State Department of Revenue Services Commissioner Kevin B. Sullivan, in a report to the state Commission on Economic Competitiveness, says key improvements in the 2015 tax legislation will benefit the state economy and avoid any adverse economic impact. He said clarifications to the tax code will benefit businesses taxes.
His report came in response to a claim by the House speaker that tax changes enacted at the very end of the 2015 legislative session had not been sufficiently vetted and should be revisited.
Sullivan said two key clarifications are needed to make unitary reporting reform work for Connecticut. He said moving to unitary reporting is a major business tax reform that benefits Connecticut-based corporations and exports more business taxes out of state.
The first clarification needed: Single-factor apportionment for all corporate income tax filers, which is fairer and increases the benefit to Connecticut-based businesses. He said the second clarification is a reasonable cap on any resulting annual net increase in tax liability to avoid any particular adverse business impact.
