Substitute House Bill No. 6891
Substitute House Bill No. 6891
PUBLIC ACT NO. 97-286
AN ACT CONCERNING MINOR AND TECHNICAL CHANGES TO
THE INCOME TAX AND ESTABLISHMENT OF A BREAST
CANCER RESEARCH AND EDUCATION ACCOUNT.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsection (d) of section 12-700a
of the general statutes is repealed and the
following is substituted in lieu thereof:
(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 (A)(i) the tax imposed under section
12-700, (ii) less the credit, if any, allowed
under section 12-704 exceeds (B)(i) the
Connecticut minimum tax, [determined without
regard to subparagraph (A)(ii) or (B)(ii), as the
case may be, of subdivision (26) of subsection (a)
of section 12-701, and] determined without regard
to whether the individual or the trust or estate
is subject to and required to pay for that taxable
year the federal alternative minimum tax under
Section 55 of the Internal Revenue Code, (ii) less
the credit, if any, allowed under subsection (e)
of this section.
Sec. 2. Subdivision (27) of subsection (a) of
section 12-701 of the general statutes is repealed
and the following is substituted in lieu thereof:
(27) "Adjusted net Connecticut minimum tax"
means (A) if the Connecticut minimum tax is
calculated under subparagraph (A)(i) or (B)(i), as
the case may be, of subdivision (26) of this
subsection, the excess, if any, of (i) the net
Connecticut minimum tax, less the credit allowed
under subsection (e) of section 12-700a, over (ii)
the amount that would have been the net
Connecticut minimum tax provided the adjustments
and items of preference specified in Section 53(d)
of the Internal Revenue Code had been used in
determining the net Connecticut minimum tax, less
the credit that would have been allowed under
subsection (e) of section 12-700a for a similar
tax determined by using only the adjustments and
items of preference specified in Section 53(d) of
the Internal Revenue Code, or (B) if the
Connecticut minimum tax is calculated under
subparagraph (A)(ii) or (B)(ii), as the case may
be, of subdivision (26) of this subsection, then
the product of the excess that is described in
subparagraph (A) of this subdivision and that is
determined without regard to said subparagraph
(A)(ii) or (B)(ii), as the case may be, of
subdivision (26) of this subsection, multiplied by
a fraction, the numerator of which is the NET
Connecticut minimum tax, as IF THE CONNECTICUT
MINIMUM TAX WERE calculated under said
subparagraph (A)(ii) or (B)(ii), as the case may
be, of subdivision (26) of this subsection and the
denominator of which is the NET Connecticut
minimum tax, as IF THE CONNECTICUT MINIMUM TAX
WERE calculated under said subparagraph (A)(i) or
(B)(i), as the case may be, of subdivision (26) of
this subsection.
Sec. 3. Subsection (a) of section 12-701 of
the general statutes is amended by adding
subdivisions (33) and (34) as follows:
(NEW) (33) "Partnership" means a partnership
as defined in Section 7701(a)(2) of the Internal
Revenue Code and the regulations adopted
thereunder, as from time to time amended, and any
reference in this chapter or in regulations
adopted under this chapter to a partnership shall
include a limited liability company that is
treated as a partnership for federal income tax
purposes.
(NEW) (34) "Partner" means a partner as
defined in Section 7701(a)(2) of the Internal
Revenue Code and the regulations adopted
thereunder, as from time to time amended, and any
reference in this chapter or in regulations
adopted under this chapter to a partner shall
include a member of a limited liability company
that is treated as a partnership for federal
income tax purposes.
Sec. 4. Section 12-704 of the general statutes
is amended by adding subsection (e) as follows:
(NEW) (e) Notwithstanding the provisions of
subsection (d) of this section, if an individual
is not domiciled in this state but maintains a
permanent place of abode in this state and is in
this state for an aggregate of more than one
hundred eighty-three days of a taxable year and
such individual is domiciled in another state of
the United States, a political subdivision of such
state, or the District of Columbia for the taxable
year, such individual shall be allowed a credit
under this section against the tax otherwise due
under this chapter for income tax imposed by and
paid to the qualifying jurisdiction in which such
individual is domiciled on such individual's
income from intangible personal property, to the
extent such income is from property not employed
in a business, trade, profession or occupation
carried on in this state, and on such individual's
income derived from or connected with sources
within another state of the United States or the
District of Columbia that does not impose an
income tax on such income. This subsection shall
apply only where the jurisdiction in which such
individual is domiciled allows an income tax
credit for the tax imposed by this state to an
individual who is domiciled in this state for a
taxable year but maintains a permanent place of
abode in such jurisdiction and is in such
jurisdiction for an aggregate of more than one
hundred eighty-three days of the taxable year that
is analogous to that provided in this subsection.
Sec. 5. Subsection (m) of section 12-722 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(m) For purposes of this section, if an
individual is a farmer or fisherman for any
taxable year, the following provisions shall
apply: (1) There shall be [two] ONLY ONE required
[instalments] INSTALMENT for the taxable year, (2)
the due date for [the first] SUCH instalment shall
be [June fifteenth of the taxable year and for the
second instalment shall be] January fifteenth of
the following taxable year, (3) the amount of
[each] such instalment shall be equal to the
lesser of (A) [thirty-seven and one-half]
SIXTY-SIX AND TWO-THIRDS per cent of the tax shown
on the return for the taxable year, or, if no
return is filed, [thirty-seven and one-half]
SIXTY-SIX AND TWO-THIRDS per cent of the tax for
such year, or (B) if the preceding taxable year
was a taxable year of twelve months and the
individual filed a return for the preceding
taxable year, [fifty] ONE HUNDRED per cent of the
tax shown on the return for the preceding taxable
year, (4) IF, ON OR BEFORE MARCH FIRST OF THE
FOLLOWING TAXABLE YEAR, THE FARMER OR FISHERMAN
FILES A RETURN AND PAYS IN FULL THE AMOUNT
COMPUTED ON THE RETURN AS PAYABLE, NO ADDITION TO
TAX SHALL BE IMPOSED UNDER SUBSECTION (a) OF THIS
SECTION WITH RESPECT TO ANY UNDERPAYMENT OF THE
REQUIRED INSTALMENT, AS PROVIDED IN SUBDIVISION
(3) OF THIS SUBSECTION, FOR THE TAXABLE YEAR, and
[(4)] (5) an individual is a farmer or fisherman
for any taxable year if such individual is a
farmer or fisherman, as defined in Section
6654(i)(2) of the Internal Revenue Code, for the
taxable year.
Sec. 6. (NEW) (a) There is established a
breast cancer research and education account which
shall be a separate, nonlapsing account within the
General Fund. Any moneys collected under the
contribution system established under section
12-743 of the general statutes, as amended by
section 7 of this act, shall be deposited by the
Commissioner of Revenue Services into the account.
This account may also receive moneys from public
and private sources or from the federal
government. All moneys deposited in the account
shall be used by the Department of Public Health
or persons acting under a contract with the
department, (1) to assist breast cancer research,
education and breast cancer related community
service programs or (2) the promotion of the
income tax contribution system and the breast
cancer research and education account.
Expenditures from the account in any fiscal year
for the promotion of the contribution system or
the account shall not exceed ten per cent of the
amount of moneys raised during the previous fiscal
year provided such limitation shall not apply to
an expenditure of not more than fifteen thousand
dollars from the account on or before July 1,
1998, to reimburse expenditures made on or before
said date, with prior written authorization of the
Commissioner of Public Health, by private
organizations to promote the contribution system
and the breast cancer research and education
account.
(b) The Commissioner of Public Health shall
adopt regulations, in accordance with the
provisions of chapter 54 of the general statutes,
to provide for the distribution of funds available
pursuant to this section and said section 12-743.
Sec. 7. Section 12-743 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) Any taxpayer filing a return under this
chapter [for taxable years commencing on or after
January 1, 1993,] may contribute any part of a
refund under this chapter to (1) the organ
transplant account established pursuant to section
17b-288, (2) the AIDS research education account
established pursuant to section 19a-32a, [or] (3)
the endangered species, natural area preserves and
watchable wildlife account established pursuant to
section 22a-27l, OR (4) THE BREAST CANCER RESEARCH
AND EDUCATION ACCOUNT ESTABLISHED PURSUANT TO
SECTION 6 OF THIS ACT by indicating on the tax
return, in a manner provided for by the
Commissioner of Revenue Services pursuant to
subsection (b) of this section, the amount to be
contributed to the account.
(b) The Commissioner of Revenue Services shall
revise the tax return form to implement the
provisions of subsection (a) of this section which
form shall include spaces on the return in which
taxpayers may indicate their intention to make a
contribution in accordance with this section. The
spaces shall include three boxes for each account
with suggested whole dollar amounts, with the
lowest suggested contribution being at least two
dollars, and one additional box for other whole
dollar amounts. The commissioner shall include in
the instructions accompanying the tax return a
description of the purposes for which the organ
transplant account, the AIDS research education
account, [and] the endangered species, natural
area preserves and watchable wildlife account AND
THE BREAST CANCER RESEARCH AND EDUCATION ACCOUNT
were created.
(c) A designated contribution of all or part
of any refund shall be irrevocable upon the filing
of the return and shall be made in the full amount
designated if the refund found due the taxpayer
upon the initial processing of the return, and
after any deductions required by this chapter, is
greater than or equal to the designated
contribution. If the refund due, as determined
upon initial processing, and after any deductions
required by this chapter, is less than the
designated contribution, the contribution shall be
made in the full amount of the refund. The
Commissioner of Revenue Services shall subtract
the amount of any contribution of all or part of
any refund from the amount of the refund initially
found due the taxpayer and shall certify the
difference to the Secretary of the Office of
Policy and Management and the Treasurer for
payment to the taxpayer in accordance with this
chapter. For the purposes of any subsequent
determination of the taxpayer's net tax payment,
such contribution shall be considered a part of
the refund paid to the taxpayer.
(d) The Commissioner of Revenue Services,
after notification of and approval by the
Secretary of the Office of Policy and Management,
may deduct and retain from the funds so collected
an amount equal to the costs of implementing this
section and sections 17b-288, 19a-32a, [and]
22a-27l AND SECTION 6 OF THIS ACT but not to
exceed seven and one-half per cent of the funds
contributed in any fiscal year and in no event
shall exceed the total cost of implementation of
said sections.
Sec. 8. This act shall take effect from its
passage and shall be applicable to taxable years
commencing on or after January 1, 1997.
Approved June 26, 1997