HB 5162—AN ACT CONCERNING THE COLLECTION OF DELINQUENT TAXES AND LOTTERY WINNINGS

This bill requires the Connecticut Lottery Corporation (CLC) to deduct and withhold delinquent taxes from any lottery claim worth $5,000 or more submitted at its central office on or after January 1, 2009 by a delinquent taxpayer. (The bill is similar to the existing withholding program for delinquent child support. But unlike the child support program, it contains no claimant notification requirement and no hearing or appeal process.)

Before making prize payments worth $5,000 or more, CLC must check the claimant's name and other identifying information against a Department of Revenue Services (DRS)-supplied list of delinquent taxpayers. If the person's name appears on the list, CLC must deduct and withhold from the winnings the amount of taxes owed, plus penalties and interest, after deducting and withholding any amount owed for child support. The CLC president must notify and forward the amount withheld to the DRS commissioner in accordance with the commissioner's instructions.

The bill allows the commissioner to disclose to the CLC president (1) any information necessary to identify a delinquent taxpayer and (2) the amount of taxes, penalty, and interest the taxpayer owes. It applies to

taxes, including penalties and interest that are more than 30 days overdue and not the subject of a timely filed administrative appeal to the commissioner or a timely filed appeal pending before a court.

Effective date: July 1, 2008

HB 5645—AN ACT CREATING AN EXEMPTION FROM PERMIT REQUIREMENTS FOR PARENT TEACHER ASSOCIATION CONDUCTED BINGO

This bill allows parent teacher organizations (PTOs) to conduct bingo without the Division of Special Revenue (DSR) permit required by other organizations conducting bingo.

Under the bill, PTOs are still subject to DSR oversight in that, among other things, they must register with the division annually and pay a $50 fee, obtain a DSR identification number, charge no more than $1 for admission, offer prizes valued at no more than $20, and allow only active members serving without compensation to operate the games.

Effective date: Upon passage

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