer or any other individual whom the 462
581	581	commissioner believes to be in possession of information concerning 463
582	582	any manufacture, importation or sale of cigarettes that have escaped 464
583	583	taxation to appear before the commissioner or the commissioner's 465
584	584	authorized agent with any specific books of account, papers or other 466
585	585	documents, for examination relative thereto. 467
586	586	Sec. 8. Section 12-330l of the general statutes is repealed and the 468
587	587	following is substituted in lieu thereof (Effective October 1, 2025, and 469
588	588	applicable to hearing applications filed on or after October 1, 2025): 470
589	589	Any person aggrieved by any action under this chapter of the 471
590	590	commissioner or [his] the commissioner's authorized agent for which a 472
591	591	hearing is not elsewhere provided may apply to the commissioner, in 473
592	592	writing, [within] not later than sixty days after the notice of such action 474
593	593	is delivered or mailed to [him] such person, for a hearing, [setting forth 475
594	594	the reasons why such hearing should be granted and the manner of 476
595	595	relief sought] in accordance with the provisions of section 1 of this act. 477
596	596	The commissioner shall promptly consider each [such] valid application 478
597	597	and may grant or deny the hearing requested. If the hearing is denied, 479
598	598	the applicant shall be notified thereof forthwith. [; if] If it is granted, the 480
599	599	commissioner shall notify the applicant of the time and place fixed for 481
600	600	such hearing. After such hearing, the commissioner may make such 482
601	601	order in the premises as appears to [him] the commissioner just and 483
602	602	lawful and shall furnish a copy of such order to the applicant. The 484
603	603	commissioner may, by notice in writing, at any time, order a hearing on 485
604	604	[his] the commissioner's own initiative and require the taxpayer or any 486
605	605	other individual [whom he] who the commissioner believes to be in 487
606	606	possession of information concerning any manufacture, importation or 488
607	607	sale of tobacco products [which] that have escaped taxation to appear 489
608	608	before [him or his] the commissioner or the commissioner's authorized 490
609	609	agent with any specific books of account, papers or other documents, 491
610	610	for examination relative thereto. 492
611	611	Raised Bill No. 7270
612	612
613	613
614	614
615	615	LCO No. 6964 17 of 39
616	616
617	617	Sec. 9. Section 12-418 of the general statutes is repealed and the 493
618	618	following is substituted in lieu thereof (Effective October 1, 2025, and 494
619	619	applicable to protests filed on or after October 1, 2025): 495
620	620	(a) (1) Any person against whom an assessment or a reassessment is 496
621	621	made under section 12-414a, 12-415, 12-416 or 12-424 or any person 497
622	622	directly interested may file a written protest not later than sixty days 498
623	623	after service upon such person of notice thereof. If a written protest is 499
624	624	not filed within the sixty-day period, the assessment or reassessment 500
625	625	becomes final at the expiration of the period. 501
626	626	(2) Any person against whom an assessment or reassessment is made 502
627	627	under section 12-417 or any person directly interested may file a written 503
628	628	protest not later than ten days after service of notice upon such person. 504
629	629	If a written protest is not filed within such ten-day period, the 505
630	630	assessment or reassessment becomes final at the expiration of the 506
631	631	period. 507
632	632	(3) Any written protest under this subsection shall be filed in 508
633	633	accordance with the provisions of section 1 of this act. 509
634	634	(b) If a [written] valid protest is filed within the [sixty-day period, in 510
635	635	the case of an assessment or reassessment made under section 12-414a, 511
636	636	12-415, 12-416 or 12-424, or within the ten-day period, in the case of an 512
637	637	assessment or reassessment made under section 12-417] applicable time 513
638	638	period set forth in subsection (a) of this section, the commissioner shall 514
639	639	reconsider the assessment or reassessment and, if the person has so 515
640	640	requested in the [petition] protest, shall, in the commissioner's 516
641	641	discretion, grant the person an oral hearing and shall give such person 517
642	642	ten days' notice of the time and place of the hearing. The commissioner 518
643	643	may continue the hearing from time to time, as may be necessary, and 519
644	644	may assign the conduct of such hearing to a representative of the 520
645	645	commissioner. 521
646	646	(c) The commissioner may decrease or increase the amount of the 522
647	647	assessment or reassessment before it becomes final, but the amount may 523
648	648	Raised Bill No. 7270
649	649
650	650
651	651
652	652	LCO No. 6964 18 of 39
653	653
654	654	be increased only if a claim for the increase is asserted by the 524
655	655	commissioner at or before the hearing. 525
656	656	(d) The order or decision of the commissioner upon a protest, other 526
657	657	than a protest deemed invalid under section 1 of this act, becomes final 527
658	658	one month after service upon the person filing the protest of notice 528
659	659	thereof unless within such period such person seeks judicial review of 529
660	660	the commissioner's order or decision pursuant to section 12-422. 530
661	661	(e) All assessments or reassessments made by the commissioner 531
662	662	under section 12-414a, 12-415, 12-416 or 12-424 are due and payable at 532
663	663	the time they become final. 533
664	664	(f) Any notice required by this section shall be served personally or 534
665	665	by mail in the manner prescribed for service of notice of a deficiency 535
666	666	assessment. 536
667	667	Sec. 10. Section 12-447 of the general statutes is repealed and the 537
668	668	following is substituted in lieu thereof (Effective October 1, 2025, and 538
669	669	applicable to hearing applications filed on or after October 1, 2025): 539
670	670	Any person aggrieved by the action of the commissioner or [his] the 540
671	671	commissioner's authorized agent in fixing the amount of any tax as 541
672	672	provided by this chapter, or in imposing any penalty hereunder, may 542
673	673	apply to the commissioner, in writing, [within] not later than sixty days 543
674	674	after the notice of such action was mailed to [him] such person, for a 544
675	675	hearing and a correction of the amount of the tax or penalty so fixed, 545
676	676	[setting forth the reasons why such hearing should be granted and the 546
677	677	amount in which such tax should be reduced] in accordance with the 547
678	678	provisions of section 1 of this act. The commissioner shall promptly 548
679	679	consider each [such] valid application and may grant or deny the 549
680	680	hearing requested. If the hearing is denied, the applicant shall be 550
681	681	notified thereof forthwith. [; if] If it is granted, the commissioner shall 551
682	682	notify the applicant of the time and place fixed for such hearing. After 552
683	683	such hearing, the commissioner may make such order in the premises 553
684	684	as appears to him just and lawful and shall furnish a copy of such order 554
685	685	Raised Bill No. 7270
686	686
687	687
688	688
689	689	LCO No. 6964 19 of 39
690	690
691	691	to the applicant. The commissioner may, by notice in writing, at any 555
692	692	time within three years after the date when any return of any taxpayer 556
693	693	has been due, order a hearing on [his] the commissioner's own initiative 557
694	694	and require the taxpayer or any other individual [whom he] who the 558
695	695	commissioner believes to be in possession of information concerning 559
696	696	any manufacture, importation or sale of alcoholic beverages [which] 560
697	697	that have escaped taxation to appear before [him or his] the 561
698	698	commissioner or the commissioner's authorized agent with any 562
699	699	specified books of account, papers or other documents, for examination 563
700	700	relative thereto. 564
701	701	Sec. 11. Section 12-461 of the general statutes is repealed and the 565
702	702	following is substituted in lieu thereof (Effective October 1, 2025, and 566
703	703	applicable to hearing applications filed on or after October 1, 2025): 567
704	704	Any distributor aggrieved by the action of the commissioner or [his] 568
705	705	the commissioner's authorized agent in fixing the amount of any tax, 569
706	706	penalty or interest provided for by this chapter may apply to the 570
707	707	commissioner, in writing, [within] not later than sixty days after the 571
708	708	notice of such action is delivered or mailed to it, for a hearing and a 572
709	709	correction of the amount of such tax, penalty or interest so fixed, [setting 573
710	710	forth the reasons why such hearing should be granted and the amount 574
711	711	in which such tax, penalty or interest should be reduced] in accordance 575
712	712	with the provisions of section 1 of this act. The commissioner shall 576
713	713	promptly consider each [such] valid application and may grant or deny 577
714	714	the hearing requested. If the hearing is denied, the applicant shall be 578
715	715	notified forthwith. If it is granted, the commissioner shall notify the 579
716	716	applicant of the time and place fixed for such hearing. After such 580
717	717	hearing the commissioner may make such order in the premises as 581
718	718	appears to [him] the commissioner just and lawful and shall furnish a 582
719	719	copy of such order to the applicant. The commissioner may, by notice in 583
720	720	writing, at any time within three years after the date when any return of 584
721	721	any distributor has been due, order a hearing on [his] the 585
722	722	commissioner's own initiative and require the distributor or any other 586
723	723	individual [whom he] who the commissioner believes to be in 587
724	724	Raised Bill No. 7270
725	725
726	726
727	727
728	728	LCO No. 6964 20 of 39
729	729
730	730	possession of relevant information concerning the distributor to appear 588
731	731	before [him or his] the commissioner or the commissioner's authorized 589
732	732	agent with any specified books of account, papers or other documents, 590
733	733	for examination under oath. The commissioner, after a hearing, may 591
734	734	suspend or revoke the distributor's license of any distributor violating 592
735	735	any provision of this chapter. 593
736	736	Sec. 12. Subsection (a) of section 12-489 of the general statutes is 594
737	737	repealed and the following is substituted in lieu thereof (Effective October 595
738	738	1, 2025, and applicable to hearing applications filed on or after October 1, 596
739	739	2025): 597
740	740	(a) Any motor carrier aggrieved by any act of the commissioner or 598
741	741	the commissioner's authorized agent under this chapter may apply to 599
742	742	the commissioner, in writing, not later than sixty days after notification 600
743	743	of any such act of the commissioner is delivered or mailed to the motor 601
744	744	carrier, for a hearing and a correction of the amount of any tax, penalty 602
745	745	or interest, [setting forth reasons why such hearing should be granted 603
746	746	and the amount by which such tax, penalty or interest should be 604
747	747	reduced] in accordance with the provisions of section 1 of this act. The 605
748	748	commissioner shall promptly consider each [such] valid application and 606
749	749	may grant or deny the hearing requested. If the hearing is denied, the 607
750	750	applicant shall be notified forthwith. If it is granted, the commissioner 608
751	751	shall notify the applicant of the time and place fixed for such hearing. 609
752	752	After such hearing the commissioner may make such order in the 610
753	753	premises as appears to the commissioner just and lawful and shall 611
754	754	furnish a copy of such order to the applicant. The commissioner may, 612
755	755	by notice in writing, at any time within three years after the date when 613
756	756	any return of any taxpayer has been due, order a hearing on the 614
757	757	commissioner's own initiative and require the taxpayer or any 615
758	758	individual [whom] who the commissioner believes to be in possession 616
759	759	of relevant information concerning the taxpayer to appear before the 617
760	760	commissioner or the commissioner's authorized agent with any 618
761	761	specified books of account, papers or other documents, for examination 619
762	762	under oath. 620
763	763	Raised Bill No. 7270
764	764
765	765
766	766
767	767	LCO No. 6964 21 of 39
768	768
769	769	Sec. 13. Subsection (k) of section 12-493a of the general statutes is 621
770	770	repealed and the following is substituted in lieu thereof (Effective October 622
771	771	1, 2025, and applicable to hearing applications filed on or after October 1, 623
772	772	2025): 624
773	773	(k) Any carrier that is aggrieved by the action of the commissioner or 625
774	774	an authorized agent of the commissioner in fixing the amount of any 626
775	775	tax, penalty or interest under this section may apply to the 627
776	776	commissioner, in writing, not later than sixty days after the notice of 628
777	777	such action is delivered or mailed to such carrier, for a hearing and a 629
778	778	correction of the amount of such tax, penalty or interest, [setting forth 630
779	779	the reasons why such hearing should be granted and the amount by 631
780	780	which such tax, penalty or interest should be reduced] in accordance 632
781	781	with the provisions of section 1 of this act. The commissioner shall 633
782	782	promptly consider each [such] valid application and may grant or deny 634
783	783	the hearing requested. If the hearing request is denied, the carrier shall 635
784	784	be notified forthwith. If the hearing request is granted, the 636
785	785	commissioner shall notify the carrier of the date, time and place for such 637
786	786	hearing. After such hearing, the commissioner may make such order as 638
787	787	appears just and lawful to the commissioner and shall furnish a copy of 639
788	788	such order to the carrier. The commissioner may, by notice in writing, 640
789	789	order a hearing on the commissioner's own initiative and require a 641
790	790	carrier or any other individual who the commissioner believes to be in 642
791	791	possession of relevant information concerning such carrier to appear 643
792	792	before the commissioner or the commissioner's authorized agent with 644
793	793	any specified books of account, papers or other documents, for 645
794	794	examination under oath. 646
795	795	Sec. 14. Section 12-553 of the general statutes is repealed and the 647
796	796	following is substituted in lieu thereof (Effective October 1, 2025, and 648
797	797	applicable to hearing applications filed on or after October 1, 2025): 649
798	798	Any taxpayer, aggrieved by the action of the commissioner or [his] 650
799	799	the commissioner's authorized agent in fixing the amount of any tax, 651
800	800	penalty or interest provided for by this chapter, may apply to the 652
801	801	Raised Bill No. 7270
802	802
803	803
804	804
805	805	LCO No. 6964 22 of 39
806	806
807	807	commissioner, in writing, [within] not later than sixty days after notice 653
808	808	of such action is delivered or mailed to [him] such taxpayer, for a 654
809	809	hearing and a correction of the amount of the tax, penalty or interest so 655
810	810	fixed, [setting forth the reasons why such hearing should be granted and 656
811	811	the amount of the tax, penalty or interest should be reduced] in 657
812	812	accordance with the provisions of section 1 of this act. The commissioner 658
813	813	shall promptly consider each [such] valid application and may grant or 659
814	814	deny the hearing requested. If the hearing is denied, the applicant shall 660
815	815	be notified thereof forthwith. If it is granted, the commissioner shall 661
816	816	notify the applicant of the time and place fixed for such hearing. After 662
817	817	such hearing the commissioner may make such order in the premises as 663
818	818	appears to [him] the commissioner just and lawful and shall furnish a 664
819	819	copy of such order to the applicant. The commissioner may, by notice in 665
820	820	writing, at any time within three years after the date when any return of 666
821	821	any taxpayer has been due, order a hearing on [his] the commissioner's 667
822	822	own initiative and require the taxpayer or any other individual [whom 668
823	823	he] who the commissioner believes to be in possession of relevant 669
824	824	information concerning the taxpayer to appear before [him or his] the 670
825	825	commissioner or the commissioner's authorized agent with any 671
826	826	specified books of account, papers or other documents, for examination 672
827	827	under oath. 673
828	828	Sec. 15. Section 12-595 of the general statutes is repealed and the 674
829	829	following is substituted in lieu thereof (Effective October 1, 2025, and 675
830	830	applicable to hearing applications filed on or after October 1, 2025): 676
831	831	Any taxpayer aggrieved by the action of the Commissioner of 677
832	832	Revenue Services or an authorized agent of said commissioner in fixing 678
833	833	the amount of tax imposed under section 12-587 or any penalty or 679
834	834	interest related thereto may apply to said commissioner in writing, 680
835	835	[within] not later than sixty days after notice of such action is delivered 681
836	836	or mailed to such taxpayer, for a hearing and a correction of the amount 682
837	837	of such tax, penalty or interest so fixed, [setting forth the reasons why 683
838	838	such hearing should be granted and the amount in which such tax, 684
839	839	penalty or interest should be reduced] in accordance with the provisions 685
840	840	Raised Bill No. 7270
841	841
842	842
843	843
844	844	LCO No. 6964 23 of 39
845	845
846	846	of section 1 of this act. Said commissioner shall promptly consider each 686
847	847	[such] valid application and may grant or deny the hearing requested. 687
848	848	If the hearing is denied, the applicant shall be notified thereof forthwith. 688
849	849	If it is granted, said commissioner shall notify the applicant of the time 689
850	850	and place fixed for such hearing. After such hearing said commissioner 690
851	851	may make such order in the premises as appears to [him] said 691
852	852	commissioner just and lawful and shall furnish a copy of such order to 692
853	853	the applicant. Said commissioner may, by notice in writing, at any time 693
854	854	within three years after the date when any return of any taxpayer has 694
855	855	been due, order a hearing on [his] said commissioner's own initiative 695
856	856	and require the taxpayer or any other individual [whom he] who said 696
857	857	believes to be in possession of relevant information concerning the 697
858	858	taxpayer to appear before [him or his] said commissioner or said 698
859	859	commissioner's authorized agent with any specified books of account, 699
860	860	papers or other documents, for examination under oath. 700
861	861	Sec. 16. Section 12-729 of the general statutes is repealed and the 701
862	862	following is substituted in lieu thereof (Effective October 1, 2025, and 702
863	863	applicable to protests filed on or after October 1, 2025): 703
864	864	(a) Sixty days after the date on which it is mailed, a notice of proposed 704
865	865	assessment of a deficiency shall constitute a final assessment of the 705
866	866	amount of tax specified together with interest, additions to tax and 706
867	867	penalties except only for such amounts as to which the taxpayer has 707
868	868	filed a protest with the Commissioner of Revenue Services. 708
869	869	(b) [Within] Not later than sixty days after the mailing of a deficiency 709
870	870	notice, the taxpayer may file with the commissioner a written protest 710
871	871	against the proposed assessment in [which he shall set forth the grounds 711
872	872	on which the protest is based] accordance with the provisions of section 712
873	873	1 of this act. If a valid protest is filed, the commissioner shall reconsider 713
874	874	the assessment of the deficiency and, if the taxpayer has so requested, 714
875	875	may grant or deny the taxpayer or the taxpayer's authorized 715
876	876	representatives an oral hearing. 716
877	877	Raised Bill No. 7270
878	878
879	879
880	880
881	881	LCO No. 6964 24 of 39
882	882
883	883	(c) Notice of the commissioner's determination shall be mailed to the 717
884	884	taxpayer and such notice shall set forth briefly the commissioner's 718
885	885	findings of fact and the basis of decision in each case decided in whole 719
886	886	or in part adversely to the taxpayer. 720
887	887	(d) The action of the commissioner on the taxpayer's protest, other 721
888	888	than a protest deemed invalid under section 1 of this act shall be final 722
889	889	upon the expiration of one month from the date on which [he] the 723
890	890	commissioner mails notice of [his] the commissioner's action to the 724
891	891	taxpayer unless within such period the taxpayer seeks judicial review of 725
892	892	the commissioner's determination. 726
893	893	Sec. 17. Subsection (b) of section 12-790c of the general statutes is 727
894	894	repealed and the following is substituted in lieu thereof (Effective October 728
895	895	1, 2025, and applicable to hearing requests filed on or after October 1, 2025): 729
896	896	(b) (1) The commissioner may issue a written order notifying a tax 730
897	897	preparer or facilitator of the suspension or revocation of such tax 731
898	898	preparer's or facilitator's permit for good cause shown. Such notice shall 732
899	899	include the right of the tax preparer or facilitator to request, in writing, 733
900	900	a hearing before the commissioner in accordance with the provisions of 734
901	901	section 1 of this act, provided such request is received by the 735
902	902	commissioner not later than thirty days after the date of such notice. 736
903	903	(2) If a hearing is timely requested and complies with the 737
904	904	requirements of section 1 of this act, the commissioner shall, not later 738
905	905	than thirty days after the receipt of the request, convene such hearing as 739
906	906	a contested case in accordance with the provisions of chapter 54. Not 740
907	907	later than sixty days after the receipt of the request, the commissioner 741
908	908	shall issue a final decision vacating, modifying or affirming the 742
909	909	commissioner's order. Any person aggrieved by such final decision may 743
910	910	appeal such decision in accordance with the provisions of section 4-183. 744
911	911	Sec. 18. (NEW) (Effective from passage) Commencing July 1, 2025, the 745
912	912	Commissioner of Revenue Services shall track and record the source of 746
913	913	the revenue received by the state each fiscal year from the tax imposed 747
914	914	Raised Bill No. 7270
915	915
916	916
917	917
918	918	LCO No. 6964 25 of 39
919	919
920	920	under chapters 208, 219 and 229 of the general statutes, for the purpose 748
921	921	of accurately and fairly attributing to each municipality revenue 749
922	922	received from each such tax. The commissioner shall determine the 750
923	923	sourcing method for the revenue from the tax imposed under chapters 751
924	924	208 and 219 of the general statutes, provided such revenue is sourced to 752
925	925	each municipality in which the taxpayer has an office or facility in the 753
926	926	state. The revenue from the tax imposed under chapter 229 of the 754
927	927	general statutes shall be sourced to the municipality in which the 755
928	928	employer's office or facility is located, for the employees who work 756
929	929	primarily at such location. Taxpayers paying a tax specified in this 757
930	930	subsection shall provide disaggregated information and such other data 758
931	931	the commissioner requests to carry out the provisions of this section. On 759
932	932	or before June 30, 2026, and annually thereafter, the commissioner shall 760
933	933	post on the Department of Revenue Services' Internet web site a list of 761
934	934	all municipalities and the amount of revenue from each such tax 762
935	935	attributed to the municipality for the applicable fiscal year. 763
936	936	Sec. 19. Subparagraph (B) of subdivision (20) of subsection (a) of 764
937	937	section 12-701 of the general statutes is repealed and the following is 765
938	938	substituted in lieu thereof (Effective January 1, 2026, and applicable to 766
939	939	taxable years commencing on or after January 1, 2026): 767
940	940	(B) There shall be subtracted therefrom: 768
941	941	(i) To the extent properly includable in gross income for federal 769
942	942	income tax purposes, any income with respect to which taxation by any 770
943	943	state is prohibited by federal law; 771
944	944	(ii) To the extent allowable under section 12-718, exempt dividends 772
945	945	paid by a regulated investment company; 773
946	946	(iii) To the extent properly includable in gross income for federal 774
947	947	income tax purposes, the amount of any refund or credit for 775
948	948	overpayment of income taxes imposed by this state, or any other state 776
949	949	of the United States or a political subdivision thereof, or the District of 777
950	950	Columbia; 778
951	951	Raised Bill No. 7270
952	952
953	953
954	954
955	955	LCO No. 6964 26 of 39
956	956
957	957	(iv) To the extent properly includable in gross income for federal 779
958	958	income tax purposes and not otherwise subtracted from federal 780
959	959	adjusted gross income pursuant to clause (x) of this subparagraph in 781
960	960	computing Connecticut adjusted gross income, any tier 1 railroad 782
961	961	retirement benefits; 783
962	962	(v) To the extent any additional allowance for depreciation under 784
963	963	Section 168(k) of the Internal Revenue Code for property placed in 785
964	964	service after September 27, 2017, was added to federal adjusted gross 786
965	965	income pursuant to subparagraph (A)(ix) of this subdivision in 787
966	966	computing Connecticut adjusted gross income, twenty-five per cent of 788
967	967	such additional allowance for depreciation in each of the four 789
968	968	succeeding taxable years; 790
969	969	(vi) To the extent properly includable in gross income for federal 791
970	970	income tax purposes, any interest income from obligations issued by or 792
971	971	on behalf of the state of Connecticut, any political subdivision thereof, 793
972	972	or public instrumentality, state or local authority, district or similar 794
973	973	public entity created under the laws of the state of Connecticut; 795
974	974	(vii) To the extent properly includable in determining the net gain or 796
975	975	loss from the sale or other disposition of capital assets for federal income 797
976	976	tax purposes, any gain from the sale or exchange of obligations issued 798
977	977	by or on behalf of the state of Connecticut, any political subdivision 799
978	978	thereof, or public instrumentality, state or local authority, district or 800
979	979	similar public entity created under the laws of the state of Connecticut, 801
980	980	in the income year such gain was recognized; 802
981	981	(viii) (I) Any interest on indebtedness incurred or continued to 803
982	982	purchase or carry obligations or securities the interest on which is 804
983	983	subject to tax under this chapter but exempt from federal income tax, to 805
984	984	the extent that such interest on indebtedness is not deductible in 806
985	985	determining federal adjusted gross income and is attributable to a trade 807
986	986	or business carried on by such individual, and (II) the amortizable bond 808
987	987	premium for the taxable year on any bond the interest on which is 809
988	988	Raised Bill No. 7270
989	989
990	990
991	991
992	992	LCO No. 6964 27 of 39
993	993
994	994	subject to tax under this chapter but exempt from federal income tax, to 810
995	995	the extent that such premiums are not deductible in determining federal 811
996	996	adjusted gross income; 812
997	997	(ix) Ordinary and necessary expenses paid or incurred during the 813
998	998	taxable year for the production or collection of income which is subject 814
999	999	to taxation under this chapter but exempt from federal income tax, or 815
1000	1000	the management, conservation or maintenance of property held for the 816
1001	1001	production of such income, [and the amortizable bond premium for the 817
1002	1002	taxable year on any bond the interest on which is subject to tax under 818
1003	1003	this chapter but exempt from federal income tax,] to the extent that such 819
1004	1004	expenses [and premiums] are not deductible in determining federal 820
1005	1005	adjusted gross income and are attributable to a trade or business carried 821
1006	1006	on by such individual; 822
1007	1007	(x) (I) For taxable years commencing prior to January 1, 2019, for a 823
1008	1008	person who files a return under the federal income tax as an unmarried 824
1009	1009	individual whose federal adjusted gross income for such taxable year is 825
1010	1010	less than fifty thousand dollars, or as a married individual filing 826
1011	1011	separately whose federal adjusted gross income for such taxable year is 827
1012	1012	less than fifty thousand dollars, or for a husband and wife who file a 828
1013	1013	return under the federal income tax as married individuals filing jointly 829
1014	1014	whose federal adjusted gross income for such taxable year is less than 830
1015	1015	sixty thousand dollars or a person who files a return under the federal 831
1016	1016	income tax as a head of household whose federal adjusted gross income 832
1017	1017	for such taxable year is less than sixty thousand dollars, an amount 833
1018	1018	equal to the Social Security benefits includable for federal income tax 834
1019	1019	purposes; 835
1020	1020	(II) For taxable years commencing prior to January 1, 2019, for a 836
1021	1021	person who files a return under the federal income tax as an unmarried 837
1022	1022	individual whose federal adjusted gross income for such taxable year is 838
1023	1023	fifty thousand dollars or more, or as a married individual filing 839
1024	1024	separately whose federal adjusted gross income for such taxable year is 840
1025	1025	fifty thousand dollars or more, or for a husband and wife who file a 841
1026	1026	Raised Bill No. 7270
1027	1027
1028	1028
1029	1029
1030	1030	LCO No. 6964 28 of 39
1031	1031
1032	1032	return under the federal income tax as married individuals filing jointly 842
1033	1033	whose federal adjusted gross income from such taxable year is sixty 843
1034	1034	thousand dollars or more or for a person who files a return under the 844
1035	1035	federal income tax as a head of household whose federal adjusted gross 845
1036	1036	income for such taxable year is sixty thousand dollars or more, an 846
1037	1037	amount equal to the difference between the amount of Social Security 847
1038	1038	benefits includable for federal income tax purposes and the lesser of 848
1039	1039	twenty-five per cent of the Social Security benefits received during the 849
1040	1040	taxable year, or twenty-five per cent of the excess described in Section 850
1041	1041	86(b)(1) of the Internal Revenue Code; 851
1042	1042	(III) For the taxable year commencing January 1, 2019, and each 852
1043	1043	taxable year thereafter, for a person who files a return under the federal 853
1044	1044	income tax as an unmarried individual whose federal adjusted gross 854
1045	1045	income for such taxable year is less than seventy-five thousand dollars, 855
1046	1046	or as a married individual filing separately whose federal adjusted gross 856
1047	1047	income for such taxable year is less than seventy-five thousand dollars, 857
1048	1048	or for a husband and wife who file a return under the federal income tax 858
1049	1049	as married individuals filing jointly whose federal adjusted gross 859
1050	1050	income for such taxable year is less than one hundred thousand dollars 860
1051	1051	or a person who files a return under the federal income tax as a head of 861
1052	1052	household whose federal adjusted gross income for such taxable year is 862
1053	1053	less than one hundred thousand dollars, an amount equal to the Social 863
1054	1054	Security benefits includable for federal income tax purposes; and 864
1055	1055	(IV) For the taxable year commencing January 1, 2019, and each 865
1056	1056	taxable year thereafter, for a person who files a return under the federal 866
1057	1057	income tax as an unmarried individual whose federal adjusted gross 867
1058	1058	income for such taxable year is seventy-five thousand dollars or more, 868
1059	1059	or as a married individual filing separately whose federal adjusted gross 869
1060	1060	income for such taxable year is seventy-five thousand dollars or more, 870
1061	1061	or for a husband and wife who file a return under the federal income tax 871
1062	1062	as married individuals filing jointly whose federal adjusted gross 872
1063	1063	income from such taxable year is one hundred thousand dollars or more 873
1064	1064	or for a person who files a return under the federal income tax as a head 874
1065	1065	Raised Bill No. 7270
1066	1066
1067	1067
1068	1068
1069	1069	LCO No. 6964 29 of 39
1070	1070
1071	1071	of household whose federal adjusted gross income for such taxable year 875
1072	1072	is one hundred thousand dollars or more, an amount equal to the 876
1073	1073	difference between the amount of Social Security benefits includable for 877
1074	1074	federal income tax purposes and the lesser of twenty-five per cent of the 878
1075	1075	Social Security benefits received during the taxable year, or twenty-five 879
1076	1076	per cent of the excess described in Section 86(b)(1) of the Internal 880
1077	1077	Revenue Code; 881
1078	1078	(xi) To the extent properly includable in gross income for federal 882
1079	1079	income tax purposes, any amount rebated to a taxpayer pursuant to 883
1080	1080	section 12-746; 884
1081	1081	(xii) To the extent properly includable in the gross income for federal 885
1082	1082	income tax purposes of a designated beneficiary, any distribution to 886
1083	1083	such beneficiary from any qualified state tuition program, as defined in 887
1084	1084	Section 529(b) of the Internal Revenue Code, established and 888
1085	1085	maintained by this state or any official, agency or instrumentality of the 889
1086	1086	state; 890
1087	1087	(xiii) To the extent allowable under section 12-701a, contributions to 891
1088	1088	accounts established pursuant to any qualified state tuition program, as 892
1089	1089	defined in Section 529(b) of the Internal Revenue Code, established and 893
1090	1090	maintained by this state or any official, agency or instrumentality of the 894
1091	1091	state; 895
1092	1092	(xiv) To the extent properly includable in gross income for federal 896
1093	1093	income tax purposes, the amount of any Holocaust victims' settlement 897
1094	1094	payment received in the taxable year by a Holocaust victim; 898
1095	1095	(xv) To the extent properly includable in the gross income for federal 899
1096	1096	income tax purposes of a designated beneficiary, as defined in section 900
1097	1097	3-123aa, interest, dividends or capital gains earned on contributions to 901
1098	1098	accounts established for the designated beneficiary pursuant to the 902
1099	1099	Connecticut Homecare Option Program for the Elderly established by 903
1100	1100	sections 3-123aa to 3-123ff, inclusive; 904
1101	1101	Raised Bill No. 7270
1102	1102
1103	1103
1104	1104
1105	1105	LCO No. 6964 30 of 39
1106	1106
1107	1107	(xvi) To the extent properly includable in gross income for federal 905
1108	1108	income tax purposes, any income received from the United States 906
1109	1109	government as retirement pay for a retired member of (I) the Armed 907
1110	1110	Forces of the United States, as defined in Section 101 of Title 10 of the 908
1111	1111	United States Code, or (II) the National Guard, as defined in Section 101 909
1112	1112	of Title 10 of the United States Code; 910
1113	1113	(xvii) To the extent properly includable in gross income for federal 911
1114	1114	income tax purposes for the taxable year, any income from the discharge 912
1115	1115	of indebtedness in connection with any reacquisition, after December 913
1116	1116	31, 2008, and before January 1, 2011, of an applicable debt instrument or 914
1117	1117	instruments, as those terms are defined in Section 108 of the Internal 915
1118	1118	Revenue Code, as amended by Section 1231 of the American Recovery 916
1119	1119	and Reinvestment Act of 2009, to the extent any such income was added 917
1120	1120	to federal adjusted gross income pursuant to subparagraph (A)(xi) of 918
1121	1121	this subdivision in computing Connecticut adjusted gross income for a 919
1122	1122	preceding taxable year; 920
1123	1123	(xviii) To the extent not deductible in determining federal adjusted 921
1124	1124	gross income, the amount of any contribution to a manufacturing 922
1125	1125	reinvestment account established pursuant to section 32-9zz in the 923
1126	1126	taxable year that such contribution is made; 924
1127	1127	(xix) To the extent properly includable in gross income for federal 925
1128	1128	income tax purposes, (I) for the taxable year commencing January 1, 926
1129	1129	2015, ten per cent of the income received from the state teachers' 927
1130	1130	retirement system, (II) for the taxable years commencing January 1, 928
1131	1131	2016, to January 1, 2020, inclusive, twenty-five per cent of the income 929
1132	1132	received from the state teachers' retirement system, and (III) for the 930
1133	1133	taxable year commencing January 1, 2021, and each taxable year 931
1134	1134	thereafter, fifty per cent of the income received from the state teachers' 932
1135	1135	retirement system or, for a taxpayer whose federal adjusted gross 933
1136	1136	income does not exceed the applicable threshold under clause (xx) of 934
1137	1137	this subparagraph, the percentage pursuant to said clause of the income 935
1138	1138	received from the state teachers' retirement system, whichever 936
1139	1139	Raised Bill No. 7270
1140	1140
1141	1141
1142	1142
1143	1143	LCO No. 6964 31 of 39
1144	1144
1145	1145	deduction is greater; 937
1146	1146	(xx) To the extent properly includable in gross income for federal 938
1147	1147	income tax purposes, except for retirement benefits under clause (iv) of 939
1148	1148	this subparagraph and retirement pay under clause (xvi) of this 940
1149	1149	subparagraph, for a person who files a return under the federal income 941
1150	1150	tax as an unmarried individual whose federal adjusted gross income for 942
1151	1151	such taxable year is less than seventy-five thousand dollars, or as a 943
1152	1152	married individual filing separately whose federal adjusted gross 944
1153	1153	income for such taxable year is less than seventy-five thousand dollars, 945
1154	1154	or as a head of household whose federal adjusted gross income for such 946
1155	1155	taxable year is less than seventy-five thousand dollars, or for a husband 947
1156	1156	and wife who file a return under the federal income tax as married 948
1157	1157	individuals filing jointly whose federal adjusted gross income for such 949
1158	1158	taxable year is less than one hundred thousand dollars, (I) for the taxable 950
1159	1159	year commencing January 1, 2019, fourteen per cent of any pension or 951
1160	1160	annuity income, (II) for the taxable year commencing January 1, 2020, 952
1161	1161	twenty-eight per cent of any pension or annuity income, (III) for the 953
1162	1162	taxable year commencing January 1, 2021, forty-two per cent of any 954
1163	1163	pension or annuity income, and (IV) for the taxable years commencing 955
1164	1164	January 1, 2022, and January 1, 2023, one hundred per cent of any 956
1165	1165	pension or annuity income; 957
1166	1166	(xxi) To the extent properly includable in gross income for federal 958
1167	1167	income tax purposes, except for retirement benefits under clause (iv) of 959
1168	1168	this subparagraph and retirement pay under clause (xvi) of this 960
1169	1169	subparagraph, any pension or annuity income for the taxable year 961
1170	1170	commencing on or after January 1, 2024, and each taxable year 962
1171	1171	thereafter, in accordance with the following schedule, for a person who 963
1172	1172	files a return under the federal income tax as an unmarried individual 964
1173	1173	whose federal adjusted gross income for such taxable year is less than 965
1174	1174	one hundred thousand dollars, or as a married individual filing 966
1175	1175	separately whose federal adjusted gross income for such taxable year is 967
1176	1176	less than one hundred thousand dollars, or as a head of household 968
1177	1177	whose federal adjusted gross income for such taxable year is less than 969
1178	1178	Raised Bill No. 7270
1179	1179
1180	1180
1181	1181
1182	1182	LCO No. 6964 32 of 39
1183	1183
1184	1184	one hundred thousand dollars: 970
1185	1185	T1
1186	1186	Federal Adjusted Gross Income Deduction
1187	1187	T2
1188	1188	Less than $75,000 100.0%
1189	1189	T3
1190	1190	$75,000 but not over $77,499 85.0%
1191	1191	T4
1192	1192	$77,500 but not over $79,999 70.0%
1193	1193	T5
1194	1194	$80,000 but not over $82,499 55.0%
1195	1195	T6
1196	1196	$82,500 but not over $84,999 40.0%
1197	1197	T7
1198	1198	$85,000 but not over $87,499 25.0%
1199	1199	T8
1200	1200	$87,500 but not over $89,999 10.0%
1201	1201	T9 $90,000 but not over $94,999 5.0%
1202	1202	T10
1203	1203	$95,000 but not over $99,999 2.5%
1204	1204	T11
1205	1205	$100,000 and over 0.0%
1206	1206
1207	1207	(xxii) To the extent properly includable in gross income for federal 971
1208	1208	income tax purposes, except for retirement benefits under clause (iv) of 972
1209	1209	this subparagraph and retirement pay under clause (xvi) of this 973
1210	1210	subparagraph, any pension or annuity income for the taxable year 974
1211	1211	commencing on or after January 1, 2024, and each taxable year 975
1212	1212	thereafter, in accordance with the following schedule for married 976
1213	1213	individuals who file a return under the federal income tax as married 977
1214	1214	individuals filing jointly whose federal adjusted gross income for such 978
1215	1215	taxable year is less than one hundred fifty thousand dollars: 979
1216	1216	T12
1217	1217	Federal Adjusted Gross Income Deduction
1218	1218	T13
1219	1219	Less than $100,000 100.0%
1220	1220	T14
1221	1221	$100,000 but not over $104,999 85.0%
1222	1222	T15
1223	1223	$105,000 but not over $109,999 70.0%
1224	1224	T16
1225	1225	$110,000 but not over $114,999 55.0%
1226	1226	T17 $115,000 but not over $119,999 40.0%
1227	1227	T18
1228	1228	$120,000 but not over $124,999 25.0%
1229	1229	T19
1230	1230	$125,000 but not over $129,999 10.0%
1231	1231	T20
1232	1232	$130,000 but not over $139,999 5.0%
1233	1233	Raised Bill No. 7270
1234	1234
1235	1235
1236	1236
1237	1237	LCO No. 6964 33 of 39
1238	1238
1239	1239	T21 $140,000 but not over $149,999 2.5%
1240	1240	T22
1241	1241	$150,000 and over 0.0%
1242	1242
1243	1243	(xxiii) The amount of lost wages and medical, travel and housing 980
1244	1244	expenses, not to exceed ten thousand dollars in the aggregate, incurred 981
1245	1245	by a taxpayer during the taxable year in connection with the donation 982
1246	1246	to another person of an organ for organ transplantation occurring on or 983
1247	1247	after January 1, 2017; 984
1248	1248	(xxiv) To the extent properly includable in gross income for federal 985
1249	1249	income tax purposes, the amount of any financial assistance received 986
1250	1250	from the Crumbling Foundations Assistance Fund or paid to or on 987
1251	1251	behalf of the owner of a residential building pursuant to sections 8-442 988
1252	1252	and 8-443; 989
1253	1253	(xxv) To the extent properly includable in gross income for federal 990
1254	1254	income tax purposes, the amount calculated pursuant to subsection (b) 991
1255	1255	of section 12-704g for income received by a general partner of a venture 992
1256	1256	capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 993
1257	1257	time; 994
1258	1258	(xxvi) To the extent any portion of a deduction under Section 179 of 995
1259	1259	the Internal Revenue Code was added to federal adjusted gross income 996
1260	1260	pursuant to subparagraph (A)(xiv) of this subdivision in computing 997
1261	1261	Connecticut adjusted gross income, twenty-five per cent of such 998
1262	1262	disallowed portion of the deduction in each of the four succeeding 999
1263	1263	taxable years; 1000
1264	1264	(xxvii) To the extent properly includable in gross income for federal 1001
1265	1265	income tax purposes, for a person who files a return under the federal 1002
1266	1266	income tax as an unmarried individual whose federal adjusted gross 1003
1267	1267	income for such taxable year is less than seventy-five thousand dollars, 1004
1268	1268	or as a married individual filing separately whose federal adjusted gross 1005
1269	1269	income for such taxable year is less than seventy-five thousand dollars, 1006
1270	1270	or as a head of household whose federal adjusted gross income for such 1007
1271	1271	Raised Bill No. 7270
1272	1272
1273	1273
1274	1274
1275	1275	LCO No. 6964 34 of 39
1276	1276
1277	1277	taxable year is less than seventy-five thousand dollars, or for a husband 1008
1278	1278	and wife who file a return under the federal income tax as married 1009
1279	1279	individuals filing jointly whose federal adjusted gross income for such 1010
1280	1280	taxable year is less than one hundred thousand dollars, for the taxable 1011
1281	1281	year commencing January 1, 2023, twenty-five per cent of any 1012
1282	1282	distribution from an individual retirement account other than a Roth 1013
1283	1283	individual retirement account; 1014
1284	1284	(xxviii) To the extent properly includable in gross income for federal 1015
1285	1285	income tax purposes, for a person who files a return under the federal 1016
1286	1286	income tax as an unmarried individual whose federal adjusted gross 1017
1287	1287	income for such taxable year is less than one hundred thousand dollars, 1018
1288	1288	or as a married individual filing separately whose federal adjusted gross 1019
1289	1289	income for such taxable year is less than one hundred thousand dollars, 1020
1290	1290	or as a head of household whose federal adjusted gross income for such 1021
1291	1291	taxable year is less than one hundred thousand dollars, (I) for the taxable 1022
1292	1292	year commencing January 1, 2024, fifty per cent of any distribution from 1023
1293	1293	an individual retirement account other than a Roth individual 1024
1294	1294	retirement account, (II) for the taxable year commencing January 1, 2025, 1025
1295	1295	seventy-five per cent of any distribution from an individual retirement 1026
1296	1296	account other than a Roth individual retirement account, and (III) for 1027
1297	1297	the taxable year commencing January 1, 2026, and each taxable year 1028
1298	1298	thereafter, any distribution from an individual retirement account other 1029
1299	1299	than a Roth individual retirement account. The subtraction under this 1030
1300	1300	clause shall be made in accordance with the following schedule: 1031
1301	1301	T23
1302	1302	Federal Adjusted Gross Income Deduction
1303	1303	T24
1304	1304	Less than $75,000 100.0%
1305	1305	T25 $75,000 but not over $77,499 85.0%
1306	1306	T26
1307	1307	$77,500 but not over $79,999 70.0%
1308	1308	T27
1309	1309	$80,000 but not over $82,499 55.0%
1310	1310	T28
1311	1311	$82,500 but not over $84,999 40.0%
1312	1312	T29
1313	1313	$85,000 but not over $87,499 25.0%
1314	1314	T30
1315	1315	$87,500 but not over $89,999 10.0%
1316	1316	Raised Bill No. 7270
1317	1317
1318	1318
1319	1319
1320	1320	LCO No. 6964 35 of 39
1321	1321
1322	1322	T31 $90,000 but not over $94,999 5.0%
1323	1323	T32
1324	1324	$95,000 but not over $99,999 2.5%
1325	1325	T33
1326	1326	$100,000 and over 0.0%
1327	1327
1328	1328	(xxix) To the extent properly includable in gross income for federal 1032
1329	1329	income tax purposes, for married individuals who file a return under 1033
1330	1330	the federal income tax as married individuals filing jointly whose 1034
1331	1331	federal adjusted gross income for such taxable year is less than one 1035
1332	1332	hundred fifty thousand dollars, (I) for the taxable year commencing 1036
1333	1333	January 1, 2024, fifty per cent of any distribution from an individual 1037
1334	1334	retirement account other than a Roth individual retirement account, (II) 1038
1335	1335	for the taxable year commencing January 1, 2025, seventy-five per cent 1039
1336	1336	of any distribution from an individual retirement account other than a 1040
1337	1337	Roth individual retirement account, and (III) for the taxable year 1041
1338	1338	commencing January 1, 2026, and each taxable year thereafter, any 1042
1339	1339	distribution from an individual retirement account other than a Roth 1043
1340	1340	individual retirement account. The subtraction under this clause shall 1044
1341	1341	be made in accordance with the following schedule: 1045
1342	1342	T34
1343	1343	Federal Adjusted Gross Income Deduction
1344	1344	T35
1345	1345	Less than $100,000 100.0%
1346	1346	T36
1347	1347	$100,000 but not over $104,999 85.0%
1348	1348	T37
1349	1349	$105,000 but not over $109,999 70.0%
1350	1350	T38
1351	1351	$110,000 but not over $114,999 55.0%
1352	1352	T39
1353	1353	$115,000 but not over $119,999 40.0%
1354	1354	T40
1355	1355	$120,000 but not over $124,999 25.0%
1356	1356	T41
1357	1357	$125,000 but not over $129,999 10.0%
1358	1358	T42 $130,000 but not over $139,999 5.0%
1359	1359	T43
1360	1360	$140,000 but not over $149,999 2.5%
1361	1361	T44
1362	1362	$150,000 and over 0.0%
1363	1363
1364	1364	(xxx) To the extent properly includable in gross income for federal 1046
1365	1365	income tax purposes, for the taxable year commencing January 1, 2022, 1047
1366	1366	Raised Bill No. 7270
1367	1367
1368	1368
1369	1369
1370	1370	LCO No. 6964 36 of 39
1371	1371
1372	1372	the amount or amounts paid or otherwise credited to any eligible 1048
1373	1373	resident of this state under (I) the 2020 Earned Income Tax Credit 1049
1374	1374	enhancement program from funding allocated to the state through the 1050
1375	1375	Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 1051
1376	1376	and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 1052
1377	1377	Income Tax Credit enhancement program from funding allocated to the 1053
1378	1378	state pursuant to Section 9901 of Subtitle M of Title IX of the American 1054
1379	1379	Rescue Plan Act of 2021, P.L. 117-2; 1055
1380	1380	(xxxi) For the taxable year commencing January 1, 2023, and each 1056
1381	1381	taxable year thereafter, for a taxpayer licensed under the provisions of 1057
1382	1382	chapter 420f or 420h, the amount of ordinary and necessary expenses 1058
1383	1383	that would be eligible to be claimed as a deduction for federal income 1059
1384	1384	tax purposes under Section 162(a) of the Internal Revenue Code but that 1060
1385	1385	are disallowed under Section 280E of the Internal Revenue Code 1061
1386	1386	because marijuana is a controlled substance under the federal 1062
1387	1387	Controlled Substance Act; 1063
1388	1388	(xxxii) To the extent properly includable in gross income for federal 1064
1389	1389	income tax purposes, for the taxable year commencing on or after 1065
1390	1390	January 1, 2025, and each taxable year thereafter, any common stock 1066
1391	1391	received by the taxpayer during the taxable year under a share plan, as 1067
1392	1392	defined in section 12-217ss; 1068
1393	1393	(xxxiii) To the extent properly includable in gross income for federal 1069
1394	1394	income tax purposes, the amount of any student loan reimbursement 1070
1395	1395	payment received by a taxpayer pursuant to section 10a-19m; 1071
1396	1396	(xxxiv) Contributions to an ABLE account established pursuant to 1072
1397	1397	sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 1073
1398	1398	each individual taxpayer or ten thousand dollars for taxpayers filing a 1074
1399	1399	joint return; and 1075
1400	1400	(xxxv) To the extent properly includable in gross income for federal 1076
1401	1401	income tax purposes, the amount of any payment received pursuant to 1077
1402	1402	subsection (c) of section 3-122a. 1078
1403	1403	Raised Bill No. 7270
1404	1404
1405	1405
1406	1406
1407	1407	LCO No. 6964 37 of 39
1408	1408
1409	1409	Sec. 20. Subdivision (3) of subsection (b) of section 12-218h of the 1079
1410	1410	general statutes is repealed and the following is substituted in lieu 1080
1411	1411	thereof (Effective from passage): 1081
1412	1412	(3) For the thirty-year period beginning with a combined group's first 1082
1413	1413	income year that begins in 2026, a combined group entitled to a 1083
1414	1414	deduction under this subsection shall deduct from combined group net 1084
1415	1415	income an amount equal to one-thirtieth of the amount necessary to 1085
1416	1416	offset the increase in the valuation allowance against net operating 1086
1417	1417	losses and tax credits in the state, as computed in accordance with 1087
1418	1418	generally accepted accounting principles, that resulted from the 1088
1419	1419	enactment of sections 12-218e and 12-218f. Such increase in valuation 1089
1420	1420	allowance shall be computed based on the change in valuation 1090
1421	1421	allowance that was reported in the combined group's financial 1091
1422	1422	statements for the income year commencing on or after January 1, [2016] 1092
1423	1423	2015, but prior to January 1, [2017] 2016. 1093
1424	1424	This act shall take effect as follows and shall amend the following
1425	1425	sections:
1426	1426
1427	1427	Section 1 October 1, 2025 New section
1428	1428	Sec. 2 October 1, 2025, and
1429	1429	applicable to protests filed
1430	1430	on or after October 1, 2025
1431	1431	12-206
1432	1432	Sec. 3 October 1, 2025, and
1433	1433	applicable to protests filed
1434	1434	on or after October 1, 2025
1435	1435	12-225
1436	1436	Sec. 4 October 1, 2025 12-226
1437	1437	Sec. 5 October 1, 2025, and
1438	1438	applicable to hearing
1439	1439	applications filed on or
1440	1440	after October 1, 2025
1441	1441	12-236
1442	1442	Sec. 6 October 1, 2025, and
1443	1443	applicable to hearing
1444	1444	applications filed on or
1445	1445	after October 1, 2025
1446	1446	12-268i
1447	1447	Raised Bill No. 7270
1448	1448
1449	1449
1450	1450
1451	1451	LCO No. 6964 38 of 39
1452	1452
1453	1453	Sec. 7 October 1, 2025, and
1454	1454	applicable to hearing
1455	1455	applications filed on or
1456	1456	after October 1, 2025
1457	1457	12-311
1458	1458	Sec. 8 October 1, 2025, and
1459	1459	applicable to hearing
1460	1460	applications filed on or
1461	1461	after October 1, 2025
1462	1462	12-330l
1463	1463	Sec. 9 October 1, 2025, and
1464	1464	applicable to protests filed
1465	1465	on or after October 1, 2025
1466	1466	12-418
1467	1467	Sec. 10 October 1, 2025, and
1468	1468	applicable to hearing
1469	1469	applications filed on or
1470	1470	after October 1, 2025
1471	1471	12-447
1472	1472	Sec. 11 October 1, 2025, and
1473	1473	applicable to hearing
1474	1474	applications filed on or
1475	1475	after October 1, 2025
1476	1476	12-461
1477	1477	Sec. 12 October 1, 2025, and
1478	1478	applicable to hearing
1479	1479	applications filed on or
1480	1480	after October 1, 2025
1481	1481	12-489(a)
1482	1482	Sec. 13 October 1, 2025, and
1483	1483	applicable to hearing
1484	1484	applications filed on or
1485	1485	after October 1, 2025
1486	1486	12-493a(k)
1487	1487	Sec. 14 October 1, 2025, and
1488	1488	applicable to hearing
1489	1489	applications filed on or
1490	1490	after October 1, 2025
1491	1491	12-553
1492	1492	Sec. 15 October 1, 2025, and
1493	1493	applicable to hearing
1494	1494	applications filed on or
1495	1495	after October 1, 2025
1496	1496	12-595
1497	1497	Sec. 16 October 1, 2025, and
1498	1498	applicable to protests filed
1499	1499	on or after October 1, 2025
1500	1500	12-729
1501	1501	Sec. 17 October 1, 2025, and
1502	1502	applicable to hearing
1503	1503	requests filed on or after
1504	1504	October 1, 2025
1505	1505	12-790c(b)
1506	1506	Raised Bill No. 7270
1507	1507
1508	1508
1509	1509
1510	1510	LCO No. 6964 39 of 39
1511	1511
1512	1512	Sec. 18 from passage New section
1513	1513	Sec. 19 January 1, 2026, and
1514	1514	applicable to taxable years
1515	1515	commencing on or after
1516	1516	January 1, 2026
1517	1517	12-701(a)(20)(B)
1518	1518	Sec. 20 from passage 12-218h(b)(3)
1519	1519
1520	1520	Statement of Purpose:
1521	1521	To (1) establish requirements for filing certain tax protests, (2) require
1522	1522	the Commissioner of Revenue Services to provide certain disaggregated
1523	1523	tax sourcing information; (3) eliminate the requirement that the
1524	1524	amortizable bond premium subtraction for purposes of calculating
1525	1525	Connecticut adjustable gross income be attributable to a trade or
1526	1526	business of the taxpayer, and (4) revise certain dates with respect to the
1527	1527	application of the valuation allowance under section 12-218h of the
1528	1528	general statutes.
1529	1529
1530	1530	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
1531	1531	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
1532	1532	underlined.]
1533	1533