Connecticut Seal

Substitute House Bill No. 6625

Public Act No. 03-107

AN ACT CONCERNING CERTAIN ADMINISTRATIVE PROCEDURES OF THE DEPARTMENT OF REVENUE SERVICES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsections (a) and (b) of section 12-35a of the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2003):

(a) Whenever used in this section, unless the context otherwise requires: (1) "Goods" means goods, as defined in subdivision (44) of subsection (a) of section 42a-9-102; (2) "proceeds" means proceeds, as defined in subdivision (64) of subsection (a) of section 42a-9-102; (3) "debtor" means the taxpayer; (4) "secured party" means the state of Connecticut; (5) "collateral" means property which is the subject of the tax lien; (6) "obligations" means amount of tax and accrued penalties and interest claimed to be due the state in relation to the tax lien; (7) "person" means any individual, trust, partnership, association, company, limited liability company or corporation; (8) "purchase money security interest" means purchase money security interest, as defined in section 42a-9-103a; (9) "commercial transactions financing agreement" means an agreement entered into by a person in the course of his trade or business to make loans to the taxpayer, part or all of the security for repayment of any such loan being inventory acquired by the taxpayer in the ordinary course of trade or business; (10) "qualified property" when used with respect to a commercial transactions financing agreement, means inventory; (11) "obligatory disbursement agreement" means an agreement, entered into by a person in the course of trade or business, to make disbursements but such an agreement shall be considered within this term only to the extent of disbursements which are required to be made by reason of the intervention of the rights of a person other than the taxpayer; (12) "qualified property" when used with respect to obligatory disbursement agreement, means property subject to the lien imposed in accordance with this section, at the time of tax lien filing and, to the extent that the acquisition is directly traceable to the disbursements under an obligatory disbursement agreement, property acquired by the taxpayer after the time of tax lien filing; (13) "inventory" means inventory, as defined in subdivision (48) of subsection (a) of section 42a-9-102; (14) "lien creditor" means lien creditor, as [that term is] defined in subdivision (52) of subsection (a) of section 42a-9-102; (15) "account" means account, as defined in subdivision (2) of subsection (a) of section 42a-9-102; (16) "chattel paper" means chattel paper, as defined in subdivision (11) of subsection (a) of section 42a-9-102; (17) "commercial tort claim" means commercial tort claim, as defined in subdivision (13) of subsection (a) of section 42a-9-102; (18) "deposit account" means deposit account, as defined in subdivision (29) of subsection (a) of section 42a-9-102; (19) "document" means document, as defined in subdivision (30) of subsection (a) of section 42a-9-102; (20) "general intangible" means general intangible, as defined in subdivision (42) of subsection (a) of section 42a-9-102; (21) "instrument" means instrument, as defined in subdivision (47) of subsection (a) of section 42a-9-102; (22) "investment property" means investment property, as defined in subdivision (49) of subsection (a) of section 42a-9-102; (23) "filing office" means filing office, as defined in subdivision (37) of subsection (a) of section 42a-9-102; and (24) "state" means state, as defined in subdivision (76) of subsection (a) of section 42a-9-102, except that "the state" or "this state" means the state of Connecticut.

(b) Upon failure of any person to pay any tax, except taxes under chapter 216, due the state within thirty days from its due date, or if before the due date of any tax, except taxes under [said] chapter 216, the Commissioner of Revenue Services believes that the collection of such tax will be jeopardized by delay, the state shall have a lien, upon perfection as hereinafter provided, upon the goods, accounts, chattel paper, instruments, documents, investment property, deposit accounts, commercial tort claims and general intangibles situated in this state and owned by the taxpayer upon the date of perfection, or upon the goods, accounts, chattel paper, instruments, documents, investment property, deposit accounts, commercial tort claims and general intangibles thereafter acquired by the taxpayer. Such lien shall attach and become perfected at the time when notice of such lien is filed pursuant to the filing provisions of part 5 of article 9 of title 42a, except that the signature of the taxpayer against whose property the lien is claimed shall not be required on said notice of lien and, in each case, the lien shall be filed as if the debtor were located in this state. Nothing in this section shall be construed as prohibiting the commissioner from filing both a notice of lien as if the debtor were located in this state and a notice of lien with the filing office of a state other than this state, if the commissioner determines that it would be beneficial to this state to do so. Except as hereinafter provided, upon perfection, such lien shall have priority over all subsequently perfected liens and security interests.

Sec. 2. Section 12-39r of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Commissioner of Revenue Services may allow the payment of taxes, penalties, interest and fees by means of a credit card, charge card or debit card and may charge the taxpayer a service fee for any such payment made by [credit] any such card. The fee shall not exceed any charge by the [credit] card issuer, including any discount rate. Payments by [credit] any such card shall be made at such times and under such conditions as said commissioner may prescribe. The debt incurred through the payment of taxes by means of [a credit] any such card shall not be considered a tax collectible pursuant to the provisions of sections 12-35a, as amended by this act, and 12-35b.

Sec. 3. Section 12-497a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

[Neither the tax imposed by section 12-494 nor the requirement of filing a return prescribed by the Commissioner of Revenue Services imposed by section 12-497 shall apply to the transfer of burial rights for a lot in a cemetery organized pursuant to chapter 368j. ]

(a) The tax imposed by section 12-494 and the requirement of filing a return pursuant to section 12-497 shall not apply to the transfer of burial rights for a lot in a cemetery organized pursuant to chapter 368j.

(b) The requirement of filing a return pursuant to section 12-497 shall not apply to any deed, instrument or writing which is solely a grant of easement and to which this state or any of its political subdivisions or its or their respective agencies is a party.

Sec. 4. Section 12-707 of the general statutes is repealed and the following is substituted in lieu thereof (Effective for calendar years commencing on or after January 1, 2003):

(a) Each employer required to deduct and withhold tax under this chapter shall be liable for such tax and shall file a withholding return as prescribed by the Commissioner of Revenue Services and pay over to the commissioner, or to a depositary designated by the commissioner, the taxes so required to be deducted and withheld at the same times that such employer is required, under federal law and regulations, to pay over federal taxes that are required to be deducted and withheld from wages of employees, except if the amount of taxes required to be deducted and withheld in a calendar quarter is less than five hundred dollars and if the employer is required, under federal law and regulations, to pay over federal taxes that are required to be deducted and withheld from wages of employees on or before the last day of the month next succeeding such calendar quarter, the employer shall file a withholding return and pay over such taxes on or before the last day of the month next succeeding the calendar quarter for which the taxes were deducted and withheld. In the case of an overpayment of tax under this chapter by an employer, refund or credit shall be made to the employer only to the extent that the amount of such overpayment was not deducted and withheld by the employer.

(b) [Such] The amount of tax required to be deducted and withheld and paid over to the commissioner under this chapter, when so deducted and withheld, shall be held to be a special fund in trust for the state. No employee or other person shall have any right of action against the employer in respect to any moneys deducted and withheld from wages and paid over to the commissioner in compliance or in intended compliance with this chapter.

Sec. 5. Section 12-730 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Notwithstanding the provisions of chapter 54 to the contrary, any taxpayer aggrieved because of any determination or disallowance by the commissioner under section 12-729, 12-729a or 12-732 may, within one month after notice of the commissioner's determination or disallowance is mailed to the taxpayer, take an appeal therefrom to the superior court for the judicial district of New Britain, which shall be accompanied by a citation to the commissioner to appear before said court. Such citation shall be signed by the same authority, and such appeal shall be returnable at the same time and served and returned in the same manner, as is required in case of a summons in a civil action. The authority issuing the citation shall take from the appellant a bond or recognizance to the state of Connecticut, with surety to prosecute the appeal to effect and to comply with the orders and decrees of the court in the premises. Such appeals shall be preferred cases, to be heard unless cause appears to the contrary, at the first session by the court or by a committee appointed by it. Said court may grant such relief as may be equitable and, if such tax has been paid prior to the granting of such relief, may order the Treasurer to pay the amount of such relief, with interest at the rate of two-thirds of one per cent per month or fraction thereof, to the aggrieved taxpayer. If the appeal has been taken without probable cause, the court may charge double or triple costs, as the case demands, and upon all such appeals which may be denied, costs may be taxed against the appellant at the discretion of the court but no costs shall be taxed against the state.

Sec. 6. (NEW) (Effective from passage and applicable to tax returns first required to be filed with the Commissioner of Revenue Services on or after January 1, 2004) (a) The Commissioner of Revenue Services may require, with respect to any amount required to be shown on a form prescribed for any return, statement or other document required to be filed with the commissioner under authority of any provision of the general statutes, that if such amount of such item is other than a whole-dollar amount, either (1) the fractional part of a dollar shall be disregarded; or (2) the fractional part of a dollar shall be disregarded unless it amounts to one-half dollar or more, in which case the amount, determined without regard to the fractional part of a dollar, shall be increased by one dollar.

(b) The provisions of subsection (a) of this section shall not be applicable to items which are required to be taken into account in making the computations necessary to determine the amount required to be shown on a form, but shall be applicable only to such final amount.

Sec. 7. Section 12-478 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Whenever used in this chapter:

(1) "Motor carrier" means every person, firm or corporation which operates or causes to be operated on any highway in this state any qualified motor vehicle;

(2) "Operations" means operations of all such vehicles, whether loaded or empty, whether or not for compensation and whether owned by or leased to the motor carrier which operates them or causes them to be operated;

(3) "Motor fuel" means "fuels" as defined in section 12-455a; and

[(4) "Charter" or "special operations" means the transportation of a group of persons who, pursuant to a common purpose and under a single contract and at a fixed charge for the vehicle, have acquired the exclusive use of a motor bus to travel together as a group to a specified destination or for a particular itinerary, either agreed upon in advance or modified by the charter group after leaving the place of origin; and]

[(5)] (4) "Qualified motor vehicle" means a motor vehicle that is used, designed or maintained for transportation of persons or property and that (A) has two axles and a gross vehicle weight or registered gross vehicle weight exceeding twenty-six thousand pounds; or (B) has three or more axles regardless of weight; or (C) is used in combination and the combined gross vehicle weight or registered gross vehicle weight exceeds twenty-six thousand pounds; but does not include a recreation vehicle that is used exclusively for personal pleasure, and not used in connection with any trade or business, by an individual.

Sec. 8. Subdivision (4) of section 52-350a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(4) "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of amounts required to be withheld for payment of federal income and employment taxes, normal retirement contributions, union dues and initiation fees, group life insurance premiums, health insurance premiums, and federal tax levies. [, and state income tax deductions authorized pursuant to section 12-34b. ]

Sec. 9. Subsection (i) of section 52-361a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(i) Any assignment by an employee of his earnings shall be void except (1) payments due for support in public welfare cases [,] and payments pursuant to a family support judgment, [and assignments provided for in section 12-34b,] and (2) deductions for union dues and initiation fees in accordance with the terms of a duly executed contract between an employer and his employees or a collective bargaining agent or in accordance with a duly executed authorization signed by the employee for the payment of such dues or initiation fees or both to such collective bargaining agent.

Sec. 10. Subsection (a) of section 31-71b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) [Except as otherwise provided in section 12-34b, each] Each employer, by himself, his agent or representative, shall pay weekly all moneys due each employee on a regular pay day, designated in advance by the employer, in cash, by negotiable checks or, upon an employee's written request, by credit to such employee's account in any bank which has agreed with the employer to accept such wage deposits.

Sec. 11. (Effective from passage) Sections 12-34b and 12-484a of the general statutes are repealed.

Approved June 18, 2003