Substitute House Bill No. 6955
          Substitute House Bill No. 6955

              PUBLIC ACT NO. 97-309


AN  ACT PROVIDING  FOR  REDUCTIONS  IN  THE  MOTOR
VEHICLE FUELS TAX  AND  THE PERSONAL INCOME TAX, A
CREDIT AGAINST THE PERSONAL INCOME TAX FOR CERTAIN
PROPERTY  TAXES  AND  THE  COLLECTION  OF  VARIOUS
MUNICIPAL AND STATE TAXES.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section 1. Subdivision  (2)  of subsection (a)
of  section 12-458  of  the  general  statutes  is
repealed and the  following is substituted in lieu
thereof:
    (2)  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 (A) on each gallon  of
such  fuels  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,  THIRTY-SIX  CENTS ON AN
AFTER JULY 1, 1997, AND THIRTY-THREE CENTS ON  AND
AFTER JULY 1, 1998; and (B) 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, THIRTY-FIVE CENTS ON AND AFTER JULY 1, 1997,
AND  THIRTY-TWO  CENTS  ON AND AFTER JULY 1, 1998;
and [,] (C) in lieu of such rate, on  each  gallon
of  diesel  fuel,  propane  or natural gas sold or
used in this state on and after September 1, 1991,
during  such preceding calendar month, of eighteen
cents.
    Sec.   2.   Section   13b-61  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  On and after July 1, 1975, there shall be
paid  promptly  to   the   STATE   Treasurer   and
thereupon, unless required to be otherwise applied
by the terms of any  lien,  pledge  or  obligation
created  by or pursuant to the 1954 declaration or
part III (C)  of  chapter  240,  credited  to  the
General Fund:
    (1)  All  moneys  received or collected by the
state or any officer thereof  on  account  of,  or
derived  from,  motor  fuel taxes; provided on and
after July 1, 1983, one cent of the amount imposed
per  gallon  before  July 1, 1984, and received or
collected from any rate of such tax on motor fuels
shall  be  credited  by the STATE Treasurer to the
Special Transportation Fund;
    (2)  All  moneys  received or collected by the
state or any officer thereof  on  account  of,  or
derived from, motor vehicle taxes;
    (3)  All  moneys  received or collected by the
state or any officer thereof  on  account  of,  or
derived from, expressway revenues;
    (4)  All  moneys  becoming  payable, under the
terms of the 1954 declaration and part III (C)  of
chapter   240,  into  the  Highway  or  Additional
Expressway Construction Funds  mentioned  in  said
declaration;
    (5)  All  moneys  received or collected by the
state or any officer thereof  on  account  of,  or
derived from, highway tolls;
    (6)  All other moneys received or collected by
the commissioner or his department; and
    (7)  Any  other receipts of the state required
by law to be paid into the state Highway  Fund  or
the  Transportation  Fund  other  than proceeds of
bonds or other  securities  of  the  state  or  of
federal  grants  under  the  provisions of federal
law.
    (b)    Notwithstanding    any   provision   of
subsection (a) of this section  to  the  contrary,
there   shall   be  paid  promptly  to  the  STATE
Treasurer and thereupon,  unless  required  to  be
applied  by  the  terms  of  any  lien,  pledge or
obligation created by  or  pursuant  to  the  1954
declaration, part III (C) of chapter 240, credited
to the Special Transportation Fund:
    (1)  On  and  after  July  1, 1984, all moneys
received or collected by the state or any  officer
thereof  on  account of, or derived from, sections
12-458, AS AMENDED BY SECTION 1 OF THIS  ACT,  and
12-479,   provided   the   STATE   Comptroller  is
authorized to record as  revenue  to  the  General
Fund for the fiscal year ending June 30, 1984, the
amount of  tax  levied  in  accordance  with  said
sections  12-458  and  12-479, on all fuel sold or
used prior to the end  of  said  fiscal  year  and
which tax is received no later than July 31, 1984;
    (2)  On  and  after  July  1, 1984, all moneys
received or collected by the state or any  officer
thereof  on  account  of,  or  derived from, motor
vehicle receipts;
    (3)  On  and  after  July  1, 1984, all moneys
received or collected by the state or any  officer
thereof  on  account  of,  or  derived  from,  (A)
subsection (a) of section 14-192 and  (B)  royalty
payments  for retail sales of gasoline pursuant to
section 13a-80;
    (4)  On  and  after  July  1, 1985, all moneys
received or collected by the state or any  officer
thereof  on  account of, or derived from, license,
permit and fee  revenues  as  defined  in  section
13b-59,  except  as provided under subdivision (3)
of this subsection;
    (5)  On  or  after  July  1,  1989, all moneys
received or collected by the state or any  officer
thereof  on  account  of, or derived from, section
13b-70; [and]
    (6)   On   and   after   July   1,  1984,  all
transportation-related  federal  revenues  of  the
state;
    (7)  ON  AND  AFTER  JULY  1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF ON ACCOUNT OF OR DERIVED FROM FEES FOR THE
RELOCATION OF A  GASOLINE  STATION  UNDER  SECTION
14-320;
    (8)  ON  AND  AFTER  JULY  1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF  ON  ACCOUNT  OF  OR DERIVED FROM, SECTION
14-319;
    (9)  ON  AND  AFTER  JULY  1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF   ON  ACCOUNT  OF  OR  DERIVED  FROM  FEES
COLLECTED PURSUANT TO SECTION  14-327b  FOR  MOTOR
FUEL QUALITY REGISTRATION OF DISTRIBUTORS;
    (10)  ON  AND  AFTER  JULY 1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF   ON   ACCOUNT   OR  DERIVED  FROM  ANNUAL
REGISTRATION FEES FOR MOTOR  FUEL  DISPENSERS  AND
WEIGHING  OR MEASURING DEVICES PURSUANT TO SECTION
43-3;
    (11)  ON  AND  AFTER  JULY 1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF  ON  ACCOUNT  OR DERIVED FROM FEES FOR THE
ISSUANCE OF IDENTITY  CARDS  PURSUANT  TO  SECTION
1-1h;
    (12)  ON  AND  AFTER  JULY 1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF  ON ACCOUNT OF OR DERIVED FROM SAFETY FEES
PURSUANT TO SUBSECTION (w) OF  SECTION  14-49,  AS
AMENDED BY SECTION 6 OF THIS ACT;
    (13)  ON  AND  AFTER  JULY 1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF  ON  ACCOUNT  OF OR DERIVED FROM LATE FEES
FOR THE EMISSIONS  INSPECTION  OF  MOTOR  VEHICLES
PURSUANT TO SUBSECTION (g) OF SECTION 14-164c; AND
    (14)  ON  AND  AFTER  JULY 1, 1997, ALL MONEYS
RECEIVED OR COLLECTED BY THE STATE OR ANY  OFFICER
THEREOF  ON ACCOUNT OF OR DERIVED FROM THE SALE OF
INFORMATION BY THE COMMISSIONER OF MOTOR  VEHICLES
PURSUANT TO SUBSECTION (b) OF SECTION 14-50a shall
be credited to the Special Transportation Fund.
    Sec.   3.   Section   13b-68  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  There  is  established and created a fund
to be known as the "Special Transportation  Fund".
The fund may contain any moneys required by law to
be deposited in the fund and shall be held by  the
STATE  Treasurer separate and apart from all other
moneys, funds and  accounts.  Investment  earnings
credited  to  the assets of said fund shall become
part of the assets of said fund. Any  balance  NOT
EXCEEDING TWENTY MILLION DOLLARS remaining in said
fund at the  end  of  any  fiscal  year  shall  be
carried  forward  in said fund for the fiscal year
next succeeding.
    (b)   AFTER   THE  ACCOUNTS  FOR  THE  SPECIAL
TRANSPORTATION FUND  HAVE  BEEN  CLOSED  FOR  EACH
FISCAL   YEAR   AND   THE  STATE  COMPTROLLER  HAS
DETERMINED THE BALANCE REMAINING IN SAID FUND, AND
AFTER  ANY AMOUNTS REQUIRED BY PROVISION OF LAW TO
BE  TRANSFERRED  FOR  OTHER  PURPOSES  HAVE   BEEN
DEDUCTED, THE AMOUNT OF SUCH BALANCE WHICH EXCEEDS
TWENTY MILLION DOLLARS SHALL BE USED BY THE  STATE
TREASURER  AND  SHALL BE DEEMED TO BE APPROPRIATED
FOR:  (1)  REDEEMING   PRIOR   TO   MATURITY   ANY
OUTSTANDING SPECIAL TAX OBLIGATION INDEBTEDNESS OF
THE STATE SELECTED BY THE STATE TREASURER  IN  THE
BEST   INTERESTS  OF  THE  STATE;  (2)  PURCHASING
OUTSTANDING SPECIAL TAX OBLIGATION INDEBTEDNESS OF
THE STATE IN THE OPEN MARKET AT SUCH PRICES AND ON
SUCH TERMS AND CONDITIONS AS THE  STATE  TREASURER
SHALL DETERMINE TO BE IN THE BEST INTERESTS OF THE
STATE  FOR  THE  PURPOSE   OF   EXTINGUISHING   OR
DEFEASING   SUCH   DEBT;  (3)  PROVIDING  FOR  THE
DEFEASANCE  OF   ANY   OUTSTANDING   SPECIAL   TAX
OBLIGATION  INDEBTEDNESS  OF THE STATE SELECTED BY
THE STATE TREASURER IN THE BEST INTERESTS  OF  THE
STATE  BY IRREVOCABLY PLACING WITH AN ESCROW AGENT
IN TRUST AN AMOUNT TO  BE  USED  SOLELY  FOR,  AND
SUFFICIENT  TO SATISFY, SCHEDULED PAYMENTS OF BOTH
INTEREST AND PRINCIPAL ON SUCH  INDEBTEDNESS;  (4)
PAYING  OR PROVIDING FOR THE PAYMENT IN THE FISCAL
YEAR ENDING JUNE 30,  1999,  OR  ANY  FISCAL  YEAR
THEREAFTER   OF   DEBT  SERVICE  REQUIREMENTS,  AS
DEFINED IN SECTION 13b-75, AT SUCH TIME OR  TIMES,
IN  SUCH  AMOUNT OR AMOUNTS AND IN SUCH MANNER, AS
PROVIDED  BY  THE  PROCEEDINGS   AUTHORIZING   THE
ISSUANCE  OF SPECIAL TAX OBLIGATION BONDS PURSUANT
TO SECTIONS 13b-74 TO 13b-77,  INCLUSIVE;  OR  (5)
ANY COMBINATION OF THESE METHODS.
    Sec.  4.  Subsection  (b) of section 13b-69 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b)  The  remaining  resources  of the Special
Transportation    Fund    shall,    pursuant    to
appropriation  thereof  in accordance with chapter
50 and subject to  approval  by  the  Governor  of
allotment thereof, be applied and expended for (1)
payment  of  the  principal  of  and  interest  on
"general  obligation bonds of the state issued for
transportation purposes", as defined in subsection
(c)  of this section, or any obligations refunding
the   same,   (2)   payment   of   state    budget
appropriations  made  to  or for the Department of
Transportation  and  the   Department   of   Motor
Vehicles,   and   (3)   payment  of  state  budget
appropriations made to or for  the  Department  of
Public Safety for members of the Division of State
Police designated by the  Commissioner  of  Public
Safety  for  motor patrol work pursuant to section
29-4,  EXCEPT  THAT  (A)  FOR  THE  FISCAL   YEARS
COMMENCING ON OR AFTER JULY 1, 1998, EXCLUDING THE
HIGHWAY MOTOR PATROL BUDGETED EXPENSES AND (B) FOR
THE  FISCAL  YEARS  COMMENCING ON OR AFTER JULY 1,
1999, EXCLUDING THE HIGHWAY  MOTOR  PATROL  FRINGE
BENEFITS.
    Sec.  5.  (NEW) Notwithstanding the provisions
of section 13b-61  of  the  general  statutes,  as
amended  by  section  2  of this act, for calendar
quarters ending on or after  September  30,  1998,
and  prior to September 30, 1999, the Commissioner
of Revenue Services shall deposit into the Special
Transportation   Fund  established  under  section
13b-68 of the  general  statutes,  as  amended  by
section 3 of this act, five million dollars of the
amount of funds received by the state from the tax
imposed   under  section  12-587  of  the  general
statutes, on the gross earnings from the sales  of
petroleum  products attributable to sales of motor
vehicle fuel  and  commencing  with  the  calendar
quarter   ending  September  30,  1999,  and  each
calender  quarter  thereafter,  the   commissioner
shall  deposit  into  the  Special  Transportation
Fund, nine million  dollars  of  the  amount  such
funds  received  by the state from the tax imposed
under said section 12-587 on  the  gross  earnings
from  the sales of petroleum products attributable
to sales of motor vehicle fuel.
    Sec.  6.  Subsection  (w)  of section 14-49 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (w)  In  addition  to  the fee established for
the issuance of motor vehicle  number  plates  and
except  as  provided  in subsection (a) of section
14-21b and subsection (b) of section 14-253a there
shall  be an additional safety fee of five dollars
charged  at  the   time   of   issuance   of   any
reflectorized   safety  number  plate  or  set  of
plates. All moneys derived from  said  safety  fee
shall   be  deposited  in  the  [General]  SPECIAL
TRANSPORTATION Fund.
    Sec.  7. (NEW) (a) Any resident of this state,
as defined in subdivision (1) of subsection (a) of
section 12-701 of the general statutes, 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 a portion of the amount of
property tax, as defined in this section, actually
paid  by  such  person  on  such  person's primary
residence or motor vehicle in accordance with this
section,  provided  in  the  case  of a person who
files a return under the federal  income  tax  for
such  taxable  year  as an unmarried individual, a
married individual filing separately or a head  of
household, one motor vehicle shall be eligible for
such credit and in the case of a husband and  wife
who  file  a  return  under federal income tax for
such taxable year as  married  individuals  filing
jointly,  no more than two motor vehicles shall be
eligible for a credit under the provisions of this
section.
    (b)  The  credit  allowed  under  this section
shall not exceed two hundred fifteen  dollars  for
the  taxable  year commencing January 1, 1997, and
for taxable years commencing on or  after  January
1,  1998,  two hundred seventy-five dollars of the
property tax first becoming due and actually  paid
during the taxpayer's taxable year. In the case of
any husband and wife who file a return  under  the
federal  income  tax  for  such  taxable  year  as
married individuals filing  a  joint  return,  the
credit  allowed  shall not exceed such amounts for
each such taxable year, in the aggregate,  of  the
property  tax first becoming due and actually paid
during the taxable year of such husband and wife.
    (c)  In  the  case  of  any  such taxpayer who
files  under  the  federal  income  tax  for  such
taxable  year  as  an  unmarried  individual whose
Connecticut   adjusted   gross   income    exceeds
fifty-two   thousand  five  hundred  dollars,  the
amount of the  credit  that  exceeds  one  hundred
dollars  shall be reduced by ten per cent for each
ten thousand  dollars,  or  fraction  thereof,  by
which  the  taxpayer's  Connecticut adjusted gross
income exceeds said amount. In  the  case  of  any
such  taxpayer  who files under the federal income
tax for such taxable year as a married  individual
filing separately whose Connecticut adjusted gross
income exceeds fifty thousand  two  hundred  fifty
dollars, the amount of the credit that exceeds one
hundred dollars shall be reduced by ten  per  cent
for   each  five  thousand  dollars,  or  fraction
thereof,  by  which  the  taxpayer's   Connecticut
adjusted  gross income exceeds said amount. In the
case of a taxpayer who  files  under  the  federal
income  tax  for  such  taxable  year as a head of
household whose Connecticut adjusted gross  income
exceeds   seventy-eight   thousand   five  hundred
dollars, the amount of the credit that exceeds one
hundred  dollars  shall be reduced by ten per cent
for each ten thousand dollars or fraction thereof,
by which the taxpayer's Connecticut adjusted gross
income exceeds said  amount.  In  the  case  of  a
taxpayer  who  files  under federal income tax for
such taxable year as  married  individuals  filing
jointly  whose  Connecticut  adjusted gross income
exceeds one hundred thousand five hundred dollars,
the  amount of the credit that exceeds one hundred
dollars shall be reduced by ten per cent for  each
ten  thousand  dollars,  or  fraction  thereof, by
which the taxpayer's  Connecticut  adjusted  gross
income exceeds said amount.
    (d)  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.
    (e)  The  credit  may  only  be used to reduce
such qualifying taxpayer's tax liability  for  the
year for which such credit is applicable and shall
not be used to reduce such tax liability  to  less
than zero.
    (f)   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.
    (g)   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
primary  residence  or  motor vehicles, and "motor
vehicle" means a  motor  vehicle,  as  defined  in
section  14-1  of  the  general statutes, which is
privately owned or leased.
    Sec.  8.  Subsection  (a) of section 12-700 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)   There   is   hereby   imposed   on   the
Connecticut taxable income  of  each  resident  of
this  state  a  tax  (1)  at  the rate of four and
one-half per  cent  of  such  Connecticut  taxable
income  for  taxable  years commencing on or after
January 1, 1992, and prior to January 1, 1996.
    (2)  For  taxable years commencing on or after
January 1, 1996, but prior to January 1, 1997,  in
accordance with the following schedule:
    (A)  For  any  person who files a return under
the federal income tax for such taxable year as an
unmarried  individual  or  as a married individual
filing separately:

    Connecticut Taxable Income  Rate of Tax
    Not over $2,250             3.0%
    Over $2,250                 $67.50, plus 4.5%
                                of the excess over
                                $2,250

    (B)  For  any  person 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:

    Connecticut Taxable Income  Rate of Tax
    Not over $3,500             3.0%
    Over $3,500                 $105.00, plus 4.5%
                                of the excess over
                                $3,500

    (C)  For  any  husband  and  wife  who  file a
return under  the  federal  income  tax  for  such
taxable year as married individuals filing jointly
or a person who files a return under  the  federal
income  tax  as  a surviving spouse, as defined in
Section 2(a) of the Internal Revenue Code:

    Connecticut Taxable Income  Rate of Tax
    Not over $4,500             3.0%
    Over $4,500                 $135.00, plus 4.5%
                                of the excess over
                                $4,500

    (D)  For  trusts  or  estates, the rate of tax
shall be 4.5% of their Connecticut taxable income.
    (3)  For  taxable years commencing on or after
January 1, 1997, [and  thereafter]  BUT  PRIOR  TO
JANUARY  1, 1998, in accordance with the following
schedule:
    (A)  For  any  person who files a return under
the federal income tax for such taxable year as an
unmarried  individual  or  as a married individual
filing separately:

    Connecticut Taxable Income     Rate of Tax
    Not over $4,500                   3.0%
    Over $4,500                $135.00, plus 4.5%
                                 of the excess
                                  over $4,500

    (B)  For  any  person 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:

    Connecticut Taxable Income    Rate of Tax
    Not over $7,000                  3.0%
    Over $7,000                $210.00, plus 4.5%
                               of the excess over
                                    $7,000

    (C)  For  any  husband  and  wife  who  file a
return under  the  federal  income  tax  for  such
taxable year as married individuals filing jointly
or any person who files a return under the federal
income  tax  for  such taxable year as a surviving
spouse, as defined in Section 2(a) of the Internal
Revenue Code:

    Connecticut Taxable Income    Rate of Tax
    Not over $9,000                  3.0%
    Over $9,000                 $270.00, plus 4.5%
                                of the excess over
                                    $9,000

    (D)  For  trusts  or  estates, the rate of tax
shall be 4.5% of their Connecticut taxable income.
    (4)  FOR  TAXABLE YEARS COMMENCING ON OR AFTER
JANUARY 1, 1998, BUT PRIOR TO JANUARY 1, 1999,  IN
ACCORDANCE WITH THE FOLLOWING SCHEDULE:
    (A)  FOR  ANY  PERSON WHO FILES A RETURN UNDER
THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR AS AN
UNMARRIED  INDIVIDUAL  OR  AS A MARRIED INDIVIDUAL
FILING SEPARATELY:

    CONNECTICUT TAXABLE INCOME    RATE OF TAX
    NOT OVER $7,500                 3.0%
    OVER $7,500                $225.00, PLUS 4.5%
                                OF THE EXCESS OVER
                                    $7,500

    (B)  FOR  ANY  PERSON 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:

    CONNECTICUT TAXABLE INCOME    RATE OF TAX
    NOT OVER $12,000                3.0%
    OVER $12,000                  $360.00 PLUS
                                4.5% OF THE EXCESS
                                  OVER $12,000

    (C)  FOR  ANY  HUSBAND  AND  WIFE  WHO  FILE A
RETURN UNDER  THE  FEDERAL  INCOME  TAX  FOR  SUCH
TAXABLE YEAR AS MARRIED INDIVIDUALS FILING JOINTLY
OR ANY PERSON WHO FILES A RETURN UNDER THE FEDERAL
INCOME  TAX  FOR  SUCH TAXABLE YEAR AS A SURVIVING
SPOUSE, AS DEFINED IN SECTION 2(a) OF THE INTERNAL
REVENUE CODE:

    CONNECTICUT TAXABLE INCOME     RATE OF TAX
    NOT OVER $15,000                  3.0%
    OVER $15,000                  $450.00 PLUS
                                4.5% OF THE EXCESS
                                   OVER $15,000

    (D)  FOR  TRUSTS  OR  ESTATES, THE RATE OF TAX
SHALL BE 4.5% OF THEIR CONNECTICUT TAXABLE INCOME.
    (5)  FOR  TAXABLE YEARS COMMENCING ON OR AFTER
JANUARY 1, 1999, IN ACCORDANCE WITH THE  FOLLOWING
SCHEDULE:
    (A)  FOR  ANY  PERSON WHO FILES A RETURN UNDER
THE FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR AS AN
UNMARRIED  INDIVIDUAL  OR  AS A MARRIED INDIVIDUAL
FILING SEPARATELY:

    CONNECTICUT TAXABLE INCOME    RATE OF TAX
    NOT OVER $9,000                   3.0%
    OVER $9,000                $270.00, PLUS 4.5%
                                OF THE EXCESS OVER
                                    $9,000

    (B)  FOR  ANY  PERSON 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:

    CONNECTICUT TAXABLE INCOME    RATE OF TAX
    NOT OVER $15,000                3.0%
    OVER $15,000                  $450.00 PLUS
                                4.5% OF THE EXCESS
                                  OVER $15,000

    (C)  FOR  ANY  HUSBAND  AND  WIFE  WHO  FILE A
RETURN UNDER  THE  FEDERAL  INCOME  TAX  FOR  SUCH
TAXABLE YEAR AS MARRIED INDIVIDUALS FILING JOINTLY
OR ANY PERSON WHO FILES A RETURN UNDER THE FEDERAL
INCOME  TAX  FOR  SUCH TAXABLE YEAR AS A SURVIVING
SPOUSE, AS DEFINED IN SECTION 2(a) OF THE INTERNAL
REVENUE CODE:

    CONNECTICUT TAXABLE INCOME     RATE OF TAX
    NOT OVER $18,000                  3.0%
    OVER $18,000                  $540.00 PLUS
                                4.5% OF THE EXCESS
                                   OVER $18,000

    (D)  FOR  TRUSTS  OR  ESTATES, THE RATE OF TAX
SHALL BE 4.5% OF THEIR CONNECTICUT TAXABLE INCOME.
    (6)  The  provisions  of this subsection shall
apply to resident trusts and estates and, wherever
reference  is made in this subsection to residents
of this state, such reference shall  be  construed
to  include  resident trusts and estates, provided
any reference to a resident's Connecticut adjusted
gross  income  derived  from  sources without this
state or  to  a  resident'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
derived from sources without this  state  and  the
resident  trust  or  estate's  Connecticut taxable
income, respectively.
    Sec.  9. Subdivision (20) of subsection (a) of
section 12-701 of the general statutes 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)  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,  (iv)  to the extent properly includable
in gross income for federal income  tax  purposes,
any  tier 1 railroad retirement benefits, (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, 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, that is subject to tax under chapter 208, in
accordance with subsection (c) of section  12-217,
multiplied  by  such  corporation's  apportionment
fraction, if any, as determined in accordance with
section   12-218,  (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, (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,  (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, (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 FIFTY PER  CENT  OF
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.  10. The Commissioner of Revenue Services
shall report to the joint  standing  committee  of
the  General Assembly having cognizance of matters
relating to finance, revenue and bonding,  through
the  Office of Fiscal Analysis, on the nonresident
and  nexus  investigation   project   within   the
Department  of  Revenue Services. The report shall
cover the two year period commencing July 1, 1997.
The commissioner shall issue interim reports, with
the data available on April 1, 1998, and April  1,
1999, and shall issue final reports for the fiscal
years ending June 30, 1998, and June 30, 1999. The
reports  shall include data relating to the amount
of  additional  sales   and   use   tax   revenue,
corporation   and   personal  income  tax  revenue
attributable to the project.
    Sec.  11.  (NEW)  (a)  The Connecticut Housing
Finance Authority is  authorized  to  issue  bonds
secured  by  a  pledge  of  principal and interest
payments and other revenues to be received by  the
state  with respect to any loans made by the state
under  any  bond-financed  housing   program,   as
defined in section 8-37qq of the general statutes.
Except as otherwise provided in this section,  the
issuance  of  such  bonds shall be governed by the
provisions  of  section  8-252  of   the   general
statutes.  Such  bonds  may  be  guaranteed by the
authority,  which  guarantee  may  be  a   general
obligation of the authority. Such bonds whether or
not a general obligation of the authority  may  be
secured   by  revenues  or  other  assets  of  the
authority which are not subject to the lien of the
general  housing  mortgage program bond resolution
of the authority adopted September  27,  1972,  as
amended, or subject to a lien created by any other
existing bond resolution  of  the  authority.  The
state,  acting  through  the  State  Treasurer, is
authorized to pledge such principal  and  interest
payments  and  other  revenues,  and  to make such
agreements, covenants and representations  as  may
be   required  for  issuance  of  the  bonds.  The
provisions of subdivision (3) of section 32-1l  of
the general statutes shall not apply to any pledge
under  this  section,  nor  to  any  transfer   of
revenues   to   the  Connecticut  Housing  Finance
Authority or to a trustee incident to the issuance
of  bonds under this section, but such a pledge or
transfer  of  revenues  from  bond-financed  state
housing  programs, as defined in section 8-37qq of
the general statutes, to the  Connecticut  Housing
Finance  Authority or to a trustee incident to the
issuance of bonds under  this  section  is  hereby
authorized.  Any  pledges  made  pursuant  to this
section shall be valid and binding from  the  time
such  pledge  is  made,  and  are  not  subject to
further appropriation by the state.  The  proceeds
of  any  bonds  issued  pursuant  to  this section
shall, after payment of all costs of issuance  and
sale,  including, without limitation, the costs of
credit facilities and  the  establishment  of  any
reserves  as security for such bonds, be deposited
in the General Fund.
    (b)  In  the event that the total of principal
and interest payments and other  revenues  pledged
to  any  trustee  in accordance with a pledge made
pursuant to subsection (a)  of  this  section  and
received  in  any  fiscal  year  are less than the
total of all interest and principal  payments  and
other  revenues  on  loans under any bond-financed
housing program as defined in  section  8-37qq  of
the  general  statutes  by  the state in that same
fiscal year, the Secretary of the Office of Policy
and  Management shall apportion any payments to be
transferred to  such  trustee  under  such  pledge
among payments that would otherwise have flowed to
the General Fund, the Rental Housing Fund  or  the
Housing Repayment and Revolving Loan Fund and may,
on behalf of  the  state,  make  such  agreements,
covenants and representations with respect to such
apportionment as may be required for  issuance  of
the  bonds  under  this section. In the event that
principal and interest payments or other  revenues
pledged pursuant to subsection (a) of this section
are transferred in any fiscal year to any  trustee
in  excess of total debt service payments required
in  such  fiscal  year  under  the  terms  of  any
indenture  of  trust  for  bonds issued under this
section the  balance  shall  be  returned  to  the
state.  Such returned balance shall be apportioned
among the General Fund, the Rental Housing Fund or
the  Housing Repayment and Revolving Loan Fund, as
determined by  the  Secretary  of  the  Office  of
Policy  and Management provided, any such returned
balance shall first be apportioned to the  Housing
Repayment  and  Revolving  Loan  Fund,  up  to the
amount which would otherwise have  flowed  to  the
Housing  Repayment and Revolving Loan Fund in such
fiscal year absent such pledge under this section.
    (c)   Nothing   in   this   section  shall  be
construed to authorize (1) the use  of  moneys  in
any  sinking  fund  which may have been pledged by
resolution or trust indenture in  connection  with
the  issuance  of any general obligation bonds, as
to which sinking fund the state  did  not  reserve
the  right  to  application and use of such moneys
for other purposes, (2) the pledge of moneys,  any
apportionment  of payments or returned balances in
subsection (b) of  this  section  that  the  State
Treasurer determines to have been precluded by any
covenant or  agreement  with  bondholders  on  any
outstanding general obligation bonds of the state,
or (3) the pledge  of  certain  loan  payments  or
revenue if it is determined by the State Treasurer
that the  tax-exempt  status  of  any  outstanding
general  obligation  bonds  of  the state shall be
jeopardized by the  pledge  of  such  payments  or
revenues.
    Sec.   12.   Section  52-258  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    The  jury  fee in civil actions shall be [two]
THREE hundred [fifty] dollars to be  paid  at  the
time the case is claimed for the jury by the party
at whose request the case is placed upon the  jury
docket.  The  jury  fee shall be taxed in favor of
the party paying the jury fee in the bill of costs
in  the  action,  if  final  judgment  thereon  is
rendered in his favor.
    Sec.   13.   Section  52-259  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    There   shall   be  paid  to  the  clerks  for
entering each appeal  or  writ  of  error  to  the
Supreme  Court,  or  entering  each  appeal to the
Appellate Court, as the case may be,  two  hundred
fifty  dollars,  and  for  each civil cause in the
Superior Court, one  hundred  [fifty]  EIGHTY-FIVE
dollars;   except  (1)  seventy-five  dollars  for
entering each case in the Superior Court in  which
the  sole  claim  for  relief  is  damages and the
amount, legal interest or property  in  demand  is
less  than  two  thousand five hundred dollars and
for  summary  process,  landlord  and  tenant  and
paternity actions, and (2) there shall be no entry
fee for making  an  application  to  the  Superior
Court  for  relief  under  section  46b-15  or for
making an application to modify or extend an order
issued  pursuant to section 46b-15. If the amount,
legal  interest  or  property  in  demand  by  the
plaintiff  is alleged to be less than two thousand
five  hundred  dollars,  a  new   entry   fee   of
seventy-five  dollars  shall  be  charged  if  the
plaintiff  amends  his  complaint  to  state  such
demand  is not less than two thousand five hundred
dollars. The fee for the entry of a  small  claims
case shall be thirty dollars. If a motion is filed
to transfer a small claims  case  to  the  regular
docket,  the  moving  party  shall  pay  a  fee of
seventy-five dollars. There shall be paid  to  the
clerk  of  the  Superior  Court  by  any party who
requests a finding of fact  by  a  judge  of  such
court  to be used on appeal the sum of twenty-five
dollars, to be paid at the  time  the  request  is
filed.  There  shall  be  paid to the clerk of the
Superior Court a fee of seventy-five dollars for a
petition  for  certification  to the Supreme Court
and  Appellate  Court.  Such  clerks  shall   also
receive  for receiving and filing an assessment of
damages by appraisers of land taken for public use
or  the  appointment  of  a  commissioner  of  the
Superior Court, two  dollars;  for  recording  the
commission   and   oath  of  a  notary  public  or
certifying under seal to the official character of
any  magistrate, ten dollars; for certifying under
seal,  two  dollars;  for   exemplifying,   twenty
dollars;  for  making  all  necessary  records and
certificates of naturalization, the  fees  allowed
under the provisions of the United States statutes
for such services;  and  for  making  copies,  one
dollar a page. There shall be paid to the clerk of
the Superior Court for a copy of a judgment file a
fee  of fifteen dollars, inclusive of the fees for
certification and copying, for  a  certified  copy
and a fee of ten dollars, inclusive of the fee for
copying, for a copy which is not certified; for  a
copy of a certificate of judgment in a foreclosure
action, as provided by the rules of  practice  and
procedure,  twenty  dollars, inclusive of the fees
for certification and copying. There shall be paid
to  the  clerk of the court a fee of fifty dollars
at the time  any  application  for  a  prejudgment
remedy  is  filed. A fee of twenty dollars for any
check issued to the court in payment  of  any  fee
which  is returned as uncollectible by the bank on
which it is drawn may be imposed. The tax  imposed
under  chapter  219  shall not be imposed upon any
fee charged under the provisions of this section.
    Sec.   14.   Section  54-56g  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)   There   shall   be  a  pretrial  alcohol
education  system  for  persons  charged  with   a
violation  of section 14-227a. Upon application by
any such person for participation in  such  system
and  payment to the court of an application fee of
fifty dollars, the court shall, but only as to the
public,  order such information or complaint to be
filed  as  a  sealed  information  or   complaint,
provided  such  person  states under oath, in open
court or before any person designated by the clerk
and  duly  authorized  to  administer oaths, under
penalties of perjury that he has  never  had  such
system  invoked  in his behalf and that he has not
been convicted of a violation of  section  53a-56b
or  53a-60d,  a  violation  of  subsection  (a) of
section 14-227a before or after October  1,  1981,
or  a  violation  of  subdivision  (1)  or  (2) of
subsection (a) of  section  14-227a  on  or  after
October   1,  1985,  and  that  he  has  not  been
convicted in any other state at  any  time  of  an
offense   the  essential  elements  of  which  are
substantially  the  same  as  section  53a-56b  or
53a-60d  or  subdivision  (1) or (2) of subsection
(a) of  section  14-227a.  Unless  good  cause  is
shown,   a   person   shall   be   ineligible  for
participation in such pretrial  alcohol  education
system if his alleged violation of section 14-227a
caused the serious physical injury, as defined  in
section  53a-3, of another person. The fee imposed
by  this  subsection  shall  be  credited  to  the
Criminal Injuries Compensation Fund established by
section 54-215.
    (b)  The  court,  after  consideration  of the
recommendation of the state's attorney,  assistant
state's   attorney  or  deputy  assistant  state's
attorney in  charge  of  the  case,  may,  in  its
discretion,  grant  such application. If the court
grants  such  application,  it  shall  refer  such
person  to  the Bail Commission for assessment and
confirmation of the eligibility of the  applicant.
The  Bail Commission, in making its assessment and
confirmation, may rely on the representations made
by  the  applicant  under  oath in open court with
respect to convictions in other states of offenses
specified  in subsection (a) of this section. Upon
confirmation of eligibility, the  defendant  shall
be referred to the Department of Mental Health and
Addiction Services  by  the  Bail  Commission  for
evaluation and placement in an appropriate alcohol
program for one year. Any person  who  enters  the
system  shall  agree:  (1)  To  the tolling of the
statute of limitations with respect to such crime,
(2)  to  a  waiver of his right to a speedy trial,
(3) to participate in at least [eight meetings or]
TEN  counseling  sessions  in  an  alcohol program
pursuant to this section and complete the assigned
program,   and   (4)  to  accept  placement  in  a
treatment  program  upon   recommendation   of   a
provider  under  contract  with  the Department of
Mental Health and Addiction Services  pursuant  to
subsection  (d)  of this section or placement in a
treatment    program    which    has     standards
substantially   similar  to,  or  higher  than,  a
program of a  provider  under  contract  with  the
Department of Mental Health and Addiction Services
if the Bail Commission deems it  appropriate.  The
suspension of the motor vehicle operator's license
of any such person  pursuant  to  section  14-227b
shall  be  effective during the period such person
is participating in such  program,  provided  such
person shall have the option of not commencing the
participation in such program until the period  of
such   suspension   is   completed.  If  the  Bail
Commission informs the court that the defendant is
ineligible  for  the  system and the court makes a
determination of ineligibility or if  the  program
provider certifies to the court that the defendant
did not successfully complete the assigned program
or  is  no longer amenable to treatment, the court
shall order the information  or  complaint  to  be
unsealed,  enter  a  plea  of  not guilty for such
defendant and immediately place the  case  on  the
trial   list.  If  such  defendant  satisfactorily
completes the assigned program he  may  apply  for
dismissal  of  the  charges  against  him  and the
court,   on   reviewing   the   record   of    his
participation  in  such  program  submitted by the
Bail Commission and on finding  such  satisfactory
completion,  shall  dismiss  the  charges.  If the
defendant does not  apply  for  dismissal  of  the
charges    against    him   after   satisfactorily
completing the assigned program  the  court,  upon
receipt of the record of his participation in such
program submitted by the Bail Commission,  may  on
its own motion make a finding of such satisfactory
completion and dismiss the charges. Upon motion of
the  defendant  and  a  showing of good cause, the
court may extend the one-year placement period for
a  reasonable period for the defendant to complete
the assigned program. A record of participation in
such   program  shall  be  retained  by  the  Bail
Commission for a period of seven  years  from  the
date  of  application.  The  Bail Commission shall
transmit to the Department  of  Motor  Vehicles  a
record  of  participation in such program for each
person who satisfactorily completes such  program.
The  Department  of  Motor Vehicles shall maintain
for a period  of  seven  years  the  record  of  a
person's  participation in such program as part of
such person's driving record.
    (c)   At   the   time  the  court  grants  the
application  for  participation  in  the  pretrial
alcohol  education  system, such person shall also
pay to the court a nonrefundable  program  fee  of
[three  hundred  fifty]  FOUR  HUNDRED TWENTY-FIVE
dollars, except that no  person  may  be  excluded
from  such  program for inability to pay such fee,
provided (1) such person files with the  court  an
affidavit  of  indigency  or inability to pay, (2)
such  indigency   is   confirmed   by   the   Bail
Commission,  and  (3)  the  court enters a finding
thereof. If the court denies the application, such
person  shall  not  be required to pay the program
fee. If the court grants the application, and such
person  is  later  determined to be ineligible for
participation in such pretrial  alcohol  education
system  or fails to complete the assigned program,
the                   [three-hundred-fifty-dollar]
FOUR-HUNDRED-TWENTY-FIVE-DOLLAR  program fee shall
not be refunded. All such program  fees  shall  be
credited to the General Fund.
    (d)   The  Department  of  Mental  Health  and
Addiction Services  shall  contract  with  service
providers,    develop    standards   and   oversee
appropriate   alcohol   programs   to   meet   the
requirements  of  this  section.  Said  department
shall adopt regulations in accordance with chapter
54   to   establish  standards  for  such  alcohol
programs.  Any  defendant  whose   employment   or
residence  makes  it  unreasonable  to  attend  an
alcohol program in this state may attend a program
in another state which has standards substantially
similar to, or higher than, those of  this  state,
subject  to  the approval of the court and payment
of the application and program fees as provided in
this section.
    Sec.  15. Section 12-2 of the general statutes
is amended by adding subsection (c) as follows:
    (NEW)  (c)  The  commissioner is authorized to
negotiate  and   contract   with   the   governing
authority  of any Connecticut municipality for the
purpose of arranging for  the  collection  by  the
commissioner  of  any taxes for general or special
purposes  levied  by  such  municipality,  of  any
fines,  penalties,  costs  or fees payable to such
municipality  for  the  violation  of  any  lawful
regulation  or  ordinance  in  furtherance  of any
general powers as enumerated in section 7-148,  or
of  any  charge  payable  to such municipality for
connection with or for the use of a waterworks  or
sewerage   system,  provided  such  taxes,  fines,
penalties, costs  or  fees,  or  charges  are  (1)
unpaid  and  a period in excess of thirty days has
elapsed following the date on which they were  due
and   (2)  not  the  subject  of  a  timely  filed
administrative appeal or of a timely filed  appeal
pending    before    any    court   of   competent
jurisdiction. The agreement shall include a fee to
be  paid by such municipality to said commissioner
in  an  amount  that  covers  fully  the  cost  of
collection  of such taxes, fines, penalties, costs
or fees, or  charges  by  said  commissioner.  The
commissioner  shall  transmit  to the municipality
all such taxes, fines, penalties, costs  or  fees,
or   charges   so  collected  on  behalf  of  such
municipality on or before the  date  specified  in
such  agreement,  less  the agreed upon collection
fee.  Where  such   an   agreement   exists,   the
commissioner   may  collect,  on  behalf  of  such
municipality, such taxes, fines, penalties,  costs
or  fees, or charges, and all interest, penalties,
fees and other charges added thereto by law, under
the  provisions of section 12-35 as if such taxes,
fines, penalties, costs or fees,  or  charges  due
such  municipality  were  "tax  due the state", as
such term is defined in said section 12-35, and as
if  such  term  expressly  included  taxes, fines,
penalties, costs or fees, or charges due  to  such
municipality.
    Sec.   16.   Section  12-39g  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  Upon  notification  to the Comptroller by
the Commissioner  of  Revenue  Services  that  any
taxes,  including  penalties  and interest related
thereto, are (1) due to the state from any  person
AND  UNPAID  AND A PERIOD IN EXCESS OF THIRTY DAYS
HAS ELAPSED FOLLOWING THE DATE ON WHICH SUCH TAXES
WERE  DUE  AND (2) ARE NOT THE SUBJECT OF A TIMELY
FILED ADMINISTRATIVE APPEAL TO  SAID  COMMISSIONER
OR  OF  A  TIMELY  FILED APPEAL PENDING BEFORE ANY
COURT OF COMPETENT JURISDICTION,  the  Comptroller
shall  withhold  any  order upon the Treasurer for
payment of any amount payable by the state to such
person  unless the amount so payable is reduced by
the amount of such taxes, penalties and  interest,
provided  any  such  amount  payable  by the state
shall not be  so  reduced  if  [(1)]  such  amount
payable  is  a  payment of salary or wages, or any
payment in lieu of or in addition to  such  salary
or  wages, to a state employee. [, (2) such taxes,
penalties and interest have  been  fixed  by  said
commissioner pursuant to a request within the time
allowed under this title  to  correct  the  amount
thereof  or (3) such taxes, penalties and interest
have been determined by said  commissioner  to  be
due  and  such  determination is the subject of an
appeal pending before any court  in  this  state.]
The   Comptroller   shall   promptly   notify  the
Commissioner of Revenue Services  of  any  payment
reduced under the provisions of this section.
    (b)  FOR  PURPOSES  OF  SUBSECTION (a) OF THIS
SECTION, ANY TAXES FOR GENERAL OR SPECIAL PURPOSES
LEVIED  BY A MUNICIPALITY, ANY TAXES IMPOSED UNDER
CHAPTER 223 AND PAYABLE TO SUCH MUNICIPALITY,  ANY
FINES,  PENALTIES,  COSTS  OR FEES PAYABLE TO SUCH
MUNICIPALITY  FOR  THE  VIOLATION  OF  ANY  LAWFUL
REGULATION  OR  ORDINANCE  IN  FURTHERANCE  OF ANY
GENERAL POWERS AS ENUMERATED IN SECTION 7-148,  OR
ANY   CHARGE  PAYABLE  TO  SUCH  MUNICIPALITY  FOR
CONNECTION WITH OR FOR THE USE OF A WATERWORKS  OR
SEWERAGE  SYSTEM  SHALL BE TREATED AS IF THEY WERE
TAXES DUE TO THE STATE, WHERE, PURSUANT TO SECTION
12-2,  AS  AMENDED  BY  SECTION 15 OF THIS ACT, AN
AGREEMENT EXISTS BETWEEN THE COMMISSIONER AND  THE
GOVERNING AUTHORITY OF SUCH MUNICIPALITY PROVIDING
FOR THE COLLECTION BY THE COMMISSIONER, ON  BEHALF
OF   SUCH  MUNICIPALITY,  OF  SUCH  TAXES,  FINES,
PENALTIES, COSTS OR  FEES,  OR  CHARGES,  PROVIDED
SUCH  TAXES,  FINES,  PENALTIES, COSTS OR FEES, OR
CHARGES ARE (1) UNPAID AND A PERIOD IN  EXCESS  OF
THIRTY  DAYS  HAS  ELAPSED  FOLLOWING  THE DATE ON
WHICH THEY WERE DUE AND (2) NOT THE SUBJECT  OF  A
TIMELY  FILED ADMINISTRATIVE APPEAL OR OF A TIMELY
FILED APPEAL PENDING BEFORE ANY COURT OF COMPETENT
JURISDICTION.
    Sec.  17.  Subsection (a) of section 12-739 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)   (1)   The   commissioner,   within   the
applicable period of  limitations  may  credit  an
overpayment  of  income  tax  and interest on such
overpayment against any liability  in  respect  of
any  tax  imposed  by this state on the person who
made the overpayment, and  the  balance  shall  be
refunded  by  the Treasurer out of the proceeds of
the tax retained by him for such general purposes.
    (2)  FOR  PURPOSES  OF  SUBSECTION (a) OF THIS
SECTION, ANY TAXES FOR GENERAL OR SPECIAL PURPOSES
LEVIED  BY A MUNICIPALITY, ANY TAXES IMPOSED UNDER
CHAPTER 223 AND PAYABLE TO SUCH MUNICIPALITY,  ANY
FINES,  PENALTIES,  COSTS  OR FEES PAYABLE TO SUCH
MUNICIPALITY  FOR  THE  VIOLATION  OF  ANY  LAWFUL
REGULATION  OR  ORDINANCE  IN  FURTHERANCE  OF ANY
GENERAL POWERS AS ENUMERATED IN SECTION 7-148,  OR
ANY   CHARGE  PAYABLE  TO  SUCH  MUNICIPALITY  FOR
CONNECTION WITH OR FOR THE USE OF A WATERWORKS  OR
SEWERAGE  SYSTEM  SHALL BE TREATED AS IF THEY WERE
TAXES DUE TO THE STATE, WHERE, PURSUANT TO SECTION
12-2,  AS  AMENDED  BY  SECTION 15 OF THIS ACT, AN
AGREEMENT EXISTS BETWEEN THE COMMISSIONER AND  THE
GOVERNING AUTHORITY OF SUCH MUNICIPALITY PROVIDING
FOR THE COLLECTION BY THE COMMISSIONER, ON  BEHALF
OF   SUCH  MUNICIPALITY,  OF  SUCH  TAXES,  FINES,
PENALTIES, COSTS OR  FEES,  OR  CHARGES,  PROVIDED
SUCH  TAXES,  FINES,  PENALTIES, COSTS OR FEES, OR
CHARGES ARE (A) UNPAID AND A PERIOD IN  EXCESS  OF
THIRTY  DAYS  HAS  ELAPSED  FOLLOWING  THE DATE ON
WHICH THEY WERE DUE AND (B) NOT THE SUBJECT  OF  A
TIMELY  FILED ADMINISTRATIVE APPEAL OR OF A TIMELY
FILED APPEAL PENDING BEFORE ANY COURT OF COMPETENT
JURISDICTION.
    Sec.   18.   Section   4a-78  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    It  is  the  policy  of  the  state to require
persons applying for a license, selling  goods  or
services,  [or]  leasing real or personal property
to a  public  agency,  OR  REGISTERING  ANY  MOTOR
VEHICLE WITH THE COMMISSIONER OF MOTOR VEHICLES to
furnish a federal social security  account  number
or federal employer identification number or both,
if available, to establish the  identification  of
persons  affected by the tax laws of the state and
for that purpose only to treat public agencies  as
having  an  administrative  responsibility for the
tax laws of the state.
    Sec.  19.  (NEW)  (a)  The Department of Motor
Vehicles, as part of any procedure for issuing any
motor  vehicle  registration,  shall  require each
person making  application  for  a  motor  vehicle
registration to provide the owner's federal social
security  account  number  or   federal   employer
identification  number,  or both, if available, to
said department or where such  number  or  numbers
are  unavailable,  the  reason  or reasons for the
unavailability. The  number  or  reason  shall  be
obtained   by  said  department  as  part  of  the
administration  of  taxes  administered   by   the
Commissioner  of  Revenue Services for the purpose
of  establishing  the  identification  of  persons
affected by such taxes.
    (b)  The  Department  of Motor Vehicles shall,
on or before February 1, 2001, and February first,
annually  thereafter,  furnish to the Commissioner
of Revenue Services on a compatible magnetic  tape
file  or in some other form which is acceptable to
said commissioner, a list of all persons  to  whom
motor  vehicle  registrations  were issued by said
department during the preceding calendar year.
    (c)  Each list provided to the Commissioner of
Revenue Services pursuant to  this  section  shall
contain  the  name,  address  and  federal  social
security  account  number  or   federal   employer
identification  number  or  both,  of  each person
named on such list, if available to such agency or
the reason for the unavailability.
    Sec.   20.   Section  12-148  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  Notwithstanding  the  provisions  of  any
general statute  or  special  act  AND  EXCEPT  AS
OTHERWISE   PROVIDED  BY  THIS  SECTION,  the  tax
collector of any municipality may  use  names  and
numbers  or  numbers  only to identify the persons
from whom  moneys  are  collected  each  month  in
accordance  with the provisions of section 12-147.
Such tax collector  may  use  any  tax  accounting
system which has been approved by the Secretary of
the Office of Policy and Management to  list  such
names and numbers or numbers only.
    (b)  Numbers used under subsection (a) of this
section may be Social Security numbers established
under  the  Social  Security  Act,  (42 USC 301 et
seq.),   as   amended   from   time    to    time.
Notwithstanding  the  provisions of sections 1-15,
1-18a, 1-19  to  1-19b,  inclusive,  and  1-21  to
1-21k, inclusive, AND EXCEPT AS OTHERWISE PROVIDED
IN THIS SECTION, the tax collector shall  withhold
from   disclosure   to  any  person  or  state  or
municipal board, commission, department or  agency
any  Social  Security  number  provided TO THE TAX
COLLECTOR under this [subsection] SECTION OR UNDER
SECTION  14-163,  AS AMENDED BY SECTION 21 OF THIS
ACT.
    (c)  FOR  PURPOSES  OF ADMINISTRATION OF STATE
TAXES,  EACH  MUNICIPAL   TAX   COLLECTOR   SHALL,
COMMENCING  NO LATER THAN OCTOBER 1, 1998, COLLECT
FROM  EACH  PERSON  FROM  WHOM  PROPERTY  TAX   IS
COLLECTED, A SOCIAL SECURITY NUMBER, IF THE PERSON
IS   AN   INDIVIDUAL,    OR    FEDERAL    EMPLOYER
IDENTIFICATION  NUMBER,  IF  THE  PERSON IS NOT AN
INDIVIDUAL, AND SHALL PROVIDE SUCH INFORMATION  TO
THE  COMMISSIONER OF REVENUE SERVICES TO ESTABLISH
THE IDENTIFICATION OF PERSONS AFFECTED BY THE  TAX
LAWS  OF THE STATE. EACH PERSON FROM WHOM PROPERTY
TAX IS COLLECTED SHALL PROVIDE  TO  THE  MUNICIPAL
TAX  COLLECTOR,  IN THE CASE OF A PERSON WHO IS AN
INDIVIDUAL, SUCH PERSON'S SOCIAL  SECURITY  NUMBER
OR,  IN  THE  CASE  OF  A  PERSON  WHO  IS  NOT AN
INDIVIDUAL,   SUCH   PERSON'S   FEDERAL   EMPLOYER
IDENTIFICATION  NUMBER. ANY PERSON RECEIVING FUNDS
FROM A MORTGAGOR TO BE HELD IN ESCROW FOR  PAYMENT
OF PROPERTY TAXES SHALL PROVIDE TO SUCH COLLECTOR,
IN THE CASE OF A MORTGAGOR WHO IS  AN  INDIVIDUAL,
SUCH MORTGAGOR'S SOCIAL SECURITY NUMBER OR, IN THE
CASE OF A MORTGAGOR WHO IS NOT AN INDIVIDUAL, SUCH
MORTGAGOR'S    FEDERAL   EMPLOYER   IDENTIFICATION
NUMBER. A MUNICIPAL TAX  COLLECTOR  SHALL  NOT  BE
REQUIRED  TO  COLLECT  ANY SOCIAL SECURITY NUMBER,
FOR A PERSON WHO IS AN INDIVIDUAL, OR ANY  FEDERAL
EMPLOYER  IDENTIFICATION  NUMBER, FOR A PERSON WHO
IS NOT AN INDIVIDUAL, IF SUCH COLLECTOR  HAS  BEEN
PROVIDED  SUCH  NUMBER  UNDER  SECTION  14-163, AS
AMENDED BY SECTION 21 OF THIS ACT.
    (d)  THE  TAX  COLLECTOR  SHALL,  ON OR BEFORE
FEBRUARY 1, 2000,  AND  FEBRUARY  FIRST,  ANNUALLY
THEREAFTER, FURNISH TO THE COMMISSIONER OF REVENUE
SERVICES, ON A COMPATIBLE MAGNETIC TAPE FILE OR IN
SOME   OTHER  FORM  WHICH  IS  ACCEPTABLE  TO  THE
COMMISSIONER, A LIST  OF  ALL  PERSONS  FROM  WHOM
PROPERTY  TAX  WAS  COLLECTED DURING THE PRECEDING
CALENDAR YEAR OR FROM WHOM PROPERTY  TAX  WAS  DUE
BUT  NOT  COLLECTED  DURING THE PRECEDING CALENDAR
YEAR.  EACH  LIST  PROVIDED  TO  THE  COMMISSIONER
PURSUANT  TO  THIS  SUBSECTION  SHALL  CONTAIN THE
NAME,  ADDRESS  AND  SOCIAL  SECURITY  NUMBER   OR
FEDERAL  EMPLOYER  IDENTIFICATION  NUMBER  OF EACH
PERSON NAMED ON SUCH LIST, THE AMOUNT OF  PROPERTY
TAX  COLLECTED  AND  THE DATE OR DATES ON WHICH IT
WAS COLLECTED, AND, IF THE PROPERTY  TAX  WAS  DUE
BUT   NOT   COLLECTED,   THE  AMOUNT  OF  TAX  NOT
COLLECTED.
    (e)  NO  TAX  CREDIT  OTHERWISE ALLOWABLE TO A
PERSON  UNDER  THE  PROVISIONS  OF   THE   GENERAL
STATUTES  ON  ACCOUNT  OF  THE PAYMENT OF PROPERTY
TAXES  TO  A  CONNECTICUT  MUNICIPALITY  SHALL  BE
ALLOWED  TO  ANY  PERSON WHO DOES NOT FURNISH TO A
MUNICIPAL  TAX  COLLECTOR,  AS  REQUIRED  BY  THIS
SECTION,  SUCH  PERSON'S SOCIAL SECURITY NUMBER OR
FEDERAL EMPLOYER IDENTIFICATION NUMBER.
    Sec.   21.   Section  14-163  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    The  commissioner,  on or before the first day
of December, annually, shall furnish  to  the  tax
assessors in each town a list containing the names
and addresses of the owners of motor vehicles  and
snowmobiles residing in their respective towns, as
they appear by the records of  the  Department  of
Motor   Vehicles,   with  a  description  of  such
vehicles. THE COMMISSIONER  SHALL,  ON  OR  BEFORE
DECEMBER  1,  2000,  AND  DECEMBER FIRST, ANNUALLY
THEREAFTER, FURNISH TO THE TAX ASSESSORS  IN  EACH
TOWN AND TO THE COMMISSIONER OF REVENUE SERVICES A
LIST CONTAINING THE NAMES, ADDRESSES  AND  FEDERAL
SOCIAL   SECURITY   ACCOUNT   NUMBERS  OR  FEDERAL
EMPLOYER  IDENTIFICATION  NUMBERS,  OR  BOTH,   IF
AVAILABLE,   OF   THE  OWNERS  OF  MOTOR  VEHICLES
RESIDING IN THEIR RESPECTIVE TOWNS, AS THEY APPEAR
BY  THE  RECORDS  OF THE MOTOR VEHICLE DEPARTMENT,
WITH A DESCRIPTION OF SUCH VEHICLES, IN  ORDER  TO
ESTABLISH  THE  IDENTIFICATION OF PERSONS AFFECTED
BY THE TAX LAWS OF THE STATE. NOTWITHSTANDING  THE
PROVISIONS OF SECTIONS 1-15, 1-18a, 1-19 TO 1-19b,
INCLUSIVE,  AND  1-21  TO  1-21k,  INCLUSIVE,  AND
EXCEPT  AS OTHERWISE PROVIDED BY THIS SECTION, THE
TAX ASSESSOR IN EACH TOWN SHALL  NOT  DISCLOSE  TO
ANY   PERSON   OR   STATE   OR   MUNICIPAL  BOARD,
COMMISSION,  DEPARTMENT  OR  AGENCY   ANY   SOCIAL
SECURITY NUMBER OR FEDERAL EMPLOYER IDENTIFICATION
NUMBER  FURNISHED  TO  SUCH  ASSESSOR  UNDER  THIS
SECTION,   EXCEPT  THAT  THE  TAX  ASSESSOR  SHALL
DISCLOSE SUCH SOCIAL SECURITY NUMBERS  OR  FEDERAL
EMPLOYER   IDENTIFICATION   NUMBERS   TO  THE  TAX
COLLECTOR  IN  SUCH  TOWN,  FOR  THE  PURPOSES  OF
SECTION  12-148,  AS AMENDED BY SECTION 20 OF THIS
ACT.
    Sec.  22.  Sections 12-704a and 12-704b of the
general statutes are repealed.
    Sec.  23.  This  act shall take effect July 1,
1997,  except  that  (1)  section   1   shall   be
applicable  to  sales  occurring  on or after said
date; (2) sections 7 and 17 shall be applicable to
income  years  commencing  on  or after January 1,
1997; (3) section 9 shall be applicable to  income
years  commencing on or after January 1, 1998; (4)
sections 15, 16 and 18 shall take  effect  October
1,  1999;  and (5) section 8 shall take effect the
later of July 1, 1997, or the  first  day  of  the
calendar  month  immediately  following  the  last
action necessary to make effective a final  budget
for  the  biennium  ending June 30, 1999, provided
for  purposes  of  this  section  any  legislative
action  to  continue  the  appropriations  for the
fiscal year ending June 30, 1997, with adjustments
shall  not  constitute  a  final  budget  for  the
biennium  ending  June  30,  1999,  and  shall  be
applicable  to income years commencing on or after
January 1, 1998.

Approved June 6, 1997