HB 5481 — AN ACT PROVIDING GRANTS FOR TOURISM PUBLIC SAFETY FROM REVENUE COLLECTED FROM THE OCCUPANCY AND MEALS TAX.

House of Representatives General Assembly SubstituteFile Bill No.

5481243 February Session, 2024 ANSubstitute ACTHouse PROVIDINGBill GRANTSNo. FOR TOURISM PUBLIC SAFETY FROM REVENUE COLLECTED FROM THE OCCUPANCY AND MEALS TAX.

5481 House of Representatives, April 3, 2024 The Committee on Public Safety and Security reported through REP.

BOYD of the 50th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT PROVIDING GRANTS FOR TOURISM PUBLIC SAFETY FROM REVENUE COLLECTED FROM THE OCCUPANCY AND MEALS TAX.

(B)sHB5481 (i)/ AtFile aNo. 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)243 At1 asHB5481 rateFile of eleven per cent with respect to each transfer of LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05481-R01 of 12 HB.docx Substitute Bill No.

5481243 (B) (i) At a rate of fifteen 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 theeleven 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 sucha sales,bed provided such retailer requires and maintainsbreakfast aestablishment declarationfor by such individual, prescribed as to form by the commissionerfirst andbearingperiod noticenot totheeffectexceeding thatthirty falseconsecutive statementsmadecalendar indays; such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

(C) With respect to the 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 totheeffect that false statementsmade 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(E)(i)Withrespect respect to thesalesoflaborthatisotherwise 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- hundredthspercent,exceptthatthesaleofavesselshallbeexemptfrom such tax if such vessel is docked in this state for sixty or fewer days in a calendarsHB5481 year;/ File No.

(iii)243 With2 respectsHB5481 toFile the sale of dyed diesel fuel, as defined in subsection (d) of section 12-487, sold by a marine fuel dock exclusively for marine purposes, at the rate of two and ninety-nine-hundredths per LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05482 of 12 R01-HB.docx } Substitute Bill No.

5481243 cent;calendar year;

(iii) With respect to the sale of dyed diesel fuel, as defined in subsection (d) of section 12-487, sold by a marine fuel dock exclusively for marine purposes, at the rate of two and ninety-nine-hundredths per cent;

andsHB5481 spirituous,/ maltFile orNo. vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in connection therewith;

243 3 sHB5481 File No.

243 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;

LCO(J) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05483The rate of 12tax R01-HB.docximposed }by Substitutethis Billchapter No.shall be applicable to all retail sales upon the effective date of such rate, except that a new rate that 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 ofthe new rate and delivery is made within ninety days after the effective date of the new rate.

5481 (J) 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 that 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 ofthe new rate and delivery is made within ninety days after the effective date of the new rate.

(L) (i) For calendar months commencing on or after July 1, 2021, but priorsHB5481 to/ JulyFile 1, 2023, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l sevenand nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, including such LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05481-4 of 12 R01-HB.docx } Substitute Bill No.

5481243 amounts4 receivedsHB5481 onFile orNo. after July 1, 2023, attributable to the fiscal year ending June 30, 2023;

243 prior to July 1, 2023, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l sevenand nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023;

(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 twenty-five per cent of the amounts received by the state from the tax imposed under subparagraphssHB5481 (A)/ andFile (H)No. of this subdivision on the sale of a motor vehicle;

(v)243 For5 calendarsHB5481 monthsFile commencing on or after July 1, 2021, but LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05485 of 12 R01-HB.docx } Substitute Bill No.

5481243 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;

(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;

(1) (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchasedfromanyretailerforstorage,acceptance,consumptionorany other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated,sHB5481 assembled/ orFile processed from materials by a person, either withinor without thisstate, for storage, acceptance, consumptionor any other use by such person in this state, to be measured by the sales price LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05486 of 12 R01-HB.docx } Substitute Bill No.

5481243 of6 materials,sHB5481 atFile theNo. rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate:

243 fabricated, assembled or processed from materials by a person, either withinor without thisstate, for storage, acceptance, consumptionor 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:

(D) (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 servicesonvesselsoccurringserviceson vesselsoccurring onandafter July 1,1999,1,1999,such such services shall be exempt from such tax;

(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 suchsHB5481 tax/ ifFile suchNo. vessel is docked in this state for sixty or fewer days in a calendar year;

LCO243 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-054877 ofsHB5481 12File R01-HB.docx } Substitute Bill No.

5481243 (II)such Withtax respectif tosuch thevessel storage,is acceptancedocked orin otherthis usestate of a motor for asixty vessel or afewer trailerdays usedin for transporting a vesselcalendar inyear; this state, at the rate of two and ninety-nine-hundredths per cent;

(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;

(H)With respect to the acceptance or receipt inthis 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 watchsHB5481 for/ aFile salesNo. price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.

For243 purposes8 ofsHB5481 thisFile LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-054818 of 12 R01-HB.docx } Substitute Bill No.

5481243 subparagraph,watch "motorfor vehicle" has the meaning provided in section 14- 1, but does not include a motorsales vehicleprice subjectexceeding toone the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand fivedollars, hundredat pounds, or a motorrate vehicle having a gross vehicle weight rating of twelveseven 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 issuedthree-fourths aper commercialcent registrationon or more specific type of registration by the Departmententire ofsales Motorprice. Vehicles;

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;

(K) (i) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2023, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l sevenand nine-tenthssHB5481 per/ centFile of the amounts received by the state from the tax LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05489 of 12 R01-HB.docx } Substitute Bill No.