Bill Text: CT SB00303 | 2010 | General Assembly | Comm Sub


Bill Title: An Act Returning A Portion Of The Hotel Sales Tax To Municipalities.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced - Dead) 2010-04-14 - Referred by Senate to Committee on Finance, Revenue and Bonding [SB00303 Detail]

Download: Connecticut-2010-SB00303-Comm_Sub.html

General Assembly

 

Substitute Bill No. 303

    February Session, 2010

 

*_____SB00303PD____032310____*

AN ACT RETURNING A PORTION OF THE HOTEL SALES TAX TO MUNICIPALITIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subdivision (1) of section 12-408 of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010, and applicable to sales occurring on or after said date):

(1) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six 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, except, in lieu of said rate of six per cent, (A) at a rate of [twelve] fifteen per cent with respect to each transfer of occupancy, from the total amount of rent received for such occupancy of any room or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive calendar days, (B) 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, (C) (i) with respect to the sales of computer and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent, on or after July 1, 2001, at the rate of one per cent, (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax, (D) 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, (E) 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. 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 subparagraph (I) of subdivision (2) of subsection (a) of section 12-407, 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 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.

Sec. 2. (NEW) (Effective October 1, 2010) (a) As used in this section: (1) "Municipality" means any town, city, borough, consolidated town and city or consolidated town and borough; and (2) "population" for each municipality means that enumerated in the most recent federal decennial census of population or that enumerated in the most recent current population report series issued by the United States Department of Commerce, Bureau of the Census available on January first of the fiscal year prior to the fiscal year in which payment is to be made pursuant to subsection (c) of this section, whichever is most recent.

(b) The Commissioner of Revenue Services shall segregate three per cent of the taxes collected from sales within the meaning of subparagraph (H) of subdivision (2) of subsection (a) of section 12-407 of the general statutes by any hotel or lodging house. Funds segregated under this subsection shall be allocated as follows: (1) The commissioner shall return one-third of such taxes collected to the municipality in which the hotel or lodging house paying such tax is located; and (2) the commissioner shall deposit two-thirds of such taxes collected into the municipal hotel tax account established in section 3 of this act.

(c) On April 1, 2011, and annually thereafter, the Office of Policy and Management shall distribute one-half of the moneys deposited in the municipal hotel tax account to each municipality pro rata on the basis of the ratio of the population of the municipality to the population of the state.

(d) On April 1, 2011, and annually thereafter, the Office of Policy and Management shall distribute one-half of the moneys deposited in the municipal hotel tax account pro rata to each regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive, of the general statutes, on the basis of the ratio of the population of the municipalities within such regional council of governments to the population of the state. If a municipality is not a member of a regional council of governments, then its proportionate share shall be distributed to the regional council of elected officials organized under the provisions of sections 4-124c to 4-124h, inclusive, of the general statutes, of which such municipality is a member, or if it is not a member of a regional council of elected officials, then to the regional planning agency organized under the provisions of chapter 127 of the general statutes of which it is a member. Moneys received by a regional council of governments, a regional council of elected officials or a regional planning agency under this section shall be used to promote regionalism initiatives, including, but not limited to, regional economic development and educational cooperative programs and agreements.

Sec. 3. (NEW) (Effective October 1, 2010) There is established an account to be known as the "municipal hotel tax account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by section 2 of this act to be deposited in the account. Moneys in the account shall be expended by the Office of Policy and Management in accordance with section 2 of this act.

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

Section 1

October 1, 2010, and applicable to sales occurring on or after said date

12-408(1)

Sec. 2

October 1, 2010

New section

Sec. 3

October 1, 2010

New section

Statement of Legislative Commissioners:

Section 1 was redrafted to ensure accuracy of text; in subsections (c) and (d) of section 2, "On or before April 1, 2011" was changed to "On April 1, 2011" for clarity; and technical changes were made throughout section 2 for internal consistency and consistency with the general statutes.

PD

Joint Favorable Subst.

 
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