CTCPA Executive Director Bonnie Stewart testifies before Finance, Revenue, and Bonding Committee April 10 public hearing


CTCPA Executive Director Bonnie Stewart testifies before the Finance, Revenue, and Bonding Committee April 10 public hearing.

Video courtesy of CT Public Affairs Network, Inc.

On April 10, CTCPA Executive Director Bonnie Stewart testified on two bills of interest to the Society currently before the Finance, Revenue and Bonding Committee. The Finance Committee deadline to advance legislation is May 2, so we'll have a better idea then as to which revenue measures will move forward this year ... and we'll certainly keep you apprised.

The first bill of interest to CTCPA is House Bill (HB) No. 7373, "An Act Concerning The Department Of Revenue Services' Recommendations For Minor Revisions To The Tax And Related Statutes", which contains several issues the DRS is trying to address related to Public Act (PA) 18-49. The CTCPA testifed in favor of HB No. 7373 and also requested that other changes related to the retroactive application of PA 18-49 be added.

Specifically, the CTCPA asked for a waiver of all penalties and interest resulting from the retroactive application of any bill. The Society also asked for a modification of the rules as they relate to bonus depreciation to make the change optional for 2017 by adding the following language to the Connecticut General Statutes (CGS) so that an individual has the option to take the deduction in 2017: “For property placed in service after September 27, 2017, any additional allowance for depreciation under subsection (k) of Section 168 of the Internal Revenue Code, to the extent deductible in determining federal adjusted gross income, except that, for the 2017 tax year only, taxpayers have the option of claiming such depreciation deduction."

Finally in regard to HB No. 7373, the CTCPA asked that when referring to "Resident portion of unsourced income" that the affected business entity can be owned either directly or indirectly by members who are residents of this state. CTCPA proposed this be achieved by adding the following language to the CGS: “'Resident portion of unsourced income' means unsourced income multiplied by a percentage equal to the sum of the ownership interests in the affected business entity owned either directly or indirectly by members who are residents of this state, as defined in section 12-701 of the general statutes, as amended by this act.”

Second was Senate Bill (SB) No. 1090, "An Act Concerning The Department Of Revenue Services' Recommendations For Tax Administration," in particular, Section 1 of the bill. 

Section 1 proposed switching the order in which late payment is made by a taxpayer to the DRS. Currently the order of payment is penalty, then taxes, then interest. Section 1 of SB No.1090 would change to order of payment to penalty, interest, and then taxes. The CTCPA testified in opposition to Section 1.