SN 98(9)

1998 Legislative Changes Affecting
The Motor Vehicle Fuels Tax

PURPOSE: The purpose of this Special Notice is to describe the changes made to the motor vehicle fuels tax during the 1998 session of the Connecticut General Assembly.

EFFECTIVE DATE: The effective dates of legislative changes are noted herein.

STATUTORY AUTHORITY: Conn. Gen. Stat. §12-458, as amended by 1998 Conn. Pub. Acts 128, §1 and 1998 Conn. Pub. Acts 190, §1; Conn. Gen Stat. §12-458b, as amended by 1998 Conn. Pub. Acts 244, §20; and Conn. Gen. Stat. §12-459, as amended by 1998 Conn. Pub. Acts 190, §2 and 1998 Conn. Pub. Acts 244, §21.

TAX RATE DECREASE: Effective July 1, 1998, the motor vehicle fuels tax rate on the sale or use of:

NO CHANGE IN DIESEL FUEL TAX RATE: The motor vehicle fuels tax rate on diesel fuel does not change on July 1, 1998, and remains at 18¢ per gallon.

NEW EXEMPTION FOR FUEL SOLD TO A MUNICIPALITY FOR USE IN SCHOOL BUSES: Effective July 1, 1998, all fuel sold to a municipality for use exclusively in school buses (as defined in Conn. Gen. Stat. §14-275) is exempt from motor vehicle fuels tax, even if the fuel is not used exclusively in connection with a municipal contract.

NEW REFUND FOR FUEL USED IN SCHOOL BUSES: Effective for fuel used on and after July 1, 1998, tax paid on fuel sold for use in any school bus (as defined in Conn. Gen. Stat. §14-275) is eligible for refund under the provisions of Conn. Gen. Stat. §12-459, whether the fuel is sold to a municipality or to any other person.

MUNICIPAL CONTRACTORS MAY FILE QUARTERLY MOTOR VEHICLE FUELS TAX RETURNS: Effective October 1, 1998, contractors performing services for municipalities or school districts who obtain tax-free fuel from municipalities or school districts to perform such services in accordance with contracts shall file and pay taxes on a quarterly basis, when such fuel is not used in accordance with such contracts. Contractors who use fuel exclusively in school buses (as defined in Conn. Gen. Stat. §14-275) need not pay tax on such fuel.

DUE DATE FOR FILING MOTOR VEHICLE FUELS TAX REFUND CLAIMS: Effective for fuel used on or after January 1, 1998, the deadline for filing for refunds under Conn. Gen. Stat. §12-459 for tax paid on such fuel has been extended from March 31 of the succeeding calendar year to May 31 of the succeeding calendar year.

REVISED TAX RETURNS: All distributors will be mailed revised motor vehicle fuels tax returns that reflect the rate changes.

EFFECT ON OTHER DOCUMENTS: None affected.

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: For further information concerning motor vehicle fuels tax, call the Excise/Public Services Subdivision at 860-541-3225.

If you have questions about Connecticut taxes, please call the Department of Revenue Services during business hours, Monday through Friday:

• 860-297-5962 (Hartford calling area or from out-of-state); or
• 1-800-382-9463 (toll-free from within Connecticut) 

SN 98(9)
Motor Vehicle Fuels Tax
Issued: 6/19/98