OLR Bill Analysis

HB 6288

AN ACT CONCERNING THE COLLECTION OF DELINQUENT TAXES AND LOTTERY WINNINGS.

SUMMARY:

This bill requires the Connecticut Lottery Corporation (CLC) to deduct and withhold delinquent taxes from any lottery claim of $ 5,000 or more a delinquent taxpayer submits at CLC's central office on or after January 1, 2010.

The bill requires the Division of Revenue Services (DRS) commissioner to submit a list of delinquent taxpayers to CLC. It allows the commissioner to disclose to CLC (1) the name and any information necessary to identify a delinquent taxpayer and (2) the amount of taxes, penalty, and interest owed. Before paying any prize claim of $ 5,000 or more, CLC must check the list. If the claimant is delinquent, CLC must withhold from the winnings and promptly notify of and forward to the commissioner the amount of taxes owed, plus penalties and interest, after deducting and withholding any amount owed for child support.

The bill applies to taxes, including penalties and interest, more than 30 days overdue and not the subject of a timely filed administrative appeal to the commissioner or a timely filed appeal pending before a court.

For the bill's purposes, CLC employees are state employees. As such, they are prohibited from disclosing any tax information they receive, except as the law requires. By law, a violation carries a fine of up to $ 1,000, imprisonment for up to one year, or both.

EFFECTIVE DATE: July 1, 2009

COMMITTEE ACTION

Public Safety and Security Committee

Joint Favorable Change of Reference

Finance, Revenue and Bonding Committee

Joint Favorable