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This Special Notice has been modified and superseded by SN 93(10)

SN 92(14)

Tourism Fund Surcharge on the Lease or Rental
of Passenger Motor Vehicles for a Term of 30 Consecutive Calendar Days or Less

PURPOSE: This Special Notice describes the tourism fund surcharge imposed by 1992 Conn. Pub. Acts 184 on the lease or rental of a passenger motor vehicle for a term of 30 consecutive calendar days or less.

EFFECTIVE DATE: Effective upon issuance and applicable to leases or rentals of passenger motor vehicles entered into on or after July 1, 1992.

STATUTORY AUTHORITY: 1992 Conn. Pub. Acts 184, §§5 to 8, inclusive.


"Lessor" means any person licensed under Conn. Gen. Stat. §14-15 to engage in the business of leasing or renting motor vehicles in this state.

"Passenger motor vehicle" means a passenger motor vehicle, as defined in Conn. Gen. Stat. §14-1(59).

IMPOSITION OF SURCHARGE: The tourism fund surcharge is imposed on every lessor for the rental or lease of a passenger motor vehicle that is delivered to a lessee in Connecticut (regardless of where the vehicle is subsequently used) for a term of 30 consecutive calendar days or less.  Reimbursement for the surcharge is to be collected by the lessor from the lessee, and shall be a debt from the lessee to the lessor that is recoverable at law in the same manner as other debts.  The amount of the surcharge is one dollar per calendar day, or portion thereof, for which a motor vehicle is leased or rented to the lessee.  No surcharge shall be imposed for the rental or lease of a passenger motor vehicle pursuant to a written agreement having a term of more than 30 consecutive calendar days.

CALENDAR DAYS: Because the surcharge is imposed for each calendar day or portion thereof, the surcharge imposed on the lessor, and to be collected from the lessee, on the lease or rental of a passenger motor vehicle that encompasses two calendar days (for example, from 3 p.m. to the same time on the following day) is $2.

ONLY LEASES OR RENTALS TO UNITED STATES GOVERNMENT ARE EXEMPT: Leases or rentals of passenger motor vehicles to the United States Government are exempt from the tourism fund surcharge.  (However, a lease or rental to an employee of the United States governmental agency is not exempt, unless the agency is billed directly and pays for the lease or rental with a check drawn on such agency's checking account. A lease or rental that is billed to a credit card issued to an employee of a United States governmental agency is not exempt.)  All other leases or rentals of passenger motor vehicles for a term of 30 consecutive calendar days or less are subject to the surcharge, including those leases or rentals that are exempt from sales and use taxes.

SURCHARGE EXCLUDABLE FROM MEASURE OF SALES AND USE TAXES:  In calculating the measure of the sales and use taxes, the tourism fund surcharge is not includable and is not subject to sales and use taxes.

FILING REQUIREMENTS:  The surcharge is due and payable on or before the last day of the month following the end of each calendar quarter.  Any lessor whose total surcharge liability for the twelve-month period ending on the previous September 30th was $4,000 or more shall be notified of the requirement to file returns and pay the surcharge on a monthly basis.  The return (Form OP-337) shall show the number and rental period of all passenger motor vehicles that were leased by the lessor during the preceding reporting period and the amount of surcharges for such period.

PENALTY AND INTEREST: If the surcharge is not paid when due, a penalty of 15% of the surcharge due or $50.00, whichever is greater, will be imposed and the surcharge due will bear interest at the rate of 1 2/3% per month or fraction thereof from the due date to the date of payment.  Under Conn. Gen. Stat. §12-30, if the lessor owes no surcharge but does not timely file the return, a penalty of $50.00 will be imposed.


FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Web home page at Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

SN 92(14)
Tourism fund surcharge
Issued 7/13/92