Substitute House Bill No. 6863
Substitute House Bill No. 6863
PUBLIC ACT NO. 97-281
AN ACT CONCERNING THE GROSS EARNINGS TAX ON
CERTAIN FUEL CONSUMED BY INDUSTRIAL CUSTOMERS AND
VESSELS PRIMARILY ENGAGED IN INTERSTATE COMMERCE
AND EXEMPTING DIESEL FUEL SOLD FOR USE IN CERTAIN
GENERATORS FROM THE MOTOR VEHICLE FUELS TAX.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 12-587 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in this chapter: (1) "Company"
includes a corporation, partnership, limited
partnership, association, individual or any
fiduciary thereof; (2) "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; (3) "gross earnings"
means those earnings derived from the first sale
within this state of a petroleum product, but does
not include earnings in a taxable year commencing
prior to January 1, 2000, from the sale of propane
gas as a fuel for a motor vehicle and (4)
"petroleum products" means those products which
contain or are made from petroleum or a petroleum
derivative, but [shall] DOES not mean (A) the
product designated by the American Society for
Testing and Materials as "Specification for
Heating Oil D396-69", 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 section 12-412, (B) kerosene, commonly
known as number 1 oil, 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, (C) the product
identified as propane gas to be used exclusively
for heating purposes, or (D) bunker fuel oil,
intermediate fuel, marine diesel oil and marine
gas oil for use in any vessel having a
displacement exceeding four thousand dead weight
tons. FOR CALENDAR QUARTERS COMMENCING ON OR AFTER
JULY 1, 2002, PETROLEUM PRODUCTS SHALL NOT INCLUDE
GRADE NUMBER 6 FUEL OIL, AS DEFINED IN REGULATIONS
ADOPTED PURSUANT TO SECTION 16a-22c, TO BE USED
EXCLUSIVELY BY A COMPANY WHICH, 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 NUMBER 2 HEATING OIL USED EXCLUSIVELY IN A
VESSEL PRIMARILY ENGAGED IN INTERSTATE COMMERCE,
WHICH VESSEL QUALIFIES FOR AN EXEMPTION UNDER
12-412.
(b) [Any] (1) EXCEPT AS PROVIDED IN
SUBDIVISION (2) OF THIS SUBSECTION, ANY company
which is engaged in the refining or distribution,
or both, of petroleum products and which
distributes such products in this state shall pay
a quarterly tax at the rate of five per cent of
its gross earnings derived from the 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, under oath of its treasurer or the
person performing the duties of treasurer or of an
authorized agent or officer, a return on forms
prescribed or furnished by the commissioner,
including the amount of gross earnings derived
from the 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.
(2) THE RATE OF TAX DERIVED FROM THE SALE OF
GRADE NUMBER 6 FUEL OIL, AS DEFINED IN REGULATIONS
ADOPTED PURSUANT TO SECTION 16a-22c, TO BE USED
EXCLUSIVELY BY A COMPANY WHICH, 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 NUMBER 2 HEATING OIL USED EXCLUSIVELY IN A
VESSEL PRIMARILY ENGAGED IN INTERSTATE COMMERCE,
WHICH VESSEL QUALIFIES FOR AN EXEMPTION UNDER
12-412 SHALL BE: (A) FOUR PER CENT WITH RESPECT TO
CALENDAR QUARTERS COMMENCING ON OR AFTER JULY 1,
1998, AND PRIOR TO JULY 1, 1999; (B) THREE PER
CENT WITH RESPECT TO CALENDAR QUARTERS COMMENCING
ON OR AFTER JULY 1, 1999, AND PRIOR TO JULY 1,
2000; (C) TWO PER CENT WITH RESPECT TO CALENDAR
QUARTERS COMMENCING ON OR AFTER JULY 1, 2000, AND
PRIOR TO JULY 1, 2001; AND (D) ONE PER CENT WITH
RESPECT TO CALENDAR QUARTERS COMMENCING ON OR
AFTER JULY 1, 2001, AND PRIOR TO JULY 1, 2002.
GROSS EARNINGS FROM SALES AS PROVIDED IN THIS
SUBDIVISION SHALL NOT BE SUBJECT TO THE PROVISIONS
OF THIS CHAPTER WITH RESPECT TO CALENDAR QUARTERS
COMMENCING ON OR AFTER JULY 1, 2002.
(c) Any company which imports or causes to be
imported into this state petroleum products for
its use and consumption, other than a company
which is subject to and which has paid the tax on
such petroleum products in accordance with
subsection (b) of this section, shall pay a
quarterly tax at the rate of five per cent of 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 one hundred thousand dollars.
For the purposes of this subsection, "use"
includes the sale of imported petroleum products
in the regular course of business. 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.
(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.
Sec. 2. Subsection (a) of section 12-458 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a)(1) Each distributor shall, on or before
the twenty-fifth day of each month, render a
return to the commissioner. Each return shall be
signed by the person required to file the return
or by his authorized agent but need not be
verified by oath. Any return required to be filed
by a corporation shall be signed by an officer of
such corporation or his authorized agent. Such
return shall state the number of gallons of fuel
sold or used by him during the preceding calendar
month, on forms to be furnished by the
commissioner, and shall contain such further
information as the commissioner shall prescribe.
The commissioner may make public the number of
gallons of fuel sold or used by the distributor,
as contained in such report, notwithstanding the
provisions of section 12-15 or any other section.
For purposes of this section, fuel sold shall
include but not be limited to the transfer of fuel
by a distributor into a receptacle from which fuel
is supplied or intended to be supplied to other
than such distributor's motor vehicles.
(2) On said date and coincident with the
filing of such return each distributor shall pay
to the commissioner for the account of the
purchaser or consumer a tax on each gallon of such
fuels sold or used in this state during the
preceding calendar month of twenty-six cents on
and after January 1, 1992, twenty-eight cents on
and after January 1, 1993, twenty-nine cents on
and after July 1, 1993, thirty cents on and after
January 1, 1994, thirty-one cents on and after
July 1, 1994, thirty-two cents on and after
January 1, 1995, thirty-three cents on and after
July 1, 1995, thirty-four cents on and after
October 1, 1995, thirty-five cents on and after
January 1, 1996, thirty-six cents on and after
April 1, 1996, thirty-seven cents on and after
July 1, 1996, thirty-eight cents on and after
October 1, 1996, and thirty-nine cents on and
after January 1, 1997; and in lieu of said taxes,
each distributor shall pay a tax on each gallon of
gasohol, as defined in section 14-1, sold or used
in this state during such preceding calendar
month, of twenty-five cents on and after January
1, 1992, twenty-seven cents on and after January
1, 1993, twenty-eight cents on and after July 1,
1993, twenty-nine cents on and after January 1,
1994, thirty cents on and after July 1, 1994,
thirty-one cents on and after January 1, 1995,
thirty-two cents on and after July 1, 1995,
thirty-three cents on and after October 1, 1995,
thirty-four cents on and after January 1, 1996,
thirty-five cents on and after April 1, 1996,
thirty-six cents on and after July 1, 1996,
thirty-seven cents on and after October 1, 1996,
and thirty-eight cents on and after January 1,
1997; and, in lieu of such rate, on each gallon of
diesel fuel, propane or natural gas sold or used
in this state on and after September 1, 1991,
during such preceding calendar month, of eighteen
cents.
(3) Said tax shall not be payable on such fuel
as may have been (A) sold to the United States,
(B) sold to a municipality of this state, for use
by any contractor performing a service for such
municipality in accordance with a contract,
provided such fuel is used by such contractor
exclusively for the purposes of and in accordance
with such contract, (C) sold to a municipality of
this state, a transit district of this state, or
this state, at other than a retail outlet, for
governmental purposes and for use in vehicles
owned and operated, or leased and operated by such
municipality, such transit district or this state,
(D) sold to a person licensed as a distributor in
this state under section 12-456, (E) transferred
from storage within this state to some point
without this state, (F) sold to the holder of a
permit issued under section 12-458a for sale or
use without this state, (G) sold to the holder of
a permit issued under subsection (63) of section
12-412, provided (i) such fuel is not used in
motor vehicles licensed or required to be licensed
to operate upon the public highways of this state,
unless such fuel is used in motor vehicles
registered exclusively for farming purposes, (ii)
such fuel is not delivered, upon such sale, to a
tank in which such person keeps fuel for personal
and farm use and (iii) an affidavit, prescribed as
to form by the Commissioner of Revenue Services,
affirming that such fuel is used exclusively for
farming purposes, is submitted by such person to
the distributor, (H) sold exclusively to furnish
power for an industrial plant in the actual
fabrication of finished products to be sold, or
for an agricultural production process, or for the
fishing industry, (I) sold exclusively for heating
purposes, [or] (J) sold exclusively to furnish
gas, water, steam or electricity, if delivered to
consumers through mains, lines or pipes, OR (K)
DIESEL FUEL SOLD EXCLUSIVELY FOR USE IN PORTABLE
POWER SYSTEM GENERATORS THAT ARE LARGER THAN ONE
HUNDRED FIFTY KILOWATTS.
(4) Each distributor, when making a taxable
sale, shall furnish to the purchaser an invoice
showing the quantities of fuel sold, the
classification thereof under the provisions of
this chapter and the amount of tax to be paid by
the distributor for the account of the purchaser
or consumer.
(5) If any distributor fails to pay the amount
of tax reported to be due on its report within the
time specified under the provisions of this
section, there shall be imposed a penalty equal to
ten per cent of such amount due and unpaid, or
fifty dollars, whichever is greater. The tax shall
bear interest at the rate of one per cent per
month or fraction thereof from the due date of the
tax until the date of payment.
(6) If no return has been filed within three
months after the time specified under the
provisions of this chapter, the commissioner may
make such return at any time thereafter, according
to the best information obtainable and the form
prescribed. There shall be added to the tax
imposed upon the basis of such return an amount
equal to ten per cent of such tax, or fifty
dollars, whichever is greater. The tax shall bear
interest at the rate of one per cent per month or
fraction thereof from the due date of such tax to
the date of payment.
(7) Subject to the provisions of section
12-3a, the commissioner may waive all or part of
the penalties provided under this chapter when it
is proven to his satisfaction that the failure to
pay any tax was due to reasonable cause and was
not intentional or due to neglect.
(8) A distributor who is exclusively making
sales of fuel on which the tax imposed by this
chapter is not payable may be permitted to file
reports, under oath or affirmation, on a form
prescribed by said commissioner, as specified in
regulations adopted in accordance with the
provisions of chapter 54. The regulations may
authorize reports to be submitted less frequently
than monthly but not less frequently than annually
if the commissioner determines that enforcement of
this section would not be adversely affected by
less frequent filings. The report shall detail (A)
the persons from whom the fuel was purchased, (B)
the persons to whom, the quantities in which and
the dates on which such fuel was sold, and (C) any
other information deemed necessary by the
commissioner.
Sec. 3. This act shall take effect July 1,
1997, and be applicable to calendar quarters
commencing on or after said date except that
section 1 shall take effect July 1, 1998, and be
applicable to calendar quarters on or after said
date.
Approved June 26, 1997