House Bill No. 6003
               House Bill No. 6003

     May Special Session, PUBLIC ACT NO. 94-4

AN   ACT   MODIFYING   CERTAIN   TAXES   AFFECTING
BUSINESSES AND INDIVIDUALS.


    Section 1. Section  13 of public act 93-433 is
repealed and the  following is substituted in lieu
thereof:
    The provisions of  section 13b-39a, as amended
by section 9  of [this act] PUBLIC ACT 93-433, and
sections 10 to  [13]  12, inclusive, of [this act]
PUBLIC ACT 93-433  shall  not  apply  to  military
aircraft or government aircraft owned and operated
by  the  United  States  or  any  state  or  local
government therein, to  any aircraft registered in
a foreign country  that has a reciprocal agreement
with the United  States  government or to aircraft
engaged in Federal  Aviation  Regulations Part 121
and  Part  135   certificated   operations  OR  TO
AIRCRAFT OWNED BY  DEALERS FOR THE SOLE PURPOSE OF
SALE OR EXCHANGE.  FOR THE PURPOSE OF THIS SECTION
"DEALER" INCLUDES ANY  PERSON  ACTIVELY ENGAGED IN
BUYING, SELLING OR  EXCHANGING AIRCRAFT WHO HAS AN
ESTABLISHED PLACE OF  BUSINESS  IN  THIS STATE AND
WHO  MAY,  INCIDENTAL  TO  SUCH  BUSINESS,  REPAIR
AIRCRAFT, OR CAUSE THEM TO BE REPAIRED.
    Sec. 2. Section  43  of  public  act 93-382 is
repealed and the  following is substituted in lieu
thereof:
    (a)  The  commissioner   of  revenue  services
shall,  in consultation  with  the  department  of
revenue services small  and  medium-sized business
users committee established  under  section  44 of
[this  act, conduct  a  comprehensive  review  of]
PUBLIC ACT 93-382,  CONTINUE  TO REVIEW department
procedures, regulations, and  operations  in order
to improve the  department's  "user friendliness",
including but not  limited  to,  measures  to  (1)
increase the cost  effectiveness and simplicity of
the department's audits  of  businesses concerning
payments of the sales and use tax, (2) improve the
business-related    education    and    "customer"
orientation of department auditors, (3) reform the
procedure under which  businesses  make  estimated
payments under the  corporation  business tax, (4)
establish,  for  payments  under  the  corporation
business tax, parity  between  rates  of  interest
charged by the  department for delinquent payments
and rates of  interest  paid by the department for
overpayments, (5) increase  the  accessibility  of
department  personnel that  assist  with  taxpayer
inquiries, and (6)  increase  the dissemination to
small and medium-sized  businesses  of information
concerning goods and services subject to the sales
and use tax, department regulations, available tax
credits, and department  services.  THE  COMMITTEE
SHALL ALSO REVIEW  ANY LEGISLATION CONCERNING SUCH
MEASURES ENACTED DURING  THE 1994 FEBRUARY AND MAY
SESSIONS OF THE GENERAL ASSEMBLY.
    (b) Not later  than  January  15, [1994] 1995,
the  commissioner  shall   submit,  to  the  joint
standing committees of the general assembly having
cognizance of matters relating to finance, revenue
and  bonding  and   the   department  of  economic
development,  a  [plan]   REPORT   CONTAINING  HIS
FINDINGS   AND  RECOMMENDATIONS,   including   any
necessary    legislative    changes.     [,    for
restructuring the department  to improve its "user
friendliness". The plan  shall  address all of the
measures  enumerated in  subsection  (a)  of  this
section  and  shall   include  the  commissioner's
recommendations for action on each measure.]
    Sec. 3. Section 12-71d of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    On or before  the  first  day  of October each
year, the secretary  of  the  office of policy and
management shall recommend  a  schedule  of  motor
vehicle values which shall be used by assessors in
each  municipality  in  determining  the  assessed
value of motor  vehicles  for purposes of property
taxation.  [Notwithstanding  the   motor   vehicle
values as listed  in  such  schedule,]  FOR  EVERY
VEHICLE   NOT   LISTED   IN   THE   SCHEDULE   THE
determination of the  assessed  value of any motor
vehicle  for  purposes   of   the   property   tax
assessment list in any municipality shall continue
to be the  responsibility  of the assessor in such
municipality, PROVIDED THE LEGISLATIVE BODY OF THE
MUNICIPALITY  MAY,  BY   RESOLUTION,  APPROVE  ANY
CHANGE IN THE  ASSESSORS  METHOD  OF VALUING MOTOR
VEHICLES.  Any  appeal   from   the   findings  of
assessors concerning motor vehicle values shall be
made in accordance with provisions related to such
appeals  under  this  chapter.  Such  schedule  of
values  shall  include,   to   the   extent   that
information for such  purpose  is  available,  the
value for assessment purposes of any motor vehicle
currently in use. The value for each motor vehicle
as listed shall  represent one hundred per cent of
the average retail  price applicable to such motor
vehicle in this  state  as  of  the  first  day of
October  in  such   year  as  determined  by  said
secretary  in  cooperation  with  the  Connecticut
Association of Assessing Officers.
    Sec.  4.  Section   12-202   of   the  general
statutes, as amended  by  section  4 of public act
93-74,   is  repealed   and   the   following   is
substituted in lieu thereof:
    Each   domestic   insurance   company   shall,
annually,  pay a  tax  on  the  total  net  direct
premiums  received  by  such  company  during  the
calendar year next preceding from policies written
on property or  risks  located or resident in this
state. The rate  of  tax  on  net direct insurance
premiums received before  July  1,  1973, shall be
two and one-half  per  cent  of  net  direct  life
insurance   premiums,   including   premiums   for
disability, double indemnity  and  any  other such
incidental benefits, and  two  and  three-quarters
per cent of  all  other  net  direct premiums. The
rate of tax  on  all net direct insurance premiums
received on and  after  July 1, 1973, shall be two
per cent. The  franchise  tax  imposed  under this
section on premium  income  for  the  privilege of
doing business in  the state is in addition to the
tax imposed under  chapter 208. In the case of any
local  domestic  insurance  company  the  admitted
assets of which as of the end of an income year do
not exceed ninety-five million dollars, eighty per
cent of the tax paid by such company under chapter
208 during such income year reduced by any refunds
of taxes paid  by  such  company and granted under
said chapter within  such  income  year and eighty
per cent of  the  assessment  paid by such company
under section 38a-48 during such income year shall
be allowed as a credit in the determination of the
tax under this  chapter  payable  with  respect to
total net direct  premiums  received  during  such
income year, provided that these two credits shall
not reduce the tax under this chapter to less than
zero, and provided  further in the case of a local
domestic insurance company which is a member of an
insurance holding company  system,  as  defined in
section 38a-129, these credits shall apply only if
the total admitted  assets  of  the local domestic
insurance company and  its  affiliates, as defined
in said section,  do  not exceed two hundred FIFTY
million dollars.
    Sec.  5.  Section   12-202   of   the  general
statutes, as amended  by  section  4 of public act
93-74 and section  4  of this act, is repealed and
the following is substituted in lieu thereof:
    Each   domestic   insurance   company   shall,
annually,  pay a  tax  on  the  total  net  direct
premiums  received  by  such  company  during  the
calendar year next preceding from policies written
on property or  risks  located or resident in this
state. [The rate  of  tax  on net direct insurance
premiums received before  July  1,  1973, shall be
two and one-half  per  cent  of  net  direct  life
insurance   premiums,   including   premiums   for
disability, double indemnity  and  any  other such
incidental benefits, and  two  and  three-quarters
per cent of  all  other  net direct premiums.] The
rate of tax  on  all net direct insurance premiums
received on and after [July 1, 1973, shall be two]
JANUARY 1, 1995,  SHALL  BE ONE AND THREE-QUARTERS
per cent. The  franchise  tax  imposed  under this
section on premium  income  for  the  privilege of
doing business in  the state is in addition to the
tax imposed under  chapter 208. In the case of any
local  domestic  insurance  company  the  admitted
assets of which as of the end of an income year do
not exceed ninety-five million dollars, eighty per
cent of the tax paid by such company under chapter
208 during such income year reduced by any refunds
of taxes paid  by  such  company and granted under
said chapter within  such  income  year and eighty
per cent of  the  assessment  paid by such company
under section 38a-48 during such income year shall
be allowed as a credit in the determination of the
tax under this  chapter  payable  with  respect to
total net direct  premiums  received  during  such
income year, provided that these two credits shall
not reduce the tax under this chapter to less than
zero, and provided  further in the case of a local
domestic insurance company which is a member of an
insurance holding company  system,  as  defined in
section 38a-129, these credits shall apply only if
the total admitted  assets  of  the local domestic
insurance company and  its  affiliates, as defined
in said section,  do  not exceed two hundred fifty
million dollars.
    Sec. 6. Section 12-210 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)  Each  newly  licensed  insurance  company
incorporated by or organized under the laws of any
other state or foreign government shall pay to the
commissioner   of   revenue    services,    within
forty-five days of  the  effective  date  of  such
company's initial license  to transact business in
this state, a  tax  on  the  net  direct  premiums
received  by  such   company   in  the  next  five
preceding calendar years  from policies written on
property or risks  located  or  resident  in  this
state, except ocean  marine insurance, at the rate
in effect for each such calendar year.
    (b) Each insurance  company incorporated by or
organized under the  laws  of  any  other state or
foreign  government and  doing  business  in  this
state shall, annually,  ON  AND  AFTER  JANUARY 1,
1995,  pay  to   said   commissioner   of  revenue
services, in addition  to  any other taxes imposed
on such company  or its agents, a tax of [two] ONE
AND THREE-QUARTERS per  cent  of  all  net  direct
premiums received by  such company in the calendar
year  next  preceding  from  policies  written  on
property or risks  located  or  resident  in  this
state,  excluding  premiums   for   ocean   marine
insurance,  and,  upon  ceasing  to  transact  new
business in this  state,  shall  continue to pay a
tax upon the  renewal  premiums  derived  from its
business remaining in  force  in this state at the
rate which was applicable when such company ceased
to transact new business in this state.
    Sec. 7. Subsection  (d)  of  section 12-219 of
the general statutes,  as amended by section 59 of
public act 93-74, is repealed and the following is
substituted in lieu thereof:
    (d) The tax  imposed  by this section shall be
assessed and collected  and be first applicable at
the time or  times  herein  provided  for  the tax
measured by net  income.  This  section  shall not
apply   to  insurance   companies,   real   estate
investment   trusts   or    regulated   investment
companies  OR  TO   INTERLOCAL   RISK   MANAGEMENT
AGENCIES FORMED PURSUANT TO CHAPTER 113a.
    Sec.  8.  Section   12-221a   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) If the  method of apportionment prescribed
in  sections  12-218,   12-218a  and  12-219a,  as
administered  by  the   commissioner   of  revenue
services  and  applied  to  the  business  of  any
company,  unfairly attributes  to  this  state  an
undue proportion of  its  net income or additional
tax  base,  such   company  may  petition  for  an
alternate method of  apportionment  by filing with
its return to  the commissioner a statement of its
objections and of  such  other  proposed method of
apportionment as it  believes proper and equitable
under the circumstances, accompanied by supporting
details and proofs.  The  commissioner,  within  a
reasonable  time  thereafter,   shall  notify  the
company whether the proposed method is accepted as
reasonable  and equitable  and,  if  so  accepted,
shall adjust the return and tax accordingly.
    (b) With respect to any company subject to the
tax imposed under  this chapter, the commissioner,
at any time  within three years after the due date
for the filing of such return, or in the case of a
completed return filed after such due date, within
three years after  the  date  on which such return
was received by  the commissioner, which return is
based on the  method of apportionment provided for
in said sections  12-218,  AS AMENDED BY SECTION 2
OF PUBLIC ACT  93-403,  12-218a  and  12-219a, may
change such method if, in his opinion, such method
has operated or  will operate so as to subject the
company to taxation on a lesser portion of its net
income or additional  tax  base  than is equitably
attributable to this  state  and  shall  thereupon
proceed to assess  and collect taxes in accordance
with such method  as  so  changed  by  him. ON AND
AFTER JANUARY 1, 1995, THE COMMISSIONER MAY CHANGE
SUCH METHOD ONLY  IN  ACCORDANCE  WITH REGULATIONS
ESTABLISHING STANDARDS FOR  SUCH ACTION, WHICH THE
COMMISSIONER  MAY ADOPT  IN  ACCORDANCE  WITH  THE
PROVISIONS OF CHAPTER 54.
    Sec.  9.  Section   12-226a   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    If it appears  to  the commissioner of revenue
services  that  any  agreement,  understanding  or
arrangement exists between  the  taxpayer  and any
other corporation or  any  person or firm, whereby
the activity, business,  income  or capital of the
taxpayer  within  the   state   is  improperly  or
inaccurately   reflected,  the   commissioner   of
revenue services is  authorized  and empowered, in
his  discretion and  in  such  manner  as  he  may
determine to adjust  items  of  income, deductions
and capital, and  to eliminate assets in computing
any apportionment percentage  under  this chapter,
provided  any income  directly  traceable  thereto
shall also be  excluded from entire net income, so
as equitably to  determine  the tax. Where (a) any
taxpayer conducts its  activity  or business under
any  agreement, arrangement  or  understanding  in
such manner as  either  directly  or indirectly to
benefit its members  or  stockholders,  or  any of
them,  or  any   person  or  persons  directly  or
indirectly   interested  in   such   activity   or
business, by entering into any transaction at more
or less than  a  fair  price  which,  but for such
agreement,  arrangement  or  understanding,  might
have been paid  or  received  therefor, or (b) any
taxpayer, a substantial  portion  of whose capital
stock is owned  either  directly  or indirectly by
another corporation, enters  into  any transaction
with such other  corporation  on  such terms as to
create  an  improper   loss  or  net  income,  the
commissioner of revenue  services  may  include in
the entire net  income  of  the  taxpayer the fair
profits,   which,   but    for   such   agreement,
arrangement or understanding,  the  taxpayer might
have derived from such transaction. NOT LATER THAN
JANUARY  1, 1995,  THE  COMMISSIONER  SHALL  ADOPT
REGULATIONS IN ACCORDANCE  WITH  THE PROVISIONS OF
CHAPTER 54 SETTING  FORTH STANDARDS FOR TAKING THE
ACTIONS AUTHORIZED UNDER THIS SECTION.
    Sec. 10. Subsection  (a) of section 12-242d of
the general statutes,  as amended by section 10 of
public act 93-74  and  section  2  of  public  act
93-433,  is  repealed   and   the   following   is
substituted in lieu thereof:
    (a) In addition  to  the taxes provided for by
part I of  this chapter with respect to any income
year which begins  on  or  after  January 1, 1982,
every company, subject to taxation under said part
which has not,  as  provided  in  section 12-242c,
made payments on  account  of  the  tax  for  such
income year, (1) on or before the fifteenth day of
the  third  month   of  the  income  year,  of  an
instalment at least  equaling  the  lesser  of (A)
thirty per cent  of  such tax for such income year
or (B) sixty  per  cent  of  the  assumed  tax, as
defined in subsection  (d)  of  this section, with
respect to such  income year, (2) on or before the
fifteenth day of  the  sixth  month  of the income
year, of an  instalment  at least equaling seventy
per cent of  the  tax for such income year, (3) on
or before the  fifteenth day of the ninth month of
the income year of an instalment at least equaling
eighty per cent  of  such tax for such income year
and (4) on  or  before  the  fifteenth  day of the
twelfth month of the income year, of an instalment
at least equaling  one hundred per cent of the tax
for such income  year,  shall on or before the due
date for filing  the  final return for such income
year  prescribed in  section  12-222  pay  to  the
commissioner interest on  the  part  of  any  such
instalment not so  paid,  at  the  rate of one and
one-fourth per cent  per month or fraction thereof
from  the  aforementioned  date  relating  to  the
instalment  to  the  date  of  payment.  Any  such
instalment  payment shall  be  determined  on  the
basis of an  estimated  tax which is not less than
ninety per cent  of  the  tax determined to be due
for such income year; provided ANY CREDIT THAT MAY
OTHERWISE BE TAKEN  PURSUANT TO SECTION 47 OF THIS
ACT SHALL BE DISREGARDED IN DETERMINING THE TAX TO
BE DUE FOR  ALL  FILINGS,  EXCEPT A FILING MADE IN
ACCORDANCE  WITH  SECTION   12-222   AND  PROVIDED
FURTHER any credit  that  may  otherwise  be taken
under section 1  of  [this  act] PUBLIC ACT 93-433
shall be disregarded  in determining the tax to be
due for any  income year commencing before January
1, 1997.
    Sec.  11.  Section   16-262q  of  the  general
statutes, as amended  by  section  9 of public act
93-381,  is  repealed   and   the   following   is
substituted in lieu thereof:
    Compensation for the  acquisition  of  a water
company  pursuant  to  section  16-262o  shall  be
determined  by  the   procedures  for  determining
compensation under section  25-42  or by agreement
between the parties,  provided  the  department of
public utility control  in  consultation  with the
department   of  public   health   and   addiction
services,   after   a   hearing,   approves   such
agreement. THE PROVISIONS  OF  THIS  SECTION SHALL
NOT APPLY TO  THE  SALE OF A PRIVATE WATER COMPANY
TO A MUNICIPALLY  OWNED AND OPERATED WATER COMPANY
PROVIDING SERVICE IN  SUCH  MUNICIPALITY.  IN SUCH
CASES, IF THE  PARTIES  DETERMINE COMPENSATION FOR
SUCH ACQUISITION BY AGREEMENT THE SALE MAY PROCEED
WITHOUT THE APPROVAL  OF  THE DEPARTMENT OF PUBLIC
UTILITY CONTROL.
    Sec.  12.  Section   12-264   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Every Connecticut municipality  or  department
or  agency  thereof,   or   Connecticut  district,
manufacturing,  selling  or  distributing  gas  or
electricity to be  used  for light, heat or power,
in this chapter  and  in  chapter  212a  called  a
"municipal utility", and  each  company, including
each foreign municipal electric utility as defined
in section 12-59  and given authority to engage in
business in this  state pursuant to the provisions
of  section 16-246c,  the  principal  business  of
which is manufacturing,  selling  or  distributing
gas or electricity  or steam to be used for light,
heat or power [and each company operating a system
of water works  for selling and distributing water
for  domestic or  power  purposes,  provided  such
company is a water company as that term is defined
in section 16-1,]  shall  pay a quarterly tax upon
gross earnings from such operations in this state.
Gross earnings from  such operations shall include
all income classified as operating revenues by the
department  of  public   utility  control  in  the
uniform systems of  accounts  prescribed  by  said
department  for  operations   within  the  taxable
quarter and, with  respect  to  each such company,
all income classified  in  said uniform systems of
accounts as income from merchandising, jobbing and
contract work, income  from  nonutility operations
and revenues from  lease  of physical property not
devoted to utility  operation,  and  receipts from
the  sale  of   residuals  and  other  by-products
obtained in connection with the production of gas,
electricity  or  steam.  No  deductions  shall  be
allowed  from  such   gross   earnings   for   any
commission,  rebate or  other  payment,  except  a
refund resulting from  an error or overcharge, and
those specifically mentioned  in  section  12-265.
Each such company  and municipal utility shall, on
or before the last day of January, April, July and
October of each  year,  render to the commissioner
of revenue services  under  oath of its treasurer,
or the person  performing the duties of treasurer,
or of an  authorized agent or officer, a return on
forms prescribed or  furnished by the commissioner
specifying: The name  and location of such company
or municipal utility, the amount of gross earnings
from operations for  the  quarter  ending with the
last  day  of   the  preceding  month,  the  gross
earnings from the  sale  or  rental  of appliances
using water, steam,  gas  or  electricity  and the
cost  of  such   appliances   sold,   cost  to  be
interpreted   as   net    invoice    price    plus
transportation costs of  such  appliances, and the
gross earnings from all sales for resale of water,
steam,  gas  and  electricity  to  public  service
corporations and municipal  utilities,  whether or
not such purchasers are Connecticut public service
corporations or Connecticut  municipal  utilities,
and whether or  not  they  are  subject to the tax
imposed by this  chapter,  the  number of miles of
water or steam  pipes, gas mains or electric wires
operated  by such  company  or  municipal  utility
within this state on the first day and on the last
day of the  calendar  year  immediately preceding,
and the number  of  miles of water or steam pipes,
gas mains or  electric  wires wherever operated by
such company or  municipal  utility on said dates.
Gas pipeline and  gas transmission companies which
do not manufacture  or  buy  gas in this state for
resale in this  state  shall  be  subject  to  the
provisions of chapter 208 and shall not be subject
to the provisions  of  this  chapter  and  chapter
212a. [Any company  operating  a  system  of water
works  for  selling  and  distributing  water  for
domestic or power purposes, which company is not a
water company as  defined  in  section 16-1, shall
not be subject  to  the provisions of this chapter
and chapter 212a.]
    Sec. 13. Subdivision  (2) of section 12-407 of
the general statutes, as amended by sections 1 and
20 of public  act  93-44,  sections  17  and 23 of
public act 93-74, section 25 of public act 93-332,
section 14 of  public  act  94-9 and section 22 of
public act 94-175,  is  repealed and the following
is substituted in lieu thereof:
    (2) "Sale" and "selling" mean and include: (a)
Any  transfer  of   title,   exchange  or  barter,
conditional or otherwise,  in any manner or by any
means whatsoever, of  tangible  personal  property
for a consideration;  (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a point in  this  state  for  the  purpose  of the
transfer of title, exchange or barter, conditional
or  otherwise, in  any  manner  or  by  any  means
whatsoever, of the  property  for a consideration;
(c)   the  producing,   fabricating,   processing,
printing  or  imprinting   of   tangible  personal
property for a  consideration  for  consumers  who
furnish   either  directly   or   indirectly   the
materials  used  in  the  producing,  fabricating,
processing, printing or  imprinting, including but
not  limited  to,   computer   programming,   sign
construction,   photofinishing,  duplicating   and
photocopying; (d) the  furnishing and distributing
of tangible personal  property for a consideration
by social clubs  and  fraternal  organizations  to
their  members  or  others;  (e)  the  furnishing,
preparing, or serving for a consideration of food,
meals or drinks;  (f)  a  transaction  whereby the
possession  of property  is  transferred  but  the
seller  retains the  title  as  security  for  the
payment  of  the  price;  (g)  a  transfer  for  a
consideration of the  title  of  tangible personal
property which has  been  produced,  fabricated or
printed to the  special  order of the customer, or
of any publication,  including but not limited to,
computer    programming,    sign     construction,
photofinishing, duplicating and  photocopying; (h)
a transfer for a consideration of the occupancy of
any room or  rooms in a hotel or lodging house for
a period of  thirty  consecutive  calendar days or
less; (i) the  rendering of certain services for a
consideration, exclusive of such services rendered
by an employee  for  his employer, as follows: (A)
Computer and data  processing  services, including
but not limited  to,  time, (B) credit information
and reporting services, (C) services by employment
agencies   and   agencies    providing   personnel
services, (D) private  investigation,  protection,
patrol work, watchman  and  armored  car services,
(E)   painting   and   lettering   services,   (F)
photographic   studio  services,   (G)   telephone
answering services, (H) stenographic services, (I)
services    to    industrial,     commercial    or
income-producing real property,  including but not
limited   to,   such   services   as   management,
electrical, plumbing, painting  and  carpentry and
excluding any such  services rendered [for] IN the
voluntary  [containing  or  removing]  EVALUATION,
PREVENTION, TREATMENT, CONTAINMENT  OR  REMOVAL of
hazardous waste, AS DEFINED IN SECTION 22a-115, OR
OTHER CONTAMINANTS OF AIR, WATER OR SOIL, provided
income-producing   property  shall   not   include
property used exclusively for residential purposes
in which the  owner  resides and which contains no
more  than three  dwelling  units,  or  a  housing
facility for low  and moderate income families and
persons owned by  an organization which has as one
of its purposes  the  ownership of housing for low
and   moderate   income    families,   and   which
organization  has  been   granted  exemption  from
federal income taxation,  (J)  business  analysis,
management,  management  consulting   and   public
relations  services  EXCLUDING  ANY  ENVIRONMENTAL
CONSULTING   SERVICES,  (K)   services   providing
"piped-in"  music  to   business  or  professional
establishments,   (L)   flight   instruction   and
chartering services by  a certificated air carrier
on  an  aircraft,   the  use  of  which  for  such
purposes, but for the provisions of subsection (4)
of section 12-410  and  subsection (12) of section
12-411,  would be  deemed  a  retail  sale  and  a
taxable  storage or  use,  respectively,  of  such
aircraft by such carrier, (M) motor vehicle repair
services, including any  type  of repair, painting
or replacement related  to  the body or any of the
operating parts of  a  motor  vehicle,  (N)  motor
vehicle parking, including the provision of space,
other than metered  space,  in a lot having thirty
or more spaces,  excluding (i) space in a seasonal
parking lot provided  by  a  person  who is exempt
from  taxation  under  this  chapter  pursuant  to
subsection (1), (5) or (8) of section 12-412, (ii)
space in a  parking  lot owned or leased under the
terms of a  lease  of  not  less  than  ten  years
duration  and operated  by  an  employer  for  the
exclusive use of  its  employees,  and (iii) valet
parking provided at  any  airport,  (O)  radio  or
television   repair   services,    (P)   furniture
reupholstering  and repair  services,  (Q)  repair
services to any  electrical  or electronic device,
including but not  limited to, such equipment used
for purposes of refrigeration or air-conditioning,
(R) health and  athletic  club services, exclusive
of  any  such   services   provided   without  any
additional charge which  are  included in any dues
or initiation fees  paid  to  any such club, which
dues or fees  are  subject  to  tax  under section
12-543,  (S)  tax   preparation   services*,   (T)
lobbying or consulting  services  for  purposes of
representing the interests of a client in relation
to the functions  of  any  governmental  entity or
instrumentality, (U) services  of the agent of any
person in relation  to  the  sale  of  any item of
tangible  personal  property   for   such  person,
exclusive of the  services  of a consignee selling
works of art,  as  defined  in  subsection  (b) of
section  12-376c,  or   articles  of  clothing  or
footwear intended to be worn on or about the human
body  other  than  (i)  any  special  clothing  or
footwear primarily designed  for athletic activity
or protective use  and  which is not normally worn
except when used  for  the  athletic  activity  or
protective use for  which it was designed and (ii)
jewelry,  handbags, luggage,  umbrellas,  wallets,
watches and similar  items carried on or about the
human body but  not worn on the body in the manner
characteristic of clothing  intended for exemption
under subdivision (47)  of  section  12-412, under
consignment or motor  vehicles  being  sold  at an
auction to persons who are engaged in the business
of  reselling  motor   vehicles,   (V)   locksmith
services,  (W)  advertising  or  public  relations
services, including layout, art direction, graphic
design,  mechanical  preparation   or   production
supervision, not related  to  the  development  of
media  advertising  or   cooperative  direct  mail
advertising,  (X)  landscaping   and  horticulture
services,  (Y)  window   cleaning   services,  (Z)
maintenance  services, (AA)  janitorial  services,
(BB) exterminating services,  (CC)  swimming  pool
cleaning and maintenance services, (DD) renovation
and  repair  services   as   set   forth  in  this
subparagraph, to other than industrial, commercial
or income-producing real  property:  Paving of any
sort, painting or staining, wallpapering, roofing,
siding  and  exterior   sheet   metal  work,  (EE)
miscellaneous   personal  services   included   in
industry  group 729  in  the  Standard  Industrial
Classification  Manual, United  States  Office  of
Management and Budget,  1987 edition, exclusive of
services rendered by  massage  therapists licensed
pursuant  to chapter  384a,  (FF)  any  repair  or
maintenance  service  to   any  item  of  tangible
personal  property  including   any   contract  of
warranty or service  related  to  any  such  item;
[and]  (GG)  business   analysis,   management  or
managing consulting services rendered by a general
partner to a  limited  partnership,  provided  (i)
that the general  partner  is  compensated for the
rendition of such  services  other  than through a
distributive  share of  partnership  profits,  and
(ii) the general  partner  offers such services to
others, including any  other partnership; and (HH)
notwithstanding the provisions  of section 12-412,
as amended by  section  19 of public act 94-9, and
sections  24 and  26  of  [this  act]  PUBLIC  ACT
94-175, except subsection  (86)  thereof,  patient
care services, as  defined  in  subsection (30) of
this section as  amended  by  section 20 of public
act 94-9 and  section  25 of [this act] PUBLIC ACT
94-175, by a  hospital;  (j) the leasing or rental
of  tangible  personal   property   of   any  kind
whatsoever, including but  not  limited  to, motor
vehicles, linen or towels, machinery or apparatus,
office equipment and  data  processing  equipment,
provided for purposes  of this subdivision and the
application of sales  and  use tax to contracts of
lease or rental of tangible personal property, the
leasing or rental  of  any  motion picture film by
the owner or  operator of a motion picture theater
for purposes of  display at such theater shall not
constitute  a sale  within  the  meaning  of  this
subsection;     (k)     the      rendering      of
telecommunications   service,   as    defined   in
subsection   (26)   of   this   section,   for   a
consideration  on  or   after   January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee  for  his   employer,   subject   to  the
provisions related to  telecommunications  service
in  accordance  with   section  12-407a;  (l)  the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a  consideration on  or  after  January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee for his  employer;  (m)  the rendering of
transportation service, as  defined  in subsection
(28) of this  section,  for  a consideration on or
after  October 1,  1991,  exclusive  of  any  such
service rendered by  an employee for his employer;
(n) the transfer for consideration of space or the
right to use  any space for the purpose of storage
or mooring of  any noncommercial vessel, exclusive
of dry or  wet  storage  or mooring of such vessel
during the period  commencing  on the first day of
November  in  any   year   to  and  including  the
thirtieth day of  April  of  the  next  succeeding
year;  (o)  notwithstanding   the   provisions  of
section 12-412, all  hospital  charges for patient
care services except  those  rendered  to patients
whose services are paid for by medical assistance,
Medicare  or CHAMPUS.  Wherever  in  this  chapter
reference is made to the sale of tangible personal
property or services,  it  shall  be  construed to
include sales described in this subsection, except
as may be specifically provided to the contrary.
    Sec. 14. Subdivision  (2) of section 12-407 of
the general statutes, as amended by sections 1 and
20 of public  act 93-44, sections 17, 23 and 24 of
public act 93-74, sections 25 and 26 of public act
93-332, sections 14  and  15  of  public act 94-9,
sections  22 and  23  of  public  act  94-175  and
section  13 of  this  act,  is  repealed  and  the
following is substituted in lieu thereof:
    (2) "Sale" and "selling" mean and include: (a)
Any  transfer  of   title,   exchange  or  barter,
conditional or otherwise,  in any manner or by any
means whatsoever, of  tangible  personal  property
for a consideration;  (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a point in  this  state  for  the  purpose  of the
transfer of title, exchange or barter, conditional
or  otherwise, in  any  manner  or  by  any  means
whatsoever, of the  property  for a consideration;
(c)   the  producing,   fabricating,   processing,
printing  or  imprinting   of   tangible  personal
property for a  consideration  for  consumers  who
furnish   either  directly   or   indirectly   the
materials  used  in  the  producing,  fabricating,
processing, printing or  imprinting, including but
not  limited  to,   computer   programming,   sign
construction,   photofinishing,  duplicating   and
photocopying; (d) the  furnishing and distributing
of tangible personal  property for a consideration
by social clubs  and  fraternal  organizations  to
their  members  or  others;  (e)  the  furnishing,
preparing, or serving for a consideration of food,
meals or drinks;  (f)  a  transaction  whereby the
possession  of property  is  transferred  but  the
seller  retains the  title  as  security  for  the
payment  of  the  price;  (g)  a  transfer  for  a
consideration of the  title  of  tangible personal
property which has  been  produced,  fabricated or
printed to the  special  order of the customer, or
of any publication,  including but not limited to,
computer    programming,    sign     construction,
photofinishing, duplicating and  photocopying; (h)
a transfer for a consideration of the occupancy of
any room or  rooms in a hotel or lodging house for
a period of  thirty  consecutive  calendar days or
less; (i) the  rendering of certain services for a
consideration, exclusive of such services rendered
by an employee  for  his employer, as follows: (A)
Computer and data  processing  services, including
but not limited  to,  time, (B) credit information
and reporting services, (C) services by employment
agencies   and   agencies    providing   personnel
services, (D) private  investigation,  protection,
patrol work, watchman  and  armored  car services,
(E)   painting   and   lettering   services,   (F)
photographic   studio  services,   (G)   telephone
answering services, (H) stenographic services, (I)
services    to    industrial,     commercial    or
income-producing real property,  including but not
limited   to,   such   services   as   management,
electrical, plumbing, painting  and  carpentry and
excluding  any  such   services  rendered  in  the
voluntary   evaluation,   prevention,   treatment,
containment  or removal  of  hazardous  waste,  as
defined in section  22a-115, or other contaminants
of air, water  or  soil, provided income-producing
property   shall   not   include   property   used
exclusively for residential  purposes in which the
owner resides and  which  contains  no  more  than
three dwelling units,  or  a  housing facility for
low and moderate income families and persons owned
by  an  organization  which  has  as  one  of  its
purposes the ownership  of  housing  for  low  and
moderate income families,  and  which organization
has been granted  exemption  from  federal  income
taxation,  (J)  business   analysis,   management,
management   consulting   and   public   relations
services  excluding any  environmental  consulting
services, (K) services  providing "piped-in" music
to business or  professional  establishments,  (L)
flight instruction and  chartering  services  by a
certificated air carrier  on  an aircraft, the use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12) of section  12-411,  would be deemed a retail
sale and a  taxable  storage or use, respectively,
of  such  aircraft  by  such  carrier,  (M)  motor
vehicle repair services,  including  any  type  of
repair, painting or  replacement  related  to  the
body or any  of  the  operating  parts  of a motor
vehicle, (N) motor  vehicle parking, including the
provision of space, other than metered space, in a
lot having thirty  or  more  spaces, excluding (i)
space in a  seasonal  parking  lot  provided  by a
person who is  exempt  from  taxation  under  this
chapter pursuant to  subsection (1), (5) or (8) of
section 12-412, (ii)  space in a parking lot owned
or leased under  the  terms of a lease of not less
than  ten  years   duration  and  operated  by  an
employer for the  exclusive  use of its employees,
and (iii) valet  parking  provided at any airport,
(O)  radio  or  television  repair  services,  (P)
furniture reupholstering and  repair services, (Q)
repair services to  any  electrical  or electronic
device,  including  but   not   limited  to,  such
equipment used for  purposes  of  refrigeration or
air-conditioning, (R) [health  and  athletic  club
services, exclusive of  any such services provided
without any additional  charge  which are included
in any dues  or  initiation  fees paid to any such
club, which dues  or fees are subject to tax under
section  12-543, (S)]  tax  preparation  services,
excluding such services  provided  for a business,
corporation,  partnership and  business  schedules
related to individual  returns, [(T)] (S) lobbying
or   consulting   services    for    purposes   of
representing the interests of a client in relation
to the functions  of  any  governmental  entity or
instrumentality, [(U)] (T)  services  of the agent
of any person  in relation to the sale of any item
of tangible personal  property  for  such  person,
exclusive of the  services  of a consignee selling
works of art,  as  defined  in  subsection  (b) of
section  12-376c,  or   articles  of  clothing  or
footwear intended to be worn on or about the human
body  other  than  (i)  any  special  clothing  or
footwear primarily designed  for athletic activity
or protective use  and  which is not normally worn
except when used  for  the  athletic  activity  or
protective use for  which it was designed and (ii)
jewelry,  handbags, luggage,  umbrellas,  wallets,
watches and similar  items carried on or about the
human body but  not worn on the body in the manner
characteristic of clothing  intended for exemption
under subdivision (47)  of  section  12-412, under
consignment or motor  vehicles  being  sold  at an
auction to persons who are engaged in the business
of reselling motor  vehicles,  [(V)] (U) locksmith
services,   [(W)]  (V)   advertising   or   public
relations   services,   including    layout,   art
direction, graphic design,  mechanical preparation
or  production supervision,  not  related  to  the
development of media  advertising  or  cooperative
direct mail advertising, [(X)] (W) landscaping and
horticulture services, [(Y)]  (X)  window cleaning
services, [(Z)] (Y)  maintenance  services, [(AA)]
(Z) janitorial services, [(BB)] (AA) exterminating
services, [(CC)] (BB)  swimming  pool cleaning and
maintenance services, [(DD)]  (CC)  renovation and
repair services as set forth in this subparagraph,
to   other   than    industrial,   commercial   or
income-producing  real  property:  Paving  of  any
sort, painting or staining, wallpapering, roofing,
siding and exterior  sheet metal work, [(EE)] (DD)
miscellaneous   personal  services   included   in
industry  group 729  in  the  Standard  Industrial
Classification  Manual, United  States  Office  of
Management and Budget,  1987 edition, exclusive of
services rendered by  massage  therapists licensed
pursuant to chapter  384a,  [(FF)] (EE) any repair
or maintenance service  to  any  item  of tangible
personal  property  including   any   contract  of
warranty or service  related  to  any  such  item;
[(GG)]  (FF)  business   analysis,  management  or
managing consulting services rendered by a general
partner, OR AN  AFFILIATE  THEREOF,  to  a limited
partnership,  provided  (i)   that   the   general
partner, OR AN  AFFILIATE  THEREOF, is compensated
for the rendition  of  such  services  other  than
through  a  distributive   share   of  partnership
profits OR AN  ANNUAL  PERCENTAGE  OR  PARTNERSHIP
CAPITAL  OR  ASSETS  ESTABLISHED  IN  THE  LIMITED
PARTNERSHIPS  OFFERING  STATEMENT,  and  (ii)  the
general partner, OR  AN  AFFILIATE THEREOF, offers
such  services  to  others,  including  any  other
partnership. AS USED  IN  SUBPARAGRAPH (FF)(i) "AN
AFFILIATE OR A  GENERAL  PARTNER"  MEANS AN ENTITY
WHICH IS DIRECTLY  OR  INDIRECTLY  OWNED FIFTY PER
CENT OR MORE IN COMMON WITH A GENERAL PARTNER; and
[(HH)]  (GG)  notwithstanding  the  provisions  of
section 12-412, as amended by section 19 of public
act 94-9, and  sections  24  and  26 of public act
94-175  except subsection  (86)  thereof,  patient
care services, as  defined  in  subsection (30) of
this section as  amended  by  section 20 of public
act 94-9 and  section 25 of public act 94-175 by a
hospital; (j) the  leasing  or  rental of tangible
personal   property  of   any   kind   whatsoever,
including  but not  limited  to,  motor  vehicles,
linen or towels,  machinery  or  apparatus, office
equipment and data  processing equipment, provided
for  purposes  of   this   subdivision   and   the
application of sales  and  use tax to contracts of
lease or rental of tangible personal property, the
leasing or rental  of  any  motion picture film by
the owner or  operator of a motion picture theater
for purposes of  display at such theater shall not
constitute  a sale  within  the  meaning  of  this
subsection;     (k)     the      rendering      of
telecommunications   service,   as    defined   in
subsection   (26)   of   this   section,   for   a
consideration  on  or   after   January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee  for  his   employer,   subject   to  the
provisions related to  telecommunications  service
in  accordance  with   section  12-407a;  (l)  the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a  consideration on  or  after  January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee for his  employer;  (m)  the rendering of
transportation service, as  defined  in subsection
(28) of this  section,  for  a consideration on or
after  October 1,  1991,  exclusive  of  any  such
service rendered by  an employee for his employer;
(n) the transfer for consideration of space or the
right to use  any space for the purpose of storage
or mooring of  any noncommercial vessel, exclusive
of dry or  wet  storage  or mooring of such vessel
during the period  commencing  on the first day of
November  in  any   year   to  and  including  the
thirtieth day of  April  of  the  next  succeeding
year;  (o)  notwithstanding   the   provisions  of
section 12-412, all  hospital  charges for patient
care services except  those  rendered  to patients
whose services are paid for by medical assistance,
Medicare  or CHAMPUS.  Wherever  in  this  chapter
reference is made to the sale of tangible personal
property or services,  it  shall  be  construed to
include sales described in this subsection, except
as may be specifically provided to the contrary.
    Sec. 15. Subdivision  (2) of section 12-407 of
the general statutes, as amended by sections 1 and
20 of public  act 93-44, sections 17, 23 and 24 of
public act 93-74, sections 25 and 26 of public act
93-332, sections 14  and  15  of  public act 94-9,
sections  22 and  23  of  public  act  94-175  and
sections 13 and  14  of  this act, is repealed and
the following is substituted in lieu thereof:
    (2) "Sale" and "selling" mean and include: (a)
Any  transfer  of   title,   exchange  or  barter,
conditional or otherwise,  in any manner or by any
means whatsoever, of  tangible  personal  property
for a consideration;  (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a point in  this  state  for  the  purpose  of the
transfer of title, exchange or barter, conditional
or  otherwise, in  any  manner  or  by  any  means
whatsoever, of the  property  for a consideration;
(c)   the  producing,   fabricating,   processing,
printing  or  imprinting   of   tangible  personal
property for a  consideration  for  consumers  who
furnish   either  directly   or   indirectly   the
materials  used  in  the  producing,  fabricating,
processing, printing or  imprinting, including but
not  limited  to,   computer   programming,   sign
construction,   photofinishing,  duplicating   and
photocopying; (d) the  furnishing and distributing
of tangible personal  property for a consideration
by social clubs  and  fraternal  organizations  to
their  members  or  others;  (e)  the  furnishing,
preparing, or serving for a consideration of food,
meals or drinks;  (f)  a  transaction  whereby the
possession  of property  is  transferred  but  the
seller  retains the  title  as  security  for  the
payment  of  the  price;  (g)  a  transfer  for  a
consideration of the  title  of  tangible personal
property which has  been  produced,  fabricated or
printed to the  special  order of the customer, or
of any publication,  including but not limited to,
computer    programming,    sign     construction,
photofinishing, duplicating and  photocopying; (h)
a transfer for a consideration of the occupancy of
any room or  rooms in a hotel or lodging house for
a period of  thirty  consecutive  calendar days or
less; (i) the  rendering of certain services for a
consideration, exclusive of such services rendered
by an employee  for  his employer, as follows: (A)
Computer and data  processing  services, including
but not limited  to,  time, (B) credit information
and reporting services, (C) services by employment
agencies   and   agencies    providing   personnel
services, (D) private  investigation,  protection,
patrol work, watchman  and  armored  car services,
(E)   painting   and   lettering   services,   (F)
photographic   studio  services,   (G)   telephone
answering services, (H) stenographic services, (I)
services    to    industrial,     commercial    or
income-producing real property,  including but not
limited   to,   such   services   as   management,
electrical, plumbing, painting  and  carpentry and
excluding  any  such   services  rendered  in  the
voluntary   evaluation,   prevention,   treatment,
containment  or removal  of  hazardous  waste,  as
defined in section  22a-115, or other contaminants
of air, water  or  soil, provided income-producing
property   shall   not   include   property   used
exclusively for residential  purposes in which the
owner resides and  which  contains  no  more  than
three dwelling units,  or  a  housing facility for
low and moderate income families and persons owned
by  an  organization  which  has  as  one  of  its
purposes the ownership  of  housing  for  low  and
moderate income families,  and  which organization
has been granted  exemption  from  federal  income
taxation,  (J)  business   analysis,   management,
management   consulting   and   public   relations
services  excluding any  environmental  consulting
services, (K) services  providing "piped-in" music
to business or  professional  establishments,  (L)
flight instruction and  chartering  services  by a
certificated air carrier  on  an aircraft, the use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12) of section  12-411,  would be deemed a retail
sale and a  taxable  storage or use, respectively,
of  such  aircraft  by  such  carrier,  (M)  motor
vehicle repair services,  including  any  type  of
repair, painting or  replacement  related  to  the
body or any  of  the  operating  parts  of a motor
vehicle, (N) motor  vehicle parking, including the
provision of space, other than metered space, in a
lot having thirty  or  more  spaces, excluding (i)
space in a  seasonal  parking  lot  provided  by a
person who is  exempt  from  taxation  under  this
chapter pursuant to  subsection (1), (5) or (8) of
section 12-412, (ii)  space in a parking lot owned
or leased under  the  terms of a lease of not less
than  ten  years   duration  and  operated  by  an
employer for the  exclusive  use of its employees,
and (iii) valet  parking  provided at any airport,
(O)  radio  or  television  repair  services,  (P)
furniture reupholstering and  repair services, (Q)
repair services to  any  electrical  or electronic
device,  including  but   not   limited  to,  such
equipment used for  purposes  of  refrigeration or
air-conditioning, (R) [tax  preparation  services,
excluding such services  provided  for a business,
corporation,  partnership and  business  schedules
related to individual  returns,  (S)]  lobbying or
consulting services for  purposes  of representing
the interests of  a  client  in  relation  to  the
functions   of   any    governmental   entity   or
instrumentality, [(T)] (S)  services  of the agent
of any person  in relation to the sale of any item
of tangible personal  property  for  such  person,
exclusive of the  services  of a consignee selling
works of art,  as  defined  in  subsection  (b) of
section  12-376c,  or   articles  of  clothing  or
footwear intended to be worn on or about the human
body  other  than  (i)  any  special  clothing  or
footwear primarily designed  for athletic activity
or protective use  and  which is not normally worn
except when used  for  the  athletic  activity  or
protective use for  which it was designed and (ii)
jewelry,  handbags, luggage,  umbrellas,  wallets,
watches and similar  items carried on or about the
human body but  not worn on the body in the manner
characteristic of clothing  intended for exemption
under subdivision (47)  of  section  12-412, under
consignment or [motor  vehicles  being  sold at an
auction to persons who are engaged in the business
of reselling motor  vehicles,  (U)]  EXCLUSIVE  OF
SERVICES PROVIDED BY  AN  AUCTIONEER (T) locksmith
services,   [(V)]  (U)   advertising   or   public
relations   services,   including    layout,   art
direction, graphic design,  mechanical preparation
or  production supervision,  not  related  to  the
development of media  advertising  or  cooperative
direct mail advertising, [(W)] (V) landscaping and
horticulture services, [(X)]  (W)  window cleaning
services, [(Y)] (X)  maintenance  services,  [(Z)]
(Y) janitorial services,  [(AA)] (Z) exterminating
services, [(BB)] (AA)  swimming  pool cleaning and
maintenance services, [(CC)]  (BB)  renovation and
repair services as set forth in this subparagraph,
to   other   than    industrial,   commercial   or
income-producing  real  property:  Paving  of  any
sort, painting or staining, wallpapering, roofing,
siding and exterior  sheet metal work, [(DD)] (CC)
miscellaneous   personal  services   included   in
industry  group 729  in  the  Standard  Industrial
Classification  Manual, United  States  Office  of
Management and Budget,  1987 edition, exclusive of
services rendered by  massage  therapists licensed
pursuant to chapter  384a,  [(EE)] (DD) any repair
or maintenance service  to  any  item  of tangible
personal  property  including   any   contract  of
warranty or service  related  to  any  such  item;
[(FF)]  (EE)  business   analysis,  management  or
managing consulting services rendered by a general
partner, or an  affiliate  thereof,  to  a limited
partnership,  provided  (i)   that   the   general
partner, or an  affiliate  thereof, is compensated
for the rendition  of  such  services  other  than
through  a  distributive   share   of  partnership
profits or an  annual  percentage  or  partnership
capital  or  assets  established  in  the  limited
partnerships  offering  statement,  and  (ii)  the
general partner, or  an  affiliate thereof, offers
such  services  to  others,  including  any  other
partnership.  As used  in  subparagraph  [(FF)(i)]
(EE)(i) "an affiliate  or a general partner" means
an entity which  is  directly  or indirectly owned
fifty per cent  or  more  in common with a general
partner;  and  [(GG)]   (FF)  notwithstanding  the
provisions  of  section   12-412,  as  amended  by
section 19 of public act 94-9, and sections 24 and
26 of public  act  94-175,  except subsection (86)
thereof,  patient care  services,  as  defined  in
subsection (30) of  this  section  as  amended  by
section 20 of  public  act  94-9 and section 25 of
public act 94-175,  by a hospital; (j) the leasing
or rental of  tangible  personal  property  of any
kind whatsoever, including  but  not  limited  to,
motor  vehicles, linen  or  towels,  machinery  or
apparatus, office equipment  and  data  processing
equipment,   provided   for   purposes   of   this
subdivision and the  application  of sales and use
tax to contracts  of  lease  or rental of tangible
personal property, the  leasing  or  rental of any
motion picture film  by the owner or operator of a
motion picture theater  for purposes of display at
such theater shall  not  constitute  a sale within
the meaning of  this subsection; (k) the rendering
of  telecommunications  service,   as  defined  in
subsection   (26)   of   this   section,   for   a
consideration  on  or   after   January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee  for  his   employer,   subject   to  the
provisions related to  telecommunications  service
in  accordance  with   section  12-407a;  (l)  the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a  consideration on  or  after  January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee for his  employer;  (m)  the rendering of
transportation service, as  defined  in subsection
(28) of this  section,  for  a consideration on or
after  October 1,  1991,  exclusive  of  any  such
service rendered by  an employee for his employer;
(n) the transfer for consideration of space or the
right to use  any space for the purpose of storage
or mooring of  any noncommercial vessel, exclusive
of dry or  wet  storage  or mooring of such vessel
during the period  commencing  on the first day of
November  in  any   year   to  and  including  the
thirtieth day of  April  of  the  next  succeeding
year;  (o)  notwithstanding   the   provisions  of
section 12-412, all  hospital  charges for patient
care services except  those  rendered  to patients
whose services are paid for by medical assistance,
Medicare  or CHAMPUS.  Wherever  in  this  chapter
reference is made to the sale of tangible personal
property or services,  it  shall  be  construed to
include sales described in this subsection, except
as may be specifically provided to the contrary.
    Sec.  16.  Section   12-217g  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    There  shall  be  allowed  a  credit  for  any
taxpayer  against  the   tax  imposed  under  this
chapter for any  income  year with respect to each
apprenticeship  in  the  machine  tool  and  metal
trades commenced by  such  taxpayer  in  such year
under a qualified  apprenticeship training program
as  described  in   this   section,  certified  in
accordance with regulations  adopted  by the labor
commissioner and registered  with  the Connecticut
State  Apprenticeship  Council  established  under
section 31-51b, which  apprenticeship  exceeds the
average number of  such  apprenticeships  begun by
such  taxpayer  during   the   five  income  years
immediately preceding the income year with respect
to which such  credit  is  allowed,  in  an amount
equal  to  [two  dollars  and  fifty  cents]  FOUR
DOLLARS per hour of apprenticeship training during
the first half  of  [the  period established under
such program for  completion  of  the]  A TWO-YEAR
TERM    OF   APPRENTICESHIP    AND    THE    FIRST
THREE-QUARTERS   OF   A    FOUR-YEAR    term    of
apprenticeship,  provided  the  amount  of  credit
allowed for any  income  year with respect to each
such apprenticeship may  not  exceed  [three] FOUR
thousand EIGHT HUNDRED  dollars  or fifty per cent
of actual wages  paid in such income year for such
apprenticeship, whichever is less. For purposes of
this section a  qualified  apprenticeship training
program shall require  at  least four thousand but
not   more   than    eight   thousand   hours   of
apprenticeship training for  certification of such
apprenticeship    by   the    Connecticut    State
Apprenticeship  Council.  The   amount  of  credit
allowed any taxpayer  under  this  section for any
income year may  not  exceed the amount of tax due
from such taxpayer under this chapter with respect
to such income year.
    Sec. 17. Subsection  (1)  of section 12-408 of
the general statutes, as amended by sections 3 and
22 of public 93-44, section 22 of public act 93-74
and section 16 of public act 94-9, is repealed and
the following is substituted in lieu thereof:
    (1) For the  privilege  of making any sales as
defined in subsection  (2)  of  section 12-407, AS
AMENDED,  at  retail,   in   this   state   for  a
consideration, a tax  is  hereby  imposed  on  all
retailers at the rate of six per cent of the gross
receipts of any  retailer  from  the  sale  of all
tangible personal property  sold at retail or from
the rendering of  any services constituting a sale
in  accordance  with  subsection  (2)  of  section
12-407, AS AMENDED,  except,  in lieu of said rate
of six per  cent,  (A)  at  a  rate  of  five  and
one-half per cent  of  the  gross  receipts of any
retailer  from  the   sale   of   any   repair  or
replacement   parts   exclusively   for   use   in
machinery,  as  defined   in  subsection  (34)  of
section 12-412, AS  AMENDED  BY SECTION 75 OF THIS
ACT,  used  directly   in   a   manufacturing   or
agricultural production process,  (B) at a rate of
twelve per cent  with  respect to each transfer of
occupancy, from the  total amount of rent received
for such occupancy of any room or rooms in a hotel
or  lodging  house   for   the  first  period  not
exceeding thirty consecutive calendar days, (C) at
a rate of  four and one-half per cent of the gross
receipts of any  retailer  from  the  sale  of any
motor vehicle to any person who is a member of the
armed  forces of  the  United  States  and  is  on
full-time active duty  in  Connecticut  but  whose
permanent residence is in another state, [and] (D)
with  respect to  the  sales  of  vessels  to  any
resident of another  state, at a rate which is the
lesser of: (i)  Six per cent of the gross receipts
of  any retailer  from  such  sales  or  (ii)  the
percentage of such  gross receipts that is payable
as a sales tax by retailers engaged in business in
the purchaser's state  of residence, provided such
retailer requires and  maintains  an  affidavit or
other evidence, satisfactory  to the commissioner,
concerning the purchaser's  state of residence AND
(E) WITH RESPECT TO THE SALES OF COMPUTER AND DATA
PROCESSING SERVICES OCCURRING  ON OR AFTER JULY 1,
1996, AND PRIOR  TO  JULY  1, 1997, AT THE RATE OF
FIVE PER CENT, ON OR AFTER JULY 1, 1997, AND PRIOR
TO JULY 1,  1998, AT THE RATE OF FOUR PER CENT, ON
OR AFTER JULY  1, 1998, AND PRIOR TO JULY 1, 1999,
AT THE RATE OF THREE PER CENT, ON OR AFTER JULY 1,
1999, AND PRIOR  TO  JULY  1, 2000, AT THE RATE OF
TWO PER CENT, ON AND AFTER JULY 1, 2000, AND PRIOR
TO JULY 1,  2001,  AT THE RATE OF ONE PER CENT AND
ON AND AFTER  JULY 1, 2001, SUCH SERVICES SHALL BE
EXEMPT FROM SUCH  TAX.  The rate of tax imposed by
this chapter shall  be  applicable  to  all retail
sales upon the effective date of such rate, except
that a new  rate  which  represents an increase in
the rate applicable to the sale shall not apply to
any  sales transaction  wherein  a  binding  sales
contract  without an  escalator  clause  has  been
entered into prior  to  the  effective date of the
new rate and  delivery  is made within ninety days
after the effective  date of the new rate. For the
purposes of payment  of the tax imposed under this
section, any retailer  of  services  taxable under
subdivision  (i)  of  subsection  (2)  of  section
12-407 who computes  taxable  income, for purposes
of taxation under  the  Internal  Revenue  Code of
1986,  or any  subsequent  corresponding  internal
revenue code of the United States, as from time to
time  amended,  on   an   accounting  basis  which
recognizes   only   cash    or    other   valuable
consideration actually received  as income and who
is liable for  such  tax only due to the rendering
of  such services  [,  and  any  person  rendering
services under subdivision  (o)  of subsection (2)
of section 12-407  and  section 19a-168b] may make
payments related to such tax for the period during
which such income  is received, without penalty or
interest, without regard  to  when such service is
rendered.
    Sec. 18. Subsection  (6)  of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (6)   (A)  Sales   of   magazines,   INCLUDING
PUBLICATIONS  WHICH  ONLY   CONTAIN   PUZZLES,  by
subscription;   (B)   sales   of   newspapers   by
subscription.
    Sec.  19.  Section   12-412   of  the  general
statutes, as amended  by  section  4 of public act
94-82 and section  26  of  public  act  94-175, is
amended by adding  subsections  (88)  and  (89) as
follows:
    (NEW) (88) Sales  of  and  the storage, use or
other consumption of  any personal property or any
services to a water company, as defined in section
16-1, for use  in maintaining, operating, managing
or controlling any  pond, lake, reservoir, stream,
well or distributing  plant or system employed for
the purpose of  supplying  water  to fifty or more
consumers.
    (NEW) (89) Sales  of  and  the storage, use or
other  consumption  of  safety  apparel.  For  the
purposes of this subsection "safety apparel" means
any item of  clothing or protective equipment worn
by an employee for protection during the course of
the employee's employment.
    Sec. 20. Subsection  (4)  of section 12-430 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (4) Where a  trade-in  of  a  motor vehicle is
received by a  motor vehicle dealer, upon the sale
of another motor vehicle to a consumer, OR WHERE A
TRADE-IN OF AN AIRCRAFT, AS DEFINED IN SUBDIVISION
(5) OF SECTION  15-34,  IS RECEIVED BY AN AIRCRAFT
DEALER, UPON THE  SALE  OF  ANOTHER  AIRCRAFT TO A
CONSUMER, or where  a  trade-in of a farm tractor,
snowmobile or any  vessel  as  defined  in section
15-127 is received by a retailer of farm tractors,
snowmobiles  or such  vessels  upon  the  sale  of
another farm tractor, snowmobile or such vessel to
a consumer, the  tax  is  only  on  the difference
between  the sale  price  of  the  motor  vehicle,
AIRCRAFT, snowmobile, farm  tractor or such vessel
purchased and the  amount  allowed  on  the  motor
vehicle,  AIRCRAFT, snowmobile,  farm  tractor  or
such vessel traded  in  on such purchase. When any
such  motor vehicle,  AIRCRAFT,  snowmobile,  farm
tractor or such  vessel  traded in is subsequently
sold to a  consumer  or user, the tax provided for
in this chapter applies.
    Sec.  21.  Section   12-458   of  the  general
statutes,  as amended  by  public  act  93-93,  is
amended by adding subsection (c) as follows:
    (NEW) (c) Any  person  who  owns or operates a
vehicle which runs only upon rails or tracks which
is   properly   registered    with   the   federal
government, in accordance  with  the provisions of
Section 4222 of the Internal Revenue Code of 1986,
or any subsequent  corresponding  internal revenue
code of the  United  States,  as from time to time
amended,  shall  be   exempt   from  paying  to  a
distributor the motor  fuels  tax imposed pursuant
to section 12-458 for use in such vehicle.
    Sec.  22.  Section   12-541   of  the  general
statutes, as amended  by  section 36 of public act
93-74 and sections 10 and 11 of public act 93-332,
is repealed and  the  following  is substituted in
lieu thereof:
    There is hereby  imposed a tax of ten per cent
of the admission charge to any place of amusement,
entertainment or recreation,  except  that  no tax
shall be imposed  with  respect  to  any admission
charge (1) when  the admission charge is less than
one dollar or,  in  the case of any motion picture
show, when the  admission  charge is less than two
dollars, (2) when  a  daily  admission  charge  is
imposed which entitles  the  patron to participate
in an athletic  or  sporting  activity, (3) to any
event,  all  of  the  proceeds  from  which  inure
exclusively to an  entity  which  is  exempt  from
federal  income tax  under  the  Internal  Revenue
Code, provided such entity actively engages in and
assumes the financial  risk  associated  with  the
presentation of such event, (4) to any event which
in the opinion  of  the commissioner, is conducted
primarily to raise  funds  for  an entity which is
exempt from federal  income tax under the Internal
Revenue  Code,  provided   the   commissioner   is
satisfied that the net profit which inures to such
entity from such  event  will exceed the amount of
the   admissions   tax   which,   but   for   this
subdivision,  would be  imposed  upon  the  person
making such charge to such event, (5) to any event
at  the  Hartford  Civic  Center,  the  New  Haven
Coliseum, New Britain Beehive Stadium, New Britain
Veterans  Memorial Stadium,  facilities  owned  or
managed by the Tennis Foundation of Connecticut or
any  successor  organization  or  the  William  A.
O'Neill Convocation Center, (6) paid by centers of
service  for  elderly  persons,  as  described  in
subdivision (d) of  section  17a-310,  [or] (7) to
any  production  featuring  live  performances  by
actors or musicians  presented  at  any  nonprofit
theater or playhouse  in  the state, provided such
theater or playhouse possesses evidence confirming
exemption from federal  tax  under  Section 501 of
the Internal Revenue  Code, OR (8) TO ANY CARNIVAL
OR AMUSEMENT RIDE.  The  tax shall be imposed upon
the person making  such  charge  and reimbursement
for the tax shall be collected by such person from
the purchaser. Such  reimbursement,  termed "tax",
shall be paid  by  the  purchaser  to  the  person
making the admission  charge. Such tax, when added
to the admission  charge, shall be a debt from the
purchaser  to  the  person  making  the  admission
charge and shall be recoverable at law.
    Sec.  23.  Section   12-587   of  the  general
statutes, as amended  by  section 37 of public act
93-74 and section  2  of  public  act  94-101,  is
amended by adding subsection (e) as follows:
    (NEW) (e) For  the  purposes  of this chapter,
the gross earnings  of  any producer or refiner of
petroleum  products operating  a  service  station
along the highways  or  interstate highways within
the  state  pursuant   to   a  contract  with  the
department  of  transportation   or   operating  a
service station which  is  used  as  a training or
test  marketing center  under  the  provisions  of
subsection  (b)  of   section  14-344d,  shall  be
calculated by multiplying  the volume of petroleum
products delivered by  any  producer or refiner to
any such station  by  such producer's or refiner's
dealer tank wagon  price or dealer wholesale price
in the area of the service station.
    Sec.  24.  Section   12-568   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) The executive  director,  with  the advice
and consent of  the  board,  shall  determine  the
number of times  a  lottery  shall be held in each
year, the form  and  price of the tickets therefor
and shall award  prizes  to  winning participants,
determined in a manner designated by the executive
director. The proceeds  of  the  sale  of  tickets
shall be deposited  in the lottery fund from which
prizes shall be  paid, upon vouchers signed by the
executive director, or  by  either  of two persons
designated and authorized  by him, in such numbers
and amounts as the executive director determines.
    (b) The executive  director,  with  the advice
and consent of  the  board,  shall conduct special
instant lottery games. The proceeds of the sale of
instant lottery game tickets shall be deposited in
the lottery fund  from  which prizes shall be paid
in the manner  specified in subsection (a) of this
section.
    (c) The executive  director,  with  the advice
and consent of  the  board,  shall  conduct  daily
lottery games. The  proceeds  of the sale of daily
lottery game tickets  shall  be  deposited  in the
lottery fund from  which  prizes  shall be paid in
the manner specified  in  subsection  (a)  of this
section.
    (d) THE EXECUTIVE  DIRECTOR,  WITH  THE ADVICE
AND  CONSENT  OF  THE  BOARD,  SHALL  ESTABLISH  A
TWO-YEAR PILOT PROGRAM  FOR  THE  SALE  OF PRODUCT
ADVERTISING ON LOTTERY  TICKETS,  PLAY  SLIPS  AND
OTHER LOTTERY MEDIA.  THE EXECUTIVE DIRECTOR, WITH
THE ADVICE AND  CONSENT  OF  THE  BOARD, MAY ENTER
INTO   AGREEMENTS  FOR   THE   SALE   OF   PRODUCT
ADVERTISING ON LOTTERY  TICKETS,  PLAY  SLIPS  AND
OTHER LOTTERY MEDIA.  UPON THE TERMINATION OF SAID
PILOT  PROGRAM,  THE  DIVISION  SHALL  REVIEW  THE
PROGRESS OF THE  PILOT  PROGRAM  AND MAY, WITH THE
ADVICE AND CONSENT  OF THE BOARD, SOLICIT BIDS FOR
THE  CONTINUATION  OF   ADVERTISING   ON   LOTTERY
TICKETS, PLAY SLIPS AND OTHER LOTTERY MEDIA.
    [(d)] (e) (1)  From time to time the executive
director  shall  estimate,   and  certify  to  the
comptroller, that portion  of  the  balance in the
lottery fund which  exceeds  the  current needs of
the division for the payment of prizes and for the
payment of compensation under subsections (a), (c)
and (d) of  section  12-569.  Upon  receipt of any
such certification, the  amount so certified shall
be  transferred  from  the  lottery  fund  to  the
general fund.
    (2)  On  September   1,  1989,  the  executive
director  shall  estimate,   and  certify  to  the
comptroller,  the amount  of  moneys  received  or
collected by the  state from lottery games and not
claimed  as  prizes.   The  amount  of  moneys  so
certified, but not  exceeding one million dollars,
shall,  upon receipt  of  such  certification,  be
transferred by the comptroller to the general fund
and, for the  fiscal  year  ending  June 30, 1990,
shall be credited  to  the  appropriation  for the
department of education.  Seventy per cent of such
appropriation shall be  for  the  purposes  of the
interdistrict cooperative grant program and thirty
per cent of  such  appropriation  shall be for the
purposes of section 10-155i.
    Sec.  25.  Section   12-703   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) Any person,  other than a trust or estate,
subject to the  tax  under  this  chapter  for any
taxable year who  files  under  the federal income
tax  for  such   taxable   year  as  an  unmarried
individual  or  as  a  married  individual  filing
separately  shall  be  entitled  to  a  credit  in
determining  the  amount   of  tax  liability  for
purposes of this  chapter  in  accordance with the
following schedule:

            Connecticut
    Adjusted Gross Income         Amount of Credit
      [Over $12,000 but
        not over $15,000                 75%
      Over $15,000 but
        not over $20,000                 35%
      Over $20,000 but
        not over $25,000                 15%
      Over $25,000 but
        not over $48,000                 10%]
      OVER $12,000 BUT
        NOT OVER $15,000                 75%
      OVER $15,000 BUT
        NOT OVER $15,500                 70%
      OVER 15,500 BUT
        NOT OVER $16,000                 65%
      OVER $16,000 BUT
        NOT OVER $16,500                 60%
      OVER $16,500 BUT
        NOT OVER $17,000                 55%
      OVER $17,000 BUT
        NOT OVER $17,500                 50%
      OVER $17,500 BUT
        NOT OVER $18,000                 45%
      OVER $18,000 BUT
        NOT OVER $18,500                 40%
      OVER $18,500 BUT
        NOT OVER $20,000                 35%
      OVER $20,000 BUT
        NOT OVER $20,500                 30%
      OVER $20,500 BUT
        NOT OVER $21,000                 25%
      OVER $21,000 BUT
        NOT OVER $21,500                 20%
      OVER $21,500 BUT
        NOT OVER $25,000                 15%
      OVER $25,000 BUT
        NOT OVER $25,500                 14%
      OVER $25,500 BUT
        NOT OVER $26,000                 13%
      OVER $26,000 BUT
        NOT OVER $26,500                 12%
      OVER $26,500 BUT
        NOT OVER $27,000                 11%
      OVER $27,000 BUT
        NOT OVER $48,000                 10%
      OVER $48,000 BUT
        NOT OVER $48,500                 9%
      OVER $48,500 BUT
        NOT OVER $49,000                 8%
      OVER $49,000 BUT
        NOT OVER $49,500                 7%
      OVER $49,500 BUT
        NOT OVER $50,000                 6%
      OVER $50,000 BUT
        NOT OVER $50,500                 5%
      OVER $50,500 BUT
        NOT OVER $51,000                 4%
      OVER $51,000 BUT
        NOT OVER $51,500                 3%
      OVER $51,500 BUT
        NOT OVER $52,000                 2%
      OVER $52,000 BUT
        NOT OVER $52,500                 1%

    (b)  Any person  subject  to  tax  under  this
chapter  who files  a  return  under  the  federal
income tax for  such  taxable  year  as  a head of
household,  as defined  in  Section  2(b)  of  the
Internal Revenue Code,  shall  be  entitled  to  a
credit in determining  the amount of tax liability
for purposes of  this  chapter  in accordance with
the following schedule:

            Connecticut
    Adjusted Gross Income         Amount of Credit
      [Over $19,000 but
        not over $24,000                 75%
      Over $24,000 but
        not over $34,000                 35%
      Over $34,000 but
        not over $44,000                 15%
      Over $44,000 but
        not over $74,000                 10%]
      OVER $19,000 BUT
        NOT OVER $24,000                 75%
      OVER $24,000 BUT
        NOT OVER $24,500                 70%
      OVER $24,500 BUT
        NOT OVER $25,000                 65%
      OVER $25,000 BUT
        NOT OVER $25,500                 60%
      OVER $25,500 BUT
        NOT OVER $26,000                 55%
      OVER $26,000 BUT
        NOT OVER $26,500                 50%
      OVER $26,500 BUT
        NOT OVER $27,000                 45%
      OVER $27,000 BUT
        NOT OVER $27,500                 40%
      OVER $27,500 BUT
        NOT OVER $34,000                 35%
      OVER $34,000 BUT
        NOT OVER $34,500                 30%
      OVER $34,500 BUT
        NOT OVER $35,000                 25%
      OVER $35,000 BUT
        NOT OVER $35,500                 20%
      OVER $35,500 BUT
        NOT OVER $44,000                 15%
      OVER $44,000 BUT
        NOT OVER $44,500                 14%
      OVER $44,500 BUT
        NOT OVER $45,000                 13%
      OVER $45,000 BUT
        NOT OVER $45,500                 12%
      OVER $45,500 BUT
        NOT OVER $46,000                 11%
      OVER $46,000 BUT
        NOT OVER $74,000                 10%
      OVER $74,000 BUT
        NOT OVER $74,500                 9%
      OVER $74,500 BUT
        NOT OVER $75,000                 8%
      OVER $75,000 BUT
        NOT OVER $75,500                 7%
      OVER $75,500 BUT
        NOT OVER $76,000                 6%
      OVER $76,000 BUT
        NOT OVER $76,500                 5%
      OVER $76,500 BUT
        NOT OVER $77,000                 4%
      OVER $77,000 BUT
        NOT OVER $77,500                 3%
      OVER $77,500 BUT
        NOT OVER $78,000                 2%
      OVER $78,000 BUT
        NOT OVER $78,500                 1%

    (c) Any husband  and wife subject to tax under
this chapter for  any  taxable  year  who  file  a
return  under the  federal  income  tax  for  such
taxable year as  married  individuals filing joint
returns or any  person who files a return for such
taxable year as  a surviving spouse, as defined in
Section 2(a) of  the  Internal Revenue Code, shall
be entitled to  a credit in determining the amount
of tax liability  for  purposes of this chapter in
accordance with the following schedule:

            Connecticut
    Adjusted Gross Income         Amount of Credit
      [Over $24,000 but
        not over $30,000                 75%
      Over $30,000 but
        not over $40,000                 35%
      Over $40,000 but
        not over $50,000                 15%
      Over $50,000 but
        not over $96,000                 10%]
      OVER $24,000 BUT
        NOT OVER $30,000                 75%
      OVER $30,000 BUT
        NOT OVER $30,500                 70%
      OVER $30,500 BUT
        NOT OVER $31,000                 65%
      OVER $31,000 BUT
        NOT OVER $31,500                 60%
      OVER $31,500 BUT
        NOT OVER $32,000                 55%
      OVER $32,000 BUT
        NOT OVER $32,500                 50%
      OVER $32,500 BUT
        NOT OVER $33,000                 45%
      OVER $33,000 BUT
        NOT OVER $33,500                 40%
      OVER $33,500 BUT
        NOT OVER $40,000                 35%
      OVER $40,000 BUT
        NOT OVER $40,500                 30%
      OVER $40,500 BUT
        NOT OVER $41,000                 25%
      OVER $41,000 BUT
        NOT OVER $41,500                 20%
      OVER $41,500 BUT
        NOT OVER $50,000                 15%
      OVER $50,000 BUT
        NOT OVER $50,500                 14%
      OVER $50,500 BUT
        NOT OVER $51,000                 13%
      OVER $51,000 BUT
        NOT OVER $51,500                 12%
      OVER $51,500 BUT
        NOT OVER $52,000                 11%
      OVER $52,000 BUT
        NOT OVER $96,000                 10%
      OVER $96,000 BUT
        NOT OVER $96,500                 9%
      OVER $96,500 BUT
        NOT OVER $97,000                 8%
      OVER $97,000 BUT
        NOT OVER $97,500                 7%
      OVER $97,500 BUT
        NOT OVER $98,000                 6%
      OVER $98,000 BUT
        NOT OVER $98,500                 5%
      OVER $98,500 BUT
        NOT OVER $99,000                 4%
      OVER $99,000 BUT
        NOT OVER $99,500                 3%
      OVER $99,500 BUT
        NOT OVER $100,000                2%
      OVER $100,000 BUT
        NOT OVER $100,500                1%

    Sec. 26. Subdivision (20) of subsection (a) of
section 12-701 of the general statutes, as amended
by section 39 of public act 93-74, is repealed and
the following is substituted in lieu thereof:
    (20) "Connecticut adjusted gross income" means
adjusted   gross  income,   with   the   following
modifications: (A) There  shall  be  added thereto
(i) to the extent not properly includable in gross
income  for  federal   income  tax  purposes,  any
interest income from  obligations  issued by or on
behalf  of  any   state,   political   subdivision
thereof, or public instrumentality, state or local
authority,  district  or  similar  public  entity,
exclusive of such  income  from obligations issued
by or on  behalf  of the state of Connecticut, any
political   subdivision   thereof,    or    public
instrumentality,   state   or   local   authority,
district or similar  public  entity  created under
the laws of the state of Connecticut and exclusive
of any such  income with respect to which taxation
by any state  is  prohibited  by federal law, (ii)
any  exempt-interest  dividends,   as  defined  in
Section 852(b)(5) of  the  Internal  Revenue Code,
exclusive   of  such   exempt-interest   dividends
derived from obligations issued by or on behalf of
the   state   of    Connecticut,   any   political
subdivision  thereof, or  public  instrumentality,
state  or local  authority,  district  or  similar
public entity created  under the laws of the state
of    Connecticut   and    exclusive    of    such
exempt-interest     dividends     derived     from
obligations,  the income  with  respect  to  which
taxation by any  state  is  prohibited  by federal
law, (iii) any  interest  or  dividend  income  on
obligations  or  securities   of   any  authority,
commission or instrumentality of the United States
which federal law  exempts from federal income tax
but does not  exempt from state income taxes, (iv)
to the extent included in gross income for federal
income tax purposes  for  the  taxable  year,  the
total taxable amount  of  a  lump sum distribution
for the taxable  year  deductible  from such gross
income  in  calculating   federal  adjusted  gross
income, (v) to  the  extent properly includable in
determining the net  gain or loss from the sale or
other disposition of  capital  assets  for federal
income tax purposes,  any  loss  from  the sale or
exchange of obligations  issued by or on behalf of
the   state   of    Connecticut,   any   political
subdivision  thereof, or  public  instrumentality,
state  or local  authority,  district  or  similar
public entity created  under the laws of the state
of Connecticut, in  the  income year such loss was
recognized,  (vi)  to  the  extent  deductible  in
determining  federal adjusted  gross  income,  any
income taxes imposed  by  this state, (vii) to the
extent deductible in  determining federal adjusted
gross  income,  any   interest   on   indebtedness
incurred  or  continued   to   purchase  or  carry
obligations or securities the interest on which is
exempt from tax  under  this  chapter  and  (viii)
expenses paid or  incurred during the taxable year
for the production  or  collection of income which
is exempt from  taxation under this chapter or the
management,   conservation   or   maintenance   of
property held for  the  production of such income,
and the amortizable  bond  premium for the taxable
year on any  bond  the interest on which is exempt
from tax under  this  chapter  to  the extent that
such  expenses  and  premiums  are  deductible  in
determining  federal adjusted  gross  income.  (B)
There shall be  subtracted  therefrom  (i)  to the
extent properly includable  in  gross  income  for
federal  income  tax  purposes,  any  income  with
respect  to  which   taxation   by  any  state  is
prohibited by federal  law,  (ii)  to  the  extent
allowable under section  12-718,  exempt dividends
paid by a regulated investment company, (iii) [any
amount received or  accrued pursuant to Section 82
of the Internal  Revenue  Code  to the extent such
amount was properly  deducted  as a moving expense
pursuant to Section  217  of  the Internal Revenue
Code, (iv)] the amount of any refund or credit for
overpayment of income taxes imposed by this state,
or any other  state  of  the  United  States  or a
political subdivision thereof,  or the District of
Columbia or any  province of Canada, to the extent
properly includable in  gross  income  for federal
income tax purposes,  [(v)]  (iv)  to  the  extent
properly includable in  gross  income  for federal
income  tax  purposes,   any   tier   1   railroad
retirement benefits, [(vi)]  (v)  with  respect to
any natural person  who  is  a shareholder of an S
corporation which is carrying on, or which has the
right to carry on, business in this state, as said
term is used  in  section  12-214,  as  amended by
section 5 of  [this  act]  PUBLIC  ACT  93-74, the
amount of such  shareholder's  pro  rata  share of
such corporation's nonseparately  computed  items,
as defined in Section 1366 of the Internal Revenue
Code,    multiplied    by    such    corporation's
apportionment fraction, if  any,  as determined in
accordance with section  12-218,  [(vii)]  (vi) to
the extent properly includable in gross income for
federal income tax  purposes,  any interest income
from obligations issued  by  or  on  behalf of the
state of Connecticut,  any  political  subdivision
thereof, or public instrumentality, state or local
authority,  district  or   similar  public  entity
created  under  the   laws   of   the   state   of
Connecticut, [(viii)] (vii) to the extent properly
includable in determining  the  net  gain  or loss
from the sale  or  other  disposition  of  capital
assets for federal  income  tax purposes, any gain
from the sale or exchange of obligations issued by
or on behalf  of  the  state  of  Connecticut, any
political   subdivision   thereof,    or    public
instrumentality,   state   or   local   authority,
district or similar  public  entity  created under
the laws of  the  state  of  Connecticut,  in  the
income  year  such  gain  was  recognized,  [(ix)]
(viii) any interest  on  indebtedness  incurred or
continued  to purchase  or  carry  obligations  or
securities the interest on which is subject to tax
under this chapter  but exempt from federal income
tax,  to  the   extent   that   such  interest  on
indebtedness  is  not  deductible  in  determining
federal adjusted gross  income and is attributable
to  a  trade   or  business  carried  on  by  such
individual, [and (x)]  (ix) ordinary and necessary
expenses paid or  incurred during the taxable year
for the production  or  collection of income which
is subject to  taxation  under  this  chapter  but
exempt from federal income tax, or the management,
conservation or maintenance  of  property held for
the production of such income, and the amortizable
bond premium for  the taxable year on any bond the
interest on which  is  subject  to  tax under this
chapter but exempt from federal income tax, to the
extent that such  expenses  and  premiums  are not
deductible in determining  federal  adjusted gross
income and are attributable to a trade or business
carried on by  such  individual  AND (x) AN AMOUNT
EQUAL TO THE  DIFFERENCE  BETWEEN  THE  AMOUNT  OF
SOCIAL SECURITY BENEFITS  INCLUDABLE  FOR  FEDERAL
INCOME  TAX  PURPOSES   UNDER  THE  PROVISIONS  OF
SECTION 13215 OF THE OMNIBUS BUDGET RECONCILIATION
ACT OF 1993 AND THE AMOUNT OF SUCH SOCIAL SECURITY
BENEFITS  INCLUDABLE  FOR   FEDERAL   INCOME   TAX
PURPOSES  UNDER THE  PROVISIONS  OF  THE  INTERNAL
REVENUE   CODE  OF   1986,   OR   ANY   SUBSEQUENT
CORRESPONDING INTERNAL REVENUE  CODE OF THE UNITED
STATES, AS FROM  TIME  TO  TIME  AMENDED, PRIOR TO
AUGUST 10, 1993.  With  respect to a person who is
the beneficiary of  a trust or estate, there shall
be added or  subtracted,  as the case may be, from
adjusted  gross income  such  person's  share,  as
determined   under   section    12-714,   in   the
Connecticut fiduciary adjustment.
    Sec. 27. Subsection  (a) of section 13b-39a of
the general statutes,  as  amended by section 9 of
public act 93-433,  is  repealed and the following
is substituted in lieu thereof:
    (a) The commissioner  of  transportation shall
establish  a  program   of  registration  for  all
aircraft in the  state,  in  accordance with which
the  owner  of   any   aircraft,   as  defined  in
subdivision (5) of  section  15-34, which is based
or  primarily  used   at   any  airport  facility,
heliport,  AIR  NAVIGATION   FACILITY,  RESTRICTED
LANDING AREA or  seaplane  base  in A MUNICIPALITY
WITHIN this state shall, not later than October 1,
1993,  and annually  thereafter,  be  required  to
register  with  the  municipality  in  which  such
aircraft is based  or primarily used, by filing an
application form, or  renewal  thereof, and paying
the appropriate registration  fee, as provided for
in section 12-71, as amended by section 8 of [this
act] PUBLIC ACT  93-433,  this section and section
10 of [this  act]  PUBLIC ACT 93-433. THE OWNER OF
ANY AIRCRAFT WHICH  IS  BASED OR PRIMARILY USED AT
ANY SUCH AIR  NAVIGATION  FACILITY  OR  RESTRICTED
LANDING AREA IN  THIS  STATE  SHALL  REGISTER SUCH
AIRCRAFT NOT LATER THAN JULY 1, 1994, AND ANNUALLY
THEREAFTER NOT LATER  THAN  THE  FIRST OF OCTOBER.
Any  aircraft shall  be  deemed  to  be  based  or
primarily used in [this state] A MUNICIPALITY when
in  the  normal   course  of  its  use,  it  [most
frequently] leaves from  and returns to or remains
at one or  more  points  within  [this  state] THE
MUNICIPALITY MORE OFTEN  OR  LONGER  THAN  AT  ANY
OTHER SINGLE LOCATION OUTSIDE OF THE MUNICIPALITY.
    Sec. 28. Subsection  (e) of section 22a-132 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (e)  The  imposition  and  collection  of  the
assessment  shall terminate  on  June  30,  [1994]
1995.
    Sec. 29. Subsection (a) of section 22a-234a of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) Beginning on  and  after July 1, 1992, and
ending on June  30,  1994,  there shall be paid to
the commissioner of  revenue services by the owner
of  any  resources   recovery  facility  or  mixed
municipal solid waste landfill forty cents per ton
of  solid  waste  processed  at  the  facility  or
disposed of at the landfill. BEGINNING ON JUNE 30,
1994, TO JULY  1, 1995, THERE SHALL BE PAID TO THE
COMMISSIONER BY SUCH  OWNER  ZERO CENTS PER TON OF
SUCH SOLID WASTE.
    Sec.  30.  Section   12-225   of  the  general
statutes, as amended  by  section 60 of public act
93-74,   is  repealed   and   the   following   is
substituted in lieu thereof:
    Any  company which,  either  intentionally  or
through error, fails  to  include  in  its  return
items  of income  or  invested  capital  or  which
claims unlawful deductions  therefrom shall make a
supplemental return disclosing  such  facts within
three years from  the  due date of the return and,
within thirty days  thereafter,  shall  pay to the
commissioner any tax  due  thereon,  with interest
upon the amount of such additional tax at the rate
of one [and  one-fourth]  per  cent  per  month or
fraction thereof from  the  date when the original
tax became due  and  payable.  Any  company  which
fails to include in its return items of deductions
or includes items  of  nontaxable  income or makes
any other error  in  such return may, within three
years from the  due  date of the return, file with
the commissioner an  amended return, together with
a claim for  refund  of taxes overpaid as shown by
such  amended  return.   The  commissioner  shall,
within one hundred  eighty  days of the receipt of
such  claim, either  refund  to  the  company  the
amount of tax  overpaid or notify the company that
their claim has been denied. If a claim is denied,
appeal may be  made  in  accordance  with  section
12-237.
    Sec.  31.  Section   12-226   of  the  general
statutes, as amended  by  section 61 of public act
93-74,   is  repealed   and   the   following   is
substituted in lieu thereof:
    Any company whose  income, profits or earnings
are changed, adjusted  or corrected for any income
year  by  any   official   of  the  United  States
government, or any  agency thereof, in any respect
affecting the tax  imposed by this part, shall, on
or before the due date or extended due date of its
next return under  this  chapter, or within ninety
days after having received written notification of
such change, adjustment  or  correction, whichever
is later, submit  to the commissioner an affidavit
disclosing  such  changes   or   adjustments   and
thereafter   shall   promptly   furnish   to   the
commissioner any information,  schedules, records,
documents  or  papers  relating  to  such  change,
adjustment  or  correction  as  he  requires.  Any
company whose return  to  the director of internal
revenue has been amended shall, within ninety days
after having filed  the  amended  return,  make an
amended return to  the  commissioner. The time for
filing such affidavit  or  amended  return  may be
extended by the commissioner upon due cause shown.
If, upon examination,  the commissioner finds that
the taxpayer is  liable  for  the  payment  of  an
additional tax, he shall, within a reasonable time
from  the  receipt   of  such  amended  return  or
affidavit, notify the  taxpayer  of  the amount of
such  additional  tax,   together   with  interest
thereon  computed  at   the   rate   of  one  [and
one-fourth] per cent per month or fraction thereof
from the date when the original tax became due and
payable. Within thirty days of the mailing of such
notice,   the   taxpayer    shall   pay   to   the
commissioner, in cash  or by check, draft or money
order, drawn to  the  order of the commissioner of
revenue services, the  amount  of  such additional
tax and interest.  If,  upon  examination  of such
amended   return   or    affidavit   and   related
information,  the  commissioner   finds  that  the
taxpayer has overpaid  the  tax  due the state and
has not received  from  or  been  allowed  by  the
United States government, or any agency thereof, a
credit or a  benefit, as a deduction or otherwise,
for or by reason of such overpayment, the taxpayer
shall be paid  by  the state treasurer, upon order
of   the   comptroller,   the   amount   of   such
overpayment.
    Sec.  32.  Section   12-227   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    To  any  refunds   granted   as  a  result  of
overpayment of any  taxes assessed under this part
and chapter 209,  except  refunds due on estimated
payments made with  tentative  returns and refunds
due because of  payments  on  account of estimated
tax pursuant to  sections  12-242c and 12-242d, AS
AMENDED BY SECTION  10  OF  PUBLIC  ACT  93-74 AND
SECTION 36 OF THIS ACT, which are greater than the
tax disclosed to  be  due  upon  the filing of the
completed returns, there  shall  be added interest
at the rate  of  [three-fourths of one] TWO-THIRDS
per cent for  each  month  and fraction of a month
which elapses between  the  later  of  (a) the due
date of such  taxes or (b) the date of making such
overpayment,  and  the   date  of  notice  by  the
commissioner of revenue services that such refunds
are due. This  section  shall apply to returns for
all calendar or  fiscal years which commence on or
after May 19, 1959.
    Sec.  33.  Section   12-229   of  the  general
statutes, as amended  by  section 62 of public act
93-74,   is  repealed   and   the   following   is
substituted in lieu thereof:
    (a) If any  company fails to pay the amount of
tax reported to  be due on its return or affidavit
within the time  specified under the provisions of
this part, there  shall be imposed a penalty equal
to ten per  cent of such amount due and unpaid, or
fifty dollars, whichever  amount  is greater. Such
amount shall bear interest at the rate of one [and
one-fourth]  per  cent   per   month  or  fraction
thereof, from the  due  date of such tax until the
date of payment.
    (b) If any  company  has  not  made its return
within three months after the time specified under
the provisions of  this part, the commissioner may
make such return at any time thereafter, according
to the best  information  obtainable and according
to the form  prescribed.  To  the tax imposed upon
the basis of  such return, there shall be added an
amount equal to ten per cent of such tax, or fifty
dollars, whichever is  greater. [Such sum] THE TAX
shall  bear interest  at  the  rate  of  one  [and
one-fourth]  per  cent   per   month  or  fraction
thereof, from the  due  date of such tax until the
date of payment. No taxpayer shall be subject to a
penalty under both subsections (a) and (b) of this
section in relation to the same tax period.
    (c)  Subject  to  the  provisions  of  section
12-3a, the commissioner  may  waive all or part of
the penalties provided  under this chapter when it
is proven to  his satisfaction that the failure to
pay any tax  on  time  was due to reasonable cause
and was not intentional or due to neglect.
    Sec.  34.  Section   12-235   of  the  general
statutes, as amended  by  section  9 of public act
93-74,   is  repealed   and   the   following   is
substituted in lieu thereof:
    To any taxes  which are assessed under section
12-233, there shall  be added interest at the rate
of one [and  one-fourth]  per  cent  per  month or
fraction thereof from  the  date when the original
tax became due and payable. The amount of any tax,
penalty  or interest  due  and  unpaid  under  the
provisions of this part may be collected under the
provisions of section  12-35.  The warrant therein
provided for shall  be  signed by the commissioner
or his authorized  agent.  The  amount of any such
tax, penalty and  interest  shall  be a lien, from
the last day  of  the income year until discharged
by payment, against all real estate of the company
within the state,  and  a certificate of such lien
signed by the commissioner may be filed for record
in the office  of  the  clerk of any town in which
such real estate  is  situated,  provided  no such
lien shall be  effective  as against any bona fide
purchaser  or  qualified   encumbrancer   of   any
interest in any  such  property. When any tax with
respect to which  a  lien  has been recorded under
the provisions of this section has been satisfied,
the commissioner, upon  request  of any interested
party, shall issue  a certificate discharging such
lien, which certificate  shall  be recorded in the
same office in  which  the  lien was recorded. Any
action for the  foreclosure  of such lien shall be
brought by the attorney general in the name of the
state  in the  superior  court  for  the  judicial
district in which  the  property  subject  to such
lien is situated,  or, if such property is located
in two or more judicial districts, in the superior
court for any  one such judicial district, and the
court may limit  the  time for redemption or order
the sale of  such  property  or pass such other or
further decree as it judges equitable.
    Sec.  35.  Section   12-237   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Any taxpayer aggrieved  because  of any order,
decision,  determination or  disallowance  of  the
commissioner  of  revenue   services   under   the
provisions of this  part  may,  within  one  month
after service upon  the taxpayer of notice of such
order,  decision, determination  or  disallowance,
take an appeal therefrom to the superior court for
the judicial district  of  Hartford-New  Britain*,
which shall be  accompanied  by  a citation to the
commissioner of revenue  services to appear before
said court. Such  citation  shall be signed by the
same  authority,  and   such   appeal   shall   be
returnable  at  the   same  time  and  served  and
returned in the  same  manner,  as  is required in
case of a summons in a civil action. The authority
issuing the citation shall take from the appellant
a  bond  or   recognizance   to   the   state   of
Connecticut, with surety  to  prosecute the appeal
to  effect and  to  comply  with  the  orders  and
decrees of the court in the premises. Such appeals
shall be preferred  cases,  to  be  heard,  unless
cause  appears  to  the  contrary,  at  the  first
session, by the  court or by a committee appointed
by it. Said  court may grant such relief as may be
equitable and, if  such tax has been paid prior to
the  granting  of   such  relief,  may  order  the
treasurer to pay  the  amount of such relief, with
interest at the  rate of [nine] EIGHT per cent per
annum, to the  aggrieved  taxpayer.  If the appeal
has been taken  without  probable cause, the court
may  tax double  or  triple  costs,  as  the  case
demands; and, upon  all  such appeals which may be
denied, costs may  be  taxed against the appellant
at the discretion of the court, but no costs shall
be taxed against the state.
    Sec. 36. Subsection  (a) of section 12-242d of
the general statutes,  as amended by section 10 of
public act 93-74,  section  2 of public act 93-433
and section 10  of  this  act, is repealed and the
following is substituted in lieu thereof:
    (a) In addition  to  the taxes provided for by
part I of  this chapter with respect to any income
year which begins  on  or  after  January 1, 1982,
every company, subject to taxation under said part
which has not,  as  provided  in  section 12-242c,
made payments on  account  of  the  tax  for  such
income year, (1) on or before the fifteenth day of
the  third  month   of  the  income  year,  of  an
instalment at least  equaling  the  lesser  of (A)
thirty per cent  of  such tax for such income year
or (B) sixty  per  cent  of  the  assumed  tax, as
defined in subsection  (d)  of  this section, with
respect to such  income year, (2) on or before the
fifteenth day of  the  sixth  month  of the income
year, of an  instalment  at least equaling seventy
per cent of  the  tax for such income year, (3) on
or before the  fifteenth day of the ninth month of
the income year of an instalment at least equaling
eighty per cent  of  such tax for such income year
and (4) on  or  before  the  fifteenth  day of the
twelfth month of the income year, of an instalment
at least equaling  one hundred per cent of the tax
for such income  year,  shall on or before the due
date for filing  the  final return for such income
year  prescribed in  section  12-222  pay  to  the
commissioner interest on  the  part  of  any  such
instalment not so  paid,  at  the rate of one [and
one-fourth] per cent per month or fraction thereof
from  the  aforementioned  date  relating  to  the
instalment  to  the  date  of  payment.  Any  such
instalment  payment shall  be  determined  on  the
basis of an  estimated  tax which is not less than
ninety per cent  of  the  tax determined to be due
for such income year; provided any credit that may
otherwise be taken  pursuant to section 47 of this
act shall be disregarded in determining the tax to
be due for  all  filings,  except a filing made in
accordance  with  section   12-222   and  provided
further any credit  that  may  otherwise  be taken
under section 1  of  public  act  93-433  shall be
disregarded in determining  the  tax to be due for
any income year commencing before January 1, 1997.
    Sec. 37. Subsection  (6)  of section 12-414 of
the general statutes,  as  amended by section 5 of
public act 93-44, is repealed and the following is
substituted in lieu thereof:
    (6) The commissioner for good cause may extend
the time for  making  any  return  and  paying any
amount required to  be paid under this chapter, if
a  written request  therefor  is  filed  with  the
commissioner  together  with  a  tentative  return
which must be accompanied by a payment of the tax,
which shall be estimated in such tentative return,
on or before  the  last day for filing the return.
Any person to  whom  an extension is granted shall
pay, in addition  to the tax, interest at the rate
of one [and  two-thirds]  per  cent  per  month or
fraction thereof from  the  date  on which the tax
would have been  due  without  the extension until
the date of payment.
    Sec. 38. Subsections  (2)  and  (3) of section
12-415 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (2) The amount of the assessment, exclusive of
penalties, shall bear  interest at the rate of one
[and two-thirds] per  cent  per  month or fraction
thereof from the  last day of the month succeeding
the period for  which  the  amount  or any portion
thereof should have  been  returned until the date
of payment.
    (3) In making  an  assessment the commissioner
may, in his  discretion, offset overpayments for a
period or periods,  together  with interest on the
overpayments,  against underpayments  for  another
period or periods,  together  with interest on the
underpayments. The interest  on  underpayments and
overpayments shall be computed on the basis of one
[and two-thirds] per  cent  per  month or fraction
thereof from the  last  day  for the filing of the
respective returns, but  the allowance of interest
on overpayments shall be limited to the provisions
of this subsection  and  subsection (2) of section
12-416.
    Sec. 39. Subsections  (2)  and  (3) of section
12-416 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (2) In making  an  assessment the commissioner
may, in his  discretion, offset overpayments for a
period or periods,  together  with interest on the
overpayments,  against underpayments  for  another
period or periods,  together  with interest on the
underpayments. The interest  on  underpayments and
overpayments shall be computed on the basis of one
[and two-thirds] per  cent  per  month or fraction
thereof, from the  last  day for the filing of the
respective returns.
    (3) The amount  of  the assessment, [including
the amount added  thereto  pursuant  to subsection
(1) of this  section,]  shall bear interest at the
rate of one [and two-thirds] per cent per month or
fraction thereof from  the  last  day of the month
succeeding the period  for which the amount or any
portion thereof should  have  been  returned until
the date of payment.
    Sec.  40.  Section   12-419   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Any person who  fails  to  pay  any tax to the
state  or  any   amount  of  tax  required  to  be
collected and paid to the state, except amounts of
assessments  made  by   the   commissioner   under
sections 12-415, AS  AMENDED BY SECTION 38 OF THIS
ACT, and 12-416,  AS AMENDED BY SECTION 39 OF THIS
ACT, within the  time required shall pay a penalty
of fifteen per  cent  of the tax or fifty dollars,
whichever amount is  greater,  in  addition to the
tax or amount  of  the  tax,  plus interest at the
rate of one [and two-thirds] per cent per month or
fraction thereof from  the due date of such tax or
amount of tax required to be collected to the date
of payment. Subject  to  the provisions of section
12-3a, the commissioner  may waive all or any part
of the penalties  provided under this chapter when
it  is  proven   to   the   satisfaction   of  the
commissioner that failure  to  pay any tax was due
to reasonable cause and was not intentional or due
to neglect.
    Sec. 41. (NEW)  (a) There shall be paid to the
commissioner  of  revenue   services  by  any  dry
cleaning establishment, as  defined  in subsection
(c) of this  section,  a surcharge of one per cent
of  the  gross  receipts  at  retail  of  any  dry
cleaning service performed  by such establishment.
Each such establishment  shall  register  with the
commissioner   of  revenue   services   on   forms
prescribed by him.  Each  such establishment shall
submit a return  quarterly  to the commissioner of
revenue services, applicable  with  respect to the
calendar quarter beginning  July 1, 1994, and each
calendar quarter thereafter, on or before the last
day of the  month immediately following the end of
each such calendar  quarter,  on a form prescribed
by the commissioner,  together with payment of the
quarterly  surcharge  determined  and  payable  in
accordance with the  provisions  of  this section.
Whenever such surcharge  is  not  paid when due, a
penalty of ten per cent of the amount due or fifty
dollars, whichever is  greater,  shall be added to
the amount due  and such penalty shall immediately
accrue, and thereafter  such  surcharge shall bear
interest at the  rate of one per cent per month or
fraction  thereof until  the  same  is  paid.  The
commissioner  of  revenue   services  shall  cause
copies of a form prescribed for submitting returns
as required under  this  section to be distributed
to persons subject  to  the  surcharge. Failure to
receive  such  form  shall  not  be  construed  to
relieve anyone subject to the surcharge under this
section  from  the  obligations  of  submitting  a
return, together with  payment  of  such surcharge
within  the  time   required.  The  provisions  of
sections 12-548 to 12-554, inclusive, and sections
12-555a and 12-555b  of the general statutes shall
apply to the  provisions  of  this  section in the
same manner and  with the same force and effect as
if the language of said sections 12-548 to 12-554,
inclusive, and sections  12-555a  and  12-555b had
been incorporated in  full  into  this section and
had expressly referred  to  the  surcharge imposed
under this section,  except to the extent that any
such provision is inconsistent with a provision of
this section and  except that the term "tax" shall
be read as "dry cleaning establishment surcharge".
Any moneys received  by the state pursuant to this
section  shall  be   deposited  into  the  account
established pursuant to  subsection  (b)  of  this
section.
    (b) There is established an account within the
general fund to  be  known  as  the  "dry cleaning
establishment remediation account".  Said  account
shall contain any  moneys  required  by  law to be
deposited in the account. Any balance remaining in
the account at the end of any fiscal year shall be
carried forward in the account for the fiscal year
next succeeding. The  account shall be used by the
department of economic development for grants made
to   owners   or   operators   of   dry   cleaning
establishments pursuant to subsections (c) and (d)
of this section.
    (c) The state, acting through the commissioner
of  economic  development,   shall   use  the  dry
cleaning  establishment  remediation   account  to
provide grants to  dry cleaning establishments for
the purposes of  the  containment  and  removal or
mitigation  of environmental  pollution  resulting
from the discharge,  spillage,  uncontrolled loss,
seepage  or  filtration  of  chemical  liquids  or
solid, liquid or  gaseous  products  or  hazardous
wastes on or  at the site of such establishment or
for measures undertaken  to prevent such pollution
which  are  approved   by   the   commissioner  of
environmental protection. For the purposes of this
section, "dry cleaning  establishment"  means  any
place of business which is currently using, or has
previously  used, tetrachlorethylene  or  Stoddard
solvent or other  chemicals  for  the  purpose  of
cleaning clothing or  furniture  and which (1) has
been  doing  business   and   has  maintained  its
principal office and  place  of  business  in this
state for a  period  of at least one year prior to
the date of  its  application for assistance under
this  section  and   (2)   demonstrates,   to  the
satisfaction  of  the   commissioner  of  economic
development, that it is unable to obtain financing
from conventional sources  on  reasonable terms or
in reasonable amounts.
    (d) Notwithstanding the  terms  of  any  grant
made   under  this   section,   a   dry   cleaning
establishment shall bear  all  the  costs  of such
pollution that are less than ten thousand dollars,
provided, for, a  release that was reported to the
commissioner of environmental  protection prior to
December 31, 1990,  the  responsible  party  shall
bear all costs  up  to twenty thousand dollars. No
dry cleaning establishment shall receive more than
fifty thousand dollars  per  calendar  year. There
shall be allocated  to  the department of economic
development  annually  from   the   account,   for
administrative costs, an  amount equal to five per
cent of the  maximum balance of the account in the
preceding year or  one  hundred  thousand dollars,
whichever is greater.  In addition the account may
be used (1) to provide grants to the department of
environmental  protection  for  expenditures  made
investigating dry cleaning  establishments and (2)
to provide potable water whenever necessary.
    (e) Requests for  grants  shall be made to the
commissioner  of  economic  development.  Any  dry
cleaning   establishment  seeking   grants   shall
provide documentation supporting  the need for the
grant.
    (f)  Any  dry   cleaning  establishment  which
unlawfully or intentionally  discharges  or spills
any chemical liquids  or  solid, liquid or gaseous
products or hazardous wastes shall not be eligible
for grants from the account.
    (g) The commissioner  of  economic development
shall establish procedures for distribution of the
grants and may  adopt  regulations,  in accordance
with the provisions  of  chapter 54 of the general
statutes, to carry  out  the  provisions  of  this
section.
    Sec. 42. (NEW)  (a)  A  taxpayer, objecting to
the  assessment  of  any  tax  due  the  state  or
interest thereon, may  at  any  time  prior to the
expiration of the later of (1) the time period for
contesting such tax  or  (2) the entry of an order
by the superior  court  upholding such assessment,
make a remittance that is designated in writing as
a deposit in  the  nature  of  a  cash  bond. Such
remittance shall not  be deemed to be a concession
by the taxpayer  of  the  liability  therefor  and
shall  not diminish  or  abrogate  the  taxpayer's
right to contest  the  applicability  of  the tax,
interest or penalty,  prior  to the time otherwise
available for contesting the tax or penalty.
    (b) Notwithstanding the  provisions of section
12-39h of the general statutes, at the time of the
application  of  the  cash  bond  upon  the  final
resolution  of the  controversy,  there  shall  be
applied first to  the  payment  of the tax finally
determined to be  due  so much of the cash bond as
is represented by  the ratio, determined as of the
date of receipt  of  the  cash  bond,  of  the tax
assessed over the  total  of  the tax assessed and
the interest accrued  as  of  such  date,  and the
balance shall be  treated  as interest paid on the
tax assessed as  of  such  date.  Interest  on the
outstanding balance of  the tax due and not deemed
satisfied by the  cash bond shall be determined as
if the cash  bond so applied to the payment of tax
had been a  tax  payment as of the date of receipt
of the cash  bond  such that the deposit stops the
further accrual or  compounding  of  interest with
respect to the  portion  of  the assessment deemed
paid as of  such  earlier date. The balance of the
cash bond, if any, shall be applied to the payment
of interest as  of the date of receipt of the cash
bond, with any  excess  applied in accordance with
said section 12-39h.
    (c) A taxpayer  having remitted a cash bond in
accordance with this section shall not be entitled
to the payment  of  interest  with respect to that
portion of the tax assessment that is subsequently
abated by action  of  the  commissioner of revenue
services or a  court  of competent jurisdiction to
the  extent the  amount  of  such  assessment  was
represented by such  cash  bond. A cash bond shall
not be subject  to a claim for credit or refund as
an overpayment.
    (d) The taxpayer  may  request a return of all
or part of  the  cash  bond at any time before the
expiration of the  later  of  the  time period for
contesting such tax  or  the  entry of an order by
the  superior  court  upholding  such  assessment,
unless  the  commissioner   of   revenue  services
determines that collection  of the tax would be in
jeopardy, in which  case the cash bond will not be
returned,  but  will   be   applied  against  such
assessment. Upon the  return  of such amounts, the
taxpayer  shall  be   treated   for  all  purposes
hereunder as if  such  cash  bond  had  never been
paid.
    Sec. 43. (NEW)  The  commissioner  of  revenue
services may adopt regulations, in accordance with
the  provisions  of  chapter  54  of  the  general
statutes, to implement  the  provisions of section
42 of this act.
    Sec. 44. (NEW)  (a) In determining the tax due
under  the  provisions  of  chapter  228c  of  the
general statutes, the  value  of any farm land, as
defined  in  section   12-107c   of   the  general
statutes, transferred by  a  donor  by  gift  to a
lineal  descendant or  spouse  thereof,  shall  be
determined in accordance  with  the  provisions of
section 12-63 of the general statutes.
    (b)  If  at   any   time  such  farm  land  is
transferred  to  a   party  other  than  a  lineal
descendant or spouse  thereof  or  if the donor or
such lineal descendant  or spouse thereof modifies
the status of  such  farm  land  so it fails to be
classified as farm  land  under  the provisions of
section  12-107c of  the  general  statutes,  open
space land under the provisions of section 12-107e
of the general  statutes  or forest land under the
provisions  of  section  12-107d  of  the  general
statutes, the transferor  or  owner  of  such farm
land shall be  liable  for  the difference between
the tax paid  under  the  provisions of subsection
(a) of this  section  and the tax which would have
been due if  such  land  was valued based upon its
fair market value at the time of such transfer. If
such transferor or  owner transfers any portion of
such farm land  or  alters  its  classification in
violation of the  provisions  of  this section the
transferor or owner shall be liable for the tax on
the portion of  farm  land  if  such  portion  was
valued based on its fair market value.
    Sec. 45. (NEW)  There  shall  be  allowed as a
credit against the  tax imposed on any corporation
under chapter 208  of the general statutes, except
corporations  employing  fewer  than  one  hundred
employees, with respect  to  any  taxable  year of
such corporation commencing on or after January 1,
1995, an amount  equal  to  fifty  per cent of the
amount spent by  such  corporation  for the direct
costs of transportation  management  programs  and
services  related  thereto   instituted   by  such
corporation  in  response  to  the  provisions  of
sections 13b-38o to  13b-38y,  inclusive,  of  the
general statutes, as amended by public act 93-334,
not to exceed  two  hundred fifty dollars annually
per employee participating in alternative means of
commuting  pursuant to  transportation  management
programs. The total  amount  of  credits available
under the provisions  of  this  section  shall not
exceed one million  five hundred thousand dollars.
The  department  of   transportation  shall  adopt
regulations in accordance  with  the provisions of
chapter 54 of  the  general  statutes  which shall
include,  but  not  be  limited  to,  establishing
procedures for a corporation to obtain and qualify
for the tax credit.
    Sec. 46. (NEW)  A  tax collector or his agent,
or a grantee  of  a  tax  collector's deed, or the
heirs, successors or  assigns of such grantee, may
execute and swear to an affidavit concerning facts
within  the personal  knowledge  of  such  affiant
concerning  the means  of  giving  notice  to  any
person affected by  a  tax  sale,  to which may be
attached (1) copies or facsimiles of notices given
under section 12-157  of the general statutes, (2)
copies of any  notice  subsequently  given  to any
person to confirm  that  such  person has received
written notice of  the pendency or occurrence of a
sale of real  property,  and  (3) copies of postal
receipts reproduced by  photographic,  xerographic
or similar means,  which  shall  contain  a  legal
description of the  real property affected thereby
and the name,  for  indexing purposes, of the then
current owner or  owners of record. Such affidavit
may be recorded in the land records of the town in
which the real  property is situated, and shall be
indexed by the  town  clerk  in  the  name  of the
record  owner or  owners  stated  therein.  If  so
recorded,  and  if  the  affiant  is  deceased  or
otherwise not available  to testify in court, then
such affidavit or  a  certified  copy  thereof  is
admissible as prima  facie  evidence  of the facts
stated in it,  so  far as those facts affect title
to real estate  in  any action involving the title
to that real estate or any interest in it.
    Sec. 47. (NEW) (a) There shall be allowed as a
credit against the  tax  imposed  by  chapter 207,
208, 208a, 209,  210,  211  or  212 of the general
statutes or against  the  tax  imposed pursuant to
section 49 of  this  act  in  an amount determined
under the provisions  of  subsection  (b)  of this
section  with respect  to  the  personal  property
taxes paid during  any  income year, on electronic
data processing equipment.  For  the  purposes  of
this   section   "electronic    data    processing
equipment" means computers,  printers,  peripheral
computer  equipment,  bundled  software,  and  any
computer based equipment  acting  as a computer as
defined under Section  168 of the Internal Revenue
Code  of 1986,  or  any  subsequent  corresponding
internal revenue code  of  the  United  States, as
from time to  time  amended,  and  any  other such
equipment reported as  a  Code  20 on the Personal
Property   Declaration  as   prescribed   by   the
secretary of the  office  of policy and management
pursuant to section 12-27 of the general statutes,
as amended by section 1 of public act 93-74.
    (b) The amount  allowed  as  a  credit  in any
income year shall be the full amount of the tax on
such  electronic data  processing  equipment  paid
pursuant to section 12-71 of the general statutes,
as amended by  section  8 of public act 93-433, or
section 12-80a of  the  general  statutes,  and as
defined under Section  168 of the Internal Revenue
Code  of 1986,  or  any  subsequent  corresponding
internal revenue code  of  the  United  States, as
from time to  time  amended,  provided  no  credit
shall be allowed  for  the payment of any interest
or penalty on the tax.
    (c) The credit  provided  for  by this section
shall be allowed  for  any taxes owed on the grand
list of October  1,  1994,  and  each  grand  list
annually  thereafter  or   included  in  the  list
prescribed under section  12-80a  of  the  general
statutes for such  grand  list. Such credits shall
first  be  used   by   the  taxpayer  against  the
corporation business tax  under chapter 208 of the
general statutes, if  any,  and  then  may be used
against any tax  paid  by  the  taxpayer under the
provisions of chapter  207, 208a, 209, 210, 211 or
212 of the  general  statutes  or  the tax imposed
upon a health care center under section 49 of this
act. The amount  of  credits  allowable under this
section in any  tax year against the taxes imposed
by said chapter  207,  208, 208a, 209, 210, 211 or
212 or against  the  tax  imposed  on  health care
centers, under the  provisions  of  section  49 of
this act, shall  be allowable only after all other
credits allowable against  such taxes for such tax
year have been applied.
    (d) In the  case  of  leased  electronic  data
processing equipment, the  lessee, not the lessor,
shall be entitled  to  claim  the  credit  allowed
pursuant to this section if the lease by its terms
or operation imposes on the lessee the cost of the
personal  property  taxes   on   such   equipment,
provided  the lessor  and  lessee  may  elect,  in
writing, that the  lessor  may  claim  the  credit
provided by this  section.  Such election shall be
attached to the  tax return filed by the lessor on
which such credit is claimed.
    (e) In the case of taxpayers filing a combined
return pursuant to  section 12-223a of the general
statutes,  the credit  provided  by  this  section
shall be allowed  on  a  combined basis, such that
the amount of personal property taxes paid by such
taxpayers with respect  to  such  equipment may be
claimed as a  tax  credit against the combined tax
liability of such  taxpayers  as  determined under
chapter  208  of  the  general  statutes.  Credits
available to taxpayers  which  are  subject to tax
under said chapter  208  but  not  subject  to tax
under chapter 207,  208a,  209, 210, 211 or 212 of
the general statutes  or the tax imposed on health
care centers under the provisions of section 49 of
this  act  shall  be  used  prior  to  credits  of
companies included in  such  combined return which
are also subject  to  tax  under said chapter 207,
208a, 209, 210, 211 or 212 or the tax imposed upon
health  centers  pursuant  to  the  provisions  of
section 49 of this act.
    Sec. 48. Subsection  (1)  of section 12-415 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (1) (A) If  the  commissioner is not satisfied
with the return  or  returns  of  the  tax  or the
amount of tax  required to be paid to the state by
any person, he  may  compute and assess the amount
required to be  paid  upon  the basis of the facts
contained in the  return  or  returns  or upon the
basis of any  information within his possession or
that may come  into  his  possession. [One or more
deficiency assessments may  be  made of the amount
due for one or for more than one period] EXCEPT IN
THE  CASE  OF   FRAUD  OR  INTENT  TO  EVADE,  THE
COMMISSIONER MAY NOT MAKE MORE THAN ONE ASSESSMENT
FOR A TAX  PERIOD  FOR  WHICH  A  RETURN  HAS BEEN
FILED. (B) UPON  THE  ADOPTION  OF  REGULATIONS IN
ACCORDANCE WITH THE  PROVISIONS  OF  CHAPTER 54 TO
IMPLEMENT THE PROVISIONS  OF  THIS  SECTION AND TO
DEFINE THE TERMS  "IMPERFECT"  AND  "INCOMPLETE IN
ANY  MATERIAL  RESPECT",   THE  COMMISSIONER  MAY,
WITHIN  THE  PERIOD   OTHERWISE   PRESCRIBED   FOR
ASSESSMENT, MAKE A SINGLE SUPPLEMENTAL ASSESSMENT,
UPON WRITTEN FINDING  BY  THE COMMISSIONER THAT AN
EARLIER ASSESSMENT IS  IMPERFECT  OR INCOMPLETE IN
ANY MATERIAL RESPECT.
    Sec. 49. (NEW)  Each  health  care  center, as
defined  in  section   38a-175   of   the  general
statutes, shall pay  a  tax to the commissioner of
revenue services for  the calendar year commencing
on January 1,  1995,  and  annually thereafter, at
the rate of one and three-quarters per cent of the
total net direct  subscriber  charges  received on
any new or  renewal  contract  or  policy  by such
health care center during each such calendar year,
which shall be  in  addition  to any other payment
required  under  section  38a-48  of  the  general
statutes. The provisions  of  chapter  207  of the
general  statutes  pertaining  to  the  filing  of
returns,   declarations,   instalment    payments,
assessments and collection  of  taxes,  penalties,
administrative  hearings and  appeals  imposed  on
domestic  insurance  companies  shall  apply  with
respect to the charge imposed under this section.
    Sec. 50. (a)  There  is established a Property
Tax  Reform  Commission   which  shall  study  and
evaluate: (1) The  structure  of  the state's real
and personal property  tax  system,  including any
possible  alternative structures  and  procedures;
(2) different methods  of  reducing  the  real and
personal  property  tax   burden   on  Connecticut
taxpayers;  (3)  alternative  revenue  sources  to
replace any loss in real and personal property tax
revenue  to  municipalities;   and  (4)  different
methods of administering  and  collecting real and
personal property taxes.
    (b)  The  commission   shall  consist  of  the
following thirty-two members:  (1)  The  governor,
the  cochairpersons and  ranking  members  of  the
joint standing committee  of  the general assembly
having cognizance of  matters relating to finance,
revenue and bonding, and planning and development,
the  secretary  of   the   office  of  policy  and
management, the commissioner  of revenue services,
or their designees;  (2) the president pro tempore
of  the  senate,  the  speaker  of  the  house  of
representatives,  the  majority   leader   of  the
senate,  the  majority  leader  of  the  house  of
representatives,  the  minority   leader   of  the
senate,  the  minority  leader  of  the  house  of
representatives,  or  their   designees;  (3)  one
member shall represent  the  taxpayers alliance to
serve Connecticut; one of whom shall represent the
AFL-CIO,  two  of   whom   shall   represent   the
Connecticut Business and  Industry Association, of
which one member  shall represent a public service
company, two members  representing the Connecticut
Association   of   Tax   Assessors,   one   member
representing   the   Manufacturing   Alliance   of
Connecticut, one member  representing  the Council
of  Small  Towns,   one  member  representing  the
Connecticut Conference of  Municipalities; (4) the
president   of  the   Connecticut   Institute   of
Municipal Studies and  (5)  five members appointed
by the governor,  two  of whom shall represent the
public, one of  whom  shall represent a council of
regional government, one  of whom shall be a mayor
of  one of  the  four  municipalities  having  the
largest population in  the  state as determined by
the most recent  United  States  census and one of
whom shall be a first selectman of a town having a
population  of  less   than   twenty  thousand  as
determined  by  the   most  recent  United  States
census. All such  appointments and representatives
shall be made or designated no later than June 30,
1994. The cochairpersons  of  the  joint  standing
committee   of   the   general   assembly   having
cognizance of matters relating to finance, revenue
and bonding shall convene the first meeting of the
commission.
    (c) Staff support  for the commission shall be
provided   by  the   Connecticut   Institute   for
Municipal Studies. The  commission  shall submit a
written  report  of   its  findings  and  specific
recommendations  for legislation  to  the  general
assembly on or  before  January  15,  1995, and on
January fifteenth annually  thereafter  until  the
commission submits its final report on January 15,
1998.
    Sec.  51.  (NEW)   (a)   Notwithstanding   any
provision of title 12 of the general statutes, the
local legislative body  of  a municipality may, at
its  option,  stay   the  implementation  of  such
municipality's revaluation in  order  to implement
the recommendations of  the  Property  Tax  Reform
Commission enacted during  the 1995 session of the
general assembly. The  local legislative body of a
municipality may stay  such  implementation  for a
period or periods  not  to exceed in the aggregate
two years. Any  distressed  municipality  shall by
majority vote of its legislative body approve such
stay and any municipality, other than a distressed
municipality  shall  by  two-thirds  vote  of  its
legislative   body   approve    such   stay.   Any
municipality required to implement revaluation for
the assessment year  commencing  October  1, 1993,
which has not  as  of  February  15, 1994, adopted
mill rates for  taxes  due  July  1, 1994, may use
such municipality's most  recently completed grand
list  prior  to  revaluation  as  updated  by  any
additions,  deletions,  splits,  combinations  and
other changes in  ownership as of October 1, 1993,
provided  any such  municipality  may  commence  a
phase-in of its revaluation pursuant to subsection
(e) of section  12-62a  or  section  12-62c of the
general statutes with  respect  to such assessment
year and may after the first year of such phase-in
stay the further  implementation  of such phase-in
in accordance with the provisions of this section.
Any municipality required to implement revaluation
for the year commencing October 1, 1994, which has
not as of  February  15, 1995, adopted a mill rate
for  taxes  due   July   1,  1995,  may  use  such
municipality's most recently  completed grand list
prior to revaluation  as updated by any additions,
deletions, splits, combinations  and other changes
of  ownership  as   of   October   1,   1994.  Any
municipality which has elected to defer all or any
part of the  amount  of  increase  in the assessed
value  of  real   property   as  approved  by  the
legislative body of such municipality, pursuant to
subsection (e) of  section 12-62a or 12-62c of the
general statutes, and  which  has  not  as  of the
effective date of this act adopted a mill rate for
taxes for July  1,  1994, may, subject to approval
by the legislative body of such municipality, stay
the further implementation  of  such  phase-in, so
that the assessed  value  shall  not  include such
further increments in value for the grand lists of
October 1, 1993  and  October 1, 1994, as provided
for in such  plan. On and after December 31, 1995,
each municipality shall comply with all provisions
of any new  property  tax  statutes enacted during
the  1995 session  of  the  general  assembly  for
implementation as of  July  1, 1996. If during the
1995   session  of   the   general   assembly   no
legislation  is enacted  concerning  property  tax
reform  each municipality  which  has  stayed  the
implementation  of  revaluation   or  phase-in  of
revaluation shall recommence the implementation of
such revaluation or  phase-in  upon the expiration
of  any  stay   implemented   according   to   the
provisions of this section.
    (b) Any municipality which has elected to stay
the implementation of  a  phase-in of revaluation,
pursuant to this section, shall, at the expiration
of such stay,  resume  such  phase-in at the point
where such municipality would have been during the
first year in  which  such stay was implemented if
such stay was not implemented.
    Sec. 52. Subsection  (e)  of  section 12-7b of
the general statutes,  as  amended  by  public act
93-284,  is  repealed   and   the   following   is
substituted in lieu thereof:
    (e) On or  before  [February 15, 1994] JANUARY
1,   1995,   and    biennially   thereafter,   the
legislative  office  of   fiscal  analysis  shall,
within  available  appropriations,   prepare   and
submit  a tax  expenditure  report  to  the  joint
standing committee of  the general assembly having
cognizance of all  matters  relating  to  finance,
revenue and bonding.  For  the  purposes  of  this
subsection,   "tax  expenditure"   means   a   tax
exemption, exclusion, deduction  or credit created
under the general  statutes  or  a  public act and
resulting in less  tax  revenue  to  the  state or
municipalities than they  would otherwise receive.
Each  such  report  shall  provide  the  following
information  for  each   tax  expenditure:  (1)  A
description of the  tax  expenditure; (2) the year
in which the  tax  expenditure  was  enacted,  the
purpose for its  enactment  and  a  summary of any
amendments  to  the   tax  expenditure  since  its
enactment; (3) the  estimated  state and municipal
fiscal impact of  the  tax expenditure during each
fiscal year of  the  then current biennium, and an
estimate of the  revenue  that  would  result from
repeal of the tax expenditure; and (4) an estimate
of the number  of taxpayers receiving benefit from
the tax expenditure.  UPON  RECEIPT  OF  EACH  TAX
EXPENDITURE REPORT THE JOINT STANDING COMMITTEE OF
THE GENERAL ASSEMBLY  HAVING COGNIZANCE OF MATTERS
RELATING TO FINANCE,  REVENUE  AND  BONDING  SHALL
MEET TO RECEIVE AND ANALYZE THE REPORT.
    Sec. 53. Subsection  (b)  of section 12-206 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) If any  company  has  not  made its return
within three months after the time specified under
the provisions of  this  chapter, the commissioner
may  make such  return  at  any  time  thereafter,
according to the  best  information obtainable and
according  to the  form  prescribed.  To  the  tax
imposed upon the basis of such return, there shall
be added an  amount  equal to ten per cent of such
tax, or fifty dollars, whichever is greater. [Such
sum] THE TAX  shall  bear  interest at the rate of
one  [and  two-thirds]   per  cent  per  month  or
fraction thereof, from  the  due  date of such tax
until the date  of  payment.  No taxpayer shall be
subject to a  penalty  under  both subsections (a)
and (b) of  this  section  in relation to the same
tax period.
    Sec. 54. Subsection  (b) of section 12-268d of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) If any  company  or  municipal utility has
not made its  return  within  one  month after the
time  specified  in   section  12-249,  12-256  or
section 12-264, the  commissioner  may  make  such
return at any  time  thereafter,  according to the
best information obtainable  and  according to the
form prescribed. To the tax imposed upon the basis
of such return,  there  shall  be  added an amount
equal to ten  per  cent  of  such  tax,  or  fifty
dollars, whichever is  greater. [Such sum] THE TAX
shall  bear interest  at  the  rate  of  one  [and
two-thirds]  per  cent   per   month  or  fraction
thereof, from the  due  date of such tax until the
date of payment. No taxpayer shall be subject to a
penalty under both subsections (a) and (b) of this
section in relation to the same tax period.
    Sec. 55. Subsection  (b)  of section 12-309 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) Except in  the case of a wilfully false or
fraudulent return with intent to evade the tax, no
assessment of additional  tax  with respect to any
return shall be  made after the expiration of more
than three years  from  the  date of the filing of
such return or  from the original due date of such
return, whichever is  later. If no return has been
filed   as   provided   in   this   chapter,   the
commissioner may make  such  return  at  any  time
thereafter,  according  to  the  best  information
obtainable and according  to  the form prescribed.
To the tax  imposed upon the basis of such return,
there shall be  added  an  amount equal to ten per
cent of such  tax,  or fifty dollars, whichever is
greater. [Such sum] THE TAX shall bear interest at
the rate of  one  [and  one-fourth]  per  cent per
month or fraction  thereof  from  the  due date of
such tax to  the  date of payment. If prior to the
expiration  of  the   period  prescribed  in  this
section for the  assessment  of  additional tax, a
taxpayer has consented in writing that such period
may be extended, the amount of such additional tax
due may be  determined  at  any  time  within such
extended period. Any  such  extended period may be
further extended by  consent in writing before the
expiration of such extended period.
    Sec. 56. Subsection  (b) of section 12-330i of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) Except in  the case of a wilfully false or
fraudulent return with intent to evade the tax, no
assessment of additional  tax  with respect to any
return shall be  made after the expiration of more
than three years  from  the  date of the filing of
such return or  from the original due date of such
return, whichever is  later. If no return has been
filed as provided in this chapter the commissioner
may  make such  return  at  any  time  thereafter,
according to the  best  information obtainable and
according  to the  form  prescribed.  To  the  tax
imposed upon the basis of such return, there shall
be added an  amount  equal to ten per cent of such
tax, or fifty dollars, whichever is greater. [Such
sum] THE TAX  shall  bear  interest at the rate of
one  [and  one-fourth]   per  cent  per  month  or
fraction thereof from  the due date of such tax to
the date of payment. If prior to the expiration of
the period prescribed  in  this  section  for  the
assessment  of  additional  tax,  a  taxpayer  has
consented  in writing  that  such  period  may  be
extended, the amount  of  such  additional tax due
may be determined at any time within such extended
period. Any such  extended  period  may be further
extended  by  consent   in   writing   before  the
expiration of such extended period.
    Sec. 57. Subsection  (b) of section 12-405d of
the general statutes,  as  amended by section 6 of
public act 94-175,  is  repealed and the following
is substituted in lieu thereof:
    (b) If any  taxpayer  has  not made his return
within three months after the time specified under
the   provisions   of    section    12-405c,   the
commissioner may make  such  return  at  any  time
thereafter,  according  to  the  best  information
obtainable and according  to  the form prescribed.
To the tax  imposed upon the basis of such return,
there shall be  added  an  amount equal to ten per
cent of such  tax,  or fifty dollars, whichever is
greater. No taxpayer shall be subject to a penalty
under both subsections (a) and (b) of this section
in relation to  the same tax period. [Such amount]
THE TAX shall  bear  interest  at  the rate of one
[and one-fourth] per  cent  per  month or fraction
thereof, from the  due  date of such tax until the
date of payment.
    Sec. 58. Subsection  (a)  of section 12-439 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) The tax  imposed  by this chapter shall be
due and payable  on the last day on which a return
may be filed without penalty under sections 12-437
and 12-438. Upon  the  filing  of such return, the
taxpayer shall forward  to  the  commissioner  the
amount shown by  such  return to be due the state.
If any person  fails to pay such amount within the
time required, there  shall  be  imposed a penalty
equal to ten  per  cent  of such amount of tax due
and unpaid or fifty dollars, whichever is greater.
[Such amounts] THE  TAX shall bear interest at the
rate of one [and one-fourth] per cent per month or
fraction thereof, from the due date of such tax to
the date of  payment.  IF NO RETURN HAS BEEN FILED
WITHIN THREE MONTHS AFTER THE TIME SPECIFIED UNDER
THE PROVISIONS OF  THIS  CHAPTER, THE COMMISSIONER
MAY  MAKE SUCH  RETURN  AT  ANY  TIME  THEREAFTER,
ACCORDING TO THE  BEST  INFORMATION OBTAINABLE AND
FORM PRESCRIBED. THERE  SHALL  BE ADDED TO THE TAX
IMPOSED UPON THE  BASIS  OF SUCH RETURN, AN AMOUNT
EQUAL TO TEN  PER  CENT  OF  SUCH  TAX,  OR  FIFTY
DOLLARS, WHICHEVER IS  GREATER. THE TAX SHALL BEAR
INTEREST AT THE  RATE OF ONE PER CENT PER MONTH OR
FRACTION THEREOF FROM  THE DUE DATE OF SUCH TAX TO
THE DATE OF  PAYMENT. Subject to the provisions of
section 12-3a, the  commissioner  may waive all or
part of the  penalties provided under this chapter
when it is  proven  to  his  satisfaction that the
failure to pay any tax was due to reasonable cause
and was not intentional or due to neglect.
    Sec. 59. Subsection  (a)  of section 12-458 of
the general statutes,  as amended by section 34 of
public act 93-74 and public act 93-93, is repealed
and the following is substituted in lieu thereof:
    (a) Each distributor  shall,  on or before the
twenty-fifth day of each month, render a return to
the commissioner. Each  return  shall be signed by
the person required  to  file the return or by his
authorized agent but need not be verified by oath.
Any return required  to  be filed by a corporation
shall be signed  by an officer of such corporation
or his authorized  agent.  Such return shall state
the number of  gallons of fuel sold or used by him
during the preceding  calendar  month, on forms to
be  furnished  by   the  commissioner,  and  shall
contain   such   further    information   as   the
commissioner shall prescribe. The commissioner may
make public the  number of gallons of fuel sold or
used by the  distributor,  as  contained  in  such
report, notwithstanding the  provisions of section
12-15 or any  other  section. For purposes of this
section fuel sold shall include but not be limited
to the transfer  of  fuel  by a distributor into a
receptacle from which fuel is supplied or intended
to be supplied  to  other  than such distributor's
motor vehicles. On  said  date and coincident with
the filing of  such  return each distributor shall
pay to the  commissioner  for  the  account of the
purchaser or consumer a tax on each gallon of such
fuels, except propane,  sold or used in this state
during the preceding  calendar month of twenty-six
cents on and  after  January 1, 1992, twenty-eight
cents on and  after  January  1, 1993, twenty-nine
cents on and  after  July 1, 1993, thirty cents on
and after January 1, 1994, thirty-one cents on and
after July 1,  1994, thirty-two cents on and after
January 1, 1995,  thirty-three  cents on and after
July  1, 1995,  thirty-four  cents  on  and  after
October 1, 1995,  thirty-five  cents  on and after
January 1, 1996,  thirty-six  cents  on  and after
April 1, 1996,  thirty-seven  cents  on  and after
July 1, 1996,  thirty-eight  cents  on  and  after
October 1, 1996,  and  thirty-nine  cents  on  and
after January 1,  1997; and in lieu of said taxes,
each distributor shall pay a tax on each gallon of
gasohol, as defined  in section 14-1, sold or used
in  this  state  during  such  preceding  calendar
month, of twenty-five  cents  on and after January
1, 1992, twenty-seven  cents  on and after January
1, 1993, twenty-eight  cents  on and after July 1,
1993, twenty-nine cents  on  and  after January 1,
1994, thirty cents  on  and  after  July  1, 1994,
thirty-one cents on  and  after  January  1, 1995,
thirty-two  cents  on  and  after  July  1,  1995,
thirty-three cents on  and  after October 1, 1995,
thirty-four cents on  and  after  January 1, 1996,
thirty-five cents on  and  after  April  1,  1996,
thirty-six  cents  on  and  after  July  1,  1996,
thirty-seven cents on  and  after October 1, 1996,
and thirty-eight cents  on  and  after  January 1,
1997; and, in lieu of such rate, on each gallon of
diesel fuel and propane sold or used in this state
on  and  after  September  1,  1991,  during  such
preceding calendar month,  of eighteen cents. Said
tax shall not  be payable on such fuel as may have
been (1) sold  to the United States, (2) sold to a
municipality  of  this   state,  for  use  by  any
contractor   performing   a   service   for   such
municipality  in  accordance   with   a  contract,
provided such fuel  is  used  by  such  contractor
exclusively for the  purposes of and in accordance
with such contract,  (3) sold to a municipality of
this state, a  transit  district of this state, or
this state, at  other  than  a  retail outlet, for
governmental  purposes and  for  use  in  vehicles
owned and operated, or leased and operated by such
municipality, such transit district or this state,
(4) sold to  a person licensed as a distributor in
this state under  section  12-456, (5) transferred
from  storage within  this  state  to  some  point
without this state,  (6)  sold  to the holder of a
permit issued under  section  12-458a  for sale or
use without this  state,  (7)  sold  to any person
engaged in the  business  of farming, provided (A)
such fuel is  not  used in motor vehicles licensed
or required to  be  licensed  to  operate upon the
public highways of this state, unless such fuel is
used in motor  vehicles registered exclusively for
farming purposes, (B)  such fuel is not delivered,
upon such sale,  to  a  tank  in which such person
keeps fuel for  personal  and  farm use and (C) an
affidavit,   prescribed  as   to   form   by   the
commissioner of revenue  services,  affirming that
such  fuel  is   used   exclusively   for  farming
purposes,  is submitted  by  such  person  to  the
distributor, (8) sold exclusively to furnish power
for an industrial  plant in the actual fabrication
of  finished  products  to  be  sold,  or  for  an
agricultural  production  process,   or   for  the
fishing industry, (9) sold exclusively for heating
purposes, (10) sold  exclusively  to  furnish gas,
water,  steam  or  electricity,  if  delivered  to
consumers through mains,  lines  or  pipes or (11)
sold, on or  after  October 1, 1987, but not later
than June 30,  1989,  to  the  holder  of a permit
issued by the  commissioner of revenue services in
accordance with section 12-480a. Each distributor,
when making a  taxable  sale, shall furnish to the
purchaser an invoice  showing  the  quantities  of
fuel sold, the  classification  thereof  under the
provisions of this  chapter  and the amount of tax
to be paid  by  the distributor for the account of
the  purchaser or  consumer.  If  any  distributor
fails to pay  the amount of tax reported to be due
on its report  within the time specified under the
provisions of this section, there shall be imposed
a penalty equal to ten per cent of such amount due
and  unpaid,  or   fifty   dollars,  whichever  is
greater. [Such amount] THE TAX shall bear interest
at the rate  of  one [and one-fourth] per cent per
month or fraction thereof from the due date of the
tax until the  date  of  payment. IF NO RETURN HAS
BEEN FILED WITHIN  THREE  MONTHS  AFTER  THE  TIME
SPECIFIED UNDER THE  PROVISIONS  OF  THIS CHAPTER,
THE COMMISSIONER MAY  MAKE SUCH RETURN AT ANY TIME
THEREAFTER,  ACCORDING  TO  THE  BEST  INFORMATION
OBTAINABLE AND THE FORM PRESCRIBED. THERE SHALL BE
ADDED TO THE  TAX  IMPOSED  UPON THE BASIS OF SUCH
RETURN AN AMOUNT  EQUAL  TO  TEN  PER CENT OF SUCH
TAX, OR FIFTY  DOLLARS,  WHICHEVER IS GREATER. THE
TAX SHALL BEAR  INTEREST  AT  THE  RATE OF ONE PER
CENT PER MONTH  OR  FRACTION  THEREOF FROM THE DUE
DATE OF SUCH  TAX  TO THE DATE OF PAYMENT. Subject
to   the  provisions   of   section   12-3a,   the
commissioner  may  waive   all   or  part  of  the
penalties provided under  this  chapter when it is
proven to his satisfaction that the failure to pay
any tax was  due  to  reasonable cause and was not
intentional or due to neglect.
    Sec.  60.  Section   12-458b  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Any  person  who   receives   fuels   from  an
unlicensed distributor or  in  such form and under
such circumstances as  to preclude collection from
a  distributor  of  the  tax  imposed  in  section
12-458, AS AMENDED  BY SECTION 59 OF THIS ACT, and
who thereafter sells  or  uses  any  such fuels in
such manner or  under  such  circumstances  as  to
render such sale  or  use  subject to said tax, is
considered to be  a distributor and shall make the
same report, pay  the  same  tax and be subject to
all provisions of  this  chapter  applicable  to a
distributor of such  fuels  except the surety bond
requirement of section  12-456.  [, provided there
shall be added  to the amount of tax due a penalty
of ten per  cent  or  fifty  dollars, whichever is
greater.] Such person  may,  at  the discretion of
the commissioner, be  required  to  file  a surety
bond  or  other   security   acceptable   to   the
commissioner in an amount set by the commissioner.
    Sec. 61. Subsection  (a)  of section 12-488 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) If any  motor  carrier  fails  to  pay tax
reported to be  due  on its report within the time
specified under the  provisions  of  this chapter,
there shall be  imposed  a penalty of ten per cent
of such amount  of  tax  due  and unpaid, or fifty
dollars, whichever is  greater.  [Such amount] THE
TAX shall bear  interest  at  the rate of one [and
one-fourth]  per  cent   per   month  or  fraction
thereof, from the  due  date of such tax until the
date of payment.  IF  NO  RETURN  HAS  BEEN  FILED
WITHIN ONE MONTH  AFTER  THE  TIME SPECIFIED UNDER
THE PROVISIONS OF  THIS  CHAPTER, THE COMMISSIONER
MAY  MAKE SUCH  RETURN  AT  ANY  TIME  THEREAFTER,
ACCORDING TO THE  BEST  INFORMATION OBTAINABLE AND
THE FORM PRESCRIBED.  THERE  SHALL BE ADDED TO THE
TAX IMPOSED UPON  THE  BASIS  OF  SUCH  RETURN, AN
AMOUNT EQUAL TO TEN PER CENT OF SUCH TAX, OR FIFTY
DOLLARS, WHICHEVER IS  GREATER. THE TAX SHALL BEAR
INTEREST AT THE  RATE OF ONE PER CENT PER MONTH OR
FRACTION THEREOF FROM  THE DUE DATE OF SUCH TAX TO
THE DATE OF  PAYMENT. Subject to the provisions of
section 12-3a, the  commissioner  may waive all or
part of the  penalties provided under this chapter
when it is  proven  to  his  satisfaction that the
failure to pay any tax was due to reasonable cause
and was not intentional or due to neglect.
    Sec. 62. Subsection  (b)  of section 12-509 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) If any  person  has  not  made  his return
within three months after the time specified under
the provisions of  this  chapter, the commissioner
may  make such  return  at  any  time  thereafter,
according to the  best  information obtainable and
according  to the  form  prescribed.  To  the  tax
imposed upon the basis of such return, there shall
be added an  amount  equal to ten per cent of such
tax. [Such sum] THE TAX shall bear interest at the
rate of one [and one-fourth] per cent per month or
fraction thereof, from  the  due  date of such tax
until the date  of  payment.  No taxpayer shall be
subject to a  penalty  under  both subsections (a)
and (b) of  this  section  in relation to the same
tax period.
    Sec. 63. Subsection  (b)  of section 12-548 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) Except in  the case of a wilfully false or
fraudulent return with intent to evade the tax, no
assessment of additional  tax  shall be made after
the expiration of  more  than three years from the
date  of the  filing  of  a  return  or  from  the
original due date of a return, whichever is later.
If no return  has been filed as provided under the
provisions of this  chapter,  the commissioner may
make such return at any time thereafter, according
to the best  information  obtainable and according
to the form  prescribed.  To  the tax imposed upon
the basis of  such return, there shall be added an
amount equal to ten per cent of such tax, or fifty
dollars, whichever is  greater. [Such sum] THE TAX
shall  bear interest  at  the  rate  of  one  [and
one-fourth] per cent per month or fraction thereof
from the due  date  of  such  tax  to  the date of
payment. No person  shall  be subject to a penalty
under both this  subsection  and  section  12-547.
Where,  before  the   expiration   of  the  period
prescribed  herein  for   the   assessment  of  an
additional  tax,  a   taxpayer  has  consented  in
writing that such  period  may  be  extended,  the
amount  of  such   additional   tax   due  may  be
determined  at  any   time  within  such  extended
period. The period  so  extended  may  be  further
extended by subsequent  consents in writing before
the expiration of the extended period.
    Sec. 64. Subsection  (b)  of section 12-590 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) If any  company  has  not  made its return
within one month  after  the  time specified under
the provisions of  this  chapter, the commissioner
may  make  such  return  at  any  time  thereafter
according to the  best  information obtainable and
according  to the  form  prescribed.  To  the  tax
imposed upon the basis of such return, there shall
be added an  amount  equal to ten per cent of such
tax, or fifty  dollars,  whichever  is greater. No
taxpayer shall be  subject to a penalty under both
subsections  (a)  and   (b)  of  this  section  in
relation to the  same  tax  period. [Such sum] THE
TAX shall bear  interest  at  the rate of one [and
two-thirds]  per  cent   per   month  or  fraction
thereof, from the  due  date of such tax until the
date of payment.
    Sec. 65. Subsection  (b) of section 12-638d of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) Except in  the case of a wilfully false or
fraudulent return with intent to evade the tax, no
assessment of additional  tax  shall be made after
the expiration of  more  than three years from the
date  of the  filing  of  a  return  or  from  the
original due date of a return, whichever is later.
If no return  has been filed as provided under the
provisions of this  chapter,  the commissioner may
make such return at any time thereafter, according
to the best  information  obtainable and according
to the form  prescribed.  To  the tax imposed upon
the basis of  such return, there shall be added an
amount equal to ten per cent of such tax, or fifty
dollars, whichever is  greater. [Such sum] THE TAX
shall  bear interest  at  the  rate  of  one  [and
one-fourth] per cent per month or fraction thereof
from the due  date  of  such  tax  to  the date of
payment. No person  shall  be subject to a penalty
under both this  subsection  and  section 12-638c.
If, before the expiration of the period prescribed
herein for the  assessment of an additional tax, a
taxpayer has consented in writing that such period
may be extended, the amount of such additional tax
due may be  determined  at  any  time  within such
extended period. The  period  so  extended  may be
further extended by subsequent consents in writing
before the expiration of the extended period.
    Sec. 66. Subsection  (b)  of section 12-735 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) If any  person  has  not  made  his return
within three months after the time specified under
the provisions of  this  chapter, the commissioner
may  make such  return  at  any  time  thereafter,
according to the  best  information obtainable and
according  to the  form  prescribed.  To  the  tax
imposed upon the basis of such return, there shall
be added an  amount  equal to ten per cent of such
tax or fifty  dollars, whichever is greater. [Such
sum] THE TAX  shall  bear  interest at the rate of
one  [and  one-fourth]   per  cent  per  month  or
fraction thereof, from  the  due  date of such tax
until the date  of  payment.  No taxpayer shall be
subject to a  penalty  under  both subsections (a)
and (b) of  this  section  in relation to the same
tax period.
    Sec. 67. (NEW)  There is created a Connecticut
Taxpayer's Bill of  Rights  to  guarantee that the
rights,  privacy,  and   property  of  Connecticut
taxpayers are adequately safeguarded and protected
during tax assessment, collection, and enforcement
processes administered under  the  revenue laws of
this  state.  The  rights  afforded  taxpayers  to
assure  that  their   privacy   and  property  are
safeguarded and protected  during  tax  assessment
and collection are  available only insofar as they
are implemented in  other  parts  of  the  general
statutes or rules or regulations of the department
of  revenue services.  The  rights  so  guaranteed
Connecticut taxpayers in  the general statutes and
the departmental rules and regulations are:
    (1) The right  to  available  information  and
prompt,  accurate  responses   to   questions  and
requests for tax assistance.
    (2) The right  to  request  assistance  from a
taxpayer's rights advocate  of the department, who
shall   be  responsible   for   facilitating   the
resolution of taxpayer complaints and problems not
resolved   through   the   normal   administrative
channels  within  the  department,  including  any
taxpayer   complaints   regarding   unsatisfactory
treatment by department employees.
    (3) The right  to be represented or advised by
counsel or other  qualified representatives at any
time  in  administrative   interactions  with  the
department  and  the   right   to   have   audits,
inspection of records  and interviews conducted at
reasonable times and places.
    (4) The right  to  obtain simple, nontechnical
statements which explain the procedures, remedies,
and rights available  during  audit,  appeals, and
collection proceedings, including, but not limited
to, the rights pursuant to this Taxpayer's Bill of
Rights  and  the  right  to  be  provided  with  a
narrative description which  explains the basis of
audit changes, proposed  assessments,  assessments
and denials of  refunds;  identifies any amount of
tax, interest, or  penalty  due;  and  states  the
consequences of the  taxpayer's  failure to comply
with the notice.
    (5) The right  to  be  informed  of  impending
collection actions which  require  sale or seizure
of property or freezing of assets, except jeopardy
assessments, and the  right  to  at  least  thirty
days' notice in which to pay the liability or seek
further review.
    (6) The right  to  have  all  other collection
actions  attempted before  a  jeopardy  assessment
unless delay will endanger collection and, after a
jeopardy  assessment,  the   right   to   have  an
immediate review of the jeopardy assessment.
    (7) The right  to  seek review, through formal
or informal proceedings,  of any adverse decisions
relating  to  determinations   in   the  audit  or
collections process.
    (8)  The right  to  have  the  taxpayer's  tax
information  kept  confidential  unless  otherwise
specified by law.
    (9) The right  to  procedures  for  requesting
cancellation, release, or  modification  of  liens
filed by the  department  and  for requesting that
any lien which  is  filed  in error be so noted on
the lien cancellation  filed by the department, in
public notice and  in  notice to any credit agency
at the taxpayer's request.
    (10) The right to procedures which assure that
the individual employees of the department are not
paid, evaluated, or  promoted  on the basis of the
amount   of  assessments   or   collections   from
taxpayers.
    (11) The right  to  have  the department begin
and  complete  its   audits   in   a   timely  and
expeditious manner after notification of intent to
audit.
    Sec. 68. Subsection  (k)  of section 32-285 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (k) No commitments  for  new projects shall be
approved by the authority under this section on or
after July 1, [1994] 1996.
    Sec. 69. Section  42  of public act 93-382, as
amended by public  act  94-3,  is repealed and the
following is substituted in lieu thereof:
    There shall be allowed as a credit against the
tax imposed on  any  corporation under chapter 208
(1)  that  has   more   than   two  hundred  fifty
full-time, permanent employees  but  not more than
[five]   EIGHT   hundred    full-time,   permanent
employees, an amount equal to five per cent of the
amount spent by  the  corporation on machinery and
equipment acquired for and installed in a facility
in this state,  which  exceeds the amount spent by
such corporation during  the preceding income year
of the corporation  for  such  expenditures or (2)
that  has  not   more   than   two  hundred  fifty
full-time, permanent employees, an amount equal to
ten  per  cent   of   the   amount  spent  by  the
corporation on machinery  and  equipment  acquired
for and installed  in  a  facility  in this state,
which exceeds the amount spent by such corporation
during  the  preceding   taxable   year   of   the
corporation for such expenditures.
    Sec. 70. Section  54  of  public act 93-74, as
amended by section  15  of  public  act 93-332, is
repealed and the  following is substituted in lieu
thereof:
    (a) Every resident  individual,  as defined in
section 12-701, subject to AND REQUIRED TO PAY the
federal alternative minimum  tax  under Section 55
of  the  Internal   Revenue  Code  shall  pay,  in
addition to the  tax imposed under section 12-700,
the net Connecticut  minimum tax. THE TAX SHALL BE
THE DIFFERENCE COMPUTED  BY  SUBTRACTING  THE  TAX
IMPOSED UNDER SUBSECTION  (a)  OF  SECTION  12-700
FROM THE CONNECTICUT  MINIMUM  TAX, AS PROVIDED IN
SUBDIVISION  (26) OF  SUBSECTION  (a)  OF  SECTION
12-701, AS AMENDED  BY  SECTION  58  OF PUBLIC ACT
93-74 AND SECTION  72  OF THIS ACT. The provisions
of this subsection  shall apply to resident trusts
and estates, as  defined  in  said section 12-701,
and, wherever reference is made in this section to
resident  individuals,  such  reference  shall  be
construed to include  resident trusts and estates,
provided any reference  to a [resident's] RESIDENT
INDIVIDUAL'S  Connecticut  adjusted  gross  income
shall be construed,  in  the  case  of  a resident
trust or estate,  to  mean  the  resident trust or
estate's Connecticut taxable income.
    (b) Every nonresident  individual,  as defined
in section 12-701,  AS  AMENDED  BY  SECTION 58 OF
PUBLIC ACT 93-74  AND  SECTION  72  OF  THIS  ACT,
subject  to  AND   REQUIRED  TO  PAY  the  federal
alternative minimum tax  under  Section  55 of the
Internal Revenue Code  shall  pay,  in addition to
the tax imposed  under  section  12-700,  the  net
Connecticut minimum tax, as calculated herein. The
tax shall be  [a product of an amount equal to the
tax]  THE  DIFFERENCE   computed   [as   if   such
nonresident individual were  a resident individual
and then] BY  SUBTRACTING  THE  TAX  IMPOSED UNDER
SUBSECTION (b) OF  SECTION 12-700 FROM THE PRODUCT
OF   THE  NONRESIDENT   INDIVIDUAL'S   CONNECTICUT
MINIMUM TAX, AS  PROVIDED  IN  SUBDIVISION (26) OF
SUBSECTION (a) OF  SECTION  12-701,  AS AMENDED BY
SECTION 58 OF  PUBLIC  ACT 93-74 AND SECTION 72 OF
THIS ACT, multiplied  by a fraction, the numerator
of which is  the  [nonresident's] AMOUNT OF INCOME
ASSOCIATED  WITH  THE   NONRESIDENT   INDIVIDUAL'S
adjusted federal tentative  minimum  tax  THAT  IS
derived from or connected with sources within this
state,  as such  phrase  is  defined  in  sections
12-711 and 12-713, and the denominator of which is
the [nonresident's] AMOUNT  OF  INCOME  ASSOCIATED
WITH THE NONRESIDENT INDIVIDUAL'S adjusted federal
tentative minimum tax  THAT  IS  DERIVED  FROM  OR
CONNECTED WITH SOURCES  WITHIN  AND  WITHOUT  THIS
STATE. The provisions  of  this  subsection  shall
apply  to  nonresident   trusts  and  estates,  as
defined  in said  section  12-701,  and,  wherever
reference is made  in  this section to nonresident
individuals, such reference  shall be construed to
include nonresident trusts  and  estates, provided
any  reference to  a  [nonresident's]  NONRESIDENT
INDIVIDUAL'S  Connecticut  adjusted  gross  income
shall be construed,  in  the case of a nonresident
trust or estate,  to mean the nonresident trust or
estate's Connecticut taxable income.
    (c) Every part-year  resident  individual,  as
defined in SAID  section  12-701,  subject  to AND
REQUIRED TO PAY  the  federal  alternative minimum
tax under Section  55 of the Internal Revenue Code
shall pay, in  addition  to  the tax imposed under
section 12-700, the  net  Connecticut minimum tax,
as calculated herein.  The tax shall be [a product
of an amount  equal  to  the  tax]  THE DIFFERENCE
computed [as if such part-year resident individual
were   a  resident   individual   and   then]   BY
SUBTRACTING THE TAX  IMPOSED  UNDER SUBSECTION (c)
OF  SECTION  12-700   FROM   THE  PRODUCT  OF  THE
PART-YEAR   RESIDENT   INDIVIDUAL'S    CONNECTICUT
MINIMUM TAX, AS  PROVIDED  IN  SUBDIVISION (26) OF
SUBSECTION (a) OF  SECTION  12-701,  AS AMENDED BY
SECTION 58 OF  PUBLIC  ACT 93-74 AND SECTION 72 OF
THIS ACT, multiplied  by a fraction, the numerator
of which is  the  [part-year resident's] AMOUNT OF
INCOME  ASSOCIATED  WITH  THE  PART-YEAR  RESIDENT
INDIVIDUAL'S  adjusted federal  tentative  minimum
tax derived from  or connected with sources within
this state, as  such  phrase is defined in section
12-717,  and  the  denominator  of  which  is  the
[part-year resident's] AMOUNT OF INCOME ASSOCIATED
WITH THE PART-YEAR  RESIDENT INDIVIDUAL'S adjusted
federal tentative minimum tax THAT IS DERIVED FROM
OR CONNECTED WITH  SOURCES WITHIN AND WITHOUT THIS
STATE. For the  purposes  of such calculation, the
provisions  of  subsection  (c)  of  said  section
12-717  providing for  the  accrual  of  items  of
income, gain, loss or deduction shall apply to the
calculation of the part-year [resident's] RESIDENT
INDIVIDUAL'S  adjusted federal  tentative  minimum
tax. The provisions of this subsection shall apply
to part-year resident  trusts,  as defined in said
section 12-701, and, wherever reference is made in
this section to  part-year  resident  individuals,
such  reference  shall  be  construed  to  include
part-year resident trusts,  provided any reference
to a part-year  [resident's] RESIDENT INDIVIDUAL'S
Connecticut  adjusted  gross   income   shall   be
construed, in the  case  of  a  part-year resident
trust,  to mean  the  part-year  resident  trust's
Connecticut taxable income.
    (d) (1) For  taxable  years  beginning  on  or
after January 1,  1994,  a credit shall be allowed
as provided herein  in  an  amount  equal  to  the
excess, if any,  of  the  adjusted net Connecticut
minimum tax imposed  for  all  prior taxable years
beginning on or  after  January  1, 1993, over the
amount allowable as a credit under this subsection
for such prior taxable years.
    (2) The credit  allowable  for  a taxable year
under this subsection is limited to the amount, if
any, by which the tax imposed under section 12-700
exceeds the Connecticut  minimum  tax,  DETERMINED
WITHOUT REGARD TO  SUBPARAGRAPH (B) OF SUBDIVISION
(26)  OF SUBSECTION  (a)  OF  SECTION  12-701,  AS
AMENDED BY SECTION  58  OF  PUBLIC  ACT  93-74 AND
SECTION 72 OF  THIS  ACT,  AND  DETERMINED WITHOUT
REGARD TO WHETHER  THE  INDIVIDUAL OR THE TRUST OR
ESTATE IS SUBJECT  TO  AND  REQUIRED  TO  PAY  THE
FEDERAL ALTERNATIVE MINIMUM  TAX  UNDER SECTION 55
OF THE INTERNAL  REVENUE  CODE  FOR  THAT  TAXABLE
YEAR.
    (e) A resident  or part-year resident shall be
allowed a credit  against  the  tax  otherwise due
under this section  in  the  amount of any similar
tax imposed on such resident or part-year resident
for the taxable  year  by  another  state  of  the
United States or  a  political subdivision thereof
or the District  of  Columbia  or  any province of
Canada on income  which  is  derived  from sources
therein and which  is  also  subject  to tax under
this section. In  the  case  of  a  resident,  the
credit provided under  this  subsection  shall not
exceed the proportion  of  the  tax  otherwise due
under  this  section   that   the  amount  of  the
taxpayer's adjusted federal  tentative minimum tax
derived from or  connected  with  sources  in  the
other taxing jurisdiction,  as  the phrase is used
in  section  12-704,   bears   to  the  taxpayer's
adjusted federal tentative  minimum  tax.  In  the
case of a  part-year resident, the credit provided
under  this  subsection   shall   not  exceed  the
proportion of the  tax  otherwise  due  during the
period  of  residency   that  the  amount  of  the
taxpayer's adjusted federal  tentative minimum tax
derived from or  connected  with  sources  in  the
other taxing jurisdiction,  as  the phrase is used
in  said section  12-704,  during  the  period  of
residency  bears  to   such   taxpayer's  adjusted
federal tentative minimum tax during the period of
residency, nor shall  the  allowance of the credit
provided  under this  subsection  reduce  the  tax
otherwise due under this section to an amount less
than  what would  have  been  due  if  the  amount
subject  to  similar   taxation   by   such  other
jurisdiction were excluded  in  the calculation of
the adjusted federal tentative minimum tax.
    Sec. 71. Subdivision (24) of subsection (a) of
section 12-701 of the general statutes, as amended
by section 58 of public act 93-74, is repealed and
the following is substituted in lieu thereof:
    (24) "Adjusted federal  tentative minimum tax"
OF AN INDIVIDUAL  means  SUCH INDIVIDUAL'S federal
tentative  minimum tax  or,  in  the  case  of  [a
taxpayer] AN INDIVIDUAL whose Connecticut adjusted
gross income includes  modifications  described in
subparagraph  (A)(i),  (A)(ii),  (A)(v),  (A)(vi),
(A)(vii)  or  (A)(viii)  of  subdivision  (20)  of
subsection (a) of  this  section  or  subparagraph
(B)(i),   (B)(ii),  (B)(v),   (B)(vi),   (B)(vii),
(B)(viii), (B)(ix) or  (B)(x)  of subdivision (20)
of subsection (a) of this section, the amount that
would have been  the federal tentative minimum tax
if such tax  were  calculated by including, TO THE
EXTENT  NOT  INCLUDABLE   IN  FEDERAL  ALTERNATIVE
MINIMUM   TAXABLE   INCOME,    the   modifications
described in subparagraph (A)(i), (A)(ii), (A)(v),
(A)(vi), (A)(vii) or (A)(viii) of subdivision (20)
of  subsection  (a)  of  this  section,  [and]  by
excluding, TO THE  EXTENT  INCLUDABLE  IN  FEDERAL
ALTERNATIVE    MINIMUM   TAXABLE    INCOME,    the
modifications  described in  subparagraph  (B)(i),
(B)(ii),  (B)(v),  (B)(vi),  (B)(vii),  (B)(viii),
(B)(ix)  or  (B)(x)   of   subdivision   (20)   of
subsection (a) of  this section, AND BY EXCLUDING,
TO THE EXTENT  INCLUDABLE  IN  FEDERAL ALTERNATIVE
MINIMUM TAXABLE INCOME, THE AMOUNT OF ANY INTEREST
INCOME OR EXEMPT-INTEREST DIVIDENDS, AS DEFINED IN
SECTION 852(b)(5) OF  THE  INTERNAL  REVENUE CODE,
FROM OBLIGATIONS THAT  ARE  ISSUED BY OR ON BEHALF
OF  THE  STATE   OF   CONNECTICUT,  ANY  POLITICAL
SUBDIVISION  THEREOF, OR  PUBLIC  INSTRUMENTALITY,
STATE OR LOCAL  AUTHORITY,  DISTRICT,  OR  SIMILAR
PUBLIC ENTITY THAT  IS  CREATED  UNDER THE LAWS OF
THE STATE OF CONNECTICUT, OR FROM OBLIGATIONS THAT
ARE ISSUED BY  OR  ON  BEHALF  OF ANY TERRITORY OR
POSSESSION OF THE  UNITED  STATES,  ANY  POLITICAL
SUBDIVISION OF SUCH  TERRITORY  OR  POSSESSION, OR
PUBLIC  INSTRUMENTALITY,  AUTHORITY,  DISTRICT  OR
SIMILAR  PUBLIC  ENTITY   OF   SUCH  TERRITORY  OR
POSSESSION,  THE  INCOME  WITH  RESPECT  TO  WHICH
TAXATION BY ANY  STATE  IS  PROHIBITED  BY FEDERAL
LAW. IF SUCH  INDIVIDUAL  IS  A  BENEFICIARY  OF A
TRUST OR ESTATE,  THEN, IN CALCULATING HIS FEDERAL
TENTATIVE  MINIMUM TAX,  HIS  FEDERAL  ALTERNATIVE
TAXABLE INCOME SHALL BE INCREASED OR DECREASED, AS
THE  CASE MAY  BE,  BY  THE  NET  AMOUNT  OF  SUCH
INDIVIDUAL'S    PROPORTIONATE   SHARE    OF    THE
CONNECTICUT  FIDUCIARY  ADJUSTMENT   RELATING   TO
MODIFICATIONS THAT ARE DESCRIBED IN, TO THE EXTENT
NOT  INCLUDABLE  IN  FEDERAL  ALTERNATIVE  MINIMUM
TAXABLE  INCOME,  SUBPARAGRAPH   (A)(i),  (A)(ii),
(A)(v),   (A)(vi),  (A)(vii)   OR   (A)(viii)   OF
SUBDIVISION (20) OF SUBSECTION (a) OF THIS SECTION
OR,   TO  THE   EXTENT   INCLUDABLE   IN   FEDERAL
ALTERNATIVE MINIMUM TAXABLE  INCOME,  SUBPARAGRAPH
(B)(i),   (B)(ii),  (B)(v),   (B)(vi),   (B)(vii),
(B)(viii), (B)(ix) OR  (B)(x)  OF SUBDIVISION (20)
OF SUBSECTION (a) OF THIS SECTION.
    Sec.  72.  Subdivisions   (26)   and  (27)  of
subsection (a) of  section  12-701  of the general
statutes, as amended  by  section 58 of public act
93-74,  are  repealed   and   the   following   is
substituted in lieu thereof:
    (26)   "Connecticut   minimum    tax"    means
[twenty-three] THE LESSER OF (A) NINETEEN per cent
of the adjusted  federal tentative minimum tax, AS
DEFINED IN SUBDIVISION  (24)  OF SUBSECTION (a) OF
THIS SECTION, AS  AMENDED  BY SECTION 58 OF PUBLIC
ACT 93-74 AND  SECTION 71 OF THIS ACT, OR (B) FIVE
PER  CENT  OF  THE  ADJUSTED  FEDERAL  ALTERNATIVE
MINIMUM TAXABLE INCOME,  AS  DEFINED IN SECTION 71
OF THIS ACT.
    (27) "Adjusted net  Connecticut  minimum  tax"
means  (A)  IF  THE  CONNECTICUT  MINIMUM  TAX  IS
CALCULATED UNDER SUBPARAGRAPH  (A)  OF SUBDIVISION
(26) OF THIS  SUBSECTION, AS AMENDED BY SECTION 58
OF PUBLIC ACT  93-74,  the  excess, if any, of the
net Connecticut minimum  tax, over the amount that
would have been  the  net  Connecticut minimum tax
provided the adjustments  and  items of preference
specified in subsection  (d)  of Section 53 of the
Internal Revenue Code had been used in determining
the net Connecticut  minimum  tax,  OR  (B) IF THE
CONNECTICUT  MINIMUM  TAX   IS   CALCULATED  UNDER
SUBPARAGRAPH  (B)  OF  SUBDIVISION  (26)  OF  THIS
SUBSECTION, AS AMENDED BY SECTION 58 OF PUBLIC ACT
93-74 AND THIS  SECTION,  THEN  THE PRODUCT OF THE
EXCESS THAT IS  DESCRIBED  IN  SUBPARAGRAPH (A) OF
THIS SUBDIVISION AND  THAT  IS  DETERMINED WITHOUT
REGARD TO SAID  SUBPARAGRAPH  (B)  OF  SUBDIVISION
(26) OF THIS SUBSECTION, MULTIPLIED BY A FRACTION,
THE NUMERATOR OF  WHICH IS THE CONNECTICUT MINIMUM
TAX AS CALCULATED  UNDER  SAID SUBPARAGRAPH (B) OF
SUBDIVISION  (26)  OF   THIS  SUBSECTION  AND  THE
DENOMINATOR OF WHICH  IS  THE  CONNECTICUT MINIMUM
TAX AS CALCULATED  UNDER  SAID SUBPARAGRAPH (A) OF
SUBDIVISION (26) OF THIS SUBSECTION.
    Sec. 73. Subsection  (a)  of section 12-701 of
the general statutes,  as  amended by sections 38,
39, 57 and  58  of public act 93-74 and section 27
of   public   93-332,   is   amended   by   adding
subdivisions (28), (29), (30) and (31) as follows:
    (NEW) (28) "Adjusted federal tentative minimum
tax"  of a  trust  or  estate  means  its  federal
tentative minimum tax  or,  in the case of a trust
or  estate  whose   Connecticut   taxable   income
includes modifications described  in  subparagraph
(A), (B), (D), (E), (F) or (G) of subdivision (10)
of subsection (a)  of this section or subparagraph
(a), (b), (c), (d), (e), (f) or (g) of subdivision
(10) of subsection (a) of this section, the amount
that would have been the federal tentative minimum
tax if such  tax  were calculated by including, to
the extent not  includable  in federal alternative
minimum   taxable   income,    the   modifications
described in subparagraph  (A), (B), (D), (E), (F)
or (G) of  subdivision  (10)  of subsection (a) of
this  section,  by   excluding,   to   the  extent
includable in federal  alternative minimum taxable
income,    the    modifications    described    in
subparagraph (a), (b),  (c),  (d), (e), (f) or (g)
of subdivision (10)  of  subsection  (a)  of  this
section,  and  by   excluding,   to   the   extent
includable in federal  alternative minimum taxable
income,  the amount  of  any  interest  income  or
exempt-interest dividends, as  defined  in Section
852(b)(5)  of  the  Internal  Revenue  Code,  from
obligations that are issued by or on behalf of the
state of Connecticut,  any  political  subdivision
thereof, or public instrumentality, state or local
authority, district, or similar public entity that
is  created  under   the  laws  of  the  state  of
Connecticut, or from  obligations  that are issued
by or on  behalf of any territory or possession of
the Untied States,  any  political  subdivision of
such   territory   or    possession,   or   public
instrumentality,  authority, district  or  similar
public entity of such territory of possession, the
income with respect to which taxation by any state
is prohibited by  federal  law.  If  such trust or
estate is itself  a  beneficiary  of  a  trust  or
estate,  then, for  purposes  of  calculating  its
adjusted  federal  alternative  minimum  tax,  its
federal alternative minimum  taxable  income shall
also be increased  or  decreased,  as the case may
be, by the  net  amount  of such trust or estate's
proportionate share of  the  Connecticut fiduciary
adjustment  relating  to  modifications  that  are
described, to the extent not includable in federal
alternative    minimum    taxable    income,    in
subparagraph (A), (B),  (D),  (E),  (F)  or (G) of
subdivision (10) of subsection (a) of this section
or to the extent includable in federal alternative
minimum  taxable income,  subparagraph  (a),  (b),
(c), (d), (e),  (f)  or (g) of subdivision (10) of
subsection (a) of this section.
    (NEW)   (29)  "Federal   alternative   minimum
taxable income" means  alternative minimum taxable
income, as defined  in  Section  55(b)(2)  of  the
Internal Revenue Code.
    (NEW)  (30)  "Adjusted   federal   alternative
minimum taxable income" of an individual means his
federal alternative minimum  taxable income or, in
the  case  of   an  individual  whose  Connecticut
adjusted  gross  income   includes   modifications
described in subparagraph (A)(i), (A)(ii), (A)(v),
(A)(vi), (A)(vii) or (A)(viii) or subdivision (20)
of subsection (a)  of this section or subparagraph
(B)(i),   (B)(ii),  (B)(v),   (B)(vi),   (B)(vii),
(B)(viii), (B)(ix) or  (B)(x)  of subdivision (20)
of subsection (a) of this section, the amount that
would have been  the  federal  alternative minimum
taxable income if  such  amount were calculated by
including, to the extent not includable in federal
alternative    minimum   taxable    income,    the
modifications  described in  subparagraph  (A)(i),
(A)(ii), (A)(v), (A)(vi), (A)(vii) or (A)(viii) of
subdivision  (20)  of   subsection   (a)  of  this
section, by excluding, to the extent includable in
federal alternative minimum  taxable  income,  the
modifications  described in  subparagraph  (B)(i),
(B)(ii),  (B)(v),  (B)(vi),  (B)(vii),  (B)(viii),
(B)(ix)  or  (B)(x)   of   subdivision   (20)   of
subsection (a) of  this section, and by excluding,
to the extent  includable  in  federal alternative
minimum taxable income, the amount of any interest
income or exempt-interest dividends, as defined in
Section 852(b)(5) of  the  Internal  Revenue Code,
from obligations that  are  issued by or on behalf
of  the  state   of   Connecticut,  any  political
subdivision  thereof, or  public  instrumentality,
state or local  authority,  district,  or  similar
public entity that  is  created  under the laws of
the state of Connecticut, or from obligations that
are issued by  or  on  behalf  of any territory or
possession of the  United  States,  any  political
subdivision of such  territory  or  possession, or
public  instrumentality,  authority,  district  or
similar  public  entity   of   such  territory  of
possession,  the  income  with  respect  to  which
taxation by any  state  is  prohibited  by federal
law. If such  individual  is  a  beneficiary  of a
trust or estate, then, for purposes of calculating
his adjusted federal  alternative  minimum taxable
income, his federal  alternative  minimum  taxable
income shall also  be  increased  or decreased, as
the  case may  be,  by  the  net  amount  of  such
individual's    proportionate   share    of    the
Connecticut  fiduciary  adjustment   relating   to
modifications  to the  extent  not  includable  in
federal alternative minimum  taxable  income, that
are  described  in  subparagraph  (A)(i)  (A)(ii),
(A)(v),   (A)(vi),  (A)(vii)   or   (A)(viii)   or
subdivision (20) of subsection (a) of this section
or to the extent includable in federal alternative
minimum  taxable  income,   subparagraph   (B)(i),
(B)(ii),  (B)(v),  (B)(vi),  (B)(vii),  (B)(viii),
(B)(ix)  or  (B)(x)   of   subdivision   (20)   of
subsection (a) of this section.
    (NEW)  (31)  "Adjusted   federal   alternative
minimum taxable income" of a trust or estate means
its federal alternative minimum taxable income or,
in the case of a trust or estate whose Connecticut
taxable income includes modifications described in
subparagraph (A), (B),  (D),  (E),  (F)  or (G) of
subdivision (10) of subsection (a) of this section
or subparagraph (a),  (b),  (c),  (d), (e), (f) or
(g) of subdivision  (10) of subsection (a) of this
section,  the amount  that  would  have  been  the
federal alternative minimum taxable income if such
amount were calculated by including, to the extent
not  includable  in  federal  alternative  minimum
taxable  income, the  modifications  described  in
subparagraph (A), (B),  (D),  (E),  (F)  or (G) of
subdivision  (10)  of   subsection   (a)  of  this
section, by excluding, to the extent includable in
federal alternative minimum  taxable  income,  the
modifications described in  subparagraph (a), (b),
(c), (d), (e),  (f)  or (g) of subdivision (10) of
subsection (a) of  this section, and by excluding,
to the extent  includable  in  federal alternative
minimum taxable income, the amount of any interest
income or exempt-interest dividends, as defined in
Section 852(b)(5) of  the  Internal  Revenue Code,
from obligations that  are  issued by or on behalf
of  the  state   of   Connecticut,  any  political
subdivision  thereof, or  public  instrumentality,
state or local  authority,  district,  or  similar
public entity that  is  created  under the laws of
the state of Connecticut, or from obligations that
are issued by  or  on  behalf  of any territory or
possession of the  Untied  States,  any  political
subdivision of such  territory  or  possession, or
public  instrumentality,  authority,  district  or
similar  public  entity   of   such  territory  of
possession,  the  income  with  respect  to  which
taxation by any  state  is  prohibited  by federal
law.  If  such   trust   or  estate  is  itself  a
beneficiary  of  a  trust  or  estate,  then,  for
purposes  of  calculating   its  adjusted  federal
alternative minimum taxable  income,  its  federal
alternative minimum taxable  income  shall also be
increased or decreased, as the case may be, by the
net amount of such trust or estate's proportionate
share  of  the  Connecticut  fiduciary  adjustment
relating to modifications  that  are described, to
the extent not  includable  in federal alternative
minimum taxable income,  in subparagraph (A), (B),
(D),  (E), (F)  or  (G)  of  subdivision  (10)  of
subsection (a) of  this  section, or to the extent
includable in federal  alternative minimum taxable
income, subparagraph (a),  (b), (c), (d), (e), (f)
or (g) of  subdivision  (10)  of subsection (a) of
this section.
    Sec. 74. Subdivision  (4) of subsection (a) of
section 12-701 of the general statutes, as amended
by section 27  of  public  act 93-332, is repealed
and the following is substituted in lieu thereof:
    (4) "Resident trust  or  estate" means (A) the
estate of a  decedent who at the time of his death
was a resident  of this state, (B) the estate of a
person who, at  the time of commencement of a case
under Title 11  of  the  United States Code, was a
resident of this  state, (C) a trust, or a portion
of a trust,  consisting of property transferred by
will of a  decedent  who  at the time of his death
was a resident  of this state, and (D) a trust, or
a portion of  a  trust, consisting of the property
of (i) a  person  who was a resident of this state
at the time  the  property  was transferred to the
trust if the  trust  was  then irrevocable, (ii) a
person who, if the trust was revocable at the time
the property was transferred to the trust, and has
not  subsequently  become   irrevocable,   was   a
resident of this  state  at  the time the property
was transferred to  the  trust  or  (iii) a person
who, if the  trust was revocable when the property
was transferred to  the  trust  but  the trust has
subsequently become irrevocable, was a resident of
this  state  at   the   time   the   trust  became
irrevocable. For purposes  of this chapter, if any
trust or portion  of  a  trust, other than a trust
created by the will of a decedent, has one or more
nonresident   noncontingent   beneficiaries,   the
Connecticut  taxable  income   of  the  trust,  as
defined in subdivision  (9)  of  this  subsection,
shall  be modified  as  follows:  The  Connecticut
taxable income of  the  trust  shall be the sum of
all such income  derived  from  or  connected with
sources within this state and that portion of such
income derived from  or  connected  with all other
sources which is  derived  by applying to all such
income derived from  or  connected  with all other
sources a fraction  the  numerator of which is the
number of resident noncontingent beneficiaries and
the denominator of  which  is  the total number of
noncontingent  beneficiaries.  FOR   PURPOSES   OF
SECTION 54 OF  PUBLIC  ACT  93-74,  AS  AMENDED BY
SECTION 15 OF  PUBLIC ACT 93-332 AND SECTION 70 OF
THIS ACT, IF  ANY  TRUST  OR  PORTION  OF A TRUST,
OTHER THAN A  TRUST  CREATED  BY  THE  WILL  OF  A
DECEDENT,   HAS   ONE    OR    MORE    NONRESIDENT
NONCONTINGENT BENEFICIARIES, ITS  ADJUSTED FEDERAL
ALTERNATIVE MINIMUM TAXABLE  INCOME, AS DEFINED IN
SECTION 70 OF  THIS  ACT,  SHALL  BE  MODIFIED  AS
FOLLOWS: THE ADJUSTED  FEDERAL ALTERNATIVE MINIMUM
TAXABLE INCOME OF  THE  TRUST  SHALL BE THE SUM OF
ALL SUCH INCOME  DERIVED  FROM  OR  CONNECTED WITH
SOURCES WITHIN THIS STATE AND THAT PORTION OF SUCH
INCOME DERIVED FROM  OR  CONNECTED  WITH ALL OTHER
SOURCES WHICH IS  DERIVED  BY APPLYING TO ALL SUCH
INCOME DERIVED FROM  OR  CONNECTED  WITH ALL OTHER
SOURCES A FRACTION,  THE NUMERATOR OF WHICH IS THE
NUMBER OF RESIDENT NONCONTINGENT BENEFICIARIES AND
THE DENOMINATOR OF  WHICH  IS  THE TOTAL NUMBER OF
NONCONTINGENT  BENEFICIARIES.  As   used  in  this
subdivision, "noncontingent beneficiary"  means  a
beneficiary whose interest  is  not  subject  to a
condition precedent.
    Sec. 75. Subsection  (34) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (34) Sales of  and  the  storage, use or other
consumption  of  machinery   used  directly  in  a
manufacturing   production   process.   The   word
"machinery" as used  in  this subsection means the
basic  machine  itself,   including   all  of  its
component parts and  contrivances,  such as belts,
pulleys,   shafts,   moving    parts,    operating
structures and all  equipment  or  devices used or
required  to  control,  regulate  or  operate  the
machinery. [, but  excluding]  FOR THE PURPOSES OF
THIS  SUBSECTION, "MACHINERY"  INCLUDES  MACHINERY
USED EXCLUSIVELY TO CONTROL OR MONITOR AN ACTIVITY
OCCURRING  DURING  THE   MANUFACTURING  PRODUCTION
PROCESS AND MACHINERY  USED EXCLUSIVELY DURING THE
MANUFACTURING  PRODUCTION  PROCESS   TO   TEST  OR
MEASURE MATERIALS AND  PRODUCTS BEING MANUFACTURED
BUT SHALL NOT  INCLUDE  office  equipment  or data
processing   equipment  other   than   numerically
controlled   machinery  used   directly   in   the
manufacturing process.
    Sec. 76. Subsection  (1)  of section 12-416 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (1) (A) If  any person fails to make a return,
the commissioner shall  make  an  estimate  of the
amount of the  gross receipts of the person or, as
the case may  be, of the amount of the total sales
price of services  or  tangible  personal property
sold or purchased  by  the  person,  the  storage,
acceptance, consumption or  other  use of which in
this state is subject to the use tax. The estimate
shall be made for the period or periods in respect
to which the  person  failed  to make a return and
shall be based  upon  any  information which is in
the commissioner's possession or may come into his
possession. To the  tax  imposed upon the basis of
such estimate, there  shall  be  added  an  amount
equal to fifteen  per  cent  of such tax, or fifty
dollars, whichever is  greater. No person shall be
subject to a  penalty  under both this section and
section 12-419. [One  or  more  assessments may be
made for one  or  for  more  than  one period] THE
COMMISSIONER MAY NOT MAKE MORE THAN ONE ASSESSMENT
FOR A TAX  PERIOD  FOR  WHICH A TAX RETURN HAS NOT
BEEN FILED. (B)  UPON  THE ADOPTION OF REGULATIONS
IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER 54 TO
IMPLEMENT THE PROVISIONS  OF  THIS  SECTION AND TO
DEFINE THE TERMS  "IMPERFECT"  AND  "INCOMPLETE IN
ANY MATERIAL RESPECT", THE COMMISSIONER MAY MAKE A
SINGLE  SUPPLEMENTAL  ASSESSMENT,   UPON   WRITTEN
FINDING  BY  THE   COMMISSIONER  THAT  AN  EARLIER
ASSESSMENT  IS  IMPERFECT  OR  INCOMPLETE  IN  ANY
MATERIAL RESPECT.
    Sec. 77. (NEW)  At the end of each fiscal year
commencing with the fiscal year ending on June 30,
1995, the comptroller  is  authorized to record as
revenue for such  fiscal  year  the  amount of any
payments received from  any Indian tribe, pursuant
to a memorandum  of  understanding,  provided such
payment is received by the treasurer no later than
the last day of July immediately following the end
of such fiscal year.
    Sec.  78.  Section   12-428   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (1) Any person  required under this chapter to
pay any tax,  or required under this chapter or by
regulations thereunder to  make a return, keep any
record or supply  any  information,  who  wilfully
fails to pay such tax, make such return, keep such
records or supply  such  information,  at the time
required by law,  shall,  in addition to any other
penalty provided by  law,  be  fined not more than
one thousand dollars  or  imprisoned not more than
one  year  or  both.  As  used  in  this  section,
"person" includes any  officer  or  employee  of a
corporation,  or  a   member   or  employee  of  a
partnership under a  duty  to  pay  such tax, make
such return, keep  such  records  or  supply  such
information.
    (2)  Any  person   who  wilfully  delivers  or
discloses to the  commissioner  or  his authorized
agent  any list,  return,  account,  statement  or
other document, known  by  him to be fraudulent or
false in any  material  matter, shall, in addition
to any other penalty provided by law, be fined not
more than five  thousand dollars or imprisoned not
more than FIVE  YEARS  NOR  LESS  THAN one year or
both. No person  shall  be charged with an offense
under both subsections (1) and (2) of this section
in relation to the same tax period but such person
may  be  charged  and  prosecuted  for  both  such
offenses upon the same information.
    (3)  Any person  who  knowingly  violates  any
provision  of this  chapter  for  which  no  other
penalty is provided,  shall be fined not more than
one thousand dollars  or  imprisoned not more than
one year or both for each offense.
    Sec. 79. (NEW)  (a)  Any  person, other than a
trust or estate,  subject to the tax under chapter
229 of the  general statutes, for any taxable year
shall be entitled  to  a credit in determining the
amount of tax liability under said chapter 229 for
the amount of  property  tax,  as  defined in this
section, actually paid  by  that  person  on  that
person's  motor  vehicle.   Except   as  otherwise
provided in subsection  (b)  of  this section, the
credit  allowed  under   the  provisions  of  this
section shall be  twenty  per cent of the property
tax  paid  during   the  taxpayer's  taxable  year
commencing during 1997,  forty  per  cent  of  the
property tax paid  during  the  taxpayer's taxable
year commencing during 1998, sixty per cent of the
property  tax  for   the   tax   paid  during  the
taxpayer's taxable year  commencing  during  1999,
eighty per cent  of  the  property tax paid during
the taxpayer's taxable  year  commencing 2000, and
one hundred per  cent  of  the  property  tax paid
during  the  taxpayer's  taxable  year  commencing
2001. No credit  shall  be  allowable for property
taxes paid with  respect  to  an  assessment  year
beginning prior to October 1, 1996.
    (b) For the purposes of this section "property
tax" means the  amount  of  property  tax actually
paid to a  Connecticut  political subdivision by a
taxpayer on the taxpayer's motor vehicle, provided
such amount is  limited as follows: (1) If the net
assessed value of  such motor vehicle is less than
or  equal  to   fifteen   thousand   dollars,   no
limitation, (2) if  the net assessed value of such
motor vehicle is  greater  than  fifteen  thousand
dollars but less  than  or  equal  to  twenty-five
thousand dollars the  amount  shall  be limited to
the amount of  property  tax  on the first fifteen
thousand dollars of  net assessed value plus fifty
per cent of  the property tax on the amount of net
assessed value over  fifteen  thousand dollars but
less  than  or   equal   to  twenty-five  thousand
dollars, (3) if  the  net  assessed  value of such
motor vehicle is greater than twenty-five thousand
dollars the amount  shall be limited to the amount
of property tax  on  the  first  fifteen  thousand
dollars of net  assessed value plus fifty per cent
of the property  tax on the amount of net assessed
value over fifteen  thousand dollars but less than
or equal to twenty-five thousand dollars, provided
no credit shall be allowed for the property tax on
the amount of  net assessed value over twenty-five
thousand  dollars, and  "motor  vehicle"  means  a
motor vehicle, as  defined  in section 14-1 of the
general statutes which is privately owned.
    (c) The credit allowed under the provisions of
this section shall  be  available  for  any person
leasing a motor  vehicle  pursuant  to  a  written
agreement for a  term  of more than one year. Such
lessee  shall  be   entitled   to  the  credit  in
accordance with the provisions of this section for
the taxes actually paid by the lessor or lessee on
such  leased  vehicle,  provided  the  lessee  was
lawfully in possession  of  the  motor  vehicle at
such time when  the  taxes  first  became due. The
lessor shall provide the lessee with documentation
establishing,   to   the   satisfaction   of   the
commissioner of revenue  services,  the  amount of
property tax paid  during the time period in which
the lessee was lawfully in possession of the motor
vehicle. The lessor of the motor vehicle shall not
be entitled to  a  credit  under the provisions of
this section.
    (d) The commissioner  of  revenue services may
prescribe a table  for  determining  the amount of
credit allowable under this section.
    (e) The amount of tax due pursuant to sections
12-705 and 12-722 of the general statutes shall be
calculated without regard to this credit.
    Sec. 80. Section  32  of  public act 94-175 is
repealed and the  following is substituted in lieu
thereof:
    This act shall  take  effect  from its passage
except that sections  22,  24  to  26,  inclusive,
shall be applicable to sales on and after April 1,
1994, and sections  23  and  31  shall take effect
[July 1, 1994]  JANUARY  1,  1995,  and section 23
shall be applicable  to  sales  on  and after that
date.
    Sec.  81.  Section   12-233   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) The commissioner shall, (1) in the case of
a  return  on  which  an  operating  loss  is  not
reported, within three  years  after  the due date
for the filing  of  such  return  or  within three
years after the  date  on  which  such  return was
received by him,  whichever  period expires later,
or (2) in  the  case  of  a  return  on  which  an
operating loss is  reported,  within  three  years
after the due  date  or the date of receipt by the
commissioner, whichever period  expires  later, of
the return on  which  a carry-over of such loss is
fully utilized or  deemed  fully  utilized because
such loss is  not  available  for deduction in any
subsequent income year,  examine  it  and, in case
any error is disclosed by such examination, shall,
within thirty days  after  such disclosure, notify
the taxpayer thereof.  When  it  appears  that any
part of the  deficiency  for  which  a  deficiency
assessment  is  made   is  due  to  negligence  or
intentional disregard of  the  provisions  of this
part or regulations  promulgated thereunder, there
shall be imposed  a  penalty equal to ten per cent
of the amount  of  such  deficiency assessment, or
fifty  dollars,  whichever  is  greater.  When  it
appears that any  part of the deficiency for which
a deficiency assessment is made is due to fraud or
intent to evade  the  provisions  of  this part or
regulations promulgated thereunder, there shall be
imposed a penalty equal to twenty-five per cent of
the  amount  of  such  deficiency  assessment.  No
taxpayer shall be subject to more than one penalty
under this section  in  relation  to  the same tax
period. Any decision rendered by any federal court
holding that a  taxpayer  has  filed  a fraudulent
return with the Director of Internal Revenue shall
subject the taxpayer  to  the  penalty  imposed by
this  section without  the  necessity  of  further
proof thereof, except  when  it  can be shown that
the return to  the  state  so  differed  from  the
return to the  federal  government  as to afford a
reasonable presumption that the attempt to defraud
did not extend  to the return to the state. Within
thirty days of  the  mailing  of  such notice, the
taxpayer shall pay to the commissioner, in cash or
by check, draft  or money order drawn to the order
of  the  commissioner  of  revenue  services,  any
additional amount of  tax  shown  to be due by the
corrected return or  shall  be  paid  by the state
treasurer,  upon order  of  the  comptroller,  any
amount  shown to  be  due  it  by  such  corrected
return. The failure of the taxpayer to receive any
timely  mailed notice  required  by  this  section
shall not relieve him of the obligation to pay the
tax assessed under  the  terms of this part or any
interest or penalties  thereon.  When,  before the
expiration of the  time prescribed in this section
for  the  examination   of   the   return  or  the
assessment of the  tax,  both the commissioner and
the taxpayer have  consented  in  writing  to such
examination or assessment  after  such  time,  the
return may be examined and the tax may be assessed
at any time  prior to the expiration of the period
agreed upon. The  period  so  agreed  upon  may be
extended by subsequent  agreements in writing made
before the expiration  of  the  period  previously
agreed upon. The  commissioner  may also in such a
case waive the  statute  of  limitations against a
claim for refund  by  such taxpayer. EXCEPT IN THE
CASE OF FRAUD  OR  INTENT  TO  EVADE  OR EXCEPT AS
OTHERWISE PROVIDED IN  SECTION  12-225  OR 12-226,
THE  COMMISSIONER  MAY  NOT  MAKE  MORE  THAN  ONE
ASSESSMENT FOR A TAX PERIOD FOR WHICH A RETURN HAS
BEEN FILED.
    (b)  UPON  THE   ADOPTION  OF  REGULATIONS  IN
ACCORDANCE WITH THE  PROVISIONS  OF  CHAPTER 54 TO
IMPLEMENT THE PROVISIONS  OF  THIS  SECTION AND TO
DEFINE THE TERMS  "IMPERFECT"  AND  "INCOMPLETE IN
ANY  MATERIAL  RESPECT",   THE  COMMISSIONER  MAY,
WITHIN  THE  PERIOD   OTHERWISE   PRESCRIBED   FOR
ASSESSMENT, MAKE A SINGLE SUPPLEMENTAL ASSESSMENT,
UPON WRITTEN FINDING  BY  THE COMMISSIONER THAT AN
EARLIER ASSESSMENT IS  IMPERFECT  OR INCOMPLETE IN
ANY MATERIAL RESPECT.
    Sec. 82. Section  47  of  public  act 93-74 is
repealed.
    Sec.  83.  Section   12-39i   of  the  general
statutes is repealed.
    Sec. 84. Section  16  of  public act 93-433 is
repealed.
    Sec. 85. This  act  shall take effect from its
passage, except: Section  7 shall be applicable to
income years commencing  on  or  after  January 1,
1980, section 23  shall  be  applicable to taxable
years commencing on  or  after  January  1,  1988,
sections 13 and  75  shall be applicable to income
years commencing on or after July 1, 1989, section
3  shall  be   applicable   to   assessment  years
commencing on or  after  October 1, 1993, sections
70  to  74,  inclusive,  shall  be  applicable  to
taxable years commencing  on  or  after January 1,
1993, sections 4, 16 and 26 shall be applicable to
taxable years commencing  on  or  after January 1,
1994, section 45  shall  be  applicable  to income
years commencing on  or  after  January  1,  1995,
section 47 shall  be applicable to property on the
grand list of October 1, 1994, section 79 shall be
applicable to taxable years commencing on or after
January 1, 1997,  and  (1)  sections 22, 41 and 46
shall take effect  July  1,  1994,  (2) section 82
shall take effect  July  1,  1996, (3) sections 42
and 83 shall  take  effect  October  1,  1994, and
section 42 shall  be  applicable  to taxes due and
owing after said  date,  (4) section 14 shall take
effect January 1, 1995, and shall be applicable to
sales  occurring  on   or  after  said  date,  (5)
sections 5, 6  and 49 shall take effect January 1,
1995, and shall  be  applicable to premiums due on
or after said  date,  (6)  section  25  shall take
effect January 1, 1995, and shall be applicable to
taxable years commencing  on  or  after said date,
(7) sections 30  to 40, inclusive, and sections 53
to 66, inclusive,  shall take effect July 1, 1995,
and shall be  applicable to taxes due and owing on
or after said  date, (8) sections 15 and 17 to 20,
inclusive, shall take  effect  July  1,  1996, and
shall be applicable to sales occurring on or after
said date and  (9)  section  12  shall take effect
July 1, 1996,  and shall be applicable to calendar
quarters commencing on or after July 1, 1996.

Approved June 9, 1994