Capitol Update: New Year, New Laws, New Session

Happy New Year! I wish you and yours health and happiness in 2024. It is a deep honor and a privilege to represent you at the State Capitol.

As we welcome the New Year, many new state laws go into effect that may impact you, your family, or your business:

Reduction in certain income tax rates…

• The two lowest marginal rates are lowered. Per DRS: Specifically, the 3% rate on the first $10,000 earned by unmarried individuals and the first $20,000 by couples will decrease to 2%. The 5% rate on the next $40,000 earned by unmarried individuals and the next $80,000 earned by couples will decrease to 4.5%. These benefits will be capped at unmarried individual filers who earn $150,000 and couples who earn $300,000. For comparison, forty-two states have an income tax and of these, nine have a single-rate, or flat tax, including neighboring Massachusetts.

Elimination of the retirement income tax exemption cliff…

• Prior to 2024, the general pension and annuity exemption and the IRA income exemption ended abruptly for taxpayers with incomes at or above the AGI eligibility thresholds. The FY 24-25 budget act eliminates this cliff by increasing the eligibility thresholds and correspondingly phasing out the exemptions. You can find more information below.

Minimum wage increase…

• The minimum wage increased to $15.69 per hour based on cost of living adjustments applied per statute each January 1. Only five states, or parts of states, have a higher minimum wage.

Bottle bill expansion…

• The beverage container deposit increased from five cents to ten cents. Connecticut is one of ten states with a container deposit law.

Early voting…

• Seven days of early in-person voting will be in effect for primaries, including the recently moved Presidential primary which is April 2. 14 days will be allowed for general elections. 46 states allow at least one form of early voting.

Clean slate law…

• A revised and delayed “clean slate” law allows misdemeanors and low-level felonies to be automatically flagged for nondisclosure. The convictions need to be on or after January 2000, and over seven years in the past. The purpose of the law is to make job, housing, and loan applications easier for those seeking a fresh start.

Birthing centers…

• Public Act 23-147 creates a birthing center license which is exempt from burdensome certificate of need requirements until 2028, a date which may be extended. These free-standing centers are “an alternative to traditional hospitals for low-risk pregnancies and deliveries with the goal of expanding access and increasing choices to high-quality maternal health services,” according to a statement from Governor Lamont’s office.

Endometriosis research…

• Public Act 23-67 requires UConn Health Center, along with a nonprofit biomedical research institution, “to develop an endometriosis data and biorepository program to enable and promote research on (1) early detection of endometriosis in adolescents and adults and (2) developing therapeutic strategies to improve clinical management of the condition,” per the CGA website. Endometriosis is a chronic, painful reproductive health condition that affects 1 in 10 women and girls for which there is no known cause, prevention, or cure.

Upcoming Session…

We will be back to the business of making new laws when the 2024 session convenes on Wednesday, February 7. Per the state constitution, this shorter law-making period focuses primarily on adjustments to the two-year state budget, though lawmakers can petition committees to raise other bills. This short session adjourns on May 8. I encourage you to provide input to me and to the pertinent committees as bills work their way through the legislative process, which you can follow at www.cga.ct.gov.