Sec. 12-431. Tax on casual sales of motor vehicles, vessels, snowmobiles and aircraft.
Sec. 12-431. Tax on casual sales of motor vehicles, vessels, snowmobiles and
aircraft. (a)(1) Except as otherwise provided in subdivision (2) of this subsection, in
case of the purchase of any motor vehicle, snowmobile, vessel or aircraft other than
from a licensed motor vehicle dealer or licensed motor vehicle lessor, a snowmobile
dealer, a licensed marine dealer or a retailer of aircraft, respectively, the receipts therefrom shall not be included in the measure of the sales tax, but the purchaser thereof
shall pay a use tax on the total purchase price thereof to the Commissioner of Revenue
Services, as provided in section 12-411, in the case of tangible personal property purchased from a retailer, and, in the case of motor vehicles, vessels and snowmobiles,
before obtaining an original or transferal registration, in accordance with regulations
prescribed by the Commissioner of Revenue Services and on forms approved by the
Commissioner of Revenue Services and the Commissioner of Motor Vehicles, and, in
the case of aircraft, before obtaining an original or transferal registration, in accordance
with regulations prescribed by the Commissioner of Revenue Services and on forms
approved by the Commissioner of Revenue Services and the Commissioner of Transportation.
(2) No use tax shall be payable in cases of purchase (A) when the purchaser is the
spouse, mother, father, brother, sister or child of the seller, (B) when a motor vehicle
or vessel is sold in connection with the organization, reorganization or liquidation of
an incorporated business, provided the last taxable sale or use of the motor vehicle or
vessel was subjected to a tax imposed by this chapter and the purchaser is the incorporated business or a stockholder thereof, (C) when a motor vehicle is sold in connection
with the organization or termination of a partnership or limited liability company, provided the last taxable sale or use of the motor vehicle was subjected to a tax imposed
by this chapter and the purchaser is the partnership or limited liability company, as the
case may be, or a partner or member, thereof, as the case may be, or (D) when a motor
vehicle which has been declared a total loss pursuant to the provisions of section 14-16c is rebuilt for sale or use, provided the purchaser was subjected to the tax imposed
by this chapter for the last taxable sale of said vehicle.
(b) In order to determine the total purchase price of a motor vehicle for the purposes
of this section, the commissioner shall, by regulation, adopt by reference a book of
valuations, for various purposes, of motor vehicles published by a nationally recognized
organization. The commissioner shall, by regulation, determine which of the various
valuations of motor vehicles contained in any such book is appropriate for the purposes
of this section and such value shall, regardless of the value placed on the motor vehicle
at the time of the purchase by the parties to such transaction, be presumed to be the total
purchase price of such motor vehicle for the purposes of this section unless the purchaser
can prove to the satisfaction of the commissioner that such value is incorrect.
(1951, 1953, June, 1955, S. 1177d; 1957, P.A. 459, S. 1; September, 1957, P.A. 13, S. 3; 1959, P.A. 533; 1969, P.A.
752, S. 14; P.A. 76-199, S. 2, 3; P.A. 77-614, S. 139, 610; P.A. 82-416, S. 1, 3; P.A. 86-73, S. 1, 2; P.A. 88-6, S. 6; 88-7,
S. 2; 88-24, S. 1, 2; P.A. 89-123, S. 7; June Sp. Sess. P.A. 91-3, S. 155, 168; P.A. 95-260, S. 22, 24; P.A. 97-243, S. 31,
67; P.A. 99-173, S. 29, 65; P.A. 00-174, S. 18, 83.)
History: 1959 act clarified language re when use tax not paid and provided additionally that use tax not paid when
transferee is the incorporated or unincorporated business involved or a stockholder, owner, member or partner of such
business; 1969 act included snowmobiles under provisions of section; P.A. 76-199 included boats under provisions of
section; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A.
82-416 amended provision which allows transfer of a motor vehicle owned by a business without imposition of use tax in
the event of dissolution or reorganization of such business and such transfer is to an owner of the business, by providing
that transfer of a boat under such conditions be allowed the same exemption from use tax as in the case of a motor vehicle;
P.A. 86-73 added the provision that in the case of any transfer of a motor vehicle as provided under Subdiv. (a) or (b) of
this section, any property tax applicable to the motor vehicle transferred becoming due prior thereto shall be paid in full
before registration of the motor vehicle transferred may be obtained, effective July 1, 1986, and applicable to such transfers
occurring on or after that date; P.A. 88-6 changed "airplane" to "aircraft" and provided for payment of use tax by a purchaser
of aircraft before obtaining registration; P.A. 88-7 deleted provisions requiring each person eligible for exemption under
use tax for a motor vehicle as allowed in Subdiv. (a) or (b) to furnish evidence that property tax applicable to the motor
vehicle has been paid in full, which provisions were inserted by P.A. 88-7 in Subsec. (3) of Sec. 12-430; P.A. 88-24 restated
provisions allowing exemption from use tax for transfer of a motor vehicle in connection with the organization or termination
of a partnership provided the transfer is to the partnership or a partner thereof; P.A. 89-123 substituted the term "vessel"
for the term "boat" wherever it appeared; June Sp. Sess. P.A. 91-3 added Subsec. (b), concerning the method of valuation
of motor vehicles under this section, effective August 22, 1991, and applicable to sales occurring on or after October 1,
1991; P.A. 95-260 amended Subsec. (a) to add a new Subdiv. (4) to allow exemption from use tax for transfer of a motor
vehicle declared a total loss and rebuilt for sale or use provided transferee was subjected to tax imposed by chapter for last
taxable sale of vehicle, effective June 13, 1995, and applicable to sales or transfers occurring on and after July 1, 1995;
P.A. 97-243 amended Subsec. (a) to add "licensed motor vehicle lessor", effective June 24, 1997, and applicable to sales
occurring on or after October 1, 1997; P.A. 99-173 amended Subsec. (a) to expand the exemption to sales in connection
with the organization or termination of limited liability companies, effective June 23, 1999, and applicable to sales occurring
on or after July 1, 1999; P.A. 00-174 amended Subsec. (a) to delete provision re federal treatment of casual sales for
purposes of this section and to make technical changes for purposes of grammar and organization of this section, effective
May 26, 2000.
See Sec. 14-379 for definition of "snowmobile".
Transfer to corporation under former statute (460b of 1951 Supp.). 144 C. 569.