Bill > HB07147

This bill authorizes municipalities to impose a tax on the endowment funds of large private higher education institutions, specifically those with assets exceeding $300 million. If more than 50% of an institution's students attend classes in a particular municipality, that municipality's legislative body can vote to levy a tax of up to 2% on the institution's net investment income (which is defined using federal tax code terminology as income from investments). The tax can be collected either as a single annual payment or in two semi-annual installments, with the specific payment schedule determined by the municipal legislative body. The tax will be administered by the municipal tax collector, with forms and regulations to be prescribed by the state's Commissioner of Revenue Services. The bill will take effect on October 1, 2025, and will apply to taxable years beginning on or after January 1, 2026, providing a clear timeline for implementation and giving affected institutions advance notice of the potential new tax.

Housing and Urban Affairs

Planning and Development Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB07147&which_year=2025