June 27, 2012
NEW LAW ALREADY PAYING DIVIDENDS FOR TAXPAYERS
Back taxes being collected from lottery winnings
A new law that took effect January 1, requiring the state’s lottery agency to deduct delinquent taxes and penalties before distributing a lottery prize of $5,000 or more to a winner, has resulted in $132,328 being withheld through May 31. This puts collections on track to exceed a quarter million dollars in its first year.
The law is a result of legislation (HB 6270) introduced by State Representative Gerald Fox III and is based on the suggestion of Stamford resident Anthony Martino.
“This is not only proving helpful in collecting revenue due the state, but adds a level of fairness to the tax system,” said Fox, who serves as House Chair of the Judiciary Committee. “If someone is fortunate enough to win a lottery prize it only makes sense that any back taxes should be taken out, and that is the exact point Mr. Martino made.”
There is currently about $400 million in state tax delinquencies eligible for collection.
“About 10 years ago I had suggested to my state representative at the time that it would be a good thing to collect back child support from lottery winnings, so now I thought why not apply the same process to delinquent taxes?” Martino said.
Just as with back taxes due, the Connecticut Lottery Corp. checks winning tickets valued at $5,000 or more against a list of individuals delinquent on child support payments. The lottery child support collection program, begun in 2004, has brought in about $1.5 million in delinquent payments. Almost $85,000 has been collected during the first five months of this year alone.