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 $66.7M 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:
New Canaan-Norwalk-Stamford-Stratford -Weston-Westport-Wilton
GREATER NEW HAVEN
Ansonia-Bethany-Derby-East Haven-Hamden-Milford-New Haven-North Branford-
North Haven-Orange-Prospect-Shelton-Trumbull-West Haven-Woodbridge
Branford-Chester-Clinton-Cromwell-Deep River-Durham-East Haddam-East Hampton- Essex-Guilford-Haddam-Killingworth-Madison-Meriden-Middlefield-Middletown-
New London-North Stonington-Norwich-Old Lyme-Preston-Salem-Sprague -Stonington-Voluntown-Waterford
Kent-Litchfield-Morris-New Hartford-New Milford-Norfolk-North Canaan-Plymouth- Roxbury-Salisbury-Sharon-Southbury-Torrington-Warren-Washington-Winchester-Woodbury
CENTRAL CONNECTICUTBerlin-Cheshire-New Britain-Plainville-Southington
Andover-Avon-Bolton-Burlinton-Canton-East Hartford-Ellington-Farmington- Glastonbury-Hartford-Hebron-Manchester-Marlborough-Newington-Rocky Hill-
Simsbury-South Windsor-Tolland-Vernon-West Hartford-Wethersfield
CONNECTICUT NORTH CENTRAL
Bloomfield-East Granby-East Windsor-Enfield-Granby-Somers-Stafford-
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, 2001 through June 30, 2002, as compared to payments made for the period July 1, 2000 through June 30, 2001:
|District and/or Entity:||FY 2000-01||FY 2001-02|
|Greater New Haven||1,134,099.39||1,023,103.31|
|Connecticut Valley District||767,066.90||
|Litchfield Hills District||408,618.69||348,365.18|
|Greater Hartford Tourism District||
|Northeast Connecticut Visitors District||112,023.57||112,023.57|
|Housatonic Valley District||1,201,652.42||1,033,250.46|
|Connecticut North Central Tourism Bureau||737,969.81||700,086.84|
|Greater Hartford Arts Council||161,240.65||139,837.15|
|New Haven Coliseum Authority||826,341.47||786,353.50|
|Capital City Economic Development Authority||1,452,793.48||1,258,534.76|
|Norwalk Maritime Center Authority||825,140.23||742,480.47|
|Stamford Center for the Arts||
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. Disbursements to the tourism districts for the 2001-02 fiscal year exceeded the cap imposed under 2001 Conn. Pub. Acts 6, June Special Session, by $145,798.71. Therefore, $145,798.71 of money that would have gone to the districts was retained in the General Fund.
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.
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 $50, whichever is greater. The penalty for failure to pay the use tax with the CT-1040/1040EZ income tax returns is 10%, reduced from 15%, to parallel the rate for the income tax.
Interest is also charged on any amount of tax due that is not paid on or before the due date. Interest is charged on a monthly basis at a rate of 1% per month or 12% annually.
The charts below reflect total penalty and interest revenue paid for the past three fiscal years, and the breakdown by major tax type for the same fiscal years, respectively.
Penalty and Interest Revenue
All State Taxes
Penalty and Interest Revenue
By Major Tax Source
|Tax Type||FY 1999-00||
|Corporation Tax||Penalty||$ 0.6||$ 0.8||
|Sales & Use Taxes||
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 motorbus company or a company engaged in livery service.
Refunds of the Personal Income Tax owed to any person or entity with a debt obligation to the state may be withheld to offset the outstanding debt. There were 1,901 offsets in Fiscal Year 2001-02, totaling $1,266,040.
Listed below are the refund amounts by tax type, and the total amount of taxes refunded for
Fiscal Years 2000-01 and 2001-02.
AMOUNT OF TAXES REFUNDED
|Corp. R&D Credit Buyback||0||
|Sales & Use||24,706,805||20,347,682|
|Real Estate Conveyance||69,792||2,822,111|
|CT Estate Tax||
|Health Care Centers||2,309,544||1,081,185|
|Hospital Gross Earnings||290,730||872,745|
|Unrelated Business Income||
|Special Motor Fuel||
|Admissions, Dues & Cabaret||
* Included in Miscellaneous
COMPARATIVE SUMMARY OF RETAIL SALES AND
TAX RECEIPTS BY TOWN
FISCAL YEARS ENDING JUNE 30, 2001 AND 2002
NATIONWIDE COMPARISON OF TAX RATES
2001-02 ANNUAL REPORT
DEPARTMENT OF REVENUE SERVICES
25 SIGOURNEY STREET
HARTFORD, CONNECTICUT 06106
PREPARED BY: RESEARCH UNIT
Susan B. Sherman
Dianna J. Aniello
Michael J. Galliher
Kristen M. Reynolds