Conn. Gen. Stat. § 12-411

Current with legislation from the 2023 Regular and Special Sessions.

Section 12-411 - The use tax

(1)Imposition and rate.

(A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchased from any retailer for storage, acceptance, consumption or any other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, or the storage, acceptance, consumption or any other use in this state of tangible personal property which has been manufactured, fabricated, assembled or processed from materials by a person, either within or without this state, for storage, acceptance, consumption or any other use by such person in this state, to be measured by the sales price of materials, at the rate of six and thirty-five-hundredths per cent of the sales price of such property or services, except, in lieu of said rate:

(B)

(i) At a rate of fifteen per cent of the rent paid to a hotel or lodging house for the first period not exceeding thirty consecutive calendar days;

(ii) At a rate of eleven per cent of the rent paid to a bed and breakfast establishment for the first period not exceeding thirty consecutive calendar days;

(C) With respect to the storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse of such individual at a rate of four and one-half per cent of the sales price of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

(D)

(i) With respect to the acceptance or receipt in this state of labor that is otherwise taxable under subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;

(ii)

(I) With respect to the storage, acceptance or other use of a vessel in this state, at the rate of two and ninety-nine-hundredths per cent, except that such storage, acceptance or other use shall be exempt from such tax if such vessel is docked in this state for sixty or fewer days in a calendar year;

(II) With respect to the storage, acceptance or other use of a motor for a vessel or a trailer used for transporting a vessel in this state, at the rate of two and ninety-nine-hundredths per cent;

(III) With respect to the storage, acceptance or other use of dyed diesel fuel, as defined in subsection (d) of section 12-487, exclusively for marine purposes, at the rate of two and ninety-nine-hundredths per cent;

(E)

(i) With respect to the acceptance or receipt in this state of computer and data processing services purchased from any retailer for consumption or use in this state occurring on or after July 1, 2001, at the rate of one per cent of such services, and

(ii) with respect to the acceptance or receipt in this state of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;

(F) With respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from such tax;

(G) With respect to the rental or leasing of a passenger motor vehicle for a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;

(H) With respect to the acceptance or receipt in this state of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price. For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14-1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

(I) With respect to the acceptance or receipt in this state of meals, as defined in subdivision (13) of section 12-412, sold by an eating establishment, caterer or grocery store; and spirituous, malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed at bars and soda fountains, or in connection therewith; in addition to the tax imposed under subparagraph (A) of this subdivision, at the rate of one per cent;

(J)

(i) For calendar quarters ending on or after September 30, 2019, the commissioner shall deposit into the regional planning incentive account, established pursuant to section 4-66k, six and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision and ten and seven-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (G) of this subdivision;

(ii) For calendar quarters ending on or after September 30, 2018, the commissioner shall deposit into the Tourism Fund established under section 10-395b ten per cent of the amounts received by the state from the tax imposed under subparagraph (B) of this subdivision;

(K)

(i) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2023, the commissioner shall deposit into the municipal revenue sharing account established pursuant to section 4-66l seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023; and

(ii) For calendar months commencing on or after July 1, 2023, the commissioner shall deposit into the Municipal Revenue Sharing Fund established pursuant to section 4-66p seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision; and

(L)

(i) For calendar months commencing on or after July 1, 2017, the commissioner shall deposit into said Special Transportation Fund seven and nine-tenths per cent of the amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

(ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

(iii) For calendar months commencing on or after July 1, 2019, but prior to July 1, 2020, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventeen per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

(iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 twenty-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

(v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle; and

(vi) For calendar months commencing on or after July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 one hundred per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle.

(2)Liability for tax. Every person storing, accepting, consuming or otherwise using in this state services or tangible personal property purchased from a retailer for storage, acceptance, consumption or any other use in this state and every person storing, accepting, consuming or otherwise using in this state tangible personal property which has been manufactured, fabricated, assembled or processed from materials purchased from a retailer by such person, either within or without this state, for storage, acceptance, consumption or any other use by such person in this state is liable for the tax. Such person's liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer engaged in business in this state or from a retailer who is authorized by the commissioner, under such regulations as the commissioner may prescribe, to collect the tax and who is, for the purposes of this chapter relating to the use tax, regarded as a retailer engaged in business in this state, given to the purchaser pursuant to subdivision (3) of this section is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

(3)Collection by retailer. Every retailer engaged in business in this state and making sales of services or of tangible personal property for storage, acceptance, consumption or any other use in this state, not exempted under this chapter, shall, at the time of making a sale or, if the storage, acceptance, consumption or other use is not then taxable hereunder, at the time the storage, acceptance, consumption or use becomes taxable, collect the use tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the commissioner. For the purpose of uniformity of tax collection by the retailer the tax brackets set forth in subdivision (3) of section 12-408 pertaining to the sales tax shall be employed in the computation of the tax imposed by this section.

(4)Tax as debt. Amount collected deemed a special fund in trust for state. The tax required to be collected by the retailer constitutes a debt owed to the retailer by the person purchasing tangible personal property or services from such retailer. The amount of tax, when so collected, shall be deemed to be a special fund in trust for the state of Connecticut.

(5)Unlawful advertising. The provisions of subdivision (4) of section 12-408 pertaining to the sales tax shall apply with equal force to the use tax.

(6)Separate statement of tax. The tax required to be collected by the retailer from the purchaser shall be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sales check or other proof of sales.

(7)Unlawful acts. Any person violating the provisions of subdivision (3), (5) or (6) of this section shall be fined five hundred dollars for each offense.

(8)Registration by retailers. Every retailer selling services or tangible personal property for storage, acceptance, consumption or any other use in this state shall register with the commissioner and give the name and address of all agents operating in this state, the location of all distribution or sales houses or offices or other places of business in this state and such other information as the commissioner may require.

(9)Presumption of purchase for use; resale certificate. For the purpose of the proper administration of this chapter and to prevent evasion of the use tax and the duty to collect the use tax, it shall be presumed that services or tangible personal property sold by any person for delivery in this state is sold for storage, acceptance, consumption or other use in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless such person takes from the purchaser a certificate to the effect that the services or property is purchased for resale.

(10)Effect of certificate. The certificate relieves the person selling the services or property from the burden of proof only if taken in good faith from a person who is engaged in the business of selling services or tangible personal property and who holds the permit provided for by section 12-409 and who, at the time of purchasing the services or tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the service or property will be sold or will be used for some other purpose.

(11)Form of certificate. The certificate shall be signed by and bear the name and address of the purchaser, shall indicate the number of the permit issued to the purchaser and shall indicate the general character of the service or tangible personal property sold by the purchaser in the regular course of business. The certificate shall be substantially in such form as the commissioner may prescribe.

(12)Liability of purchaser.

(A) If a purchaser who gives a certificate makes any storage or use of the service or property other than retention, demonstration or display while holding it for sale in the regular course of business, the storage or use is taxable as of the time the service or property is first so stored or used.

(B) Notwithstanding the provisions of subparagraph (A) of this subdivision, any storage or use by a certificated air carrier of an aircraft for purposes other than retention, demonstration or display while holding it for sale in the regular course of business shall not be deemed a taxable storage or use by such carrier as of the time the aircraft is first stored or used by such carrier, irrespective of the classification of such aircraft on the balance sheet of such carrier for accounting and tax purposes.

(13)Presumption of purchase from retailer. It shall be presumed that tangible personal property shipped or brought to this state by the purchaser was purchased from a retailer for storage, use or other consumption in this state.

(14)Conditions under which a purchase of service shall be considered a purchase for resale. Exceptions.

(A) For the purpose of the proper administration of this chapter and to prevent evasion of the use tax, a purchase of any service described in subdivision (37) of subsection (a) of section 12-407 shall be considered a purchase for resale only if the service to be resold is an integral, inseparable component part of a service described in said subdivision that is to be subsequently sold by the purchaser to an ultimate consumer. The purchaser of the service for resale shall maintain, in such form as the commissioner requires, records that substantiate:

(i) From whom the service was purchased and to whom the service was sold;

(ii) the purchase price of the service; and

(iii) the nature of the service to demonstrate that the service was an integral, inseparable component part of a service described in subdivision (37) of subsection (a) of section 12-407 that was subsequently sold to a consumer.

(B) Notwithstanding the provisions of subparagraph (A) of this subdivision, no purchase of a service described in subdivision (37) of subsection (a) of section 12-407 by a purchaser shall be considered a purchase for resale if such service is to be subsequently sold by the purchaser to an ultimate consumer that is affiliated with the purchaser in the manner described in subparagraph (A) of subdivision (62) of section 12-412.

(15)Sales to certain affiliates. For the purpose of the proper administration of this chapter and to prevent evasion of the use tax, no purchase of any service by a purchaser shall be considered a purchase for resale if such service is to be subsequently sold by the purchaser, without change, to an ultimate consumer that is affiliated with the purchaser in the manner described in subparagraph (A) of subdivision (62) of section 12-412.

Conn. Gen. Stat. § 12-411

(1949 Rev., S. 2095; 1951, 1953, June, 1955, S. 1165d; November, 1955, S. N146; 1957, P.A. 553, S. 3; 1961, P.A. 574, S. 3, 4; June, 1969, P.A. 1, S. 20; June, 1971, P.A. 5, S. 107; 8, S. 5; 1972, P.A. 285, S. 3; P.A. 73-288, S. 3, 8; P.A. 74-73, S. 3, 5; 74-338, S. 74, 94; P.A. 75-2, S. 3, 5; 75-213, S. 26-32, 53; P.A. 76-114, S. 20, 21; 76-322, S. 21, 27; P.A. 77-370, S. 11, 13; 77-604, S. 77, 84; P.A. 78-71, S. 2, 5; P.A. 80-71, S. 19, 30; June Sp. Sess. P.A. 83-1, S. 9, 15; P.A. 85-240, S. 4, 6; P.A. 88-6, S. 4; 88-314, S. 24, 54; P.A. 89-123, S. 4; 89-251, S. 199, 203; P.A. 90-148, S. 23, 34; June Sp. Sess. P.A. 91-3 , S. 113 , 168 ; June Sp. Sess. P.A. 91-14 , S. 24 , 30 ; May Sp. Sess. P.A. 92-5 , S. 27 , 37 ; May Sp. Sess. P.A. 92-17 , S. 27 , 59 ; P.A. 93-332 , S. 2 , 5 , 40 , 42 ; P.A. 93-361 , S. 12 , 17 ; P.A. 95-359 , S. 1 , 19 ; P.A. 96-232 , S. 2 , 3 ; P.A. 97-243 , S. 19 , 20 , 67 ; P.A. 98-110 , S. 7 , 27 ; 98-244 , S. 18 , 35 ; P.A. 99-173 , S. 15 , 65 ; P.A. 00-174 , S. 6 , 7 , 83 ; June Sp. Sess. P.A. 01-6 , S. 2 , 65 , 85 ; P.A. 02-3 , S. 3 ; 02-103 , S. 7 ; May 9 Sp. Sess. P.A. 02-1 , S. 70 ; P.A. 03-2 , S. 26 ; 03-225 , S. 8 ; June 30 Sp. Sess. P.A. 03-1, S. 96; June Sp. Sess. P.A. 09-3 , S. 110 ; P.A. 11-6 , S. 97 ; 11-61 , S. 183 ; P.A. 13-184 , S. 78 ; 13-247 , S. 319 ; P.A. 14-60 , S. 7 ; 14-122 , S. 97 ; P.A. 15-244 , S. 73 ; P.A. 17-147 , S. 13 , 33 ; June Sp. Sess. P.A. 17-2 , S. 638 ; P.A. 18-26 , S. 17 , 18 ; 18-81 , S. 63 .)

Amended by P.A. 23-0204, S. 74 of the Connecticut Acts of the 2023 Regular Session, eff. 7/1/2023.

Amended by P.A. 19-0117, S. 324 of the Connecticut Acts of the 2019 Regular Session, eff. 10/1/2019.

Amended by P.A. 19-0117, S. 318 of the Connecticut Acts of the 2019 Regular Session, eff. 7/1/2019.

Amended by P.A. 18-0026, S. 18 of the Connecticut Acts of the 2018 Regular Session, eff. 10/1/2018.

Amended by P.A. 18-0026, S. 17 of the Connecticut Acts of the 2018 Regular Session, eff. 10/1/2018.

Amended by P.A. 17-0002, S. 638 of the Connecticut Acts of the 2017 Special Session, eff. 10/31/2017.

Amended by P.A. 17-0147, S. 13 of the Connecticut Acts of the 2017 Regular Session, eff. 10/1/2017.

Amended by P.A. 15-0244, S. 76 of the Connecticut Acts of the 2015 Regular Session, eff. 10/1/2015.

Amended by P.A. 15-0244, S. 73 of the Connecticut Acts of the 2015 Regular Session, eff. 7/1/2015.

Amended by P.A. 14-0122, S. 97 of the Connecticut Acts of the 2014 Regular Session, eff. 10/1/2014.

Amended by P.A. 14-0060, S. 7 of the Connecticut Acts of the 2014 Regular Session, eff. 10/1/2014.

The use tax is not a tax on property but is in the nature of an excise tax upon the privilege of using, storing or consuming property. 134 C. 295 . The use tax is meant to complement the sales tax. 168 Conn. 597 . Cited. 198 C. 168 ; Id., 413; 206 Conn. 253 ; 210 Conn. 401 ; 213 C. 365 ; 214 C. 292 ; 217 Conn. 220 ; 235 Conn. 393 ; Id., 737; 236 Conn. 613 ; Id., 701; 238 C. 761 ; 240 Conn. 531 . Cited. 2 CA 165 ; judgment reversed, see 198 Conn. 413 ; 24 Conn.App. 72 ; 42 Conn.App. 310 ; 43 Conn.App. 744 . Cited. 19 CS 334 ; 39 Conn.Supp. 234 ; 44 CS 1; Id., 133. Subsec. (1): Intended to complement sales tax by creating equality of taxation of purchasers. 145 Conn. 161 . Three conditions of Subsec. must exist to create taxability. 152 C. 649 . Tax imposed on rental payments from July 1, 1975, does not result in double taxation since use tax paid on property brought into the state before that date was imposed on lessors and levied on use, while tax after that date is imposed on lessees and levied on rent. 174 Conn. 51 . Cited. 211 Conn. 246 ; 221 C. 166 . Conversion of raw materials into identifiably different building components precludes levy of the use tax on these raw materials. 222 Conn. 49 . Cited. 6 Conn.App. 661 . Subsec. (2): "Storage" and "consumption" must be incident to ownership for tax to apply. 145 Conn. 161 . Subsec. (3): 1999 revision of Subsec. and Sec. 12-430(7) should be construed so that taxpayer who pays the applicable sales and use tax and obtains receipts pursuant to Subsec. is relieved from liability for failure to withhold under Sec. 12-430(7)(C) . 293 C. 363 . Cited. 5 Conn. Cir. Ct. 403. Subsec. (6): Failure of contract to mention tax is not such a failure to describe condition of sale as to make reservation of title in seller invalid as against attaching creditor of buyer; unilateral contract does not require signature or acknowledgment of seller. 144 Conn. 311 .