SB 877 — AN ACT CONCERNING REVENUE ITEMS TO IMPLEMENT THE BIENNIAL BUDGET.

(C) For taxable years commencing on or after January 1, 2001, but prior to January 1, 2004, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-four thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(D) For taxable years commencing on or after January 1, 2004, but prior to January 1, 2007, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-five thousand dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(E) For taxable years commencing on or after January 1, 2007, but prior to January 1, 2008, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-five LCO No.

4566 5 of 138 Governor's Bill No.877 thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(F) For taxable years commencing on or after January 1, 2008, but prior to January 1, 2011, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-six thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.] [(G)] (c) (1) (A) For taxable years commencing on or after January 1, 2011, but prior to January 1, 2013, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-six thousand five hundred dollars, the amount of the credit shall be reduced by fifteen per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

[(H)] (B) For taxable years commencing on or after January 1, 2013, but prior to January 1, 2014, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds sixty thousand five hundred dollars, the amount of the credit shall be reduced by fifteen per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

[(I)] (C) For taxable years commencing on or after January 1, 2014, but prior to January 1, 2016, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried LCO No.

4566 6 of 138 Governor's Bill No.877 individual whose Connecticut adjusted gross income exceeds forty- seven thousand five hundred dollars, the amount of the credit shall be reduced by fifteen per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

[(J)] (D) For taxable years commencing on or after January 1, 2016, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds forty-nine thousand five hundred dollars, the amount of the credit shall be reduced by fifteen per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(2) In the case of any such taxpayer who files under the federal income tax for such taxable year as a married individual filing separately whose Connecticut adjusted gross income exceeds thirty- five thousand two hundred fifty dollars, the amount of the credit shall be reduced by fifteen per cent for each five thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(3) In the case of a taxpayer who files under the federal income tax for such taxable year as a head of household whose Connecticut adjusted gross income exceeds fifty-four thousand five hundred dollars, the amount of the credit shall be reduced by fifteen per cent for each ten thousand dollars or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(4) In the case of a taxpayer who files under federal income tax for such taxable year as married individuals filing jointly whose Connecticut adjusted gross income exceeds seventy thousand five hundred dollars, the amount of the credit shall be reduced by fifteen per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

LCO No.

4566 7 of 138 Governor's Bill No.877 (d) The credit allowed under the provisions of this section shall be available for any person leasing a motor vehicle pursuant to a written agreement for a term of more than one year.

Such lessee shall be entitled to the credit in accordance with the provisions of this section for the taxes actually paid by the lessor or lessee on such leased vehicle, provided the lessee was lawfully in possession of the motor vehicle at such time when the taxes first became due.

The lessor shall provide the lessee with documentation establishing, to the satisfaction of the Commissioner of Revenue Services, the amount of property tax paid during the time period in which the lessee was lawfully in possession of the motor vehicle.

The lessor of the motor vehicle shall not be entitled to a credit under the provisions of this section.

(e) The credit may only be used to reduce [such] a qualifying taxpayer's tax liability for the year for which such credit is applicable and shall not be used to reduce such tax liability to less than zero.

(f) The amount of tax due pursuant to sections 12-705 and 12-722 shall be calculated without regard to this credit.

(g) For the purposes of this section:

(1) "Property tax" means the amount of property tax, exclusive of any interest, fees or charges thereon, for which a taxpayer is liable, or in the case of any [husband and wife] persons who file a return under the federal income tax for such taxable year as married individuals filing a joint return, for which [the husband or wife] either or both spouses are liable, to a Connecticut political subdivision on the taxpayer's primary residence or motor vehicles;

(2) "motor vehicle" means a motor vehicle, as defined in section 14-1, [which] that is privately owned or leased;

and (3) property tax first becomes due, if due and payable in a single installment, on the date designated by the legislative body of the municipality as the date on which such installment shall be due and payable and, if due and payable in two or more installments, on the date designated by the legislative body of the municipality as the date on which such installment shall be due and payable or, at the election LCO No.

4566 8 of 138 Governor's Bill No.877 of the taxpayer, on the date designated by the legislative body of the municipality as the date on which any earlier installment of such tax shall be due and payable.

Sec.

3.

(v) To the extent any additional allowance for depreciation under Section 168(k) of the Internal Revenue Code for property placed in service after September 27, 2017, was added to federal adjusted gross income pursuant to subparagraph (A)(ix) of this subdivision in computing Connecticut adjusted gross income, twenty-five per cent of such additional allowance for depreciation in each of the four succeedingLCO taxableNo. years;

(vi)4566 To9 the extent properly includable in gross income for federal LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-002 of 104138 R01-SB.docxGovernor's }Bill SubstituteNo.877 Billsucceeding No.taxable years;

877(vi) To the extent properly includable in gross income for federal income tax purposes, any interest income from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut;

(x) (I) For taxable[taxable years commencing prior to January 1, 2019, forfor] a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or as a married individual filing separately whose federal adjusted gross income for LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-003 of 104 R01-SB.docx } Substitute Bill No.

8774566 10 of 138 Governor's Bill No.877 unmarried individual whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than fifty thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than sixty thousand dollars or a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is less than sixty thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes;

and (II) For taxable[taxable years commencing prior to January 1, 2019, forfor] a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or as a married individual filing separately whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is sixty thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is sixty thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code;

(III)[(III) For the taxable year commencing January 1, 2019, and each taxable year thereafter, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-004 of 104 R01-SB.docx } Substitute Bill No.

8774566 11 of 138 Governor's Bill No.877 thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars or a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, an amount equal to the Social Security benefits includable for federal income tax purposes;

and (IV) For the taxable year commencing January 1, 2019, and each taxable year thereafter, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is seventy-five thousand dollars or more, or as a married individual filing separately whose federal adjusted gross income for such taxable year is seventy-five thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is one hundred thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is one hundred thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code;Code;] (xi) To the extent properly includable in gross income for federal income tax purposes, any amount rebated to a taxpayer pursuant to section 12-746;

(xi)(xii) To the extent properly includable in the gross income for federal income tax purposes,purposes anyof amounta rebateddesignated beneficiary, any distribution to asuch taxpayerbeneficiary pursuantfrom toany sectionqualified 12-746;state tuition program, as defined in Section 529(b) of the Internal Revenue Code, LCO No.

(xii)4566 To12 the extent properly includable in the gross income for federal income tax purposes of a138 designatedGovernor's beneficiary,Bill anyNo.877 distribution to such beneficiary from any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state;

(xiii) To the extent allowable under section 12-701a, contributions to LCOaccounts {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-005established pursuant to any qualified state tuition program, as defined in Section 529(b) of 104the R01-SB.docxInternal }Revenue SubstituteCode, Billestablished No.and maintained by this state or any official, agency or instrumentality of the state;

877 accounts established pursuant to any qualified state tuition program, as defined in Section 529(b) of the Internal Revenue Code, established and maintained by this state or any official, agency or instrumentality of the state;

(xviii) To the extent properly includable in gross income for federal income tax purposes for the taxable year, any income from the discharge of indebtedness in connection with any reacquisition, after December 31, 2008, and before January 1, 2011, of an applicable debt instrument or instruments, as those terms are defined in Section 108 of the Internal Revenue Code, as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009, to the extent any LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-006 of 104 R01-SB.docx } Substitute Bill No.

8774566 13 of 138 Governor's Bill No.877 December 31, 2008, and before January 1, 2011, of an applicable debt instrument or instruments, as those terms are defined in Section 108 of the Internal Revenue Code, as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009, to the extent any such income was added to federal adjusted gross income pursuant to subparagraph (A)(xi) of this subdivision in computing Connecticut adjusted gross income for a preceding taxable year;

(xx) To the extent properly includable in gross income for federal income tax purposes, (I) for the taxable year commencing January 1, 2015, ten per cent of the income received from the state teachers' retirement system, and (II) for the taxable years commencing on and after January 1, 2016, [January 1, 2017, and January 1, 2018]2018,] totwenty- Januaryfive 1, 2020, inclusive, twenty-five per cent of the income received from the state teachers' retirement system,system; and (III) for the taxable year commencing January 1, [2019] 2021, and each taxable year thereafter, fifty per cent of the income received from the state teachers' retirement system or the percentage, if applicable, pursuant to clause (xxi) of this subparagraph;

[, and (III) for the taxable year commencing January 1, 2019, and each taxable year thereafter, fifty per cent of the income received from the state teachers' retirement system or the percentage, if applicable, pursuant to clause (xxi) of this subparagraph;] [(xxi) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this subparagraph and retirement pay under clause (xvii) of this subparagraph, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a head of household whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, (I) for the taxable year commencing January 1, 2019, fourteen per cent of any pension or annuity income, (II) for the taxable year commencing January 1, 2020, twenty-eight per cent of any pension or annuity LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-007 of 104 R01-SB.docx } Substitute Bill No.

8774566 14 of 138 Governor's Bill No.877 married individuals filing jointly whose federal adjusted gross income for such taxable year is less than one hundred thousand dollars, (I) for the taxable year commencing January 1, 2019, fourteen per cent of any pension or annuity income, (II) for the taxable year commencing January 1, 2020, twenty-eight per cent of any pension or annuity income, (III) for the taxable year commencing January 1, 2021, forty- two per cent of any pension or annuity income, (IV) for the taxable year commencing January 1, 2022, fifty-six per cent of any pension or annuity income, (V) for the taxable year commencing January 1, 2023, seventy per cent of any pension or annuity income, (VI) for the taxable year commencing January 1, 2024, eighty-four per cent of any pension or annuity income, and (VII) for the taxable year commencing January 1, 2025, and each taxable year thereafter, any pension or annuity income;income;] [(xxii)] (xxi) The amount of lost wages and medical, travel and housing expenses, not to exceed ten thousand dollars in the aggregate, incurred by a taxpayer during the taxable year in connection with the donation to another person of an organ for organ transplantation occurring on or after January 1, 2017;

[(xxiii)] (xxii) TheTo amountthe ofextent lostproperly wagesincludable andin medical,gross travelincome andfor housingfederal expenses,income nottax topurposes, exceed ten thousand dollars in the aggregate,amount incurredof byany afinancial taxpayerassistance duringreceived from the taxableCrumbling yearFoundations inAssistance connectionFund withor thepaid donation to anotheror personon behalf of anthe organowner forof organa transplantationresidential occurringbuilding onpursuant orto aftersections January8-442 1,and 2017;8-443;

[, and] [(xxiv)] (xxiii) To the extent properly includable in gross income for federal income tax purposes, the amount ofcalculated anypursuant financialto assistancesubsection received(b) fromof thesection Crumbling12-704g Foundationsfor Assistanceincome Fundreceived orby paida togeneral orpartner onof behalfa ofventure thecapital ownerfund, ofas adefined residentialin building17 pursuantCFR to275.203(l)-1, sectionsas 8-442amended andfrom 8-443;time to time;

[,and and][(xxv)] (xxiv) To the extent properlyany includableportion in gross income for federal income tax purposes, the amount calculated pursuant to subsection (b) of sectiona 12-704gdeduction forunder incomeSection received179 by a general partner of athe ventureInternal capitalRevenue fund,Code aswas definedadded into 17federal CFRadjusted 275.203(l)-1,gross asLCO amendedNo. from time to time;

and4566 (xxv)15 To the extent any portion of a138 deductionGovernor's underBill SectionNo.877 179 of the Internal Revenue Code was added to federal adjusted gross income pursuant to subparagraph (A)(xiv) of this subdivision in computing Connecticut adjusted gross income, twenty-five per cent of such disallowed portion of the deduction in each of the four succeeding taxable years.

3.

(NEW) (Effective January 1, 2020) (a) For taxable years LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008 of 104 R01-SB.docx } Substitute Bill No.

877 commencing on or after January 1, 2020, there is imposed a surcharge on a taxpayer, excluding a trust or an estate, whose Connecticut adjusted gross income is equal to or greater than the threshold amount specified in section 12-700 of the general statutes for imposition of the highest marginal rate on such taxpayer.

Such surcharge shall be at the rate of two per cent of the net gain from the sale or exchange of capital assets, as determined for federal income tax purposes, that are includable in such taxpayer's Connecticut adjusted gross income and are derived from or connected with sources within this state.

The surcharge shall be in addition to any other tax, fee or surcharge for which the taxpayer is liable.

(b) Each taxpayer subject to the surcharge shall file a return, in accordance with the provisions of subsection (a) of section 12-719 of the general statutes, with the Commissioner of Revenue Services in such form and containing such information as the commissioner may prescribe.

Such return shall accurately set forth the amount of the net gain calculated pursuant to subsection (a) of this section for the taxable year and the amount of the taxpayer's surcharge liability for such year.

A person required to file a return under this section shall, without assessment, notice or demand, pay any surcharge due thereon to the commissioner on or before the date specified in subsection (a) of section 12-719 of the general statutes, determined without regard to any extension of time for filing the return.

(c) If any person fails to pay the amount of the surcharge reported due on a return under this section within the time specified, there shall be imposed a penalty equal to ten per cent of such amount due and unpaid, or fifty dollars, whichever is greater.

Such amount shall bear interest at the rate of one per cent per month or fraction thereof, from the due date of such surcharge until the date of payment.

Subject to the provisions of section 12-3a of the general statutes, the commissioner may waive all or part of the penalties provided under this section when it is proven to the commissioner's satisfaction that the failure to pay any surcharge was due to reasonable cause and was not LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-009 of 104 R01-SB.docx } Substitute Bill No.

877 intentional or due to neglect.

(d) The provisions of sections 12-550 to 12-554, inclusive, and sections 12-555a, 12-723, 12-728, 12-729 and 12-733 of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections had been incorporated in full into this section and had expressly referred to the surcharge under this section, except to the extent that any provision is inconsistent with a provision in this section.

(e) The commissioner may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section.

(f) At the close of each fiscal year commencing with the fiscal year ending June 30, 2020, the Comptroller is authorized to record as revenue for such fiscal year the amount of the surcharge imposed under this section that is received by the commissioner not later than five business days from the last day of July immediately following the end of such fiscal year.

Sec.

Section 12-701 of the general statutes is amended by adding subsection (d) as follows (Effective from passage):

(NEW) (d) The provisions of section 12-722 shall not apply to any additional tax due as a result of the changes made to subparagraph (B) of subdivision (20) of subsection (a) of this section pursuant to section 3 of this act for any taxable year commencing prior to the effective date of section 3 of this act.

Sec.

5.

Subdivision (8) of subsection (b) of section 12-214 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to income years commencing on or after January 1, 2019):

(8) (A) With respect to income years commencing on or after January 1, 2018, [and prior to January 1, 2019,] any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, for such income year, except when the tax so calculated is equal to two hundred fifty dollars, an additional tax in an amount equal to ten per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax.

The additional amount of tax determined under this subsection for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

(B) Any company whose gross income for the income year was less than one hundred million dollars shall not be subject to the additional tax imposed under subparagraph (A) of this subdivision.

This exception shall not apply to taxable members of a combined group that files a combined unitary tax return.

LCO No.

4566 16 of 138 Governor's Bill No.877 Sec.

6.

Section 12-214 of the general statutes is amended by adding subsection (d) as follows (Effective from passage):

(NEW) (d) The provisions of section 12-242d shall not apply to any additional tax due as a result of the changes made to subdivision (8) of subsection (b) of this section pursuant to section 5 of this act for any income year commencing prior to the effective date of section 5 of this act.

Sec.

7.

Subsection (b) of section 12-284b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2019):

(b) Each limited liability company, limited liability partnership, limited partnership and S corporation shall be liable for the tax imposed by this section for each taxable year or portion thereof that such company, partnership or corporation is an affected business entity.

For taxable years commencing prior to January 1, 2013, each affected business entity shall annually, on or before the fifteenth day of the fourth month following the close of its taxable year, pay to the Commissioner of Revenue Services a tax in the amount of two hundred fifty dollars.

For taxable years commencing on or after January 1, 2013, but prior to January 1, 2019, each affected business entity shall, on or before the fifteenth day of the fourth month following the close of every other taxable year, pay to the Commissioner of Revenue Services a tax in the amount of two hundred fifty dollars.

Sec.

8.

Subdivision (2) of subsection (e) of section 12-217jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2019):

(2) Notwithstanding the provisions of subdivision (1) of this subsection, any entity that is not subject to tax under this chapter or LCO No.

4566 17 of 138 Governor's Bill No.877 chapter 207 shall not be subject to the limitations on the transfer of credits provided in subparagraphs (B) and (C) of said subdivision (1), provided such entity owns not less than fifty per cent, directly or indirectly, of a business entity, [subject to tax under] as defined in section 12-284b, as amended by this act.

Sec.

9.

5.10.

LCO(a) {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0010(1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at a rate of 104the R01-SB.docxtaxable }gifts Substitutemade Billby No.the donor during the calendar year set forth in the following schedule:

877T1 (a)Amount (1)of WithTaxable respectGifts toRate calendarof yearsTax commencingT2 priorNot toover January$25,000 1,1% 2001,T3 theOver tax$25,000 imposed$250, byplus section2% 12-640,of asthe amendedexcess byT4 thisbut act,not forover the$50,000 calendarover year$25,000 shallT5 beOver at$50,000 a$750, rateplus 3% of the taxableexcess giftsT6 madebut bynot theover donor$75,000 duringover the$50,000 calendarT7 yearOver set$75,000 forth$1,500, inplus 4% of the followingexcess schedule:T8 but not over $100,000 over $75,000 LCO No.

T14566 Amount18 of Taxable138 GiftsGovernor's RateBill ofNo.877 Tax T2 Not over $25,000 1% T3 Over $25,000 $250, plus 2% of the excess T4 but not over $50,000 over $25,000 T5 Over $50,000 $750, plus 3% of the excess T6 but not over $75,000 over $50,000 T7 Over $75,000 $1,500, plus 4% of the excess T8 but not over $100,000 over $75,000 T9 Over $100,000 $2,500, plus 5% of the excess T10 but not over $200,000 over $100,000 T11 Over $200,000 $7,500, plus 6% of the excess T12 over $200,000 (2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640, as amended by this act, for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

T13 Amount of Taxable Gifts Rate of Tax T14 Over $25,000 $250, plus 2% of the excess T15 but not over $50,000 over $25,000 T16 Over $50,000 $750, plus 3% of the excess T17 but not over $75,000 over $50,000 T18 Over $75,000 $1,500, plus 4% of the excess T19 but not over $100,000 over $75,000 T20 Over $100,000 $2,500, plus 5% of the excess T21 but not over $675,000 over $100,000 T22 Over $675,000 $31,250, plus 6% of the excess LCOT23 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008711over $675,000 (3) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of 104all R01-SB.docxConnecticut }taxable Substitutegifts Billmade No.by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

877LCO T23No. over $675,000 (3) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

4566 19 of 138 Governor's Bill No.877 T24 Amount of Taxable Gifts Rate of Tax T25 Not over $2,000,000 None T26 Over $2,000,000 T27 but not over $2,100,000 5.085% of the excess over $0 T28 Over $2,100,000 $106,800 plus 8% of the excess T29 but not over $2,600,000 over $2,100,000 T30 Over $2,600,000 $146,800 plus 8.8% of the excess T31 but not over $3,100,000 over $2,600,000 T32 Over $3,100,000 $190,800 plus 9.6% of the excess T33 but not over $3,600,000 over $3,100,000 T34 Over $3,600,000 $238,800 plus 10.4% of the excess T35 but not over $4,100,000 over $3,600,000 T36 Over $4,100,000 $290,800 plus 11.2% of the excess T37 but not over $5,100,000 over $4,100,000 T38 Over $5,100,000 $402,800 plus 12% of the excess T39 but not over $6,100,000 over $5,100,000 T40 Over $6,100,000 $522,800 plus 12.8% of the excess T41 but not over $7,100,000 over $6,100,000 T42 Over $7,100,000 $650,800 plus 13.6% of the excess T43 but not over $8,100,000 over $7,100,000 T44 Over $8,100,000 $786,800 plus 14.4% of the excess LCOT45 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008712but not over $9,100,000 over $8,100,000 T46 Over $9,100,000 $930,800 plus 15.2% of 104the R01-SB.docxexcess }T47 Substitutebut Billnot over $10,100,000 over $9,100,000 T48 Over $10,100,000 $1,082,800 plus 16% of the excess T49 over $10,100,000 (4) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following LCO No.

8774566 T4520 but not over $9,100,000 over $8,100,000 T46 Over $9,100,000 $930,800 plus 15.2% of the138 excessGovernor's T47Bill butNo.877 not over $10,100,000 over $9,100,000 T48 Over $10,100,000 $1,082,800 plus 16% of the excess T49 over $10,100,000 (4) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T50 Amount of Taxable Gifts Rate of Tax T51 Not over $3,500,000 None T52 Over $3,500,000 7.2% of the excess T53 but not over $3,600,000 over $3,500,000 T54 Over $3,600,000 $7,200 plus 7.8% of the excess T55 but not over $4,100,000 over $3,600,000 T56 Over $4,100,000 $46,200 plus 8.4% of the excess T57 but not over $5,100,000 over $4,100,000 T58 Over $5,100,000 $130,200 plus 9.0% of the excess T59 but not over $6,100,000 over $5,100,000 T60 Over $6,100,000 $220,200 plus 9.6% of the excess T61 but not over $7,100,000 over $6,100,000 T62 Over $7,100,000 $316,200 plus 10.2% of the excess T63 but not over $8,100,000 over $7,100,000 T64 Over $8,100,000 $418,200 plus 10.8% of the excess T65 but not over $9,100,000 over $8,100,000 LCOT66 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008713Over $9,100,000 $526,200 plus 11.4% of 104the R01-SB.docxexcess }T67 Substitutebut Billnot over $10,100,000 over $9,100,000 T68 Over $10,100,000 $640,200 plus 12% of the excess T69 over $10,100,000 (5) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2011, but prior to January 1, 2018, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously LCO No.

8774566 T6621 Over $9,100,000 $526,200 plus 11.4% of the138 excessGovernor's T67Bill butNo.877 not over $10,100,000 over $9,100,000 T68 Over $10,100,000 $640,200 plus 12% of the excess T69 over $10,100,000 (5) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2011, but prior to January 1, 2018, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) or (4) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T70 Amount of Taxable Gifts Rate of Tax T70 T71 Not over $2,000,000 None T72 Over $2,000,000 7.2% of the excess T73 but not over $3,600,000 over $2,000,000 T74 Over $3,600,000 $115,200 plus 7.8% of the excess T75 but not over $4,100,000 over $3,600,000 T76 Over $4,100,000 $154,200 plus 8.4% of the excess T77 but not over $5,100,000 over $4,100,000 T78 Over $5,100,000 $238,200 plus 9.0% of the excess T79 but not over $6,100,000 over $5,100,000 T80 Over $6,100,000 $328,200 plus 9.6% of the excess T81 but not over $7,100,000 over $6,100,000 T82 Over $7,100,000 $424,200 plus 10.2% of the excess T83 but not over $8,100,000 over $7,100,000 T84 Over $8,100,000 $526,200 plus 10.8% of the excess T85 but not over $9,100,000 over $8,100,000 T86 Over $9,100,000 $634,200 plus 11.4% of the excess LCOT87 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008714but not over $10,100,000 over $9,100,000 T88 Over $10,100,000 $748,200 plus 12% of 104the R01-SB.docxexcess }T89 Substituteover Bill$10,100,000 (6) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, but prior to January 1, 2019, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to LCO No.

8774566 T8722 but not over $10,100,000 over $9,100,000 T88 Over $10,100,000 $748,200 plus 12% of the138 excessGovernor's T89Bill overNo.877 $10,100,000 (6) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2018, but prior to January 1, 2019, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4) or (5) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T90 Amount of Taxable Gifts Rate of Tax T90 T91 Not over $2,600,000 None T92 Over $2,600,000 7.2% of the excess T93 but not over $3,600,000 over $2,600,000 T94 Over $3,600,000 $72,000 plus 7.8% of the excess T95 but not over $4,100,000 over $3,600,000 T96 Over $4,100,000 $111,000 plus 8.4% of the excess T97 but not over $5,100,000 over $4,100,000 T98 Over $5,100,000 $195,000 plus 10% of the excess T99 but not over $6,100,000 over $5,100,000 T100 Over $6,100,000 $295,000 plus 10.4% of the excess T101 but not over $7,100,000 over $6,100,000 T102 Over $7,100,000 $399,000 plus 10.8% of the excess T103 but not over $8,100,000 over $7,100,000 T104 Over $8,100,000 $507,000 plus 11.2% of the excess T105 but not over $9,100,000 over $8,100,000 T106 Over $9,100,000 $619,000 plus 11.6% of the excess T107 but not over $10,100,000 over $9,100,000 LCOT108 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008715Over $10,100,000 $735,000 plus 12% of 104the R01-SB.docxexcess }T109 Substituteover Bill$10,100,000 [(7) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2019, but prior to January 1, 2020, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5) or (6) of this subsection, provided such credit shall not exceed the amount of tax LCO No.

8774566 T10823 Over $10,100,000 $735,000 plus 12% of the138 excessGovernor's T109Bill overNo.877 $10,100,000 [(7) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2019, but prior to January 1, 2020, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5) or (6) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T110 Amount of Taxable Gifts Rate of Tax T110 T111 Not over $3,600,000 None T112 Over $3,600,000 7.8% of the excess T113 but not over $4,100,000 over $3,600,000 T114 Over $4,100,000 $39,000 plus 8.4% of the excess T115 but not over $5,100,000 over $4,100,000 T116 Over $5,100,000 $123,000 plus 10% of the excess T117 but not over $6,100,000 over $5,100,000 T118 Over $6,100,000 $223,000 plus 10.4% of the excess T119 but not over $7,100,000 over $6,100,000 T120 Over $7,100,000 $327,000 plus 10.8% of the excess T121 but not over $8,100,000 over $7,100,000 T122 Over $8,100,000 $435,000 plus 11.2% of the excess T123 but not over $9,100,000 over $8,100,000 T124 Over $9,100,000 $547,000 plus 11.6% of the excess T125 but not over $10,100,000 over $9,100,000 T126 Over $10,100,000 $663,000 plus 12% of the excess T127 over $10,100,000 LCO(8) {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008716With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2020, but prior to January 1, 2021, including the aggregate amount of 104all R01-SB.docxConnecticut }taxable Substitutegifts Billmade No.by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5), (6) or (7) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

877T128 (8)Amount With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2020, but prior to January 1, 2021, including the aggregate amount of allTaxable ConnecticutGifts taxableRate gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5), (6) or (7) of thisTax subsection,LCO providedNo. such credit shall not exceed the amount of tax imposed by this section:

T1284566 Amount24 of Taxable138 GiftsGovernor's RateBill ofNo.877 Tax T129 Not over $5,100,000 None T130 Over $5,100,000 10% of the excess T131 but not over $6,100,000 over $5,100,000 T132 Over $6,100,000 $100,000 plus 10.4% of the excess T133 but not over $7,100,000 over $6,100,000 T134 Over $7,100,000 $204,000 plus 10.8% of the excess T135 but not over $8,100,000 over $7,100,000 T136 Over $8,100,000 $312,000 plus 11.2% of the excess T137 but not over $9,100,000 over $8,100,000 T138 Over $9,100,000 $424,000 plus 11.6% of the excess T139 but not over $10,100,000 over $9,100,000 T140 Over $10,100,000 $540,000 plus 12% of the excess T141 over $10,100,000 (9) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2021, but prior to January 1, 2022, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this LCOsubdivision {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008717or pursuant to subdivision (3), (4), (5), (6), (7) or (8) of 104this R01-SB.docxsubsection, }provided Substitutesuch Billcredit No.shall not exceed the amount of tax imposed by this section:

877T142 subdivisionAmount orof pursuantTaxable toGifts subdivisionRate (3),of (4),Tax (5),T143 (6),Not (7)over or$7,100,000 (8)None ofT144 thisOver subsection,$7,100,000 provided10.8% suchof creditthe shallexcess T145 but not exceedover $8,100,000 over $7,100,000 T146 Over $8,100,000 $108,000 plus 11.2% of the amountexcess T147 but not over $9,100,000 over $8,100,000 T148 Over $9,100,000 $220,000 plus 11.6% of taxthe imposedexcess byT149 thisbut section:not over $10,100,000 over $9,100,000 T150 Over $10,100,000 $336,000 plus 12% of the excess LCO No.

T1424566 Amount25 of Taxable138 GiftsGovernor's RateBill ofNo.877 Tax T143 Not over $7,100,000 None T144 Over $7,100,000 10.8% of the excess T145 but not over $8,100,000 over $7,100,000 T146 Over $8,100,000 $108,000 plus 11.2% of the excess T147 but not over $9,100,000 over $8,100,000 T148 Over $9,100,000 $220,000 plus 11.6% of the excess T149 but not over $10,100,000 over $9,100,000 T150 Over $10,100,000 $336,000 plus 12% of the excess T151 over $10,100,000 (10) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2022, but prior to January 1, 2023, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5), (6), (7), (8) or (9) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T152 Amount of Taxable Gifts Rate of Tax T153 Not over $9,100,000 None T154 Over $9,100,000 11.6% of the excess T155 but not over $10,100,000 over $9,100,000 T156 Over $10,100,000 $116,000 plus 12% of the excess T157 over $10,100,000 (11) With respect to Connecticut taxable gifts, as defined in section LCO12-643, {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-008718made by a donor during a calendar year commencing on or after January 1, 2023, including the aggregate amount of 104all R01-SB.docxConnecticut }taxable Substitutegifts Billmade No.by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12- 640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5), (6), (7), (8), (9) or (10) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

877T158 12-643,Amount made by a donor during a calendar year commencing on or after January 1, 2023, including the aggregate amount of allTaxable ConnecticutGifts taxableRate gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12- 640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3), (4), (5), (6), (7), (8), (9) or (10) of thisTax subsection,LCO providedNo. such credit shall not exceed the amount of tax imposed by this section:

T1584566 Amount26 of Taxable138 GiftsGovernor's RateBill ofNo.877 Tax T159 Not over the None T160 federal basic exclusion amount T161 Over the 12% of the excess over the T162 federal basic exclusion amount federal basic exclusion amount] (b) The tax imposed by section 12-640, as amended by this act, shall be paid by the donor.

6.11.

Subdivision (3) of section 12-643 of the general statutes is LCOrepealed {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0019and the following is substituted in lieu thereof (Effective from passage and applicable to estates of 104decedents R01-SB.docxdying }on Substituteor Billafter No.January 1, 2019):

877 repealed and the following is substituted in lieu thereof (Effective from passage and applicable to estates of decedents dying on or after January 1, 2019):

Sec.LCO No.

7.4566 27 of 138 Governor's Bill No.877 Sec.

Subsections12. (c) to (e), inclusive, of section 12-391 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage and applicable to estates of decedents dying on or after January 1, 2019):

Subsections (a) to (e), inclusive, of section 12-391 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage and applicable to estates of decedents dying on or after January 1, 2019):

(a) With respect to estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03-1 of the June 30 special session, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state.

The amount of the tax shall be the amount of the federal credit allowable for estate, inheritance, legacy and succession taxes paid to any state or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as part of or in connection with the estate of such decedent.

If real or tangible personal property of such decedent is located outside this state and is subject to estate, inheritance, legacy, or succession taxes by any state or states, other than the state of Connecticut, or by the District of Columbia for which such federal credit is allowable, the amount of tax due under this section shall be reduced by the lesser of:

(1) The amount of any such taxes paid to such other state or states or said district and allowed as a credit against the federal estate tax;

or (2) an amount computed by multiplying such federal credit by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which such other state or states or said district have jurisdiction for estate tax purposes to the same extent to which this state would assert jurisdiction for estate tax purposes under this chapter with respect to the residents of such other state or states or said district, and (B) the denominator of which is the value of the decedent's gross estate.

Property of a resident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state, tangible personal property having an actual situs in this state, and intangible personal property owned by the decedent, regardless of where it is located.

The amount of any estate tax imposed LCO No.

4566 28 of 138 Governor's Bill No.877 under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.

(b) With respect to the estates of decedents who die prior to January 1, 2005, and except as otherwise provided in section 59 of public act 03- 1 of the June 30 special session, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state, the amount of which shall be computed by multiplying (1) the federal credit allowable for estate, inheritance, legacy, and succession taxes paid to any state or states or the District of Columbia under the provisions of the federal internal revenue code in force at the date of such decedent's death in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with the estate of such decedent by (2) a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes and (B) the denominator of which is the value of the decedent's gross estate.

Property of a nonresident estate over which this state has jurisdiction for estate tax purposes includes real property situated in this state and tangible personal property having an actual situs in this state.

The amount of any estate tax imposed under this subsection shall also be reduced, but not below zero, by the amount of any tax that is imposed under chapter 216 and that is actually paid to this state.

(1) (A) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, but prior to JanuaryLCO 1,No. 2010.

4566 29 of 138 Governor's Bill No877 January 1, 2010.

(B) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2015, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years LCObeginning {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00820on ofor 104after R01-SB.docxJanuary }1, Substitute2005, Billbut No.prior to January 1, 2015.

877 beginning on or after January 1, 2005, but prior to January 1, 2015.

(D) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2019, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, but prior to January 1, 2019, other than Connecticut taxable gifts that are includable in the gross estate for federal tax purposes of the decedent, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death, plus (iv) the amount of any taxable gift, as defined in Section 2503 of the Internal Revenue Code, excluding any taxable gift made when the decedent was a nonresident or that is real property or LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-021 of 104 R01-SB.docx } Substitute Bill No.

8774566 30 of 138 Governor's Bill No.877 but prior to January 1, 2019, other than Connecticut taxable gifts that are includable in the gross estate for federal tax purposes of the decedent, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death, plus (iv) the amount of any taxable gift, as defined in Section 2503 of the Internal Revenue Code, excluding any taxable gift made when the decedent was a nonresident or that is real property or tangible personal property having an actual situs outside this state at the time the gift was made, that is (I) made on or after January 1, 2019, (II) not otherwise included in the decedent's gross estate, and (III) made during the three-year period preceding the date of the decedent's death.

The amount of the tax shall be determined usingLCO theNo. schedule in subsection (g) of this section.

4566 31 of 138 Governor's Bill No.877 using the schedule in subsection (g) of this section.

A credit shall be allowed LCOagainst {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-022such oftax 104for R01-SB.docxany }taxes Substitutepaid Billto No.this state pursuant to section 12- 642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2015, provided such credit shall not exceed the amount of tax imposed by this section.

877 against such tax for any taxes paid to this state pursuant to section 12- 642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2015, provided such credit shall not exceed the amount of tax imposed by this section.

A credit shall be allowed againstLCO suchNo. tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2019, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, but prior to January 1, 2019, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section.

4566 32 of 138 Governor's Bill No877 against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2019, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, but prior to January 1, 2019, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section.

Such twenty- LCOmillion-dollar {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823limit shall be reduced by the amount of 104(I) R01-SB.docxany }taxes Substitutepaid Billto No.this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2019, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

877 million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, but prior to January 1, 2019, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2019, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

Such fifteen-million- dollarLCO limitNo. shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

(2)4566 If33 realof or138 tangibleGovernor's personalBill propertyNo877 dollar limit shall be reduced by the amount of such(I) decedentany istaxes locatedpaid outsideto this state,state pursuant to section 12-642, as amended by this act, by the amountdecedent ofor taxthe duedecedent's underestate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section shall12-642, beas LCOamended {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00824by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of 104the R01-SB.docxdecedent, }but Substitutein Billno No.event shall the amount be reduced below zero.

877(2) If real or tangible personal property of such decedent is located outside this state, the amount of tax due under this section shall be reduced by an amount computed by multiplying the tax otherwise due pursuant to subdivision (1) of this subsection, without regard to the credit allowed for any taxes paid to this state pursuant to section 12- 642, as amended by this act, by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate attributable to real or tangible personal property located outside of the state, and (B) the denominator of which is the value of the decedent's gross estate.

The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and theLCO denominatorNo. of which is the value of the decedent's gross estate.

4566 34 of 138 Governor's Bill No.877 the denominator of which is the value of the decedent's gross estate.

The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which LCOis {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00825the value of 104that R01-SB.docxpart }of Substitutethe Billdecedent's No.gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate.

877 is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate.

Such twenty-million-dollar limit shall be reducedLCO byNo. the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, but prior to January 1, 2019, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2019, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

(D)4566 With35 respectof to138 Governor's Bill No.877 reduced by the estatesamount of decedents(I) whoany dietaxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, but prior to January 1, 2019, aand tax(II) isany imposedtaxes uponpaid by the transferdecedent's ofspouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, but prior to January 1, 2019, that are includable in the gross estate of eachthe LCOdecedent, {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00826but ofin 104no R01-SB.docxevent }shall Substitutethe Billamount No.be reduced below zero.

877(D) With respect to the estates of decedents who die on or after January 1, 2019, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state.

Such fifteen-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or afterLCO JanuaryNo. 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

4566 36 of 138 Governor's Bill No.877 after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

8.

Subparagraph (L) of subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019, and applicable to sales occurring on or after July 1, 2019):

LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-027 of 104 R01-SB.docx } Substitute Bill No.

877 (L) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 [thirty-three] fifteen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

and (iv) For calendar months commencing on or after July 1, 2020, [but prior to July 1, 2021,] the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 [fifty-six] eighteen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle.

[;] [(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-028 of 104 R01-SB.docx } Substitute Bill No.

877 established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle.] Sec.

9.

Subparagraph (K) of subdivision (1) of section 12-411 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019, and applicable to sales occurring on or after July 1, 2019):

(K) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said Special Transportation Fund seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 [thirty-three] fifteen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

and (iv) For calendar months commencing on or after July 1, 2020, [but prior to July 1, 2021,] the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 [fifty-six] eighteen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle.

[;] [(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0029 of 104 R01-SB.docx } Substitute Bill No.

877 Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle.] Sec.

10.

Subdivision (13) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019, and applicable to sales occurring on or after October 1, 2019):

(13) "Tangible personal property" means personal property [which] that may be seen, weighed, measured, felt or touched or [which] that is in any other manner perceptible to the senses.

[including] "Tangible personal property" includes (A) digital goods, (B) canned or prewritten computer software, [.

Tangible personal property includes] including canned or prewritten software that is electronically accessed or transferred, other than when purchased by a business for use by such business, and any additional content related to such software, and (C) the distribution, generation or transmission of electricity.

Sec.

11.

Subsection (a) of section 12-407 of the general statutes is amended by adding subdivision (43) as follows (Effective October 1, 2019, and applicable to sales occurring on or after October 1, 2019):

(NEW) (43) "Digital goods" means audio works, visual works, audio-visual works, reading materials or ring tones, that are electronically accessed or transferred.

Sec.

12.

Subdivision (5) of section 12-410 of the general statutes is repealed and the following is substituted in lieu thereof (Effective LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-030 of 104 R01-SB.docx } Substitute Bill No.

877 October 1, 2019, and applicable to sales occurring on or after October 1, 2019):

(5) (A) For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax, a sale of any service described in subdivision (37) of subsection (a) of section 12-407, as amended by this act, shall be considered a sale for resale only if the service to be resold is an integral, inseparable component part of a service described in said subdivision that is to be subsequently sold by the purchaser to an ultimate consumer.

The purchaser of the service for resale shall maintain, in such form as the commissioner requires, records that substantiate:

(i) From whom the service was purchased and to whom the service was sold, (ii) the purchase price of the service, and (iii) the nature of the service to demonstrate that the services were an integral, inseparable component part of a service described in subdivision (37) of subsection (a) of section 12-407, as amended by this act, that was subsequently sold to a consumer.

(B) Notwithstanding the provisions of subparagraph (A) of this subdivision, no sale of a service described in subdivision (37) of subsection (a) of section 12-407, as amended by this act, by a seller shall be considered a sale for resale if such service is to be subsequently sold by the purchaser to an ultimate consumer that is affiliated with the purchaser in the manner described in subparagraph (A) of subdivision (62) of section 12-412.

(C) For purposes of subparagraph (A) of this subdivision, the sale of canned or prewritten computer software shall be considered a sale for resale if such software is subsequently sold, licensed or leased unaltered by the purchaser to an ultimate consumer.

The purchaser of the software for resale shall maintain, in such form as the commissioner requires, records that substantiate:

(i) From whom the software was purchased and to whom the software was sold, licensed or leased, (ii) the purchase price of the software, and (iii) the nature of the transaction with the ultimate consumer to demonstrate that the same software was provided unaltered to the ultimate consumer.

LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-031 of 104 R01-SB.docx } Substitute Bill No.

877 (D) For purposes of subparagraph (A) of this subdivision, the sale of digital goods or services described in subdivision (37) of subsection (a) of section 12-407, as amended by this act, shall be considered a sale for resale if such digital goods or services are subsequently resold as an integral, inseparable component part of a digital good or a service described in subdivision (37) of subsection (a) of section 12-407, as amended by this act, by the purchaser to an ultimate consumer.

The purchaser of the digital goods or services described in subdivision (37) of subsection (a) of section 12-407, as amended by this act, for resale shall maintain, in such form as the commissioner requires, records that substantiate:

(i) From whom such digital goods or services were purchased and to whom such digital goods or services were resold, (ii) the purchase price of such digital goods or services, and (iii) the nature of the transaction with the ultimate consumer.

Sec.

SubdivisionSubsections (37)(a) ofand subsection(b) (a) of section 12-40712-392 of the general statutes isare repealed and the following is substituted in lieu thereof (Effective Octoberfrom 1,passage 2019, and applicable to salesestates occurringof decedents dying on or after OctoberJanuary 1, 2019):

(37)(a) "Services"(1) for(A) purposesFor the estates of subdivisiondecedents (2)dying ofprior to July 1, 2009, the tax imposed by this subsection,chapter means:shall become due at the date of the taxable transfer and shall become payable, and shall be paid, without assessment, notice or demand, to the Commissioner of Revenue Services at the expiration of nine months from the date of death.

(A)For Computerthe andestates dataof processingdecedents services,dying including,on butor notafter limitedJuly to,1, time,2009, programming,but codeprior writing,to modificationJanuary of1, existing2019, programs,the feasibilitytax studiesimposed andby installationthis andchapter implementationshall ofbecome softwaredue programsat andthe systemsdate evenof wherethe suchtaxable servicestransfer areand renderedshall inbecome connectionpayable withand theshall development,be creationpaid, orwithout productionassessment, ofnotice canned or customdemand, softwareto orthe commissioner at the licenseexpiration of customsix software,months butfrom excludingthe digitaldate goods;of death.

(B)For Creditthe informationestates of decedents dying on or after January 1, 2019, the tax imposed by this chapter shall become due at the date of the taxable transfer and reportingshall services;become payable and shall be paid, without assessment, notice or demand, to the commissioner at the expiration of nine months from the date of death.

(C)(B) ServicesExecutors, byadministrators, employmenttrustees, agenciesgrantees, donees, beneficiaries and agenciessurviving providingjoint personnelowners services;shall be liable for the tax and for any interest or penalty thereon until it is paid, notwithstanding any provision of chapter 802b, except that no executor, administrator, trustee, grantee, donee, beneficiary or surviving joint owner shall be LCO No.

(D)4566 Private37 investigation,of protection,138 patrolGovernor's work,Bill watchmanNo.877 andliable LCOfor {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-032a greater sum than the value of 104the R01-SB.docxproperty }actually Substitutereceived Billby No.him or her.

877If armoredthe caramount services,of exclusivetax reported to be due on the return is not paid [, for the estates of (i)decedents servicesdying prior to July 1, 2009, within such nine months, or for the estates of off-dutydecedents policedying officerson andor off-dutyafter firefighters,July and1, (ii)2009, coinwithin andsuch currencysix servicesmonths] providedwithin tothe time period set forth in subparagraph (A) of this subdivision, there shall be imposed a financialpenalty servicesequal companyto byten per cent of such amount due and unpaid, or throughfifty anotherdollars, financialwhichever servicesis company.greater.

ForSuch purposesamount ofshall thisbear subparagraph,interest "financialat servicesthe company"rate hasof theone sameper meaningcent asper providedmonth underor subparagraphsfraction (A)thereof tofrom (H),the inclusive,due date of subdivisionsuch (6)tax ofuntil subsectionthe (a)date of sectionpayment. 12-218b;

(E)Subject Paintingto the provisions of section 12-3a, the commissioner may waive all or part of the penalties provided under this chapter when it is proven to the commissioner's satisfaction that the failure to pay any tax was due to reasonable cause and letteringwas services;not intentional or due to neglect.

(F)(2) PhotographicThe studioCommissioner services;of Revenue Services may, for reasonable cause shown, extend the time for payment.

(G)The Telephonecommissioner answeringmay services;require the filing of a tentative return and the payment of the tax reported to be due thereon in connection with such extension.

(H)Any Stenographicadditional services;tax [which] that may be found to be due on the filing of a return as allowed by such extension shall bear interest at the rate of one per cent per month or fraction thereof from the original due date of such tax to the date of actual payment.

(I)(3) (A) Whenever there is a claimed overpayment of the tax imposed by this chapter, the Commissioner of Revenue Services shall return to industrial,the commercialfiduciary or income-producingtransferee realthe property,overpayment including,which butshall notbear limitedinterest to,at the rate of two-thirds of one per cent per month or fraction thereof, such servicesinterest ascommencing, management,for electrical,the plumbing,estates paintingof anddecedents carpentry,dying providedprior income-producingto propertyJuly shall1, not2009, includeor propertyon usedor exclusivelyafter forJanuary residential1, purposes2019, infrom whichthe expiration of nine months after the ownerdeath residesof andthe whichtransferor containsor nodate moreof thanpayment, threewhichever dwellingis units,later, or, for the estates of decedents dying on or aafter housingJuly facility1, for2009, lowbut andprior moderateto incomeJanuary families1, and2019, personsfrom ownedthe expiration of six months after the death of the transferor or operateddate byof apayment, nonprofitwhichever housingis organization,later, as definedprovided in subdivisionsubparagraphs (29)(B) and (C) of sectionthis 12-412;subdivision.

(J)LCO BusinessNo. analysis, management, management consulting and public relations services, excluding (i) any environmental consulting services, (ii) any training services provided by an institution of higher education licensed or accredited by the Board of Regents for Higher Education or Office of Higher Education pursuant to sections 10a-35a and 10a-34, respectively, and (iii) on and after January 1, 1994, any business analysis, management, management consulting and public relations services when such services are rendered in connection with an aircraft leased or owned by a certificated air carrier or in connection with an aircraft which has a maximum certificated take-off weight of six thousand pounds or more;

LCO4566 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-03338 of 104138 R01-SB.docxGovernor's }Bill SubstituteNo877 Bill(B) No.In case of such overpayment pursuant to a tax return, no interest shall be allowed or paid under this subdivision on such overpayment for any month or fraction thereof prior to (i) the ninety-first day after the last day prescribed for filing the tax return associated with such overpayment, determined without regard to any extension of time for filing, or (ii) the ninety-first day after the date such return was filed, whichever is later.

877(C) (K)In Servicescase providingof "piped-in"such musicoverpayment pursuant to businessan amended tax return, no interest shall be allowed or professionalpaid establishments;under this subdivision on such overpayment for any month or fraction thereof prior to the ninety-first day after the date such amended tax return was filed.

(L)(b) Flight(1) instructionThe andtax charteringimposed services by athis certificatedchapter airshall carrierbe reported on ana aircraft,tax thereturn use of which forshall suchbe purposes,filed buton foror before the provisionsdate offixed subdivisionfor (4)paying ofthe sectiontax, 12-410determined andwithout subdivisionregard (12)to ofany sectionextension 12-411, would be deemed a retail sale and a taxable storage or use, respectively, of suchtime aircraftfor bypaying suchthe carrier;tax.

(M)The Motorcommissioner vehicleshall repairdesign services,a includingform any type of repair,return paintingand orforms replacementfor relatedsuch toadditional thestatements body or anyschedules ofas the operatingcommissioner partsmay ofrequire ato motorbe vehicle;filed.

(N)Such Motorforms vehicleshall parking,provide including the provision of space, other than metered space, in a lot having thirty or more spaces, excluding (i) space in a parking lot owned or leased under the terms of a lease of not less than ten years' duration and operated by an employer for the exclusivesetting useforth of itssuch employees,facts (ii) space in municipally operated railroad parking facilities in municipalities located within an area of the state designated as a severe nonattainment area for ozone under the federalcommissioner Cleandeems Airnecessary Act or space in a railroad parking facility in a municipality located within an area of the state designated as a severe nonattainment area for ozone under the federalproper Cleanenforcement Air Act owned or operated by the state on or after April 1, 2000, (iii) space in a seasonal parking lot provided by an entity subject to the exemption set forth in subdivision (1) of sectionthis 12-412,chapter. and (iv) space in a municipally owned parking lot;

(O)The Radiocommissioner shall furnish appropriate forms to each taxpayer upon application or televisionotherwise repairas services;the commissioner deems necessary.

(P)Failure Furnitureto reupholsteringreceive anda repairform services;shall not relieve any person from the obligation to file a return under the provisions of this chapter.

(Q)In Repairany servicescase toin anywhich electricalthe commissioner believes that it would be advantageous to him or electronicher device,in including,the butadministration notof limitedthe to,tax equipmentimposed usedby forthis purposeschapter, the commissioner may require that a true copy of refrigerationthe orfederal air-conditioning;estate tax return made to the Internal Revenue Service be provided.

(R)(2) LobbyingAny tax return or consultingother servicesdocument, forincluding purposesany ofamended representingtax return under section 12-398, that is required to be filed under this chapter shall be filed, and shall be treated as filed, only if filed with (A) the LCOCommissioner {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00834of Revenue Services, if required under subdivision (3) of 104this R01-SB.docxsubsection, }and Substitute(B) Bill(i) the court of probate for the district LCO No.

8774566 interests39 of 138 Governor's Bill No.877 within which the decedent resided at the date of his or her death, or, (ii) if the decedent died a clientnonresident inof relationthis tostate, in the functionscourt of anyprobate governmentalfor entitythe district within which real estate or instrumentality;tangible personal property of the decedent is situated.

(S)The Servicesreturn ofshall thecontain agenta ofstatement, any person in relation to thebe salesigned ofunder anypenalty item of tangiblefalse personalstatement propertyby for such person, exclusive of the servicesperson ofwho ais consigneerequired selling works of art, as defined in subsection (b) of section 12-376c, or articles of clothing or footwear intended to bemake wornand onfile or about the humanreturn bodyunder otherthis thanchapter, (i)that anythe specialreturn clothinghas orbeen footwearfiled primarilywith designed for athletic activity or protective use and which is not normally worn except when used for the athleticCommissioner activityof orRevenue protectiveServices, useif forrequired whichunder itsubdivision was(3) designed,of andthis (ii)subsection, jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the humanappropriate bodycourt but not worn on the body, under consignment, exclusive of servicesprobate. provided by an auctioneer;

(T)(3) Locksmith(A) services;A tax return shall be filed, in the case of every decedent who died prior to January 1, 2005, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state, whenever the personal representative of the estate is required by the laws of the United States to file a federal estate tax return.

(U)(B) AdvertisingA ortax publicreturn relationsshall services,be includingfiled, layout,in artthe direction,case graphicof design,every mechanicaldecedent preparationwho dies on or productionafter supervision,January not1, related2005, but prior to January 1, 2010, and at the developmenttime of mediadeath advertisingwas (i) a resident of this state, or cooperative(ii) directa mailnonresident advertising;of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state.

(V)If Landscapingthe decedent's Connecticut taxable estate is over two million dollars, such tax return shall be filed with the Commissioner of Revenue Services and horticulturea services;copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated.

(W)If Windowthe cleaningdecedent's services;Connecticut taxable estate is two million dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return LCO No.

(X)4566 Maintenance40 services;of 138 Governor's Bill No877 shall be filed with the Commissioner of Revenue Services.

(Y)The Janitorialjudge services;of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(Z)(C) ExterminatingA services;tax return shall be filed, in the case of every decedent who dies on or after January 1, 2010, but prior to January 1, 2011, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state.

(AA)If Swimmingthe pooldecedent's cleaningConnecticut taxable estate is over three million five hundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and maintenancea services;copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated.

(BB)If Miscellaneousthe personaldecedent's servicesConnecticut includedtaxable inestate industryis groupthree 729million infive thehundred Standardthousand Industrialdollars Classificationor Manual,less, Unitedsuch Statesreturn Officeshall be filed with the court of Managementprobate andfor Budget,the 1987district edition,within orwhich [U.S.]the industrydecedent groupresided 532220,at 812191,the 812199date of his or 812990her [in]death ofor, if the Northdecedent Americandied LCOa {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-035nonresident of 104this R01-SB.docxstate, }the Substitutecourt Billof No.probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services.

877The [Industrial]judge Industryof Classificationprobate Systemfor Unitedthe Statesdistrict Manual,in Unitedwhich Statessuch Officereturn ofis Managementfiled andshall Budgetreview (NAICS),each 1997such edition,return exclusiveand ofshall (i)issue servicesa renderedwritten byopinion massageto therapiststhe licensedestate pursuantrepresentative toin chaptereach 384a,case andin (ii)which servicesthe renderedjudge bydetermines anthat electrologistthe licensedestate pursuantis not subject to chaptertax 388;under this chapter.

(CC)(D) AnyA repairtax return shall be filed, in the case of every decedent who dies on or maintenanceafter serviceJanuary 1, 2011, but prior to anyJanuary item1, of2018, tangibleand personalat propertythe includingtime anyof contractdeath was (i) a resident of warrantythis state, or service(ii) relateda tononresident of this state whose gross estate includes any suchreal item;property situated in this state or tangible personal property having an actual situs in this state.

(DD)LCO BusinessNo. analysis, management or managing consulting services rendered by a general partner, or an affiliate thereof, to a limited partnership, provided (i) the general partner, or an affiliate thereof, is compensated for the rendition of such services other than through a distributive share of partnership profits or an annual percentage of partnership capital or assets established in the limited partnership's offering statement, and (ii) the general partner, or an affiliate thereof, offers such services to others, including any other partnership.

As4566 used41 inof this138 subparagraphGovernor's "anBill affiliateNo.877 If the decedent's Connecticut taxable estate is over two million dollars, such tax return shall be filed with the Commissioner of Revenue Services and a generalcopy partner"of meanssuch anreturn entityshall be filed with the court of probate for the district within which isthe directlydecedent orresided indirectlyat ownedthe fiftydate perof centhis or moreher indeath commonor, withif the decedent died a generalnonresident partner;of this state, the court of probate for the district within which such real property or tangible personal property is situated.

(EE)If Notwithstanding the provisionsdecedent's ofConnecticut sectiontaxable 12-412,estate asis amendedtwo bymillion thisdollars act,or exceptless, subdivisionsuch (87)return shall be filed with the court of saidprobate sectionfor 12-412,the patientdistrict carewithin services,which asthe defineddecedent inresided subdivisionat (29)the date of thishis subsectionor byher adeath hospital,or, exceptif thatthe "sale"decedent anddied "selling"a doesnonresident notof includethis suchstate, patientthe carecourt servicesof probate for the district within which paymentsuch isreal receivedproperty byor thetangible hospitalpersonal duringproperty theis periodsituated, commencingand Julyno 1,such 2001,return andshall endingbe Junefiled 30,with 2003;the Commissioner of Revenue Services.

(FF)The Healthjudge and athletic club services, exclusive of (i)probate anyfor suchthe servicesdistrict providedin without any additional charge which aresuch includedreturn inis anyfiled duesshall orreview initiationeach fees paid to any such club,return which dues or fees are subject to tax under section 12-543, and (ii)shall anyissue such services provided by a municipalitywritten oropinion anto organizationthe thatestate isrepresentative described in Sectioneach 501(c)case ofin which the Internaljudge Revenuedetermines Codethat of 1986, or any subsequent corresponding internal revenue code of the Unitedestate States,is asnot amendedsubject LCOto {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-036tax ofunder 104this R01-SB.docxchapter. } Substitute Bill No.

877(E) fromA timetax return shall be filed, in the case of every decedent who dies on or after January 1, 2018, but prior to time;January 1, 2019, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state.

[amended;]If (GG)the Motordecedent's vehicleConnecticut storagetaxable services,estate includingis storageover oftwo motormillion homes,six campershundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and campa trailers,copy otherof thansuch return shall be filed with the furnishingcourt of spaceprobate asfor describedthe indistrict subparagraphwithin (P)which the decedent resided at the date of subdivisionhis (2)or her death or, if the decedent died a nonresident of this subsection;state, the court of probate for the district within which such real property or tangible personal property is situated.

(HH)If Packingthe anddecedent's cratingConnecticut services,taxable otherestate thanis thosetwo providedmillion insix connectionhundred thousand dollars or less, such return shall be filed with the salecourt of tangibleprobate personalfor propertythe bydistrict within which the retailerdecedent resided at the date of suchhis property;or her death or, if the decedent died a nonresident of this state, the court of LCO No.

(II)4566 Motor42 vehicleof towing138 Governor's Bill No.877 probate for the district within which such real property or tangible personal property is situated, and roadno services,such otherreturn thanshall motorbe vehiclefiled repairwith services;the Commissioner of Revenue Services.

(JJ)The Intrastatejudge transportationof servicesprobate providedfor bythe liverydistrict services,in includingwhich limousines,such communityreturn carsis orfiled vans,shall withreview each such return and shall issue a driver.written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

Intrastate(F) transportationA servicestax return shall notbe includefiled, transportationin bythe taxicab,case motorof bus,every ambulancedecedent who dies on or ambulette,after scheduledJanuary public1, transportation,2019, nonemergencybut medicalprior transportationto providedJanuary under1, 2020, and at the Medicaidtime program,of paratransitdeath serviceswas provided(i) bya agreementresident of this state, or arrangement(ii) witha thenonresident of this state orwhose anygross politicalestate subdivisionincludes ofany thereal state,property dial-a-ridesituated servicesin this state or servicestangible providedpersonal inproperty connectionhaving withan funerals;actual situs in this state.

(KK)If Petthe groomingdecedent's Connecticut taxable estate is over three million six hundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and peta boardingcopy services,of exceptsuch return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if suchthe servicesdecedent aredied provideda asnonresident anof integralthis partstate, the court of professionalprobate veterinaryfor services,the anddistrict petwithin obediencewhich services;such real property or tangible personal property is situated.

(LL)If Servicesthe indecedent's connectionConnecticut taxable estate is three million six hundred thousand dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a cosmeticnonresident medicalof procedure.this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services.

ForThe purposesjudge of thisprobate subparagraph,for "cosmeticthe medicaldistrict procedure"in meanswhich anysuch medicalreturn procedureis performedfiled onshall anreview individualeach thatsuch isreturn directedand atshall improvingissue thea individual'swritten appearanceopinion andto thatthe doesestate notrepresentative meaningfullyin promoteeach case in which the properjudge functiondetermines ofthat the bodyestate oris preventnot orsubject treatto illnesstax orunder disease.this chapter.

"Cosmetic(G) medicalA procedure"tax includes,return butshall isbe notfiled, limitedin to,the cosmeticcase surgery,of hairevery transplants,decedent cosmeticwho injections,dies cosmeticon softor tissueafter fillers,January dermabrasion1, and2020, chemicalbut peel,prior laserto hairJanuary removal,1, laser2021, skinand resurfacing,at laserthe treatmenttime of legdeath veinswas and(i) sclerotherapy.a resident of this state, or (ii) a nonresident of this LCO No.

"Cosmetic4566 medical43 procedure"of does138 notGovernor's includeBill reconstructiveNo877 surgery.state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state.

"ReconstructiveIf surgery"the includesdecedent's anyConnecticut surgerytaxable performedestate onis abnormalover LCOfive {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-037million one hundred thousand dollars, such tax return shall be filed with the Commissioner of 104Revenue R01-SB.docxServices }and Substitutea Billcopy No.of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated.

877If structuresthe causeddecedent's byConnecticut taxable estate is five million one hundred thousand dollars or relatedless, tosuch congenitalreturn defects,shall developmentalbe abnormalities,filed trauma,with infection,the tumorscourt orof disease,probate includingfor proceduresthe todistrict improvewithin functionwhich the decedent resided at the date of his or giveher death or, if the decedent died a morenonresident normalof appearance;this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services.

(MM)The Manicurejudge services,of pedicureprobate servicesfor the district in which such return is filed shall review each such return and allshall otherissue naila services,written regardlessopinion ofto wherethe performed,estate includingrepresentative airbrushing,in fills,each fullcase sets,in nailwhich sculpting,the paraffinjudge treatmentsdetermines andthat polishes;the estate is not subject to tax under this chapter.

(NN)(H) SpaA services,tax regardlessreturn shall be filed, in the case of whereevery performed,decedent includingwho bodydies waxingon andor wraps,after peels,January scrubs1, 2021, but prior to January 1, 2022, and facials;at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state.

[and]If (OO)the Cardecedent's washConnecticut services,taxable includingestate coin-operatedis carover washes;seven million one hundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated.

(PP)If Prearrangedthe ridesdecedent's thatConnecticut originatetaxable inestate thisis state,seven providedmillion byone transportationhundred networkLCO companies.No.

As4566 used44 inof 138 Governor's Bill No.877 thousand dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this subparagraph,state, "prearrangedthe ride"court of probate for the district within which such real property or tangible personal property is situated, and "transportationno networksuch company"return haveshall thebe samefiled meaningswith asthe providedCommissioner inof sectionRevenue 13b-116.Services.

The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(I) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2022, but prior to January 1, 2023, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state.

If the decedent's Connecticut taxable estate is over nine million one hundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated.

If the decedent's Connecticut taxable estate is nine million one hundred thousand dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services.

The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

LCO No.

4566 45 of 138 Governor's Bill No877 (J) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2023, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state.

If the decedent's Connecticut taxable estate is over [five million four hundred ninety thousand dollars] the federal basic exclusion amount, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated.

If the decedent's Connecticut taxable estate is equal to or less than [five million four hundred ninety thousand dollars] the federal basic exclusion amount, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services.

The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(4) The duly authorized executor or administrator shall file the return.

If there is more than one executor or administrator, the return shall be made jointly by all.

If there is no executor or administrator appointed, qualified and acting, each person in actual or constructive possession of any property of the decedent is constituted an executor for purposes of the tax and shall make and file a return.

If in any case the executor is unable to make a complete return as to any part of the gross estate, the executor shall provide all the information available to him or her with respect to such property, including a full description, LCO No.

4566 46 of 138 Governor's Bill No.877 and the name of every person holding a legal or beneficial interest in the property.

If the executor is unable to make a return as to any property, each person holding a legal or equitable interest in such property shall, upon notice from the commissioner, make a return as to that part of the gross estate.

(5) On or before the last day of the month next succeeding each calendar quarter, and commencing with the calendar quarter ending September 30, 2005, each court of probate shall file with the commissioner a report for the calendar quarter in such form as the commissioner may prescribe.

The report shall pertain to returns filed with the court of probate during the calendar quarter.

(6) The Commissioner of Revenue Services may, for reasonable cause shown, extend the time for filing the return.

(7) If any person required to make and file the tax return under this chapter fails to file the return within the time prescribed, the commissioner may assess and compute the tax upon the best information obtainable.

To the tax imposed upon the basis of such return, there shall be added an amount equal to ten per cent of such tax or fifty dollars, whichever is greater.

The tax shall bear interest at the rate of one per cent per month or fraction thereof from the due date of such tax until the date of payment.

(8) The commissioner shall provide notice of any (A) deficiency assessment with respect to the payment of any tax under this chapter, (B) assessment with respect to any failure to make and file a return under this chapter by a person required to file, and (C) tax return or other document, including any amended tax return under section 12- 398 that is required to be filed under this chapter to the court of probate for the district within which the commissioner contends that the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, to the court of probate for the district within which the commissioner contends that real estate or tangible LCO No.

4566 47 of 138 Governor's Bill No.877 personal property of the decedent is situated.

SubsectionsSubdivision (b)(1) and (c) of section 13b-12112-408 of the general statutes areis repealed and the following is substituted in lieu thereof (Effective fromJuly passage):1, 2019, and applicable to sales occurring on or after July 1, 2019):

(b)(1) Each(A) transportationFor networkthe companyprivilege shallof paymaking aany feesales, as defined in subdivision (2) of twenty-subsection five(a) centsof onsection each12-407, prearrangedas rideamended thatby originatesthis act, at retail, in this state priorfor a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths 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, as amended by this act, except, in lieu of said rate of six and thirty-five-hundredths per cent, the rates provided in subparagraphs (B) to October(H), 1,inclusive, 2019.of this subdivision;

(c)(B) On(i) orAt beforea therate lastof day[fifteen] seventeen per cent with respect to each transfer of occupancy, from the monthtotal nextamount succeedingof eachrent calendarreceived quarter,by untila andhotel includingor Octoberlodging 31,house 2019,for eachthe transportationfirst networkperiod companynot shall:exceeding thirty consecutive calendar days;

(1)(ii) FileAt a returnrate electronicallyof for[eleven] thethirteen precedingper periodcent with respect to each transfer of occupancy, from the Commissionertotal amount of Revenuerent Servicesreceived onby sucha formsbed asand breakfast establishment for the commissionerfirst mayperiod prescribe;not exceeding thirty consecutive calendar days;

and(C) (2)With makerespect paymentto the sale of a motor vehicle to any individual who is a member of the feesarmed requiredforces of the United States and is on full-time active duty in Connecticut and who is considered, under subsection50 (b)App USC 574, a resident of thisanother sectionstate, byor electronicto fundsany transfersuch inindividual and the mannerspouse 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 chaptersuch 228g.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, LCO No.

Any4566 document48 receivedof and138 maintainedGovernor's byBill theNo.877 commissionersatisfactory with respect to athe transportationcommissioner, networkconcerning companythe shallpurchaser's bestate returnof information,residence as defined in section 12-15, and shall not be subject to disclosure under the50 FreedomApp ofUSC Information574; Act, as defined in section 1-200.

LCO(D) {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-038(i) With respect to the sales of 104computer R01-SB.docxand }data Substituteprocessing Billservices No.occurring on or after July 1, 2001, at the rate of one per cent, and (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;

877(E) Sec.[(i)] 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;

[(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer used for transporting a vessel, at the rate of two and ninety- nine-hundredths per cent, except that the sale of a vessel shall be exempt from such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;] (F) 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;

(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;

(H) With respect to the sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price LCO No.

4566 49 of 138 Governor's Bill No.877 exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.

For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

(I) 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 subdivision (37) of subsection (a) of section 12-407, as amended by this act, 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 amended 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;

(J) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths LCO No.

4566 50 of 138 Governor's Bill No.877 per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;

(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;

and [(K) For calendar months commencing on or after July 1, 2021, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

and] [(L)] (K) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, [but prior to July 1, 2019,] the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle.

[;] [(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 thirty-three per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

LCO No.

4566 51 of 138 Governor's Bill No.877 (iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 fifty-six per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle.] Sec.

Subdivision (1) of section 12-408 of the general statutes, as amended by section 814 of this act, is repealed and the following is substituted in lieu thereof (Effective January 1, 2020, and applicable to sales occurring on or after January 1, 2020):

(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, as amended by this act, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths 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, as amended by this act, except, in lieu of said rate,rate [ofof six and thirty-five-hundredths per cent,]cent, the rates provided in subparagraphs (B) to [(H)](H), (I), inclusive, of this subdivision;

(B)LCO (i)No. At a rate of fifteen per cent with respect to each transfer of occupancy, from the total amount of rent received by a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;

(ii)4566 52 of 138 Governor's Bill No.877 (B) (i) At a rate of elevenseventeen per cent with respect to each transfer of occupancy, from the total amount of rent received by a bedhotel andor breakfastlodging establishmenthouse for the first period not exceeding thirty consecutive calendar days;

(C)(ii) WithAt respect to the sale of a motorrate vehicle to any individual who is a member of thethirteen armedper forcescent ofwith therespect 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 anyeach suchtransfer individual and the spouse thereof, at a rate of fouroccupancy, andfrom one-half per cent of the grosstotal receiptsamount of anyrent retailerreceived fromby such sales, provided such retailer requires and maintains a declarationbed by such individual, prescribed as to form by the commissioner and bearingbreakfast noticeestablishment tofor the effectfirst thatperiod falsenot statementsexceeding madethirty inconsecutive suchcalendar declarationdays; are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-039 of 104 R01-SB.docx } Substitute Bill No.

877(iii) residenceAt undera 50rate Appof USCsix 574;and thirty-five-hundredths per cent with respect to each transfer of occupancy, from the total amount of rent received by a campground for the first period not exceeding thirty consecutive days;

(C) 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;

(E) (i) 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, suchbut servicesprior shallto beJanuary exempt1, from2020, suchLCO tax;No.

(ii)4566 With53 respect to the sale of a138 vessel,Governor's aBill motorNo.877 forsuch aservices vessel or a trailer used for transporting a vessel, at the rate of two and ninety- nine-hundredths per cent, except that the sale of a vessel shall be exempt from such taxtax; if such vessel is docked in this state for sixty or fewer days in a calendar year;

For purposes of this subparagraph, LCO"motor {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00840vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of 104subparagraph R01-SB.docx(C) }of Substitutethis Billsubdivision, No.a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

877(I) "motorThe vehicle"rate hasof thetax meaningimposed providedby inthis sectionchapter 14-1,shall butbe doesapplicable notto includeall aretail motorsales vehicleupon subject to the provisionseffective ofdate subparagraph (C) of thissuch subdivision,rate, aexcept motorthat vehicle having a grossnew vehiclerate weightwhich ratingrepresents overan twelveincrease thousandin fivethe hundredrate pounds,applicable orto athe motorsale vehicleshall having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not usedapply for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any businesssales enterprisetransaction andwherein issued a commercialbinding registrationsales orcontract morewithout specificLCO typeNo. of registration by the Department of Motor Vehicles;

(I)4566 With54 respectof 138 Governor's Bill No.877 an escalator clause has been entered into prior to the saleeffective date of meals,the asnew definedrate inand subdivisiondelivery (13)is ofmade sectionwithin 12-412,ninety solddays byafter anthe eatingeffective establishment,date catererof orthe grocerynew store;rate.

andFor spirituous,the maltpurposes orof vinouspayment liquors,of softthe drinks,tax sodasimposed under this section, any retailer of services taxable under subdivision (37) of subsection (a) of section 12-407, as amended by this act, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or beveragesany suchsubsequent corresponding internal revenue code of the United States, as arefrom ordinarilytime dispensedto attime barsamended, on an accounting basis which recognizes only cash or other valuable consideration actually received as income and sodawho fountains,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 ininterest, connectionwithout therewith;regard to when such service is rendered;

at(J) (i) For calendar quarters ending on or after September 30, 2019, the ratecommissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of seventhe amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and thirty-five-ten hundredthsand seven-tenths per cent;cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;

[(I)](ii) (J)For Thecalendar ratequarters ofending taxon imposedor byafter thisSeptember chapter30, shall2018, bethe applicablecommissioner toshall alldeposit retailinto sales upon the effectiveTourism dateFund ofestablished suchunder rate,section except10-395b thatten aper newcent rateof [which] that represents an increase in the rateamounts applicablereceived toby the salestate shallfrom not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effectivetax dateimposed ofunder thesubparagraph new[(B)] rate(B)(i) and delivery(B)(ii) is made within ninety days after the effective date of thethis newsubdivision; rate.

Forand the(K) purposes(i) ofFor paymentcalendar ofmonths thecommencing taxon imposedor underafter thisJuly section,1, any2017, retailerthe ofcommissioner servicesshall taxabledeposit underinto subdivisionthe (37)Special ofTransportation subsectionFund (a)established ofunder section 12-407,13b-68 asseven amendedand bynine-tenths thisper act,cent who computes taxable income, for purposes of taxation under the Internalamounts Revenuereceived Codeby of 1986, or any subsequent corresponding internal revenue code of the Unitedstate States, as amended from time to time, [amended,] on an accounting basis [which] that 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 forimposed theunder periodsubparagraph during(A) which such income is received, without penalty or interest, LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-041 of 104this R01-SB.docxsubdivision; } Substitute Bill No.

877LCO withoutNo. regard to when such service is rendered;

[(J)]4566 (K)55 (i)of 138 Governor's Bill No.877 (ii) For calendar quartersmonths endingcommencing on or after SeptemberJuly 30,1, 2019,2018, the commissioner shall deposit into the regionalSpecial planningTransportation incentiveFund account, established pursuantunder to section 4-66k,13b-68 sixeight and seven- tenths per cent of the amounts received by the state from the tax imposed under subparagraphsubparagraphs (B)(A) of this subdivision and ten(H) and seven-tenths per cent of thethis amountssubdivision receivedon by the statesale from the tax imposed under subparagraph (G) of thisa subdivision;motor vehicle.

(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;

[(K)] (L) For calendar months commencing on or after July 1, 2021, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

and [(L)] (M) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 fifteen per cent LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-042 of 104 R01-SB.docx } Substitute Bill No.

877 of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

and (iv) For calendar months commencing on or after July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eighteen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle.

Subdivision (1) of section 12-411 of the general statutes,statutes as amended by section 9 of this act, is repealed and the following is substituted in lieu thereof (Effective JanuaryJuly 1, 2020,2019, and applicable to sales occurring on or after JanuaryJuly 1, 2020):2019):

(1) (A) 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, as amended by this act, 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 thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate:rate of six and thirty-five-hundredths per cent;

[of six and thirty- five-hundredths per cent;] (B) (i) At a rate of fifteen[fifteen] seventeen per cent of the rent paid to a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;

(ii) At a rate of eleven[eleven] thirteen per cent of the rent paid to a bed and LCObreakfast {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-043establishment offor 104the R01-SB.docxfirst }period Substitutenot Billexceeding No.thirty consecutive calendar days;

877(C) breakfastWith establishmentrespect forto the firststorage, periodacceptance, notconsumption exceedingor thirtyuse consecutivein calendarthis days;state of a motor vehicle purchased from any retailer for storage, LCO No.

(C)4566 With56 respect to the storage, acceptance, consumption or use in this state of a138 motorGovernor's vehicleBill purchasedNo877 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;

(D) (i)[(i)] 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;

(ii)[(ii) (I) With respect to the storage, acceptance or other use of a vessel in this state, at the rate of two and ninety-nine-hundredths per cent, except that such storage, acceptance or other use shall be exempt from such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;

(II) With respect to the storage, acceptance or other use of a motor for a vessel or a trailer used for transporting a vessel in this state, at the rate of two and ninety-nine-hundredths per cent;cent;] (E) (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, 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 and after July 1, 2001, such services shall be exempt from such tax;

(E)(F) (i) With respect to the acceptance or receipt in this state of computerpatient and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 2001, at LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0044 of 104 R01-SB.docx } Substitute Bill No.

8774566 the57 rate of one138 perGovernor's centBill ofNo.877 suchcare services,services andpurchased (ii)from withany respectretailer tofor theconsumption acceptance or receiptuse 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 Internetfive accessand services,three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;

(F) 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;

(I) With(i) respectFor tocalendar thequarters acceptanceending on or receiptafter inSeptember this30, state2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of meals,the asamounts LCOreceived {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-045by the state from the tax imposed under subparagraph (B) of 104this R01-SB.docxsubdivision }and Substituteten Billand seven-tenths LCO No.

8774566 defined58 inof subdivision138 (13)Governor's Bill No.877 per cent of sectionthe 12-412,amounts soldreceived by anthe eatingstate establishment,from catererthe ortax groceryimposed store;under subparagraph (G) of this subdivision;

and spirituous, malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in connection therewith;

at the rate of seven and thirty-five-hundredths per cent;

[(I)] (J) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven- tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;

[(J)]and (K)[(J) For calendar months commencing on or after July 1, 2021, the commissioner shall deposit into said municipal revenue sharing account seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

andand] [(K)] (L)(J) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said Special Transportation Fund seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, but[but prior to July 1, 2019,2019,] the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or LCOreceipt {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-046in ofthis 104state R01-SB.docxof }a Substitutemotor Billvehicle. No.

877[;] [(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 thirty-three per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

(iii)(iv) For calendar months commencing on or after July 1, 2019,2020, but prior to July 1, 2020,2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 fifteenfifty-six per cent ofLCO theNo. amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

and4566 (iv)59 Forof calendar138 monthsGovernor's commencingBill onNo.877 or after July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eighteen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle.vehicle;

Sec.(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

and (vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle.] Sec.

Subdivision (37)(1) of subsection (a) of section 12-40712-411 of the general statutes, as amended by section 1316 of this act, is repealed and the following is substituted in lieu thereof (Effective January 1, 2020, and applicable to sales occurring on or after January 1, 2020):

(1) (A) 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, as amended by this act, 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 LCO No.

4566 60 of 138 Governor's Bill No877 materials, at the rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate of six and thirty-five-hundredths per cent;

(B) (i) At a rate of seventeen per cent of the rent paid to a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;

(ii) At a rate of thirteen per cent of the rent paid to a bed and breakfast establishment for the first period not exceeding thirty consecutive calendar days;

(iii) At a rate of six and thirty-five-hundredths per cent with respect to each transfer of occupancy, from the total amount of rent received by a campground for the first period not exceeding thirty consecutive days;

(C) 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;

(D) 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, but prior to January 1, 2020, such services shall be exempt from such tax;

LCO No.

4566 61 of 138 Governor's Bill No.877 (E) (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, 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 and after July 1, 2001, such services shall be exempt from such tax;

(F) 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;

(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;

(H) With respect to the acceptance or receipt in this state of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.

For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business LCO No.

4566 62 of 138 Governor's Bill No.877 enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

(I) (i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;

(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph [(B)] (B)(i) and (B)(ii) of this subdivision;

and (J) (i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said Special Transportation Fund seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle.

Sec.

18.

Subparagraph (M) of subdivision (2) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019, and applicable to sales occurring on or after October 1, 2019):

(M) The transfer for consideration of space or the right to use any space for the purpose of storage or mooring of any noncommercial LCO No.

4566 63 of 138 Governor's Bill No.877 vessel;

[, exclusive of dry or wet storage or mooring of such vessel during the period commencing on the first day of October in any year to and including the thirty-first day of May of the next succeeding year;] Sec.

19.

Subdivision (13) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019, and applicable to sales occurring on or after October 1, 2019):

(13) "Tangible personal property" means personal property [which] that may be seen, weighed, measured, felt or touched or [which] that is in any other manner perceptible to the senses.

[including] "Tangible personal property" includes (A) digital goods and canned or prewritten computer software, [.

Tangible personal property includes] including prewritten software that is electronically accessed or transferred and any additional content related to such software, and (B) the distribution, generation or transmission of electricity.

Sec.

20.

Subsection (a) of section 12-407 of the general statutes is amended by adding subdivision (43) as follows (Effective October 1, 2019, and applicable to sales occurring on or after October 1, 2019):

(NEW) (43) "Digital goods" means audio works, visual works, audio-visual works, reading materials or ring tones, that are electronically accessed or transferred.

Sec.

21.

Subparagraph (A) of subdivision (37) of subsection (a) of section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019, and applicable to sales occurring on or after October 1, 2019):

(A) Computer and data processing services, including, but not limited to, time, programming, code writing, modification of existing programs, feasibility studies and installation and implementation of software programs and systems even where such services are rendered LCO No.

4566 64 of 138 Governor's Bill No.877 in connection with the development, creation or production of canned or custom software or the license of custom software, but excluding digital goods;

Sec.

22.

Subdivision (37) of subsection (a) of section 12-407 of the general statutes, as amended by section 21 of this act, is repealed and the following is substituted in lieu thereof (Effective January 1, 2020, and applicable to sales occurring on or after January 1, 2020):

LCO(D) {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-047Private investigation, protection, patrol work, watchman and armored car services, exclusive of 104(i) R01-SB.docxservices }of Substituteoff-duty Billpolice No.officers and off-duty firefighters, and (ii) coin and currency services provided to a financial services company by or through another financial services company.

877 (D) Private investigation, protection, patrol work, watchman and armored car services, exclusive of (i) services of off-duty police officers and off-duty firefighters, and (ii) coin and currency services provided to a financial services company by or through another financial services company.

(G)LCO TelephoneNo. answering services;

4566 65 of 138 Governor's Bill No.877 (G) Telephone answering services;

(I) Services to industrial, commercial or income-producing real property, including, but not limited to, such services as management, electrical, plumbing, painting and carpentry, provided income-producing property shall not include property[property used exclusively for residential purposes in which the owner resides and which contains no more than three dwelling units, oror] a housing facility for low and moderate income families and persons owned or operated by a nonprofit housing organization, as defined in subdivision (29) of section 12-412;

(J) Business analysis, management, management consulting and public relations services, excluding (i) any environmental consulting services, (ii) any training services provided by an institution of higher education licensed or accredited by the Board of Regents for Higher Education or Office of Higher Education pursuant to sections 10a-35a and 10a-34, respectively, and (iii) on and after January 1, 1994, any business analysis, management, management consulting and public relations services when such services are rendered in connection with an aircraft leased or owned by a certificated air carrier or in connection with an aircraft which has a maximum certificated take-off weight of LCOsix {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-048thousand ofpounds 104or R01-SB.docxmore; } Substitute Bill No.

877 six thousand pounds or more;

(M) Motor vehicle repair services, including any type of repair, paintingLCO orNo. replacement related to the body or any of the operating parts of a motor vehicle;

4566 66 of 138 Governor's Bill No.877 painting or replacement related to the body or any of the operating parts of a motor vehicle;

LCO(R) {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00849Lobbying or consulting services for purposes of 104representing R01-SB.docxthe }interests Substituteof Billa No.client in relation to the functions of any governmental entity or instrumentality;

877(S) (R)Services Lobbyingof orthe consultingagent servicesof forany purposesperson in relation to the sale of representingany item of tangible personal property for such person, exclusive of the interestsservices of a clientconsignee selling works of art, as defined in relationsubsection (b) of section 12-376c, or articles of clothing or footwear intended to be worn on or about the functionshuman ofbody other than (i) any governmentalspecial entityclothing or instrumentality;footwear primarily designed for athletic activity or protective use LCO No.

(S)4566 Services67 of the138 agentGovernor's ofBill anyNo.877 person in relation to the sale of any item of tangible personal property for such person, exclusive of the services of a consignee selling works of art, as defined in subsection (b) of section 12-376c, or articles of clothing or footwear intended to be worn on or about the human body other than (i) any special clothing or footwear primarily designed for athletic activity or protective use and which is not normally worn except when used for the athletic activity or protective use for which it was designed, and (ii) jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the human body but not worn on the body, under consignment, exclusive of services provided by an auctioneer;

(X) Maintenance[Maintenance services;services] Services to buildings and dwellings, including, but not limited to, maintenance, repair, renovation, exterior cleaning, chimney cleaning, driveway cleaning, duct cleaning, drain or gutter cleaning, refuse collection, snow plowing and all other such services not specifically enumerated herein;

(Z) Exterminating and pest control services;

(BB) Miscellaneous[Miscellaneous personal services included in industry group 729 in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, or industryU.S. group 532220, LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0050 of 104 R01-SB.docx } Substitute Bill No.

877industry 532220, 812191, 812199 or 812990 in] Personal and laundry services described in industry group 812 of the North American [Industrial] Industry Classification System United States Manual, United States Office of Management and Budget (NAICS), 1997[1997] 2017 edition, exclusive of (i)[(i) services rendered by massage therapists licensed pursuantLCO toNo. chapter 384a, and (ii) services rendered by an electrologist licensed pursuant to chapter 388;

4566 68 of 138 Governor's Bill No877 pursuant to chapter 384a, and (ii) services rendered by an electrologist licensed pursuant to chapter 388] death care services described in industry group 8122 of the NAICS, 2017 edition;

(EE) Notwithstanding the provisions of section 12-412, as amended by this act, except subdivision (87) of said[said] section 12-412, patient care services, as defined in subdivision (29) of this subsection by a hospital, except that "sale" and "selling" does not include such patient care services for which payment is received by the hospital during the period commencing July 1, 2001, and ending June 30, 2003;

(FF) Health and athletic club services, exclusive of (i) any such services provided without any additional charge which are included in any dues or initiation fees paid to any such club, which dues or fees are subject to tax under section 12-543, and (ii) any such services provided by a municipality or an organization that is described in Section 501(c) of the Internal Revenue Code of 1986, or any subsequent LCOcorresponding {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-051internal revenue code of 104the R01-SB.docxUnited }States, Substituteas Billfrom No.time to time amended;

877LCO correspondingNo. internal revenue code of the United States, as amended from time to time;

4566 69 of 138 Governor's Bill No.877 (GG) Motor vehicle storage services, including storage of motor homes, campers and camp trailers, other than the furnishing of space as described in subparagraph (P) of subdivision (2) of this subsection;

(KK) Pet[Pet] Animal grooming and pet[pet] animal boarding services, except[except if such services are provided as an integral part of professional veterinary services,services,] and pet obedience services;

LCO"Reconstructive {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-052surgery" ofincludes 104any R01-SB.docxsurgery }performed Substituteon Billabnormal structures caused by or related to congenital defects, developmental LCO No.

8774566 "Reconstructive70 surgery"of includes138 anyGovernor's surgeryBill performedNo.877 on abnormal structures caused by or related to congenital defects, developmental abnormalities, trauma, infection, tumors or disease, including procedures to improve function or give a more normal appearance;

[and] (OO) Car wash services, including coin-operated car washes;

[.] (PP) PrearrangedScenic ridesand thatsightseeing originatetransportation services described in thisindustry state,group provided487 byof transportationthe networkNAICS, companies.2017 edition, as amended from time to time;

As(QQ) usedReal inestate thisagent subparagraph,and "prearrangedbroker ride"services described in industry group 5312 and "transportationservices networkfor company"activities haverelated to real estate described in industry group 5313 of the sameNAICS, meanings2017 edition, as providedamended infrom sectiontime 13b-116;to time;

[.](RR) (QQ)Travel Dryarrangement cleaningand reservation services anddescribed laundryin services,industry excludinggroup coin-5615 operatedof services;the NAICS, 2017 edition, as amended from time to time;

(RR)(SS) InteriorLegal design services described in industry group 541415411 of the NAICS, 2017 edition, as amended from time to time.time;

(TT) Accounting services described in industry group 541211 and tax return preparation services described in industry group 541213 of the NAICS, 2017 edition, as amended from time to time;

(UU) Architectural services described in industry group 54131 of the NAICS, 2017 edition, as amended from time to time;

(VV) Engineering services described in industry group 54133 of the NAICS, 2017 edition, as amended from time to time;

LCO No.

4566 71 of 138 Governor's Bill No.877 (WW) Interior design services described in industry group 54141 of the NAICS, 2017 edition, as amended from time to time;

(XX) Veterinary services described in industry group 54194 of the NAICS, 2017 edition, as amended from time to time;

(YY) Sports and recreation instruction services described in industry group 61162 of the NAICS, 2017 edition, as amended from time to time;

(ZZ) Services provided by amusement and recreation establishments described in industry group 7139 of the NAICS, 2017 edition, as amended from time to time;

and (AAA) Waste management and remediation services provided by establishments described in industry group 5621 of the NAICS, 2017 edition, as amended from time to time.

18.

Section 12-412 of the general statutes is amended by adding subdivision (124) as follows (Effective January 1, 2020, and applicable to sales occurring on or after January 1, 2020):

(NEW) (124) (A) Sales of interior design services set forth in subparagraph (RR) of subdivision (37) of subsection (a) of section 12- 407, as amended by this act, that are purchased by a business for use by such business.

(B) To qualify for such exemption, each purchaser of the services exempt pursuant to the provisions of this subdivision shall present a certificate to the retailer, in such form as the commissioner may LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-053 of 104 R01-SB.docx } Substitute Bill No.

877 prescribe, certifying that the purchaser is a business and is purchasing such services for its business.

The purchaser of the services shall be liable for the tax otherwise imposed if the certificate is improperly provided to the seller, and any person who wilfully delivers a certificate that is known to be fraudulent or false in any material matter to a seller shall, in addition to any other penalty provided by law, be guilty of a class D felony.

Sec.

19.

(NEW) (Effective July 1, 2019) (a) The Commissioner of Revenue Services shall require taxpayers required to collect the tax under chapter 219 of the general statutes to enter into an agreement with an electronic payment processing company to provide automated sales tax collection and remittance, whereby such company (1) segregates an amount equal to the sales tax, if any, for each sales transaction payment processed by such company, and (2) remits such amount automatically to the Department of Revenue Services within twenty-four hours after such sales transaction.

(b) The commissioner may issue a request for proposals to evaluate companies that are eligible to provide automated sales tax collection and remittance and shall publish annually a list of such companies that are approved by the commissioner.

Sec.

20.

Section 12-704c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Any resident of this state, as defined in subdivision (1) of subsection (a) of section 12-701, subject to the tax under this chapter for any taxable year shall be entitled to a credit in determining the amount of tax liability under this chapter, for all or a portion, as permitted by this section, of the amount of property tax, as defined in this section, first becoming due and actually paid during such taxable year by such person on such person's primary residence or motor vehicle in accordance with the provisions of this section, provided in the case of a person who files a return under the federal income tax for such taxable year as an unmarried individual, a married individual filing separately LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-054 of 104 R01-SB.docx } Substitute Bill No.

877 or a head of household, one motor vehicle shall be eligible for such credit and in the case of a husband and wife who file a return under federal income tax for such taxable year as married individuals filing jointly, no more than two motor vehicles shall be eligible for a credit under the provisions of this section.

(b) (1) The credit allowed under this section shall not exceed (A) [for taxable years commencing on or after January 1, 2006, but prior to January 1, 2011, five hundred dollars;

(B)] for taxable years commencing on or after January 1, 2011, but prior to January 1, 2016, three hundred dollars;

and [(C)] (B) for taxable years commencing on or after January 1, 2016, two hundred dollars.

In the case of any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing a joint return, the credit allowed, in the aggregate, shall not exceed such [amounts] amount for each such taxable year.

(2) Notwithstanding the provisions of subsection (a) of this section, for the taxable years commencing January 1, 2017, [and January 1, 2018] to January 1, 2020, inclusive, the credit under this section shall be allowed only for a resident of this state (A) who has attained age sixty- five before the close of the applicable taxable year, or (B) who files a return under the federal income tax for the applicable taxable year validly claiming one or more dependents.

[(c) (1) (A) For taxable years commencing prior to January 1, 2000, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-two thousand five hundred dollars, the amount of the credit that exceeds one hundred dollars shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.