Bulletin #21

Taxpayer Service Division
Retail Sales of Vehicles to
Nonresident Military Personnel

This Bulletin is revoked by SN 99-5

Public Act 89-251 increases the sales tax rate from 4% to 4.5% on the purchase of a motor vehicle by armed service personnel from a motor vehicle dealer if certain statutory requirements are met:

The purpose of the law is to allow a reduction in the sales tax rate from 8% to 4.5% on the sale of a motor vehicle to armed service personnel who are residents of a state other than Connecticut and who are on full-time active duty in this state under enlistment only. The reduction in the sales tax is not applicable to personnel who are called to active duty for a portion of a year, such as National Guardsmen or Reservists.

The motor vehicle dealer will be obligated to obtain from the purchaser copies of appropriate documents showing that the person is on full-time active duty in the State of Connecticut under enlistment and is a bona fide permanent resident of a state other than Connecticut.

The eligible service personnel must present a copy of their enlistment or, in lieu thereof, an affidavit signed by their commanding officer that they are on full-time active duty in this state under enlistment.

The proof of permanent residency in a state other than Connecticut would include one of the following:

The increased rate of tax is applicable to sales of motor vehicles occurring on or after July 1, 1989.