Conn. Gen. Stat. § 12-219

Current with legislation from 2024 effective through May 11, 2024.

Section 12-219 - Capital base tax. Phase-out. Surcharge

(a)

(1) Each company subject to the provisions of this part shall pay for the privilege of carrying on or doing business within the state, the larger of the tax, if any, imposed by section 12-214 and the tax calculated under this subsection. The tax calculated under this section shall be a tax of (A) three and one-tenth mills per dollar for income years commencing prior to January 1, 2024, (B) two and six-tenths mills per dollar for the income year commencing on or after January 1, 2024, and prior to January 1, 2025, (C) two and one-tenth mills per dollar for the income year commencing on or after January 1, 2025, and prior to January 1, 2026, (D) one and six-tenths mills per dollar for the income year commencing on or after January 1, 2026, and prior to January 1, 2027, (E) one and one-tenth mills per dollar for the income year commencing on or after January 1, 2027, and prior to January 1, 2028, and (F) zero mills per dollar for income years commencing on or after January 1, 2028, of the amount derived (i) by adding (I) the average value of the issued and outstanding capital stock, including treasury stock at par or face value, fractional shares, scrip certificates convertible into shares of stock and amounts received on subscriptions to capital stock, computed on the balances at the beginning and end of the taxable year or period, the average value of surplus and undivided profit computed on the balances at the beginning and end of the taxable year or period, and (II) the average value of all surplus reserves computed on the balances at the beginning and end of the taxable year or period, (ii) by subtracting from the sum so calculated (I) the average value of any deficit carried on the balance sheet computed on the balances at the beginning and end of the taxable year or period, and (II) the average value of any holdings of stock of private corporations including treasury stock shown on the balance sheet computed on the balances at the beginning and end of the taxable year or period, and (iii) by apportioning the remainder so derived between this and other states under the provisions of section 12-219a, provided in no event shall the tax so calculated exceed one million dollars or be less than two hundred fifty dollars.

(2) For purposes of this subsection, in the case of a new domestic company, the balances at the beginning of its first fiscal year or period shall be the balances immediately after its organization or immediately after it commences business operations, whichever is earlier; and in the case of a foreign company, the balances at the beginning of its first fiscal year or period in which it becomes liable for the filing of a return in this state shall be the balances as established at the beginning of the fiscal year or period for tax purposes. In the case of a domestic company dissolving or limiting its existence, the balances at the end of the fiscal year or period shall be the balances immediately prior to the final distribution of all its assets; and in the case of a foreign company filing a certificate of withdrawal, the balances at the end of the fiscal year or period shall be the balances immediately prior to the withdrawal of all of its assets. When a taxpayer has carried on or had the right to carry on business within the state for eleven months or less of the income year, the tax calculated under this subsection shall be reduced in proportion to the fractional part of the year during which business was carried on by such taxpayer. The tax calculated under this subsection shall, in no case, be less than two hundred fifty dollars for each income year. The taxpayer shall report the items set forth in this subsection at the amounts at which such items appear upon its books; provided, when, in the opinion of the Commissioner of Revenue Services, the books of the taxpayer do not disclose a reasonable valuation of such items, the commissioner may require any additional information which may be necessary for a reasonable determination of the tax calculated under this subsection and shall, on the basis of the best information available, calculate such tax and notify the taxpayer thereof.

(3) No tax credit allowed against the tax imposed by this chapter shall reduce a company's tax calculated under this subsection to an amount less than two hundred fifty dollars.

(b)

(1) With respect to income years commencing on or after January 1, 2006, and prior to January 1, 2007, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to twenty per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(2)

(A) With respect to income years commencing on or after January 1, 2009, and prior to January 1, 2012, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to ten per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(B) Any company whose gross income for the income year was less than one hundred million dollars shall not be subject to the additional tax imposed under subparagraph (A) of this subdivision. This exception shall not apply to companies filing a combined return for the income year under section 12-223a or a unitary return under subsection (d) of section 12-218d.

(3)

(A) With respect to income years commencing on or after January 1, 2012, and prior to January 1, 2018, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to twenty per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(B) Any company whose gross income for the income year was less than one hundred million dollars shall not be subject to the additional tax imposed under subparagraph (A) of this subdivision. With respect to income years commencing on or after January 1, 2012, and prior to January 1, 2016, this exception shall not apply to companies filing a combined return for the income year under section 12-223a or a unitary return under subsection (d) of section 12-218d. With respect to income years commencing on or after January 1, 2016, and prior to January 1, 2018, this exception shall not apply to taxable members of a combined group that files a combined unitary tax return.

(4)

(A) With respect to income years commencing on or after January 1, 2018, and prior to January 1, 2026, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to ten per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(c) The tax imposed by this section shall be assessed and collected and be first applicable at the time or times herein provided for the tax measured by net income. This section shall not apply to insurance companies, real estate investment trusts, regulated investment companies, interlocal risk management agencies formed pursuant to chapter 113a or, except as otherwise provided by subsection (d) of this section, financial service companies, as defined in section 12-218b.

(d) Each financial service company, as defined in section 12-218b, shall pay for the privilege of carrying on or doing business within the state, the larger of the tax, if any, imposed by section 12-214 and the tax calculated under this subsection. For each such financial service company, the tax calculated under this subsection shall be two hundred fifty dollars for each income year. No tax credit allowed against the tax imposed by this chapter shall reduce a financial service company's tax calculated under this subsection to an amount less than two hundred fifty dollars.

(e) The additional tax base of taxable and nontaxable members of a combined group required to file a combined unitary tax return pursuant to section 12-222 shall be calculated as provided in subsection (f) of section 12-218e.

Conn. Gen. Stat. § 12-219

(1949 Rev., S. 1900; 1951, 1953, June, 1955, S. 1096d; 1957, P.A. 560, S. 2; 649, S. 2; 1959, P.A. 394, S. 2; 1961, P.A. 428, S. 3; 604, S. 3; 1963, P.A. 141; February, 1965, P.A. 461, S. 8; June, 1969, P.A. 1, S. 15; 1971, P.A. 683, S. 2; June, 1971, P.A. 5, S. 112; 1972, P.A. 126, S. 1; 285, S. 7; P.A. 73-350, S. 11, 27; P.A. 75-213, S. 2, 53; P.A. 77-614, S. 139, 610; P.A. 78-121, S. 106, 113; P.A. 80-483, S. 56, 186; P.A. 81-66, S. 2, 5; 81-255, S. 22, 37; 81-411, S. 8, 42; Nov. Sp. Sess. P.A. 81-4, S. 30, 32; P.A. 82-325, S. 3, 7; P.A. 84-546, S. 32, 33, 173; P.A. 85-159, S. 2, 19; 85-469, S. 4, 6; P.A. 86-124, S. 1, 2; 86-132; 86-403, S. 131, 132; P.A. 89-16, S. 2, 31; 89-251, S. 21, 203; P.A. 90-174, S. 1, 3; June Sp. Sess. P.A. 91-3 , S. 101 , 168 ; P.A. 93-74 , S. 8 , 59 , 67 ; May Sp. Sess. P.A. 94-4 , S. 7 , 85 ; P.A. 95-160 , S. 64 , 69 ; P.A. 96-197 , S. 6 , 11 ; P.A. 98-110 , S. 19 , 27 ; May 9 Sp. Sess. P.A. 02-1 , S. 57 ; P.A. 03-2 , S. 34 ; June 30 Sp. Sess. P.A. 03-1, S. 88; P.A. 05-251 , S. 63 ; P.A. 06-186 , S. 67 ; June Sp. Sess. P.A. 09-3 , S. 102 ; P.A. 11-6 , S. 79 ; P.A. 13-184 , S. 74 ; P.A. 15-244 , S. 84 , 153 ; June Sp. Sess. P.A. 15-5 , S. 139 , 141 .)

Amended by P.A. 23-0204, S. 348 of the Connecticut Acts of the 2023 Regular Session, eff. 6/12/2023, app. to income years commencing on or after January 1, 2023.

Amended by P.A. 22-0110, S. 13 of the Connecticut Acts of the 2022 Regular Session, eff. 10/1/2022.

Amended by P.A. 21-0002, S. 424 of the Connecticut Acts of the 2021 Special Session, eff. 6/23/2021.

Amended by P.A. 21-0002, S. 423 of the Connecticut Acts of the 2021 Special Session, eff. 6/23/2021.

Amended by P.A. 19-0117, SS. 340 of the Connecticut Acts of the 2019 Regular Session, 342 of the Connecticut Acts of the 2019 Regular Session eff. 6/26/2019, op. for taxable years commencing on or after January 1, 2019.

Amended by P.A. 15-0005, S. 141 of the Connecticut Acts of the 2015 Special Session, eff. 1/1/2016.

Amended by P.A. 15-0244, S. 153 of the Connecticut Acts of the 2015 Regular Session, eff. 1/1/2016.

Amended by P.A. 15-0244, S. 84 of the Connecticut Acts of the 2015 Regular Session, eff. 1/1/2016.

Amended by P.A. 15-0005, S. 139 of the Connecticut Acts of the 2015 Special Session, eff. 6/30/2015.

Under former statute, indebtedness did not include indebtedness on which company not personally liable. 122 C. 143 . Cited. Id., 550; 135 Conn. 57 ; 178 C. 240 ; 195 C. 284 ; 203 Conn. 198 ; 220 Conn. 665 . Cited. 2 Conn.App. 660 . Cited. 40 Conn.Supp. 77 .