Bill
Bill > HB05088
CT HB05088
CT HB05088An Act Concerning The Asset Requirement For Mutual Funds To Be Qualified To Pay Exempt-interest Dividends.
summary
Introduced
02/09/2026
02/09/2026
In Committee
02/09/2026
02/09/2026
Crossed Over
Passed
Dead
Introduced Session
2026 General Assembly
Bill Summary
To eliminate the requirement that at least fifty per cent of the assets of a mutual fund consist of state and municipal government obligations for the fund to be qualified to pay exempt dividends, for purposes of the personal income tax.
AI Summary
This bill aims to change the rules for mutual funds that want to pay "exempt-interest dividends," which are dividends that are not taxed as income for personal income tax purposes. Currently, a mutual fund must have at least half of its investments, or "assets," in bonds or other debt issued by state and local governments to qualify for this tax exemption. This bill proposes to remove that fifty percent requirement, meaning mutual funds will no longer need to hold a specific minimum amount of these government bonds to be eligible to pay these tax-exempt dividends.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Referred to Joint Committee on Finance, Revenue and Bonding (on 02/09/2026)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05088&which_year=2026 |
| BillText | https://www.cga.ct.gov/2026/TOB/H/PDF/2026HB-05088-R00-HB.PDF |
Loading...