Business taxes

(April 11, 2008) State tax policy has the ability to help — or hinder — economic development. It can help employers create more jobs and compete in a global economy, or it can burden them with higher costs and make it harder for businesses to operate. With a current business tax climate ranking of 38th in the U.S., (The Tax Foundation) Connecticut needs to do more to become a more attractive place for business investment.

Increases property tax burden
SB-701 hurts Connecticut’s businesses by permitting 18 municipalities in the state to shift a significant portion of their property tax burden onto businesses by exempting from property tax the first $100,000 of the assessed value of most single-parcel, owner-occupied residential real property. Manufacturers would be hardest hit because of the large amounts of personal property that they own.
The 18 municipalities are Bloomfield, Bridgeport, Bristol, East Hartford, Groton, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Stamford, Waterbury, and Windham.

Positive tax reform
SB-702 improves Connecticut’s business tax climate by reversing the erosion of taxpayers’ administrative and judicial rights and remedies, and protecting taxpayers’ privacy. The proposal will do this by requiring the Department of Revenue Services (DRS) to notify, in a timely manner, taxpayers of unauthorized access to electronic tax data; clarifying the standard of proof in most tax appeals as a preponderance of evidence; requiring DRS to send copies of notices it serves on taxpayers to their representatives if a properly executed power of attorney has been filed with the DRS.

Expands sales tax
HB-5844 imposes a sales tax on delivery services and requires those revenues, as well as others, to help fund the state Payment In Lieu Of Taxes (PILOT) programs for state-owned property, private colleges and hospitals.