In addition to lowering the threshold for economic nexus and extending it to sales of services, the bill eliminates the condition that such retailers be regularly or systematically soliciting sales in Connecticut. The commission must provide estimates of the total revenue an employer payroll tax would generate, based on the assumption that either a 5% payroll tax is imposed beginning January 1, 2021 or a payroll tax is phased in over three years at the rate of 1.5% in year one, 3% in year two, and 5% in year three. Corporate Income Tax Legislative update: What happened in 2016? 1 2019 Conn. Pub. I would like to welcome you to the Connecticut Department of Revenue Services (DRS) website. Alcoholic beverage tax rates. § 12-407(a)(13). § 12-494(b)(2)(C). Connecticut imposes a 6.35% sales and use tax, with certain exceptions, on a wide range of services. Connecticut considers vendors who make more than $100,000 in gross receipts during the 12-month period in gross revenue AND 200 or more separate transactions on the previous calendar year’s sales to have economic nexus. Assemb., Reg. Groceries, prescription drugs and non-prescription drugs are exempt from the Connecticut sales tax Counties and cities are not allowed to collect local sales taxes § 12-407(a)(37)(A), excluding “digital goods” from computer and data processing services. 7373, Sec. Act No. 7424, Sec. Act No. 7424 and H.B. Eliminates the condition that out-of-state retailers be “regularly or systematically” soliciting sales. Connecticut's smoking age will rise to 21, the minimum wage will increase to $11 and a 6.35 percent sales tax will apply to digital purchases, including Netflix subscriptions. 12 H.B. 16 H.B. IP 2006(35), A Guide to Connecticut Sales and Use Taxes for Building Contractors; Conn. 7373 provide certain changes to the pass-through entity tax (PET), which are generally applicable for tax years beginning on or after January 1, 2019, unless otherwise noted: For tax years commencing on or after January 1, 2019, H.B. 18 Id., amending Conn. Gen. Stat. Act No. 7424, Sec. Each electronic cigarette wholesaler must file the return electronically and make payment by electronic funds transfer. Property tax credit limit: The budget bill continues to limit eligibility for the property tax credit to taxpayers with dependents and those who are 65 years old or older through 2020. This message will not be visible when page is activated. 322, amending Conn. Gen. Stat. § 34-38n(a). Dan is a senior tax consultant working in the Hartford, Connecticut, Multistate Tax practice of Deloitte Tax LLP. Act No. Certain services may not be available to attest clients under the rules and regulations of public accounting. Effective August 1, 2019, to June 30, 2021, single-use plastic bags are subject to a 10¢ fee. "Electronic cigarette products" means electronic nicotine delivery systems, liquid nicotine containers, vapor products, and electronic cigarette liquids. 7424, Sec. Taking action against systemic bias, racism, and unequal treatment, Key opportunities, trends, and challenges, Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. Dyed diesel fuel sold by a marine fuel dock: The sales and use tax rate on dyed diesel fuel sold by a marine fuel dock exclusively for marine purposes is reduced to 2.99%. You need your Connecticut Tax Registration Number, legal business name (for sole proprietors: your last name), and TSC PIN number. Assemb., Reg. Elimination of exemptions: Effective January 1, 2020, the bill eliminates the sales and use tax exemptions for safety apparel; specified parking services; dry cleaning services; laundry services and interior design services unless purchased by a business for use by such business. For tax years beginning on or after January 1, 2021, taxpayers who paid conveyance tax at the new 2.25% rate may calculate their property tax credit against the income tax based on the amount paid in conveyance tax over a 3-year period, beginning in the third year after the conveyance tax was paid. 7424, 2019 Gen. Connecticut law imposes a 6.35% sales tax on all retail sales and certain business and professional services (CGS § 12-408). Sess. Sess. Sess. § 12-219(a)(1). “Digital goods” include audio and visual works, or audio-visual works, and reading materials or ring tones, that are electronically accessed or transferred. 8 H.B. As of October 1, 2019, electronically accessed or. 1, amending Conn. Gen. Stat. Admissions tax: The admissions tax rate is reduced for certain venues from 10% to 7.5% for sales occurring on or after July 1, 2019, and from 7.5% to 5% for sales occurring on or after July 1, 2020. 1, amending Conn. Gen. Stat. 7373, Sec. Business and professional services in Connecticut are presumed to be exempt from the state’s sales tax unless specifically identified as taxable by state law. Effective July 1, 2019, deeds that transfer the transferor's principal residence, which has a concrete foundation that has deteriorated due to the presence of pyrrhotite are exempt from real estate conveyance tax, provided the transferor obtains a written evaluation from a professional engineer indicating that the foundation of the residence was made with defective concrete. Employers must return it by October 1, 2019. 7424, Sec. Connecticut Council of Family Service Agencies35 Cold Spring RoadBuilding 400, Suite 411Rocky Hill, CT 06067, CONTACT US:Phone: 860.571.0093Fax: 860.571.0118E-mail: info@ctfsa.org, Copyright ©2018 CCFSA. Please see www.deloitte.com/about to learn more about our global network of member firms. In order to collect the necessary data for this study, DRS must mail, electronically or by first class mail, an information return form by August 15, 2019, to employers, excluding the federal government, state government, municipalities, local or regional boards of education, tribal nations, and self-employed individuals. H.B. The legislation also contains a number of changes that impact sales and use tax, generally applicable for sales occurring on or after October 1, 2019, (unless otherwise noted), including the following: Applicable to conveyances of residential properties occurring on or after July 1, 2020, H.B. 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