Capitol Corner



We had a very successful 2019 legislative session, defeating a sales tax on accounting and tax services proposal, stopping an increase to the CPA license fee, and addressing a number of other troublesome bills. Thank you all for playing an active role in our advocacy efforts. It would not have been possible without the help of all of you who heard our calls to action and emailed legislators, submitted testimony, donated to our digital advertising efforts, and more. Thank you!

Read the 2019 Connecticut Legislative Session Wrap-Up (pdf). 

View the complete text of Public Act 19-186 and Public Act 19-117. 

         

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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.

State News

A Supreme Court decision dashed homeowners’ hopes of getting their foundation repairs paid for by insurance companies. Here’s what you need to know:
The community of Connecticut homeowners with failing concrete foundations expressed frustration and disappointment in the wake of Tuesday’s state Supreme Court ruling that affirmed the insurance industry’s position that failing foundations do not meet the companies’ definition of collapse. “We just can’t match the insurance industry,” Debbie MacCoy, who owns a condominium with a failing foundation, said. “Who’s fighting for the little guy?”
Analysts: State revenues holding firm, plastic bag fees are down
Despite ongoing public fear of a national recession, state revenues largely remained constant, according to a new report Tuesday from fiscal analysts. General Fund revenues for the fiscal year that ends June 30 dropped by about $85 million below budgeted levels, driven by larger-than-anticipated refund claims, while most tax receipts remained strong.
CCM tries to get a little louder on property tax relief
After watching state aid erode over the past decade, Connecticut municipalities hope to appeal directly to voters on the issue of property tax relief, stirring the pot just in time for the 2020 election cycle. The Connecticut Conference of Municipalities announced the creation of a commission Tuesday that will craft a new property tax relief initiative and make its case directly to voters next year.
Senate Democrats Deliver Bad News To Lamont
Behind closed doors Wednesday, the Senate Democratic caucus politely told Gov. Ned Lamont that they couldn’t vote in favor of his $21-billion transportation plan if it included tolls. But the message may not have been that clear. “We did not take an actual headcount in the caucus on who was where,” Senate President Martin Looney, D-New Haven, said. So are tolls dead for now?
Rep. Courtney Statement on Supreme Court Ruling Against Homeowners Impacted by Crumbling Foundations Crisis
Source: Rep. Joe Courtney November 13, 2019 Congressman Joe Courtney (CT-02) released the following statement after the Connecticut Supreme Court ruled against thousands of eastern Connecticut homeowners in a decision that exempts many insurers from having to cover repairs to homes with structural damage caused by crumbling concrete foundations. “Today’s decisions by the Connecticut Supreme Court unfortunately rewards the insurance industry...

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Accounting Standards and Regulations

IRS, Treasury issue final regulations on new reporting requirements for life insurance contract transactions
The Internal Revenue Service today issued final regulations on the new information reporting requirements for certain life insurance contract transactions. The requirement was authorized under new section 6050Y, added to the Internal Revenue...
FASB votes to delay effective dates for 3 major standards
Effective dates will be delayed for private companies and certain other entities for FASB’s standards on accounting for leases, credit losses (known as CECL), and hedging after a unanimous vote Wednesday by FASB. FASB directed its staff to draft...
Treasury, IRS release final and proposed regulations on new 100% depreciation
The Treasury Department and the Internal Revenue Service today released final regulations (PDF) and additional proposed regulations (PDF) under section 168(k) of the Internal Revenue Code on the new 100% additional first year depreciation...
While Connecticut Waits, Other States Take Action On Marijuana Legislation
While efforts to legalize recreational marijuana have stalled in Connecticut, those same efforts have made progress around the country. A new report from the Marijuana Policy Project (MPP) released earlier this week details the cannabis policy...
Regionals Ponder CPA Evolution
The “Guiding Principles” for transforming the CPA profession to meet constantly escalating technological advances were the primary focus of the June 2019 NASBA Regional Meetings. On June 11-12 the Eastern Regional Meeting was held in Washington,...

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Federal News

Consumers support U.S. economy as business spending slumps
U.S. economic growth slowed less than expected in the third quarter as a further contraction in business investment was offset by resilient consumer spending, further allaying financial market fears of a recession. The Federal Reserve cut interest rates for the third time this year on Wednesday amid lingering threats to the longest expansion on record from uncertainty over trade policy, slowing global growth and Britain’s departure from the European Union.
Elections bring new focus on college debt, which burdens CT students more than others
Like many young couples who are starting a life together today, Dan and Sherry Agabiti carry a burden that’s largely unique to their generation – a large amount of college debt. Dan Agabiti, 28, is a Rhode Island native who wanted the experience of attending college away from home. He enrolled as an out-of-state student at the University of Connecticut against the counsel of friends and family who warned him it would cost too much.
How CPAs can prepare for the California Consumer Privacy Act
Last week, California Governor Gavin Newsom signed into law six amendments to the California Consumer Privacy Act, the comprehensive state privacy law that will go into effect Jan. 1, 2020, creating new compliance issues for CPAs and their clients. CCPA will “become the most stringent privacy law of any single state,” explained Anthony Pugliese, CEO of the California Society of CPAs, who spoke to Accounting Today about the wide-ranging effects of the new legislation on the eve of it being...
Fallout from Trump's trade wars felt by economies around the world
The collateral damage of the United States’ trade wars is being felt from the fjords of Iceland to the auto factories of Japan. Central bank governors and finance ministers traded grim tales of suffering economies at the International Monetary Fund and World Bank fall meetings in Washington this week. Some also noted how far U.S. policy had shifted from the 1940s, when Washington co-founded the IMF.
Kiplinger: CT, NY are 2nd and 3rd least-tax-friendly states
Connecticut and New York are respectively the second- and third-least-tax-friendly states in the nation, according to the latest annual ranking by personal finance magazine Kiplinger. The publication ranks states according to the sum of income, sales, property and gas taxes paid by a hypothetical married couple with two dependent children, an earned income of $150,000, and qualified dividends of $10,000. Illinois was judged the least tax-friendly in the country.

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