This episode of the Eversheds Sutherland SALT Shaker Podcast policy series discusses a Connecticut legislative proposal that would create a wage compensation tax. The proposal is currently included in the Connecticut budget and is specifically meant to alleviate the SALT deduction cap put in place by the Tax Cuts and Jobs Act 2017 for wage

On April 22, 2021, the Connecticut General Assembly’s Joint Committee on Finance Revenue and Bonding (“Joint Committee”) approved a revised revenue bill (HB6443) to implement the Connecticut state budget.  We have learned that the revised bill includes: (1) a new digital advertising services tax; and (2) a new wage compensation tax, whereby, at

On April 14, 2021, the Connecticut General Assembly’s Joint Committee on Finance Revenue and Bonding introduced SB1106. The bill would establish the “Connecticut Equitable Investment Fund,” which would be funded by, among other things: (1) a new digital advertising services tax; and (2) a new wage compensation tax, whereby, at an employee’s or independent

On January 29, Connecticut Rep. Josh Elliot, D-Hamden, and twenty-four other co-sponsors filed proposed HB 6187, which proposes to establish a 10 percent tax on the annual gross revenues derived from digital advertising services in the state for any business with annual worldwide gross revenues exceeding $10 billion. The proposed bill calls for

A “proposed bill” introduced in the Connecticut General Assembly (No. 5645) proposes the establishment of a tax on “social media provider companies,” which would be measured by “apportioned annual gross revenue derived from social media advertising services” in Connecticut. The proposed bill calls for the revenue from such tax to be partially dedicated

With the threat of COVID-19 looming, several state legislatures will halt or temporarily suspend their legislative sessions, including: Colorado, Delaware, Connecticut, Georgia, Kentucky, Maine, Maryland, New Hampshire, and Vermont. For many states, this is an unprecedented move while in others, the legislature has not adjourned early since the Civil War. Other state legislatures, like California’s

Recently, the Connecticut Department of Revenue Services issued an informational publication explaining its position on the application of the Connecticut Corporate Business Tax on real estate investment trusts (REITs) and revised a previously issued publication on the implications of the state’s economic nexus provisions to foreign (non-U.S.) companies.

The Department’s newly issued guidelines treat REITs in a manner that is similar to the Internal Revenue Code, but the Department strays in certain areas. IP 2010(21) (Dec. 1, 2010).


Continue Reading Connecticut “WREITS” Guidance for REITs and Economic Nexus

The Connecticut Department of Revenue recently issued an Informational Publication (Publication) on September 23, 2010, to provide guidance on its new “economic nexus” standard, effective for tax years beginning on or after January 1, 2010. Connecticut’s new economic nexus standard states that:

Any company that derives income from sources within this state, or that has