Purpose: This Informational Publication answers commonly asked questions about
1. What is the use tax?
Use tax is the tax you pay when
2. What is the use tax rate?
In general, the use tax rate for purchases of taxable goods or services is 6%. However, the tax on computer and data processing services is 1%.
3. On what kinds of goods or services must I pay use tax?
You must pay use tax on nonexempt tangible personal property, whether purchased or leased. Examples of taxable tangible personal property include items of clothing and footwear costing $50 or more, automobiles, appliances, furniture, jewelry, cameras, VCRs, computers, and computer software. Some taxable services include repair services to your television, motor vehicle or computer; landscaping services for your home; or reupholstering services for your household furniture.
4. Are there exemptions from the use tax?
Yes. Some examples are items of clothing and footwear that cost less than $50 or repair and maintenance services to vessels.
5. What if a
You must remit the use tax liability for your purchases to DRS. You are required to file a Connecticut income tax return and report purchases made during the preceding calendar year on your Connecticut Forms CT-1040EZ, Connecticut EZ Resident Income Tax Return, CT-1040, Connecticut Resident Income Tax Return, CT-1040NR/PY, Connecticut Nonresident or Part-Year Resident Income Tax Return, or the Webfile or Telefile, Connecticut Income Tax Return. If you are not required to file a
6. When must individuals pay the use tax?
You must file your
If the purchases are made in connection with a trade or business carried on by an individual, see Question 12.
7. What if I buy taxable goods or services from an out-of-state mail-order company, television shopping channel, or computerized shopping service and the vendor does not charge
If you buy goods or services for use in
8. What if I buy taxable goods or services in another state and the vendor charges sales tax for the other state?
If the goods or services were purchased for use in
Example: You purchased a $1,000 refrigerator in another state, and paid $50 tax to that state. If you bought the refrigerator for use in
9. Is an out-of-state merchant misleading me if he tells me I do not need to pay
Yes. While you may not have to pay sales tax in the state where you bought the goods or services, you must pay
10. Do I owe No. If all the items purchased and brought into 11. Can an out-of-state business, such as a mail-order company, collect Yes. If the business has registered to collect
No. If all the items purchased and brought into
11. Can an out-of-state business, such as a mail-order company, collect
Yes. If the business has registered to collect
12. Does a person engaged in a trade or business have to pay use tax on purchases made for use in the trade or business?
13. What are the use tax filing requirements for motor vehicles, snowmobiles, vessels, and aircraft?
Generally, if the item is not purchased from a retailer, the Connecticut Department of Motor Vehicles collects the use tax when you register a motor vehicle, snowmobile, or vessel. You must report the use tax liability on aircraft on your
14. On what amount do I calculate the use tax?
Calculate the use tax by multiplying the total cost of the taxable goods or services purchased, including separately stated charges such as shipping and handling, by the tax rate (generally 6%).
15. What are the penalties and interest for not paying the use tax?
Effect on Other Documents: Informational Publication 2003(27), Q&A on the Connecticut Individual Use Tax, is superseded and may not be relied upon after the issue date of this Informational Publication.
Effect of This Document: An Informational Publication issued by the Department of Revenue Services (DRS) addresses frequently asked questions about a current position, policy, or practice, usually in a less technical question and answer format.
For Further Information: Call DRS during business hours, Monday through Friday:
1-800-382-9463 (in-state), or
860-297-5962 (from anywhere)
TTY, TDD, and Text Telephone users only may transmit anytime by calling 860-297-4911.
Forms and Publications: Forms and publications are available anytime by:
- Internet: Preview and download forms and publications from the DRS Web site at www.ct.gov/DRS
- Telephone: Call 860-297-4753 (from anywhere), or 1-800-382-9463 (in-state) and select Option 2 from a touch-tone phone.
Paperless Filing Methods (fast, easy, free, and confidential):
For business returns: Use Fast-File to file sales and use taxes, business use tax, room occupancy tax, estimated corporation business tax, business entity tax, or withholding tax returns over the Internet. Visit the DRS Web site at www.ct.gov/DRS and click on File/Register OnLine.
For resident income tax returns: Use WebFile to file personal income tax returns over the Internet. Visit the DRS Web site at www.ct.gov/DRS and click on File/Register OnLine.
DRS E-News Service: Get connected to the latest news from DRS. Receive notification by e-mail of changes to legislation, policies, and procedures. DRS E-News is easy to sign up for – visit www.ct.gov/DRS and follow the directions. Subscription services are available for employer’s withholding tax, Fast-File information, Alerts, News – Press Releases, and Top 100 Delinquency List.
Sales and Use Tax
Individual Use Tax