Earlier this year, the Connecticut legislature repealed the biannual business entity tax (“BET”) of $250 for years commencing on or after January 1, 2020. The BET applied to each limited liability company, limited liability partnership, limited partnership and S corporation formed under the laws of Connecticut or registered to do business in Connecticut.
Since the repeal of the business entity tax is effective as of January 1, 2020, it is unclear whether an entity subject to the business entity tax for a period inclusive of 2019 and 2020 remains liable for all or a portion of the tax. As to this issue, it has come to our attention that the DRS has apparently rejected early BET filings pertaining to payments due next year and returned the tax payment. It therefore currently appears that an entity subject to the BET for a period inclusive of 2019 and 2020 may not be liable for all or a portion of the tax, however, absent official guidance from the DRS, this issue remains an open question.
At the same time that it repealed the BET, the legislature also increased the annual report fee due to the Secretary of the State from limited partnerships, limited liability companies and limited liability partnerships from $20 to $80 effective July 1, 2020.