Connecticut State Department of Revenue Services

SN 93(24)

Tax on Gasoline, Gasohol, and Natural Gas Inventory

PURPOSE: This Special Notice provides information concerning the next occasion on which the motor vehicle fuels tax rate on gasoline, gasohol and natural gas will be increased and the next occasion on which a tax on gasoline, gasohol and natural gas inventory will be imposed.

BACKGROUND: Since its June 1991 Special Session, the Connecticut General Assembly has enacted two laws that will increase the motor vehicle fuels tax on gasoline, gasohol and natural gas in $0.01 or $0.02 per gallon increments on each of 14 different occasions, the first of which was September 1, 1991 and the last of which is January 1, 1997. In conjunction with those tax rate increases, the General Assembly also enacted a law that imposes a tax on the gasoline, gasohol and natural gas inventory of each person who is licensed to sell fuel under Conn. Gen. Stat. Section 14-319 as of the close of business on the day before each of the 14 different occasions when the motor vehicle fuels tax rate is increased.

EFFECTIVE DATE: Effective upon issuance and applicable to gasoline, gasohol and natural gas inventory as of the close of business on December 31, 1993.

STATUTORY AUTHORITY: Conn. Gen. Stat. Section 12-458d(a), as amended by 1993 Conn. Pub. Acts 74, Section 35.

FLOOR TAX: All persons who are licensed to sell fuel under Conn. Gen. Stat. Section 14-319 must take an inventory of gasoline, gasohol and natural gas (gaseous form) as of the close of business on December 31, 1993 (or, for those stations open past midnight, at midnight). An inventory tax return (Form AU-926) must be filed, and a tax of $0.01 per:

  • gallon of gasoline and gasohol and
  • 82.62 cubic feet of natural gas (at 14.73 lbs. of pressure per square inch, 60 degrees Fahrenheit)

must be paid, not later than February 1, 1994.

DIESEL FUEL AND PROPANE: The motor vehicle fuels tax rate on diesel fuel and propane will remain at $0.18 per gallon and will not increase on January 1, 1994. There is no floor tax imposed on the inventory of diesel fuel or propane as of the close of business on December 31, 1993 and no requirement that an inventory of diesel fuel or propane be taken at that time.

EFFECT OF THIS DOCUMENT: A Special Notice is a document that 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 the Department's informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.

FOR FURTHER INFORMATION ON MOTOR VEHICLE FUELS TAX: Call the Excise/Public Services Subdivision of the Audit Division at 860-541-3225. 

SN 93(24)
Motor vehicle fuels tax
Issued: 11/12/93