Connecticut Seal

General Assembly


Raised Bill No. 5480

February Session, 2010


LCO No. 2072



Referred to Committee on Finance, Revenue and Bonding


Introduced by:





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

Section 1. (NEW) (Effective July 1, 2010) (a) As used in this section, "regional planning organization" or "organization" has the same meaning as provided in section 4-124i of the general statutes, and "sale" has the same meaning as provided in section 12-407 of the general statutes.

(b) (1) Any regional planning organization may, upon approval by its governing body, establish a tax upon any retailer located within such organization's region. The governing body shall establish which sales shall be subject to such tax, the rate of tax and the method of apportionment of the proceeds of such tax to the region or to the municipalities that comprise the organization.

(2) The regional planning organization shall conduct an annual review of any tax imposed pursuant to this section, commencing one year after the date of its original imposition. Such organization's governing body shall thereafter amend or approve such tax in the same manner as provided in subdivision (1) of this subsection. If a tax is not so amended or approved, it shall expire at the end of the current calendar quarter or thirty days after the annual review required pursuant to this subdivision, whichever is later.

(c) Any regional sales tax imposed pursuant to this section shall be in addition to any state tax imposed on the same activity.

(d) (1) Any sales tax imposed by an organization under the provisions of this section shall be collected and administered by the Department of Revenue Services, in the same manner as such taxes are currently paid, and in accordance with the laws governing such taxes. The department shall segregate the amount paid that is attributable to any regional sales tax and, commencing on the first day of the calendar quarter next succeeding the institution of such regional sales tax, remit to the organization such amount. Thereafter, the department shall remit quarterly to the organization any amounts received attributable to a regional sales tax.

(2) For the fiscal years ending June 30, 2011, and June 30, 2012, the department may deduct from the amounts received attributable to a regional sales tax any costs directly associated with the administration and collection of such tax by the department.

(e) A regional planning organization may use the revenue generated by the tax enacted under the provisions of this section for capital expenditures, distribution to municipalities or any regular or special purpose as provided in the budget enacted each year by the organization.

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

Section 1

July 1, 2010

New section

Statement of Purpose:

To allow regional planning organizations to impose a sales tax as a source of revenue.

[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.]