Tuesday, July 12, 2011 at 7:56PM Well I guess Amazon has the right approach to the "Tax The Internet" states. By killing off Amazon's associate program over 25,000 individuals in California were finacially impacted.
California is a state unlike socialist CT where the people can petition to have something put on the ballot bypassing spineless politicians. So a petition has been started to repeal the California tax.
Thursday, July 7, 2011 at 3:55PM CT like many states is having trouble with revenue as the government officials state. However what they really are saying is that they have a spending problem. Time for everyone to pay from the "evil" rich to the handicapped, nursing homes and anyone else that still takes a breath in the state.
CT prior to 1991 had no state income tax. Since 1991 the state government can't seem to get enough of the Tax elixir.
Just a couple of interesting facts about CT:
- CT has one of the highest electric rates in the country.
- CT is the wealthiest states in the US. (This is due to many NYC workers living in CT rather than NY, but not since 1991).
- CT is losing its population per the census figures.
- CT is losing the college graduates to other states.
- CT is also seeing a huge increase in the newly retired moving to other states (Can you say tax free or less)
- CT has become the first state to enact mandated sick days for companies larger than 50 employees.
Our new governor a Democrat, the first one in 21 years and campaigned on bringing business back to CT. The hope how it was so fleeting.
Unlike other states the Governor stated he would not cut government or limit its spending, so that means, yes Tax increases. Here is the list.
Take special note of how CT is open for business's to move here. Businesses are now mandated to provide paid sick time for employees, and also hit them with a 20% surtax.
The "Nexus" tax or really Amazon, EBay tax has backfired as other states that have tried to do the same. Amazon and other internet business's have terminated the Associate programs in CT. A loss of revenue and jobs in CT.
So what CT and other states are trying to say is a presence in the state is if a person has a website like this one, lives in CT and they have an Amazon ad on their website then according to the state Amazon has a nexus in CT and should collect tax on all sales to CT residents. This needs to be challenged and I believe it is in the courts now and probably headed to the Supreme Court. Sales tax was and is for the support of services such as Police and Fire Departments. In other words the things a brick and mortar store needs.
Income Tax: The following income tax changes are effective as of January 1, 2011:
Tax Brackets and Rates: The number of income tax brackets was increased from three to six with the top marginal income tax rate increased to 6.7%. The new income tax rates are 3%; 5%; 5.5%; 6.0%; 6.5% and 6.7%.
Sales and Use Taxes:
Tax Rates: The following tax rates are in effect as of July 1, 2011:
New Taxable Services: Effective July 1, 2011, sales of the following services are taxable:
Exemptions Repealed: Effective July 1, 2011, the following exemptions are repealed:
Remote Affiliates: Expands Connecticut law to provide that an out-of-state retailer will have nexus with Connecticut based on certain arrangements with remote affiliates located in Connecticut. (Internet Tax)
Exemption for equipment installed in motor vehicles for persons with physical disabilities: This exemption was expanded to apply to the portion of the sales price attributable to such equipment when a motor vehicle is resold.
Admissions Tax: Admissions charges for events at the following venues are taxable, effective for admissions charges on and after January 1, 2012:
Corporation Business Tax:
Surtax: A surtax of 20% will apply for income years beginning on or after January 1, 2012 and before January 1, 2014.
Incentive to create new jobs: Allows a taxpayer to use tax credits to offset more than 70 per cent of its corporation business tax liability if the business meets certain job creation criteria.
Excise Taxes:
Cigarette Tax - Rate increase: The cigarette tax rate will increase from $3.00 to $3.40 per pack on July 1, 2011.
Tobacco Products Tax - Rate increases: Effective July 1, 2011, the tax on all tobacco products (other than tobacco snuff products) will increase from 27.5 percent to 50 percent of the wholesale sales price of such products. In the case of cigars, the tax will be 50 percent of the wholesale sales price, not to exceed 50 cents per cigar.
Effective July 1, 2011, the tax on tobacco snuff products will increase from $0.55 per ounce to $1.00 per ounce of snuff.
Effective July 1, 2011, the tax on cigars will be 50 percent of the wholesale sales price, not to exceed 50 cents per cigar.
Alcoholic Beverage Tax - Rate increases: Effective July 1, 2011, the various alcoholic beverages tax rates will increase by 20%.
Miscellaneous Taxes:
Real Estate Conveyance Tax - Rate increases: For deeds, instruments or writings that are currently subject to the state real estate conveyance tax at a rate of 0.5%, the rate is increased to 0.75% effective July 1, 2011.
For deeds, instruments or writings that are currently subject to the state real estate conveyance tax at a rate of 1.0%, the rate is increased to 1.25% effective July 1, 2011.
Estate Tax: For estates of decedents dying on or after January 1, 2011, an estate is subject to the Connecticut estate tax if the amount of the Connecticut taxable estate exceeds $2 million.
Gift Tax: For Connecticut taxable gifts made by a donor during a calendar year commencing on or after January 1, 2011, including the aggregate amount of Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the Connecticut gift tax will be imposed if the amount of Connecticut taxable gifts exceeds $2 million (with a credit allowed against such tax for Connecticut gift tax previously paid for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2011).
New Electric Generation Tax: Effective for calendar quarters commencing July 1, 2011, there is a new electric generation tax that is imposed on every entity that is providing electric generation services and uploading electricity generated at a facility in Connecticut to the regional bulk power grid. The tax is equal to $0.0025 multiplied by the net kilowatt hours of electricity that are generated and uploaded. The tax does not apply to electricity generated and uploaded exclusively through the use of fuel cells, solar, wind, water, or biomass. Note: This tax is scheduled to sunset on July 1, 2013.
New Hospitals Tax: Effective for calendar quarters commencing July 1, 2011, there is a new tax imposed on a hospital’s “net patient revenue.”
New Residential Day User Fee – ICF-MR: Effective for calendar quarters commencing July 1, 2011, there is a new “residential day user fee” on each intermediate care facility for the mentally retarded in this state.
Nursing Home User Fee: Effective for calendar quarters commencing on or after October 1, 2011, the fee is based on the sum of each nursing home’s anticipated nursing home net revenue multiplied by a percentage set by the Department of Social Services, which percentage will not exceed the maximum allowed under federal law.
