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repealed and the following is substituted in lieu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repealed and the following is substituted in lieu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