Capitol Corner

We've got our eye on happenings at the Capitol! If state or federal legislation or accounting standards activity will affect you, your company, or your clients, we'll keep you updated here.

Read the full text of Governor Dannel Malloy's final State of the State address.


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State News

New tax break for private K-12 tuition begins this school year
A new state tax break is available this school year to help parents pay for private K-12 school tuition – a development triggered by the federal tax overhaul. The state has for years allowed parents to avoid paying state income taxes on up to $10,000 each year that they put into a college savings account, known as a 529 CHET account. In addition, they have not had to pay taxes on the money when it is withdrawn or on the investment earnings when they use it to pay for college.
Report says pension boards share blame for states’ widening debt
While past governors legislatures and governors get much of the blame for Connecticut’s massive pension debt, a new analysis says politically appointed oversight boards should share the heat both here and in other states. A recent analysis from The Manhattan Institute, a conservative, New York-based public policy group, also charged that labor representatives on these boards risk long-term pension stability to achieve short-term union objectives.
Insurance Commissioner Knocks Down Rate Hikes, Reduces Rates On Some Plans
Insurance Commissioner Katharine Wade reduced the average rate increases proposed by two private health insurance companies from 12.3 percent to 2.72 percent Thursday.
CT cities and towns press candidates for mandate relief
The Connecticut Conference of Municipalities challenged candidates for state office Monday to address more than 1,300 mandates placed on city and town budgets. The costs associated with these mandates — most of which are supported only partially with state dollars or unfunded entirely — are driving up property tax rates and leeching resources from local services, according to a new CCM candidate bulletin.
Is CT gearing up for another fiscal bait and switch?
Some folks call it the fiscal bait-and-switch, and it goes like this: Before an election, state officials vote to cut taxes — effective in the next term — ignoring projected budget deficits much larger than the promised relief. After the election, most of the tax cuts are canceled on the grounds the state can’t afford them.

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Accounting Standards and Regulations

State Boards Consider Technology Pathway
Attendees at NASBA’s Eastern and Western Regional Meetings are being asked to consider the concept of a Technology Pathway leading to the CPA license. Executive Vice President Colleen Conrad and Vice President – State Board Relations Dan Dustin...
View Louis Bucari's 'Hot Topics with the DRS' Slides
Connecticut Department of Revenue Services Legal Counsel Louis Bucari talked "Hot Topics with the DRS" to a packed house at the June 21 Easton CONNection - and was gracious enough to allow us to share his slides with our members. Louis addressed...
DRS Issues Guidance Regarding Treatment of Bonus Depreciation for Connecticut Income Tax Purposes
The Department of Revenue Services (DRS) recently issued guidance on treatment and decoupling of bonus depreciation for Connecticut income tax purposes, the result of new federal (Tax Cuts and Jobs Act of 2017) and state ( Public Act 18-49 )...
DRS Issues Implementation Guidance on 2018 Estimated Payments for the Newly Enacted Pass-Through Entity Tax
On May 31, 2018, Governor Malloy signed Public Act 18-49 , An Act Concerning an Affected Business Entity Tax, Various Provisions Related to Certain Business Deductions, the Estate and Gift Tax Imposition Thresholds, the Tax Treatment of Certain...
GASB Establishes New Implementation Guidance to Assist Stakeholders with Recent Pronouncements
The Governmental Accounting Standards Board (GASB) today issued implementation guidance containing questions and answers intended to clarify, explain, or elaborate on certain GASB Statements. Implementation Guide No. 2018-1, Implementation...

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Federal News

Trump Tracker! Surgent's Trump Tracker, inspired by The New York Times, tracks the status of all changes proposed by President Trump that could affect CPAs and their clients in a user-friendly format that makes it clear where a change currently stands.

Will Wayfair unleash state-by-state chaos?
The fallout from Wayfair continues – and the most recent development highlights the potential for the Supreme Court decision to unleash a patchwork of burdensome and confusing state sales tax rules. The Colorado Department of Revenue announced Sept. 11 that it will require out-of-state retailers who do business in Colorado to obtain a sales tax license.
Wall Street warns new federal tax rules could boost CT’s borrowing costs
The new federal cap on income tax deductions could translate into higher interest costs for Connecticut and other wealthy states when they borrow for school construction and other capital projects, a Wall Street credit rating agency warned Tuesday. Moody’s Investors Service said the new U.S. Treasury Department rules aimed at preventing high-income taxpayers from working around new limits on the deductibility of state and local taxes constitutes a “credit negative” for states like...
Accounting Today: Connecticut issues guidance on pass-through tax credit
The Connecticut Department of Revenue Services released guidance this week on the recently enacted Pass-Through Entity Tax Credit, which state lawmakers approved this spring as a way to get around limits in the new federal tax law on state and local tax deductions.
How TCJA Changes for Section 168(k) May Adjust
The IRS has published in the Federal Register proposed regulations that provide guidance concerning the additional first year depreciation deduction under Section 168(k) of the Internal Revenue Code. The proposal reflects changes made under the Tax Cuts and Jobs Act, and which affect taxpayers who deduct depreciation for qualified property acquired and placed into service after Sept. 27, 2017.
Live Connecticut Primary Election Results from Around the State
View election results by town.

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