DRS: SN 98(9), 1998 Legislative Changes Affecting the Motor Vehicle Fuels Tax

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

SN 98(9)

1998 Legislative Changes Affecting
The Motor Vehicle Fuels Tax


PURPOSE: The purpose of this Special Notice is to describe the changes made to the motor vehicle fuels tax during the 1998 session of the Connecticut General Assembly.


EFFECTIVE DATE: The effective dates of legislative changes are noted herein.


STATUTORY AUTHORITY: Conn. Gen. Stat. §12-458, as amended by 1998 Conn. Pub. Acts 128, §1 and 1998 Conn. Pub. Acts 190, §1; Conn. Gen Stat. §12-458b, as amended by 1998 Conn. Pub. Acts 244, §20; and Conn. Gen. Stat. §12-459, as amended by 1998 Conn. Pub. Acts 190, §2 and 1998 Conn. Pub. Acts 244, §21.


TAX RATE DECREASE: Effective July 1, 1998, the motor vehicle fuels tax rate on the sale or use of:

  • gasoline will decrease from 36˘ to 32˘ per gallon.
  • gasohol will decrease from 35˘ to 31˘ per gallon.

NO CHANGE IN DIESEL FUEL TAX RATE: The motor vehicle fuels tax rate on diesel fuel does not change on July 1, 1998, and remains at 18˘ per gallon.


NEW EXEMPTION FOR FUEL SOLD TO A MUNICIPALITY FOR USE IN SCHOOL BUSES: Effective July 1, 1998, all fuel sold to a municipality for use exclusively in school buses (as defined in Conn. Gen. Stat. §14-275) is exempt from motor vehicle fuels tax, even if the fuel is not used exclusively in connection with a municipal contract.


NEW REFUND FOR FUEL USED IN SCHOOL BUSES: Effective for fuel used on and after July 1, 1998, tax paid on fuel sold for use in any school bus (as defined in Conn. Gen. Stat. §14-275) is eligible for refund under the provisions of Conn. Gen. Stat. §12-459, whether the fuel is sold to a municipality or to any other person.


MUNICIPAL CONTRACTORS MAY FILE QUARTERLY MOTOR VEHICLE FUELS TAX RETURNS: Effective October 1, 1998, contractors performing services for municipalities or school districts who obtain tax-free fuel from municipalities or school districts to perform such services in accordance with contracts shall file and pay taxes on a quarterly basis, when such fuel is not used in accordance with such contracts. Contractors who use fuel exclusively in school buses (as defined in Conn. Gen. Stat. §14-275) need not pay tax on such fuel.


DUE DATE FOR FILING MOTOR VEHICLE FUELS TAX REFUND CLAIMS: Effective for fuel used on or after January 1, 1998, the deadline for filing for refunds under Conn. Gen. Stat. §12-459 for tax paid on such fuel has been extended from March 31 of the succeeding calendar year to May 31 of the succeeding calendar year.


REVISED TAX RETURNS: All distributors will be mailed revised motor vehicle fuels tax returns that reflect the rate changes.


EFFECT ON OTHER DOCUMENTS: None affected.


EFFECT OF THIS DOCUMENT: A Special Notice is a document that announces a new policy or practice in response to changes in State or federal laws or regulations, or to judicial decisions. A Special Notice indicates the Department’s informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.


FOR FURTHER INFORMATION: For further information concerning motor vehicle fuels tax, call the Excise/Public Services Subdivision at 860-541-3225.

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)

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 2 from a touch-tone phone;
  • Internet: preview and download forms from the DRS Web site: http://www.ct.gov/drs.

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


SN 98(9)
Motor Vehicle Fuels Tax
Issued: 6/19/98