Sales and Use Tax

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Effective January 1, 2018, each payer of pension and annuity distributions, including distributions from an employer pension, an annuity, or similar instrument or plan, will be required to deduct and withhold Connecticut income tax from the taxable portion of such distributions if the payer (i) maintains an office or transacts business in Connecticut, and (ii) makes payment of any amount taxable in Connecticut to a resident individual.
Continue Reading DRS Updates: New Withholding on Pensions and Annuities, Economic Nexus for Sales Tax and “Fresh Start” Program

Shipman & Goodwin attorneys Alan E. Lieberman and Louis B. Schatz authored the article “2016 Survey of Connecticut Tax Law Developments” which was published in Connecticut Bar Journal. Coming off a tumultuous year in 2015, which involved significant tax increases, the Governor generally remained true to his pledge in 2016 not to increase Connecticut taxes,…

The 2017 regular legislative session ended at midnight on June 7, 2017, with Governor Malloy and the Connecticut General Assembly unable to agree on a biennial budget for the period from July 1, 2017 through June 30, 2019, or on a strategy for how the state will address the estimated $5 billion deficit projected for that period.
Continue Reading 2017 Legislative Session: Refusing to Budge(t)

On April 17, 2017, the Connecticut Department of Revenue Services (“Department”) released eagerly awaited market-based sourcing guidance. The guidance will have an impact of virtually all companies (regardless of form) doing business within and without Connecticut. The guidance was issued in the form of Special Notice 2017(1) and provides a detailed explanation of the recent changes to Connecticut’s tax law concerning apportionment for taxpayers, including corporations, pass-through entities (such partnership and S corporations), and individuals.
Continue Reading Eagerly Awaited “Market-Based Sourcing” Guidance Issued by Connecticut Department of Revenue Services

In his February 2016 State of the State address, Governor Malloy announced that his administration would be adopting a new approach to state budgeting in light of what he characterized as “the new economic reality” facing Connecticut and the nation.  The Governor’s proposed changes to the biennial budget, including significant rescissions, funding reductions and state…

Shipman & Goodwin attorneys Alan E. Lieberman and Louis B. Schatz authored the article “2015 Connecticut Tax Law Developments” which was published in Connecticut Bar Journal. Coming off what was a relatively quiet year in 2014, the year 2015 was a tumultuous year for Connecticut tax law changes. The changes enacted during 2015 will…

2015 has been a tumultuous year for Connecticut taxpayers. It started with projections of large state budget deficits for the 2016 and 2017 fiscal years and the adoption of of the second largest tax increase in Connecticut history (only four years after the adoption of the largest such tax increase). By year end, executive branch…

The recently concluded 2014 legislative session of the Connecticut General Assembly finished with the enactment of a flurry of budget and tax legislation that was significantly influenced by eroding state budget projections and the impending state elections.

In the face of a dramatic reduction in the projected budget surplus for the current fiscal year, from…