NOTICE: DRS offices will be closed Monday, October 14, 2019, in observance of Columbus Day.

Revenue

FY 1999-00

$ 26,649,619

2000-01

25,742,422

2001-02

26,849,216

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,
  •    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;
  • 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 - 175 taxpayers / Monthly
Dues - 220 taxpayers / Monthly

Basis and Rate  

Admissions 6% of the admissions charge to motion picture shows.

10% of the admission charge to any other place of amusement, entertainment or recreation.

Dues  10% of membership dues or initiation fees to any social, athletic or sporting club organization.

Comparative Data

Tax Due

FY 2000-01

FY 2001-02

Motion Picture Admissions

$ 4,906,361

$ 4,537,517

Other Admissions

4,046,853

4,591,216

Dues

16,789,208

17,720,483

Total

$ 25,742,422

$ 26,849,216


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 1999-00

$40,964,731

2000-01

41,145,655

2001-02

41,618,820

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

90 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 1999-00

FY 2000-01

FY 2001-02

(gallons)

(gallons)

(gallons)

Beer - barrels

214,506

204,777

198,427

Beer - gallons

51,759,690

51,257,075

53,179,648

Still Wine

9,902,560

10,246,319

10,331,809

Small Wineries

59,215

71,185

82,099

Sparkling Wine

465,296

408,367

386,701

Distilled Liquor

4,882,838

4,964,623

5,008,970

Liquor Cooler

91,861

124,762

109,308

Alcohol

35,054

36,261

34,639


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 1999-00

$117,425,635

2000-01

114,847,459

2001-02*

156,485,164

Exemptions

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

Number of Taxpayers/ Filing Frequency

67 taxpayers/ Monthly

Basis and Rate*

55½ mills per cigarette, or $1.11 per pack of twenty. Prior to April 3, 2002, the rate was 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 1999-00

$962

2000-01

87,135

2001-02

147,547

Basis and Rate

$3.50 per gram of marijuana;

$200 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 1999-00

$ 924,194

2000-01

1,165,395

2001-02

1,366,895

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

        20 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 1999-00

$ 766,029

2000-01

922,829

2001-02

906,281

Basis and Rate

1% of gross receipts at retail.

Number of Taxpayers/Filing Frequency            583 taxpayers/Quarterly


GIFT TAX

Gifts that are taxable for federal purposes 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. state by Connecticut residents and nonresidents. The Connecticut Gift Tax is being incrementally reduced to eventually apply only to those donors donors who make taxable gifts exceeding $1 million in the  aggregate during a calendar year.

Revenue

FY 1999-00 $32,765,696
2000-01 28,206,636
2001-02

19,953,803

Exemptions

  • The first $25,000 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 $50,000 of gifts made by consenting spouses is exempt.)

Basis and Rate

2000 Conn. Pub. Acts 170 amended Conn. Gen. Stat. §12-642 to reduce the tax on gifts under $1 million incrementally over a six-year period, starting with gifts made during calendar year 2001. The tax rates are shown below:

 

Amount of Taxable Gift 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

Amount of Taxable Gift Calendar Year 2002

Tax Rate

$50,000 or less

exempt

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 $700,000

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

Over $700,000

$32,500 + 6% of amount over $700,000

 

Amount of Taxable Gift Calendar Year 2003

Tax Rate

$75,000 or less

exempt

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

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

Over $100,000 but not over $700,000

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

Over $700,000

$32,500 + 6% of amount over $700,000

 

Amount of Taxable Gift Calendar Year 2004

Tax Rate

$100,000 or less

exempt

Over $100,000 but not over $850,000

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

Over $850,000

$40,000 + 6% of amount over $850,000

 

Amount of Taxable Gift Calendar Year 2005

Tax Rate

$950,000 or less

exempt

Over $950,000

$45,000 + 6% of amount over $950,000

 

Amount of Taxable Gift Calendar Year 2006

Tax Rate

$1,000,000 or less

exempt

Over $1,000,000

$47,500 + 6% of amount over $1,000,000

Detail of Revenue

For Fiscal Year 2001-02, revenue collected amounted to $19,953,803. Most of this revenue is attributed to calendar year 2001 returns with the remainder from audit or late return payments. A breakdown of calendar year 2001 returns is shown below.

2001 GIFT TAX RETURNS
Amount of Taxable Gift Due # of Returns Tax Due
$25,000 or less

3,517

$ 26

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

1.348

683,958

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

757

839,163

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

432

857,039

Over $100,000 but not over $200,000 725

3,147,703

Over $200,000 but not over $300,000 210

2,014,150

Over $300,000 but not over $400,000 98 1,447,658
Over $400,000 but not over $500,000 38 776,545
Over $500,000 but not over $1,000,000 82 2,375,435
Over $1,000,000 14

1,889,021

Total 3,704

$ 14,030,698


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 1999-00

$197,843,003

2000-01

186,867,605

2001-02

211,249,231

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, and to employees of a Connecticut municipality under a plan procured pursuant to Conn. Gen. Stat. §5-259(i), 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 1999-00

FY 2000-01

FY 2001-02

Domestic

$26,874,578

$26,332,114

$31,063,908

Foreign

131,900,557

129,879,387

135,999,108

Health Care Center

37,187,076

28,893,604

41,280,791

Unauthorized

1,880,792

1,762,499

2,905,424

Total

$197,845,002

$186,867,605

$211,249,231

Tax Credits

The State of Connecticut provides for several tax credits which may be applied against the Insurance Premiums Tax. Described below are the credits unique to the Insurance Premiums Tax. Please turn to page 36 for additional information on business tax credits.Insurance Department Assessment Credit

Reference: Conn. Gen. Stat. §12-202

Certain local domestic insurance companies are allowed a credit against the insurance premiums tax in the amount of 80% of the Connecticut Insurance Department assessment paid during the calendar year if their admitted assets do not exceed amounts specified in Conn. Gen. Stat. §12-202.Credit for Providers of HUSKY Coverage

Reference: Conn. Gen. Stat. §12-202b

Health care centers that provide health care coverage to persons under the HUSKY Plan Part A, HUSKY Plan Part B, or HUSKY Plus programs are allowed a credit against the Insurance Premiums Tax in the amount of $55.00 per person based on the monthly average number of persons covered.

Calendar Year 2001 Insurance Business Tax Credits

Type of Credit

Number of Credits

Amount of Credit Claimed

Electronic Data Processing

41

$12,252,811

Housing Program Contribution

2

831,452

Insurance Department Assessment

18

1,018,575

Insurance Reinvestment

14

2,696,054

Neighborhood Assistance

2

76,000

Health Care Coverage under the HUSKY Plan

1

1,639,154

Historic Homes

2

239,707