CT HB06652

Establishes a municipal revenue sharing account funded by sales tax revenues, providing approximately $50.3 million in manufacturing transition grants to Connecticut municipalities to replace former state payments in lieu of taxes on manufacturing equipment, with specific grant amounts listed for each town and fire district.

Appropriates approximately $18.7 billion from the General Fund and $1.26 billion from the Special Transportation Fund for fiscal years 2011-2012 and 2012-2013, covering all state agencies including $4.6 billion for Medicaid, $1.89 billion for education equalization grants, and $1.89 billion for debt service.

Delays scheduled New Haven Line commuter rail fare increases by two years (first increase moved from January 2010 to January 2012), eliminates the dedicated New Haven Line revitalization account, abolishes the Connecticut Transportation Strategy Board, and revises numerous transportation governance statutes.

Implements new tax provisions including a 50-cent-per-cigar cap on tobacco product taxes, adjusts the sales tax bracket system for a 6.35% rate, conforms nonadmitted insurance premium taxes to the federal Nonadmitted and Reinsurance Reform Act of 2010 with a 4% tax rate, and expands the property tax exemption for manufacturing machinery and equipment effective for assessment years beginning October 1, 2011.

Overhauls nonresident contractor tax compliance requirements effective October 1, 2011, creating a "verified contractor" system with bonding and withholding obligations, and includes $355.2 million in deficiency appropriations for the fiscal year ending June 30, 2011, primarily for Medicaid ($256 million) and the Department of Mental Health and Addiction Services ($57.25 million).