Tax News

CCH (cch.taxgroup.com) reports:

  The Connecticut General Assembly has passed a biennial budget bill for the period beginning July 1, 2009, and ending June 30, 2011, that, if enacted, would increase personal income tax rates, impose a corporate tax surcharge, decouple from the federal domestic product activities deduction, increase cigarette taxes, enact an estate tax surcharge, create a new tire fee, and make various other changes to the Connecticut tax laws as described below. Unless otherwise noted, all changes would be effective July 1, 2009, and apply to income or tax years beginning on or after January 1, 2009.

  Gov. Jodi Rell has indicated that she will veto the bill. The General Assembly has, however, sent Gov. Rell a letter asking for her support for the bill. The letter, signed by the Speaker of the House (Christopher Donovan) and the Senate President Pro Tempore (Donald Williams, Jr,), states that if Gov. Rell intends to veto the legislation, the General Assembly requests immediate bi-partisan negotiations between the Executive and Legislative branches of government. The General Assembly also suggests Monday, June 29, 2009, at 11:00 a.m. in Capitol Room 410 as a possible first session of negotiations.