June 1, 1993
TO: TAX COMMITTEE NO. 30-93
CONNECTICUT MEMBERS
RE: CONNECTICUT REPEALS MINIMUM CORPORATE TAX ON REGULATED
INVESTMENT COMPANIES
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Attached are the relevant portions of a bill recently
passed by the Connecticut legislature at the urging of the
Institute and several of its members which would repeal the
minimum tax currently imposed on regulated investment companies
("RICs"). The tax had previously been imposed on RICs operating
in Connecticut based on the capitalization of the RIC. Under an
earlier statute, the minimum tax had been capped at $50,000 per
RIC. (See Institute Memorandum to Tax Members No. 28-90, dated
July 30, 1990.) The statute is effective for taxable years
beginning on or after January 1, 1993.
We will keep you informed of further developments.
David J. Mangefrida Jr.
Assistant Counsel - Tax
Attachment