Proposed Bill No. 35, introduced by Senator Looney of the 11th District, aims to amend Title 12 of the general statutes to implement a capital gains surcharge. This surcharge would apply to the net gain from the sale or exchange of capital assets for taxpayers whose Connecticut adjusted gross income meets or exceeds the threshold for the highest and second highest marginal tax rates, as specified in section 12-700 of the general statutes. The proposed surcharge rates are one percent and seventy-five-hundredths percent, respectively.

The revenue generated from this surcharge would be allocated with seventy-five percent going to the General Fund and the remaining twenty-five percent to the Special Transportation Fund. The purpose of this bill is to establish a new source of revenue for these funds through a capital gains surcharge on certain taxpayers.