Bill Text: CT HB06414 | 2011 | General Assembly | Introduced

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Bill Title: An Act Returning A Portion Of The Sales Tax For Regionalism Initiatives.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2011-02-17 - Referred to Joint Committee on Planning and Development [HB06414 Detail]

Download: Connecticut-2011-HB06414-Introduced.html

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General Assembly		Raised Bill No. 6414
January Session, 2011		LCO No. 3473
		*03473_______PD_*
Referred to Committee on Planning and Development
Introduced by:
(PD)

AN ACT RETURNING A PORTION OF THE SALES TAX FOR REGIONALISM INITIATIVES.

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

Section 1. Subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011, and applicable to sales occurring on or after said date):

(1) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and one-quarter per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or from the rendering of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate of six and one-quarter per cent, (A) at a rate of twelve per cent with respect to each transfer of occupancy, from the total amount of rent received for such occupancy of any room or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive calendar days, (B) with respect to the sale of a motor vehicle to any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse thereof, at a rate of four and one-half per cent of the gross receipts of any retailer from such sales, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574, (C) (i) with respect to the sales of computer and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent, on or after July 1, 2001, at the rate of one per cent, (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax, (D) with respect to the sales of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax, (E) with respect to patient care services for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax. The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate which represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date of the new rate and delivery is made within ninety days after the effective date of the new rate. For the purposes of payment of the tax imposed under this section, any retailer of services taxable under subparagraph (I) of subdivision (2) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered.

Sec. 2. Subdivision (3) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):

(3) For the purpose of adding and collecting the tax imposed by this chapter, or an amount equal as nearly as possible or practicable to the average equivalent thereof, by the retailer from the consumer the following bracket system shall be in force and effect as follows:

T1	Amount of Sale	Amount of Tax
T2	$0.00 to [$0.08] $0.07 inclusive	No Tax
T3	[.09 to .24] 0.08 to 0.23 inclusive	1 cent
T4	[.25 to .41] .24 to .39 inclusive	2 cents
T5	[.42 to .58] .40 to .55 inclusive	3 cents
T6	[.59 to .74] .56 to .71 inclusive	4 cents
T7	[.75 to .91] .72 to .87 inclusive	5 cents
T8	[.92 to 1.08] .88 to 1.03 inclusive	6 cents
T9	1.04 beyond	6.25 cents

On all sales above [$1.08] $1.04, the tax shall be computed at the rate of six and one-quarter per cent.

Sec. 3. Subdivision (1) of section 12-411 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):

(1) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchased from any retailer for storage, acceptance, consumption or any other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either within or without this state, for storage, acceptance, consumption or any other use by such person in this state, to be measured by the sales price of materials, at the rate of six and one-quarter per cent of the sales price of such property or services, except, in lieu of said rate of six and one-quarter per cent, (A) at a rate of twelve per cent of the rent paid for occupancy of any room or rooms in a hotel or lodging house for the first period of not exceeding thirty consecutive calendar days, (B) with respect to the storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse of such individual at a rate of four and one-half per cent of the sales price of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574, (C) with respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax, (D) (i) with respect to the acceptance or receipt in this state of computer and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent of such services, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent of such services, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent of such services, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent of such services, on and after July 1, 2001, at the rate of one per cent of such services, and (ii) with respect to the acceptance or receipt in this state of Internet access services, on or after July 1, 2001, such services shall be exempt from tax, (E) with respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax.

Sec. 4. Subdivision (3) of section 12-414 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011, and applicable to sales occurring on or after said date):

(3) For purposes of the sales tax the return shall show the gross receipts of the seller during the preceding reporting period. For purposes of the use tax, in case of a return filed by a retailer, the return shall show the total sales price of the services or property sold by him, the storage, acceptance, consumption or other use of which became subject to the use tax during the preceding reporting period; in case of a return filed by a purchaser, the return shall show the total sales price of the service or property purchased by him, the storage, acceptance, consumption or other use of which became subject to the use tax during the preceding reporting period. The return shall also show the amount of the taxes for the period covered by the return in such manner as the commissioner may require and such other information as the commissioner deems necessary for the proper administration of this chapter. The Commissioner of Revenue Services is authorized in his discretion, for purposes of expediency, to permit returns to be filed in an alternative form wherein the person filing the return may elect to report his gross receipts, including the tax reimbursement to be collected as provided for herein, as a part of such gross receipts or to report his gross receipts exclusive of the tax collected in such cases where the gross receipts from sales have been segregated from tax collections. In the case of the former, ninety-four and [three-tenths] one-tenths per cent of such gross income may be considered to be the gross receipts from sales exclusive of the taxes collected thereon.

Sec. 5. (NEW) (Effective October 1, 2011) (a) As used in this section: (1) "Municipality" means any town, city, borough, consolidated town and city or consolidated town and borough; and (2) "population" for each municipality means that enumerated in the most recent federal decennial census of population or that enumerated in the most recent current population report series issued by the United States Department of Commerce, Bureau of the Census available on January first of the fiscal year prior to the fiscal year in which payment is to be made pursuant to subsection (b) of this section, whichever is most recent.

(b) The Commissioner of Revenue Services shall segregate one-quarter of one per cent of the taxes collected from the sales and use taxes imposed pursuant to chapter 219 of the general statutes. The commissioner shall return such taxes collected pro rata to each regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive, of the general statutes, on the basis of the ratio of the population of the municipalities within such regional council of governments to the population of the state. Moneys received by a regional council of governments under this section shall be used to promote regionalism initiatives, including, but not limited to, regional economic development and cooperative programs and agreements.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2011, and applicable to sales occurring on or after said date	12-408(1)
Sec. 2	October 1, 2011	12-408(3)
Sec. 3	October 1, 2011	12-411(1)
Sec. 4	October 1, 2011, and applicable to sales occurring on or after said date	12-414(3)
Sec. 5	October 1, 2011	New section

Statement of Purpose:

To promote regionalism initiatives.

[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.]