Connecticut State Department of Revenue Services

SN 2006(2)

2006 Legislative Changes Affecting the Petroleum Products Gross Earnings Tax Effective July 1, 2006

Purpose: This Special Notice describes the changes made to the petroleum products gross earnings tax during the 2005 and 2006 sessions of the Connecticut General Assembly.

Effective Date: The effective dates of the legislative changes are noted in this publication.
Statutory Authority: Conn. Gen. Stat. §12-587 as amended by 2006 Conn. Pub. Acts 143, §2 and by 2005 Conn. Pub Acts 4, June Special Session, §40.
Exemption for Commercial Heating Oil Containing Certain Alternative Fuels: Effective July 1, 2006, gross earnings derived from the first sale of a commercial heating oil blend containing not less than 10% alternative fuels derived from agricultural produce, food waste, waste vegetable oil, or municipal solid waste, including, but not limited to biodiesel or low sulfur dyed diesel fuel, are exempt from tax. 

Taxpayers may only claim this exemption for a heating oil blend when such blend is used for commercial heating. This exemption may not be claimed for an oil blend used for any other purpose.

Incremental Rate Increase for Petroleum Products Gross Earnings Tax: For calendar quarters beginning on or after July 1, 2006, gross earnings of companies engaged in the refining or distribution (or both) of petroleum products from the first sale within Connecticut of petroleum products are taxed at the rate listed below:

 

on or after

but before

the tax rate is

July 1, 2006

July 1, 2007

6.3 %

July 1, 2007

July 1, 2008

7.0 %

July 1, 2008

July 1, 2013

7.5 %

July 1, 2013

—

8.1 %
Effect on Other Documents: Form OP-161, Petroleum Products Gross Earnings Tax Return; Form OP-218, Petroleum Products Gross Earnings Tax, Tax Certification to Products Purchased in Connecticut But Sold Out of State; Form OP-219 Petroleum Products Gross Earnings Tax, Gross Earnings - Out-of-State Affidavit With Reference to the Sales of Petroleum Products Sold Exclusively for Sale or Use in Another State; and CERT-116, Exempt Petroleum Products Certificate, will be revised to reflect these rate increases and new exemption.

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 Connecticut tax law by the Department of Revenue Services (DRS).

For Further Information on the Petroleum Products Gross Earnings Tax or this Special Notice: For further information on the petroleum products gross earnings tax or this Special Notice, call the Excise Taxes Unit of the Audit Division at 860-541-3224 during business hours, Monday through Friday.

For Further Information: Call DRS during business hours, Monday through Friday:

  • 1-800-382-9463 (in-state); or
  • 860-297-5962 (from anywhere)

TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911. 

 

SN 2006(2)
Petroleum Products Gross Earning Tax
Issued:  06/19/2006