AN ACT ESTABLISHING PILOT PROGRAMS EXEMPTING HUBZONE BUSINESSES FROM THE SALES TAX.

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

Section 1. (NEW) (Effective July 1, 2006) (a) The Commissioner of Economic and Community Development, in consultation with the Commissioner of Revenue Services, shall establish three pilot programs exempting from the application of the sales tax, imposed under chapter 219 of the general statutes, purchases of tangible personal property or services by certified HUBZone small businesses located in an area that qualifies as an historically underutilized business zone pursuant to Title VI (HUBZone Act of 1997) of the Small Business Reorganization Act of 1997 (P.L. 105-135). The commissioner shall establish one such pilot program in a municipality located in Hartford county, one in a municipality located in Fairfield county and one in a municipality located in New Haven county. The pilot programs shall terminate on June 30, 2011.

(b) On or before October 1, 2007, and annually thereafter until October 1, 2011, the commissioner shall submit a report to the joint standing committees of the General Assembly having cognizance of matters relating to economic and community development and finance, revenue and bonding on the pilot programs established pursuant to this section.