CT SB01214

Establishes definitions for nonresident contractors, resident contractors, verified contractors, and unverified contractors, with verified status requiring three years of tax registration, filed returns, and no outstanding tax liabilities.

Requires unverified prime or general contractors to post a bond with the Department of Revenue Services equal to 5% of the contract price to secure payment of sales, use, and income tax withholding obligations.

Mandates that prime or general contractors (whether resident or verified) hold back 5% of payments to unverified subcontractors until the subcontractor obtains a certificate of compliance from the commissioner.

Allows subcontractors to request a certificate of compliance upon project completion, which the commissioner must issue or be deemed to issue within 120 days, potentially authorizing full or partial release of withheld amounts.

Exempts contracts with a total project price below $250,000 from these requirements and effective October 1, 2011.