Health & Fitness
NEW LAW ALREADY PAYING DIVIDENDS FOR TAXPAYERS Back taxes being collected from lottery winnings
A new law deducts back taxes from lottery prizes and $132,328 has been collected through May. The law, introduced by Rep. Gerald Fox III, was suggested by Stamford resident Anthony Martino.
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 (HB6270) introduced by State Representative Gerald Fox III (D-Stamford) and is based on the suggestion of Stamford resident Anthony Martino.
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“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.”
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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.
