OLR Bill Analysis

sSB 734 (File 744, as amended by Senate "B")*

AN ACT ESTABLISHING A TAX DEDUCTION FOR CONTRIBUTIONS TO A CITIZENS IN NEED ACCOUNT.

SUMMARY

This bill requires the Finance Committee, in consultation with the revenue services commissioner, to study all existing personal income tax deductions. The study must include analyses of which deductions are (1) set at the most effective rate and (2) used by the largest share of taxpayers. It must also include an analysis of how the deductions influence taxpayer behavior. The committee must report its findings to the governor and legislature by December 31, 2018.

*Senate Amendment “B” replaces the original file, which authorized a 200% personal income tax deduction for contributions to a General Fund account established to help residents whose social services benefits were cut because of budget constraints.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

Finance, Revenue and Bonding Committee

Joint Favorable

Yea

38

Nay

11

(04/27/2017)