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STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES
1999-2000
ANNUAL REPORT

Governor

Commissioner

John G. Rowland

Gene Gavin


A Message from the Commissioner

The Department of Revenue Services (DRS) continues to achieve regional and national recognition for innovative state tax administration. In today’s swiftly evolving business environment, DRS is proud to be a dynamic leader in providing the highest levels of service to our customers.

Our DRS divisions have continued to demonstrate tremendous initiative in developing programs that benefit taxpayers. This year, the Special Investigations Section of the Collection & Enforcement Division added to our list of honors by earning a Connecticut Innovation Prize for designing and implementing nationally the Suspicious Filer Exchange Program. This program saves Connecticut taxpayers money by identifying fraudulent refund schemes before any checks are issued by the state.

A major milestone for DRS was the successful Year 2000 transition. The Agency entered the twenty-first century fully prepared to embrace the technologies necessary to streamline Connecticut’s tax administration today and well into the future. Our focus on expanding electronic services for tax reporting and payment, as well as general tax administration, have made voluntary compliance easier for taxpayers with tremendous savings in government resources.

The Internet is an integral part of our business strategy, and has proven itself as the means of choice to communicate with our customers. As the first state tax agency to use the World Wide Web for compliance with our Internet Top 100 Tax Delinquency List, DRS has become the national model for others to follow.

All DRS employees participate in the success of DRS. Their commitment to our customers has made this Agency a world class organization. Together, we pledge to continue to work diligently to ensure fair and effective tax administration for Connecticut taxpayers, both now and in the future.

Gene Gavin
Commissioner


Table of Contents

A Message from the Commissioner
Table of Contents
Directory

Overview of the Department
Divisional Activities and Functions
Locations

The Year In Review
1999-00 Highlights  Legislative Summary - 2000 Regular Session
Connecticut Superior Court (Tax Session) Cases

Connecticut’s Taxes
State Revenue Sources
Income Tax
Sales and Use Taxes
Corporation Business Tax and Credits
Admissions, Dues & Cabaret Tax
Alcoholic Beverages Tax
Controlled Substances Tax
Controlling Interest Transfer Tax
Dry Cleaning Surcharge
Gift Tax
Hazardous Waste Assessment
Hospital Gross Earnings Tax
Insurance Premiums Tax
Motor Carrier Road Tax
Motor Vehicle Fuels Tax
Motor Vehicle Rental Surcharge
Petroleum Companies Gross Earnings Tax
Public Service Companies Tax
Real Estate Conveyance Tax
Repealed Taxes
Seed Oyster Tax
Solid Waste Tax
Succession Tax
Tobacco Products Tax
Tourism Fund Surcharge
Unrelated Business Taxable Income Tax

Tables, Charts & Graphs

Tourism Districts
Penalty and Interest Receipts
Tax Refunds
Real Estate Conveyance Tax By Town
Comparative Summary of Retail Sales and Tax Receipts by Town
Nationwide Comparison of Tax Rates


DIRECTORY

Commissioner
Gene Gavin
(860) 297-4900

Executive Secretary
Patricia A. Hicks

Chief of Staff
Tina Lawson
(860) 297-5620

Assistant Commissioner
Fred H. Lovegrove, Jr.

General Counsel
John M. Dunham
(860) 297-5720

Administration Division
Kevin G. Forsa
(860) 297-5660
Legal Division
Felicia S. Hoeniger
(860) 297-5779
Appellate Division
Scot R. Anderson
(860) 297-4773
Operations Division
Donald B. Pecor(860) 297-4700
Audit Division
Collections & Enforcement Division
Hans G. Spalter
(860) 541-7501; (860) 297-5891
Research Unit
Susan B. Sherman
(860) 297-5693
Communications Office
Ellen R. Schneider
(860) 297-5610
Systems & Internal Control
James E. Norton
(860) 297-5608
Diversity, Education & Equity
Cheryl Niland
(860) 297-5708
Taxpayer Advocate Office
Clara Crawford
(860) 297-5603
Information Services Division
Michael Longo(860) 297-5630
Taxpayer Services Division
Elaine Leon
(860) 297-4922

Overview of the Department

The Mission of the Connecticut Department of Revenue is to administer the tax laws of the State of Connecticut and collect the tax revenues in the most cost effective manner; achieve the highest level of voluntary compliance through accurate, efficient and courteous customer service; and perform in a manner which instills public confidence in the integrity and fairness of the state’s tax programs.


Divisional Activities and Functions

Administration Division

The Administrative Services Staff prepares and administers the Agency budget, controls and monitors expenses, and assists top management in strategic planning. It also oversees all procurement, printing, budgetary, accounting and facilities management for the Agency. Its Education Unit establishes, implements and evaluates personnel training and educational programs to help support management effectiveness, technical expertise and personal development of Agency employees. The Human Resource and Payroll Units administer the rules, regulations, contracts and directives concerning state employment and recruit the staff for the Agency.


Appellate Division

The Appellate Division receives, acknowledges and reviews all taxpayer appeals. The Division's Tax Appellate Officers and Specialists conduct informal hearings, render final determinations, and negotiate settlement of tax controversies. Appellate Division personnel also provide litigation support to the Office of the Attorney General on cases appealed from the Department to Superior Court.

During Fiscal Year 1999-2000, the Appellate Division resolved 1,201 cases with settled tax values of $35 million. Additionally, another 70 determinations were issued by the Appellate Division from which taxpayers took appeals to Superior Court. This equates to an appeal ratio of 6%.


Audit Division

The Audit Division ensures that the tax returns filed with DRS are reported accurately and are in compliance with the tax laws and regulations of the State of Connecticut. Using a variety of audit selection review tools, suspected noncompliant tax returns are identified for examination. Audit Division staff perform field and office audit examinations of the selected tax returns to determine the extent of inaccuracies, assess the underreported amounts, verify the extent of credits or refunds, and educate those taxpayers for improvements in their levels of voluntary compliance.

During Fiscal Year 1999-2000, the Audit Division conducted 85,607 field and office audits and generated $307,647,483 in assessments during the fiscal year, an 11% increase. For the first time since 1991 the examination process generated more than $300,000,000 in assessments. These milestones can be attributed in part to quality improvements in the audit process that have helped achieve higher efficiencies.

The Division implemented several new programs to make compliance easier for taxpayers. A joint initiative with the Connecticut Automotive Trades Association and the Department of Motor Vehicles regarding Courtesy Delivery Agreements, now allows local automobile dealers to provide Connecticut customers delivery of vehicles from remote or out-of-state dealers at their Connecticut locations. We also developed and implemented procedures for Managed Audit Agreements (MAAs) and Managed Compliance Agreements (MCAs), which were approved by legislation. The former allow taxpayers to perform much of the routine work associated with an audit and receive incentives to participate, and the latter substantially reduce the routine audit time by providing an agreed upon method for calculating and remitting use tax on a taxpayer’s purchases.

Well-publicized programs and joint ventures also enhanced compliance initiatives. These programs included: Operation Equity, a program enlisting other state tax agencies to assist Connecticut in the collection of use taxes owed by Connecticut residents who make purchases from remote sellers; and the Tax Exempt Bond Program, a cooperative effort with the Securities Industry Association and the New York State Department of Taxation and Finance which identified taxpayers who did not report significant federally exempt interest income that is taxable to the State of Connecticut. Connecticut also took the lead nationally, and was the first state to enact legislation prohibiting the sale of "Gray Market" cigarettes in Connecticut, that is, sales of cigarettes marked "for export only."


Collections & Enforcement

The Collection & Enforcement (C&E) Division is responsible for the collection of overdue taxes and enforcement of the state tax statutes and regulations for those who fail to voluntarily comply.

Through a series of progressive collection, compliance and enforcement processes, the employees of the C&E Division resolve and secure payment of taxes from those taxpayers that unintentionally fail to file or pay and those who refuse to comply voluntarily.

During Fiscal Year 1999-2000, the C&E Division collected $124,334,525 in overdue tax revenue. The rate of turnover for the collection portfolio was 70%.

The C&E Division’s Special Investigation Section had a 47% increase in criminal case referrals, primarily resulting from permit suspensions after the normal collection process was exhausted. The year’s arrests totaled 131, an increase of 25% from last year.

Advancements in technology and quality enhancements to the enforcement program resulted in the C&E Division’s Special Investigation Section winning a Connecticut Innovation Prize from the Connecticut Quality Improvement Award Partnership. The award recognized the Suspicious Filer Exchange Program, designed to protect Connecticut and participating states from possible losses from fraudulent income tax refund schemes.


Communications Office

The DRS Communications Office supports the Agency’s mission to enhance voluntary compliance by providing timely and accurate information to taxpayers, tax professionals, state agencies and other interested parties. A key responsibility is to convey to all our customers the Agency’s commitment to excellence in customer service and to fairness and equity for all taxpayers.

The comprehensive communications program includes origination and coordination of production and distribution of a wide range of media, including executive communications, media releases, reports, newsletters, brochures and promotion for each filing season and special programs that occur throughout the year. The office also coordinates seminar presentations, interviews and public appearances by the commissioner and executive staff, providing audiovisual support and collateral materials.


Diversity, Education & Equity

The mission of the Office of Diversity and Equity is to encourage the full and fair utilization of its human resources by supporting the continuous improvement of its affirmative action, equal employment, diversity and employee development programs to ensure that all employees’ talents and differences are valued.

During this fiscal year, the Commission on Human Rights and Opportunities applauded the Department for meeting a substantial percentage of its affirmative action goals and for exceeding its contract set-aside goals.


Information Services Division

The Information Services Division is responsible for the analysis, design, development, maintenance, and integrity of all of the Department’s tax information systems. The Division provides development support for all applications in response to legislative mandates and other Agency initiatives. The Division also provides technical support for all computer operations and for all desktop users within the Department. The Division is also responsible for the outsourcing of data capture, microfilming of tax returns, and the storage and retrieval of taxpayer records.

The Division continues to support the expansion of the Telefile and Electronic Filing programs for individual income tax filers and is preparing for expansion into the business tax area this year. Support for the Sales Tax Rebate program was also a major activity for the Division this past fiscal year.

Solving the Y2K problem was an Agency top priority during the last fiscal year. The Information Services Division was instrumental in working with a vendor to complete remediation of all applications and major system changes, on time and with minimal problems. Conversion of the Agency’s local area network to a Microsoft NT environment was also accomplished. The network was extended to regional field offices for the first time.


Legal Division

The Legal Division provides legal interpretations of State tax statutes and court rulings to the Commissioner, other divisions within the Department of Revenue Services, taxpayers and practitioners.

Additionally, the Legal Division is responsible for coordinating the litigation of tax cases with the Office of the Attorney General. With respect to contested succession tax matters, the Division’s legal staff represents the Commissioner before the Probate Court and litigates appeals from the Probate Court to the Superior Court and Appellate Court levels.

The Legal Division also drafts proposed legislation and regulations for submission to the legislature to ensure the technical accuracy of Connecticut’s tax structure, and reviews tax documents generated by DRS to ensure their compliance with relevant tax statutes.


Operations

The Operations Division is responsible for processing all state tax returns and corresponding documents, maintaining the internal accounting system and the timely deposit of all state tax revenue. In addition, the Operations Division administers programs designed to ensure accuracy and validity of all taxpayer information. During Fiscal Year 1999-2000, the Operations Division processed 5.28 million returns, 1.75 million checks, 398,261 electronic fund transfers and deposited $9.5 billion. The Operations Division also played a major role in implementing the 1999 Sales Tax Rebate Program. More than 1.7 million checks were issued, totaling over $116 million.

DRS continues to reduce the number of taxpayers filing paper tax returns by encouraging alternative filing methods such as the Electronic Filing Program (ELF) and Telefile. Participation in ELF increased 41% with nearly 210,000 filing via ELF. In addition, the Telefile program increased 50% with nearly 150,000 taxpayers participating during the filing season. During the fiscal year, for the first time, these programs included payment by credit card.

The Operations Division continues to issue refund checks at record speed. Over 900,000 refunds were issued this year, one third of which were mailed in less than 5 days from our receipt of the return.


Research Unit

The Research Unit of DRS analyzes and prepares the statistics generated by the Department, including preparation of the Annual Report and statistical overviews of the income tax and sales tax.

The Unit acts as liaison with the Connecticut General Assembly and is responsible for gaining passage of the Department’s legislative package as well as working with the various committees of cognizance to facilitate other legislative initiatives. In addition, the Unit coordinates the disbursement of funds to the Connecticut Tourism districts, administers the Neighborhood Assistance Act Tax Credit Program, and responds to requests for information from other states as well as Connecticut’s legislative and executive branches of government.


Systems & Internal Control

The Systems and Internal Control Unit provides management with an independent view of operational examinations and serves as the Agency liaison with the Auditors of Public Accounts and other external agencies. Additionally, the Unit assists all levels of the Department in monitoring, evaluating and improving systems, internal controls and policies and procedures. These include recommending standards for maintaining confidentiality and security and reviewing provisions for safeguarding the assets of the Department.


Tax Products Group

The Tax Products Group coordinates the development, testing, production, and distribution of written publications for the Department of Revenue Services. The goal of the group is to create clear, simple, and accurate tax products. These include announcements, informational publications, newsletters, policy statements, special notices, tax returns, and instructions.

To attain this goal, the Tax Products Group has developed Agency style standards and strives to put tax law into plain language whenever possible. The Tax Products Group works with subject matter experts from each division during the product development process to determine what tax information needs to be communicated to Connecticut taxpayers and tax practitioners.

The development of the tax booklets and instructions for the personal income tax, corporation business tax, gift tax, and trust and estate tax are major projects each year. Another challenge is incorporating new legislation into new or existing forms and publications and distributing the right information to the right audience at the right time, and in a concise, easily understood product.


Taxpayer Advocate Office

The DRS has an established Taxpayer Advocacy program. The Taxpayer Advocate is available to help those taxpayers not in litigation or under enforcement action who have been unable to resolve their problems with the Department through normal channels.


Taxpayer Services Division

The Taxpayer Services Division delivers Connecticut tax information to taxpayers through educational programs and direct assistance activities.

During the 1999-2000 fiscal year, the Division responded to 218,306 telephone inquiries, provided 1,359 replies to taxpayer letters, and assisted 26,424 walk-in taxpayers at field offices located in the Hartford, New Haven, Bridgeport, Waterbury and Norwich regions. DRS also responded to 5,016 taxpayer inquiries by e-mail.

DRS expanded its electronic filing services to the Hamden field office, after trying pilot programs in Bridgeport and Hartford during the prior year. Taxpayers could electronically file both their federal and state tax returns at the three walk-in units at no charge.

Tax publications, forms and information are available electronically on the DRS Web site on the Internet, which is managed by the Division. More than 495,865 people visited the DRS Web site in fiscal year 2000, an increase of 70% over the previous fiscal year. DRS-E-NEWS, our new electronic newsletter, delivered timely notification about new tax forms, publications, and Department news to subscribers in Connecticut and throughout the United States.

During the last fiscal year, the Speakers Bureau provided speakers and programs covering the full range of taxes administered by DRS to various organizations and agencies. The Department sponsored its annual Connecticut tax seminar attended by 150 practitioners from Connecticut and surrounding states. DRS also held 20 evening workshops for new business owners at convenient locations around the state and provided speakers to 100 other special events.


Department of Revenue Services Locations

Main Office
25 Sigourney Street
Hartford, Connecticut 06106
Phone: (860) 297-5962
1-800-9463 (In-state only)
TDD/TT (860) 297-4911

Field Offices

Bridgeport Regional Office
10 Middle Street
Bridgeport, Connecticut 06601
Phone: (860) 579-6251
New Haven Regional Office
3074 Whitney Ave, Bldg.#2
Hamden, Connecticut 06517
Phone: (203) 287-8243
Norwich Regional Office
2 Cliff Street
Norwich, Connecticut 06360
Phone: (860) 889-2669
Waterbury Regional Office
Rowland Government Center Building
55 West Main St.
Waterbury, CT 06708
Phone: (203) 805-6789

The Year in Review

CONNECTICUT DEPARTMENT OF REVENUE SERVICES

1999-2000 AWARD

Silver Connecticut Innovation Prize

awarded by

Connecticut Quality Improvement Award Partnership

for

Suspicious Filer Exchange Program


DRS is proud of its significant progress in expanding and enhancing its services to all customers, including taxpayers, other state agencies and beyond. During the 1999-2000 fiscal year, DRS managed tax revenue deposits of over $9 billion; produced, distributed and processed over 6.5 million tax returns reporting more than 40 different tax types; and contributed to a general better understanding of Connecticut’s tax laws through services and outreach programs.

CONNECTICUT INNOVATION PRIZE

The Collection and Enforcement Division’s Special Investigation Section brought the DRS its 13th award by winning a Connecticut Innovation Prize from the Connecticut Quality Improvement Award Partnership for its Suspicious Filer Exchange Program. The program is an Internet-based application developed by our own staff. It is designed to protect Connecticut and participating states from possible losses of fraudulent income tax refund schemes. Utilizing inexpensive software and secure digital file encryption, tax investigators can instantaneously share information about tax refund frauds being perpetrated in multiple jurisdictions.

GLOBAL LEADERSHIP IN TAX ADMINISTRATION

A growing reputation for leadership in tax administration and a strong record of performance in tax compliance has resulted in DRS often being asked to share its expertise with other tax jurisdictions. This year, top tax administrators from China and Japan visited DRS to learn more about Connecticut’s methods and techniques. Two areas of focus were our use of the Internet to post the "Top 100 Delinquent Taxpayers List" and other effective methods of reaching taxpayers with deficient accounts.

STUDIES IN TAX POLICY

DRS completed two important studies of tax policy this year. A study of taxation of federal pension income was mandated by the Connecticut General Assembly in its 1999 session. The study looked at the number of taxpayers in Connecticut receiving federal pensions and the impact of our state’s current tax policy, treatment of federal pension income for federal tax purposes, and the taxation policies of other states with respect to pension income. The report was forwarded to the General Assembly in January 2000.

At the request of the Speaker of the Connecticut House of Representatives, DRS launched a study of factor relief for manufacturers for purposes of calculating corporation business income tax. Representatives of major state manufacturers, tax professionals and other state agencies joined DRS on the committee to examine Connecticut’s taxation of manufacturers compared to other states. The committee recommended several options for tax relief to the General Assembly. As a result, the Connecticut General Assembly passed legislation to change the basis for the corporation business tax for manufacturers from a three-factor formula based on sales, payroll and property to a single factor basis of sales only. This is expected to continue to help transform the state into a highly desirable location for industry.

REBATE ’99

On behalf of the General Assembly, DRS successfully administered a sales tax rebate program that distributed over $116 million in rebates to over 2.3 million Connecticut residents. Exceptional commitment to our customers on the part of DRS employees resulted in DRS implementing this program within the mandated schedule and budget, while maintaining all other Agency functions at highest performance levels.

CUSTOMER EDUCATION

The Taxpayer Services Division provided essential tax information to customers at more than 100 public speaking engagements to various organizations and agencies on a broad range of taxes. Twenty workshops were presented throughout the state for 600 new business owners. It also organized and produced the second annual DRS one day tax seminar for tax professionals.

The expansion of a Spanish-language assistance program enabled the Agency to serve more than 500 Hispanics, Latinos and other Spanish-speaking taxpayers.

The DRS Web site was expanded to enhance customer service. Additions include a legislative summary page with links to the Connecticut Public Acts and General Statutes, and a page describing Electronic Filing, Telefiling, and electronic payment options. More than 600,000 people visited the site, a 70% increase in usage from the prior year.

COMPLIANCE ENHANCEMENT

To improve compliance, revenue examiners from the Audit Division assisted a variety of industry groups regarding existing tax laws and new legislation. They also participated in a semi-annual Municipal Town Clerk Conference to discuss interpreting and administering real estate conveyance taxes and organized a series of sales tax seminars for Department of Motor Vehicles branch managers.

Two programs were initiated by the Operations Division to protect the state against losses because of inaccurate or outright fraudulent reporting of taxes paid by taxpayers. The Credit for Income Taxes Paid to Other Jurisdictions Program verifies that the amount of income taxes claimed to have been paid to other jurisdictions is accurate. This program alone resulted in the disallowance of $5.8 million in erroneous refunds.

The W-2 Withholding Project reviews the amount of income tax reported as withheld on each tax return, and compares it with adjoining W-2 forms. During this fiscal year over one million income tax returns were reviewed.

TECHNOLOGY ADVANCES

The Information Services Division successfully managed the Agency’s Year 2000 transition, marking the century date change smoothly. During the year the Agency also completed an upgrade of the entire network infrastructure, based on Microsoft NT technology. We also expanded these capabilities to DRS field offices via a Wide Area Network.

STREAMLINING PROCESSES

Emphasis on fast, non-paper options for filing income tax returns continues to be a major thrust of the Agency. These methods of filing personal income tax returns are faster and more accurate for taxpayers and result in quicker refunds.

Connecticut has one of the strongest records of growth in participation in Telefile, Electronic Filing and use of personal computers to file. Together, non-paper filing options grew an average of 31 percent.

The direct deposit of income tax refunds was expanded to income tax Telefilers, providing faster, more convenient availability of funds. The option to pay income tax by credit card was offered for the first time.

COLLECTING TAXES

DRS launched Operation EQUITY to assist in recovering use tax due Connecticut on sales made to state residents by out-of-state vendors using the Internet, telephone, or mail order. States who participate in reporting these sales may receive up to 50% of the Connecticut tax actually collected.

Connecticut took the lead in identifying a growing problem with sales of "gray market" cigarettes. Packaged for export only, sales of these cigarettes threaten to undermine future payments to the state from the national tobacco settlement, as well as reduce cigarette tax revenues. Connecticut was the very first state to enact legislation prohibiting the sale of export-only cigarettes, with numerous states following our lead.

BUSINESS PLANNING MILESTONES

As part of the Year 2000 Readiness Project, DRS prepared comprehensive business continuity and contingency plans for all its processes and activities in the event of loss of automated systems, no building access, power outages and supply chain failure.

With Y2K transition goals successfully completed, DRS once again focused on its Strategic Business Plan and its Business Systems Plan. Progress was made on implementing a technology architecture called an Integrated Tax Administration System (ITAS). ITAS will incorporate a "case management" approach to customer relations and tax collection and will also provide the financial management tools appropriate to our organization.

DRS is an active partner with other Connecticut and federal agencies to automate and simplify the multi-jurisdictional requirements for licensing and registration processes for businesses, as well as the filing of tax returns and payment of taxes.

EMPLOYEE DEVELOPMENT

Agency-wide efforts have resulted in DRS receiving the commendation of the Commission on Human Rights and Opportunities for its progress toward meeting its hiring and promotional goals in targeted areas. The Agency also exceeded its goals for developing contracts with both small businesses and minority enterprises.

The Agency’s volunteer Diversity and Opportunity Committee, working with the DRS Affirmative Action Officer, has helped launch initiatives that have expanded our recruitment of a diverse work force. Internship programs for young women and men in high school and college have continued to foster interest in future DRS employment among minority and inner city students.


LEGISLATIVE SUMMARY - 2000 GENERAL ASSEMBLY


Admissions & Dues Taxes

Public Act 00-170

The following provisions are effective July 1, 2000:

  • Admission charges to establishments deemed to be cabarets are exempt;
  • Admission charges to the Connecticut Exposition Center are exempt; and
  • Admissions tax rate reduced over a two-year period for movie tickets to 8% on 7/1/00 and to 6% on 7/1/01.

Alcoholic beverages Tax

Public Act 00-174

Simplifies requirements for individuals importing alcoholic beverages into Connecticut by allowing them to apply to and file a return with the Department of Revenue Services. Previously they would have had to apply to the Department of Consumer Protection. Effective July 1, 2000.

Cigarette Tax

Public Act 00-56

Prohibits the sale of cigarettes in packages of less than twenty cigarettes.

Public Act 00-208

Requires DRS to identify those cigarette manufacturers who have not signed on to the Master Settlement Agreement, but who sell, either directly or through a distributor, cigarettes into CT. DRS must also identify the quantity involved.

Corporation Business Tax

Public Act 00-170

  • Provides for a credit against the corporation business tax for the donation of computers to public schools.
  • Removes the per company ceiling on housing tax credits under the existing Housing Program Contribution and limits eligibility for tax credits to cash contributions.
  • Allows S corporations to utilize 100% of the Housing Program Contribution credit to the extent possible.
  • Allows certain types of multi-state corporations (manufacturers and broadcasters) to reduce their corporation business tax liability by using a single factor apportionment formula.
  • Provides for future corporation business tax credits for financial institutions that reach certain employment levels.
  • Establishes credit for investments in an eligible urban reinvestment or industrial site investment project. Effective July 1, 2000.

Public Act 00-174

Clarifies that the credit for traffic reduction applies only to money spent in Connecticut and to employees employed in Connecticut.

Public Act 00-192

Expands the Human Capital Investments credit to include contributions made to the Individual Development Account Reserve Fund.

Public Act 00-203

Allows the credit for the donation of open space land to be carried forward for up to 10 years. Also, defines use value for purposes of the credit to mean fair market value, effective for donations made on or after January 1, 1999.

Gift Tax

Public Act 00-170

Reduces the gift tax, incrementally, beginning in calendar year 2001 through 2006. No gift tax is due for gifts made during calendar year 2006 or thereafter if the aggregate amount of taxable gifts made is $1,000,000 or less.

Hospital Gross Earnings Tax

Public Act 00-170

Repeals the Hospital Gross Earnings Tax effective for calendar quarters commencing April 1, 2000 and after.

Income Tax

Public Act 00-82

Excludes from adjusted gross income payments made to Holocaust survivors. Effective for tax years January 1, 2000 and after.

Public Act 00-192

Provides for a subtraction modification for interest earned on funds deposited in a Connecticut Individual Development Account. Effective for tax years commencing on or after January 1, 2001.

Public Act 00-174

  • Allows an individual who has determined his federal income tax liability for the taxable year under Internal Revenue Code §1341 (claim of right doctrine) to claim comparable relief for Connecticut income tax purposes. Effective for income that was included in an earlier taxable year, and that was repaid during a taxable year beginning on or after January 1, 1999.
  • Excludes individuals from the definition of Connecticut resident who, within any period of 548 consecutive days, were present in a foreign country for at least 450 days and not present in Connecticut for more than 90 of those days, and does not maintain a permanent place of abode in Connecticut at which such person’s spouse or minor children are present for more than 90 days. Effective for taxable years commencing on or after January 1, 2000.

Insurance Premiums Tax

Public Act 00-170

  • Creates a credit for health care centers providing medical coverage through HUSKY A or HUSKY B plans.
    • Provides for a credit for the donation of computers to public schools. Effective for income years commencing on or after January 1, 2000.
    • Establishes a credit for investments in an eligible urban reinvestment project or eligible industrial site investment project. Effective July 1, 2000.

    Public Act 00-174

    • Exempts new or renewal contracts or policies written to provide health care coverage to retired teachers, spouses or surviving spouses from net direct subscriber charges of health care centers. Effective for any new or renewal contract or policy entered into with the state on or after February 1, 2000 that is covered by plans offered by the state teachers’ retirement system.
    • Allows insurance companies to credit 100%, instead of 50%, of the amount paid to the Connecticut Life and Health Insurance Guaranty Association and the Connecticut Insurance Guaranty Association against their insurance premiums tax liability. Effective for calendar years commencing on or after January 1, 2000.

    Motor Vehicle Fuels Tax

    Public Act 00-170

    Reduces the tax rate by 7¢ a gallon. The rate is lowered from 32¢ a gallon to 25¢ a gallon for gasoline and from 31¢ to 24¢ a gallon for gasohol. Effective July 1, 2000.

    Miscellaneous

    Public Act 00-140

    Provides for special exemptions under the sales and use taxes for tangible personal property and services related to the Adriaen’s Landing Project. Also, exempts certain deeds of property from the real estate conveyance tax. Effective May 2, 2000.

    Public Act 00- 170

    • Exempts attorneys employed full-time by a municipality or probate court from the occupational tax. Effective January 1, 2000.

    Public Act 00-174

    Exempts from controlling interest transfer taxes any sale or transfer of a controlling interest in any entity, which sale or transfer effectuates a mere change of identity or form of ownership or organization, and which sale or transfer effects no change in beneficial ownership of the entity. Effective for sales or transfers occurring on or after July 1, 2000.

    Petroleum Companies Gross Earnings Tax

    Public Act 00-174

    Excludes paraffin or microcrystalline waxes from the definition of petroleum products, thereby exempting them from the gross earnings tax. Effective July 1, 2000.

    Public Service Companies Tax

    Public Act 00-170

    • Provides for a credit for the donation of computers to public schools. Effective for income years commencing on or after January 1, 2000.
    • Establishes a credit for investments in an eligible urban reinvestment project or eligible industrial site investment project. Effective July 1, 2000.

    Sales and Use Tax

    Public Act 00-170

    Numerous sales and use tax changes were made, effective July 1, 2000:

    • Raising the threshold for clothing exemption from items costing less than $50 to items costing less than $75;
    • Increasing the exemption for items sold in vending machines for items costing one cent to items costing 50 cents or less;
    • Exempting child car seats, college textbooks and certain passenger cars with 50MPG ratings;
    • Providing for a sales tax holiday each year for one week in August for items of clothing costing less than $300;
    • Excluding certain charges from gross receipts of Professional Employer Organizations; and
    • Providing a pilot program whereby a direct payment permit holder may apply for a sales tax credit for its purchases of computer equipment in exchange for its investment in e-commerce labs at state colleges or universities.

    Many additional sales and use tax changes were made, effective July 1, 2001:

    • Exemption for canes, support hose, closed circuit TV used as a reading aid for the visually impaired, caskets, and smoking cessation products;
    • Providing an exclusion for access charges of Internet service providers; and
    • Exemption for high speed data transmission and Internet broadband equipment used by telecommunications and cable television providers.

    Public Act 00-174

    The bill made many sales and use tax changes for sales occurring on or after October 1, 2000, including:

    • Taxing the sales of prepaid telephone calling card services at the point of sale (versus when used);
    • Adding candy, confectionery and non-alcoholic beverages to the exemption for sales of meals in schools. In addition, stating that these sales using prepaid meal plan cards or other arrangements also qualified for the exemption;
    • Adding candy, confectionery and all beverages to the exemption for sales of meals in health care facilities. In addition, expanding the exemption to allow for such sales in assisted living facilities, senior centers and day care centers;
    • Removing references to "human" and "person" in the exemption for nonprescription medicines to clarify that exemption applies to over-the-counter veterinary medicines;
    • Enabling both start-up farmers and start-up commercial fishermen to avail themselves of their respective sales tax exemptions; and
    • Exempting from use tax any tangible personal property that a retailer purchases for resale and takes out of inventory to donate to a charitable organization.

    Public Act 00-227

    The bill clarifies that out-of-state retailers do not establish nexus and are not liable for sales tax solely on the basis of interaction with an in-state fulfillment sales company that receives, fills, or ships orders for an out-of-state retailer.

    Tobacco Products Tax

    Public Act 00-170 as amended by Public Act 00-174

    Removes snuff tobacco from the 20% of wholesales sales price rate under the tobacco products tax. Instead, subjects snuff tobacco to a tax at the rate of 40¢ per ounce.


    CONNECTICUT SUPERIOR COURT
    (TAX SESSION) CASES

    CONNECTICUT SUPREME COURT

    Federal Deposit Insurance Corporation v. Crystal Federal Deposit Insurance Corporation v. Meehan, 251 Conn. 748 (December 28, 1999). The Court held that the trial court has subject matter jurisdiction to hear the plaintiffs' new legal theory in support of an offset of its assessments, despite the taxpayer's failure to present this argument to the Commissioner as required by Conn. Gen. Stat. §12-225. The Court held that "under the circumstances of this case, the failure of the banks to have filed amended returns and claims for refunds pursuant to Conn. Gen. Stat. §12-225(b)(1) did not deprive the trial court of jurisdiction to consider the FDIC's claims." 251 Conn. 748, 754. The Court stated that "it is consistent with principles of equity to permit (the taxpayers) to avail themselves of [a new] theory, if valid, to regain the additional taxes imposed by the deficiency assessments that they had paid under protest." Id. at 765. The Supreme Court remanded this joint appeal back to the trial court to hear the issue of whether the State's different tax treatment of income from federal and state bonds violated the U.S. Constitution.

    T.W.L.S. Management Company, Inc. v. Gavin, 253 Conn. 452 (June 13, 2000). The Court, in a per curiam decision, affirmed the Tax Court's decision of May 13, 1999, ordering the Commissioner to refund the taxpayer $387,433.19 plus interest. The Tax Court had determined that the services in question were management services which, pursuant to Conn. Gen. Stat. §12-407(8)(e) should have been excluded from sales and use taxes not personnel services which are taxable under Conn. Gen. Stat. §12-407(2)(i)( C).

    CONNECTICUT SUPERIOR COURT
    (Tax Session)

    Gene Gavin, Commissioner v. Estate of William C. Coroley, Superior Court Tax Session (Aronson, J.) No. CV 98-0492606 S (November 18, 1999) (Succession Tax). The Tax Court held that the present value of the life estate of the decedent's wife was not impossible to compute. It also found no contingency as to who will take under the terms of the will. It determined that Conn. Gen. Stat. §12-367(b) provides the proper authority for the probate court to determine the succession taxes. The Court also held that in calculating the succession taxes due, the actual age of the life tenant as of the date of decedent's death should be used.

    Vito Covelli v. Gavin, Superior Court Tax Session (Aronson, J.T.R.) No. CV 98-0492271 S (January 13, 2000). This marijuana and controlled substances tax case had been remanded to the trial court by the Supreme Court. The trial court found that the taxpayer was in possession and control of a truck in which drugs were found and that the plaintiff was a "dealer" within the meaning of Conn. Gen. Stat. §12-651(c), thereby concluding that Covelli was liable for the tax, penalty and interest.

    Andersen Consulting, LLP v. Gavin, Superior Court Tax Session (Aronson, J.T.R.) No. CV 98-0492505 S (February 3, 2000). The Department denied the taxpayer's refund claim for services performed under several contracts, determining that the taxpayer provided taxable computer processing services under Conn. Gen. Stat. §12-407(2)(i)(A). The Court ruled in favor of the taxpayer, finding that the "true object" of the contracts was to provide computer software, not computer and data processing services. The Court held that Andersen Consulting sold its customers computer software, which is an intangible and not subject to sales and use taxes. Note: The General Assembly made amendments to the definition of software and data processing services in 2000 Public Acts 174, §§71-74, which impacted the holding of this case.

    Stewart J. Leonard, Sr. d/b/a Stew Leonard's Dairy v. Commissioner of Revenue Services, Superior Court Tax Session (Aronson, J.T.R.) No. CV 98-0492503 S (April 19, 2000). Based on the taxpayers guilty plea to federal income tax fraud, and relying on Conn. Gen. Stat. §12-415the Department issued an assessment going back more than three years, the standard limitation period for assessments under Conn. Gen. Stat. §12-415. The Court found that the Commissioner failed to meet his burden of proving fraud. Absent proof of fraud, the Court held that the Commissioner was barred from assessing periods closed by the three-year limitation period.

    Connecticut Yankee Atomic Power Company v. Commissioner of Revenue Services; Northeast Nuclear Energy Company v. Commissioner of Revenue Services Superior Court Tax Session (Aronson, J.T.R.) Nos. CV 98-0492508 S and CV 98-0492509 S (April 27, 2000) also reported at 46 Conn. Sup. 509 (September 5, 2000). This sales and use taxes joint appeal addressed the issue of whether certain radioactive waste constituted "hazardous waste" within the meaning of the sales and use tax exclusion of hazardous waste removal services from taxable services to industrial, commercial or income-producing real property contained in Conn. Gen. Stat. §12-407(2)(i)(I). The Court held that the term "hazardous waste" as in effect during the audit period should be given its ordinary, commonly understood meaning and concluded that such definition encompassed radioactive waste.

    Eastman Kodak Company v. Commissioner of Revenue Services Superior Court Tax Session (Aronson, J.T.R.) No. CV -98-0492598 S (May 26, 2000). This Corporation Business Tax case focused on whether the Department could disallow 8/23rds of commissions paid by Eastman Kodak to its wholly-owned subsidiary, a foreign service corporation (FSC), as expenses related to dividends under Conn. Gen. Stat. §12-217. The Court held that the Commissioner could not apply an informal rule disallowing 8/23rds of the commissions as expenses related to dividends because that "rule" was not a regulation nor had it been formalized and publicized.


    Connecticut’s Taxes

    The Department collected
    $9.6 billion in revenue
    for fiscal year 1999-00.

    77% of the collections
    were attributable to
    Income Tax and Sales & Use Tax
    .


    State Revenue Sources

    Fiscal Year Ending

    Tax Type & Citation

    June 30, 1998

    June 30, 1999

    June 30, 2000

    Admissions & Dues Tax Ch. 225

    $ 24,931,455

    $ 26,869,337

    $ 26,651,148

    Alcoholic Beverages Tax Ch. 220

    39,772,258

    40,280,872

    40,964,731

    Automobile Rental Surcharge Ch. 228h

    137,220

    216,332

    549,713

    Capital Gains, Dividends & Interest Tax Ch. 224

    585,115

    672,693

    139,123

    Cigarette Tax Ch. 214

    119,055,991

    117,425,635

    Community Antenna TV Systems Cos. Ch. 211

    23,896,719

    23,260,210

    24,698,633

    Connecticut Estate Tax Ch. 217

    9,802,849

    15,907,293

    29,925,060

    Controlled Substances Ch. 228d

    2,461

    1,072

    962

    Controlling Interest Transfer Ch. 228b

    2,389,927

    3,076,064

    924,195

    Corporation Business Tax Ch. 208 & 209

    659,870,671

    616,763,963

    585,261,737

    Dry Cleaners Surcharge Ch. 211b

    754,344

    752,811

    766,029

    Electric and Power Companies Ch. 212

    26,774,640

    27,906,578

    28,376,064

    Fiduciary Estate Tax Ch. 218a

    5,066

    4,950

    5,178

    Gas Companies Ch. 212

    29,590,674

    29,375,020

    32,858,100

    Gas and Electric Companies Ch. 212

    89,333,952

    86,620,610

    79,978,795

    Gift Tax Ch. 228c

    20,280,134

    33,233,694

    32,765,696

    Hazardous Waste Tax Ch. 445

    900,176

    1,203,144

    994,813

    Health Care Centers Ch. 207

    30,729,025

    30,570,129

    37,187,076

    Hospital Gross Earnings Ch. 211a

    140,929,676

    128,079,253

    69,180,430

    Income Tax Ch. 229

    3,595,759,981

    3,820,129,771

    4,238,128,647

    Inheritance Tax Ch. 216

    269,428,148

    221,660,873

    198,142,011

    Insurance Companies, Domestic Ch. 207

    34,697,627

    33,010,461

    26,874,578

    Insurance Companies, Foreign Ch. 207

    121,926,324

    128,182,999

    131,900,557

    Motor Carrier Road Tax Ch. 222

    9,826,389

    10,078,118

    Motor Vehicle Fuels Tax Ch. 221

    489,886,263

    496,658,719

    Nursing Home Provider Tax Ch. 228f

    66,624

    0

    492

    Occupational Tax Ch. 876

    5,719,665

    5,859,113

    5,914,532

    Petroleum Tax (Oil Companies) Ch. 227

    80,948,193

    63,254,665

    103,338,078

    Railroad Companies Ch. 210

    108,682

    152,116

    167,364

    Real Estate Conveyance Tax Ch. 223

    91,206,241

    103,737,107

    113,642,688

    Sales and Use Taxes Ch. 219

    2,929,980,639

    3,106,764,984

    Seed Oyster Tax Ch. 491

    13,060

    10,022

    308

    Solid Waste Ch. 446d

    2,320,805

    2,353,064

    2,218,677

    Steam Companies Ch. 212

    433,744

    386,430

    184,515

    Telecommunications Ch. 210a

    0

    0

    7

    Tire Fee Ch. 446d

    922,807

    134,111

    5,447

    Tobacco Products Ch. 214a

    4,606,114

    4,951,833

    Tourism Account Surcharge Ch. 228e

    4,166,079

    4,152,992

    4,780,821

    Unauthorized Insurers Ch. 698d

    1,969,553

    1,599,357

    1,880,792

    Unincorporated Business Tax Ch. 228

    1,167

    0

    0

    Unrelated Business Income Tax Ch. 208a

    3,450,817

    2,356,591

    2,061,711

    Water Companies Ch. 212

    278,235

    3,179

    0

    Total

    $8,747,915,833

    $ 9,005,132,271

    9,556,347,998


    Personal Income

    4238.1

    Sales & Use

    3106.3

    Corporation

    585.3

    Motor Fuels

    506.4

    Inheritance

    228.1

    Hospital G.E.

    69.2

    Insurance

    197.8

    Cigarette

    117.1

    Other Taxes

    508

    9048.3

    9556.3

    Personal Income

    4238.1

    Sales & Use

    3106.3

    Corporation

    585.3

    Motor Fuels

    506.4

    Inheritance

    228.1

    8664.2

    Other Taxes

    892.1

    tax receipts bar graph

    INCOME TAX

    A tax is imposed on the Connecticut taxable income of resident individuals, trusts, and estates at a rate of 4.5%. Nonresidents and part-year resident individuals, trusts and estates are also subject to the tax on income derived from or connected with sources within the State. Connecticut taxable income is defined as adjusted gross income for federal tax purposes with certain modifications and exemptions described below.

    Revenue

    FY 1997-98

    $3,595,759,981

    1998-99

    3,820,129,771

    1999-00

    4,238,128,647

    Number of Taxpayers/Filing Frequency

    1.6 million taxpayers/ Annually
    Taxpayers who expect to owe more than $500 in income tax, in addition to income tax withheld, are required to file four estimated tax payments.

    Basis and Rate

    For taxable years commencing on or after January 1, 1999.

    Filing Status

    Connecticut Taxable Income

    Rate of Tax

    Single/

    Not over $10,000 3%
    Married Filing Separate Over $10,000 $300, plus 4.5% of the excess over $10,000

    Head of Household

    Not over $16,000 3%
    Over $16,000 $480, plus 4.5% of the excess over $16,000

    Joint

    Not over $20,000 3%
    Over $20,000 $600, plus 4.5% of the excess over $20,000

    Exemptions

    • $12,250 for unmarried individuals, for taxable years commencing on or after January 1, 2000, but prior to January 1, 2001. For taxpayers with Connecticut AGI in excess of $24,500, the exemption decreases by $1,000 for each $1,000 increase in Connecticut AGI. The exemption is phased out at $35,500.
    • $12,000 for married persons filing separately. For taxpayers with Connecticut AGI in excess of $24,000, the exemption decreases by $1,000 for each $1,000 increase in Connecticut AGI. The exemption is phased out at $35,000.
    • $19,000 for heads of household. For taxpayers with a Connecticut AGI in excess of $38,000, the exemption decreases by $1,000 for each additional $1,000 of Connecticut AGI. There is no exemption if the taxpayer earns more than $56,000.
    • $24,000 for married persons filing jointly. The exemption for joint filers decreases by $1,000, for taxpayers whose Connecticut AGI exceeds $48,000, for each $1,000 increase in Connecticut AGI. The exemption is phased out at $71,000.
    • Social Security benefits for single filers and married individuals filing separately whose federal adjusted gross income for the taxable year is less than $50,000. Social Security benefits for married individuals filing jointly and head of household filers whose federal adjusted gross income for the taxable year is less than $60,000. Applicable to taxable years commencing on or after January 1, 1999.

    Common Additions

    • Interest on state and local obligations other than Connecticut;
    • Exempt-interest dividends (other than those derived from obligations of the State of Connecticut or its municipalities);
    • Pro rata share of certain S Corporation shareholder's loss;
    • The total taxable amount of a lump sum distribution for the taxable year deductible from gross income in calculating federal adjusted gross income; and
    • Loss on sale of Connecticut bonds.

    Common Subtractions

    • Interest on U.S. obligations;
    • Dividends from certain mutual funds consisting of U.S. obligations;
    • Social Security Benefit Adjustment;
    • Refunds on state and local income taxes;
    • Tier 1 and Tier 2 railroad retirement benefits and supplemental annuities;
    • Pro rata share of certain S Corporation shareholder's income; and
    • Gain on sale of Connecticut bonds.

    Withholding Requirement

    Connecticut requires anyone who maintains an office or transacts business in Connecticut, and who is considered an employer for federal income tax withholding purposes, to withhold Connecticut income tax whether or not the payroll department is located in Connecticut.

    Estimated Tax Payments

    Taxpayers must make estimated payments if their Connecticut income tax (after tax credits) minus Connecticut tax withheld is more than $500, and you expect your Connecticut income tax withheld to be less than your required annual payment.

    Connecticut Alternative Minimum Tax

    Taxpayers who are subject to, and required to pay, the federal alternative minimum tax are subject to the Connecticut Alternative Minimum Tax. The alternative minimum tax is computed on the lesser of 19% of the adjusted federal tentative minimum tax, or 5% of adjusted federal alternative minimum taxable income. The Connecticut Alternative Minimum Tax has been in effect since the 1993 income year.

    Tax Credit For Property Taxes Paid To A Political Subdivision

    Connecticut residents are eligible for an income tax credit for property taxes paid to a Connecticut political subdivision on a primary residence and/or privately owned or leased motor vehicle. The maximum credit for taxable years commencing on or after January 1, 1999 is $425 per return. The maximum credit for taxable years commencing on or after January 1, 2000 is $500 per return. The credit cannot exceed the amount of qualifying property taxes paid or income tax liability. If an individual paid more than $100 in property tax, a limitation based on filing status and Connecticut Adjusted Gross Income may apply.

    Tax Credit For Income Taxes Paid To Qualifying Jurisdictions

    Connecticut residents may claim an income tax credit if any part of their income was taxed by a qualifying jurisdiction. A qualifying jurisdiction includes another state of the United States, a local government within another state or the District of Columbia. A qualifying jurisdiction does not include the State of Connecticut, the United States or a foreign country or its provinces.


    SALES AND USE TAXES

    Connecticut levies sales and use taxes on the gross receipts of retailers from the sale of tangible personal property at retail, from the rental or leasing of tangible personal property, and on the gross receipts from the rendering of certain business services.

    Revenue

    FY 1997-98 $ 2,775,069,610
    1998-99 2,929,469,393
    1999-00 3,106,764,984

    Basis and Rate

    6%  non the gross receipts from the sale, rental or leasing of tangible personal property, and the rendering of certain business services (general rate);

    5.75%  on patient care services by hospitals;

    4.5%  on the sale of a motor vehicle to a nonresident member of the United States armed forces serving on active duty in Connecticut;

    4%   on certain renovation and repair services to residential property. The tax on these services is being phased out and is reduced from 4% to 2% on July 1, 2000;

    3%   on computer and data processing services. The tax on these services is being phased out and is reduced from 3% to 2% on July 1, 2000; and

    12%   on the rental of rooms in a hotel or lodging house.

    Exemptions

    Conn. Gen. Stat. §12-412 provides for various exemptions from the sales and use taxes for the sale of, storage, use or other consumption of numerous goods and services.

    The table that follows provides a summary of the major exemptions claimed by businesses during Fiscal Year 1999-00, and the amount of revenue forgone for each exemption monitored. Note that the revenue forgone for each item is computed at the 6% rate.

    1999-00 SALES TAX EXEMPTIONS

    Deductible Item

    Total Deduction
    (in millions)

    Revenue Forgone
    (in millions)

    Sale for Resale – Goods

    $ 56,156.9

    $3,369.4

    Sale for Resale - Leases/Rentals

    1,430.3

    85.8

    Sale for Resale - Labor/Services

    1,305.4

    78.3

    Newspapers/Magazines by Subscription

    1,554.2

    93.3

    Trucks with Gross Vehicle Weight Over 26,000 Pounds or Used for Carriage of Interstate Freight

    212.1

    12.7

    Food Products for Human Consumption

    4,053.8

    243.2

    Fuel for Motor Vehicles

    2,493.4

    149.6

    *Electricity/Gas/Heating Fuel (residential)

    1,487.4

    89.2

    *Electricity ($150 monthly per business)

    56.5

    3.4

    *Electricity/Gas/Heating Fuel for Manufacturing or Agricultural Production

    394.4

    23.7

    Aviation Fuel

    27.6

    1.7

    Sales of Tangible Personal Property to Farmers

    89.0

    5.3

    Machinery/Materials/Tools/Fuel – Mfg. Product

    2,035.5

    122.1

    Machinery/Materials/Tools/Fuel – Comm. Fishing

    190.0

    11.4

    Machinery/Materials/Equip. – Printing

    79.0

    4.7

    Out-of-State - Sale of Goods

    31,521.7

    1,891.3

    Out-of-State - Leases/Rentals

    609.1

    36.5

    Out-of-State - Labor/Services

    5,808.2

    348.5

    Sales of Motor Vehicles, Vessels to Nonresidents

    334.4

    20.1

    Prescription Medicines - Sale of Goods

    1,944.0

    116.6

    Non-Prescription Medicines and Diabetic Equipment - Sale of Goods

    203.0

    12.2

    Charitable/Government/Religious – Sale of Goods

    4,984.5

    299.1

    Charitable/Government/Religious - Leases/Rentals

    413.2

    24.8

    Charitable/Government/Religious - Labor/Services

    2,879.2

    172.8

    *For Utility and Heating Companies Only

    Deductible Item

    Total Deduction
    (in millions)

    Revenue Forgone
    (in millions)

    Pollution Abatement

    103.7

    6.2

    Non-Taxable Labor/Services

    8,986.6

    539.2

    Business Services/Parent Owned Subs.

    878.5

    52.7

    Trade-Ins of Like-Kind Personal Property

    659.9

    39.6

    Taxed Goods returned within 90 days

    150.0

    9.0

    Oxygen, Plasma, Prostheses, etc.

    173.0

    10.4

    Printed Material for Future Delivery Out of State

    36.5

    2.2

    Clothing/Footwear under $50

    1,913.8

    114.8

    Material for Non-commercial Production of Clothing

    8.0

    0.5

    Funeral Expenses up to $2,500

    50.8

    3.0

    Repair or Replacement Parts/Repair Services to Aircraft

    44.8

    2.7

    Certain Machinery - Manufacturing Recovery Act of 1992 (Difference between the 6% and 3% Rates)

    43.9

    2.6

    Sales of Machinery, Equipment, Tools, Supplies and Fuel used in the Biotechnology Industry

    19.8

    1.2

    Sales of Repair and Maintenance Service to Vessels

    33.4

    2.0

    Computer and Data Processing Services
    (Difference between the 6% and 3% Rates)

    536.5

    32.2

    Renovation and Repair Services for Residential Real Property
    (Difference between the 6% and 4% Rates)

    51.5

    3.1

    Hospital Patient Care Services
    (Difference between the 6% and 5.75% Rates)

    133.1

    8.0

    Other Adjustments

    14,267.4

    856.0

    TOTAL

    $148,353.6

    $8,901.2

    Number of Taxpayers/Filing Frequency

    189,375 Taxpayers

    25,200 Taxpayers / Monthly
    94,025 Taxpayers / Quarterly
    70,150 Taxpayers / Annually

    Comparative Data

    Table I provides a summary of all gross receipts reported under the sales and use taxes attributable to various components.  Note that the figures are gross, and do not necessarily represent taxable receipts.

    Table I
    (In Millions)

    Gross Receipts Attributable to:

    FY 1997-98

    FY 1998-99

    FY 1999-00

    Sales of Tangible Personal Property

    $144,355.7

    $147,488.9

    $157,838.5

    Leasing/Rental of Tangible Personal Property

    3,209.4

    3,469.9

    3,466.2

    Rendering of Services

    29,188.9

    30,671.2

    31,808.4

    Business Use Purchases

    2,472.9

    2,796.0

    2,996.3

    Room Occupancy

    464.8

    514.3

    573.1

    Table II, provides a summary of retail sales for the State of Connecticut for the past three fiscal years.  The figures reflect fluctuations in sales of durable and non-durable goods.  Durable goods are usually more expensive items expected to last more than three years, such as automobiles and large household appliances.  These sales are provided by selected major groups within the Standard Industrial Classification (SIC) system.  Approximately half of all the sales and use tax revenue is generated by the retail trade sector.

    TABLE II:  Retail Sales Volume - Fiscal Years 1998-2000
    (In Millions)

    FY 1997-98

    FY 1998-99

    FY 1999-00

    Hardware (SIC 52)

    $1,512

    $2,320

    $2,418

    General Merchandise (SIC 53)

    3,793

    3,742

    3,744

    Food Products (SIC 54)

    6,479

    6,922

    7,139

    Automotive Products (SIC 55)

    7,654

    7,963

    8,712

    Apparel & Accessory Stores (SIC 56)

    1,896

    2,047

    2,195

    Home Furniture, Furnishings, & Appliances (SIC 57)

    4,332

    4,011

    4,299

    Eating & Drinking
    Establishments (SIC 58)

    2,799

    2,966

    3,148

    Misc. Retail Stores (SIC 59)

    9,425

    9,865

    10,975

    TOTAL (SIC 52-59)

    $ 37,890

    $39,836

    $42,630

    Table II provides total sales and use taxes revenues of the Standard Industrial Classification (SIC) major industrial categories for fiscal years 1998 through 2000.  The revenues are from regular payments and represent 94% of the total sales and use taxes collected in FY 1999-00.  The figures do no include any audit or late return payments.

    TABLE III: Sales and Use Tax - From Regular Payments
    Fiscal Years 1998-2000
    (In Millions)

    SIC Code

    FY
    1997-98

    FY
    1998-99

    FY
    1999-00

    Hardware

    52

    $ 72.3

    $ 121.4

    $ 127.2

    General Merchandise

    53

    139.4

    134.9

    136.6

    Food Products

    54

    85.3

    90.2

    95.2

    Automotive Products

    55

    304.1

    325.7

    354.1

    Apparel & Accessory Stores

    56

    43.3

    47.5

    52.4

    Home Furniture, Furnishings, & Appliances

    57

    170.2

    137.5

    133.9

    Eating & Drinking Establishments

    58

    154.9

    164.4

    175.0

    Misc. Retail Stores

    59

    271.2

    299.5

    312.6

    Subtotal RETAIL Sales & Use Tax Revenue

    52-59

    $ 1,166.3

    $ 1,321.1

    $ 1,387.0

    CONSTRUCTION

    1500-1799

    81.8

    91.8

    114.3

    MANUFACTURING

    2000-3999

    170.8

    183.2

    169.7

    WHOLESALE

    5010-5199

    130.5

    140.3

    151.8

    SERVICES (PERSONAL & BUSINESS)

    7000-8999

    580.8

    596.3

    616.6

    ALL OTHER BUSINESSES

    405.5

    438.9

    493.9

    TOTAL SALES & USE TAX REVENUE

    $ 2,610.1

    $ 2,771.6

    $ 2,933.3


    CORPORATION BUSINESS TAX

    A corporation carrying on or doing business in Connecticut is subject to the Corporation Business Tax. Most corporations in Connecticut must file returns and pay corporation business tax although some corporations are exempt.

    Corporations must calculate their tax under two alternative methods and remit the higher tax. If a corporation owes less than $250 under both methods, it pays the minimum tax of $250.

    Revenue

    FY 1997-98

    $ 659,870,670

    1998-99

    616,763,963

    1999-00

    585,261,737

    Basis and Rate

    Net Income Base Method

    The method under which the majority of Corporation Business Tax revenue is derived is the Net Income Base. Corporations compute their Connecticut Net Income by applying the adjustments allowed or required by Connecticut law to the federal taxable income of the corporation. Additions to the base include interest income wholly exempt from federal tax and unallowable deductions for corporation or franchise taxes paid to other states. Deductions from the federal base include 70% of the dividends received from domestic corporations in which ownership is less than 20% and capital loss carryover, if not deducted in computing federal capital gain.

    Connecticut uses an apportionment method to determine the portion of income taxable in the state. This method isolates what percentage of a corporation's economic activity takes place in Connecticut. Three factors - sales, payroll and property compare Connecticut to the nation to arrive at this percentage. The sales factor is double weighted.

    Special single-factor apportionment rules are currently provided for financial service companies. For income years beginning on or after January 1, 2001, manufacturers will also apportion income using a single-factor formula. Broadcasters will be allowed a single factor formula for income years beginning on or after October 1, 2001.

    Connecticut Net Income is taxed at the rate of 7.5%.

    Capital Base Method

    The second and alternate method corporations must compute their tax under is the Capital Base. The capital base is the total value of the average capital stock, surplus and undivided profits, and surplus reserves, less the average values of deficits and stockholdings in private corporations. Multistate corporations multiply their capital base by an apportionment fraction.

    The capital base is taxed at a rate of 3.1 mils ($0.0031) per dollar. Financial service companies are excluded from the capital base and minimum tax. Under the capital base method, a corporation is limited to a maximum tax of $1,000,000.

    Minimum Tax

    If a corporation's calculation of the tax is less than $250 under both of the two previous methods, it pays a minimum tax, which is currently $250. The majority of corporations pay the minimum tax.

    Subchapter S Corporations

    Conn. Gen. Stat. §12-217(c)(2) phases out the Corporation Business Tax on the net income of Subchapter S corporations by reducing the percentage of an S corporation's net income subject to tax until it is exempt in the 2001 income year. These percentages are shown below.

    Income Year Commencing Net Income Subject to Tax
    1/01/00 - 12/31/00

    30%

    on or after 1/01/01

    0%

    Subchapter S corporations will continue to be subject to the tax under the capital and minimum tax bases until the 2001 income year. These companies are allowed credits to the extent and in the same percentage that their income is subject to the net income base. Exceptions to this rule allow Subchapter S corporations to claim the entire amount of their available Neighborhood Assistance Act and Housing Program Contribution credits.

    Combined Returns/Preference Tax

    If a corporation is permitted to file a federal consolidated return, it may file a combined return in Connecticut. Filing a combined return allows a group of corporations engaged in business in Connecticut to file jointly. Their combined Connecticut tax liability is determined after each corporation individually apportions its income to Connecticut.

    A preference tax is imposed on corporations filing a combined return. These corporations are not entitled to the first $25,000 of tax savings over what they would pay if they file separately. Combined filers must determine the total tax due as if they were filing separately. The difference, up to $25,000, between this amount and the total combined tax is the preference tax and must be added to the total combined tax.

    The total amount due for 1998 combined filers had they filed separate single returns would have been $429.1M. The preference tax due by these filers was $9.4M. The total tax due by combined filers was $236.8M, including the $9.4M in preference tax.

    Exemptions

    • Cooperative housing corporations;
    • Homeowners associations;
    • Domestic international sales corporations;
    • Insurance companies;
    • Certain political organizations or associations exempt from federal income taxes under §527 of the Internal Revenue Code;
    • Railroad companies subject to the gross earnings tax;
    • Companies whose corporate headquarters are located in the insurance and financial services export zone in the City of Hartford and are conducting all of their business outside the United States;
    • Non United States corporations whose sole activity conducted in Connecticut is the trading of stocks, commodities and securities; and 
    • Connecticut passive investment companies formed by financial service companies to hold and manage loans secured by real property.

    Filing Frequency

    Annually with four estimated installments.

    Number of Taxpayers

    1998 Corporation Business Tax Returns

    Number of Taxpayers

    Tax Due Before Credits

    Single Filers

    Net Income

    12,340

    $ 202,937,250

    Capital Base

    4,672

    18,222,569

    Minimum Tax

    33,043

    8,219,210

    Subchapter S Filers

    Net Income

    9,741

    70,588,782

    Capital Base

    2,930

    6,081,848

    Minimum Tax

    19,803

    4,966,443

    Combined Filers

    1,223

    236,836,395

    Total

    83,752

    $ 547,852,496

    CORPORATION BUSINESS TAX CREDITS

    The State of Connecticut offers many Corporation Business Tax credits which a corporation may take advantage of to reduce its liability to the state.

    Apprenticeship Training
    Reference: Conn. Gen. Stat. §12-217g

    A corporation that hires apprentices in the manufacturing or plastics trades may apply for a credit of up to $4,800 per apprenticeship. The amount of the credit is limited to the lesser of 50% of the actual wages paid or the total number of work hours during the year multiplied by $4.00, or $4,800, whichever is less.

    Corporations that hire apprentices in the construction trades may apply for a credit of up to $1,000 per apprenticeship. The amount of the credit is limited to the lesser of 50% of the actual wages paid or $1,000, or the total number of work hours during the year multiplied by $2.00, whichever is least.

    Clean Alternative Fuels
    Reference: Conn. Gen. Stat. §12-217i

    The Clean Alternative Fuels credit enables a business to claim credits of 10% or 50% of its expenditures on vehicles, equipment and filling stations which enable use of clean alternative fuel. Unused credit may be carried forward for three years.

    A 10% credit is allowed for the incremental cost of purchasing vehicles exclusively powered by clean alternative fuels.

    A 50% credit is available for the expenses of equipment used in a compressed natural gas, liquefied petroleum gas or liquefied natural gas filling or electric recharging station and the purchase of equipment needed to convert a vehicle to clean alternative fuel. The credit also applies to amounts spent directly on the construction of any filling station or improvements to any existing filling station in order to provide either compressed natural gas, liquefied petroleum gas or liquefied natural gas.

    Computer Donation
    Reference: Public Act 00-170

    For income years beginning on or after January 1, 2000, a new corporation business tax credit is available for the donation of new or used computers to a local or regional board of education or a public school. The amount of the credit shall not exceed 50% of the fair market value at the time of donation.

    The amount of credit granted to any business firm cannot exceed $75,000 annually. The total amount of credits allowed in any fiscal year is capped at $1 million.

    Displaced Workers Hired By Electric Suppliers
    Reference: Conn. Gen.Stat. §12-217bb

    Electric suppliers who hire workers displaced by the restructuring of the electric industry may claim a credit of $1,500 for each displaced worker employed at least 6 months. The credit is effective for income years beginning on or after January 1, 1999.

    Donation of Open Space Land
    Reference: Public Act 99-173

    For income years beginning on or after January 1, 1999 this new credit is available equal to 50% of the use value of the donation of land to be permanently preserved as protected open space. Donations of land must be made to the state, a political subdivision of the state, or a nonprofit land conservation organization and may include any discount in the sales price.

    Electronic Data Processing Equipment
    Reference: Conn. Gen. Stat. §12-217t

    The Electronic Data Processing Equipment Property Tax credit provides a 100% credit for property tax owed and paid on electronic data processing equipment. Unused credits may be carried forward for five succeeding income years.

    Employer Assisted Housing
    Reference: Conn. Gen. Stat. §12-217p

    This credit is available for monies paid to a revolving loan fund for employer assisted housing. This fund must be established and maintained by the corporation for 5 years and provide revolving loans to its low and moderate income employees. The program is administered by the Connecticut Housing Finance Authority and is capped at $1 million per year. The credit is limited to $100,000 annually per business firm and may be carried back or forward for five years.

    Enterprise Zone or Entertainment District
    Reference: Conn. Gen. Stat. §12-217e as amended by P.A. 00-174

    The Enterprise Zone or Entertainment District Credit allows a business credit of 50% of their allocable tax for operating a manufacturing facility which meets certain employment criteria and is located within a designated enterprise zone or other area designated as having enterprise zone level benefits. Certification is required from the Department of Economic and Community Development. Corporations may claim this credit for 10 years beginning with the first year following the year of certification.

    Enterprise Zone Credit For Qualifying Corporations
    Reference: Conn. Gen. Stat. §12-217v

    A credit of 100% is allowed to any qualifying corporation created on or after January 1, 1997 which hires local employees qualifying under the Job Training Partnership Act to work within a designated Enterprise Zone. This credit is 100% of the corporation's tax liability for it's first three years and 50% of its liability for the next seven.

    Financial Institutions
    Reference: Conn. Gen. Stat. §12-217u

    This credit is available to financial institutions which construct a new facility and create a minimum of 1,200 new jobs. Each company must obtain an eligibility certificate from the Department of Economic and Community Development in order to claim this credit. Credit levels of 30%, 40% or 50% for years one through ten and 25% for years eleven through fifteen, are based on the number of qualified employees. This credit may be taken for up to fifteen years.

    Fixed Capital Investments
    Reference: Conn. Gen. Stat. §12-217w

    This credit is available to corporations for income years beginning on or after January 1, 1998. The credit is based on the amounts paid or incurred for any new tangible personal property that has a class life of more than four years, is not sold or leased within 12 months, and will be held and used in Connecticut for at least five years. Inventory, land, buildings and mobile transportation equipment are not included. The percentage of credit beginning January 1, 1998 is 3% of the expenditures in 1998, 4% in 1999, and 5% for income years beginning on or after January 1, 2000. Unused credits may be carried forward for five succeeding income years.

    Hiring Incentive
    Reference: Conn. Gen. Stat. §12-217y as amended by P.A. 99-203 and P.A. 00-174

    This credit is available to companies that hire recipients of the Temporary Family Assistance (TFA) program. The employees must have been receiving TFA benefits for at least 9 months and have worked at least 30 hours per week to qualify. A corporation may claim a credit of $125 for each full month that the worker is employed. Unused credits may be carried forward for five succeeding income years.

    Historic Homes Rehabilitation
    Reference: Public Act 99-173

    This new credit will be allowed for income years beginning on or after January 1, 2000. The Connecticut Historical Commission may allocate up to $3 million in credit vouchers during any fiscal year. Owners of historic homes must incur qualified rehabilitation expenditures that exceed $25,000 in order to qualify. After the work is performed and verified, a tax credit is allowed for 30% of the qualified rehabilitation expenditures. The credit is limited to $30,000 per dwelling. Unused credits may be carried forward for four succeeding income years.

    Housing Program Contribution
    Reference: Conn. Gen. Stat. §8-395 as amended by P.A. 99-173

    This tax credit program enables corporations to contribute to housing programs which benefit low and moderate income individuals and families. These programs are sponsored, developed or managed by nonprofit corporations and must be approved by the Connecticut Housing Finance Authority. The credit is the amount of the contribution, not to exceed $75,000 per business. Unused credits may be carried back to the five preceding income years and forward for five succeeding income years.

    Human Capital Investments
    Reference: Conn. Gen. Stat. §12-217x

    The Human Capital Investments credit is available for income years beginning on or after January 1, 1998. The credit is based on the amounts paid or incurred for various job training and work education programs, child care subsidies to Connecticut employees, day care facility establishment costs and donations to institutions of higher education for improvements to technology. The percentage of credit beginning January 1, 1998 is 3% of the expenditures in 1998, 4% in 1999, and 5% for income years beginning on or after January 1, 2000. Unused credits may be carried forward for five succeeding income years.

    Insurance Reinvestment Fund
    Reference: Conn. Gen. Stat. §38a-88a as amended by P.A. 00-170

    A credit may be applied against the corporation business tax for investments made through a registered fund manager.  These investments must be specifically earmarked for insurance businesses incorporated in Connecticut that occupy new facilities and create new jobs.  The credit is 10%  of amounts invested in qualified insurance businesses, beginning 3 years but not later than 7 years from the date of investment.  For years 7 through 10, the credit increases to 20% of the invested amounts.  Unused credits may be carried forward for five succeeding income years or assigned to another taxpayer.

    Managers of eligible funds must have registered with the Commissioner of Economic and Community Development by July 1, 2000 in order for their investors to be able to claim this credit.  No further credits will be allowed for investments in funds created on or after July 1, 2000.

    Machinery and Equipment
    Reference: Conn. Gen. Stat. §12-217o as amended by P.A. 99-121

    This credit is based upon the incremental increase in expenditures for machinery and equipment acquired for and installed in Connecticut. The rate of credit is either 5% or 10% depending on the number of full time employees in Connecticut. The credit became effective for income years commencing on or after January 1, 1997, however certain expenditures made during 1995 may qualify for credit in the 1997 income year.

    Manufacturing Facility in a Targeted Investment Community
    Reference: Conn. Gen. Stat. §12-217e

    A credit of 25% may be applied against the portion of the Corporation Business tax allocable to a manufacturing facility located in a targeted investment community. The Commissioner of Economic and Community Development must certify that the facility is operating in a designated area of high unemployment. The credit period lasts for ten years beginning with the first year following certification.

    Neighborhood Assistance Act Program
    Reference: Chapter 228a of the Conn. Gen. Stat. as amended by P.A. 99-83 and P.A. 99-235

    The Connecticut Neighborhood Assistance Act tax credit program is designed to provide funding for municipal and non-profit organizations.

    Businesses are granted a tax credit for contributing to certain programs approved by the Department of Revenue Services. Depending upon the nature of the program and the individuals served, credit is either 60% or 40% of the amount contributed. Unused credits may be carried back to the two preceding income years.

    The program has several statutory limits that must be followed. A business is limited to receiving $75,000 in tax credit annually. A non-profit organization is limited to receiving $150,000 in contributions in the aggregate. Also, a businesses' total charitable contributions must equal or exceed it's prior year amount. The minimum contribution on which credit can be granted is $250. The program has a $5M cap which if exceeded, results in proration of approved donations.

    Research and Experimental Expenditures
    Reference: Conn. Gen. Stat. §12-217j as amended by P.A. 99-173

    This is a tax credit based on the incremental increase in expenditures for research and experiments conducted in Connecticut. The amount of the credit equals 20% of the amount spent by the corporation directly on research and experimental expenditures which exceeds the amount spent in the preceding income year. Qualifying biotechnology companies are allowed a fifteen year credit carryforward. All other companies are allowed a fifteen year credit carryforward commencing with the 2000 income year.

    For income years beginning on or after January 1, 2000, Public Act 99-173 allows qualified small businesses to exchange unused amounts of this credit with the state for a cash payment of 65% of the value of the credit or carry these amounts forward at full value.

    Research and Development Expenses
    Reference: Conn. Gen. Stat. §12-217n as amended by P.A. 99-173

    A credit may be applied against the Corporation Business Tax for expenses of research and development conducted in Connecticut.

    The amount allowed as credit increases ratably from 1% of the annual research and development expenses paid or incurred, where such expenses equal $50 million or less, to 6% where expenses exceed $200 million. Also, for those taxpayers whose research and development expenses exceed $200 million, there is a credit reduction provision based on workforce reductions. Unused credits may be carried forward until fully taken.  The 6% credit is extended to qualified small businesses with a gross income which does not exceed $100 million for income years beginning on or after January 1, 2000.

    For income years beginning on or after January 1, 2000, Public Act 99-173 allows qualified small businesses to exchange unused amounts of this credit with the state for a cash payment of 65% of the value of the credit or carry these amounts forward at full value.

    Research and Development Grants to Institutions of Higher Education
    Reference: Conn. Gen. Stat. §12-217l

    This credit is available for 25% of the incremental increase in amounts spent by a corporation for a qualifying grant or combination of grants to any institution of higher education in Connecticut for the purposes of research and development related to advancements in technology.

    Service Facility
    Reference: Conn. Gen. Stat. §12-217e

    This credit is available to companies with a service facility located in a Connecticut targeted investment community which hire new employees and have an eligibility certificate issued by the Commissioner of Economic and Community Development. The credit is based on the portion of tax allocable to such facility and the number of new employees working there. Credit percentages range from 15% to 50% depending on the number of new employees. The credit period is ten years.

    Small Business Guaranty Fee
    Reference: Public Act 99-173

    This new credit is available for income years beginning on or after January 1, 1999. Small businesses with less than $5 million in gross receipts may claim this credit equal to the amount paid to the federal Small Business Administration as a guaranty fee to obtain guaranteed financing during the income year. Unused credits may be carried forward for four succeeding income years.

    Traffic Reduction Programs
    Reference: Conn. Gen. Stat. §12-217s

    This credit is available for corporations employing 100 or more people. This is a 50% credit for traffic reduction program expenses related to the attainment of federal Clean Air Act standards, not to exceed $250 per participating employee. Expenditures made on or after January 1, 1995 were allowed to be claimed in 1997.

    Urban or Industrial Site Investment
    Reference:  P.A. 00-170

    This credit is available for income years beginning on or after July 1, 2000 for investments in eligible urban reinvestment projects and industrial site investment projects.  Investments may be made directly or through a registered fund manager and must be certified by the Commissioner of Economic and Community Development.  The credit is 10% of the qualified investments, beginning 4 years but not later than 7 years from the date of investment.  For years 8 through 10, the credit increases to 20% of the invested amounts.  Unused credits may be carried forward for five succeeding income years or assigned to another taxpayer. 

    The table below shows the number of corporation tax credits claimed and the amounts taken for each of the corporation credit programs utilized by businesses. The figures represent credit claimed on 1998 returns and reflect any credits carried forward from prior years and used in 1998.


    Credit Claimed on 1998 Corporation Returns

    Type of Credit

    Number of Credits

    Amount of
    Credit Claimed

    Air Pollution Abatement

    18

    $ 29,416

    Apprenticeship Training

    65

    960,165

    Child Day Care

    17

    66,155

    Clean Alternative Fuels

    9

    173,585

    Electronic Data Processing

    5,842

    26,132,451

    Employer Assisted Housing

    4

    167,060

    Enterprise Zone or Entertainment District

    39

    293,618

    Fixed Capital

    4,340

    20,416,193

    Housing Program Contribution

    25

    992,250

    Human Capital

    336

    1,501,947

    Industrial Waste Treatment

    3

    3,390

    Machinery and Equipment

    1,662

    9,676,278

    Manufacturing Facility in Targeted Investment Community

    110

    954,663

    Neighborhood Assistance

    263

    2,265,651

    Opportunity Certificate

    11

    104,906

    Research & Development

    217

    30,062,084

    Research & Experimental Expenditures

    215

    19,863,128

    Research and Development Grants to Institutions of Higher Education

    10

    87,076

    Traffic Reduction

    4

    6,366

    Total

    13,190

    $113,756,382

    Graphs Removed Intentionally. Available in Print Document Only.


    ADMISSIONS, DUES AND CABARET TAX

    Revenue

    FY 1997-98

    $ 24,931,454

    1998-99

    26,869,337

    1999-00

    26,649,619

    Exemptions

    Admissions charges:

    • under $1;
    • of a non-profit organization;
    • to motion pictures not more than $5.00;
    • to live performances at non-profit theaters or playhouses, Gateway Candlewood Playhouse, and Ocean Beach Park;
    • to sporting or athletic activities in which patrons participate;
    • to any carnival or to any amusement ride;
    • to cabarets;
    • to home games of the:
      • New Britain Rock Cats,
      • New Haven Ravens, and
      • Waterbury Spirit;
    • to any event at the:
      • Hartford Civic Center,
      • New Haven Coliseum,
      • Connecticut Exposition Center,
      • New Britain Beehive Stadium,
      • New Britain Stadium,
      • New Britain Veterans Memorial Stadium,
      • Bridgeport Harbor Yard Stadium,
      • Stafford Motor Speedway,
      • Lime Rock Park,
      • Thompson Speedway,
      • Waterford Speedbowl,
      • the Tennis Foundation of Connecticut or any successor organization, and
      • William A. O'Neill Convocation Center.

    Dues:

      • Annual dues under $100;
      • Lawn Bowling Clubs;
      • Locker Rental Fees (effective October 1, 2000); 
      • Additional charges used to acquire open space land;
      • Dues of a charitable, religious, governmental or non-profit educational institution; and
      • Dues of any society, order or association operating under the lodge system or local fraternal organizations among students of a college or university.

    Number of Taxpayers / Filing FrequencyAdmissions 190 taxpayers / Monthly
    Dues 179 taxpayers / MonthlyBasis and Rate

    Admissions  8% on the admissions charge to motion pictures shows, effective July 1, 2000.  On July 1, 2001 the rate will be reduced to 6%.10% on the admission charge to any other place of amusement, entertainment or recreation.Dues 10% on membership dues or initiation fees to any social, athletic or sporting club organization.Comparative Data

    FY 1997-98

    FY 1998-99

    FY 1999-00

    Admissions

    $9,399,158

    $9,940,929

    $10,159,870

    Dues

    13,812,026

    14,839,082

    16,489,749

    Total

    $23,211,184

    $24,780,011

    $26,649,619


    ALCOHOLIC BEVERAGES TAX

    A tax is imposed on all distributors of alcoholic beverages on the sale of alcoholic beverages within Connecticut. Distributors must report the total number of gallons of each alcoholic beverage sold during the month, the opening and closing inventories and the amount of tax due. Sales of alcoholic beverages are also subject to the Sales and Use Tax.

    Revenue

    FY 1997-98

    $39,772,258 

    1998-99

    40,280,872

    1999-00

    40,964,731

    Exemption

    Sales of malt beverages which are consumed on the premises of an establishment covered by a manufacturer’s permit.

    Number of Taxpayers/Filing Frequency

    85 distributors/ Monthly

    Basis and Rate

    Beer $6.00 per barrel (31 gallons)
    Beer 20¢ per gallon
    Still Wines 60¢ per gallon
    Small Wineries 15¢ per gallon
    Sparkling Wines $1.50 per gallon
    Alcohol $4.50 per proof gallon
    Distilled Liquor $4.50 per gallon
    Liquor Coolers $2.05 per gallon

    Comparison of Gallonage

    TYPE
    FY 1997-98 FY 1998-99 FY 1999-00 (gallons) (gallons) (gallons) Beer - barrels 241,710 230,366 214,506 Beer - gallons 50,100,379 51,385,610 51,759,690 Still Wine 9,717,087 9,549,273 9,902,560 Small Wineries 64,699 59,512 59,215 Sparkling Wine 436,519 433,443 465,296 Distilled Liquor 4,785,038 4,856,618 4,882,838 Liquor Cooler 69,630 71,174 91,861 Alcohol 31,966 28,753 35,054


    CIGARETTE TAX

    An excise tax is imposed on all cigarettes sold in Connecticut. Payment is indicated by affixing stamps or heat applied decals to each pack of cigarettes. The stamps are sold to licensed dealers and licensed distributors. Sales of cigarettes are also subject to the Sales and Use Tax.

    Revenue

    FY 1997-98

    $121,936,338

    1998-99

    119,055,991

    1999-00

    117,425,635

    Exemptions

    • Sales or purchases at military bases; and
    • Cigarettes sold to any state institution other than a correctional institution.

    Number of Taxpayers/ Filing Frequency67 taxpayers/ MonthlyBasis and Rate

    25 mills per cigarette, or 50¢ per pack of twenty.


    CONTROLLED SUBSTANCES TAX

    A tax is levied on marijuana and controlled substances which creates an economic burden on drug dealers. Payment of the tax is indicated by the affixing of stamps to the marijuana or controlled substance. The tax is due and payable immediately upon acquisition or possession of the drug in Connecticut by a dealer.

    Revenue

    FY 1997-98

    $2,461

    1998-99

    1,072

    1999-00

    962

    Basis and Rate$3.50 per gram of marijuana;
    $2.00 per gram of controlled substance; and
    $2,000 per 50-dosage unit of controlled substance not sold by weight.


    CONTROLLING INTEREST TRANSFER TAX

    A tax is imposed on the transfer of a controlling interest in a corporation, partnership, association, trust or other entity, where an entity owns an interest in Connecticut real property with a value of at least $2,000. In a corporation, "controlling interest" means more than 50% of the combined voting power of all classes of stock in the corporation. For all other entities, "controlling interest" is an amount greater than 50% of the capital, profits or beneficial interest in that entity.

    Revenue

    FY 1997-98

    $2,389,927 

    1998-99

    3,076,064

    1999-00

    924,194

    Exemptions

    • Sales or transfers that effectuate a mere change of identity or form of ownership or organization where there is no change in the beneficial ownership of the entity;
    • Sale or transfer of a controlling interest in any entity which possesses an interest in real property located in an enterprise zone;
    • Transfers of land resulting from eminent domain proceedings;
    • Mortgage deeds;
    • Deeds to or by the United States of America, State of Connecticut or any political subdivision or agency thereof;
    • Tax deeds;
    • Deeds releasing any property which is a security for a debt or other obligation; and
    • Deeds to any corporation, trust or other entity, of land to be held in perpetuity for educational, scientific, aesthetic or other equivalent passive uses (pending determination by the Internal Revenue Service).

    Number of Taxpayers / Filing Frequency

    23 transfers / The month following the month in which the transfer was made.

    Basis and Rate

    1.11% on the sale or transfer of a controlling interest. Also, an additional tax not to exceed 10% on the value of open space land, farmland and forestland, depending on the holding period, may be levied.


    DRY CLEANING SURCHARGE

    The Dry Cleaning Surcharge is used to provide grants to dry cleaning establishments for the purposes of the containment and removal or mitigation of environmental pollution resulting from dry cleaning activity. The surcharge is also used to fund measures, which are approved by the Commissioner of Economic and Community Development, undertaken to prevent pollution. Monies collected are deposited into the Dry Cleaning Remediation Account, which is used to provide these grants.

    Revenue

    FY 1997-98

    $748,343 

    1998-99

    752,810

    1999-00

    766,029

    Basis and Rate

    1% of gross receipts at retail

    Number of Taxpayers/Filing Frequency

    599 taxpayers/Quarterly


    GIFT TAX

    Gifts which are taxable for federal purposes, e.g., certain gifts over $10,000, are also subject to the Connecticut Gift Tax. The tax applies to the transfer of personal (tangible or intangible) and real property situated within the state by Connecticut residents and nonresidents.

    Revenue

    FY 1997-98

    $ 20,280,134

    1998-99

    33,233,693

    1999-00

    32,765,696

    Exemptions

    • The first $10,000 of gifts to any donee; and
    • Gifts made by married couples may be considered as having been made one-half by each spouse. (Therefore, the first $20,000 of gifts made by consenting spouses is exempt.)

    Basis and Rate

    Amount of Taxable Gift Through Calendar Year 2000

    Tax Rate

    $25,000 or less

    1%

    Over $25,000 but not over $50,000

    $250 + 2% of amount over $25,000

    Over $50,000 but not over $75,000

    $750 + 3% of amount over $50,000

    Over $75,000 but not over $100,000

    $1,500 + 4% of amount over $75,000

    Over $100,000 but not over $200,000

    $2,500 + 5% of amount over $100,000

    Over $200,000

    $7,500 + 6% of amount over $200,000

    Public Act 00-170 reduces the tax on gifts under $1 million incrementally over a six -year period, starting with gifts made during calendar year 2001.  The tax rates for calendar year 2001 are shown below:

    Amount of Taxable Gift Through Calendar Year 2001

    Tax Rate

    $25,000 or less

    exempt

    Over $25,000 but not over $50,000

    $250 + 2% of amount over $25,000

    Over $50,000 but not over $75,000

    $750 + 3% of amount over $50,000

    Over $75,000 but not over $100,000

    $1,500 + 4% of amount over $75,000

    Over $100,000 but not over $675,000

    $2,500 + 5% of amount over $100,000

    Over $675,000

    $31,250 + 6% of amount over $675,000

    Detail of Revenue

    For Fiscal Year 1999-00, revenue collected amounted to $32,765,696. Most of this revenue is attributed to calendar year 1999 returns. A breakdown is shown below.

    1999 GIFT TAX RETURNS

    Amount of Taxable Gift Due # of Returns Tax Due
    $25,000 or less 5,791 $318,018
    Over $25,000 but not over $50,000 1,467 727,415
    Over $50,000 but not over $75,000 788 878,985
    Over $75,000 but not over $100,000 512 1,025,815
    Over $100,000 but not over $200,000 786 3,643,616
    Over $200,000 but not over $300,000 235 2,402,264
    Over $300,000 but not over $400,000 139 2,225,067
    Over $400,000 but not over $500,000 109 2,446,241
    Over $500,000 but not over $1,000,000 189 6,604,708
    Over $1,000,000 52 9,035,840
    Total 10,068 $29,307,969

    HAZARDOUS WASTE ASSESSMENT

    An assessment is imposed on generators of hazardous waste who are required to file a manifest, on treatment facilities required to file a manifest resulting from their treatment process, and on generators of hazardous wastes who ship hazardous waste to treatment or disposal facilities in Connecticut.  A sunset provision has eliminated this assessment as of July 1, 2000.

    Revenue

    FY 1997-98

    $900,175

    1998-99

    1,203,143

    1999-00

    994,813

    Exemptions

    • Hazardous waste that is recycled;
    • Residue resulting from the processing or treatment of hazardous waste at an approved facility;
    • Hazardous waste previously taxed; and
    • Hazardous waste removed or relocated as part of property remediation projects.

    Number of Taxpayers/Filing Frequency

    1,790 taxpayers / Quarterly

    Basis and Rate

    Metal Hydroxide Sludge
    from Wastewater Treatment
    5¢ per gallon
    1/2¢ per pound
    $10.00 per cubic yard
    Other Hazardous Waste 6¢ per gallon
    3/4¢ per pound
    $12.00 per cubic yard

    HOSPITAL GROSS EARNINGS TAX

    A tax was imposed on the gross earnings of each hospital in Connecticut.  This tax has been repealed for calendar quarters commencing on or after April 1, 2000.

    Revenue

    FY 1997-98

    $140,929,676

    1998-99

    128,079,253

    1999-00

    69,180,430

    Number of Taxpayers / Filing Frequency

    30 taxpayers / Quarterly

    Basis and Rate

    4.25% of the gross earnings of each hospital.  The rate was reduced from 7.25% to 4.25% for calendar quarters commencing on or after October 1, 1999.

    Exemption

    Short term acute care hospitals operated exclusively by the State of Connecticut other than a short-term acute care hospital operated by the State of Connecticut as a receiver pursuant to chapter 920 of the Connecticut General Statutes.  


    INSURANCE PREMIUMS TAX

    Insurance companies are taxed in Connecticut on the total net direct premiums received from policies written on property or risks within the State. In addition, total net direct subscriber charges received on any new or renewal contract or policy by a health care center is also taxed. Persons who purchase insurance from unauthorized insurers are also subject to tax. Unauthorized insurers are defined as an insurer who has not been granted a certificate of authority by the Commissioner to transact the business of insurance in Connecticut, or an insurer transacting business not authorized by a valid certificate.

    Revenue

    FY 1997-98

    $189,322,523 

    1998-99

    193,362,947

    1999-00

    197,843,003

    Exemptions

    • Premiums sold for ocean and inland marine insurance of nonresident and foreign companies; 
    • Medicaid, Medicare, HUSKY Plan, and State Employee Health plans from health care centers subscriber charges; and
    • New or renewal contracts or policies written to provide health care coverage to retired teachers, spouses or a surviving spouse from net direct subscriber charges of health care centers.
    • Number of Taxpayers/Filing Frequency

      1,400 insurance companies/ Annually

      Quarterly estimated payments for domestic and foreign insurers and health care centers.

      Basis and Rate

      • 1.75% of net direct premiums received by domestic and foreign insurance companies.
      • 4% of gross premiums charged by unauthorized insurers; and
      • 1.75% of net direct subscriber charges of health care centers.
      • Comparative Data

        FY 1997-98

        FY 1998-99

        FY 1999-00

        Domestic

        $ 34,697,627

        $ 33,010,461

        $26,874,578
        Foreign

        121,926,324

        128,182,999

        131,900,557
        Health Care Center

        30,729,025

        30,570,129

        37,187,076
        Unauthorized

        1,969,553

        1,599,357

        1,880,792
        Total

        $ 189,322,529

        $ 193,362,946

        $197,843,003

        MOTOR CARRIER ROAD TAX

        Since 1996, Connecticut has participated in the International Fuel Tax Agreement (IFTA), which is a cooperative agreement among most states and provinces of Canada to simplify the collection and reporting of fuel use tax by interstate motor carriers. Under IFTA, fuel tax returns are filed in the base jurisdiction of the motor carrier. The base jurisdiction of a motor carrier is where the vehicle is based for registration purposes and where operations are controlled and the vehicle is operated. For IFTA fuel tax reporting, a qualified motor vehicle is a vehicle that is designed to transport persons or property and that has: two axles and a gross vehicle weight or registered gross vehicle weight over 26,000 pounds; or three or more axles regardless of weight; or when used in combination, a combined gross vehicle weight over 26,000 pounds. Motor carriers who meet this qualification, and who travel solely within the State, are not required to file a return, but instead are subject to the tax at the time of purchase.

        Revenue

        FY 1997-98

        $9,512,717

        1998-99

        9,826,389

        1999-00

        10,078,118

        Exemptions

        Motor bus companies whose operations in Connecticut are exclusively for purposes of charter or special operations.

        Number of Taxpayers/Filing Frequency

        2,500/Quarterly

        Basis and Rate

        Effective July 1, 1998
        Rate per gallon

        Effective July 1, 2000
        Rate per gallon

        Gasoline 32¢ 25¢
        Gasohol 31¢ 24¢
        Diesel Fuel 18¢ 18¢
        Natural Gas 18¢ 18¢
        Propane 18¢ 18¢

        MOTOR VEHICLE FUELS TAX

        Motor fuel used or sold in Connecticut is subject to the Motor Vehicle Fuels Tax. "Fuel" includes gasoline, diesel, gasohol, propane, or any combustible gas or liquid which generates the power needed to propel a motor vehicle.

        Revenue

        FY 1997-98

        $521,214,037

        1998-99

        489,886,263

        1999-00

        496,658,719

        Exemptions

        • Fuel sold to United States Government, the State of Connecticut, any Connecticut municipality or transit district, when such fuel is used in vehicles owned and operated, or leased and operated by any of the aforementioned entities;
        • Aviation fuel;
        • Fuel sold exclusively for heating purposes and to furnish gas, water, steam or electricity, if delivered to consumers through mains, lines or pipes;
        • Alternative fuels (compressed natural gas, liquefied petroleum gas, and liquefied natural gas); 
        • Fuel sold to owners or operators of an aircraft, or to a licensed aviation fuel dealer whose place of business is located at an airport ; 
        • Fuel used in school buses; and 
        • Diesel fuel sold elusively for use in portable power system generators that are larger than one hundred fifty kilowatts.
        • Number of Taxpayers/Filing Frequency

          700 taxpayers/Monthly.

          Certain distributors who sell fuel on which the Motor Vehicle Fuels Tax is not payable are allowed to file less than monthly, but at least annually.

          Effective July 1, 1998
          Rate per gallon

          Effective July 1, 2000
          Rate per gallon

          Gasoline

          32¢

          25¢

          Gasohol

          31¢

          24¢

          Diesel Fuel

          18¢

          18¢

          Natural Gas

          18¢

          18¢

          Propane

          18¢

          18¢

          Comparative Data

          Number of Gallons Sold

          FY 1997-98

          FY 1998-99

          FY 1999-00

          Gasoline

          1,298,385,585

          1,380,707,148

          1,374,425,596

          Special Fuel

          210,540,250

          223,134,178 233,541,951
          Gasohol

          37,354,833

          21,884,696 40,653,552
          Total Gallons

          1,546,280,668

          1,546,280,668 1,648,621,099

          MOTOR VEHICLE RENTAL SURCHARGE

          The Motor Vehicle Rental Surcharge is imposed on the rental of each private passenger motor vehicle in Connecticut by a rental company for a period of less than 31 days. Rental companies must pay over the portion of the surcharge collected during the calendar year that exceeds the amount paid in personal property tax and the amount paid in titling and registration fees.

          Revenue

          FY 1997-98

          $137,219 

          1998-99

          216,331

          1999-00

          549,713

          Exemptions

          · Motor vehicles delivered to a lessee outside Connecticut;
          · Rentals by an agency of United States Government;
          · Rentals of 31 days or more; and
          · Rentals of motor vehicles by a person that is not a rental company.

          Number of Taxpayers / Filing Frequency

          286 taxpayers / Annually

          Basis and Rate

          3% of the total rental charges imposed by the rental company.

          Comparative Data

          Gross collections by rental companies during 1999 amounted to $4,900,883. The $4,351,170 difference between gross collections and the amount remitted was retained by rental companies to reimburse personal property taxes and titling and registration fees paid during 1999.


          OCCUPATIONAL TAX

          An occupational tax is levied against any person who has been admitted as an attorney by the judges of the superior court, and who is engaged in the practice of law in Connecticut.

          Revenue

          FY 1997-98

          $5,719,665

          1998-99

          5,859,112

          1999-00

          5,914,532

          Exemptions

          • Judges and employees of the State of Connecticut;
          • Any attorney who has retired from the practice of law; 
          • Any attorney serving on active duty with the United States Armed Forces for more than six months of a given year; and
          • Any attorney employed by a political subdivision of Connecticut or any probate court.
          • Number of Taxpayers/Filing Frequency

            13,143 Attorneys/Annually

            Basis and Rate

            $450 per practicing attorney


            PETROLEUM COMPANIES GROSS EARNINGS TAX

            A tax is levied on the gross earnings of companies distributing petroleum products in Connecticut. Petroleum products include gasoline, aviation fuel, kerosene, diesel fuel, benzol, distillate fuels, residual fuels, crude oil and derivatives of petroleum such as paint, detergents, antiseptics, fertilizers, nylon, asphalt, plastics and other similar products.

            Revenue

            FY 1997-98

            $80,948,193

            1998-99

            63,254,665

            1999-00

            103,338,078

            Exemptions

            • Number 2 heating oil used exclusively for heating purposes or in a commercial fishing vessel;
            • Bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil used in vessels displacing over 4,000 dead weight tons;
            • Kerosene used exclusively for heating purposes, when the fuel is delivered via a truck with a metered delivery ticket, or to a centrally metered system serving a group of homes; and
            • Propane gas used exclusively for heating; and 
            • Paraffin and microcrystalline waxes (effective for sales occurring on or after July 1, 2000).
            • Number of Taxpayers/Filing Frequency

              662 taxpayers/Quarterly

              Basis and Rate

              • 5% of the gross earnings from the sale or use of all petroleum products, with the exception of Number 2 heating oil used exclusively in vessels engaged in interstate commerce and Number 6 fuel oil used by manufacturers; and
              • 3% of the gross earnings from the sale or use of Number 2 heating oil used exclusively in vessels engaged in interstate commerce and Number 6 fuel oil used by manufacturers. The tax rate on these products is being reduced by 1% per year until fully exempt on or after July 1, 2002.

              PUBLIC SERVICE COMPANIES TAX

              Revenue

              FY 1997-98

              $ 170,416,646

              1998-99

              167,704,143

              1999-00

              166,263,478

              Exemptions

              • All sales for resale of water, steam, gas, and electricity to public service corporations and municipal utilities.
              • Gas and Electric sales to manufacturing in SIC codes 2000 through 3999.
              • Natural Gas sold to out-of-state users or entities.
              • Sales by a gas company of natural gas or propane used as a motor vehicle fuel.
              • Number of Taxpayers/Filing Frequency

                117 taxpayers:

                79 Public Utility Companies/Quarterly
                26 Community Antenna TV Companies/Annually (April 1)
                12 Railroad Companies/Annually (July 1)

                Basis and Rate

                Community Antenna TV 5%
                Railroad 2 - 3.5%
                Gas, Electric and Power 5%
                Gas and Electric sales to residential customers 4%
                Steam 1% (effective 7/1/99)
                0% (effective 7/1/00)

                Residential Credit

                The electric, power, and gas companies claimed $10.5M under the one-percent credit attributable to the sale of gas and electric power for residential use.

                Residential Credit Claimed FY 1999-00

                1st Quarter

                $4,056,755

                2nd Quarter

                3,008,441

                3rd Quarter

                2,216,560

                4th Quarter

                1,041,018

                Total

                $10,322,774

                Manufacturing Companies Credit

                Over $18.9M was claimed in credit for gas and electric sales used directly by a company engaged in a manufacturing production process.

                Manufacturing Credit Claimed FY 1999-00

                1st Quarter

                $7,861,764

                2nd Quarter

                5,690,566

                3rd Quarter

                3,009,667

                4th Quarter

                2,371,191

                Total

                $18,933,188

                Comparative Data

                FY 97-98

                FY 98-99

                FY 99-00

                Community Antenna TV Systems

                $23,896,719

                $23,260,210

                $24,698,633

                Electric & Power Companies

                26,774,640

                27,906,578

                28,376,064

                Gas Companies

                29,590,674

                29,375,020

                32,858,100

                Gas and Electric Companies

                89,333,952

                86,620,610

                79,978,795

                Railroad Companies

                108,682

                152,116

                167,364

                Steam Companies

                433,744

                386,430

                184,515

                Telecommunications*

                0

                0

                7

                Water Companies**

                278,235

                3,179

                0

                Total Tax

                $170,416,646

                $167,704,143

                $166,263,478

                * Tax on telecommunications repealed on January 1, 1990.
                ** Tax on water companies repealed July 1, 1997.

                Electric Restructuring

                Effective for calendar quarters commencing on or after January 1, 2000, the gross receipts tax on generation services is eliminated.  However, the rate on transmission and distribution services is increased to 6.8% for residential customers and to 8.5% for non-residential customers other than manufacturers) as of the same date. Also, the Competitive Transition Assessment (CTA), the Systems Benefit Charge (SBC) and the charges for energy conservation and renewable energy are subject to the gross receipts tax.


                REAL ESTATE CONVEYANCE TAX

                Connecticut imposes a tax on the conveyance of real property. The tax is assessed on the full purchase price of the property and is determined by the classification of the property being conveyed. Payment of the tax is the responsibility of the seller of the property and must be paid before the deed can be recorded.

                Revenue

                FY 1997-98

                $91,206,241

                1998-99

                103,737,104

                1999-00

                113,642,688

                Exemptions

                • Deeds which this state is prohibited from taxing under the constitution or laws of the United States;
                • Deeds which secure a debt or other obligation;
                • Deeds to which this state or any of its political subdivisions or their respective agencies is a party;
                • Deeds of release of property which is security for a debt or other obligation;
                • Deeds of partition;
                • Deeds made pursuant to mergers of corporations;
                • Deeds made by subsidiary corporation to its parent corporation for no consideration other than the cancellation or surrender of the subsidiary’s stock;
                • Conveyance of an interest in real property pursuant to a decree of the superior court;
                • Certificates of devise or distribution;
                • Transfers for no consideration between parents and children;
                • An assignment with no consideration of any interest present or future, vested or contingent in real property which endures for a period of time and the termination of which is not fixed or ascertained by a specific number of years;
                • An assignment with no consideration of the unexpired portion of a term or estate for life or of a term or estate for years;
                • Tax deeds;
                • Certain exempt corporation transfers;
                • Any conveyances made on or after May 20, 1992, whereby the realty of a mutual savings institution is conveyed to a reorganized capital stock savings bank or a reorganized capital stock savings and loan association as defined in Title 36 of the Connecticut General Statutes;
                • All transfers between spouses;
                • Any deeds of property located in an entertainment district; and
                • Conveyances of burial rights;
                • Land development rights to agricultural land under the state farmland preservation program; and
                • Transfers or conveyances of real estate to effectuate a mere change of identity or form of ownership or organization where there is no change in beneficial ownership.

                Basis and Rate

                Classification Rate
                Unimproved Land .5%
                Nonresidential property other than Unimproved Land 1.0%
                Residential Dwelling:
                Portion $800,000 or less
                Portion that exceeds $800,000

                .5%
                1.0%
                Residential Property other than Residential Dwelling .5%
                Delinquent Mortgage .5%

                Table I and II on the following pages will show the number of conveyances by price of property and the conveyance tax revenue generated for the same price increments, respectively.

                TABLE I

                Price of Property

                FY 1997-98
                Number of
                Conveyances

                FY 1998-99
                Number of
                Conveyances

                FY 1999-00
                Number of
                Conveyances

                Under $30,000.00

                47,428

                49,076

                47,615

                30,000 - 39,999.99

                2,485

                2,397

                2,207

                40,000 - 49,999.99

                2,720

                2,687

                2,456

                50,000 - 59,999.99

                3,077

                3,098

                2,839

                60,000 - 69,999.99

                3,368

                3,454

                3,083

                70,000 - 79,999.99

                3,590

                3,727

                3,437

                80,000 - 89,999.99

                3,691

                4,075

                3,830

                90,000 - 99,999.99

                3,375

                3,606

                3,574

                100,000 - 109,999.99

                3,283

                3,514

                3,540

                110,000 - 119,999.99

                3,600

                3,966

                3,913

                120,000 - 129,999.99

                3,595

                4,056

                4,175

                130,000 - 139,999.99

                3,109

                3,467

                3,339

                140,000 -149,999.99

                2,589

                2,767

                2,957

                150,000 - 159,999.99

                2,699

                2,905

                2,817

                160,000 - 169,999.99

                2,250

                2,584

                2,555

                170,000 - 179,999.99

                1,933

                2,181

                2,183

                180,000 - 189,999.99

                1,784

                1,975

                2,010

                190,000 - 199,999.99

                1,322

                1,581

                1,533

                200,000 - 249,999.99

                5,704

                6,389

                6,526

                250,000 - 299,999.99

                3,695

                4,050

                4,607

                300,000 - 499,999.99

                5,871

                6,765

                7,555

                500,000 - 599,999.99

                1,087

                1,216

                1,474

                600,000 - 699,999.99

                735

                855

                1,023

                700,000 - 799,999.99

                490

                562

                759

                800,000 and over

                1,934

                2,143

                2,550

                Total

                115,414

                123,096

                122,557

                TABLE II

                Price of Property

                FY 1997-98

                Revenue Generated

                FY 1998-99

                Revenue Generated

                FY 1999-00

                Revenue Generated

                Under $30,000.00

                $465,721

                $461,990

                $412,770

                30,000 - 39,999.99

                423,523

                415,230

                377,806

                40,000 - 49,999.99

                590,208

                594,783

                533,664

                50,000 - 59,999.99

                827,746

                842,563

                767,396

                60,000 - 69,999.99

                1,077,364

                1,111,636

                998,249

                70,000 - 79,999.99

                1,328,109

                1,388,524

                1,279,159

                80,000 - 89,999.99

                1,552,107

                1,723,312

                1,613,572

                90,000 - 99,999.99

                1,580,624

                1,693,724

                1,679,318

                100,000 - 109,999.99

                1,711,211

                1,838,668

                1,855,209

                110,000 - 119,999.99

                2,060,432

                2,270,195

                2,248,083

                120,000 - 129,999.99

                2,239,759

                2,539,043

                2,598,049

                130,000 - 139,999.99

                2,091,331

                2,347,071

                2,251,916

                140,000 -149,999.99

                1,871,040

                2,011,206

                2,153,287

                150,000 - 159,999.99

                2,119,195

                2,273,987

                2,197,774

                160,000 - 169,999.99

                1,868,331

                2,140,762

                2,120,403

                170,000 - 179,999.99

                1,702,252

                1,941,412

                1,927,632

                180,000 - 189,999.99

                1,661,552

                1,838,136

                1,878,381

                190,000 - 199,999.99

                1,309,389

                1,556,221

                1,498,446

                200,000 - 249,999.99

                6,463,607

                7,263,760

                7,440,234

                250,000 - 299,999.99

                5,176,910

                5,661,108

                6,408,582

                300,000 - 499,999.99

                11,650,518

                13,290,050

                14,793,095

                500,000 - 599,999.99

                3,144,627

                3,530,671

                4,206,708

                600,000 - 699,999.99

                2,503,664

                3,012,962

                3,489,821

                700,000 - 799,999.99

                1,976,575

                2,283,799

                3,026,741

                800,000 and over

                34,113,610

                36,262,532

                43,956,749

                Total

                $91,509,405

                $100,293,345

                $111,713,044


                REPEALED TAXES
                CABARET TAX

                The Cabaret Tax was repealed effective July 1, 1999.  This tax was imposed on the amounts charged for admissions, refreshments, or merchandise at any cabaret or similar place furnishing music, dancing privileges, or other entertainment.

                Revenue collected for Fiscal Year 1999-00:  $1,529

                CAPITAL GAINS, DIVIDENDS AND INTEREST INCOME TAX

                The tax on capital gains, dividends and interest income was eliminated for income years commencing on or after January 1, 1992. This income is now combined with all other income and subject to the Personal Income Tax. The revenue collected represents late payments and revenue generated through assessment and compliance programs.

                Revenue collected for Fiscal Year 1999-00: $139,122

                NURSING HOME PROVIDER TAX

                A tax was imposed on the net revenue of nursing homes licensed under Conn. Gen. Stat. §19a-493 for the period April 1, 1992 through March 31, 1993.  Revenue continues to be received from assessment payments.

                Revenue collected for Fiscal Year 1999-00:  $492

                TIRE FEE

                The Tire Fee was repealed effective for sales made on or after July 1, 1997. The fee was imposed on the sale at retail of any tire commonly used on any motor vehicle.

                Revenue collected for Fiscal Year 1999-00: $5,447.


                SEED OYSTER TAX

                The Seed Oyster Tax is levied on seed oyster harvesters. The tax was established to provide funding for the seeding of state shellfish beds. All revenue collected from the tax is deposited into a special fund used for the Shellfish Program administered by the Department of Agriculture's Aquaculture Division.

                Revenue

                FY 1997-98

                $13,060

                1998-99

                10,021

                1999-00

                308

                Number of Taxpayers / Filing Frequency

                23 harvesters / Quarterly

                Basis and Rate

                10% of the retail value of harvested seed oysters.


                SOLID WASTE TAX

                The Solid Waste Tax is levied on the owners of commercial resources recovery facilities which process municipal solid waste to reclaim energy.

                Revenue

                FY 1997-98

                $2,320,805 

                1998-99

                2,353,063

                1999-00

                2,218,677

                Number of Taxpayers / Filing Frequency

                8 taxpayers / Quarterly

                Basis and Rate

                $1.00 per ton of solid waste processed.


                SUCCESSION TAX

                The Connecticut Succession Tax is levied on the transfer of property after death, and varies, depending on the size of the estate and the relationship of the decedent to the survivor. Class AA transfers are to a surviving spouse. Class A transfers are to immediate family, such as parents or children. Class B transfers are to other relatives, including siblings, nieces and nephews. All other transfers, including charitable organizations, are Class C. The Compromise Class represents transfers whose tax liability was determined by the Department of Revenue Services where contingencies as to the ultimate beneficiary could not be currently determined.

                The Connecticut Estate Tax is levied in cases where transfer of property is taxed by the State of Connecticut in an amount less than the federal government allows as a tax credit for state succession tax. The Connecticut Estate Tax recovers the full amount of the federal credit allowed on the transfer, yet it does not increase the tax burden paid by an estate. The Fiduciary Estate Tax, which has been repealed since 1991, was a tax on the income produced from the estate. A small amount of revenue continues to be received from payments from estates whose income years commenced prior to January 1, 1991, or from assessments.

                Due to legislative changes enacted during the 1995 Legislative Session, the Succession Tax will be phased-out and will be eventually repealed for all classes. Transfers to any Class A beneficiary are being incrementally reduced, with complete exemption for transfers to Class A beneficiaries for estates of decedents dying on or after January 1, 2001. Class B transfers will be reduced incrementally in 1999, and will be fully exempt on or after January 1, 2003. The phaseout  for Class C transfers will begin in 2001, with a full exemption for estates of decedents dying on or after January 1, 2005.

                Total Succession, Estate & Fiduciary Estate Tax Revenue

                FY 1997-98

                $279,236,063 

                1998-99

                237,573,116

                1999-00

                228,072,249

                Exemptions

                • All Class AA transfers;
                • First $2,000,000 for Class A transfers;
                • First $400,000 for Class B transfers;
                • First $1,000 for Class C transfers; and
                • All transfers to charitable, literary, scientific, historical, religious and government organizations.
                • Number of Taxpayers/Filing Frequency

                  Class AA:     286
                  Class A:     1,230
                  Class B:     1,650
                  Class C:     1,285
                  Compromises: 248

                  Return due six months following date of death.

                  Basis and Rate

                  Connecticut
                  Succession Tax

                  Connecticut Estate Tax

                  Connecticut Fiduciary Estate (repealed)

                  Class AA

                  Exempt

                  Allowable federal credit

                  10%  of income in
                  excess of $20,000

                  Class A

                  11.44%

                  Class B

                  11.44% - 14.30%

                  Class C

                  11.44% - 20.02%

                  Comparative Data

                  Class

                  FY 1997-98

                  FY 1998-99

                  FY 1999-00

                  In Millions of Dollars

                  Class AA $.02

                  $0

                  $0

                  Class A 94.5

                  97.4

                  124.4

                  Class B 49.0

                  58.3

                  47.2

                  Class C 36.2

                  34.7

                  36.0

                  Compromise 22.2

                  22.7

                  26.5

                  Total $201.9 $213.1 $234.1

                  TOBACCO PRODUCTS TAX

                  An excise tax is imposed on all non-cigarette tobacco products such as cigars, stogies, snuff, pipe and chewing tobacco. The tax is imposed when the tobacco products are manufactured, imported, or purchased by distributors. Distributors must be licensed annually and remit the tax on a monthly basis.

                  Revenue

                  FY 1997-98

                  $5,585,123

                  1998-99

                  4,606,114

                  1999-00

                  4,951,833

                  Exemptions

                  • Tobacco products exported from the State; and
                  • Tobacco products sold to the federal government.
                  • Number of Taxpayers/Filing Frequency

                    240 distributors/Monthly

                    Basis and Rate

                    20% of the wholesale sales price.  However, effective July 1, 2000, snuff tobacco products are taxed at a rate of $.40 per ounce.


                    TOURISM ACCOUNT SURCHARGE

                    A surcharge is levied on the rental and leasing of passenger motor vehicles for fewer than 30 days. Revenues generated by the surcharge are deposited into the "Tourism Account" to be allocated for purposes of the strategic marketing plans and challenge grants required under Conn. Gen. Stat. § 32-300.

                    Revenue

                    FY 1997-98

                    $ 4,166,079

                    1998-99

                    4,152,992

                    1999-00

                    4,780,821

                    Exemptions

                    The rental or leasing of a motor vehicle pursuant to a written agreement, which has a term of more than 30 days.

                    Number of Taxpayers / Filing Frequency

                    25 taxpayers / Monthly
                    261 taxpayers / Quarterly

                    Basis and Rate

                    $1.00 per rental/leasing day or portion thereof, of passenger motor vehicles.


                    UNRELATED BUSINESS TAXABLE INCOME TAX

                    The Unrelated Business Taxable Income Tax is imposed on any trade or business conducted by a tax-exempt organization which does not substantially relate to its tax exempt purpose. The tax is paid at the same rate as the Corporation Business Tax.  For most taxpayers, the due date is either April 15 or May 15, depending on the entity. Foreign trusts however, generally have a due date of June 15.

                    Revenue

                    FY 1997-98

                    $3,450,817

                    1998-99

                    2,356,590

                    1999-00

                    2,061,711

                    Number of Taxpayers / Filing Frequency

                    244 organizations / Annually

                    Basis and Rate

                    7.5% of the unrelated business income of the organization. No minimum tax is required.

                    Credits

                    For the 1998 income year, 18 taxpayers claimed $2,969 in Electronic Data Processing Property Tax Credits.


                    TOURISM DISTRICTS

                    Conn. Gen. Stat. §32-305 provides for the funding of 11 tourism districts and five related entities. All of Connecticut’s 169 municipalities are participants in this program. A portion of the $68.8M in room occupancy tax collections are distributed to the tourism districts and related entities based upon a statutory formula.

                    The amounts remitted to the 11 tourism districts and related entities are computed based upon the following considerations, and are allocated to the district in which the municipality is located:

                    1.5% of the gross receipts from hotel room rentals in towns with populations of less than 65,000;

                    3.5% of the gross receipts from hotel room rentals in towns with populations of 65,000 but less than 75,000. Also, the receipts of the town with the most tourist attractions will be computed at this percentage; and

                    4.5% of the gross receipts from hotel room rentals in towns with populations of 75,000 or more.

                    The monies are used to promote tourism at the state and regional levels. A listing of the tourism districts and entities is as follows:

                    GREATER FAIRFIELD

                    Bridgeport-Darien-Easton-Fairfield-Greenwich-Monroe-New Canaan-Norwalk-Stamford-Stratford-Weston-Westport-Wilton

                    GREATER WATERBURY

                    Beacon Falls-Middlebury-Naugatuck-Oxford-Seymour-Thomaston-Waterbury-Watertown-Wolcott

                    GREATER NEW HAVEN

                    Ansonia-Bethany-Derby-East Haven-Hamden-Milford-New Haven-North Branford-North Haven-Orange-Prospect-Shelton-Trumbull-West Haven-Woodbridge

                    CONNECTICUT VALLEY

                    Branford-Chester-Clinton-Cromwell-Deep River-Durham-East Haddam-East Hampton-Essex-Guilford-Haddam-Killingworth-Madison-Meriden-Middlefield-Middletown-Old Saybrook-Portland-Wallingford-Westbrook

                    SOUTHEASTERN CONNECTICUT

                    Bozrah-Colchester-East Lyme-Franklin-Griswold-Groton-Ledyard-Lisbon-Lyme-Montville-New London-North Stonington-Norwich-Old Lyme-Preston-Salem-Sprague-Stonington-Voluntown-Waterford

                    LITCHFIELD HILLS

                    Barkhamsted-Bethlehem-Bristol-Canaan-Colebrook-Cornwall-Goshen-Hartland-Harwinton
                    -Kent-Litchfield-Morris-New Hartford-New Milford-Norfolk-North Canaan-Plymouth-Roxbury-Salisbury-Sharon-Southbury-Torrington-Warren
                    -Washington-Winchester-Woodbury

                    CENTRAL CONNECTICUT

                    Berlin-Cheshire-New Britain-Plainville-Southington

                    GREATER HARTFORD

                    Andover-Avon-Bolton-Burlington-Canton-East Hartford-Ellington-Farmington-Glastonbury-Hartford-Hebron-Manchester-Marlborough-Newington-Rocky Hill-Simsbury-South Windsor-Tolland-Vernon-West Hartford-Wethersfield

                    NORTHEAST CONNECTICUT

                    Ashford-Brooklyn-Canterbury-Chaplin-Columbia-Coventry-Eastford-Hampton
                    -Killingly-Lebanon-Mansfield-Plainfield-Pomfret-Putnam-Scotland-Sterling
                    -Thompson-Union-Willington-Windham-Woodstock

                    HOUSATONIC VALLEY

                    Bethel-Bridgewater-Brookfield-Danbury-New Fairfield-Newton-Redding-Ridgefield-Sherman

                    CONNECTICUT NORTH CENTRAL

                    Bloomfield-East Granby-East Windsor-Enfield-Granby-Somers-Stafford-Suffield-Windsor-
                    Windsor Locks

                    The statutes also provide for the funding of the following entities:

                    Capital City Economic Development Authority (90% of the amount attributable to room occupancy tax receipts from sales in Hartford);

                    Greater Hartford Arts Council (10% of the amount attributable to room occupancy tax receipts from sales in Hartford);

                    New Haven Coliseum Authority (75% of the amount attributable to room occupancy tax receipts from sales in New Haven)

                    Stamford Center for the Arts (75% of the amount attributable to room occupancy tax receipts from sales in Stamford); and

                    Maritime Center Authority (75% of the amount attributable to room occupancy tax receipts from sales in Norwalk.)

                    The following table reflects all amounts paid to the tourism districts and related entities based on hotel occupancies for the period July 1, 1999 through June 30, 2000, as compared to payments made for the period July 1, 1998 through June 30, 1999:

                    District and/or Entity:

                    FY 1998-99*

                    FY 1999-00

                    Greater Fairfield

                    $1,638,033.50

                    $1,770,110.85

                    Greater Waterbury

                    527,640.00

                    570,583.50

                    Greater New Haven

                    853,354.94

                    1,004,524.60

                    Connecticut Valley District

                    680,289.00

                    730,058.17

                    Southeastern Connecticut

                    1,526,384.49

                    1,797,547.56

                    Litchfield Hills District

                    415,662.32

                    359,035.51

                    Central Connecticut

                    139,993.06

                    151,342.04

                    Greater Hartford Tourism District

                    865,328.22

                    1,008,600.12

                    Northeast Connecticut Visitors District

                    80,794.49

                    89,416.67

                    Housatonic Valley District

                    1,005,941.64

                    1,100,269.81

                    Connecticut North Central Tourism Bureau

                    584,258.39

                    670,163.35

                    Greater Hartford Arts Council

                    138,569.82

                    151,906.85 

                    New Haven Coliseum Authority

                    607,867.43

                    824,493.78 

                    Capital City Economic Development Authority

                    1,247,128.39

                    1,325,590.06

                    Norwalk Maritime Center Authority

                    659,008.30

                    784,687.19

                    Stamford Center for the Arts

                    2,046,849.98

                    2,384,508.34

                    Total Payments

                    $13,017,103.97

                    $14,722,838.40


                    PENALTY AND INTEREST RECEIPTS

                    Failure to pay taxes and file tax returns in a timely manner results in a penalty to the taxpayer of $50. If the taxpayer is subject to a penalty for late payment, the late filing penalty is not applicable. The penalty for late payment of the tax is $50 or 10% of the tax due, whichever is greater. The penalty for the Personal Income Tax is 10% of the balance due. The penalty for the late payment of Sales and Use taxes is 15% of the amount due, or $50, whichever is greater. Effective for sales made on or after January 1, 1997, the penalty for failure to pay the use tax with the CT-1040/1040EZ income tax returns is 10%, reduced from 15%, to parallel the rate for the income tax.

                    Interest is also charged on any amount of tax due that is not paid on or before the due date. Interest is charged on a monthly basis at a rate of 1% per month or 12% annually.

                    The charts below reflect total penalty and interest revenue paid for the past three fiscal years, and the breakdown by major tax type for the same fiscal years, respectively.

                    Penalty and Interest Revenue
                    All State Taxes
                    (in Millions)

                    Fiscal Year

                    Combined
                    Penalty & Interest

                    Penalty

                    Interest

                    1997-98

                    78.5

                    16.3

                    62.2

                    1998-99

                    63.4

                    13.3

                    50.1

                    1999-00

                    61.1 14.5 46.6

                    Penalty and Interest Revenue
                    By Major Tax Source
                    (in Millions)

                    Tax Type

                    FY 1997-98

                    FY 1998-99

                    FY 1999-00

                    Corporation Tax

                    Penalty

                    $ 0.6

                    $ 0.5

                    $0.6

                    Interest

                    37.8

                    22.4

                    18.8

                    Income Tax

                    Penalty

                    5.5

                    4.9

                    6.2

                    Interest

                    6.3

                    10.9

                    8.4

                    Sales & Use Taxes

                    Penalty

                    6.4

                    6.0

                    5.7

                    Interest

                    14.8

                    13.6

                    15.9

                    TAX REFUNDS

                    The Department of Revenue Services issues refunds to taxpayers when an overpayment of tax liability has been made. The refund is charged to the fund to which such tax, penalty or interest was previously credited.  Due to statutory allowances, refunds for Motor Fuel Taxes are allowed in certain cases involving fuel sold to a Connecticut motor bus company or a company engaged in livery service.

                    Refunds of the Personal Income Tax owed to any person or entity who has a debit obligation to the state may be withheld to offset the outstanding debt.  There were 2,649 offsets in Fiscal Year 1999-00, totaling $955,278.

                    Listed below are the refund amounts by tax type, and the total amount of taxes refunded for Fiscal Years 1998-99 and 1999-00.

                    AMOUNT OF TAXES REFUNDED

                    TAX TYPE

                    FY 1998-99

                    FY 1999-00

                    Income Tax

                    $428,000,407

                    $481,789,030

                    Corporation

                    165,677,855

                    179,635,450

                    Petroleum Companies

                    529,422

                    689,947

                    Inheritance Tax

                    19,916,997

                    22,074,554

                    CT Estate Tax

                    274,537

                    516,029

                    Gift Tax

                    444,337

                    638,674

                    Domestic Insurers

                    7,885,226

                    7,300,312

                    Foreign Insurers

                    7,845,786

                    6,281,821

                    Health Care Centers

                    *

                    492,096

                    Unauthorized Insurers

                    *

                    180,735  Cigarettes

                    846,799

                    716,990

                    Capital Gains

                    32,028

                    0

                    Motor Fuel

                    3,497,772

                    3,667,765

                    Special Motor Fuel

                    43,583

                    128,656

                    Motor Carrier

                    1,635,639

                    1,600,924

                    Sales & Use

                    9,780,572

                    12,967,210

                    Sales Collected By DMV

                    232,298

                    229,350

                    Controlling Interest

                    677,273

                    338,816

                    Unrelated Business Income

                    306,332

                    299,436

                    Railroad Companies

                    *

                    39,398 Electric & Power Companies * 42,894 Gas Companies * 88,019 Alcoholic Beverages * 75,899 Room Occupational * 85,193 Occupational

                    14,803

                    32,457

                    Real Estate Conveyance

                    101,778

                    397,141

                    Admissions, Dues & Cabaret

                    66,152

                    48,513

                    Hospital Gross Earnings

                    2,288,445

                    1,326,179

                    Hazardous Waste

                    29,347

                    41,853

                    Miscellaneous

                    49,616

                    31,384

                    Total

                    $650,177,003

                    $721,756,725


                    1999-00 REAL ESTATE CONVEYANCE TAX BY TOWN

                    Number of Conveyances

                    Municipality

                    Taxable

                    Exempt

                    Tax Remitted

                    ANDOVER

                    126

                    18

                    $48,162

                    ANSONIA

                    524

                    35

                    212,646

                    ASHFORD

                    170

                    20

                    65,832

                    AVON

                    857

                    37

                    960,931

                    BARKHAMSTED

                    120

                    11

                    41,961

                    BEACON FALLS

                    272

                    14

                    134,161

                    BERLIN

                    610

                    29

                    362,725

                    BETHANY

                    205

                    29

                    116,462

                    BETHEL

                    603

                    52

                    485,300

                    BETHLEHEM

                    118

                    9

                    63,381

                    BLOOMFIELD

                    661

                    53

                    493,235

                    BOLTON

                    207

                    14

                    105,937

                    BOZRAH

                    71

                    8

                    20,076

                    BRANFORD

                    1,168

                    82

                    1,000,358

                    BRIDGEPORT

                    3,389

                    380

                    1,373,777

                    BRIDGEWATER

                    73

                    7

                    152,213

                    BRISTOL

                    1,725

                    152

                    954,814

                    BROOKFIELD

                    650

                    55

                    607,272

                    BROOKLYN

                    273

                    27

                    108,721

                    BURLINGTON

                    340

                    16

                    231,983

                    CANAAN

                    59

                    7

                    57,338

                    CANTERBURY

                    199

                    20

                    70,440

                    CANTON

                    389

                    12

                    271,619

                    CHAPLIN

                    87

                    1

                    27,049

                    CHESHIRE

                    885

                    63

                    931,902

                    CHESTER

                    154

                    12

                    161,973

                    CLINTON

                    582

                    30

                    390,047

                    COLCHESTER

                    625

                    48

                    329,107

                    COLEBROOK

                    82

                    6

                    36,220

                    COLUMBIA

                    198

                    25

                    78,917

                    CORNWALL

                    108

                    5

                    88,033

                    COVENTRY

                    469

                    48

                    197,603

                    CROMWELL

                    534

                    37

                    367,489

                    DANBURY

                    2,449

                    154

                    1,906,582

                    DARIEN

                    780

                    39

                    2,709,927

                    DEEP RIVER

                    202

                    17

                    167,202

                    DERBY

                    418

                    32

                    179,336

                    DURHAM

                    268

                    21

                    168,957

                    EAST GRANBY

                    179

                    33

                    100,170

                    EAST HADDAM

                    491

                    23

                    282,700

                    EAST HAMPTON

                    478

                    26

                    223,325

                    EAST HARTFORD

                    1,210

                    116

                    726,309

                    EAST HAVEN

                    1,040

                    112

                    387,164

                    Number of

                    Conveyances

                    Municipality

                    Taxable

                    Exempt

                    Tax Remitted

                    EAST LYME

                    779

                    47

                    $415,060

                    EAST WINDSOR

                    351

                    23

                    293,631

                    EASTFORD

                    46

                    0

                    38,505

                    EASTON

                    311

                    27

                    521,898

                    ELLINGTON

                    495

                    35

                    304,706

                    ENFIELD

                    1,171

                    151

                    735,210

                    ESSEX

                    231

                    3

                    292,931

                    FAIRFIELD

                    2,066

                    117

                    3,515,749

                    FARMINGTON

                    1,113

                    43

                    1,039,448

                    FRANKLIN

                    94

                    4

                    34,995

                    GLASTONBURY

                    1,359

                    85

                    1,697,905

                    GOSHEN

                    217

                    14

                    140,987

                    GRANBY

                    456

                    24

                    342,694

                    GREENWICH

                    2,188

                    87

                    13,950,360

                    GRISWOLD

                    401

                    46

                    200,182

                    GROTON

                    1,164

                    92

                    628,692

                    GUILFORD

                    943

                    68

                    859,467

                    HADDAM

                    262

                    12

                    129,355

                    HAMDEN

                    1,762

                    147

                    1,379,372

                    HAMPTON

                    81

                    12

                    36,357

                    HARTFORD

                    1,822

                    237

                    1,159,789

                    HARTLAND

                    56

                    1

                    19,724

                    HARWINTON

                    183

                    20

                    70,619

                    HEBRON

                    358

                    27

                    201,233

                    KENT

                    159

                    15

                    194,435

                    KILLINGLY

                    502

                    71

                    306,411

                    KILLINGWORTH

                    306

                    31

                    227,095

                    LEBANON

                    271

                    19

                    105,120

                    LEDYARD

                    490

                    37

                    219,101

                    LISBON

                    128

                    9

                    62,986

                    LITCHFIELD

                    355

                    28

                    260,340

                    LYME

                    129

                    10

                    155,535

                    MADISON

                    716

                    43

                    740,072

                    MANCHESTER

                    1,539

                    139

                    1,178,600

                    MANSFIELD

                    447

                    36

                    290,609

                    MARLBOROUGH

                    188

                    16

                    115,690

                    MERIDEN

                    1,747

                    264

                    859,870

                    MIDDLEBURY

                    284

                    53

                    186,982

                    MIDDLEFIELD

                    139

                    16

                    71,050

                    MIDDLETOWN

                    1,271

                    123

                    2,796,093

                    MILFORD

                    1,979

                    134

                    2,159,954

                    MONROE

                    657

                    39

                    801,316

                    MONTVILLE

                    669

                    59

                    967,145

                    Number of

                    Conveyances

                    Municipality

                    Taxable

                    Exempt

                    Tax Remitted

                    MORRIS

                    131

                    10

                    $60,942

                    NAUGATUCK

                    860

                    81

                    376,450

                    NEW BRITAIN

                    1,530

                    179

                    542,119

                    NEW CANAAN

                    842

                    38

                    3,692,747

                    NEW FAIRFIELD

                    554

                    32

                    518,449

                    NEW HARTFORD

                    293

                    16

                    112,282

                    NEW HAVEN

                    2,569

                    383

                    1,491,395

                    NEW LONDON

                    644

                    89

                    387,535

                    NEW MILFORD

                    1,291

                    121

                    924,396

                    NEWINGTON

                    1,018

                    75

                    523,192

                    NEWTOWN

                    1,094

                    88

                    1,385,584

                    NORFOLK

                    109

                    8

                    59,988

                    NORTH BRANFORD

                    391

                    48

                    296,995

                    NORTH CANAAN

                    105

                    8

                    40,804

                    NORTH HAVEN

                    697

                    51

                    534,029

                    NORTH STONINGTON

                    238

                    30

                    153,341

                    NORWALK

                    2,875

                    147

                    4,325,873

                    NORWICH

                    1,016

                    131

                    483,920

                    OLD LYME

                    504

                    25

                    307,004

                    OLD SAYBROOK

                    572

                    41

                    395,301

                    ORANGE

                    448

                    28

                    625,880

                    OXFORD

                    391

                    29

                    259,655

                    PLAINFIELD

                    525

                    48

                    167,186

                    PLAINVILLE

                    546

                    65

                    235,100

                    PLYMOUTH

                    444

                    57

                    170,487

                    POMFRET

                    127

                    12

                    58,245

                    PORTLAND

                    307

                    27

                    157,433

                    PRESTON

                    201

                    15

                    81,207

                    PROSPECT

                    337

                    17

                    199,265

                    PUTNAM

                    234

                    45

                    75,824

                    REDDING

                    373

                    31

                    604,240

                    RIDGEFIELD

                    1,034

                    48

                    2,024,501

                    ROCKY HILL

                    617

                    39

                    394,263

                    ROXBURY

                    170

                    11

                    290,617

                    SALEM

                    148

                    20

                    82,722

                    SALISBURY

                    220

                    16

                    225,321

                    SCOTLAND

                    50

                    0

                    20,808

                    SEYMOUR

                    520

                    42

                    250,319

                    SHARON

                    180

                    16

                    133,211

                    SHELTON

                    1,356

                    92

                    1,443,197

                    SHERMAN

                    224

                    16

                    203,797

                    SIMSBURY

                    787

                    45

                    696,570

                    SOMERS

                    299

                    23

                    161,014

                    Number of

                    Conveyances

                    Municipality

                    Taxable

                    Exempt

                    Tax Remitted

                    SOUTH WINDSOR

                    844

                    62

                    $661,770

                    SOUTHBURY

                    923

                    48

                    882,136

                    SOUTHINGTON

                    1,567

                    121

                    996,784

                    SPRAGUE

                    74

                    7

                    18,967

                    STAFFORD

                    445

                    29

                    154,389

                    STAMFORD

                    3,712

                    141

                    5,544,396

                    STERLING

                    144

                    17

                    43,775

                    STONINGTON

                    771

                    38

                    569,597

                    STRATFORD

                    1,692

                    104

                    1,381,682

                    SUFFIELD

                    523

                    39

                    324,449

                    THOMASTON

                    285

                    33

                    141,008

                    THOMPSON

                    302

                    40

                    99,672

                    TOLLAND

                    548

                    31

                    376,911

                    TORRINGTON

                    1,286

                    170

                    646,737

                    TRUMBULL

                    1,023

                    74

                    1,225,137

                    UNION

                    32

                    5

                    22,114

                    VERNON

                    805

                    79

                    406,232

                    VOLUNTOWN

                    115

                    7

                    49,594

                    WALLINGFORD

                    1,351

                    119

                    1,013,962

                    WARREN

                    75

                    8

                    60,572

                    WASHINGTON

                    250

                    19

                    347,639

                    WATERBURY

                    2,959

                    329

                    1,388,627

                    WATERFORD

                    719

                    40

                    366,717

                    WATERTOWN

                    641

                    53

                    349,414

                    WEST HARTFORD

                    1,994

                    102

                    1,575,441

                    WEST HAVEN

                    1,532

                    149

                    750,139

                    WESTBROOK

                    897

                    21

                    224,358

                    WESTON

                    491

                    41

                    1,323,796

                    WESTPORT

                    1,110

                    71

                    3,700,886

                    WETHERSFIELD

                    789

                    58

                    406,607

                    WILLINGTON

                    137

                    13

                    66,697

                    WILTON

                    619

                    47

                    1,801,476

                    WINCHESTER

                    435

                    55

                    160,209

                    WINDHAM

                    514

                    35

                    330,603

                    WINDSOR

                    924

                    87

                    845,733

                    WINDSOR LOCKS

                    405

                    48

                    214,711

                    WOLCOTT

                    516

                    38

                    234,507

                    WOODBRIDGE

                    344

                    29

                    266,520

                    WOODBURY

                    410

                    62

                    330,553

                    WOODSTOCK

                    329

                    10

                    128,692

                    TOTAL

                    113,336

                    9,221

                    $111,713,044


                    COMPARATIVE SUMMARY OF RETAIL SALES AND

                    TAX RECEIPTS BY TOWN*

                    FISCAL YEARS ENDING JUNE 30, 1999 AND 2000

                    (IN THOUSANDS)

                    Retail Sales

                    Retail Sales

                    Sales & Use Tax

                    Sales & Use Tax

                    SUT Collections

                    FY 1998-99

                    FY 1999-00

                    FY 1998-99

                    FY 1999-00

                    % Change

                    TOWN

                    (SIC 52-59)

                    (SIC 52-59)

                    (All Businesses)

                    (All Businesses)

                    FY 00/FY 99

                    ANDOVER

                    $7,309.9

                    $5,359.3

                    $460.9

                    $538.5

                    16.84%

                    ANSONIA

                    252,473.2

                    267,933.0

                    9,213.1

                    9,777.8

                    6.13%

                    ASHFORD

                    3,699.3

                    3,944.0

                    383.6

                    402.2

                    4.84%

                    AVON

                    283,581.4

                    402,245.7

                    13,404.8

                    14,058.5

                    4.88%

                    BARKHAMSTED

                    14,719.1

                    17,406.4

                    1,120.2

                    1,118.1

                    -0.19%

                    BEACON FALLS

                    5,683.6

                    6,565.9

                    624.7

                    629.4

                    0.75%

                    BERLIN

                    534,908.5

                    559,015.3

                    32,534.2

                    48,865.2

                    50.20%

                    BETHANY

                    7,074.5

                    7,749.9

                    915.9

                    982.0

                    7.22%

                    BETHEL

                    95,038.4

                    91,734.5

                    6,220.2

                    6,823.2

                    9.69%

                    BETHLEHEM

                    4,973.6

                    5,581.1

                    442.5

                    512.1

                    15.72%

                    BLOOMFIELD

                    224,176.5

                    248,674.8

                    14,584.8

                    15,923.2

                    9.18%

                    BOLTON

                    18,967.0

                    16,118.5

                    1,476.8

                    1,618.2

                    9.57%

                    BOZRAH

                    6,566.1

                    7,197.4

                    814.0

                    824.3

                    1.26%

                    BRANFORD

                    470,542.0

                    556,209.9

                    21,601.3

                    26,918.3

                    24.61%

                    BRIDGEPORT

                    733,400.4

                    820,192.7

                    65,346.3

                    69,718.1

                    6.69%

                    BRIDGEWATER

                    4,403.9

                    5,400.2

                    300.3

                    331.9

                    10.54%

                    BRISTOL

                    426,147.2

                    412,408.0

                    27,005.3

                    26,943.9

                    -0.23%

                    BROOKFIELD

                    381,754.4

                    401,424.9

                    16,757.7

                    18,225.2

                    8.76%

                    BROOKLYN

                    29,659.6

                    30,217.1

                    1,375.7

                    1,451.4

                    5.50%

                    BURLINGTON

                    6,535.4

                    6,763.5

                    587.3

                    709.9

                    20.87%

                    CANAAN

                    22,045.9

                    23,623.9

                    1,237.8

                    1,501.4

                    21.29%

                    CANTERBURY

                    4,718.7

                    5,500.2

                    443.0

                    400.0

                    -9.71%

                    CANTON

                    134,108.1

                    148,825.5

                    7,779.5

                    8,904.3

                    14.46%

                    CHAPLIN

                    1,348.5

                    568.7

                    164.6

                    193.2

                    17.36%

                    CHESHIRE

                    333,686.3

                    344,155.4

                    14,314.8

                    14,784.5

                    3.28%

                    CHESTER

                    18,132.0

                    21,204.7

                    1,423.5

                    1,538.9

                    8.11%

                    CLINTON

                    180,149.4

                    134,114.4

                    9,284.6

                    7,213.2

                    -22.31%

                    COLCHESTER

                    71,484.0

                    78,668.9

                    3,875.1

                    4,463.7

                    15.19%

                    COLEBROOK

                    954.1

                    769.2

                    86.2

                    81.7

                    -5.22%

                    COLUMBIA

                    37,208.0

                    35,901.3

                    2,097.5

                    1,998.7

                    -4.71%

                    CORNWALL

                    12,703.1

                    13,883.4

                    1,514.6

                    1,548.8

                    2.26%

                    COVENTRY

                    22,606.6

                    21,742.4

                    1,368.2

                    1,504.3

                    9.95%

                    CROMWELL

                    43,021.6

                    46,970.4

                    5,344.3

                    6,004.1

                    12.35%

                    DANBURY

                    4,216,630.4

                    4,284,122.5

                    113,029.2

                    121,615.8

                    7.60%

                    DARIEN

                    329,233.6

                    386,358.9

                    20,310.5

                    22,636.6

                    11.45%

                    DEEP RIVER

                    27,948.2

                    13,544.0

                    956.6

                    932.4

                    -2.53%

                    DERBY

                    339,111.5

                    326,818.4

                    14,703.9

                    15,123.3

                    2.85%

                    DURHAM

                    13,092.2

                    13,666.4

                    1,359.3

                    1,261.2

                    -7.22%

                    EAST GRANBY

                    8,453.3

                    8,383.1

                    1,954.2

                    2,192.9

                    12.21%

                    EAST HADDAM

                    28,516.9

                    30,994.2

                    1,598.5

                    1,809.9

                    13.22%

                    EAST HAMPTON

                    31,199.7

                    32,823.3

                    1,762.4

                    1,696.6

                    -3.73%

                    EAST HARTFORD

                    524,052.1

                    587,998.6

                    45,934.2

                    47,256.7

                    2.88%

                    * NOTE: Large retailers with more than one establishment usually report all of their sales and use taxes from their

                    primary location; therefore, the figures for various towns may not reflect actual business activity.

                    COMPARATIVE SUMMARY OF RETAIL SALES AND

                    TAX RECEIPTS BY TOWN*

                    FISCAL YEARS ENDING JUNE 30, 1999 AND 2000

                    (IN THOUSANDS)

                    Retail Sales

                    Retail Sales

                    Sales & Use Tax

                    Sales & Use Tax

                    SUT Collections

                    FY 1998-99

                    FY 1999-00

                    FY 1998-99

                    FY 1999-00

                    % Change

                    TOWN

                    (SIC 52-59)

                    (SIC 52-59)

                    (All Businesses)

                    (All Businesses)

                    FY 00/FY 99

                    EAST HAVEN

                    149,660.5

                    153,647.2

                    8,990.9

                    9,286.0

                    3.28%

                    EAST LYME

                    98,848.6

                    85,040.7

                    5,382.9

                    4,752.9

                    -11.70%

                    EAST WINDSOR

                    150,580.9

                    167,734.6

                    6,672.8

                    7,471.4

                    11.97%

                    EASTFORD

                    7,909.2

                    7,504.4

                    462.4

                    458.7

                    -0.79%

                    EASTON

                    26,149.3

                    25,821.6

                    797.0

                    782.2

                    -1.86%

                    ELLINGTON

                    61,685.4

                    76,292.3

                    4,348.1

                    4,886.1

                    12.37%

                    ENFIELD

                    353,727.3

                    375,886.9

                    19,314.9

                    19,968.8

                    3.39%

                    ESSEX

                    40,846.3

                    37,081.4

                    3,402.4

                    3,723.7

                    9.44%

                    FAIRFIELD

                    592,118.3

                    635,925.9

                    35,579.6

                    38,075.9

                    7.02%

                    FARMINGTON

                    351,291.6

                    382,699.6

                    29,390.9

                    29,011.6

                    -1.29%

                    FRANKLIN

                    105,699.6

                    16,176.5

                    1,172.5

                    1,161.2

                    -0.97%

                    GLASTONBURY

                    223,851.5

                    268,251.4

                    18,561.2

                    19,714.3

                    6.21%

                    GOSHEN

                    5,707.3

                    7,563.7

                    386.4

                    302.4

                    -21.74%

                    GRANBY

                    29,908.8

                    35,373.2

                    4,379.9

                    4,199.3

                    -4.12%

                    GREENWICH

                    1,003,761.0

                    1,171,496.3

                    66,330.5

                    71,333.7

                    7.54%

                    GRISWOLD

                    23,850.1

                    29,149.2

                    1,452.4

                    1,473.5

                    1.45%

                    GROTON

                    304,623.3

                    294,907.8

                    24,211.2

                    21,362.5

                    -11.77%

                    GUILFORD

                    149,644.2

                    177,540.2

                    7,277.8

                    7,686.6

                    5.62%

                    HADDAM

                    20,973.6

                    22,537.0

                    1,391.5

                    1,369.3

                    -1.60%

                    HAMDEN

                    331,208.6

                    374,895.1

                    21,585.2

                    22,901.6

                    6.10%

                    HAMPTON

                    9,316.2

                    10,540.1

                    72.8

                    89.4

                    22.87%

                    HARTFORD

                    1,543,654.3

                    1,566,032.4

                    171,950.0

                    177,106.3

                    3.00%

                    HARTLAND

                    3,639.4

                    4,718.4

                    265.9

                    252.8

                    -4.93%

                    HARWINTON

                    6,659.4

                    7,261.1

                    576.0

                    585.1

                    1.59%

                    HEBRON

                    18,631.0

                    19,932.9

                    1,037.9

                    1,080.3

                    4.08%

                    KENT

                    27,611.5

                    28,860.1

                    1,464.0

                    1,557.6

                    6.39%

                    KILLINGLY

                    248,183.5

                    315,930.5

                    4,026.2

                    4,407.7

                    9.48%

                    KILLINGWORTH

                    22,951.5

                    25,007.0

                    922.9

                    921.9

                    -0.11%

                    LEBANON

                    5,083.0

                    5,858.4

                    541.7

                    554.2

                    2.31%

                    LEDYARD

                    43,490.2

                    48,615.9

                    6,280.1

                    5,999.2

                    -4.47%

                    LISBON

                    48,242.1

                    48,930.0

                    1,192.2

                    1,302.4

                    9.25%

                    LITCHFIELD

                    92,755.2

                    105,067.6

                    5,575.6

                    5,952.9

                    6.77%

                    LYME

                    7,942.6

                    9,944.5

                    479.7

                    551.1

                    14.88%

                    MADISON

                    115,676.1

                    126,742.0

                    7,588.3

                    7,882.0

                    3.87%

                    MANCHESTER

                    1,426,914.2

                    1,541,231.8

                    54,967.8

                    59,078.4

                    7.48%

                    MANSFIELD

                    43,903.1

                    38,150.5

                    3,446.7

                    3,520.3

                    2.13%

                    MARLBOROUGH

                    20,064.9

                    20,473.1

                    1,288.9

                    1,429.5

                    10.91%

                    MERIDEN

                    421,608.0

                    413,460.3

                    30,633.1

                    30,653.3

                    0.07%

                    MIDDLEBURY

                    76,341.9

                    79,110.2

                    3,698.0

                    4,095.6

                    10.75%

                    MIDDLEFIELD

                    7,691.1

                    8,412.4

                    1,091.0

                    1,042.4

                    -4.45%

                    MIDDLETOWN

                    318,892.8

                    345,808.7

                    25,151.9

                    26,100.4

                    3.77%

                    MILFORD

                    627,430.1

                    613,535.3

                    40,211.0

                    39,569.0

                    -1.60%

                    * NOTE: Large retailers with more than one establishment usually report all of their sales and use taxes from their

                    primary location; therefore, the figures for various towns may not reflect actual business activity.

                    COMPARATIVE SUMMARY OF RETAIL SALES AND

                    TAX RECEIPTS BY TOWN*

                    FISCAL YEARS ENDING JUNE 30, 1999 AND 2000

                    (IN THOUSANDS)

                    Retail Sales

                    Retail Sales

                    Sales & Use Tax

                    Sales & Use Tax

                    SUT Collections

                    FY 1998-99

                    FY 1999-00

                    FY 1998-99

                    FY 1999-00

                    % Change

                    TOWN

                    (SIC 52-59)

                    (SIC 52-59)

                    (All Businesses)

                    (All Businesses)

                    FY 00/FY 99

                    MONROE

                    87,286.7

                    96,436.1

                    8,836.5

                    9,134.4

                    3.37%

                    MONTVILLE

                    38,148.0

                    37,572.0

                    3,446.3

                    3,934.5

                    14.17%

                    MORRIS

                    3,212.6

                    3,206.4

                    641.3

                    616.3

                    -3.90%

                    NAUGATUCK

                    109,277.9

                    101,608.6

                    6,945.4

                    6,831.7

                    -1.64%

                    NEW BRITAIN

                    401,747.3

                    410,960.0

                    31,308.6

                    32,495.3

                    3.79%

                    NEW CANAAN

                    321,201.0

                    349,039.1

                    11,908.4

                    12,913.6

                    8.44%

                    NEW FAIRFIELD

                    24,436.7

                    27,235.2

                    1,146.2

                    1,217.1

                    6.19%

                    NEW HARTFORD

                    13,300.0

                    13,790.3

                    1,004.9

                    1,042.1

                    3.70%

                    NEW HAVEN

                    682,047.9

                    723,466.6

                    150,116.1

                    162,890.3

                    8.51%

                    NEW LONDON

                    333,642.2

                    362,296.5

                    24,352.1

                    26,641.8

                    9.40%

                    NEW MILFORD

                    193,580.6

                    184,426.6

                    11,735.4

                    13,259.3

                    12.99%

                    NEWINGTON

                    426,096.3

                    464,167.8

                    18,978.1

                    20,641.5

                    8.76%

                    NEWTOWN

                    97,240.7

                    104,902.0

                    5,000.4

                    5,647.5

                    12.94%

                    NORFOLK

                    4,278.3

                    4,769.2

                    390.1

                    489.2

                    25.39%

                    NORTH BRANFORD

                    39,325.2

                    34,944.6

                    3,284.3

                    3,634.6

                    10.67%

                    NORTH CANAAN

                    18,311.3

                    20,465.0

                    1,275.0

                    1,373.1

                    7.69%

                    NORTH HAVEN

                    1,025,069.6

                    1,099,529.7

                    61,613.9

                    66,555.2

                    8.02%

                    NORTH STONINGTON

                    17,576.1

                    17,767.4

                    821.0

                    864.2

                    5.27%

                    NORWALK

                    1,152,592.6

                    884,033.6

                    86,490.4

                    82,587.7

                    -4.51%

                    NORWICH

                    386,058.1

                    417,264.1

                    23,876.4

                    27,632.8

                    15.73%

                    OLD LYME

                    28,571.6

                    32,780.4

                    2,153.8

                    2,248.6

                    4.40%

                    OLD SAYBROOK

                    162,287.2

                    172,146.7

                    10,748.8

                    11,132.3

                    3.57%

                    ORANGE

                    139,666.6

                    138,971.8

                    24,868.5

                    26,491.8

                    6.53%

                    OXFORD

                    25,041.3

                    28,098.2

                    2,153.1

                    2,247.6

                    4.39%

                    PLAINFIELD

                    75,510.1

                    88,954.0

                    4,528.4

                    5,141.6

                    13.54%

                    PLAINVILLE

                    129,241.7

                    135,512.1

                    14,477.9

                    15,501.3

                    7.07%

                    PLYMOUTH

                    40,819.4

                    46,064.0

                    2,129.3

                    2,202.6

                    3.44%

                    POMFRET

                    6,217.5

                    8,443.1

                    537.8

                    584.3

                    8.64%

                    PORTLAND

                    65,196.4

                    81,967.4

                    3,482.6

                    3,675.8

                    5.55%

                    PRESTON

                    15,321.1

                    17,914.3

                    831.7

                    988.6

                    18.87%

                    PROSPECT

                    23,606.8

                    24,694.1

                    1,971.4

                    2,003.5

                    1.63%

                    PUTNAM

                    86,331.6

                    90,166.2

                    6,866.8

                    6,849.9

                    -0.25%

                    REDDING

                    15,113.4

                    11,865.9

                    1,719.9

                    1,296.4

                    -24.62%

                    RIDGEFIELD

                    203,619.4

                    203,592.1

                    13,612.0

                    14,030.5

                    3.07%

                    ROCKY HILL

                    76,764.8

                    75,918.7

                    14,356.1

                    14,554.5

                    1.38%

                    ROXBURY

                    4,858.4

                    6,012.5

                    346.6

                    423.2

                    22.11%

                    SALEM

                    6,699.0

                    6,115.1

                    630.4

                    672.7

                    6.72%

                    SALISBURY

                    39,435.6

                    36,614.0

                    2,731.5

                    2,710.1

                    -0.78%

                    SCOTLAND

                    2,213.6

                    2,719.7

                    68.8

                    81.5

                    18.40%

                    SEYMOUR

                    236,535.4

                    320,920.1

                    12,164.8

                    15,439.9

                    26.92%

                    SHARON

                    10,062.1

                    10,107.3

                    1,635.9

                    1,762.0

                    7.71%

                    SHELTON

                    682,813.0

                    746,165.3

                    33,771.3

                    39,715.1

                    17.60%

                    SHERMAN

                    4,849.8

                    5,382.5

                    477.9

                    458.0

                    -4.16%

                    SIMSBURY

                    173,175.0

                    180,121.6

                    11,853.2

                    12,083.1

                    1.94%

                    SOMERS

                    26,063.7

                    28,039.5

                    1,619.9

                    1,679.8

                    3.70%

                    * NOTE: Large retailers with more than one establishment usually report all of their sales and use taxes from their

                    primary location; therefore, the figures for various towns may not reflect actual business activity.

                    COMPARATIVE SUMMARY OF RETAIL SALES AND

                    TAX RECEIPTS BY TOWN*

                    FISCAL YEARS ENDING JUNE 30, 1999 AND 2000

                    (IN THOUSANDS)

                    Retail Sales

                    Retail Sales

                    Sales & Use Tax

                    Sales & Use Tax

                    SUT Collections

                    FY 1998-99

                    FY 1999-00

                    FY 1998-99

                    FY 1999-00

                    % Change

                    TOWN

                    (SIC 52-59)

                    (SIC 52-59)

                    (All Businesses)

                    (All Businesses)

                    FY 00/FY 99

                    SOUTH WINDSOR

                    214,951.6

                    266,984.2

                    13,220.6

                    14,091.1

                    6.58%

                    SOUTHBURY

                    71,742.3

                    78,617.7

                    5,824.6

                    6,063.5

                    4.10%

                    SOUTHINGTON

                    240,540.4

                    268,851.9

                    16,875.4

                    17,444.0

                    3.37%

                    SPRAGUE

                    2,724.6

                    2,891.8

                    517.9

                    253.7

                    -51.01%

                    STAFFORD

                    321,064.1

                    131,032.5

                    9,802.9

                    8,584.7

                    -12.43%

                    STAMFORD

                    1,534,396.0

                    1,708,144.8

                    122,121.7

                    133,167.7

                    9.05%

                    STERLING

                    3,269.9

                    2,955.5

                    199.9

                    251.3

                    25.69%

                    STONINGTON

                    126,940.6

                    134,807.6

                    10,447.0

                    11,274.3

                    7.92%

                    STRATFORD

                    542,106.9

                    587,003.3

                    35,058.1

                    37,636.6

                    7.35%

                    SUFFIELD

                    45,726.8

                    47,097.2

                    3,656.7

                    3,935.7

                    7.63%

                    THOMASTON

                    33,846.2

                    34,794.0

                    3,230.2

                    3,447.8

                    6.74%

                    THOMPSON

                    9,988.0

                    10,278.9

                    2,209.7

                    2,435.7

                    10.23%

                    TOLLAND

                    29,026.8

                    29,685.7

                    2,161.9

                    2,138.8

                    -1.07%

                    TORRINGTON

                    299,600.1

                    318,005.3

                    22,060.7

                    23,863.0

                    8.17%

                    TRUMBULL

                    132,638.7

                    152,333.2

                    12,047.5

                    12,830.3

                    6.50%

                    UNION

                    1,907.8

                    1,665.8

                    87.2

                    101.4

                    16.25%

                    VERNON

                    230,665.8

                    242,909.5

                    16,963.2

                    16,378.6

                    -3.45%

                    VOLUNTOWN

                    2,443.0

                    2,656.2

                    344.6

                    329.3

                    -4.45%

                    WALLINGFORD

                    355,864.4

                    380,180.9

                    28,390.4

                    31,065.9

                    9.42%

                    WARREN

                    450.2

                    821.2

                    126.7

                    139.2

                    9.88%

                    WASHINGTON

                    30,503.5

                    32,648.6

                    2,453.7

                    2,602.4

                    6.06%

                    WATERBURY

                    834,834.2

                    878,225.4

                    51,125.8

                    54,091.5

                    5.80%

                    WATERFORD

                    169,735.5

                    168,137.1

                    12,710.0

                    13,322.6

                    4.82%

                    WATERTOWN

                    245,434.7

                    338,014.5

                    12,445.4

                    14,190.3

                    14.02%

                    WEST HARTFORD

                    678,634.4

                    700,881.8

                    34,685.1

                    36,366.8

                    4.85%

                    WEST HAVEN

                    256,497.6

                    260,543.7

                    18,629.2

                    19,881.0

                    6.72%

                    WESTBROOK

                    55,083.7

                    60,708.7

                    4,501.2

                    4,847.2

                    7.69%

                    WESTON

                    13,918.1

                    13,858.8

                    2,046.4

                    2,712.7

                    32.56%

                    WESTPORT

                    1,086,958.4

                    1,212,657.4

                    33,426.5

                    37,549.9

                    12.34%

                    WETHERSFIELD

                    143,119.1

                    160,587.8

                    20,789.1

                    21,564.8

                    3.73%

                    WILLINGTON

                    33,833.6

                    44,186.0

                    1,303.9

                    1,467.7

                    12.56%

                    WILTON

                    332,512.3

                    390,172.8

                    17,225.7

                    19,290.7

                    11.99%

                    WINCHESTER

                    56,086.1

                    60,497.2

                    3,190.7

                    3,199.9

                    0.29%

                    WINDHAM

                    129,609.8

                    138,389.2

                    8,923.6

                    9,345.3

                    4.73%

                    WINDSOR

                    285,573.4

                    269,175.0

                    10,415.8

                    15,579.4

                    49.58%

                    WINDSOR LOCKS

                    102,568.7

                    123,511.1

                    12,459.2

                    14,589.2

                    17.10%

                    WOLCOTT

                    42,814.1

                    41,901.5

                    2,575.9

                    2,700.2

                    4.83%

                    WOODBRIDGE

                    30,509.8

                    32,089.8

                    6,801.3

                    7,208.5

                    5.99%

                    WOODBURY

                    81,048.4

                    95,045.3

                    6,075.6

                    5,842.6

                    -3.84%

                    WOODSTOCK

                    21,712.3

                    31,501.8

                    1,810.6

                    2,060.0

                    13.77%

                    OUT OF STATE

                    4,270,279.8

                    5,156,147.8

                    490,491.5

                    500,416.6

                    2.02%

                    TOTAL

                    $39,836,351

                    $42,629,694

                    $2,771,607

                    $2,933,326

                    5.83%

                    * NOTE: Large retailers with more than one establishment usually report all of their sales and use taxes from their

                    primary location; therefore, the figures for various towns may not reflect actual business activity.


                    NATIONWIDE COMPARISON OF TAX RATES

                    CORPORATION

                    SALES AND USE

                    MOTOR FUEL

                    CIGARETTE

                    STATE

                    TAX RATES

                    TAX RATES

                    TAX RATES

                    TAX RATE

                    (%)

                    (%)

                    ($.00 PER GAL)

                    ($0.00 PER PACK)

                    Alabama

                    5.0

                    4.0

                    16.0

                    16.5

                    Alaska

                    9.4

                    None

                    8.0

                    100.00

                    Arizona

                    8.0

                    5.0

                    18.0

                    58.0

                    Arkansas

                    6.5

                    4.625

                    19.5

                    31.5

                    California

                    8.84

                    6.0

                    18.0

                    87.0

                    Colorado

                    4.75

                    3.0

                    22.0

                    20.0

                    Connecticut

                    7.5

                    6.0

                    25.0

                    50.0

                    Delaware

                    8.7

                    None

                    23.0

                    24.0

                    Florida

                    5.5

                    6.0

                    4.0

                    33.9

                    Georgia

                    6.0

                    4.0

                    7.5

                    12.0

                    Hawaii

                    6.4

                    4.0

                    16.0

                    100.00

                    Idaho

                    8.0

                    5.0

                    25.0

                    28.0

                    Illinois

                    7.3

                    6.25

                    19.0

                    58.0

                    Indiana

                    7.9

                    5.0

                    15.0

                    15.5

                    Iowa

                    12.0

                    5.0

                    20.0

                    36.0

                    Kansas

                    4.0

                    4.9

                    20.0

                    24.0

                    Kentucky

                    8.25

                    6.0

                    15.0

                    3.0

                    Louisiana

                    8.0

                    4.0

                    20.0

                    20.0

                    Maine

                    8.93

                    5.5

                    22.0

                    74.0

                    Maryland

                    7.0

                    5.0

                    23.5

                    66.0

                    Massachusetts

                    9.5

                    5.0

                    21.0

                    76.0

                    Michigan

                    2.3

                    6.0

                    19.0

                    75.0

                    Minnesota

                    9.8

                    6.5

                    20.0

                    48.0

                    Mississippi

                    5.0

                    7.0

                    18.0

                    18.0

                    Missouri

                    6.25

                    4.225

                    17.0

                    17.0

                    Montana

                    6.75

                    None

                    27.0

                    18.0

                    Nebraska

                    7.81

                    5.0

                    23.9

                    34.0

                    Nevada

                    None

                    6.5

                    24.0

                    35.0

                    New Hampshire

                    8.0

                    None

                    18.0

                    52.0

                    New Jersey

                    9.0

                    6.0

                    10.5

                    80.0

                    New Mexico

                    7.6

                    5.0

                    17.0

                    21.0

                    New York

                    8.5

                    4.0

                    8.0

                    56.0

                    North Carolina

                    6.9

                    4.0

                    22.0

                    5.0

                    North Dakota

                    10.5

                    5.0

                    21.0

                    44.0

                    Ohio

                    8.5

                    5.0

                    22.0

                    24.0

                    Oklahoma

                    6.0

                    4.5

                    16.0

                    23.0

                    Oregon

                    6.6

                    None

                    24.0

                    68.0

                    Pennsylvania

                    9.99

                    6.0

                    12.0

                    31.0

                    Rhode Island

                    9.0

                    7.0

                    28.0

                    71.0

                    South Carolina

                    5.0

                    5.0

                    16.0

                    7.0

                    South Dakota

                    None

                    4.0

                    22.0

                    33.0

                    Tennessee

                    6.0

                    6.0

                    20.0

                    13.0

                    Texas

                    4.5

                    6.25

                    20.0

                    41.0

                    Utah

                    5.0

                    4.75

                    24.5

                    51.5

                    Vermont

                    9.75

                    5.0

                    19.0

                    44.0

                    Virginia

                    6.0

                    3.5

                    17.5

                    2.5

                    Washington

                    None

                    6.5

                    23.0

                    82.5

                    West Virginia

                    9.0

                    6.0

                    20.5

                    17.0

                    Wisconsin

                    7.9

                    5.0

                    25.8

                    59.0

                    Wyoming

                    None

                    4.0

                    13.0

                    12.0


                    1999-00 ANNUAL REPORT
                    DEPARTMENT OF REVENUE SERVICES
                    25 SIGOURNEY STREET
                    HARTFORD, CONNECTICUT 06106

                    WWW.DRS.STATE.CT.US

                    PREPARED BY: RESEARCH UNIT
                    Susan B. Sherman
                    Ernest Adamo
                    Dianna J. Aniello
                    Michael J. Galliher
                    Kristen M. Reynolds