Substitute House Bill No. 6109
          Substitute House Bill No. 6109

              PUBLIC ACT NO. 97-315


AN ACT CONCERNING THE EXEMPTION FROM THE SALES TAX
FOR LOW AND  MODERATE  INCOME  HOUSING FACILITIES,
EXEMPTIONS  FROM  THE   ADMISSIONS   TAX   AND  AN
ALLOCATION OF HOTEL SALES TAX RECEIPTS.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 1. Subsection  (29)  of section 12-412
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (29) Sales of  and  the  storage, use or other
consumption of tangible personal property acquired
for incorporation into or used and consumed in the
operation  of  housing   facilities  for  low  and
moderate  income families  and  persons,  provided
such   facilities  are   constructed   under   the
sponsorship of and  owned or operated by nonprofit
housing  organizations  AND   SALES   OF  AND  THE
ACCEPTANCE,  USE  OR   OTHER  CONSUMPTION  OF  ANY
SERVICE DESCRIBED IN  ANY  OF  THE SUBDIVISIONS OF
SUBSECTION (2) OF  SECTION  12-407 THAT IS USED OR
CONSUMED   IN   THE   DEVELOPMENT,   CONSTRUCTION,
RENOVATION OR OPERATION  OF HOUSING FACILITIES FOR
LOW  AND MODERATE  INCOME  FAMILIES  AND  PERSONS,
PROVIDED SUCH FACILITIES ARE OWNED OR SPONSORED BY
A  MUTUAL  HOUSING   ASSOCIATION,  AS  DEFINED  IN
SUBSECTION (b) OF  SECTION 8-214f, AND OPERATED AS
MUTUAL HOUSING BY  SUCH  ASSOCIATION AT A LOCATION
THAT  WAS CONVEYED  TO  SUCH  ASSOCIATION  BY  THE
UNITED  STATES  SECRETARY  OF  HOUSING  AND  URBAN
DEVELOPMENT PRIOR TO  SEPTEMBER  1,  1995. For the
purposes  of  this   subsection,   (A)  "nonprofit
housing   organization"  means   any   Connecticut
organization which has  as one of its purposes the
development,    construction,    sponsorship    or
ownership of housing  for  low and moderate income
families, and which  has  received  exemption from
federal income tax under the provisions of Section
501(c) of the  Internal  Revenue  Code, as amended
from time to  time,  provided  the charter of such
organization,  if  it   is  incorporated,  or  its
constitution or bylaws,  if  unincorporated, shall
contain a provision  that  no  officer,  member or
employee thereof shall  receive  or  at any future
time may receive  any  pecuniary  profit  from the
operation    thereof,    except    a    reasonable
compensation  for  services   in   effecting   the
purposes  of  the   organization;   (B)   "housing
facilities"  means  facilities   having  as  their
primary purpose the provision of safe and adequate
housing  and  related   facilities   for  low  and
moderate    income    families     and    persons,
notwithstanding that said  housing  provides other
dwelling accommodations in addition to the primary
purpose of providing  dwelling  accommodations for
low and moderate  income  families;  (C)  "related
facilities"  means  those  facilities  defined  in
subsection (d) of  section 8-243; and (D) "low and
moderate income families"  means those families as
defined in subsection (h) of said section 8-243.
    Sec. 2. Section 12-541 of the general statutes
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] NOT MORE
than [two] FOUR  dollars AND FIFTY CENTS, (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 17b-425,
(7) to any  production featuring live performances
by  actors or  musicians  presented  at  GATEWAY'S
CANDLEWOOD  PLAYHOUSE, OCEAN  BEACH  PARK  OR  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. 3. Subsection  (a)  of  section 32-305 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) The Commissioner of Revenue Services shall
segregate (1) one  and  one-half  per  cent of the
gross receipts from  the tax from sales within the
meaning of subdivision  (h)  of  subsection (2) of
section  12-407 by  any  hotel  or  lodging  house
located in any municipality having a population of
less  than  sixty-five  thousand,  (2)  three  and
one-half per cent  of the gross receipts from such
tax in any  municipality  having  a  population of
sixty-five  thousand  or   more   but   less  than
seventy-five thousand, and  (3)  four and one-half
per cent of  the  gross  receipts from such tax in
any   municipality   having    a   population   of
seventy-five  thousand  or   more,   provided  the
commissioner shall segregate  three  and  one-half
per cent of  the  gross  receipts from such tax in
the municipality having  the  most popular tourist
attraction in the  state,  as  determined  by  the
Office of Tourism,  if  such  municipality  has  a
population of less  than sixty-five thousand. Such
segregated funds shall  be  allocated  to  tourism
districts  established  under  section  32-302  as
follows: The portion  of the funds attributable to
such  tax receipts  in  a  municipality  shall  be
allocated to the  tourism  district  in  which the
municipality is located,  provided (A) one hundred
per cent of  the  amount  attributable to such tax
receipts from sales in Hartford shall be allocated
to the Connecticut  Convention  Center  Authority,
(B)   seventy-five  per   cent   of   the   amount
attributable to such  tax  receipts  from sales in
New Haven shall  be  allocated  to  the  New Haven
Coliseum Authority, (C)  seventy-five  per cent of
the amount attributable  to such tax receipts from
sales  in  Stamford  shall  be  allocated  to  the
Stamford Center for the Arts, (D) seventy-five per
cent  of  the  amount  attributable  to  such  tax
receipts from sales  in Norwalk shall be allocated
to  the  Maritime   Center   Authority   and   (E)
seventy-five per cent  of  the amount attributable
to such tax  receipts  from  sales  in  Bridgeport
shall  be  allocated   to  the  Greater  Fairfield
district established in  section  32-302,  for the
sole  purpose  of  marketing  tourist  attractions
located in Bridgeport.  If  for  any  state fiscal
year   the  amount   of   the   allocation   under
subparagraph (E) is  less than the amount of funds
allocated during the  fiscal  year ending June 30,
1991, to the  then  existing Bridgeport convention
and visitors bureau,  pursuant  to sections 7-136b
and 7-136c of  the  general  statutes,  revised to
January 1, 1991,  the  Connecticut Tourism Council
shall provide a  grant  under section 32-300, from
the  tourism  account,   in  the  amount  of  such
difference, to said Greater Fairfield district for
the  purpose  set   forth   in  subparagraph  (E).
NOTWITHSTANDING THE PROVISIONS  OF  THIS  SECTION,
FOR THE FISCAL YEAR 1997-1998, THE COMMISSIONER OF
REVENUE SERVICES SHALL SEGREGATE ONE HUNDRED FIFTY
THOUSAND DOLLARS FROM  ANY INCREASE IN RECEIPTS OF
SUCH TAX OVER  THE  AMOUNT RECEIVED IN FISCAL YEAR
1996-1997  AND  SHALL   ALLOCATE  SUCH  SEGREGATED
AMOUNT TO THE  CONNECTICUT  FILM,  VIDEO AND MEDIA
OFFICE   PROVIDED  THE   AMOUNT   SEGREGATED   AND
ALLOCATED TO ANY  ENTITY UNDER THIS SECTION IS NOT
LESS THAN THE  AMOUNT  SEGREGATED AND ALLOCATED IN
FISCAL YEAR 1996-1997.  Not  later than October 1,
1994,  and  annually   thereafter,   each  tourism
district and each  authority receiving funds under
this  section  shall  submit  to  the  Connecticut
Tourism Council a  full  audit  of  the  books and
accounts of the  district  or  authority  for  the
preceding fiscal year.  Each  such  audit shall be
conducted  by  an   independent  certified  public
accountant. The Commissioner  of  Revenue Services
shall also segregate  an  additional  one  million
dollars of the gross receipts from such tax in the
state during each  state  fiscal year and allocate
such funds to  the  cultural  heritage development
account established under  section  10-373bb.  The
Commissioner  of  Revenue   Services   may   adopt
regulations, in accordance  with the provisions of
chapter  54,  concerning   accounting   procedures
necessary  to  carry  out  the  purposes  of  this
section.
    Sec. 4. This  act  shall  take effect from its
passage, except that section 1 shall be applicable
to sales occurring  on or after September 1, 1995,
and  section  2   shall  be  applicable  to  sales
occurring on or after July 1, 1997.

Approved July 10, 1997