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Senate Bill 806, which would have required every person making sales of tangible personal property or services through an independent contractor or other representative in Connecticut through an agreement under which the resident, for a consideration, directly or indirectly refers potential customers via a link on an Internet web site or otherwise died in committee. (S.B. 806 died in the committee on Revenue, Finance, and Bonding on June 2, 2009)

(08/20/2009)

The Superior Court of Connecticut has overturned the Commissioner of Revenue Services’ decision that school teachers who distribute catalogs and books to students and take student orders are “representatives” who participate in an in-state “sales force” to sell, deliver, and take orders to generate revenue on behalf of an out-of-state company that sells books exclusively to schools. Although the teachers fulfill a crucial administrative role for the bookseller, this function does not elevate the teachers to the level of a “sales force” because the decision to participate in the bookseller’s program remains with the teacher, the teachers may act as customers and purchase books for their own use, and the bonus points given to the teachers as their only form of compensation are for classroom use only and stay with the classroom, not the teacher. Since it is determined that the teachers are not representatives of the bookseller, their administrative activities do not establish nexus for the bookseller.

(Scholastic Book Clubs, Inc. v. Commissioner of Revenue Services, Connecticut Superior Court, Nos. CV07 4013027 S and CV 07 4013028 S, April 9, 2009)

(04/16/2009)

Electricity used during wireless communications is subject to Connecticut sales and use taxes. This taxable use includes using the electricity to transmit voices, images, data, audio, and video. However, an exemption does exist for electricity, but only when it is used in the creation of a finished product to be used in an industrial manufacturing plant. (Ruling 2008-1, Sales and Use Taxes, Utility Exemption (Manufacturing) Connecticut Department of Revenue Services, December 15, 2008).

(02/18/2009)

The State of Connecticut will offer a tax amnesty program from May 1, 2009 through June 25, 2009 to taxpayers owing certain Connecticut taxes, including sales and use taxes, for any taxable period ending on or before November 30, 2008. To be eligible, a taxpayer must have either failed to file a return for the taxable period or underreported the amount of tax on a previously filed return. Amnesty will not be offered on existing bills, or if the taxpayer is currently under audit by the Connecticut Department of Revenue Services or party to any criminal investigation or any civil or criminal litigation involving the Department. (Connecticut Tax Amnesty – May 1 – June 25, 2009, Connecticut Department of Revenue Services, December 30, 2008)

(01/27/2009)

The Connecticut Commissioner of Revenue Services has authorized a tax amnesty period from May 1, 2009 to June 25, 2009. The amnesty program is for taxes owed on or before November 30, 2008. The tax amnesty is available for any tax enforced by Connecticut laws, including, but not limited to, sales and use tax, personal and corporate income tax, franchise tax and excise tax. Eligible participants include taxpayers that were required to file with the Commissioner and for which no return was previously filed, or taxpayers that previously filed, but underreported their tax liability. Tax returns previously examined by the State are not eligible. Any person who participates in the program will have civil penalties and late fees waived. A reduced interest rate will, however, apply to taxes paid. Any person that cooperates with the program, but presents false data to the Commissioner will be disqualified from the program and may be fined up to $5,000 or incarcerated for 12- 60 months. (H.B. 7601 and S.B. 1200, passed by the General Assembly on November24, 2008, and signed by Gov. M. Jodi Rell on November 25, 2008, both effective November 25, 2008; Telephone Interview, Office of the Governor, November 25, 2008)

(12/01/2008)

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