Connecticut Seal

General Assembly

File No. 842

    January Session, 2015

Substitute Senate Bill No. 946

Senate, May 18, 2015

The Committee on Finance, Revenue and Bonding reported through SEN. FONFARA of the 1st Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

T1

Connecticut Taxable Income

Rate of Tax

T2

Not over $2,250

3.0%

T3

Over $2,250

$67.50, plus 4.5% of the

T4

 

excess over $2,250

T5

Connecticut Taxable Income

Rate of Tax

T6

Not over $3,500

3.0%

T7

Over $3,500

$105.00, plus 4.5% of the

T8

 

excess over $3,500

T9

Connecticut Taxable Income

Rate of Tax

T10

Not over $4,500

3.0%

T11

Over $4,500

$135.00, plus 4.5% of the

T12

 

excess over $4,500

T13

Connecticut Taxable Income

Rate of Tax

T14

Not over $6,250

3.0%

T15

Over $6,250

$187.50, plus 4.5% of the

T16

 

excess over $6,250

T17

Connecticut Taxable Income

Rate of Tax

T18

Not over $10,000

3.0%

T19

Over $10,000

$300.00, plus 4.5% of the

T20

 

excess over $10,000

T21

Connecticut Taxable Income

Rate of Tax

T22

Not over $12,500

3.0%

T23

Over $12,500

$375.00, plus 4.5% of the

T24

 

excess over $12,500

T25

Connecticut Taxable Income

Rate of Tax

T26

Not over $7,500

3.0%

T27

Over $7,500

$225.00, plus 4.5% of the

T28

 

excess over $7,500

T29

Connecticut Taxable Income

Rate of Tax

T30

Not over $12,000

3.0%

T31

Over $12,000

$360.00, plus 4.5% of the

T32

 

excess over $12,000

T33

Connecticut Taxable Income

Rate of Tax

T34

Not over $15,000

3.0%

T35

Over $15,000

$450.00, plus 4.5% of the

T36

 

excess over $15,000

T37

Connecticut Taxable Income

Rate of Tax

T38

Not over $10,000

3.0%

T39

Over $10,000

$300.00, plus 4.5% of the

T40

 

excess over $10,000

T41

Connecticut Taxable Income

Rate of Tax

T42

Not over $16,000

3.0%

T43

Over $16,000

$480.00, plus 4.5% of the

T44

 

excess over $16,000

T45

Connecticut Taxable Income

Rate of Tax

T46

Not over $20,000

3.0%

T47

Over $20,000

$600.00, plus 4.5% of the

T48

 

excess over $20,000

T49

Connecticut Taxable Income

Rate of Tax

T50

Not over $10,000

3.0%

T51

Over $10,000

$300.00, plus 5.0% of the

T52

 

excess over $10,000

T53

Connecticut Taxable Income

Rate of Tax

T54

Not over $16,000

3.0%

T55

Over $16,000

$480.00, plus 5.0% of the

T56

 

excess over $16,000

T57

Connecticut Taxable Income

Rate of Tax

T58

Not over $20,000

3.0%

T59

Over $20,000

$600.00, plus 5.0% of the

T60

 

excess over $20,000

T61

Connecticut Taxable Income

Rate of Tax

T62

Not over $10,000

3.0%

T63

Over $10,000 but not

$300.00, plus 5.0% of the

T64

over $500,000

excess over $10,000

T65

Over $500,000

$24,800, plus 6.5% of the

T66

 

excess over $500,000

T67

Connecticut Taxable Income

Rate of Tax

T68

Not over $16,000

3.0%

T69

Over $16,000 but not

$480.00, plus 5.0% of the

T70

over $800,000

excess over $16,000

T71

Over $800,000

$39,680, plus 6.5% of the

T72

 

excess over $800,000

T73

Connecticut Taxable Income

Rate of Tax

T74

Not over $20,000

3.0%

T75

Over $20,000 but not

$600.00, plus 5.0% of the

T76

over $1,000,000

excess over $20,000

T77

Over $1,000,000

$49,600, plus 6.5% of the

T78

 

excess over $1,000,000

T79

Connecticut Taxable Income

Rate of Tax

T80

Not over $10,000

3.0%

T81

Over $10,000 but not

$300.00, plus 5.0% of the

T82

over $500,000

excess over $10,000

T83

Over $500,000

$24,800, plus 6.5% of the

T84

 

excess over $500,000

T85

Connecticut Taxable Income

Rate of Tax

T86

Not over $10,000

3.0%

T87

Over $10,000 but not

$300.00, plus 5.0% of the

T88

over $50,000

excess over $10,000

T89

Over $50,000 but not

$2,300, plus 5.5% of the

T90

over $100,000

excess over $50,000

T91

Over $100,000 but not

$5,050, plus 6.0% of the

T92

over $200,000

excess over $100,000

T93

Over $200,000 but not

$11,050, plus 6.5% of the

T94

over $250,000

excess over $200,000

T95

Over $250,000

$14,300, plus 6.70% of the

T96

 

excess over $250,000

T97

Connecticut Taxable Income

Rate of Tax

T98

Not over $16,000

3.0%

T99

Over $16,000 but not

$480.00, plus 5.0% of the

T100

over $80,000

excess over $16,000

T101

Over $80,000 but not

$3,680, plus 5.5% of the

T102

over $160,000

excess over $80,000

T103

Over $160,000 but not

$8,080, plus 6.0% of the

T104

over $320,000

excess over $160,000

T105

Over $320,000 but not

$17,680, plus 6.5% of the

T106

over $400,000

excess over $320,000

T107

Over $400,000

$22,880, plus 6.70% of the

T108

 

excess over $400,000

T109

Connecticut Taxable Income

Rate of Tax

T110

Not over $20,000

3.0%

T111

Over $20,000 but not

$600.00, plus 5.0% of the

T112

over $100,000

excess over $20,000

T113

Over $100,000 but not

$4,600, plus 5.5% of the

T114

over $200,000

excess over $100,000

T115

Over $200,000 but not

$10,100, plus 6.0% of the

T116

over $400,000

excess over $200,000

T117

Over $400,000 but not

$22,100, plus 6.5% of the

T118

over $500,000

excess over $400,000

T119

Over $500,000

$28,600, plus 6.70% of the

T120

 

excess over $500,000

T121

Connecticut Taxable Income

Rate of Tax

T122

Not over $10,000

3.0%

T123

Over $10,000 but not

$300.00, plus 5.0% of the

T124

over $50,000

excess over $10,000

T125

Over $50,000 but not

$2,300, plus 5.5% of the

T126

over $100,000

excess over $50,000

T127

Over $100,000 but not

$5,050, plus 6.0% of the

T128

over $200,000

excess over $100,000

T129

Over $200,000 but not

$11,050, plus 6.5% of the

T130

over $250,000

excess over $200,000

T131

Over $250,000

$14,300, plus 6.70% of the

T132

 

excess over $250,000

T133

Connecticut Taxable Income

Rate of Tax

T134

Not over $10,000

3.0%

T135

Over $10,000 but not

$300.00, plus 5.0% of the

T136

over $50,000

excess over $10,000

T137

Over $50,000 but not

$2,300, plus 5.5% of the

T138

over $100,000

excess over $50,000

T139

Over $100,000 but not

$5,050, plus 6.0% of the

T140

over $200,000

excess over $100,000

T141

Over $200,000 but not

$11,050, plus 6.5% of the

T142

over $250,000

excess over $200,000

T143

Over $250,000 but not over

$14,300, plus 6.70% of the

T144

$500,000

excess over $250,000

T145

Over $500,000

$31,050, plus 6.99% of the

T146

 

excess over $500,000

T147

Connecticut Taxable Income

Rate of Tax

T148

Not over $16,000

3.0%

T149

Over $16,000 but not

$480.00, plus 5.0% of the

T150

over $80,000

excess over $16,000

T151

Over $80,000 but not

$3,680, plus 5.5% of the

T152

over $160,000

excess over $80,000

T153

Over $160,000 but not

$8,080, plus 6.0% of the

T154

over $320,000

excess over $160,000

T155

Over $320,000 but not

$17,680, plus 6.5% of the

T156

over $400,000

excess over $320,000

T157

Over $400,000 but not over $800,000

$22,880, plus 6.70% of the excess over $400,000

T158

$800,000

excess over $400,000

T159

Over $800,000

$49,680, plus 6.99% of the excess over $800,000

T160

 

excess over $800,000

T161

Connecticut Taxable Income

Rate of Tax

T162

Not over $20,000

3.0%

T163

Over $20,000 but not

$600.00, plus 5.0% of the

T164

over $100,000

excess over $20,000

T165

Over $100,000 but not

$4,600, plus 5.5% of the

T166

over $200,000

excess over $100,000

T167

Over $200,000 but not

$10,100, plus 6.0% of the

T168

over $400,000

excess over $200,000

T169

Over $400,000 but not

$22,100, plus 6.5% of the

T170

over $500,000

excess over $400,000

T171

Over $500,000 but not over

$28,600, plus 6.70% of the excess

T172

$1,000,000

over $500,00

T173

Over $1,000,000

$62,100, plus 6.99% of the excess

T174

 

over $1,000,000

T175

Connecticut Taxable Income

Rate of Tax

T176

Not over $10,000

3.0%

T177

Over $10,000 but not

$300.00, plus 5.0% of the

T178

over $50,000

excess over $10,000

T179

Over $50,000 but not

$2,300, plus 5.5% of the

T180

over $100,000

excess over $50,000

T181

Over $100,000 but not

$5,050, plus 6.0% of the

T182

over $200,000

excess over $100,000

T183

Over $200,000 but not

$11,050, plus 6.5% of the

T184

over $250,000

excess over $200,000

T185

Over $250,000 but not over

$14,300, plus 6.70% of the

T186

$500,000

excess over $250,000

T187

Over $500,000

$31,050, plus 6.99% of the

T188

 

excess over $500,000

T189

Connecticut

 

T190

Adjusted Gross Income

Amount of Credit

T191

      Over $14,500 but

 

T192

        not over $18,100

75%

T193

      Over $18,100 but

 

T194

        not over $18,600

70%

T195

      Over $18,600 but

 

T196

        not over $19,100

65%

T197

      Over $19,100 but

 

T198

        not over $19,600

60%

T199

      Over $19,600 but

 

T200

        not over $20,100

55%

T201

      Over $20,100 but

 

T202

        not over $20,600

50%

T203

      Over $20,600 but

 

T204

        not over $21,100

45%

T205

      Over $21,100 but

 

T206

        not over $21,600

40%

T207

      Over $21,600 but

 

T208

        not over $24,200

35%

T209

      Over $24,200 but

 

T210

        not over $24,700

30%

T211

      Over $24,700 but

 

T212

        not over $25,200

25%

T213

      Over $25,200 but

 

T214

        not over $25,700

20%

T215

      Over $25,700 but

 

T216

        not over $30,200

15%

T217

      Over $30,200 but

 

T218

        not over $30,700

14%

T219

      Over $30,700 but

 

T220

        not over $31,200

13%

T221

      Over $31,200 but

 

T222

        not over $31,700

12%

T223

      Over $31,700 but

 

T224

        not over $32,200

11%

T225

      Over $32,200 but

 

T226

        not over $58,000

10%

T227

      Over $58,000 but

 

T228

        not over $58,500

9%

T229

      Over $58,500 but

 

T230

        not over $59,000

8%

T231

      Over $59,000 but

 

T232

        not over $59,500

7%

T233

      Over $59,500 but

 

T234

        not over $60,000

6%

T235

      Over $60,000 but

 

T236

        not over $60,500

5%

T237

      Over $60,500 but

 

T238

        not over $61,000

4%

T239

      Over $61,000 but

 

T240

        not over $61,500

3%

T241

      Over $61,500 but

 

T242

        not over $62,000

2%

T243

      Over $62,000 but

 

T244

        not over $62,500

1%

T245

Connecticut

 

T246

Adjusted Gross Income

Amount of Credit

T247

      Over $15,000 but

 

T248

        not over $18,800

75%

T249

      Over $18,800 but

 

T250

        not over $19,300

70%

T251

      Over $19,300 but

 

T252

        not over $19,800

65%

T253

      Over $19,800 but

 

T254

        not over $20,300

60%

T255

      Over $20,300 but

 

T256

        not over $20,800

55%

T257

      Over $20,800 but

 

T258

        not over $21,300

50%

T259

      Over $21,300 but

 

T260

        not over $21,800

45%

T261

      Over $21,800 but

 

T262

        not over $22,300

40%

T263

      Over $22,300 but

 

T264

        not over $25,000

35%

T265

      Over $25,000 but

 

T266

        not over $25,500

30%

T267

      Over $25,500 but

 

T268

        not over $26,000

25%

T269

      Over $26,000 but

 

T270

        not over $26,500

20%

T271

      Over $26,500 but

 

T272

        not over $31,300

15%

T273

      Over $31,300 but

 

T274

        not over $31,800

14%

T275

      Over $31,800 but

 

T276

        not over $32,300

13%

T277

      Over $32,300 but

 

T278

        not over $32,800

12%

T279

      Over $32,800 but

 

T280

        not over $33,300

11%

T281

      Over $33,300 but

 

T282

        not over $60,000

10%

T283

      Over $60,000 but

 

T284

        not over $60,500

9%

T285

      Over $60,500 but

 

T286

        not over $61,000

8%

T287

      Over $61,000 but

 

T288

        not over $61,500

7%

T289

      Over $61,500 but

 

T290

        not over $62,000

6%

T291

      Over $62,000 but

 

T292

        not over $62,500

5%

T293

      Over $62,500 but

 

T294

        not over $63,000

4%

T295

      Over $63,000 but

 

T296

        not over $63,500

3%

T297

      Over $63,500 but

 

T298

        not over $64,000

2%

T299

      Over $64,000 but

 

T300

        not over $64,500

1%

T301

Amount of Sale

Amount of Tax

T302

$0.00 to [$0.07] $0.08 inclusive

No Tax

T303

[.08 to .23] .09 to .25 inclusive

1 cent

T304

[.24 to .39] .26 to .42 inclusive

2 cents

T305

[.40 to .55] .43 to .59 inclusive

3 cents

T306

[.56 to .70] .60 to .76 inclusive

4 cents

T307

[.71 to .86] .77 to .94 inclusive

5 cents

T308

[.87 to 1.02] .95 to 1.11 inclusive

6 cents

T309

[1.03 to 1.18 inclusive]

[7 cents]

T310

Amount of Sale

Amount of Tax

T311

$0.00 to $0.99 inclusive

No Tax

T312

1.00 to 2.99 inclusive

1 cent

T313

Amount of Sale

Amount of Tax

T314

$0.00 to [$0.08] $0.09 inclusive

No Tax

T315

[.09 to .25] .10 to .28 inclusive

1 cent

T316

[.26 to .42] .29 to .46 inclusive

2 cents

T317

[.43 to .59] .47 to .65 inclusive

3 cents

T318

[.60 to .76] .66 to .84 inclusive

4 cents

T319

[.77 to .94] .85 to 1.02 inclusive

5 cents

T320

[.95 to 1.11] 1.03 to 1.21 inclusive

6 cents

T321

Amount of Sale

Amount of Tax

T322

$0.00 to $0.99 inclusive

No Tax

T323

1.00 to 2.99 inclusive

1 cent

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

Section 1

from passage and applicable to taxable years commencing on or after January 1, 2015

12-700(a)

Sec. 2

from passage and applicable to taxable years commencing on or after January 1, 2015

12-702(a)

Sec. 3

from passage and applicable to taxable years commencing on or after January 1, 2015

12-703(a)(2)(H) and (I)

Sec. 4

from passage and applicable to taxable years commencing on or after January 1, 2015

12-704c(c)(1)(I) and (J)

Sec. 5

from passage and applicable to taxable years commencing on or after January 1, 2015

12-704e(e)

Sec. 6

July 1, 2015, and applicable to taxable years commencing on or after January 1, 2015

12-701(a)(20)(B)

Sec. 7

from passage and applicable to income years commencing on or after January 1, 2016

12-214(b)

Sec. 8

from passage and applicable to income years commencing on or after January 1, 2016

12-219(b)

Sec. 9

from passage and applicable to calendar years commencing on or after January 1, 2015

12-211a(a)

Sec. 10

from passage

12-217jj(a)(3)

Sec. 11

from passage and applicable to sales occurring on or after October 1, 2015, and to sales of services that are billed to customers for a period that includes said October 1, 2015, date

12-408(1)

Sec. 12

from passage and applicable to sales occurring on or after October 1, 2015

12-408(3)

Sec. 13

from passage and applicable to sales occurring on or after October 1, 2015, and to sales of services that are billed to customers for a period that includes said October 1, 2015, date

12-411(1)(A)

Sec. 14

from passage and applicable to sales occurring on or after July 1, 2016, and to sales of services that are billed to customers for a period that includes said July 1, 2016, date

12-408(1)(A)

Sec. 15

from passage and applicable to sales occurring on or after July 1, 2016

12-408(3)

Sec. 16

from passage and applicable to sales occurring on or after July 1, 2016, and to sales of services that are billed to customers for a period that includes said July 1, 2016, date

12-411(1)(A)

Sec. 17

from passage and applicable to sales occurring on or after October 1, 2015, and to sales of services that are billed to customers for a period that includes said October 1, 2015, date

12-411b(c)

Sec. 18

October 1, 2015, and applicable to sales occurring on or after said date, and to sales of services that are billed to customers for a period that includes said October 1, 2015, date

12-407(a)(37)

Sec. 19

October 1, 2015, and applicable to sales occurring on or after said date, and to sales of services that are billed to customers for a period that includes said date

12-408(1)(D)

Sec. 20

October 1, 2015, and applicable to sales occurring on or after said date, and to sales of services that are billed to customers for a period that includes said date

12-411(1)(E)

Sec. 21

July 1, 2015

12-407e

Sec. 22

from passage

12-217(a)(4)

Sec. 23

from passage

12-217zz

Sec. 24

from passage

12-263b

Sec. 25

from passage

12-284b(b)

Sec. 26

October 1, 2015

34-38n(a)

Sec. 27

October 1, 2015

34-112(a)

Sec. 28

October 1, 2015

34-413(a)

Sec. 29

July 1, 2015

4-28e(c)

Sec. 30

July 1, 2015

13b-61c

Sec. 31

July 1, 2015

4-66aa

Sec. 32

from passage

New section

Sec. 33

July 1, 2015

New section

Sec. 34

July 1, 2015

21a-408d(a)

Sec. 35

July 1, 2015

21a-408h(c)

Sec. 36

July 1, 2015

21a-408i(c)

Sec. 37

July 1, 2015

21a-408m(b)

Sec. 38

from passage

30-22

Sec. 39

from passage

30-22a

Sec. 40

from passage

30-26

Sec. 41

July 1, 2015

12-801

Sec. 42

July 1, 2015

12-806(b)(4)

Sec. 43

July 1, 2015

New section

Sec. 44

July 1, 2015

New section

Sec. 45

July 1, 2015

12-692

Sec. 46

January 1, 2016

53-344b(a)

Sec. 47

January 1, 2016

New section

Sec. 48

January 1, 2016

New section

Sec. 49

from passage

New section

Sec. 50

July 1, 2015

19a-88

Sec. 51

July 1, 2015

19a-515(a)

Sec. 52

July 1, 2015

20-65k

Sec. 53

July 1, 2015

20-74bb(c)

Sec. 54

July 1, 2015

20-74f

Sec. 55

July 1, 2015

20-74s(g) to (n)

Sec. 56

July 1, 2015

20-149

Sec. 57

July 1, 2015

20-162o(f)

Sec. 58

July 1, 2015

20-162bb(g)

Sec. 59

July 1, 2015

20-191a

Sec. 60

July 1, 2015

20-195c

Sec. 61

July 1, 2015

20-195o

Sec. 62

July 1, 2015

20-195cc

Sec. 63

July 1, 2015

20-201

Sec. 64

July 1, 2015

20-206b(b)

Sec. 65

July 1, 2015

20-206n

Sec. 66

July 1, 2015

20-206r

Sec. 67

July 1, 2015

20-206bb(e)

Sec. 68

July 1, 2015

20-206ll(b)

Sec. 69

July 1, 2015

20-222a

Sec. 70

July 1, 2015

20-275

Sec. 71

July 1, 2015

20-395d(a)

Sec. 72

July 1, 2015

20-398(a)

Sec. 73

July 1, 2015

20-412

Sec. 74

July 1, 2015

New section

Sec. 75

July 1, 2015

New section

Sec. 76

from passage and applicable to income years commencing on or after January 1, 2015

12-213(a)

Sec. 77

from passage and applicable to income years commencing on or after January 1, 2015

New section

Sec. 78

from passage and applicable to income years commencing on or after January 1, 2015

New section

Sec. 79

from passage and applicable to income years commencing on or after January 1, 2015

New section

Sec. 80

from passage and applicable to income years commencing on or after January 1, 2015

12-214

Sec. 81

from passage and applicable to income years commencing on or after January 1, 2015

12-217

Sec. 82

from passage and applicable to income years commencing on or after January 1, 2015

12-217n(b)

Sec. 83

from passage and applicable to income years commencing on or after January 1, 2015

12-217t(e)

Sec. 84

from passage and applicable to income years commencing on or after January 1, 2015

12-217u(l)

Sec. 85

from passage and applicable to income years commencing on or after January 1, 2015

12-217gg(c)

Sec. 86

from passage and applicable to income years commencing on or after January 1, 2015

12-217gg(h)

Sec. 87

from passage and applicable to income years commencing on or after January 1, 2015

12-218

Sec. 88

from passage and applicable to income years commencing on or after January 1, 2015

12-218b

Sec. 89

from passage and applicable to income years commencing on or after January 1, 2015

12-218c(c)

Sec. 90

from passage and applicable to income years commencing on or after January 1, 2015

12-218d(d)

Sec. 91

from passage and applicable to income years commencing on or after January 1, 2015

12-219

Sec. 92

from passage and applicable to income years commencing on or after January 1, 2015

12-219a

Sec. 93

from passage and applicable to income years commencing on or after January 1, 2015

12-221a

Sec. 94

from passage and applicable to income years commencing on or after January 1, 2015

12-222

Sec. 95

from passage and applicable to income years commencing on or after January 1, 2015

12-223a

Sec. 96

from passage and applicable to income years commencing on or after January 1, 2015

12-223b

Sec. 97

from passage and applicable to income years commencing on or after January 1, 2015

12-223c

Sec. 98

from passage and applicable to income years commencing on or after January 1, 2015

12-223e

Sec. 99

from passage and applicable to income years commencing on or after January 1, 2015

12-223f

Sec. 100

from passage and applicable to income years commencing on or after January 1, 2015

12-242d

Sec. 101

from passage and applicable to income years commencing on or after January 1, 2015

38a-88a(f)

Sec. 102

July 1, 2015

4-30a

Sec. 103

July 1, 2015

4-85

Sec. 104

July 1, 2015

3-115

Sec. 105

July 1, 2015

2-35

Sec. 106

July 1, 2015

2-36c

Sec. 107

July 1, 2015

2-24a

Sec. 108

October 1, 2015

New section

Sec. 109

July 1, 2016

New section

Sec. 110

July 1, 2015

Repealer section

Sec. 111

July 1, 2015

Repealer section

FIN

Joint Favorable Subst.

 

General Fund (GF) Budget ($ - millions)

 

FY 16

FY 17

Total

sSB 946 Total

1,004.5

579.4

 

Taxes

949.0

480.9

 

Other

55.5

98.5

 

Hospital Tax Update

160.5

160.5

 

Amortization of GAAP

(47.6)

(47.6)

 

Federal Grants impact of sHB 6824

(5.1)

(13.3)

 

Total Revenue (based on April Consensus)

18,472.6

18,728.2

 

Net Appropriations

18,286.2

18,873.1

 

Surplus / (Deficit)

186.4

(144.9)

41.5

Summary Impact of sSB by Revenue Categories and Major Funds / Accounts over the 2016 – 2017 Biennium and into the Out Years ($ - millions)

 

FY 16

FY 17

FY 18

FY 19

FY 20

Personal Income

308.6

303.2

315.9

332.3

359.4

Sales and Use

320.8

(5.7)

(5.1)

(5.3)

(5.5)

Corporations

281.8

202.8

188.5

125.0

130.0

Insurance Companies

22.7

22.7

-

-

-

Alcoholic Beverages

.2

.2

.2

.2

.2

Health Provider

4.0

(53.2)

2.8

2.8

2.8

Miscellaneous

(.1)

(.1)

(.1)

(.1)

(.1)

Earned Income Credit

(11.0)

(11.0)

-

-

-

Subtotal: Taxes

949.0

480.9

502.2

454.9

486.8

Other Revenue

26.2

45.0

45.0

45.0

45.0

Other Sources

29.3

53.5

(103.0)

(246.0)

(391.0)

Total GF

1,004.5

579.4

444.2

253.9

140.8

           

Transfers from the GF to the Special Transportation Fund

-

(25.0)

112

255

400

MRSA

294.2

408.9

424.4

440.1

456.0

     

($ - millions)

Sec.

Action(s)

Fund

FY 16

FY 17

1

Establishes a new top marginal rate of 6.99% in the Income Tax for those tax filers with CT Adjusted Gross Incomes over certain thresholds.

General

131.9

118.4

1

Establishes a 2% supplemental tax on all capital gains income for those tax filers with CT Adjusted Gross Incomes over certain thresholds.

General

167.6

178.0

2-4

Delays the scheduled increase in the personal exemption for Single Filers of the Income Tax from $14,500 to $15,000.

General

15.1

10.8

5

Delays the scheduled restoration of the state's Earned Income Tax Credit (EITC) rate to 30% from 27.5% of the federal EITC.

General

11.0

11.0

6

Increases, from 50% to 100%, the Income Tax exemption for military retirement pay.

General

(6.0)

(4.0)

7-8

Extends the 20% surcharge on the Corporate Income Tax for certain filers and phases out the surcharge after the FY 16 and FY 17 Biennium.

General

44.4

75.0

9

Delays the scheduled expiration of the two lower tiers of caps on credit utilization against the Insurance Premiums Tax.

General

18.7

18.7

10

Delays the scheduled expiration of the moratorium on the issuance of new film tax credits, which may be applied to the Insurance Premiums Tax.

General

4.0

4.0

11-15

Re-establishes a municipal share of the Sales and Use Tax at a rate of 0.5%.1 Substitute for Senate Bill 1 provides for the distribution of these funds.

Municipal Revenue Sharing Account

289.8

402.7

11-17

Reduces the rate of the state's portion of the Sales and Use Tax from 6.35% to 5.85% and then to 5.35%.

General

(252.7)

(702.4)

18

Eliminates the Sales and Use Tax exemption for services related to web sites that are part of the World Wide Web.

General

45.5

57.8

18

Expands the scope of the Sales and Use Tax to include 26 additional professional services.

General

272.0

345.5

18-20

Increases the Sales and Use Tax rate for computer and data processing services from 1% to the standard rates, as adjusted pursuant to sections 11-17.

General

116.6

148.2

21

Reduces, from $300 to $100, the per-item exemption from the Sales and Use Tax during the “Sales Tax Free Week.”

General

1.0

1.0

22

Limits the use of loss carryforwards against the Corporate Income Tax to 50% of net income in any income year when computing the amount of tax due.

General

156.3

90.1

23

Lowers, from 70% to 50.01%, the maximum percentage to which tax credits may be used against the total liability under the Corporate Income Tax.

General

42.5

34.0

24

Limits the use of tax credits against a liability under the Hospital Tax to 50.01% of the total.

General

4.0

2.8

25

Reduces the biennial “Business Entity Tax” fee from $250 to $125.

General

0.0

(20.0)

26-28

Increases, from $20 to $100 per year, the annual fee imposed on pass-through entities to file an annual report with the Secretary of the State.

General

10.0

12.8

29

Diverts the scheduled transfers from the Tobacco Settlement Fund to the Tobacco Health Trust Fund during the FY 16 and FY 17 Biennium. Permanently reduces, from $12 million to $6 million, scheduled transfers in FY 18 and thereafter.

General

12.0

12.0

29

Diverts ˝ the first scheduled transfer from the Tobacco Settlement Fund to the Smart Start competitive grant account.2

General

5.0

0.0

Municipal Grants

(5.0)

0.0

30

Reduces the scheduled transfer to the Special Transportation Fund (STF) in FY 17. In addition, increases the scheduled transfer to the STF by $112 million in FY 18, $225 million in FY 19, and $400 million in FY 2020

General

0.0

25.0

Special Transportation

0.0

(25.0)

31

Diverts a portion of revenue from the Community Investment Account during the 2016-2017 Biennium.3

General

6.75

13.5

32

Transfers part of the balance of the Private Occupational Student Protection Account.4

General

2.5

0.0

33

Permanently diverts 3/5 revenue from the Municipal Video Competition Account.5

General

3.0

3.0

Municipal Grants

(3.0)

(3.0)

34-37, 110

Shifts revenue from the Palliative Marijuana Account which is generated by fees imposed for growing, distributing and use of palliative marijuana.

General

0.6

0.6

38-40

Authorizes (effective upon passage) certain entities to sell sealed containers of draught beer i.e. “growlers”, which is anticipated to increase the volume of beer consumed.

General

1.8

1.8

41-44

Authorizes keno gaming, which is anticipated to generate revenue through direct sales of the keno game in addition to having an indirect positive impact on lottery ticket sales.

General

13.6

30.0

45

Limits the applicability of the rental surcharge to people or businesses generating at least 51% of their total annual revenue from rentals.

General

(0.1)

(0.1)

46-49

Requires manufacturers and sellers of electronic nicotine delivery devices to register with the Department of Consumer Protection and annually renew their registration accompanied by fees.

General

2.0

1.6

50-75

Increases license renewal fees by $5 for various professionals licensed by the Department of Public Health (DPH). Revenue collected from the increase is to be transferred to the newly established professional assistance program account for DPH to provide grants- in-aid to program providers and medical review committees under the assistance program of health care professionals.

Professional assistance program Account

0.6

0.7

76-101

Implements mandatory combined reporting under the Corporation Business Tax.

General

38.6

23.7

102-107

Establishes an ongoing, potential revenue diversion from the General Fund to the Budget Reserve Fund based on revenue trends. More details below.

Budget Reserve “Rainy Day” Fund; General

None

Potential

108

Requires Connecticut Innovations, Inc. to issue Tax Increment Financing bonds to support development in downtown north Hartford, which would result in a state General Fund cost to service the debt in the future.

General

None

Potential Cost

109

Requires the Department of Social Services to refund a portion of the Hospital Tax.

General

0.0

(56.0)

111

Eliminates the Sales and Use Tax exemption for clothing and footwear costing less than $50.

General

136.8

142.6

Total Effective Sales Tax Rates per the Bill

 

Current

7/1/2015 – 9/30/2015

10/1/2015 - 6/30/2016

7/1/2016 thereafter

State Revenue

6.35%

6.35%

5.85%

5.35%

Municipal Revenue

0%

0%

0.5%

0.5%

Total

6.35%

6.35%

6.35%

5.85%

Partial / Full Exemptions to be Eliminated ($ - millions)

   

FY 16

FY 17

Computer & Data Processing

Eliminate the reduced rate (1.00%) of taxation

116.6

148.2

World Wide Web

Eliminate the exemption

45.5

57.8

Clothing & Footwear Costing Less than $50

Eliminate the exemption

136.8

142.6

Sales Tax Holiday

Reduce the per-item exemption from $300 to $100

1.0

1.0

TOTAL

299.9

349.6

Additional Professional Services to be Subject to Sales and Use Tax ($ - millions)

Pursuant to Section 18 of the Bill, Effective 10/1/15

FY 16

FY 17

Offices of Certified Public Accountants

44.1

56.0

Other Accounting Services

10.5

13.4

Architectural Services

16.0

20.4

Engineering Services

73.0

92.5

Drafting Services

0.5

0.6

Building Inspection Services

1.3

1.6

Geophysical Surveying and Mapping Services

1.8

2.3

Surveying and Mapping (except Geophysical) Services

3.3

4.3

Additional Professional Services (cont.) to be Subject to Sales and Use Tax ($ - millions)

Interior Design Services

4.5

5.7

Industrial Design Services

1.0

1.3

Other Specialized Design Services

0.8

1.0

Administrative Management and General Management Consulting Services

30.4

38.6

Human Resources Consulting Services

4.6

5.9

Marketing Consulting Services

9.1

11.6

Process, Physical Distribution, and Logistics Consulting Services

4.3

5.4

Other Management Consulting Services

1.0

1.3

Other Scientific and Technical Consulting Services

4.4

5.6

Direct Mail Advertising

6.6

8.4

Advertising Material Distribution Services

2.2

2.8

Marketing Research and Public Opinion Polling

9.5

12.0

Translation and Interpretation Services

1.6

2.0

Veterinary Services

17.1

21.8

All Other Professional, Scientific, and Technical Services

3.0

3.9

Other Gambling Industries

5.1

6.5

Golf Courses and Country Clubs

11.9

15.1

Dry cleaning and Laundry Services (except Coin-Operated)

4.4

5.5

TOTAL

272.0

345.5

FY

Actual Deposit into BRF $

Transfers as Calculated Under the Bill $

04

302,200,000

24,557,248

05

363,900,000

433,646,700

06

446,500,000

697,097,504

07

269,200,000

815,841,033

08

-

818,479,382

09

-

-

10

(1,278,500,000)

-

11

(103,200,000)

-

12

93,500,000

74,994,072

13

177,200,000

200,364,682

14

248,500,000

-

BRF Balance / Appropriations

Budget Reserve Fund

State Employees Retirement Fund

0 to 5%

95%

5%

5 to 10%

90%

10%

10 to 15%

85%

15%

Greater than 15%

0%

100%

CT TAXABLE INCOME

TAX RATES

Married Filing Jointly

Single

Over

But Not Over

Over

But Not Over

Current Law

Bill

$0

$20,000

$0

$10,000

3.00%

3.00%

20,000

100,000

10,000

50,000

5.00%

5.00%

100,000

200,000

50,000

100,000

5.50%

5.50%

200,000

400,000

100,000

200,000

6.00%

6.00%

400,000

500,000

200,000

250,000

6.50%

6.50%

500,000

1,000,000

250,000

500,000

6.70%

6.7%

Over $1,000,000

Over $500,000

6.99%

CT TAXABLE INCOME

TAX RATES

Head of Household

Married Filing Separately

Over

But Not Over

Over

But Not Over

Current Law

Bill

$0

$16,000

$0

$10,000

3.00%

3.00%

16,000

80,000

10,000

50,000

5.00%

5.00%

80,000

160,000

50,000

100,000

5.50%

5.50%

160,000

320,000

100,000

200,000

6.00%

6.00%

320,000

400,000

200,000

250,000

6.50%

6.50%

400,000

800,000

250,000

500,000

6.70%

6.70%

Over $800,000

Over $500,000

6.99%

 

Married Filing Jointly

Single/ Married Filing Separately

Head of Household

Starting point: (CT AGI) over

$1,000,000

$500,000

$800,000

Recapture amount

$100 per $10,000 of CT AGI over starting point

$50 per $5,000 of CT AGI over starting point

$80 per $8,000 over CT AGI starting point

Maximum additional recapture amount

$2,900

$1,450

$2,320

Tax Years

Qualifies for the Personal Credit (AGI)

Current Law

The Bill

Over

But Not Over

2014

Through 2017

$14,500

$62,500

2015 and after

2018 and after

15,000

64,500

Credit Types Claimed

Order of Applying Credits

Maximum Reduction in Tax Liability

Type 3

Not applicable

30%

Types 1& 3

1. Type 3

2. Type 1

Type 3 = 30%

Sum of two types = 55%

Types 2 & 3

1. Type 3

2. Type 2

Type 3 = 30%

Sum of two types = 70%

Types 1, 2, & 3

1. Type 3

2. Type 1

3. Type 2

Type 3 = 30%

Type 1 & 3 = 55%

Sum of all types = 70%

Type 1 & 2

1. Type 1

2. Type 2

Type 1 = 55%

Sum of two types = 70%

New Services Taxed

Certified public accountants and other accounting services

Architectural services

Engineering services

Drafting services

Building inspection services

Geophysical surveying and mapping services

Surveying and mapping services, except geophysical services

Interior design services

Industrial design services and other specialized design services

Administrative management and general management consulting services

Human resources consulting services

Marketing consulting services

Process, physical distribution, and logistics consulting services

Other management consulting services (certain management consulting services are taxable under existing law)

Other scientific and technical consulting services (The law, unchanged by the bill, specifies that environmental consulting is not taxable.)

Direct mail advertising (The law, unchanged by the bill, specifies that cooperative direct mail advertising is not taxable.)

Advertising material distribution services

Marketing research and public opinion polling

Translation and interpretation services

Veterinary services

All Other professional, scientific, and technical services having a North American Industrial Classification System code of 541990

Other gambling industries

Golf courses and country clubs

Dry cleaning and laundry services, except coin-operated services

Fiscal Year

Current Law

Bill

Difference

2017

$162.8

$137.8

($25)

2018

162.8

274.8

112

2019

162.8

417.8

255

2020 and thereafter

162.8

562.8

400

 §

License Renewal

Current Fee

Proposed Fee

50

Dentist

570

575

50

Optometrist

375

380

50

Midwife

15

20

50

Dental hygienist

100

105

50

Physician

570

575

50

Surgeon

570

575

50

Podiatrist

565

570

50

Chiropractic

565

570

50

Naturopathic

565

570

50

Registered Nurse

105

110

50

Advanced Practice Registered Nurse

125

130

50

Licensed Practical Nurse

65

70

50

Nurse Midwife

125

130

50

Physical Therapist

100

105

50

Physical Therapist Assistant

60

65

50

Physician Assistant

150

155

50, 58

Perfusionist

315

320

51

Nursing home administrator

200

205

52

Athletic trainer

200

205

53

Radiographer

100

105

54

Occupational therapist

200

205

54

Occupational therapy assistant

200

205

55

Alcohol and drug counselor

190

195

55

Certified alcohol and drug counselor

190

195

56

Licensed optician

200

205

57

Respiratory care practitioner

100

105

59

Psychologist

565

570

60

Marital and family therapist

315

320

61

Clinical social worker

190

195

61

Master social worker

190

195

62

Professional counselor

190

195

63

Veterinarian

565

570

64

Massage therapist

250

255

66

Dietician-nutritionist

100

105

67

Acupuncturist

250

255

68

Paramedic

150

155

69

Embalmer

110

115

69

Funeral director

230

235

69

Funeral services business inspection certificate

190

195

70

Electrologist

200

205

71

Audiologist

200

205

72

Hearing instrument specialist

250

255

73

Speech and language pathologist

200

205

January 15 Combined Revenue Projection

April 30 Combined Revenue Projection

Transfer Required Under the Bill

Exceeded the threshold level

Revised upward

Difference between January and April combined revenue projection must be transferred to RGF

Revised downward but still more than the threshold level for deposits

Difference between January and April combined revenue projection must be transferred from RGF to the General Fund

Revised downward to a level less than the threshold level for deposits

Difference between January combined revenue projection and the threshold level must be transferred from RGF to the General Fund

Less than or equal to the threshold level

Revised upward to a level exceeding the threshold level

Difference between April combined revenue projection and threshold level must be transferred to the RGF

Revised upward but remaining less than the threshold level

No transfer to RGF

BRF's Balance as a % of Net General Fund Appropriations

Percentage of BRF Transfer Directed to State Employee Retirement Fund

Less than 5%

5%

5% ≤ balance < 10%

10%

10% ≤ balance < 15%

15%

Yea

27

Nay

21

(04/30/2015)

TOP

1 Municipalities previously had shared in 0.1% of the Sales and Use Tax during FY 12 and FY 13 only. These funds were deposited into the Municipal Revenue Sharing Account and distributed according to statute.

2 Section 138 of PA 14-217, established an annual revenue diversion of $10 million from FY 16 to FY 25 in order to provide grants-in-aid to towns for the purpose of establishing or expanding preschool programs.

3 The Community Investment Account is a separate, non-lapsing state fund established by PA 05-3 to fund a variety of programs. As of 2/27/15 the account had a balance of $48.3 million. Annual revenues are approximately $27 million.

4 CGS 10a-22u requires each private occupational school to pay ˝ of 1% of its quarterly net tuition revenue to the State Treasurer for deposit into a special account from which students can get tuition reimbursement if a school fails. The account had a balance of approximately $6 million earlier this year.

5 CGS 16-331bb requires the State Comptroller to deposit up to $5 million each fiscal year from the Gross Earning Tax on certified video service providers (i.e., certain cable TV companies) to be distributed to municipalities for property tax relief. Funds are allocated by a ratio of total number of subscribers to competitive video service in a given town to the total number of such subscribers in the entire state. The 2014-2015 Biennial Budget eliminated this transfer entirely in each fiscal year to help balance the General Fund budget.

6 Per the bill, BRF revenue can be accessed in the event of a decrease in GF revenue greater than 2% over the prior year (for example, during a recession).

7 For the purposes of the bill “combined revenue” is equal to the sum of: 1) the corporation business tax, and 2) the estimated & final payments portion of the personal income tax.