Substitute House Bill No. 5610
          Substitute House Bill No. 5610

              PUBLIC ACT NO. 92-184

AN   ACT  RESTRUCTURING  THE  CONNECTICUT  TOURISM
INDUSTRY.


    Section  1. (NEW)  (a)  There  is  established
within the department  of  economic development an
office   of   tourism.   The   office   shall   be
administered by a director of tourism appointed by
the commissioner of economic development, with the
consent  of  the   Connecticut   tourism   council
established under section  2  of  this  act.  Said
director shall have  substantial experience in the
tourism  field  and   shall  be  exempt  from  the
classified service.
    (b) The office of tourism shall:
    (1) Develop and  annually  update  a strategic
marketing plan for  the national and international
promotion of Connecticut as a tourism destination,
submit  such  plan,   annual  updates  and  annual
budgets for the implementation of such plan to the
Connecticut  tourism  council   established  under
section  2  of  this  act  for  its  approval  and
implement such plan  and  budgets  as  approved or
amended by the council;
    (2) Assist the council in reviewing the annual
plans of the  tourism  districts established under
section 3 of  this  act for compatibility with the
strategic marketing plan  described in subdivision
(1) of this subsection;
    (3) Provide marketing  and other assistance to
the tourism industry;
    (4) In cooperation with the tourism districts,
maintain and manage the visitor welcome centers in
the state; and
    (5) (A) Develop  a program of challenge grants
to  encourage  innovation   and  job  development,
provide   incentives  for   coordinated   activity
consistent with the  strategic  marketing plan and
stimulate the development  of  private  funds  for
tourism promotion, (B) make recommendations to the
council  as  to   which   applications  should  be
approved and (C)  make  grants  in accordance with
the decisions of the council.
    Sec. 2. (NEW)  (a) There is established within
the  department  of   economic   development,  for
administrative   purposes  only,   a   Connecticut
tourism council. The  council shall consist of (1)
the commissioner of economic development, (2) four
members appointed by  the  governor,  one  of whom
shall represent the  campground  industry,  one of
whom shall represent a chamber of commerce, one of
whom shall represent a tourist attraction, and one
of whom shall  represent  the  arts  and  (3)  six
members  appointed as  follows:  (A)  One  by  the
president pro tempore  of  the  senate,  who shall
represent the hotel and motel industry, (B) one by
the  majority leader  of  the  senate,  who  shall
represent  a  convention   center   authority   or
coliseum authority, (C) one by the minority leader
of the senate,  who shall represent the restaurant
industry, (D) one  by  the speaker of the house of
representatives,  who shall  represent  a  tourism
district, (E) one  by  the  majority leader of the
house of representatives,  who  shall  represent a
tourism  district and  (F)  one  by  the  minority
leader of the  house of representatives, who shall
represent tour bus  companies. All appointments to
the council shall  be made by October 1, 1992. Two
of the members initially appointed by the governor
shall serve a  term  of  two  years and two of the
members appointed by  the  governor  shall serve a
term of four  years.  All members appointed by the
governor thereafter shall  serve  a  term  of four
years.  The terms  of  all  members  appointed  by
members  of  the   general   assembly   shall   be
conterminous with the  terms  of  members  of  the
general assembly. No  member  of  the  council who
represents a tourism  district  may  (i) serve for
consecutive terms on the council or (ii) represent
the same tourism  district  as  his predecessor on
the   council.  The   commissioner   of   economic
development  shall serve  as  chairperson  of  the
council.
    (b) The council shall:
    (1) Adopt procedures  for the operation of the
council  and  the   oversight  of  the  office  of
tourism;
    (2) Review and  approve or amend the strategic
marketing plan developed  by the office of tourism
pursuant to subdivision  (1)  of subsection (b) of
section 1 of this act;
    (3) (A) Review the plans and activities of the
tourism districts established  under  section 3 of
this act, the  convention  center  authorities and
the  coliseum  authorities,   and   (B)  determine
whether such plans  and  activities are consistent
with the strategic marketing plan and will promote
economic growth and  employment  opportunities  in
the state;
    (4)  Not later  than  January  15,  1993,  and
annually  thereafter,  submit   a  report  on  its
findings and recommendations to the joint standing
committee   of   the   general   assembly   having
cognizance of matters  relating  to the department
of economic development; and
    (5) Determine which applications for challenge
grants should be approved under subdivision (5) of
section 1 of this act. No such grant shall be made
to a tourism district which the council determines
is engaging in  activities  inconsistent  with the
strategic marketing plan.
    Sec.  3.  (NEW)  (a)  There  shall  be  eleven
tourism districts as follows:
    (1) The Greater Fairfield district, consisting
of:  Greenwich,  Stamford,   Darien,  New  Canaan,
Wilton,   Norwalk,   Weston,   Westport,   Easton,
Fairfield, Monroe, Bridgeport, and Stratford;
    (2) The Greater Waterbury district, consisting
of:  Waterbury,  Wolcott,  Watertown,  Middlebury,
Naugatuck,  Thomaston, Beacon  Falls,  Oxford  and
Seymour;
    (3) The Greater New Haven district, consisting
of:  Prospect, Bethany,  Hamden,  Ansonia,  Derby,
Orange,  Milford, West  Haven,  Woodbridge,  North
Haven,  New Haven,  East  Haven,  North  Branford,
Shelton and Trumbull;
    (4)   The   Connecticut    Valley    district,
consisting  of:  Meriden,  Wallingford,  Cromwell,
Middletown, Middlefield, Portland,  East  Hampton,
Durham,   Haddam,   East   Haddam,   Killingworth,
Clinton, Chester, Deep  River,  Essex,  Westbrook,
Old Saybrook, Branford, Guilford and Madison;
    (5)  The  Southeastern  Connecticut  district,
consisting of: Colchester,  Salem, Lyme, Old Lyme,
East Lyme, Franklin, Bozrah, Montville, Waterford,
New  London, Sprague,  Lisbon,  Norwich,  Preston,
Ledyard,   Groton,  Griswold,   Voluntown,   North
Stonington and Stonington;
    (6) The Litchfield  Hills district, consisting
of: Salisbury, Sharon,  Kent,  New  Milford, North
Canaan,  Canaan,  Cornwall,   Warren,  Washington,
Roxbury, Southbury, Norfolk,  Goshen,  Litchfield,
Morris,     Bethlehem,    Woodbury,     Colebrook,
Winchester, Torrington, Hartland, Barkhamsted, New
Hartford, Harwinton, Plymouth and Bristol;
    (7)   The   Central    Connecticut   district,
consisting  of: Southington,  Berlin,  Plainville,
New Britain and Cheshire;
    (8) The Greater  Hartford district, consisting
of: Canton, Simsbury,  South  Windsor,  Ellington,
Vernon, Tolland, Burlington,  Avon, West Hartford,
Hartford,  East  Hartford,   Manchester,   Bolton,
Andover,   Farmington,  Newington,   Wethersfield,
Glastonbury, Marlborough, Hebron and Rocky Hill;
    (9)   The  Northeast   Connecticut   district,
consisting   of:   Union,   Woodstock,   Thompson,
Willington,  Ashford, Eastford,  Pomfret,  Putnam,
Killingly, Coventry, Mansfield,  Chaplin, Hampton,
Brooklyn,  Columbia, Lebanon,  Windham,  Scotland,
Canterbury, Plainfield and Sterling;
    (10)   The   Housatonic    Valley    district,
consisting  of: Bethel,  Bridgewater,  Brookfield,
Danbury,   New   Fairfield,    Newtown,   Redding,
Ridgefield and Sherman; and
    (11) The Tobacco  Valley  district, consisting
of Granby, East  Granby,  Suffield, Windsor Locks,
Windsor, Bloomfield, Enfield, East Windsor, Somers
and Stafford.
    (b) Each tourism  district  shall have a board
of directors consisting of one representative from
each  municipality  within  the  district  with  a
population less than  sixty-five  thousand and two
representatives from each  municipality within the
district with a population greater than sixty-five
thousand, appointed by  the  board of selectmen of
towns, the council  or board of aldermen of cities
or  the  board   of   burgesses  of  boroughs.  In
addition, the board of directors may appoint up to
twenty-one persons representing  tourism interests
within the district  to  serve  on  the board. All
appointments to the  board  of  directors shall be
reported to the director of the office of tourism.
    (c) The provisions  of  section  1-19  of  the
general  statutes  shall  apply  to  each  tourism
district and to  any other entity contracting with
a tourist district  to  carry out the functions of
the region.
    (d) The office  of  tourism  shall assist each
tourism district to  establish an ad hoc committee
to draft a  charter  and  by-laws  for the tourism
district and to  organize  the  initial meeting of
the board of directors of the district.
    Sec. 4. (NEW)  There  is established a fund to
be known as  the  "tourism  fund".  The  fund  may
contain any moneys required by law to be deposited
in the fund  and  shall  be  held by the treasurer
separate and apart  from  all  other moneys, funds
and accounts. Investment  earnings credited to the
assets of said  fund  shall  become  part  of  the
assets of said fund. Any balance remaining in said
fund at the  end  of  any  fiscal  year  shall  be
carried forward in  said  fund for the fiscal year
next succeeding. The  moneys in such fund shall be
allocated  for  the   purposes  of  the  strategic
marketing plan and  challenge  grants  required by
section 1 of  this act, provided during the fiscal
year ending June  30,  1993,  (1) no moneys in the
fund shall be used for any administrative costs of
the office of tourism and (2) an amount determined
by  the  commissioner   of   revenue  services  as
necessary to carry  out the purposes of sections 5
to 8, inclusive,  of  this  act,  which  shall not
exceed thirty thousand dollars, shall be allocated
to the department  of  revenue  services  for such
purposes, upon the  submission  of  a statement of
such costs by such commissioner to the director of
the office of tourism and the tourism council.
    Sec. 5. (NEW)  A  tourism  fund  surcharge  is
hereby imposed on  the  rental  or  leasing, for a
period  of thirty  consecutive  calendar  days  or
less, of a  passenger  motor vehicle by any person
licensed pursuant to  section 14-15 of the general
statutes. Said surcharge  shall  be in addition to
any  tax  otherwise   applicable   to   any   such
transaction. No surcharge  shall  be imposed under
this section for  the rental or leasing of a motor
vehicle pursuant to  a  written agreement having a
term of more than thirty days.
    Sec. 6. (NEW)  (a)  The  surcharge  imposed by
section 5 of  this  act  shall be at a rate of one
dollar for each  day,  or  portion  thereof, up to
thirty  days, for  which  such  motor  vehicle  is
rented or leased to the lessee.
    (b) Reimbursement for the surcharge imposed by
section 5 of  this  act  shall be collected by the
lessor  from  the   lessee   and   such  surcharge
reimbursement,   termed   "surcharge"    in   this
subsection, shall be  paid  by the consumer to the
retailer and each  retailer shall collect from the
consumer the full  amount of the surcharge imposed
by section 5  of this act. Such surcharge shall be
a debt from  the  lessee  to  the  lessor, when so
added to the  original  lease or rental price, and
shall be recoverable  at law in the same manner as
other debts. Whenever  such  surcharge, payable by
the consumer with  respect  to a charge account or
credit sale is  remitted  by  the  retailer to the
commissioner  and  such   sale   as   an   account
receivable is determined  to  be  worthless and is
actually written off  as uncollectible for federal
income tax purposes,  the amount of such surcharge
remitted may be credited against the surcharge due
on the surcharge  return filed by the retailer for
the  monthly or  quarterly  period,  whichever  is
applicable, next following  the  period  in  which
such amount is  actually so written off, but in no
event shall such  credit  be  allowed  later  than
three years following  the  date such surcharge is
remitted. The commissioner  shall,  by regulations
adopted  in accordance  with  chapter  54  of  the
general statutes, provide  standards  for  proving
any such claim  for  credit.  If  any account with
respect  to  which   such  credit  is  allowed  is
thereafter collected by  the  retailer in whole or
in part, the amount so collected shall be included
in the surcharge  return  covering  the  period in
which such collection occurs.
    Sec. 7. (NEW)  (a)  The  surcharge  imposed by
sections 5 to 8, inclusive, of this act is due and
payable to the  commissioner  monthly on or before
the last day  of  the  month  next succeeding each
monthly  period except  that  every  person  whose
total  surcharge liability  for  the  twelve-month
period ended on  the preceding September thirtieth
was less than  four  thousand  dollars  shall file
returns  and pay  the  surcharge  on  a  quarterly
basis.  "Quarterly"  means   a   period  of  three
calendar months commencing  on  the  first  day of
January, April, July  or  October of each year or,
if any seller  commences  business on a date other
than the first  day  of  January,  April,  July or
October,  a  period   beginning  on  the  date  of
commencement  of  business  and  ending  on  March
thirty-first, June thirtieth,  September thirtieth
or December thirty-first, respectively.
    (b) On or  before  the  last  day of the month
following each monthly or quarterly period, as the
case may be,  a  return  for  the preceding period
shall be filed  with the commissioner in such form
as the commissioner  may  prescribe. Returns shall
be signed by  the  person  required  to  file  the
return or by  his authorized agent but need not be
verified by oath, provided a return required to be
filed by a  corporation  shall  be  signed  by  an
officer of such corporation.
    (c)  The return  shall  show  the  number  and
rental period of all vehicles leased by the lessor
during the preceding  reporting period. The return
shall also show  the  amount of the surcharges for
the period covered by the return in such manner as
the  commissioner  may   require  and  such  other
information as the  commissioner  deems  necessary
for the proper  administration of sections 5 to 8,
inclusive, of this act.
    (d) Any person  who fails to pay the surcharge
imposed by sections 5 to 8, inclusive, of this act
to the state  or  any amount of surcharge required
to be collected  and  paid to the state within the
time required shall  pay  a penalty of fifteen per
cent of the  surcharge or fifty dollars, whichever
amount is greater, in addition to the surcharge or
amount of the surcharge, plus interest at the rate
of  one and  two-thirds  per  cent  per  month  or
fraction  thereof  from   the  due  date  of  such
surcharge or amount  of  surcharge  required to be
collected to the  date  of payment. Subject to the
provisions  of  section   12-3a   of  the  general
statutes, the commissioner  may  waive  all or any
part of the  penalties provided under this chapter
when it is  proven  to  the  satisfaction  of  the
commissioner that failure to pay any surcharge was
due to reasonable cause and was not intentional or
due to neglect.
    (e) Any such  return  and payment of surcharge
due thereon shall  be  deemed  to  have been filed
within the time  required  under  this  section if
such return, together with the amount of surcharge
due thereon, is  postmarked  on or before the last
day such return  and  payment  are  required to be
filed in accordance with this section.
    (f) The commissioner, if he deems it necessary
in order to  insure  payment  to or facilitate the
collection  by  the   state   of   the  amount  of
surcharges,  may permit  or  require  returns  and
payment of the amount of surcharges for other than
monthly or quarterly periods.
    (g) The commissioner for good cause may extend
the time for  making  any  return  and  paying any
amount required to  be paid under sections 5 to 8,
inclusive,  of this  act,  if  a  written  request
therefor is filed  with  the commissioner together
with a tentative  return which must be accompanied
by a payment  of  the  surcharge,  which  shall be
estimated in such  tentative  return, on or before
the last day  for filing the return. Any person to
whom  an  extension   is  granted  shall  pay,  in
addition to the surcharge, interest at the rate of
one and two-thirds  per cent per month or fraction
thereof from the date on which the surcharge would
have been due without the extension until the date
of payment.
    (h) The proceeds from the surcharge imposed by
sections 5 to  8,  inclusive, of this act shall be
deposited in the  tourism  fund  established under
section 4 of this act.
    Sec.  8.  (NEW)  The  provisions  of  sections
12-548 to 12-554,  inclusive,  and section 12-555a
of  the  general   statutes  shall  apply  to  the
provisions of sections  5 to 8, inclusive, of this
act in the same manner and with the same force and
effect as if  the language of said sections 12-548
to 12-554, inclusive, and section 12-555a had been
incorporated  in  full   into  sections  5  to  8,
inclusive, of this  act and had expressly referred
to the surcharge  under  said  sections, except to
the extent that any provision is inconsistent with
a provision in said sections.
    Sec. 9. Subsection  (2)  of  section 12-407 of
the general statutes, as amended by section 103 of
public act 91-3  of  the  June special session and
section 26 of public act 91-14 of the June special
session,  is  repealed   and   the   following  is
substituted in lieu thereof:
    (2) "Sale" and "selling" mean and include: (a)
Any  transfer  of   title,   exchange  or  barter,
conditional or otherwise,  in any manner or by any
means whatsoever, of  tangible  personal  property
for a consideration;  (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a point in  this  state  for  the  purpose  of the
transfer of title, exchange or barter, conditional
or  otherwise, in  any  manner  or  by  any  means
whatsoever, of the  property  for a consideration;
(c)   the  producing,   fabricating,   processing,
printing  or  imprinting   of   tangible  personal
property for a  consideration  for  consumers  who
furnish   either  directly   or   indirectly   the
materials  used  in  the  producing,  fabricating,
processing, printing or  imprinting, including but
not  limited  to,   computer   programming,   sign
construction,   photofinishing,  duplicating   and
photocopying; (d) the  furnishing and distributing
of tangible personal  property for a consideration
by social clubs  and  fraternal  organizations  to
their  members  or  others;  (e)  the  furnishing,
preparing, or serving for a consideration of food,
meals or drinks;  (f)  a  transaction  whereby the
possession  of property  is  transferred  but  the
seller  retains the  title  as  security  for  the
payment  of  the  price;  (g)  a  transfer  for  a
consideration of the  title  of  tangible personal
property which has  been  produced,  fabricated or
printed to the  special  order of the customer, or
of any publication,  including but not limited to,
computer    programming,    sign     construction,
photofinishing, duplicating and  photocopying; (h)
a transfer for a consideration of the occupancy of
any room or  rooms  in a hotel or lodging house OR
SPACE IN A  CAMPGROUND  for  a  period  of  thirty
consecutive  calendar  days   or   less;  (i)  the
rendering of certain services for a consideration,
exclusive of such services rendered by an employee
for his employer,  as  follows:  (A)  Computer and
data  processing  services,   including   but  not
limited  to,  time,  (B)  credit  information  and
reporting  services, (C)  services  by  employment
agencies   and   agencies    providing   personnel
services, (D) private  investigation,  protection,
patrol work, watchman  and  armored  car services,
(E)   painting   and   lettering   services,   (F)
photographic   studio  services,   (G)   telephone
answering services, (H) stenographic services, (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  for  the
voluntary  containing  or  removing  of  hazardous
waste,  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   by   an
organization which has  as one of its purposes the
ownership of housing  for  low and moderate income
families, and which  organization has been granted
exemption  from  federal   income   taxation,  (J)
business    analysis,    management,    management
consulting  and  public  relations  services,  (K)
services providing "piped-in" music to business or
professional     establishments,    (L)     flight
instruction   and   chartering   services   by   a
certificated air carrier  on  an aircraft, the use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12) of section  12-411,  would be deemed a retail
sale and a  taxable  storage or use, respectively,
of  such  aircraft  by  such  carrier,  (M)  motor
vehicle repair services,  including  any  type  of
repair, painting or  replacement  related  to  the
body or any  of  the  operating  parts  of a motor
vehicle, (N) motor  vehicle parking, including the
provision of space, other than metered space, in a
lot having thirty or more spaces, other than space
in a seasonal parking lot provided by a person who
is  exempt  from   taxation   under  this  chapter
pursuant to subsection  (1), (5) or (8) of section
12-412  and  car   washing   services,   excluding
coin-operated car washes,  (O) radio or television
repair services, (P)  furniture reupholstering and
repair  services,  (Q)   repair  services  to  any
electrical or electronic device, including but not
limited to, such  equipment  used  for purposes of
refrigeration or air-conditioning,  (R) health and
athletic  club services,  exclusive  of  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,  (S)  land
surveying  services, (T)  lobbying  or  consulting
services   for  purposes   of   representing   the
interests of a client in relation to the functions
of any governmental entity or instrumentality, (U)
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,  (V) locksmith
services,  (W)  advertising  or  public  relations
services, including layout, art direction, graphic
design,  mechanical  preparation   or   production
supervision, not related  to  the  development  of
media  advertising  or   cooperative  direct  mail
advertising, except for  media advertising subject
to  taxation  under   subdivision   (n)   of  this
subsection,  (X)  landscaping   and   horticulture
services, other than landscaping services provided
by  a licensed  landscape  architect,  (Y)  window
cleaning services, (Z)  maintenance services, (AA)
janitorial services, (BB)  exterminating services,
(CC)  swimming  pool   cleaning   and  maintenance
services, (DD) renovation  and  repair services as
set forth in  this  subparagraph,  to  other  than
industrial,  commercial or  income-producing  real
property:  Paving  of   any   sort,   painting  or
staining,   wallpapering,  roofing,   siding   and
exterior  sheet metal  work,  (EE)  amusement  and
recreation services included  in major group 79 in
the  Standard  Industrial  Classification  Manual,
United States Office  of  Management  and  Budget,
1987 edition, excluding  any such service provided
by a person who is exempt from taxation under this
chapter pursuant to  subsection (1), (5) or (8) of
section   12-412,  (FF)   miscellaneous   personal
services included in  industry  group  729  in the
Standard Industrial Classification  Manual, United
States  Office  of  Management  and  Budget,  1987
edition, (GG) tax  preparation  services  and (HH)
any repair or  maintenance  service to any item of
tangible personal property  including any contract
of warranty or  service  related  to  for any such
item;  (j)  the  leasing  or  rental  of  tangible
personal   property  of   any   kind   whatsoever,
including  but not  limited  to,  motor  vehicles,
linen or towels,  machinery  or  apparatus, office
equipment and data  processing equipment, provided
for  purposes  of   this   subdivision   and   the
application of sales  and  use tax to contracts of
lease or rental of tangible personal property, the
leasing or rental  of  any  motion picture film by
the owner or  operator of a motion picture theater
for purposes of  display at such theater shall not
constitute  a sale  within  the  meaning  of  this
subsection;     (k)     the      rendering      of
telecommunications   service,   as    defined   in
subsection   (26)   of   this   section,   for   a
consideration  on  or   after   January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee  for  his   employer,   subject   to  the
provisions related to  telecommunications  service
in  accordance  with   section  12-407a;  (l)  the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a  consideration on  or  after  January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee for his  employer;  (m)  the rendering of
transportation service, as  defined  in subsection
(28) of this  section,  for  a consideration on or
after  October 1,  1991,  exclusive  of  any  such
service rendered by  an employee for his employer;
(n) the transfer for consideration of space or the
right to use  any space for the purpose of storage
or mooring of  any  noncommercial vessel. Wherever
in this chapter  reference  is made to the sale of
tangible personal property  or  services, it shall
be construed to  include  sales  described in this
subsection, except as may be specifically provided
to the contrary.
    Sec. 10. Subsection  (3)  of section 12-407 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (3) "Retail sale"  or  "sale  at retail" means
and includes a  sale  for  any  purpose other than
resale  in  the  regular  course  of  business  of
tangible personal property  or  a  transfer  for a
consideration of the  occupancy  of  any  room  or
rooms in a  hotel  or  lodging house OR SPACE IN A
CAMPGROUND  for a  period  of  thirty  consecutive
calendar days or  less,  or  the  rendering of any
service described in  any  of  the subdivisions of
subsection (2) of  this  section.  The delivery in
this state of  tangible  personal  property  by an
owner or former  owner  thereof or by a factor, if
the delivery is to a consumer pursuant to a retail
sale made by a retailer not engaged in business in
this state, is  a retail sale in this state by the
person making the  delivery.  He shall include the
retail selling price  of the property in his gross
receipts.
    Sec. 11. Subsection  (7)  of section 12-407 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (7)  "Purchase"  and  "purchasing"  means  and
includes: (a) Any  transfer,  exchange  or barter,
conditional or otherwise,  in any manner or by any
means whatsoever, of tangible personal property or
of the occupancy  of  any room or rooms in a hotel
or lodging house  OR  SPACE  IN A CAMPGROUND for a
period of thirty consecutive calendar days or less
for a consideration; (b) a transaction whereby the
possession  of property  is  transferred  but  the
seller  retains the  title  as  security  for  the
payment  of  the  price;  (c)  a  transfer  for  a
consideration of tangible  personal property which
has been produced,  fabricated  or  printed to the
special  order  of   the   customer,   or  of  any
publication; (d) when performed outside this state
or when the  customer  gives  a resale certificate
pursuant  to  section   12-410,   the   producing,
fabricating, processing, printing or imprinting of
tangible personal property for a consideration for
consumers   who   furnish   either   directly   or
indirectly the materials  used  in  the producing,
fabricating, processing, printing  or  imprinting;
(e)  the acceptance  or  receipt  of  any  service
described in any of the subdivisions of subsection
(2) of this  section; (f) any leasing or rental of
tangible  personal  property.   Wherever  in  this
chapter  reference is  made  to  the  purchase  or
purchasing of tangible personal property, it shall
be construed to  include purchases as described in
this subsection.
    Sec. 12. Subsection  (15) of section 12-407 of
the general statutes,  as  amended by section 2 of
public act 91-132,  is  repealed and the following
is substituted in lieu thereof:
    (15) "Engaged in  business in the state" means
and includes but  shall  not  be  limited  to  the
following acts or methods of transacting business:
(a) Selling in this state, or any activity in this
state in connection  with  selling  in this state,
tangible personal property  for  use,  storage  or
consumption within the  state; (b) engaging in the
transfer for a  consideration  of the occupancy of
any room or  rooms  in a hotel or lodging house OR
SPACE IN A  CAMPGROUND  for  a  period  of  thirty
consecutive calendar days  or  less; (c) rendering
in this state  any service described in any of the
subdivisions of subsection  (2)  of  this section;
(d) maintaining, occupying  or  using, permanently
or temporarily, directly  or indirectly, through a
subsidiary or agent,  by  whatever name called, of
any office, place of distribution, sales or sample
room or place, warehouse or storage point or other
place of business  or  having  any representative,
agent, salesman, canvasser  or solicitor operating
in  this  state   for   the  purpose  of  selling,
delivering or taking  orders;  (e) notwithstanding
the fact that  retail  sales are made from outside
this state to  a destination within this state and
that a place of business is not maintained in this
state,   engaging   in   regular   or   systematic
solicitation  of  sales   of   tangible   personal
property in this  state  (A)  by  the  display  of
advertisements  on  billboards  or  other  outdoor
advertising in this state, (B) by the distribution
of catalogs, periodicals,  advertising  flyers  or
other advertising by  means  of  print,  radio  or
television  media  or  (C)  by  mail,  telegraphy,
telephone,  computer  data   base,  cable,  optic,
microwave or other  communication  system, for the
purpose  of effecting  retail  sales  of  tangible
personal property, provided  one  hundred  or more
retail   sales  from   outside   this   state   to
destinations within this state are made during the
twelve-month  period  ended   on   the   September
thirtieth  immediately preceding  the  monthly  or
quarterly period with  respect  to which liability
for tax under  this  chapter  is  determined;  (f)
being  owned or  controlled,  either  directly  or
indirectly, by a  retailer  engaged in business in
this state which  is the same as or similar to the
line of business in which the retailer so owned or
controlled  is  engaged;   (g)   being   owned  or
controlled, either directly  or indirectly, by the
same  interests  that   own   or  control,  either
directly  or indirectly,  a  retailer  engaged  in
business in this  state  which  is  the same as or
similar to the  line  of  business  in  which  the
retailer so owned  or  controlled  is engaged; (h)
being the assignee  of  a  person  engaged  in the
business of leasing  tangible personal property to
others, where leased  property  of  such person is
situated within this state and such assignee has a
security interest, as  defined  in subsection (37)
of section 42a-1-201, in such property.
    Sec. 13. Subsections  (18) and (19) of section
12-407 of the  general  statutes,  as  amended  by
section 106 of public act 91-3 of the June special
session,  are  repealed   and   the  following  is
substituted in lieu thereof:
    (18) "Operator" means  any  person operating a
hotel or lodging  house  OR  A  CAMPGROUND  in the
state, including, but not limited to, the owner or
proprietor of such  premises,  lessee,  sublessee,
mortgagee in possession,  licensee  or  any  other
person otherwise operating  such  hotel or lodging
house OR A CAMPGROUND.
    (19) "Occupancy" means  the use or possession,
or the right to the use or possession, of any room
or rooms in a hotel or lodging house OR SPACE IN A
CAMPGROUND, or the  right to the use or possession
of   the   furnishings   or   the   services   and
accommodations accompanying the use and possession
of such room  or  rooms  OR SPACE IN A CAMPGROUND,
for  the first  period  of  not  exceeding  thirty
consecutive calendar days.
    Sec. 14. Subsection  (1)  of section 12-408 of
the general statutes, as amended by section 111 of
public act 91-3  of  the  June special session and
section 23 of public act 91-14 of the June special
session,  is  repealed   and   the   following  is
substituted in lieu thereof:
    (1) For the  privilege  of making any sales as
defined in subsection  (2)  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 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  (i)  of  subsection  (2)  of  section
12-407 except, in  lieu  of  said  rate of six per
cent, (A) at  a rate of five and one-half per cent
of the gross  receipts  of  any  retailer from the
sale   of  any   repair   or   replacement   parts
exclusively for use  in  machinery,  as defined in
subsection (34) of  section  12-412, used directly
in  a  manufacturing  or  agricultural  production
process, (B) twelve  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 OR SPACE IN A
CAMPGROUND for the  first  period of not exceeding
thirty consecutive calendar days, (C) at a rate of
two and one-half per cent of the gross receipts of
any retailer from  the  sale of aviation fuel used
exclusively for aviation  purposes,  provided such
retailer's place of  business for the sale of such
fuel is located upon an established airport within
this state; (D) at a rate of four and one-half per
cent of the  gross  receipts  of any retailer from
the sale of any motor vehicle to any person who is
a member of  the armed forces of the United States
and is on full-time active duty in Connecticut but
whose permanent residence is in another state, and
(E) on and  after September 19, 1991, with respect
to the sales of vessels to any resident of another
state, at a  rate  which is the lesser of: (i) Six
per cent of  the  gross  receipts  of any retailer
from such sales  or  (ii)  the  percentage of such
gross receipts that  is  payable as a sales tax by
retailers engaged in  business  in the purchaser's
state  of  residence,   provided  such  vessel  is
registered in the  purchaser's  state of residence
within ten days  of  the  date  of  sale  and such
retailer   requires   and    maintains   evidence,
satisfactory to the  commissioner,  concerning the
purchaser's   state   of    residence    and   the
registration of such  vessel  in  such  state. 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  subdivision  (i)  of
subsection  (2) 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. 15. (NEW) (a) The commissioner of revenue
services shall segregate  (1) one and one-half per
cent of the gross receipts from the tax from sales
within  the  meaning   of   subdivision   (h)   of
subsection (2) of  section  12-407  of the general
statutes, as amended  by section 9 of this act, by
any hotel or  lodging  house or campground located
in any municipality  having  a  population of less
than sixty-five thousand,  (2)  three and one-half
per cent of  the  gross  receipts from such tax in
any municipality having a population of sixty-five
thousand  or  more   but  less  than  seventy-five
thousand, and (3)  four  and  one-half per cent of
the  gross  receipts   from   such   tax   in  any
municipality having a  population  of seventy-five
thousand or more,  provided the commissioner shall
segregate three and one-half per cent of the gross
receipts from such  tax in the municipality having
the most popular  tourist attraction in the state,
as determined by  the  office  of tourism, if such
municipality  has  a   population   of  less  than
sixty-five thousand. Such  segregated  funds shall
be  allocated  to  tourism  districts  established
under  section 3  of  this  act  as  follows:  The
portion of the  funds  attributable  to  such  tax
receipts in a  municipality  shall be allocated to
the tourism district  in which the municipality is
located, provided, (A) one hundred per cent of the
amount  attributable to  such  tax  receipts  from
sales  in  Hartford  shall  be  allocated  to  the
Connecticut  Convention  Center   Authority,   (B)
seventy-five per cent  of  the amount attributable
to such tax receipts from sales in New Haven shall
be allocated to  the New Haven Coliseum Authority,
(C)   seventy-five  per   cent   of   the   amount
attributable to such  tax  receipts  from sales in
Stamford  shall  be   allocated  to  the  Stamford
Coliseum Authority to  fund its obligations to the
Stamford Center for the Arts, (D) seventy-five per
cent  of  the  amount  attributable  to  such  tax
receipts from sales  in Norwalk shall be allocated
to  the  Maritime   Center   Authority   and   (E)
seventy-five per cent  of  the amount attributable
to such tax  receipts  from  sales  in  Bridgeport
shall  be  allocated   to  the  Greater  Fairfield
district established in section 3 of this act, for
the sole purpose  of marketing tourist attractions
located in Bridgeport.  If  for  any  state fiscal
year   the  amount   of   the   allocation   under
subparagraph (E) is  less than the amount of funds
allocated during the  fiscal  year ending June 30,
1991, to the  then  existing Bridgeport convention
and visitors bureau,  pursuant  to sections 7-136b
and 7-136c of  the  general  statutes,  revised to
January 1, 1991,  the  Connecticut tourism council
shall provide a grant under section 1 of this act,
from the tourism  fund,  in  the  amount  of  such
difference, to said Greater Fairfield district for
the purpose set  forth  in  subparagraph  (E). Not
later  than  October   1,   1994,   and   annually
thereafter,  each  tourism   district   and   each
authority receiving funds under this section shall
submit to the  Connecticut  tourism council a full
audit of the books and accounts of the district or
authority for the preceding fiscal year. Each such
audit  shall  be   conducted   by  an  independent
certified public accountant.  The  commissioner of
revenue  services  may   adopt   regulations,   in
accordance with the  provisions  of  chapter 54 of
the   general  statutes,   concerning   accounting
procedures necessary to  carry out the purposes of
this section.
    (b)  Except as  provided  by  law,  a  tourism
district, convention center  authority or coliseum
authority, as the case may be, may borrow money to
pay  its  obligations   that  cannot  be  paid  at
maturity  out  of   current   revenue   from  such
allocations, but shall  not  borrow  a sum greater
than  can  be   repaid   out  of  the  allocations
anticipated during the  year in which the money is
borrowed. The tourism  district, convention center
authority or coliseum  authority,  as the case may
be,  may  pledge  its  securities  to  secure  the
repayment of any sum so borrowed.
    Sec. 16. (NEW) Any funds received by the state
as payment for  tourism  advertising  or products,
sold by the  commissioner of economic development,
shall be deposited in the tourism fund established
in section 4 of this act.
    Sec.  17.  Section   32-193   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    [(a) Notwithstanding any  provision of section
7-136b or 7-136c,  or  both,  to the contrary, the
authority shall be  entitled  to  receive directly
from the commissioner  of  revenue services of the
state the tax  revenues referenced in said section
7-136b which are  collected  by  the  state on and
after July 1,  1989, and which would, but for this
subsection, be paid  to  the municipality in which
the  project  is   to   be   situated.]   (a)  The
commissioner of revenue  services  shall segregate
and pay over  to the authority the tax revenues to
which the authority  is entitled [hereunder] UNDER
SECTION  15  OF  THIS  ACT  as  regularly  as  the
collection mechanism for  such  tax revenues shall
permit. The commissioner of revenue services shall
modify any regulations  adopted under said section
[7-136b] to provide for the direct payment of such
tax revenues to  the authority. To the extent that
the provisions of this subsection are inconsistent
with the provisions  of  said  section, [7-136b or
7-136c,  or  both,]   the   provisions   of   this
subsection shall be controlling.
    [(b)]  The  authority   shall   apply   moneys
received pursuant to  the [provision of subsection
(a) of this  section]  PROVISIONS OF SECTION 15 OF
THIS ACT and  project  revenues for the payment of
its costs and expenses, including, but not limited
to, administration, operation, maintenance, repair
and marketing of  the project, the payment of debt
service or other costs incurred in connection with
the issuance of bonds, notes and other obligations
of the authority and as may otherwise be necessary
or  appropriate  to  implement  the  purposes  and
powers of the authority.
    Sec. 18. Sections 7-136a to 7-136c, inclusive,
of the general statutes are repealed.
    Sec. 19. This  act  shall  take effect July 1,
1992, except sections  3  and  9 to 18, inclusive,
shall take effect  July 1, 1993, provided sections
5 to 8,  inclusive, shall be applicable to rentals
or leases of  motor  vehicles  entered  into on or
after July 1, 1992.