CT SB01244

Establishes a municipal revenue sharing account funded by sales tax revenues, replacing prior manufacturing machinery tax reimbursement programs (sections 12-94b, 12-94c, 12-94f, 12-94g repealed), and specifies individual grant amounts totaling $50,271,099 for municipalities and fire districts across Connecticut.

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, and provides $355.2 million in deficiency appropriations for fiscal year 2010-2011 including $277 million for the Department of Social Services (primarily Medicaid).

Delays scheduled New Haven Line rail fare increases by two years (first increase moved from January 2010 to January 2012), eliminates the New Haven Line revitalization account, abolishes the Connecticut Transportation Strategy Board, and redirects vessel registration fee revenue and petroleum tax transfers to the Special Transportation Fund.

Implements nonadmitted insurance premium tax reforms to comply with the federal Nonadmitted and Reinsurance Reform Act of 2010 (Dodd-Frank), establishing a 4% tax on surplus lines and independently procured insurance based on the insured's home state, with provisions for interstate cooperative agreements.

Makes numerous tax administration changes effective July 1, 2011, including expanding the property tax exemption for manufacturing machinery and equipment (removing the prior five-year limit), capping the cigar tax at 50 cents per cigar, revising sales tax brackets, modifying corporation business tax credit caps, and overhauling nonresident contractor withholding requirements for construction projects.