Source: https://www.cga.ct.gov/2008/rpt/2008-R-0525.htm
Timestamp: 2018-03-19 20:31:34
Document Index: 189043082

Matched Legal Cases: ['§ 12', '§ 12', '§ 12', '§12', '§ 12', '§12', '§12', '§12', '§12', '§12', '§12', '§12', '§12', '§ 12', '§12', '§ 12', '§ 12', '§ 12', '§ 12', '§12', '§ 12']

BACKGROUNDER: State Fuel Taxes and Tax Exemptions
FUEL (GENERAL); GASOLINE TAX; PETROLEUM; PUBLIC UTILITIES; SALES TAX; TAX EXEMPTIONS;
TAX EXEMPTIONS; TAXATION;
2008-R-0525
Connecticut has four state taxes that apply to some or all types of fuel (petroleum fuels, electricity, and natural gas) or petroleum products. They are the (1) sales tax, (2) motor vehicle fuels tax, (3) petroleum products gross earnings tax, and (4) public service company tax. This report explains the types of goods or situations to which each tax generally applies followed by a list of the fuels or petroleum products or uses that are exempt from each one. Products or uses not specifically exempted are taxable.
Sales tax applies to retailers' gross receipts from (1) the sale of tangible personal property at retail (including fuel and petroleum products), (2) renting or leasing tangible personal property, or (3) rendering specified services. The tax rate is generally 6%. Table 1 shows the fuel-related sales tax exemptions. Only statutory exemptions that expressly mention either “fuel” in general or a particular type of fuel, such as gas or electricity, are listed.
(§ 12-412)
Gas or electricity for residential use or for direct use in (a) agricultural production, (b) making a finished product for sale, and (c) a manufacturing plant (§ 12-412 (3) (A))
If not otherwise exempt under the above provision, $150 of electricity service per month (§ 12-412 (3) (D))
Gas or electricity directly used to furnish gas, water, steam, or electricity delivered to customers through mains, lines, or pipes (§12-412 (3) (E))
Motor vehicle fuel used (a) in vehicles licensed to operate on a public highway or (b) for any other use, if state motor fuel tax has been paid and not refunded under the motor vehicle fuel tax law (see Table 2B below) (§ 12-412 (15))
Fuel used for heating in a residential dwelling or in any building or other location used (a) for agricultural production, (b) for making a finished product for sale, or (c) as a manufacturing plant (§12-412 (16))
Fuel to be used directly (a) in the fishing industry; (b) as a component or ingredient in making a finished product for sale; (c) in furnishing power to a manufacturing plant; or (d) to deliver gas, water, steam, or electricity to customers through mains, lines, or pipes (§12-412 (18))
Fuel for high-occupancy commuter vehicles (§12-412 (37))
Aviation fuel used exclusively and directly in the experimental testing of any product (§12-412 (59))
Aviation fuel used exclusively for aviation purposes (§12-412 (75))
Fuel for an aircraft manufacturing facility (§12-412 (78))
Marine fuel for vessels with displacements greater than 4,000 dead weight tons or primarily engaged in interstate commerce (bunker fuel oil, intermediate fuel, marine diesel oil, and marine gas oil) (§12-412 (79))
Fuel used directly in the biotechnology industry (§12-412 (89))
Diesel fuel used exclusively in portable generators larger than 150 kilowatts (§ 12-412 (107))
Fuel used in a fuel cell manufacturing facility (§12-412 (113))
50% exemption for fuel used as an ingredient or component part of tangible personal property that will be used or consumed in manufacturing or producing products for sale (§ 12-412i)
The motor vehicle fuels tax applies to motor vehicle fuel used or sold in Connecticut. The per-gallon tax is 25¢ for gasoline and gasohol; 43.4¢ for most diesel fuel; and 26¢ for natural gas, propane, and any diesel fuel sold exclusively for use in portable power generators larger than 150 kilowatts. The 43.4¢ diesel tax rate applies for 2008-09 only. By law, Department of Revenue Services (DRS) must recalculate the diesel tax rate annually based on the average wholesale price.
Tax exemptions and exclusions are shown in Table 2A. Fuel uses eligible for motor fuel tax refunds are shown in Table 2B. The motor fuel tax refund provisions require a purchaser to pay the tax and then file for a refund from DRS. A motor fuel tax exemption or refund triggers imposition of sales or use tax on the fuel purchase unless the person or entity receiving the refund is otherwise exempt from sales and use taxes.
TABLE 2 A: MOTOR FUEL TAX EXEMPTIONS AND EXCLUSIONS
(§§ 12-455a (c) and 12-458)
(§ 12-459)
Fuel used in vehicles, other than farming vehicles, not licensed or required to be licensed to operate on public highways (refund is limited to 26¢ per gallon - § 12-458h (c))
Fuel used by licensed livery services
50% refund for fuel used by taxicabs, airport livery services, and airport motorbuses
Fuel used in hospital-owned ambulances
Fuel used in ambulances owned by nonprofit civic groups
This tax applies to companies distributing petroleum products in Connecticut. The tax is 7% of the gross revenue from the first sale of a taxable petroleum product in the state. Petroleum products are those that contain or are made from petroleum or a petroleum derivative, including gasoline, aviation fuel, kerosene, benzol, distillate fuels, residual fuels, and crude oil. Petroleum derivates include paint, detergents, antiseptics, fertilizers, nylon, asphalt, and plastics. Exemptions are listed in Table 3.
(§12-587, 2008 SUPPLEMENT TO THE GENERAL STATUTES)
(§ 12-264)