Connecticut Law requires that all sales and leases of new passenger cars and motorcycles in Connecticut include a dealer surcharge. The $3.00 per vehicle surcharge must be collected by the new car dealer from the car buyer. The surcharges must be sent to the Department of Consumer Protection by March 31^st annually. A late fee of $2.00 per vehicle applies to any payments made after March 31^st. The surcharge and late fee funds are deposited into a restricted-use appropriation account, and used to fund the activities of the State’s Lemon Law Arbitration Program.

This program provides an independent arbitration mechanism for settling disputes between consumers and automobile manufacturers regarding defective new cars and motorcycles. 

Sales or leases of new passenger motor vehicles or motorcycles to the State of Connecticut, the federal government, and municipal governments are exempt from the New Automobile Warranties Account surcharge. All other sales and leases of new passenger motor vehicles and motorcycles are subject to the surcharge, including those sales or leases that are exempt from sales and use tax.

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