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General Assembly Raised Bill No. 1551
January Session, 2025
LCO No. 6906
Referred to Committee on APPROPRIATIONS
Introduced by:
(APP)
AN ACT CONCERNING THE DEPARTMENT OF ECONOMIC AND
COMMUNITY DEVELOPMENT'S SPENDING ON ARTS AND
HUMANITIES ACTIVITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 10-395 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) There is established an account [within the General Fund] to be 3
known as the "culture and tourism account". The account shall contain 4
all moneys required by law to be deposited in the account, including, 5
but not limited to, not less than ten per cent of the amounts received by 6
the state from the tax imposed under subparagraph (I) of subdivision 7
(1) of section 12-408, as amended by this act. 8
(b) Moneys in the account shall be used for purposes including, but 9
not limited to, providing grants-in-aid to organizations engaging in or 10
promoting the arts, helping to make the state a destination for leisure 11
and business travelers, preserving and promoting historic resources and 12
interpreting and presenting the state's history and culture. 13
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Sec. 2. Subdivision (1) of section 12-408 of the general statutes is 14
repealed and the following is substituted in lieu thereof (Effective July 1, 15
2025, and applicable to sales occurring on or after July 1, 2025): 16
(1) (A) For the privilege of making any sales, as defined in 17
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 18
for a consideration, a tax is hereby imposed on all retailers at the rate of 19
six and thirty-five-hundredths per cent of the gross receipts of any 20
retailer from the sale of all tangible personal property sold at retail or 21
from the rendering of any services constituting a sale in accordance with 22
subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 23
rate, the rates provided in subparagraphs (B) to (I), inclusive, of this 24
subdivision; 25
(B) (i) At a rate of fifteen per cent with respect to each transfer of 26
occupancy, from the total amount of rent received by a hotel or lodging 27
house for the first period not exceeding thirty consecutive calendar 28
days; 29
(ii) At a rate of eleven per cent with respect to each transfer of 30
occupancy, from the total amount of rent received by a bed and 31
breakfast establishment for the first period not exceeding thirty 32
consecutive calendar days; 33
(C) With respect to the sale of a motor vehicle to any individual who 34
is a member of the armed forces of the United States and is on full-time 35
active duty in Connecticut and who is considered, under 50 App USC 36
574, a resident of another state, or to any such individual and the spouse 37
thereof, at a rate of four and one-half per cent of the gross receipts of any 38
retailer from such sales, provided such retailer requires and maintains a 39
declaration by such individual, prescribed as to form by the 40
commissioner and bearing notice to the effect that false statements made 41
in such declaration are punishable, or other evidence, satisfactory to the 42
commissioner, concerning the purchaser's state of residence under 50 43
App USC 574; 44
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(D) (i) With respect to the sales of computer and data processing 45
services occurring on or after July 1, 2001, at the rate of one per cent, and 46
(ii) with respect to sales of Internet access services, on and after July 1, 47
2001, such services shall be exempt from such tax; 48
(E) (i) With respect to the sales of labor that is otherwise taxable under 49
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 50
12-407 on existing vessels and repair or maintenance services on vessels 51
occurring on and after July 1, 1999, such services shall be exempt from 52
such tax; 53
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 54
used for transporting a vessel, at the rate of two and ninety-nine-55
hundredths per cent, except that the sale of a vessel shall be exempt from 56
such tax if such vessel is docked in this state for sixty or fewer days in a 57
calendar year; 58
(iii) With respect to the sale of dyed diesel fuel, as defined in 59
subsection (d) of section 12-487, sold by a marine fuel dock exclusively 60
for marine purposes, at the rate of two and ninety-nine-hundredths per 61
cent; 62
(F) With respect to patient care services for which payment is 63
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 64
at the rate of five and three-fourths per cent and on and after July 1, 2001, 65
such services shall be exempt from such tax; 66
(G) With respect to the rental or leasing of a passenger motor vehicle 67
for a period of thirty consecutive calendar days or less, at a rate of nine 68
and thirty-five-hundredths per cent; 69
(H) With respect to the sale of (i) a motor vehicle for a sales price 70
exceeding fifty thousand dollars, at a rate of seven and three-fourths per 71
cent on the entire sales price, (ii) jewelry, whether real or imitation, for 72
a sales price exceeding five thousand dollars, at a rate of seven and 73
three-fourths per cent on the entire sales price, and (iii) an article of 74
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clothing or footwear intended to be worn on or about the human body, 75
a handbag, luggage, umbrella, wallet or watch for a sales price 76
exceeding one thousand dollars, at a rate of seven and three-fourths per 77
cent on the entire sales price. For purposes of this subparagraph, "motor 78
vehicle" has the meaning provided in section 14-1, but does not include 79
a motor vehicle subject to the provisions of subparagraph (C) of this 80
subdivision, a motor vehicle having a gross vehicle weight rating over 81
twelve thousand five hundred pounds, or a motor vehicle having a 82
gross vehicle weight rating of twelve thousand five hundred pounds or 83
less that is not used for private passenger purposes, but is designed or 84
used to transport merchandise, freight or persons in connection with 85
any business enterprise and issued a commercial registration or more 86
specific type of registration by the Department of Motor Vehicles; 87
(I) With respect to the sale of meals, as defined in subdivision (13) of 88
section 12-412, sold by an eating establishment, caterer or grocery store; 89
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 90
such as are ordinarily dispensed at bars and soda fountains, or in 91
connection therewith; in addition to the tax imposed under 92
subparagraph (A) of this subdivision, at the rate of one per cent; 93
(J) The rate of tax imposed by this chapter shall be applicable to all 94
retail sales upon the effective date of such rate, except that a new rate 95
that represents an increase in the rate applicable to the sale shall not 96
apply to any sales transaction wherein a binding sales contract without 97
an escalator clause has been entered into prior to the effective date of the 98
new rate and delivery is made within ninety days after the effective date 99
of the new rate. For the purposes of payment of the tax imposed under 100
this section, any retailer of services taxable under subdivision (37) of 101
subsection (a) of section 12-407, who computes taxable income, for 102
purposes of taxation under the Internal Revenue Code of 1986, or any 103
subsequent corresponding internal revenue code of the United States, 104
as amended from time to time, on an accounting basis that recognizes 105
only cash or other valuable consideration actually received as income 106
and who is liable for such tax only due to the rendering of such services 107
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may make payments related to such tax for the period during which 108
such income is received, without penalty or interest, without regard to 109
when such service is rendered; 110
(K) (i) For calendar quarters ending on or after September 30, 2019, 111
the commissioner shall deposit into the regional planning incentive 112
account, established pursuant to section 4-66k, six and seven-tenths per 113
cent of the amounts received by the state from the tax imposed under 114
subparagraph (B) of this subdivision and ten and seven-tenths per cent 115
of the amounts received by the state from the tax imposed under 116
subparagraph (G) of this subdivision; 117
(ii) For calendar quarters ending on or after September 30, 2018, the 118
commissioner shall deposit into the Tourism Fund established under 119
section 10-395b ten per cent of the amounts received by the state from 120
the tax imposed under subparagraph (B) of this subdivision; 121
(iii) For calendar quarters ending on or after September 30, 2025, the 122
commissioner shall deposit into the culture and tourism account 123
established under section 10-395, as amended by this act, ten per cent of 124
the amounts received by the state from the tax imposed under 125
subparagraph (I) of this subdivision; 126
(L) (i) For calendar months commencing on or after July 1, 2021, but 127
prior to July 1, 2023, the commissioner shall deposit into the municipal 128
revenue sharing account established pursuant to section 4-66l seven and 129
nine-tenths per cent of the amounts received by the state from the tax 130
imposed under subparagraph (A) of this subdivision, including such 131
amounts received on or after July 1, 2023, attributable to the fiscal year 132
ending June 30, 2023; [and] 133
(ii) For calendar months commencing on or after July 1, 2023, the 134
commissioner shall deposit into the Municipal Revenue Sharing Fund 135
established pursuant to section 4-66p seven and nine-tenths per cent of 136
the amounts received by the state from the tax imposed under 137
subparagraph (A) of this subdivision; [and] 138
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(M) (i) For calendar months commencing on or after July 1, 2017, the 139
commissioner shall deposit into the Special Transportation Fund 140
established under section 13b-68 seven and nine-tenths per cent of the 141
amounts received by the state from the tax imposed under 142
subparagraph (A) of this subdivision; 143
(ii) For calendar months commencing on or after July 1, 2018, but 144
prior to July 1, 2019, the commissioner shall deposit into the Special 145
Transportation Fund established under section 13b-68 eight per cent of 146
the amounts received by the state from the tax imposed under 147
subparagraphs (A) and (H) of this subdivision on the sale of a motor 148
vehicle; 149
(iii) For calendar months commencing on or after July 1, 2019, but 150
prior to July 1, 2020, the commissioner shall deposit into the Special 151
Transportation Fund established under section 13b-68 seventeen per 152
cent of the amounts received by the state from the tax imposed under 153
subparagraphs (A) and (H) of this subdivision on the sale of a motor 154
vehicle; 155
(iv) For calendar months commencing on or after July 1, 2020, but 156
prior to July 1, 2021, the commissioner shall deposit into the Special 157
Transportation Fund established under section 13b-68 twenty-five per 158
cent of the amounts received by the state from the tax imposed under 159
subparagraphs (A) and (H) of this subdivision on the sale of a motor 160
vehicle; 161
(v) For calendar months commencing on or after July 1, 2021, but 162
prior to July 1, 2022, the commissioner shall deposit into the Special 163
Transportation Fund established under section 13b-68 seventy-five per 164
cent of the amounts received by the state from the tax imposed under 165
subparagraphs (A) and (H) of this subdivision on the sale of a motor 166
vehicle; and 167
(vi) For calendar months commencing on or after July 1, 2022, the 168
commissioner shall deposit into the Special Transportation Fund 169
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established under section 13b-68 one hundred per cent of the amounts 170
received by the state from the tax imposed under subparagraphs (A) 171
and (H) of this subdivision on the sale of a motor vehicle. 172
Sec. 3. Subdivision (1) of section 12-411 of the general statutes is 173
repealed and the following is substituted in lieu thereof (Effective July 1, 174
2025, and applicable to sales occurring on or after July 1, 2025): 175
(1) (A) An excise tax is hereby imposed on the storage, acceptance, 176
consumption or any other use in this state of tangible personal property 177
purchased from any retailer for storage, acceptance, consumption or any 178
other use in this state, the acceptance or receipt of any services 179
constituting a sale in accordance with subdivision (2) of subsection (a) 180
of section 12-407, purchased from any retailer for consumption or use in 181
this state, or the storage, acceptance, consumption or any other use in 182
this state of tangible personal property which has been manufactured, 183
fabricated, assembled or processed from materials by a person, either 184
within or without this state, for storage, acceptance, consumption or any 185
other use by such person in this state, to be measured by the sales price 186
of materials, at the rate of six and thirty-five-hundredths per cent of the 187
sales price of such property or services, except, in lieu of said rate: 188
(B) (i) At a rate of fifteen per cent of the rent paid to a hotel or lodging 189
house for the first period not exceeding thirty consecutive calendar 190
days; 191
(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast 192
establishment for the first period not exceeding thirty consecutive 193
calendar days; 194
(C) With respect to the storage, acceptance, consumption or use in 195
this state of a motor vehicle purchased from any retailer for storage, 196
acceptance, consumption or use in this state by any individual who is a 197
member of the armed forces of the United States and is on full-time 198
active duty in Connecticut and who is considered, under 50 App USC 199
574, a resident of another state, or to any such individual and the spouse 200
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of such individual at a rate of four and one-half per cent of the sales price 201
of such vehicle, provided such retailer requires and maintains a 202
declaration by such individual, prescribed as to form by the 203
commissioner and bearing notice to the effect that false statements made 204
in such declaration are punishable, or other evidence, satisfactory to the 205
commissioner, concerning the purchaser's state of residence under 50 206
App USC 574; 207
(D) (i) With respect to the acceptance or receipt in this state of labor 208
that is otherwise taxable under subparagraph (C) or (G) of subdivision 209
(2) of subsection (a) of section 12-407 on existing vessels and repair or 210
maintenance services on vessels occurring on and after July 1, 1999, such 211
services shall be exempt from such tax; 212
(ii) (I) With respect to the storage, acceptance or other use of a vessel 213
in this state, at the rate of two and ninety-nine-hundredths per cent, 214
except that such storage, acceptance or other use shall be exempt from 215
such tax if such vessel is docked in this state for sixty or fewer days in a 216
calendar year; 217
(II) With respect to the storage, acceptance or other use of a motor for 218
a vessel or a trailer used for transporting a vessel in this state, at the rate 219
of two and ninety-nine-hundredths per cent; 220
(III) With respect to the storage, acceptance or other use of dyed diesel 221
fuel, as defined in subsection (d) of section 12-487, exclusively for 222
marine purposes, at the rate of two and ninety-nine-hundredths per 223
cent; 224
(E) (i) With respect to the acceptance or receipt in this state of 225
computer and data processing services purchased from any retailer for 226
consumption or use in this state occurring on or after July 1, 2001, at the 227
rate of one per cent of such services, and (ii) with respect to the 228
acceptance or receipt in this state of Internet access services, on and after 229
July 1, 2001, such services shall be exempt from such tax; 230
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(F) With respect to the acceptance or receipt in this state of patient 231
care services purchased from any retailer for consumption or use in this 232
state for which payment is received by the hospital on or after July 1, 233
1999, and prior to July 1, 2001, at the rate of five and three-fourths per 234
cent and on and after July 1, 2001, such services shall be exempt from 235
such tax; 236
(G) With respect to the rental or leasing of a passenger motor vehicle 237
for a period of thirty consecutive calendar days or less, at a rate of nine 238
and thirty-five-hundredths per cent; 239
(H) With respect to the acceptance or receipt in this state of (i) a motor 240
vehicle for a sales price exceeding fifty thousand dollars, at a rate of 241
seven and three-fourths per cent on the entire sales price, (ii) jewelry, 242
whether real or imitation, for a sales price exceeding five thousand 243
dollars, at a rate of seven and three-fourths per cent on the entire sales 244
price, and (iii) an article of clothing or footwear intended to be worn on 245
or about the human body, a handbag, luggage, umbrella, wallet or 246
watch for a sales price exceeding one thousand dollars, at a rate of seven 247
and three-fourths per cent on the entire sales price. For purposes of this 248
subparagraph, "motor vehicle" has the meaning provided in section 14-249
1, but does not include a motor vehicle subject to the provisions of 250
subparagraph (C) of this subdivision, a motor vehicle having a gross 251
vehicle weight rating over twelve thousand five hundred pounds, or a 252
motor vehicle having a gross vehicle weight rating of twelve thousand 253
five hundred pounds or less that is not used for private passenger 254
purposes, but is designed or used to transport merchandise, freight or 255
persons in connection with any business enterprise and issued a 256
commercial registration or more specific type of registration by the 257
Department of Motor Vehicles; 258
(I) With respect to the acceptance or receipt in this state of meals, as 259
defined in subdivision (13) of section 12-412, sold by an eating 260
establishment, caterer or grocery store; and spirituous, malt or vinous 261
liquors, soft drinks, sodas or beverages such as are ordinarily dispensed 262
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at bars and soda fountains, or in connection therewith; in addition to the 263
tax imposed under subparagraph (A) of this subdivision, at the rate of 264
one per cent; 265
(J) (i) For calendar quarters ending on or after September 30, 2019, the 266
commissioner shall deposit into the regional planning incentive 267
account, established pursuant to section 4-66k, six and seven-tenths per 268
cent of the amounts received by the state from the tax imposed under 269
subparagraph (B) of this subdivision and ten and seven-tenths per cent 270
of the amounts received by the state from the tax imposed under 271
subparagraph (G) of this subdivision; 272
(ii) For calendar quarters ending on or after September 30, 2018, the 273
commissioner shall deposit into the Tourism Fund established under 274
section 10-395b ten per cent of the amounts received by the state from 275
the tax imposed under subparagraph (B) of this subdivision; 276
(K) (i) For calendar months commencing on or after July 1, 2021, but 277
prior to July 1, 2023, the commissioner shall deposit into the municipal 278
revenue sharing account established pursuant to section 4-66l seven and 279
nine-tenths per cent of the amounts received by the state from the tax 280
imposed under subparagraph (A) of this subdivision, including such 281
amounts received on or after July 1, 2023, attributable to the fiscal year 282
ending June 30, 2023; [and] 283
(ii) For calendar months commencing on or after July 1, 2023, the 284
commissioner shall deposit into the Municipal Revenue Sharing Fund 285
established pursuant to section 4-66p seven and nine-tenths per cent of 286
the amounts received by the state from the tax imposed under 287
subparagraph (A) of this subdivision; [and] 288
(iii) For calendar quarters ending on or after September 30, 2025, the 289
commissioner shall deposit into the culture and tourism account 290
established under section 10-395, as amended by this act, one per cent 291
of the amounts received by the state from the tax imposed under 292
subparagraph (I) of this subdivision; 293
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(L) (i) For calendar months commencing on or after July 1, 2017, the 294
commissioner shall deposit into said Special Transportation Fund seven 295
and nine-tenths per cent of the amounts received by the state from the 296
tax imposed under subparagraph (A) of this subdivision; 297
(ii) For calendar months commencing on or after July 1, 2018, but 298
prior to July 1, 2019, the commissioner shall deposit into the Special 299
Transportation Fund established under section 13b-68 eight per cent of 300
the amounts received by the state from the tax imposed under 301
subparagraphs (A) and (H) of this subdivision on the acceptance or 302
receipt in this state of a motor vehicle; 303
(iii) For calendar months commencing on or after July 1, 2019, but 304
prior to July 1, 2020, the commissioner shall deposit into the Special 305
Transportation Fund established under section 13b-68 seventeen per 306
cent of the amounts received by the state from the tax imposed under 307
subparagraphs (A) and (H) of this subdivision on the acceptance or 308
receipt in this state of a motor vehicle; 309
(iv) For calendar months commencing on or after July 1, 2020, but 310
prior to July 1, 2021, the commissioner shall deposit into the Special 311
Transportation Fund established under section 13b-68 twenty-five per 312
cent of the amounts received by the state from the tax imposed under 313
subparagraphs (A) and (H) of this subdivision on the acceptance or 314
receipt in this state of a motor vehicle; 315
(v) For calendar months commencing on or after July 1, 2021, but 316
prior to July 1, 2022, the commissioner shall deposit into the Special 317
Transportation Fund established under section 13b-68 seventy-five per 318
cent of the amounts received by the state from the tax imposed under 319
subparagraphs (A) and (H) of this subdivision on the acceptance or 320
receipt in this state of a motor vehicle; and 321
(vi) For calendar months commencing on or after July 1, 2022, the 322
commissioner shall deposit into the Special Transportation Fund 323
established under section 13b-68 one hundred per cent of the amounts 324
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received by the state from the tax imposed under subparagraphs (A) 325
and (H) of this subdivision on the acceptance or receipt in this state of a 326
motor vehicle. 327
Sec. 4. (NEW) (Effective July 1, 2025) (a) Each organization receiving a 328
grant-in-aid from the Department of Economic and Community 329
Development using moneys deposited in the culture and tourism 330
account, established under section 10-395 of the general statutes, as 331
amended by this act, for activities relating to arts, culture, tourism or 332
humanities shall submit a detailed report to Connecticut Humanities 333
not later than six months after receiving such grant-in-aid. Such report 334
shall include information concerning the expenditure of grant funding 335
received by the department and the finances of the organization. 336
(b) Connecticut Humanities shall report to the joint standing 337
committees of the General Assembly having cognizance of matters 338
relating to appropriations and the budgets of state agencies and 339
commerce on the information received pursuant to subsection (a) of this 340
section. 341
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 10-395
Sec. 2 July 1, 2025, and
applicable to sales
occurring on or after July
1, 2025
12-408(1)
Sec. 3 July 1, 2025, and
applicable to sales
occurring on or after July
1, 2025
12-411(1)
Sec. 4 July 1, 2025 New section
Statement of Purpose:
To provide funding for arts, culture, tourism and humanities activities
and require reporting on the spending for such activities.
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[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]