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2000/2001Section 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 $72.9M 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-Naugautuck-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
Brandford-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-Malborough-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, 2000 through June 30, 2001, as compared to payments made for the period July 1, 1999 through June 30, 2000:

District and/or Entity: FY 1999-00 FY 2000-01
Greater Fairfield $1,770,110,.85 $1,863,226.63
Greater Waterbury 570,583.50 566,291.58
Greater New Haven 1,004,524.6 1,134,099.39
Connecticut Valley District 730,058.17 767,066.90
Southeastern Connecticut 1,797,547.56 1,888,496.85
Litchfield Hills District 359,035.51 408,618.69
Central Connecticut 151,342.04 160,851.20
Greater Hartford Tourism District 1,008,600.12 1,095,387.97
Northeast Connecticut Visitors District 89,416.67 112,023.57
Housatonic Valley District 1,100,269.81 1,201,652.42
Connecticut North Central Tourism Bureau 670,163.35 737,969.81
Greater Hartford Arts Council 151,906.85 161,240.65
New Haven Coliseum Authority 824,493.78 826,341.47
Capital City Economic Development Authority 1,325,590.06 1,452,793.48
Norwalk Maritime Center Authority 784,687.19 825,140.23
Stamford Center for the Arts 2,384,508.34 2,496.999.18
Total Payments $14,722,838.40 $15,698,200.02

2001 Conn. Pub. Acts 6, June Special Session, caps allocations to the tourism districts at the amounts received for fiscal year ending June 30, 2001.  The balance of funds not   allocated will be transferred to the General Fund.  Effective for fiscal year ending June 30, 2002 and thereafter, these amounts will be segregated from room occupancy gross receipts and allocated to the following entities:  Connecticut Historical Society $40,000; Department of Economic & Community Development $50,000; Connecticut Commission on the Arts $50,000; Connecticut Historical Commission/Historical Resource Inventory $30,000; Central Tourism Account $500,000; and Connecticut Film, Video and Media Office $400,000.

The amounts received by the related entities (Greater Hartford Arts Council, New Haven Coliseum Authority, Capital City Economic Development Authority, Norwalk Maritime Center Authority, and Stamford Center for the Arts) will not be affected by the legislative change in 2001 Conn. Pub. Acts 6, June Special Session.


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. 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 and Interest
Penalty Interest
1998-99 63.4 13.3 50.1
1999-00 61.1 14.5 46.6
2000-01 69.7 15.7 54.0

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

Tax Type FY 1998-99 FY 1999-00 FY 2000-01
Corporation Tax

Penalty

$ 0.5 $ 0.6 $ 0.8
Interest 22.4 18.8 1.62
Income Tax

Penalty

4.9 6.2 7.1
Interest 10.9 8.4 11.9
Sales & Use Taxes

Penalty

6.0 5.7 5.8
Interest 13.6 15.9 16.2