CT SB01218

Creates new authority for the Commissioner of Revenue Services to enter memoranda of understanding with state agencies to deny license issuance (grants, renewals, amendments) to applicants with unpaid state taxes, limited to three agreements per fiscal year, effective July 1, 2011.

Modifies tax refund withholding procedures to allow the Commissioner to withhold refunds for unpaid taxes owed to other states, with notice and hearing rights for taxpayers to protest withholding.

Expands Connecticut's corporation business tax to include companies with substantial economic presence in the state (evidenced by purposeful business direction) regardless of physical presence, and exempts foreign corporations without US trade or business income, effective for tax years beginning January 1, 2011.

Revises employer and payer withholding tax remittance schedules based on tax liability thresholds ($2,000-$10,000 for monthly; over $10,000 for weekly remitters) and adds successor liability provisions requiring purchasers of businesses to withhold purchase price for unpaid employer withholding taxes, effective July 1, 2011.

Exempts special equipment installed in motor vehicles for persons with physical disabilities from sales and use tax, and extends statute of limitations for deficiency assessments to six years when income omissions exceed 25% of reported income, effective from passage.