Connecticut Seal

General Assembly

 

Raised Bill No. 1132

January Session, 2015

 

LCO No. 6123

 

*06123_______FIN*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

(FIN)

 

AN ACT CONCERNING THE ADMISSIONS TAX.

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

Section 1. Section 12-541 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(a) There is hereby imposed a tax of ten per cent of the admission charge to any place of amusement, entertainment or recreation, except that no tax shall be imposed with respect to any admission charge (1) when the admission charge is less than one dollar or, in the case of any motion picture show, when the admission charge is not more than five dollars, (2) when a daily admission charge is imposed which entitles the patron to participate in an athletic or sporting activity, (3) to any event, other than events held at the stadium facility, as defined in section 32-651, if all of the proceeds from the event inure exclusively to an entity which is exempt from federal income tax under the Internal Revenue Code, provided such entity actively engages in and assumes the financial risk associated with the presentation of such event, (4) to any event, other than events held at the stadium facility, as defined in section 32-651, which, in the opinion of the commissioner, is conducted primarily to raise funds for an entity which is exempt from federal income tax under the Internal Revenue Code, provided the commissioner is satisfied that the net profit which inures to such entity from such event will exceed the amount of the admissions tax which, but for this subdivision, would be imposed upon the person making such charge to such event, (5) other than for events held at the stadium facility, as defined in section 32-651, paid by centers of service for elderly persons, as described in subdivision (d) of section 17a-310, (6) to any production featuring live performances by actors or musicians presented at Gateway's Candlewood Playhouse, Ocean Beach Park or any nonprofit theater or playhouse in the state, provided such theater or playhouse possesses evidence confirming exemption from federal tax under Section 501 of the Internal Revenue Code, (7) to any carnival or amusement ride, (8) to any interscholastic athletic event held at the stadium facility, as defined in section 32-651, (9) if the admission charge would have been subject to tax under the provisions of section 12-542 of the general statutes, revision of 1958, revised to January 1, 1999, [or] (10) to any event at (A) the XL Center in Hartford, or (B) the Webster Bank Arena in Bridgeport, or (11) to any athletic event presented by a member team of the Atlantic League of Professional Baseball at the Ballpark at Harbor Yard in Bridgeport. On and after July 1, 2000, the tax imposed under this section on any motion picture show shall be eight per cent of the admission charge and, on and after July 1, 2001, the tax imposed on any such motion picture show shall be six per cent of such charge.

(b) The tax shall be imposed upon the person making such charge and reimbursement for the tax shall be collected by such person from the purchase. Such reimbursement, termed "tax", shall be paid by the purchaser to the person making the admission charge. Such tax, when added to the admission charge, shall be a debt from the purchaser to the person making the admission charge and shall be recoverable at law. The amount of tax reimbursement, when so collected, shall be deemed to be a special fund in trust for the state of Connecticut.

Sec. 2. (NEW) (Effective July 1, 2015) The State Treasurer shall calculate the amount of tax imposed pursuant to section 12-541 of the general statutes, as amended by this act, on the admission charge to events held at any stadium in Hartford constructed primarily for the purpose of hosting home games of a class AA minor league baseball team. On and after the date such admission charge is payable under section 12-541 of the general statutes, as amended by this act, the State Treasurer shall make such calculation on at least a quarterly basis and shall transfer moneys in the amount of such calculation from the General Fund to the Hartford minor league baseball stadium account established pursuant to section 3 of this act.

Sec. 3. (NEW) (Effective July 1, 2015) There is established an account to be known as the "Hartford minor league baseball stadium account" which shall be a separate, nonlapsing account within the General Fund. The account may contain any moneys required by law to be deposited in the account. The moneys in the account shall be allocated by the State Treasurer to the city of Hartford or any authority designated by the city of Hartford for the purpose of reducing indebtedness incurred to build a stadium in Hartford for the purpose of hosting home games of a class AA minor league baseball team. The State Treasurer shall enter into a memorandum of understanding with the city of Hartford for the distribution and use of such moneys.

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

Section 1

July 1, 2015

12-541

Sec. 2

July 1, 2015

New section

Sec. 3

July 1, 2015

New section

Statement of Purpose:

To: (1) Exempt professional baseball played at the Ballpark at Harbor Yard in Bridgeport from the state admissions tax, and (2) provide that admissions tax revenue from events at any stadium built to host class AA minor league baseball events in Hartford be allocated to reduce indebtedness incurred to build such stadium.

[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.]