Substitute House Bill No. 5681
Substitute House Bill No. 5681
PUBLIC ACT NO. 98-262
AN ACT CONCERNING TECHNICAL CHANGES AND ADDITIONS
TO VARIOUS TAX STATUTES.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsection (a) of section 12-39l of
the general statutes, as amended by section 7 of
public act 97-165, is repealed and the following
is substituted in lieu thereof:
(a) [For purposes of this section] EXCEPT AS
OTHERWISE PROVIDED BY STATUTE, "tax appeal" means
an appeal from an order, decision, determination
or disallowance of the Commissioner of Revenue
Services; [pursuant to subsection (b) of section
12-208, sections 12-237, 12-255m, 12-268l, 12-312
and 12-330m, subsection (d) of section 12-405k,
sections 12-422, 12-448 and 12-463, subsection (b)
of section 12-489, sections 12-522, 12-554 and
12-597, subsection (b) of section 12-638i and
section 12-730;] an appeal that may be taken from
a decree of a court of probate under subsection
(b) of section 12-359, subsection (b) of section
12-367 or under subsection (b) of section 12-395,
AS AMENDED; an appeal from any order, decision,
determination or disallowance of the Secretary of
the Office of Policy and Management pursuant to
sections 12-242gg to 12-242nn, inclusive; and an
appeal that may be taken from a decision of the
Penalty Review Committee under subsection (d) of
section 12-3a.
Sec. 2. Subsection (h) of section 12-217p of
the general statutes, as amended by section 18 of
public act 97-295, is repealed and the following
is substituted in lieu thereof:
(h) Any tax credit not used in the period
during which the investment was made may be
carried forward or backward for the five
immediately succeeding or preceding income years
until the full credit has been allowed. For income
years commencing on or after January 1, 1998, if
the Connecticut Housing Finance Authority
determines that sixty per cent or more of a
revolving loan fund has not been loaned as
provided in this section by a business firm on or
before the date that is three years after the date
that a revolving loan fund is established pursuant
to this section by such business firm, the
authority shall notify such firm and the
commissioner that the authority has determined
that sixty per cent or more of the fund has not
been loaned as provided in this section, and such
firm shall be required to recapture the credits
previously granted under this section, to the
extent provided for in written procedures of the
authority adopted under section 1-121, on the
first tax return required to be filed on or after
the date of such notice for a tax imposed by this
chapter or chapter 207, 209, 210, 210a or 212. If
any amount of such recaptured credit has not been
paid to the commissioner on or before the due date
[or, if an extension of time to file such return
has been granted, the extended due date of such
return. Such] OF SUCH RETURN, SUCH amount shall
bear interest at the rate of one per cent per
month or fraction thereof from such due date [or
extended due date] to the date of payment.
Sec. 3. Section 12-330e of the general
statutes is repealed and the following is
substituted in lieu thereof:
The commissioner may suspend or revoke the
license of any distributor or unclassified
[distributor] IMPORTER for failure to comply with
any provision of this chapter, or regulations
related thereto, following a hearing with respect
to which notice in writing, specifying the time
and place of such hearing and requiring such
distributor or unclassified importer to show cause
why such license should not be revoked, is mailed
or delivered to such distributor or unclassified
importer not less than ten days preceding the date
of such hearing. Such notice may be served
personally or by registered or certified mail. The
commissioner shall not issue a new license to a
former licensee whose license was revoked unless
the commissioner is satisfied that such former
licensee will comply with the provisions of this
chapter or regulations related thereto.
Sec. 4. (NEW) (a) Any person believing that he
has overpaid any tax due under the provisions of
chapter 214a of the general statutes may file, in
writing, a claim for refund with the Commissioner
of Revenue Services 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 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 a written protest
with the commissioner as provided in subsection
(b) of this section.
(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 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.
(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 12-330m of the general
statutes.
Sec. 5. Subsection (2) of section 12-408 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(2) (A) Reimbursement for the tax hereby
imposed shall be collected by the retailer from
the consumer and such tax reimbursement, termed
"tax" in this and the following subsections, shall
be paid by the consumer to the retailer and each
retailer shall collect from the consumer the full
amount of the tax imposed by this chapter or an
amount equal as nearly as possible or practicable
to the average equivalent thereof. Such tax shall
be a debt from the consumer to the retailer, when
so added to the original sales price, and shall be
recoverable at law in the same manner as other
debts except as provided in section 12-432a. The
amount of tax reimbursement, when so collected,
shall be deemed to be a special fund in trust for
the state of Connecticut.
(B) Whenever such tax, payable by the consumer
[(A)] (i) with respect to a charge account or
credit sale occurring on or after July 1, 1984, is
remitted by the retailer to the commissioner and
such sale as an account receivable is determined
to be worthless and is actually written off as
uncollectible for federal income tax purposes, or
[(B)] (ii) to a retailer who computes taxable
income, for purposes of taxation under the
Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United
States, as from time to time amended, on the cash
basis method of accounting with respect to a sale
occurring on or after July 1, 1989, is remitted by
the retailer to the commissioner and such sale as
an account receivable is determined to be
worthless, the amount of such tax remitted may be
credited against the tax due on the sales tax
return filed by the retailer for the monthly or
quarterly period, whichever is applicable, next
following the period in which such amount is
actually so written off, but in no event shall
such credit be allowed later than three years
following the date such tax is remitted, UNLESS
THE CREDIT RELATES TO A PERIOD FOR WHICH A WAIVER
IS GIVEN PURSUANT TO SUBSECTION (8) OF SECTION
12-415. The commissioner shall, by regulations
adopted in accordance with chapter 54, provide
standards for proving any such claim for credit.
If any account with respect to which such credit
is allowed is thereafter collected by the retailer
in whole or in part, the amount so collected shall
be included in the sales tax return covering the
period in which such collection occurs. The tax
applicable in any such case shall be determined in
accordance with the rate of sales tax in effect at
the time of the original sale.
Sec. 6. Subsection (13) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(13) "Food products" include cereals and
cereal products, milk and milk products,
oleomargarine, meat and meat products, fish and
fish products, eggs and egg products, vegetables
and vegetable products, fruit and fruit products,
spices and salt, sugar and sugar products other
than candy and confectionery; coffee and coffee
substitutes, tea, cocoa and cocoa products other
than candy and confectionery. "Food products" do
not include spirituous, malt or vinous liquors,
soft drinks, sodas or beverages such as are
ordinarily dispensed at bars and soda fountains,
or in connection therewith, medicines except by
prescription, tonics and preparations in liquid,
powdered, granular, tablet, capsule, lozenge and
pill form sold as dietary supplements or adjuncts.
"Food products" also do not include meals sold by
an eating establishment or caterer. "Meal" means
food products which are furnished, prepared or
served in such a form and in such portions that
they are ready for immediate consumption. A meal
as defined in this subsection includes food
products which are sold on a "take out" or "to go"
basis and which are actually packaged or wrapped.
The sale of a meal, as defined in this subsection,
is a taxable sale. "Eating establishment" means a
place where meals are sold and includes a
restaurant, cafeteria, grinder shop, pizzeria,
drive-in, fast food outlet, ice cream truck, hot
dog cart, [vending machine,] refreshment stand,
sandwich shop, private or social club, cocktail
lounge, tavern, diner, snack bar, or hotel or
boarding house which furnishes both lodging and
meals to its guests.
Sec. 7. Subsection (7) of section 12-415 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(7) Except in the case of fraud, intent to
evade this chapter or authorized regulations,
failure to make a return, or claim for additional
amount pursuant to subsection (3) of section
12-418, every notice of a deficiency assessment
shall be mailed within three years after the last
day of the month following the period for which
the amount is proposed to be assessed or within
three years after the return is filed, whichever
period expires later. The limitation specified in
this subsection does not apply in case of a sales
tax proposed to be assessed with respect to sales
of services or property for the storage,
acceptance, consumption or other use of which
notice of a deficiency assessment has been or is
given pursuant to subsection (6) of this section,
subsection [(5)] (4) of section 12-416, subsection
(2) of section 12-417 and this subsection. The
limitation specified in this subsection does not
apply in case of an amount of use tax proposed to
be assessed with respect to storage, acceptance,
consumption or other use of services or property
for the sale of which notice of a deficiency
assessment has been or is given pursuant to said
subsections and this subsection.
Sec. 8. Subsection (a) of section 12-462 of
the general statutes, as amended by section 36 of
public act 97-243, is repealed and the following
is substituted in lieu thereof:
(a) The commissioner may license dealers to
purchase fuel that is exempt under subparagraph
[(M)] (L) of subdivision (3) of subsection (a) of
section 12-458, AS AMENDED, 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 aircraft or aircraft
engine. The dealer so licensed shall keep and
maintain proper accounting records of all
purchases from the distributor and sales invoices
to the purchaser, showing the signature of the
purchaser and the license number of the 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,
AS AMENDED, against such dealer. The license to
sell fuel as a dealer under this subsection may be
revoked if the licensee fails to properly control
and safeguard the state from any diversion to uses
other than those specified in this section.
Sec. 9. Section 12-692 of the general
statutes, as amended by section 6 of public act
97-4 of the June 18 special session, is repealed
and the following is substituted in lieu thereof:
(a) For purposes of this section:
(1) "Passenger motor vehicle" means a
passenger vehicle, which is rented without a
driver and which is part of a motor vehicle fleet
of five or more passenger motor vehicles that are
[owned and] used for rental purposes by [the same]
A rental company.
(2) "Rental company" means any business entity
that is engaged in the business of renting
passenger motor vehicles without a driver in this
state TO LESSEES and that [owns and] uses for
rental purposes a motor vehicle fleet of five or
more passenger motor vehicles in this state, but
does not mean any person, firm or corporation that
is licensed, or required to be licensed, pursuant
to section 14-52, (A) as a new car dealer, [used
car dealer,] repairer or limited repairer OR (B)
AS A USED CAR DEALER THAT IS NOT PRIMARILY ENGAGED
IN THE BUSINESS OF RENTING PASSENGER MOTOR
VEHICLES WITHOUT A DRIVER IN THIS STATE TO
LESSEES.
(3) "LESSEE" MEANS ANY PERSON WHO LEASES A
PASSENGER MOTOR VEHICLE FROM A RENTAL COMPANY FOR
SUCH PERSON'S OWN USE AND NOT FOR RENTAL TO
OTHERS.
(b) There is hereby imposed a three per cent
surcharge on each passenger motor vehicle rented
within the state by a rental company to a lessee
for a period of less than thirty-one days. The
rental surcharge shall be imposed on the total
amount the rental company charges the lessee for
the rental of a motor vehicle. Such surcharge
shall be in addition to any tax otherwise
applicable to any such transaction and shall be
includable in the measure of the sales and use
taxes imposed under chapter 219.
(c) Reimbursement for the surcharge imposed by
subsection (b) of this section shall be collected
by the rental company from the lessee and such
surcharge reimbursement, termed "surcharge" in
this subsection, shall be paid by the lessee to
the rental company and each rental company shall
collect from the lessee the full amount of the
surcharge imposed by said subsection (b). Such
surcharge shall be a debt from the lessee to the
rental company, when so added to the original
lease or rental price, and shall be recoverable at
law in the same manner as other debts. The rental
contract shall separately indicate the rental
surcharge imposed on each passenger motor vehicle
rental. The rental surcharge shall, subject to the
provisions of subsection (d) of this section, be
retained by the rental company.
(d) (1) On or before February 15, 1997, and
the fifteenth of February annually thereafter,
each rental company shall file a report with the
Commissioner of Revenue Services detailing the
aggregate amount of personal property tax that is
actually paid by such company to a Connecticut
municipality or municipalities during the
preceding calendar year on passenger motor
vehicles that are [owned and] used for rental
purposes by such company, the aggregate amount of
registration and titling fees that are actually
paid by such company to the Department of Motor
Vehicles of this state during the preceding
calendar year on passenger motor vehicles that are
[owned and] used for rental purposes by such
company and the aggregate amount of the rental
surcharge that is actually received, pursuant to
this section, by such company during the preceding
calendar year on passenger motor vehicles that are
[owned and] used for rental purposes by such
company. The report shall also show such other
information as the commissioner deems necessary
for the proper administration of this section.
(2) On or before February 15, 1997, and the
fifteenth of February annually thereafter, each
rental company shall remit to the Commissioner of
Revenue Services for deposit in the General Fund,
the amount by which the aggregate amount of the
rental surcharge actually received by such company
on such vehicles during the preceding calendar
year exceeds the sum of the aggregate amount of
property taxes actually paid by such company on
such vehicles to a Connecticut municipality or
municipalities during the preceding calendar year
and the aggregate amount of registration and
titling fees actually paid by such company on such
vehicles to the Department of Motor Vehicles of
this state during the preceding calendar year.
(3) FOR PURPOSES OF THIS SUBSECTION, IN THE
CASE OF ANY RENTAL COMPANY THAT LEASES A PASSENGER
MOTOR VEHICLE FROM ANOTHER PERSON AND THAT USES
SUCH VEHICLE FOR RENTAL PURPOSES AND SUCH LEASE
REQUIRES SUCH RENTAL COMPANY TO PAY THE
REGISTRATION AND TITLING FEES AND THE PROPERTY
TAXES TO SUCH OTHER PERSON, THE RENTAL COMPANY
SHALL INCLUDE (A) IN THE AGGREGATE AMOUNT OF
REGISTRATION AND TITLING FEES ACTUALLY PAID BY
SUCH RENTAL COMPANY TO THE DEPARTMENT OF MOTOR
VEHICLES OF THIS STATE, ANY SUCH REGISTRATION AND
TITLING FEES ACTUALLY PAID BY SUCH RENTAL COMPANY
TO SUCH OTHER PERSON ON SUCH PASSENGER MOTOR
VEHICLE, AND (B) IN THE AGGREGATE AMOUNT OF
PROPERTY TAXES ACTUALLY PAID BY SUCH RENTAL
COMPANY TO A CONNECTICUT MUNICIPALITY OR
MUNICIPALITIES, ANY SUCH PROPERTY TAXES ACTUALLY
PAID BY SUCH RENTAL COMPANY TO SUCH OTHER PERSON
ON SUCH PASSENGER MOTOR VEHICLE OR VEHICLES.
(e) Any person who fails to pay any amount
required to be paid to the Commissioner of Revenue
Services under this section within the time
required shall pay a penalty of fifteen per cent
of such amount or fifty dollars, whichever amount
is greater, in addition to such amount, plus
interest at the rate of one per cent per month or
fraction thereof from the due date of such amount
until the date of payment. Subject to the
provisions of section 12-3a, AS AMENDED, the
commissioner may waive all or any part of the
penalties provided under this section when it is
proven to the satisfaction of the commissioner
that the failure to pay any amount required to be
paid to the commissioner was due to reasonable
cause and was not intentional or due to neglect.
(f) The Commissioner of Revenue Services for
good cause may extend the time for making any
report and paying any amount required to be paid
to the commissioner under this section if a
written request therefor is filed with the
commissioner together with a tentative report
which shall be accompanied by a payment of any
amount tentatively believed to be due to the
commissioner, on or before the last day for filing
the report. Any person to whom an extension is
granted shall pay, in addition to the amount
required to be paid, interest at the rate of one
per cent per month or fraction thereof from the
date on which such amount would have been due
without the extension until the date of payment.
(g) The provisions of sections 12-548 to
12-554, inclusive, AS AMENDED, and section 12-555a
shall apply to the provisions of this section in
the same manner and with the same force and effect
as if the language of said sections 12-548 to
12-554, inclusive, AS AMENDED, and section 12-555a
had been incorporated in full into this section,
except to the extent that any provision is
inconsistent with a provision in this section, and
except that the term "tax" shall be read as
"surcharge".
Sec. 10. Subsection (f) of section 1 of public
act 97-295 is repealed and the following is
substituted in lieu thereof:
(f) If the fixed capital on account of which a
corporation has claimed the credit allowed by this
section is not held and used in this state in the
ordinary course of the corporation's trade or
business in this state for three full years
following its acquisition as provided in
subsection (a) of this section, the corporation
shall recapture one hundred per cent of the amount
of the credit allowed under this section on its
corporation business tax return required to be
filed for the [immediately succeeding] income year
IMMEDIATELY SUCCEEDING THE INCOME YEAR DURING
WHICH SUCH THREE-YEAR PERIOD EXPIRES. If the fixed
capital on account of which a corporation has
claimed the credit allowed by this section is not
held and used in this state in the ordinary course
of the corporation's trade or business in this
state for five full years following its
acquisition as provided in subsection (a) of this
section, the corporation shall recapture fifty per
cent of the amount of the credit allowed under
this section on its corporation business tax
return required to be filed for the [immediately
succeeding] income year IMMEDIATELY SUCCEEDING THE
INCOME YEAR DURING WHICH SUCH FIVE-YEAR PERIOD
EXPIRES. The provisions of this subsection shall
not apply if the property that is the subject of
the credit under this section is replaced. IF ANY
AMOUNT OF CREDIT REQUIRED TO BE RECAPTURED HAS NOT
BEEN PAID TO THE COMMISSIONER ON OR BEFORE THE
FIRST DAY OF THE FOURTH MONTH NEXT SUCCEEDING THE
END OF THE INCOME YEAR IMMEDIATELY SUCCEEDING THE
INCOME YEAR DURING WHICH THE THREE-YEAR OR
FIVE-YEAR PERIOD, AS THE CASE MAY BE, EXPIRES,
SUCH AMOUNT SHALL BEAR INTEREST AT THE RATE OF ONE
PER CENT PER MONTH OR FRACTION THEREOF FROM SUCH
DATE TO THE DATE OF PAYMENT.
Sec. 11. Subdivision (3) of subsection (c) of
section 12-719 of the general statutes is repealed
and the following is substituted in lieu thereof:
(3) Any payment under this subdivision shall
be in an amount equal to the highest marginal tax
rate in effect under section 12-700, AS AMENDED,
multiplied by the SUM OF (A) TO THE EXTENT DERIVED
FROM OR CONNECTED WITH SOURCES WITHIN THIS STATE
AS REFLECTED ON THE S CORPORATION'S ANNUAL RETURN
FOR THE TAXABLE PERIOD UNDER SECTION 12-726, THE
AMOUNT OF THE subject shareholder's pro rata share
of such corporation's separately computed items,
as defined in Section 1366 of the Internal Revenue
Code, and (B) TO THE EXTENT DERIVED FROM OR
CONNECTED WITH SOURCES WITHIN THIS STATE AS
REFLECTED ON THE S CORPORATION'S ANNUAL RETURN FOR
THE TAXABLE PERIOD UNDER SECTION 12-726, the
amount of such shareholder's pro rata share of
such corporation's nonseparately computed items,
as defined in Section 1366 of the Internal Revenue
Code, [reduced by the amount of such nonseparately
computed items that are subject to tax under
chapter 208 in accordance with subsection (c) of
section 12-217, derived from or connected with
sources within this state as reflected on the S
corporation's annual return for the taxable
period] TO THE EXTENT INCLUDABLE, IF THE
SHAREHOLDER IS AN INDIVIDUAL, IN SUCH
SHAREHOLDER'S CONNECTICUT ADJUSTED GROSS INCOME
OR, IF THE SHAREHOLDER IS A TRUST OR ESTATE, IN
SUCH SHAREHOLDER'S CONNECTICUT TAXABLE INCOME. Any
amount paid by an S corporation to this state with
respect to any taxable period pursuant to this
subdivision shall be considered to be a payment by
the shareholder on account of the income tax
imposed on the shareholder for such taxable period
pursuant to this chapter. An S corporation shall
be entitled to recover a payment made pursuant to
this subdivision from the shareholder on whose
behalf the payment was made. Any estimated tax
instalment shall be made on or before the due date
of such instalment pursuant to section 12-722, AS
AMENDED, and any other payment for a taxable
period shall be made at or before the date the
annual return for such taxable period is required
to be filed pursuant to section 12-726.
Sec. 12. Subsection (d) of section 12-80a of
the general statutes, as amended by section 1 of
public act 97-137, is repealed and the following
is substituted in lieu thereof:
(d) Any taxpayer that, on or after January 1,
1990, is subject to tax under chapter [211] 219
for rendering telecommunications service but that,
prior to January 1, 1990, was not subject to tax
under chapter [219] 211 for rendering
telecommunications service may elect to have
personal property taxed in the manner specified in
this section. Such election shall be made in
writing and filed with the Secretary of the Office
of Policy and Management and a copy thereof shall
be filed with the assessor of each town in which
personal property affected by such election is
located. Such election, once filed with the
secretary, shall be irrevocable and shall, if
filed on or before the date that is two months
prior to the start of the assessment year, be
effective for such assessment year and for all
succeeding assessment years, otherwise to be
effective for the next succeeding assessment year
and all succeeding assessment years.
Sec. 13. Section 21 of public act 97-295 is
repealed and the following is substituted in lieu
thereof:
Notwithstanding the repeal of [subparagraphs
(G) and (H) of subdivision (2) of subsection (a)
of section 12-214,] sections 12-217c, 12-217d,
12-252a, 12-252b, 12-258b, 12-258c, 12-265b,
12-265c and 17b-740 of the general statutes, any
taxpayer or business firm eligible for a tax
credit pursuant to any of said sections may carry
any remaining tax credit forward to any income
year commencing on or after January 1, 1998, as
the provisions of the appropriate section would
have allowed prior to said repeal.
Sec. 14. Section 25 of public act 97-295 is
repealed and the following is substituted in lieu
thereof:
[This act] PUBLIC ACT 97-295 shall take effect
from its passage, except that (1) sections [4, 8
and] 13 to 20, inclusive, shall be applicable to
tax returns filed for (A) income years of
corporations under chapter 208 of the general
statutes and of air carriers under chapter 209 of
the general statutes commencing on or after
January 1, 1997, (B) calendar years of insurance
companies under chapter 207 of the general
statutes, railroad companies under chapter 210 of
the general statutes and express, telegraph, cable
and community antenna television system companies
under chapter 211 of the general statutes
commencing on or after January 1, 1997, and (C)
calendar quarters of utility companies under
chapter 212 of the general statutes commencing on
or after January 1, 1997, and (2) sections 1 to 3,
INCLUSIVE, 5, 6, [inclusive,] 8 to 12, inclusive,
and sections 21 and 24 shall be applicable to
income years commencing on or after January 1,
1998.
Sec. 15. Section 7 of public act 97-309, as
amended by section 4 of public act 97-322, is
repealed and the following is substituted in lieu
thereof:
(a) Any resident of this state, as defined in
subdivision (1) of subsection (a) of section
12-701 of the general statutes, subject to the tax
under chapter 229 of the general statutes for any
taxable year shall be entitled to a credit in
determining the amount of tax liability under said
chapter 229, for ALL OR a portion, AS PERMITTED BY
THIS SECTION, of the amount of property tax, as
defined in this section, FIRST BECOMING DUE AND
actually paid DURING SUCH TAXABLE YEAR by such
person on such person's primary residence or motor
vehicle in accordance with this section, provided
in the case of a person who files a return under
the federal income tax for such taxable year as an
unmarried individual, a married individual filing
separately or a head of household, one motor
vehicle shall be eligible for such credit and in
the case of a husband and wife who file a return
under federal income tax for such taxable year as
married individuals filing jointly, no more than
two motor vehicles shall be eligible for a credit
under the provisions of this section.
(b) The credit allowed under this section
shall not exceed two hundred fifteen dollars for
the taxable year commencing ON OR AFTER January 1,
1997, AND PRIOR TO JANUARY 1, 1998, and for
taxable years commencing on or after January 1,
1998, two hundred eighty-five dollars. [of the
property tax first becoming due and actually paid
during the taxpayer's taxable year.] In the case
of any husband and wife who file a return under
the federal income tax for such taxable year as
married individuals filing a joint return, the
credit allowed, IN THE AGGREGATE, shall not exceed
such amounts for each such taxable year. [, in the
aggregate, of the property tax first becoming due
and actually paid during the taxable year of such
husband and wife.]
(c) In the case of any such taxpayer who files
under the federal income tax for such taxable year
as an unmarried individual whose Connecticut
adjusted gross income exceeds fifty-two thousand
five hundred dollars, the amount of the credit
that exceeds one hundred dollars shall be reduced
by ten per cent for each ten thousand dollars, or
fraction thereof, by which the taxpayer's
Connecticut adjusted gross income exceeds said
amount. In the case of any such taxpayer who files
under the federal income tax for such taxable year
as a married individual filing separately whose
Connecticut adjusted gross income exceeds fifty
thousand two hundred fifty dollars, the amount of
the credit that exceeds one hundred dollars shall
be reduced by ten per cent for each five thousand
dollars, or fraction thereof, by which the
taxpayer's Connecticut adjusted gross income
exceeds said amount. In the case of a taxpayer who
files under the federal income tax for such
taxable year as a head of household whose
Connecticut adjusted gross income exceeds
seventy-eight thousand five hundred dollars, the
amount of the credit that exceeds one hundred
dollars shall be reduced by ten per cent for each
ten thousand dollars or fraction thereof, by which
the taxpayer's Connecticut adjusted gross income
exceeds said amount. In the case of a taxpayer who
files under federal income tax for such taxable
year as married individuals filing jointly whose
Connecticut adjusted gross income exceeds one
hundred thousand five hundred dollars, the amount
of the credit that exceeds one hundred dollars
shall be reduced by ten per cent for each ten
thousand dollars, or fraction thereof, by which
the taxpayer's Connecticut adjusted gross income
exceeds said amount.
(d) The credit allowed under the provisions of
this section shall be available for any person
leasing a motor vehicle pursuant to a written
agreement for a term of more than one year. Such
lessee shall be entitled to the credit in
accordance with the provisions of this section for
the taxes actually paid by the lessor or lessee on
such leased vehicle, provided the lessee was
lawfully in possession of the motor vehicle at
such time when the taxes first became due. The
lessor shall provide the lessee with documentation
establishing, to the satisfaction of the
Commissioner of Revenue Services, the amount of
property tax paid during the time period in which
the lessee was lawfully in possession of the motor
vehicle. The lessor of the motor vehicle shall not
be entitled to a credit under the provisions of
this section.
(e) The credit may only be used to reduce such
qualifying taxpayer's tax liability for the year
for which such credit is applicable and shall not
be used to reduce such tax liability to less than
zero.
(f) The amount of tax due pursuant to sections
12-705 and 12-722 of the general statutes, AS
AMENDED, shall be calculated without regard to
this credit.
(g) For the purposes of this section:
["property tax"] (1) "PROPERTY TAX" means the
amount of property tax [actually paid] EXCLUSIVE
OF ANY INTEREST, FEES OR CHARGES THEREON FOR WHICH
A TAXPAYER IS LIABLE, OR IN THE CASE OF ANY
HUSBAND AND WIFE WHO FILE A RETURN UNDER THE
FEDERAL INCOME TAX FOR SUCH TAXABLE YEAR AS
MARRIED INDIVIDUALS FILING A JOINT RETURN, FOR
WHICH THE HUSBAND OR WIFE OR BOTH ARE LIABLE, to a
Connecticut political subdivision [by a taxpayer]
on the taxpayer's primary residence or motor
vehicles; [, and] (2) "motor vehicle" means a
motor vehicle, as defined in section 14-1 of the
general statutes, AS AMENDED, which is privately
owned or leased; AND (3) PROPERTY TAX FIRST
BECOMES DUE, IF DUE AND PAYABLE IN A SINGLE
INSTALMENT, ON THE DATE DESIGNATED BY THE
LEGISLATIVE BODY OF THE MUNICIPALITY AS THE DATE
ON WHICH SUCH INSTALMENT SHALL BE DUE AND PAYABLE
AND, IF DUE AND PAYABLE IN TWO OR MORE
INSTALMENTS, ON THE DATE DESIGNATED BY THE
LEGISLATIVE BODY OF THE MUNICIPALITY AS THE DATE
ON WHICH SUCH INSTALMENT SHALL BE DUE AND PAYABLE
OR, AT THE ELECTION OF THE TAXPAYER, ON THE DATE
DESIGNATED BY THE LEGISLATIVE BODY OF THE
MUNICIPALITY AS THE DATE ON WHICH ANY EARLIER
INSTALMENT OF SUCH TAX SHALL BE DUE AND PAYABLE.
Sec. 16. Subsection (b) of section 12-170d of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) For purposes of determining qualifying
income under subsection (a) of this section with
respect to a married renter who submits an
application for a grant in accordance with
sections 12-170d to 12-170g, inclusive, the social
security income of the spouse of such renter shall
not be included in the qualifying income of such
renter, for purposes of determining eligibility
for benefits under said sections, if such spouse
is a resident of a health care or nursing home
facility in this state receiving payment related
to such spouse under the Title XIX Medicaid
program. AN APPLICANT WHO IS LEGALLY SEPARATED
PURSUANT TO THE PROVISIONS OF SECTION 46b-40, AS
OF THE THIRTY-FIRST DAY OF DECEMBER PRECEDING THE
DATE ON WHICH SUCH PERSON FILES AN APPLICATION FOR
A GRANT IN ACCORDANCE WITH SECTIONS 12-170d TO
12-170g, INCLUSIVE, MAY APPLY AS AN UNMARRIED
PERSON AND SHALL BE REGARDED AS SUCH FOR PURPOSES
OF DETERMINING QUALIFYING INCOME UNDER SUBSECTION
(a) OF THIS SECTION.
Sec. 17. Subsection (b) of section 12-170aa of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) (1) The program established by this
section shall provide for a reduction in property
tax, except in the case of benefits payable as a
grant under certain circumstances in accordance
with provisions in subsection (j) of this section,
applicable to the assessed value of certain real
property, determined in accordance with subsection
(c) of this section, for any owner of real
property, or any tenant for life or tenant for a
term of years liable for property tax under
section 12-48, or any resident of a
multiple-dwelling complex under certain
contractual conditions as provided in said
subsection (j) of this section, who (A) at the
close of the preceding calendar year has attained
age sixty-five or over, or whose spouse domiciled
with such homeowner, has attained age sixty-five
or over at the close of the preceding calendar
year, or is fifty years of age or over and the
surviving spouse of a homeowner who at the time of
his death had qualified and was entitled to tax
relief under this section, provided such spouse
was domiciled with such homeowner at the time of
his death or (B) at the close of the preceding
calendar year has not attained age sixty-five and
is eligible in accordance with applicable federal
regulations to receive permanent total disability
benefits under Social Security, or has not been
engaged in employment covered by Social Security
and accordingly has not qualified for benefits
thereunder but who has become qualified for
permanent total disability benefits under any
federal, state or local government retirement or
disability plan, including the Railroad Retirement
Act and any government-related teacher's
retirement plan, determined by the Secretary of
the Office of Policy and Management to contain
requirements in respect to qualification for such
permanent total disability benefits which are
comparable to such requirements under Social
Security; and in addition to qualification under
(A) or (B) above, whose taxable and nontaxable
income, the total of which shall hereinafter be
called "qualifying income", in the tax year of
such homeowner ending immediately preceding the
date of application for benefits under the program
in this section, was not in excess of sixteen
thousand two hundred dollars, if unmarried, or
twenty thousand dollars, jointly with spouse if
married, subject to adjustments in accordance with
subdivision (2) of this subsection, evidence of
which income shall be required in the form of a
signed affidavit to be submitted to the assessor
in the municipality in which application for
benefits under this section is filed. The amount
of any Medicaid payments made on behalf of such
homeowner or the spouse of such homeowner shall
not constitute income. The amount of tax reduction
provided under this section, determined in
accordance with and subject to the variable
factors in the schedule of amounts of tax
reduction in subsection (c) of this section, shall
be allowed only with respect to a residential
dwelling owned by such qualified homeowner and
used as such homeowner's primary place of
residence. If title to real property or a tenancy
interest liable for real property taxes is
recorded in the name of such qualified homeowner
or his spouse making a claim and qualifying under
this section and any other person or persons, the
claimant hereunder shall be entitled to pay his
fractional share of the tax on such property
calculated in accordance with the provisions of
this section, and such other person or persons
shall pay his or their fractional share of the tax
without regard for the provisions of this section,
unless also qualified hereunder. For the purposes
of this section, a "mobile manufactured home", as
defined in section 12-63a, or a dwelling on leased
land, including but not limited to a modular home,
shall be deemed to be real property and the word
"taxes" shall not include special assessments,
interest and lien fees.
(2) The amounts of qualifying income as
provided in this section shall be adjusted
annually in a uniform manner to reflect the annual
inflation adjustment in social security income,
with each such adjustment of qualifying income
determined to the nearest one hundred dollars.
Each such adjustment of qualifying income shall be
prepared by the Secretary of the Office of Policy
and Management in relation to the annual inflation
adjustment in Social Security, if any, becoming
effective at any time during the twelve-month
period immediately preceding the first day of
October each year and the amount of such
adjustment shall be distributed to the assessors
in each municipality not later than the
thirty-first day of December next following.
(3) For purposes of determining qualifying
income under subdivision (1) of this subsection
with respect to a married homeowner who submits an
application for tax reduction in accordance with
this section, the social security income of the
spouse of such homeowner shall not be included in
the qualifying income of such homeowner, for
purposes of determining eligibility for benefits
under this section, if such spouse is a resident
of a health care or nursing home facility in this
state receiving payment related to such spouse
under the Title XIX Medicaid program. AN APPLICANT
WHO IS LEGALLY SEPARATED PURSUANT TO THE
PROVISIONS OF SECTION 46b-40, AS OF THE
THIRTY-FIRST DAY OF DECEMBER PRECEDING THE DATE ON
WHICH SUCH PERSON FILES AN APPLICATION FOR A GRANT
IN ACCORDANCE WITH SUBSECTION (a) OF THIS SECTION,
MAY APPLY AS AN UNMARRIED PERSON AND SHALL BE
REGARDED AS SUCH FOR PURPOSES OF DETERMINING
QUALIFYING INCOME UNDER SAID SUBSECTION.
Sec. 18. (NEW) Any municipality, upon approval
by its legislative body, may provide an exemption
from property tax of commercial fishing apparatus
which is subject to taxation under chapter 208 of
the general statutes, provided the commercial
fishing apparatus has a value of more than five
hundred dollars.
Sec. 19. Subsection (a) of section 12-129b of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) An owner of real property or any tenant
for life or for a term of years liable for
property taxes under section 12-48 who meets the
qualifications stated in this subsection shall be
entitled to pay the tax levied on said property,
calculated in accordance with the provisions of
subsection (b) for the first year his claim for
said tax relief is filed and approved in
accordance with the provisions of section 12-129c,
and he shall be entitled to continue to pay the
amount of said tax or such lesser amount as may be
levied in any year, without regard to the
provisions of this section and section 12-129c,
during each subsequent year that he shall meet
said qualifications, and the surviving spouse of
such owner or tenant, qualified in accordance with
the requirements pertaining to a surviving spouse
in this subsection, or any owner or tenant
possessing a joint interest in said property with
such owner at the time of such owner's death and
qualified at such time in accordance with the
requirements in this subsection, shall be entitled
to continue to pay the amount of said tax or such
lesser amount as may be levied in any year,
without regard to the provisions of this section
and section 12-129c, as it becomes due each year
following the death of such owner for as long as
such surviving spouse or joint owner or joint
tenant is qualified in accordance with the
requirements in this subsection. After the first
year a claim for said tax relief is filed and
approved, application for said tax relief shall be
filed biennially on a form prepared for such
purpose by the Secretary of the Office of Policy
and Management. No such owner or tenant may
qualify for said tax relief if such claim is filed
after May 15, 1980. Any such owner or tenant who
is qualified in accordance with this section and
who files such claim on or before May 15, 1980,
and any such surviving spouse or joint owner or
joint tenant surviving upon the death of such
owner or tenant, shall be entitled to pay said tax
in the amount as provided in this section for so
long as such owner or tenant or such surviving
spouse or joint owner or joint tenant continues to
be so qualified. To qualify for the tax relief
provided in this section a taxpayer shall meet all
the following requirements: (1) Be sixty-five
years of age or over, or his spouse, who is
domiciled with him, shall be sixty-five years or
over, or be fifty years of age or over and the
surviving spouse of a taxpayer who at the time of
his death had qualified and was entitled to tax
relief under this section and section 12-129c,
provided such spouse was domiciled with such
taxpayer at the time of his death, and (2) occupy
said real property as his home, and (3) either he
or his spouse shall have resided within this state
for at least one year before filing his claim
under this section and section 12-129c, and (4)
have had adjusted gross income as determined under
the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of
the United States, as from time to time amended,
during the calendar year preceding the filing of
his claim in an amount of not more than three
thousand dollars if he shall be unmarried, or have
adjusted gross income as determined under the
Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United
States, as from time to time amended, during the
calendar year preceding the filing of the claim in
an amount of not more than five thousand dollars
if he shall be married and domiciled with his
spouse or, on or after April 9, 1974,
individually, if unmarried, or jointly if married,
adjusted gross income and tax-exempt interest as
determined under the Internal Revenue Code of
1986, or any subsequent corresponding internal
revenue code of the United States, as from time to
time amended, which is qualifying income, during
the calendar year preceding the filing of the
claim in an amount of not more than six thousand
dollars. Notwithstanding provisions of the
Internal Revenue Code under which certain portions
of railroad retirement annuities are considered
taxable income, for purposes of this subdivision
the adjusted gross income of any such taxpayer for
any income year commencing on or after January 1,
1984, shall not include any portion of such
taxpayer's income from railroad retirement
annuities received under the Railroad Retirement
Act, exclusive of any such income payable in
accordance with the supplemental annuity
provisions of said act. NOTWITHSTANDING ANY
PROVISION OF THE INTERNAL REVENUE CODE UNDER WHICH
ANY PORTION OF INCOME RECEIVED AS A PENSION FROM
THE UNITED STATES POSTAL SYSTEM IS CONSIDERED
TAXABLE INCOME, FOR PURPOSES OF THIS SUBDIVISION
THE ADJUSTED GROSS INCOME OF ANY SUCH PERSON FOR
ANY INCOME YEAR COMMENCING ON OR AFTER JANUARY 1,
1996, SHALL NOT INCLUDE ANY PORTION OF SAID
PENSION. A PERSON WHO RECEIVED PENSION INCOME IN
THE 1996 CALENDAR YEAR FROM THE UNITED STATES
POSTAL SYSTEM AND WHO FILED AN APPLICATION UNDER
SUBSECTION (e) OF SECTION 12-170aa PRIOR TO MAY
15, 1997, IN LIEU OF FILING AN APPLICATION UNDER
SECTION 12-129c, SHALL BE ALLOWED TO FILE AN
APPLICATION UNDER SAID SECTION 12-129c WITH
RESPECT TO INCOME RECEIVED DURING THE 1996
CALENDAR YEAR, PROVIDED SUCH APPLICATION IS FILED
PRIOR TO AUGUST 1, 1998. NOTWITHSTANDING THE
PROVISIONS OF THIS SECTION AND SUBSECTION (c) OF
SECTION 12-129b, THE ASSESSOR OF THE TOWN IN WHICH
SUCH PERSON RESIDES SHALL, UPON APPROVING SUCH
APPLICATION, REINSTATE SUCH PERSON'S TAX RELIEF
BENEFITS UNDER THIS SECTION, AS OF THE 1996 GRAND
LIST, AND SHALL NOTIFY THE TAX COLLECTOR TO REMOVE
ANY PROPERTY TAX CREDIT UNDER SECTION 12-170aa
THAT IS REFLECTED ON SUCH PERSON'S RATE BILL FOR
THAT ASSESSMENT YEAR.
Sec. 20. Subsection (a) of section 12-170f of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Any renter, believing himself entitled to
a grant under section 12-170d for any calendar
year, shall make application to the assessor or
assessors of the municipality in which he resides
or the duly authorized agents of such assessor or
assessors for such grant on or after May fifteenth
and not later than September fifteenth of each
year with respect to such grant for the calendar
year preceding each such year, on a form
prescribed and furnished by the Secretary of the
Office of Policy and Management to the local
assessor or assessors. [In the case of extenuating
circumstance of the renter's illness or
incapacitation, evidenced by a physician's
certificate to that effect the] A renter may make
application to the Secretary of the Office of
Policy and Management prior to December fifteenth
of the claim year for AN extension of the
application period. THE SECRETARY MAY GRANT SUCH
EXTENSION IF HE DETERMINES THERE IS GOOD CAUSE FOR
DOING SO. NOTWITHSTANDING THE PROVISIONS OF THIS
SUBSECTION A REQUEST FOR AN EXTENSION OF THE 1997
CLAIM YEAR APPLICATION PERIOD MAY BE MADE NOT
LATER THAN AUGUST 1, 1998. A renter making such
application shall present to such assessor,
assessors or agents, in substantiation of his
application, a copy of his federal income tax
return, and if not required to file a federal
income tax return, such other evidence of
qualifying income, receipts for money received, or
cancelled checks, or copies thereof, and any other
evidence the assessor, assessors or such agent may
require. When the assessor, assessors or agents is
or are satisfied that the applying renter is
entitled to a grant, such assessor or assessors or
agents shall issue a certificate of grant, in
triplicate, in such form as the Secretary of the
Office of Policy and Management may prescribe and
supply showing the amount of the grant due. The
assessor or assessors shall forward the original
copy and attached application to the Secretary of
the Office of Policy and Management not later than
the last day of the month following the month in
which the renter has made application. On or after
December 1, 1989, any municipality which neglects
to transmit to the Secretary of the Office of
Policy and Management the claim and supporting
applications as required by this section shall
forfeit two hundred fifty dollars to the state,
provided said secretary may waive such forfeiture
in accordance with procedures and standards
adopted by regulation in accordance with chapter
54. A duplicate of such certificate with a copy of
the application attached shall be delivered to the
applicant and the assessor, assessors or agents
shall keep the third copy of such certificate and
a copy of the application for their records. After
verification of the amount of the grant the
Secretary of the Office of Policy and Management
shall, not later than September thirtieth of each
year prepare a list of certificates approved for
payment by him, and shall thereafter supplement
such list monthly. Such list and any supplements
thereto shall be approved for payment by the
Secretary of the Office of Policy and Management
and shall be forwarded by him to the State
Comptroller, not later than ninety days after
receipt of such applications and certificates of
grant from the assessor or assessors, and the
State Comptroller shall draw his order upon the
State Treasurer, not later than fifteen days
following, in favor of each person on such list
and on supplements to such list in the amount of
such person's claim and the Treasurer shall pay
such amount to such person, not later than fifteen
days following. Applications filed under this
section shall not be open for public inspection.
Sec. 21. Section 12-299 of the general
statutes is repealed.
Sec. 22. This act shall take effect from its
passage, except that sections 2 and 10 shall be
applicable to income years commencing on or after
January 1, 1998, sections 11 and 15 shall be
applicable to taxable years commencing on or after
January 1, 1998, section 9 shall be applicable to
calendar years commencing on or after January 1,
1998, and section 18 shall be applicable to
assessment years commencing on and after October
1, 1998.
Approved June 8, 1998