Bill Text: CT HB05545 | 2014 | General Assembly | Comm Sub
Bill Title: An Act Concerning A Comprehensive Study Of The State's Tax Structure.
Spectrum: Moderate Partisan Bill (Democrat 14-2-1)
Status: (Introduced - Dead) 2014-04-08 - File Number 450 [HB05545 Detail]
Download: Connecticut-2014-HB05545-Comm_Sub.html
General Assembly |
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February Session, 2014 |
*_____HB05545FIN___032514____* |
AN ACT CONCERNING A COMPREHENSIVE STUDY OF THE STATE'S TAX STRUCTURE.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective July 1, 2014) (a) The chairs and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding shall convene a panel of experts to conduct a thorough study of the state's tax structure. Such study shall endeavor to develop revenue-neutral policy options to modernize the current tax system, with the goals of increasing the system's simplicity, fairness, economic competitiveness and affordability.
(b) Members of the panel shall be appointed by the chairs and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding. All appointments to the panel shall be made not later than thirty days after the effective date of this section. The chairs of the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding shall serve as chairs of the panel and shall convene its first meeting.
(c) The panel shall consult with the Office of Policy and Management and the Department of Revenue Services and such other financial experts as members of the panel deem necessary. The panel shall organize itself into subcommittees for the purpose of focusing on each tax to be studied.
(d) The panel shall examine the taxes listed in this subsection. Such examination shall include, but not be limited to, consideration of the following:
(1) For each of the listed taxes: Whether it encourages economic growth, is efficient, stable, simple and predictable, and fair and equitable;
(2) For the corporation business tax: (A) The effect of the tax on operations of corporations; (B) the impact of the tax on the competitiveness of state businesses and on prices paid for their goods and services; (C) the applicability of a corporate-based business tax structure, when alternative forms of business organizations are increasingly being used; (D) the use of tax credits, including consideration of (i) their efficacy in achieving policy goals, (ii) their application to business entities other than corporations, (iii) the expansion of existing tax credits, such as the apprenticeship tax credit, or adding new tax credits, and (iv) whether any benefit would be achieved by use of results-based analysis of tax credits; and (E) the advantages and disadvantages of alternative forms of corporate taxation, including combined reporting;
(3) For sales and use taxes: (A) The impact on the state's revenues and economy of the existing rate and exemptions, as compared to a lower rate and a broader base; (B) the treatment of sales tax on business-to-business sales; (C) whether luxury taxes raise sufficient revenue to offset retail business lost; and (D) whether there is equity within the existing tax structure, including whether bed and breakfast inns should be taxed at the same rate as hotels;
(4) For the personal income tax: (A) The rate structure as related to the tax's progressivity and equity between single and joint filers; (B) the purposes and efficacy of existing deductions and exemptions; (C) whether existing tax credits are meeting public policy goals, and whether other credits should be allowed; (D) whether adjustments are needed to the Connecticut minimum tax; and (E) the administration of the tax, and whether it is fair and efficient, including the manner in which tax refunds are made;
(5) For the local property tax: (A) The impact of the tax on businesses; (B) the impact of the tax on residents; (C) the real or perceived inequities in the varying levels of property tax throughout the state; and (D) alternative sources of revenue for municipalities;
(6) For the estate and gift tax: (A) The extent to which state residents move out of the state, based on this tax; (B) the effect on the state from losing the high-income residents affected by this tax; and (C) whether adjusting the rates is advisable; and
(7) For the excise taxes: (A) The effect of taxes on price elasticity; (B) the effect of taxes on consumers; and (C) whether these taxes fulfill a particular public policy purpose.
(e) For the calendar year ending December 31, 2014, the panel shall develop an outline of items to be considered, a list of goals and a tentative schedule. They shall meet with a broad cross-section of interest groups, including business associations, labor, regional organizations, public interest groups, accountants and attorneys. For the calendar year ending December 31, 2015, the panel shall proceed, through subcommittees, with its analyses of the state's taxes, as provided in subsection (d) of this section. Not later than February 1, 2016, the panel shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding, on the results of its study, including any recommendations for further action.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
July 1, 2014 |
New section |
FIN |
Joint Favorable Subst. |