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2000/2001Section Motor Vehicle Fuels Tax

Motor fuel used or sold in Connecticut is subject to the Motor Vehicle Fuels Tax.  "Fuel" includes gasoline, diesel, gasohol, propane, or any combustible gas or liquid which generates the power needed to propel a motor vehicle.

Revenue
FY 1998-99 $489,886,263
1999-00 496,658,719
2000-01 407,559,662

Exemptions

  • Fuel sold to United States Government, the State of Connecticut, any Connecticut municipality or transit district, when  such fuel is used in vehicles owned and operated, or leased and operated by any of the aforementioned entities;

  • Aviation fuel;

  • Fuel sold exclusively for heating purposes and to furnish gas, water, steam or electricity, if delivered to consumers through mains, lines or pipes;

  • Alternative fuels (compressed natural gas, liquefied petroleum gas, and liquefied natural gas);
  • Fuel sold to owners or operators of an aircraft, or to a licensed aviation fuel dealer whose place of business is located at an airport ;
  • Fuel used in school buses; and
  • Diesel fuel sold exclusively for use in portable power system generators that are larger than one hundred fifty kilowatts.

Number of Taxpayers/Filing Frequency

700 taxpayers/Monthly
Certain distributors who sell fuel on which the Motor Vehicle Fuels Tax is not payable are allowed to file less than monthly, but at least annually.

Basis and Rate

Rate per Gallon
Gasoline 25¢
Gasohol 24¢
Diesel Fuel 18¢
Natural Gas 18¢
Propane 18¢

Comparative Data

Number of Gallons Sold
FY 1998-99 FY 1999-00 FY 2000-01
Gasoline 1,380,707,148 1,374,425,596 1,430,548,750
Special Fuel 223,134,178 233,541,951 245,977,444
Gasohol 21,884,696 40,653,552 19,743,011
TOTAL GALLONS 1,546,280,668 1,648,621,099 1,696,269,205

Motor Vehicle Rental Surcharge

The Motor Vehicle Rental Surcharge is imposed on the rental of each private passenger motor vehicle in Connecticut by a rental company for a period of less than 31 days.  Rental companies must pay over the portion of the surcharge collected during the calendar year that exceeds the amount paid in personal property tax and the amount paid in titling and registration fees.

Revenue
FY 1998-99 $216,331
1999-00 549,713
2000-01 127,365

Exemptions

  • Motor vehicles delivered to a lessee outside Connecticut;

  • Rentals by an agency of United States Government;

  • Rentals of 31 days or more; and,

  • Rentals of motor vehicles by a person that is not a rental company.

  • Number of Taxpayers / Filing Frequency

Number of Taxpayers / Filing Frequency

274 taxpayers / Annually

Basis and Rate

3% of the total rental charges imposed by the rental company.

Comparative Data

Gross collections by rental companies during 2000 amounted to $5,591,122.  The $5,464,048 difference between gross collections and the amount remitted was retained by rental companies to reimburse personal property taxes and titling and registration fees paid during 2000.


OCCUPATIONAL TAX

An occupational tax is levied against any person who has been admitted as an attorney by the judges of the superior court, and who is engaged in the practice of law in Connecticut.

Revenue

FY 1998-99 $5,859,112
1999-00 5,914,532
2000-01 5,937,106

Exemptions

  • Judges and employees of the State of Connecticut;

  • Any attorney who has retired from the practice of law;

  • Any attorney serving on active duty with the United States Armed Forces for more than six months of a given year; and

  • Any attorney employed by a political subdivision of Connecticut or any probate court.

Number of Taxpayers/Filing Frequency

13,194 Attorneys/Annually

Basis and Rate

$450 per practicing attorney


PETROLEUM COMPANIES GROSS EARNINGS TAX

A tax is levied on the gross earnings of companies distributing petroleum products in Connecticut.  Petroleum products include gasoline, aviation fuel, kerosene, diesel fuel, benzol, distillate fuels, residual fuels, crude oil and derivatives of petroleum such as paint, detergents, antiseptics, fertilizers, nylon, asphalt, plastics and other similar products.

Revenue

FY 1998-99 $63,254,665
1999-00 103,338,078
2000-01 127,567,873

Exemptions

  • Number 2 heating oil used exclusively for heating purposes or in a commercial fishing vessel;

  • Bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil used in vessels displacing over 4,000 dead weight tons;

  • Kerosene used exclusively for heating purposes, when the fuel is delivered via a truck with a metered delivery ticket, or to a centrally metered system serving a group of homes;

  • Propane gas used exclusively for heating and used as a fuel for a motor vehicle; and

  • Paraffin and microcrystalline waxes.

Number of Taxpayers/Filing Frequency

662 taxpayers/Quarterly

Basis and Rate

  • 5% of the gross earnings from the sale or use of all petroleum products, with the exception of  Number 2 heating oil used exclusively in vessels engaged in interstate commerce and Number 6 fuel oil used by manufacturers; and

  • 2% of the gross earnings from the sale or use of Number 2 heating oil used exclusively in vessels engaged in interstate commerce and Number 6 fuel oil used by manufacturers.  The tax rate on these products is being reduced by 1% per year until fully exempt on or after July 1, 2002.

PUBLIC SERVICE COMPANIES TAX

Revenue

FY 1998-99 $167,704,143
1999-00 166,263,478
2000-01 180,546,412

Exemptions

  • All sales for resale of water, steam, gas, and electricity to public service corporations and municipal utilities.
  • Gas and Electric sales to manufacturing in SIC codes 2000 through 3999.
  • Natural Gas sold to out-of-state users or entities.
  • Sales by a gas company of natural gas or propane used as a motor vehicle fuel.

Number of Taxpayers/Filing Frequency

117 taxpayers:

79 Public Utility Companies/Quarterly
26 Community Antenna TV Companies/Annually (April 1)
12 Railroad Companies/Annually  (July 1)

Basis and Rate

Community Antenna TV

5%

Railroad

2 - 3.5%

Gas, Electric and Power

5%

Gas and Electric sales to residential customers

4%

Steam

0% (effective 7/1/00)

Residential Credit

The electric, power, and gas companies claimed $10.3M under the one-percent credit attributable to the sale of gas and electric power for residential use.

Residential Credit Claimed FY 2000-01
1st Quarter $547, 771
2nd Quarter 1,478,867
3rd Quarter 3,080,107
4th Quarter 1,248,377
Total $6,355,122
Manufacturing Companies Credit Over $18.9M was claimed in credit for gas and electric sales used directly by a company engaged in a manufacturing production process.
Residential Credit Claimed FY 2000-01
1st Quarter $2,125,852
2nd Quarter 2,776,376
3rd Quarter 3,332,768
4th Quarter 2,263,156
Total $10,498,152

Comparative Data

FY 98-99 FY 99-00 FY 00-01
Community Antenna TV Systems $23,260,210 $24,698,633 $28,640,293
Electric & Power Companies 27,906,578 28,376,064 27,865,890
Gas Companies 29,375,020 32,858,100 50,591,376
Gas and Electric Companies 86,620,610 79,978,795 73,393,178
Railroad Companies 152,116 167,364 55,585
Steam Companies * 386,430 184,515 0
Telecommunications ** 0 7 89.70
Water Companies *** 3,179 0 0
Total Tax $167,704,143 $166,263,478 $180,546,412
* Tax on steam companies repealed July 1, 2000
** Tax on telecommunications repealed on January 1, 1990<
*** Tax on water companies repealed July 1, 1997
 

Electric Restructuring

Effective for calendar quarters commencing on or after January 1, 2000, the gross receipts tax on generation services was eliminated.  However, the rate on transmission and distribution services was increased to 6.8% for residential customers and to 8.5% for non-residential customers (other than manufacturers) as of the same date.  Also, the Competitive Transition Assessment (CTA), the Systems Benefit Charge (SBC) and the charges for energy conservation and renewable energy are subject to the gross receipts tax.

REAL ESTATE CONVEYANCE TAX

Connecticut imposes a tax on the conveyance of real property.  The tax is assessed on the full purchase price of the property and is determined by the classification of the property being conveyed.  Payment of the tax is the responsibility of the seller of the property and must be paid before the deed can be recorded.

Exemptions

  • Deeds which this state is prohibited from taxing under the constitution or laws of the United States;
  • Deeds which secure a debt or other obligation;
  • Deeds to which this state or any of its political subdivisions or their respective agencies is a party;
  • Deeds of release of property which is security for a debt or other obligation;
  • Deeds of partition;
  • Deeds made pursuant to mergers of corporations;
  • Deeds made by subsidiary corporation to its parent corporation for no consideration other than the cancellation or surrender of the subsidiary’s stock;
  • Conveyance of an interest in real property pursuant to a decree of the superior court;
  • Certificates of devise or distribution;
  • Transfers for no consideration between parents and children;
  • An assignment with no consideration of any interest present or future, vested or contingent in real property which endures for a period of time and the termination of which is not fixed or ascertained by a specific number of years; An assignment with no consideration of the unexpired portion of a term or estate for life or of a term or estate for years;
  • Tax deeds;
  • Certain exempt corporation transfers;
  • Any conveyances made on or after May 20, 1992, whereby the realty of a mutual savings institution is conveyed to a reorganized capital stock savings bank or a reorganized capital stock savings and loan association as defined in Title 36 of the Connecticut General Statutes;
  • All transfers between spouses;
  • Any deeds of property located in an entertainment district;
  • Conveyances of burial rights;
  • Land development rights to agricultural land under the state farmland preservation program; and
  • Transfers or conveyances of real estate to effectuate a mere change of identity or form of ownership or organization where there is no change in beneficial ownership.

Basis and Rate

Classification

Rate

Unimproved Land 5%
Nonresidential property other than Unimproved Land 1.0%
Residential Dwelling:

Portion $800,000 or less
Portion that exceeds $800,000

.5%
1.0%
Residential Property other than Residential Dwelling .5%
Delinquent Mortgage .5%
 

Tables I and II on the following pages will show the number of conveyances by price of property and the conveyance tax revenue generated for the same price increments, respectively.

TABLE I

Price of Property FY 1998-99
Number of
Conveyances
FY 1999-00
Number of
Conveyances
FY 2000-01
Number of
Conveyances
Under $30,000.00 49,076 47,615 46,969
30,000 - 39,999.99 2,397 2,207 1,853
40,000 - 49,999.99 2,687 2,456 1,910
50,000 - 59,999.99 3,098 2,839 2,261
60,000 - 69,999.99 3,454 3,083 2,705
70,000 - 79,999.99 3,727 3,437 2,767
80,000 - 89,999.99 4,075 3,830 3,364
90,000 - 99,999.99 3,606 3,574 3,157
100,000 - 109,999.99 3,514 3,540 3,214
110,000 - 119,999.99 3,966 3,913 3,633
120,000 - 129,999.99 4,056 4,175 3,943
130,000 - 139,999.99 3,467 3,339 3,622
140,000 - 149,999.99 2,767 2,957 2,891
150,000 - 159,999.99 2,905 2,817 2,949
160,000 - 169,999.99 2,584 2,555 2,484
170,000 - 179,999.99 2,181 2,183 2,174
180,000 - 189,999.99 1,975 2,010 1,914
190,000 - 199,999.99 1,581 1,533 1,470
200,000 - 249,999.99 6,389 6,526 6,636
250,000 - 299,999.99 4,050 4,607 4,449
300,000 - 499,999.99 6,765 7,555 7,757
500,000 - 599,999.99 1,216 1,474 1,533
600,000 - 699,999.99 855 1,023 1,000
700,000 - 799,999.99 562 759 666
800,000 and over 2,143 2,550 2,574
TOTAL 123,096 122,557 117,895

TABLE II

Price of Property FY 1998-99
Revenue
Generated
FY 1999-00
Revenue
Generated
FY 2000-01
Revenue
Generated
Under $30,000.00 $461,990 $412,770 $356,975
30,000 - 39,999.99 415,230 377,806 321,273
40,000 - 49,999.99 594,783 533,664 426,761
50,000 - 59,999.99 842,563 767,396 612,752
60,000 - 69,999.99 1,111,636 998,249 873,957
70,000 - 79,999.99 1,388,524 1,279,159 1,028,486
80,000 - 89,999.99 1,723,312 1,613,572 1,418,287
90,000 - 99,999.99 1,693,724 1,679,318 1,493,621
100,000 - 109,999.99 1,838,668 1,855,209 1,684,205
110,000 - 119,999.99 2,270,195 2,248,083 2,074,272
120,000 - 129,999.99 2,539,043 2,598,049 2,465,499
130,000 - 139,999.99 2,347,071 2,251,916 2,439,448
140,000 - 149,999.99 2,011,206 2,153,287 2,100,881
150,000 - 159,999.99 2,273,987 2,197,774 2,288,970
160,000 - 169,999.99 2,140,762 2,120,403 2,062,101
170,000 - 179,999.99 1,941,412 1,927,632 1,915,841
180,000 - 189,999.99 1,838,136 1,878,381 1,784,939
190,000 - 199,999.99 1,556,221 1,498,446 1,450,433
200,000 - 249,999.99 7,263,760 7,440,234 7,559,823
250,000 - 299,999.99 5,661,108 6,408,582 6,188,393
300,000 - 499,999.99 13,290,050 14,793,095 15,037,343
500,000 - 599,999.99 3,530,671 4,206,708 4,349,753
600,000 - 699,999.99 3,012,962 3,489,821 3,420,674
700,000 - 799,999.99 2,283,799 3,026,741 2,670,929
800,000 and over 36,262,532 43,956,749 44,186,655
TOTAL $100,293,345 $ 111,713,044 $110,212,271

  REPEALED TAXES

The tax on capital gains, dividends and interest income was eliminated for income years commencing on or after January 1, 1992.  This income is now combined with all other income and subject to the Personal Income Tax.  The revenue collected represents late payments and revenue generated through assessment and compliance programs. Revenue collected for Fiscal Year 2000-01:           $ 189,620       

HAZARDOUS WASTE ASSESSMENT

The assessment imposed on generators of hazardous waste was eliminated as of July 1, 2000.  The revenue collected represents late payments and revenue generated through assessment and compliance programs. Revenue collected for Fiscal Year 2000-01:           $390,114

HOSPITAL GROSS EARNINGS TAX

A tax was imposed on the gross earnings of each hospital in Connecticut.  This tax has been repealed for calendar quarters commencing on or after April 1, 2000.  The revenue collected represents late payments and revenue generated through assessment and compliance programs.  

Revenue collected for Fiscal Year 2000-01:           $334,106


SEED OYSTER TAX

The Seed Oyster Tax is levied on seed oyster harvesters. The tax was established to provide funding for the seeding of state shellfish beds.  All revenue collected from the tax is deposited into a special fund used for the Shellfish Program administered by the Department of Agriculture’s Aquaculture Division.  A parasitic blight has destroyed recent harvests resulting in decreased revenue.

Revenue

FY 1998-99 $10,021
1999-00 308
2000-01 0

Number of Taxpayers / Filing Frequency

23 harvesters / Quarterly

Basis and Rate

10% of the retail value of harvested seed oysters.

SOLID WASTE TAX

The Solid Waste Tax is levied on the owners of commercial resources recovery facilities that process municipal solid waste to reclaim energy.

Revenue

FY 1998-99 $2,353,063
1999-00 2,218,677
2000-01 2,274,489

Number of Taxpayers / Filing Frequency

8 taxpayers / Quarterly

Basis and Rate

$1.00 per ton of solid waste processed.


SUCCESSION TAX

Class AA transfers are to a surviving spouse.  Class A transfers are to immediate family, such as parents or children.  Class B transfers are to other relatives, including siblings, nieces and nephews.  All other transfers, excluding qualifying exempt organizations, are Class C.  The Compromise Class represents transfers whose tax liability was determined by the Department of Revenue Services where contingencies as to the ultimate beneficiary could not be currently determined.

The Connecticut Estate Tax is levied if the amount that the federal government allows as a tax credit for state death taxes exceeds the amount of the Connecticut Succession Tax paid.  The Connecticut Estate Tax recovers the full amount of the federal credit allowed on the transfer, yet it does not increase the tax burden paid by an estate.  In its absence, additional tax in the same amount would be paid to the federal treasury. Recent federal legislation will phase-out the federal credit for state death taxes, thereby eliminating the basis of the Connecticut Estate Tax by 2005.

The Fiduciary Estate Tax, which has been repealed since 1991, was a tax on the income produced from the estate.  A small amount of revenue continues to be received from payments from estates whose income years commenced prior to January 1, 1991, or from assessments.

Due to legislative changes enacted during the 1995 Legislative Session and the November 2001 Special Legislative Session, the Succession Tax will be phased-out and will be eventually repealed for all classes.  Transfers to any Class A beneficiary are now completely exempt for estates of decedents dying on or after January 1, 2001.  Class B transfers are being reduced incrementally and will be fully exempt on or after January 1, 2004.  The phase-out for Class C transfers began in 2001, with full exemption for estates of decedents dying on or after January 1, 2006.

Total Succession, Estate &
Fiduciary Estate Tax
Revenue
FY 1998-99 $237,573,116
1999-00 228,072,249
2000-01 252,801,497
 

Exemptions

  • All Class AA and A transfers;
  • First $600,000 for Class B transfers;
  • First $200,000 for Class C transfers; and
  • All transfers to charitable, literary, scientific, historical, religious and government organizations.

Number of Transfers/Filing Frequency

Class AA:                         169
Class A:                            937
Class B:                         1,287
Class C:                         1,405
Compromises:                174

Return due six months following date of death. Basis and Rate

Connecticut
Succession Tax
Connecticut
Estate Tax
Connecticut Fiduciary
Estate (repealed)
Class AA

Exempt

Allowable Federal Credit

10% of income in excess of $20,000

Class A Exempt
Class B 12.87% - 14.30%
Class C 14.30% - 20.02%
 

Comparative Data

Connecticut Succession Tax
Class FY 1998-99 FY 1999-00 FY 2000-01
In Millions of Dollars
Class AA $  0 $  0 $  0
Class A 97.4 124.4 75.8
Class B 58.3 47.2 34.4
Class C 34.7 36.0 41.9
Compromise 22.7 26.5 22.7
Total $213.1 $234.1 $174.8

TOBACCO PRODUCTS TAX

An excise tax is imposed on all non-cigarette tobacco products such as cigars, stogies, snuff, pipe and chewing tobacco.  The tax is imposed when the tobacco products are manufactured, imported, or purchased by distributors.  Distributors must be licensed annually and remit the tax on a monthly basis.

 

Revenue

FY 1998-99 $4,606,114
1999-00 4,951,833
2000-01 4,464,835

Exemptions

  • Tobacco products exported from the State; and
  • Tobacco products sold to the federal government.

Number of Taxpayers/Filing Frequency

240 distributors/Monthly

Basis and Rate

20% of the wholesale sales price.  However, effective July 1, 2000, snuff tobacco products are taxed at a rate of 40¢ per ounce.


TOURISM ACCOUNT SURCHARGE

A surcharge is levied on the rental and leasing of passenger motor vehicles for a period of thirty consecutive calendar days or less. Revenues generated by the surcharge are deposited into the “Tourism Account” to be allocated for purposes of the strategic marketing plans and challenge grants required under Conn. Gen. Stat. §32-300.

Revenue

FY 1998-99 $4,152,992
1999-00 4,780,821
2000-01 4,876,640

Exemption

The rental or leasing of a motor vehicle pursuant to a written agreement, which has a term of more than thirty days.

Number of Taxpayers / Filing Frequency

23 taxpayers / Monthly
251 taxpayers / Quarterly

Basis and Rate

$1.00 per rental/leasing day or portion thereof, of passenger motor vehicles.


UNRELATED BUSINESS TAXABLE INCOME TAX  

The Unrelated Business Taxable Income Tax is imposed on any trade or business conducted by a tax-exempt organization that does not substantially relate to its tax-exempt purpose.  The tax is paid at the same rate as the Corporation Business Tax. For most taxpayers, the due date is either April 15 or May 15, depending on the entity.  Foreign trusts however, generally have a due date of June 15.

Revenue

FY 1998-99 $2,356,590
1999-00 2,061,711
2000-01 3,735,458
 

Number of Taxpayers / Filing Frequency

240 organizations / Annually

Basis and Rate

7.5% of the unrelated business income of the organization.
No minimum tax is required.

Credits

For the 1999 income year, 17 taxpayers claimed $5,316 in Electronic Data Processing Property Tax Credits.