2000/2001Section Admissions And Dues Tax
| Revenue |
FY 1998-99
$24,780,011
26,649,619
25,742,422
Exemptions
- 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:
- 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 Frequency
Admissions 155 taxpayers / Monthly
Dues 180 taxpayers / Monthly
Basis and Rate
| Admissions | 8% of the admissions charge to motion picture shows. Effective July 1, 2001, the rate is reduced to 6%. |
| 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
| FY 1998-99 | FY 1999-00 | FY 2000-01 | |
| Admissions | $ 9,940,929 | $ 10,159,870 | $ 8,953,214 |
| Dues | 14,839,082 | 16,489,749 | 16,789,208 |
| Total | $ 24,780,011 | $ 26,649,619 |
$ 25,742,422
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 1998-99 | |
$ 40,280,872
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 1998-99 (gallons) |
FY 1999-00 (gallons) |
FY 2000-01 (gallons) |
Beer - barrels
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 1998-99 | |
$ 119,055,991
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
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 1998-99 | |
$1,072
962
87,135
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 1998-99 |
$3,076,064 |
| 1999-00 |
924,194 |
| 2000-01 |
1,165,395 |
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;
- 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
18 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 1998-99 |
$752,810 |
|
1999-00 |
766,029 |
|
2000-01 |
922,829 |
Basis and Rate
1% of gross receipts at retail.
Number of Taxpayers/Filing Frequency
585 taxpayers/Quarterly
GIFT TAX
Gifts which 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. The Connecticut Gift Tax is being incrementally reduced to eventually apply only to those donors who make taxable gifts exceeding $1 million in the aggregate during a calendar year.
|
Revenue | |
|
FY 1998-99 |
$ 33,233,693 |
|
1999-00 |
32,765,696 |
|
2000-01 |
28,206,636 |
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 |
$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 |
|
|
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 |
|
|
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 |
|
|
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 |
|
|
Tax Rate |
|
$950,000 or less |
exempt |
|
Over $950,000 |
$45,000 + 6% of amount over $950,000 |
|
|
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 2000-01, revenue collected amounted to $28,206,636. Most of this revenue is attributed to calendar year 2000 returns with the remainder from audit or late return payments. A breakdown of calendar year 2000 returns is shown below.
|
2000 GIFT TAX RETURNS | |||
|
Amount of Taxable Gift Due |
# of Returns |
Tax Due | |
|
$25,000 or less |
5,626 |
$288,745 | |
|
Over $25,000 but not over $50,000 |
1,433 |
643,179 | |
|
Over $50,000 but not over $75,000 |
840 |
854,093 |
|
|
Over $75,000 but not over $100,000 |
564 |
980,494 | |
|
Over $100,000 but not over $200,000 |
826 |
3,272,117 | |
|
Over $200,000 but not over $300,000 |
256 |
2,150,379 | |
|
Over $300,000 but not over $400,000 |
113 |
1,467,649 | |
|
Over $400,000 but not over $500,000 |
82 |
1,323,602 | |
|
Over $500,000 but not over $1,000,000 |
173 |
4,458,261 | |
|
Over $1,000,000 |
42 |
4,007,935 | |
| Total |
9,955 |
$ 19,446,454 | |
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 1998-99 |
$193,362,947 |
|
1999-00 |
197,843,003 |
|
2000-01 |
186,867,605 |
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 1998-99 |
FY 1999-00 |
FY 2000-01 |
|
Domestic |
$ 33,010,461 |
$26,874,578 |
$26,332,114 |
|
Foreign |
128,182,999 |
131,900,557 |
129,879,387 |
|
Health Care Center |
30,570,129 |
37,187,076 |
28,893,604 |
|
Unauthorized |
1,599,357 | 1,880,792 | 1,762,499 |
|
Total |
$ 193,362,946 |
$197,843,003 |
$186,867,605 |
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 $73.50 per person based on the monthly average number of persons covered.
| Calendar Year 2000 Insurance Business Tax Credits | ||
|
Electronic Data Processing |
36 |
$12,487,827 |
|
Health Care Coverage Under the HUSKY Plan |
3 |
5,395,338 |
|
Housing Program Contribution |
1 |
59,399 |
|
Insurance Department Assessment |
21 |
981,433 |
|
Insurance Reinvestment |
8 |
930,393 |
|
Neighborhood Assistance |
1 |
3,000 |
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 1998-99 |
$9,826,389 |
|
1999-00 |
10,078,118 |
|
2000-01 |
10,274,045 |
Exemption
Motor bus companies whose operations in Connecticut are exclusively for purposes of charter or special operations.
Number of Taxpayers/Filing Frequency
2,900 IFTA filers/Quarterly
3,500 Motor Carrier filers/Quarterly
Basis and Rate
|
Rate per Gallon | |
|
Gasoline |
25¢ |
|
Gasohol |
24¢ |
|
Diesel Fuel |
18¢ |
|
Natural Gas |
18¢ |
|
Propane |
18¢ |