Senate Bill No. 1117
               Senate Bill No. 1117

               PUBLIC ACT NO. 97-81


AN  ACT CONCERNING THE PENALTY FOR UNDERPAYMENT OF
THE PERSONAL INCOME TAX.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Subsection  (j) of section 12-722
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (j)  (1)  No  addition to tax shall be imposed
under subsection  (a)  of  this  section  for  any
taxable  year  if  the tax shown on the return for
such taxable year, or, if no return is filed,  the
tax,  reduced  by  the  tax  withheld  under  this
chapter, is [two] FIVE hundred dollars or less.
    (2)  No addition to tax shall be imposed under
said subsection (a) for any taxable  year  if  (A)
the  preceding  taxable year was a taxable year of
twelve months and (B) the individual did not  have
any  liability  for  tax for the preceding taxable
year and throughout such year the  individual  was
(i)  a  resident  individual or (ii) a nonresident
individual or part-year resident  individual  with
income,  gain,  loss  or deduction derived from or
connected with sources within this state.
    Sec.  2.  This  act shall take effect from its
passage  and  be  applicable  to   taxable   years
commencing on or after January 1, 1997.

Approved May 29, 1997