Substitute House Bill No. 6891
          Substitute House Bill No. 6891

              PUBLIC ACT NO. 97-286


AN ACT CONCERNING  MINOR  AND TECHNICAL CHANGES TO
THE  INCOME TAX  AND  ESTABLISHMENT  OF  A  BREAST
CANCER RESEARCH AND EDUCATION ACCOUNT.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 1. Subsection  (d)  of section 12-700a
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (d) (1) For  taxable  years  beginning  on  or
after January 1,  1994,  a credit shall be allowed
as provided herein  in  an  amount  equal  to  the
excess, if any,  of  the  adjusted net Connecticut
minimum tax imposed  for  all  prior taxable years
beginning on or  after  January  1, 1993, over the
amount allowable as a credit under this subsection
for such prior taxable years.
    (2) The credit  allowable  for  a taxable year
under this subsection is limited to the amount, if
any, by which (A)(i) the tax imposed under section
12-700, (ii) less  the  credit,  if  any,  allowed
under   section   12-704    exceeds   (B)(i)   the
Connecticut  minimum  tax,   [determined   without
regard to subparagraph  (A)(ii) or (B)(ii), as the
case may be, of subdivision (26) of subsection (a)
of section 12-701,  and] determined without regard
to whether the  individual  or the trust or estate
is subject to and required to pay for that taxable
year the federal  alternative  minimum  tax  under
Section 55 of the Internal Revenue Code, (ii) less
the credit, if  any,  allowed under subsection (e)
of this section.
    Sec. 2. Subdivision  (27) of subsection (a) of
section 12-701 of the general statutes is repealed
and the following is substituted in lieu thereof:
    (27) "Adjusted net  Connecticut  minimum  tax"
means  (A)  if  the  Connecticut  minimum  tax  is
calculated under subparagraph (A)(i) or (B)(i), as
the case may  be,  of  subdivision  (26)  of  this
subsection, the excess,  if  any,  of  (i) the net
Connecticut minimum tax,  less  the credit allowed
under subsection (e) of section 12-700a, over (ii)
the  amount  that   would   have   been   the  net
Connecticut minimum tax  provided  the adjustments
and items of preference specified in Section 53(d)
of the Internal  Revenue  Code  had  been  used in
determining the net  Connecticut minimum tax, less
the credit that  would  have  been  allowed  under
subsection (e) of  section  12-700a  for a similar
tax determined by  using  only the adjustments and
items of preference  specified in Section 53(d) of
the  Internal  Revenue   Code,   or   (B)  if  the
Connecticut  minimum  tax   is   calculated  under
subparagraph (A)(ii) or  (B)(ii),  as the case may
be, of subdivision  (26)  of this subsection, then
the product of  the  excess  that  is described in
subparagraph (A) of  this  subdivision and that is
determined  without regard  to  said  subparagraph
(A)(ii)  or  (B)(ii),  as  the  case  may  be,  of
subdivision (26) of this subsection, multiplied by
a fraction, the  numerator  of  which  is  the NET
Connecticut minimum tax,  as  IF  THE  CONNECTICUT
MINIMUM   TAX   WERE    calculated    under   said
subparagraph (A)(ii) or  (B)(ii),  as the case may
be, of subdivision (26) of this subsection and the
denominator  of  which   is  the  NET  Connecticut
minimum tax, as  IF  THE  CONNECTICUT  MINIMUM TAX
WERE calculated under  said subparagraph (A)(i) or
(B)(i), as the case may be, of subdivision (26) of
this subsection.
    Sec. 3. Subsection  (a)  of  section 12-701 of
the  general  statutes   is   amended   by  adding
subdivisions (33) and (34) as follows:
    (NEW) (33) "Partnership"  means  a partnership
as defined in  Section  7701(a)(2) of the Internal
Revenue   Code   and   the   regulations   adopted
thereunder, as from  time to time amended, and any
reference  in  this   chapter  or  in  regulations
adopted under this  chapter to a partnership shall
include  a  limited   liability  company  that  is
treated as a  partnership  for  federal income tax
purposes.
    (NEW)  (34)  "Partner"   means  a  partner  as
defined  in Section  7701(a)(2)  of  the  Internal
Revenue   Code   and   the   regulations   adopted
thereunder, as from  time to time amended, and any
reference  in  this   chapter  or  in  regulations
adopted under this  chapter  to  a  partner  shall
include a member  of  a  limited liability company
that  is treated  as  a  partnership  for  federal
income tax purposes.
    Sec. 4. Section 12-704 of the general statutes
is amended by adding subsection (e) as follows:
    (NEW) (e) Notwithstanding  the  provisions  of
subsection (d) of  this  section, if an individual
is not domiciled  in  this  state  but maintains a
permanent place of  abode  in this state and is in
this state for  an  aggregate  of  more  than  one
hundred eighty-three days  of  a  taxable year and
such individual is  domiciled  in another state of
the United States, a political subdivision of such
state, or the District of Columbia for the taxable
year, such individual  shall  be  allowed a credit
under this section  against  the tax otherwise due
under this chapter  for  income tax imposed by and
paid to the  qualifying jurisdiction in which such
individual  is  domiciled   on  such  individual's
income from intangible  personal  property, to the
extent such income  is  from property not employed
in a business,  trade,  profession  or  occupation
carried on in this state, and on such individual's
income  derived from  or  connected  with  sources
within another state  of  the United States or the
District  of Columbia  that  does  not  impose  an
income tax on  such  income. This subsection shall
apply only where  the  jurisdiction  in which such
individual  is  domiciled  allows  an  income  tax
credit for the  tax  imposed  by  this state to an
individual who is  domiciled  in  this state for a
taxable year but  maintains  a  permanent place of
abode  in  such   jurisdiction   and  is  in  such
jurisdiction for an  aggregate  of  more  than one
hundred eighty-three days of the taxable year that
is analogous to that provided in this subsection.
    Sec. 5. Subsection  (m)  of  section 12-722 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (m)  For  purposes  of  this  section,  if  an
individual  is  a  farmer  or  fisherman  for  any
taxable  year,  the   following  provisions  shall
apply: (1) There  shall be [two] ONLY ONE required
[instalments] INSTALMENT for the taxable year, (2)
the due date for [the first] SUCH instalment shall
be [June fifteenth of the taxable year and for the
second instalment shall  be]  January fifteenth of
the following taxable  year,  (3)  the  amount  of
[each]  such instalment  shall  be  equal  to  the
lesser   of  (A)   [thirty-seven   and   one-half]
SIXTY-SIX AND TWO-THIRDS per cent of the tax shown
on the return  for  the  taxable  year,  or, if no
return  is  filed,   [thirty-seven  and  one-half]
SIXTY-SIX AND TWO-THIRDS  per  cent of the tax for
such year, or  (B)  if  the preceding taxable year
was  a taxable  year  of  twelve  months  and  the
individual  filed  a   return  for  the  preceding
taxable year, [fifty]  ONE HUNDRED per cent of the
tax shown on  the return for the preceding taxable
year, (4) IF,  ON  OR  BEFORE  MARCH  FIRST OF THE
FOLLOWING TAXABLE YEAR,  THE  FARMER  OR FISHERMAN
FILES  A  RETURN  AND  PAYS  IN  FULL  THE  AMOUNT
COMPUTED ON THE  RETURN AS PAYABLE, NO ADDITION TO
TAX SHALL BE  IMPOSED UNDER SUBSECTION (a) OF THIS
SECTION WITH RESPECT  TO  ANY  UNDERPAYMENT OF THE
REQUIRED INSTALMENT, AS  PROVIDED  IN  SUBDIVISION
(3) OF THIS  SUBSECTION, FOR THE TAXABLE YEAR, and
[(4)] (5) an  individual  is a farmer or fisherman
for any taxable  year  if  such  individual  is  a
farmer  or  fisherman,   as   defined  in  Section
6654(i)(2) of the  Internal  Revenue Code, for the
taxable year.
    Sec.  6. (NEW)  (a)  There  is  established  a
breast cancer research and education account which
shall be a separate, nonlapsing account within the
General  Fund.  Any  moneys  collected  under  the
contribution  system  established   under  section
12-743 of the  general  statutes,  as  amended  by
section 7 of  this  act, shall be deposited by the
Commissioner of Revenue Services into the account.
This account may  also  receive moneys from public
and   private  sources   or   from   the   federal
government. All moneys  deposited  in  the account
shall be used  by  the Department of Public Health
or  persons  acting  under  a  contract  with  the
department, (1) to  assist breast cancer research,
education  and  breast  cancer  related  community
service  programs or  (2)  the  promotion  of  the
income  tax contribution  system  and  the  breast
cancer    research    and    education    account.
Expenditures from the  account  in any fiscal year
for the promotion  of  the  contribution system or
the account shall  not  exceed ten per cent of the
amount of moneys raised during the previous fiscal
year provided such  limitation  shall not apply to
an expenditure of  not  more than fifteen thousand
dollars from the  account  on  or  before  July 1,
1998, to reimburse  expenditures made on or before
said date, with prior written authorization of the
Commissioner   of  Public   Health,   by   private
organizations to promote  the  contribution system
and  the  breast  cancer  research  and  education
account.
    (b) The Commissioner  of  Public  Health shall
adopt   regulations,  in   accordance   with   the
provisions of chapter  54 of the general statutes,
to provide for the distribution of funds available
pursuant to this section and said section 12-743.
    Sec. 7. Section 12-743 of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    (a) Any taxpayer  filing  a  return under this
chapter [for taxable  years commencing on or after
January 1, 1993,]  may  contribute  any  part of a
refund  under  this   chapter  to  (1)  the  organ
transplant account established pursuant to section
17b-288, (2) the  AIDS  research education account
established pursuant to  section 19a-32a, [or] (3)
the endangered species, natural area preserves and
watchable wildlife account established pursuant to
section 22a-27l, OR (4) THE BREAST CANCER RESEARCH
AND  EDUCATION  ACCOUNT  ESTABLISHED  PURSUANT  TO
SECTION 6 OF  THIS  ACT  by  indicating on the tax
return,  in  a   manner   provided   for   by  the
Commissioner  of  Revenue   Services  pursuant  to
subsection (b) of  this  section, the amount to be
contributed to the account.
    (b) The Commissioner of Revenue Services shall
revise  the  tax  return  form  to  implement  the
provisions of subsection (a) of this section which
form shall include  spaces  on the return in which
taxpayers may indicate  their  intention to make a
contribution in accordance  with this section. The
spaces shall include  three boxes for each account
with  suggested whole  dollar  amounts,  with  the
lowest suggested contribution  being  at least two
dollars, and one  additional  box  for other whole
dollar amounts. The  commissioner shall include in
the instructions accompanying  the  tax  return  a
description of the  purposes  for  which the organ
transplant account, the  AIDS  research  education
account,  [and] the  endangered  species,  natural
area preserves and  watchable wildlife account AND
THE BREAST CANCER  RESEARCH  AND EDUCATION ACCOUNT
were created.
    (c) A designated  contribution  of all or part
of any refund shall be irrevocable upon the filing
of the return and shall be made in the full amount
designated if the  refund  found  due the taxpayer
upon the initial  processing  of  the  return, and
after any deductions  required by this chapter, is
greater   than  or   equal   to   the   designated
contribution. If the  refund  due,  as  determined
upon initial processing,  and after any deductions
required  by  this   chapter,  is  less  than  the
designated contribution, the contribution shall be
made  in  the  full  amount  of  the  refund.  The
Commissioner of Revenue  Services  shall  subtract
the amount of  any  contribution of all or part of
any refund from the amount of the refund initially
found  due the  taxpayer  and  shall  certify  the
difference  to the  Secretary  of  the  Office  of
Policy  and  Management   and  the  Treasurer  for
payment to the  taxpayer  in  accordance with this
chapter.  For  the   purposes  of  any  subsequent
determination of the  taxpayer's  net tax payment,
such contribution shall  be  considered  a part of
the refund paid to the taxpayer.
    (d)  The  Commissioner  of  Revenue  Services,
after  notification  of   and   approval   by  the
Secretary of the  Office of Policy and Management,
may deduct and  retain from the funds so collected
an amount equal  to the costs of implementing this
section  and  sections   17b-288,  19a-32a,  [and]
22a-27l AND SECTION  6  OF  THIS  ACT  but  not to
exceed seven and  one-half  per  cent of the funds
contributed in any  fiscal  year  and  in no event
shall exceed the  total  cost of implementation of
said sections.
    Sec. 8. This  act  shall  take effect from its
passage and shall  be  applicable to taxable years
commencing on or after January 1, 1997.

Approved June 26, 1997