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SB00104 • 2026

AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Sen. Martin M. Looney, 11th Dist.
Last action
2026-02-20
Official status
Public Hearing 02/27
Effective date
Not listed

Plain English Breakdown

The exact dollar amounts for income thresholds are referenced but not provided in this excerpt; they depend on external statute section 12-700.

A New Tax Surcharge for High-Income Capital Gains

This law adds an extra tax charge called a surcharge to the profit from selling assets, but only for taxpayers with very high incomes.

What This Bill Does

  • Creates a new capital gains surcharge on net profits from selling or exchanging capital assets.
  • Applies this surcharge only to taxpayers whose Connecticut adjusted gross income meets specific high-income thresholds defined in section 12-700 of the general statutes.
  • Sets the surcharge rate at one percent for those subject to the highest marginal tax rate threshold.
  • Sets the surcharge rate at seventy-five-hundredths per cent (0.75%) for those subject to the second-highest marginal tax rate threshold.
  • Amends Title 12 of the general statutes to include these new rules.

Who It Names or Affects

  • Taxpayers with Connecticut adjusted gross income equal to or greater than the threshold amount specified in section 12-700 for the highest marginal tax rate.
  • Taxpayers with Connecticut adjusted gross income equal to or greater than the threshold amount specified in section 12-700 for the second-highest marginal tax rate.

Terms To Know

Capital gains surcharge
An extra tax added on top of regular taxes when a person makes money from selling or exchanging capital assets, applied only to certain high-income taxpayers.
Net gain
The profit resulting from the sale or exchange of capital assets as defined by state law.
Connecticut adjusted gross income
A taxpayer's total income calculated according to Connecticut rules, used here to determine if they meet specific high-income thresholds for this surcharge.

Limits and Unknowns

  • The text does not list the exact dollar amounts for the income thresholds mentioned in section 12-700.
  • The bill excerpt does not specify an effective date when this surcharge begins.
  • The source material refers to 'capital assets' but relies on existing legal definitions rather than listing specific examples.

Bill History

  1. 2026-02-20 Connecticut General Assembly

    Public Hearing 02/27

  2. 2026-02-18 FIN

    Reserved for Subject Matter Public Hearing

  3. 2026-02-09 Connecticut General Assembly

    Referred to Joint Committee on Finance, Revenue and Bonding

Official Summary Text

To establish a capital gains surcharge on certain taxpayers.

Current Bill Text

Read the full stored bill text 
LCO No. 507 1 of 1

General Assembly Proposed Bill No. 104
February Session, 2026 LCO No. 507

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. LOONEY, 11th Dist.

AN ACT ESTABLISHING A CAPITAL GAINS SURCHARGE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That title 12 of the general statutes be amended to establish a 1
surcharge on the net gain from the sale or exchange of capital assets on 2
a taxpayer , whose Connecticut adjusted gross income is equal to or 3
greater than the threshold amount specified in section 12 -700 of the 4
general statutes for imposition of the highest and second highest 5
marginal rates on such taxpayer, of one per cent and seventy -five-6
hundredths per cent, respectively. 7
Statement of Purpose:
To establish a capital gains surcharge on certain taxpayers.