2023 Connecticut General Statutes › Title 12 - Taxation › Chapter 202 - Collection of State Taxes › Section 12-39p. - Disaster-related or emergency-related work performed in the state by certain out-of-state businesses and out-of-state employees; presence in the state for state tax purposes.

(a) As used in this section:
(1) “Public service company” and “telecommunications company” have the same meanings as provided in section 16-1;
(2) “Critical infrastructure” means real property and tangible personal property, including, but not limited to, buildings, conduits, lines, fiber optic cables, poles, pipes, structures and equipment, owned or used by a public service company or a telecommunications company to generate, transmit or distribute such company's product or service in the state;
(3) “State disaster or emergency” means a disaster or an emergency event for which (A) the Governor has issued a proclamation of a disaster or an emergency pursuant to chapter 517, or (B) the President of the United States has issued a declaration of the existence in the state of a major disaster or an emergency;
(4) “Disaster-related or emergency-related work” means repairing, renovating, installing, constructing or rendering services to critical infrastructure in the state that has been damaged, impaired or destroyed by a state disaster or emergency;
(5) “Disaster response period” means the period (A) commencing ten calendar days prior to the date of issuance of the proclamation or declaration of a state disaster or emergency, and (B) ending sixty calendar days after the Governor has proclaimed or the President has declared, as applicable, the end of such disaster or emergency;
(6) (A) “Out-of-state business” means a business entity that, in the income or taxable year immediately preceding the income year or taxable year in which the state disaster or emergency occurred, (i) was not registered with the state or any political subdivision thereof, (ii) did not submit any tax filings to the state, and (iii) did not derive income from sources within the state.
(B) “Out-of-state business” includes a business entity that (i) was present in the state or conducted operations in the state, to perform disaster-related or emergency-related work, but otherwise satisfies the provisions of this subdivision, or (ii) is affiliated with a registered business solely through common ownership but otherwise satisfies the provisions of this subdivision;
(7) “Out-of-state employee” means an employee of an out-of-state business, who does not work in the state other than performing disaster-related or emergency-related work during a disaster response period for such out-of-state business;
(8) “Registered business” means a business entity that is registered with the Secretary of the State to do business in the state prior to the state disaster or emergency; and
(9) “Business entity” means any person that would be subject to the tax under chapter 208, 211, 212, 212b or 228z, if such person conducted business in the state or derived income from sources within the state.
(b) Notwithstanding any provision of this title or subsection (c) of section 14-34a, no out-of-state business or out-of-state employee that is present in the state or conducts operations in the state, to perform disaster-related or emergency-related work during a disaster response period, shall be deemed to have established sufficient presence in the state to require such business or employee to (1) register with the state or any political subdivision thereof; (2) be licensed by the state, provided such business or employee is properly registered, licensed or otherwise authorized under the laws of another state to perform disaster-related or emergency-related work; (3) be subject to property tax, tax on the income derived from the performance of disaster-related or emergency-related work during a disaster response period or use tax on tangible personal property temporarily in the state to aid such employee in the performance of such work; or (4) submit any tax filing to the state; except that, with respect to out-of-state employees, the provisions of subdivisions (3) and (4) of this subsection shall apply only to an out-of-state employee who is a resident of a state that has a law substantially similar to the provisions of this subsection and subsection (c) of this section or that does not impose a personal income tax.
(c) The activities associated with disaster-related or emergency-related work performed in the state by an out-of-state business that is present in the state or conducts operations in the state solely to perform such work shall be disregarded for purposes of any filing required for a tax imposed on income or gross receipts, including, but not limited to, a combined unitary tax return.
(d) Except as specified under subsections (b) and (c) of this section, any out-of-state business or out-of-state employee that is present in the state or conducts operations in the state, to perform disaster-related or emergency-related work during a disaster response period, shall be subject to all other applicable state taxes and fees during such period.
(e) (1) Any out-of-state business that is present in the state or conducts operations in the state, to perform disaster-related or emergency-related work during a disaster response period, shall provide, upon request by the Secretary of the State, a written statement that such business is in the state for purposes of responding to the state disaster or emergency. Such statement shall include the out-of-state business's name, state of domicile, principal business address, telephone number, electronic mail address, federal tax identification number and date of entry into the state, and may be provided electronically.
(2) The Secretary of the State may request a registered business that is an affiliate of such out-of-state business to provide the written statement and information set forth in subdivision (1) of this subsection. Such registered business shall also include the registered business's name, principal business address, telephone number and electronic mail address.
(3) No out-of-state business that has received a request from the Secretary of the State for a written statement or is an affiliate of a registered business that has received such request shall be prevented from commencing disaster-related or emergency-related work in the state prior to the provision of the written statement.
(f) Any out-of-state business or out-of-state employee who remains in the state after the disaster response period shall be subject to all other laws that provide standards to establish presence in the state and shall comply with any provision of the general statutes that becomes applicable to such business or employee due to such presence.
(Sept. Sp. Sess. P.A. 20-5, S. 16.)
History: Sept. Sp. Sess. P.A. 20-5 effective October 2, 2020.