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public act 97-165,  is  repealed and the following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public act 97-295,  is  repealed and the following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