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Conn. Gets $6.1M From Traveler’s

March 20, 2002

HARTFORD, Conn. (AP) _ Connecticut received an unexpected boost to its general fund Tuesday when a Hartford-based insurer sent in a $6.1 million check to cover taxes related to its first stock sale, the secretary of the state said.

Travelers Property Casualty Corp., an insurer of homes, cars and businesses, is being spun off from Citigroup, Inc., which has owned the company since the early 1990s. Travelers plans to hold a public offering on Friday, said Marlene Ibsen, a company spokeswoman.

Citigroup plans to sell 20 percent of Travelers to the public in the first quarter of this year, and then spin off the rest to Citigroup shareholders by the end of the year.

The state requires companies to pay a franchise tax on each new share of stock. The Travelers tax is $6.1 million, the largest franchise tax amount ever collected, Secretary of the State Susan Bysiewicz said.

In 2001, the state made just over $16 million from franchise taxes and business registrations, Bysiewicz said.

The check comes as the state is facing a $1 billion budget gap over two years. The legislature is currently trying to find ways to reduce spending and raise revenue. Last month, it approved a 61 cent increase per pack of cigarettes.

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