Gov. Dannel P. Malloy’s administration warns the scramble to adjust to federal tax changes could produce a one-time revenue bubble here that might fool state legislators into underestimating serious problems with Connecticut’s finances.
Connecticut remains without a budget six weeks into the new fiscal year, but by law officials must still move forward with the state’s 17th-annual sales tax holiday later this month. The Department of Revenue Services estimates the state will miss out on about $4.1 million in revenue.
In case you were wondering, the Connecticut Department of Revenue Services says it’s checked, and there is no evidence that the Donald J. Trump tax returns obtained by the New York Times came from DRS.
Two state agency heads have ruled against Connecticut hospitals’ claims that the state tax on hospitals is illegal, clearing the way for the industry to take the state to court.
Thrown a last-minute challenge to collect an extra $75 million in revenue for the past fiscal year, state tax officials topped the mark, collecting nearly $86 million in miscellaneous receipts before the fiscal year ended on June 30.
The Department of Revenue Services, which recently downgraded the role of debit cards, is now seeking funds to maintain old-fashioned paper checks as the default refund option through spring of 2015.