Effective Date: 2012
Statutory Authority: Conn. Gen. Stat. §12-587(a), as amended by 2012 Conn. Pub. Acts 4.
Background: Petroleum refining companies and distributors of petroleum products are subject to tax on their gross earnings derived from the first sales of petroleum products in this state. The tax on companies engaged in refining or distribution of petroleum products is currently imposed at the rate of 7% of gross earnings derived from the first sales of petroleum products in
Application of “Cap” Depends on the Sales Price of Gasoline or Gasohol Exclusive of Other Charges: 2012
Most distributors making first sales in
However, other distributors making first sales in
New Schedules Developed for First Sales in
Schedule A to Form OP-161 is to be completed and submitted to DRS with Form OP-161 by distributors who, in making first sales in
Schedule B to Form OP-161 is to be completed and submitted to DRS with Form OP-161 by distributors who, in making first sales in
The following example is intended to illustrate the use of Form OP-161, Schedule A in connection with the first sale in
Example A: Distributor X sells 100,000 gallons of gasohol during the second quarter of 2012. Distributor X separately states the PPGET on its invoices to its customers. Distributor X charges $3.07 per gallon during the second quarter of 2012. Because the price of the gasohol exceeds $3.00 per gallon, Distributor X is required to complete Schedule A. The instructions for Line 1 of Schedule A require the distributor to enter the total gallons from first sales in
The following example is intended to illustrate the use of Form OP-161, Schedule B in connection with the first sale in
Example B: Distributor Y sells 100,000 gallons of gasohol during the second quarter of 2012. Distributor Y does not separately state the PPGET on its invoices to its customers. Distributor Y charges $3.30 per gallon during the second quarter of 2012. Because the price of the gasohol exceeds $3.225 per gallon, Distributor Y is required to complete Schedule B. The instructions for Line 1 of Schedule B require Distributor Y to enter the total gallons from first sales in
Revised Form OP-161: DRS is currently revising Form OP-161, Petroleum Product Gross Earnings Tax Return, which is to be mailed or e-mailed to taxpayers in time for the June 2012 filing period.
DRS Enforcement of 2012
In consideration of this, DRS will not impose tax penalties or take other enforcement action related to good faith efforts to implement the pricing requirements in this legislation on or before April, 15, 2012. For a reasonable period of time thereafter, not to extend beyond July 15, 2012, evidence of technical impracticability despite good faith efforts will be considered by the Commissioner of Revenue Services in mitigation of interest or penalties that may be assessed for non-compliance with the provisions of 2012 Conn. Pub. Acts 4.
For More Information on the Petroleum Products Gross Earnings Tax: Call the Excise Taxes Unit at 860-541-3224 during business hours Monday through Friday, during business hours.
Effect on Other Documents: None affected.
Effect of This Document: A Special Notice 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 an informal interpretation of
Forms and Publications: Visit the DRS website at www.ct.gov/DRS to download and print
Business and individual taxpayers can use the
File Electronically: You can choose to get first-time filer information and filing assistance, or can log directly into the TSC to file returns and pay taxes.
Pay Electronically: You can pay taxes for tax returns that cannot be filed through the TSC. Log in and select the Make Payment Only option. Designate a payment date up to the due date of the tax and mail a paper return to complete the filing process.
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Petroleum Products Gross Earnings Tax