The state of Connecticut's newly approved 2014-2015 ( Act 13-184 (H.B. 6704) budget bill allocates funds for various state agencies and program and law makes several state tax and revenue changes that could affect corporate taxpayers.
The bill authorizes a tax amnesty program to start on September 16, 2013, and end on November 15, 2013, for taxable periods that end on or before November 30, 2012. If payment for taxes and interest due are received by November 15, 2013, and other provisions of the amnesty program are met, the state will waive civil penalties and refrain from criminal prosecution as well as reduce interest due for participants in the program. Failure to file an amnesty application or include all taxes owed for the approved amnesty period could result in a 25% penalty plus interest and penalties for any post-amnesty payments.
Income Tax Changes
The legislation extends the temporary 20% corporation income tax surcharge for two additional income tax years, 2014 and 2015. The state's earned income tax credit is reduced from 30% to 25% of the federal credit for 2013, and 27.5% for the 2014 year.
Sales and Use Tax
Among the changes to the state's sales and use tax laws, the luxury goods tax rate on boats with a sales price in excess of $100,000 is reduced from 7% to 6.35%; the temporary tax on electric generation facilities is extended through October 1, 2013; and certain clothing and footwear that costs less than $50 is exempt from sales tax.Learn more at TaxOps .
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