House Bill No. 7069
House Bill No. 7069
PUBLIC ACT NO. 97-322
AN ACT CONCERNING THE STATE BUDGET AND TAX
REDUCTIONS FOR THE BIENNIUM ENDING JUNE 30, 1999.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Notwithstanding the provisions of
section 81 of special act 97-21, in the event of
financial exigency, and after first realizing
savings as a result of not filling existing funded
vacancies, the Governor may order additional
layoffs to the extent necessary to achieve the
savings attributable to (1) the elimination of
agency programs and services, reductions in agency
position counts and line item reductions in agency
personal services required by said act, (2) the
early retirement incentive program established by
said section 81 in an amount not to exceed the
savings set forth in said act and (3) the
privatizing of information technology services in
an amount not to exceed the savings set forth in
said act.
Sec. 2. Section 83 of special act 97-21 is
repealed and the following is substituted in lieu
thereof:
(a) From July 1, 1997, to June 30, 1999,
inclusive, no contracts or amendments to contracts
for information system or telecommunication system
facilities, equipment or services, [which, in the
aggregate, have a value in excess of ten million
dollars] ENTERED INTO PURSUANT TO THE REQUEST FOR
PROPOSAL ISSUED BY THE DEPARTMENT OF
ADMINISTRATIVE SERVICES DATED FEBRUARY 21, 1997,
executed by any state agency shall be effective
except as provided in this section and sections 84
and 85 of [this act] SPECIAL ACT 97-21.
(b) Upon the execution of any contract or
amendment which exceeds such aggregate amount, and
upon the execution of any subsequent contract or
amendment, the state agency shall promptly file
the contract or amendment with the State Auditors.
(c) Not later than [ninety] SEVENTY-FIVE days
after any such contract or amendment is filed with
the State Auditors, such auditors (1) shall
conduct an independent evaluation of the contract
or amendment to determine whether the [selection
of the contractor and] the provisions of the
contract or amendment serve the best interests of
the state, including, but not limited to, (A)
efficiency, (B) economy, (C) contractor
qualifications, including, but not limited to,
capacity for performance and accountability, and
(D) effective delivery of services, and (2) shall
submit a report on their findings and conclusions,
and the contract or amendment, to the General
Assembly, through the clerks of the House of
Representatives and the Senate. The State Auditors
may execute contracts with independent consultants
for assistance in conducting such evaluation and
preparing such report.
(d) Upon receipt of a report and a contract or
amendment from the State Auditors under subsection
(c) of this section, the speaker of the House of
Representatives and the president pro tempore of
the Senate shall refer the report and contract or
amendment to the joint standing committees of the
General Assembly having cognizance of matters
relating to appropriations and the budgets of
state agencies and government administration, for
their review. Such contract or amendment shall
take effect [sixty] FORTY-FIVE days after the
State Auditors submit the report and contract or
amendment to the General Assembly unless the
General Assembly rejects such contract or
amendment as a whole by a [majority] THREE-FIFTHS
vote of [both houses] EITHER HOUSE.
Sec. 3. The appropriation to the Department of
Social Services in section 11 of special act 97-21
for Disproportionate Share - Medical Emergency
Assistance, is reduced by $34,000,000.
Sec. 4. Section 7 of public act 97-309 is
repealed and the following is substituted in lieu
thereof:
(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] EIGHTY-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. 5. Subsection (a) of section 12-700 of
the general statutes, as amended by section 8 of
public act 97-309, 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, 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] $6,250 3.0%
Over [$4,500] $6,250 [$135.00] $187.50
plus 4.5% of the
excess over
[$4,500] $6,250
(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 [$7,000] $10,000 3.0%
Over [$7,000] $10,000 [$210.00] $300.00,
plus 4.5%
of the excess over
[$7,000] $10,000
(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] $12,500 3.0%
Over [$9,000] $12,500 [$270.00] $375.00,
plus 4.5% of
the excess over
[$9,000] $12,500
(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] $10,000 3.0%
Over [$9,000] $10,000 [$270.00] $300.00,
plus 4.5% of the
excess over
[$9,000] $10,000
(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] $16,000 3.0%
Over [$15,000] $16,000 [$450.00] $480.00,
plus 4.5% of the
excess over
[$15,000] $16,000
(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] $20,000 3.0%
Over [$18,000] $20,000 [$540.00] $600.00,
plus 4.5% of
the excess over
[$18,000] $20,000
(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. 6. Section 12-700b of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) For the purposes of computing the tax
pursuant to section 12-705 or section 12-722 for
the period prior to July 1, 1996, such tax shall
be computed without regard to the rate established
in subdivision (2) of subsection (a) of section
12-700. The Commissioner of Revenue Services shall
issue new withholding tables effective July 1,
1996.
(b) FOR THE PURPOSES OF COMPUTING THE TAX
PURSUANT TO SECTION 12-705 OR SECTION 12-722 FOR
THE PERIOD PRIOR TO JULY 1, 1998, SUCH TAX SHALL
BE COMPUTED WITHOUT REGARD TO THE RATE ESTABLISHED
IN SUBDIVISION (3) OR (4) OF SUBSECTION (a) OF
SECTION 12-700. THE COMMISSIONER OF REVENUE
SERVICES SHALL ISSUE NEW WITHHOLDING TABLES
EFFECTIVE JULY 1, 1998.
Sec. 7. Section 23 of public act 97-309 is
repealed and the following is substituted in lieu
thereof:
[This act] PUBLIC ACT 97-309 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 22] 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, 19 AND 21
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] 1997.
Sec. 8. An affirmative or negative vote on
this bill shall be construed to also be an
affirmative or negative vote, respectively, on
special act 97-21 and public act 97-309.
Sec. 9. This act shall take effect July 1,
1997.
Approved June 6, 1997