CT SB00421

Allows state contracting agencies to adjust bidders' bids downward by deducting the estimated state income taxes their employees will pay during the contract term, calculated using a 5% assumed income tax rate.

Requires that if a contractor's actual employee payroll is less than projected in the adjusted bid, the state must reduce the contractor's final payment accordingly to reflect the difference in estimated taxes paid.

Mandates annual verification of employees actually employed on the project for contracts lasting more than one year, with payment adjustments made within one year of contract award.

Permits municipalities to establish ordinances requiring preference for supplies, materials, equipment, and services produced, assembled, manufactured, or provided within the state when all other factors are equal.

All provisions effective October 1, 2014.