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New PTE Tax Proposed – Tax & Accounting Blog

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

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Author: CCHTaxGroup

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