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Connecticut CPA
July/August 2017
HB 5583, Angel Tax: Expands angel
investor tax credit eligibility.
action by the Governor.
HB 6681, Property Tax Appeals: Re-
stricts the types of professionals that
may value property or participate in a
property tax appeal.
HB 6746, Tax Credits: Permits certain
tax credits to companies investing in
biotech and bioscience companies in
the state.
HB 7050, Distressed Municipalities:
Establishes a system so distressed
towns and cities can bring themselves
under state fiscal control.
HB 7312, Numerous DRS Proposed
Tax Policy Changes: Makes numer-
ous tax law changes concerning DRS
tax enforcement, including shortening
sales tax permit validity from five to
two years (for any permit issued on
or after October 1, 2017), establishes
weekly sales tax remittance methods,
requires income tax withholding for
certain pension/annuity payments,
requires copies of federal information
returns reporting payment transac-
tions processed for Connecticut re-
tailers be submitted to DRS, requires
websites like Airbnb to collect and
remit use tax similarly to a hotel,
changes the order in which partial tax
payments are submitted, subjects
deferred compensation performed in
Connecticut to personal income tax,
advances the date payers of nonpay-
roll amounts not subject to withhold-
ing must submit returns, and requires
current DRS employees to have pe-
riodic criminal background checks.
Mandates registration of certain tax
preparers, but excludes CPAs and tax
preparers working under CPAs. Also
includes a penalty provision for cer-
tain prohibited acts.
Awaits action by the Governor.
HB 6681 Restricting CPAs from Representing Clients in
Property Tax Appeals
HB 6681 An Act Concerning Municipal Tax Appeals and Contingency
Agreements, would have restricted the types of professionals that may
value property or participate in a property tax appeal.
CTCPA put out a call for action via a Capitol Corner alert and members rose
to the challenge. CTCPA staff and our government relations consultant Craig
Leroy spoke to members of the legislature's Judiciary Committee, and our
members did, too. The end result was the leaders of the Judiciary Commit-
tee opted to hold the bill, effectively killing it.
As the legislative session comes to a close, anything can happen. Bills that
were already killed often come back as amendments; this is exactly what
happened with HB 6681.
Bonnie worked with legislators to broaden the proposed amendment, which
initially allowed only certified appraisers to provide property valuation ser-
vices for use in municipal assessment appeals, to allow certified or licensed
CPAs to perform these services.
HB 6681 died and the amendment proposed to bring the issue back was not
taken up.
Advocacy Efforts
While the Finance Committee has heard proposals on taxing professional
services for many years, this year the push for adopting a sales tax on
services came from Voices for Children.
They distributed materials to legislators arguing why Connecticut needs
to tax more services, pointing to the significant amount of money such a
measure would bring to the state coffers. CTCPA immediately responded by
publishing a quick one-page fact sheet pointing out that only three states
have a broad sales tax on business and professional services. We shared
this with legislative leaders, members of the Finance and Commerce Com-
mittee, and other key legislators.
While there are some legislators who have indicated they would support
such a measure, the majority expressed their opposition to such a tax at this
time. Given the state's fiscal situation, we are paying close attention to any
tax discussions, especially sales tax matters.
Sales Tax on Services