Sec. 12-587. Definitions. Imposition of tax. Rate. Returns and filing; due date.
Sec. 12-587. Definitions. Imposition of tax. Rate. Returns and filing; due date.
(a) As used in this chapter: (1) "Company" includes a corporation, partnership, limited
partnership, limited liability company, limited liability 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 all consideration received from the first sale within this state of a petroleum
product; (4) "petroleum products" means those products which contain or are made
from petroleum or a petroleum derivative; (5) "first sale of petroleum products within
this state" means the initial sale of a petroleum product delivered to a location in this
state; (6) "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 (7) "sale for exportation" means a sale of petroleum products to a purchaser
which itself exports such products.
(b) (1) Except as otherwise 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 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.
Except as otherwise provided in subdivision (3) of this subsection, the rate of tax shall
be (A) five per cent with respect to calendar quarters prior to July 1, 2005; (B) five and
eight-tenths per cent with respect to calendar quarters commencing on or after July 1,
2005, and prior to July 1, 2006; (C) six and three-tenths per cent with respect to calendar
quarters commencing on or after July 1, 2006, and prior to July 1, 2007; (D) seven per
cent with respect to calendar quarters commencing on or after July 1, 2007, and prior
to July 1, 2013; and (E) 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 D396-69",
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; (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 exclusively for heating purposes; (E) bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil to be used in any vessel having a displacement exceeding four thousand dead weight tons; (F) for any first sale occurring prior
to July 1, 2008, propane gas to be used as a fuel for a motor vehicle; (G) for any first
sale occurring on or after July 1, 2002, 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 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) for any first sale occurring on or after July 1, 2002,
number 2 heating oil to be used exclusively in a vessel primarily engaged in interstate
commerce, which vessel qualifies for an exemption under section 12-412; (I) for any
first sale occurring on or after July 1, 2000, 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; or (L) for any first sale
occurring on or after July 1, 2007, diesel fuel other than diesel fuel to be used in an
electric generating facility to generate electricity.
(3) The rate of tax on gross earnings derived from the first 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 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, or number 2 heating oil
used exclusively in a vessel primarily engaged in interstate commerce, which vessel
qualifies for an exemption under section 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.
(c) (1) Any company which 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. Except as otherwise provided in subdivision (3) of this subsection, the rate of tax shall be (A) five per cent with respect to calendar quarters commencing prior to July 1, 2005; (B) five and eight-tenths per cent with respect to calendar
quarters commencing on or after July 1, 2005, and prior to July 1, 2006; (C) six and
three-tenths per cent with respect to calendar quarters commencing on or after July 1,
2006, and prior to July 1, 2007; (D) seven per cent with respect to calendar quarters
commencing on or after July 1, 2007, and prior to July 1, 2013; and (E) 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.
(3) The rate of tax on consideration given or contracted to be given for 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 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, or number 2 heating oil
used exclusively in a vessel primarily engaged in interstate commerce, which vessel
qualifies for an exemption under section 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.
(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.
(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.)
History: P.A. 80-71 effective July 1, 1980, and applicable to calendar quarters commencing on or after that date; P.A.
82-157 changed provisions concerning type of company subject to tax from a company engaged primarily in refining and
distribution of petroleum products to a company engaged in the refining or distribution, or both, of petroleum products,
including a new provision that the tax is applicable to gross earnings from sale of any petroleum product which is the first
sale of such product in the state; P.A. 85-159 excluded number 2 heating oil from the definition of "petroleum products"
except when it is sold as diesel fuel and provided that any savings realized by any company from the elimination of the
tax on said product shall be offset by a price decrease in said product, effective May 16, 1985, and applicable to calendar
quarters commencing on or after July 1, 1985; P.A. 85-381 divided section into Subsecs., incorporating all important
definitions in Subsec. (a), added clarification as to the date the return and tax are due and deleted definitions included in
Subsec. (a) as they subsequently appear in this section; P.A. 85-469 revised effective date of P.A. 85-159 but without
affecting this section; P.A. 87-312 excluded propane gas used for residential heating from the definition of "petroleum
products", effective July 1, 1987, and applicable to calendar quarters commencing on or after that date; P.A. 89-373
amended Subdiv. (b) to increase the tax from 2% to 3% of gross earnings and made technical changes in Subsec. (d),
effective July 1, 1989, and applicable to gross earnings derived from sales of petroleum products for calendar quarters
commencing on or after that date; June Sp. Sess. P.A. 91-3 amended Subsec. (b) to increase the rate of the tax from 3%
to 5%, added new Subsec. (c), concerning importation of fuel and eliminated the former Subsec. (d), concerning the savings
from the elimination of the tax on number 2 heating oil, as obsolete, effective August 22, 1991, and applicable to gross
earnings derived from sales of petroleum products for calendar quarters commencing on or after October 1, 1991; P.A.
92-177 amended Subsec. (c) to provide that fuel in the fuel supply tanks of a motor vehicle, which tanks are directly
connected to the engine, shall not be considered a delivery for purposes of this subsection; May Sp. Sess. P.A. 92-17
amended Subsec. (a) to exclude certain marine fuel from the definition of petroleum products, effective June 19, 1992,
and applicable to gross earnings from sales of petroleum products for calendar quarters commencing on or after July 1,
1992; P.A. 93-74 amended Subsec. (a) redefining "petroleum products" to exclude kerosene in certain circumstances,
effective May 19, 1993; P.A. 94-101 amended Subsec. (a) by deleting reference to "state-licensed" suppliers and adding
provision re Internal Revenue Service certificate of registry in Subdiv. (4)(B), effective July 1, 1994 and applicable to
calendar quarters commencing on or after that date; May Sp. Sess. P.A. 94-4 added a new Subsec. (e) re calculation of
gross earnings of any producer or refiner of petroleum products operating a service station along the highways or interstate
highways of the state, effective June 9, 1994, and applicable to taxable years commencing on or after January 1, 1988;
P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section; P.A. 95-172 excluded
earnings prior to January 1, 2000, from the sale of propane as a fuel for a motor vehicle from the definition of gross earnings,
effective July 1, 1995, and applicable to calendar quarters on and after that date; P.A. 96-183 amended Subsec. (a) to add
use by commercial fishing vessels, effective May 31, 1996; P.A. 97-281 amended Subsec. (a) to exclude number 6 fuel
oil used by companies in SIC code classifications 2000 to 3999 and number 2 heating oil used in vessels primarily engaged
in interstate commerce for calendar quarters commencing on or after July 1, 2002, and added Subsec. (b)(2) phasing down
the rate on number 6 fuel oil and number 2 heating oil effective July 1, 1998, and applicable to calendar quarters on and
after that date; P.A. 98-244 reorganized section, made technical changes, added limited liability company and limited
liability partnership and changed the term earnings to consideration, effective June 8, 1998, and applicable to calendar
quarters commencing on or after October 1, 1998; P.A. 99-121 amended Subsec. (c)(1) to change "its use and consumption"
to "sale, use or consumption in this state", effective June 3, 1999, and applicable to calendar quarters commencing on or
after July 1, 1999; P.A. 00-174 amended Subsec. (a)(4) to exclude paraffin and microcrystalline waxes from the definition
of "petroleum products", effective July 1, 2000, and amended Subsecs. (b) and (c) to include references to companies
classified in the North American Industrial Classification System, effective May 26, 2000; June Sp. Sess. P.A. 01-6 made
technical changes in Subsecs. (a) and (b) and amended Subsec. (b)(2) to exempt from taxation propane gas sold for use as
motor vehicle fuel during the period July 1, 2001, to June 30, 2002, effective July 1, 2001, and amended Subsec. (c)(1) to
decrease the threshold for tax liability for imported products from $100,000 to $3,000 per quarterly period, effective July
1, 2001, and applicable to quarterly periods commencing on or after October 1, 2001; May 9 Sp. Sess. P.A. 02-4 amended
Subsec. (b)(2) to extend to July 1, 2004, the exemption for propane used as fuel in Subpara. (F) and to add Subpara. (J)
granting an exemption for fuel used in fuel cells prior to July 1, 2004, effective July 1, 2002; P.A. 04-231 amended Subsec.
(b)(2)(F) to extend the sunset date for the exemption from July 1, 2004, to July 1, 2008, and amended Subsec. (b)(2)(J) to
delete "on or after July 1, 2002, and" and to extend the sunset date for the exemption from July 1, 2004, to July 1, 2008,
effective July 1, 2004; June Sp. Sess. P.A. 05-4 amended Subsecs. (b)(1) and (c)(1) to increase rate of tax annually from
5% in 2005 to 8.1% in 2013, effective July 1, 2005; P.A. 06-143 amended Subsec. (b)(2) to include commercial heating
oil blend containing not less than 10% of alternative fuels derived from agricultural produce, food waste, waste vegetable
oil or municipal solid waste, including, but not limited to, biodiesesl or low sulfur dyed diesel fuel, effective July 1, 2006,
and applicable to income years commencing on or after January 1, 2006; P.A. 07-199 added Subsec. (b)(2)(L) exempting
diesel fuel to be used exclusively in a qualified motor vehicle by a motor carrier, effective July 1, 2007; June Sp. Sess.
P.A. 07-1 amended Subsec. (b)(2)(L) by changing exemption for diesel fuel to diesel fuel other than that used in an electric
generating facility, effective July 1, 2007; June 11 Sp. Sess. P.A. 08-2 amended Subsecs. (b)(1) and (c)(1) to eliminate
rate increase to 7.5% scheduled for July 1, 2008, effective June 17, 2008.
See Sec. 22a-449b re credit of one-third of tax to the Underground Storage Tank Petroleum Clean-up Fund.
Includes within "gross earnings" amounts plaintiff collected as taxes passed through to its customers. 202 C. 583. Cited.
214 C. 444. Taxability of petroleum product sales is determined according to place at which the products are delivered.
215 C. 134.
Subsec. (a):
Subdiv. (4)(A) cited. 44 CS 407.
Subsec. (b):
Cited. 44 CS 407.