CT SB01239

Appropriates approximately $18.35 billion (FY2012) and $18.78 billion (FY2013) from the General Fund, and $1.30 billion (FY2012) and $1.33 billion (FY2013) from the Special Transportation Fund, with $1 billion per year in anticipated labor-management savings built into both years' budgets.

Raises significant new revenue by increasing the sales tax from 6% to 6.35%, adding a 7% luxury tax on motor vehicles over $50,000, vessels over $100,000, jewelry over $5,000, and clothing/footwear over $1,000, expanding taxable services (cosmetic procedures, spa/nail services, pet grooming, livery transport, etc.), increasing hotel occupancy tax from 12% to 15%, and raising cigarette tax from 150 to 170 mills per cigarette.

Creates a new graduated personal income tax structure with six brackets (3%, 5%, 5.5%, 6%, 6.5%, and 6.7%) effective for taxable years beginning January 1, 2011, lowers the estate tax exemption from $3.5 million to $2 million, imposes a 20% corporate tax surcharge on companies with gross income over $100 million, and establishes a new 30% state earned income tax credit.

Establishes new revenue sources including a hospital tax at 4.6% of net patient revenue, an intermediate care facility user fee, a temporary electricity generation tax of 0.25 cents per kilowatt hour (through June 30, 2013), increased alcoholic beverage taxes by approximately 20%, higher real estate conveyance taxes, and increased DMV fees across multiple categories.

Creates a municipal revenue sharing account funded by portions of sales tax and real estate conveyance tax revenue and a regional performance incentive account funded by portions of hotel occupancy and car rental taxes, while maintaining $1.89 billion in Education Equalization Grants at flat funding for both fiscal years.