Connecticut Seal

General Assembly

 

Governor's Bill No. 1007

January Session, 2011

 

LCO No. 3601

 

*03601__________*

Referred to Committee on Finance, Revenue and Bonding

 

Introduced by:

 

SEN. WILLIAMS, 29th Dist.

SEN. LOONEY, 11th Dist.

REP. DONOVAN, 84th Dist.

REP. SHARKEY, 88th Dist.

 

AN ACT CONCERNING THE GOVERNOR'S RECOMMENDATIONS ON REVENUE.

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

Section 1. Section 12-202 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to calendar years commencing on or after January 1, 2011):

Each domestic insurance company shall, annually, pay a tax on the total net direct premiums received by such company during the calendar year next preceding from policies written on property or risks located or resident in this state. The rate of tax on all net direct insurance premiums received on and after January 1, 1995, shall be one and [three-quarters] ninety-five one hundredths per cent. The franchise tax imposed under this section on premium income for the privilege of doing business in the state is in addition to the tax imposed under chapter 208. In the case of any local domestic insurance company the admitted assets of which as of the end of an income year do not exceed ninety-five million dollars, eighty per cent of the tax paid by such company under chapter 208 during such income year reduced by any refunds of taxes paid by such company and granted under said chapter within such income year and eighty per cent of the assessment paid by such company under section 38a-48 during such income year shall be allowed as a credit in the determination of the tax under this chapter payable with respect to total net direct premiums received during such income year, provided that these two credits shall not reduce the tax under this chapter to less than zero, and provided further in the case of a local domestic insurance company which is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply if the total admitted assets of the local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars or, in the alternative, in the case of a local domestic insurance company which is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply only if total direct written premiums are derived from policies issued or delivered in Connecticut, on risk located in Connecticut and, as of the end of the income year the company and its affiliates have admitted assets minus unpaid losses and loss adjustment expenses that are also discounted for federal and state tax purposes and which for said local domestic insurance company and its affiliates, as defined in said section do not exceed two hundred fifty million dollars.

Sec. 2. Subsection (a) of section 12-202a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to calendar years commencing on or after January 1, 2011):

(a) Each health care center, as defined in section 38a-175, that is governed by sections 38a-175 to 38a-192, inclusive, shall pay a tax to the Commissioner of Revenue Services for the calendar year commencing on January 1, 1995, and annually thereafter, at the rate of one and [three-quarters] ninety-five one hundredths per cent of the total net direct subscriber charges received by such health care center during each such calendar year on any new or renewal contract or policy approved by the Insurance Commissioner under section 38a-183. Such payment shall be in addition to any other payment required under section 38a-48.

Sec. 3. Subsection (b) of section 12-210 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to calendar years commencing on or after January 1, 2011):

(b) Each insurance company incorporated by or organized under the laws of any other state or foreign government and doing business in this state shall, annually, on and after January 1, 1995, pay to said Commissioner of Revenue Services, in addition to any other taxes imposed on such company or its agents, a tax of one and [three-quarters] ninety-five one hundredths per cent of all net direct premiums received by such company in the calendar year next preceding from policies written on property or risks located or resident in this state, excluding premiums for ocean marine insurance, and, upon ceasing to transact new business in this state, shall continue to pay a tax upon the renewal premiums derived from its business remaining in force in this state at the rate which was applicable when such company ceased to transact new business in this state.

Sec. 4. Section 12-211a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to calendar years commencing on or after January 1, 2011):

(a) Notwithstanding any provision of the general statutes, and except as provided in subsection (b) of this section, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for any [income] calendar year shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to such [income] calendar year of the taxpayer prior to the application of such credit or credits.

(b) (1) For a calendar year commencing on or after January 1, 2011, and prior to January 1, 2013, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such calendar year may exceed the amount specified in subsection (a) of this section only by the amount computed under subparagraph (A) of subdivision (2) of this subsection, provided in no event may the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such calendar year exceed one hundred per cent of the amount of tax due from such taxpayer under this chapter with respect to such calendar year of the taxpayer prior to the application of such credit or credits.

(2) (A) The taxpayer's average monthly net employee gain for a calendar year shall be multiplied by six thousand dollars.

(B) The taxpayer's average monthly net employee gain for a calendar year shall be computed as follows: For each month in the calendar year, the taxpayer shall subtract from the number of its employees in this state on the last day of such month the number of its employees in this state on the first day of the calendar year. The taxpayer shall total the differences for the twelve months in the calendar year, and such total, when divided by twelve, shall be the taxpayer's average monthly net employee gain for the calendar year. For purposes of this computation, only employees who are required to work at least thirty-five hours per week and only employees who were not employed in this state by a related person, as defined in section 12-217ii, within the twelve months prior to the first day of the calendar year may be taken into account in computing the number of employees.

(C) If the taxpayer's average monthly net employee gain is zero or less than zero, the taxpayer may not exceed the seventy per cent limit imposed under subsection (a) of this section.

Sec. 5. Subdivision (6) of subsection (b) of section 12-214 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2011):

(6) (A) With respect to income years commencing on or after January 1, 2009, and prior to January 1, [2012] 2014, any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, an additional tax in an amount equal to ten per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The additional amount of tax determined under this subsection for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

(B) Any company whose gross income for the income year was less than one hundred million dollars shall not be subject to the additional tax imposed under subparagraph (A) of this subdivision. This exception shall not apply to companies filing a combined return for the income year under section 12-223a or a unitary return under subsection (d) of section 12-218d.

Sec. 6. Subsection (e) of section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2011):

(e) On and after July 1, 2006, and for income years commencing on or after January 1, 2006, any credit allowed pursuant to this [subsection] section may be sold, assigned or otherwise transferred, in whole or in part, to one or more taxpayers, provided (1) no credit, after issuance, may be sold, assigned or otherwise transferred, in whole or in part, more than three times, (2) in the case of a credit allowed for the income year commencing on or after January 1, 2011, and prior to January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than fifty per cent of such credit in any one income year, and (3) in the case of a credit allowed for an income year commencing on or after January 1, 2012, any entity that is not subject to tax under chapter 207 or this chapter may transfer not more than twenty-five per cent of such credit in any one income year.

Sec. 7. Section 12-217zz of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2011):

(a) Notwithstanding any other provision of law, and except as otherwise provided in subsection (b) of this section, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for any income year shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.

(b) (1) For an income year commencing on or after January 1, 2011, and prior to January 1, 2013, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year may exceed the amount specified in subsection (a) of this section only by the amount computed under subparagraph (A) of subdivision (2) of this subsection, provided in no event may the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter for such income year exceed one hundred per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.

(2) (A) The taxpayer's average monthly net employee gain for an income year shall be multiplied by six thousand dollars.

(B) The taxpayer's average monthly net employee gain for an income year shall be computed as follows: For each month in the taxpayer's income year, the taxpayer shall subtract from the number of its employees in this state on the last day of such month the number of its employees in this state on the first day of its income year. The taxpayer shall total the differences for the twelve months in such income year, and such total, when divided by twelve, shall be the taxpayer's average monthly net employee gain for the income year. For purposes of this computation, only employees who are required to work at least thirty-five hours per week and only employees who were not employed in this state by a related person, as defined in section 12-217ii, within the twelve months prior to the first day of the income year may be taken into account in computing the number of employees.

(C) If the taxpayer's average monthly net employee gain is zero or less than zero, the taxpayer may not exceed the seventy per cent limit imposed under subsection (a) of this section.

Sec. 8. Subsection (c) of section 12-218 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2011):

(c) Except as otherwise provided in subsection (k) or (l) of this section, the net income of the taxpayer when derived from the manufacture, sale or use of tangible personal or real property, shall be apportioned within and without the state by means of an apportionment fraction, to be computed as the sum of the property factor, the payroll factor and twice the receipts factor, divided by four.

(1) The first of these fractions, the property factor, shall represent that part of the average monthly net book value of the total tangible property held and owned by the taxpayer during the income year which is held within the state, without deduction on account of any encumbrance thereon, and the value of tangible property rented to the taxpayer computed by multiplying the gross rents payable during the income year or period by eight. For the purpose of this section, gross rents shall be the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer or for its benefit for the use or possession of the property, excluding royalties, but including interest, taxes, insurance, repairs or any other amount required to be paid by the terms of a lease or other arrangement and a proportionate part of the cost of any improvement to the real property made by or on behalf of the taxpayer which reverts to the owner or lessor upon termination of a lease or other arrangement, based on the unexpired term of the lease commencing with the date the improvement is completed, provided, where a building is erected on leased land by or on behalf of the taxpayer, the value of the land is determined by multiplying the gross rent by eight, and the value of the building is determined in the same manner as if owned by the taxpayer.

(2) The second fraction, the payroll factor, shall represent the part of the total wages, salaries and other compensation to employees paid by the taxpayer during the income year which was paid in this state, excluding any such wages, salaries or other compensation attributable to the production of gross income of an international banking facility as defined in section 12-217. Compensation is paid in this state if (A) the individual's service is performed entirely within the state; or (B) the individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or (C) some of the service is performed in the state and (i) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state, or (ii) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.

(3) The third fraction, the receipts factor, shall represent the part of the taxpayer's gross receipts from sales or other sources during the income year, computed according to the method of accounting used in the computation of its entire net income, which is assignable to the state, and excluding any gross receipts attributable to an international banking facility as defined in section 12-217, but including receipts from (A) sales of tangible property if the property is delivered or shipped to a purchaser within this state, other than the federal government or a company which qualifies as a Domestic International Sales Corporation (DISC) as defined in Section 992 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 as to which a valid election under Subsection (b) of said Section 992 to be treated as a DISC is effective, regardless of the f.o.b. point or other conditions of the sale, (B) sales of tangible property if the property is delivered or shipped from an office, warehouse, factory, store or other place of storage in the state, and the purchaser is the federal government or the taxpayer is not taxable in the state where such property is delivered or shipped to the purchaser, (C) receipts from services performed within the state, (D) rentals and royalties from properties situated within the state, (E) royalties from the use of patents or copyrights within the state, (F) interest managed or controlled within the state, (G) net gains from the sale or other disposition of intangible assets managed or controlled within the state, (H) net gains from the sale or other disposition of tangible assets situated within the state, and (I) all other receipts earned within the state.

Sec. 9. Subdivision (6) of subsection (b) of section 12-219 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2011):

(6) (A) With respect to income years commencing on or after January 1, 2009, and prior to January 1, [2012] 2014, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to ten per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(B) Any company whose gross income for the income year was less than one hundred million dollars shall not be subject to the additional tax imposed under subparagraph (A) of this subdivision. This exception shall not apply to companies filing a combined return for the income year under section 12-223a or a unitary return under subsection (d) of section 12-218d.

Sec. 10. Section 12-296 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

A tax is imposed on all cigarettes held in this state by any person for sale, said tax to be at the rate of one hundred [fifty] seventy mills for each cigarette and the payment thereof shall be for the account of the purchaser or consumer of such cigarettes and shall be evidenced by the affixing of stamps to the packages containing the cigarettes as provided in this chapter.

Sec. 11. Section 12-316 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

A tax is hereby imposed at the rate of one hundred [fifty] seventy mills for each cigarette upon the storage or use within this state of any unstamped cigarettes in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state. Any person, including distributors, dealers, carriers, warehousemen and consumers, last having possession of unstamped cigarettes in this state shall be liable for the tax on such cigarettes if such cigarettes are unaccounted for in transit, storage or otherwise, and in such event a presumption shall exist for the purpose of taxation that such cigarettes were used and consumed in Connecticut.

Sec. 12. (Effective from passage) (a) An excise tax is hereby imposed upon each distributor and each dealer, as each are defined in section 12-285 of the general statutes and licensed pursuant to chapter 214 of the general statutes, in the amount of twenty mills per cigarette, as defined in said section 12-285, in such distributor's or such dealer's inventory as of the close of business on June 30, 2011, or, if the business closes after eleven fifty-nine o'clock p.m. on such date, at eleven fifty-nine o'clock p.m. on such date.

(b) Each such licensed distributor or dealer shall, not later than August 15, 2011, file with the Commissioner of Revenue Services, on forms prescribed by said commissioner, a report that shows the number of cigarettes in inventory as of the close of business on June 30, 2011, or, if the business closes after eleven fifty-nine o'clock p.m. on such date, at eleven fifty-nine o'clock p.m. on such date, upon which inventory the tax under subsection (a) of this section shall be imposed. The tax shall be due and payable on the due date of such report. If any distributor or dealer required to file a report pursuant to this section fails to file such report on or before August 15, 2011, the commissioner shall make an estimate of the number of cigarettes in such distributor's or dealer's inventory as of the close of business on June 30, 2011, based upon any information that is in the commissioner's possession or that may come into the commissioner's possession. The provisions of chapter 214 of the general statutes pertaining to failure to file returns, examination of returns by the commissioner, the issuance of deficiency assessments or assessments where no return has been filed, the collection of tax, the imposition of penalties and the accrual of interest shall apply to the distributors and dealers required to pay the tax imposed under this section. Failure of any distributor or dealer to file such report when due shall be sufficient reason to revoke such distributor's or dealer's license under the provisions of said chapter 214 and to revoke any other state license or permit held by such distributor or dealer. If, in the discretion of the commissioner, the enforcement of this section would otherwise be adversely affected, the commissioner shall not renew the dealer's license of any dealer who fails to file such report, or the distributor's license of any distributor who fails to file such report, until such report is filed.

Sec. 13. Subsection (a) of section 12-330c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(a) (1) A tax is imposed on all untaxed tobacco products held in this state by any person. Except as otherwise provided in subdivision (2) of this subsection with respect to the rate of tax on snuff tobacco products, the tax shall be imposed at the rate of [twenty-seven and one-half] fifty per cent of the wholesale sales price of such products.

(2) The tax shall be imposed on snuff tobacco products, on the net weight as listed by the manufacturer, as follows: [Fifty-five cents] One dollar per ounce of snuff and a proportionate tax at the like rate on all fractional parts of an ounce of snuff.

Sec. 14. Subsection (g) of section 12-391 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to estates of decedents dying on or after January 1, 2011):

(g) (1) With respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T1

Amount of Connecticut

 

T2

Taxable Estate

Rate of Tax

T3

Not over $2,000,000

None

T4

Over $2,000,000

 

T5

but not over $2,100,000

5.085% of the excess over $0

T6

Over $2,100,000

$106,800 plus 8% of the excess

T7

but not over $2,600,000

over $2,100,000

T8

Over $2,600,000

$146,800 plus 8.8% of the excess

T9

but not over $3,100,000

over $2,600,000

T10

Over $3,100,000

$190,800 plus 9.6% of the excess

T11

but not over $3,600,000

over $3,100,000

T12

Over $3,600,000

$238,800 plus 10.4% of the excess

T13

but not over $4,100,000

over $3,600,000

T14

Over $4,100,000

$290,800 plus 11.2% of the excess

T15

but not over $5,100,000

over $4,100,000

T16

Over $5,100,000

$402,800 plus 12% of the excess

T17

but not over $6,100,000

over $5,100,000

T18

Over $6,100,000

$522,800 plus 12.8% of the excess

T19

but not over $7,100,000

over $6,100,000

T20

Over $7,100,000

$650,800 plus 13.6% of the excess

T21

but not over $8,100,000

over $7,100,000

T22

Over $8,100,000

$786,800 plus 14.4% of the excess

T23

but not over $9,100,000

over $8,100,000

T24

Over $9,100,000

$930,800 plus 15.2% of the excess

T25

but not over $10,100,000

over $9,100,000

T26

Over $10,100,000

$1,082,800 plus 16% of the excess

T27

 

over $10,100,000

(2) With respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2011, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T28

Amount of Connecticut

 

T29

Taxable Estate

Rate of Tax

T30

Not over $3,500,000

None

T31

Over $3,500,000

7.2% of the excess

T32

but not over $3,600,000

over $3,500,000

T33

Over $3,600,000

$7,200 plus 7.8% of the excess

T34

but not over $4,100,000

over $3,600,000

T35

Over $4,100,000

$46,200 plus 8.4% of the excess

T36

but not over $5,100,000

over $4,100,000

T37

Over $5,100,000

$130,200 plus 9.0% of the excess

T38

but not over $6,100,000

over $5,100,000

T39

Over $6,100,000

$220,200 plus 9.6% of the excess

T40

but not over $7,100,000

over $6,100,000

T41

Over $7,100,000

$316,200 plus 10.2% of the excess

T42

but not over $8,100,000

over $7,100,000

T43

Over $8,100,000

$418,200 plus 10.8% of the excess

T44

but not over $9,100,000

over $8,100,000

T45

Over $9,100,000

$526,200 plus 11.4% of the excess

T46

but not over $10,100,000

over $9,100,000

T47

Over $10,100,000

$640,200 plus 12% of the excess

T48

 

over $10,100,000

(3) With respect to the estates of decedents dying on or after January 1, 2011, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T49

Amount of Connecticut

 

T50

Taxable Estate

Rate of Tax

T51

Not over $2,000,000

None

T52

Over $2,000,000

7.2% of the excess

T53

but not over $3,600,000

over $2,000,000

T54

Over $3,600,000

$115,200 plus 7.8% of the excess

T55

but not over $4,100,000

over $3,600,000

T56

Over $4,100,000

$154,200 plus 8.4% of the excess

T57

but not over $5,100,000

over $4,100,000

T58

Over $5,100,000

$238,200 plus 9.0% of the excess

T59

but not over $6,100,000

over $5,100,000

T60

Over $6,100,000

$328,200 plus 9.6% of the excess

T61

but not over $7,100,000

over $6,100,000

T62

Over $7,100,000

$424,200 plus 10.2% of the excess

T63

but not over $8,100,000

over $7,100,000

T64

Over $8,100,000

$526,200 plus 10.8% of the excess

T65

but not over $9,100,000

over $8,100,000

T66

Over $9,100,000

$634,200 plus 11.4% of the excess

T67

but not over $10,100,000

over $9,100,000

T68

Over $10,100,000

$748,200 plus 12% of the excess

T69

 

over $10,100,000

Sec. 15. Subdivision (3) of subsection (b) of section 12-392 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to estates of decedents dying on or after January 1, 2011):

(3) (A) A tax return shall be filed, in the case of every decedent who died prior to January 1, 2005, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state, whenever the personal representative of the estate is required by the laws of the United States to file a federal estate tax return.

(B) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2005, but prior to January 1, 2010, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state. If the decedent's Connecticut taxable estate is over two million dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated. If the decedent's Connecticut taxable estate is two million dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services. The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(C) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2010, but prior to January 1, 2011, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state. If the decedent's Connecticut taxable estate is over three million five hundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated. If the decedent's Connecticut taxable estate is three million five hundred thousand dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services. The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(D) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2011, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state. If the decedent's Connecticut taxable estate is over two million dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated. If the decedent's Connecticut taxable estate is two million dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services. The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

[(D)] (E) The duly authorized executor or administrator shall file the return. If there is more than one executor or administrator, the return shall be made jointly by all. If there is no executor or administrator appointed, qualified and acting, each person in actual or constructive possession of any property of the decedent is constituted an executor for purposes of the tax and shall make and file a return. If in any case the executor is unable to make a complete return as to any part of the gross estate, the executor shall provide all the information available to him with respect to such property, including a full description, and the name of every person holding a legal or beneficial interest in the property. If the executor is unable to make a return as to any property, each person holding a legal or equitable interest in such property shall, upon notice from the commissioner, make a return as to that part of the gross estate.

[(E)] (F) On or before the last day of the month next succeeding each calendar quarter, and commencing with the calendar quarter ending September 30, 2005, each court of probate shall file with the commissioner a report for the calendar quarter in such form as the commissioner may prescribe. The report shall pertain to returns filed with the court of probate during the calendar quarter.

Sec. 16. Subsection (e) of section 12-398 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to estates of decedents dying on or after January 1, 2011):

(e) Any person shall be entitled to a certificate of release of lien with respect to the interest of the decedent in such real property, if either the court of probate for the district within which the decedent resided at the date of his death or, if the decedent died a nonresident of this state, for the district within which real estate or tangible personal property of the decedent is situated, or the Commissioner of Revenue Services finds, upon evidence satisfactory to said court or said commissioner, as the case may be, that payment of the tax imposed under this chapter with respect to the interest of the decedent in such real property is adequately assured, or that no tax imposed under this chapter is due. If the decedent died prior to January 1, 2010, and such decedent's Connecticut taxable estate is two million dollars or less, or if the decedent died on or after January 1, 2010, but prior to January 1, 2011, and such decedent's Connecticut taxable estate is three million five hundred thousand dollars or less, or if the decedent died on or after January 1, 2011, and such decedent's Connecticut taxable estate is two million dollars or less, the certificate of release of lien shall be issued by the court of probate. Such certificate may be recorded in the office of the town clerk of the town within which such real property is situated, and it shall be conclusive proof that such real property has been released from the operation of such lien. The commissioner may adopt regulations in accordance with the provisions of chapter 54 that establish procedures to be followed by a court of probate or by said commissioner, as the case may be, for issuing certificates of release of lien, and that establish the requirements and conditions that must be satisfied in order for a court of probate or for the commissioner, as the case may be, to find that the payment of such tax is adequately assured or that no tax imposed under this chapter is due.

Sec. 17. Subsection (a) of section 12-642 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to gifts made during calendar years commencing on or after January 1, 2011):

(a) (1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

T70

Amount of Taxable Gifts

Rate of Tax

T71

Not over $25,000

1%

T72

Over $25,000

$250, plus 2% of the excess

T73

but not over $50,000

over $25,000

T74

Over $50,000

$750, plus 3% of the excess

T75

but not over $75,000

over $50,000

T76

Over $75,000

$1,500, plus 4% of the excess

T77

but not over $100,000

over $75,000

T78

Over $100,000

$2,500, plus 5% of the excess

T79

but not over $200,000

over $100,000

T80

Over $200,000

$7,500, plus 6% of the excess

T81

 

over $200,000

(2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640 for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

T82

Amount of Taxable Gifts

Rate of Tax

T83

Over $25,000

$250, plus 2% of the excess

T84

but not over $50,000

over $25,000

T85

Over $50,000

$750, plus 3% of the excess

T86

but not over $75,000

over $50,000

T87

Over $75,000

$1,500, plus 4% of the excess

T88

but not over $100,000

over $75,000

T89

Over $100,000

$2,500, plus 5% of the excess

T90

but not over $675,000

over $100,000

T91

Over $675,000

$31,250, plus 6% of the excess

T92

 

over $675,000

(3) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

T93

Amount of Taxable Gifts

Rate of Tax

T94

Not over $2,000,000

None

T95

Over $2,000,000

 

T96

but not over $2,100,000

5.085% of the excess over $0

T97

Over $2,100,000

$106,800 plus 8% of the excess

T98

but not over $2,600,000

over $2,100,000

T99

Over $2,600,000

$146,800 plus 8.8% of the excess

T100

but not over $3,100,000

over $2,600,000

T101

Over $3,100,000

$190,800 plus 9.6% of the excess

T102

but not over $3,600,000

over $3,100,000

T103

Over $3,600,000

$238,800 plus 10.4% of the excess

T104

but not over $4,100,000

over $3,600,000

T105

Over $4,100,000

$290,800 plus 11.2% of the excess

T106

but not over $5,100,000

over $4,100,000

T107

Over $5,100,000

$402,800 plus 12% of the excess

T108

but not over $6,100,000

over $5,100,000

T109

Over $6,100,000

$522,800 plus 12.8% of the excess

T110

but not over $7,100,000

over $6,100,000

T111

Over $7,100,000

$650,800 plus 13.6% of the excess

T112

but not over $8,100,000

over $7,100,000

T113

Over $8,100,000

$786,800 plus 14.4% of the excess

T114

but not over $9,100,000

over $8,100,000

T115

Over $9,100,000

$930,800 plus 15.2% of the excess

T116

but not over $10,100,000

over $9,100,000

T117

Over $10,100,000

$1,082,800 plus 16% of the excess

T118

 

over $10,100,000

(4) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T119

Amount of Taxable Gifts

Rate of Tax

T120

Not over $3,500,000

None

T121

Over $3,500,000

7.2% of the excess

T122

but not over $3,600,000

over $3,500,000

T123

Over $3,600,000

$7,200 plus 7.8% of the excess

T124

but not over $4,100,000

over $3,600,000

T125

Over $4,100,000

$46,200 plus 8.4% of the excess

T126

but not over $5,100,000

over $4,100,000

T127

Over $5,100,000

$130,200 plus 9.0% of the excess

T128

but not over $6,100,000

over $5,100,000

T129

Over $6,100,000

$220,200 plus 9.6% of the excess

T130

but not over $7,100,000

over $6,100,000

T131

Over $7,100,000

$316,200 plus 10.2% of the excess

T132

but not over $8,100,000

over $7,100,000

T133

Over $8,100,000

$418,200 plus 10.8% of the excess

T134

but not over $9,100,000

over $8,100,000

T135

Over $9,100,000

$526,200 plus 11.4% of the excess

T136

but not over $10,100,000

over $9,100,000

T137

Over $10,100,000

$640,200 plus 12% of the excess

T138

 

over $10,100,000

(5) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) or (4) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T139

Amount of Taxable Gifts

Rate of Tax

T140

Not over $2,000,000

None

T141

Over $2,000,000

7.2% of the excess

T142

but not over $3,600,000

over $2,000,000

T143

Over $3,600,000

$115,200 plus 7.8% of the excess

T144

but not over $4,100,000

over $3,600,000

T145

Over $4,100,000

$154,200 plus 8.4% of the excess

T146

but not over $5,100,000

over $4,100,000

T147

Over $5,100,000

$238,200 plus 9.0% of the excess

T148

but not over $6,100,000

over $5,100,000

T149

Over $6,100,000

$328,200 plus 9.6% of the excess

T150

but not over $7,100,000

over $6,100,000

T151

Over $7,100,000

$424,200 plus 10.2% of the excess

T152

but not over $8,100,000

over $7,100,000

T153

Over $8,100,000

$526,200 plus 10.8% of the excess

T154

but not over $9,100,000

over $8,100,000

T155

Over $9,100,000

$634,200 plus 11.4% of the excess

T156

but not over $10,100,000

over $9,100,000

T157

Over $10,100,000

$748,200 plus 12% of the excess

T158

 

over $10,100,000

Sec. 18. Subparagraph (M) of subdivision (2) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(M) The transfer for consideration of space or the right to use any space for the purpose of storage or mooring of any noncommercial vessel; [, exclusive of dry or wet storage or mooring of such vessel during the period commencing on the first day of November in any year to and including the thirtieth day of April of the next succeeding year;]

Sec. 19. Subdivisions (8) and (9) of subsection (a) of section 12-407 of the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(8) (A) "Sales price" means the total amount for which tangible personal property is sold by a retailer, the total amount of rent for which occupancy of a room is transferred by an operator, the total amount for which any service described in subdivision (2) of this subsection is rendered by a retailer or the total amount of payment or periodic payments for which tangible personal property is leased by a retailer, valued in money, whether paid in money or otherwise, which amount is due and owing to the retailer or operator and, subject to the provisions of subdivision (1) of section 12-408, whether or not actually received by the retailer or operator, without any deduction on account of any of the following: (i) The cost of the property sold; (ii) the cost of materials used, labor or service cost, interest charged, losses or any other expenses; (iii) for any sale occurring on or after July 1, 1993, any charges by the retailer to the purchaser for shipping or delivery, notwithstanding whether such charges are separately stated in a written contract, or on a bill or invoice rendered to such purchaser or whether such shipping or delivery is provided by the retailer or a third party. The provisions of subparagraph (A) (iii) of this subdivision shall not apply to any item exempt from taxation pursuant to section 12-412. Such total amount includes any services that are a part of the sale, [; except as otherwise provided in subparagraph (B)(v) or (B)(vi) of this subdivision,] any amount for which credit is given to the purchaser by the retailer, and all compensation and all employment-related expenses, whether or not separately stated, paid to or on behalf of employees of a retailer of any service described in subdivision (2) of this subsection.

(B) "Sales price" does not include any of the following: (i) Cash discounts allowed and taken on sales; (ii) any portion of the amount charged for property returned by purchasers, which upon rescission of the contract of sale is refunded either in cash or credit, provided the property is returned within ninety days from the date of purchase; (iii) the amount of any tax, not including any manufacturers' or importers' excise tax, imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the purchaser; (iv) the amount charged for labor rendered in installing or applying the property sold, provided such charge is separately stated and exclusive of such charge for any service rendered within the purview of subparagraph (I) of subdivision (37) of this subsection; [(v) unless the provisions of subdivision (4) of section 12-430 or of section 12-430a are applicable, any amount for which credit is given to the purchaser by the retailer, provided such credit is given solely for property of the same kind accepted in part payment by the retailer and intended by the retailer to be resold; (vi) the full face value of any coupon used by a purchaser to reduce the price paid to a retailer for an item of tangible personal property, whether or not the retailer will be reimbursed for such coupon, in whole or in part, by the manufacturer of the item of tangible personal property or by a third party; (vii)] (v) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of employees of a retailer who has contracted to manage a service recipient's property or business premises and renders management services described in subparagraph (I) or (J) of subdivision (37) of this subsection, provided, the employees perform such services solely for the service recipient at its property or business premises and "sales price" shall include the separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of any employee of the retailer who is an officer, director or owner of more than five per cent of the outstanding capital stock of the retailer. Determination whether an employee performs services solely for a service recipient at its property or business premises for purposes of this subdivision shall be made by reference to such employee's activities during the time period beginning on the later of the commencement of the management contract, the date of the employee's first employment by the retailer or the date which is six months immediately preceding the date of such determination; [(viii)] (vi) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of (I) a leased employee, or (II) a worksite employee by a professional employer organization pursuant to a professional employer agreement. For purposes of this subparagraph, an employee shall be treated as a leased employee if the employee is provided to the client at the commencement of an agreement with an employee leasing organization under which at least seventy-five per cent of the employees provided to the client at the commencement of such initial agreement qualify as leased employees pursuant to Section 414(n) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, or the employee is added to the client's workforce by the employee leasing organization subsequent to the commencement of such initial agreement and qualifies as a leased employee pursuant to Section 414(n) of said Internal Revenue Code of 1986 without regard to subparagraph (B) of paragraph (2) thereof. A leased employee, or a worksite employee subject to a professional employer agreement, shall not include any employee who is hired by a temporary help service and assigned to support or supplement the workforce of a temporary help service's client; [(ix)] (vii) any amount received by a retailer from a purchaser as the battery deposit that is required to be paid under subsection (a) of section 22a-245h; the refund value of a beverage container that is required to be paid under subsection (a) of section 22a-244; or a deposit that is required by law to be paid by the purchaser to the retailer and that is required by law to be refunded to the purchaser by the retailer when the same or similar tangible personal property is delivered as required by law to the retailer by the purchaser, if such amount is separately stated on the bill or invoice rendered by the retailer to the purchaser; and [(x)] (viii) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to a media payroll services company, as defined in this subsection.

(9) (A) "Gross receipts" means the total amount of the sales price from retail sales of tangible personal property by a retailer, the total amount of the rent from transfers of occupancy of rooms by an operator, the total amount of the sales price from retail sales of any service described in subdivision (2) of this subsection by a retailer of services, or the total amount of payment or periodic payments from leases or rentals of tangible personal property by a retailer, valued in money, whether received in money or otherwise, which amount is due and owing to the retailer or operator and, subject to the provisions of subdivision (1) of section 12-408, whether or not actually received by the retailer or operator, without any deduction on account of any of the following: (i) The cost of the property sold; however, in accordance with such regulations as the Commissioner of Revenue Services may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed the retailer's vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to the retailer's vendor with respect to the sale of the property; (ii) the cost of the materials used, labor or service cost, interest paid, losses or any other expense; (iii) for any sale occurring on or after July 1, 1993, except for any item exempt from taxation pursuant to section 12-412, any charges by the retailer to the purchaser for shipping or delivery, notwithstanding whether such charges are separately stated in the written contract, or on a bill or invoice rendered to such purchaser or whether such shipping or delivery is provided by the retailer or a third party. The total amount of the sales price includes any services that are a part of the sale; all receipts, cash, credits and property of any kind, [; except as otherwise provided in subparagraph (B)(v) or (B)(vi) of this subdivision,] any amount for which credit is allowed by the retailer to the purchaser; and all compensation and all employment-related expenses, whether or not separately stated, paid to or on behalf of employees of a retailer of any service described in subdivision (2) of this subsection.

(B) "Gross receipts" do not include any of the following: (i) Cash discounts allowed and taken on sales; (ii) any portion of the sales price of property returned by purchasers, which upon rescission of the contract of sale is refunded either in cash or credit, provided the property is returned within ninety days from the date of sale; (iii) the amount of any tax, not including any manufacturers' or importers' excise tax, imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the purchaser; (iv) the amount charged for labor rendered in installing or applying the property sold, provided such charge is separately stated and exclusive of such charge for any service rendered within the purview of subparagraph (I) of subdivision (37) of this subsection; [(v) unless the provisions of subdivision (4) of section 12-430 or of section 12-430a are applicable, any amount for which credit is given to the purchaser by the retailer, provided such credit is given solely for property of the same kind accepted in part payment by the retailer and intended by the retailer to be resold; (vi) the full face value of any coupon used by a purchaser to reduce the price paid to the retailer for an item of tangible personal property, whether or not the retailer will be reimbursed for such coupon, in whole or in part, by the manufacturer of the item of tangible personal property or by a third party; (vii)] (v) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of employees of a retailer who has contracted to manage a service recipient's property or business premises and renders management services described in subparagraph (I) or (J) of subdivision (37) of this subsection, provided the employees perform such services solely for the service recipient at its property or business premises and "gross receipts" shall include the separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of any employee of the retailer who is an officer, director or owner of more than five per cent of the outstanding capital stock of the retailer. Determination whether an employee performs services solely for a service recipient at its property or business premises for purposes of this subdivision shall be made by reference to such employee's activities during the time period beginning on the later of the commencement of the management contract, the date of the employee's first employment by the retailer or the date which is six months immediately preceding the date of such determination; [(viii)] (vi) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of (I) a leased employee, or (II) a worksite employee by a professional employer organization pursuant to a professional employer agreement. For purposes of this subparagraph, an employee shall be treated as a leased employee if the employee is provided to the client at the commencement of an agreement with an employee leasing organization under which at least seventy-five per cent of the employees provided to the client at the commencement of such initial agreement qualify as leased employees pursuant to Section 414(n) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, or the employee is added to the client's workforce by the employee leasing organization subsequent to the commencement of such initial agreement and qualifies as a leased employee pursuant to Section 414(n) of said Internal Revenue Code of 1986 without regard to subparagraph (B) of paragraph (2) thereof. A leased employee, or a worksite employee subject to a professional employer agreement, shall not include any employee who is hired by a temporary help service and assigned to support or supplement the workforce of a temporary help service's client; [(ix)] (vii) the amount received by a retailer from a purchaser as the battery deposit that is required to be paid under subsection (a) of section 22a-256h; the refund value of a beverage container that is required to be paid under subsection (a) of section 22a-244 or a deposit that is required by law to be paid by the purchaser to the retailer and that is required by law to be refunded to the purchaser by the retailer when the same or similar tangible personal property is delivered as required by law to the retailer by the purchaser, if such amount is separately stated on the bill or invoice rendered by the retailer to the purchaser; and [(x)] (viii) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to a media payroll services company, as defined in this subsection.

Sec. 20. Subparagraph (I) of subdivision (37) of subsection (a) of section 12-407 of the general statutes 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. 21. Subparagraph (N) of subdivision (37) of subsection (a) of section 12-407 of the general statutes 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, [(iii) valet parking provided at any airport, and (iv)] and (iii) 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. 22. Subparagraph (S) of subdivision (37) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(S) Services of the agent of any person in relation to the sale of any item of tangible personal property for such person, exclusive of the services of a consignee selling works of art, as defined in subsection (b) of section 12-376c, or articles of clothing or footwear intended to be worn on or about the human body other than (i) any special clothing or footwear primarily designed for athletic activity or protective use and which is not normally worn except when used for the athletic activity or protective use for which it was designed, and (ii) 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 subdivision (47) of section 12-412,] under consignment, exclusive of services provided by an auctioneer;

Sec. 23. Subparagraph (FF) of subdivision (37) of subsection (a) of section 12-407 of the general statutes 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, (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. 24. Subdivision (37) of subsection (a) of section 12-407 of the general statutes is amended by adding subparagraphs (GG) to (PP), inclusive, as follows (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(NEW) (GG) Motor vehicle storage services, including storage of motor homes, campers and camp trailers, other than the furnishing of space as described in subparagraph (P) of subdivision (2) of subsection (a) of section 12-407;

(NEW) (HH) Packing and crating services, other than those provided in connection with the sale of tangible personal property by the retailer of such property;

(NEW) (II) Motor vehicle washing, waxing and detailing services, whether or not automated;

(NEW) (JJ) Motor vehicle towing and road services, other than motor vehicle repair services;

(NEW) (KK) Intrastate transportation services provided by livery services, including limousines, community cars or vans, with a driver. Intrastate transportation services shall not include transportation by taxicab, motor bus, ambulance or ambulette, scheduled public transportation or services provided in connection with funerals;

(NEW) (LL) Barber and beauty shop services, including hair cutting, styling, and coloring;

(NEW) (MM) Noncommercial vessel repair, maintenance and cleaning services, including any contract of warranty and service related to such vessel, and noncommercial vessel towing services;

(NEW) (NN) Pet grooming and pet boarding services, except if such services are provided as an integral part of professional veterinary services, and pet obedience services;

(NEW) (OO) Services in connection with a cosmetic medical procedure. For purposes of this subparagraph, "cosmetic medical procedure" means any medical procedure performed on an individual that is directed at improving the individual's appearance and that does not meaningfully promote the proper function of the body or prevent or treat illness or disease. "Cosmetic medical procedure" includes, but is not limited, to cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft tissue fillers, dermabrasion and chemical peel, laser hair removal, laser skin resurfacing, laser treatment of leg veins, and sclerotherapy. "Cosmetic medical procedure" does not include reconstructive surgery. "Reconstructive surgery" includes any surgery performed on abnormal structures caused by or related to congenital defects, developmental abnormalities, trauma, infection, tumors or disease, including procedures to improve function or give a more normal appearance;

(NEW) (PP) Manicure and pedicure services.

Sec. 25. Subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

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 one-fourth 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 one-fourth per cent: [,]

(A) [at] At a rate of [twelve] fourteen 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; [,]

(B) [with] 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; [,]

(C) (i) [with] 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, (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax; [,]

(D) [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, (E) 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.] 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 eight and one-fourth per cent;

(E) With respect to the sale of (i) a motor vehicle, other than a passenger motor vehicle subject to the provisions of subparagraph (D) of this subsection, or a truck for a sales price exceeding fifty thousand dollars, at a rate of six and one-fourth per cent on the first fifty thousand dollars of the sales price, and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding fifty thousand dollars, (ii) a vessel for a sales price exceeding one hundred thousand dollars, at a rate of six and one-fourth per cent on the first one hundred thousand dollars of the sales price, and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding one hundred thousand dollars, (iii) jewelry for a sales price exceeding five thousand dollars, at a rate of six and one-fourth per cent on the first five thousand dollars of the sales price and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding five thousand dollars, 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 six and one-fourth per cent on the first one thousand dollars of the sales price and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding one thousand dollars; and

(F) 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.

Sec. 26. Section 12-408 of the general statutes is amended by adding subdivision (8) as follows (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(NEW) (8) (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 described retailers, as defined in this subdivision, at the rate of one-tenth of one per cent of the gross receipts of any such described 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. For purposes of this subsection, "described retailer" means a retailer who is primarily engaged in activities that are included in Sector 44 or 45 in the North American Industrial Classification System, United States Manual, United States Office of Management and Budget, 2007 Edition.

(B) 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 operators at the rate of one per cent of 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) 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 gross receipts of any retailer from the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of one per cent of the gross receipts of any retailer from such rentals or leasing.

(D) The provisions of chapter 219 shall apply to the provisions of this subdivision in the same manner and with the same force and effect as if the language of said chapter had been incorporated in full into said subdivision and had expressly referred to the tax imposed under this subdivision, except to the extent that any such provision is inconsistent with a provision of this subdivision. The amount of municipal taxes determined under this subdivision shall become due and be remitted to the state, as if due and payable to the state, and shall be disbursed by the state to the municipality where the sale giving rise to the taxes occurred.

Sec. 27. Subdivision (1) of section 12-411 of the general statutes 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) 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 one-fourth per cent of the sales price of such property or services, except, in lieu of said rate of six and one-fourth per cent: [,]

(A) [at] At a rate of [twelve] fourteen 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; [,]

(B) [with] 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; [,]

(C) [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, (D) (i) with] (i) 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; [, (E) 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.]

(D) 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 eight and one-fourth per cent; and

(E) With respect to the sale of (i) a motor vehicle, other than a passenger motor vehicle subject to the provisions of subparagraph (D) of this subdivision, or a truck for a sales price exceeding fifty thousand dollars, at a rate of six and one-fourth per cent on the first fifty thousand dollars of the sales price, and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding fifty thousand dollars, (ii) a vessel for a sales price exceeding one hundred thousand dollars, at a rate of six and one-fourth per cent on the first one hundred thousand dollars of the sales price, and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding one hundred thousand dollars, (iii) jewelry for a sales price exceeding five thousand dollars, at a rate of six and one-fourth per cent on the first five thousand dollars of the sales price and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding five thousand dollars, 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 six and one-fourth per cent on the first one thousand dollars of the sales price and at a rate of nine and one-fourth per cent on the portion of the sales price exceeding one thousand dollars.

Sec. 28. Section 12-411 of the general statutes is amended by adding subdivision (16) as follows (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(NEW) (16) (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 described 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 described 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 one-tenth of one per cent of the sales price of such property or services.

(B) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of a passenger motor vehicle rented or leased for a period of thirty consecutive calendar days or less, at a rate of one per cent of the total amount of payment or periodic payments for which such vehicle is rented or leased.

(C) The provisions of chapter 219 shall apply to the provisions of this subdivision in the same manner and with the same force and effect as if the language of said chapter had been incorporated in full into said subdivision and had expressly referred to the tax imposed under this subdivision, except to the extent that any such provision is inconsistent with a provision of this subdivision. The amount of municipal taxes determined under this subdivision shall become due and be remitted to the state, as if due and payable to the state, and shall be disbursed by the state to the municipality where the sale giving rise to the taxes occurred.

Sec. 29. Subdivision (77) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to sales occurring on or after said date):

(77) Sales of aircraft repair services when such services are rendered in connection with (A) aircraft having a maximum certificated takeoff weight of six thousand pounds or more, or (B) the significant overhauling or rebuilding of aircraft or aircraft parts or components on a factory basis.

Sec. 30. Section 12-435 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to sales occurring on or after July 1, 2011):

Each distributor of alcoholic beverages shall pay a tax to the state on all sales within the state of alcoholic beverages, except sales to licensed distributors, sales of alcoholic beverages which, in the course of such sales, are actually transported to some point without the state and except malt beverages which are consumed on the premises covered by a manufacturer's permit, at the rates for the respective categories of alcoholic beverages listed below:

(a) Beer, [six dollars] seven dollars and twenty cents for each barrel, three dollars and sixty cents for each half barrel, one dollar and [fifty] eighty cents for each quarter barrel and [twenty] twenty-four cents per wine gallon or fraction thereof on quantities less than a quarter barrel;

(b) Liquor, [four dollars and fifty] five dollars and forty cents per wine gallon;

(c) Still wines containing not more than twenty-one per cent of absolute alcohol, except as provided in subsections (g) and (h) of this section, [sixty] seventy-two cents per wine gallon;

(d) Still wines containing more than twenty-one per cent of absolute alcohol and sparkling wines, one dollar and [fifty] eighty cents per wine gallon;

(e) Alcohol in excess of 100 proof, [four dollars and fifty] five dollars and forty cents per proof gallon;

(f) Liquor coolers containing not more than seven per cent of alcohol by volume, two dollars and [five] forty-six cents per wine gallon;

(g) Still wine containing not more than twenty-one per cent of absolute alcohol, produced by a person who produces not more than fifty-five thousand wine gallons of wine during the calendar year, [fifteen] eighteen cents per wine gallon, provided such person presents to each distributor of alcoholic beverages described in this section a certificate, issued by the commissioner, stating that such person produces not more than fifty-five thousand wine gallons of wine during the calendar year. The commissioner is authorized to issue such certificates, prescribe the procedures for obtaining such certificates and prescribe their form; and

(h) Cider containing not more than seven per cent of absolute alcohol shall be subject to the same rate as applies to beer, as provided in subsection (a) of this section.

Sec. 31. (NEW) (Effective from passage) (a) No person, except a licensed distributor, shall, on or after July 1, 2011, sell, or after August 15, 2011, possess with intent to sell, alcoholic beverages owned by such person and held with this state on July 1, 2011, without complying with the provisions of this section. Each such person shall take an inventory of the alcoholic beverages owned by such person and held within this state at the opening of business on July 1, 2011, including therein the whole number and any fractional part of (1) barrels, half barrels, quarter barrels and wine gallons of quantities less than quarter barrels, of (A) beer, and (B) cider containing not more than seven per cent of absolute alcohol; (2) wine gallons of liquor; (3) wine gallons of still wines containing not more than twenty-one per cent of absolute alcohol; (4) wine gallons of (A) still wines containing more than twenty-one per cent of absolute alcohol, and (B) sparkling wines; (5) proof gallons of alcohol in excess of 100 proof; and (6) liquor coolers containing not more than seven per cent alcohol by volume. Each such person shall, not later than August 15, 2011, file a report of such inventory with the Commissioner of Revenue Services on forms to be prescribed or furnished by said commissioner. The tax, at rates for the respective categories of alcoholic beverages as set forth in subsection (b) of this section, shall be due and payable on the due date of such report.

(b) The rates for the respective categories of alcoholic beverages are as follows: (1) (A) Beer, and (B) cider containing not more than seven per cent of absolute alcohol, one dollar and twenty cents for each barrel, sixty cents for each half barrel, thirty cents for each quarter barrel and four cents per wine gallon or fraction thereof on quantities less than a quarter barrel; (2) liquor, ninety cents per wine gallon; (3) still wines containing not more than twenty-one per cent of absolute alcohol, twelve cents per wine gallon; (4) (A) still wines containing more than twenty-one per cent of absolute alcohol, and (B) sparkling wines, thirty cents per wine gallon; (5) alcohol in excess of 100 proof, ninety cents per proof gallon; (6) liquor coolers containing not more than seven per cent of alcohol by volume, forty-one cents per wine gallon; and (7) still wines containing not more than twenty-one per cent of absolute alcohol, produced by a person who produces not more than fifty-five thousand wine gallons of wine during the calendar year, three cents per wine gallon.

(c) If any person required to file a report under this section fails to file such report on or before August 15, 2011, the commissioner shall make an estimate of the amounts of alcoholic beverages of the several categories specified in subsection (b) of this section owned by such person and held within this state on July 1, 2011, based upon any information which is in the commissioner's possession or which may come into the commissioner's possession. The provisions of chapter 220 of the general statutes pertaining to failure to file returns, examination of returns by the commissioner, the issuance of deficiency assessments or assessments where no return has been filed, the collection of tax, the imposition of penalties and the accrual of interest shall apply to the persons required to pay the tax imposed under this section as if such persons were distributors licensed under chapter 220 of the general statutes. Failure to file such report and pay the tax when due shall be sufficient reason to revoke any state license or permit held by such person.

(d) The Commissioner of Consumer Protection shall cooperate with the Commissioner of Revenue Services in the enforcement of the tax imposed pursuant to this section.

Sec. 32. Subdivision (2) of subsection (a) of section 12-458 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(2) On said date and coincident with the filing of such return each distributor shall pay to the commissioner for the account of the purchaser or consumer a tax (A) on each gallon of such fuels sold or used in this state during the preceding calendar month of twenty-six cents on and after January 1, 1992, twenty-eight cents on and after January 1, 1993, twenty-nine cents on and after July 1, 1993, thirty cents on and after January 1, 1994, thirty-one cents on and after July 1, 1994, thirty-two cents on and after January 1, 1995, thirty-three cents on and after July 1, 1995, thirty-four cents on and after October 1, 1995, thirty-five cents on and after January 1, 1996, thirty-six cents on and after April 1, 1996, thirty-seven cents on and after July 1, 1996, thirty-eight cents on and after October 1, 1996, thirty-nine cents on and after January 1, 1997, thirty-six cents on and after July 1, 1997, thirty-two cents on and after July 1, 1998, [and] twenty-five cents on and after July 1, 2000, and twenty-eight cents on and after July 1, 2011; and (B) in lieu of said taxes, each distributor shall pay a tax on each gallon of gasohol, as defined in section 14-1, sold or used in this state during such preceding calendar month, of twenty-five cents on and after January 1, 1992, twenty-seven cents on and after January 1, 1993, twenty-eight cents on and after July 1, 1993, twenty-nine cents on and after January 1, 1994, thirty cents on and after July 1, 1994, thirty-one cents on and after January 1, 1995, thirty-two cents on and after July 1, 1995, thirty-three cents on and after October 1, 1995, thirty-four cents on and after January 1, 1996, thirty-five cents on and after April 1, 1996, thirty-six cents on and after July 1, 1996, thirty-seven cents on and after October 1, 1996, thirty-eight cents on and after January 1, 1997, thirty-five cents on and after July 1, 1997, thirty-one cents on and after July 1, 1998, [and] twenty-four cents on and after July 1, 2000, [and] twenty-five cents on and after July 1, 2004, and twenty-eight cents on and after July 1, 2011; (C) in lieu of said taxes, each distributor shall pay a tax on each gallon of diesel fuel, propane or natural gas sold or used in this state during such preceding calendar month, of eighteen cents on and after September 1, 1991, and twenty-six cents on and after August 1, 2002, and prior to July 1, 2007; (D) in lieu of said taxes, each distributor shall pay a tax on each gallon of propane or natural gas sold or used in this state during such preceding calendar month, of twenty-six cents on and after July 1, 2007, and prior to July 1, 2011; [and] (E) in lieu of said taxes, each distributor shall pay a tax on each gallon of diesel fuel sold or used in this state during such preceding calendar month, of thirty-seven cents on and after July 1, 2007, and at the applicable tax rate, as determined by the commissioner pursuant to section 12-458h, as amended by this act, on and after July 1, 2008; and (F) in lieu of said taxes, each distributor shall pay a tax on each gallon of liquefied natural gas or liquefied petroleum gas or compressed natural gas sold or used in this state during such preceding calendar month, of twenty-eight cents on and after July 1, 2011. For purposes of subparagraph (F) of this subdivision, each one hundred twenty-six and sixty-seven one-hundredths cubic feet of compressed natural gas shall be treated as a gallon.

Sec. 33. Section 12-458h of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(a) (1) The Commissioner of Revenue Services shall, on or before June 15, 2008, and on or before the fifteenth day of June thereafter, calculate, in accordance with subsection (b) of this section, the applicable tax rate per gallon of diesel fuel on the sale or use of such fuel during the twelve-month period beginning on the next succeeding July first, and shall notify each distributor, the chairpersons and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, and the Secretary of the Office of Policy and Management of such applicable tax rate.

(2) The commissioner shall, on or before June 15, 2008, and on or before the fifteenth day of June thereafter, determine the average wholesale price per gallon of diesel fuel in this state during the twelve-month period ending on the next preceding March thirty-first by using wholesale price information for diesel fuel published by the Oil Price Information Service. Such wholesale price information for "Hartford/Rocky Hill" and "New Haven" shall be averaged by the commissioner. If either the first or last day of such twelve-month period falls on a Sunday or a legal holiday, as defined in section 1-4, the next succeeding day which is not a Sunday or legal holiday shall be substituted for such first or last day, as the case may be.

(b) (1) The applicable tax rate per gallon of diesel fuel shall be the sum of (A) [twenty-six] twenty-eight cents, and (B) the product calculated in accordance with subdivision (2) of this subsection. The sum shall be rounded to the nearest one-tenth of a cent.

(2) The commissioner shall multiply (A) the average wholesale price per gallon of diesel fuel, as determined in accordance with subdivision (2) of subsection (a) of this section, by (B) the tax rate specified in subdivision (1) of subsection (b) of section 12-587. The tax rate so specified shall be the tax rate in effect for the twelve-month period beginning on the next succeeding July first.

(c) For purposes of subdivision (1) of subsection (a) of section 12-459, the tax provided for by section 12-458, as amended by this act, shall, if determined by the commissioner to be eligible for refund, be refunded at the tax rate per gallon specified in subparagraph (A) of subdivision (1) of subsection (b) of this section.

Sec. 34. (NEW) (Effective from passage) (a) An excise tax is hereby imposed upon each person licensed to sell fuel under the provisions of section 14-319 of the general statutes in the amount of three cents per gallon of gasoline and gasohol in such licensee's inventory on June 30, 2011, and in the amount of two cents per gallon of diesel fuel in such licensee's inventory on June 30, 2011.

(b) Each such licensee shall, not later than August 1, 2011, file with the Commissioner of Revenue Services, on forms prescribed by said commissioner, a report which shall show the number of gallons of gasoline, gasohol and diesel fuel in inventory as of the close of business on June 30, 2011, or, if the business closes after 11:59 p.m. on such date, at 11:59 p.m. on such date, and shall, not later than August 1, 2011, pay such tax based upon the total gallonage shown on such report. Interest at the rate of one per cent per month or fraction thereof shall be assessed on the amount of such tax not paid when due, from the date such tax became due to the date of payment. The Commissioner of Motor Vehicles shall cooperate with the Commissioner of Revenue Services in the enforcement of this tax. If any licensee required to file a report pursuant to this section fails to file such report on or before August 1, 2011, the commissioner shall make an estimate of the number of gallons of gasoline, gasohol and diesel fuel in such licensee's inventory as of the close of business on June 30, 2011, based upon any information that is in the commissioner's possession or that may come into the commissioner's possession. Failure to file such report and pay the tax when due shall be sufficient reason to revoke any state license or permit held by such person. Failure to file such report shall be treated as a failure to file a report required to be filed under the provisions of chapter 221 of the general statutes. The filing of an incorrect report shall be treated as the filing of an incorrect report under the provisions of chapter 221 of the general statutes.

Sec. 35. Subsection (a) of section 12-494 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to conveyances occurring on or after said date):

(a) There is imposed a tax on each deed, instrument or writing, whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person by such purchaser's direction, when the consideration for the interest or property conveyed equals or exceeds two thousand dollars, (1) subject to the provisions of subsection (b) of this section, at the rate of five-tenths of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing, the revenue from which shall be remitted by the town clerk of the municipality in which such tax is paid, not later than ten days following receipt thereof, to the Commissioner of Revenue Services for deposit to the credit of the state General Fund, and (2) at the rate of one-fourth of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing, [and on and after July 1, 2011, at the rate of eleven one-hundredths of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing,] provided the amount imposed under this subdivision shall become part of the general revenue of the municipality in accordance with section 12-499.

Sec. 36. Subsection (c) of section 12-494 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to conveyances occurring on or after said date):

(c) (1) In addition to the tax imposed under subsection (a) of this section, any targeted investment community, as defined in section 32-222, or any municipality in which properties designated as manufacturing plants under section 32-75c are located, may, on or after March 15, 2003, and prior to July 1, 2011, impose an additional tax on each deed, instrument or writing, whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person by his direction, when the consideration for the interest or property conveyed equals or exceeds two thousand dollars, which additional tax shall be at a rate of up to one-fourth of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing. The revenue from such additional tax shall become part of the general revenue of the municipality in accordance with section 12-499.

(2) In addition to the tax imposed under subsection (a) of this section, any municipality may, on or after July 1, 2011, impose an additional tax on each deed, instrument or writing, whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or any other person by his direction, when the consideration for the interest or property conveyed equals or exceeds two thousand dollars, which additional tax shall be at a rate of up to one-fourth of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing. The revenue from such additional tax shall become part of the general revenue of the municipality in accordance with section 12-499.

Sec. 37. (NEW) (Effective July 1, 2011) (a) As used in this section:

(1) "Person" has the same meaning as provided in section 12-1 of the general statutes;

(2) "Electric generation services" has the same meaning as provided in section 16-1 of the general statutes;

(3) "Electric generation facility" means electric generation facility, as the term is used in section 12-94d of the general statutes;

(4) "Regional bulk power grid" means regional bulk power grid, as the term is used in section 16a-7b of the general statutes;

(5) "Alternative energy system" has the same meaning as provided in subdivision (21) of subsection (a) of section 12-213 of the general statutes;

(6) "Fuel cells" has the same meaning as provided in subdivision (113) of section 12-412 of the general statutes;

(7) "Commissioner" means the Commissioner of Revenue Services;

(8) "Department" means the Department of Revenue Services; and

(9) "Person subject to tax" means a person providing electric generation services and uploading electricity generated at such person's electric generation facility in this state to the regional bulk power grid.

(b) (1) For each calendar quarter commencing on or after July 1, 2011, there is hereby imposed a tax on each person subject to tax, which tax shall be the product of two-tenths of one cent, multiplied by the net kilowatt hours of electricity generated by such person at such person's electric generation facility in this state and uploaded to the regional bulk power grid.

(2) Each person subject to tax shall, on or before the last day of January, April, July and October of each year, render to the commissioner a return, on forms prescribed or furnished by the commissioner, reporting the kilowatt hours of electricity generated by such person at such person's electric generation facility in this state and uploaded to the regional bulk power grid during the calendar quarter ending on the last day of the preceding month and reporting such other information as the commissioner deems necessary for the proper administration of this section. The tax imposed under this section shall be due and payable on the due date of such return. Each person subject to tax shall be required to file such return electronically with the department and to make payment of such tax by electronic funds transfer in the manner provided by chapter 228g of the general statutes, irrespective of whether the person subject to tax would have otherwise been required to file such return electronically or to make such tax payment by electronic funds transfer under the provisions of chapter 228g of the general statutes.

(c) Whenever the tax imposed under this section is not paid when due, a penalty of ten per cent of the amount due and unpaid or fifty dollars, whichever is greater, shall be imposed and interest at the rate of one per cent per month or fraction thereof shall accrue on such tax from the due date of such tax until the date of payment.

(d) The provisions of section 12-548 of the general statutes, sections 12-550 to 12-554, inclusive, of the general statutes and section 12-555a of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections had been incorporated in full into this section and had expressly referred to the tax imposed under this section, except to the extent that any provision is inconsistent with a provision in this section.

(e) The tax imposed by this section shall not apply to any net kilowatt hours of electricity generated at an electric generation facility in this state exclusively through the use of fuel cells or an alternative energy system.

(f) At the end of each fiscal year commencing with the fiscal year ending June 30, 2012, the Comptroller is authorized to record as revenue for such fiscal year the amount of tax imposed under the provisions of this section on electricity generated prior to the end of such fiscal year and which tax is received by the Commissioner of Revenue Services not later than five business days after the last day of July immediately following the end of such fiscal year.

Sec. 38. Subsection (a) of section 12-541 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011, and applicable to admission charges imposed on or after said date):

(a) 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 not more than five dollars, (2) when a daily admission charge is imposed which entitles the patron to participate in an athletic or sporting activity, (3) to any event, other than events held at the stadium facility, as defined in section 32-651, if all of the proceeds from the event 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, other than events held at the stadium facility, as defined in section 32-651, 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 (A) any event at the Hartford Civic Center, the New Haven Coliseum, New Britain Beehive Stadium, New Britain Stadium, effective for events occurring on or after the date such stadium was placed in service, New Britain Veterans Memorial Stadium, Bridgeport Harbor Yard Stadium, Stafford Motor Speedway, Lime Rock Park, Thompson Speedway and Waterford Speedbowl, facilities owned or managed by the Tennis Foundation of Connecticut or any successor organization, the William A. O'Neill Convocation Center, the Connecticut Exposition Center, Nature's Art, the Connecticut Convention Center, or, commencing on or after November 1, 2006, Dodd Stadium or the Arena at Harbor Yard, and (B) games of the New Britain Rock Cats, New Haven Ravens or the Waterbury Spirit, (6)] other than for events held at the stadium facility, as defined in section 32-651, paid by centers of service for elderly persons, as described in subdivision (d) of section 17b-425, [(7)] (6) 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, [(8)] (7) to any carnival or amusement ride, [(9)] (8) to any interscholastic athletic event held at the stadium facility, as defined in section 32-651, or [(10)] (9) if the admission charge would have been subject to tax under the provisions of section 12-542 of the general statutes, revision of 1958, revised to January 1, 1999. On and after July 1, 2000, the tax imposed under this section on any motion picture show shall be eight per cent of the admission charge and, on and after July 1, 2001, the tax imposed on any such motion picture show shall be six per cent of such charge.

Sec. 39. (NEW) (Effective July 1, 2011, and applicable to sales occurring on or after said date) (a) For purposes of this section:

(1) "Person" means and includes any individual, firm, copartnership, joint venture, association of persons however formed, social club, fraternal organization, corporation, limited liability company, estate, trust, fiduciary, receiver, trustee, syndicate or any group or combination acting as a unit;

(2) "Taxpayer" means any person as defined in subdivision (1) of this subsection who is subject to the tax imposed by this section; and

(3) "Cabaret or similar place" means any room in a hotel, restaurant, hall or other public place where music, dancing privileges or any other entertainment, except mechanical music alone or the music of a single performer alone, are afforded the patrons in connection with the serving or selling of alcoholic beverages, even though the charge made for admission, refreshment, service or merchandise is not increased by reason of the furnishing of such entertainment.

(b) A tax is hereby imposed equivalent to three per cent of all amounts charged for admissions, food and drink, service or merchandise at any cabaret or similar place furnishing music, dancing privileges or any other entertainment for profit during the time or times that such music, dancing privileges or any other entertainment is furnished. In such cases cabaret status begins at the earlier of (1) the time the music and dancing or other entertainment starts; or (2) the time any admission, cover, minimum, entertainment or similar charge is imposed. If any portion of an establishment is subject to the cabaret tax, the tax also applies to any other portion from which the entertainment can be viewed, or from which there is free access to the entertainment or dancing area. The tax imposed by this section is imposed upon the person making the charge for admission, food, drink, service or merchandise. Reimbursement for this tax shall be collected by such person from the purchaser. Such reimbursement, termed "tax", shall be paid by the purchaser to the person charging such amounts. Such tax, when added to the amounts charged, shall be a debt from the purchaser to the person making the charges and shall be recoverable at law. The amount of tax reimbursement, when so collected, shall be deemed to be a special fund in trust for the state of Connecticut.

(c) Each person subject to the tax imposed under this section shall file a return on or before the last day of each month setting forth the amount of tax due for the preceding month and such additional information as the commissioner may require. Each return shall be signed by the person required to file the return or such person's authorized agent, but need not be verified by oath. Any return required to be filed by a corporation shall be signed by an officer of such corporation or such officer's authorized agent. Payment of the tax shall accompany such return. If any person fails to pay the amount of tax reported to be due on the return within the time specified under the provisions of this section, there shall be imposed a penalty equal to ten per cent of such amount due and unpaid or fifty dollars, whichever is greater. The tax shall bear interest at the rate of one per cent per month or fraction thereof, from the due date.

(d) The taxes collected by the state under this subsection shall be disbursed by the state to the municipality where the transactions giving rise to the taxes occurred.

(e) The provisions of sections 12-544, 12-546, 12-547a to 12-554, inclusive, of the general statutes and sections 12-555a and 12-555b of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of sections 12-544, 12-546, 12-547a to 12-554, inclusive, of the general statutes and sections 12-555a and 12-555b of the general statutes had been incorporated in full into this section and had expressly referred to the tax imposed under this section, except to the extent that any such provision is inconsistent with a provision of this section.

Sec. 40. Subsection (a) of section 12-700 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2011):

(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:

T159

Connecticut Taxable Income

Rate of Tax

T160

Not over $2,250

3.0%

T161

Over $2,250

$67.50, plus 4.5% of the

T162

 

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:

T163

Connecticut Taxable Income

Rate of Tax

T164

Not over $3,500

3.0%

T165

Over $3,500

$105.00, plus 4.5% of the

T166

 

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:

T167

Connecticut Taxable Income

Rate of Tax

T168

Not over $4,500

3.0%

T169

Over $4,500

$135.00, plus 4.5% of the

T170

 

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:

T171

Connecticut Taxable Income

Rate of Tax

T172

Not over $6,250

3.0%

T173

Over $6,250

$187.50, plus 4.5% of the

T174

 

excess over $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:

T175

Connecticut Taxable Income

Rate of Tax

T176

Not over $10,000

3.0%

T177

Over $10,000

$300.00, plus 4.5% of the

T178

 

excess over $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:

T179

Connecticut Taxable Income

Rate of Tax

T180

Not over $12,500

3.0%

T181

Over $12,500

$375.00, plus 4.5% of the

T182

 

excess over $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:

T183

Connecticut Taxable Income

Rate of Tax

T184

Not over $7,500

3.0%

T185

Over $7,500

$225.00, plus 4.5% of the

T186

 

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:

T187

Connecticut Taxable Income

Rate of Tax

T188

Not over $12,000

3.0%

T189

Over $12,000

$360.00, plus 4.5% of the

T190

 

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:

T191

Connecticut Taxable Income

Rate of Tax

T192

Not over $15,000

3.0%

T193

Over $15,000

$450.00, plus 4.5% of the

T194

 

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, but prior to January 1, 2003, 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:

T195

Connecticut Taxable Income

Rate of Tax

T196

Not over $10,000

3.0%

T197

Over $10,000

$300.00, plus 4.5% of the

T198

 

excess over $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:

T199

Connecticut Taxable Income

Rate of Tax

T200

Not over $16,000

3.0%

T201

Over $16,000

$480.00, plus 4.5% of the

T202

 

excess over $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:

T203

Connecticut Taxable Income

Rate of Tax

T204

Not over $20,000

3.0%

T205

Over $20,000

$600.00, plus 4.5% of the

T206

 

excess over $20,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(6) For taxable years commencing on or after January 1, 2003, but prior to January 1, 2009, 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:

    T207

Connecticut Taxable Income

Rate of Tax

    T208

Not over $10,000

3.0%

    T209

Over $10,000

$300.00, plus 5.0% of the

    T210

 

excess over $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:

T211

Connecticut Taxable Income

Rate of Tax

T212

Not over $16,000

3.0%

T213

Over $16,000

$480.00, plus 5.0% of the

T214

 

excess over $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:

T215

Connecticut Taxable Income

Rate of Tax

T216

Not over $20,000

3.0%

T217

Over $20,000

$600.00, plus 5.0% of the

T218

 

excess over $20,000

(D) For trusts or estates, the rate of tax shall be 5.0% of the Connecticut taxable income.

(7) For taxable years commencing on or after January 1, 2009, but prior to January 1, 2011, 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:

    T219

Connecticut Taxable Income

Rate of Tax

    T220

Not over $10,000

3.0%

    T221

Over $10,000 but not

$300.00, plus 5.0% of the

    T222

over $500,000

excess over $10,000

    T223

Over $500,000

$24,800, plus 6.5% of the

    T224

 

excess over $500,000

(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:

T225

Connecticut Taxable Income

Rate of Tax

T226

Not over $16,000

3.0%

T227

Over $16,000 but not

$480.00, plus 5.0% of the

T228

over $800,000

excess over $16,000

T229

Over $800,000

$39,680, plus 6.5% of the

T230

 

excess over $800,000

(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:

T231

Connecticut Taxable Income

Rate of Tax

T232

Not over $20,000

3.0%

T233

Over $20,000 but not

$600.00, plus 5.0% of the

T234

over $1,000,000

excess over $20,000

T235

Over $1,000,000

$49,600, plus 6.5% of the excess

T236

 

over $1,000,000

(D) For any person who files a return under the federal income tax for such taxable year as a married individual filing separately:

T237

Connecticut Taxable Income

Rate of Tax

T238

Not over $10,000

3.0%

T239

Over $10,000 but not

$300.00, plus 5.0% of the

T240

over $500,000

excess over $10,000

T241

Over $500,000

$24,800, plus 6.5% of the excess

T242

 

over $500,000

(E) For trusts or estates, the rate of tax shall be 6.5% of the Connecticut taxable income.

(8) For taxable years commencing on or after January 1, 2011, in accordance with the following schedule:

(A) (i) For any person who files a return under the federal income tax for such taxable year as an unmarried individual:

T243

Connecticut Taxable Income

Rate of Tax

T244

Not over $10,000

3.0%

T245

Over $10,000 but not

$300.00, plus 5.0% of the

T246

over $50,000

excess over $10,000

T247

Over $50,000 but not

$2,300, plus 5.5% of the

T248

over $100,000

excess over $50,000

T249

Over $100,000 but not

$5,050, plus 5.75% of the

T250

over $200,000

excess over $100,000

T251

Over $200,000 but not

$10,800, plus 6.0% of the

T252

over $300,000

excess over $200,000

T253

Over $300,000 but not

$16,800, plus 6.25% of the

T254

over $400,000

excess over $300,000

T255

Over $400,000 but not

$23,050, plus 6.5% of the

T256

over $500,000

excess over $400,000

T257

Over $500,000

$29,550, plus 6.70% of the

T258

 

excess over $500,000

(ii) Notwithstanding the provisions of subparagraph (A)(i) of this subdivision, for each taxpayer whose Connecticut adjusted gross income exceeds fifty-six thousand five hundred dollars, the amount of the taxpayer's Connecticut taxable income to which the three-per-cent tax rate applies shall be reduced by one thousand dollars for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount. Any such amount of Connecticut taxable income to which, as provided in the preceding sentence, the three-per-cent tax rate does not apply shall be an amount to which the five-per-cent tax rate shall apply.

(B) (i) 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:

T259

Connecticut Taxable Income

Rate of Tax

T260

Not over $16,000

3.0%

T261

Over $16,000 but not

$480.00, plus 5.0% of the

T262

over $80,000

excess over $16,000

T263

Over $80,000 but not

$3,680, plus 5.5% of the

T264

over $160,000

excess over $80,000

T265

Over $160,000 but not

$8,080, plus 5.75% of the

T266

over $320,000

excess over $160,000

T267

Over $320,000 but not

$17,280, plus 6.0% of the

T268

over $480,000

excess over $320,000

T269

Over $480,000 but not

$26,880, plus 6.25% of the

T270

over $640,000

excess over $480,000

T271

Over $640,000 but not

$36,880, plus 6.5% of the

T272

over $800,000

excess over $640,000

T273

Over $800,000

$47,280, plus 6.70% of the

T274

 

excess over $800,000

(ii) Notwithstanding the provisions of subparagraph (B)(i) of this subdivision, for each taxpayer whose Connecticut adjusted gross income exceeds seventy-eight thousand five hundred dollars, the amount of the taxpayer's Connecticut taxable income to which the three-per-cent tax rate applies shall be reduced by one thousand six hundred dollars for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount. Any such amount of Connecticut taxable income to which, as provided in the preceding sentence, the three-per-cent tax rate does not apply shall be an amount to which the five-per-cent tax rate shall apply.

(C) (i) 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:

T275

Connecticut Taxable Income

Rate of Tax

T276

Not over $20,000

3.0%

T277

Over $20,000 but not

$600.00, plus 5.0% of the

T278

over $100,000

excess over $20,000

T279

Over $100,000 but not

$4,600, plus 5.5% of the

T280

over $200,000

excess over $100,000

T281

Over $200,000 but not

$10,100, plus 5.75% of the

T282

over $400,000

excess over $200,000

T283

Over $400,000 but not

$21,600, plus 6.0% of the

T284

over $600,000

excess over $400,000

T285

Over $600,000 but not

$33,600, plus 6.25% of the

T286

over $800,000

excess over $600,000

T287

Over $800,000 but not

$46,100, plus 6.5% of the

T288

over $1,000,000

excess over $800,000

T289

Over $1,000,000

$59,100, plus 6.70% of the

T290

 

excess over $1,000,000

(ii) Notwithstanding the provisions of subparagraph (C)(i) of this subdivision, for each taxpayer whose Connecticut adjusted gross income exceeds one hundred thousand five hundred dollars, the amount of the taxpayer's Connecticut taxable income to which the three-per-cent tax rate applies shall be reduced by two thousand dollars for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount. Any such amount of Connecticut taxable income to which, as provided in the preceding sentence, the three-per-cent tax rate does not apply shall be an amount to which the five-per-cent tax rate shall apply.

(D) (i) For any person who files a return under the federal income tax for such taxable year as a married individual filing separately:

T291

Connecticut Taxable Income

Rate of Tax

T292

Not over $10,000

3.0%

T293

Over $10,000 but not

$300.00, plus 5.0% of the

T294

over $50,000

excess over $10,000

T295

Over $50,000 but not

$2,300, plus 5.5% of the

T296

over $100,000

excess over $50,000

T297

Over $100,000 but not

$5,050, plus 5.75% of the

T298

over $200,000

excess over $100,000

T299

Over $200,000 but not

$10,800, plus 6.0% of the

T300

over $300,000

excess over $200,000

T301

Over $300,000 but not

$16,800, plus 6.25% of the

T302

over $400,000

excess over $300,000

T303

Over $400,000 but not

$23,050, plus 6.5% of the

T304

over $500,000

excess over $400,000

T305

Over $500,000

$29,550, plus 6.70% of the

T306

 

excess over $500,000

(ii) Notwithstanding the provisions of subparagraph (D)(i) of this subdivision, for each taxpayer whose Connecticut adjusted gross income exceeds fifty thousand two hundred fifty dollars, the amount of the taxpayer's Connecticut taxable income to which the three-per-cent tax rate applies shall be reduced by one thousand dollars for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount. Any such amount of Connecticut taxable income to which, as provided in the preceding sentence, the three-per-cent tax rate does not apply shall be an amount to which the five-per-cent tax rate shall apply.

(E) For trusts or estates, the rate of tax shall be 6.70% of the Connecticut taxable income.

[(8)] (9) 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. 41. (Effective from passage) The Commissioner of Revenue Services shall adjust the withholding tables issued for purposes of administering the income tax imposed under chapter 229 of the general statutes, to take account of any changes in such tax made by section 40 of this act, and, as soon as practicable, shall issue new withholding tables applicable to the taxable year commencing during 2011.

Sec. 42. (Effective from passage) Notwithstanding the provisions of section 12-722 of the general statutes, any taxpayer required to make an estimated payment in June, 2011, for the tax due under chapter 229 of the general statutes, shall make such payment in an amount which is adjusted for any change in the rate applicable to the current taxable year, as provided in section 12-700 of the general statutes, as amended by this act.

Sec. 43. (NEW) (Effective from passage and applicable to taxable years commencing on or after January 1, 2011) (a) Any resident of this state, as defined in subdivision (1) of subsection (a) of section 12-701 of the general statutes, who is subject to the tax imposed under chapter 229 of the general statutes for any taxable year shall be allowed a credit against the tax otherwise due under such chapter in an amount equal to thirty per cent of the earned income credit claimed and allowed for the same taxable year under Section 32 of the Internal Revenue Code, as defined in subsection (a) of section 12-701 of the general statutes.

(b) If the amount of the credit allowed pursuant to this section exceeds the taxpayer's liability for the tax imposed under said chapter 229, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 or 12-742 of the general statutes, shall refund the amount of such excess, without interest, to the taxpayer.

(c) If a married individual who is otherwise eligible for the credit allowed hereunder has filed a joint federal income tax return for the taxable year, but is required to file a separate return under said chapter 229 of the general statutes for such taxable year, the credit for which such individual is eligible under this section shall be an amount equal to thirty per cent of the earned income credit claimed and allowed for such taxable year under said Section 32 of the Internal Revenue Code multiplied by a fraction, the numerator of which is such individual's federal adjusted gross income, as reported on such individual's separate return under said chapter 229, and the denominator of which is the federal adjusted gross income, as reported on the joint federal income tax return.

(d) To the extent permitted under federal law, any state or federal earned income tax credit shall not be counted as income when received by an individual who is an applicant for, or recipient of, benefits or services under any state or federal program that provides such benefits or services based on need, nor shall any such earned income tax credit be counted as resources, for the purpose of determining the individual's or any other individual's eligibility for such benefits or services, or the amount of such benefits or services.

Sec. 44. Subsections (b) and (c) of section 12-704c of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2011):

(b) The credit allowed under this section shall not exceed two hundred fifteen dollars for the taxable year commencing on or after January 1, 1997, and prior to January 1, 1998; for taxable years commencing on or after January 1, 1998, but prior to January 1, 1999, three hundred fifty dollars; for taxable years commencing on or after January 1, 1999, but prior to January 1, 2000, four hundred twenty-five dollars; for taxable years commencing on or after January 1, 2000, but prior to January 1, 2003, five hundred dollars; for taxable years commencing on or after January 1, 2003, three hundred fifty dollars; for taxable years commencing on or after January 1, 2005, but prior to January 1, 2006, three hundred fifty dollars; and for taxable years commencing on or after January 1, 2006, but prior to January 1, 2011, five hundred dollars. 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, in the aggregate, shall not exceed such amounts for each such taxable year. No credit shall be allowed under this section for taxable years commencing on or after January 1, 2011.

(c) (1) (A) For taxable years commencing prior to January 1, 2000, 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.

(B) For taxable years commencing on or after January 1, 2000, but prior to January 1, 2001, 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-three 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.

(C) For taxable years commencing on or after January 1, 2001, but prior to January 1, 2004, 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-four thousand five hundred dollars, the amount of the credit 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) For taxable years commencing on or after January 1, 2004, but prior to January 1, 2007, 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-five thousand dollars, the amount of the credit 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.

(E) For taxable years commencing on or after January 1, 2007, but prior to January 1, 2008, 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-five thousand five hundred dollars, the amount of the credit 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.

(F) For taxable years commencing on or after January 1, 2008, but prior to January 1, [2012] 2011, 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-six thousand five hundred dollars, the amount of the credit 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.

[(G) For taxable years commencing on or after January 1, 2012, but prior to January 1, 2013, 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-eight thousand five hundred dollars, the amount of the credit 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.

(H) For taxable years commencing on or after January 1, 2013, but prior to January 1, 2014, 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 sixty thousand five hundred dollars, the amount of the credit 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.

(I) For taxable years commencing on or after January 1, 2014, but prior to January 1, 2015, 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 sixty-two thousand five hundred dollars, the amount of the credit 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.

(J) For taxable years commencing on or after January 1, 2015, 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 sixty-four thousand five hundred dollars, the amount of the credit 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.]

(2) 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 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.

(3) 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 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.

(4) 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 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.

Sec. 45. Subsection (l) of section 45a-107 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to estates of decedents dying on or after January 1, 2011):

(l) In the case of decedents who die on or after January 1, 2011:

(1) Any costs assessed under this section that are not paid within thirty days of the date of an invoice from the court of probate shall bear interest at the rate of one-half of one per cent per month or portion thereof until paid;

(2) If a tax return or a copy of a tax return required under subparagraph [(C)] (D) of subdivision (3) of subsection (b) of section 12-392, as amended by this act, is not filed with a court of probate by the due date for such return or copy under subdivision (1) of subsection (b) of section 12-392, as amended by this act, or by the date an extension under subdivision (4) of subsection (b) of section 12-392, as amended by this act, expires, the costs that would have been due under this section if such return or copy had been filed by such due date or expiration date shall bear interest at the rate of one-half of one per cent per month or portion thereof from the date that is thirty days after such due date or expiration date, whichever is later, until paid. If a return or copy is filed with a court of probate on or before such due date or expiration date, whichever is later, the costs assessed shall bear interest as provided in subdivision (1) of this subsection;

(3) A court of probate may extend the time for payment of any costs under this section, including interest, if it appears to the court that requiring payment by such due date or expiration date would cause undue hardship. No additional interest shall accrue during the period of such extension. A court of probate may not waive interest outside of any extension period;

(4) The interest requirements in subdivisions (1) and (2) of this subsection shall not apply if:

(A) The basis for costs for the estate does not exceed forty thousand dollars; or

(B) The basis for costs for the estate does not exceed five hundred thousand dollars and any portion of the property included in the basis for costs passes to a surviving spouse.

Sec. 46. Section 14-379 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

As used in sections 14-379 to 14-390, inclusive, [subdivisions (3) and (4)] subdivision (3) of section 12-430 and sections 12-431, 14-33, 14-163 and 53-205, unless the context otherwise requires:

(1) "Commissioner" means the Commissioner of Motor Vehicles;

(2) "Snowmobile" means any self-propelled vehicle designed for travel on snow or ice, except vehicles propelled by sail;

(3) "Snowmobile dealer" means a person engaged in the business of manufacturing and selling new snowmobiles or selling new or used snowmobiles, or both, having an established place of business for the sale, trade and display of such snowmobiles;

(4) "All-terrain vehicle" means a self-propelled vehicle designed to travel over unimproved terrain that has been determined by the Commissioner of Motor Vehicles to be unsuitable for operation on the public highways and is not eligible for registration under chapter 246;

(5) "All-terrain vehicle dealer" means any person engaged in the business of manufacturing and selling new all-terrain vehicles, or both, having an established place of business for the manufacture, sale, trade and display of such all-terrain vehicles; and

(6) "Operate" means to control the course of or otherwise use a snowmobile or all-terrain vehicle.

Sec. 47. Section 12-407e, subdivisions (47), (48), (52), (95), (97) and (111) of section 12-412, section 12-412b, section 12-412j, subdivision (4) of section 12-430 and section 12-430a of the general statutes are repealed. (Effective July 1, 2011, and applicable to sales occurring on or after said date)

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage and applicable to calendar years commencing on or after January 1, 2011

12-202

Sec. 2

from passage and applicable to calendar years commencing on or after January 1, 2011

12-202a(a)

Sec. 3

from passage and applicable to calendar years commencing on or after January 1, 2011

12-210(b)

Sec. 4

from passage and applicable to calendar years commencing on or after January 1, 2011

12-211a

Sec. 5

from passage and applicable to income years commencing on or after January 1, 2011

12-214(b)(6)

Sec. 6

from passage and applicable to income years commencing on or after January 1, 2011

12-217jj(e)

Sec. 7

from passage and applicable to income years commencing on or after January 1, 2011

12-217zz

Sec. 8

from passage and applicable to income years commencing on or after January 1, 2011

12-218(c)

Sec. 9

from passage and applicable to income years commencing on or after January 1, 2011

12-219(b)(6)

Sec. 10

July 1, 2011, and applicable to sales occurring on or after said date

12-296

Sec. 11

July 1, 2011, and applicable to sales occurring on or after said date

12-316

Sec. 12

from passage

New section

Sec. 13

July 1, 2011, and applicable to sales occurring on or after said date

12-330c(a)

Sec. 14

from passage and applicable to estates of decedents dying on or after January 1, 2011

12-391(g)

Sec. 15

from passage and applicable to estates of decedents dying on or after January 1, 2011

12-392(b)(3)

Sec. 16

from passage and applicable to estates of decedents dying on or after January 1, 2011

12-398(e)

Sec. 17

from passage and applicable to gifts made during calendar years commencing on or after January 1, 2011

12-642(a)

Sec. 18

July 1, 2011, and applicable to sales occurring on or after said date

12-407(a)(2)(M)

Sec. 19

July 1, 2011, and applicable to sales occurring on or after said date

12-407(a)(8) and (9)

Sec. 20

July 1, 2011, and applicable to sales occurring on or after said date

12-407(a)(37)(I)

Sec. 21

July 1, 2011, and applicable to sales occurring on or after said date

12-407(a)(37)(N)

Sec. 22

July 1, 2011, and applicable to sales occurring on or after said date

12-407(a)(37)(S)

Sec. 23

July 1, 2011, and applicable to sales occurring on or after said date

12-407(a)(37)(FF)

Sec. 24

July 1, 2011, and applicable to sales occurring on or after said date

12-407(a)(37)

Sec. 25

July 1, 2011, and applicable to sales occurring on or after said date

12-408(1)

Sec. 26

July 1, 2011, and applicable to sales occurring on or after said date

12-408

Sec. 27

July 1, 2011, and applicable to sales occurring on or after said date

12-411(1)

Sec. 28

July 1, 2011, and applicable to sales occurring on or after said date

12-411

Sec. 29

July 1, 2011, and applicable to sales occurring on or after said date

12-412(77)

Sec. 30

from passage and applicable to sales occurring on or after July 1, 2011

12-435

Sec. 31

from passage

New section

Sec. 32

July 1, 2011

12-458(a)(2)

Sec. 33

July 1, 2011

12-458h

Sec. 34

from passage

New section

Sec. 35

July 1, 2011, and applicable to conveyances occurring on or after said date

12-494(a)

Sec. 36

July 1, 2011, and applicable to conveyances occurring on or after said date

12-494(c)

Sec. 37

July 1, 2011

New section

Sec. 38

July 1, 2011, and applicable to admission charges imposed on or after said date

12-541(a)

Sec. 39

July 1, 2011, and applicable to sales occurring on or after said date

New section

Sec. 40

from passage and applicable to taxable years commencing on or after January 1, 2011

12-700(a)

Sec. 41

from passage

New section

Sec. 42

from passage

New section

Sec. 43

from passage and applicable to taxable years commencing on or after January 1, 2011

New section

Sec. 44

from passage and applicable to taxable years commencing on or after January 1, 2011

12-704c(b) and (c)

Sec. 45

from passage and applicable to estates of decedents dying on or after January 1, 2011

45a-107(l)

Sec. 46

July 1, 2011

14-379

Sec. 47

July 1, 2011, and applicable to sales occurring on or after said date

Repealer section

Statement of Purpose:

To implement the Governor's budget recommendations.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]