Connecticut 2022 Regular Session Status: In Committee 2 D cosponsors

SB 443 — AN ACT CONCERNING THE TAX INCIDENCE REPORT AND TAX INCIDENCE ANALYSES.

Last action — FILE NO. 565

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

112 added · 303 removed

112 line(s) added, 303 removed.

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General Assembly Raised Bill No.
Senate General Assembly File No.
443 February Session, 2022 LCO No.
565 February Session, 2022 Substitute Senate Bill No.
3188 Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by:
443 Senate, April 21, 2022 The Committee on Finance, Revenue and Bonding reported through SEN.
(FIN) AN ACT CONCERNING THE TAX INCIDENCE REPORT, TAX INCIDENCE ANALYSES AND THE DISCLOSURE OF RETURNS AND RETURN INFORMATION.
FONFARA of the 1st Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT CONCERNING THE TAX INCIDENCE REPORT AND TAX INCIDENCE ANALYSES.
(a) The Commissioner of Revenue Services shall, on or before February 15, [2022] 2023, and biennially thereafter, submit to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, and post on the department's Internet web site a report on the overall incidence of the income tax, sales and excise taxes, the corporation business tax and propertytax,foreachofthemostrecenttentaxyearsforwhichcomplete data are available.
(a) The Commissioner of Revenue Services shall, on or before [February 15, 2022]December 15,2023,andbiennially thereafter,submit to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, and post on the department's Internet web site a report on the overall incidence of the income tax, sales and excise taxes, the corporation business tax and property tax, for each of the most recent ten tax years forwhichcompletedataareavailable.Thereportshallincludeincidence projections for each such tax and shall present information on the distribution of the tax burden as follows:
The report shall include incidence projections for each such tax and shall present information on the distribution of the tax burden as follows:
sSB443 / File No.
(1) For individuals:
565 1 sSB443 File No.
LCO No.
565 (1) For individuals:
3188 1 of 11 Raised Bill No.443 (A) Income classes, including income distribution expressed for (i) every ten percentage points, (ii) the top five per cent of all income taxpayers, and (iii) the top one per cent of all income taxpayers;
(A) Income classes, including income distribution expressed for (i) every ten percentage points, (ii) the top five per cent of all income taxpayers, and (iii) the top one per cent of all income taxpayers;
(NEW) (Effective July 1, 2022) The cochairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding may request the Commissioner of Revenue Services to prepare an incidence impact analysis of any bill or proposal to change any tax system in effect, which bill or proposal is projected by the legislative Office of Fiscal Analysis to increase or decrease tax revenue or redistribute the tax burden, by more than twenty million dollars.
(NEW) (Effective July 1, 2022) The cochairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding may request the Commissioner of Revenue Services to prepare an incidence impact analysis of any bill or proposal to change any tax system in effect, which bill or proposal is projected by the legislative Office of Fiscal Analysis to increase or decrease tax revenue by more than twenty million dollars or redistribute the tax burden by more than twenty million dollars.
(1) Present information using system-wide measures, by income classes, taxpayer characteristics or other relevant categories;
(1) Present information using system-wide measures, by income sSB443 / File No.
(2) Include an analysis of the effect of the bill or proposal on LCO No.
565 2 sSB443 File No.
3188 2 of 11 Raised Bill No.
565 classes, taxpayer characteristics or other relevant categories;
443 representative taxpayers;
(2) Include an analysis of the effect of the bill or proposal on representative taxpayers;
Sec.
This act shall take effect as follows and shall amend the following sections:
3.
Section 12-15 of the 2022 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2022):
(a) No officer or employee, including any former officer or former employee, of the state or of any other person who has or had access to returns or return information in accordance with subdivision (12) of subsection (b) of this section shall disclose or inspect any return or return information, except as provided in this section.
(b) The commissioner may disclose:
(1) [returns] Returns or return information to (A) an authorized representative of another state agency or office, upon written request by the head of such agency or office, when required in the course of duty or when there is reasonable cause to believe that any state law is being violated, or (B) an authorizedrepresentative of an agency or office of the UnitedStates, uponwrittenrequest by theheadofsuchagency or office, when required in the course of duty or when there is reasonable cause to believe that any federal law is being violated, provided no such agency or office shall disclose such returns or return information, other than in a judicial or administrative proceeding to which such agency or office is a party pertaining to the enforcement of state or federal law, as the case may be, in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer except that the names and addresses of jurors or potential jurors and the fact that the names were derived from the list of taxpayers pursuant to chapter 884 LCO No.
3188 3 of 11 Raised Bill No.443 may be disclosed by the Judicial Branch;
(2) [returns] Returns or return information to the Auditors of Public Accounts, when required in the course of duty under chapter 23;
(3) [returns] Returns or return information to tax officers of another state orofa Canadianprovince or ofapoliticalsubdivisionof such other state or province or of the District of Columbia or to any officer of the United States Treasury Department or the United States Department of Health and Human Services, authorized for such purpose in accordance with an agreement between this state and such other state, province, political subdivision, the District of Columbia or department, respectively, when required in the administration of taxes imposed under the laws of such other state, province, political subdivision, the District of Columbia or the United States, respectively, and when a reciprocal arrangement exists;
(4) [returns] Returns or return information in any action, case or proceeding in any court of competent jurisdiction, when the commissioner or any other state department or agency is a party, and when such information is directly involved in such action, case or proceeding;
(5) [returns] Returns or return information to a taxpayer or its authorized representative, upon written request for a return filed by or return information on such taxpayer;
(6) [returns] Returns or return information to a successor, receiver, trustee, executor, administrator, assignee, guardian or guarantor of a taxpayer, when such person establishes, to the satisfaction of the commissioner, that such person has a material interest which will be affected by information contained in such returns or return information;
(7) [information] Information to the assessor or an authorized representative of the chief executive officer of a Connecticut municipality, when the information disclosed is limited to (A) a list of real or personal property that is or may be subject to property taxes in LCO No.
3188 4 of 11 Raised Bill No.443 such municipality, or (B) a list containing the name of each person who is issued any license, permit or certificate which is required, under the provisions of this title, to be conspicuously displayed and whose address is in such municipality;
(8) [real] Real estate conveyance tax return information or controlling interest transfer tax return information to the town clerk or an authorized representative of the chief executive officer of a Connecticut municipality to which the information relates;
(9) [estate] Estate tax returns and estate tax return information to the Probate Court Administrator or to the court of probate for the district within which a decedent resided at the date of the decedent's death, or within which the commissioner contends that a decedent resided at the date of the decedent's death or, if a decedent died a nonresident of this state, in the court of probate for the district within which real estate or tangible personal property of the decedent is situated, or within which thecommissioner contendsthat realestateortangible personalproperty of the decedent is situated;
(10) [returns] Returns or return information to [the] (A) the Secretary of the Office of Policy and Management for purposes of subsection (b) of section 12-7a, [and] (B) the Office of Fiscal Analysis for purposes of, and subject to the provisions of, subdivision (2) of subsection (f) of section 12-7b, and (C) upon written request, the president pro tempore of the Senate, the speaker of the House of Representatives, the majority leader oftheSenate, the majorityleaderoftheHouse ofRepresentatives, the minority leader of the Senate, the minority leader of the House of Representatives and the cochairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, for purposes of evaluating and formulating tax policy;
(11) [return] Return information to the Jury Administrator, when the information disclosed is limited to the names, addresses, federal Social Security numbers and dates of birth, if available, of residents of this LCO No.
3188 5 of 11 Raised Bill No.443 state, as defined in subdivision (1) of subsection (a) of section 12-701;
(12) [returns] Returns or return information to any person to the extent necessary in connection with the processing, storage, transmission or reproduction of such returns or return information, and the programming, maintenance, repair, testing or procurement of equipment, or the providing of other services, for purposes of tax administration;
(13) [without] Without written request and unless the commissioner determines that disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation, returns and return information which may constitute evidence of a violation of any civil or criminal law of this state or the United States to the extent necessary to apprise theheadofsuchagency or office chargedwiththeresponsibility of enforcing such law, in which event the head of such agency or office may disclose such return information to officers and employees of such agency or office to the extent necessary to enforce such law;
(14) [names] Names and addresses of operators, as defined in section 12-407, to tourism districts, as defined in section 10-397;
(15) [names] Names of each licensed dealer, as defined in section 12- 285, and the location of the premises covered by the dealer's license;
(16) [to] To a tobacco product manufacturer that places funds into escrow pursuant to the provisions of subsection (a) of section 4-28i, return information of a distributor licensed under the provisions of chapter 214 or chapter 214a, provided the information disclosed is limited to information relating to such manufacturer's sales to consumers within this state, whether directly or through a distributor, dealer or similar intermediary or intermediaries, of cigarettes, as defined in section 4-28h, and further provided there is reasonable cause to believe that such manufacturer is not in compliance with section 4- 28i;
(17) [returns] Returns, which shall not include a copy of the return LCO No.
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3188 6 of 11 Raised Bill No.443 filed with the commissioner, or return information for purposes of section 12-217z;
(18) [returns] Returns or return information to the State Elections Enforcement Commission, upon written request by said commission, when necessary to investigate suspected violations of state election laws;
(19) [returns] Returns or return information for purposes of, and subject to the conditions of, subsection (e) of section 5-240;
and (20) [to] To the extent allowable under federal law, return information to another state agency or to support a data request submitted through CP20 WIN, established in section 10a-57g, in accordance with the policies and procedures of CP20 WIN for the purposes of evaluation or research, provided the recipient of such data enters into a data sharing agreement pursuant to section 4-67aa if such recipient is not a state agency.
(c) Any federal returns or return information made available to the commissioner in accordance with a written agreement between the commissioner and the Internal Revenue Service concerning exchange of information for tax administration purposes, shall not be open to inspection by or disclosed to any individual or disclosed in any manner other than as permitted under the provisions of Section 6103 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended.
(d) (1) The commissioner may, upon request, verify whether or not any license, permit or certificate required under the provisions of this title to beconspicuously displayedhasbeen issued by thecommissioner to any particular person.
(2) The commissioner may make public the names and municipality of residence or postal district of persons entitled to tax refunds for purposes of notifying them when the commissioner, after reasonable LCO No.
3188 7 of 11 Raised Bill No.443 effort and lapse of time, has been unable to locate such persons.
(e) The commissioner may refuse to open to inspection or disclose to any person any returns or return information made available to the commissioner by any tax officer of another state, a Canadian province or political subdivision of such other state or province or of the District of Columbia or by any officer of the United States Treasury Department or the United States Department of Health and Human Services in accordance with a written agreement between this state and such other state, province, political subdivision, the District of Columbia or department, respectively, which agreement provides that the disclosure ofsuchreturnsor returninformationby the commissioner isprohibited.
In addition, he may refuse to open to inspection or disclosure to any state or United States agency or office described in subdivision (1) of subsection (b) of this section, returns or return information unless such agency or office shall have:
(1) Established and maintained, to the satisfaction of the commissioner, a permanent system of standardized records with respect to any request, the reason for such request, and the date of such request made by or of it and any disclosure or inspection of returns or return information made by or to it;
(2) [established] Established and maintained, to the satisfaction of the commissioner, a secure area or place in which such returns or return information shall be stored;
(3) [restricted] Restricted, to the satisfaction of the commissioner, access to the returns or return information only to persons whose duties or responsibilities require access and to whom disclosure may be made under this section or by whom inspection may be made under this section;
(4) [provided] Provided such other safeguards which the commissioner prescribes as necessary or appropriate to protect the confidentiality of the returns or return information;
LCO No.
3188 8 of 11 Raised Bill No.443 (5) [furnished] Furnished a report to the commissioner, at such time and containing such information as the commissioner may prescribe, which describes the procedures established and utilized by such agency or office for ensuring the confidentiality of returns and return information required by this subsection;
and (6) [upon] Upon completion of use of such returns or return information, returned to the commissioner such returns or return information, along with any copies made therefrom, or makes such returns or return information undisclosable in such manner as the commissioner may prescribe and furnishes a written report to the commissioner identifying the returns or return information that were made undisclosable.
(f) Returns and return information shall, without written request, be open to inspection by or disclosure to:
(1) Officers and employees of the Department of Revenue Services whose official duties require such inspection or disclosure for tax administration purposes;
(2) officers or employees of an agency or office in accordance with subdivision (1) or (13) of subsection (b) of this section whose official duties require such inspection;
and (3) officers or employees of any person in accordance with subdivision (12) of subsection (b) of this section, whose duties require such inspection or disclosure.
(g) Any person who violates any provision of this section shall be fined not more than one thousand dollars or imprisoned not more than one year, or both.
(h) For purposes of this section:
(1) "Return" means any tax or information return, declaration of estimated tax, claim for refund, license application, permit application, registration application or other application required by, or provided for or permitted under, the provisions of this or any other title which is filed with the commissioner by, on behalf of, or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to, LCO No.
3188 9 of 11 Raised Bill No.443 or part of, the return so filed.
(2) "Return information" means a taxpayer's identity, 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 underreportings, tax overreportings, or tax payments, whether the taxpayer's return was, is being, or will be examined or subjected to other investigation or processing, or any other data received by, recorded by, prepared by, furnished to, or collected by the commissioner with respect to a return or with respect to the determination of the existence, or possible existence, of liability of any person for any tax, penalty, interest, fine, forfeiture, or other imposition,or offense.
"Returninformation"doesnot include data in a form which cannot be associated with, or otherwise identify, directly or indirectly, a particular taxpayer.
Nothing in the preceding sentence, or in any other provision of law, shall be construed to require the disclosure of standards used or to be used for the selection of returns for examination, or data used or to be used for determining such standards or the disclosure of the identity of a confidential informant, whether or not a civil or criminal tax investigation has been undertaken or completed.
(3) "Disclosure" means the making known to any person, in any manner whatever, a return or return information.
(4) "Inspection" means any examination of a return or return information.
(5) "Tax administration" means the administration, management, conduct, direction and supervision of the execution and application of the tax laws of this state, and the development and formulation of tax policyrelatingtoexistingorproposedtaxlawsofthisstate,andincludes assessment, collection, enforcement, litigation,publication and statistical gathering functions under such laws.
LCO No.
3188 10 of 11 Raised Bill No.
443 This act shall take effect as follows and shall amend the following sections:
2 July 1, 2022 New section Sec.
2 July 1, 2022 New section Statement of Legislative Commissioners:
3 July 1, 2022 12-15 Statement of Purpose:
In Section 2, "by more than twenty million dollars" was added after "tax revenue" for clarity.
To (1) require additional data to be included in the tax incidence report, (2) require the Commissioner of Revenue Services to provide incidence impact analyses of certain legislative bills or proposals, and (3) authorize the disclosure of returns or return information to certain members of the General Assembly.
FIN Joint Favorable Subst.
[Proposed deletions are enclosed in brackets.
sSB443 / File No.
Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.
565 3 sSB443 File No.
3188 11 of 11
565 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 adjusts the content and deadline for the biennial tax incidence study by the Department of Revenue Services, does not result in any fiscal impact to the state or municipalities.
1 The Out Years State Impact:
None Municipal Impact:
None 1Under both the bill and current law the study would next be due in FY 24, with an associated cost of approximately $375,000 assuming it is produced by a third party.
sSB443 / File No.
565 4 sSB443 File No.
565 OLR Bill Analysis sSB 443 AN ACT CONCERNING THE TAX INCIDENCE REPORT AND TAX INCIDENCE ANALYSES.
SUMMARY This bill (1) expands the scope of the tax incidence study the Department of Revenue Services (DRS) must biennially submit to the legislature and post on its website and (2) advances the deadline for the next study, from February 15, 2024, to December 15, 2023.
The bill also authorizes the co-chairpersons of the Finance, Revenue and Bonding Committee to ask the DRS commissioner to prepare an incidence impact analysis of any bill or proposal that the Office of Fiscal Analysis projects will increase or decrease tax revenue, or redistribute the tax burden, by more than $20 million.
It outlines specific components that DRS must include in these analyses.
EFFECTIVE DATE:
July 1, 2022 TAX INCIDENCE STUDY By law, the DRS tax incidence study must provide the overall incidence of the income tax, sales and excise taxes, corporation business tax, and property tax.
The bill requires that it (1) provide this information for each of the most recent 10 tax years for which complete data are available and (2) include incidence projections for each of these taxes.
Under current law, the report must present information on the tax burden distribution for individual taxpayers by income classes, including income distribution by income deciles (i.e., every 10 percentage points).
The bill additionally requires it to:
1.
present this information for the top 1% and 5% of all income sSB443 / File No.
565 5 sSB443 File No.
565 taxpayers;
and 2.
provide, for each income class, the (a) percentage of taxpayers who are homeowners, single, married, or seniors or have children;
(b) average market value of a home;
and (c) average monthly rent.
INCIDENCE IMPACT ANALYSES Under the bill, the incidence impact analyses prepared by DRS must:
1.
present information using systemwide measures, by income classes, taxpayer characteristics, or other relevant categories;
2.
analyze the bill or proposal’s effect on representative taxpayers;
3.
to the extent data are available, report the incidence effects the commissioner believes would result if the bill or proposal were enacted;
and 4.
state the incidence assumptions used to determine any tax burden distribution or redistribution.
COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Substitute Yea 36 Nay 14 (04/05/2022) sSB443 / File No.
565 6
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Action History

  1. FILE NO. 565

  2. SENATE CALENDAR NUMBER 404

  3. FAV. RPT., TAB. FOR CAL., SEN.

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/20/22

  6. FILED WITH LCO

  7. Joint Favorable Substitute

  8. PUBLIC HEARING 0321

  9. REF. TO JOINT COMM. ON Finance, Revenue and Bonding

Sponsors

Sponsorship breakdown

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5 sponsors · 0 co-sponsors · 182 not signed on

Sponsors (5)

Co-sponsors (0)

None.

Not signed on (182)

182 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 443?
SB 443 is sponsored by Hennessy, John "jack" F., Kate Farrar (Democratic), Winkler, Michael A., Josh Elliott (Democratic), and Marilyn Moore.
What is the current status of SB 443?
This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 443?
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