Transportation Network Company Fee Tax Information
- Who Must Register and File the Transportation Network Company Fee Return
- Transportation Network Company Fee
- How to File
- When to File
- Interest and Penalties
Who Must Register and File the Transportation Network Company Fee Return
Transportation network companies, as defined below, are required to register with the Department of Revenue Services (DRS) for the transportation network company fee.
Transportation network companies that are required to file the Transportation Network Company Fee Return may register online through myconneCT. Go to myconneCT, under Business Registration, click New Business/Need a CT Registration Number? In addition to first completing the registration application using myconneCT, you must complete REG-1 Addendum E, Miscellaneous Taxes, and mail the completed addendum to DRS to register. There is no fee for registering for the transportation network company fee.
Click here to Register Now on myconneCT!
Transportation Network Company Fee
Each transportation network company must pay a fee of thirty cents on each prearranged ride that originates in Connecticut.
Transportation network company means a company, corporation, partnership, trust, association, sole proprietorship or similar organization that operates in Connecticut and uses a digital network to connect transportation network company riders to transportation network company drivers to provide prearranged rides.
Transportation network company does not include the holder of a certificate of public convenience and necessity to operate a taxicab or the holder of a permit to operate a motor vehicle in livery service.
Prearranged ride means transport by a transportation network company driver of a transportation network company rider, (A) beginning when the driver accepts a request from the rider through a digital network, (B) continuing while the driver transports the rider, and (C) ending when the last rider exits the transportation network company vehicle.
How to File
Form TNC-654, Transportation Network Company Fee Return, must be filed and paid electronically using the Taxpayer Service Center (TSC).
When to File
The return is due on or before the last day of the month following each calendar quarter. If the due date falls on a Saturday, Sunday or legal holiday, the return will be considered timely if filed by the next business day.
Interest and Penalties
In general, interest applies to any portion of the fee not paid on or before the original due date of the return. If you do not pay the fee when due, you will owe interest at the rate of 1% per month or fraction of a month until the fee is paid in full.
Late Payment Penalty
If a fee is due, the penalty for underpayment of the fee is 10% of the fee due or $50, whichever is greater.
Penalty for failure to pay electronically
The following graduated penalty amounts will apply if you fail to remit payments electronically:
- First offense – 10% penalty on the amount of the required tax payment, but not more than $2,500;
- Second offense – 10% penalty, but not more than $10,000; and
- Third and subsequent offenses – 10% penalty.