DRS: SN 97(9), 1997 Legislative Changes Affecting Licensed Motor Vehicle Lessors

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

SN 97(9)

1997 Legislative Changes Affecting
Licensed Motor Vehicle Lessors


PURPOSE: The purpose of this Special Notice is to describe the legislative changes made during the 1997 session of the Connecticut General Assembly affecting licensed motor vehicle lessors.


STATUTORY AUTHORITY: Conn. Gen. Stat. 12-431, as amended by 1997 Conn. Pub. Acts 243, 31.


EFFECTIVE DATE: October 1, 1997.


LICENSED MOTOR VEHICLE LESSORS REQUIRED TO COLLECT TAX: 1997 Conn. Pub. Acts 243 amends subsection (a) of Conn. Gen. Stat. 12-431 to require a "licensed motor vehicle lessor" to charge and collect sales tax as a retailer when a motor vehicle is sold (as opposed to leased) by the lessor.

Previously, when a licensed motor vehicle lessor sold a vehicle at the end of a lease, it was not required or permitted to collect the tax on the sale. Under Conn. Gen. Stat. 12-431(a), the purchaser was required to pay the use tax directly to the Department of Motor Vehicles before obtaining a registration for the vehicle. As of October 1, 1997, licensed motor vehicle lessors are now required to charge and collect sales tax on such transactions.

A "licensed motor vehicle dealer" is a person licensed pursuant to Conn. Gen. Stat. 14-15.


EFFECT OF THIS DOCUMENT: A Special Notice (SN) is a document that, in response to newly enacted or amended Connecticut or federal laws or in response to newly released judicial decisions, announces a new Department position, policy or practice affecting the tax liability of taxpayers.


EFFECT ON OTHER DOCUMENTS: None affected.


FOR FURTHER INFORMATION: If you have questions about Connecticut taxes, please call the Department of Revenue Services during business hours, Monday through Friday:

  • 860-297-5962 (Hartford calling area or from out-of-state): or
  • 1-800-382-9463 (toll-free from within Connecticut).

Telecommunications Device for the Deaf (TDD/TT) users ONLY call 860-297-4911 during business hours.


FORMS AND PUBLICATIONS: You may obtain forms and publications at any hour, seven days a week:

  • Telephone: use the phone numbers listed above and select Option 3 from a touch-tone phone;
  • Internet: preview and download forms from the DRS Web site: http://www.ct.gov/drs.

SN 97(9)
Sales and Use Tax
Issued: 12/30/97