A task force charged with improving the state’s business tax policies to grow the economy is asking Gov. Dannel P. Malloy and the legislature to make filing taxes easier and strike some fees from the books, among other changes.
The Business Tax Policy Task Force, created by executive order in early 2012, finished up their report and sent it to the governor’s office this week.
“Growing our state economy helps all of us. We must find a way to balance the needs of businesses with the needs of other taxpayers who are already shouldering their fair share,” said Department of Revenue Services Commissioner Kevin Sullivan and Department of Economic and Community Development Commissioner Catherine Smith, co-chairs of the task force.
The task force says some of the suggestions can be enacted quickly, while others will take years. Below are some of the suggestions made in the report.
•Clarify current definition of “engaging in business” in order to assure a level playing field for in-state businesses.
•Phase out the Corporate Income Tax “surcharge,” minimum Corporate Income Tax, & Business Entity Tax.
•Require annual, combined on-line business/tax registration as a condition of legally engaging in business but eliminate current business termination fee.
•Sunset no use & low use tax credits, consolidate related tax credits.
•Going forward, credits need to be better aligned with the state’s overall economic strategy, driven by measurable performance, & accountable for results.
•Rationalize credit terms (duration relative to investment return, transferability, carry-forward & no carry-back for all credits).