December 19, 2011

BACK TAXES TO BE COLLECTED FROM LOTTERY WINNINGS IN NEW YEAR
Raises importance of accurately identifying winners

A new law enacted from legislation (HB 6270) sponsored by State Representative Joseph Serra (D-Middletown) requiring the state’s lottery agency to deduct delinquent taxes and penalties before distributing lottery prizes takes effect New Year’s Eve.

Lottery prizes of $5,000 or more from tickets redeemed after December 30, 2011 are affected. With about $400 million in state taxes currently delinquent, Serra said the law will serve as an avenue to garner uncollected past due revenue.

“We require back property taxes to be paid when registering a car, so it makes sense to collect overdue taxes when a lottery prize is paid,” said Serra. “In addition to collecting what is already owed the state, this is also about fairness and improving public confidence in our tax system.”

Winners of the recent $254 million Powerball jackpot from a ticket purchased in Connecticut were not checked for back taxes as the prize was redeemed before the new law took effect. “The new law however helps to highlight the importance of accurately identifying winners,” Serra said.

Current state statute already requires the Connecticut Lottery Corp. to check 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.