The General Assembly enacted many laws this year affecting Connecticut businesses, which take effect on July 1. These include measures on taxes, energy, the environment, and the workplace. Here is a brief list:

Taxes

  • SB 1239 (PA 11-6) AAC The Budget for the Biennium Ending June 30, 2013, and Other Provisions Relating to Revenue: As amended by HB 6652 (PA 11-61)

Sales and Use Taxes:

  • The general sales and use tax rate increases from 6 percent to 6.35 percent.
  • The room occupancy tax increases from 12 percent to 15 percent.
  • The tax on rental or leasing passenger vehicles for 30 consecutive days or less increases from 6 percent to 9.35 percent.
  • A sales tax rate of 7 percent for vessels more than $100,000, vehicles more than $50,000, jewelry more than $5,000, and clothing and footwear more than $1,000.
  • New taxable services include airport valet parking, yoga instruction at a studio, packing and crating services, towing and road services, pet grooming, and nail and spa services.

Miscellaneous taxes:

  • Real estate conveyance tax increases from 0.5 percent to 0.75 percent with deletion of the sunset date.
  • New electric generation tax imposed on electric generation services and uploading electricity generated at Connecticut facilities to the regional power grid.

Economic development

  • SB 1001 AAC Creating the First Five Program provides incentives to companies already in Connecticut and those that would locate here that create at least 200 jobs in the state. The bill waives requirements for legislative oversight in the provision of significant financial assistance to no more than five companies.
  • HB 6651 (Sec. 29) (Public Act 11-48) AA Implementing Provisions of the Budget Concerning General Government takes an important step toward creating a Connecticut business "concierge," to help the state become more business-friendly. The Secretary of State will create an electronic business portal to serve as a single point of entry for businesses to help them register, determine permitting and licensing requirements, and find available state financial incentives and programs.
  • SB 1003 (PA 11-84) AAC The Connecticut Airport Authority creates a nine-member Connecticut Airport Authority to replace the current Bradley board of directors. The authority would include representatives from both the public and private sectors, empowered to act quickly and allow Bradley to compete for air traffic and generate much-needed economic activity. The panel would also have authority over Connecticut's other, smaller airports. The bill eliminates the state's Transportation Strategy Board.

Energy and Environment

  • SB 1243 AA Establishing The Department of Energy and Environmental Protection and Planning for Connecticut's Energy Future merges the current Department of Environmental Protection, the Department of Public Utility Control, and energy experts within the Office of Policy and Management into the new Department of Energy and Environmental Protection (DEEP). The bill gives DEEP energy and environmental oversight and expands state programs designed to increase the use of green technologies and jobs within the industry.
  • SB 1239 AAC The Budget for the Biennium Ending June 30, 2013, eliminates the sales tax exemption for hazardous waste removal, which could have broad consequences for brownfields and other cleanup activities.
  • HB 6526 AAC Brownfield Remediation and Development as an Economic Driver changes existing DEP cleanup programs, especially regarding brownfields, and provides an entirely new option for brownfield developers designed to attract private investment in these properties.

For detailed descriptions visit www.cbia.com.

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CBIA is the state's largest business organization, with 10,000 members.