SB 478 Summary

• Modifies Connecticut estate tax schedules for decedents dying on or after January 1, 2010, increasing the exemption threshold from $2,000,000 to $3,500,000 and adjusting tax rates on estates over that amount.

• Establishes a new gift tax schedule effective January 1, 2010, raising the exemption threshold to $3,500,000 with progressive tax rates ranging from 14.8% to 20% on gifts exceeding that threshold.

• Implements a revised gift tax schedule effective January 1, 2012, with a lower exemption of $3,500,000 and reduced tax rates ranging from 7.2% to 12% on taxable gifts.

• Reimposed the hospital gross earnings tax at 5.5% for taxable quarters commencing July 1, 2010 through July 1, 2014, and establishes a $20 million annual hospital equalization account to mitigate hospital losses.

• Exempts attorneys employed by the state, political subdivisions, or probate courts from the occupational tax and modifies the state-administered general assistance medical program to pursue Medicaid state plan amendments instead of federal waivers.