Raised Bill No. 7270 introduces significant amendments to Connecticut's tax laws, focusing on the procedures for filing tax protests, penalties for unpaid taxes, and the treatment of various income sources. Effective October 1, 2025, taxpayers must submit a detailed protest form to the Commissioner of Revenue Services, including essential information about the tax issue being contested. The bill mandates that taxpayers actively pursue their protests by providing necessary documentation, with a ten-day window to submit any missing information after being notified by the commissioner. Additionally, the bill establishes a timeline for the commissioner to respond to protests and allows for appeals to the Superior Court for dismissals of invalid or abandoned protests. It also repeals and replaces Section 12-206 regarding penalties for unpaid taxes, introducing a one percent monthly interest on due amounts and clarifying that no taxpayer can be penalized under multiple subsections for the same tax period.

Moreover, the bill modifies the treatment of pension and annuity income, allowing for phased tax deductions based on income levels, and introduces new provisions for various tax credits and deductions, including those related to marijuana businesses and student loan reimbursements. It also updates the language throughout the statutes to ensure gender neutrality and simplifies the process for taxpayers to contest actions taken by the commissioner. The bill aims to enhance transparency, streamline tax administration processes, and provide tax relief to lower and middle-income individuals and families. Overall, Raised Bill No. 7270 seeks to clarify and modernize tax procedures while ensuring fair treatment for taxpayers.

Statutes affected:
Raised Bill: 12-206, 12-225, 12-226, 12-236, 12-268i, 12-311, 12-330l, 12-418, 12-447, 12-461, 12-553, 12-595, 12-729, 12-701