SN 91(14)

1991 Legislative Change Sales and Use Taxes on
Motor Vehicles

PURPOSE: The purpose of this notice is to provide motor vehicle dealers and rental agencies with a worksheet for calculating sales and use taxes due in August and September.

This notice is intended to provide general information to taxpayers and should not be considered a ruling or regulation of the Department of Revenue Services.

EFFECTIVE DATE (S): August 22, 1991.

STATUTORY AUTHORITY: 1991 Conn. Pub. Acts 3, (June Spec. Sess.) §103-120 155 and 165; 1991 Conn. Pub. Acts 179.

Effective August 22, 1991--Motor vehicle dealers: The Sales and Use Taxes rate is 6% on the sale, rental, and lease of all motor vehicles, new or used, made by a motor vehicle dealer or rental agency on or after August 22, 1991. With respect to existing leases, the 6% rate applies to rental payments for that portion of the lease term that is on or after August 22, 1991 and the 8% rate applies to that portion before August 22, 1991.

NOTE: Sales of motor vehicles by other than motor vehicle dealers remain subject to the 8% rate until October 1, 1991, when the rate is reduced to 6%;

The Sales and Use Tax Return will not be modified by this department to reflect the difference in the tax rate of sales, leases or rentals of motor vehicles from other general sales.

For the months which will be affected by the different rates we have enclosed a worksheet, Form OP-315. Use one worksheet for the month of August and one for September to calculate an adjustment which will be entered on Line 66 of your Sales and Use Tax Return.

The worksheet must be attached to the Sales and Use Tax Return when you file it.

NOTE: Effective October 1, 1991, all sales will be subject to 6% sales tax. Therefore, there will be no reason for a worksheet to be attached to the Sales and Use Tax Returns for the month of October and thereafter. 

SN 91(14)
Sales and Use Taxes
Issued 8/91
TPS/0009/891