Connecticut Senate Bill SB00478

Connecticut 2018 Regular Session

• Introduced: 3/9/18
• Refer: 3/9/18

Caption

An Act Concerning A Study Of State Income Taxes And Double Taxation Of Residents Who Work Out Of State.

Impact

The implementation of SB00478 could significantly influence state tax policy and the financial burden on Connecticut residents who earn income in other states. By requiring a comprehensive study, the bill aims to gather critical data that may help in identifying inequities in tax implications faced by these residents. This initiative could lead to potential reforms that alleviate any identified instances of double taxation, thereby shaping a more equitable tax climate for Connecticut’s workforce. Moreover, it brings to light the potential for future legislative adjustments based on the study's outcomes.

Summary

SB00478 is a legislative bill concerning the study of state income taxes and the potential for double taxation of residents who work out of state. The bill mandates that the Commissioner of Revenue Services conduct an in-depth study of the income tax systems in neighboring and other relevant states. This examination will include various elements, such as tax bases, credits provided for taxes paid to other states, and an overall assessment of how double taxation may affect Connecticut residents. The report summarizing the findings and recommendations is to be submitted to the legislative committee by January 1, 2019.

Contention

The bill may face contention as it implicates various state interests, including those related to tax revenue and interstate relations. Concerns might arise regarding how double taxation impacts residents' financial situations and the competitive landscape for businesses in Connecticut versus other states. Some policymakers could argue that addressing double taxation is essential for maintaining a fair tax structure, while others may worry about the implications on state revenue or the resources required to implement any necessary changes based on the findings. Thus, the study's outcomes could spark debate among legislators on how to approach tax policy reforms in the future.