SB 1077 — AN ACT CONCERNING THE DEPARTMENT OF REVENUE SERVICES' RECOMMENDATIONS FOR TAX ADMINISTRATION AND REVISIONS TO THE TAX AND RELATED STATUTES.

LCOSec. {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0111 of 20 R01-SB.docx } Substitute Bill No.

1077 Sec.

Section 53a-22 of the general statutes is repealed and the followingsSB1077 is/ substitutedFile inNo. lieu thereof (Effective from passage):

665 11 sSB1077 File No.

665 following is substituted in lieu thereof (Effective from passage):

or (2) defend himself or herself or a third person from the use or imminent use ofphysicalforcewhile effectingorattemptingeffectingorattemptingtoeffectanarrestorwhile toeffectanarrestorwhile preventing or attempting to prevent an escape.

or (2) (A) effect an arrest of a person whom LCOhe {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01012or ofshe 20reasonably R01-SB.docxbelieves }has Substitutecommitted Billor attempted to commit a sSB1077 / File No.

1077665 he12 orsSB1077 sheFile reasonablyNo. believes has committed or attempted to commit a felony which involved the infliction or threatened infliction of serious physical injury, or (B) prevent the escape from custody of a person whom he or she reasonably believes has committed a felony which involved the infliction or threatened infliction of serious physical injury and if, where feasible under this subdivision, he or she has given warning of his or her intent to use deadly physical force.

665 felony which involved the infliction or threatened infliction of serious physical injury, or (B) prevent the escape from custody of a person whom he or she reasonably believes has committed a felony which involved the infliction or threatened infliction of serious physical injury and if, where feasible under this subdivision, he or she has given warning of his or her intent to use deadly physical force.

(f) A private person acting on his or her own account is justified in using reasonable physical force upon another person when and to the extent that he or she reasonably believes such to be necessary to effect an arrest or to prevent the escape from custody of an arrested person LCOwhom {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0113he ofor 20she R01-SB.docxreasonably }believes Substituteto Billhave committed an offense and sSB1077 / File No.

1077665 whom13 hesSB1077 orFile sheNo. reasonably believes to have committed an offense and who in fact has committed such offense;

665 who in fact has committed such offense;

or (2) defend himself or herself or a third person from the use or imminent use of physical force while effecting or attempting to effect an arrest or while preventing or attempting to prevent an LCOescape. {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0114 of 20 R01-SB.docx } Substitute Bill No.

1077sSB1077 escape./ File No.

(c)665 (1)14 ExceptsSB1077 asFile providedNo. in subsection (d) of this section, a peace officer [, special policeman appointed under section 29-18b] or an authorized official of the Department of Correction or the Board of Pardons and Paroles is justified in using deadly physical force upon another person for the purposes specified in subsection (b) of this sectiononly whenhisor her actionsare objectively reasonableunderthe given circumstances at that time, and:

665 (c) (1) Except as provided in subsection (d) of this section, a peace officer [, special policeman appointed under section 29-18b] or an authorized official of the Department of Correction or the Board of Pardons and Paroles is justified in using deadly physical force upon another person for the purposes specified in subsection (b) of this sectiononly whenhisor her actionsare objectively reasonableunderthe given circumstances at that time, and:

(2) For purposes of evaluating whether actions of a peace officer [, special policeman appointed under section 29-18b] or an authorized official of the Department of Correction or the Board of Pardons and Paroles are reasonable under subdivision (1) of this subsection, factors to be considered include, but are not limited to, whether (A) the person upon whom deadly physical force was used possessed or appeared to possess a deadly weapon, (B) the peace officer [, special policeman LCOappointed {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-010715under section 29-18b] or authorized official of 20the R01-SB.docxDepartment }of SubstituteCorrection Billor the Board of Pardons and Paroles engaged sSB1077 / File No.

1077665 appointed15 undersSB1077 sectionFile 29-18b]No. or authorized official of the Department of Correction or the Board of Pardons and Paroles engaged in reasonable deescalation measures prior to using deadly physical force, and (C) any unreasonable conduct of the peace officer [, special policeman appointed under section 29-18b] or authorized official of the Department of Correction or the Board of Pardons and Paroles led to an increased risk of an occurrence of the situation that precipitated the use of such force.

665 in reasonable deescalation measures prior to using deadly physical force, and (C) any unreasonable conduct of the peace officer [, special policeman appointed under section 29-18b] or authorized official of the Department of Correction or the Board of Pardons and Paroles led to an increased risk of an occurrence of the situation that precipitated the use of such force.

(1) He or she reasonably believes such use to be necessary to defend himself or herself or a third person from what he or shereasonably believesto bethe use or imminent use of deadly physical LCOforce; {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01016 of 20 R01-SB.docx } Substitute Bill No.

1077or force;(2) he or she is directed or authorized by such peace officer [, special policeman] or official to use deadly physical force, unless he or sSB1077 / File No.

or665 (2)16 hesSB1077 orFile sheNo. is directed or authorized by such peace officer [, special policeman] or official to use deadly physical force, unless he or she knows that the peace officer [, special policeman] or official himself or herself is not authorized to use deadly physical force under the circumstances.

665 she knows that the peace officer [, special policeman] or official himself or herself is not authorized to use deadly physical force under the circumstances.

Section 53a-167b of the general statutes is repealed and the LCOfollowing {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-0117is ofsubstituted 20in R01-SB.docxlieu }thereof Substitute(Effective Billfrom No.passage):

1077(a) followingA person is substitutedguilty inof lieufailure thereofto (Effectiveassist froma passage):peace officer [, special sSB1077 / File No.

(a)665 A17 personsSB1077 isFile guiltyNo. of failure to assist a peace officer [, special policeman] or firefighter when, commanded by a peace officer [, special policeman appointed under section 29-18b] or firefighter authorized to command assistance, such person refuses to assist such peace officer [, special policeman] or firefighter in the execution of such peace officer's [, special policeman's] or firefighter's duties.

665 policeman] or firefighter when, commanded by a peace officer [, special policeman appointed under section 29-18b] or firefighter authorized to command assistance, such person refuses to assist such peace officer [, special policeman] or firefighter in the execution of such peace officer's [, special policeman's] or firefighter's duties.

(a) A person is guilty of assault of public safety, emergency medical, public transit or health care personnel when, with intent to prevent a reasonably identifiable peace officer, [special policeman appointed under section 29-18b,] firefighter or employee of an emergency medical service organization, as defined in section 53a-3, emergency room physician or nurse, health care employee as defined in section 19a-490q, employee of the Department of Correction, member or employee of the Board of Pardons and Paroles, probation officer, employee of the Judicial Branch assigned to provide pretrial secure detention and programming services to juveniles accused of the commission of a delinquent act, liquor control agent, state or municipal animal control officer, security officer, employee of the Department of Children and Families assigned to provide direct services to children and youths in the care or custody of the department, employee of a municipal police department assigned to provide security at the police department's lockup and holding facility, active individual member of a volunteer canine search and rescue team, as defined in section 5-249, or public transit employee from performing his or her duties, and while such peace officer, [special policeman,] firefighter, employee, physician, nurse, health care employee, member, liquor control agent, animal LCOcontrol {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01018officer, security officer, probation officer or active individual member is acting in the performance of 20his R01-SB.docxor }her Substituteduties, Bill(1) such person causes physical injury to such peace officer, [special policeman,] sSB1077 / File No.

1077665 control18 officer,sSB1077 securityFile officer,No. probation officer or active individual member is acting in the performance of his or her duties, (1) such person causes physical injury to such peace officer, [special policeman,] firefighter, employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probation officer or active individual member, or (2) such person throws or hurls, or causes to be thrown or hurled, any rock, bottle, can or other article, object or missile of any kind capable of causing physical harm, damage or injury, at such peace officer, [special policeman,] firefighter, employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probationofficer or activeindividualmember,or (3)suchperson uses or causes to be used any mace, tear gas or any like or similar deleterious agent against such peace officer, [special policeman,] firefighter, employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probation officer or active individual member, or (4) such person throws or hurls, or causes to be thrown or hurled, any paint, dye or other like or similar staining, discoloring or coloring agent or any type of offensive or noxious liquid, agent or substance at such peace officer, [special policeman,] firefighter, employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probation officer or active individual member, or (5) such person throws or hurls, or causes to be thrown or hurled, any bodily fluid including, but not limited to, urine, feces, blood orsalivaatsuchpeace officer,[specialpoliceman,]firefighter,employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probation officer or active individual member.

For665 thefirefighter, purposesemployee, ofphysician, thisnurse, section,member, "publicliquor transitcontrol employee"agent, meansanimal acontrol personofficer, employedsecurity byofficer, theprobation state,officer aor politicalactive subdivisionindividual ofmember, theor state,(2) asuch transitperson districtthrows formedor underhurls, chapteror 103acauses to be thrown or ahurled, personany withrock, whombottle, thecan Commissioneror other article, object or missile of Transportationany haskind contractedcapable inof accordancecausing withphysical sectionharm, 13b-34damage toor provideinjury, transportationat servicessuch whopeace operatesofficer, a[special vehiclepoliceman,] firefighter, employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probationofficer or vesselactiveindividualmember,or providing(3)suchperson publicuses ferryor servicecauses to be used any mace, tear gas or fixedany routelike busor servicesimilar deleterious agent against such peace officer, [special policeman,] firefighter, employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probation officer or performsactive dutiesindividual directlymember, relatedor (4) such person throws or hurls, or causes to thebe operationthrown ofor suchhurled, vehicleany paint, dye or vessel,other like or who,similar asstaining, partdiscoloring ofor thecoloring provisionagent or any type of publicoffensive railor service,noxious isliquid, aagent trainor operator,substance conductor,at inspector,such signalpeace officer, [special policeman,] firefighter, employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probation officer or active individual member, or (5) such person throws or stationhurls, agentor andcauses LCOto {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01019be ofthrown 20or R01-SB.docxhurled, }any Substitutebodily Billfluid No.including, but not limited to, urine, feces, blood orsalivaatsuchpeace officer,[specialpoliceman,]firefighter,employee, physician, nurse, member, liquor control agent, animal control officer, security officer, probation officer or active individual member.

1077For the purposes of this section, "public transit employee" means a person employed by the state, a political subdivision of the state, a transit district formed under chapter 103a or a person with whom the Commissioner of Transportation has contracted in accordance with section 13b-34 to provide transportation services who operates a vehicle or vessel providing public ferry service or fixed route bus service or performs duties directly related to the operation of such vehicle or vessel, or who, as part of the provision of public rail service, is a train operator, conductor, inspector, signal person or station agent and "security officer" has the same meaning as provided in section 29-152u.

ThissSB1077 act/ shallFile takeNo. effect as follows and shall amend the following sections:

665 19 sSB1077 File No.

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

-LCO LCOsSB1077 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01077-/ 20File ofNo. 20 R01-SB.docx }

665 20 sSB1077 File No.

665 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill, which makes a number of clarifying, technical, and procedural tax-related changes, does not result in any fiscal impact to the state or municipalities.

The Out Years State Impact:

None Municipal Impact:

None sSB1077 / File No.

665 21 sSB1077 File No.

665 OLR Bill Analysis sSB 1077 AN ACT CONCERNING THE DEPARTMENT OF REVENUE SERVICES' RECOMMENDATIONS FOR TAX ADMINISTRATION AND REVISIONS TO THE TAX AND RELATED STATUTES.

SUMMARY This bill makes the following tax-related changes:

1.

codifies an existing Department of Revenue Services (DRS) policy by allowing pass-through entities to elect to remit composite income taxon behalf of their nonresident members (§§ & 2);

2.

makes technical corrections to the estate and gift tax laws (§§ 3- 5);

3.

modifies the conveyance tax credit that applies against the personal income tax (§ 6);

4.

generally prohibits taxpayers from filing refund claims for closed audit periods (§ 7);

5.

establishes conditions under which taxpayers must file amended income tax returns, and may file claims for refunds, as a result of certain changes and corrections made by another qualifying jurisdiction (§§ 8 & 9);

6.

modifies the responsible party penalty for income tax withholding (§ 10);

7.

establishes conditions under which the DRS commissioner and DRS special police may disclose specified tax return information in connection with criminal investigations (§§ 11 & 12);

and sSB1077 / File No.

665 22 sSB1077 File No.

665 8.

designates DRS special police as “peace officers,” thus giving them certain powers and legal protections under state law (§ 13).

EFFECTIVE DATE:

Upon passage, except the technical corrections to the estate and gift tax laws are effective October 1, 2021, and the amended tax return provisions apply to tax years beginning on or after January 1, 2021.

§§ 1 & 2 — NONRESIDENT COMPOSITE INCOME TAX RETURNS Composite Return Election The bill codifies an existing DRS policy by allowing pass-through entities (PE) (i.e., affected business entities) to elect, on an annual basis, to remit composite income tax on behalf of their nonresident members.

(Under the policy, if a PE makes this election, its nonresident members are excused from filing their own Connecticut personal income tax returns if they have no Connecticut source income other than from the electing PE.) Under the bill, the PEs must (1) make this election by the due date or extended due date for remitting their PE tax returns and (2) remit the composite returns subject to any requirements and conditions the DRS commissioner prescribes in the return form and instructions.

Calculating the Tax Due A PE that makes this election must remit to DRS the composite income tax, plus any applicable interest and penalties, on behalf of each of its nonresident individual members.

Under the bill, these payments are considered personal income tax payments by the nonresident individuals for the taxable period.

The composite income tax due on behalf of each nonresident individual member is (1) each member’s distributive share of the PE’s Connecticut source income multiplied by 6.99%, minus (2) each nonresident member’s PE tax credit.

The amount due on behalf of any member may not be less than zero.

Composite income tax payments are due at the same time as PE tax payments, and subject to the same penalties and interest.

Nonresident Filing and Payment Requirements sSB1077 / File No.

665 23 sSB1077 File No.

665 Under the bill, if the only Connecticut source income for the nonresident member (or in the case of joint filers, the nonresident member and spouse) is from one or more electing PEs, the composite income tax return and payment remitted by the PE on his or her behalf satisfies his or her Connecticut income tax filing and payment requirements.

But the nonresident member (or member and spouse) is not excused from filing a separate Connecticut income tax return if he or she has Connecticut source income from sources other than the electing PE.

Any such member must receive credit for the composite income tax payment made by the PE on his or her behalf.

In either case, the DRS commissioner may make any deficiency assessmentsagainstthePEorthemember,butthemember’sassessment must be limited to his or her share of the deficiency.

These deficiency assessments generally must be made within three years after the PE annual return’s filing, except as provided under existing law for income tax collections in which a taxpayer has not filed a return, committed fraud, or otherwise intended to evade the taxes due.

§§ 3-5 — TECHNICAL CORRECTIONS TO THE ESTATE AND GIFT TAX LAWS The bill reestablishes definitions of “federal basic exclusion amount” for purposes of the estate and gift tax laws and corrects a reference to the taxable threshold for filing estate tax returns with the DRS commissioner.

Under the bill, “the federal basic exclusion amount” is the dollar amount publishedannually by theInternalRevenue Service (1)at which a decedent would be required to file a federal estate tax return based on the value of his or her gross estate and federal taxable gifts, or for the gift tax, (2) over which a donor would owe federal gift tax based on the value ofthedonor’sfederally taxablegifts.Thesame definitions applied under prior law.

§ 6 — CONVEYANCE TAX CREDIT AGAINST THE INCOME TAX Current law allows taxpayers who paid conveyance tax at the 2.25% marginal rate to claim a property tax credit against their state income sSB1077 / File No.

665 24 sSB1077 File No.

665 taxliabilitybasedontheamounttheypaidinconveyancetaxatthisrate.

The bill instead allows them to claim a credit equal to the difference between the 2.25% rate and the 1.25% rate.

(By law, the 2.25% rate applies to any portion of a residential dwelling’s sales price that exceeds $2.5 million;

the 1.25% rate applies to any portion that exceeds $800,000 and is less than or equal to $2.5 million.) As under existing law, taxpayers may use the conveyance tax payment as the basis for the property tax credit for three years, beginning in the third tax year after the year in which the taxpayer paid the conveyance tax.

The credit in each year cannot exceed 33.3% of the eligible tax payment.

The bill also makes technical changes.

§ 7 — LIMITATION ON CLAIMS FOR REFUNDS FOR CLOSED AUDIT PERIODS The bill generally prohibits taxpayers from filing refund claims for tax periods for which the results of any civil audit, investigation, examination, or reexamination conducted by the DRS commissioner have become final by operation of law or by exhaustion of all available administrative and judicial rights of appeal.

Under the bill, the period covered bytheaudit, investigation,examination,or reexaminationmust be closed and the taxpayer may not file any additional refund claims for the period, except for specified refund claims authorized under existing corporation business and personal income tax laws.

§§ 8 & 9 — INCOME TAX REFUNDS DUE TO CHANGES MADE BY ANOTHER JURISDICTION By law, taxpayers must file an amended personal income tax return if they claimed a credit for income tax paid to a qualifying jurisdiction (e.g., another state) on their original return and the tax officials or courts of the qualifying jurisdiction made a change to, or a correction that changes, the amount of the taxpayer’s allowable credit (and thus changes the amount of Connecticut income tax due).

The bill additionally requires taxpayers who claimed this credit to file an amended return for any tax year in which the tax officials or courts of the qualifying jurisdiction issued an assessment against the taxpayer for failing to file an income tax return with the jurisdiction.

sSB1077 / File No.

665 25 sSB1077 File No.

665 As under existing law, taxpayers must file these amended returns within 90 days after the final determination of the amount of tax due to the other jurisdiction.

Under the bill, if a taxpayer files an amended return as a direct result of paying such an assessment to a qualifying jurisdiction, the taxpayer is eligible for a refund for any resulting Connecticut income tax overpayment only if the amended returnis filed within five years after the original Connecticut income tax return was due.

Amended returns filed more than five years after this date are ineligible for a refund under the bill.

§ 10 — RESPONSIBLE PERSON PENALTY FOR WITHHOLDING TAX By law, anyone required to collect, truthfully account for, and pay over Connecticut personal income tax who willfully fails to do so, or who willfully attemptsto evade or defeat the tax or its payment, is liable for a penalty equal to the total amount of tax evaded or not collected, accounted for, or paid over.

The bill additionally makes them liable for any penalty or interest attributable to these actions.

Under the bill, the penalty amount for which a person may be personally liable under this provision must be collected according to existing state income tax collection laws.

§§ 11 & 12 — AUTHORIZATION TO SHARE RETURN INFORMATION IN CONNECTION WITH CRIMINAL INVESTIGATIONS The bill allows DRS special police, in connection with their official criminal tax investigation duties and the enforcement of any state criminal law, to disclose return information if doing so is necessary to obtain information that is not otherwise reasonably available (see BACKGROUND).

The bill also allows the DRS commissioner, subject to any terms and conditions he prescribes, to disclose returns and return information to authorized members of organized local police departments upon a written request by the department’s police chief.

The request must:

1.

establish the return or return information’s relevance to an authorized investigation into a state criminal law violation being sSB1077 / File No.

665 26 sSB1077 File No.

665 conducted by the department;

2.

establish that no other source of such information is available to the department;

and 3.

include the name of each department member who will be authorized to receive the information.

The DRS commissioner may disclose the information if he deems it to be relevant to the investigation.

The bill prohibits any member of the police department who receives the information from disclosing it except in connection with a criminal prosecution, including related judicial proceedings, when the information is directly involved in and necessary to the prosecution.

Violators are subject to a fine up to $1,000, up to one year in prison, or both.

§§ 13-20 — DRS SPECIAL POLICE The bill expands the definition of “peace officer” to include DRS special police and makes conforming changes.

Under current law, DRS special police have many, but not all, the powers and protections afforded to peace officers.

By designating them as peace officers, the bill specifically allows them to, among other things:

1.

use a hand-held cellphone while driving while performing official duties within the scope of their employment (CGS § 14- 296aa);

2.

be considered peace officers for purposes of the state’s Blue Alert system, which can be used to apprehend anyone suspected of killing or seriously injuring a peace officer or locate any officer who is missing (CGS § 29-1k);

3.

obtain a motor vehicle’s event data recorder pursuant to a search warrant (CGS § 14-164aa);

and 4.

be considered peace officers subjected to a substantial risk of bodily injury at the scene of 1st degree arson (CGS § 53a-111).

sSB1077 / File No.

665 27 sSB1077 File No.

665 By law, the DRS special police are appointed by the emergency services and public protection commissioner and have all the powers of state police.

BACKGROUND Tax Returns and Return Information By law, a “return” is any of the following filed with the DRS commissioner by, on behalf of, or with respect to, anyone:

(1) a tax or information return;

(2) an estimated tax declaration;

(3) a refund claim;

or (4) any license, permit, registration, or other application.

The term also covers amendments or supplements, including supporting schedules, attachments, or lists that supplement or are part of a filed return.

“Return information” includes:

1.

a taxpayer’s identity;

2.

the nature, source, or amount of the taxpayer’s income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax collected or withheld, tax under- or over-reporting, or tax payments;

and 3.

any other data received, recorded, prepared, or collected by or furnished to the DRS commissioner regarding (a) a return or (b) any determination of liability for a tax, penalty, interest, fine, forfeiture, or other imposition or offense (CGS § 12-15(h)(1) & (2)).

COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Yea 46 Nay 0 (04/22/2021) sSB1077 / File No.

665 28