New PTE Tax Proposed

Connecticut Gov. Dannel P. Malloy announced 2019 fiscal year budget adjustments that include proposals to:

-create a new pass-through entity tax and a corresponding personal income credit for pass-through entity tax paid;

-maintain a corporate business tax surcharge of 8% for the 2019 tax year;

-limit the $2.5 million cap on corporation business tax liability for unitary combined groups to manufacturers;

-repeal the 7/7 Brownfield Redevelopment Program tax credit;

-eliminate the new personal income tax deduction for pension income;

-cancel the increase in the threshold for the social security income deduction;

-permanently cap the deduction for teachers’ retirement income at 25%;

-abolish the $200 income tax credit for property tax payments;

-eliminate the $500 income tax credit for residents employed in Connecticut with college degrees in science, technology, engineering, or math (STEM);

-repeal the sales and use tax exemption for nonprescription drugs;

-increase the tax on cigarettes from $4.35 per pack to $4.60 per pack and on cigars from $0.50 to $1.50;

-impose a tax on e-cigarettes at 75% of the wholesale price;

-raise the real estate conveyance tax rates from 0.75% to 0.85% and from 1.25% to 1.4%; and

-hike the hotel occupancy tax from 15% to 17%.

Subscribers can view the governor’s budget adjustment proposals and press release.

2019 Budget Adjustment Proposals

Press Release

Press Release, Office of Connecticut Gov. Dannel P. Malloy, February 5, 2018

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup