Sec. 12-692. Passenger motor vehicle, rental truck and machinery surcharge. Imposition. Rate. Penalties. Appeals.
Sec. 12-692. Passenger motor vehicle, rental truck and machinery surcharge.
Imposition. Rate. Penalties. Appeals. (a) For purposes of this section:
(1) "Passenger motor vehicle" means a passenger vehicle, which is rented without
a driver and which is part of a motor vehicle fleet of five or more passenger motor
vehicles that are used for rental purposes by a rental company.
(2) "Rental truck" means a (A) vehicle rented without a driver that has a gross
vehicle weight rating of twenty-six thousand pounds or less and is used in the transportation of personal property but not for business purposes, or (B) trailer that has a gross
vehicle weight rating of not more than six thousand pounds.
(3) "Rental company" means any business entity that is engaged in the business of
renting passenger motor vehicles, rental trucks without a driver or machinery in this
state to lessees and that uses for rental purposes a motor vehicle fleet of five or more
passenger motor vehicles, rental trucks or pieces of machinery in this state, but does
not mean any person, firm or corporation that is licensed, or required to be licensed,
pursuant to section 14-52, (A) as a new car dealer, repairer or limited repairer or (B) as
a used car dealer that is not primarily engaged in the business of renting passenger motor
vehicles or rental trucks without a driver in this state to lessees.
(4) "Lessee" means any person who leases a passenger motor vehicle, rental truck
or machinery from a rental company for such person's own use and not for rental to
others.
(5) "Machinery" means heavy equipment without an operator that may be used for
construction, mining or forestry, including, but not limited to, bulldozers, earthmoving
equipment, well-drilling machinery and equipment or cranes.
(b) There is hereby imposed a three per cent surcharge on each passenger motor
vehicle or rental truck rented within the state by a rental company to a lessee for a period
of less than thirty-one days. The rental surcharge shall be imposed on the total amount
the rental company charges the lessee for the rental of a motor vehicle. Such surcharge
shall be in addition to any tax otherwise applicable to any such transaction and shall be
includable in the measure of the sales and use taxes imposed under chapter 219.
(c) There is hereby imposed a one and one-half per cent surcharge on machinery
rented within the state by a rental company to a lessee for a period of less than thirty-one days. The rental surcharge shall be imposed on the total amount the rental company
charges the lessee for the rental of the machinery. Such surcharge shall be in addition
to any tax otherwise applicable to any such transaction, and shall be includable in the
measure of the sales and use taxes imposed under chapter 219. For purposes of this
subsection, such period shall commence on the date any such machinery is rented to
the lessee, and terminate on the date such machinery is returned to the rental company.
(d) Reimbursement for the surcharge imposed by subsections (b) and (c) of this
section shall be collected by the rental company from the lessee and such surcharge
reimbursement, termed "surcharge" in this subsection, shall be paid by the lessee to the
rental company and each rental company shall collect from the lessee the full amount
of the surcharge imposed by said subsections (b) and (c). Such surcharge shall be a debt
from the lessee to the rental company, when so added to the original lease or rental price,
and shall be recoverable at law in the same manner as other debts. The rental contract
shall separately indicate the rental surcharge imposed on each passenger motor vehicle,
truck rental or piece of machinery. The rental surcharge shall, subject to the provisions
of subsection (e) of this section, be retained by the rental company.
(e) (1) On or before February 15, 1997, and the fifteenth of February annually
thereafter, each rental company shall file a report with the Commissioner of Revenue
Services detailing the aggregate amount of personal property tax that is actually paid
by such company to a Connecticut municipality or municipalities during the preceding
calendar year on passenger motor vehicles, rental trucks or pieces of machinery that are
used for rental purposes by such company, the aggregate amount of registration and
titling fees that are actually paid by such company to the Department of Motor Vehicles
of this state during the preceding calendar year on passenger motor vehicles, rental
trucks or pieces of machinery that are used for rental purposes by such company and
the aggregate amount of the rental surcharge that is actually received, pursuant to this
section, by such company during the preceding calendar year on passenger motor vehicles, rental trucks or pieces of machinery that are used for rental purposes by such
company. The report shall also show such other information as the commissioner deems
necessary for the proper administration of this section.
(2) On or before February 15, 1997, and the fifteenth of February annually thereafter, each rental company shall remit to the Commissioner of Revenue Services for deposit in the General Fund, the amount by which the aggregate amount of the rental
surcharge actually received by such company on such vehicles or machinery during the
preceding calendar year exceeds the sum of the aggregate amount of property taxes
actually paid by such company on such vehicles or machinery to a Connecticut municipality or municipalities during the preceding calendar year and the aggregate amount
of registration and titling fees actually paid by such company on such vehicles or machinery to the Department of Motor Vehicles of this state during the preceding calendar year.
(3) For purposes of this subsection, in the case of any rental company that leases a
passenger motor vehicle, rental truck or piece of machinery from another person and
that uses such vehicle or machinery for rental purposes and such lease requires such
rental company to pay the registration and titling fees and the property taxes to such
other person, the rental company shall include (A) in the aggregate amount of registration
and titling fees actually paid by such rental company to the Department of Motor Vehicles of this state, any such registration and titling fees actually paid by such rental company to such other person on such passenger motor vehicle, rental truck or piece of
machinery, and (B) in the aggregate amount of property taxes actually paid by such
rental company to a Connecticut municipality or municipalities, any such property taxes
actually paid by such rental company to such other person on such passenger motor
vehicle or vehicles, rental truck or trucks or one or more pieces of machinery.
(f) Any person who fails to pay any amount required to be paid to the Commissioner
of Revenue Services under this section within the time required shall pay a penalty of
fifteen per cent of such amount or fifty dollars, whichever amount is greater, in addition
to such amount, plus interest at the rate of one per cent per month or fraction thereof
from the due date of such amount until the date of payment. Subject to the provisions
of section 12-3a, the commissioner may waive all or any part of the penalties provided
under this section when it is proven to the satisfaction of the commissioner that the
failure to pay any amount required to be paid to the commissioner was due to reasonable
cause and was not intentional or due to neglect.
(g) The Commissioner of Revenue Services for good cause may extend the time
for making any report and paying any amount required to be paid to the commissioner
under this section if a written request therefor is filed with the commissioner together
with a tentative report which shall be accompanied by a payment of any amount tentatively believed to be due to the commissioner, on or before the last day for filing the
report. Any person to whom an extension is granted shall pay, in addition to the amount
required to be paid, interest at the rate of one per cent per month or fraction thereof from
the date on which such amount would have been due without the extension until the
date of payment.
(h) The provisions of sections 12-548 to 12-554, inclusive, and section 12-555a
shall apply to the provisions of this section in the same manner and with the same force
and effect as if the language of said sections 12-548 to 12-554, inclusive, and section
12-555a had been incorporated in full into this section, except to the extent that any
provision is inconsistent with a provision in this section, and except that the term "tax"
shall be read as "surcharge".
(P.A. 95-294, S. 1, 2; P.A. 96-129, S. 1, 2; June 18 Sp. Sess. P.A. 97-4, S. 6, 11; June 18 Sp. Sess. P.A. 97-11, S. 63,
65; P.A. 98-262, S. 9, 22; P.A. 02-70, S. 85; P.A. 03-278, S. 30; P.A. 05-163, S. 1; P.A. 07-254, S. 4.)
History: P.A. 95-294 effective January 1, 1996, and applicable to rentals made on or after said date; P.A. 96-129
amended Subsec. (a)(2) to exclude motor vehicle repair shop from the definition of rental company, effective July 1, 1996,
and applicable to rentals made on or after said date; June 18 Sp. Sess. P.A. 97-4 transferred filing requirements from the
Secretary of Policy and Management to the Commissioner of Revenue Services, added penalty for failure to file, authorized
the commissioner to extend the time for filing report, provided for the application of Secs. 12-548 to 12-554 and 12-555a
to this section, changed motor vehicle to passenger motor vehicle and made technical changes, effective June 30, 1997;
June 18 Sp. Sess. P.A. 97-11 changed effective date of June 18 Sp. Sess. P.A. 97-4 but without affecting this section; P.A.
98-262 amended Subsec. (a) to revise definition of "rental company" and add definition of "lessee" and added language
in Subsec. (d) to clarify provisions re rental companies that lease passenger vehicles and that are contractually obligated
to pay registration fees and property taxes, effective June 8, 1998, and applicable to calendar years commencing on or
after January 1, 1998; P.A. 02-70 added definition of "rental truck" and made technical changes in Subsec. (a) and added
provisions throughout extending the rental surcharge to rental trucks, effective July 1, 2002; P.A. 03-278 made a technical
change in Subsec. (a)(2)(A), effective July 9, 2003; P.A. 05-163 added Subsec. (a)(5) defining "machinery", added new
Subsec. (c) imposing surcharge on machinery, redesignated existing Subsecs. (c) to (g) as new Subsecs. (d) to (h) and
made conforming changes throughout, effective July 1, 2005; P.A. 07-254 amended Subsec. (c) by adding provision re
when period commences and terminates, effective July 1, 2007.