Substitute House Bill No. 6605
Substitute House Bill No. 6605
PUBLIC ACT NO. 93-332
AN ACT PROMOTING SIMPLICITY IN THE DETERMINATION
OF THE MEASURE OF SALES AND USE TAXES, AND
CONCERNING CERTAIN PROVISIONS OF STATE TAXES AND
THE OPERATION OF THE OFF-TRACK BETTING AND
PARI-MUTUEL FACILITIES.
Section 1. Subsections (8) and (9) of section
12-407 of the general statutes are repealed and
the following is substituted in lieu thereof:
(8) "Sales price" means the total amount for
which tangible personal property is sold, the
total amount of rent received for occupancy or the
total amount received for any service rendered on
or after July 1, 1975, or the total amount of
payment or periodic payments received for leasing
or rental of tangible personal property for the
term of any such lease or rental occurring on or
after July 1, 1975, valued in money, whether paid
in money or otherwise, without any deduction on
account of any of the following: (a) The cost of
the property sold; (b) the cost of materials used,
labor or service cost, interest charged, losses or
any other expenses; [(c) the cost of
transportation of the property prior to its
purchase] (c) FOR ANY SALE OCCURRING ON OR AFTER
JULY 1, 1993, ANY CHARGES BY THE SELLER 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 SELLER OR A THIRD PARTY. THE PROVISIONS OF
SUBDIVISION (c) OF THIS SUBSECTION SHALL NOT APPLY
TO ANY ITEM EXEMPT FROM TAXATION PURSUANT TO
SECTION 12-412. Such total amounts include all of
the following: (a) Any services that are a part of
the sale; (b) any amount for which credit is given
to the purchaser by the seller; (c) 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 (i) of subsection (2) of
this section. "Sales price" does not include any
of the following: (a) Cash discounts allowed and
taken on sales; (b) any portion of the amount
charged for property returned by customers, 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; (c) 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 consumer; [(d) transportation
charges separately stated, if the transportation
occurs after the purchase of the property is made;
(e)] (d) 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 (i) of
subsection (2) of this section; [(f)] (e) 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 subdivision (i) of subsection (2) of this
section, provided (A) the employees perform such
services solely for the service recipient at its
property or business premises and (B) "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.
(9) "Gross receipts" means the total amount
of the sales price, of the retail sales of
retailers, or the total amount of the rent
received for occupancy or the total amount
received for any service rendered on or after July
1, 1975, or the total amount of payment or
periodic payments received for leasing or rental
of tangible personal property for the term of any
such lease or rental occurring on or after July 1,
1975, valued in money, whether received in money
or otherwise, without any deduction on account of
any of the following: (a) 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 his 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 his vendor
with respect to the sale of the property; (b) the
cost of the materials used, labor or service cost,
interest paid, losses or any other expense; [(c)
the cost of transportation of the property prior
to its sale to the purchaser] (c) FOR ANY SALE
OCCURRING ON OR AFTER JULY 1, 1993, ANY CHARGES BY
THE SELLER 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 SELLER OR A THIRD PARTY. THE PROVISIONS OF
SUBDIVISION (c) OF THIS SUBSECTION SHALL NOT APPLY
TO ANY ITEM EXEMPT FROM TAXATION PURSUANT TO
SECTION 12-412. The total amount of the sales
price includes all of the following: (a) Any
services that are a part of the sale; (b) all
receipts, cash, credits and property of any kind;
(c) any amount for which credit is allowed by the
seller to the purchaser; (d) 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 (i) of subsection (2) of this
section. "Gross receipts" do not include any of
the following: (a) Cash discounts allowed and
taken on sales; (b) any portion of the sales price
of property returned by customers, 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;
(c) 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 consumer; [(d) transportation charges
separately stated, if the transportation occurs
after the sale of the property is made to the
purchaser; (e)] (d) 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 (i) of subsection (2) of this section;
[(f)] (e) 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 subdivision (i)
of subsection (2) of this section, provided (A)
the employees perform such services solely for the
service recipient at its property or business
premises and (B) "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.
Sec. 2. Subsection (1) of section 12-411 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(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
subdivisions (i) to (l), inclusive, of subsection
(2) of section 12-407, 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 per cent of the
sales price of the property or the consideration
paid for any such services, except, in lieu of
said rate of six per cent, (A) at a rate of five
and one-half per cent of the sales price 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) at a rate
of four and one-half per cent of the sales price
of any motor vehicle sold 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, (C)
at a rate of twelve 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, and
(D) with respect to the storage, acceptance,
consumption or use in this state of vessels
purchased from any retailer for storage,
acceptance, consumption or any other use in this
state by any resident of another state, at a rate
which is the lesser of: (i) Six per cent of the
sales price thereof or (ii) the percentage of such
sales price that is payable as a use tax by
purchasers making purchases in the purchaser's
state of residence, provided the retailer requires
and maintains an affidavit or other evidence,
satisfactory to the commissioner, concerning the
purchaser's state of residence.
Sec. 3. Section 12-412c of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) On [and] OR after July 1, 1986, the sale
of a new mobile manufactured home, AND ON OR AFTER
JULY 1, 1993, THE SALE OF A NEW MODULAR OR
PREFABRICATED HOME, from a manufacturer shall be
subject to sales [tax] AND USE TAXES under this
chapter, except that for purposes of said [tax]
TAXES the sales price of such new mobile
manufactured home OR NEW MODULAR OR PREFABRICATED
HOME shall be deemed to be seventy per cent of the
manufacturer's sales price applicable with respect
to such sale. For the purpose of this subsection,
"mobile manufactured home" means a home at least
twelve feet in width, which cannot proceed under
its own power, which is towed or placed on flatbed
trucks to be taken to its destination and which
requires a limited duration oversize load permit
in order to be transported on the highways of this
state, AND A "NEW MODULAR OR PREFABRICATED HOME"
MEANS A MODULAR OR PREFABRICATED HOME, AS DEFINED
IN SECTION 21-85 WHICH HAS NOT BEEN PREVIOUSLY
SOLD OR OCCUPIED AS A DWELLING UNIT.
(b) On [and] OR after July 1, 1986, the
resale of any mobile manufactured home located in
a mobile manufactured home park licensed pursuant
to chapter 412 or located on a single-family lot
as a permitted nonconforming use or as otherwise
permitted by the zoning regulations of the
municipality in which the home is located, AND ON
OR AFTER JULY 1, 1993, THE RESALE OF ANY MODULAR
HOME, shall be exempt from the sales [tax] AND USE
TAXES imposed by this chapter and shall be taxed
as a conveyance of realty in accordance with the
provisions of chapter 223.
Sec. 4. Subsection (2) of section 12-408 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(2) Reimbursement for the tax hereby imposed
shall be collected by the retailer from the
consumer and such tax reimbursement, termed "tax"
in this and the following subsections, shall be
paid by the consumer to the retailer and each
retailer shall collect from the consumer the full
amount of the tax imposed by this chapter or an
amount equal as nearly as possible or practicable
to the average equivalent thereof. Such tax shall
be a debt from the consumer to the retailer, when
so added to the original sales price, and shall be
recoverable at law in the same manner as other
debts except as provided in section 12-432a. THE
AMOUNT OF TAX REIMBURSEMENT, WHEN SO COLLECTED,
SHALL BE DEEMED TO BE A SPECIAL FUND IN TRUST FOR
THE STATE OF CONNECTICUT. Whenever such tax,
payable by the consumer (A) with respect to a
charge account or credit sale occurring on or
after July 1, 1984, 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 or (B) to a retailer 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 the cash basis method of accounting with
respect to a sale occurring on or after July 1,
1989, is remitted by the retailer to the
commissioner and such sale as an account
receivable is determined to be worthless, the
amount of such tax remitted may be credited
against the tax due on the sales tax 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 tax is remitted. The commissioner shall, by
regulations adopted in accordance with chapter 54,
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 sales tax
return covering the period in which such
collection occurs. The tax applicable in any such
case shall be determined in accordance with the
rate of sales tax in effect at the time of the
original sale.
Sec. 5. Subsection (4) of section 12-411 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(4) The tax required to be collected by the
retailer constitutes a debt owed [by] TO the
retailer [to this state] BY THE PERSON PURCHASING
TANGIBLE PERSONAL PROPERTY OR SERVICES FROM SUCH
RETAILER. THE AMOUNT OF TAX, WHEN SO COLLECTED,
SHALL BE DEEMED TO BE A SPECIAL FUND IN TRUST FOR
THE STATE OF CONNECTICUT.
Sec. 6. Subdivision (2) of subsection (c) of
section 12-700 of the general statutes, as amended
by section 63 of public act 93-74, is repealed and
the following is substituted in lieu thereof:
(2) For purposes of subdivision (1) of THIS
SUBSECTION AND subsection (a), the [denominator of
the fraction by which the tax computed as if such
part-year resident were a resident is multiplied
if, in the case] CONNECTICUT ADJUSTED GROSS INCOME
of a part-year resident (A) changing his status
from resident to nonresident [, such part-year
resident's Connecticut adjusted gross income, as
defined in section 12-701,] SHALL BE increased or
decreased, as the case may be, by the items
accrued under subdivision (1) of subsection (c) of
section 12-717, to the extent not otherwise
includible in Connecticut adjusted gross income
for the taxable year and (B) changing his status
from nonresident to resident [, such part-year
resident's Connecticut adjusted gross income, as
defined in section 12-701,] SHALL BE increased or
decreased, as the case may be, by the items
accrued under subdivision (2) of subsection (c) of
section 12-717, to the extent included in
Connecticut adjusted gross income for the taxable
year.
Sec. 7. Subsection (19) of section 12-407 of
the general statutes, as amended by section 13 of
public act 92-184 and section 21 of public act
93-74, is repealed and the following is
substituted in lieu thereof:
(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 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. 8. Subsection (c) of section 12-265 of
the general statutes, as amended by sections 11
and 65 of public act 93-74, is repealed and the
following is substituted in lieu thereof:
(c) The rate of tax on the sale, furnishing
or distribution of electricity OR NATURAL GAS for
use directly by a company engaged in a
manufacturing production process, in accordance
with the standard Industrial Classification
Manual, United States Office of Management and
Budget, 1987 edition, classifications [3000] 2000
to 3999, inclusive, shall be four per cent with
respect to calendar quarters commencing on or
after January 1, 1994, and prior to January 1,
1995, three per cent with respect to calendar
quarters commencing on or after January 1, 1995,
and prior to January 1, 1996, and two per cent
with respect to calendar quarters commencing on or
after January 1, 1996, and prior to January 1,
1997. The sale, furnishing or distribution of
electricity OR NATURAL GAS for use by a company as
provided in this subsection shall not be subject
to the provisions of this chapter with respect to
calendar quarters commencing on or after January
1, 1997. Not later than thirty days after the
effective date of this section, and thirty days
after the effective date of each rate decrease
provided for in this section each electric AND GAS
public service company, as defined in section
16-1, which does not have a proposed rate
amendment under section 16-19 pending before the
department of public utility control at such time,
shall request the department to reopen the
proceeding under section 16-19 on the company's
most recent rate amendment, solely for the purpose
of decreasing the company's rates to reflect the
decreases required under this section. The
department shall immediately reopen such
proceedings, solely for such purpose.
Sec. 9. Subsection (a) of section 12-217 of
the general statutes, as amended by section 6 of
public act 93-74, is repealed and the following is
substituted in lieu thereof:
(a) In arriving at net income as defined in
section 12-213, whether or not the taxpayer is
taxable under the federal corporation net income
tax, there shall be deducted from gross income,
(A) all items deductible under the federal
corporation net income tax law effective and in
force on the last day of the income year except
(1) any taxes imposed under the provisions of this
chapter which are paid or accrued in the income
year and in the income year commencing January 1,
1989, and thereafter, any taxes in any state of
the United States or any political subdivision of
such state, or the District of Columbia, imposed
on or measured by the income or profits of a
corporation which are paid or accrued in the
income year, and (2) deductions for depreciation,
which shall be allowed as provided in subsection
(b) of this section, and (B) additionally, in the
case of a regulated investment company, the sum of
(1) the exempt-interest dividends, as defined in
the federal corporation net income tax law, and
(2) expenses, bond premium, and interest related
to tax-exempt income that are disallowed as
deductions under the federal corporation net
income tax law, and (C) in the case of a taxpayer
maintaining an international banking facility as
defined in the laws of the United States or the
regulations of the Board of Governors of the
Federal Reserve System, as either may be amended
from time to time, the gross income attributable
to the international banking facility, provided,
no expense or loss attributable to the
international banking facility shall be a
deduction under any provision of this section, and
(D) additionally, in the case of all taxpayers,
all dividends as defined in the federal income tax
law effective and in force on the last day of the
income year not otherwise deducted from gross
income including dividends received from a DISC or
former 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
dividends deemed to have been distributed by a
DISC or former DISC as provided in Section 995 of
said Internal Revenue Code, other than thirty per
cent of dividends received from a domestic
corporation in which the taxpayer owns less than
twenty per cent of the total voting power and
value of the stock of such corporation; except no
deduction shall be allowed for (1) expenses
related to dividends which are allowable as a
deduction or credit under the federal corporation
net income tax law and (2) federal taxes on income
or profits, losses of other calendar or fiscal
years, retroactive to include all calendar or
fiscal years beginning after January 1, 1935,
interest received from federal, state and local
government securities, if any such deductions are
allowed by the federal government. Notwithstanding
anything in this section to the contrary, (1) any
excess of the deductions provided in this section
for any income year commencing on or after January
1, 1973, over the gross income for such year or
the amount of such excess apportioned to this
state under the provisions of section 12-218,
shall be an operating loss of such income year and
shall be deductible as an operating loss
carry-over in each of the five income years
following such loss year, provided the portion of
such operating loss which may be deducted as an
operating loss carry-over in any income year
following such loss year shall be limited to the
lesser of (i) any net income greater than zero of
such income year following such loss year, or in
the case of a company entitled to apportion its
net income under the provisions of section 12-218,
the amount of such net income which is apportioned
to this state pursuant thereto, or (ii) the
excess, if any, of such operating loss over the
total of such net income for each of any prior
income years following such loss year, such net
income of each of such prior income years
following such loss year for such purposes being
computed without regard to any operating loss
carry-over from such loss year allowed by this
sentence and being regarded as not less than zero,
and provided, further, the operating loss of any
income year shall be deducted in any subsequent
year, to the extent available therefor, before the
operating loss of any subsequent income year is
deducted, and (2) any net capital loss, as defined
in the federal corporation net income tax law
effective and in force on the last day of the
income year, for any income year commencing on or
after January 1, 1973, shall be allowed as a
capital loss carry-over to reduce, but not below
zero, any net capital gain, as so defined, in each
of the five following income years, in order of
sequence, to the extent not exhausted by the net
capital gain of any of the preceding of such five
following income years, and (3) any net capital
losses allowed and carried forward from prior
years to income years beginning on or after
January 1, 1973, for federal income tax purposes
by companies entitled to a deduction for dividends
paid under the federal corporation net income tax
law other than companies subject to the gross
earnings taxes imposed under chapters 211 and 212,
shall be allowed as a capital loss carry-over.
This section shall not apply to a life insurance
company as defined in the federal income tax law
effective and in force on the last day of the
income year. For purposes of this section, the
unpaid loss reserve adjustment required for
nonlife insurance companies under THE PROVISIONS
OF Section 832(b)(5)(B) of the Internal Revenue
Code of 1986, or any subsequent corresponding
internal revenue code of the United states, as
from time to time amended, shall [not be deducted
from gross income] BE APPLIED WITHOUT MAKING THE
ADJUSTMENT IN SUBPARAGRAPH (B) OF SAID SECTION
832(b)(5).
Sec. 10. Section 12-541 of the general
statutes is repealed and the following is
substituted in lieu thereof:
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 less than two
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, all of the proceeds from which 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 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 any event
at the Hartford Civic Center, [or] the New Haven
Coliseum OR FACILITIES OWNED OR MANAGED BY THE
TENNIS FOUNDATION OF CONNECTICUT OR ANY SUCCESSOR
ORGANIZATION, (6) paid by centers of service for
elderly persons, as described in subdivision (d)
of section 17a-310 or (7) to any production
featuring live performances by actors or musicians
presented at 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. The tax shall be imposed upon the
person making such charge and reimbursement for
the tax shall be collected by such person from the
purchaser. Such reimbursement, termed "tax", shall
be paid by the purchaser to the person making the
admission charge. Such tax, when added to the
admission charge, shall be a debt from the
purchaser to the person making the admission
charge and shall be recoverable at law.
Sec. 11. Section 12-541 of the general
statutes, as amended by section 36 of public act
93-74 and section 10 of this act, is repealed and
the following is substituted in lieu thereof:
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 less than two
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, all of the proceeds from which 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 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 any event
at the Hartford Civic Center, the New Haven
Coliseum, New Britain Beehive Stadium, NEW BRITAIN
VETERANS MEMORIAL STADIUM, facilities owned or
managed by the Tennis Foundation of Connecticut or
any successor organization or the William A.
O'Neill Convocation Center, (6) paid by centers of
service for elderly persons, as described in
subdivision (d) of section 17a-310 or (7) to any
production featuring live performances by actors
or musicians presented at 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. The tax shall be imposed upon the
person making such charge and reimbursement for
the tax shall be collected by such person from the
purchaser. Such reimbursement, termed "tax", shall
be paid by the purchaser to the person making the
admission charge. Such tax, when added to the
admission charge, shall be a debt from the
purchaser to the person making the admission
charge and shall be recoverable at law.
Sec. 12. Subsection (c) of section 12-217 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(c) Notwithstanding the provisions of
subsections (a) and (b) of this section, "net
income", in the case of an S corporation, means
the nonseparately computed income or loss, as
defined in Section 1366(a)(2) of the Internal
Revenue Code, of such S corporation, WITHOUT
SEPARATE STATE ADJUSTMENT PURSUANT TO SECTION
12-233 OR 12-226a FOR THE COMPENSATION OF ANY
OFFICER OR EMPLOYEE, to which shall be added (1)
any taxes imposed under the provisions of this
chapter which are paid or accrued in the income
year and (2) any taxes in any state of the United
States or any political subdivision of such state,
or the District of Columbia, imposed on or
measured by the income or profits of a corporation
which are paid or accrued in the income year.
Sec. 13. Section 12-685 of the general
statutes is repealed and the following is
substituted in lieu thereof:
For the purposes of this chapter:
(1) "Commissioner" means the commissioner of
revenue services or any employee of the
department.
(2) "Department" means the department of
revenue services.
(3) "Electronic funds transfer" means any
transfer of funds that is initiated through an
electronic terminal, telephonic instrument or
computer or magnetic tape so as to order, instruct
or authorize a financial institution to debit or
credit an account but shall not include any
transfer originated by check, draft or similar
paper instrument.
(4) "PERSON" MEANS ANY INDIVIDUAL,
PARTNERSHIP, COMPANY, SOCIETY, ASSOCIATION,
TRUSTEE, EXECUTOR, ADMINISTRATOR OR OTHER
FIDUCIARY OR CUSTODIAN, PUBLIC OR PRIVATE
CORPORATION, OTHER THAN ANY TOWN, CITY, BOROUGH,
CONSOLIDATED TOWN AND CITY OR CONSOLIDATED TOWN
AND BOROUGH.
[(4)] (5) "Tax" means the tax or taxes
imposed under chapter 207, 208, 209, 210, 211,
212, 219, 220, 221, 225, 227 or 229.
Sec. 14. Subsection (8) of section 12-412 of
the general statutes, as amended by section 28 of
public act 93-74, is repealed and the following is
substituted in lieu thereof:
(8) Sales of tangible personal property or
services to charitable and religious
organizations. [and nonprofit organizations which
receive at least seventy-five per cent of their
funds from the state or a municipality] FOR THE
PURPOSES OF DETERMINING EXEMPTION UNDER THE
PROVISIONS OF THIS SUBSECTION STATE OR MUNICIPAL
FUNDS RECEIVED BY AN ORGANIZATION DEFINED IN
SECTION 501(c)(3) OF THE INTERNAL REVENUE CODE OF
1986 OR ANY SUBSEQUENT CORRESPONDING INTERNAL
REVENUE CODE OF THE UNITED STATES, AS FROM TIME TO
TIME AMENDED, SHALL BE CONSIDERED PRIVATE
DONATIONS.
Sec. 15. Subsections (a), (b) and (c) of
section 54 of public act 93-74 are repealed and
the following is substituted in lieu thereof:
(a) Every resident individual, as defined in
section 12-701 of the general statutes, subject to
the federal alternative minimum tax under Section
55 of the Internal Revenue Code shall pay, in
addition to the tax imposed under section 12-700
of the general statutes, the net Connecticut
minimum tax. [at a rate of twenty-three per cent
of the adjusted federal tentative minimum tax.]
The provisions of this subsection shall apply to
resident trusts and estates, as defined in said
section 12-701, and, wherever reference is made in
this section to resident individuals, such
reference shall be construed to include resident
trusts and estates, provided any reference 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.
(b) Every nonresident individual, as defined
in section 12-701 of the general statutes, subject
to the federal alternative minimum tax under
Section 55 of the Internal Revenue Code shall pay,
in addition to the tax imposed under section
12-700 of the general statutes, the net
Connecticut minimum tax, as calculated herein. The
tax shall be a product of an amount equal to the
tax computed as if such nonresident individual
were a resident individual and then multiplied by
a fraction, the numerator of which is the
nonresident's adjusted federal tentative minimum
tax derived from or connected with sources within
this state, as such phrase is defined in sections
12-711 and 12-713 of the general statutes, and the
denominator of which is the nonresident's adjusted
federal tentative minimum tax. The provisions of
this subsection shall apply to nonresident trusts
and estates, as defined in said section 12-701,
and, wherever reference is made in this section to
nonresident individuals, such reference shall be
construed to include nonresident trusts and
estates, provided any reference to a nonresident's
Connecticut adjusted gross income shall be
construed, in the case of a nonresident trust or
estate, to mean the nonresident trust or estate's
Connecticut taxable income.
(c) Every part-year resident individual, as
defined in section 12-701 of the general statutes,
subject to the federal alternative minimum tax
under Section 55 of the Internal Revenue Code
shall pay, in addition to the tax imposed under
section 12-700 of the general statutes, the net
Connecticut minimum tax, [at a rate of
twenty-three per cent of the adjusted federal
tentative minimum tax,] as calculated herein. The
tax shall be a product of an amount equal to the
tax computed as if such part-year resident
individual were a resident individual and then
multiplied by a fraction, the numerator of which
is the part-year resident's adjusted federal
tentative minimum tax derived from or connected
with sources within this state, as such phrase is
defined in section 12-717 of the general statutes,
and the denominator of which is the part-year
resident's adjusted federal tentative minimum tax.
For the purposes of such calculation, the
provisions of subsection (c) of said section
12-717 providing for the accrual of items of
income, gain, loss or deduction shall apply to the
calculation of the part-year resident's adjusted
federal tentative minimum tax. The provisions of
this subsection shall apply to part-year resident
trusts, as defined in said section 12-701, and,
wherever reference is made in this section to
part-year resident individuals, such reference
shall be construed to include part-year resident
trusts, provided any reference to a part-year
resident's Connecticut adjusted gross income shall
be construed, in the case of a part-year resident
trust, to mean the part-year resident trust's
Connecticut taxable income.
Sec. 16. Subdivision (3) of subsection (b) of
section 12-722 of the general statutes, as amended
by section 41 of public act 93-74, is repealed and
the following is substituted in lieu thereof:
(3) (A) In the case of any required
instalment, if the taxpayer establishes that the
annualized income instalment is less than the
amount determined under subdivision [(4)] (2) of
this subsection, the amount of such required
instalment shall be the annualized income
instalment, and any reduction in a required
instalment resulting from the application of this
subdivision shall be recaptured by increasing the
amount of the next required instalment by the
amount of such reduction and by increasing
subsequent required instalments to the extent that
the reduction has not previously been recaptured
under this subdivision. (B) In the case of any
required instalment, the annualized income
instalment is the excess, if any, of (i) an amount
equal to the applicable percentage of the tax for
the taxable year computed by placing on an
annualized basis the Connecticut taxable income
for months in the taxable year ending before the
due date for the instalment, over (ii) the
aggregate amount of any prior required instalments
for the taxable year. (C) For purposes of this
subdivision, the applicable percentage for the
first required instalment is twenty-two and
one-half, the applicable percentage for the second
required instalment is forty-five, the applicable
percentage for the third required instalment is
sixty-seven and one-half, and the applicable
percentage for the fourth required instalment is
ninety.
Sec. 17. Subsection (a) of section 7-374b of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) A municipality, as defined in section
7-369, and any regional school district, may
authorize the issuance of bonds, notes or other
obligations in accordance with the provisions of
this chapter for the purpose of funding a
judgment, a compromised or settled claim against
it or an award or sum payable by it pursuant to a
determination by a court, or an officer, body or
agency acting in an administrative or
quasi-judicial capacity, other than an award or
sum arising out of an employment contract, in any
case in which the amount of such judgment, claim,
award or sum exceeds five per cent of the total
annual receipts from taxation, as computed for the
purposes of subsection (b) of section 7-374 or
subsection (b) of section 10-56, as applicable, or
[one million] TWO HUNDRED FIFTY THOUSAND dollars,
whichever is less, provided that the last
principal instalment of such bonds, notes or other
obligations shall mature no later than fifteen
years from the date of original issue of such
bonds, notes or other obligations issued for such
purposes. The temporary borrowing periods provided
by sections 7-378 and 7-378a shall apply to the
computation of the maximum maturity permitted by
this section. This section shall not be applicable
to the issuance of bonds, notes or other
obligations to fund judgments, settlements, awards
or sums payable in connection with construction
projects.
Sec. 18. The department of environmental
protection shall not expend any funds for the
expansion of the public boat ramp at Lattins Cove
on Lake Candlewood in Danbury.
Sec. 19. Section 8-423 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The commissioner of housing may make loans OR
GRANTS to municipalities which shall be used by
such municipalities to make grants to homeowners
for costs incurred in the repair or reconstruction
of faulty residential subsurface sewage disposal
systems which were installed pursuant to improper
municipal approvals. As used in this section,
"costs" includes technical and installation
expenses and stabilization of topsoil but does not
include landscaping. As a condition of any such
grant, the homeowner shall assign to the
municipality any claims the homeowner may have
against any party for the improper installation of
the subsurface sewage disposal system. The
commissioner may adopt regulations, in accordance
with chapter 54, to carry out the provisions of
this section.
Sec. 20. Subsection (5) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(5) Sales of tangible personal property or
services to and by nonprofit charitable hospitals
in this state, NONPROFIT NURSING HOMES, NONPROFIT
REST HOMES AND NONPROFIT HOMES FOR THE AGED
LICENSED BY THE STATE PURSUANT TO CHAPTER 368v for
the exclusive purposes of such institutions.
Sec. 21. Section 46 of public act 93-74 is
repealed and the following is substituted in lieu
thereof:
There shall be paid to the commissioner of
revenue services by any generator of regulated
waste, other than a municipality, shipping to
storage, treatment or disposal facilities in this
state an assessment of five cents per gallon of
liquid regulated waste, one-half of one cent per
pound in the case of solid regulated waste entered
on a manifest in pounds and ten dollars per cubic
yard of solid regulated waste entered on a
manifest in cubic yards. As used in this section,
"regulated waste" means waste for which a facility
permit is required under section 22a-454 of the
general statutes for persons engaged in the
business of storing, treating, disposing or
transporting such waste and shall include, but not
be limited to, waste PCB's, nonhazardous waste
oil, wastewater soluble oil, waste chemical
liquids and waste chemical solids. The assessment
required under this section shall not apply to any
waste subject to the assessment provided for under
section 22a-132 of the general statutes, as
amended by section 45 of this act, or any waste
that is recycled. The provisions of subsections
(b), (c) and (f) of said section 22a-132 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
subsections had been incorporated in full into
this section and had expressly referred to the
assessment imposed under this section, except to
the extent that any such provision is inconsistent
with a provision of this section and except that
the term "assessment" shall be read as "regulated
waste assessment". As used in this section
"recycled" means waste that is processed to
recover a usable product, or is regenerated or
reused. Burning for heat value shall not be
considered recycling, PROVIDED FOR THE PURPOSES OF
THIS SECTION THE BURNING OF NONHAZARDOUS WASTE OIL
FOR ENERGY RECOVERY SHALL BE DEEMED RECYCLED. Any
moneys received by the state pursuant to this
section shall be deposited into the general fund.
Sec. 22. The city of Shelton may,
notwithstanding the provisions of section 7-253 of
the general statutes or any bond resolution which
requires the last instalment of any assessment on
any bonds or notes issued by the city in 1991 to
finance the construction of a sewer system, be
paid not later than one year prior to the date of
the last maturity of such bonds, extend the due
date of last instalment of such assessment to a
date not more than fifteen years from the date of
the issuance of any bonds or notes by the city of
Shelton to finance the construction of a sewage
system. The city of Shelton may amend any sewer
assessments, applicable to any such bonds or notes
issued in 1991, to conform such assessments with
the provisions of this section.
Sec. 23. Subsection (74) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(74) Sales of computer and data processing
services rendered TO A CUSTOMER (A) by a retailer
which, on or after July 1, 1991, acquired the
operations of a data processing facility from the
customer, [receiving such services,] provided such
customer operated the facility for its own use OR
(B) BY A RETAILER WHICH, ON OR AFTER JULY 1, 1993,
ACQUIRED THE OPERATIONS OF THE DATA PROCESSING
FACILITY FROM THE RETAILER DESCRIBED IN
SUBDIVISION (A) OF THIS SUBSECTION, PROVIDED SUCH
CUSTOMER FORMERLY OPERATED THE FACILITY FOR ITS
OWN USE.
Sec. 24. Section 12-35b of the general
statutes, as amended by section 2 of public act
93-74, is repealed and the following is
substituted in lieu thereof:
For the purposes of sections 12-204, 12-212,
12-330i, 12-235, as amended by section 9 of [this
act] PUBLIC ACT 93-74, 12-268h, 12-309, 12-405d,
12-420, 12-441, 12-475, 12-488, 12-512, 12-555a,
12-594, 12-638j, 51-81b, 12-366, 12-734 and
sections 46 and 47 of [this act] PUBLIC ACT 93-74:
(a) "Bona fide purchaser" means a person who
takes a conveyance of real estate in good faith
from the holder of legal title, and pays valuable
consideration, without actual, implied, or
constructive notice of any tax delinquency.
(b) "Qualified encumbrancer" means a person
who places a burden, charge or lien on real
estate, in good faith, without actual, implied, or
constructive notice of any tax delinquency.
(c) "Commissioner" means the commissioner of
revenue services or his authorized agent.
Sec. 25. Subsection (2) of section 12-407 of
the general statutes, as amended by section 23 of
public act 93-74, 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 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, excluding (i)
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, as amended by sections 27 and 28
of this act, (ii) space in a parking lot owned or
leased under the terms of a lease of not less than
ten years duration and operated by an employer for
the exclusive use of its employees, and (iii)
valet parking provided at any airport, (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) tax preparation 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 or motor vehicles being sold at an
auction to persons who are engaged in the business
of reselling motor vehicles, (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, (X) landscaping and horticulture
services, (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)
miscellaneous personal services included in
industry group 729 in the Standard Industrial
Classification Manual, United States Office of
Management and Budget, 1987 edition, exclusive of
services rendered by massage therapists licensed
pursuant to chapter 384a, [and] (FF) any repair or
maintenance service to any item of tangible
personal property including any contract of
warranty or service related to any such item AND
(GG) BUSINESS ANALYSIS, MANAGEMENT OR MANAGING
CONSULTING SERVICES RENDERED BY A GENERAL PARTNER
TO A LIMITED PARTNERSHIP, PROVIDED (i) THAT THE
GENERAL PARTNER IS COMPENSATED FOR THE RENDITION
OF SUCH SERVICES OTHER THAN THROUGH A DISTRIBUTIVE
SHARE OF PARTNERSHIP PROFITS, AND (ii) THE GENERAL
PARTNER OFFERS SUCH SERVICES TO OTHERS, INCLUDING
ANY OTHER PARTNERSHIP; (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, 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. 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. 26. Subsection (2) of section 12-407 of
the general statutes, as amended by section 24 of
public act 93-74, 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 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, excluding (i)
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, as amended by sections 27 and 28
of this act, (ii) space in a parking lot owned or
leased under the terms of a lease of not less than
ten years duration and operated by an employer for
the exclusive use of its employees, and (iii)
valet parking provided at any airport, (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) tax preparation services, excluding
such services provided for a business,
corporation, partnership and business schedules
related to individual returns, (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 or motor vehicles being sold at as
auction to persons who are engaged in the business
of reselling motor vehicles, (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, (X) landscaping and horticulture
services, (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)
miscellaneous personal services included in
industry group 729 in the Standard Industrial
Classification Manual, United States Office of
Management and Budget, 1987 edition, exclusive of
services rendered by massage therapists licensed
pursuant to chapter 384a, [and] (FF) any repair or
maintenance service to any item of tangible
personal property including any contract of
warranty or service related to any such item AND
(GG) BUSINESS ANALYSIS, MANAGEMENT OR MANAGING
CONSULTING SERVICES RENDERED BY A GENERAL PARTNER
TO A LIMITED PARTNERSHIP, PROVIDED (i) THAT THE
GENERAL PARTNER IS COMPENSATED FOR THE RENDITION
OF SUCH SERVICES OTHER THAN THROUGH A DISTRIBUTIVE
SHARE OF PARTNERSHIP PROFITS, AND (ii) THE GENERAL
PARTNER OFFERS SUCH SERVICES TO OTHERS, INCLUDING
ANY OTHER PARTNERSHIP; (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, 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. 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. 27. Subdivision (4) of subsection (a) of
section 12-701 of the general statutes is repealed
and the following is substituted in lieu thereof:
(4) "Resident trust or estate" means (A) the
estate of a decedent who at the time of his death
was a resident of this state, (B) the estate of a
person who, at the time of commencement of a case
under Title 11 of the United States Code, was a
resident of this state, (C) a trust, or a portion
of a trust, consisting of property transferred by
will of a decedent who at the time of his death
was a resident of this state, and (D) a trust, or
a portion of a trust, consisting of the property
of (i) a person who was a resident of this state
at the time the property was transferred to the
trust if the trust was then irrevocable, (ii) a
person who, if the trust was revocable at the time
the property was transferred to the trust, and has
not subsequently become irrevocable, was a
resident of this state at the time the property
was transferred to the trust or (iii) a person
who, if the trust was revocable when the property
was transferred to the trust but the trust has
subsequently become irrevocable, was a resident of
this state at the time the trust became
irrevocable. For purposes of this chapter, if any
trust or portion of a trust, other than a trust
created by the will of a decedent, has [both
resident and] ONE OR MORE nonresident
noncontingent beneficiaries, the Connecticut
taxable income of the trust, as defined in
subdivision (9) of this subsection, shall be
modified as follows: The Connecticut taxable
income of the trust shall be the sum of all such
income derived from or connected with sources
within this state and that portion of such income
derived from or connected with all other sources
which is derived by applying to all such income
derived from or connected with all other sources a
fraction the numerator of which is the number of
resident noncontingent beneficiaries and the
denominator of which is the total number of
noncontingent beneficiaries. As used in this
subdivision, "noncontingent beneficiary" means a
beneficiary whose interest is not subject to a
condition precedent.
Sec. 28. Subdivisions (8) and (9) of section
12-407 of the general statutes, as amended by
public act 92-184, are repealed and the following
is substituted in lieu thereof:
(8) "Sales price" means the total amount for
which tangible personal property is sold, the
total amount of rent received for occupancy or the
total amount received for any service rendered on
or after July 1, 1975, or the total amount of
payment or periodic payments received for leasing
or rental of tangible personal property for the
term of any such lease or rental occurring on or
after July 1, 1975, valued in money, whether paid
in money or otherwise, without any deduction on
account of any of the following: (a) The cost of
the property sold; (b) the cost of materials used,
labor or service cost, interest charged, losses or
any other expenses; (c) the cost of transportation
of the property prior to its purchase. Such total
amounts include all of the following: (a) Any
services that are a part of the sale; (b) any
amount for which credit is given to the purchaser
by the seller; (c) 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 (i) of subsection (2) of this
section. "Sales price" does not include any of the
following: (a) Cash discounts allowed and taken on
sales; (b) any portion of the amount charged for
property returned by customers, 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; (c) 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 consumer; (d) transportation charges
separately stated, if the transportation occurs
after the purchase of the property is made; (e)
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 (i) of
subsection (2) of this section; (f) 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
subdivision (i) of subsection (2) of this section,
provided (A) the employees perform such services
solely for the service recipient at its property
or business premises and (B) "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; AND (g) THE AMOUNT CHARGED FOR
SEPARATELY STATED COMPENSATION, FRINGE BENEFITS,
WORKERS' COMPENSATION AND PAYROLL TAXES OR
ASSESSMENTS PAID TO OR ON BEHALF OF AN EMPLOYEE,
AS DEFINED AS A LEASED EMPLOYEE PURSUANT TO
SECTION 414(n) OF THE INTERNAL REVENUE CODE OF
1986, OR ANY SUBSEQUENT CORRESPONDING INTERNAL
REVENUE CODE OF THE UNITED STATES, PROVIDED A
LEASED EMPLOYEE SHALL NOT INCLUDE AN EMPLOYEE WHO
IS HIRED BY A TEMPORARY HELP SERVICE AND ASSIGNED
TO SUPPORT OR SUPPLEMENT THE WORKFORCE OF A
TEMPORARY HELP SERVICE'S CLIENT.
(9) "Gross receipts" means the total amount
of the sales price, of the retail sales of
retailers, or the total amount of the rent
received for occupancy or the total amount
received for any service rendered on or after July
1, 1975, or the total amount of payment or
periodic payments received for leasing or rental
of tangible personal property for the term of any
such lease or rental occurring on or after July 1,
1975, valued in money, whether received in money
or otherwise, without any deduction on account of
any of the following: (a) 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 his 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 his vendor
with respect to the sale of the property; (b) the
cost of the materials used, labor or service cost,
interest paid, losses or any other expense; (c)
the cost of transportation of the property prior
to its sale to the purchaser. The total amount of
the sales price includes all of the following: (a)
Any services that are a part of the sale; (b) all
receipts, cash, credits and property of any kind;
(c) any amount for which credit is allowed by the
seller to the purchaser; (d) 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 (i) of subsection (2) of this
section. "Gross receipts" do not include any of
the following: (a) Cash discounts allowed and
taken on sales; (b) any portion of the sales price
of property returned by customers, 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;
(c) 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 consumer; (d) transportation charges
separately stated, if the transportation occurs
after the sale of the property is made to the
purchaser; (e) 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 (i) of subsection (2) of this section;
(f) 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 subdivision (i)
of subsection (2) of this section, provided (A)
the employees perform such services solely for the
service recipient at its property or business
premises and (B) "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; AND (g) THE AMOUNT CHARGED FOR
SEPARATELY STATED COMPENSATION, FRINGE BENEFITS,
WORKERS' COMPENSATION AND PAYROLL TAXES OR
ASSESSMENTS PAID TO OR ON BEHALF OF AN EMPLOYEE,
AS DEFINED AS A LEASED EMPLOYEE PURSUANT TO
SECTION 414(n) OF THE INTERNAL REVENUE CODE OF
1986, OR ANY SUBSEQUENT CORRESPONDING INTERNAL
REVENUE CODE OF THE UNITED STATES, PROVIDED A
LEASED EMPLOYEE SHALL NOT INCLUDE AN EMPLOYEE WHO
IS HIRED BY A TEMPORARY HELP SERVICE AND ASSIGNED
TO SUPPORT OR SUPPLEMENT THE WORKFORCE OF A
TEMPORARY HELP SERVICE'S CLIENT.
Sec. 29. Section 12-571 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The EXECUTIVE DIRECTOR OF THE DIVISION OF
SPECIAL REVENUE SHALL ENTER INTO NEGOTIATIONS WITH
A PERSON OR BUSINESS ORGANIZATION FOR THE AWARD OF
A CONTRACT OF SALE OF THE OFF-TRACK BETTING SYSTEM
INCLUDING, BUT NOT LIMITED TO, THE ASSETS AND
LIABILITIES OF THE SYSTEM AND THE RIGHT TO OPERATE
THE SYSTEM. SUCH CONTRACT OF SALE SHALL AUTHORIZE
THE PURCHASER OF THE SYSTEM TO ESTABLISH AND
CONDUCT A SYSTEM OF OFF-TRACK BETTING ON RACES
HELD WITHIN OR WITHOUT THE STATE PURSUANT TO THE
PROVISIONS OF THIS CHAPTER. ALL PROCEEDS DERIVED
FROM SUCH SALE SHALL BE DEPOSITED AS PROVIDED IN
SECTION 39 OF THIS ACT. UNTIL THE EFFECTIVE DATE
OF TRANSFER OF OWNERSHIP OF THE OFF-TRACK BETTING
SYSTEM, THE executive director shall establish and
conduct systems of off-track betting on races held
within or without the state pursuant to the
provisions of this chapter. It is hereby declared
that off-track betting on races conducted under
the administration OR REGULATORY AUTHORITY of the
division in the manner and subject to the
conditions of this chapter shall be lawful
notwithstanding the provisions of any other law,
general, special or municipal, including any law
prohibiting or restricting lotteries, bookmaking
or any other kind of gambling, it being the
purpose of this chapter to derive from such
betting, as authorized by this chapter, a
reasonable revenue for the support of state
government and to prevent and curb unlawful
bookmaking and illegal betting on races.
(b) [The] UNTIL THE EFFECTIVE DATE OF
TRANSFER OF OWNERSHIP OF THE OFF-TRACK BETTING
SYSTEM, THE executive director, with the advice
and consent of the board, shall adopt rules and
regulations, consistent with this chapter,
establishing and governing the permitted method or
methods of operation of the system of off-track
betting.
Sec. 30. Section 12-571a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The division of special revenue and the
gaming policy board shall not operate or authorize
the operation of more than eighteen off-track
betting branch facilities, except that the
division and the board may operate or authorize
the operation of any off-track betting facility
approved prior to December 31, 1986, by the
legislative body of a municipality in accordance
with subsection (a) of section 12-572. Any
facility approved prior to December 31, 1986,
shall be included within the eighteen branch
facilities authorized by this subsection.
(b) The eighteen off-track betting branch
facilities authorized by subsection (a) of this
section may include four facilities which have
screens for the simulcasting of off-track betting
race programs and other amenities including, but
not limited to, restaurants and concessions,
provided, on and after June 19, 1992, such
facilities shall be located in the town and city
of New Haven, the town of Windsor Locks, within
the dog race track in the town of Plainfield and
within the fronton or dog race track in the town
and city of Bridgeport, provided no [other] SUCH
facility EQUIPPED WITH SCREENS FOR SIMULCASTING
shall be within thirty-five miles of the location
of the teletheater in the town of Windsor Locks.
Each such facility located within a fronton or a
dog race track shall be operated by the state OR
BY A LICENSEE AUTHORIZED TO OPERATE THE OFF-TRACK
BETTING SYSTEM in conjunction with the licensee of
such fronton or dog race track and all such
facilities within a fronton or a dog race track
shall be operated in substantially the same
manner. The location of each such facility shall
be [determined] APPROVED by the executive director
with the consent of the gaming policy board and
shall be subject to the prior approval of the
legislative body of the town in which such
facility is proposed to be located. The division
shall report annually to the joint standing
committee of the general assembly having
cognizance of matters relating to legalized
gambling on the status of the establishment or
improvement of the off-track betting branch
[office] facility pursuant to this subsection.
(c) The division and board OR A LICENSEE
AUTHORIZED TO OPERATE THE OFF-TRACK BETTING SYSTEM
may operate any off-track betting branch office
facilities not operated in the manner of the
facilities operated under subsection (b) of this
section as facilities which have monitors for
off-track betting information, bench seating and
adequate public rest room facilities for patrons.
Sec. 31. Section 12-572 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The executive director, with the advice
and consent of the board, may establish OR
AUTHORIZE THE ESTABLISHMENT OF such off-track
betting facilities throughout the state for the
purpose of receiving moneys wagered on the results
of races as he shall deem will serve the
convenience of the public and provide maximum
economy and efficiency of operation, provided the
establishment of such a facility in any
municipality for the purpose of receiving moneys
on the results of races shall be subject to the
approval of the legislative body of such
municipality which shall be given only after a
public hearing on the same. [Moneys] UNTIL THE
EFFECTIVE DATE OF TRANSFER OF OWNERSHIP OF THE
OFF-TRACK BETTING SYSTEM, MONEYS received at such
facilities shall be deposited in a betting fund
from which daily payments, in such amount as the
executive director deems suitable, shall be made.
(b) The executive director, with the approval
of the board, is authorized to contract with any
person or business organization to provide such
facilities, components, goods or services as may
be necessary for the effective operation of an
off-track betting system. Compensation for such
facilities, components, goods or services shall be
deducted from the moneys retained pursuant to
subsections (c) and (d) OF THIS SECTION in such
amount as the executive director shall determine.
(c) The division or any person or business
organization operating an off-track betting system
shall distribute all sums deposited in a
pari-mutuel pool, to the holders of winning
tickets therein, less seventeen per cent of the
total deposits of such pool plus the breakage to
the dime of the amount so retained, except as
provided in subsection (d) OF THIS SECTION.
(d) (1) If the multiple forms of wagering
known as daily double, exacta and quinella are
permitted by the board, the division or any person
or business organization operating the off-track
betting system shall distribute all sums deposited
in the pari-mutuel pool for any such event to the
holders of winning tickets therein, less nineteen
per cent of the total deposits in such pool plus
the breakage to the dime.
(2) If multiple forms of wagering on three or
more animals are permitted by the board, the
division or such person or business organization
operating an off-track betting system, may retain
up to twenty-five per cent of the total sums
deposited in the pool for such event, plus the
breakage to the dime, the exact percentage to be
established by the board, provided in no case
shall the percentage retained be less than
seventeen per cent.
(e) The division or any person or business
organization operating an off-track betting system
and conducting wagering on racing events held in
this state and licensed under the provisions of
this chapter shall distribute all sums deposited
in a pari-mutuel pool to the holders of winning
tickets therein, less the same percentage of the
total deposits of such pool applicable to such
racing events plus the breakage to the dime of the
amount retained by each licensee conducting the
racing events.
(f) Any person or business organization which
has entered into a contract with the state, acting
through the executive director under the
provisions of subsection (b) OF THIS SECTION,
except a contract with an individual for personal
services, may, in the event of any disputed claims
under such contract, bring an action against the
state to the superior court for the judicial
district of Hartford-New Britain* for the purpose
of having such claims determined, provided notice
of the general nature of such claims shall have
been given in writing to the division not later
than one year after the termination of such
contract. No action shall be brought under this
section later than three years from the date of
termination of the contract. Such action shall be
tried to the court without a jury. Damages
recoverable in such action shall not include any
amount attributable to anticipated profits but
shall be limited to the recovery of actual damages
sustained arising out of such contract. All legal
defenses except governmental immunity shall be
reserved to the state.
(g) The division or any person or business
organization operating an off-track betting
system, with the approval of the board, may
combine wagers placed within such off-track
betting system with similar wagering pools at the
facility where a racing program is being
conducted, regardless of whether such facility is
located within or without the state. Such
pari-mutuel wagers shall be combined in such form
and manner as the executive director may determine
to be in the best interests of the off-track
betting system established pursuant to the
provisions of section 12-571, AS AMENDED BY
SECTION 29 OF THIS ACT. Notwithstanding the
provisions of subsection (c) or (d) of this
section to the contrary, the division or any
person or business organization operating an
off-track betting system and conducting wagering
on racing events held without this state, with the
approval of the board, may distribute to the
holders of winning tickets who have placed wagers
in said combined pools such sums as may be
deposited in said combined pari-mutuel pools, less
the same percentage of the total deposits of such
combined pools as is established at the facility
where such racing program is conducted plus the
breakage to the dime, as shall be determined by
the executive director with the approval of the
board.
Sec. 32. Section 12-573 of the general
statutes is repealed and the following is
substituted in lieu thereof:
[From] UNTIL THE EFFECTIVE DATE OF TRANSFER
OF OWNERSHIP OF THE OFF-TRACK BETTING SYSTEM, AND
FROM time to time the executive director shall
estimate, and certify to the comptroller, that
portion of the balance in the betting fund which
is in excess of the current needs of the division
for the payment of prizes and for the payment of
compensation under section 12-572, AS AMENDED BY
SECTION 31 OF THIS ACT. Upon receipt of any such
certification, the amount so certified shall be
transferred from the betting fund to the general
fund.
Sec. 33. Section 12-574 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No person or business organization may
conduct a meeting at which racing or the
exhibition of jai alai is permitted for any stake,
purse or reward OR OPERATE THE OFF-TRACK BETTING
SYSTEM unless such person or business organization
is licensed as an association licensee by the
board. Any such licensee authorized to conduct a
meeting OR OPERATE THE OFF-TRACK BETTING SYSTEM
shall indemnify and save harmless the state of
Connecticut against any and all actions, claims,
and demands of whatever kind or nature which the
state may sustain or incur by reason or in
consequence of issuing such license.
(b) [After July 1, 1980, no] NO business
organization, other than a shareholder in a
publicly traded corporation, may exercise control
in or over an association licensee unless such
business organization is licensed as an affiliate
licensee by the board.
(c) No person or business organization may
operate any concession at any meeting at which
racing or the exhibition of jai alai is permitted
or any concession which is allied to an off-track
betting facility unless such person or business
organization is licensed as a concessionaire
licensee by the executive director.
(d) [After July 1, 1980, no] NO person or
business organization awarded the primary contract
by the state OR BY AN ASSOCIATION LICENSEE to
provide facilities, components, goods or services
which are necessary for the operation of the
activities authorized by the provisions of
sections 12-568 and 12-572, AS AMENDED BY SECTION
31 OF THIS ACT, may do so unless such person or
business organization is licensed as a vendor
licensee by the executive director.
(e) [After July 1, 1980, no] NO person or
business organization may provide totalizator
equipment and services to any association licensee
for the operation of a pari-mutuel system unless
such person or business organization is licensed
as a totalizator licensee by the executive
director.
(f) [After July 1, 1980, no] NO business
organization, other than a shareholder in a
publicly traded corporation, may exercise control
in or over a concessionaire, vendor or totalizator
licensee unless such business organization is
licensed as an affiliate licensee by the executive
director.
(g) No person may participate in this state
in any activity permitted under this chapter as an
employee of an association, concessionaire,
vendor, totalizator or affiliate licensee unless
such person is licensed as an occupational
licensee by the executive director. Whether
located in or out of this state no officer,
director, partner, trustee or owner of a business
organization which obtains a license in accordance
with this section may continue in such capacity
unless such officer, director, partner, trustee or
owner is licensed as an occupational licensee by
the executive director. An occupational license
shall also be obtained by any shareholder, key
executive, agent or other person connected with
any association, concessionaire, vendor,
totalizator or affiliate licensee, who in the
judgment of the executive director will exercise
control in or over any such licensee. Such person
shall apply for a license not later than thirty
days after the executive director requests him, in
writing, to do so. The executive director shall
complete his investigation of an applicant for an
occupational license and notify such applicant of
his decision to approve or deny the application
within one year after its receipt. Such period may
be extended by the board upon a showing of good
cause by the executive director, after giving the
applicant a reasonable opportunity for a hearing
before the board.
(h) [After July 1, 1980: (1)] If any business
organization qualifies to be licensed either as an
affiliate of an association licensee or as a
concessionaire, such business organization shall
be licensed as an affiliate licensee by the board.
[; (2) if] IF any business organization qualifies
to be licensed either as an affiliate of a
concessionaire licensee or as a concessionaire,
such business organization shall be licensed as an
affiliate licensee by the executive director.
(i) In determining whether to grant a license
the board or the executive director may require
the applicant to submit information as to:
Financial standing and credit; moral character;
criminal record, if any; previous employment;
corporate, partnership or association
affiliations; ownership of personal assets; and
such other information as it or he deems pertinent
to the issuance of such license. The executive
director may reject for good cause an application
for a license, and he, [or] the deputy executive
director, [or] THE EXECUTIVE ASSISTANT, any unit
head OR ANY ASSISTANT UNIT HEAD authorized by the
executive director may suspend or revoke for good
cause any license issued by him after a hearing
held in accordance with chapter 54. In addition,
if any affiliate licensee licensed by the
executive director fails to comply with the
provisions of this chapter the executive director,
after a hearing held in accordance with chapter
54, may revoke or suspend the license of any one
or more of the following related licensees:
Concessionaire, vendor or totalizator, and may
fine any one or more of said licensees in an
amount not to exceed two thousand five hundred
dollars. Any licensee whose license is suspended
or revoked, or any applicant aggrieved by the
action of the executive director concerning an
application for a license may appeal not later
than fifteen days after such decision to the board
in accordance with subsection (j) OF THIS SECTION.
(j) The executive director, with the advice
and consent of the board shall adopt regulations
governing the operation of the OFF-TRACK BETTING
SYSTEM AND FACILITIES, tracks, stables, kennels
and frontons, including the regulation of betting
in connection therewith, to insure the integrity
and security of the conduct of meetings AND THE
BROADCAST OF RACING EVENTS held pursuant to this
chapter. Such regulations shall include provision
for the imposition of fines and suspension of
licenses for violations thereof. Prior to the
adoption of any regulations concerning the
treatment of animals at any dog race track, the
executive director shall notify the National
Greyhound Association of the contents of such
regulations and of its right to request a hearing
pursuant to chapter 54. The board shall have the
authority to impose a fine of up to seventy-five
thousand dollars for any violation of such
regulations by a licensee authorized to conduct a
meeting OR OPERATE THE OFF-TRACK BETTING SYSTEM
under this section and a fine of up to five
thousand dollars for any violation of such
regulations by any other licensee. The executive
director shall have the authority to impose a fine
of up to two thousand five hundred dollars for any
such violation by any licensee licensed by him and
the stewards or judges of a meeting acting in
accordance with such regulations shall have the
authority to impose a fine of up to five hundred
dollars for any such violation by such licensee,
and the players' manager of a jai alai exhibition
acting in accordance with such regulations shall
have the authority to recommend to the judges that
a fine should be considered for a player who may
have violated such regulations. The board may
delegate to the stewards and judges of a meeting
the power to suspend the license of any
occupational licensee employed in this state by an
association licensee for a period not to exceed
sixty days for any violation of such regulations.
If any license is suspended, such stewards and
judges of a meeting shall state the reasons
therefor in writing. All fines imposed pursuant to
this section shall be paid over to the general
fund upon receipt by the division. Any person or
business organization fined or suspended by an
authority other than the board or any licensee or
applicant for a license aggrieved by a decision of
the executive director under subsection (i) shall
have a right of appeal to the board for a hearing.
All hearings, other than appellate hearings before
the board, shall be conducted pursuant to chapter
54. Any person or business organization aggrieved
by a decision of the board shall have a right of
appeal pursuant to section 4-183.
(k) The executive director shall have the
power to require that the books and records of any
licensee, other than an occupational licensee,
shall be maintained in any manner which he may
deem best, and that any financial or other
statements based on such books and records shall
be prepared in accordance with generally accepted
accounting principles in such form as he shall
prescribe. The executive director or his designee
shall also be authorized to visit, to investigate
and to place expert accountants and such other
persons as he may deem necessary, in the offices,
tracks, frontons, OFF-TRACK BETTING FACILITIES or
places of business of any such licensee, for the
purpose of satisfying himself that the division's
regulations are strictly complied with.
(l) The executive director may at any time
for good cause require the removal of any employee
or official employed by any licensee hereunder.
(m) The board shall have the right to reject
any application for a license for good cause and
the action of the board as to the license and the
meeting dates assigned shall be final, provided
any person or business organization aggrieved by
the action of the board concerning an application
for a license may appeal such decision in
accordance with section 4-183. The board shall, as
far as practicable, avoid conflicts in the dates
assigned for racing or the exhibition of the game
of jai alai in the state. Any license granted
under the provisions of this chapter is a
revocable privilege and no licensee shall be
deemed to have acquired any vested rights based on
the issuance of such license. Any such license
shall be subject to the regulations set forth by
the executive director with the advice and consent
of the board. Any license issued by the board
shall be subject to suspension or revocation for
good cause, after giving the licensee a reasonable
opportunity for a hearing before the board, at
which he shall have the right to be represented by
counsel. In addition, if any affiliate licensee
licensed by the board fails to comply with the
provisions of this chapter the board, after a
hearing held in accordance with chapter 54, may
revoke or suspend the license of the related
association licensee and may fine the related
association licensee in an amount not to exceed
seventy-five thousand dollars or both. If any
license is suspended or revoked the board shall
state the reasons for such suspension or
revocation and cause an entry of such reasons to
be made on the record books of the board. Any
licensee aggrieved by the action of the board may
appeal therefrom in accordance with section 4-183.
(n) The appropriate licensing authority may,
on its own motion or upon application, exempt any
person or business organization from the licensing
requirements of this chapter or some or all of the
disclosure requirements of chapter 226b. The
appropriate licensing authority, in making its
determination, shall consider whether the
applicant seeking the exemption will exercise
control in or over an activity which is ancillary
to and not an integral part of any activity
authorized under this chapter. The burden of
proving that an exemption should be granted rests
solely with the applicant. The licensing authority
making the determination may limit or condition
the terms of an exemption and such determination
shall be final.
(o) Any person aiding or abetting in the
OPERATION OF AN OFF-TRACK BETTING SYSTEM OR THE
conduct of any meeting within this state at which
racing or the exhibition of the game of jai alai
shall be permitted for any stake, purse or reward,
except in accordance with a license duly issued
and unsuspended or unrevoked by the board or the
executive director, shall be guilty of a class A
misdemeanor.
(p) The majority of the membership of the
board of directors of any corporation licensed to
OPERATE THE OFF-TRACK BETTING SYSTEM OR TO hold or
conduct any meeting within the state of
Connecticut at which racing or the exhibition of
the game of jai alai shall be permitted for any
stake, purse or reward, shall be residents of the
state of Connecticut.
(q) Any license granted under this section
other than a license issued by the board shall be
effective for not more than one year from the date
of issuance. Initial application for and renewal
of any license shall be in such form and manner as
the executive director shall, by regulation
adopted with the advice and consent of the board,
prescribe.
(r) Any person or business organization
issued a license to conduct dog racing shall
establish a pet adoption program for the proper
housing and care of retired greyhounds and shall
provide financial support for such program and any
facility operated to implement such program.
(s) Any person or business organization
issued a license to conduct dog racing pursuant to
subsection (c) of section 12-574c shall employ
persons who, at the time of employment, are
recipients of assistance under chapter 302 or 308
to fill not less than twenty per cent of the
positions created by the conversion of a jai alai
fronton to a dog race track if such persons have
been trained for such employment by public or
publicly-funded agencies in coordination with such
licensee.
(t) Any person or business organization
issued a license to conduct dog racing pursuant to
subsection (c) of section 12-574c shall provide an
on-site day care facility for use by employees of
the dog race track. Such licensee shall employ
persons who, at the time of employment, are
recipients of aid under chapter 302 or 308 to fill
not less than fifty per cent of the positions at
such day care facility if such persons have been
trained for such employment by public or
publicly-funded agencies in coordination with such
licensee.
(u) Notwithstanding any other provisions of
this chapter to the contrary, any person or
business organization issued a license to conduct
dog racing may operate on a year-round basis and
may conduct such number of performances as it may
elect, provided the total number of such
performances does not exceed five hundred and
eighty performances in any calendar year.
Sec. 34. Section 12-574a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Whenever a person or business
organization files an application with the board
for a license to conduct an activity regulated by
section 12-574, AS AMENDED BY SECTION 33 OF THIS
ACT, exclusive of renewal license applications,
the board shall forward within five days to the
town clerk of the town within which such activity
is proposed to be carried on a statement
specifying the prospective applicant, the proposed
activity, the site on which such activity is
proposed to be conducted and the fact that an
application has been filed with the board. Within
ten days after such statement has been filed, such
town clerk shall cause notice of such filing to be
published in a newspaper having a circulation in
the town wherein the activity is to be conducted.
The question of the approval of the conducting of
such activity shall be submitted to the electors
of such town at a special election called for the
purpose to be held not less than thirty nor more
than sixty days after such publication, in
conformity with the provisions of section 9-369,
or at a regular town election if such election is
to be held more than sixty but not more than one
hundred twenty days after such publication, such
question shall be so submitted and the vote shall
be taken in the manner prescribed by said section
9-369. The town clerk shall notify the board of
the results of such election. The disapproval of
the conducting of such activity by a majority of
those voting on the question shall be a bar to the
granting of a license to that applicant to conduct
such activity at such location. All costs incurred
by a municipality in connection with such
referendum shall be paid to said municipality by
the person or business organization filing such
application for such license. THE PROVISIONS OF
THIS SUBSECTION SHALL NOT APPLY TO ANY LICENSEE
AUTHORIZED TO OPERATE THE OFF-TRACK BETTING SYSTEM
WITH RESPECT TO ANY OFF-TRACK BETTING FACILITY
APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS
SECTION.
(b) No licensee may conduct any racing or jai
alai event on any Sunday without the prior
approval of the legislative body of the town in
which the event is scheduled to take place, except
that the board shall permit any licensee to
conclude a Saturday evening performance not later
than one o'clock a.m. on Sunday. Upon this
approval, the board shall include Sundays in the
meeting dates assigned to such licensee for racing
or jai alai if requested to do so by the licensee,
provided (1) no Sunday event may be authorized to
begin prior to one o'clock p.m., and (2) no
licensee may be authorized to conduct racing or
jai alai events on more than six calendar days in
any one calendar week.
(c) No [vendor licensee awarded the primary
contract by the state to provide such facilities,
components, goods or services as may be necessary
for the effective operation of an off-track
betting system pursuant to the provisions of
subsection (b) of section 12-572] LICENSEE
AUTHORIZED TO OPERATE THE OFF-TRACK BETTING SYSTEM
may conduct any off-track pari-mutuel wagering on
any racing program on any Sunday without the prior
approval of the legislative body of the town in
which such off-track betting facility is located.
Upon this approval, the executive director of the
division of special revenue and the board shall
authorize the conduct of off-track pari-mutuel
wagering on any racing program held on any Sunday
if requested to do so by the [vendor] licensee,
provided (1) only an off-track betting facility
equipped to receive live telecasts of such racing
programs shall be permitted to open on any Sunday,
(2) no live telecast OR LIVE CALL of any such
RACING program shall begin prior to twelve-thirty
o'clock p.m., and (3) no [vendor] licensee shall
be authorized to conduct such wagering on more
than six afternoon and six evening racing programs
per calendar week, irrespective of the number of
calendar days, except that the executive director
may authorize the [vendor] licensee to conduct
make-up programs if requested to do so by such
licensee.
(d) Notwithstanding the provisions of
subsection (a) of this section, the prior approval
of the legislative body only of the town shall be
required in the event the division or the board
issues a license pursuant to subsection (c) of
section 12-574c.
Sec. 35. Section 12-575 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The board may permit at racing events,
[or] exhibitions of the game of jai alai licensed
under the provisions of this chapter OR AT
OFF-TRACK BETTING FACILITIES, betting under a
pari-mutuel system, so called, including standard
pari-mutuel, daily double, exacta, quinella,
trifecta, superfecta, twin trifecta, pick four and
pick six betting, and such other forms of multiple
betting as the board may determine.
(b) The pari-mutuel system, so called, shall
not be used or permitted at any location other
than the race track at which the racing event is
licensed to be conducted or the fronton at which
the game of jai alai is licensed to be played or
at an off-track betting facility [conducted]
OPERATED by the division OR BY A LICENSEE
AUTHORIZED TO OPERATE THE OFF-TRACK BETTING
SYSTEM. A computerized electronic totalizator
system, approved by the executive director, shall
be used to conduct pari-mutuel wagering at each
racing or jai alai event. A COMPUTERIZED
ELECTRONIC TOTALIZATOR SYSTEM APPROVED BY THE
EXECUTIVE DIRECTOR AND, WHERE AUTHORIZED BY
SUBSECTION (b) OF SECTION 12-571a, AS AMENDED BY
SECTION 30 OF THIS ACT, AND APPROVED BY THE
EXECUTIVE DIRECTOR, A SIMULCAST SYSTEM SHALL BE
USED TO CONDUCT PARI-MUTUEL WAGERING AND
SIMULCASTING OF OFF-TRACK BETTING RACE PROGRAMS AT
OFF-TRACK BETTING FACILITIES. The executive
director may require any licensee [conducting such
an event] to submit information concerning the
daily operation of such totalizator OR SIMULCAST
system which he deems necessary for the effective
administration of this chapter, including records
of all wagering transactions, in such form and
manner as he shall prescribe.
(c) (1) Except as provided in subdivision (2)
of this subsection, each licensee conducting horse
racing events under the pari-mutuel system shall
distribute all sums deposited in any pari-mutuel
program to the holders of winning tickets therein,
less seventeen per cent of the total deposits plus
the breakage to the dime of the amount so
retained; until June 30, 1994, each licensee
conducting jai alai events shall distribute all
sums deposited in any pari-mutuel program to the
holders of winning tickets therein, less a maximum
of twenty per cent of the total deposits plus the
breakage to the dime of the amount so retained,
and on and after July 1, 1994, each such licensee
shall distribute all such sums less eighteen per
cent of the total deposits plus the breakage to
the dime of the amount so retained; and until June
30, 1994, each licensee conducting dog racing
events shall distribute all sums deposited in any
pari-mutuel program to the holders of winning
tickets therein, less nineteen per cent of the
total deposits plus the breakage to the dime of
the amount so retained, provided that on and after
July 1, 1987, each licensee conducting dog racing
shall allocate three and one-half per cent of all
sums deposited in any pari-mutuel program to
purses, one-quarter of one per cent to capital
expenditures for alterations, additions,
replacements, changes, improvements or major
repairs to or upon the property owned or leased by
any such licensee and used for such racing events,
and one-quarter of one per cent to promotional
marketing, to reduce the costs of admission,
programs, parking and concessions and to offer
entertainment and give-aways and provided further
that on and after July 1, 1992, each licensee
conducting dog racing events on July 5, 1991,
shall distribute all sums deposited in any
pari-mutuel program to the holders of winning
tickets therein, less twenty per cent of the total
deposits plus the breakage to the dime of the
amount so retained, and shall allocate four per
cent of all sums deposited in any pari-mutuel
program to purses, one-quarter of one per cent to
capital expenditures for alterations, additions,
replacement changes, improvements or major repairs
to or upon the property owned or leased by any
such licensee and used for such racing events, and
one-quarter of one per cent to promotional
marketing, to reduce the costs of admission,
programs, parking and concessions and to offer
entertainment and give-aways. Each licensee
conducting dog racing events shall, on a quarterly
basis, submit to the division certified financial
statements verifying the use of such allocations
for purses, capital improvements and promotional
marketing. (2) Each licensee conducting racing or
jai alai events may carry over all or a portion of
the sums deposited in any pari-mutuel program,
less the amount retained as herein provided, in
the twin trifecta, pick four or pick six
pari-mutuel pool to another pool, including a pool
in a succeeding performance.
(d) Each licensee conducting horse racing
events under the pari-mutuel system shall pay to
the state, and there is hereby imposed: (1) A tax
on the total money wagered in the pari-mutuel pool
on each and every day the licensee conducts racing
events, pursuant to the following schedule:
Total Wagered Tax
0 to $100,001 3.25% on the entire pool
$100,001 to $200,001 3.75% on the entire pool
$200,001 to $300,001 4.25% on the entire pool
$300,001 to $400,001 4.75% on the entire pool
$400,001 to $500,001 5.25% on the entire pool
$500,001 to $600,001 5.75% on the entire pool
$600,001 to $700,001 6.25% on the entire pool
$700,001 to $800,001 6.75% on the entire pool
$800,001 to $900,001 7.25% on the entire pool
$900,001 to $1,000,001 7.75% on the entire pool
$1,000,001 and over 8.75% on the entire pool
and (2) a tax equal to one-half of the breakage to
the dime resulting from such wagering. The
executive director, with the advice and consent of
the board, shall by regulation designate the
percentage of the difference between the seventeen
per cent specified in subsection (c), and the tax
specified in this subsection which shall be
allocated as prize or purse money for the horses
racing at each facility.
(e) Each licensee conducting dog racing
events under the pari-mutuel system shall pay to
the state, and there is hereby imposed: (1) (A) A
tax at the rate of seven and one-quarter per cent
on the total money wagered in the pari-mutuel pool
on each and every day the licensee conducts racing
events or (B) on or after July 1, 1992, in the
case of any licensee licensed prior to July 5,
1991, (i) a tax at the rate of five per cent on
any amount up to and including twenty-five million
dollars of the total money wagered in the
pari-mutuel pool in any state fiscal year during
which a licensee licensed prior to July 5, 1991,
conducts racing events, (ii) a tax at the rate of
six per cent on any amount in excess of
twenty-five million dollars and up to and
including fifty million dollars of the total money
wagered in the pari-mutuel pool in any state
fiscal year during which a licensee licensed prior
to July 5, 1991, conducts racing events, (iii) a
tax at the rate of seven per cent on any amount in
excess of fifty million dollars and up to and
including eighty million dollars of the total
money wagered in the pari-mutuel pool in any state
fiscal year during which a licensee licensed prior
to July 5, 1991, conducts racing events, (iv) a
tax at the rate of seven and one-half per cent on
any amount in excess of eighty million dollars and
up to and including one hundred five million
dollars of the total money wagered in the
pari-mutuel pool in any state fiscal year during
which a licensee licensed prior to July 5, 1991,
conducts racing events and (v) a tax at the rate
of eight and one-half per cent on any amount in
excess of one hundred five million dollars of the
total money wagered in the pari-mutuel pool in any
state fiscal year during which a licensee licensed
prior to July 5, 1991, conducts racing events, and
(2) a tax equal to one-half of the breakage to the
dime resulting from such wagering.
(f) Each licensee operating a fronton at
which the game of jai alai is licensed to be
played under the pari-mutuel system shall pay to
the state and there is hereby imposed: (1) A tax
at the rate of six and three-quarters per cent on
the total money wagered on such games and (2) a
tax equal to one-half of the breakage to the dime
resulting from such wagering.
(g) THE LICENSEE AUTHORIZED TO OPERATE THE
SYSTEM OF OFF-TRACK BETTING UNDER THE PARI-MUTUEL
SYSTEM SHALL PAY TO THE STATE AND THERE IS HEREBY
IMPOSED: (1) A TAX AT THE RATE OF THREE AND
ONE-HALF PER CENT ON THE TOTAL MONEY WAGERED IN
THE PARI-MUTUEL POOL ON EACH AND EVERY DAY THE
LICENSEE BROADCASTS RACING EVENTS AND (2) A TAX
EQUAL TO ONE-HALF OF THE BREAKAGE TO THE DIME
RESULTING FROM SUCH WAGERING.
[(g)] (h) The executive director shall assess
and collect the taxes imposed by this chapter
under such regulations as, with the advice and
consent of the board, he may prescribe. All taxes
hereby imposed shall be due and payable by the
close of the next banking day after each day's
racing or jai alai exhibition. If any such tax is
not paid when due, the executive director shall
impose a delinquency assessment upon the licensee
in the amount of ten per cent of such tax or ten
dollars, whichever amount is greater, plus
interest at the rate of one and one-half per cent
of the unpaid principal of such tax for each month
or fraction of a month from the date such tax is
due to the date of payment. Subject to the
provisions of section 12-3a, the executive
director may waive all or part of the penalties
provided under this subsection when it is proven
to his satisfaction that the failure to pay such
tax within the time required was due to reasonable
cause and was not intentional or due to neglect.
Failure to pay any such delinquent tax upon demand
may be considered by the executive director as
cause for revocation of license.
[(h)] (i) The executive director shall devise
a system of accounting and shall supervise betting
at such track, [or] fronton OR OFF-TRACK BETTING
FACILITY in such manner that the rights of the
state are protected and shall collect all fees and
licenses under such regulations as, with the
advice and consent of the board, he shall
prescribe.
[(i)] (j) The amount of unclaimed moneys, as
determined by the executive director, held by any
licensee on account of outstanding and uncashed
winning tickets, shall be due and payable to the
executive director, for deposit in the general
fund of the state, at the expiration of one year
after the close of the meeting during which such
tickets were issued. If any such unclaimed moneys
are not paid when due, the executive director
shall impose a delinquency assessment upon the
licensee in the amount of ten per cent of such
moneys or ten dollars, whichever amount is
greater, plus interest at the rate of one and
one-half per cent of the unpaid principal of such
moneys for each month or fraction of a month from
the date such moneys are due to the date of
payment. Subject to the provisions of section
12-3a, the executive director may waive all or
part of the penalties provided under this
subsection when it is proven to his satisfaction
that the failure to pay such moneys to the state
within the time required was due to reasonable
cause and was not intentional or due to neglect.
[(j)] (k) The executive director may
authorize deputies and the commissioner of revenue
services or his agents are authorized to enter
upon the premises at any racing event, [or] jai
alai exhibition OR OFF-TRACK BETTING RACE EVENT
for the purpose of inspecting books and records,
supervising and examining cashiers, ticket
sellers, pool sellers and other persons handling
money at said event and such other supervision as
may be necessary for the maintenance of order at
such event.
[(k)] (l) The executive director shall, on or
before the tenth day of each month, prepare and
file with the treasurer a full and complete
statement of the division's receipts from all
sources and shall turn over to the treasurer all
moneys in the division's possession.
[(l)] (m) (1) The executive director shall
pay each municipality in which a horse race track
is located, one-quarter of one per cent of the
total money wagered on horse racing events at such
race track, except the executive director shall
pay each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered at such horse racing events in such
municipality. The executive director shall pay
each municipality in which a jai alai fronton or
dog race track is located one-half of one per cent
of the total money wagered on jai alai games or
dog racing events at such fronton or dog race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered on jai alai games or dog racing
events at such fronton or dog race track located
in such municipality. THE EXECUTIVE DIRECTOR SHALL
PAY EACH MUNICIPALITY IN WHICH AN OFF-TRACK
BETTING FACILITY IS LOCATED ONE PER CENT OF THE
TOTAL MONEY WAGERED IN SUCH FACILITY LESS AMOUNTS
PAID AS REFUNDS OR FOR CANCELLATIONS. Payment
shall be made not less than four times a year and
not more than twelve times a year as determined by
the executive director, and shall be made from the
tax imposed pursuant to subsection (d) of this
section for horse racing, subsection (e) of this
section for dog racing, [and] subsection (f) of
this section for jai alai games AND SUBSECTION (g)
OF THIS SECTION FOR OFF-TRACK BETTING. (2) If, for
any calendar year after the surrender of a license
to conduct jai alai events by any person or
business organization pursuant to subsection (c)
of section 12-574c and prior to the opening of any
dog race track by such person or business
organization, any other person or business
organization licensed to conduct jai alai events
is authorized to conduct a number of performances
greater than the number authorized for such
licensee in the previous calendar year, the
executive director shall pay the municipality in
which the jai alai fronton for which such license
was surrendered was located, rather than the
municipality in which the jai alai fronton
conducting the increased performances is located,
one-half of one per cent of the total money
wagered on jai alai games for such increased
performances at the fronton which conducted the
additional performances, except the executive
director shall pay each such municipality having a
population in excess of fifty thousand one per
cent of the total money wagered on jai alai games
for such increased performances at such fronton.
(3) During any state fiscal year ending on or
after June 30, 1993, the executive director shall
pay (A) each municipality in which a dog race
track was operating prior to July 5, 1991,
eight-tenths of one per cent of the total money
wagered on dog racing events at such dog race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered on dog racing events at such dog
race track located in such municipality and (B)
the Northeast Connecticut Economic Alliance, Inc.
two-tenths of one per cent of the total money
wagered on dog racing events at any dog race track
operating prior to July 5, 1991.
Sec. 36. Section 12-575 of the general
statutes, as amended by section 35 of this act, is
repealed and the following is substituted in lieu
thereof:
(a) The board may permit at racing events,
exhibitions of the game of jai alai licensed under
the provisions of this chapter or at off-track
betting facilities, betting under a pari-mutuel
system, so called, including standard pari-mutuel,
daily double, exacta, quinella, trifecta,
superfecta, twin trifecta, pick four and pick six
betting, and such other forms of multiple betting
as the board may determine.
(b) The pari-mutuel system, so called, shall
not be used or permitted at any location other
than the race track at which the racing event is
licensed to be conducted or the fronton at which
the game of jai alai is licensed to be played or
at an off-track betting facility operated by the
division or by a licensee authorized to operate
the off-track betting system. A computerized
electronic totalizator system, approved by the
executive director, shall be used to conduct
pari-mutuel wagering at each racing or jai alai
event. A computerized electronic totalizator
system approved by the executive director and,
where authorized by subsection (b) of section
12-571a and approved by the executive director, a
simulcast system shall be used to conduct
pari-mutuel wagering and simulcasting of off-track
betting race programs at off-track betting
facilities. The executive director may require any
licensee to submit information concerning the
daily operation of such totalizator or simulcast
system which he deems necessary for the effective
administration of this chapter, including records
of all wagering transactions, in such form and
manner as he shall prescribe.
(c) (1) Except as provided in subdivision (2)
of this subsection, each licensee conducting horse
racing events under the pari-mutuel system shall
distribute all sums deposited in any pari-mutuel
program to the holders of winning tickets therein,
less seventeen per cent of the total deposits plus
the breakage to the dime of the amount so
retained; [until June 30, 1994,] each licensee
conducting jai alai events shall distribute all
sums deposited in any pari-mutuel program to the
holders of winning tickets therein, less a maximum
of twenty per cent of the total deposits plus the
breakage to the dime of the amount so retained; [,
and on and after July 1, 1994, each such licensee
shall distribute all such sums less eighteen per
cent of the total deposits plus the breakage to
the dime of the amount so retained; and until June
30, 1994,] each licensee conducting dog racing
events shall distribute all sums deposited in any
pari-mutuel program to the holders of winning
tickets therein, less [nineteen] TWENTY per cent
of the total deposits plus the breakage to the
dime of the amount so retained, provided [that on
and after July 1, 1987, each licensee conducting
dog racing shall allocate three and one-half per
cent of all sums deposited in any pari-mutuel
program to purses, one-quarter of one per cent to
capital expenditures for alterations, additions,
replacements, changes, improvements or major
repairs to or upon the property owned or leased by
any such licensee and used for such racing events,
and one-quarter of one per cent to promotional
marketing, to reduce the costs of admission,
programs, parking and concessions and to offer
entertainment and give-aways and provided further
that] on and after July 1, 1992, each licensee
conducting dog racing events on July 5, 1991,
[shall distribute all sums deposited in any
pari-mutuel program to the holders of winning
tickets therein, less twenty per cent of the total
deposits plus the breakage to the dime of the
amount so retained, and] shall allocate four per
cent of all sums deposited in any pari-mutuel
program to purses, one-quarter of one per cent to
capital expenditures for alterations, additions,
replacement changes, improvements or major repairs
to or upon the property owned or leased by any
such licensee and used for such racing events, and
one-quarter of one per cent to promotional
marketing, to reduce the costs of admission,
programs, parking and concessions and to offer
entertainment and give-aways. Each licensee
conducting dog racing events shall, on a quarterly
basis, submit to the division certified financial
statements verifying the use of such allocations
for purses, capital improvements and promotional
marketing. (2) Each licensee conducting racing or
jai alai events may carry over all or a portion of
the sums deposited in any pari-mutuel program,
less the amount retained as herein provided, in
the twin trifecta, pick four or pick six
pari-mutuel pool to another pool, including a pool
in a succeeding performance.
(d) Each licensee conducting horse racing
events under the pari-mutuel system shall pay to
the state, and there is hereby imposed: (1) A tax
on the total money wagered in the pari-mutuel pool
on each and every day the licensee conducts racing
events, pursuant to the following schedule:
Total Wagered Tax
0 to $100,001 3.25% on the entire pool
$100,001 to $200,001 3.75% on the entire pool
$200,001 to $300,001 4.25% on the entire pool
$300,001 to $400,001 4.75% on the entire pool
$400,001 to $500,001 5.25% on the entire pool
$500,001 to $600,001 5.75% on the entire pool
$600,001 to $700,001 6.25% on the entire pool
$700,001 to $800,001 6.75% on the entire pool
$800,001 to $900,001 7.25% on the entire pool
$900,001 to $1,000,001 7.75% on the entire pool
$1,000,001 and over 8.75% on the entire pool
and (2) a tax equal to one-half of the breakage to
the dime resulting from such wagering. The
executive director, with the advice and consent of
the board, shall by regulation designate the
percentage of the difference between the seventeen
per cent specified in subsection (c), and the tax
specified in this subsection which shall be
allocated as prize or purse money for the horses
racing at each facility.
(e) Each licensee conducting dog racing
events under the pari-mutuel system shall pay to
the state, and there is hereby imposed: (1) (A) A
tax at the rate of [seven and one-quarter] TWO per
cent on the total money wagered in the pari-mutuel
pool on each and every day the licensee conducts
racing events or (B) on or after July 1, [1992]
1993, in the case of any licensee licensed prior
to July 5, 1991, (i) a tax at the rate of [five]
TWO per cent on any amount up to and including
[twenty-five million dollars of the total money
wagered in the pari-mutuel pool in any state
fiscal year during which a licensee licensed prior
to July 5, 1991, conducts racing events, (ii) a
tax at the rate of six per cent on any amount in
excess of twenty-five million dollars and up to
and including] fifty million dollars of the total
money wagered in the pari-mutuel pool in any state
fiscal year during which a licensee licensed prior
to July 5, 1991, conducts racing events, [(iii)]
(ii) a tax at the rate of [seven] THREE per cent
on any amount in excess of fifty million dollars
and up to and including eighty million dollars of
the total money wagered in the pari-mutuel pool in
any state fiscal year during which a licensee
licensed prior to July 5, 1991, conducts racing
events [, (iv)] AND (iii) a tax at the rate of
[seven and one-half] FOUR per cent on any amount
in excess of eighty million dollars [and up to and
including one hundred five million dollars] of the
total money wagered in the pari-mutuel pool in any
state fiscal year during which a licensee licensed
prior to July 5, 1991, conducts racing events,
[and (v) a tax at the rate of eight and one-half
per cent on any amount in excess of one hundred
five million dollars of the total money wagered in
the pari-mutuel pool in any state fiscal year
during which a licensee licensed prior to July 5,
1991, conducts racing events,] and (2) a tax equal
to one-half of the breakage to the dime resulting
from such wagering.
(f) Each licensee operating a fronton at
which the game of jai alai is licensed to be
played under the pari-mutuel system shall pay to
the state and there is hereby imposed: (1) (A) A
tax at the rate of [six and three-quarters] TWO
per cent on ANY AMOUNT UP TO AND INCLUDING FIFTY
MILLION DOLLARS OF the total money wagered on such
games, (B) A TAX AT THE RATE OF THREE PER CENT OF
ANY AMOUNT IN EXCESS OF FIFTY MILLION DOLLARS AND
UP TO AND INCLUDING EIGHTY MILLION DOLLARS OF THE
TOTAL MONEY WAGERED ON SUCH GAMES, AND (C) A TAX
AT THE RATE OF FOUR PER CENT ON ANY AMOUNT IN
EXCESS OF EIGHTY MILLION DOLLARS OF THE TOTAL
MONEY WAGERED ON SUCH GAMES, and (2) a tax equal
to one-half of the breakage to the dime resulting
from such wagering.
(g) The licensee authorized to operate the
system of off-track betting under the pari-mutuel
system shall pay to the state and there is hereby
imposed: (1) A tax at the rate of three and
one-half per cent on the total money wagered in
the pari-mutuel pool on each and every day the
licensee broadcasts racing events and (2) a tax
equal to one-half of the breakage to the dime
resulting from such wagering.
(h) The executive director shall assess and
collect the taxes imposed by this chapter under
such regulations as, with the advice and consent
of the board, he may prescribe. All taxes hereby
imposed shall be due and payable by the close of
the next banking day after each day's racing or
jai alai exhibition. If any such tax is not paid
when due, the executive director shall impose a
delinquency assessment upon the licensee in the
amount of ten per cent of such tax or ten dollars,
whichever amount is greater, plus interest at the
rate of one and one-half per cent of the unpaid
principal of such tax for each month or fraction
of a month from the date such tax is due to the
date of payment. Subject to the provisions of
section 12-3a, the executive director may waive
all or part of the penalties provided under this
subsection when it is proven to his satisfaction
that the failure to pay such tax within the time
required was due to reasonable cause and was not
intentional or due to neglect. Failure to pay any
such delinquent tax upon demand may be considered
by the executive director as cause for revocation
of license.
(i) The executive director shall devise a
system of accounting and shall supervise betting
at such track, fronton or off-track betting
facility in such manner that the rights of the
state are protected and shall collect all fees and
licenses under such regulations as, with the
advice and consent of the board, he shall
prescribe.
(j) The amount of unclaimed moneys, as
determined by the executive director, held by any
licensee OTHER THAN BY A LICENSEE AUTHORIZED TO
OPERATE THE OFF-TRACK BETTING SYSTEM on account of
outstanding and uncashed winning tickets, shall be
due and payable to the executive director, for
deposit in the general fund of the state, at the
expiration of one year after the close of the
meeting during which such tickets were issued. If
any such unclaimed moneys are not paid when due,
the executive director shall impose a delinquency
assessment upon the licensee in the amount of ten
per cent of such moneys or ten dollars, whichever
amount is greater, plus interest at the rate of
one and one-half per cent of the unpaid principal
of such moneys for each month or fraction of a
month from the date such moneys are due to the
date of payment. Subject to the provisions of
section 12-3a, the executive director may waive
all or part of the penalties provided under this
subsection when it is proven to his satisfaction
that the failure to pay such moneys to the state
within the time required was due to reasonable
cause and was not intentional or due to neglect.
(k) The executive director may authorize
deputies and the commissioner of revenue services
or his agents are authorized to enter upon the
premises at any racing event, jai alai exhibition
or off-track betting race event for the purpose of
inspecting books and records, supervising and
examining cashiers, ticket sellers, pool sellers
and other persons handling money at said event and
such other supervision as may be necessary for the
maintenance of order at such event.
(l) The executive director shall, on or
before the tenth day of each month, prepare and
file with the treasurer a full and complete
statement of the division's receipts from all
sources and shall turn over to the treasurer all
moneys in the division's possession.
(m) (1) The executive director shall pay each
municipality in which a horse race track is
located, one-quarter of one per cent of the total
money wagered on horse racing events at such race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered at such horse racing events in such
municipality. The executive director shall pay
each municipality in which a jai alai fronton or
dog race track is located one-half of one per cent
of the total money wagered on jai alai games or
dog racing events at such fronton or dog race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered on jai alai games or dog racing
events at such fronton or dog race track located
in such municipality. The executive director shall
pay each municipality in which an off-track
betting facility is located one per cent of the
total money wagered in such facility less amounts
paid as refunds or for cancellations. Payment
shall be made not less than four times a year and
not more than twelve times a year as determined by
the executive director, and shall be made from the
tax imposed pursuant to subsection (d) of this
section for horse racing, subsection (e) of this
section for dog racing, subsection (f) of this
section for jai alai games and subsection (g) of
this section for off-track betting. (2) If, for
any calendar year after the surrender of a license
to conduct jai alai events by any person or
business organization pursuant to subsection (c)
of section 12-574c and prior to the opening of any
dog race track by such person or business
organization, any other person or business
organization licensed to conduct jai alai events
is authorized to conduct a number of performances
greater than the number authorized for such
licensee in the previous calendar year, the
executive director shall pay the municipality in
which the jai alai fronton for which such license
was surrendered was located, rather than the
municipality in which the jai alai fronton
conducting the increased performances is located,
one-half of one per cent of the total money
wagered on jai alai games for such increased
performances at the fronton which conducted the
additional performances, except the executive
director shall pay each such municipality having a
population in excess of fifty thousand one per
cent of the total money wagered on jai alai games
for such increased performances at such fronton.
(3) During any state fiscal year ending on or
after June 30, 1993, the executive director shall
pay (A) each municipality in which a dog race
track was operating prior to July 5, 1991,
eight-tenths of one per cent of the total money
wagered on dog racing events at such dog race
track, except the executive director shall pay
each such municipality having a population in
excess of fifty thousand one per cent of the total
money wagered on dog racing events at such dog
race track located in such municipality and (B)
the Northeast Connecticut Economic Alliance, Inc.
two-tenths of one per cent of the total money
wagered on dog racing events at any dog race track
operating prior to July 5, 1991.
Sec. 37. Each permanent state employee
displaced by the sale of the off-track betting
system shall be offered by order of seniority, as
determined pursuant to his collective bargaining
agreement or applicable statutes, any vacancy in
state service for which the department of
administrative services determines such employee
is qualified to fill. Each such employee shall
submit a standard state application for employment
to said department which will determine the class
each employee is qualified to fill. The class
determination shall be forwarded to the employee
and all agencies in state service, who will
contact employees by order of seniority. No
vacancy existing in a state service class shall be
filled as of the effective date of this section,
until a determination of qualification is made for
each such employee who is still displaced at the
time such vacancy is to be filled and, if
appropriate, an offer of employment has been made
to each such employee. The provisions of this
section shall apply until said department
certifies to all state agencies that the rights of
all such employees have been satisfied or June 30,
1994, whichever is earlier. The provisions of this
section shall not apply to any such employee who
is made an offer of employment by the state within
a radius of twenty-five miles from the location of
his place of employment at the time of his
displacement.
Sec. 38. Section 7-175 of the general
statutes is repealed and the following is
substituted in lieu thereof:
Permits under the provisions of sections
7-170 to 7-186, inclusive, shall be of seven
kinds. "Class No. 1" permits shall allow the
operation of a raffle which shall be consummated
within three months of the granting of the permit
and the aggregate value of the prize or prizes
offered shall be not more than fifteen thousand
dollars. "Class No. 2" permits shall allow the
operation of a raffle which shall be consummated
within two months of the granting of the permit
and the aggregate value of the prize or prizes
offered shall be not more than two thousand
dollars. "Class No. 3" permits shall permit the
operation of a bazaar for a period of not more
than ten consecutive days, excluding legal
holidays and holy days on which the bazaar is not
functioning. Any bazaar held under the authority
of any such permit shall be held within six months
of the granting of such permit. "Class No. 4"
permits shall allow the operation of a raffle
which shall be consummated within one month of the
granting of the permit and the aggregate value of
the prize or prizes offered shall be not more than
one hundred dollars. "Class No. 5" permits shall
allow the operation of a raffle which shall be
consummated within six months of the granting of
the permit and the aggregate value of the prize or
prizes offered shall be not more than fifty
thousand dollars. "Class No. 6" permits shall
allow the operation of a raffle which shall be
consummated within nine months of the granting of
the permit and the aggregate value of the prize or
prizes offered shall be not more than one hundred
thousand dollars. "Class No. 7" permits shall
allow the operation of a raffle which shall be
consummated within fifteen months of the granting
of the permit, shall allow no more than twelve
prize drawings on separate dates and the aggregate
value of the prize or prizes offered shall be not
more than fifty thousand dollars. No more than one
"Class No. 1" permit, [one] TWO "Class No. 3"
[permit] PERMITS, one "Class No. 4" permit, one
"Class No. 5" permit, one "Class No. 6" permit or
three "Class No. 2" permits shall be issued to any
qualifying organization within any one calendar
year. The aggregate value of prizes offered under
any of such permits shall represent the amount
paid by the applicant for the prize or prizes or
the retail value of the same if donated.
Sec. 39. (a) All moneys received from the
sale of the off-track betting system pursuant to
the provisions of section 12-571 of the general
statutes, as amended by section 29 of this act,
shall be deposited in the general fund, except
that the treasurer shall deposit seven million
dollars in an off-track betting account, which
shall be a separate nonlapsing account within the
general fund.
(b) On July 1, 1994, the balance of the
off-track betting account shall be transfered from
such account to the general fund.
Sec. 40. Subsection (1) of section 12-411 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(1) An excise tax is hereby imposed on the
storage, acceptance, consumption or any other use
in this state of tangible personal property,
EXCLUSIVE OF MAIL ORDER PURCHASES FROM A RETAILER
OUTSIDE OF THIS STATE THE COST OF WHICH TO THE
PURCHASER IS TWO HUNDRED DOLLARS OR LESS,
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
subdivisions (i) to (l), inclusive, of subsection
(2) of section 12-407, 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, at the rate of six per cent of the
sales price of the property or the consideration
paid for any such services, except, in lieu of
said rate of six per cent, (A) at a rate of five
and one-half per cent of the sales price 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) at a rate
of four and one-half per cent of the sales price
of any motor vehicle sold 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, (C)
at a rate of twelve 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, and
(D) with respect to the storage, acceptance,
consumption or use in this state of vessels
purchased from any retailer for storage,
acceptance, consumption or any other use in this
state by any resident of another state, at a rate
which is the lesser of: (i) Six per cent of the
sales price thereof or (ii) the percentage of such
sales price that is payable as a use tax by
purchasers making purchases in the purchaser's
state of residence, provided the retailer requires
and maintains an affidavit or other evidence,
satisfactory to the commissioner, concerning the
purchaser's state of residence.
Sec. 41. Section 12-572a of the general
statutes is repealed.
Sec. 42. This act shall take effect from its
passage, except sections 21, 24 and 36 shall take
effect July 1, 1993, and provided (1) sections 1
to 3, inclusive, sections 23, 28 and 40 shall be
applicable to sales occurring on or after July 1,
1993, (2) sections 6, 9, 12, 15, 16 and 27 shall
be applicable to taxable years commencing on or
after January 1, 1993, (3) sections 7 and 10 shall
be applicable to sales occurring on or after July
1, 1993, (4) sections 8 and 11 shall be applicable
to taxes due and payable on or after January 1,
1994, (5) section 13 shall be applicable to any
tax payments or estimated tax payments due on or
after July 1, 1993, (6) sections 14, 20 and 25
shall be applicable to sales occurring on or after
January 1, 1994, and (7) section 26 shall be
applicable to sales occurring on or after January
1, 1995.
Approved June 25, 1993