Bill Summary: HB 7373

• Imposes a 6.99% tax on partnerships and S corporations (affected business entities) based on their Connecticut-source income, effective July 1, 2019, with members receiving credits for taxes paid.

• Allows affected business entities to file combined returns and elect an alternative tax calculation method based on resident ownership percentages and modified Connecticut-source income.

• Implements quarterly estimated tax payments for entities with annual tax payments of $1,000 or more, with four installments due on the 15th of the 4th, 6th, 9th months and 1st month of the following year.

• Establishes a tax preparer permitting system requiring applicants to meet age, education, and training requirements, with initial fees of $100 and biennial renewals at $50; creates civil penalties of $100 per day for unpermitted preparers.

• Makes numerous procedural and technical changes to tax administration, including extending appeal deadlines from one month to 30 days, modifying penalty waiver thresholds from $1,000 to $5,000, and clarifying withholding tax definitions.