Questions Frequently Asked About the Dealer Surcharge Program
Lemon Law Surcharge Audit FAQs
What type of vehicles are subject to the $3 fee:
The surcharge applies to passenger vehicles, combination vehicles, commercial vehicles, or motorcycles. Commercial vehicles for the purpose of the lemon law program means trucks under 12,500 gross vehicle weight.
The surcharge does not apply to rental vehicles, enterprise (fleet) vehicles, municipal vehicles or vehicles with state plates.
We sell passenger cars and / or motorcycles to consumers who live in other states and register and/or use their vehicles in those states. Do we have to impose the surcharge on these purchases?
Yes, because the purchaser can utilize the Connecticut Lemon Law Arbitration Program if the vehicle is purchased in this state. The law calls for the collection of the surcharge "by each licensee under section 14-52 of the general statutes engaged in new passenger vehicle or motorcycle sales in this state."
Do I impose the surcharge on a new car or motorcycle that is purchased by another dealership, since they will be using it with their "dealer" plates until they can sell it to a consumer?
No. In such cases, the surcharge will be imposed upon the consumer who ultimately purchases the vehicle from the dealer who used it with "dealer" registration plates.
If I sell a fleet of cars to a non-profit organization, is the sale subject to the surcharge?
Yes, if the vehicles are registered as "passenger," "passenger/commercial (combination)," or "motorcycle." The only sales that are exempt from the Lemon Law surcharge are those made to the federal, state, or municipal governments.
Where do I find the surcharge payment form?
Visit the following website: https://portal.ct.gov/DCP/Lemon-Law/Index-Lemon-Law/The-Lemon-Law-Surcharge-Program-for-Dealers
What type of financial statements are required to be submitted?
Monthly financial statement reports must include all new car sales by the individual dealership. There is no requirement to submit audited financial statements.
Can I make payments online?
Yes. If you prefer to pay the surcharge online with a credit card, email a request to dcp.licenseservices@ct.gov.
Is the surcharge taxable?
No. The Lemon Law surcharge is not subject to sales and use tax.
I have not been receiving notices that payments are due, how do I make sure that my contact information on record is accurate?
Please contact dcp.licenseservices@ct.gov and provide your correct contact information.
Are my financial statements subject to disclosure or the Freedom of Information Act?
No. They are not subject to FOIA based on Section 1-210(b)(5)(A) of the CT General Statutes. These documents are considered trade secrets.
Do I have to show the surcharge as a separate line item on the purchase order or can I include it in the DMV fees?
The $3 surcharge payment must be listed as a separate line item on the purchase order. The payment may not be included in the DMV fees.
Does the dealer have to charge the consumer the $3 fee or can the dealer pay the $3 fee directly?
The dealer may pay the fee on behalf of the consumer.
For Enduro-motorcycles, do I have to pay the $3?
Yes, you have to pay the fee regardless of whether it is registered or not.