Petroleum Product Gross Earnings Tax Information
- Who Must Complete a Registration Application and File a Petroleum Product Gross Earnings Tax Return
- When to File
- Where to File
- Electronic Payment Options
- Interest and Penalties
Who Must Complete a Registration Application and File a Petroleum Product Gross Earnings Tax Return
The following Businesses must register for the Petroleum Product Gross Earnings Tax:
Under Conn. Gen. Stat. § 12-587(b), the petroleum products gross earnings tax applies to all businesses engaged in the refining or distribution, or both, of petroleum products in Connecticut. Those businesses must pay a quarterly tax at the rate of 8.1% of gross earnings in each taxable quarter derived from the first sale of petroleum products in Connecticut.
Under Conn. Gen. Stat § 12-587(c), any business other than those subject to and having paid tax under Conn. Gen. Stat. § 12-587(b) where a business imports, or causes to be imported, petroleum products into Connecticut for sale, use, or consumption in Connecticut, the business must pay a quarterly tax of 8.1% of the consideration given or contracted to be given for the products, on which the tax has not been imposed, where the consideration given for those products exceeds $3,000 in any one quarter.
Definitions
Gross earnings means all consideration received from the first sale of petroleum products within Connecticut but does not include the amount of state or federal excise taxes on motor vehicle fuel or diesel fuel.
Petroleum products means those products that contain or are made from petroleum or petroleum derivatives, except paraffin or microcrystalline waxes. Petroleum products include acid oil, alkylates, aromatic chemicals, asphalt and asphaltic materials, benzene, butadiene, petroleum coke, gasoline, greases, hydrocarbon fluids, jet fuels, kerosene, liquefied petroleum gases, mineral jelly, mineral oils, mineral waxes, naphtha, naphthenic acids, fuel, lubricating and illuminating oils, nonmedicinal petrolatums, bituminous road materials, road oils, solvents, and tar or residuum.
Businesses subject to the tax must file a quarterly Form OP-161, Petroleum Products Gross Earnings Tax Return, on or before the last day of the month following the taxable period.
Businesses that are required to file the Petroleum Product Gross Earnings Tax may file online through myconneCT or file by mail.
Use myconneCT to file taxes, make payments, view filing history, and communicate with the agency simply and more efficiently on virtually any mobile device, including laptops, tablets, and smartphones, 24 hours a day, 7 days a week.
Click here to File, Pay, or Register Now on myconneCT!
Petroleum Product Gross Earnings tax payments (e.g., return payments) can be made electronically.
DRS myconneCT
Visit myconneCT to make an electronic payment. After logging in to myconneCT, find your tax account on the Summary screen, select the Make a Payment link, and choose your payment method.
Pay by Direct Payment: Using this option authorizes DRS to electronically withdraw a payment from your bank account (checking or savings) on a date you select up to the due date.
Pay by Credit Card or Debit Card: You may elect to pay your tax liability using a credit card (American Express®, Discover®, Master Card®, Visa®) or comparable debit card. A convenience fee will be charged by the credit card service provider. The convenience fee is generally 2.35% of the payment amount, with a minimum charge of $3.95. You will be informed of the amount of the fee and may elect to cancel the transaction. Your payment will be effective on the date that you make the charge.
At the end of the transaction, you will receive a confirmation number for your records. As a reminder, even if you pay electronically, you must still file your return by the due date. Tax not paid on or before the due date will be subject to penalty and interest.
ACH Credit
ACH credit method users should consult with their banking institution for guidelines to ensure that payment is received timely. (Taxpayers must pre‑register with the DRS Electronic Commerce Unit (ECU) prior to using this option). The taxpayer initiates an electronic payment through their banking institution. This payment must be sent in the ACH standard CCD+TXP format. For detailed information and a list of FAQs, review Informational Publication 2021(5), Filing and Paying Connecticut Taxes Electronically.
Pay by mail
Petroleum Product Gross Earnings tax payments (e.g., return payments) can be made by mail. If you pay by mail, make check payable to: Commissioner of Revenue Services. DRS may submit your check to your bank electronically.
In general, interest and penalty apply to any portion of the tax not paid on or before the original due date of the return.
Interest
Interest for late payment is calculated at 1% (.01) of the tax per month or fraction of the month from the due date to the date of payment
Penalties
The penalty for late payment or underpayment of Petroleum Product Gross Earnings tax is 10% of the tax due or $50, whichever is greater. The late filing penalty is not applicable if a late payment penalty is applicable.