Connecticut DRS Annual Report, FY 2024-25

CT DRS

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Connecticut DRS Annual Report, FY 2024-25

CT DRS

Published January 1st, 2026

Detected April 20th, 2026

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Summary

The Connecticut Department of Revenue Services published its FY 2024-25 Annual Report summarizing tax collections and revenue data for the fiscal year. The report covers various Connecticut tax categories including income tax, corporation business tax, sales and use taxes, and other state revenue sources. The report also discusses agency initiatives including expanded webinar outreach, a new eAssistant chatbot providing 24/7 taxpayer support via the myconneCT portal, and the state's first-ever tax gap report produced in partnership with the legislature.

Published by CT DRS on portal.ct.gov . Detected, standardized, and enriched by GovPing. Review our methodology and editorial standards .

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What changed

The Connecticut Department of Revenue Services issued its FY 2024-25 Annual Report providing a comprehensive overview of state tax and fee collections. The report documents revenue across more than 30 tax categories and highlights agency operational developments including expanded in-person and webinar outreach to taxpayers and the launch of a new eAssistant chatbot for the myconneCT portal.

Taxpayers and tax professionals operating in Connecticut may find the report useful for understanding state revenue priorities and accessing agency resources. The report does not create new compliance obligations but serves as an informational reference on Connecticut's tax administration activities and initiatives for the fiscal year.

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Apr 20, 2026

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FY 24-25 Annual Report

Department of Revenue Services Commissioner's Office

A MESSAGE FROM COMMISSIONER MARK D. BOUGHTON January 2026

I'm pleased to present the Annual Report of Taxes and Fees collected by the Connecticut Department of Revenue Services (DRS) during the 2024-25 fiscal year. Our report provides a comprehensive overview of the revenue DRS collected, thanks to the tireless efforts of our dedicated staff. Our agency reached significant milestones this year as we focused on our most important mission: Achieving the highest level of taxpayer compliance and contributing to Connecticut's fiscal and economic well-being. Our Education and Outreach team continues to set the bar higher with a singular goal in mind: Meeting Connecticut taxpayers where they are. We've expanded upon our popular webinar series and served thousands of residents in the process. Additionally, we've expanded our in- person outreach to libraries and senior centers. We encourage folks to reach out to us if you'd like our expertise in your community. Email DRS.EducationandOutreach@ct.gov to set up a visit. Technology is at the forefront of what we do, and we're proud to offer the very best in customer service via our myconneCT portal. This year, we launched our new eAssistant, which provides 24/7 support for taxpayers to get quick answers to their questions. Accessing information from a database, the eAssistant provides step-by-step instructions on topics like obtaining the status of a refund, how to file state tax returns, and how to make tax payments. It's another example of our commitment to outstanding customer service. Our agency is guided by data-driven decisions. That's why I'm proud of our partnership with the state legislature to produce several reports that we hope will help guide lawmakers in crafting state tax policy. During the past fiscal year, these reports include the state's first-ever tax gap report as well as our recommendations to mitigate the tax gap. Both documents are available on our Statutory Reports page. I hope the information contained in the Annual Report is helpful and informative. Should anyone have questions regarding the report, my staff and I are ready to assist.

Sincerely,

Mark D. Boughton Commissioner, Connecticut Department of Revenue Services

Mark D. Boughton, Commissioner 450 Columbus Blvd Hartford, CT 06103

OUR MISSION

The mission of the Department of Revenue Services is to instill public confidence in the integrity and fairness of tax collection; achieve the highest level of voluntary taxpayer compliance; continuously improve agency performance; contribute to the fiscal and economic well-being of the state; and provide a positive and professional workplace.

CONNECTICUT'S TAXES AND FEES

The Department of Revenue Services collected nearly $26.5 billion in state taxes for Fiscal Year 2024-25. The Personal Income, Pass-Through Entity, Sales and Use, and Corporation Business Taxes comprised 87% of all collections.

Fiscal Year 2024-25 Revenue Sources

$3.5B All Other Taxes$2.1B Pass-Through Entity $13.0B$1.4B Personal IncomeCorporation Business $6.5B

Page | 2

STATE REVENUE SOURCES

Alcoholic Beverages Tax Ch. 220 $80,247,957 $78,859,552 75,798,785 Ambulatory Surgical Centers Ch. 211a (repealed) 0 -215 0 Attorney Occupational Tax Ch. 876 9,322,121 8,691,039 9,408,518 Beverage Container Deposits Ch. 446d 52,584,520 42,981,924 28,281,453 Business Entity Tax Ch. 213a (repealed) 888,379 -686,027 -6,863,524 Cable, Satellite & Video Companies Tax Ch. 211 49,226,215 35,555,237 29,731,253 Cannabis Tax, Ch. 214c 4,675,642 20,509,089 22,657,073 Cigarette Tax Ch. 214 268,003,557 233,208,865 217,810,398 Composite Income Tax 0 0 236,051,560 Controlled Substances Tax Ch. 228d 916 -354 0 Controlling Interest Transfer Tax Ch. 228b 9,595,329 15,551,088 6,602,565 Corporation Business Tax Ch. 208 1,519,011,011 1,551,647,724 1,399,096,398 and Air Carriers Tax Ch. 209 Dry Cleaning Surcharge Ch. 211b 542,984 546,278 589,332 Dues Tax Ch. 225 45,959,625 45,649,753 50,978,634 and Transportation Network Company Fee Ch.

244b

Electric Distribution Companies Ch. 212 149,579,820 237,946,264 234,557,976 Electronic Cigarette Products Ch. 214b 6,181,983 5,702,326 5,209,995 Estate and Gift Tax Ch. 217& 228c 218,354,438 129,550,468 146,122,810 Gas Companies Ch. 212 90,207,200 72,970,332 80,215,019 Gift Tax Ch. 228c (repealed) 41,392 457,202 37,692 Health Care Centers Tax Ch. 207 3,401,206 2,249,237 1,635,982 Health Care Provider Taxes and Fees Ch. 211c 900,978,299 881,494,425 909,887,730 Highway Use Fee Ch. 222a 29,275,901 60,283,621 59,939,588 Income Tax Ch. 229 11,231,163,886 11,803,356,423 12,963,280,642 Insurance Premiums Tax, Domestic Ch. 207 47,897,022 49,320,976 56,206,379 206,160,474 Insurance Premiums Tax, Foreign Ch. 207 192,717,482 189,473,363 Insurance: Non-admitted/Unauthorized Ch. 698d 10,288,462 11,925,688 10,975,608 Motor Carrier Road Tax - Ch. 222 9,893,330 8,263,239 8,453,068 Motor Vehicle Fuels Tax - Gasoline Ch. 221 118,263,374 362,800,019 362,876,371 Motor Vehicle Fuels Tax - Special Fuel Ch. 221 135,366,064 133,879,214 142,847,638 Paid Preparer Fee Ch. 229 92,159 76,294 96,841 Pass-Through Entity Ch. 228z 2,049,126,696 1,964,823,852 2,130,746,893 298,009,821 Petroleum Products Gross Earnings Tax Ch. 227 392,055,527 358,582,031 2,976,381 2,679,283 3,286,853 Prepaid Wireless E-9-1-1 Fee Ch. 518a Public, Educ. & Gov. Programming Tax Ch. 289 2,825,522 2,573,751 3,074,297 Railroad Companies Tax Ch. 210 474,393 494,799 384,952 Real Estate Conveyance Tax Ch. 223 277,596,745 269,009,703 290,364,995

Page | 3

STATE REVENUE SOURCES (cont.)

Rental Surcharge Ch. 228h 453,287 382,496 494,903 Sales and Use Taxes Ch. 219 6,139,326,121 6,427,034,943 6,484,159,445 Solid Waste Tax Ch. 446d 4,165,274 1,677,334 -110,298 Succession Tax Ch. 216 (repealed) 180,247 6,224 60,988 Tobacco Products Tax Ch. 214a 17,963,925 14,258,719 12,023,595 Tourism Surcharge Ch. 228e 4,630,454 5,037,691 5,272,771 Unrelated Business Income Tax Ch. 208a 5,032,297 3,017,641 4,124,637

Total $24,072,815,242 $25,033,415,914 $26,496,717,606

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ALCOHOLIC BEVERAGES TAX Chapter 220

A tax is imposed on all distributors of alcoholic beverages on the sale of alcoholic beverages within Connecticut. Distributors must report the total number of gallons of each alcoholic beverage sold during the month, the opening and closing inventories and the amount of tax due. Sales of alcoholic beverages are also subject to the Sales and Use Tax. See Alcoholic Beverage Tax Information on the

Alcoholic Beverages Tax

$82,000,000 $80,247,957 $80,000,000 $78,859,552 $78,000,000 $75,798,785$76,000,000Revenue

$74,000,000 $72,000,000

**The tax rate for beer is reduced by 50% for beer sold for off-premises consumption on the premises of an entity covered by a manufacturer's permit.*

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$2.71 per gallon Liquor Coolers $7.92 per barrel 20¢ per gallon $1.98 per gallon Cider Small Wineries Sparkling Wines $6.00 per barrel (31 gallons) 20¢ per gallon* 26¢ per gallon 79¢ per gallon $5.94 per proof gallon $5.94 per gallon Beer Beer Cider Still Wines Alcohol Distilled Liquor Effective July 1, 2023

ALCOHOLIC BEVERAGES TAX (cont.)

1,135 distributors / Monthly Comparison of Gallonage

Page | 6 Alcoholic Beverage Liquor Coolers 2,438,700 2,887,555 2,055,689 (gallons) (gallons) (gallons) Cider - gallons Distilled Liquor 8,460,602 8,173,516 8,605,491 538,284 558,144 565,515 Beer - gallons Cider - barrels Still Wine Small Wineries Sparkling Wine Alcohol 41,969,162 10,863,047 39,834,175 10,287,939 45,118,983 11,387,945 297,451 850,409 291,603 850,006 73,628 92,207 271,968 891,348 4,684 2,519 81,886 4,230 Beer - barrels 141,315 133,904 142,946 Type of

ATTORNEY OCCUPATIONAL TAX Chapter 876

An occupational tax is levied against any person who has been admitted as an attorney by the judges of the superior court, and who is engaged in the practice of law in Connecticut. See Attorney Occupational Tax Information on the DRS website.

Attorney Occupational Tax

$11,000,000 $9,408,518 $9,322,121$9,500,000 $8,691,039 $8,000,000 $6,500,000

Revenue

$3,500,000

$565 per practicing attorney.

14,001 Attorneys / Annually

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BEVERAGE CONTAINER DEPOSITS Chapter 446d

In Connecticut, deposit initiators - including certain distributors and manufacturers - are responsible for collecting a refundable deposit on each beverage container sold within the state under the Connecticut Bottle Bill. For more information on the state bottle bill, see the Bottle Bill FAQ on the DEEP website. Deposit initiators must maintain a special bank account to hold the collected deposits. After refunds are issued to customers and any applicable bank fees are deducted, the remaining balance is considered the unclaimed deposit amount. Each deposit initiator is required to file a quarterly report and remit a portion of the unclaimed deposit amount to the state.

Beverage Container Deposits

$60,500,000 $52,584,520 $54,000,000 $47,500,000 $42,981,924 $41,000,000 $34,500,000Revenue $28,281,453

$28,000,000 $21,500,000 $15,000,000

Effective January 1, 2024, Conn. Gen. Stat. § 22a-244 increased the beverage container deposit amount from 5¢ to 10¢. For the fiscal year ending June 30, 2025, deposit initiators were required to remit 50% of the outstanding account balance to the state.

199 Entities / Quarterly

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CANNABIS TAX Chapter 214c

Conn. Gen. Stat. § 12-330ll established a state cannabis tax structured around the amount of THC per milligram of certain products. The statewide cannabis tax is paid by the consumers at cannabis retailers, hybrid retailers, or micro-cultivators and applies to the retail sale of cannabis plant materials, cannabis edible products, and other cannabis products. Additionally, each Connecticut municipality is responsible for collecting a 3% municipal cannabis tax on the gross receipts from the sale. Retail sales of cannabis are subject to the Sales and Use Tax. See Cannabis Tax Information on the

Cannabis Tax

$26,000,000 $22,657,073 $20,509,089 $21,000,000 $16,000,000 $11,000,000Revenue

$4,675,642

The statewide Cannabis Tax rates imposed on each cannabis retailer:

Cannabis Plant Materials: $0.00625 per milligram of total THC, as reflected on the product
label;
Cannabis Edible Products: $0.0275 per milligram of total THC, as reflected on the product
label; and
All Other Cannabis Products, not including cannabis plant material or cannabis edible
products: $0.009 per milligram of total THC, as reflected on the product label.

Page | 9

CANNABIS TAX (cont.)

68 taxpayers / Monthly

Fiscal Year Cannabis Tax Liability

Tax from Plant Tax from Edible Tax from Other Materials Products Cannabis Products $11,639,108 $3,099,604 $7,875,183 10,196,806 2,321,305 6,132,412 3,716,959 615,340 1,711,227

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CIGARETTE TAX Chapter 214

An excise tax is imposed on all cigarettes sold in Connecticut. Payment is indicated by affixing stamps or heat-applied decals to each pack of cigarettes, which are sold to licensed dealers and distributors. Sales of cigarettes are subject to the Sales and Use Tax. For more information on the Cigarette Tax, see the Cigarette Stamp Reports on the DRS website.

Cigarette Tax

$275,000,000 $268,003,557 $260,000,000 $245,000,000 $233,208,865 $230,000,000Revenue $217,810,398

$215,000,000

217.5 mills per cigarette or $4.35 per pack of twenty.

16 taxpayers / Monthly

Note: The tax is reduced by 50% for any product the Secretary of the United States Department

of Health and Human Services determines to be a "modified risk tobacco product" pursuant to 21 U.S.C. § 387k. No modified risk tobacco products were sold during Fiscal Year 2024-25.

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CONTROLLING INTEREST TRANSFER TAX Chapter 228b

A tax is imposed on the transfer of a controlling interest in a corporation, partnership, association, trust or other entity, where an entity owns an interest, directly or indirectly, in Connecticut real property with a value of at least $2,000. In a corporation, "controlling interest" means more than 50% of the combined voting power of all classes of stock in the corporation. For all other entities, "controlling interest" is an amount greater than 50% of the capital, profits, or beneficial interest in that entity. See Controlling Interest Tax Information on the DRS website.

Controlling Interest Transfer Tax

$18,000,000 $15,551,088 $14,000,000 $9,595,329$10,000,000

Revenue $6,602,565

1.11% of the present true and actual value of the interest in the real property possessed on

sales or transfers of a controlling interest. An additional tax may be levied, varying between 1% and 10%, on the value of open space land, farmland, forestland, and maritime heritage land, depending on the year in which the controlling interest was transferred.

Filing Frequency / Number of Taxpayers

The month following the month in which the transfer was made. 55 transfers in FY 2024-25.

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CORPORATION BUSINESS TAX Chapter 208

A corporation carrying on or doing business in Connecticut is subject to the Corporation Business Tax. Most corporations in Connecticut must file returns and pay corporation business tax although some corporations are exempt. Corporations must calculate their tax under two alternate methods and remit the higher tax. If a corporation owes less than $250 under both methods, it pays the minimum tax of $250. See Corporation Business Tax Information on the DRS website.

Corporation Business Tax

$1,600,000,000 $1,551,647,724$1,550,000,000 $1,519,011,011 $1,500,000,000 $1,450,000,000 $1,399,096,398Revenue $1,400,000,000

$1,350,000,000 $1,300,000,000

Net Income Base Method

The method under which most Corporation Business Tax revenue is derived is the net income base. Corporations compute their Connecticut net income by starting with federal taxable income and then applying the adjustments allowed or required by Connecticut. For Connecticut net income purposes, corporations must add back certain items deducted in arriving at federal taxable income, such as:

Exempt interest income;
State and local income taxes;
Royalties or interest paid to a related member; and
Bonus depreciation.

Certain other deductions are then allowed, such as:

Certain dividends;
Capital loss carryovers not deducted in computing federal gain; and
Deferred cancellation of debt income. Page | 13

Companies that conduct business in multiple states are allowed to apportion their net income based upon the percentage of their sales made in Connecticut. Market-based sourcing rules consider sales of services and most intangible property to be made where the customer is located. Special apportionment rules are provided for certain industries such as financial service companies and broadcasters. Apportioned net operating losses may be carried forward for 30 successive income years. The carryforward period for such losses had been extended from twenty (20) years to thirty (30) years, beginning in 2025. The net operating loss deduction may not exceed 50% of the taxpayer's net income. Connecticut net income is taxed at the rate of 7.5%. Capital Base Method Corporations must also compute their tax under the capital base method. The capital base is the total value of the average capital stock, surplus and undivided profits, and surplus reserves, less the average values of deficits and stockholdings in private corporations. Multi-state corporations multiply their capital base by an apportionment fraction. The capital base is taxed at a rate of 3.1 mils ($0.0031) per dollar. Under the capital base method, a corporation is limited to a maximum tax of $1,000,000. Financial service companies are excluded from the capital base method but are subject to the minimum tax. For income years beginning in 2024, the capital base tax rate is reduced from .0031 to .0026. Corporations are subject to tax on the greater of the net income base method or the capital base method calculations.

If a corporation's calculation of the tax is less than $250 under both two previous methods, it pays a minimum tax, which is currently $250. The majority of corporations pay the minimum tax. Surtax For income years 2018 through 2025, corporations, other than those paying the minimum tax of $250, pay a surtax in an amount equal to 10% of the tax due before credits are applied. Corporations whose gross income is less than $100 million are exempt from the surtax unless they file as part of a combined unitary return. The total amount of surtax reported on income year 2023 returns was $125 million.

Page | 14

Combined Unitary Reporting

Commonly owned corporations that are engaged in a unitary business, where at least one corporation is subject to the Corporation Business Tax, are required to file their Corporation Business Tax returns on a combined unitary basis. Under combined unitary filing, a combined group's tax liability, prior to surtax and credits, cannot exceed the amount calculated on a nexus combined basis by more than $2,500,000. This is referred to as the aggregate maximum tax. If the aggregate maximum tax is less than the tax on the standard combined unitary basis, the group is subject to the aggregate maximum tax. Otherwise, the group is subject to tax on the standard combined unitary basis.

Exemptions

For exemptions, see Corporation Business Tax Information, Exempt Entities, on the DRS website.

Pass-Through Entity Tax Credit

Members of a Pass-Through Entity (PE) were entitled to a credit based upon their respective shares of the PE's tax liability. A corporate member could claim the PE Tax Credit against the Corporation Business tax. For taxable years that began on or after January 1, 2019, the PE Tax Credit is 87.5% of the member's share of the PE Tax. Beginning on or after January 1, 2024, the credit against the corporation business tax for pass-through entity tax paid by an entity on behalf of a corporate member was eliminated.

Overpayments Applied to Estimated Tax Liability

Corporations that overpaid their corporation business tax in 2023 elected either to receive a refund or to apply a portion of the overpayment toward their 2024 estimated tax liability. In total, $841,367,300 was carried forward to 2024 estimated tax.

Page | 15

Filing Frequency Annually with four estimated installments.

Number of Taxpayers

Number of Tax Due Before Pass- Returns Credits Through Credits Single Filers Net Income 8,288 $167,259,703 $6,273,579 $8,952,736 $152,033,388 Capital Base 3,815 31,759,650 5,097,420 1,101,040 25,561,190 18,571 4,642,567 0 72,382 4,570,435 Exempt 3,657 0 0 0 0 Combined Unitary Net Income 3,788 8,406,018 1,115,962,689 155,683,787 951,872,884 Minimum Base 4,434 2,103,384 74,263,287 19,557,870 52,602,033 Aggregate Max. 16 116,112,363 21,667,078 921,234 93,524,051 Total 42,624 $1,510,000,259 $208,279,734 $21,556,794 $1,280,163,981

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Number Tax Due Pass- of Before Tax Credits Through Taxable Credits Returns Credits 11 Agric. Forestry, 126 $1,076,529 $214,038 $8,801 $853,690 Fishing & Hunting 21 Mining 32 143,202 22,277 0 120,925 22 Utilities 90 8,841,469 3,218,898 40,673 5,581,898 23 Construction 2,080 14,980,051 626,599 73,382 14,280,070 31-333,357 237,778,011 49,630,551 1,752,711 186,394,749 Manufacturing 42 Wholesale 2,400 100,171,661 4,237,714 386,732 95,547,215 Trade 44-45 Retail Trade 2,944 162,381,503 15,564,458 967,494 145,849,551 48-49 Transporting 612 16,476,741 2,983,437 23,677 13,469,627 and Warehousing 51 Information 1,731 92,594,770 19,058,692 1,320,389 72,215,689 52 Finance and 2,158 262,579,783 26,464,728 2,859,036 233,256,019 Insurance 53 Real Estate and 1,623 24,786,686 1,436,908 457,941 22,891,837 Rental & Leasing 54 Professional, 5,954 121,697,085 17,285,085 1,131,772 103,280,228 Scientific and Tech 55 Management of Companies & 1,199 205,166,280 30,514,208 4,248,448 170,403,624 Enterprises 56 Administrative & 1,031 19,666,857 774,782 280,737 18,611,338 Support 61-62 Education, Health Care and 1,245 11,790,658 3,351,250 79,856 8,359,552 Social Assistance 71 Arts, Entertain., 353 1,125,604 69,968 20,553 1,035,333 and Recreation 72 Accom. & Food 893 8,734,562 156,635 144,783 8,433,144 Services 81-92 Other1,774 9,445,904 824,961 202,199 8,418,744 Services 99 Not Yet 9,310 210,562,903 31,844,545 7,557,610 171,160,748 Assigned Total 38,912 $1,510,000,259 $208,279,734 $21,556,794 $1,280,163,981 Page | 17

Pass-Number Tax Due Business Through Tax Due Before Credits of Before Tax Returns Credits Credits

Page | 18

Exempt $250 or less $251 to $999 $1000 to $24,999 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1M to $2 million $2M to $5 million $5 million and over 2,322,816 1,362,143 2,368,692 3,536,164 3,058,077 2,550,004 4,259,283 1,027,446 10,841,638 14,446,909 29,331,685 39,575,833 99,913,653 20,245 103,194,480 121,628,884 145,996,117 195,392,371 287,529,394 497,775,945 107,729,169 128,999,204 161,801,403 246,926,115 396,958,994 3,712 5,738 9,582 1,999,763 1,091 2,075,668 2,876,307 7,168,314 56,570,168 38,972,982 54,624,618 903,298 52,247,589 35,535,171 49,379,619 92,490,002 5,058,999 73,830 3,256,301 94,791 4,985,169 3,111,546 49,964 $0 $0 $0 $0 1,510,000,259 21,556,794 208,279,734 1,280,163,981 42,624 Total

CORPORATION BUSINESS TAX CREDITS

Connecticut offers many Corporation Business Tax credits, which a corporation may take advantage of to reduce its liability to the state. For a listing of the tax credits available under the Corporation Business Tax, see the Corporation Tax Credit Guide on the DRS website. The table below shows the number and amount of corporation tax credits claimed by businesses. The figures represent credit claimed on 2023 returns and any credits carried forward from prior years and used in 2023.

Tax Credits Claimed on 2023 Corporation Business Returns

Type of Credit Number of Amount Credits Claimed Apprenticeship Training 10 $173,614 Donation of Land 3 27,292 Electronic Data Processing 1,108 11,850,058 Film Production 36 61,138,052 Film Production Infrastructure 2 6,872,806 Fixed Capital Investments 1,367 57,173,701 Historic Structures Rehabilitation 2 4,723,832 Human Capital Investments 86 4,325,874 Machinery and Equipment 36 986,334 Manufacturing Facility in Targeted 6 324,859 Investment Community or Enterprise Zone Neighborhood Assistance 34 1,682,566 Research & Development 385 13,246,087 Research & Experimental Expenditures 364 39,036,427 Urban and Industrial Site Reinvestment 7 6,385,250 Undetermined 332,982 Total 3,446 $208,279,734

Page | 19

CORPORATION BUSINESS TAX CREDITS (cont.)

The table below shows the unused credit amounts reported on 2023 corporation business tax returns as being carried forward to the 2024 income year.

Credits Carried Forward to 2024 Income Year

Carryforward Amount Donation of Land $1,916,721 Electronic Data Processing 57,984,019 Fixed Capital Investments 478,914,023 Historic Preservation 122 Historic Rehabilitation 444,378 Housing Program Contribution 13,984 Human Capital Investments 11,397,547 Research & Development 1,914,171,504 Research & Experimental Expenditures 614,257,761 Urban and Industrial Site Reinvestment 18,969,864 Total Carryforward Credits $3,098,069,923

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DRY CLEANING ESTABLISHMENT SURCHARGE Chapter 211b

The Dry Cleaning Establishment Surcharge is used to provide grants to dry cleaning establishments for the containment and removal or mitigation of environmental pollution resulting from dry cleaning activity. Revenue is deposited into the Dry Cleaning Remediation Account, which is used to provide these grants and fund other measures undertaken to prevent pollution. See Dry Cleaning Establishment Surcharge Information on the DRS website.

Dry Cleaning Establishment Surcharge

$600,000 $589,332 $585,000 $570,000 $555,000 $546,278 $542,984

Revenue $540,000

$525,000 $510,000

1% of gross receipts at retail.

223 taxpayers / Quarterly

Page | 21

DUES TAX Chapter 225

A 10% Dues Tax applies to social, athletic, or sporting clubs in the state that impose initiation fees or membership dues. See Dues Tax Information on the DRS website.

Dues Tax

$52,000,000 $50,978,634

$48,000,000 $45,959,625 $45,649,753$46,000,000Revenue*

$44,000,000 $42,000,000

Includes revenue from the Transportation Network Company Fee. 10% of membership dues or initiation fees to social, athletic, or sporting club organizations.

341 taxpayers / Monthly

Page | 22

ELECTRONIC CIGARETTE PRODUCTS TAX Chapter 214b

A tax is imposed on electronic cigarette liquid and electronic cigarette products. Electronic cigarette liquid refers to any liquid that, when used in electronic nicotine delivery system or vapor product, produces a vapor containing nicotine that is inhaled by the user. Electronic cigarette products include electronic nicotine delivery systems, liquid nicotine containers, vapor products, and electronic liquids. This tax went into effect on October 1, 2019. See Electronic Cigarette Tax Information on the DRS website.

Electronic Cigarette Products Tax

$6,500,000 $6,181,983$6,250,000 $5,702,326$5,750,000 $5,500,000 $5,209,995$5,250,000Revenue

$4,750,000 $4,500,000

The tax is imposed on the first sale or use in Connecticut of any electronic cigarette product at a rate of either:

$0.40 per milliliter of the electronic cigarette liquid contained within an electronic cigarette
product that is prefilled, sealed by the manufacturer, and not intended to be refillable; or
10% of the wholesale sales price of any other electronic cigarette product.
223 distributors / Monthly

Page | 23

ELECTRONIC CIGARETTE PRODUCTS TAX (cont.)

Fiscal Year Electronic Cigarette Products Tax Liability Tax Collected at $0.40 per Tax Collected at 10% of Milliliter of the E-Cig Liquid the Wholesale Sales Price

FY 2024-25 $3,849,629 $708,955 FY 2023-24 3,857,303 907,112 FY 2022-23 4,824,750 1,340,795

Page | 24

ESTATE AND GIFT TAX Chapter 217 & Chapter 228c

Resident and nonresident estates of decedents dying during 2025 are liable for the Connecticut Estate Tax on the amount of the Connecticut taxable estate that exceeds the federal basic exclusion amount. Taxpayers are required to file a Connecticut Estate and Gift Tax return to report all Connecticut taxable gifts, even if no Connecticut gift tax is due. See Estate and Gift Tax Information on the DRS website. The maximum amount of tax paid by the estates of decedents who die on or after January 1, 2019, is $15 million. This payment cap also applies to the gift tax amount paid by donors who make taxable gifts on or after January 1, 2019. The payment cap is reduced by the amount of any gift taxes paid on taxable gifts made on or after January 1, 2016.

Estate and Gift Tax

$218,354,438 $210,000,000 $170,000,000 $146,122,810 $129,550,468$130,000,000Revenue

$90,000,000

For gifts made, or the estates of decedents dying on or after January 1, 2023, the Estate and Gift tax is 12% of the excess over the federal basic exclusion amount. In 2025, the federal basic exclusion amount was $13.99 million.

Page | 25

ESTATE AND GIFT TAX (cont.)

Detail of Revenue

For Fiscal Year 2024-25, total Estate and Gift Tax revenue collected was $146,122,810. Much of this revenue is attributable to prepayments that apply against upcoming tax returns. A breakdown of returns from estates received during Fiscal Year 2024-25 follows, as well as a breakdown of Calendar Year 2024 estate tax returns received to date.

ESTATE AND GIFT TAX RETURNS FROM ESTATES OF DECEDENTS RECEIVED DURING FY 2024-25 Number of Tax Due Returns After Credits *

$10 Million 38 $98,722 $98,722 $10 Million $15 Million 25 1,291,113 1,158,638 $15 Million $25 Million 30 16,500,684 14,485,558 $25 Million 31 111,031,280 93,853,728

124 $128,921,799 $109,596,646 Total

ESTATE AND GIFT TAX RETURNS FROM ESTATES OF DECEDENTS RECEIVED FOR CALENDAR YEAR 2024

$10 Million 27 $0 $0 $10 Million $15 Million 14 680,379 566,459 $15 Million $25 Million 23 13,665,260 12,351,768 $25 Million 24 137,587,122 98,871,815

88 $151,932,761 $111,790,042 Total

Reflects credits for real or tangible personal property located in other jurisdictions and prior gift tax payments.

Page | 26 Number of Tax Due Not Over Tax Due More Than More Than Not Over Tax Due After Credits * Returns Amount of Taxable Estate Amount of Taxable Estate

ESTATE AND GIFT TAX (cont.)

For Fiscal Year 2024-25, an additional amount of the estate and gift tax was attributable to gift tax returns filed by non-decedents. A breakdown of Calendar Year 2024 gift tax returns received to date is shown below.

ESTATE AND GIFT TAX RETURNS 2024 GIFT TAX ONLY Amount of 2024 Taxable Gifts Number of More Than Not Over Tax Due Returns $3 Million 115 $93,488 $3 Million $4 Million 47 0 $4 Million 193 3,709,666 355 $3,803,154 Total

Page | 27

HEALTHCARE PROVIDER FEES Chapter 211c

There are three components to the healthcare provider fees established under Chapter 211c of the Connecticut General Statutes. They include the hospital user fee, intermediate care facility, and nursing home user fees. Each of the three provider types are outlined below.

Healthcare Provider Taxes and Fees

$930,000,000 $909,887,730 $900,978,299 $900,000,000 $881,494,425

Revenue $870,000,000

$840,000,000

HOSPITALS A quarterly user fee is imposed on each hospital's net revenue for the provision of inpatient hospital services and for the provision of outpatient hospital services.

The effective user fee rate on inpatient hospital services is 6% and the effective user fee rate on outpatient hospital services is 11.0976%.

25 Taxpayers / Quarterly

Page | 28

HEALTHCARE PROVIDER FEES (cont.)

INTERMEDIATE CARE FACILITY USER FEE An intermediate care user fee is established on each residential facility for individuals with intellectual disabilities that meet certain federal requirements, and, in the case of a private facility, is licensed by the Department of Developmental Services.

The intermediate care facility user fee is $27.76. The amount due from each facility is determined by multiplying the user fee by the facility's resident days for the calendar quarter.

66 Taxpayers / Quarterly

NURSING HOME USER FEE A nursing home user fee is established on each chronic and convalescent nursing home or rest home with nursing supervision that is licensed as a nursing home by the Connecticut Department of Public Health.

The user fee is $16.13 for municipally owned facilities and facilities with over 230 beds and $21.02 for all other nursing homes. The amount due from each nursing home is determined by multiplying the appropriate user fee by the home's resident days for the calendar quarter.

184 Taxpayers / Quarterly

Page | 29

HIGHWAY USE FEE Chapter 222a

The Highway Use Fee is imposed on certain carriers for the privilege of operating, or causing to be operated, heavy multi-unit motor vehicles on any highway (i.e., public road) in Connecticut. The fee is calculated based on the weight of the eligible motor vehicle and the number of miles driven in Connecticut. See Highway Use Fee Information on the DRS website.

Highway Use Fee

$68,500,000 $60,283,621 $59,939,588 $57,500,000 $46,500,000 $35,500,000 $29,275,901

Revenue $24,500,000

$13,500,000 $2,500,000

A per-mile fee rate is based on the carrier's gross weight, ranging from 2.5 cents per mile for vehicles weighing 26,000-28,000 pounds (lbs.) to 17.5 cents per mile for vehicles weighing more than 80,000 lbs.

Number of Taxpayers

28,641/Total 2,632/In-State 26,008/Out-of-State

Page | 30

INCOME TAX Chapter 229

Connecticut imposes a tax on income earned by resident individuals, trusts, and estates. Nonresidents and part-year resident individuals, trusts, and estates are also subject to the tax on income derived from or connected with sources within the State. See Income Tax Information on the DRS website.

$13,500,000,000 $12,963,280,642 $13,000,000,000 $12,500,000,000 $11,803,356,423$12,000,000,000 $11,231,163,886$11,500,000,000

Revenue $11,000,000,000

$10,500,000,000 $10,000,000,000

2 million taxpayers / Annually Taxpayers who expect to owe more than $1,000 in income tax, in addition to income tax withheld, are required to file four estimated tax payments by the 15 of the month (April, June, th September & January).

Connecticut Earned Income Tax Credit

The Connecticut Earned Income Tax Credit is a refundable state income tax credit for low to moderate income working individuals and families. The state credit mirrors the federal Earned Income Tax Credit. See CT Earned Income Tax Credit on the DRS website for more information.

Page | 31

INCOME TAX (cont.)

Earned Income Tax Credit Year Number of Credits Amount of Credit EITC Rate

2022 184,135 $129,698,137 30.5% 2023 191,209 190,103,143 40% 2024 193,283 195,066,537 40%

Credit for Pass-Through Entity Taxes Paid

A member in a Pass-Through Entity (PE) is entitled to a credit equal to 87.5% of the member's direct and indirect share of the PE's tax liability.

Personal Income Tax Credits

2023 Personal Income Tax Credits Credits Carried Forward to Credit Number of Credits Amount of

$2,686,652 Angel Investor 269 $5,203,261 475,174 Insurance Reinvestment Fund 37 65,904 Prior Year CT Alternative 3,002,110 214 1,571,331 Birth of Stillborn Child 148 231,026

Total 668 $7,071,522 $6,163,936

Page | 32

Pass-Through Entity Tax Credit $1,238,665,684 1,138,421,488 1,337,824,675 Amount of Credit Year 2024 Tax Year Credit Claimed

INSURANCE PREMIUMS TAX Chapter 207

Insurance companies, domestic and foreign, are taxed in Connecticut on the total net direct premiums received from policies written on property or risks within the State. Total net direct subscriber charges received on any new or renewal contract or policy by a health care center are also taxed. The State also imposes a tax on premiums for unauthorized insurance. Specifically, insureds who procure non-admitted insurance are required to remit tax on premiums paid to a non-admitted insurer. Additionally, risk retention groups are required to pay tax on premiums collected on coverages within the State. Captive insurance companies are also subject to tax. These are created and wholly owned by one or more non-insurance companies to insure the risks of its owners as a type of self-insurance. See Insurance Premiums Tax Information on the DRS website.

Insurance Premiums Tax

$274,978,443$254,304,172$252,969,264

$150,000,000Revenue

1.5% of net direct premiums by domestic and foreign insurance companies;
Captive insurance companies are subject to an annual tax between $7,500 and $200,000;
4% of gross premiums charged by non-admitted and unauthorized insurers; and
1.5% of net direct subscriber charges of health care centers. Page | 33

INSURANCE PREMIUMS TAX (cont.)

1,392 Insurance Companies / Annually with four estimated payments 92 Domestic Companies 1,104 Foreign Companies 12 Health Care Centers 22 Non-admitted Insurers 115 Risk Retention Groups 47 Captive Insurers

Comparative Data - Revenue

Domestic $47,897,022 $49,320,976 $56,206,379 Foreign 192,717,482 189,473,363 206,160,474 Health Care Center 3,401,206 2,249,237 1,635,982 Non-admitted/ 10,288,462 11,925,688 10,975,608 Unauthorized/Captive

Total $254,304,172 $252,969,264 $274,978,443

Calendar Year 2023 Insurance Tax Credits Type of Credit Number of Amount of Credit Credits Claimed Electronic Data Processing 65 $9,904,012 Insurance Department Assessment 10 441,905 Insurance Reinvestment 29 11,680,261 Second Insurance Reinvestment 73 21,293,504 Neighborhood Assistance 18 978,094 Urban & Industrial Site Reinvestment 10 451,486 Film Production 67 57,130,556 Film Production Infrastructure 1 590,245 Historic Rehabilitation 0 0 CIGA Assessment 337 3,393,706 CLHIGA Assessment 157 263,101 Total Credits 767 $106,126,870

Page | 34

MOTOR CARRIER ROAD TAX Chapter 222

Connecticut has participated in the International Fuel Tax Agreement (IFTA) since 1996. IFTA is a cooperative agreement among most states and provinces of Canada that simplifies how interstate motor carriers report and pay fuel use taxes. This allows interstate motor carriers to file one quarterly report with their home state, which then distributes the fuel tax owed to each state based on the miles driven in each state. See Motor Carrier Road Tax Information and IFTA Information on the

Motor Carrier Road Tax

$12,000,000 $9,893,330$10,000,000 $8,453,068 $8,263,239 $8,000,000

Revenue $4,000,000

Rate per Gallon

Gasohol 25¢ Diesel Fuel 7/1/24 through 6/30/25* 52.4¢ Natural Gas or Propane 26¢

∗ Each fiscal year the Department is required to calculate the new diesel fuel rate using the

average wholesale price per gallon of diesel fuel for the 12-month period ending on the preceding March 31 , as determined by statute. st

3,121 IFTA filers / Quarterly 2,570 Intrastate Motor Carriers / Annual

Page | 35

MOTOR VEHICLE FUELS TAX Chapter 221

Motor fuel used or sold in Connecticut is subject to the Motor Vehicle Fuels Tax. "Fuel" includes gasoline, diesel, gasohol, propane, or any combustible gas or liquid that generates the power needed to propel a motor vehicle. See Motor Vehicle Fuels Tax Information on the DRS website.

Motor Vehicle Fuels Tax

$600,000,000 $505,724,009 $496,679,233$500,000,000 $400,000,000 $253,629,438Revenue

Rate per Gallon

Aviation Fuel 7/1/25 through 6/30/29 15¢ Gasohol 25¢ Diesel Fuel 7/1/24 through 6/30/25 52.4¢ Natural Gas or Propane 26¢

Each fiscal year, the Department is required to calculate the new diesel fuel rate using the
average wholesale price per gallon of diesel fuel for the 12-month period ending on the preceding March 31 , as determined by statute. st
Aviation Fuel Tax: A new tax on companies that distribute aviation fuel in Connecticut will be
in effect for the quarterly periods commencing on or after July 1, 2025, and prior to July 1, 2029. The tax is imposed on the first sale of aviation fuel at the rate of 15 cents per gallon.

638 taxpayers / Monthly

Page | 36

MOTOR VEHICLE FUELS TAX (cont.)

(gallons) (gallons) (gallons)

Gasohol 995,792,393 1,451,235,949 1,445,968,645 Gas Tax Holiday 494,187,906 Alternative Fuels 3,603,704 3,983,070 3,770,089**

Total Gallons 1,765,008,647 1,723,028,726 1,715,471,248

Gallons reported under Special Fuel primarily contain diesel fuel, however, there are minimal amounts of Natural Gas and Propane reported under this category. ** Alternative fuels consist of Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and Liquefied Petroleum Gas (Propane).

Page | 37

Special Fuel* 271,424,644 267,809,707 265,732,514

PAID PREPARER FEE Chapter 229

The Connecticut General Assembly enacted a comprehensive law which established professional practice standards for all tax preparers and facilitators. In addition, any person that prepares federal or state personal income tax returns for a fee or other consideration, and is not expressly exempt, must have a permit. The permit must be renewed every two years. See Preparer Fee Information on the DRS website.

Paid Preparer Fee

$120,000 $96,841$100,000 $92,159 $76,294$80,000 $60,000Revenue

$40,000 $20,000

All tax preparers who are not exempt are required to have a permit. The initial application fee is $100. The permit expires after two years. The renewal fee is $50.

Exempt Preparers

Attorneys;
Certified Public Accountants;
Enrolled Agents;
IRS qualified volunteer tax preparers participating in either a Volunteer Income Tax

Assistance (VITA) or Tax Counseling for the Elderly (TCE) program;

Employee of an attorney preparing tax returns under the supervision of the attorney;
Employee of a local, state or federal governmental agency preparing returns in the
performance of official duties;
Employee of, or assistant to, a tax preparer or person exempted from the permit
requirements, in the performance of official duties for such tax preparer or exempt person;
Fiduciary acting on behalf of an estate; and
Individuals employed, full-time or part-time, to act as a tax preparer solely for the
business purposes of such individual's employer.

Page | 38

PASS-THROUGH ENTITY TAX Chapter 228z

Recent legislation made the Pass-Through Entity tax optional, effective January 1, 2024, and applicable to taxable years commencing on and after that date. Any entity that elects to pay such tax must give the Commissioner of Revenue Services written notice for each tax year it makes the election and must do so no later than the due date (or extended due date) for filing the return. See Pass-Through Entity Tax Information on the DRS website.

Pass-Through Entity Tax

$2,150,000,000 $2,130,746,893 $2,100,000,000 $2,049,126,696$2,050,000,000 $2,000,000,000 $1,964,823,852

Revenue $1,950,000,000

$1,900,000,000 $1,850,000,000

Effective for taxable years commencing on or after January 1, 2024, any entity electing to pay the Pass-Through Entity tax must calculate the portion of the entity's Connecticut source income from its own activities that flows through to members who are chapter 229 taxpayers (income tax) plus the portion of the entity's income that flows through to members who are Connecticut residents and that is not sourced to any state. The tax rate of 6.99% is applied to the base to determine the amount of tax due.

141,480 taxpayers / Annually with four estimated installments.

Page | 39

PASS-THROUGH ENTITY (cont.)

Composite Personal Income Tax

Pass-through entities can remit composite income tax in connection with the PE's taxable year on behalf of each of its members who are nonresident individuals. Pass-through entities remitted $19,765,937 in Personal Income tax in Tax Year 2023. For taxable years that begin on or after January 1, 2024, legislation requires that the pass- through entity file an income tax return and pay the tax on behalf of any nonresident member for whom the business is the only source of Connecticut income.

Detail of Revenue 2023 Pass-Through Entity Tax Returns Number of Tax Due Returns Tax Due

Zero 78,616 $0 $1 to $999 15,220 5,974,381 $1000 to $24,999 38,576 265,342,525 $25,000 to $49,999 4,211 147,626,827 $50,000 to $99,999 2,368 165,602,817 $100,000 to $249,999 1,560 236,660,641 $250,000 to $499,999 469 162,036,594 $500,000 to $999,999 247 175,011,328 $1 million to $2 million 129 178,438,829 $2 million to $3 million 37 91,092,765 $3 million to $4 million 15 50,178,089 $4 million and over 32 212,097,332

Total 141,480 $1,690,062,128

Business Tax Credits Tax Credits Claimed on 2023 Pass-Through Entity Returns Number of Amount Credits Claimed

Apprenticeship Training 9 $799,924

Page | 40

PETROLEUM PRODUCTS GROSS EARNINGS TAX Chapter 227

A tax is levied on the gross earnings from the first sale of companies distributing petroleum products in Connecticut. Petroleum products include but are not limited to gasoline, kerosene, diesel fuel, number 2 heating oil, greases, lubricants, mineral oils, and motor oil. See Petroleum Products Gross Earnings Tax Information on the DRS website.

Petroleum Products Gross Earnings Tax

$450,000,000 $392,055,527$400,000,000 $358,582,031 $350,000,000 $298,009,821

Revenue

$150,000,000

8.1%

609 taxpayers / Quarterly

Cap on Petroleum Products Gross Earnings Tax

The petroleum products gross earnings tax has a $3.00 per gallon cap on which the tax is calculated for the first sale for gasoline and gasohol. Petroleum products distributors are required to calculate the tax at $3.00 per gallon even if the price exceeds said amount and any consideration received by the distributor in excess of $3.00 is exempt from tax.

Page | 41

PREPAID WIRELESS E 9-1-1 FEE Chapter 518a

A Prepaid Wireless E 9-1-1 Fee is levied on each sale of prepaid wireless telecommunications service by a retailer. The fee is determined each June for the upcoming fiscal year by the Connecticut Public Utility Regulatory Authority (PURA). All monies collected are deposited in the Enhanced 9-1-1 Telecommunications Fund. Retailers may retain 1% of the Prepaid Wireless E 9-1-1 Fees they collect. See Prepaid Wireless E 9-1-1 Fee Information on the DRS website.

Prepaid Wireless E 9-1-1 Fee

$3,286,853$3,500,000 $2,976,381$3,000,000$2,679,283 $2,500,000

$1,500,000

Revenue

$500,000 $0

$0.69 for sales made on or after July 1, 2025. $0.73 for sales made between July 1, 2024, and June 30, 2025.

225 Retailers 206 / Monthly 19 / Quarterly

Page | 42

PUBLIC SERVICE COMPANIES TAX Chapters 210, 211, 212, 212a

There are four statutory components to the public service companies taxes under Chapters 210, 211, 212, and 212a of the Connecticut General Statutes. Included under these tax chapters are: Gas Companies, Electric & Power Distribution Companies, Municipal Electric Utilities, Community Antenna TV & Certified Competitive Video Provider, Satellite TV Companies and Railroad Companies taxes. See Gross Earnings Tax Information, on the DRS website.

Public Service Companies Tax

$370,500,000 $347,963,497 $349,540,382$351,000,000 $331,500,000 $312,000,000 $292,313,151Revenue $292,500,000

$273,000,000 $253,500,000

Community Antenna TV* 5.25%

Gas sales to residential customers 4% Electric Distribution Companies & 6.8% for residential Municipal Electric Utilities customers 8.5% for nonresidential customers (other than manufacturers)

Certified Competitive Video Ser vice Providers, Community Antenna TV, and Satellite TV service providers are subject to an additional 0.25% tax for a total tax rate equal to 5.25%. The additional tax is used to fund the Public, Educational and Governmental Programming and Education Technology Investment Account.

Page | 43

Satellite TV* 5.25% Certified Competitive Video Service Provider* Railroad 5.25% 2 - 3.5% 5%

PUBLIC SERVICE COMPANIES TAX (cont.)

100 Taxpayers 59 Public Utility Companies / Quarterly 16 Community Antenna TV & Certified Competitive Video Provider Companies / Quarterly 15 Satellite TV Companies / Quarterly 10 Railroad Companies / Annually (July 1)

Residential Credit

Companies claimed $8,526,876 in Fiscal Year 2024-25 under the one-percent credit attributable to the sale of gas and electric power for residential use.

Manufacturing Companies Credit

$8,698,797 was claimed in credit for gas used directly by companies engaged in a manufacturing production process during Fiscal Year 2024-25.

Cable, Satellite & Video $49,226,215 $35,555,237 $29,731,253

2,825,522 2,573,751 3,074,297 Public, Educational & Governmental Programming Tax* Railroad Companies 474,393 494,799 384,952

**Additional tax on cable, satellite and video for deposit in the public, educational and governmental programming and education technology investment account.*

Page | 44

80,215,019 90,207,200 72,970,332 Electric & Power Companies 234,557,976 149,579,820 237,946,264 $349,540,382 Total Tax $347,963,497 $292,313,151

PUBLIC SERVICE COMPANIES TAX (cont.)

Fiscal Year 2024-25 Public Service Companies Tax Credits

Electronic Data Processing 3 $1,010,587 Neighborhood Assistance 9 1,089,066 Historic Homes Rehabilitation 4 2,712,153 Historic Rehabilitation 3 3,594,498 Historic Structures Rehabilitation 1 1,945,406 Urban & Industrial Site Reinvestment

Page | 45

7,400,000

Total Tax Credits $27,751,709Housing Program Contribution 10,000,000 Amount of Credit Claimed Number of Credits

REAL ESTATE CONVEYANCE TAX Chapter 223

Connecticut imposes a tax on the conveyance of real property. The tax is assessed on the full purchase price of the property and is determined by the classification of the property being conveyed. Payment of the tax is the responsibility of the seller of the property and must be paid before the deed can be recorded. See Real Estate Conveyance Tax Information on the DRS website.

Real Estate Conveyance Tax

$340,000,000 $290,364,995 $277,596,745 $269,009,703 $260,000,000

Revenue $180,000,000

Conveyances made on or after July 1, 2020:

Classification Rate

Nonresidential property other than Unimproved Land 1.25% Residential Dwelling:

Portion between $800,000 and $2.5 million 1.25%

Residential Property other than Residential Dwelling 0.75%

Page | 46

Delinquent Mortgage 0.75% Unimproved Land Portion that exceeds $2.5 million Portion $800,000 or less 0.75% 0.75% 2.25%

Fiscal Year 2024-25 Conveyances

Amount of Taxable Non-Taxable Exempt

Under $2,000 0 28,288 4,224 0 $2,000 to $29,999 887 0 42 124,978 $30,000 to $39,999 232 0 * 62,546 $40,000 to $49,999 271 0 * 93,868 $50,000 to $59,999 301 0 * 123,756 $60,000 to $69,999 312 0 * 152,994 $70,000 to $79,999 302 0 10 175,368 $80,000 to $89,999 314 0 * 204,020 $90,000 to $99,999 290 0 * 210,716 $100,000 to $109,999 405 0 11 333,622 $110,000 to $119,999 325 0 * 285,768 $120,000 to $129,999 443 0 * 431,171 $130,000 to $139,999 397 0 * 403,469 $140,000 to $149,999 401 0 12 435,004 $150,000 to $159,999 565 0 12 667,642 $160,000 to $169,999 468 0 20 590,137 $170,000 to $179,999 553 0 18 740,190 $180,000 to $189,999 608 0 19 848,858 $190,000 to $199,999 570 0 15 837,003 $200,000 to $249,999 3,724 0 79 6,330,599 $250,000 to $299,999 4,915 0 91 10,174,273 $300,000 to $399,999 10,525 0 115 27,479,221 $400,000 to $499,999 7,295 0 52 24,431,966 $500,000 to $599,999 4,491 0 33 18,573,034 Note that conveyances for no considerat ion or consideration of less than $2,000 are non-taxable.

Page | 47 Number of Number of Number of Tax Due

Fiscal Year 2024-25 Conveyances

Amount of Tax Due Taxable Non-Taxable Exempt

$600,000 to $699,999 3,006 0 17 14,745,568 $700,000 to $799,999 1,997 0 15 11,391,670 $800,000 to $899,999 1,313 0 * 8,902,575 $900,000 to $999,999 874 0 * 6,989,309 $1,000,000 to $1,099,999 489 0 * 4,480,385 $1,100,000 to $1,199,999 511 0 * 5,330,218 $1,200,000 to $1,299,999 467 0 * 5,422,388 $1,300,000 to $1,399,999 347 0 * 4,473,767 $1,400,000 to $1,499,999 267 0 * 3,765,700 $1,500,000 to $1,999,999 1,017 0 * 17,612,031 $2,000,000 to $2,499,999 520 0 * 12,455,607 $2,500,000 to $2,999,999 340 0 * 10,830,114 $3,000,000 to $3,499,999 220 0 * 9,202,855 $3,500,000 to $3,999,999 189 0 * 9,761,844 $4,000,000 to $4,499,999 133 0 * 8,168,537 $4,500,000 to $4,999,999 77 0 * 5,529,460 $5,000,000 and over 407 0 * 58,428,303

Total 50,768 28,288 4,902 $291,200,534

Note that conveyances for no considerat ion or consideration of less than $2,000 are non-taxable.

Less than 10 conveyances Page | 48 Number of Number of Number of

Taxable Exempt Taxable Tax Due

Page | 49

ANDOVER ANSONIA ASHFORD AVON BARKHAMSTED BEACON FALLS BERLIN BETHANY BETHEL BETHLEHEM BLOOMFIELD BOLTON BOZRAH BRANFORD BRIDGEPORT BRIDGEWATER BRISTOL BROOKFIELD BROOKLYN BURLINGTON CANAAN CANTERBURY CANTON CHAPLIN CHESHIRE CHESTER CLINTON COLCHESTER COLEBROOK COLUMBIA CORNWALL COVENTRY CROMWELL DANBURY DARIEN DEEP RIVER DERBY DURHAM EAST GRANBY EAST HADDAM 1,240,371 1,077,270 2,358,612 2,783,764 1,537,475 1,064,139 1,496,433 3,968,430 4,923,834 377,733 119,614 194,240 759,773 252,966 854,945 145,776 190,307 114,521 230,713 322,956 397,026 356,773 159,666 414,361 117,182 249,434 684,219 641,845 224,890 120,832 458,310 750,286 284,567 307,342 267,923 182,763 333,259 94,800 78,627 61,483 150,647,200 109,616,240 133,571,958 266,979,404 330,462,359 200,895,473 122,853,501 191,194,798 463,707,705 394,976,354 12,785,023 50,136,964 10,483,550 14,829,900 26,302,950 99,782,336 32,643,847 18,973,400 24,457,608 15,269,500 23,008,724 40,549,574 51,668,310 31,623,124 19,780,579 51,286,391 14,407,657 30,926,149 80,876,314 84,866,122 27,998,963 13,350,903 59,110,844 95,845,996 32,132,189 38,761,451 33,718,790 21,765,102 43,843,204 9,117,700

Taxable Exempt Taxable Tax Due

Page | 50

EAST HAMPTON EAST HARTFORD EAST HAVEN EAST LYME EAST WINDSOR EASTFORD EASTON ELLINGTON ENFIELD ESSEX FAIRFIELD FARMINGTON FRANKLIN GLASTONBURY GOSHEN GRANBY GREENWICH GRISWOLD GROTON GUILFORD HADDAM HAMDEN HAMPTON HARTFORD HARTLAND HARWINTON HEBRON KENT KILLINGLY KILLINGWORTH LEBANON LEDYARD LISBON LITCHFIELD LYME MADISON MANCHESTER MANSFIELD MARLBOROUGH MERIDEN 22,222,565 1,134,779 1,026,343 8,377,053 6,994,102 1,951,525 2,296,775 1,967,775 1,614,793 1,927,471 1,246,987 1,270,355 1,034,501 1,535,460,148 444,789 973,575 303,647 618,227 674,549 846,804 201,502 626,212 236,374 827,926 367,171 364,686 352,868 162,480 545,526 217,349 264,659 512,833 294,515 541,674 196,819 285,910 163,054 67,348 73,785 34,576 132,320,531 123,625,743 122,802,305 110,566,671 904,497,701 693,791,097 237,209,199 71,111 275,554,533 102,029,851 224,474,482 201,670,342 223,887,980 145,585,520 162,825,667 132,691,100 58,971,907 38,631,647 67,722,567 87,620,932 24,228,175 82,056,198 30,928,136 44,297,881 42,648,715 46,381,717 18,963,379 70,277,083 28,103,671 31,657,842 62,287,652 38,724,008 67,026,720 20,361,700 34,254,678 21,483,899 1,435 8,713,100 8,431,495 9,604,600 4,610,118 3,117

Taxable Exempt Taxable Tax Due

MIDDLEBURY 140 99 448,796 58,198,206 MIDDLEFIELD 54 58 164,208 20,569,887 MIDDLETOWN 392 295 1,206,536 151,384,895 MILFORD 732 414 3,201,240 398,400,273 MONROE 242 140 135,057,333 1,087,502 MONTVILLE 175 153 59,560,354 458,700 MORRIS 34 23 17,303,629 142,945 NAUGATUCK 265 195 85,177,981 659,799 NEW BRITAIN 377 281 121,963,853 887,521 NEW CANAAN 257 179 498,045,392 6,252,707 NEW FAIRFIELD 116 121 565,328 65,256,686 NEW HARTFORD 83 65 211,814 27,938,575 NEW HAVEN 543 513 2,276,261 283,691,028 NEW LONDON 194 149 761,143 91,005,852 NEW MILFORD 268 186 118,357,385 968,543 NEWINGTON 355 244 161,889,931 1,297,544 NEWTOWN 344 250 201,587,833 1,645,316 NORFOLK 25 27 8,977,638 71,757 NORTH BRANFORD 170 133 85,407,125 752,103 NORTH CANAAN 10 8 4,117,900 41,434 NORTH HAVEN 309 209 988,000 126,649,576 NORTH STONINGTON 56 71 172,108 20,819,751 NORWALK 647 482 7,120,136 728,428,560 NORWICH 331 284 694,772 92,168,056 OLD LYME 145 136 93,512,488 865,824 OLD SAYBROOK 218 168 120,040,779 1,020,701 ORANGE 213 145 106,578,852 886,424 OXFORD 200 135 109,288,975 983,479 PLAINFIELD 190 134 58,464,462 465,279 PLAINVILLE 251 142 103,456,764 810,015 PLYMOUTH 151 91 452,892 53,522,915 POMFRET 61 34 180,075 21,313,300 PORTLAND 112 86 382,579 48,270,141 PRESTON 65 60 168,449 21,728,185 PROSPECT 119 93 42,701,886 340,689 PUTNAM 112 97 37,995,213 305,090 REDDING 98 79 80,648,264 733,601 RIDGEFIELD 225 191 203,886,722 1,884,084 ROCKY HILL 235 228 92,730,653 717,019 ROXBURY 42 33 34,599,455 319,215

Page | 51

Taxable Exempt Taxable Tax Due

Page | 52

SALEM SALISBURY SCOTLAND SEYMOUR SHARON SHELTON SHERMAN SIMSBURY SOMERS SOUTH WINDSOR SOUTHBURY SOUTHINGTON SPRAGUE STAFFORD STAMFORD STERLING STONINGTON STRATFORD SUFFIELD THOMASTON THOMPSON TOLLAND TORRINGTON TRUMBULL UNION VERNON VOLUNTOWN WALLINGFORD WARREN WASHINGTON WATERBURY WATERFORD WATERTOWN WEST HARTFORD WEST HAVEN WESTBROOK WESTON WESTPORT WETHERSFIELD WILLINGTON WILTON 4,067,919 1,091,555 1,155,215 1,699,143 2,172,908 9,395,690 1,592,566 1,869,589 1,843,661 1,609,544 1,699,739 5,228,606 1,214,367 9,770,170 1,035,153 2,295,366 1,119,251 1,017,411 173,333 550,155 414,026 168,784 160,808 256,250 265,643 713,736 230,787 253,129 488,012 686,206 122,526 410,247 850,771 891,249 455,840 33,956 69,287 72,683 87,724 99,574 11,871 507,153,284 135,287,653 145,827,508 273,579,347 940,840,971 184,475,091 232,262,787 225,495,574 205,299,414 213,399,259 109,387,125 571,346,988 129,609,589 123,840,375 782,406,631 237,764,905 208,934,711 128,811,559 127,711,024 20,725,267 51,365,699 53,274,853 18,778,830 20,142,677 33,353,979 34,527,680 88,843,706 29,452,278 32,635,753 62,306,121 85,914,305 10,709,920 13,319,500 42,524,250 99,739,100 51,265,244 13,209,932 1,003 4,166,200 9,238,250 9,451,105 1,582,750

Taxable Exempt Taxable Tax Due

WINCHESTER 110 76 33,469,939 271,020 WINDHAM 111 83 30,774,804 245,313 WINDSOR 228 216 81,681,222 632,285 WINDSOR LOCKS 157 113 54,183,702 434,634 WOLCOTT 234 116 75,813,065 583,348 WOODBRIDGE 137 91 89,911,895 762,301 WOODBURY 137 110 63,201,814 536,361 WOODSTOCK 88 101 35,156,281 271,471 TOWN UNKNOWN 608 337 319,568,803 2,952,713 OUT OF STATE 12,795 3,349 9,420,263,955 90,736,007 OUT OF COUNTRY 34 8 28,612,944 304,557

Total 50,768 33,190 31,045,485,214 $291,200,534

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RENTAL SURCHARGE Chapter 228h

The Rental Surcharge is imposed on the rental of machinery by a rental company. The surcharge is imposed on machinery rented for a period of less than 365 days, or under an open-ended contract for an undefined period. See Rental Surcharge Information on the DRS website.

Rental Surcharge

$600,000 $494,903$500,000 $453,287 $382,496$400,000 $300,000Revenue

$200,000 $100,000

2.75% of the total rental charges on machinery.

38 taxpayers / Annually

Gross collections of the surcharge by rental companies during FY 2024-25 amounted to $2,750,767. Rental companies retained the difference between gross collections and the amounts remitted to reimburse personal property taxes and titling and registration fees paid in Connecticut.

Page | 54

REPEALED TAXES

Succession Tax Business Entity Tax

2018 2005 2005

Gift Tax

BUSINESS ENTITY TAX (Chapter 228z) The following business entities were subject to a Business Entity Tax if they were formed under Connecticut law or were foreign entities that were transacting business in Connecticut and required to register with or obtain a certificate of authority from the Connecticut Secretary of the State: S corporations (Qualified subchapter S subsidiaries (QSSS) were not liable);• Limited liability companies (LLCs or SMLLCs) that, for federal income tax purposes, were• either: Treated as a partnership, if it had two or more members; or • Disregarded as an entity separate from its owner, if it had a single member; • Limited liability partnerships (LLPs); and• Limited partnerships (LPs).• Public Act 19-117 sunset the Connecticut Business Entity Tax with the 2017 and 2018 biennial period. Revenue collected for Fiscal Year 2024-25: ($686,027) GIFT TAX (Chapter 228c) The Connecticut Gift Tax applied to Connecticut taxable gifts made prior to January 1, 2005, that had been taxable for federal purposes. The Gift Tax was replaced by the Estate and Gift Tax for taxable gifts made on or after January 1, 2005. Revenue collected for Fiscal Year 2024-25: $37,692 SUCCESSION TAX (Chapter 216) The Succession Tax was levied on the transfer of property after death, with rates that varied depending on the size of the estate and the relationship of the decedent to the beneficiary. The Connecticut Succession Tax does not apply to estates of decedents dying on or after January 1, 2005. Revenue collected for Fiscal Year 2024-25: $60,988

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SALES AND USE TAXES Chapter 219

Connecticut levies sales and use taxes on the gross receipts of retailers from the sale of tangible personal property at retail, from the rental or leasing of tangible personal property, and on the gross receipts from the rendering of certain services. See Sales and Use Tax Information on the DRS website.

$6,600,000,000 $6,484,159,445 $6,427,034,943$6,450,000,000 $6,300,000,000 $6,139,326,121$6,150,000,000Revenue

$6,000,000,000 $5,850,000,000

property, and the rendering of certain services (general rate);

Most motor vehicles with a sales price of more than $50,000;
Items of jewelry with a sales price of more than $5,000; and
Articles of clothing or footwear or a handbag, luggage, umbrella, wallet, or watch, with a price of more than $1,000.

transporting a vessel; armed forces serving on active duty in Connecticut; consecutive calendar days or less;

7.75% This tax rate applies to: Page | 56

9.35% for the rental or leasing of a passenger motor vehicle for a period of 30 6.35% on the gross receipts from the sale, rental or leasing of tangible personal 2.99% for sales and purchases of vessels, motors for vessels, and trailers used for 4.5% on the sale of a motor vehicle to a nonresident member of the United States 7.35% on the sale of meals and certain drinks; 1.0% on computer and data processing services; 11.0% for occupancy in bed and breakfast establishments; 15.0% for the rental of rooms in a hotel or lodging house

FY 2024-25 SALES TAX EXEMPTIONS

Sale for Resale - Goods $117,077.8 $7,443.2 Sale for Resale - Leases and Rentals 2,290.4 156.6 Sale for Resale - Labor and Services 3,542.8 225.0 Magazines by Subscription and All 93.7 5.9 Newspapers Trucks with Gross Vehicle Weight Over 167.1 10.6 26,000 Pounds or Used for Interstate Freight Food Products for Human Consumption 10,778.5 689.4 Fuel for Motor Vehicles 7,746.7 491.9 Electricity/Gas/Heating Fuel (residential) 3,063.1 194.5 Electricity ($150 monthly per business) 167.8 10.7 Electricity/Gas/Heating Fuel for 970.1 61.6 Manufacturing or Agricultural Production Aviation Fuel 395.2 25.1 Sales of Tangible Personal Property to 124.7 7.9 Farmers Machinery/Materials/ Tools/Fuel - Mfg. 2,084.1 132.3 Product Machinery/Materials/ Equip. - Printing 38.2 2.4 Machinery/Materials/ Tools/Fuel - 92.1 5.8 Comm. Fishing

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FY 2024-25 SALES TAX EXEMPTIONS (cont.)

Out-of-State - Sale of Goods 30,460.0 1,936.3 Out-of-State - Leases/Rentals 766.7 49.8 Out-of-State - Labor and Services 15,760.6 1,000.8 Sales of Motor Vehicles, Vessels to 1,699.2 117.0Nonresidents Prescription Medicines 10,863.7 689.8 Nonprescription Drugs and Medicines 359.7 22.8 Charitable/Religious - Sale of Goods 1,384.9 89.1 Charitable/Religious - Leases and 77.1 4.9Rentals Charitable/Religious - Labor and 1,204.8 76.5Services Government - Sale of Goods 15,110.0 960.5 Government - Leases and Rentals 75.2 4.8 Government - Labor and Services 9,605.4 609.9 Pollution Abatement 6.3 0.4 Non-Taxable Labor and Services 26,389.5 1,675.7 Business Services/Parent Owned 793.5 50.4Subs. Trade-ins of Like-Kind Personal 1,249.9 85.6Property Taxed Goods returned within 90 days 166.2 10.6 Oxygen, Plasma, Prostheses, etc. 471.1 29.9 Funeral Expenses up to $2,500 113.1 7.2 Repair or Replacement Parts/Repair 1,457.8 92.6Services to Aircraft

Page | 58

FY 2024-25 SALES TAX EXEMPTIONS (cont.)

Certain Machinery - Manufacturing Recovery Act of 1992 (Difference between the Full and 27.5 1.7 3% Rates) Sales of Machinery, Equipment, Tools, Fuel, and Supplies used in the Biotechnology 46.4 2.9 Industry Sales of Repair and Maintenance Service to 75.1 4.8Vessels Computer and Data Processing Services 8,521.7 541.1(Difference between the Full and 1% Rates) Renovation Services to Residential Property 1,211.7 76.9 Sales to Direct Payment Permit Holders 954.4 60.6 Sales of College Textbooks 26.2 1.7 Sales Tax Holidays 29.4 1.9 Motor Vehicles Sold to Armed Forces 1.8 0.1(Difference between the Full and 4.5% Rates) Purchases of Cigarettes Taxed by a Distributor 528.7 33.6 Sales of Vessels and Motors or Trailers for Vessels (Difference between the Full and 730.1 46.4 2.99% Rates) Other Adjustments - Sales of Goods 25,842.2 1,642.8 Other Adjustments - Leases and Rentals 533.2 34.3 Other Adjustments - Labor and Services 2,043.8 129.8

TOTAL $307,218.8 $19,556.4

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Table I provides a summary of collection amounts attributed to each component of the Sales and Use

taxes. Revenue from required license payments are included in both Sales and Use and Room Occupancy collections.

Table I Sales and Use Tax Collections Fiscal Years 2023 - 2025

Sales and Use Individual Use 6,827,183 5,690,881 Room Occupancy 156,975,955

Total Tax

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$6,250,195,204 $5,975,522,983 $6,307,768,694 161,705,739 15,134,000 170,699,871 $6,427,034,943 $6,139,326,121 $6,484,159,445 Filers with no tax due 83,546 Annual Quarterly Monthly 34,685 70,573 9,574 Sales & Use Taxpayers 198,378 Monthly Quarterly Room & Occupancy Taxpayers

Table II provides a summary of all gross receipts reported under the sales and use taxes attributable

to various components. Note that the figures are gross, and do not necessarily represent taxable receipts.

Table II Gross Receipts Reported on Sales Tax Returns Periods Ending in Fiscal Year 2024-25

Leasing/Rental of Sales of Tangible Sales of Tangible Personal Personal Property Services Tax Rate Property

6.35% - General Rate $302,477.5 $3,801.5 $68,952.5 7.35% - Meals and Beverages 12,715.1 0 0 7.75% - Luxury Goods 4,393.9 707.6 0 9.35% - Motor Vehicle Rental 0 320.3 0

Table III provides a summary of taxable receipts reported under the sales and use taxes attributable

to room occupancy and the rental or leasing of passenger motor vehicles for a period of 30 consecutive calendar days or less.

Table III Taxable Receipts Periods Ending in Fiscal Year 2024-25

Taxable Receipts Attributable to: Tax Rate Taxable Receipts

Room Occupancy in Hotel or Lodging 15% $1,121.8 House Room Occupancy in Bed and Breakfast 11% 6.2 Establishments Rental or Leasing of Motor Vehicles for 9.35% 318.2 30 days or less

Page | 61

Table IV provides a summary of taxable purchases subject to business use taxes. Table IV Purchases Subject to Business Use Tax Periods Ending in Fiscal Year 2024-25

Purchases of Leasing/Rental of Tangible Purchases Tax Rate Tangible Personal Personal of Services Property Property

6.35% - General Rate $6,176.9 $38.9 $3,257.0 7.35% - Meals and Beverages 7.8 0 0 7.75% - Luxury Goods 0.6 9.7 0 9.35% - Motor Vehicle Rental 0 0.1 0

Table V provides a summary of the Film Production Tax Credit claims under sales and use tax. Table V Film Production Tax Credit Claims for Fiscal Year 2024-25 Fiscal Year Number of Claims Tax Credit Claimed

FY 2024-25 6 $27,590,180 FY 2023-24 12 7,059,475

Table VI on the following page provides total sales and use taxes revenues by the economic activities sectors of the North American Industry Classification System (NAICS) for Fiscal Year 2024-25. The revenues are from regular payments and represent 95% of the total sales and use taxes collected in FY 2024-25.

Page | 62

TABLE VI: Sales & Use Tax - From Periods Ending in Fiscal Year 2024-25

Tax Due Tax Due Tax Due at (Includes 9.35% at 6.35% at 7.35% 7.75%

$183.7 $0.0 $0.0 $183.7 216.5 1.6 0.0 218.1 23 Construction 301.2 16.0 0.5 317.7 320.6 1.7 1.4 323.7 42 Wholesale Trade

441 Motor Vehicle and Parts Dealers 482.1 0.0 137.8 620.2 442 Furniture and Home Furnishings 118.9 0.0 0.0 118.9 443 Electronics and Appliance Stores 89.8 0.0 0.0 89.8 444 Building Material & Garden Equipment 256.0 0.0 0.0 256.3 445 Food and Beverage Stores 210.2 61.9 0.0 272.1 446 Health and Personal Care Stores 51.2 0.9 0.2 52.3 447 Gasoline Stations 30.7 6.6 1.6 39.0 448 Clothing and Clothing Accessories Stores 216.5 0.6 21.4 238.4 451 Sporting Goods, Hobby, Book Stores 57.1 0.9 0.0 58.0 452 General Merchandise Stores 255.4 3.0 0.5 258.9 453 Miscellaneous Store Retailers 268.9 7.9 7.4 284.1 454 Non-store Retailers 545.2 3.5 2.2 550.9

44-45 Retail Sector Subtotal 2,582.1 85.1 171.1 2,838.9 51 Information 318.0 36.4 2.2 356.7 52 Finance and Insurance 93.2 0.0 2.7 95.9 53 Real Estate and Rental and Leasing 142.8 1.2 18.6 187.7 54 Professional, Scientific and Technical 277.8 42.5 0.4 320.6 56 Administrative and Support 273.4 0.7 0.7 274.8 71 Arts, Entertainment & Recreation 39.0 17.2 0.0 56.2 81 Other Services (except Public Admin) 262.4 6.2 12.8 281.3 All Other Businesses 136.8 6.2 3.1 150.0

TOTAL SALES & USE TAX $5,165.1 $824.9 $213.7 $6,233.4 Page | 63

Total Tax Due

31-33 Manufacturing22 Utilities 72 Accommodation and Food Services 610.2 17.5 0.2 627.9 Services Rate)

Table VII below provides a summary of retail sales of goods for the state of Connecticut over the past three fiscal years. These sales include those goods that are exempt from the sales and use tax. Data is provided for the Retail Trade subsectors within the North American Industry Classification System (NAICS). Approximately 44% of all the sales and use tax revenue is generated by the retail trade sector.

TABLE VII: Retail Sales Volume - Fiscal Years 2023 - 2025

Motor Vehicle and Parts Dealers (NAICS 441) $14,317.8 $14,676.6 $13,196.6 Furniture and Home Furnishings Stores (NAICS 2,336.7 2,132.8 2,135.4 442)

Electronics and Appliance Stores (NAICS 443) 1,638.9 1,602.0 1,596.9 Building Material and Garden Equipment and 4,616.6 4,505.4 4,514.7 Supplies Dealers (NAICS 444) Food and Beverage Stores (NAICS 445) 13,279.2 13,794.3 14,559.6 Health and Personal Care Stores (NAICS 446) 6,014.7 6,453.9 6,786.6 Gasoline Stations (NAICS 447) 4,748.8 4,636.3 4,285.2 Clothing and Clothing Accessories Stores (NAICS 3,819.4 3,866.3 3,900.7 448)

Sporting Goods, Hobby, Book and Music Stores 1,055.0 1,035.2 1,053.2 (NAICS 451)

General Merchandise Stores (NAICS 452) 7,125.7 7,522.6 7,490.3 Miscellaneous Store Retailers (NAICS 453) 9,381.9 9,249.2 9,318.5 Non-store Retailers (NAICS 454) 13,100.8 14,115.3 14,496.4

Total Retail Trade (NAICS 44-45) $81,435.5 $83,590.0 $83,334.2

Page | 64

SOLID WASTE ASSESSMENT Chapter 446d

The Solid Waste Assessment is levied on the owners of commercial resources recovery facilities that process municipal solid waste to reclaim energy.

Solid Waste Assessment*

$4,165,274 $4,000,000 $3,000,000 $1,677,334

Revenue

$0 -$110,298-$1,000,000

*Revenue amounts reflect deposits adjusted into other tax types.

$1.50 per ton of solid waste processed.

Fiscal Year Solid Waste Assessment Tax Liability Fiscal Year # of Taxpayers Tons of Solid Waste Tax Due

FY 2024-25 4 1,382,442 $2,073,666 FY 2023-24 4 1,434,403 $2,151,608 FY 2022-23 5 1,387,050 $2,080,579

Page | 65

TOBACCO PRODUCTS TAX Chapter 214a

An excise tax is imposed on all non-cigarette tobacco products such as cigars, stogies, snuff, pipe and chewing tobacco. The tax is imposed when the tobacco products are manufactured, imported, or purchased by distributors. Distributors must be licensed annually and remit the tax on a monthly basis. See Tobacco Products Tax Information on the DRS website.

Tobacco Products Tax

$21,000,000 $17,963,925 $17,000,000 $14,258,719 $12,023,595$13,000,000

Revenue

$9,000,000

Tobacco products are taxed at 50% of the wholesale sales price, except for snuff and cigars
in excess of $1.00 per cigar.
Cigars are taxed at 50% of the wholesale sales price, not to exceed 50¢ per cigar.
Snuff tobacco products are taxed at $3.00 per ounce.
Note: The tax on tobacco products is reduced by 50% for any product the Secretary of the

United States Department of Health and Human Services determines to be a "modified risk tobacco product" pursuant to 21 U.S.C. §387k.

121 distributors / Monthly

Page | 66

TOBACCO PRODUCTS TAX (cont.)

$8,680,185 $7,041,711 $5,748,888 1,233,365 1,158,836 1,034,749 7,699,392 5,485,403 4,731,523

**Other Tobacco Products consists of all taxable tobacco products other than snuff and cigars in excess of $1.00 per cigar.*

Page | 67

Snuff Tobacco Products Cigars in excess of $1.00 per cigarOther Tobacco Products*Type

TOURISM SURCHARGE Chapter 228e

A surcharge is levied on the rental and leasing of passenger motor vehicles for a period of thirty consecutive calendar days or less. Revenues generated by the surcharge are deposited into the General Fund. See Tourism Surcharge Information on the DRS website.

Tourism Surcharge

$5,400,000 $5,272,771 $5,200,000 $5,037,691 $4,800,000 $4,630,454Revenue $4,600,000 $4,400,000 $4,200,000

$1.00 per day or portion of a day, for the rental or lease of a passenger motor vehicle delivered to a lessee in Connecticut (regardless of where the vehicle is subsequently used) for a term of 30 consecutive calendar days or less.

19 taxpayers / Monthly 51 taxpayers / Quarterly

Page | 68

TRANSPORTATION NETWORK COMPANY FEE Chapter 244c

Each transportation network company pays a fee on each prearranged ride that originates in this state. Revenue from this fee is reported together with the Dues tax. See Transportation Network Company Fee Information on the DRS website.

30¢ on each prearranged ride that originates in Connecticut.

Page | 69

UNRELATED BUSINESS INCOME TAX Chapter 208a

The Unrelated Business Income Tax is imposed on any trade or business conducted by a tax- exempt organization that does not substantially relate to its tax-exempt purpose. The tax is paid at the same rate as the Corporation Business Tax. See Unrelated Business Income Tax Information on the DRS website.

Unrelated Business Income Tax

$5,800,000 $5,032,297 $4,124,637$4,200,000 $3,400,000 $3,017,641

Revenue $2,600,000

$1,800,000

7.5% of the unrelated business income of the organization. A surtax of 10% applies to organizations whose gross income is $100 million or more for income years 2018 through

2028.

No minimum tax is required.

490 organizations / Annually

Credits

For the 2023 income year, 27 taxpayers claimed $74,125 in electronic data processing equipment property tax credits.

Page | 70

PENALTY AND INTEREST RECEIPTS

Failure to pay taxes or file tax returns in a timely manner generally results in a penalty to the taxpayer of $50 or 10% of the tax due, whichever is greater. If the taxpayer is subject to a penalty for late payment, the late filing penalty is not applicable. Penalties can also be imposed on tax returns which are not submitted as true, complete, and correct; either through negligence or an intent to evade. The penalty for the late payment of Sales and Use taxes is 15% of the amount due, or $50, whichever is greater. The penalty for failure to pay the use tax with the Connecticut income tax return is 10%, reduced from 15%, to parallel the rate for the income tax. Interest is also charged on any amount of tax due that is not paid on or before the due date or on the underpayment of estimated tax requirements. Interest is charged on a monthly basis at a rate of 1% per month from the due date. Generally, tax payments satisfy penalty first, then interest, then tax, in that order. Penalty and Interest Revenue By Tax Source Tax Type FY 2023-24 FY 2024-25

Penalty $4,543,976 $4,943,062 Corporation Interest 14,951,736 19,292,530

Income Tax and Penalty 7,011,277 10,509,766 Pass-Through Interest 22,645,926 25,562,858 Sales & Use Penalty 23,967,299 24,781,505 Taxes Interest 21,329,519 26,587,489 All Other Taxes Penalty 11,550,811 14,404,513 Interest 35,222,713 38,863,230

Total Penalty $47,073,362 $54,638,846 Interest $94,149,893 $110,306,107

Page | 71

PENALTY AND INTEREST RECEIPTS (cont.)

TOTAL PENALTY TOTAL INTEREST

Corporation Business Corporation Tax 9% 18% All Other TaxesAll Other Taxes 35%27% and Pass- Through

Total Penalty Total Interest 19% and Pass- Through Entity Tax 23% 45% 24%

Page | 72

TAX REFUNDS

The tax refund amounts shown below represent refund claims made by taxpayers and processed by the Department of Revenue Services for the most recent three fiscal years below. Refund claims of the Personal Income Tax owed to any person or entity with a debt obligation to Connecticut, the Internal Revenue Service or another reciprocating state may be withheld to offset the outstanding debt. There were 58,725 external offsets totaling $32,311,560 in Fiscal Year 2024-25, compared to 35,388 external offsets that totaled $17,012,238 in Fiscal Year 2023-24. AMOUNT OF TAXES REFUNDED FY 2022-23 FY 2024-25 FY 2024-25

Ambulatory Surgical Center 5,958 46,897 0.00 Beverage Container Deposits 1,316,113 252,966 215,923 Business Entity Tax (Repealed) 3,053,211 3,512,042 216,225 Cable, Satellite & Video Companies Tax 7,768,542 8,123,481 8,080,180 Cigarette Tax 440,800 609,829 384,427

Corporation R&D Credit Buyback 6,061,233 9,027,570 6,449,150 Dry Cleaning Establishment Surcharge 3,208 2,942 1,592 Dues Tax 163,571 54,642 142,884 Electric & Power Companies 243,419 2,885,381 517,756

Gift Tax (Repealed) 37,159 0 0 Health Care Centers Tax 82,579 87,265 361,553 Healthcare Provider Taxes and Fees 468,599 536,061 121,826

Insurance, Non-admitted/Unauthorized 20,074 (3,342) 10,275

Page | 73

1,710,822,546 Electronic Cigarette Products 1,739,374,987 Insurance Premiums Tax, Foreign 1,618,558,632 15,754,156 10,247,377 8,252,408 21,110 480,995 17,405 40,473 7,876 77,411 Alcoholic Beverages Controlling Interest Transfer Tax Corporation Business Estate & Gift Tax Highway Use Fee Insurance Premiums Tax, Domestic 159,342,364 98,690,999 15,275,877 129,918,479 16,569,854 1,829,769 1,953,299 24,723,155 1,305,439 $226,026 $552,114 1,599,297 702,185 215,945 $223,818 377,386 918,980 107,676

TAX REFUNDS (cont.)

AMOUNT OF TAXES REFUNDED (cont.)

Occupational Tax 473,930 310,286 345,821 Pass-Through Entity 139,701,810 143,620,836 162,524,517 PEG Account 10,919 2,174 0.00 Petroleum Products Gross Earnings 2,728,070 4,947,924 301,293 Pre-Paid Wireless 13,789 2,319 (708) Real Estate Conveyance Tax 2,353,418 1,895,698 588,294 Room Occupancy Tax 191,406 285,054 327,930 Sales & Use Taxes 28,152,935 31,734,462 48,654,098 Solid Waste 0 288,131 2,956 Tobacco Products Tax 342,237 2,096,612 144,911 Unrelated Business Income Tax 884,603 973,696 1,035,908 Withholding 27,678,361 29,953,545 $32,868,150 Miscellaneous 69,821 45,531 75,867 Total $2,013,184,603 $2,176,241,528 $2,114,149,324

Page | 74

FY 24-25 Annual Report

Prepared by: Education & Outreach Unit Research, Analytics, and Forecasting UnitDRAFT 12-13-2024

Related changes

Start of 2026 Tax Season, April 15 Filing Deadline

Routine Apr 20, 2026 • CT DRS • Tax

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Source

CT DRS portal.ct.gov/DRS

Tax

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Last updated

April 20, 2026

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Classification

Agency

CT DRS

Published

January 1st, 2026

Instrument

Notice

Branch

Executive

Legal weight

Non-binding

Stage

Final

Change scope

Minor

Who this affects

Applies to

Government agencies Taxpayers

Industry sector

9211 Government & Public Administration

Activity scope

Tax administration Revenue collection Taxpayer services

Geographic scope

Connecticut US-CT

Taxonomy

Primary area

Taxation

Operational domain

Compliance

Connecticut DRS Annual Report, FY 2024-25

Summary

What changed

Archived snapshot

FY 24-25 Annual Report

TABLE OF CONTENTS

DIRECTORY

JOHN BIELLO 860-541-4563 John.Biello@ct.gov

LOUIS P. BUCARI JR. (860) 297-5798 Louis.Bucari@ct.gov

THERESA PETERSON JOHN BIELLO (860) 297-5616 (860) 541-4563 Theresa.Peterson@ct.gov John.Biello@ct.gov

LOUIS P. BUCARI JR. PHILLIP R. SOUCY (860) 297-5798 (860) 541-7518 Louis.Bucari@ct.gov Phil.Soucy@ct.gov

ERNEST ADAMO MICHAEL GALLIHER (860) 297-5694 (860) 297-5691 Ernest.Adamo@ct.gov Michael.Galliher@ct.gov

TIFFANY V. THIELE (860) 297-5615 Tiffany.Thiele@ct.gov

OUR MISSION

CONNECTICUT'S TAXES AND FEES

Fiscal Year 2024-25 Revenue Sources

STATE REVENUE SOURCES

STATE REVENUE SOURCES (cont.)

ALCOHOLIC BEVERAGES TAX Chapter 220

ALCOHOLIC BEVERAGES TAX (cont.)

ATTORNEY OCCUPATIONAL TAX Chapter 876

BEVERAGE CONTAINER DEPOSITS Chapter 446d

199 Entities / Quarterly

CANNABIS TAX Chapter 214c

The statewide Cannabis Tax rates imposed on each cannabis retailer:

CANNABIS TAX (cont.)

CIGARETTE TAX Chapter 214

CONTROLLING INTEREST TRANSFER TAX Chapter 228b

The month following the month in which the transfer was made. 55 transfers in FY 2024-25.

CORPORATION BUSINESS TAX Chapter 208

Certain other deductions are then allowed, such as:

For exemptions, see Corporation Business Tax Information, Exempt Entities, on the DRS website.

CORPORATION BUSINESS TAX CREDITS

CORPORATION BUSINESS TAX CREDITS (cont.)

DRY CLEANING ESTABLISHMENT SURCHARGE Chapter 211b

DUES TAX Chapter 225

ELECTRONIC CIGARETTE PRODUCTS TAX Chapter 214b

The tax is imposed on the first sale or use in Connecticut of any electronic cigarette product at a rate of either:

ELECTRONIC CIGARETTE PRODUCTS TAX (cont.)

FY 2024-25 $3,849,629 $708,955 FY 2023-24 3,857,303 907,112 FY 2022-23 4,824,750 1,340,795

ESTATE AND GIFT TAX Chapter 217 & Chapter 228c

ESTATE AND GIFT TAX (cont.)

ESTATE AND GIFT TAX (cont.)

HEALTHCARE PROVIDER FEES Chapter 211c

25 Taxpayers / Quarterly

HEALTHCARE PROVIDER FEES (cont.)

66 Taxpayers / Quarterly

184 Taxpayers / Quarterly

HIGHWAY USE FEE Chapter 222a

INCOME TAX Chapter 229

INCOME TAX (cont.)

INSURANCE PREMIUMS TAX Chapter 207

INSURANCE PREMIUMS TAX (cont.)

MOTOR CARRIER ROAD TAX Chapter 222

Gasohol 25¢ Diesel Fuel 7/1/24 through 6/30/25* 52.4¢ Natural Gas or Propane 26¢

MOTOR VEHICLE FUELS TAX Chapter 221

MOTOR VEHICLE FUELS TAX (cont.)

Special Fuel* 271,424,644 267,809,707 265,732,514

PAID PREPARER FEE Chapter 229

Assistance (VITA) or Tax Counseling for the Elderly (TCE) program;

PASS-THROUGH ENTITY TAX Chapter 228z

PASS-THROUGH ENTITY (cont.)

Apprenticeship Training 9 $799,924

PETROLEUM PRODUCTS GROSS EARNINGS TAX Chapter 227

PREPAID WIRELESS E 9-1-1 FEE Chapter 518a

225 Retailers 206 / Monthly 19 / Quarterly

PUBLIC SERVICE COMPANIES TAX Chapters 210, 211, 212, 212a

Community Antenna TV* 5.25%

Satellite TV* 5.25% Certified Competitive Video Service Provider* Railroad 5.25% 2 - 3.5% 5%

PUBLIC SERVICE COMPANIES TAX (cont.)

Cable, Satellite & Video $49,226,215 $35,555,237 $29,731,253

PUBLIC SERVICE COMPANIES TAX (cont.)

REAL ESTATE CONVEYANCE TAX Chapter 223

Conveyances made on or after July 1, 2020:

Nonresidential property other than Unimproved Land 1.25% Residential Dwelling:

Portion between $800,000 and $2.5 million 1.25%

Residential Property other than Residential Dwelling 0.75%

Delinquent Mortgage 0.75% Unimproved Land Portion that exceeds $2.5 million Portion $800,000 or less 0.75% 0.75% 2.25%

Fiscal Year 2024-25 Conveyances

Fiscal Year 2024-25 Conveyances