Substitute Senate Bill No. 1233
         Substitute Senate Bill No. 1233

              PUBLIC ACT NO. 97-243


AN  ACT  CONCERNING MINOR AND TECHNICAL CHANGES TO
VARIOUS TAX STATUTES.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section   12-1   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    The following words, as used in this title and
in all other  statutes  relating to the assessment
and collection of  taxes,  except  when  otherwise
indicated by the  context,  shall  be  defined  as
follows:   "Commissioner"  OR   "COMMISSIONER   OF
REVENUE  SERVICES"  means   the   Commissioner  of
Revenue   Services  OR   HIS   AUTHORIZED   AGENT;
"company"   means   any    person,    partnership,
association, company, limited liability company or
corporation, except an  incorporated municipality;
"person"   means  any   individual,   partnership,
company,  limited  liability  company,  public  or
private    corporation,   society,    association,
trustee,   executor,   administrator    or   other
fiduciary or custodian.
    Sec. 2. Subsection (a) of section 12-3a of the
general statutes is  repealed and the following is
substituted in lieu thereof:
    (a)  There  is   created   a   Penalty  Review
Committee  which  shall   consist   of  the  State
Comptroller OR AN  EMPLOYEE  OF  THE OFFICE OF THE
STATE COMPTROLLER DESIGNATED  BY SAID COMPTROLLER,
the  Secretary  of   the   Office  of  Policy  and
Management OR AN  EMPLOYEE OF THE OFFICE OF POLICY
AND MANAGEMENT DESIGNATED  BY  SAID  SECRETARY and
the  Commissioner  of   Revenue   Services  OR  AN
EMPLOYEE OF THE  DEPARTMENT  OF  REVENUE  SERVICES
DESIGNATED BY SAID  COMMISSIONER.  Said  committee
shall meet monthly  or  as  often  as necessary to
approve   any  waiver   of   penalty   which   the
Commissioner of Revenue Services, or the executive
director of the  Division  of  Special Revenue, is
authorized to waive  in accordance with this title
which is in  excess  of  five  hundred  dollars. A
majority vote of  the  committee shall be required
for approval of such waiver.
    Sec. 3. Section  12-3b of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)  There  is  created  an  Abatement  Review
Committee  which  shall   consist   of  the  State
Comptroller OR AN  EMPLOYEE  OF  THE OFFICE OF THE
STATE COMPTROLLER DESIGNATED  BY SAID COMPTROLLER,
the  Secretary  of   the   Office  of  Policy  and
Management OR AN  EMPLOYEE OF THE OFFICE OF POLICY
AND MANAGEMENT DESIGNED  BY SAID SECRETARY and the
Commissioner of Revenue Services OR AN EMPLOYEE OF
THE DEPARTMENT OF  REVENUE  SERVICES DESIGNATED BY
SAID  COMMISSIONER.  Said   committee  shall  meet
monthly or as  often  as  necessary to approve any
abatement, in whole  or in part, of tax, including
any  penalty or  interest  payable  in  connection
therewith,  which  the   Commissioner  of  Revenue
Services or the executive director of the Division
of Special Revenue is authorized to abate pursuant
to  any  provision  of  the  general  statutes.  A
majority vote of  the  committee shall be required
for approval of such abatement.
    (b) An itemized  statement  of  all abatements
approved under this  section shall be available to
the public for inspection by any person.
    (c)    The   Abatement    Review    Committee,
established pursuant to  subsection  (a)  of  this
section, may adopt regulations, in accordance with
chapter  54,  establishing   guidelines   for  the
abatement of any tax.
    Sec. 4. Section  12-15 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a)  No officer  or  employee,  including  any
former officer or former employee, of the state or
of any other  person  who  has  or  had  access to
returns or return  information  in accordance with
subdivision (2) of  subsection (c) of this section
shall disclose any  return  or return information,
except as hereinafter  provided.  The commissioner
may disclose (1)  returns or return information to
AN  AUTHORIZED  REPRESENTATIVE  OF  another  state
agency or office, upon written request by the head
of such agency  or  office,  when  required in the
course of duty  or  when there is reasonable cause
to believe that  any  state law is being violated,
provided no such  agency  or office shall disclose
such returns or  return information, other than in
a judicial or  administrative  proceeding to which
such agency or office is a party pertaining to the
enforcement of state  law,  in a form which can be
associated with, or  otherwise  identify, directly
or indirectly, a  particular taxpayer; (2) returns
or return information  to  the  Auditors of Public
Accounts, when required  in  the  course  of  duty
under   chapter  23;   (3)   returns   or   return
information to tax officers of another state or of
a Canadian province  or of a political subdivision
of such other state or province or of the District
of Columbia or to any officer of the United States
Treasury   Department   or   the   United   States
Department   of   Health   and   Human   Services,
authorized for such  purpose in accordance with an
agreement between this state and such other state,
province, political subdivision,  the  District of
Columbia   or   department,   respectively,   when
required in the  administration  of  taxes imposed
under the laws  of  such  other  state,  province,
political subdivision, the District of Columbia or
the  United  States,   respectively,  and  when  a
reciprocal  arrangement  exists;  (4)  returns  or
return  information  in   any   action,   case  or
proceeding in any court of competent jurisdiction,
when  the  commissioner   or   any   other   state
department or agency  is  a  party,  and when such
information is directly  involved  in such action,
case  or  proceeding;   (5)   returns   or  return
information  to  a   taxpayer  or  its  authorized
representative, upon written  request for a return
filed by or  return  information on such taxpayer;
(6) returns to  a  successor,  receiver,  trustee,
executor,  administrator,  assignee,  guardian  or
guarantor  of  a   taxpayer,   when   such  person
establishes,   to   the    satisfaction   of   the
commissioner,  that he  has  a  material  interest
which will be affected by information contained in
such return; (7)  information  to  the  [assessor]
CHIEF   EXECUTIVE   OFFICER   of   a   Connecticut
municipality, when the  information  disclosed  is
limited to (A) a list of real or personal property
that is or  may  be  subject  to property taxes in
such municipality or  (B)  a  list  containing the
name of each  person  who  is  issued any license,
permit or certificate which is required, under the
provisions  of this  title,  to  be  conspicuously
displayed   and   whose   address   is   in   such
municipality;  (8)  real   estate  conveyance  tax
return   information   or   controlling   interest
transfer  tax  return  information  to  the  [town
clerk] CHIEF EXECUTIVE  OFFICER  of  a Connecticut
municipality TO WHICH THE INFORMATION RELATES. Any
person who violates  any provision of this section
shall be fined  not more than one thousand dollars
or imprisoned not more than one year or both.
    (b)   Notwithstanding   the    provisions   of
subsection  (a)  of  this  section  or  any  other
provision of the  general  statutes,  any  federal
returns or return  information  made  available to
the  commissioner in  accordance  with  a  written
agreement  between  the   commissioner   and   the
Internal Revenue Service  concerning  exchange  of
information for tax administration purposes, shall
not be open  to  inspection by or disclosed to any
individual or disclosed  in  any manner other than
as permitted under  the provisions of Section 6103
of the Internal  Revenue  Code  of  1986,  or  any
subsequent corresponding internal  revenue code of
the United States, as from time to time amended.
    (c)   Notwithstanding   the    provisions   of
subsection (a) of  this  section, the commissioner
may (1) upon  request,  verify  whether or not any
license, permit or  certificate required under the
provisions  of  this  title  to  be  conspicuously
displayed has been issued by him to any particular
person; (2) pursuant to regulations promulgated by
him, disclose returns or return information to any
person to the  extent necessary in connection with
the   processing,   storage,    transmission,   or
reproduction   of   such    returns    or   return
information,  and  the  programming,  maintenance,
repair, testing, or  procurement  of equipment, or
the providing of  other  services, for purposes of
tax  administration;  (3)   refuse   to   open  to
inspection or disclose  to  any person any returns
or  return  information   made  available  to  the
commissioner by any  tax officer of another state,
a Canadian province  or  political  subdivision of
such other state or province or of the District of
Columbia or by  any  officer  of the United States
Treasury   Department   or   the   United   States
Department  of  Health   and   Human  Services  in
accordance with a  written  agreement between this
state and such  other  state,  province, political
subdivision,   the   District   of   Columbia   or
department, respectively, which agreement provides
that the disclosure  of  such  returns  or  return
information by the commissioner is prohibited; (4)
WITHOUT WRITTEN REQUEST  AND  UNLESS HE DETERMINES
THAT  DISCLOSURE  WOULD  IDENTIFY  A  CONFIDENTIAL
INFORMATION  OR  SERIOUSLY   IMPAIR   A  CIVIL  OR
CRIMINAL TAX INVESTIGATION,  DISCLOSE  RETURNS AND
RETURN INFORMATION WHICH  MAY  CONSTITUTE EVIDENCE
OF A VIOLATION  OF  ANY  CIVIL  OR CRIMINAL LAW OF
THIS STATE OR  THE  UNITED  STATES  TO  THE EXTENT
NECESSARY TO APPRISE  THE  HEAD  OF SUCH AGENCY OR
OFFICE   CHARGED  WITH   THE   RESPONSIBILITY   OF
ENFORCING SUCH LAW,  IN  WHICH  EVENT  THE HEAD OF
SUCH AGENCY OR  OFFICE  MAY  DISCLOSE  SUCH RETURN
INFORMATION  TO OFFICERS  AND  EMPLOYEES  OF  SUCH
AGENCY  OR  OFFICE  TO  THE  EXTENT  NECESSARY  TO
ENFORCE SUCH LAW.
    (d)   Notwithstanding   the    provisions   of
subsection (a) of  this  section, the commissioner
may refuse to  open to inspection or disclosure to
any   state  agency   or   office   described   in
subdivision (1) of subsection (a) of this section,
returns or return  information  unless such agency
or  office  shall   have:   (1)   Established  and
maintained,   to   the    satisfaction    of   the
commissioner, a permanent  system  of standardized
records with respect  to  any  request, the reason
for such request,  and  the  date  of such request
made by or  of it and any disclosure of returns or
return  information  made   by   or   to  it;  (2)
established and maintained, to the satisfaction of
the commissioner, a  secure area or place in which
such  returns  or   return  information  shall  be
stored; (3) restricted, to the satisfaction of the
commissioner,  access to  the  returns  or  return
information  only  to   persons  whose  duties  or
responsibilities  require  access   and   to  whom
disclosure may be  made  under  this  section; (4)
provided   such   other   safeguards   which   the
commissioner    prescribes   as    necessary    or
appropriate to protect  the confidentiality of the
returns or return  information;  (5)  furnished  a
report  to the  commissioner,  at  such  time  and
containing such information  as  the  commissioner
may  prescribe,  which  describes  the  procedures
established and utilized  by such agency or office
for ensuring the  confidentiality  of  returns and
return information required  by  this  subsection;
and (6) upon  completion of use of such returns or
return information, returned  to  the commissioner
such returns or return information, along with any
copies made therefrom,  or  makes  such returns or
return information undisclosable in such manner as
the commissioner may  prescribe  and  furnishes  a
written report to the commissioner identifying the
returns  or  return  information  that  were  made
undisclosable.
    (e) For purposes of this section:
    (1)  "Return" means  any  tax  or  information
return, declaration of  estimated  tax,  claim for
refund, license application,  permit  application,
registration  application  or   other  application
required by, or  provided  for or permitted under,
the provisions of this OR ANY OTHER title which is
filed with the  commissioner  by, on behalf of, or
with respect to  any  person, and any amendment or
supplement    thereto,    including     supporting
schedules,  attachments,  or   lists   which   are
supplemental to, or part of, the return so filed.
    (2) "Return information"  means  a  taxpayer's
identity, the nature,  source,  or  amount  of the
taxpayer's income, payments, receipts, deductions,
exemptions,  credits,  assets,   liabilities,  net
worth, tax liability,  tax  collected or withheld,
tax underreportings, tax  overreportings,  or  tax
payments, whether the  taxpayer's  return  was, is
being, or will  be  examined or subjected to other
investigation or processing,  or  any  other  data
received by, recorded  by,  prepared by, furnished
to, or collected  by the commissioner with respect
to a return  or  with respect to the determination
of  the  existence,   or  possible  existence,  of
liability of any  person  for  any  tax,  penalty,
interest, fine, forfeiture,  or  other imposition,
or offense. "Return  information" does not include
data in a form which cannot be associated with, or
otherwise  identify,  directly  or  indirectly,  a
particular  taxpayer.  Nothing  in  the  preceding
sentence, or in  any other provision of law, shall
be  construed  to   require   the   disclosure  of
standards used or  to be used for the selection of
returns for examination,  or  data  used  or to be
used  for  determining   such   standards  or  the
disclosure  of  the  identity  of  a  confidential
informant, whether or  not a civil or criminal tax
investigation has been undertaken or completed.
    (3) "Disclosure" means the making known to any
person, in any manner whatever, a return or return
information.
    Sec. 5. Section  12-30 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    [In] IF THE  COMMISSIONER  OF REVENUE SERVICES
DETERMINES THAT ANY  STATUTE  OR  REGULATION HE IS
CHARGED WITH ENFORCING IS BEING ADVERSELY AFFECTED
HE MAY IMPOSE  A  PENALTY OF FIFTY DOLLARS IN case
of A failure to file any return or report which is
required by law OR REGULATION to be filed with the
[Commissioner of Revenue Services on] COMMISSIONER
ON OR BEFORE  the  date prescribed therefor, which
failure is determined with regard to any extension
of time for  filing.  [,  unless  it is shown] THE
COMMISSIONER  MAY,  UPON  APPLICATION,  IF  IT  IS
PROVEN TO HIS  SATISFACTION  that  such failure is
due  to  reasonable   cause  and  is  not  due  to
negligence  or  intentional   disregard   of   any
provision of law  [,  there  shall  be  imposed  a
penalty  of  fifty   dollars,   provided   no]  OR
REGULATION, WAIVE ALL OR ANY PART OF SUCH PENALTY.
NO taxpayer shall  be  subject  to such penalty in
relation to any tax period for which he is subject
to a penalty  for  late  payment of a tax or to an
additional amount being  added  to the tax imposed
based on a  failure to file. [For purposes of this
section, the return  or  report required by law to
be filed with the Commissioner of Revenue Services
shall not mean  any  declaration  of estimated tax
required under this  title.]  IF  THE COMMISSIONER
DOES NOT, UPON  APPLICATION, WAIVE ALL OR ANY PART
OF SUCH PENALTY,  ANY  PERSON  AGGRIEVED  BY  SUCH
ACTION OF THE COMMISSIONER MAY, NOT LATER THAN ONE
MONTH AFTER NOTICE  OF  SUCH  ACTION  IS MAILED OR
DELIVERED TO SUCH  PERSON, APPEAL THEREFROM TO THE
SUPERIOR  COURT  FOR   THE  JUDICIAL  DISTRICT  OF
HARTFORD-NEW   BRITAIN.  THE   APPEAL   SHALL   BE
ACCOMPANIED BY A  CITATION  TO THE COMMISSIONER TO
APPEAR BEFORE SAID  COURT.  SUCH CITATION SHALL BE
SIGNED BY THE  SAME  AUTHORITY,  AND  SUCH  APPEAL
SHALL BE RETURNABLE  AT  THE  SAME TIME AND SERVED
AND RETURNED IN  THE SAME MANNER AS IS REQUIRED IN
CASE OF A SUMMONS IN A CIVIL ACTION. THE AUTHORITY
ISSUING THE CITATION SHALL TAKE FROM THE APPELLANT
A BOND OR RECOGNIZANCE TO THE STATE OF CONNECTICUT
WITH SURETY TO  PROSECUTE THE APPEAL TO EFFECT AND
TO COMPLY WITH THE ORDERS AND DECREES OF THE COURT
IN THE PREMISES.  SUCH  APPEALS SHALL BE PREFERRED
CASES, TO BE  HEARD,  UNLESS  CAUSE APPEARS TO THE
CONTRARY, AT THE FIRST SESSION, BY THE COURT OR BY
A COMMITTEE APPOINTED  BY IT. SAID COURT MAY GRANT
SUCH RELIEF AS  MAY BE EQUITABLE. IF THE APPEAL IS
WITHOUT PROBABLE CAUSE,  THE  COURT MAY TAX DOUBLE
OR TRIPLE COSTS,  AS  THE  CASE DEMANDS; AND, UPON
ALL SUCH APPEALS WHICH MAY BE DENIED, COSTS MAY BE
TAXED AGAINST THE  APPELLANT  AT THE DISCRETION OF
THE COURT, BUT NO COSTS SHALL BE TAXED AGAINST THE
STATE.
    Sec. 6. Subsection  (b)  of  section 12-39a of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) For purposes  of the timely performance of
any act which  is  required  or  permitted  to  be
performed, by a  taxpayer  or by the Department of
Revenue Services, in  connection  with (1) the tax
imposed under chapter  229, (2) THE TAX IMPOSED ON
INDIVIDUALS  WHO MAKE  PURCHASES  OF  SERVICES  OR
TANGIBLE   PERSONAL   PROPERTY,    THE    STORAGE,
ACCEPTANCE, CONSUMPTION OR  OTHER  USE OF WHICH IS
SUBJECT TO THE USE TAX UNDER CHAPTER 219, WHO HAVE
NOT PAID THE  USE TAX DUE TO ANY RETAILER REQUIRED
TO COLLECT THE  TAX,  AND  WHO MAKE SUCH PURCHASES
FOR PERSONAL USE OR CONSUMPTION IN THIS STATE, AND
NOT FOR USE OR CONSUMPTION IN CARRYING ON A TRADE,
OCCUPATION, BUSINESS OR  PROFESSION,  and  (3) the
tax imposed under  chapter  228c,  "legal holiday"
includes any legal  holiday, as defined in Section
7503 of the  Internal Revenue Code of 1986, or any
subsequent corresponding internal  revenue code of
the United States, as from time to time amended.
    Sec. 7. Section 12-201 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    When used in  this chapter, unless the context
otherwise  requires:  [,]   (1)  "Commissioner  of
Revenue  Services"  or  "commissioner"  means  the
Commissioner of Revenue  Services;  (2) "Insurance
Commissioner"    means   the    state    Insurance
Commissioner; (3) "taxpayer"  means  any insurance
company subject to  taxation  under  this chapter;
(4)  "insurance company"  means  any  corporation,
limited     liability    company,     association,
partnership or combination  of  persons  doing any
kind or form  of  insurance  business other than a
fraternal benefit society,  including  a receiver,
trustee  or  other   fiduciary  of  any  insurance
company when the  context  reasonably permits; (5)
"domestic insurance company"  means  any insurance
company chartered by  or  organized or constituted
within or under the laws of this state; (6) "local
domestic  insurance company"  means  any  domestic
insurance company more  than fifty per cent of the
total gross direct  premiums of which are received
during  the  calendar   year  next  preceding  for
insurance on property or risks located or resident
in this state;  (7)  "gross direct premiums" means
all receipts of  premiums  from  policyholders and
applicants for policies,  whether  received in the
form of money or other valuable consideration, but
excluding annuity premiums  and considerations and
premiums received for  reinsurances  assumed  from
other insurance companies  and  premiums  received
after July 1,  1990,  and  before January 1, 1995,
for any special  health  care  plan, as defined in
section 38a-564; (8)  "net  direct premiums" means
gross direct premiums  less  the  following items:
[(1)]    (A)    Returned    premiums,    including
cancellations, and [(2)]  (B)  dividends  paid  to
policyholders on direct  business,  not  including
any dividends paid  on account of the ownership of
stock; (9) "DIRECT  SUBSCRIBER  CHARGES" MEANS ALL
CHARGES MADE BY  A  HEALTH CARE CENTER, AS DEFINED
IN SECTION 38a-175,  TO SUBSCRIBERS, AS DEFINED IN
SECTION  38a-175,  BY  WHOMEVER  PAID;  (10)  "NET
DIRECT SUBSCRIBER CHARGES" MEANS DIRECT SUBSCRIBER
CHARGES   LESS   RETURNED    CHARGES,    INCLUDING
CANCELLATIONS; (11) "received" means "received" or
"accrued", construed according  to  the  method of
accounting customarily employed  by the taxpayers;
(12) "domestic insurance  holding  company"  means
any company engaged principally in the business of
holding   the   stocks   of   domestic   insurance
companies, whether or  not such holding company is
chartered  in this  state;  (13)  "life  insurance
department" or "life  insurance company" means any
department or company  engaged in writing policies
or annuities the  premiums  on  which  are charged
wholly  or  chiefly   on   the   basis  of  tables
purporting to represent  the  mortality of insured
lives or of  annuitants;  (14)  "state"  means any
state, territory or district of the United States;
and  (15)  "ocean   marine  insurance"  means  all
insurance written within  this  state  upon hulls,
freights or disbursements,  or  upon goods, wares,
merchandise and all  other  personal  property and
interests therein, in  course  of exportation from
or importation into  any country or transportation
coastwise,  including transportation  by  land  or
water from point  of  origin to final destination,
in respect to  any  and  all  risks  or  perils of
navigation, transit or  transportation,  and while
being  prepared for  and  awaiting  shipment,  and
during  any  delays,   storage,  transshipment  or
reshipment incident thereto,  including  war risks
and marine builder's risks.
    Sec. 8. Section 12-205 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    Each domestic insurance company doing business
in this state shall, on or before the first day of
March, annually, render  to  the  Commissioner  of
Revenue Services, under  oath or affirmation of at
least one of  its  principal  officers,  an annual
return, on forms  prescribed  or  furnished by the
commissioner, stating specifically the name of the
company and the  location of its principal office,
the names and locations of any subsidiary domestic
insurance   companies   or    insurance    holding
companies, the interest,  dividends,  premiums and
other  items of  gross  income  received  by  such
company and by  each  of  the  departments of such
company during the  next  preceding calendar year,
the deductions from  such items of gross income as
specified  in  this   chapter   and   such   other
information as the  commissioner  may  require for
the purpose of making any computations required by
this  chapter and  for  the  enforcement  of  this
chapter. The amount  of  tax reported to be due on
such return shall  be due and payable on or before
said first day of March. Payments shall be made in
cash or by  check,  draft  or money order drawn to
the order of the Commissioner of Revenue Services.
The commissioner may, for good cause shown, extend
the time for making the return and paying the tax,
if  a  written   request   is   filed   with   the
commissioner  together  with  a  tentative  return
which must be  accompanied by a payment of the tax
reported to be due thereon on or before said first
day of March. Any company to which an extension is
granted  shall  pay,   in  addition  to  the  tax,
interest at the  rate  of one [and two-thirds] per
cent per month  or  fraction thereof from the date
on which the  tax  would have been due without the
extension until the date of payment.
    Sec. 9. Section 12-208 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) Any [insurance  company,  hospital service
corporation, medical service corporation or entity
maintaining  an  employee  welfare  benefit  plan]
COMPANY SUBJECT TO  ANY  TAX  OR CHARGE UNDER THIS
CHAPTER THAT IS  aggrieved  by  the  action of the
commissioner or his authorized agent in fixing the
amount of any  tax,  penalty,  interest  or charge
provided for by  this  chapter  may  apply  to the
commissioner, in writing,  within sixty days after
the notice of  such  action is delivered or mailed
to it, for  a  hearing  and  a  correction  of the
amount of such  tax,  penalty, interest or charge,
so  fixed, setting  forth  the  reasons  why  such
hearing should be  granted and the amount in which
such tax, penalty,  interest  or  charge should be
reduced. The commissioner  shall promptly consider
each such application  and  may  grant or deny the
hearing requested. If  the  hearing is denied, the
applicant shall be  notified  forthwith.  If it is
granted,  the  commissioner   shall   notify   the
applicant of the  time  and  place  fixed for such
hearing. After such  hearing  the commissioner may
make such order  in the premises as appears to him
just and lawful  and  shall furnish a copy of such
order to the  applicant.  The commissioner may, by
notice in writing,  at any time within three years
after the date  when any return of any such person
has  been  due,   order   a  hearing  on  his  own
initiative and require  such  person  or any other
individual whom he believes to be in possession of
relevant  information concerning  such  person  to
appear before him or his authorized agent with any
specified  books  of   account,  papers  or  other
documents, for examination under oath.
    (b) Any [insurance  company,  hospital service
corporation, medical service corporation or entity
maintaining  an  employee  welfare  benefit  plan]
COMPANY SUBJECT TO  ANY  TAX  OR CHARGE UNDER THIS
CHAPTER THAT IS  aggrieved  because  of any order,
decision,  determination or  disallowance  of  the
Commissioner of Revenue  Services  made under this
chapter may, within  one  month  after  service of
notice of such  order,  decision, determination or
disallowance,  take an  appeal  therefrom  to  the
superior  court  for   the  judicial  district  of
Hartford-New  Britain*,  which   appeal  shall  be
accompanied by a  citation  to the Commissioner of
Revenue Services to appear before said court. Such
citation shall be  signed  by  the same authority,
and such appeal  shall  be  returnable at the same
time and served  and  returned in the same manner,
as is required  in  case  of  a summons in a civil
action. The authority  issuing  the citation shall
take from the  appellant a bond or recognizance to
the  state  of   Connecticut,   with   surety,  to
prosecute the appeal  to effect and to comply with
the  orders  and  decrees  of  the  court  in  the
premises. Such appeals  shall  be preferred cases,
to be heard, unless cause appears to the contrary,
at  the first  session,  by  the  court  or  by  a
committee appointed by  the  court. Said court may
grant such relief as may be equitable and, if such
tax or charge  has been paid prior to the granting
of such relief,  may  order the STATE Treasurer to
pay the amount  of  such  relief, with interest at
the rate of  two-thirds  of one per cent per month
or fraction thereof,  to such aggrieved person. If
the appeal has  been taken without probable cause,
the court may  tax  double or triple costs, as the
case demands; and, upon all such appeals which are
denied, costs may  be  taxed against the appellant
at the discretion of the court, but no costs shall
be taxed against the state.
    Sec. 10. Subdivision  (1) of subsection (g) of
section 12-218 of the general statutes is repealed
and the following is substituted in lieu thereof:
    (g) (1) Any  taxpayer that provides securities
brokerage services, as defined in this subsection,
may elect, on  or  before  the  due  date  or,  if
applicable,  the  extended   due   date,   of  its
corporation business tax return for an income year
commencing  on  or   after  January  1,  1996,  to
apportion  its net  income  derived,  directly  or
indirectly,  from rendering  securities  brokerage
services   in  the   manner   provided   in   this
subsection. The election, if made by the taxpayer,
shall be irrevocable for, and applicable for, five
successive income years.  Income  derived  by such
taxpayer from sources  other than the rendering of
securities brokerage services shall be apportioned
as provided in this [subsection] SECTION.
    Sec.  11.  Section   12-285a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    For  purposes of  sections  12-286a,  12-295a,
12-314a, 12-315a and  subsection  (a)  of  section
53-344:   [,  "distributor"]   (1)   "DISTRIBUTOR"
includes a manufacturer  of  tobacco  products (2)
"SALE" OR "SELL"  MEANS  AN ACT DONE INTENTIONALLY
BY  ANY  PERSON,   WHETHER   DONE   AS  PRINCIPAL,
PROPRIETOR,  AGENT,  SERVANT   OR   EMPLOYEE,   OF
TRANSFERRING,  OR  OFFERING   OR   ATTEMPTING   TO
TRANSFER, FOR CONSIDERATION, CIGARETTES OR TOBACCO
PRODUCTS, INCLUDING BARTERING  OR  EXCHANGING,  OR
OFFERING  TO BARTER  OR  EXCHANGE,  CIGARETTES  OR
TOBACCO PRODUCTS; (3)  "GIVE" OR "GIVING" MEANS AN
ACT DONE INTENTIONALLY BY ANY PERSON, WHETHER DONE
AS  PRINCIPAL,  PROPRIETOR,   AGENT,   SERVANT  OR
EMPLOYEE,   OF  TRANSFERRING,   OR   OFFERING   OR
ATTEMPTING  TO  TRANSFER,  WITHOUT  CONSIDERATION,
CIGARETTES OR TOBACCO  PRODUCTS;  (4) "DELIVER" OR
"DELIVERING" MEANS AN  ACT  DONE  INTENTIONALLY BY
ANY  PERSON,  WHETHER  AS  PRINCIPAL,  PROPRIETOR,
AGENT, SERVANT OR  EMPLOYEE,  OF  TRANSFERRING, OR
OFFERING  OR  ATTEMPTING   TO  TRANSFER,  PHYSICAL
POSSESSION OR CONTROL  OF  CIGARETTES  OR  TOBACCO
PRODUCTS.
    Sec. 12. Subsection  (2)  of section 12-407 of
the general statutes,  as amended by section 49 of
public act 95-160,  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,
exclusive of services  of off-duty police officers
at construction sites,  (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  in  the
voluntary   evaluation,   prevention,   treatment,
containment  or removal  of  hazardous  waste,  as
defined in section  22a-115, or other contaminants
of air, water  or  soil, provided income-producing
property   shall   not   include   property   used
exclusively for residential  purposes in which the
owner resides and  which  contains  no  more  than
three dwelling units,  or  a  housing facility for
low and moderate income families and persons owned
OR   OPERATED  by   [an]   A   NONPROFIT   HOUSING
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] AS
DEFINED IN SUBSECTION  (29)  OF SECTION 12-412, AS
AMENDED BY SECTION  21  OF  THIS ACT, (J) business
analysis,  management, management  consulting  and
public   relations   services,    excluding    any
environmental  consulting 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, (ii)  space in a parking lot owned
or leased under  the  terms of a lease of not less
than  ten  years   duration  and  operated  by  an
employer for the  exclusive  use of its employees,
(iii) valet parking  provided  at any airport, and
(iv)   space  in   municipally-operated   railroad
parking  facilities  in   municipalities   located
within an area of the state designated as a severe
nonattainment area for  ozone  under  the  federal
Clean Air Act,  (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)  lobbying  or  consulting
services   for  purposes   of   representing   the
interests of a client in relation to the functions
of any governmental entity or instrumentality, (S)
services of the agent of any person in relation to
the sale of any item of tangible personal property
for such person,  exclusive  of  the services of a
consignee selling works  of  art,  as  defined  in
subsection (b) of  section 12-376c, or articles of
clothing or footwear  intended  to  be  worn on or
about the human  body  other  than (i) any special
clothing  or  footwear   primarily   designed  for
athletic activity or  protective  use and which is
not  normally  worn   except  when  used  for  the
athletic activity or  protective  use for which it
was designed and  (ii) jewelry, handbags, luggage,
umbrellas,  wallets,  watches  and  similar  items
carried on or about the human body but not worn on
the body in  the manner characteristic of clothing
intended for exemption  under  subdivision (47) of
section 12-412, under  consignment,  exclusive  of
services provided by  an auctioneer, (T) locksmith
services,  (U)  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,  (V)  landscaping   and  horticulture
services,  (W)  window   cleaning   services,  (X)
maintenance services, (Y) janitorial services, (Z)
exterminating   services,   (AA)   swimming   pool
cleaning and maintenance services, (BB) 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,  (CC)
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
(i)  services  rendered   by   massage  therapists
licensed  pursuant  to   chapter  384a,  and  (ii)
services rendered by  a hypertrichologist licensed
pursuant  to  chapter  388,  (DD)  any  repair  or
maintenance  service  to   any  item  of  tangible
personal  property  including   any   contract  of
warranty or service related to any such item; (EE)
business   analysis,   management    or   managing
consulting services rendered by a general partner,
or an affiliate thereof, to a limited partnership,
provided  (i) that  the  general  partner,  or  an
affiliate   thereof,  is   compensated   for   the
rendition of such  services  other  than through a
distributive share of  partnership  profits  or an
annual percentage of partnership capital or assets
established in the  limited partnership's offering
statement, and (ii)  the  general  partner,  or an
affiliate thereof, offers such services to others,
including  any  other   partnership.  As  used  in
subparagraph (EE)(i) "an  affiliate  of  a general
partner" means an  entity  which  is  directly  or
indirectly owned fifty  per cent or more in common
with a general  partner;  and (FF) notwithstanding
the provisions of  section  12-412,  AS AMENDED BY
SECTIONS 21 TO  25, INCLUSIVE, OF THIS ACT, except
subsection (87) thereof, patient care services, as
defined in subsection  (30)  of  this section by a
hospital; (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 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. 13. Subsections  (8)  and  (9) of section
12-407 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (8) (A) "Sales  price"  means the total amount
for which tangible  personal property is sold BY A
RETAILER, 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]  FOR  WHICH  OCCUPANCY  OF  A  ROOM  IS
TRANSFERRED BY AN  OPERATOR,  THE TOTAL AMOUNT FOR
WHICH ANY SERVICE  DESCRIBED  IN SUBSECTION (2) OF
THIS SECTION IS  RENDERED  BY  A  RETAILER  OR THE
TOTAL AMOUNT OF  PAYMENT  OR PERIODIC PAYMENTS FOR
WHICH TANGIBLE PERSONAL  PROPERTY  IS  LEASED BY A
RETAILER, WHICH AMOUNT  IS  DUE  AND  OWING TO THE
RETAILER  OR  OPERATOR   AND,   SUBJECT   TO   THE
PROVISIONS OF SUBSECTION (1) OF SECTION 12-408, AS
AMENDED BY SECTION  17 OF THIS ACT, WHETHER OR NOT
ACTUALLY RECEIVED BY  THE  RETAILER  OR  OPERATOR,
without any deduction  on  account  of  any of the
following: [(a)] (i)  The  cost  of  the  property
sold; [(b)] (ii) the cost of materials used, labor
or service cost,  interest  charged, losses or any
other expenses; [(c)] (iii) 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] SUBPARAGRAPH
(A) (iii) shall  not apply to any item exempt from
taxation pursuant to section 12-412, AS AMENDED BY
SECTIONS 21 TO  25,  INCLUSIVE,  OF THIS ACT. Such
total amounts include  [all  of the following: (a)
Any] ANY services  that  are  a  part of the sale;
[(b)] any amount  for which credit is given to the
purchaser  by  the   seller   [;   (c)]   AND  all
compensation and all  employment-related expenses,
whether or not  separately  stated,  paid to or on
behalf of employees  of  a retailer of any service
described in [subdivision  (i)  of] subsection (2)
of  this  section.  (B)  "Sales  price"  does  not
include  any of  the  following:  [(a)]  (i)  Cash
discounts allowed and  taken  on sales; [(b)] (ii)
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)] (iii)
the  amount  of   any   tax,   not  including  any
manufacturers' or importers'  excise  tax, imposed
by the United  States  upon  or  with  respect  to
retail sales whether  imposed upon the retailer or
the consumer; [(d)]  (iv)  the  amount charged for
labor  rendered  in  installing  or  applying  the
property sold, provided  such charge is separately
stated  and  exclusive  of  such  charge  for  any
service   rendered   within    the    purview   of
subparagraph (I) of  subdivision (i) of subsection
(2) of this  section; [(e)] (v) the amount charged
for   separately   stated   compensation,   fringe
benefits, workers' compensation  and payroll taxes
or assessments paid  to  or on behalf of employees
of a retailer  who  has  contracted  to  manage  a
service recipient's property  or business premises
and  renders  management   services  described  in
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  [(f)]  (vi)  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)  (A)  "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]  FROM   RETAIL  SALES  OF  TANGIBLE
PERSONAL PROPERTY BY  A RETAILER, THE TOTAL AMOUNT
OF THE RENT  FROM  TRANSFERS OF OCCUPANCY OF ROOMS
BY AN OPERATOR,  THE  TOTAL  AMOUNT  OF  THE SALES
PRICE FROM RETAIL  SALES  OF ANY SERVICE DESCRIBED
IN SUBSECTION (2) OF THIS SECTION BY A RETAILER OF
SERVICES,  OR  THE  TOTAL  AMOUNT  OF  PAYMENT  OR
PERIODIC  PAYMENTS  FROM   LEASES  OR  RENTALS  OF
TANGIBLE PERSONAL PROPERTY  BY  A RETAILER, VALUED
IN MONEY, WHETHER  RECEIVED IN MONEY OR OTHERWISE,
WHICH AMOUNT IS  DUE  AND OWING TO THE RETAILER OR
OPERATOR  AND,  SUBJECT   TO   THE  PROVISIONS  OF
SUBSECTION (1) OF  SECTION  12-408,  AS AMENDED BY
SECTION 18 OF  THIS  ACT,  WHETHER OR NOT ACTUALLY
RECEIVED BY THE  RETAILER OR OPERATOR, without any
deduction on account  of  any  of  the  following:
[(a)] (i) The  cost of the property sold; however,
in  accordance  with   such   regulations  as  the
Commissioner of Revenue  Services may prescribe, a
deduction  may  be   taken  if  the  retailer  has
purchased property for  some  other  purpose  than
resale, has reimbursed  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)] (ii) the cost of the materials
used, labor or service cost, interest paid, losses
or any other  expense;  [(c)]  (iii)  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, AS  AMENDED  BY SECTIONS 21 TO 25,
INCLUSIVE, OF THIS  ACT.  The  total amount of the
sales price includes  [all  of  the following: (a)
Any] 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)]
AND all compensation  and  all  employment-related
expenses, whether or  not  separately stated, paid
to or on  behalf of employees of a retailer of any
service   described  in   [subdivision   (i)   of]
subsection (2) of  this  section,  AS  AMENDED  BY
SECTION 12 OF  THIS  ACT.  (B) "Gross receipts" do
not include any  of  the following: [(a)] (i) Cash
discounts allowed and  taken  on sales; [(b)] (ii)
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)] (iii) the
amount   of   any    tax,    not   including   any
manufacturers' or importers'  excise  tax, imposed
by the United  States  upon  or  with  respect  to
retail sales whether  imposed upon the retailer or
the consumer; [(d)]  (iv)  the  amount charged for
labor  rendered  in  installing  or  applying  the
property sold, provided  such charge is separately
stated  and  exclusive  of  such  charge  for  any
service   rendered   within    the    purview   of
subparagraph (I) of  subdivision (i) of subsection
(2) of this  section; [(e)] (v) the amount charged
for   separately   stated   compensation,   fringe
benefits, workers' compensation  and payroll taxes
or assessments paid  to  or on behalf of employees
of a retailer  who  has  contracted  to  manage  a
service recipient's property  or business premises
and  renders  management   services  described  in
subdivision (i) of subsection (2) of this section,
AS AMENDED BY  SECTION  12  OF  THIS ACT, 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  [(f)]  (vi)  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. 14. Subsection  (12) of section 12-407 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (12)  "Retailer"  includes:  [(a)]  (A)  Every
person engaged in  the business of making sales at
retail or in  the  business of making retail sales
at auction of  tangible personal property owned by
the  person or  others;  [(b)]  (B)  every  person
engaged  in  the  business  of  making  sales  for
storage,  use  or  other  consumption  or  in  the
business of making  sales  at  auction of tangible
personal property owned  by  the  person or others
for storage, use  or  other consumption; [(c)] (C)
every operator as  defined  in  subsection (18) of
this section; [(d)] (D) every seller rendering any
service   described  in   [subdivision   (i)   of]
subsection (2) of  this  section;  [(e)] (E) every
person under whom  any  salesman,  representative,
peddler or canvasser  operates  in  this state, or
from whom such  salesman,  representative, peddler
or  canvasser  obtains   the   tangible   personal
property that is sold; [(f)] (F) every person with
whose assistance any  seller is enabled to solicit
orders within this  state;  [(g)] (G) every person
making retail sales  from  outside this state to a
destination within this  state and not maintaining
a place of  business  in this state who engages in
regular or systematic  solicitation  of  sales  of
tangible personal property in this state [(A)] (i)
by the display  of advertisements on billboards or
other outdoor advertising  in  this  state,  [(B)]
(ii) by the distribution of catalogs, periodicals,
advertising flyers or  other  advertising by means
of print, radio or television media or [(C)] (iii)
by  mail,  telegraphy,  telephone,  computer  data
base,   cable,   optic,    microwave    or   other
communication system, for the purpose of effecting
retail  sales  of   tangible   personal  property,
provided such person  has made one hundred or more
retail   sales  from   outside   this   state   to
destinations   within  this   state   during   the
twelve-month  period  ended   on   the   September
thirtieth  immediately preceding  the  monthly  or
quarterly  period  with   respect  to  which  such
person's liability for  tax  under this chapter is
determined;  [(h)]  (H)   any   person   owned  or
controlled, either directly  or  indirectly,  by a
retailer engaged in  business  in this state which
is the same  as or similar to the line of business
in which such  person  so  owned  or controlled is
engaged; [(i)] (I) any person owned or controlled,
either  directly  or   indirectly,   by  the  same
interests that own  or control, either directly or
indirectly, a retailer engaged in business in this
state which is  the same as or similar to the line
of business in  which  such  person  so  owned  or
controlled is engaged; [(j)] (J) any assignee of a
person engaged in the business of leasing tangible
personal property to others, where leased property
of such person  which is subject to taxation under
this chapter is  situated  within  this  state and
such assignee has  a security interest, as defined
in subsection (37)  of  section 42a-1-201, in such
property.
    Sec. 15. Subsection  (27) of section 12-407 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (27)  "Community antenna  television  service"
means (1) the  one-way transmission to subscribers
of  video  programming   or  information  [that  a
community   antenna   television   company   makes
available to all  subscribers generally] BY CABLE,
FIBER OPTICS, SATELLITE,  MICROWAVE  OR  ANY OTHER
MEANS, and subscriber  interaction,  if any, which
is  required  for  the  selection  of  such  video
programming  or  information   and   (2)  noncable
communications  service,  as  defined  in  section
16-1.
    Sec.  16.  Section   12-407   of  the  general
statutes is amended  by  adding subsection (30) as
follows:
    (NEW) (30) "Another  state"  or  "other state"
means  any state  of  the  United  States  or  the
District  of  Columbia   excluding  the  state  of
Connecticut.
    Sec. 17. Subsection  (1)  of section 12-408 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (1) For the  privilege  of making any sales as
defined in subsection  (2)  of  section 12-407, AS
AMENDED BY SECTION  12  OF THIS ACT, at retail, in
this state for  a  consideration,  a tax is hereby
imposed on all  retailers  at  the rate of six per
cent of the  gross  receipts  of any retailer from
the sale of all tangible personal property sold at
retail  or from  the  rendering  of  any  services
constituting a sale  in accordance with subsection
(2) of section 12-407, AS AMENDED BY SECTION 12 OF
THIS ACT, except,  in lieu of said rate of six per
cent, (A) at  a rate of five and one-half per cent
of the gross  receipts  of  any  retailer from the
sale   of  any   repair   or   replacement   parts
exclusively for use  in  machinery,  as defined in
subsection (34) of  section  12-412, used directly
in a manufacturing  [or  agricultural]  production
process, (B) at  a  rate  of  twelve per cent with
respect to each  transfer  of  occupancy, from the
total amount of  rent  received for such occupancy
of any room  or  rooms in a hotel or lodging house
for  the  first   period   not   exceeding  thirty
consecutive calendar days,  (C) [at a rate of four
and one-half per cent of the gross receipts of any
retailer from the sale of any motor vehicle to any
person]  WITH RESPECT  TO  THE  SALE  OF  A  MOTOR
VEHICLE TO ANY  INDIVIDUAL  who is a member of the
armed  forces of  the  United  States  and  is  on
full-time active duty  in  Connecticut  [but whose
permanent residence is  in  another state] AND WHO
IS CONSIDERED, UNDER 50 APP USC 574, A RESIDENT OF
ANOTHER STATE, AT  A RATE OF FOUR AND ONE-HALF PER
CENT OF THE  GROSS  RECEIPTS  OF ANY RETAILER FROM
SUCH SALES, PROVIDED  SUCH  RETAILER  REQUIRES AND
MAINTAINS   AN  AFFIDAVIT   OR   OTHER   EVIDENCE,
SATISFACTORY TO THE  COMMISSIONER,  CONCERNING THE
PURCHASER'S STATE OF  RESIDENCE  UNDER  50 APP USC
574, (D) with  respect to the [sales of vessels to
any resident of another state] SALE OF A VESSEL TO
ANY INDIVIDUAL WHO  DOES  NOT MAINTAIN A PERMANENT
PLACE OF ABODE IN THIS STATE AND WHO IS A RESIDENT
OF ANOTHER STATE  AND  WHO  DOES  NOT PRESENT SUCH
VESSEL FOR REGISTRATION  WITH  THE  DEPARTMENT  OF
MOTOR VEHICLES IN  THIS  STATE, at a rate which is
the lesser of:  (i)  Six  per  cent  of  the gross
receipts of any  retailer  from such sales or (ii)
the percentage of  such  gross  receipts  that  is
payable as a  STATE sales tax by retailers engaged
in business in the purchaser's state of residence,
provided such retailer  requires  and maintains an
affidavit or other  evidence,  satisfactory to the
commissioner, concerning the  purchaser's state of
residence,  (E)  with  respect  to  the  sales  of
computer and data processing services occurring on
or after July  1, 1997, and prior to July 1, 1998,
at the rate  of five per cent, on or after July 1,
1998, and prior  to  July  1, 1999, at the rate of
four per cent, on or after July 1, 1999, and prior
to July 1, 2000, at the rate of three per cent, on
or after July  1, 2000, and prior to July 1, 2001,
at the rate  of two per cent, on and after July 1,
2001, and prior  to  July  1, 2002, at the rate of
one per cent  and  on and after July 1, 2002, such
services shall be  exempt  from  such tax, and (F)
with respect to the sales of repair or maintenance
services on vessels  as defined in section 15-127,
occurring on or  after  July 1, 1997, and prior to
July 1, 1998,  at the rate of four per cent, on or
after July 1,  1998, and prior to July 1, 1999, at
the rate of  two per cent and on and after July 1,
1999, such services shall be exempt from such tax.
The rate of  tax  imposed by this chapter shall be
applicable to all  retail sales upon the effective
date of such  rate,  except  that a new rate which
represents an increase  in  the rate applicable to
the sale shall  not apply to any sales transaction
wherein  a  binding   sales  contract  without  an
escalator clause has  been  entered  into prior to
the effective date of the new rate and delivery is
made within ninety  days  after the effective date
of the new  rate.  For  the purposes of payment of
the tax imposed  under  this section, any retailer
of  services  taxable  under  subdivision  (i)  of
subsection (2) of  section  12-407,  AS AMENDED BY
SECTION  12 OF  THIS  ACT,  who  computes  taxable
income,  for  purposes   of   taxation  under  the
Internal Revenue Code  of  1986, or any subsequent
corresponding internal revenue  code of the United
States,  as from  time  to  time  amended,  on  an
accounting basis which  recognizes  only  cash  or
other valuable consideration  actually received as
income and who  is liable for such tax only due to
the rendering of  such  services may make payments
related to such  tax  for  the period during which
such  income  is   received,  without  penalty  or
interest, without regard  to  when such service is
rendered. INFORMATION ABOUT  THE  STATE  SALES TAX
RATE  OF OTHER  STATES  SHALL,  UPON  REQUEST,  BE
FURNISHED BY THE COMMISSIONER.
    Sec. 18. Subsections  (1)  and  (2) of section
12-410 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (1)   For   the    purpose   of   the   proper
administration  of this  chapter  and  to  prevent
evasion of the sales tax it shall be presumed that
all RECEIPTS ARE  gross  receipts THAT are subject
to the tax  until the contrary is established. The
burden of proving that a sale of tangible personal
property or service  is  not  a  sale at retail is
upon the person who makes the sale unless he takes
IN GOOD FAITH  from the purchaser a certificate to
the effect that  the  property  is  purchased  for
resale.
    (2) The certificate  relieves  the seller from
the burden of  proof  only  if taken in good faith
from a person  who  is  engaged in the business of
selling tangible personal  property  and who holds
the permit provided for in section 12-409 and who,
at the time  of  purchasing  the tangible personal
property: (A) Intends  to  sell  it in the regular
course of business;  (B)  intends  to utilize such
personal property in  the  delivery of landscaping
or [horticultural] HORTICULTURE services, provided
the total sale  price  of all such landscaping and
[horticultural] HORTICULTURE services  are taxable
under this chapter  or  (C) is unable to ascertain
at the time  of purchase whether the property will
be sold or  will  be  used for some other purpose.
THE BURDEN OF  ESTABLISHING  THAT A CERTIFICATE IS
TAKEN  IN  GOOD   FAITH   IS   ON  THE  SELLER.  A
certificate  to  the   effect   that  property  is
purchased for resale  taken  from the purchaser by
the seller shall  be  deemed  to  be taken in good
faith if the  tangible personal property purchased
is similar to  or of the same general character as
property which the  seller could reasonably assume
would be sold  by  the  purchaser  in  the regular
course of business.
    Sec. 19. 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,]  SUBSECTION  (2)  OF
SECTION 12-407, AS  AMENDED  BY SECTION 12 OF THIS
ACT, PURCHASED FROM  ANY  RETAILER FOR CONSUMPTION
OR USE IN  THIS STATE, OR the storage, acceptance,
consumption or any  other  use  in  this  state of
tangible   personal  property   which   has   been
manufactured, fabricated, assembled  or  processed
from  materials by  a  person,  either  within  or
without  this  state,   for  storage,  acceptance,
consumption or any  other  use  by  such person in
this state, to  be  measured by the sales price of
materials, at the  rate  of  six  per  cent of the
sales price of  [the property or the consideration
paid for any]  such  PROPERTY OR 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] WITH
RESPECT TO THE STORAGE, ACCEPTANCE, CONSUMPTION OR
USE OF ANY  REPAIR  OR REPLACEMENT PARTS PURCHASED
FROM  ANY  RETAILER   FOR   STORAGE,   ACCEPTANCE,
CONSUMPTION OR USE  IN  THIS STATE, AT THE RATE OF
FIVE AND ONE-HALF  PER  CENT OF THE SALES PRICE OF
SUCH PARTS, PROVIDED  SUCH  PARTS  ARE exclusively
for use in  machinery,  as  defined  in subsection
(34) of section 12-412, THAT IS 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)] (B) 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, (C)  WITH  RESPECT  TO THE STORAGE,
ACCEPTANCE, CONSUMPTION OR  USE IN THIS STATE OF A
MOTOR  VEHICLE PURCHASED  FROM  ANY  RETAILER  FOR
STORAGE, ACCEPTANCE, CONSUMPTION  OR  USE  IN THIS
STATE BY ANY  INDIVIDUAL  WHO  IS  A MEMBER OF THE
ARMED  FORCES OF  THE  UNITED  STATES  AND  IS  ON
FULL-TIME ACTIVE DUTY  IN  CONNECTICUT  AND WHO IS
CONSIDERED, UNDER 50  APP  USC  574, A RESIDENT OF
ANOTHER STATE, AT  A RATE OF FOUR AND ONE-HALF PER
CENT OF THE  SALES PRICE OF SUCH VEHICLE, PROVIDED
SUCH RETAILER REQUIRES  AND MAINTAINS AN AFFIDAVIT
OR   OTHER   EVIDENCE,    SATISFACTORY    TO   THE
COMMISSIONER, CONCERNING THE  PURCHASER'S STATE OF
RESIDENCE UNDER 50  APP  USC 574, (D) with respect
to the storage,  acceptance, consumption or use in
this state of  [vessels]  A  VESSEL purchased from
any retailer for  storage, acceptance, consumption
or any other  use  in this state by any INDIVIDUAL
WHO DOES NOT  MAINTAIN  A PERMANENT PLACE OF ABODE
IN THIS STATE  AND  WHO  IS  A resident of another
state AND WHO  DOES  NOT  PRESENT  SUCH VESSEL FOR
REGISTRATION WITH THE DEPARTMENT OF MOTOR VEHICLES
IN THIS STATE,  at  a rate which is the lesser of:
(i) Six per  cent  of the sales price [thereof] OF
SUCH VESSEL or  (ii)  the percentage of such sales
price that is  payable  as  a  STATE  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,  [and]  (E)  with
respect to the  sales  of  repair  or  maintenance
services on vessels  as defined in section 15-127,
occurring on or  after  July 1, 1997, and prior to
July 1, 1998,  at the rate of four per cent, on or
after July 1,  1998, and prior to July 1, 1999, at
the rate of  two per cent and on and after July 1,
1999, such services shall be exempt from such tax,
AND (F) WITH  RESPECT TO THE ACCEPTANCE OR RECEIPT
IN THIS STATE  OF  COMPUTER  AND  DATA  PROCESSING
SERVICES   PURCHASED   FROM   ANY   RETAILER   FOR
CONSUMPTION OR USE  IN  THIS STATE OCCURRING ON OR
AFTER JULY 1,  1997, AND PRIOR TO JULY 1, 1998, AT
THE RATE OF  FIVE PER CENT OF SUCH SERVICES, ON OR
AFTER JULY 1,  1998, AND PRIOR TO JULY 1, 1999, AT
THE RATE OF  FOUR PER CENT OF SUCH SERVICES, ON OR
AFTER JULY 1,  1999, AND PRIOR TO JULY 1, 2000, AT
THE RATE OF THREE PER CENT OF SUCH SERVICES, ON OR
AFTER JULY 1,  2000, AND PRIOR TO JULY 1, 2001, AT
THE RATE OF  TWO PER CENT OF SUCH SERVICES, ON AND
AFTER JULY 1,  2001, AND PRIOR TO JULY 1, 2002, AT
THE RATE OF  ONE  PER CENT OF SUCH SERVICES AND ON
AND AFTER JULY  1,  2002,  SUCH  SERVICES SHALL BE
EXEMPT FROM SUCH  TAX. INFORMATION ABOUT THE STATE
USE TAX RATE  OF OTHER STATES SHALL, UPON REQUEST,
BE FURNISHED BY THE COMMISSIONER.
    Sec. 20. Subsection  (7)  of section 12-411 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (7) Any person  violating  the  provisions  of
subsection (3), (5)  or  (6)  shall  be fined five
hundred dollars FOR EACH OFFENSE.
    Sec. 21. Subsection  (29) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (29) Sales of  and  the  storage, use or other
consumption of tangible personal property acquired
for incorporation into or used and consumed in the
operation  of  housing   facilities  for  low  and
moderate income families  and persons AND SALES OF
AND THE ACCEPTANCE,  USE  OR  OTHER CONSUMPTION OF
ANY SERVICE DESCRIBED IN SUBSECTION (2) OF SECTION
12-407, AS AMENDED BY SECTION 12 OF THIS ACT, THAT
IS  USED  AND   CONSUMED   IN   THE   DEVELOPMENT,
CONSTRUCTION,  REHABILITATION, RENOVATION,  REPAIR
OR OPERATION OF  HOUSING  FACILITIES  FOR  LOW AND
MODERATE  INCOME FAMILIES  AND  PERSONS,  provided
such   facilities  are   constructed   under   the
sponsorship of and  owned or operated by nonprofit
housing organizations. BEFORE  ANY EXEMPT SALES OR
PURCHASES MAY BE  MADE  UNDER THIS SUBSECTION, THE
NONPROFIT  HOUSING  ORGANIZATION   SPONSORING  THE
CONSTRUCTION  OF  OR   OWNING  OR  OPERATING  SUCH
HOUSING   FACILITY   SHALL    OBTAIN    FROM   THE
COMMISSIONER A LETTER  OF  DETERMINATION  THAT THE
NONPROFIT   HOUSING   FACILITY    HAS,    TO   THE
SATISFACTION OF SAID  COMMISSIONER,  MET  ALL  THE
REQUIREMENTS FOR EXEMPTION  UNDER THIS SUBSECTION.
AT THE TIME OF ANY SALE OR PURCHASE THAT IS EXEMPT
UNDER THIS SUBSECTION, THE PURCHASER SHALL PRESENT
TO THE RETAILER A COPY OF THE DETERMINATION LETTER
THAT  WAS  ISSUED   TO   THE   NONPROFIT   HOUSING
ORGANIZATION TOGETHER WITH  A CERTIFICATE FROM THE
PURCHASER, IN SUCH  FORM  AS  THE COMMISSIONER MAY
PRESCRIBE, CERTIFYING THAT  THE  TANGIBLE PERSONAL
PROPERTY OR SERVICES THAT ARE BEING PURCHASED FROM
THE  RETAILER  ARE   TO   BE   USED   OR  CONSUMED
EXCLUSIVELY FOR THE PURPOSES OF INCORPORATION INTO
OR    IN    THE     DEVELOPMENT,     CONSTRUCTION,
REHABILITATION, RENOVATION, REPAIR OR OPERATION OF
THE HOUSING FACILITY  IDENTIFIED  IN THE LETTER OF
DETERMINATION.   For   the    purposes   of   this
subsection, (A) "nonprofit  housing  organization"
means any [Connecticut]  organization which has as
one of its purposes the development, construction,
sponsorship or ownership  of  housing  for low and
moderate income families AS STATED IN ITS CHARTER,
IF IT IS  INCORPORATED,  OR  ITS  CONSTITUTION  OR
BYLAWS, IF IT  IS  UNINCORPORATED,  and  which has
received exemption from  federal  income tax under
the provisions of  Section  501(c) of the Internal
Revenue  Code,  as  amended  from  time  to  time,
provided the charter  of  such organization, if it
is incorporated, or its constitution or bylaws, if
unincorporated, shall contain  a provision that no
officer, member or  employee thereof shall receive
or at any  future  time  may receive any pecuniary
profit  from  the   operation  thereof,  except  a
reasonable compensation for  services in effecting
the purposes of  the  organization;  (B)  "housing
facilities"  means  facilities   having  as  their
primary purpose the provision of safe and adequate
housing  and  related   facilities   for  low  and
moderate    income    families     and    persons,
notwithstanding that said  housing  provides other
dwelling accommodations in addition to the primary
purpose of providing  dwelling  accommodations for
low and moderate  income  families;  (C)  "related
facilities"  means  those  facilities  defined  in
subsection (d) of  section 8-243; and (D) "low and
moderate income families"  means those families as
defined in subsection (h) of said section 8-243.
    Sec. 22. Subsection  (62) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (62)  Subject to  the  provisions  of  section
12-412f, sales of  any  of the services enumerated
in subdivision (i)  of  subsection  (2) of section
12-407, AS AMENDED  BY  SECTION 12 OF THIS ACT, on
or after July  1,  1987,  which are rendered for a
corporation   affiliated  with   the   corporation
rendering such service  in  such manner that [(1)]
(A) either corporation in such transaction owns or
controls either directly  or  indirectly  not less
than one hundred  per cent of the capital stock of
the  other  corporation   or   [(2)]   (B)  either
corporation  in  such   transaction  is  owned  or
controlled  either  directly   or   indirectly  by
interests which own  or control either directly or
indirectly not less  than  one hundred per cent of
the capital stock  of  the  other  corporation. [,
provided  any such  transaction  is  rendered  for
purposes  of  expense   allocation   and  not  for
purposes of profit  for the company rendering such
service.]
    Sec. 23. Subsections  (71) and (72) of section
12-412 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (71) Sales of  and  the  storage, use or other
consumption   of  machinery,   equipment,   tools,
materials   and   supplies    used   [exclusively]
PREDOMINANTLY  in  the   production   of   printed
material by a commercial printer or publisher. For
purposes of this  subsection,  "the  production of
printed  material"  is   defined  to  include  all
processes  necessary to  convert  manuscript  copy
into printed material,  including  but not limited
to, layout, color separation and typesetting.
    (72) Sales of  and  the  storage, use or other
consumption   of  machinery,   equipment,   tools,
materials   and   supplies    used   [exclusively]
PREDOMINANTLY in the  production  of  typesetting,
color separation, finished  copy  with type proofs
and  artwork  or   similar   content  mounted  for
photomechanical  reproduction,  or  other  similar
products to be  sold  for use in the production of
printed materials.
    Sec. 24. Subsection  (79) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (79)  Sales and  the  storage,  use  or  other
consumption of bunker fuel oil, intermediate fuel,
marine diesel oil  and  marine  gas oil for use in
any vessel having  a  displacement  exceeding four
thousand dead weight  tons  [,]  or FOR USE IN any
vessel primarily engaged in interstate commerce.
    Sec. 25. Subsection  (85) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (85) Sales of  any [of the services enumerated
in subparagraph (X),  (Y)  or  (Z) of] LANDSCAPING
AND   HORTICULTURE   SERVICES,   WINDOW   CLEANING
SERVICES OR MAINTENANCE  SERVICES, AS DESCRIBED IN
subdivision  (i)  of  subsection  (2)  of  section
12-407, AS AMENDED  BY  SECTION 12 OF THIS ACT, on
or after July  1,  1994,  which  are rendered to a
person  determined  to   be   eligible   for,  and
currently  receiving,  total  disability  benefits
under  the  Social  Security  Act,  provided  such
services are rendered  at  the  residence  of such
person.
    Sec. 26. Subsections  (d)  and  (e) of section
12-412i of the  general  statutes are repealed and
the following is substituted in lieu thereof:
    (d) The burden  of  proving  that  an  item is
subject to the exemption set forth in this section
is upon the  person  who  makes the sale unless he
takes from the  purchaser  a  certificate  to  the
effect  that  the  property  is  subject  to  such
exemption.  The certificate  relieves  the  seller
from the burden  of  proof  only  if taken in good
faith by the  seller.  The  certificate  shall  be
signed by and  bear  the  name  and address of the
purchaser. [and shall  indicate  the number of the
certificate   issued  to   the   purchaser.]   The
certificate shall be substantially in such form as
the commissioner prescribes.
    (e) If a  purchaser  who  gives  a certificate
makes any use  of  the [service or] property other
than the purposes  set  forth in this section, the
use shall be  deemed  a  use  by  the purchaser in
accordance with this  chapter,  as of the time the
[service or] property  is  first  used by him, and
the  [service  or]  property  [to  him]  shall  be
taxable to such  purchaser in accordance with this
chapter.
    Sec.  27.  Section   12-414a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    [If any corporation,  required  in  accordance
with  section  12-414   to  file  any  return  for
purposes of the  sales  and use tax, fails to file
such return or  pay to the Commissioner of Revenue
Services the amount  of  tax  related thereto, any
officer of such  corporation  responsible  for  or
having supervision of the filing of such return or
payment of such  tax  who  wilfully failed to file
such return or  pay  such  tax shall be personally
liable for the  total  amount  of such tax and any
penalty or interest  attributable to such failure,
provided  the  amount  of  such  tax,  penalty  or
interest with respect  to  which  such  officer is
personally liable under this section] EACH PERSON,
OTHER THAN A  RETAILER, WHO IS REQUIRED, ON BEHALF
OF A RETAILER,  TO COLLECT, TRUTHFULLY ACCOUNT FOR
AND PAY OVER  THE  TAX  IMPOSED  ON  SUCH RETAILER
UNDER  THIS CHAPTER  AND  WHO  WILFULLY  FAILS  TO
COLLECT SUCH TAX OR TRUTHFULLY ACCOUNT FOR AND PAY
OVER SUCH TAX  OR  WHO  WILFULLY  ATTEMPTS  IN ANY
MANNER TO EVADE  OR  DEFEAT THE TAX OR THE PAYMENT
THEREOF, SHALL, IN  ADDITION  TO  OTHER  PENALTIES
PROVIDED BY LAW,  BE LIABLE FOR A PENALTY EQUAL TO
THE  TOTAL  AMOUNT  OF  THE  TAX  EVADED,  OR  NOT
COLLECTED, OR NOT  ACCOUNTED  FOR  AND  PAID OVER,
INCLUDING ANY PENALTY  OR INTEREST ATTRIBUTABLE TO
SUCH  WILFUL  FAILURE  TO  COLLECT  OR  TRUTHFULLY
ACCOUNT FOR AND  PAY  OVER SUCH TAX OR SUCH WILFUL
ATTEMPT TO EVADE OR DEFEAT SUCH TAX, PROVIDED SUCH
PENALTY  shall  only   be   imposed  against  such
[officer]  PERSON in  the  event  that  such  tax,
penalty   or  interest   [attributable   to   such
officer's failure] cannot  otherwise  be collected
from   the  [corporation]   RETAILER   itself   in
accordance with section 12-420. The amount of such
[tax,] penalty [or interest] with respect to which
[such officer] A  PERSON  may be personally liable
under  this  section   shall   be   collected   in
accordance with said section 12-420 and any amount
so collected shall  be allowed as a credit against
the amount of  such  tax,  penalty or interest due
and owing from  [such  corporation]  THE RETAILER.
The dissolution of [such corporation] THE RETAILER
shall not discharge  [such  officer] ANY PERSON in
relation  to any  personal  liability  under  this
section for wilful failure to [file such return or
pay] COLLECT OR  TRUTHFULLY  ACCOUNT  FOR  AND PAY
OVER such tax  OR FOR A WILFUL ATTEMPT TO EVADE OR
DEFEAT SUCH TAX  prior  to  dissolution, except as
otherwise provided in  this  section. FOR PURPOSES
OF THIS SECTION, "PERSON" INCLUDES ANY INDIVIDUAL,
CORPORATION,   LIMITED   LIABILITY    COMPANY   OR
PARTNERSHIP AND ANY  OFFICER  OR  EMPLOYEE  OF ANY
CORPORATION,  INCLUDING A  DISSOLVED  CORPORATION,
AND A MEMBER  OR  EMPLOYEE  OF  ANY PARTNERSHIP OR
LIMITED LIABILITY COMPANY  WHO,  AS  SUCH OFFICER,
EMPLOYEE OR MEMBER,  IS UNDER A DUTY TO FILE A TAX
RETURN UNDER THIS  CHAPTER ON BEHALF OF A RETAILER
OR TO COLLECT  OR  TRUTHFULLY  ACCOUNT FOR AND PAY
OVER THE TAX  IMPOSED UNDER THIS CHAPTER ON BEHALF
OF A RETAILER.
    Sec. 28. Subsection  (1)  of section 12-415 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (1) [(A)] If the commissioner is not satisfied
with the return  or  returns  of  the  tax  or the
amount of tax  required to be paid to the state by
any person, he  may  compute and assess the amount
required to be  paid  upon  the basis of the facts
contained in the  return  or  returns  or upon the
basis of any  information within his possession or
that may come  into  his possession. Except in the
case of fraud or intent to evade OR IN THE CASE OF
NEW INFORMATION THAT MAY COME INTO HIS POSSESSION,
the  commissioner  may  not  make  more  than  one
assessment for a tax period for which a return has
been filed. [(B)  Upon the adoption of regulations
in accordance with the provisions of chapter 54 to
implement the provisions  of  this  section and to
define the terms  "imperfect"  and  "incomplete in
any  material  respect",   the  commissioner  may,
within  the  period   otherwise   prescribed   for
assessment, make a single supplemental assessment,
upon written finding  by  the commissioner that an
earlier assessment is  imperfect  or incomplete in
any material respect.]
    Sec. 29. Subsection  (1)  of section 12-416 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (1)  [(A)] If  any  person  fails  to  make  a
return, the commissioner shall make an estimate of
the amount of the gross receipts of the person or,
as the case  may  be,  of  the amount of the total
sales  price  of  services  or  tangible  personal
property sold or  purchased  by  the  person,  the
storage, acceptance, consumption  or  other use of
which in this state is subject to the use tax. The
estimate shall be  made  for the period or periods
in respect to  which  the  person failed to make a
return and shall  be  based  upon  any information
which is in  the  commissioner's possession or may
come into his  possession. To the tax imposed upon
the basis of  such  estimate, there shall be added
an amount equal  to  fifteen per cent of such tax,
or fifty dollars,  whichever is greater. No person
shall be subject  to  a  penalty  under  both this
section and section  12-419, AS AMENDED BY SECTION
30 OF THIS  ACT.  [The]  EXCEPT IN THE CASE OF NEW
INFORMATION THAT MAY COME INTO HIS POSSESSION, THE
commissioner may not make more than one assessment
for a tax  period  for  which a tax return has not
been filed. [(B)  Upon the adoption of regulations
in accordance with the provisions of chapter 54 to
implement the provisions  of  this  section and to
define the terms  "imperfect"  and  "incomplete in
any material respect", the commissioner may make a
single  supplemental  assessment,   upon   written
finding  by  the   commissioner  that  an  earlier
assessment  is  imperfect  or  incomplete  in  any
material respect.]
    Sec.  30.  Section   12-419   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a)  Any  person,  OTHER  THAN  AN  INDIVIDUAL
MAKING PURCHASES FOR  PERSONAL  USE OR CONSUMPTION
AND NOT MAKING PURCHASES FOR USE OR CONSUMPTION IN
CARRYING  ON  A  TRADE,  OCCUPATION,  BUSINESS  OR
PROFESSION, who fails  to pay any tax to the state
or any amount  of tax required to be collected and
paid to the  state,  except amounts of assessments
made by the commissioner under sections 12-415 and
12-416,  AS  AMENDED   BY   SECTIONS  28  AND  29,
RESPECTIVELY,  OF  THIS   ACT,   within  the  time
required shall pay,  IN  ADDITION  TO  SUCH TAX OR
SUCH AMOUNT OF  TAX  REQUIRED  TO BE COLLECTED AND
PAID, a penalty  of fifteen per cent of the tax or
fifty dollars, whichever  amount  is  greater, [in
addition to the  tax  or  amount of the tax,] plus
interest  ON  SUCH  TAX  OR  SUCH  AMOUNT  OF  TAX
REQUIRED TO BE  COLLECTED  AND PAID at the rate of
one per cent  per  month  or fraction thereof from
the  due date  [of  such  tax  or  amount  of  tax
required to be collected] to the date of payment.
    (b)  ANY  INDIVIDUAL   MAKING   PURCHASES  FOR
PERSONAL  USE  OR   CONSUMPTION   AND  NOT  MAKING
PURCHASES FOR USE  OR CONSUMPTION IN CARRYING ON A
TRADE,  OCCUPATION,  BUSINESS  OR  PROFESSION  WHO
FAILS TO PAY  USE TAX TO THE STATE, EXCEPT AMOUNTS
OF  ASSESSMENTS MADE  BY  THE  COMMISSIONER  UNDER
SECTIONS 12-415 AND 12-416, AS AMENDED BY SECTIONS
28 AND 29,  RESPECTIVELY,  OF THIS ACT, WITHIN THE
TIME REQUIRED SHALL  PAY, IN ADDITION TO SUCH TAX,
A  PENALTY OF  TEN  PER  CENT  OF  THE  TAX,  PLUS
INTEREST ON SUCH  TAX  AT THE RATE OF ONE PER CENT
PER MONTH OR FRACTION THEREOF FROM THE DUE DATE OF
SUCH TAX TO THE DATE OF PAYMENT.
    (c)  Subject  to  the  provisions  of  section
12-3a, AS AMENDED  BY  SECTION  2 OF THIS ACT, the
commissioner may waive  all  or  any  part  of the
penalties provided under  this  chapter when it is
proven to the  satisfaction  of  the  commissioner
that failure to  pay any tax was due to reasonable
cause and was not intentional or due to neglect.
    Sec. 31. Subsection  (a)  of section 12-431 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) In case  of  the  purchase  of  any  motor
vehicle, snowmobile, vessel or aircraft other than
from a licensed  motor  vehicle dealer OR LICENSED
MOTOR  VEHICLE  LESSOR,  a  snowmobile  dealer,  a
licensed marine dealer  or a retailer of aircraft,
respectively, the receipts  therefrom shall not be
included in the  measure of the sales tax, but the
purchaser thereof shall pay a use tax on the total
purchase  price thereof  to  the  Commissioner  of
Revenue Services, as  provided  in section 12-411,
AS AMENDED BY  SECTIONS  19 AND 20 OF THIS ACT, in
the case of  tangible  personal property purchased
from  a  retailer,  and,  in  the  case  of  motor
vehicles,   vessels   and    snowmobiles,   before
obtaining an original or transferral registration,
in accordance with  regulations  prescribed by the
Commissioner  of Revenue  Services  and  on  forms
approved by the  Commissioner  of Revenue Services
and the Commissioner  of  Motor  Vehicles, and, in
the case of aircraft, before obtaining an original
or transferral registration,  in  accordance  with
regulations  prescribed  by  the  Commissioner  of
Revenue Services and  on  forms  approved  by  the
Commissioner   of   Revenue   Services   and   the
Commissioner of Transportation;  provided  no  use
tax shall be  payable  in  cases  of  transfer  or
purchase (1) when  the  transferee or purchaser is
the spouse, mother,  father,  brother,  sister  or
child of the  transferor  or  seller,  (2)  when a
motor vehicle or  vessel is transferred or sold in
connection with the  organization,  reorganization
or  liquidation  of   an   incorporated  business,
provided (A) the  last  taxable  sale, transfer or
use of the  motor  vehicle or vessel was subjected
to  a  tax   imposed  by  this  chapter,  (B)  the
transferee  is  the  incorporated  business  or  a
stockholder thereof and  (C)  any  gain or loss to
the  transferor  is  not  recognized  for  federal
income tax purposes  under  the  provisions of the
Internal Revenue Code and Treasury regulations and
rulings  issued  thereunder,   (3)  when  a  motor
vehicle is transferred  or sold in connection with
the organization or  termination of a partnership,
provided (A) the  last  taxable  sale, transfer or
use of the  motor  vehicle  was subjected to a tax
imposed by this chapter, (B) the transferee is the
partnership or a partner thereof, and (C) any gain
or loss to  the  transferor  is not recognized for
federal income tax  purposes  under the provisions
of  the  Internal   Revenue   Code   and  Treasury
regulations and rulings  issued  thereunder or (4)
when a motor  vehicle  which  has  been declared a
total loss pursuant  to  the provisions of section
14-16c is rebuilt  for  sale  or use, provided the
transferee was subjected  to  the  tax  imposed by
this chapter for  the  last  taxable  sale of said
vehicle.
    Sec.  32.  Section   12-433   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Wherever  used in  this  chapter,  unless  the
context otherwise requires:  "Alcoholic  beverage"
and "beverage" include  wine,  beer  and liquor as
defined in this  section; "absolute alcohol" means
dehydrated  alcohol  containing   not   less  than
ninety-nine per cent  by  weight of ethyl alcohol;
"beer"  means  any   beverage   obtained   by  the
alcoholic fermentation of an infusion or decoction
of barley, malt  and  hops  in  drinking water and
containing more than  one-half  of one per cent of
absolute  alcohol  by  volume;  "wine"  means  any
alcoholic beverage obtained by the fermentation of
natural  sugar  contents   of   fruits   or  other
agricultural  products  containing  sugar;  "still
wine"  means  any   [noneffervescent]   wine  THAT
CONTAINS NOT MORE  THAN  THREE  HUNDRED NINETY-TWO
ONE  THOUSANDTHS  (0.392)  OF  A  GRAM  OF  CARBON
DIOXIDE PER HUNDRED MILLILITERS OF WINE, and shall
include any fortified  wine,  CIDER  THAT  IS MADE
FROM THE ALCOHOLIC  FERMENTATION  OF  THE JUICE OF
APPLES, vermouth and  any  artificial or imitation
wine or compound  sold  as "still wine" containing
not less than  three  and  two-tenths  per cent of
absolute  alcohol by  volume;  [,  but  shall  not
include cider;] "sparkling  wine"  means champagne
and any other  effervescent wine charged with MORE
THAN  THREE  HUNDRED  NINETY-TWO  ONE  THOUSANDTHS
(0.392) OF A  GRAM  OF  carbon dioxide PER HUNDRED
MILLILITERS OF WINE,  whether artificially or as a
result  of  secondary  fermentation  of  the  wine
within the container;  "fortified  wine" means any
wine, the alcoholic  contents  of  which have been
increased,  by  whatever   process,   beyond  that
produced by natural  fermentation;  "liquor" means
any beverage which  contains  alcohol  obtained by
distillation mixed with  drinkable water and other
substances in solution;  "liquor cooler" means any
liquid combined with  liquor,  as  defined in this
section, containing not  more  than seven per cent
of alcohol by  volume;  "gallon"  or "wine gallon"
means  one  hundred   twenty-eight  fluid  ounces;
"proof gallon" means  the  equivalent  of one wine
gallon at 100  proof;  "proof  spirit"  or "proof"
shall be held  to  be  that alcoholic liquor which
contains  one-half  by  volume  of  alcohol  of  a
specific  gravity  of   seventy-nine  hundred  and
thirty-nine  ten-thousandths  (0.7939)  at  60  F;
"alcohol" means ethyl  alcohol,  hydrated oxide of
ethyl or spirit  of  wine, from whatever source or
by whatever process  produced;  "person" means any
individual,    firm,    fiduciary,    partnership,
corporation, limited liability  company,  trust or
association, however formed;  "taxpayer" means any
person  liable  to  taxation  under  this  chapter
except railroad and  airline  companies  so far as
they conduct such  beverage  business  in  cars or
passenger trains or  on  airplanes;  "distributor"
means any person,  wherever  resident  or located,
who holds a  wholesaler's or manufacturer's permit
or wholesaler or manufacturer permit for beer only
issued under chapter  545,  or his backer, if any;
"licensed distributor" means a distributor holding
a license issued  by  the  Commissioner of Revenue
Services under the  provisions  of  this  chapter;
"tax period" means  any  period  of  one  calendar
month, or any  part  thereof;  "barrel"  means not
less than twenty-eight  nor  more  than thirty-one
gallons;  "half  barrel"   means   not  less  than
fourteen  nor  more   than  fifteen  and  one-half
gallons;  "QUARTER BARREL"  MEANS  NOT  LESS  THAN
SEVEN  NOR  MORE  THAN  SEVEN  AND  THREE-QUARTERS
GALLONS; "sell" or  "sale" includes and applies to
gifts,  exchanges  and  barter  and  includes  any
alcoholic beverages coming  into the possession of
a  distributor  which   cannot  be  satisfactorily
accounted   for  by   the   distributor   to   the
Commissioner of Revenue Services.
    Sec.  33.  Section   12-435   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Each distributor of  alcoholic beverages shall
pay a tax  to  the  state  on all sales within the
state  of alcoholic  beverages,  except  sales  to
licensed   distributors,   sales    of   alcoholic
beverages which, in  the course of such sales, are
actually transported to  some  point  without  the
state and except malt beverages which are consumed
on  the  premises   covered  by  a  manufacturer's
permit, at the rates for the respective categories
of alcoholic beverages listed below:
    (a) Beer, six  dollars  for each barrel, three
dollars for each half barrel, one dollar and fifty
cents for each  quarter  barrel  [(which  in  this
chapter shall mean  not  less  than seven nor more
than  seven  and   three-quarters  gallons),]  and
twenty cents per  wine  gallon or fraction thereof
on quantities less than a quarter barrel;
    (b) Liquor, four  dollars  and fifty cents per
wine gallon;
    (c)  Still  wines  containing  not  more  than
twenty-one per cent of absolute alcohol, except as
provided in [subsection]  SUBSECTIONS  (g) AND (h)
of this section, sixty cents per wine gallon;
    (d)   Still   wines   containing   more   than
twenty-one  per  cent   of  absolute  alcohol  and
sparkling wines, one  dollar  and  fifty cents per
wine gallon;
    (e)  Alcohol in  excess  of  100  proof,  four
dollars and fifty cents per proof gallon;
    (f) Liquor coolers  containing  not  more than
seven per cent  of  alcohol by volume, two dollars
and five cents per wine gallon; [and]
    (g)  Still  wine   containing  not  more  than
twenty-one per cent  of absolute alcohol, produced
by a person  who produces not more than fifty-five
thousand wine gallons  of wine during the calendar
year, fifteen cents per wine gallon, provided such
person presents to  each  distributor of alcoholic
beverages described in this section a certificate,
issued  by the  commissioner,  stating  that  such
person produces not  more than fifty-five thousand
wine gallons of wine during the calendar year. The
commissioner   is   authorized   to   issue   such
certificates,   prescribe   the   procedures   for
obtaining such certificates  and  prescribe  their
form; AND
    (h) CIDER CONTAINING  NOT  MORE THAN SEVEN PER
CENT OF ABSOLUTE  ALCOHOL  SHALL BE SUBJECT TO THE
SAME RATE AS  APPLIES  TO  BEER,  AS  PROVIDED  IN
SUBSECTION (a) OF THIS SECTION.
    Sec. 34. Subdivision  (3) of subsection (a) of
section 12-458 of the general statutes is repealed
and the following is substituted in lieu thereof:
    (3) Said tax shall not be payable on such fuel
as may have  been  (A)  sold to the United States,
(B) sold to  a municipality of this state, for use
by any contractor  performing  a  service for such
municipality  in  accordance   with   a  contract,
provided such fuel  is  used  by  such  contractor
exclusively for the  purposes of and in accordance
with such contract,  (C) sold to a municipality of
this state, a  transit  district of this state, or
this state, at  other  than  a  retail outlet, for
governmental  purposes and  for  use  in  vehicles
owned and operated, or leased and operated by such
municipality, such transit district or this state,
(D) sold to  a person licensed as a distributor in
this state under  section  12-456, (E) transferred
from  storage within  this  state  to  some  point
without this state,  (F)  sold  to the holder of a
permit issued under  section  12-458a  for sale or
use without this  state, (G) sold to the holder of
a permit issued  under  subsection (63) of section
12-412, provided (i)  such  fuel  is  not  used in
motor vehicles [licensed]  REGISTERED  or required
to be [licensed]  REGISTERED  to  operate upon the
public highways of this state, unless such fuel is
used in motor  vehicles registered exclusively for
farming purposes, (ii) such fuel is not delivered,
upon such sale,  to  a  tank  in which such person
keeps fuel for  personal and farm use and (iii) an
affidavit,   prescribed  as   to   form   by   the
Commissioner of Revenue  Services,  affirming that
such  fuel  is   used   exclusively   for  farming
purposes,  is submitted  by  such  person  to  the
distributor, (H) sold exclusively to furnish power
for an industrial  plant in the actual fabrication
of  finished products  to  be  sold,  [or  for  an
agricultural  production  process,]   or  for  the
fishing industry, (I) sold exclusively for heating
purposes, [or] (J)  sold  exclusively  to  furnish
gas, water, steam  or electricity, if delivered to
consumers through mains,  lines or pipes, (K) SOLD
TO  THE OWNER  OR  OPERATOR  OF  AN  AIRCRAFT,  AS
DEFINED IN SECTION 15-34, EXCLUSIVELY FOR AVIATION
PURPOSES,  PROVIDED  (i)   FOR  PURPOSES  OF  THIS
SUBDIVISION,  "AVIATION PURPOSES"  MEANS  FOR  THE
PURPOSE OF POWERING  AN  AIRCRAFT  OR  AN AIRCRAFT
ENGINE, (ii) SUCH  FUEL  IS  DELIVERED,  UPON SUCH
SALE, TO A  TANK IN WHICH FUEL IS KEPT EXCLUSIVELY
FOR AVIATION PURPOSES,  AND  (iii)  AN  AFFIDAVIT,
PRESCRIBED  AS TO  FORM  BY  THE  COMMISSIONER  OF
REVENUE SERVICES, AFFIRMING THAT SUCH FUEL IS USED
EXCLUSIVELY FOR AVIATION PURPOSES, IS SUBMITTED BY
SUCH PERSON TO  THE  DISTRIBUTOR, OR (L) SOLD TO A
DEALER WHO IS  LICENSED  UNDER  SECTION 12-462, AS
AMENDED BY SECTION 36 OF THIS ACT, AND WHOSE PLACE
OF BUSINESS IS LOCATED UPON AN ESTABLISHED AIRPORT
WITHIN THIS STATE.
    Sec.  35.  Section   12-458e  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    [If any corporation,  required  in  accordance
with  section  12-458   to  file  any  report  for
purposes of the  motor  fuels  tax,  fails to file
such return or  pay to the Commissioner of Revenue
Services the amount  of  tax  related thereto, any
officer of such  corporation  responsible  for  or
having supervision of the filing of such return or
payment of such  tax  who  wilfully failed to file
such return or  pay  such  tax shall be personally
liable for the  total  amount  of such tax and any
penalty or interest  attributable to such failure,
provided  the  amount  of  such  tax,  penalty  or
interest with respect  to  which  such  officer is
personally liable under this section] EACH PERSON,
OTHER THAN A  DISTRIBUTOR,  WHO  IS  REQUIRED,  ON
BEHALF OF A  DISTRIBUTOR,  TO  COLLECT, TRUTHFULLY
ACCOUNT FOR AND  PAY  OVER THE TAX IMPOSED ON SUCH
DISTRIBUTOR UNDER THIS  CHAPTER  AND  WHO WILFULLY
FAILS TO COLLECT  SUCH  TAX  OR TRUTHFULLY ACCOUNT
FOR AND PAY OVER SUCH TAX OR WHO WILFULLY ATTEMPTS
IN ANY MANNER  TO  EVADE  OR DEFEAT THE TAX OR THE
PAYMENT  THEREOF,  SHALL,  IN  ADDITION  TO  OTHER
PENALTIES PROVIDED BY LAW, BE LIABLE FOR A PENALTY
EQUAL TO THE  TOTAL  AMOUNT  OF THE TAX EVADED, OR
NOT COLLECTED, OR NOT ACCOUNTED FOR AND PAID OVER,
INCLUDING ANY PENALTY  OR INTEREST ATTRIBUTABLE TO
SUCH  WILFUL  FAILURE  TO  COLLECT  OR  TRUTHFULLY
ACCOUNT FOR AND  PAY  OVER SUCH TAX OR SUCH WILFUL
ATTEMPT TO EVADE OR DEFEAT SUCH TAX, PROVIDED SUCH
PENALTY  shall  only   be   imposed  against  such
[officer]  PERSON in  the  event  that  such  tax,
penalty   or  interest   [attributable   to   such
officer's failure] cannot  otherwise  be collected
from  the  [corporation]   DISTRIBUTOR  itself  in
accordance with section 12-475. The amount of such
[tax,] penalty [or interest] with respect to which
[such officer] A  PERSON  may be personally liable
under  this  section   shall   be   collected   in
accordance with said section 12-475 and any amount
so collected shall  be allowed as a credit against
the amount of  such  tax,  penalty or interest due
and owing from [such corporation] THE DISTRIBUTOR.
The dissolution of  such [corporation] DISTRIBUTOR
shall not discharge  [such  officer] ANY PERSON in
relation  to any  personal  liability  under  this
section for wilful failure to [file such return or
pay  such tax  prior  to  dissolution,  except  as
otherwise provided in  this  section]  COLLECT  OR
TRUTHFULLY ACCOUNT FOR  AND  PAY  OVER SUCH TAX OR
FOR A WILFUL  ATTEMPT  TO EVADE OR DEFEAT SUCH TAX
PRIOR TO DISSOLUTION, EXCEPT AS OTHERWISE PROVIDED
IN THIS SECTION.  FOR  PURPOSES  OF  THIS SECTION,
"PERSON"  INCLUDES  ANY  INDIVIDUAL,  CORPORATION,
LIMITED LIABILITY COMPANY  OR  PARTNERSHIP AND ANY
OFFICER OR EMPLOYEE  OF ANY CORPORATION, INCLUDING
A DISSOLVED CORPORATION,  AND A MEMBER OR EMPLOYEE
OF ANY PARTNERSHIP  OR  LIMITED  LIABILITY COMPANY
WHO, AS SUCH OFFICER, EMPLOYEE OR MEMBER, IS UNDER
A DUTY TO  FILE A TAX RETURN UNDER THIS CHAPTER ON
BEHALF  OF  A   DISTRIBUTOR   OR   TO  COLLECT  OR
TRUTHFULLY  ACCOUNT  FOR  AND  PAY  OVER  THE  TAX
IMPOSED  UNDER  THIS   CHAPTER   ON  BEHALF  OF  A
DISTRIBUTOR.
    Sec. 36. Subsection  (a)  of section 12-462 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) [Aviation fuel  only  shall not be subject
to the tax  imposed under section 12-458 when such
fuel is used  exclusively  for  aviation purposes,
provided such fuel is sold by the distributor to a
licensed dealer whose place of business is located
upon an established  airport  within  this state.]
The commissioner may  license  dealers to purchase
[and sell such  nontaxable aviation gasoline] FUEL
THAT  IS  EXEMPT   UNDER   SUBPARAGRAPH   (M)   OF
SUBDIVISION  (3)  OF  SUBSECTION  (a)  OF  SECTION
12-458, AS AMENDED BY SECTION 34 OF THIS ACT, FROM
DISTRIBUTORS AND TO  SELL  SUCH  NONTAXABLE  FUEL,
provided  they can  properly  control  such  sale,
through meters or  by  full tank wagon compartment
delivery,  directly into  the  fuel  tank  of  any
[airplane] AIRCRAFT OR AIRCRAFT ENGINE. The dealer
so  licensed  shall   keep   and  maintain  proper
accounting  records  of  all  purchases  from  the
[supplier] DISTRIBUTOR and  sales  invoices to the
purchaser, showing the  signature of the purchaser
and the license  number  of  the  [plane] AIRCRAFT
serviced, and the  inventory  on hand on the first
day of each month. Such records shall be preserved
for a period  of at least three years and shall be
audited by the  commissioner at regular intervals.
Any  discrepancies found  to  exist  for  which  a
satisfactory explanation cannot be submitted shall
be subject to  the  tax  imposed by section 12-458
against such dealer. The license to sell [aviation
fuel,  used exclusively  for  aviation  purposes,]
FUEL AS A  DEALER  UNDER  THIS  SUBSECTION  may be
revoked if the  licensee  fails [in his duties] to
properly control and  safeguard the state from any
diversion to uses  other  than  those specified in
this section.
    Sec.  37.  Section   12-487   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a)  [On  or   after   January  1,  1996,  the
Commissioner of Revenue  Services shall provide by
regulation, in accordance  with  the provisions of
chapter 54, for the registration, for a fee of ten
dollars,  of each  vehicle  operated  by  a  motor
carrier] EACH MOTOR  CARRIER  OPERATING OR CAUSING
TO BE OPERATED  ON  ANY  HIGHWAY IN THIS STATE ANY
QUALIFIED MOTOR VEHICLE,  AS  DEFINED  IN  SECTION
12-478,  SOLELY  AND   EXCLUSIVELY  IN  INTRASTATE
COMMERCE SHALL REGISTER EACH SUCH VEHICLE WITH THE
COMMISSIONER OF REVENUE SERVICES, FOR A FEE OF TEN
DOLLARS PER VEHICLE,  which  registration shall be
renewable annually. On  the  registration  of  any
such  vehicle,  said  commissioner  shall  provide
identification  markers for  such  vehicle  to  be
affixed to the  lower rear portion of the exterior
side of the  vehicle's  doors.  Such  marker shall
remain  the property  of  the  state  and  may  be
recalled for any  violation  of  the provisions of
this chapter or  of  the  regulations  promulgated
hereunder.
    (b)  (1)  EACH   MOTOR  CARRIER  OPERATING  OR
CAUSING TO BE  OPERATED  ON  ANY  HIGHWAY  IN THIS
STATE ANY QUALIFIED  MOTOR  VEHICLE, AS DEFINED IN
SECTION 12-478, IN  INTERSTATE  COMMERCE SHALL, IF
SUCH CARRIER'S BASE  JURISDICTION  IS  THIS STATE,
FOR PURPOSES OF  ANY AGREEMENT ENTERED INTO BY THE
COMMISSIONER  UNDER  SUBSECTION   (c)  OF  SECTION
12-486,  REGISTER  EACH   SUCH  VEHICLE  WITH  THE
COMMISSIONER OF REVENUE SERVICES, FOR A FEE OF TEN
DOLLARS PER VEHICLE,  WHICH  REGISTRATION SHALL BE
RENEWABLE ANNUALLY. ON  THE  REGISTRATION  OF  ANY
SUCH  VEHICLE,  THE   COMMISSIONER  SHALL  PROVIDE
IDENTIFICATION  MARKERS FOR  SUCH  VEHICLE  TO  BE
AFFIXED AS REQUIRED BY SUCH AGREEMENT. SUCH MARKER
SHALL REMAIN THE  PROPERTY OF THE STATE AND MAY BE
RECALLED FOR ANY  VIOLATION  OF  THE PROVISIONS OF
THIS  CHAPTER  OR   OF   THE  REGULATIONS  ADOPTED
THEREUNDER.
    (2) EACH MOTOR CARRIER OPERATING OR CAUSING TO
BE OPERATED ON  ANY  HIGHWAY  IN  THIS  STATE  ANY
QUALIFIED MOTOR VEHICLE,  AS  DEFINED  IN  SECTION
12-478,  IN INTERSTATE  COMMERCE  SHALL,  IF  SUCH
CARRIER'S BASE JURISDICTION  IS  OTHER  THAN  THIS
STATE, FOR PURPOSES  OF ANY AGREEMENT ENTERED INTO
BY  THE  COMMISSIONER   UNDER  SUBSECTION  (c)  OF
SECTION 12-486, AFFIX,  IN  THE MANNER REQUIRED BY
SUCH  AGREEMENT, IDENTIFICATION  MARKERS  TO  SUCH
VEHICLE.
    (c) No person  shall  operate  or  cause to be
operated any such  vehicle  in  this  state unless
such  vehicle  bears  the  identification  markers
required   by   this    section,    provided   the
commissioner by letter  or  telegram may authorize
the operation, for a period not to exceed ten days
as to any  one  motor  carrier,  of  a  vehicle or
vehicles without such  identification  marker when
the enforcement of  this section would cause undue
delay  and  hardship  in  the  operation  of  such
vehicle or vehicles  and  when  the enforcement of
this chapter will  not  be adversely affected. ANY
PERSON OPERATING OR CAUSING TO BE OPERATED IN THIS
STATE ANY QUALIFIED  MOTOR  VEHICLE, AS DEFINED IN
SECTION  12-478,  TO   WHICH   THE  IDENTIFICATION
MARKERS   REQUIRED  BY   THIS   SECTION   OR   ANY
REGULATIONS  ADOPTED  IN   ACCORDANCE   WITH   THE
PROVISIONS OF CHAPTER  54 ARE NOT PROPERLY AFFIXED
SHALL HAVE COMMITTED  AN  INFRACTION, THE FINE FOR
WHICH SHALL BE  NINETY  DOLLARS.  ANY PROVISION OF
THE    GENERAL   STATUTES    TO    THE    CONTRARY
NOTWITHSTANDING, ANY PERSON WHO IS ALLEGED TO HAVE
COMMITTED  SUCH AN  INFRACTION  SHALL  FOLLOW  THE
PROCEDURES SET FORTH IN SECTION 51-164n.
    Sec.  38.  Section   12-547a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    [If any corporation,  required  in  accordance
with  section  12-547   to  file  any  return  for
purposes of the  admissions,  cabaret or dues tax,
fails  to  file   such   return   or  pay  to  the
Commissioner of Revenue Services the amount of tax
related thereto, any  officer  of such corporation
responsible  for  or  having  supervision  of  the
filing of such  return  or payment of such tax who
wilfully failed to  file  such  return or pay such
tax  shall be  personally  liable  for  the  total
amount of such  tax  and  any  penalty or interest
attributable to such  failure, provided the amount
of such tax,  penalty  or interest with respect to
which such officer is personally liable under this
section] EACH PERSON,  OTHER  THAN A TAXPAYER, WHO
IS REQUIRED, ON  BEHALF OF A TAXPAYER, TO COLLECT,
TRUTHFULLY  ACCOUNT  FOR  AND  PAY  OVER  THE  TAX
IMPOSED ON SUCH  TAXPAYER  UNDER  THIS CHAPTER AND
WHO  WILFULLY  FAILS   TO   COLLECT  SUCH  TAX  OR
TRUTHFULLY ACCOUNT FOR  AND  PAY  OVER SUCH TAX OR
WHO WILFULLY ATTEMPTS  IN  ANY  MANNER TO EVADE OR
DEFEAT THE TAX  OR  THE PAYMENT THEREOF, SHALL, IN
ADDITION TO OTHER  PENALTIES  PROVIDED  BY LAW, BE
LIABLE FOR A  PENALTY EQUAL TO THE TOTAL AMOUNT OF
THE TAX EVADED, OR NOT COLLECTED, OR NOT ACCOUNTED
FOR  AND  PAID  OVER,  INCLUDING  ANY  PENALTY  OR
INTEREST ATTRIBUTABLE TO  SUCH  WILFUL  FAILURE TO
COLLECT OR TRUTHFULLY  ACCOUNT  FOR  AND  PAY OVER
SUCH TAX OR SUCH WILFUL ATTEMPT TO EVADE OR DEFEAT
SUCH TAX, PROVIDED  SUCH  PENALTY  shall  only  be
imposed against such [officer] PERSON in the event
that such tax,  penalty  or interest [attributable
to such officer's  failure]  cannot  otherwise  be
collected from the  [corporation]  TAXPAYER itself
in accordance with  section 12-555a. The amount of
such [tax,] penalty  [or interest] with respect to
which [such officer]  A  PERSON  may be personally
liable under this  section  shall  be collected in
accordance  with  said  section  12-555a  and  any
amount so collected  shall  be allowed as a credit
against  the  amount   of  such  tax,  penalty  or
interest due and owing from [such corporation] THE
TAXPAYER. The dissolution  of  such  [corporation]
TAXPAYER shall not  discharge  [such  officer] ANY
PERSON in relation to any personal liability under
this section for  wilful  failure  to  [file  such
return  or pay  such  tax  prior  to  dissolution,
except  as otherwise  provided  in  this  section]
COLLECT OR TRUTHFULLY  ACCOUNT  FOR  AND  PAY OVER
SUCH TAX OR  FOR  A  WILFUL  ATTEMPT  TO  EVADE OR
DEFEAT SUCH TAX  PRIOR  TO  DISSOLUTION, EXCEPT AS
OTHERWISE PROVIDED IN  THIS  SECTION. FOR PURPOSES
OF THIS SECTION, "PERSON" INCLUDES ANY INDIVIDUAL,
CORPORATION,   LIMITED   LIABILITY    COMPANY   OR
PARTNERSHIP AND ANY  OFFICER  OR  EMPLOYEE  OF ANY
CORPORATION,  INCLUDING A  DISSOLVED  CORPORATION,
AND A MEMBER  OR  EMPLOYEE  OF  ANY PARTNERSHIP OR
LIMITED LIABILITY COMPANY  WHO,  AS  SUCH OFFICER,
EMPLOYEE OR MEMBER,  IS UNDER A DUTY TO FILE A TAX
RETURN UNDER THIS  CHAPTER ON BEHALF OF A TAXPAYER
OR TO COLLECT  OR  TRUTHFULLY  ACCOUNT FOR AND PAY
OVER THE TAX  IMPOSED UNDER THIS CHAPTER ON BEHALF
OF A TAXPAYER.
    Sec. 39. Subsection  (c) of section 12-555b of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (c) After compliance  with subsections (a) and
(b)  of  this   section   by  the  applicant,  the
commissioner may grant and issue to such applicant
a separate certificate for each place of operation
within the state.  A  certificate  of registration
shall not be  assignable  and  shall be valid only
for the person  in  whose  name  it is issued. THE
CERTIFICATE SHALL AT  ALL  TIMES  BE CONSPICUOUSLY
DISPLAYED  AT THE  PLACE  FOR  WHICH  ISSUED.  The
commissioner may refuse  to issue a certificate of
registration if he  believes  that  the payment of
any amount due  or likely to become due under this
chapter  is  jeopardized.   The  commissioner  may
continue such refusal  until  he believes that the
payment of such amounts are no longer in jeopardy.
    Sec. 40. Subsection  (a) of section 12-638k of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) [Not later than the tenth day of the month
immediately following the tax due date for the tax
imposed under this chapter] ON OR BEFORE THE FIRST
DAY OF THE  FOURTH MONTH FOLLOWING THE END OF EACH
CALENDAR QUARTER, the  commissioner  shall certify
to the STATE Comptroller an amount equal to eleven
one hundredths of one per cent of the present true
and actual value  of the interest in real property
conveyed in each  town  which  has  been collected
pursuant to this  chapter  FOR SUCH QUARTER, which
amount shall be remitted to the town in which such
real property is  located.  The  STATE Comptroller
shall draw his  order  on  the STATE Treasurer not
later than [the  twenty-fifth  day  of such month]
FIFTEEN  DAYS FOLLOWING  THE  DATE  ON  WHICH  THE
COMMISSIONER  CERTIFIES AN  AMOUNT  TO  THE  STATE
COMPTROLLER. The STATE  Treasurer  shall  pay  the
amount to be  paid to each town in accordance with
this section [on  or  before  the thirtieth day of
such month] NOT LATER THAN FIVE DAYS FROM THE DATE
ON WHICH THE  STATE COMPTROLLER DRAWS HIS ORDER ON
THE STATE TREASURER.
    Sec.  41.  Section   12-643   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    The term "taxable  gifts"  means the transfers
by gift which  are  included  in taxable gifts for
federal gift tax  purposes  under Section 2503 and
Sections 2511 to  2514,  inclusive,  and  Sections
2516 to 2519,  inclusive,  of the Internal Revenue
Code  of 1986,  or  any  subsequent  corresponding
internal revenue code  of  the  United  States, as
from time to  time  amended,  less  the deductions
allowed in Sections  2522  to  2524, inclusive, of
said Internal Revenue  Code. IN THE ADMINISTRATION
OF THE TAX UNDER THIS CHAPTER, THE COMMISSIONER OF
REVENUE SERVICES SHALL  APPLY  THE  PROVISIONS  OF
SECTIONS 2701 TO 2704, INCLUSIVE, OF SAID INTERNAL
REVENUE  CODE.  The   words   "secretary   or  his
delegate" as used  in  the aforementioned sections
of   the   Internal   Revenue   Code   means   the
Commissioner of Revenue Services.
    Sec.  42.  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 or limited liability company, but does
not include any  Connecticut  town, city, borough,
consolidated town and  city  or  consolidated town
and borough.
    (5) "Tax" means the tax or taxes imposed under
[chapter 207, 208,  209,  210, 211, 212, 219, 220,
221, 225, 227  or  229]  THIS  TITLE  OR ANY OTHER
TITLE OF THE  GENERAL  STATUTES AND PAYABLE TO THE
COMMISSIONER OF REVENUE SERVICES.
    Sec. 43. Subsection  (b)  of section 12-733 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) If the  taxpayer  omits  from  CONNECTICUT
ADJUSTED  gross  income,   IN   THE   CASE  OF  AN
INDIVIDUAL, OR FROM CONNECTICUT TAXABLE INCOME, IN
THE CASE OF  A TRUST OR ESTATE, an amount properly
includable  therein  which   is   in   excess   of
twenty-five per cent  of the amount of CONNECTICUT
ADJUSTED  gross  income   OR  CONNECTICUT  TAXABLE
INCOME, AS THE  CASE MAY BE, stated in the return,
a notice of  a  proposed deficiency assessment may
be mailed to  the  taxpayer within six years after
the  return  is   filed.   For  purposes  of  this
subsection, there shall  not be taken into account
any amount which  is omitted in the return if such
amount  is  disclosed  in  the  return,  or  in  a
statement attached to  the  return,  in  a  manner
adequate to apprise  the  Commissioner  of Revenue
Services of the  nature  and  the  amount  of such
item.
    Sec. 44. Subsection  (b)  of section 12-736 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b)  Any person  who  with  fraudulent  intent
shall fail to  pay,  to  deduct or to withhold and
pay any tax,  to make, render, sign or certify any
return [or declaration  of  estimated  tax]  or to
supply any information within the time required by
or  under this  chapter  shall  be  subject  to  a
penalty of not  more than one thousand dollars, in
addition to any  other amounts required under this
chapter to be  imposed,  assessed and collected by
the commissioner.
    Sec. 45. Subsection  (a)  of section 32-305 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) The Commissioner of Revenue Services shall
segregate (1) one  and  one-half  per  cent of the
gross receipts [from  the  tax]  from sales within
the meaning of  subdivision  (h) of subsection (2)
of section 12-407,  AS  AMENDED  BY SECTIONS 21 TO
25,  INCLUSIVE, OF  THIS  ACT,  by  any  hotel  or
lodging house located in any municipality having a
population of less  than  sixty-five thousand, (2)
three and one-half  per cent of the gross receipts
from such [tax] SALES in any municipality having a
population of sixty-five thousand or more but less
than  seventy-five  thousand,  and  (3)  four  and
one-half per cent  of the gross receipts from such
[tax]  SALES  in   any   municipality   having   a
population  of  seventy-five   thousand  or  more,
provided the commissioner  shall  segregate  three
and one-half per  cent  of the gross receipts from
such [tax] SALES  in  the  municipality having the
most popular tourist  attraction  in the state, as
determined  by the  Office  of  Tourism,  if  such
municipality  has  a   population   of  less  than
sixty-five thousand. Such  segregated  funds shall
be  allocated  to  tourism  districts  established
under section 32-302  as  follows:  The portion of
the funds attributable  to  such tax receipts in a
municipality shall be  allocated  to  the  tourism
district in which  the  municipality  is  located,
provided (A) one  hundred  per  cent of the amount
attributable to such  [tax]  GROSS  receipts  from
sales  in  Hartford  shall  be  allocated  to  the
Connecticut  Convention  Center   Authority,   (B)
seventy-five per cent  of  the amount attributable
to such [tax]  GROSS  receipts  from  sales in New
Haven shall be allocated to the New Haven Coliseum
Authority, (C) seventy-five per cent of the amount
attributable to such  [tax]  GROSS  receipts  from
sales  in  Stamford  shall  be  allocated  to  the
Stamford Center for the Arts, (D) seventy-five per
cent of the  amount  attributable  to  such  [tax]
GROSS receipts from  sales  in  Norwalk  shall  be
allocated to the  Maritime  Center  Authority, and
(E)   seventy-five  per   cent   of   the   amount
attributable to such  [tax]  GROSS  receipts  from
sales in Bridgeport  shall  be  allocated  to  the
Greater Fairfield district  established in section
32-302, for the  sole purpose of marketing tourist
attractions  located in  Bridgeport.  If  for  any
state fiscal year  the  amount  of  the allocation
under subparagraph (E)  is less than the amount of
funds allocated during the fiscal year ending June
30,  1991,  to   the   then   existing  Bridgeport
convention  and  visitors   bureau,   pursuant  to
sections  7-136b  and   7-136c   of   the  general
statutes,  revised  to   January   1,   1991,  the
Connecticut Tourism Council  shall provide a grant
under section 32-300, from the tourism account, in
the amount of  such  difference,  to  said Greater
Fairfield district for  the  purpose  set forth in
subparagraph (E). Not  later than October 1, 1994,
and annually thereafter, each tourism district and
each authority receiving  funds under this section
shall submit to  the Connecticut Tourism Council a
full  audit of  the  books  and  accounts  of  the
district or authority  for  the  preceding  fiscal
year. Each such  audit  shall  be  conducted by an
independent  certified  public   accountant.   The
Commissioner  of  Revenue   Services   shall  also
segregate an additional one million dollars of the
[gross] SALES TAX  receipts  from such [tax] SALES
in the state  during  each  state  fiscal year and
allocate  such  funds  to  the  cultural  heritage
development  account  established   under  section
10-373bb. The Commissioner of Revenue Services may
adopt   regulations,  in   accordance   with   the
provisions of chapter  54,  concerning  accounting
procedures necessary to  carry out the purposes of
this section.
    Sec. 46. Subsection  (c) of section 38a-277 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (c)   There  is   hereby   levied   upon   the
obligation, chose in  action  or right represented
by  the  premium  charged  for  such  insurance  a
premium receipts tax  of  four  per  cent of gross
premiums charged for such insurance other than wet
marine  and  transportation  insurance.  The  term
"premium" shall include  all  premiums, membership
fees,   assessments,   dues    and    any    other
consideration for insurance.  Such tax shall be in
lieu of all  other taxes. The insured shall, ON OR
before March first  next  succeeding  the calendar
year  in which  the  insurance  was  so  procured,
continued or renewed, pay the amount of the tax to
the Commissioner of Revenue Services in accordance
with procedures established  and on forms provided
by said Commissioner  of  Revenue Services. In the
event of cancellation  and  rewriting  of any such
insurance  contract  the   premium   for   premium
receipts tax purposes  shall  be  the  premium  in
excess of the  unearned  premium  of the cancelled
insurance contract.
    Sec. 47. Subsection  (a)  of section 51-81b of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) Any person  who  has  been  admitted as an
attorney by the  judges  of  the Superior Court [,
and  who] SHALL  ANNUALLY  ON  OR  BEFORE  JANUARY
FIFTEENTH  FILE AN  ANNUAL  RETURN  PRESCRIBED  OR
FURNISHED BY THE COMMISSIONER OF REVENUE SERVICES.
IF ANY SUCH  PERSON was engaged in the practice of
law in the  year  preceding  the  year in which an
occupational tax is  due  hereunder,  SUCH PERSON,
UNLESS EXEMPTED UNDER THIS SECTION, shall annually
on  or  before   January   fifteenth  pay  to  the
Commissioner of Revenue  Services  a  tax  in  the
amount of four hundred fifty dollars.
    Sec. 48. (NEW)  (a)  (1)  Whenever  any person
carrying  on  a  trade,  occupation,  business  or
profession in this state purchases from a retailer
tangible personal property  for use or consumption
in carrying on such trade, occupation, business or
profession,  (A)  for   purposes  of  subsequently
transporting such property  outside  this state by
common or contract  carrier for use or consumption
thereafter solely outside  this  state, or (B) for
the  purpose of  being  processed,  fabricated  or
manufactured  into, attached  to  or  incorporated
into,  other  tangible  personal  property  to  be
transported  outside  this   state  by  common  or
contract carrier, and  thereafter used or consumed
solely outside this state, such person may claim a
refund of the  taxes imposed by chapter 219 of the
general statutes on the purchase of such property.
A claim for  refund  of  the taxes imposed by said
chapter 219 on  all  such  purchases  of  property
during the calendar  year may be filed, along with
substantiating  documentation, annually  with  the
Commissioner  of  Revenue   Services   on  a  form
prepared for such  purpose by the commissioner not
later than the  first day of the fourth month next
succeeding the end  of the calendar year for which
such claim is filed.
    (2)   The   commissioner    shall    make    a
determination as to  any such claim not later than
ninety  days  after   receipt   thereof   and,  if
approved,  transmit such  approval  to  the  State
Comptroller who shall  draw his order on the State
Treasurer  for payment  of  such  refund.  If  the
commissioner determines that  such  claim  is  not
valid, either in  whole  or in part, notice of the
proposed  disallowance  shall  be  mailed  to  the
claimant and such  notice  shall set forth briefly
the commissioner's findings  of fact and the basis
of disallowance in  each  case decided in whole or
in part adversely  to  the  claimant.  Sixty  days
after the date  on which it is mailed, a notice of
proposed  disallowance shall  constitute  a  final
disallowance except for  such  amounts as to which
the claimant has filed, as provided in subdivision
(3) of this subsection, a written protest with the
commissioner.
    (3) Within sixty  days  after the mailing of a
proposed disallowance, the  claimant may file with
the commissioner a  written  protest  against  the
proposed disallowance in  which the claimant shall
set forth the  grounds  on  which  the  protest is
based. If a  protest  is  filed,  the commissioner
shall reconsider the proposed disallowance and, if
the claimant has  so  requested, may grant or deny
the   claimant  or   the   claimant's   authorized
representatives an oral hearing.
    (4) Notice of the commissioner's determination
shall be mailed  to  the  claimant and such notice
shall  set  forth   briefly   the   commissioner's
findings of fact and the basis of decision in each
case decided in  whole or in part adversely to the
claimant.
    (5) The action  of  the  commissioner  on  the
claimant's  protest  shall   be   final  upon  the
expiration of one  month from the date on which he
mails notice of  his action to the claimant unless
within such period  the  claimant  seeks  judicial
review   of   the   commissioner's   determination
pursuant  to  section   12-422   of   the  general
statutes.
    (6) The commissioner  may,  at any time within
three years after  the  date  of  receipt  of such
claim  for  refund,   examine   such   claim   and
supporting documentation and,  in  the case of any
error is disclosed  by  such  examination,  mail a
notice of assessment  in  the  manner  provided in
section 12-415 of the general statutes, as amended
by section 28 of this act, as if a return had been
filed  with  which   the   commissioner   was  not
satisfied.  In  such   event,   the  claimant  may
petition for reassessment  in  the time and manner
provided  in  section   12-418   of   the  general
statutes.   The   order   or   decision   of   the
commissioner upon the  petition  for  reassessment
shall be subject  to  judicial  review in the time
and  manner provided  in  section  12-422  of  the
general statutes.
    (b) (1) Whenever any holder of a permit issued
under this subsection  purchases  from  a retailer
tangible personal property  for use or consumption
in carrying on  the trade, occupation, business or
profession of such  person, (A) for the purpose of
subsequently transporting it  outside  this  state
for use or  consumption  thereafter solely outside
this  state  or  (B)  for  the  purpose  of  being
processed,   fabricated  or   manufactured   into,
attached to or  incorporated  into, other tangible
personal property to  be  transported outside this
state  and  thereafter  used  or  consumed  solely
outside this state,  such holder may purchase such
property without payment  of  the  taxes otherwise
imposed by chapter  219 of the general statutes on
the purchase of such property.
    (2) The Commissioner  of  Revenue Services may
pursuant to regulations adopted in accordance with
chapter 54 of  the general statutes issue a permit
to any person  carrying  on  a  trade, occupation,
business or profession in this state who purchases
from a retailer tangible personal property for use
or  consumption  in   carrying   on   such  trade,
occupation, business or  profession,  (A)  for the
purpose of subsequently  transporting  it  outside
this  state  for  use  or  consumption  thereafter
solely outside this  state  or (B) for the purpose
of  being processed,  fabricated  or  manufactured
into,  attached to  or  incorporated  into,  other
tangible  personal  property   to  be  transported
outside this state and thereafter used or consumed
solely outside this  state,  if  the  commissioner
determines that the person is carrying on a trade,
occupation, business or  profession  in this state
and is filing  the returns required to be filed by
such person under  section  12-414  of the general
statutes  and  that   the   enforcement   of   the
provisions of chapter  219 of the general statutes
shall not be adversely affected.
    (3) The permit issued under subdivision (2) of
this subsection shall  authorize the holder to the
extent  and  in   the   manner  specified  in  the
regulations adopted under said subdivision (2), to
purchase  tangible  personal   property   from   a
retailer  on  which  the  taxes  imposed  by  said
chapter 219 shall  not be payable. The regulations
adopted under this subsection shall require (A) an
affidavit,   prescribed  as   to   form   by   the
commissioner,  affirming  that  such  property  is
purchased  for  a   purpose   permitted   by  this
subsection, (B) a report to be submitted with, and
to be a  part  of, each return that is required to
be  filed under  section  12-414  of  the  general
statutes by the  holder  of  such permit detailing
the  persons  from  whom  such  tangible  personal
property was purchased  during  the period covered
by such return,  the  quantities  in which and the
dates on which such property was purchased and any
other   information  deemed   necessary   by   the
commissioner, and (C)  periodic  registration,  at
least annually, for the purpose of the issuance of
a permit, including  procedures  relating  to  the
application for the  permit, notice concerning the
penalty for misuse  of  the  permit,  and required
notarization of the application for such permit.
    Sec. 49. (NEW) (a) The Commissioner of Revenue
Services  may  permit   the  filing,  by  computer
transmission or by  employing new technology as it
is developed, of  any  return,  statement or other
document that is  required by law or regulation to
be filed with said commissioner.
    (b) The Commissioner  of  Revenue Services may
require the filing, by computer transmission or by
employing new technology  as  it  is developed, of
any return, statement  or  other  document that is
required by law  or  regulation  to  be filed with
said commissioner by  any  person  who is required
under  the  provisions  of  chapter  228g  of  the
general statutes to  pay  the  tax,  to which such
return, statement or  other  document pertains, by
electronic funds transfer.
    (c)  For  purposes   of   this   section,  the
Commissioner  of Revenue  Services  may  prescribe
alternative methods for  the  signing, subscribing
or verifying of  such  return,  statement or other
document by a  person  that  shall  have  the same
validity,  status  and  consequences  as  a  paper
return,  statement  or  other  document  that  was
actually signed, subscribed  or  verified  by such
person.
    (d) Notwithstanding any other provision of the
general  statutes,  the  Commissioner  of  Revenue
Services may permit the payment of any tax that is
required by law  to  be  paid to him by use of any
new technology as it is developed.
    (e) The Commissioner of Revenue Services shall
adopt   regulations,  in   accordance   with   the
provisions of chapter  54 of the general statutes,
necessary for the administration of this section.
    Sec. 50. (NEW) (a) (1) Whenever the provisions
of section 12-35,  12-204, 12-205, 12-206, 12-225,
12-226, 12-229, 12-235, 12-242d, 12-263c, 12-263d,
12-263m,   12-268d,  12-268h,   12-293a,   12-309,
12-330d,   12-330i,  12-376,   12-376a,   12-376b,
12-392, 12-414, 12-415,  12-416,  12-419, 12-419a,
12-439, 12-440, 12-458,  12-458d, 12-486a, 12-488,
12-547, 12-548, 12-590,  12-594, 12-638c, 12-638d,
12-646a, 12-647, 12-655,  12-667,  12-722, 12-723,
12-728,   12-731,   12-735,    22a-132,   22a-232,
22a-237c,  38a-277  or   51-81b   of  the  general
statutes, as amended,  require interest to be paid
to the Commissioner  of  Revenue  Services  at the
rate of one per cent per month or fraction thereof
or  one  per  cent  for  each  month  or  fraction
thereof, the Commissioner  of Revenue Services may
adopt   regulations   in   accordance   with   the
provisions of chapter  54  of the general statutes
that  require  interest   to   be   paid  to  said
commissioner at the  equivalent daily rate in lieu
of such monthly rate.
    (2)  If such  regulations  are  adopted,  such
regulations shall provide  that  (A) if notice and
demand is made by said commissioner for payment of
any  amount to  said  commissioner,  and  if  such
amount is paid  within  ten days after the date of
such  notice  and   demand,  interest  under  this
section on the amount so paid shall not be imposed
for the period  after  the date of such notice and
demand and (B)  such regulations are applicable to
interest required to  be  paid to the Commissioner
of Revenue Services  on  taxes due and owing on or
after  the date  specified  in  such  regulations,
whether or not  such taxes first became due before
said date.
    (b) (1) Whenever  the  provisions  of  section
12-208, 12-268l, 12-312,  12-376,  12-392, 12-422,
12-448, 12-463, 12-489, 12-554, 12-638i, 12-730 or
12-732  of  the   general  statutes,  as  amended,
require interest to be paid by the Commissioner of
Revenue Services at  the rate of two-thirds of one
per  cent  per   month   or  fraction  thereof  or
two-thirds of one  per  cent  for  each  month  or
fraction  thereof,  the  Commissioner  of  Revenue
Services may adopt  regulations in accordance with
the  provisions  of  chapter  54  of  the  general
statutes that require  interest to be paid by said
commissioner at the  equivalent daily rate in lieu
of such monthly rate.
    (2)  If such  regulations  are  adopted,  they
shall provide that  (A)  interest shall be allowed
and paid, in  the  case of a refund, from the date
of the overpayment  to a date, to be determined by
the commissioner, preceding the date of the refund
check by not  more  than  thirty  days and, in the
case of a credit, from the date of the overpayment
to the due  date  of  the amount against which the
credit is taken, and (B) such regulations shall be
applicable to interest  required to be paid by the
Commissioner of Revenue  Services  on  amounts due
and owing on  or  after the date specified in such
regulations, whether or  not  such  amounts  first
became due before said date.
    Sec. 51. Subsection  (f)  of section 12-206 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (f) (1) Any [insurance] company subject to ANY
tax  OR  CHARGE   under   this  chapter,  [or  any
corporation subject to  the  charge  imposed under
section 12-212a,] believing  that  it has overpaid
any  tax,  other   than  any  estimated  tax  paid
pursuant to section  12-204c,  [or  any charge, as
the case may be,] due under the provisions of this
chapter may file  a  claim  for  refund in writing
with the commissioner  within three years from the
due date for  which  such  overpayment  was  made,
stating the specific  grounds upon which the claim
is founded. FAILURE  TO  FILE  A  CLAIM WITHIN THE
TIME  PRESCRIBED IN  THIS  SECTION  CONSTITUTES  A
WAIVER OF ANY  DEMAND AGAINST THE STATE ON ACCOUNT
OF  OVERPAYMENT.  Not   later   than  ninety  days
following receipt of  such  claim  for refund, the
commissioner shall determine whether such claim is
valid and, if  so  determined,  said  commissioner
shall notify the  STATE  Comptroller of the amount
of such refund  and  the  STATE  Comptroller shall
draw an order on the STATE Treasurer in the amount
thereof  for  payment  to  the  taxpayer.  [Within
thirty days after  disallowing  any  claim] IF THE
COMMISSIONER DETERMINES THAT  SUCH  CLAIM  IS  NOT
VALID,  EITHER  in   whole   or   in   part,  [the
commissioner shall serve  notice  of his action on
the claimant. Failure  to  file a claim within the
time  prescribed in  this  section  constitutes  a
waiver of any  demand against the state on account
of  overpayment]  HE  SHALL  MAIL  NOTICE  OF  THE
PROPOSED DISALLOWANCE IN  WHOLE  OR IN PART OF THE
CLAIM TO THE  CLAIMANT,  WHICH  NOTICE  SHALL  SET
FORTH BRIEFLY THE  COMMISSIONER'S FINDINGS OF FACT
AND THE BASIS OF DISALLOWANCE IN EACH CASE DECIDED
IN WHOLE OR  IN  PART  ADVERSELY  TO THE CLAIMANT.
SIXTY DAYS AFTER THE DATE ON WHICH IT IS MAILED, A
NOTICE OF PROPOSED DISALLOWANCE SHALL CONSTITUTE A
FINAL DISALLOWANCE EXCEPT ONLY FOR SUCH AMOUNTS AS
TO WHICH THE  COMPANY  HAS  FILED,  AS PROVIDED IN
SUBDIVISION  (2) OF  THIS  SUBSECTION,  A  WRITTEN
PROTEST WITH THE COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE  PROPOSED DISALLOWANCE, THE COMPANY
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED DISALLOWANCE IN WHICH IT SETS
FORTH THE GROUNDS  ON  WHICH THE PROTEST IS BASED.
IF A PROTEST  IS  FILED,  THE  COMMISSIONER  SHALL
RECONSIDER THE PROPOSED  DISALLOWANCE  AND, IF THE
COMPANY HAS SO  REQUESTED,  MAY  GRANT OR DENY THE
COMPANY OR ITS  AUTHORIZED REPRESENTATIVES AN ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  COMPANY,  WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
COMPANY.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
COMPANY'S  PROTEST  SHALL   BE   FINAL   UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS  ACTION TO THE COMPANY UNLESS
WITHIN  SUCH PERIOD  THE  COMPANY  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SUBSECTION (b) OF SECTION 12-208.
    Sec. 52. Subsection  (b)  of section 12-225 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b) (1) Any  company which fails to include in
its return items  of  deductions or includes items
of nontaxable income  or  makes any other error in
such return may,  within  three years from the due
date of the  return, file with the commissioner an
amended return, together  with  a claim for refund
of taxes overpaid as shown by such amended return.
FAILURE TO FILE A CLAIM WITHIN THE TIME PRESCRIBED
IN THIS SECTION CONSTITUTES A WAIVER OF ANY DEMAND
AGAINST THE STATE  ON  ACCOUNT OF OVERPAYMENT. The
commissioner shall, within one hundred eighty days
of the receipt  of  such  claim, [either refund to
the company the  amount  of tax overpaid or notify
the  company  that  its  claim  has  been  denied]
DETERMINE WHETHER SUCH  CLAIM IS VALID AND, IF SO,
THE   COMMISSIONER   SHALL    NOTIFY   THE   STATE
COMPTROLLER OF THE  AMOUNT  OF SUCH REFUND AND THE
STATE COMPTROLLER SHALL DRAW AN ORDER ON THE STATE
TREASURER IN THE  AMOUNT  THEREOF  FOR  PAYMENT TO
SUCH COMPANY. IF  THE COMMISSIONER DETERMINES THAT
SUCH CLAIM IS  NOT  VALID,  EITHER  IN WHOLE OR IN
PART,  HE  SHALL   MAIL  NOTICE  OF  THE  PROPOSED
DISALLOWANCE IN WHOLE  OR  IN PART OF THE CLAIM TO
THE COMPANY WHICH  NOTICE  SHALL SET FORTH BRIEFLY
THE COMMISSIONER'S FINDINGS  OF FACT AND THE BASIS
OF DISALLOWANCE IN  EACH  CASE DECIDED IN WHOLE OR
IN PART ADVERSELY  TO  THE  CLAIMANT.  SIXTY  DAYS
AFTER THE DATE  ON WHICH IT IS MAILED, A NOTICE OF
PROPOSED  DISALLOWANCE SHALL  CONSTITUTE  A  FINAL
DISALLOWANCE EXCEPT ONLY  FOR  SUCH  AMOUNT  AS TO
WHICH  THE  COMPANY  HAS  FILED,  AS  PROVIDED  IN
SUBDIVISION  (2) OF  THIS  SUBSECTION,  A  WRITTEN
PROTEST WITH THE COMMISSIONER. For the purposes of
computing any refund  due  or adjusting net income
as  a result  of  the  inclusion  of  income,  the
taxation of which  by  the state of Connecticut is
prohibited   by   federal   law,   including   the
Constitution of the  United States, as applied, no
expenses related to  such income shall be deducted
in computing net  income under this chapter. [If a
claim is denied,  appeal may be made in accordance
with section 12-237.]
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE  PROPOSED DISALLOWANCE, THE COMPANY
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED DISALLOWANCE IN WHICH IT SETS
FORTH THE GROUNDS  ON  WHICH THE PROTEST IS BASED.
IF A PROTEST  IS  FILED,  THE  COMMISSIONER  SHALL
RECONSIDER THE PROPOSED  DISALLOWANCE  AND, IF THE
COMPANY HAS SO  REQUESTED,  MAY  GRANT OR DENY THE
COMPANY OR ITS  AUTHORIZED REPRESENTATIVES AN ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  COMPANY,  WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
COMPANY.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
COMPANY'S  PROTEST  SHALL   BE   FINAL   UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS  ACTION TO THE COMPANY UNLESS
WITHIN  SUCH PERIOD  THE  COMPANY  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-237.
    Sec.  53.  Section   12-226   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) (1) Any  company  whose income, profits or
earnings are changed,  adjusted  or  corrected for
any income year  by  any  official  of  the United
States government, or  any  agency thereof, in any
respect affecting the  tax  imposed  by this part,
shall [, on or before the due date or extended due
date of its  next  return  under this chapter, or]
within ninety days  after [having received written
notification]  THE  FINAL  DETERMINATION  of  such
change, adjustment or  correction,  [whichever  is
later]   OR   AS   OTHERWISE   REQUIRED   BY   THE
COMMISSIONER,  submit  to   the   commissioner  an
affidavit disclosing such  changes or adjustments,
CONCEDE  THE ACCURACY  OF  SUCH  DETERMINATION  OR
STATE  WHEREIN IT  IS  ERRONEOUS,  and  thereafter
[shall] promptly furnish  to  the commissioner any
information,  schedules,  records,   documents  or
papers  relating to  such  change,  adjustment  or
correction as he  requires.  THE  TIME  FOR FILING
SUCH AFFIDAVIT MAY BE EXTENDED BY THE COMMISSIONER
UPON DUE CAUSE  SHOWN.  IF,  UPON EXAMINATION, THE
COMMISSIONER FINDS THAT  THE COMPANY IS LIABLE FOR
THE PAYMENT OF AN ADDITIONAL TAX, HE SHALL, WITHIN
A  REASONABLE  TIME   FROM  THE  RECEIPT  OF  SUCH
AFFIDAVIT, NOTIFY THE  COMPANY  OF  THE  AMOUNT OF
SUCH  ADDITIONAL  TAX,   TOGETHER   WITH  INTEREST
THEREON COMPUTED AT  THE  RATE OF ONE PER CENT PER
MONTH OR FRACTION  THEREOF  FROM THE DATE WHEN THE
ORIGINAL TAX BECAME DUE AND PAYABLE. WITHIN THIRTY
DAYS OF THE  MAILING  OF  SUCH NOTICE, THE COMPANY
SHALL PAY TO  THE  COMMISSIONER,  IN  CASH  OR  BY
CHECK, DRAFT OR MONEY ORDER, DRAWN TO THE ORDER OF
THE COMMISSIONER OF  REVENUE  SERVICES, THE AMOUNT
OF SUCH ADDITIONAL  TAX  AND  INTEREST.  IF,  UPON
EXAMINATION   OF  SUCH   AFFIDAVIT   AND   RELATED
INFORMATION,  THE  COMMISSIONER   FINDS  THAT  THE
COMPANY HAS OVERPAID THE TAX DUE THE STATE AND HAS
NOT RECEIVED FROM  OR  BEEN  ALLOWED BY THE UNITED
STATES GOVERNMENT, OR ANY AGENCY THEREOF, A CREDIT
OR A BENEFIT  AS  A DEDUCTION OR OTHERWISE, FOR OR
BY REASON OF SUCH OVERPAYMENT, THE STATE TREASURER
SHALL PAY THE  COMPANY,  UPON  ORDER  OF THE STATE
COMPTROLLER, THE AMOUNT  OF  SUCH  OVERPAYMENT. IF
THE  COMMISSIONER DETERMINES  THAT  THE  COMPANY'S
CLAIM OF OVERPAYMENT IS NOT VALID, EITHER IN WHOLE
OR IN PART,  HE  SHALL MAIL NOTICE OF THE PROPOSED
DISALLOWANCE IN WHOLE  OR  IN PART OF THE CLAIM TO
THE COMPANY, WHICH  NOTICE SHALL SET FORTH BRIEFLY
THE COMMISSIONER'S FINDINGS  OF FACT AND THE BASIS
OF DISALLOWANCE IN  EACH  CASE DECIDED IN WHOLE OR
IN PART ADVERSELY  TO  THE  CLAIMANT.  SIXTY  DAYS
AFTER THE DATE  ON WHICH IT IS MAILED, A NOTICE OF
PROPOSED  DISALLOWANCE SHALL  CONSTITUTE  A  FINAL
DISALLOWANCE EXCEPT ONLY  FOR  SUCH  AMOUNTS AS TO
WHICH  THE  COMPANY  HAS  FILED,  AS  PROVIDED  IN
SUBDIVISION  (2) OF  THIS  SUBSECTION,  A  WRITTEN
PROTEST WITH THE COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE  PROPOSED DISALLOWANCE, THE COMPANY
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED DISALLOWANCE IN WHICH IT SETS
FORTH THE GROUNDS  ON  WHICH THE PROTEST IS BASED.
IF A PROTEST  IS  FILED,  THE  COMMISSIONER  SHALL
RECONSIDER THE PROPOSED  DISALLOWANCE  AND, IF THE
COMPANY HAS SO  REQUESTED,  MAY  GRANT OR DENY THE
COMPANY OR ITS  AUTHORIZED REPRESENTATIVES AN ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  COMPANY,  WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
COMPANY.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
COMPANY'S  PROTEST  SHALL   BE   FINAL   UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS  ACTION TO THE COMPANY UNLESS
WITHIN  SUCH PERIOD  THE  COMPANY  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-237.
    (b)  (1)  Any  company  whose  return  to  the
Director  of Internal  Revenue  has  been  amended
shall, within ninety  days  after having filed the
amended return, make  an  amended  return  to  the
commissioner. The time  for filing such [affidavit
or]  amended  return   may   be  extended  by  the
commissioner  upon  due   cause  shown.  If,  upon
examination,  the  commissioner   finds  that  the
[taxpayer] COMPANY is liable for the payment of an
additional tax, he shall, within a reasonable time
from  the receipt  of  such  amended  return,  [or
affidavit, notify the taxpayer] NOTIFY THE COMPANY
of the amount  of  such  additional  tax, together
with interest thereon  computed at the rate of one
per cent per  month  or  fraction thereof from the
date when the original tax became due and payable.
Within thirty days  of the mailing of such notice,
the   [taxpayer]  COMPANY   shall   pay   to   the
commissioner, in cash  or by check, draft or money
order, drawn to  the  order of the Commissioner of
Revenue Services, the  amount  of  such additional
tax and interest.  If,  upon  examination  of such
amended   return  [or   affidavit]   and   related
information,  the  commissioner   finds  that  the
[taxpayer] COMPANY has  overpaid  the  tax due the
state and has not received from or been allowed by
the  United  States   government,  or  any  agency
thereof, a credit  or a benefit, as a deduction or
otherwise, for or  by  reason of such overpayment,
the [taxpayer] COMPANY  shall be paid by the State
Treasurer,  upon order  of  the  Comptroller,  the
amount of such  overpayment.  IF  THE COMMISSIONER
DETERMINES THAT THE COMPANY'S CLAIM OF OVERPAYMENT
IS NOT VALID, EITHER IN WHOLE OR IN PART, HE SHALL
MAIL NOTICE OF  THE PROPOSED DISALLOWANCE IN WHOLE
OR IN PART  OF  THE  CLAIM  TO  THE COMPANY, WHICH
NOTICE SHALL SET  FORTH BRIEFLY THE COMMISSIONER'S
FINDINGS OF FACT  AND THE BASIS OF DISALLOWANCE IN
EACH CASE DECIDED IN WHOLE OR IN PART ADVERSELY TO
THE CLAIMANT. SIXTY  DAYS  AFTER THE DATE ON WHICH
IT IS MAILED,  A  NOTICE  OF PROPOSED DISALLOWANCE
SHALL CONSTITUTE A  FINAL DISALLOWANCE EXCEPT ONLY
FOR SUCH AMOUNTS  AS  TO  WHICH  THE  COMPANY  HAS
FILED, AS PROVIDED  IN  SUBDIVISION  (2)  OF  THIS
SUBSECTION,   A   WRITTEN    PROTEST    WITH   THE
COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE  PROPOSED DISALLOWANCE, THE COMPANY
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED DISALLOWANCE IN WHICH IT SETS
FORTH THE GROUNDS  ON  WHICH THE PROTEST IS BASED.
IF A PROTEST  IS  FILED,  THE  COMMISSIONER  SHALL
RECONSIDER THE PROPOSED  DISALLOWANCE  AND, IF THE
COMPANY HAS SO  REQUESTED,  MAY  GRANT OR DENY THE
COMPANY OR ITS  AUTHORIZED REPRESENTATIVES AN ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  COMPANY,  WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
COMPANY.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
COMPANY'S  PROTEST  SHALL   BE   FINAL   UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS  ACTION TO THE COMPANY UNLESS
WITHIN  SUCH PERIOD  THE  COMPANY  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-237.
    Sec. 54. Subsection  (a) of section 12-268c of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  (1)  Any  company  or  municipal  utility
included  in  section  12-249,  12-256  or  12-264
believing that it has overpaid any taxes due under
the provisions of chapter 210, 211 or 212 may file
a  claim  for   refund   in   writing   with   the
commissioner within three  years from the due date
for which such  overpayment  was made, stating the
specific grounds upon  which the claim is founded.
FAILURE TO FILE A CLAIM WITHIN THE TIME PRESCRIBED
IN THIS SECTION CONSTITUTES A WAIVER OF ANY DEMAND
AGAINST THE STATE  ON  ACCOUNT OF OVERPAYMENT. Not
later than ninety  days  following receipt of such
claim for refund, the commissioner shall determine
whether such claim  is  valid  and,  if  so,  said
commissioner shall notify the STATE Comptroller of
the  amount  of   such   refund   and   the  STATE
Comptroller  shall draw  an  order  on  the  STATE
Treasurer in the  amount  thereof  for  payment to
such company or  municipal utility. [Within thirty
days after disallowing  any  claim  in whole or in
part, the commissioner  shall  serve notice of his
action on the  claimant.  Failure  to file a claim
within  the  time   prescribed   in  this  section
constitutes a waiver  of  any  demand  against the
state  on  account   of   overpayment.]   IF   THE
COMMISSIONER DETERMINES THAT  SUCH  CLAIM  IS  NOT
VALID, EITHER IN  WHOLE  OR IN PART, HE SHALL MAIL
NOTICE OF THE PROPOSED DISALLOWANCE IN WHOLE OR IN
PART OF THE  CLAIM  TO  THE CLAIMANT, WHICH NOTICE
SHALL  SET  FORTH   BRIEFLY   THE   COMMISSIONER'S
FINDINGS OF FACT  AND THE BASIS OF DISALLOWANCE IN
EACH CASE DECIDED IN WHOLE OR IN PART ADVERSELY TO
THE CLAIMANT. SIXTY  DAYS  AFTER THE DATE ON WHICH
IT IS MAILED,  A  NOTICE  OF PROPOSED DISALLOWANCE
SHALL CONSTITUTE A  FINAL DISALLOWANCE EXCEPT ONLY
FOR SUCH AMOUNTS  AS  TO WHICH THE TAXPAYER FILED,
AS PROVIDED IN SUBDIVISION (2) OF THIS SUBSECTION,
A WRITTEN PROTEST WITH THE COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE  PROPOSED DISALLOWANCE, THE COMPANY
OR   MUNICIPAL   UTILITY   MAY   FILE   WITH   THE
COMMISSIONER  A  WRITTEN   PROTEST   AGAINST   THE
PROPOSED DISALLOWANCE IN  WHICH IT SHALL SET FORTH
THE GROUNDS ON  WHICH  THE  PROTEST IS BASED. IF A
PROTEST   IS   FILED,   THE   COMMISSIONER   SHALL
RECONSIDER THE PROPOSED  DISALLOWANCE  AND, IF THE
COMPANY OR MUNICIPAL UTILITY HAS SO REQUESTED, MAY
GRANT OR DENY  THE COMPANY OR MUNICIPAL UTILITY OR
ITS AUTHORIZED REPRESENTATIVES AN ORAL HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE COMPANY OR MUNICIPAL UTILITY,
WHICH  NOTICE  SHALL   SET   FORTH   BRIEFLY   THE
COMMISSIONER'S FINDINGS OF  FACT  AND THE BASIS OF
DECISION IN EACH  CASE DECIDED IN WHOLE OR IN PART
ADVERSELY TO THE COMPANY OR MUNICIPAL UTILITY.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
COMPANY OR MUNICIPAL  UTILITY'S  PROTEST  SHALL BE
FINAL UPON THE  EXPIRATION  OF  ONE MONTH FROM THE
DATE ON WHICH HE MAILS NOTICE OF HIS ACTION TO THE
COMPANY OR MUNICIPAL  UTILITY  UNLESS  WITHIN SUCH
PERIOD  THE COMPANY  OR  MUNICIPAL  UTILITY  SEEKS
JUDICIAL    REVIEW    OF     THE    COMMISSIONER'S
DETERMINATION PURSUANT TO SECTION 12-268l.
    Sec. 55. Subsection  (c) of section 12-412d of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (c)  (1)  Said   commissioner   shall  make  a
determination as to  any  such  application within
ninety  days  after   receipt   thereof   and,  if
approved,  transmit such  approval  to  the  STATE
Comptroller who shall  draw  his  order  upon  the
STATE Treasurer for  payment  of  such refund. [If
such application is  disapproved said commissioner
shall give written  notice  of  such action to the
company submitting such  application. Such company
may apply in writing within thirty days after such
notification is delivered or received by mail, for
a hearing, setting  forth reasons why such hearing
should  be  granted.   Said   commissioner   shall
promptly consider such  request  and  may grant or
deny the hearing  requested.  If  the  hearing  is
denied, such company  shall be notified forthwith.
If it is  granted,  said commissioner shall notify
such company of  the  time and place fixed for the
hearing. After such  hearing said commissioner may
make such order  in the premises as appears to him
just and lawful  and  shall furnish a copy of such
order to the  company.  (2) Said commissioner may,
at any time  within  three years after the date of
receipt of such  application  for  refund, examine
such application and supporting documentation and,
in case any error is disclosed by such examination
notify  the company  thereof  within  thirty  days
after  such disclosure.  Said  commissioner  shall
order a hearing  concerning  such  refund  in  the
manner provided in  section 12-421 for purposes of
any  return  submitted  in  accordance  with  this
chapter,   including   procedures    related    to
subsequent  appeal  as   provided   under  section
12-422.] IF THE  COMMISSIONER DETERMINES THAT SUCH
APPLICATION IS NOT  VALID,  EITHER  IN WHOLE OR IN
PART,  HE  SHALL   MAIL  NOTICE  OF  THE  PROPOSED
DISALLOWANCE TO THE  APPLICANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT AND THE  BASIS  OF  DISALLOWANCE IN EACH CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
APPLICANT. SIXTY DAYS  AFTER  THE DATE ON WHICH IT
IS MAILED, A NOTICE OF PROPOSED DISALLOWANCE SHALL
CONSTITUTE A FINAL  DISALLOWANCE  EXCEPT  ONLY FOR
SUCH AMOUNTS AS  TO WHICH THE APPLICANT HAS FILED,
AS PROVIDED IN SUBDIVISION (2) OF THIS SUBSECTION,
A WRITTEN PROTEST WITH THE COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING   OF  THE   PROPOSED   DISALLOWANCE,   THE
APPLICANT MAY FILE WITH THE COMMISSIONER A WRITTEN
PROTEST AGAINST THE PROPOSED DISALLOWANCE IN WHICH
THE APPLICANT SHALL SET FORTH THE GROUNDS ON WHICH
THE PROTEST IS  BASED.  IF A PROTEST IS FILED, THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   APPLICANT   HAS  SO
REQUESTED, MAY GRANT  OR DENY THE APPLICANT OR THE
APPLICANT'S  AUTHORIZED  REPRESENTATIVES  AN  ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE APPLICANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
APPLICANT.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
APPLICANT'S  PROTEST  SHALL   BE  FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF HIS ACTION TO THE APPLICANT UNLESS
WITHIN SUCH PERIOD  THE  APPLICANT  SEEKS JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-422.
    (5) THE COMMISSIONER  MAY,  AT ANY TIME WITHIN
THREE YEARS AFTER  THE  DATE  OF  RECEIPT  OF SUCH
APPLICATION FOR REFUND,  EXAMINE  SUCH APPLICATION
AND  SUPPORTING DOCUMENTATION  AND,  IN  CASE  ANY
ERROR IS DISCLOSED  BY  SUCH  EXAMINATION,  MAIL A
NOTICE OF ASSESSMENT  IN  THE  MANNER  PROVIDED IN
SECTION 12-415 AS  IF A RETURN HAD BEEN FILED WITH
WHICH THE COMMISSIONER  WAS NOT SATISFIED. IN SUCH
EVENT, THE APPLICANT MAY PETITION FOR REASSESSMENT
IN THE TIME AND MANNER PROVIDED IN SECTION 12-418.
THE ORDER OR DECISION OF THE COMMISSIONER UPON THE
PETITION  FOR REASSESSMENT  SHALL  BE  SUBJECT  TO
JUDICIAL REVIEW IN THE TIME AND MANNER PROVIDED IN
SECTION 12-422.
    Sec. 56. Subsection  (5)  of section 12-425 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (5) [Within thirty  days after disallowing any
claim in whole  or  in part the commissioner shall
serve notice of  his action on the claimant in the
manner  prescribed for  service  of  notice  of  a
deficiency assessment.] (A) THE COMMISSIONER, UPON
RECEIPT OF SUCH  CLAIM FOR REFUND, SHALL DETERMINE
WHETHER SUCH CLAIM  IS  VALID  AND,  IF  SO, SHALL
NOTIFY THE STATE COMPTROLLER OF THE AMOUNT OF SUCH
REFUND AND THE  STATE  COMPTROLLER  SHALL  DRAW AN
ORDER ON THE  STATE  TREASURER FOR PAYMENT OF SUCH
REFUND. IF THE  COMMISSIONER  DETERMINES THAT SUCH
CLAIM IS NOT VALID, EITHER IN WHOLE OR IN PART, HE
SHALL MAIL NOTICE  OF THE PROPOSED DISALLOWANCE TO
THE CLAIMANT IN  THE MANNER PRESCRIBED FOR SERVICE
OF NOTICE OF  A  DEFICIENCY ASSESSMENT. SIXTY DAYS
AFTER THE DATE  ON WHICH IT IS MAILED, A NOTICE OF
PROPOSED  DISALLOWANCE SHALL  CONSTITUTE  A  FINAL
DISALLOWANCE EXCEPT ONLY  FOR  SUCH  AMOUNTS AS TO
WHICH  THE CLAIMANT  HAS  FILED,  AS  PROVIDED  IN
SUBPARAGRAPH (B) OF  THIS  SUBDIVISION,  A WRITTEN
PROTEST WITH THE COMMISSIONER.
    (B) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED  DISALLOWANCE  IN  WHICH  THE
CLAIMANT  SETS FORTH  THE  GROUNDS  ON  WHICH  THE
PROTEST IS BASED.  IF  A  PROTEST  IS  FILED,  THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   CLAIMANT   HAS   SO
REQUESTED, MAY GRANT  OR  DENY THE CLAIMANT OR THE
CLAIMANT'S  AUTHORIZED  REPRESENTATIVES   AN  ORAL
HEARING.
    (C) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (D) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-422.
    Sec.  57.  Section   12-452   of  the  general
statutes is amended  by  adding  subsection (c) as
follows:
    (NEW) (c) (1) Any person believing that he has
overpaid any tax  due under the provisions of this
chapter may file,  in  writing, a claim for refund
with the commissioner  within three years from the
due date for  which  such  overpayment  was  made,
stating the specific  grounds upon which the claim
is founded. Failure  to  file  a  claim within the
time prescribed in  this  subsection constitutes a
waiver of any  demand against the state on account
of such overpayment.  Not  later  than ninety days
following receipt of  such  claim  for refund, the
commissioner shall determine whether such claim is
valid and, if so determined the commissioner shall
notify the State Comptroller of the amount of such
refund and the  State  Comptroller  shall  draw an
order on the State Treasurer in the amount thereof
for payment to  the  claimant. If the commissioner
determines that such claim is not valid, either in
whole or in  part,  he  shall  mail  notice of the
proposed disallowance in  whole  or in part of the
claim to the  claimant,  which  notice  shall  set
forth briefly the  commissioner's findings of fact
and the basis of disallowance in each case decided
in whole or  in  part  adversely  to the claimant.
Sixty days after the date on which it is mailed, a
notice of proposed disallowance shall constitute a
final disallowance except only for such amounts as
to which the  claimant  has  filed, as provided in
subdivision  (2) of  this  subsection,  a  written
protest with the commissioner.
    (2) On or  before  the  sixtieth day after the
mailing of the proposed disallowance, the claimant
may file with  the  commissioner a written protest
against the proposed  disallowance  in  which  the
claimant  sets forth  the  grounds  on  which  the
protest is based.  If  the  protest  is filed, the
commissioner   shall   reconsider   the   proposed
disallowance  and,  if   the   claimant   has   so
requested, may grant  or  deny the claimant or the
claimant's  authorized  representatives   an  oral
hearing.
    (3) The commissioner  shall mail notice of his
determination to the  claimant, which notice shall
set forth briefly  the  commissioner's findings of
fact  and the  basis  of  decision  in  each  case
decided in whole  or  in  part  adversely  to  the
claimant.
    (4) The action  of  the  commissioner  on  the
claimant's  protest  shall   be   final  upon  the
expiration of one  month from the date on which he
mails notice of  his action to the claimant unless
within such period  the  claimant  seeks  judicial
review   of   the   commissioner's   determination
pursuant to section 12-448.
    Sec. 58. Subsection  (d)  of section 12-459 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (d) (1) The  commissioner shall, within ninety
days  after  receipt  of  any  claims  under  this
section, transmit all  claims  approved  by him to
the Comptroller, who shall draw his order upon the
STATE Treasurer for  payment.  IF THE COMMISSIONER
DETERMINES  THAT ANY  SUCH  CLAIM  IS  NOT  VALID,
EITHER IN WHOLE  OR  IN PART, HE SHALL MAIL NOTICE
OF THE PROPOSED  DISALLOWANCE  TO THE CLAIMANT AND
SUCH   NOTICE  SHALL   SET   FORTH   BRIEFLY   THE
COMMISSIONER'S FINDINGS OF  FACT  AND THE BASIS OF
DISALLOWANCE IN EACH  CASE  DECIDED IN WHOLE OR IN
PART ADVERSELY TO  THE  CLAIMANT. SIXTY DAYS AFTER
THE DATE ON  WHICH  IT  IS  MAILED,  A  NOTICE  OF
PROPOSED  DISALLOWANCE SHALL  CONSTITUTE  A  FINAL
DISALLOWANCE EXCEPT ONLY  FOR  SUCH  AMOUNTS AS TO
WHICH  THE CLAIMANT  HAS  FILED,  AS  PROVIDED  IN
SUBDIVISION  (2) OF  THIS  SUBSECTION,  A  WRITTEN
PROTEST WITH THE COMMISSIONER OF REVENUE SERVICES.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED  DISALLOWANCE  IN  WHICH  THE
CLAIMANT  SETS FORTH  THE  GROUNDS  ON  WHICH  THE
PROTEST IS BASED.  IF  A  PROTEST  IS  FILED,  THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   CLAIMANT   HAS   SO
REQUESTED, MAY GRANT  OR  DENY THE CLAIMANT OR THE
CLAIMANT'S  AUTHORIZED  REPRESENTATIVES   AN  ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-463.
    Sec. 59. Subsections  (b)  and  (c) of section
12-480 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (b) (1) The  Commissioner  of Revenue Services
shall not allow  such refund except after an audit
of the applicant's  records and he shall audit the
records of an  applicant at least once a year. [If
said commissioner refuses to allow a refund in the
amount claimed by the applicant, the applicant may
request a formal  hearing on the application for a
refund.  Such  hearing   shall  be  held  by  said
commissioner after notice  to the applicant of not
less  than  ten   days.]  THE  COMMISSIONER  SHALL
TRANSMIT  ALL  CLAIMS   APPROVED  BY  HIM  TO  THE
COMPTROLLER, WHO SHALL  DRAW AN ORDER ON THE STATE
TREASURER  FOR PAYMENT  OF  SUCH  REFUND.  IF  THE
COMMISSIONER DETERMINES THAT ANY SUCH CLAIM IS NOT
VALID, EITHER IN  WHOLE  OR IN PART, HE SHALL MAIL
NOTICE  OF  THE   PROPOSED   DISALLOWANCE  TO  THE
CLAIMANT, WHICH NOTICE SHALL SET FORTH BRIEFLY THE
COMMISSIONER'S FINDINGS OF  FACT  AND THE BASIS OF
DISALLOWANCE IN EACH  CASE  DECIDED IN WHOLE OR IN
PART ADVERSELY TO  THE  CLAIMANT. SIXTY DAYS AFTER
THE DATE ON  WHICH  IT  IS  MAILED,  A  NOTICE  OF
PROPOSED  DISALLOWANCE SHALL  CONSTITUTE  A  FINAL
DISALLOWANCE EXCEPT ONLY  FOR  SUCH  AMOUNTS AS TO
WHICH  THE CLAIMANT  HAS  FILED,  AS  PROVIDED  IN
SUBDIVISION  (2) OF  THIS  SUBSECTION,  A  WRITTEN
PROTEST WITH THE COMMISSIONER OF REVENUE SERVICES.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED  DISALLOWANCE  IN  WHICH  THE
CLAIMANT  SETS FORTH  THE  GROUNDS  ON  WHICH  THE
PROTEST IS BASED.  IF  A  PROTEST  IS  FILED,  THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   CLAIMANT   HAS   SO
REQUESTED, MAY GRANT  OR  DENY THE CLAIMANT OR THE
CLAIMANT'S  AUTHORIZED  REPRESENTATIVES   AN  ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SUBSECTION (b) OF SECTION 12-489.
    (c) (1) Any  motor  carrier who has registered
any vehicle and  paid  a  fee  pursuant to section
12-487, and who  claims  that such registration or
payment is illegal  for  any  reason,  may claim a
refund or credit,  in  writing,  within six months
after   such   registration   or   payment.   [The
commissioner shall notify  such  motor  carrier of
his action on  the  claim  for  a refund or credit
within sixty days  of  the  filing of such claim.]
If,   upon  examination   of   such   claim,   the
commissioner determines that  such registration or
payment was illegal,  the  STATE  Treasurer,  upon
order of the  Comptroller,  shall refund or credit
the amount of  any such fee to such motor carrier.
IF THE COMMISSIONER  DETERMINES  THAT REGISTRATION
OR PAYMENT WAS  LEGAL, HE SHALL MAIL NOTICE OF THE
PROPOSED DISALLOWANCE TO  THE MOTOR CARRIER, WHICH
NOTICE SHALL SET  FORTH BRIEFLY THE COMMISSIONER'S
FINDINGS OF FACT  AND THE BASIS OF DISALLOWANCE IN
EACH CASE DECIDED IN WHOLE OR IN PART ADVERSELY TO
THE CLAIMANT. SIXTY  DAYS  AFTER THE DATE ON WHICH
IT IS MAILED,  A  NOTICE  OF PROPOSED DISALLOWANCE
SHALL CONSTITUTE A  FINAL DISALLOWANCE EXCEPT ONLY
FOR SUCH AMOUNTS  AS  TO  WHICH  THE  CLAIMANT HAS
FILED, AS PROVIDED  IN  SUBDIVISION  (2)  OF  THIS
SUBSECTION,   A   WRITTEN    PROTEST    WITH   THE
COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED  DISALLOWANCE  IN  WHICH  THE
CLAIMANT  SETS FORTH  THE  GROUNDS  ON  WHICH  THE
PROTEST IS BASED.  IF  A  PROTEST  IS  FILED,  THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   CLAIMANT   HAS   SO
REQUESTED, MAY GRANT  OR  DENY THE CLAIMANT OR THE
CLAIMANT'S  AUTHORIZED  REPRESENTATIVES   AN  ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SUBSECTION (b) OF SECTION 12-489.
    Sec.  60.  Section   12-550   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) Any person  believing that he has overpaid
any taxes due  under this chapter may file a claim
for refund in writing with the commissioner within
three years from  the  due  date  for  which  such
overpayment was made  stating the specific grounds
upon which the claim is founded. Failure to file a
claim within the  time  prescribed in this section
constitutes a waiver  of  any  demand  against the
state on account  of overpayment. The commissioner
shall review such  claim  within a reasonable time
and, if he  determines  a  refund is due, he shall
credit the overpayment against any amount then due
and payable from  the person under this chapter or
any other act administered by the commissioner and
the balance shall  be  refunded, upon order of the
Comptroller, to the  person.  [Within  thirty days
after disallowing any  claim  in  whole or in part
the commissioner shall  serve notice of his action
on the claimant.]  IF  THE COMMISSIONER DETERMINES
THAT SUCH CLAIM  IS  NOT VALID, EITHER IN WHOLE OR
IN PART, HE  SHALL  MAIL  NOTICE  OF  THE PROPOSED
DISALLOWANCE TO THE  CLAIMANT,  WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT AND THE  BASIS  OF  DISALLOWANCE IN EACH CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT. SIXTY DAYS AFTER THE DATE ON WHICH IT IS
MAILED, A NOTICE  OF  PROPOSED  DISALLOWANCE SHALL
CONSTITUTE A FINAL  DISALLOWANCE  EXCEPT  ONLY FOR
SUCH AMOUNTS AS  TO  WHICH THE CLAIMANT HAS FILED,
AS PROVIDED IN  SUBSECTION  (b) OF THIS SECTION, A
WRITTEN PROTEST WITH THE COMMISSIONER.
    (b) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED  DISALLOWANCE  IN  WHICH  THE
CLAIMANT  SETS FORTH  THE  GROUNDS  ON  WHICH  THE
PROTEST IS BASED.  IF  A  PROTEST  IS  FILED,  THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   CLAIMANT   HAS   SO
REQUESTED, MAY GRANT  OR  DENY THE CLAIMANT OR THE
CLAIMANT'S  AUTHORIZED  REPRESENTATIVES   AN  ORAL
HEARING.
    (c) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (d) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-554.
    Sec. 61. Subsection  (a)  of section 12-589 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) (1) Any  company  believing  that  it  has
overpaid any taxes  imposed  under  section 12-587
may file a  claim  for  refund in writing with the
commissioner within three  years from the due date
for which such  overpayment  was made, stating the
specific grounds upon  which the claim is founded.
FAILURE TO FILE A CLAIM WITHIN THE TIME PRESCRIBED
IN THIS SECTION CONSTITUTES A WAIVER OF ANY DEMAND
AGAINST THE STATE  ON  ACCOUNT OF OVERPAYMENT. Not
later than ninety  days  following receipt of such
claim for refund  the commissioner shall determine
whether  such claim  is  valid  and  if  so,  said
commissioner shall notify the STATE Comptroller of
the  amount  of   such   refund   and   the  STATE
Comptroller  shall draw  an  order  on  the  STATE
Treasurer in the  amount  thereof  for  payment to
such   company.   [Within    thirty   days   after
disallowing any claim  in  whole  or  in part, the
commissioner shall serve  notice  of his action on
the claimant. Failure  to  file a claim within the
time  prescribed in  this  section  constitutes  a
waiver of any  demand against the state on account
of overpayment.] IF  THE  COMMISSIONER  DETERMINES
THAT SUCH CLAIM  IS  NOT VALID, EITHER IN WHOLE OR
IN PART, HE  SHALL  MAIL  NOTICE  OF  THE PROPOSED
DISALLOWANCE TO THE  CLAIMANT,  WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT AND THE  BASIS  OF  DISALLOWANCE IN EACH CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT. SIXTY DAYS AFTER THE DATE ON WHICH IT IS
MAILED, A NOTICE  OF  PROPOSED  DISALLOWANCE SHALL
CONSTITUTE A FINAL  DISALLOWANCE  EXCEPT  ONLY FOR
SUCH AMOUNTS AS  TO  WHICH THE CLAIMANT HAS FILED,
AS PROVIDED IN SUBDIVISION (2) OF THIS SUBSECTION,
A WRITTEN PROTEST WITH THE COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED  DISALLOWANCE  IN  WHICH  THE
CLAIMANT  SETS FORTH  THE  GROUNDS  ON  WHICH  THE
PROTEST IS BASED.  IF  A  PROTEST  IS  FILED,  THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   CLAIMANT   HAS   SO
REQUESTED, MAY GRANT  OR  DENY THE CLAIMANT OR THE
CLAIMANT'S  AUTHORIZED  REPRESENTATIVES   AN  ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-597.
    Sec.  62.  Section   12-638f  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) Any person  believing that he has overpaid
any taxes due  under this chapter may file a claim
for refund in writing with the commissioner within
three years from  the  due  date  for  which  such
overpayment was made  stating the specific grounds
upon which the claim is founded. Failure to file a
claim within the  time  prescribed in this section
constitutes a waiver  of  any  demand  against the
state on account  of overpayment. The commissioner
shall review such  claim  within a reasonable time
and, if he  determines  a  refund is due, he shall
credit the overpayment against any amount then due
and payable from the person under this chapter, or
any other act administered by the commissioner and
the balance shall  be  refunded, upon order of the
Comptroller, to the  person.  [Within  thirty days
after disallowing any  claim  in  whole or in part
the commissioner shall  serve notice of his action
on the claimant.]  IF  THE COMMISSIONER DETERMINES
THAT SUCH CLAIM  IS  NOT VALID, EITHER IN WHOLE OR
IN PART, HE  SHALL  MAIL  NOTICE  OF  THE PROPOSED
DISALLOWANCE TO THE  CLAIMANT,  WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT AND THE  BASIS  OF  DISALLOWANCE IN EACH CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT. SIXTY DAYS AFTER THE DATE ON WHICH IT IS
MAILED, A NOTICE  OF  PROPOSED  DISALLOWANCE SHALL
CONSTITUTE A FINAL  DISALLOWANCE  EXCEPT  ONLY FOR
SUCH AMOUNTS AS  TO  WHICH THE CLAIMANT HAS FILED,
AS PROVIDED IN  SUBSECTION  (b) OF THIS SECTION, A
WRITTEN PROTEST WITH THE COMMISSIONER.
    (b) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED DISALLOWANCE IN WHICH HE SETS
FORTH THE GROUNDS  ON  WHICH THE PROTEST IS BASED.
IF A PROTEST  IS  FILED,  THE  COMMISSIONER  SHALL
RECONSIDER THE PROPOSED  DISALLOWANCE  AND, IF THE
CLAIMANT HAS SO  REQUESTED,  MAY GRANT OR DENY THE
CLAIMANT    OR    THE     CLAIMANT'S    AUTHORIZED
REPRESENTATIVES AN ORAL HEARING.
    (c) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (d) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SUBSECTION (b) OF SECTION 12-638i.
    Sec. 63. Subsection  (a)  of section 12-732 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a) (1) If  any  tax  has  been  overpaid, the
taxpayer may file  a  claim  for refund in writing
with the commissioner  within three years from the
due date for  which  such  overpayment  was  made,
stating the specific  grounds upon which the claim
is founded. Not  later  than ninety days following
receipt of such  claim for refund the commissioner
shall determine whether  such  claim is valid and,
if so, said  commissioner  shall  notify the STATE
Comptroller of the  amount  of such refund and the
STATE Comptroller shall draw an order on the STATE
Treasurer in the amount thereof for payment to the
taxpayer. For purposes  of this section, an income
tax return that  is  filed  before  the  last  day
prescribed  by law  or  by  a  regulation  adopted
pursuant to law  for  the  filing thereof shall be
deemed to be filed on such last day. To the amount
of such refund, [other than any refund of tax paid
with a tentative  return,]  there  shall  be added
interest at the rate of two-thirds of one per cent
for each month  or  fraction thereof which elapses
between (A) the ninetieth day following receipt BY
THE COMMISSIONER of  such claim for refund [by the
commissioner] ON A  PERMITTED FORM, CONTAINING THE
TAXPAYER'S  NAME,  ADDRESS   AND  SOCIAL  SECURITY
NUMBER OR FEDERAL  EMPLOYER IDENTIFICATION NUMBER,
THE REQUIRED SIGNATURE,  AND  SUFFICIENT  REQUIRED
INFORMATION, WHETHER ON  THE RETURN OR ON REQUIRED
ATTACHMENTS,    TO   PERMIT    THE    MATHEMATICAL
VERIFICATION OF TAX LIABILITY SHOWN ON THE RETURN,
and (B) the  date  of  notice  by the commissioner
that such refund  is  due. Failure to file a claim
within  the  time   prescribed   in  this  section
constitutes a waiver  of  any  demand  against the
state on account  of  overpayment. [Notice] IF THE
COMMISSIONER DETERMINES THAT  SUCH  CLAIM  IS  NOT
VALID, EITHER IN  WHOLE  OR IN PART, HE SHALL MAIL
NOTICE of the  disallowance in whole or in part of
the claim [shall  be  mailed]  to the claimant and
such   notice  shall   set   forth   briefly   the
commissioner's findings of  fact  and the basis of
disallowance in each  case  decided in whole or in
part adversely to the claimant. [The action of the
commissioner in disallowing  the  claim  is  final
upon the expiration  of  one  month  from the date
when he mails  notice  of  his disallowance to the
taxpayer. A taxpayer  may  seek judicial review of
the disallowance under section 12-730.] SIXTY DAYS
AFTER THE DATE  ON WHICH IT IS MAILED, A NOTICE OF
PROPOSED  DISALLOWANCE SHALL  CONSTITUTE  A  FINAL
DISALLOWANCE EXCEPT ONLY  FOR  SUCH  AMOUNTS AS TO
WHICH  THE CLAIMANT  HAS  FILED,  AS  PROVIDED  IN
SUBDIVISION  (2) OF  THIS  SUBSECTION,  A  WRITTEN
PROTEST WITH THE COMMISSIONER.
    (2) ON OR  BEFORE  THE  SIXTIETH DAY AFTER THE
MAILING OF THE PROPOSED DISALLOWANCE, THE CLAIMANT
MAY FILE WITH  THE  COMMISSIONER A WRITTEN PROTEST
AGAINST THE PROPOSED  DISALLOWANCE  IN  WHICH  THE
CLAIMANT  SETS FORTH  THE  GROUNDS  ON  WHICH  THE
PROTEST IS BASED.  IF  A  PROTEST  IS  FILED,  THE
COMMISSIONER   SHALL   RECONSIDER   THE   PROPOSED
DISALLOWANCE  AND,  IF   THE   CLAIMANT   HAS   SO
REQUESTED, MAY GRANT  OR  DENY THE CLAIMANT OR THE
CLAIMANT'S  AUTHORIZED  REPRESENTATIVES   AN  ORAL
HEARING.
    (3) THE COMMISSIONER  SHALL MAIL NOTICE OF HIS
DETERMINATION TO THE  CLAIMANT, WHICH NOTICE SHALL
SET FORTH BRIEFLY  THE  COMMISSIONER'S FINDINGS OF
FACT  AND THE  BASIS  OF  DECISION  IN  EACH  CASE
DECIDED IN WHOLE  OR  IN  PART  ADVERSELY  TO  THE
CLAIMANT.
    (4) THE ACTION  OF  THE  COMMISSIONER  ON  THE
CLAIMANT'S  PROTEST  SHALL   BE   FINAL  UPON  THE
EXPIRATION OF ONE  MONTH FROM THE DATE ON WHICH HE
MAILS NOTICE OF  HIS ACTION TO THE CLAIMANT UNLESS
WITHIN SUCH PERIOD  THE  CLAIMANT  SEEKS  JUDICIAL
REVIEW   OF   THE   COMMISSIONER'S   DETERMINATION
PURSUANT TO SECTION 12-730.
    Sec. 64. Section 2-32c of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    Not more than ninety days after adjournment of
any regular or  special  session  of  the  General
Assembly or September  first immediately following
adjournment of a  regular  session,  whichever  is
sooner,  the Connecticut  Advisory  Commission  on
Intergovernmental Relations, established  pursuant
to section 2-79a,  shall  submit to the speaker of
the House of  Representatives,  the  president pro
tempore of the  Senate, the majority leader of the
House of Representatives,  the  majority leader of
the Senate, the  minority  leader  of the House of
Representatives and the  minority  leader  of  the
Senate a report  which  lists  each  state mandate
enacted during said  regular or special session of
the General Assembly.  Within five days of receipt
of the report,  the  speaker and the president pro
tempore shall submit  the  report to the Secretary
of the Office  of  Policy and Management and refer
each state mandate to the joint standing committee
or select committee of the General Assembly having
cognizance of the  subject  matter of the mandate.
The secretary shall  provide  notice of the report
to   the   chief    elected   official   of   each
municipality.  [Each  committee  shall  conduct  a
public hearing on state mandates referred pursuant
to  this  section   and   within  thirty  days  of
submittal of the  report and referral of the state
mandates, the committee  shall  advise the speaker
and  president  pro   tempore   of  its  approval,
modification or rejection of the state mandate. If
a committee recommends  rejection  or modification
of  a  mandate,   the  committee  shall  introduce
legislation during the next regular session of the
General Assembly to  repeal  or  modify such state
mandate.]
    Sec.  65.  Section   45a-579  of  the  general
statutes is amended  by  adding  subsection (f) as
follows:
    (NEW) (f) In  a  case in which the estate of a
decedent receives a settlement in a wrongful death
action  and  a  beneficiary  of  the  estate  dies
intestate  within  seven   months   of  the  prior
decedent, and such  beneficiary's  estate receives
some part of such settlement, subsection (d) shall
be waived, and the interest of the beneficiary may
be  disclaimed  without   being   subject   to   a
nine-month   disclaimer  period,   provided   such
disclaimer is made on or before December 1, 1997.
    Sec.  66.  Section   12-492   of  the  general
statutes is repealed.
    Sec. 67. This  act  shall take effect from its
passage,  except  that  (1)  section  8  shall  be
applicable to taxes due and owing on or after July
1, 1995, (2)  sections  7,  41, 46 and 47 shall be
applicable  to calendar  years  commencing  on  or
after  January  1,   1997,  section  10  shall  be
applicable to income  years commencing on or after
January 1, 1997, section 30 shall be applicable to
sales  occurring on  or  after  January  1,  1997,
sections 43 and  44 shall be applicable to taxable
years commencing on  or after January 1, 1997; (3)
sections 24, 32  and  33  shall  be  applicable to
sales occurring on or after July 1, 1997, sections
27, 35 and  38  shall  be  applicable  to  taxable
periods commencing on  or  after July 1, 1997; (4)
sections 12 to  23,  inclusive, 25 and 31 shall be
applicable to sales  occurring on or after October
1,  1997;  (5)   sections   34  and  36  shall  be
applicable to sales  occurring on or after January
1, 1998; (6)  sections  2 to 6, inclusive, 11, 28,
29, 39, 40  and 45 shall take effect July 1, 1997,
and (7) sections  51  to 63, inclusive, shall take
effect July 1,  1997,  and be applicable to claims
for refund filed on or after said date.

Approved June 24, 1997