NOTICE: All DRS offices will be closed on Monday, January 21st, in observance of Martin Luther King Jr. Day. We will reopen on Tuesday, January 22nd.

Search Department of Revenue Services Filtered Topic Search

2015 Legislative Summary

The following is a summary of 2015 legislation affecting State taxes
DRS will publish additional guidance in the coming weeks

Alert: Please use the information available from this page for the most up-to-date tax information. Many of our older publications may not have been updated to accommodate the recent legislative changes.

SALES TAX

  • Car wash services are taxable as of July 1, 2015.
  • Water company purchases taxable as of July 1, 2015.  Eliminates previous exemption.
  • Clothing and footwear sales remain taxable.  Exemption for clothing and footwear costing less than $50 NOT restored on July 1, 2015.
  • Motor vehicle parking in seasonal parking lots and hospital garages are taxable as of July 1, 2015.  Only applies to non-metered parking lots with 30 or more parking spaces.
  • Luxury sales tax rate increased to 7.75% as of July 1, 2015.   No change to items to which the luxury sales tax rate applies.
  • Sales tax-free week will still be August 16-22 this year but for items costing less than $100.
  • Computer and data processing services rate is NOT changed but services in connection with the creation, development, hosting or maintenance of a website will be taxable at 1% as of October 1, 2015.
  • Sales tax return filing due date will be the end of the month (rather than the 20th day) for taxable periods ending on or after December 31, 2015.
RELATED PUBLICATIONS
  • SN 2015(4) - Sales and Use Taxes on Car Wash Services
  • SN 2015(5) - 2015 Legislative Changes to the Sales and Use Taxes
INCOME TAX
  • Military retirement pensions are fully exempt from the income tax for the 2015 tax year.
  • Rate increase to 6.9% starting with the 2015 tax year for those individuals in the second highest existing income tax bracket, which includes single filers with adjusted gross income exceeding $250,000, head of household filers with adjusted gross income exceeding $400,000 and joint filers with adjusted gross income exceeding $500,000.
  • Rate increase to 6.99% starting with the 2015 tax year for those individuals in the newly created highest tax bracket, which includes single filers with adjusted gross income exceeding $500,000, head of household filers with adjusted gross income exceeding $800,000 and joint filers with adjusted gross income exceeding $1,000,000.
  • Single filer exemption remains at the 2014 exemption amount of $14,500 for the 2015 tax year.
  • Connecticut earned income tax credit remains at the 2014 level of 27.5% for the 2015 and 2016 tax years.
  • Employers must now submit to DRS the state copies of federal Form W-2, Wage and Tax Statement, and Form CT-W-3, Connecticut Annual Reconciliation of Withholding, by January 31.
CORPORATION BUSINESS TAX
  • Mandatory unitary combined reporting will be effective for income years starting on or after January 1, 2016.
  • 20% surtax continued for income years through 2017.
  • Net operating loss carryforwards limited to 50% of net income for income years starting on or after January 1, 2015.
  • Tax credits limited to 50.01% of tax for income years starting on or after January 1, 2015.
OTHER TAXES
  • Heavy equipment rental surcharge expanded to include all equipment a rental company owns and rentals of less than a year effective as of July 1, 2015. Revised definition of rental company.

  • Ambulatory surgical centers will be subject to a gross receipts tax beginning with the quarter starting October 1, 2015.  The first $1 million in gross receipts are exempt each fiscal year and revenue subject to the hospitals tax is also exempt.

  • Unified gift and estate tax capped at $20 million for gifts made after January 1, 2016 and estates of decedents dying after January 1, 2016.

  • Cigarette tax increased to $3.65 a pack on October 1, 2015 and $3.90 a pack on July 1, 2016.  Floor tax for inventory of a dealer or distributor as of September 30, 2015 and June 30, 2016.

  • Harbor Yard Ballpark athletic events exempt from admissions tax effective July 1, 2015 until June 30, 2017.