RULING NO. 2014-1
SALES AND USE TAXES
UTILITY EXEMPTION (GENERAL)
PROPANE USED IN HOME GENERATORS
A homeowner is purchasing a standby generator for his home, which he plans to fuel with propane from a tank to be installed on his property that will only supply the generator.
Whether the sale of propane gas to be used to operate a standby generator at a residential dwelling is subject to sales and use taxes.
The sale of propane gas to be used to operate a generator at a residential dwelling is exempt from sales and use taxes.
Sales of tangible personal property, including sales of propane gas, are generally subject to Connecticut Sales and Use Taxes. See Conn. Gen. Stat. §12-407. However, sales of propane gas for use in any residential dwelling are exempted by the provisions of Conn. Gen. Stat. § 12-412(3)(A), which states in relevant part as follows:
December 18, 2014