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Bulletin 1

Taxpayer's Information Division

August 15, 1979

The following is a digest of legislation affecting the Sales and Use Tax passed by the 1979 Session of the Legislature. All became effective July 1, 1979.

Public Act 79-33

Walkers for use by invalids or handicapped persons are exempt from the Sales and Use Tax, Section 12-412(s).

Public Act 79-400

An exemption permit will be issued to Senior Citizens Centers qualifying pursuant to Section 17-137(c) and duly certified by the assessor of the town to permit tax free purchases of merchandise. A Regulation #15 certificate must be given to the seller for each nontaxable sale by the organization.

Public Act 79-419

That portion of a driver service contract which is for services entirely outside Connecticut is not subject to the Sales Tax.

Public Act 79-547

Excludes from tax any Solar Energy System and its component parts, the primary use of which is the reduction in the use of conventional fuel.

In order for a system to be exempt, it must meet standards and specifications set by the Secretary of the Office of Policy and Management.

Public Act 79-584

Removes from taxability as a service the following: computer programming, sign construction, photo finishing, duplicating and photo copying, making them taxable as sales of tangible personal property.

Public Act 79-627

Exempts from the sales tax fuel used in certain high-occupancy commuter vehicles on which the motor fuel tax has been refunded.

Changes in the Corporation Business Tax as a result of legislation passed by the 1979 General Assembly:

Public Act 79-474

Grants a Corporation Business Tax credit for employers participating in state approved cooperative work education-diversified occupations programs involving high school study and part-time employment. Effective on passage, June 12, 1979, and is applicable to income years commencing on or after January 1, 1980.

Public Act 79-475

Grants a Corporation Business Tax credit for apprenticeship training in the machine tool and retail trades. Effective on passage, June 12, 1979, and is applicable to income years ending on or after January 1, 1979.

Changes in the Gasoline and Special Fuels Tax as a result of Legislation passed by the 1979 General Assembly:

Public Act 79-32

Eliminates any record keeping requirements as to Diesel Fuel purchased from a retail dealer. Effective April 17, 1979.

Public Act 79-221

Exempts from the Special Fuels Tax any fuel sold for use in any of the following: (1) ambulances owned by hospitals (2) ambulances owned by any non-profit civic organization approved by the commissioner (3) motor vehicles registered exclusively for farming purposes (4) vehicles designed and constructed primarily for purposes other than highway use and which do not have the essential characteristics of a motor vehicle as determined and approved by the commissioner (5) motor vehicles owned and operated or leased and operated by a transit district formed under the provisions of Chapter 103A or any special act, for the purposes of such transit district (6) any high-occupancy commuter vehicle manufactured and equipped in such a manner as to provide a seating capacity of at least ten but not more than fifteen passengers, the primary purpose of which shall be the transport of persons between home and work on a daily basis, which is owned by or leased to a corporation, an employee of a corporation or an employee of any local, state or federal government unit or agency located in Connecticut, provided such vehicle has a minimum daily passenger usage of nine persons to and from work, and further provided the exemption from tax in accordance with this section shall only be applicable to such fuel used exclusively in transporting such persons between home and work on a daily basis. Effective July 1, 1979.

Public Act 79-627

Assesses a tax of ten cents a gallon on the sale of "gasohol" by a distributor. Effective July 1, 1979.

Public Act 70-486

Capital Gains from small business corporation (Sub-S) subject to tax under Chapter 208 of the Connecticut General Statutes are exempt from tax under Chapter 224 of the Capital Gains and Dividends Tax. These gains would be a deduction on line three of the current tax return.

Public Act 79-586

This act clarifies the wording of Section 12-509 concerning the waiver of penalties on late filed returns.