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This Special Notice has been amplified by SN 96(11);
and modified and superseded by PS 98(7)

SN 93(10)

1993 Legislative Changes to the Tourism Fund Surcharge

BACKGROUND:  On July 13, 1992, the Department issued Special Notice:   SN 92(14) to explain the application of the tourism fund surcharge imposed by 1992 Conn. Pub. Acts 184, §5 to 8, inclusive, and applicable to leases or rentals of passenger motor vehicles entered into on or after July 1, 1992 for a term of thirty days or less.   In accordance with the language of Public Act 92-184, the lessor was required to collect a surcharge in the amount of $1.00 per calendar day or portion of a calendar day, up to thirty days, for which the motor vehicle was rented or leased to the lessee.  (For example, if the term of the rental was from 8 a.m. one day to 8 a.m. the following day, the lessor was required to impose a $2.00 surcharge on the rental, even if the lessor charged the lessee for only one rental day.)

PURPOSE:   This Special Notice describes the change made to the calculation of the tourism fund surcharge by 1993 Conn. Pub. Acts 166.

EFFECTIVE DATE:   Effective for leases or rentals of motor vehicles entered into on or after July 1, 1993.

STATUTORY AUTHORITY:  1993 Conn. Pub. Acts 166.


Lessor means any person licensed under Conn. Gen. State. §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).

CALCULATION OF THE SURCHARGE:  For leases or rentals of passenger motor vehicles entered into on or after July 1, 1993, the surcharge shall be at a rate of $1.00 for each day, or a portion of a day, up to thirty days for which the lessor charges the lessee for the lease or rental.  (For example, if the lessor charges one day's rental for a rental that extends from 8 a.m. one day to 8 a.m. the following day, the lessor shall impose only a $1.00 surcharge, even though the rental encompasses two calendar days.)

OTHER PROVISIONS OF THE ACT ARE UNCHANGED:  The remaining provisions of the tourism fund surcharge as explained in SN 92(14) are unchanged:

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.

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.

Exemption from the surcharge applies only to leases or rentals entered into by the United States Government.  (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 exempt.)

All other lease 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.

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.

EFFECT ON OTHER DOCUMENTS:  Special Notice SN 92(14), issued 7/13/92, is modified and superseded by this notice and may no longer be relied upon after the date of issuance of this document.

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: 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 93(10)
Tourism fund surcharge
Issued: 6/23/93