"AN ACT CONCERNING THE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2013. "

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. Subparagraph (I) of subdivision (37) of subsection (a) of section 12-407 of the general statutes, as amended by section 88 of public act 11-6, is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(I) Services to industrial, commercial or income-producing real property, including, but not limited to, such services as management, electrical, plumbing, painting and carpentry and excluding any such services rendered in the voluntary evaluation, prevention, treatment, containment or removal of hazardous waste, as defined in section 22a-115, or other contaminants of air, water or soil, provided income-producing property shall not include property used exclusively for residential purposes in which the owner resides and which contains no more than three dwelling units, or a housing facility for low and moderate income families and persons owned or operated by a nonprofit housing organization, as defined in subdivision (29) of section 12-412;

Sec. 502. Subparagraph (N) of subdivision (37) of subsection (a) of section 12-407 of the general statutes, as amended by section 89 of public act 11-6, is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(N) Motor vehicle parking, including the provision of space, other than metered space, in a lot having thirty or more spaces, excluding (i) space in a seasonal parking lot provided by a person who is exempt from taxation under this chapter pursuant to subdivision (1), (5) or (8) of section 12-412, (ii) space in a parking lot owned or leased under the terms of a lease of not less than ten years' duration and operated by an employer for the exclusive use of its employees, [and] (iii) valet parking provided at any airport, and (iv) space in municipally-operated railroad parking facilities in municipalities located within an area of the state designated as a severe nonattainment area for ozone under the federal Clean Air Act or space in a railroad parking facility in a municipality located within an area of the state designated as a severe nonattainment area for ozone under the federal Clean Air Act owned or operated by the state on or after April 1, 2000;

Sec. 503. Subparagraph (FF) of subdivision (37) of subsection (a) of section 12-407 of the general statutes, as amended by section 91 of public act 11-6, is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(FF) Health and athletic club services, exclusive of (i) any such services provided without any additional charge which are included in any dues or initiation fees paid to any such club, which dues or fees are subject to tax under section 12-543, [and] (ii) any such services provided by a municipality or an organization that is described in Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and (iii) yoga instruction provided at a yoga studio.

Sec. 504. Subdivision (1) of section 12-408 of the general statutes, as amended by section 93 of public act 11-6 and section 42 of public act 11-61, is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six [and thirty-five-hundredths] per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or from the rendering of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate of six [and thirty-five-hundredths] per cent, the rates provided in subparagraphs (B) to (F), inclusive, of this subdivision;

(B) At a rate of fifteen per cent with respect to each transfer of occupancy, from the total amount of rent received for such occupancy of any room or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;

(C) With respect to the sale of a motor vehicle to any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse thereof, at a rate of four and one-half per cent of the gross receipts of any retailer from such sales, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

(D) (i) With respect to the sales of computer and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent, on or after July 1, 2001, at the rate of one per cent, and (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;

(E) With respect to the sales of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;

(F) With respect to patient care services for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;

(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent; and

[(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven per cent on the entire sales price, (ii) a vessel for a sales price exceeding one hundred thousand dollars, at a rate of seven per cent on the entire sales price, (iii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven per cent on the entire sales price, and (iv) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven per cent on the entire sales price. For purposes of this subparagraph, "motor vehicle" shall have the meaning provided in section 14-1, but shall not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles; ]

[(I)] (H) The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate which represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date of the new rate and delivery is made within ninety days after the effective date of the new rate. For the purposes of payment of the tax imposed under this section, any retailer of services taxable under subparagraph (I) of subdivision (2) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered. [; ]

[(J) For calendar quarters ending on or after September 30, 2011, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 96 of this act, one and fifty-seven-hundredths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, and one and forty-three-hundredths of the amounts received by the state from the tax imposed under subparagraph (H) of this subdivision; and

(K) For calendar quarters ending on or after September 30, 2011, the commissioner shall deposit into the regional performance incentive account established pursuant to section 95 of this act, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision. ]

Sec. 505. Subdivision (3) of section 12-408 of the general statutes, as amended by section 94 of public act 11-6 and section 43 of public act 11-61, is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(3) For the purpose of adding and collecting the tax imposed by this chapter, or an amount equal as nearly as possible or practicable to the average equivalent thereof, by the retailer from the consumer the following bracket system shall be in force and effect as follows:

On all sales above [$ 1. 18] $1.08, the tax shall be computed at the rate of six [and thirty-five-hundredths] per cent.

Sec. 506. Subdivision (1) of section 12-411 of the general statutes, as amended by section 97 of public act 11-6, is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(1) (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchased from any retailer for storage, acceptance, consumption or any other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either within or without this state, for storage, acceptance, consumption or any other use by such person in this state, to be measured by the sales price of materials, at the rate of six [and thirty-five-hundredths] per cent of the sales price of such property or services, except, in lieu of said rate of six [and thirty-five-hundredths] per cent;

(B) At a rate of fifteen per cent of the rent paid for occupancy of any room or rooms in a hotel or lodging house for the first period of not exceeding thirty consecutive calendar days;

(C) With respect to the storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse of such individual at a rate of four and one-half per cent of the sales price of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

(D) With respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;

(E) With respect to the acceptance or receipt in this state of computer and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent of such services, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent of such services, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent of such services, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent of such services, on and after July 1, 2001, at the rate of one per cent of such services, and (ii) with respect to the acceptance or receipt in this state of Internet access services, on or after July 1, 2001, such services shall be exempt from tax;

(F) With respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax; and

(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent. [; ]

[(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven per cent on the entire purchase price, (ii) a vessel for a sales price exceeding one hundred thousand dollars, at a rate of seven per cent on the entire purchase price, (iii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven per cent on the entire purchase price, and (iv) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven per cent on the entire purchase price. For purposes of this subparagraph, "motor vehicle" shall have the meaning provided in section 14-1, but shall not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

(I) For calendar quarters ending on or after September 30, 2011, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 96 of this act, one and fifty-seven-hundredths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, and one and forty-three-hundredths of the amounts received by the state from the tax imposed under subparagraph (H) of this subdivision; and

(J) For calendar quarters ending on or after September 30, 2011, the commissioner shall deposit into the regional performance incentive account established pursuant to section 95 of this act, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision. ]

Sec. 507. Section 12-412 of the general statutes is amended by adding subdivisions (119) to (122), inclusive, as follows (Effective July 1, 2011):

(NEW) (119) Sales of any article of clothing or footwear intended to be worn on or about the human body the cost of which to the purchaser is less than fifty dollars. For purposes of this subdivision clothing or footwear shall not include (A) any special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for the athletic activity or protective use for which it was designed, and (B) jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the human body but not worn on the body in the manner characteristic of clothing intended for exemption under this subdivision.

(NEW) (120) Any sale of cloth or fabric for purposes of noncommercial sewing, made of natural or synthetic fibers and of such composition, weight and texture as to be used commonly in clothing, and including in addition to such cloth or fabric, any items necessary in such sewing which become a component part of the clothing so made.

(NEW) (121) Sales of the following drugs or medicines available for purchase without prescription for use in or on the body: Vitamin or mineral concentrates; dietary supplements; natural or herbal drugs or medicines; products intended to be taken for coughs, colds, asthma or allergies; antihistamines; laxatives; antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral and antifungal medicines; antiseptics; astringents; anesthetics; steroidal medicines; anthelmintics; emetics and antiemetics; antacids; and any medication prepared to be used in the eyes, ears or nose, excluding cosmetics, dentifrices, mouthwash, shaving and hair care products, soaps and deodorants.

(NEW) (122) The sales or use of any services or tangible personal property to be incorporated into or used or otherwise consumed in the operation of a solid waste-to-energy facility, certified as approved for such purpose by the Commissioner of Environmental Protection, whether such purchases are made directly by an authority or an operating committee, or are reimbursed by an authority or operating committee to the lessee or operator of such facility.

Sec. 508. (Effective from passage) Notwithstanding the provisions of sections 3-69a and 9-750 of the general statutes, from the effective date of this section to June 30, 2013, inclusive, (1) no funds received by the State Treasurer under part III of chapter 32 of the general statutes and deposited in the General Fund shall be credited to the Citizens' Election Fund established in section 9-701 of the general statutes, and (2) no revenues from the tax imposed under chapter 208 of the general statutes shall be deposited in the Citizens' Election Fund.

Sec. 509. (Effective from passage) Notwithstanding section 9-701 of the general statutes, the balance of funds in the Citizens' Election Fund shall be transferred and credited to the resources of the General Fund for the fiscal year ending June 30, 2012.

Sec. 510. (Effective July 1, 2011) The amounts appropriated to the following agency in section 1 of public act 11-6, as amended by section 67 of public act 11-61, are reduced by the following amounts for the annual periods indicated:

Sec. 511. (NEW) (Effective from passage) (a) Notwithstanding the provisions of sections 4-30a and 4-30b of the general statutes, after the accounts for the fiscal year ending June 30, 2011, are closed, if the Comptroller determines that an unappropriated surplus exists in the General Fund, the Comptroller shall reserve an amount, not to exceed one hundred fourteen million dollars to be credited to the resources of the General Fund for the fiscal year ending June 30, 2012, to be applied to any unreserved negative General Fund resulting from the operation of the provisions of sections 501 to 507, inclusive, and section 512 of this act, before any other reserve required by any provision of the general statutes is determined.

(b) Notwithstanding the provisions of sections 4-30a and 4-30b of the general statutes, after the accounts for the fiscal year ending June 30, 2012, are closed, if the Comptroller determines that an unappropriated surplus exists in the General Fund, the Comptroller shall reserve an amount, not to exceed seventy-seven million five hundred thousand dollars to be credited to the resources of the General Fund for the fiscal year ending June 30, 2013, to be applied to any unreserved negative General Fund resulting from the operation of the provisions of sections 501 to 507, inclusive, and section 512 of this act, before any other reserve required by any provision of the general statutes is determined.

(c) Notwithstanding the provisions of sections 4-30a and 4-30b of the general statutes, after the accounts for the fiscal year ending June 30, 2013, are closed, if the Comptroller determines that an unappropriated surplus exists in the General Fund, the Comptroller shall reserve an amount, not to exceed four hundred forty-four million one hundred thousand dollars to be credited to the resources of the General Fund for the fiscal year ending June 30, 2014, to be applied to any unreserved negative General Fund resulting from the operation of the provisions of sections 501 to 507, inclusive, and section 512 of this act, before any other reserve required by any provision of the general statutes is determined.

Sec. 512. Section 92 of public act 11-6, as amended by section 41 of public act 11-61, and section 110 of public act 11-6 are repealed. (Effective from passage)"