OLR Report 2014-R-0201 provides an overview of Connecticut's business tax structure.
Businesses operating in Connecticut must pay various state and local taxes on the income they generate (e.g., corporation and personal income taxes); property they own, use, or transfer (e.g., property and conveyance taxes); goods and services they purchase (e.g., sales and motor fuels excise taxes); and people they employ (e.g., unemployment insurance tax). Certain business entities, known as pass-through entities, must also pay a business entity tax to operate in the state. Specified businesses must pay taxes on the earnings generated from certain business activities (e.g., distributing, refining, or importing certain petroleum products or providing certain utility services).
For purposes of this report, we have excluded certain taxes businesses collect from people purchasing goods and services and remit to the state (e.g., excise taxes on tobacco and alcohol sales, admissions and dues taxes, and room occupancy taxes) and other taxes that apply to or affect specific types of businesses (e.g., hospital net patient revenue tax and dry cleaning tax).
For more information, read the full report.
