Conn. Gen. Stat. § 12-587

Current with legislation from the 2024 Regular and Special Sessions.

Section 12-587 - Definitions. Imposition of tax. Exemptions. Rate. Returns and filing; due date

(a)

(1) As used in this chapter:

(A) "Company" includes a corporation, partnership, limited partnership, limited liability company, limited liability partnership, association, individual or any fiduciary thereof;

(B) "quarterly period" means a period of three calendar months commencing on the first day of January, April, July or October and ending on the last day of March, June, September or December, respectively;

(C) except as provided in subdivision (2) of this subsection, "gross earnings" means all consideration received from the first sale within this state of a petroleum product;

(D) "petroleum products" means those products which contain or are made from petroleum or a petroleum derivative;

(E) "first sale of petroleum products within this state" means the initial sale of a petroleum product delivered to a location in this state;

(F) "export" or "exportation" means the conveyance of petroleum products from within this state to a location outside this state for the purpose of sale or use outside this state; and

(G) "sale for exportation" means a sale of petroleum products to a purchaser which itself exports such products.

(2) For purposes of this chapter, "gross earnings" means gross earnings as defined in subdivision (1) of this subsection, except, with respect to the first sale of gasoline or gasohol within this state, if the consideration received from such first sale reflects a price of gasoline or gasohol sold or used in this state in excess of three dollars per gallon, gross earnings from such first sale shall be deemed to be three dollars per gallon, and any consideration received that is derived from that portion of the price of such gasoline or gasohol in excess of three dollars per gallon shall be disregarded in the calculation of gross earnings. Notwithstanding the provisions of this chapter, the Commissioner of Revenue Services may suspend enforcement activities with respect to this subdivision until all policies and procedures necessary to implement the provision of this subdivision are in place, but in no event shall such suspension extend beyond April 15, 2012.

(b)

(1) Except as provided in subdivision (2) of this subsection, any company that is engaged in the refining or distribution, or both, of petroleum products and that distributes such products in this state shall pay a quarterly tax on its gross earnings derived from the first sale of petroleum products within this state. Each company shall on or before the last day of the month next succeeding each quarterly period render to the commissioner a return on forms prescribed or furnished by the commissioner and signed by the person performing the duties of treasurer or an authorized agent or officer, including the amount of gross earnings derived from the first sale of petroleum products within this state for the quarterly period and such other facts as the commissioner may require for the purpose of making any computation required by this chapter. The rate of tax shall be (A) seven per cent with respect to calendar quarters commencing on or after July 1, 2007, and prior to July 1, 2013; and (B) eight and one-tenth per cent with respect to calendar quarters commencing on or after July 1, 2013.

(2) Gross earnings derived from the first sale of the following petroleum products within this state shall be exempt from tax:

(A) Any petroleum products sold for exportation from this state for sale or use outside this state;

(B) The product designated by the American Society for Testing and Materials as "Specification for Heating Oil D396", as amended from time to time, commonly known as number 2 heating oil, to be used exclusively for heating purposes or to be used in a commercial fishing vessel, which vessel qualifies for an exemption pursuant to subdivision (40) of section 12-412;

(C) Kerosene, commonly known as number 1 oil, to be used exclusively for heating purposes, provided delivery is of both number 1 and number 2 oil, and via a truck with a metered delivery ticket to a residential dwelling or to a centrally metered system serving a group of residential dwellings;

(D) The product identified as propane gas, to be used primarily for heating purposes;

(E) Bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil to be used in any vessel (i) having a displacement exceeding four thousand dead weight tons, or (ii) primarily engaged in interstate commerce;

(F) For any first sale occurring prior to July 1, 2008, propane gas to be used as a fuel for a motor vehicle;

(G) Grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company that, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition;

(H) Number 2 heating oil to be used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under subdivision (40) of section 12-412;

(I) Paraffin or microcrystalline waxes;

(J) For any first sale occurring prior to July 1, 2008, petroleum products to be used as a fuel for a fuel cell, as defined in subdivision (113) of section 12-412;

(K) A commercial heating oil blend containing not less than ten per cent of alternative fuels derived from agricultural produce, food waste, waste vegetable oil or municipal solid waste, including, but not limited to, biodiesel or low sulfur dyed diesel fuel;

(L) Diesel fuel other than diesel fuel to be used in an electric generating facility to generate electricity;

(M) Cosmetic grade mineral oil;

(N) Propane gas to be used as a fuel for a school bus; and

(O) Aviation fuel.

(c)

(1) Any company that imports or causes to be imported into this state petroleum products for sale, use or consumption in this state, other than a company subject to and having paid the tax on such company's gross earnings from first sales of petroleum products within this state, which earnings include gross earnings attributable to such imported or caused to be imported petroleum products, in accordance with subsection (b) of this section, shall pay a quarterly tax on the consideration given or contracted to be given for such petroleum product if the consideration given or contracted to be given for all such deliveries during the quarterly period for which such tax is to be paid exceeds three thousand dollars. The rate of tax shall be (A) seven per cent with respect to calendar quarters commencing on or after July 1, 2007, and prior to July 1, 2013; and (B) eight and one-tenth per cent with respect to calendar quarters commencing on or after July 1, 2013. Fuel in the fuel supply tanks of a motor vehicle, which fuel tanks are directly connected to the engine, shall not be considered a delivery for the purposes of this subsection.

(2) Consideration given or contracted to be given for petroleum products, gross earnings from the first sale of which are exempt from tax under subdivision (2) of subsection (b) of this section, shall be exempt from tax.

(d) The amount of tax reported to be due on such return shall be due and payable on or before the last day of the month next succeeding the quarterly period. The tax imposed under the provisions of this chapter shall be in addition to any other tax imposed by this state on such company.

(e) For the purposes of this chapter, the gross earnings of any producer or refiner of petroleum products operating a service station along the highways or interstate highways within the state pursuant to a contract with the Department of Transportation or operating a service station which is used as a training or test marketing center under the provisions of subsection (b) of section 14-344d, shall be calculated by multiplying the volume of petroleum products delivered by any producer or refiner to any such station by such producer's or refiner's dealer tank wagon price or dealer wholesale price in the area of the service station.

Conn. Gen. Stat. § 12-587

(P.A. 80-71, S. 1, 30; P.A. 82-157, S. 1, 3; P.A. 85-159, S. 13, 19; 85-381, S. 3; 85-469, S. 4, 6; P.A. 87-312, S. 1, 2; P.A. 89-373, S. 2, 10; June Sp. Sess. P.A. 91-3 , S. 146 , 168 ; P.A. 92-177 , S. 6 , 12 ; May Sp. Sess. P.A. 92-17 , S. 50 , 59 ; P.A. 93-74 , S. 37 , 67 ; P.A. 94-101 , S. 2 , 3 ; May Sp. Sess. P.A. 94-4 , S. 23 , 85 ; P.A. 95-160 , S. 64 , 69 ; 95-172 , S. 3 , 4 ; P.A. 96-183 , S. 3 , 4 ; P.A. 97-281 , S. 1 , 3 ; P.A. 98-244 , S. 25 , 35 ; P.A. 99-121 , S. 20 , 28 ; P.A. 00-174 , S. 34 , 80 , 83 ; June Sp. Sess. P.A. 01-6 , S. 20 , 31 , 67 , 85 ; May 9 Sp. Sess. P.A. 02-4 , S. 8 ; P.A. 04-231 , S. 3 ; June Sp. Sess. P.A. 05-4 , S. 40 ; P.A. 06-143 , S. 2 ; P.A. 07-199 , S. 2 ; June Sp. Sess. P.A. 07-1 , S. 137 ; June 11 Sp. Sess. P.A. 08-2, S. 1, 2; P.A. 12-4 , S. 1 ; P.A. 13-232 , S. 3 ; 13-247 , S. 66 ; P.A. 14-222 , S. 9 ; Dec. Sp. Sess. P.A. 15-1 , S. 27 .)

Amended by P.A. 23-0204, S. 368 of the Connecticut Acts of the 2023 Regular Session, eff. 7/1/2023, app. to first sales occurring on or after July 1, 2023.

Amended by P.A. 22-0110, S. 24 of the Connecticut Acts of the 2022 Regular Session, eff. 10/1/2022.

Amended by P.A. 15-0001, S. 27 of the Connecticut Acts of the 2015 Second Special Session, eff. 12/29/2015.

Amended by P.A. 14-0222, S. 9 of the Connecticut Acts of the 2014 Regular Session, eff. 6/13/2014.

Includes within "gross earnings" amounts plaintiff collected as taxes passed through to its customers. 202 Conn. 583 . Cited. 214 C. 444 . Taxability of petroleum product sales is determined according to place at which the products are delivered. 215 Conn. 134 . Cited. 44 CS 407 .

See Sec. 42-234b re price of petroleum products not to include amount in excess of tax liability. See Secs. 13b-50c and 13b-61a re transfers to Connecticut airport and aviation account and Special Transportation Fund.