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Bulletin #9

Taxpayers' Information Service - Issued: 4/29/82
Gross Earnings Tax on Petroleum Companies and Distributors
Who Distribute Petroleum Products in This State
This Bulletin is obsoleted by AN 94-6

The 1982 session of the Connecticut General Assembly has enacted Public 82-157 a law which makes Distributors of petroleum products as well as petroleum companies liable for the gross earnings tax on the first sale of petroleum products in this state.

Pursuant to Public Act 82-157, each distributor of petroleum products must register with the Department of Revenue Services and file a return and pay the tax on a quarterly basis.

The rate of tax is 2% on the gross receipts from sales of petroleum products in this state.

A petroleum company or distributor making purchases of petroleum products outside of Connecticut and subsequently importing the product into this state for the purpose of selling the product in this state is subject to the tax.

A distributor purchasing petroleum products from a supplier for sale outside of Connecticut will be entitled to a refund from the supplier upon presentation of proper documentation supporting the claim for refund.

The petroleum company (supplier) refunding the tax to a distributor may credit the amount of refund from its tax liability on its next quarterly return. Documentation received from its customer supporting the refund to the customer must accompany the suppliers quarterly return.

Public Act 82-157 repealed the provision of law pertaining to the inclusion in the petroleum company's gross earnings of the gross earnings of any other company in which the petroleum company owned 25% or more of the stock.

Reporting remains on a quarterly basis, therefore, current taxpayers will file for the month of April 1982 on the present tax return.

However, current taxpayers and all new taxpayers (distributors) must file for the months of May and June 1982 on a revised return which will be available in the near future.

The effective date of Public Act 82-157 is May 1, 1982.

Enclosed is a registration form that must be completed by a distributor and forwarded to the

Department of Revenue Services
Operations Division
Registration Section
25 Sigourney Street
Hartford, Connecticut 06106

Footnote: Public Act 82-157 was approved by both Houses of the Legislature. The Governor's approval and signature is expected within a few days.