SB 946 Summary

• Establishes new progressive income tax brackets for Connecticut residents effective January 1, 2015, with rates ranging from 3.0% to 6.99% and adds a 2.0% capital gains tax on high-income earners exceeding $500,000-$1,000,000 depending on filing status.

• Increases sales and use taxes by splitting the rate into a state revenue tax (5.85% effective October 1, 2015, then 5.35% effective July 1, 2016) and a municipal revenue tax (0.5%), with the municipal portion deposited into a new municipal revenue sharing account.

• Implements combined unitary tax reporting for corporations effective January 1, 2015, requiring related business entities under common ownership to file consolidated returns and share apportionment factors and operating loss carryovers.

• Establishes the Budget Reserve Fund and Restricted Grants Fund with automatic deposit formulas tied to revenue thresholds, allowing transfers to the General Fund during projected deficits and requiring deposits to the State Employees Retirement Fund.

• Increases professional licensing fees by $5 for healthcare practitioners (physicians, dentists, nurses, etc.) effective July 1, 2015, with revenues directed to a new professional assistance program account.