Seal of the State of Connecticut

Appendix A

Existing General Fund Tax Reduction Commitments
Fiscal Years 1998 to 2002 (in millions)
Public
Act #
(using FY 1996-97 as the base)
Tax Description
FY 98FY 99 FY 00FY 01FY 02
Personal Income Tax
94-4 Phase in credit for motor vehicle
property tax, beginning with
1997 income year
(38.8) (84.5)(134.1)(185.8)(241.3)
95-160Reduce rate from 4.5% to 3%:
Joint  Head of household  Single

$9,000        $7,000      $4,500

Rate change effective 7/1/96
(14.0) (15.6)(15.6)(15.6)(15.6)
95-160Up to $100 credit for Personal
or Real Property tax for state
residents, effective with 10/1/95
Grand List
(11.9)(11.9)(11.9)(11.9)(11.9)
Subtotal Personal Income Tax(64.7)(112.0) (161.6)(213.3)(268.8)
Sales Tax
94-4 &
95-160
Phase out tax on computer &
data processing services
beginning 7/97
(4.2)(8.3)(12.5)(16.7)(20.8)
94-4 &
95-160
Various exemptions postponed
from 7/1/96 to 7/1/97
(7.4)(7.4)(7.4)(7.4)(7.4)
96-160Various exemptions, effect. 7/97(4.5)(4.5)(4.5)(4.5)(4.5)
96-232Vessel repair & maintenance
phase out
(1.1)(2.3)(3.5)(3.5)(3.5)
Subtotal Sales Tax(17.2)(22.5)(27.9)(32.1)(36.2)
Corporation Tax
93-74,
95-160
Rate Reductions(26.2)(78.7)(129.4)(129.4)(129.4)
93-267New limited liability corporate
status
(5.0)(5.0)(5.0)(5.0)(5.0)
93-74
& 94-4
Reduce interest on
underpayments
(2.2)(3.4)(4.6)(4.6)(4.6)
96-175S-corp net income phase out (3.0)(7.0)(11.0)(16.0)(22.0)
93-433Research / development credit* (23.0)(4.0)(4.0)(1.3)(13.3)
92-193
&93-74
Job training credit phase in(0.8)(1.6)(2.4)(2.4)(2.4)
93-382
94-4
95-160
96-144
Capital goods credit for small
and medium-sized firms,
effective for 1997 income year
(0.4)(2.6)(3.3)(3.3)(3.3)
94-4 &
95-160
Clean Air Act credit - 1997
income year
(0.5)(1.5)(1.5)(1.5)
94-4Credit for Property Tax paid on
data processing equipment on
10/94 grand list*
(9.8)(10.9)(12.1)(13.2)(13.2)
Subtotal Corporation Tax (70.4)(113.7)(173.3)(176.7)(194.7)
Inheritance Tax
95-298Phase out beginning 1/1/97(43.6)(65.7)(103.6)(124.3) (154.0)
Public Service
Companies Tax
93-74
93-332
Phase out tax on manufacturing
utilities
(5.4)(5.4)(5.4)(5.4)(5.4)
94-4 &
95-160
Exempt private water
companies effective 7/1/97
(8.0)(8.0)(8.0)(8.0)(8.0)
94-4
95-160
96-144
Credit for property tax paid on
data processing equipment on
10/94 grand list*
(1.2)(1.2)(1.2)(1.2)(1.2)
96-205Phase out on steam(0.1)(0.3)(0.4)(0.6)(0.8)
Subtotal Public Service
Company Tax
(14.7)(14.9)(15.0)(15.2) (15.4)
Insurance Premiums
Tax
94-4
95-160
96-144
Credit for Property Tax paid on
data processing equipment on
10/94 grand list*
(8.1) (8.1)(8.1) (8.1) (8.1)
Miscellaneous
94-4
95-160
96-160
Repeal tax on motor vehicle
tires effective 7/1/97
(4.0) (4.0)(4.0)(4.0)(4.0)
Hospital Gross Receipts
Tax
96-144Decrease 11% rate to 9.25 in
10/96; 8.25% in 10/97; 7.25%
in10/98; and 6.25% in 10/99
(23.5)(43.0)(63.0)(68.0) (68.0)
Total General Fund
Revenue Reduction
(246.2)(383.9)(556.5)(641.7)(749.2)
Source: Connecticut General Assembly, Office of Fiscal Analysis (November 1996).
Footnotes
*OFA notes that data from the Department of Revenue Services may change the estimated fiscal impact for these items.


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