SB 510 Connecticut Senate · 2026 Regular Session

AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

This bill directs the Commissioner of Revenue Services to conduct a study of the state's current revenue policies to identify potential legislative changes that could improve the business climate and economic opportunities. The commissioner is authorized to consult with individuals, businesses, and state agencies as needed to gather information for the study. By January 1, 2027, the commissioner must submit a report containing findings and recommendations to the joint standing committee on finance, revenue, and bonding. The bill does not change any existing tax laws or revenue amounts but instead establishes a process for reviewing and potentially updating state revenue policies.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2026

Committee Review

Floor Vote

Governor

Introduced Mar 18, 2026 Last action Apr 20, 2026

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What changed between versions

Raised Bill → FIN Joint Favorable Substitute · 8 edits

MODERATE

The bill was completely rewritten to replace a study on revenue policies with a new Capital Gains Surcharge. This change shifts the legislation from a research proposal to an active tax measure that imposes a 1.75% surcharge on high-income earners' investment profits.

Scope change

The bill's scope changed from a general study of state revenue policies to a specific tax on capital gains for high-income individuals.

SCOPE

Removed the requirement for the Commissioner of Revenue Services to study state revenue policies to improve the business climate.

FISCAL

Added a new 1.75% surcharge on net capital gains for taxpayers with Connecticut adjusted gross income exceeding $1 million (individuals), $1.6 million (head of household), or $2 million (married filing jointly).

ELIGIBILITY

Established specific income thresholds and filing statuses to determine who is subject to the new surcharge.

REQUIREMENT

Created a new reporting requirement for taxpayers to file a report with the Commissioner of Revenue Services detailing their net gain and surcharge liability.

Included a one-time exclusion for the sale of a primary residence or ownership interest in a business.

ENFORCEMENT

Added penalties for non-payment, including a 10% penalty or $50 minimum, plus monthly interest, along with provisions for waiver due to reasonable cause.

TIMELINE

Set the effective date of the surcharge for taxable years commencing on or after January 1, 2027.

DEFINITION

Defined the surcharge rate as 1.75% of net gain from the sale or exchange of capital assets as determined for federal income tax purposes.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 1, 2026

Upper · Passed

Joint Favorable Substitute

upper

Mar 18, 2026

Committee

REF. TO JOINT COMM. ON Finance, Revenue and Bonding

upper

3 primary · 0 co-sponsors