Connecticut Seal

General Assembly

 

Raised Bill No. 932

January Session, 2009

 

LCO No. 3682

 

*03682_______FIN*

Referred to Committee on Finance, Revenue and Bonding

 

Introduced by:

 

(FIN)

 

AN ACT MAKING CHANGES TO VARIOUS TAX STATUTES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subdivision (1) of subsection (f) of section 12-7b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(f) (1) The Office of Fiscal Analysis shall not make known in any manner any information obtained from any such report or inventory, or any information obtained pursuant to subdivision (2) of this subsection which would allow the identification of any taxpayer or of the amount or source of income, profits, losses, expenditures or any particulars thereof set forth or disclosed in any return, statement or report required to be filed with or submitted to the commissioner which is discernible from such report or inventory, or from such information obtained pursuant to subdivision [(d)] (2) of this subsection, except as provided in this subsection. The Office of Fiscal Analysis may disclose such information to other state officers and employees when required in the course of duty. No such officer or employee shall make known any such information to any other person except as provided in this subsection. Any person who violates any provision of this subsection shall be fined not more than one thousand dollars or imprisoned not more than one year or both.

Sec. 2. Section 12-317 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009):

Any person having in [his] such person's possession any cigarettes with respect to the storage or use of which a tax is imposed herein shall, within twenty-four hours after coming into possession of such cigarettes, file a return with the Commissioner of Revenue Services in such form as [he] said commissioner may prescribe. The return shall be accompanied by a payment of the amount of the tax shown to be due thereon. If any such person fails to file the return as required by this section, said commissioner shall make such return at any time thereafter, according to the best information obtainable, in accordance with section 12-309, except that the penalty shall be equal to ten per cent of such tax due and unpaid. Such tax shall bear interest at the rate of one per cent per month or fraction thereof, from the due date of such tax until the date of payment.

Sec. 3. Section 12-326a of the general statutes is amended by adding subsection (c) as follows (Effective October 1, 2009):

(NEW) (c) Notwithstanding the provisions of section 12-15 or any other section of the general statutes, for purposes of this part the commissioner may make public the identity of those persons who are stamping agents, subjobbers or chain stores.

Sec. 4. Subsection (b) of section 12-460a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009):

(b) With respect to fiscal years ending on or after June 30, [2004] 2010, the [Commissioner of Revenue Services] Comptroller shall deposit into the Conservation Fund established under section 22a-27h three million dollars of the amount of the funds received by the state from the tax imposed under this chapter attributable to sales of fuel from distributors to any boat yard, public or private marina or other entity renting or leasing slips, dry storage, mooring or other space for marine vessels provided (1) two hundred fifty thousand dollars shall be credited to the boating account, and (2) two million dollars shall be credited to the fisheries account of which not less than seventy-five thousand dollars shall be allocated to The University of Connecticut for the Long Island Sound councils.

Sec. 5. Section 12-484 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2010):

(a) Except as otherwise provided in this section, every motor carrier subject to the tax imposed by this chapter shall, on or before the last day of January, April, July and October, annually, [or on or before the last day of the month following such reporting period, other than a quarterly period as may be established under regulations promulgated by the Commissioner of Revenue Services,] make to the commissioner such reports of its operations during the quarter [or such other period, as the case may be,] ending the last day of the preceding month as the commissioner may require and such other reports from time to time as the commissioner may deem necessary.

(b) The commissioner shall adopt in accordance with chapter 54 and enforce regulations relating to the administration and enforcement of this chapter.

(c) The commissioner [by regulation may] shall exempt from the [aforesaid] reporting requirements of subsection (a) of this section [, as a class, (1)] those motor carriers operating solely within this state and [(2) those motor carriers] purchasing motor fuel solely within this state. [, and require in each such instance an annual report, if in his discretion the enforcement of this chapter would not be adversely affected by such regulation.]

Sec. 6. Subsection (c) of section 12-487 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2010):

(c) [No] (1) Except as otherwise provided in subdivisions (2) and (3) of this subsection, no person shall operate or cause to be operated any [such vehicle] qualified motor vehicle, as defined in section 12-478, in this state unless such vehicle bears the identification markers required by this section. [, provided the commissioner by letter or telegram may authorize the operation, for a period not to exceed ten days as to any one motor carrier, of a vehicle or vehicles without such identification marker when the enforcement of this section would cause undue delay and hardship in the operation of such vehicle or vehicles and when the enforcement of this chapter will not be adversely affected.] Any person operating or causing to be operated in this state any qualified motor vehicle [, as defined in section 12-478,] to which the identification markers required by this section or any regulations adopted in accordance with the provisions of chapter 54 are not properly affixed shall have committed an infraction, the fine for which shall be ninety dollars. Any provision of the general statutes to the contrary notwithstanding, any person who is alleged to have committed such an infraction shall follow the procedures set forth in section 51-164n.

(2) The commissioner may authorize the operation without the identification markers required by this section of a qualified motor vehicle in this state by a motor carrier where (A) the motor carrier has filed with the commissioner or an authorized third party an application for a trip permit, on a form prescribed by the commissioner or authorized third party, and has paid the trip permit fee; (B) the commissioner has determined that the enforcement of this chapter will not be adversely affected; and (C) the commissioner has determined that the enforcement of this section would cause undue delay and hardship in the operation of such vehicle. Each trip permit, upon issuance, shall be valid for a period of seventy-two hours from the time of its issuance, or from the time specified by the trip permittee, whichever is later. The issuance of a trip permit to a motor carrier for a qualified motor vehicle shall exempt the motor carrier from filing the quarterly report otherwise required under section 12-484, as amended by this act, and from paying the tax otherwise required under section 12-483 on the operation of such vehicle in this state during the time that the permit is in effect. A motor carrier to whom a trip permit is issued shall, during the time that the permit is in effect, be required to have the permit present at all times in the vehicle for which it was issued, and to present the permit, on demand, for inspection by employees or other agents of the Department of Revenue Services, or by law enforcement officers. A trip permit shall not be transferable by a trip permittee. The trip permit fee shall be fifty dollars for each qualified motor vehicle. A motor carrier, in signing the application for a trip permit and in paying the trip permit fee, shall acknowledge and agree that the motor carrier is waiving and releasing any claim for refund that might otherwise be allowable if the amount of the trip permit fee were to exceed the tax that would otherwise be required to be paid under section 12-483 on the operation of such vehicle in this state during the time that the permit is in effect. The commissioner may authorize third parties to issue trip permits under this subsection. An authorized third party shall remit to the commissioner fifty dollars for each trip permit. Such third party shall issue a receipt to each trip permittee.

(3) The commissioner may authorize the operation without the identification markers required by this section of a qualified motor vehicle in this state by a motor carrier for emergency purposes if the commissioner determines that the enforcement of this section would cause undue delay and hardship in the operation of such vehicle or vehicles.

Sec. 7. Subsection (a) of section 12-631 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

As used in this chapter, the following terms have the following meanings:

(a) "Business firm" means any business entity authorized to do business in the state and subject to the [corporation business] tax imposed under [chapter 208 or to the unincorporated business tax imposed under chapter 228, or any insurance company, hospital or medical services corporation subject to the insurance companies, hospital and medical services corporations tax imposed under chapter 207, or any air carrier subject to the air carriers tax imposed under chapter 209, or any railroad company subject to the railroad companies tax imposed under chapter 210, or any express, telegraph, telephone, cable, car or community antenna television company subject to the express, telegraph, telephone, cable, car and community antenna television companies tax imposed under chapter 211, or any utility company subject to the utility companies tax imposed under chapter 212, or any public service company subject to the public service companies tax imposed under chapter 212a] chapter 207, 208, 209, 210, 211 or 212.

Sec. 8. Section 12-635a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

The Commissioner of Revenue Services shall grant a credit against any tax due under the provisions of chapter 207, 208, 209, 210, 211 or 212 in an amount not to exceed [forty] sixty per cent of the total cash amount invested during the taxable year by the business firm in community-based alcoholism prevention or treatment programs operated or created pursuant to proposals approved pursuant to section 12-632.

Sec. 9. Subsection (g) of section 38a-91hh of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(g) Nothing contained in this section shall prevent or be construed as prohibiting the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating to such report to (1) the [Insurance Department] insurance regulatory officials of this or any other state or country, (2) law enforcement officials of this or any other state, or (3) any agency of this or any other state, or the federal government at any time, [unless] provided such agency or office receiving the report or matters relating to such report agrees, in writing, that such documents shall be confidential.

Sec. 10. Section 38a-91nn of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to calendar years commencing on and after January 1, 2009):

(a) Each captive insurance company shall pay to the Commissioner of Revenue Services, [in the month of February of each year] on or before the first day of March, annually, a tax at the rate of thirty-eight hundredths of one per cent on the first twenty million dollars and two hundred eighty-five thousandths of one per cent on the next twenty million dollars and nineteen hundredths of one per cent on the next twenty million dollars and seventy-two thousandths of one per cent on each dollar thereafter on the direct premiums collected or contracted for on policies or contracts of insurance written by the captive insurance company during the year ending December thirty-first next preceding, after deducting from the direct premiums subject to the tax the amounts paid to policyholders as return premiums which shall include dividends on unabsorbed premiums or premium deposits returned or credited to policyholders, except that no tax shall be due or payable as to considerations received for annuity contracts.

(b) The annual minimum aggregate tax to be paid by a captive insurance company calculated under [subsections (a) and (b)] subsection (a) of this section shall be seven thousand five hundred dollars, and the annual maximum aggregate tax shall be two hundred thousand dollars.

(c) [A captive insurance company failing to file returns as required in this section or failing to pay within the time required all taxes assessed by this section shall be subject to penalty under section 12-229] The provisions of sections 12-204, 12-204d, 12-204g and 12-205 to 12-208, inclusive, shall apply to the provisions of sections 38a-91aa to 38a-91qq, inclusive, as amended by this act, in the same manner and with the same force and effect as if the language of said sections 12-204, 12-204d, 12-204g and 12-205 to 12-208, inclusive, had been incorporated in full into this section and had expressly referred to the tax due under sections 38a-91aa to 38a-91qq, inclusive, as amended by this act, except to the extent that any such language is inconsistent with a provision of said sections 38a-91aa to 38a-91qq, inclusive.

(d) Two or more captive insurance companies under common ownership and control shall be taxed as though they were a single captive insurance company.

(e) For the purposes of this section common ownership and control means:

(1) In the case of stock corporations, the direct or indirect ownership of eighty per cent or more of the outstanding voting stock of two or more corporations by the same shareholder or shareholders; and

(2) In the case of mutual or nonprofit corporations, the direct or indirect ownership of eighty per cent or more of the surplus and the voting power of two or more corporations by the same member or members.

(f) The tax provided for in this section shall constitute all taxes collectible under the laws of this state from any captive insurance company, and no other occupation tax or other taxes shall be levied or collected from any captive insurance company by the state or any county, city or municipality within this state, except taxes on real and personal property used in the production of income.

(g) The tax provided for in this section shall be calculated on an annual basis, notwithstanding policies or contracts of insurance or contracts of reinsurance issued on a multiyear basis. In the case of multiyear policies or contracts, the premium shall be prorated for purposes of determining the tax under this section.

Sec. 11. (Effective July 1, 2009) Sections 12-34d and 12-315a of the general statutes are repealed.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2009

12-7b(f)(1)

Sec. 2

July 1, 2009

12-317

Sec. 3

October 1, 2009

12-326a

Sec. 4

July 1, 2009

12-460a(b)

Sec. 5

January 1, 2010

12-484

Sec. 6

January 1, 2010

12-487(c)

Sec. 7

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-631(a)

Sec. 8

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-635a

Sec. 9

from passage

38a-91hh(g)

Sec. 10

from passage and applicable to calendar years commencing on and after January 1, 2009

38a-91nn

Sec. 11

July 1, 2009

Repealer section

Statement of Purpose:

To make various technical changes and corrections, to provide a ten per cent penalty for failure to file cigarette taxes, to publicly identify certain persons for purposes of cigarette tax administration, to transfer responsibility for making transfers to the Conservation Fund to the Comptroller, to exempt in-state motor carriers from filing certain quarterly reports, to provide for issuance of a trip permit for motor carriers that do not normally travel in this state, to provide for application of certain tax provisions to the captive insurers premium receipts tax, and to repeal two statutes, one an outdated statute that established the State Tax Review Commission, and the other requiring a report on cigarette enforcement efforts.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]