OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5433

AN ACT CONCERNING MINOR AND TECHNICAL CHANGES TO THE TAX AND RELATED STATUTES.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Department of Revenue Services

GF - Revenue Loss

See Below

See Below

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill makes a number of technical and clarifying changes that do not result in any fiscal impact to the state or municipalities.

The bill also extends a pension and annuity deduction under the Personal Income Tax, the impact of which is detailed below.

The Out Years

Section 27 makes permanent the 100% income tax deduction for pension and annuity income for qualifying taxpayers currently scheduled to expire in 2025. This results in an annualized revenue loss of $57.5 million in FY 26 and $115 million in FY 27 and annually thereafter.