Connecticut Governor Allows Budget Bill to Become Law Without Signature – includes Rate Decrease and Amnesty Program

On August 31, 2009, Governor Jodi Rell announced that she would allow the budget bill to become law without her signature with the exception of certain line-item vetoes. The bill is scheduled to become law on September 8, 2009. Among the passed items in the bill was a decrease in the sales and use tax rate. The rate will be decreased from 6% to 5.5%, effective January 1, 2010. This rate decrease is contingent upon meeting certain revenue projections. In addition, the fee for a seller’s permit will increase from $50 to $100 beginning October 1, 2009. Another item passed in the bill was a provision to establish a tax settlement initiative program. The bill requires the Department of Revenue to conduct this amnesty program during the period of October 1, 2009 and December 31, 2009, inclusive. The program will allow eligible taxpayers to pay any outstanding taxes from prior periods in exchange for a waiver of all civil penalties and fifty percent of the interest due. (H.B. 6802, passed by the Connecticut General Assembly on August 31, 2009)

Posted on September 8, 2009