Tax, energy and ethics changes in special session

(June 17, 2008) State lawmakers worked into the wee hours last Thursday morning debating, and ultimately passing, several pieces of legislation that will affect most people in Connecticut in the coming months and years.

First on lawmakers’ list was the extension of the real estate conveyance tax — a fee paid by property sellers at the time of sale — that was scheduled to sunset this year. Municipalities claim that the roughly $35 million to $40 million in revenue it generates is critical to their ability to provide services to their communities.

Energy relief
Lawmakers were also determined to provide relief to Connecticut consumers. With gasoline prices skyrocketing in the state, they agreed to delay a 0.5% increase in the state’s gross receipts tax on the sale of petroleum, which had been scheduled to take effect next month.

They also passed a measure to protect consumers who enter into pre-paid contracts with home heating oil suppliers — in the event that suppliers go out of business or otherwise fail to deliver. The bill also will allow gas stations to offer discounts to customers who pay cash and will set aside $2.5 million for the purchase of fuel-efficient furnaces for low-income and elderly households.

In addition, lawmakers passed a bill that allows the state to revoke the pensions of state and local officials and employees convicted of corruption. It also imposes new ethics duties on certain public employees, clarifies existing campaign contribution laws, and establishes new duties and procedures for the Office of State Ethics.

Finally, the Assembly approved a bill to cover budget shortfalls at several state agencies and institutions.

Minimum wage veto
Last week, Gov. Rell vetoed an increase in the state’s minimum wage to $8 per hour on Jan. 1, 2009, and to $8.25 in 2010. She said the measure would have hurt families and businesses in the state.

But majority lawmakers have said they are planning to have the legislature come back again on Monday, June 23 to attempt an override of the veto.