Public Safety and Security Committee
Finance, Revenue and Bonding Committee
AN ACT CONCERNING THE COLLECTION OF DELINQUENT TAXES AND LOTTERY WINNINGS
SUMMARY: This act requires the Connecticut Lottery Corporation (CLC) to deduct and withhold delinquent taxes from any lottery prize claim of $5,000 or more a delinquent taxpayer submits at CLC's central office after December 30, 2011.
The act requires the Division of Revenue Services commissioner to submit a list of delinquent taxpayers to CLC. It allows the commissioner to disclose to CLC (1) the names and any information necessary to identify delinquent taxpayers and (2) the amount of taxes, penalty, and interest owed. Before paying any prize claim of $5,000 or more, CLC must check the list. If a claimant is delinquent, CLC must withhold from the winnings and promptly notify and forward to the commissioner the amount of taxes owed, plus penalties and interest, after deducting and withholding any amount owed for child support.
The act applies to taxes, including penalties and interest, more than 30 days overdue that are not the subject of a timely filed (1) administrative appeal to the commissioner or (2) appeal pending before a court.
For the act's purposes, CLC employees are state employees. As such, they are prohibited from disclosing any tax information they receive, except as the law requires. By law, a violation carries a fine of up to $1,000, imprisonment for up to one year, or both.
EFFECTIVE DATE: October 1, 2011
OLR Tracking: VR: JK: JL: ts