Sec. 12-263m. Dry cleaning gross receipts tax. Remediation account. Grants. Procedures. Annual report.
Sec. 12-263m. Dry cleaning gross receipts tax. Remediation account. Grants.
Procedures. Annual report. (a) As used in this section: (1) "Eligible dry cleaning
establishment" means any place of business engaged in the cleaning of clothing or other
fabrics using tetrachlorethylene, Stoddard solvent or other chemicals or any place of
business that accepts clothing or other fabrics to be cleaned by another establishment
using such chemicals, (2) "gross receipts at retail" means the total amount accruing from
dry cleaning services at retail, valued in money, without any deduction for the cost of
the materials used, labor or service cost or any other expense, and (3) "eligible applicant"
means (A) a business owner or operator of an eligible dry cleaning establishment, or
(B) an owner of property that is occupied by an eligible dry cleaning establishment.
(b) There shall be paid to the Commissioner of Revenue Services by each dry cleaning establishment a surcharge of one per cent of its gross receipts at retail for any dry
cleaning service performed on or after January 1, 1995. Each such establishment shall
register with the Commissioner of Revenue Services on forms prescribed by him. Each
such establishment shall submit a return quarterly to the Commissioner of Revenue
Services, applicable with respect to the calendar quarter beginning January 1, 1995, and
each calendar quarter thereafter, on or before the last day of the month immediately
following the end of each such calendar quarter, on a form prescribed by the commissioner, together with payment of the quarterly surcharge determined and payable in
accordance with the provisions of this section. Whenever such surcharge is not paid
when due, a penalty of ten per cent of the amount due or fifty dollars, whichever is
greater, shall be imposed, and such surcharge shall bear interest at the rate of one per
cent per month or fraction thereof until the same is paid. The Commissioner of Revenue
Services shall cause copies of a form prescribed for submitting returns as required under
this section to be distributed to persons subject to the surcharge. Failure to receive such
form shall not be construed to relieve anyone subject to the surcharge under this section
from the obligations of submitting a return, together with payment of such surcharge
within the time required. The provisions of sections 12-548 to 12-554, inclusive, and
sections 12-555a and 12-555b shall apply to the provisions of this section in the same
manner and with the same force and effect as if the language of said sections 12-548 to
12-554, inclusive, and sections 12-555a and 12-555b had been incorporated in full into
this section and had expressly referred to the surcharge imposed under this section,
except to the extent that any such provision is inconsistent with a provision of this section
and except that the term "tax" shall be read as "dry cleaning establishment surcharge".
Any moneys received by the state pursuant to this section shall be deposited into the
account established pursuant to subsection (c) of this section.
(c) There is established an account within the General Fund to be known as the "dry
cleaning establishment remediation account". Said account shall contain any moneys
required by law to be deposited in the account. Any balance remaining in the account
at the end of any fiscal year shall be carried forward in the account for the fiscal year next
succeeding. The account shall be used by the Department of Economic and Community
Development for grants made to owners or operators of eligible dry cleaning establishments or owners of property on which an eligible dry cleaning establishment has been
in operation for at least a year prior to the approval of the application.
(d) The state, acting through the Commissioner of Economic and Community Development, shall use the dry cleaning establishment remediation account to provide
grants to applicants for the purposes of the containment and removal or mitigation of
environmental pollution resulting from the discharge, spillage, uncontrolled loss, seepage or filtration of chemical liquids or solid, liquid or gaseous products or hazardous
wastes on or at the site of an eligible dry cleaning establishment or for measures undertaken to prevent such pollution which are approved by the Commissioner of Environmental Protection. In order to qualify for a grant under the provisions of this section an
eligible applicant must demonstrate to the satisfaction of the Commissioner of Economic
and Community Development that (1) the eligible dry cleaning establishment is using
or has previously used, tetrachlorethylene or Stoddard solvent or other chemicals for
the purpose of cleaning clothes or other fabrics, (2) the eligible dry cleaning establishment has been doing business at the site for a period of at least one year prior to the
submission date or approval date of the application for assistance under this section, (3)
the eligible dry cleaning establishment is not in arrears with regard to any tax levied by
the state or any political subdivision of the state and the dry cleaning surcharge imposed
by subsection (b) of this section, and (4) the eligible applicant is not in arrears with
regard to any tax levied by the state or any political subdivision of the state. Any funds
disbursed as a grant under this section shall not be subject to attachment in the satisfaction
of any judgment against the recipient of such grant in any civil action.
(e) Notwithstanding the terms of any grant made under this section, an eligible
applicant shall bear all the costs of such pollution that are less than ten thousand dollars.
The Commissioner of Economic and Community Development may provide a grant of
up to three hundred thousand dollars to the eligible applicant where the eligible applicant
has provided said commissioner with documentation satisfactory to said commissioner
that the services for which payment is sought have been or will be completed. No eligible
applicant shall receive more than three hundred thousand dollars per eligible dry cleaning establishment. There shall be allocated to the Department of Economic and Community Development annually from the account, for administrative costs, an amount equal
to five per cent of the maximum balance of the account in the preceding year or one
hundred thousand dollars, whichever is greater. In addition the account may be used (1)
to provide grants to the Department of Environmental Protection for expenditures made
investigating dry cleaning establishments, (2) to provide potable water whenever necessary, and (3) to conduct environmental site assessments.
(f) Requests for grants shall be made to the Commissioner of Economic and Community Development. Any eligible applicant seeking a grant shall provide documentation supporting the need for the grant.
(g) Any dry cleaning establishment which unlawfully or intentionally discharges
or spills any chemical liquids or solid, liquid or gaseous products or hazardous wastes
shall not be eligible for a grant from the account.
(h) The Commissioner of Economic and Community Development shall establish
procedures for distribution of the grants and shall adopt criteria to carry out the provisions
of this section. Such criteria shall specify (1) who may apply for grants; (2) how establishments, whether owned or leased, will be determined to be eligible for grants; and (3)
the costs for which grants may be made.
(i) The Commissioner of Economic and Community Development shall include
in the report required pursuant to section 32-1m an annual report that shall include
information as to the number of applications received, and the number and amounts of
grants made, since the inception of the program, the names of the applicants, the time
period between submission of an application and the decision to approve or deny the
grant, which applications were approved and which applications were denied and the
reasons for denial. Such report shall further include a recommendation as to whether
the surcharge and the grant program established under this section should continue.
(May Sp. Sess. P.A. 94-4, S. 41, 85; Nov. Sp. Sess. P.A. 94-3, S. 10, 72; P.A. 95-160, S. 64, 69; 95-250, S. 1; P.A. 96-211, S. 1, 5, 6; P.A. 99-216, S. 2; P.A. 05-176, S. 1; P.A. 06-14, S. 3; 06-61, S. 1; 06-196, S. 226; P.A. 07-171, S. 4; P.A.
08-124, S. 2, 3.)
History: May Sp. Sess. P.A. 94-4 effective July 1, 1994; Nov. Sp. Sess. P.A. 94-3 amended Subsec. (a) making surcharge
applicable to "each" dry cleaning establishment for services performed on or after January 1, 1995, requiring quarterly
returns beginning January 1, 1995, and defining "dry cleaning establishment" and "gross receipts at retail", and amended
Subsec. (c) deleting definition of "dry cleaning establishment" and rephrasing the grant qualification criteria, and made
other technical changes to the section, effective December 6, 1994; P.A. 95-160 revised effective date of May Sp. Sess.
P.A. 94-4 but without affecting this section; P.A. 95-250 and P.A. 96-211 replaced Commissioner and Department of
Economic Development with Commissioner and Department of Economic and Community Development; P.A. 99-216
added Subsec. (c)(4) re additional criteria for approval of grants and to provide that grant money may not be attached in
a civil action, amended Subsec. (g) to replace requirement for regulations regarding procedures for applying for a grant
with requirement for the establishment of criteria and to add requirements for such criteria and added new Subsec. (h) re
a report to the General Assembly; P.A. 05-176 amended Subsec. (b) to allow for grants to owners of property on which
an establishment has been in operation for at least a year prior to the approval of the application and there exists an
establishment at the time of release of funds, amended Subsec. (c) to make technical and conforming changes, to amend
Subdiv. (2) to change "in this state" to "at the site" and "date of its" to "submission date or approval date of the", to delete
former Subdiv. (3) re inability to obtain financing and to redesignate existing Subdiv. (4) as new Subdiv. (3), amended
Subsec. (d) to make conforming changes, to delete provision re $20,000 deductible for certain releases, to allow commissioner to provide a grant to certain applicants of up to $3,000, to change the calendar year limitation from $50,000 to
$300,000, and to allow the account to be used to conduct environmental site assessments, amended Subsec. (e) to make a
conforming change, and amended Subsec. (h) to require annual reports re the account in accordance with Sec. 11-4a,
effective July 1, 2005; P.A. 06-14 made a technical change in Subsecs. (e) and (f); P.A. 06-61 added new Subsec. (a) re
definitions, redesignated existing Subsecs. (a) to (h) as Subsecs. (b) to (i), amended Subsec. (b) to delete definitions,
amended Subsec. (c) to insert "eligible" prior to "dry cleaning establishments" and to delete language re the existence of
a dry cleaning establishment at the time of release of funds, amended Subsec. (d) to insert language re "eligible" dry
cleaning establishments and applicants, to make conforming changes, to delete language re maintaining a principal office
and place of business at the site, to insert language re the dry cleaning surcharge, and to insert Subdiv. (4) re a demonstration
that the eligible applicant is not in arrears, amended Subsec. (e) to insert language re "eligible" dry cleaning establishments
and applicants, to make conforming changes, to allow, rather than require, the Commissioner of Economic and Community
Development to make a grant, and to replace "per calendar year" with "per eligible dry cleaning establishment", amended
Subsec. (f) to insert "eligible" prior to "applicant", and amended Subsec. (i) to replace "2000" with "2007" and to replace
"11-4a" with "32-1m", effective May 19, 2006; P.A. 06-196 made technical changes in Subsec. (h), effective June 7, 2006;
P.A. 07-171 amended Subsec. (i) by requiring that information be included in annual report required pursuant to Sec. 32-1m; P.A. 08-124 made technical changes in Subsecs. (b) and (h), effective June 2, 2008.