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More Taxes and Laws Ring in the New Fiscal Year

Here's a look at interesting, consequential and polarizing acts slated to go into effect on July 1

They were a busy bunch in Hartford.

During the five-month long 2011 legislative session, the state's General Assembly passed a wide range of bills; some were fiscal in nature, others will set social policy. With the first Democratic governor in 20 years and a Democratic majority in the state house, it proved to be one of the busiest sessions in recent years. Lawmakers enacted the largest tax increase in the state’s history.

Some of the headline-grabbing laws won’t actually go into effect until Oct. 1 at the earliest. Here Patch takes a look at the interesting, consequential and polarizing acts slated to go into effect on July 1.

Biggest Impact

The Budget The General Assembly passed a $40.1 billion budget. It involves $1.4 billion in tax increases, about $800 million in cuts, and $1.6 billion in union concessions. But the unions nixed the deal and a special session was called for next week so the state can approve a budget by the start of fiscal year on July 1.

Sales and Use Taxes. People will soon face a myriad of new and increased taxes. Here they are in no particular order:

  • The general sales and use tax rate increases from 6 to 6.35 percent
  • The room occupancy tax increases from 12 to 15 percent
  • The tax on renting or leasing of a car for 30 days or less increases to 9.35 percent
  • Luxury tax of 7 percent for cars more than $50,000, boats more than $100,000, jewelry more than $5,000, clothing or footwear, handbag, luggage, umbrella, wallet or watch more than $1,000.
  • Valet parking provided at any airport
  • Yoga instruction provided at a yoga studio
  • Motor vehicle storage services
  • Packing and crating services
  • Motor vehicle towing and road services; livery services
  • Pet grooming, pet boarding services, and pet obedience services
  • Services in connection with a cosmetic medical procedure
  • Manicure services, pedicure services and all other nail services; spa services.
  • Clothing and footwear under $50
  • Nonprescription drugs and medicines, and smoking cessation products; and
  • Cloth or fabric for noncommercial sewing, and yarn for noncommercial use.

Diesel Tax At 46 cent, Connecticut now has the highest diesel tax in the nation. Some worry truckers will tank up at the border, zoom through and leave Connecticut diesel users to foot the bill.

Sin Taxes Cigarette taxes rise to 40 cents a pack, no more than 50 cents a cigar and the alcoholic beverage tax increases by 20 percent.

Interesting

Bosnian Affairs Commission. The commission shall consist of twenty-one members. To focus on ensuring the Bosnian American population of the state is healthy, safe, achieve educational success, are economically self-sufficient, and free from discrimination.

Divesting from Iran. The state treasurer will look at the state’s holdings in companies doing business with Iran and the Sudan and encourage those companies to divest.

Dairy-Aid Legislators made permanent the agricultural sustainability account established in 2009, which supports a grant program for dairy farmers. The same law also makes permanent a $10 increase (from $30 to $40) in the fee people pay when filing documents with town clerks and credits $10 of each fee to the agricultural sustainability account.

Thermal Receipt Ban A ban on Bisphenol-A, or BPA, an ingredient used in thermal receipt paper. So when paying more taxes at the pump know that the receipt coming out of the machine will no longer contain cancer-causing substances.

Paint Stewardship Connecticut is the third state in the nation to require paint manufacturers to safely manage leftover latex and oil-based paint from households and painting contractors. There will be more and better recycling opportunities for architectural paint.

Polarizing

In-State Tuition For Undocumented Immigrants Undocumented immigrants who are residents of Connecticut and graduated from a Connecticut high school are eligible for in-state tuition status. They must file an affidavit with the college stating they are in the process of legalizing their immigration status or their intention to do so as soon as they can apply.

Good behavior This law permits the Department of Correction commissioner to reduce an inmate’s maximum prison sentence and make inmates eligible for early release from prison for good behavior. Only inmates convicted of the following crimes are ineligible for the credits: murder, capital felony, felony murder, arson murder, home invasion, and 1st degree aggravated assault. That means rapists and sex offenders are eligible for the initiative.

Marijuana Possession This de-criminalizes small amounts of adult possession of up to one-half ounce of marijuana. If caught with said amounts it’s a non-criminal infraction, punishable by a fine, no jail, and no criminal record.

No new Hookah lounges. The state is still moving toward a total ban on hookah lounges, but in the meantime it bans new hookah lounges.

Paid Sick Leave Connecticut became the first state in the nation to require paid sick leave to certain private service workers. Employers with 50 or more employees must provide paid sick leave at a rate of one hour per 40 hours worked.

“Amazon” Tax Certain remote sellers, including such online retailers as Amazon.com and Overstock.com, who have no physical presence in Connecticut, must now collect sales tax on their taxable sales in the state. The requirement applies to sellers who pay commissions to people located in Connecticut to refer customers to them.

Public Safety

Cell Phone Fine Increase Using a cell phone or texting while driving just got more expensive. First time offenders will now be fined $125, up from $100; a second offense means an increase from $150 to $250, and for subsequent offenses, from $200 to $400. Anyone caught texting while driving a commercial motor could be disqualified from operating a commercial motor vehicle. But it allows texting from these vehicles in an emergency.

Boating Under the Influence. Friends don’t let friends boat drunk. Effective July 1 a conviction for reckless boating results in the suspension of a person's boating rights. Police can now repeat Breathalyzer tests within 10 minutes rather than 30 minutes.

School Bullying and Cyberbullying This bill specifically bans bullying based on a student's actual or perceived “differentiating” characteristics, such as race, gender, sexual orientation or physical appearance. It also prohibits “cyberbullying,” which is bullying using electronic communications or devices.

Hugh Dolan June 25, 2011 at 09:25 PM
What A sad spectacle ! The country, and the state, in deep, deep economic trouble, and the legislators spend their time passing a phony budget, with built in deficits of over $ 1 Billin, and raise taxes on the overburdened and hard working citizenry . We need an old fashioned July 4 th Revolution-- sending Malloy and his cronies to go stay with Ghadafi! Now, they have the chance to stand tall and tell the truth about the budget, stop just blaming tfe workers, and go through the state and get rid of waste and fraud.
KEVIN DILLON June 26, 2011 at 02:32 AM
Just because lawmakers were busy doesn't equate to good laws. Is the 7% luxury tax on top of the 6.35% sales tax? 13.35% total sales tax? Why would anyone buy in CT? In state tuition for illegal aliens? I read a press release from a state senator that said it would only affect 200 admissions as if the low quantity makes it a better law. That's 200 legal citizens that will have to pay more to go elsewhere. Reducing penalty for marijuana use will only increase use of marijuana. I'm surprised they didn't take the next step and legalize it so they can tax it. You know Ct or Calif will be the first to do that. I admit I had to look up to see what a hookah lounge was. First thought they misspelled hooker. One kudo. School and cyber bullying bill. This is a huge problem. As we have seen in many submissions to this site, people (adults) get awfully brave and downright nasty when they can hide behind a nom de plume. Kids can take it to the next level. All in all, not a very good job by our lawmakers.
Christine Anderson June 28, 2011 at 02:22 PM
Fairfield and Connecticut are in big trouble and all our legislators can due is tax us more and more! Although there are some good additions to the law starting in July, I can't help wonder why we would need a 21-member commission to protect Bosnian immigrants' rights? Really? Isn't that discriminatory? How about all immigrant rights not just Bosnian? I don't get it. Pretty soon us Americans will need a commission to protect us from our so called "leaders".

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