SN 96(9)

1996 Legislative Changes Affecting the Petroleum Products Gross Earnings Tax

PURPOSE: The purpose of this Special Notice is to describe the changes made to the petroleum products gross earnings tax during the 1996 session of the Connecticut General Assembly.

STATUTORY AUTHORITY: Conn. Gen. Stat. §12-587(a) as amended by 1996 Conn. Pub. Acts. 183, §3, as amended by 1995 Conn. Pub. Acts 172, §3.

EFFECTIVE DATE: Effective from passage (May 31, 1996).

EXEMPTION FROM THE PETROLEUM PRODUCTS GROSS EARNINGS TAX: 1996 Conn. Pub. Acts 183, §3 amends Conn. Gen. Stat. §12-587(a) by excluding from the definition of "petroleum products" number 2 heating oil that is to be used in a commercial fishing vessel which qualifies for an exemption under Conn. Gen. Stat. §12-412(40). The purchase of a commercial fishing vessel is exempt under Conn. Gen. Stat. §12-412(40) only if the purchaser has been issued a Form OR-256, Commercial Fisherman Permit, by the Department. Commercial fisherman may apply for a Form OR-256, Commercial Fisherman Permit, by filing a properly completed Form REG-14, Application for Commercial Fisherman's Exemption, with the Department. For more information, see PS 93(1.3), Application Procedures for a Commercial Fisherman Exemption Permit. Thus, the definition of "petroleum products" does not include number 2 heating oil that (1) is to be used in a commercial fishing vessel by a person who has been issued a Form OR-256, Commercial Fisherman Exemption Permit, and (2) is purchased by such person on or after the date of issuance of the permit but on or before the date of expiration of such permit. Therefore, with respect to sales made by a distributor on or after May 31, 1996, a distributor's gross earnings from the first sale in Connecticut of number 2 heating oil that (1) is to be used in a commercial fishing vessel by a person who has been issued a Form OR-256, Commercial Fisherman Exemption Permit, and (2) is sold to such person on or after the date of issuance of the permit (but not before May 31, 1996) and on or before the date of expiration of such permit are not subject to petroleum products gross earnings tax.

CERT-116 TO BE REVISED: CERT-116, Exempt Petroleum Products Certificate (Rev. 8/95), will be revised to reflect the amendment made by 1996 Conn. Pub. Acts 183, §3. The Department will issue an Announcement when CERT-116, as revised, is available.

PS 94(4) TO BE REVISED: PS 94(4), Petroleum Products Gross Earnings Tax Exemptions, will also be revised to reflect the amendment made by 1996 Conn. Pub. Acts 183, §3.

EFFECT OF THIS DOCUMENT: A Special Notice is a document that announces a new policy or practice in response to changes in State or federal laws or regulations or to judicial decisions. A Special Notice indicates the Department's informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.

EFFECT ON OTHER DOCUMENTS: None affected. 

SN 96(9)
petroleum products
Issued: 7/29/96