Connecticut State Department of Revenue Services

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Ruling 89-14, Petroleum Gross Earnings Tax

You have requested a ruling as to when advance deposits for the sale of diesel fuel are subject to gross earnings tax pursuant to Chapter 227 of the Connecticut General Statutes.

The gross earnings tax is calculated on those earnings derived from the first sale within this state of petroleum products. Accordingly, gross earnings tax is not imposed on gross earnings until there is a sale of the product. Advance deposits are not subject to gross earnings until the product is sold.

LEGAL DIVISION

June 12, 1989