Conn. Agencies Regs. § 12-426-16a - Sales of or transfers of title to motor vehicles, snowmobiles, vessels and airplanes
(a) General Rule.
(1) Unless specifically exempted, any
transfer of title to or sale of a motor vehicle, snowmobile or vessel is
subject to the sales or use tax, whether or not such motor vehicle, snowmobile
or vessel is or will be registered with the department of motor
vehicles.
(2) Unless specifically
exempted, any transfer of title to or sale of an airplane is subject to the
sales or use tax.
(3) Each person
applying for an original or transferral motor vehicle or snowmobile
registration or vessel certificate of registration number or of registration
decal shall furnish proof to the commissioner of motor vehicles that the sales
or use tax has been paid.
(b) Sale or transfer of title exempt by
virtue of the identity of the seller or transferor.
(1) Upon the purchase of or transfer of title
to a motor vehicle, snowmobile, vessel or airplane from a person who is not a
motor vehicle dealer, a retailer of snowmobiles, a retailer of vessels or a
retailer of airplanes, respectively, the purchaser or transferee shall pay the
use tax on the total purchase price, unless the seller or transferor is:
(A) the United States or an agency
thereof;
(B) the American Red
Cross;
(C) a nonprofit charitable
hospital;
(D) a federally chartered
credit union;
(E) the spouse,
parent, child, brother or sister of the purchaser or transferee, provided a
motor vehicle, snowmobile or vessel is involved, the tax was paid on the last
taxable sale, transfer or use of such motor vehicle, snowmobile or vessel, and
such motor vehicle, snowmobile or vessel was registered in the name of the
seller or transferor for at least sixty days;
(F) a corporation or unincorporated entity,
or a shareholder, owner, member or partner thereof, provided a motor vehicle or
vessel is involved, the tax was paid on the last taxable sale, transfer or use
of such motor vehicle or vessel, such purchase or transfer is in connection
with the organization, reorganization, dissolution or partial liquidation of
such corporation or unincorporated entity, the purchaser or transferee is such
corporation or unincorporated entity, or a shareholder, owner, member or
partner thereof, and any gain or loss to the seller or transferor is not
recognized under the internal revenue code.
(c) Sale or transfer of title exempt by
virtue of the identity of the purchaser or transferee.
(1) Upon the sale of or transfer of title to
a motor vehicle, snowmobile, vessel or airplane, no tax shall be due,
regardless of the identity of the seller or transferor, if the purchaser or
transferee is:
(A) the United States or an
agency thereof;
(B) the American
Red Cross;
(C) a nonprofit
charitable hospital;
(D) a
federally chartered credit union;
(E) the State of Connecticut, its political
subdivisions and its or their respective agencies;
(F) an organization issued an exemption
permit under section
12-426-15;
(G) a corporation or unincorporated entity,
or a shareholder, owner, member or partner thereof, provided a motor vehicle or
vessel is involved, the tax was paid on the last taxable sale, transfer or use
of such motor vehicle or vessel, such sale or transfer is in connection with
the organization, reorganization, dissolution or partial liquidation of such
corporation or unincorporated entity, the seller or transferor is such
corporation or unincorporated entity, or a shareholder, owner, member or
partner thereof, and any gain or loss to the seller or transferor is not
recognized under the internal revenue code;
(H) an ambassador, consul, vice consul or
United Nations delegate, provided such individual is a citizen of the foreign
state which is being represented by such individual, such sale or transfer
directly benefits such individual or such foreign state, and such individual
has been issued a diplomatic exemption permit by the department of revenue
services;
(I) a disabled veteran,
provided such veteran is the recipient of a Veterans Administration grant
toward the purchase of a specially equipped motor vehicle, a specially equipped
motor vehicle is involved, and such exemption from the tax is only to the
extent of the grant. (The amount of the sales price paid by such veteran from
his own funds shall be subject to the tax.)
(d) Sale or transfer of title exempt by
virtue of the nature of the motor vehicle sold or transferred.
(1) No sales or use tax shall be due on the
sale, transfer or use of:
(A) a farm motor
vehicle, provided such vehicle is used directly in an agricultural production
process, such vehicle is not a passenger vehicle, such vehicle, if registered
with the department of motor vehicles, has been issued a farm registration
plate, and the purchaser or transferee issues to the seller or transferor a
Machinery, Materials, Tools and Fuel Certificate under section
12-426-11b;
and
(B) an ambulance or similar
motor vehicle, provided such vehicle is used exclusively to transport medically
incapacitated individuals, and such individuals are under no obligation to pay
for such transportation.
(e) Other exempt sales, transfers or uses.
(1) No sales or use tax shall be due on the
sale or transfer within the state of:
(A) a
motor vehicle, provided such motor vehicle is sold for use exclusively without
this state, and such motor vehicle is not registered with the department of
motor vehicles;
(B) a vessel
(including necessary machinery, equipment and modifications), provided such
vessel is manufactured, and sold or transferred, by a Connecticut shipbuilder,
or is sold or transferred by a Connecticut retailer of vessels, such vessel is
sold or transferred to a nonresident who will not use such vessel within this
state and who sails or transports such vessel from this state immediately upon
delivery; and
(C) an airplane
(including necessary equipment and modifications), provided such airplane is
manufactured, and sold or transferred, by a Connecticut manufacturer, and such
airplane is sold or transferred to a licensed carrier in interstate or foreign
commerce, a foreign state for use without this state, or a nonresident who will
not use such airplane within this state and who flies or transports such
airplane from this state immediately upon delivery.
(2) If, at the time of sale or transfer of a
motor vehicle, snowmobile or vessel without this state, a purchaser or
transferee is a resident of another state, but subsequently becomes a resident
of this state, no use tax shall be due, provided such purchaser or transferee
had registered such motor vehicle, snowmobile or vessel in another state for at
least thirty days prior to the establishment of a Connecticut residence, and
such purchaser or transferee did not purchase such motor vehicle, snowmobile or
vessel for use within this state.
(3) The use tax due from a manufacturer of
motor vehicles which registers a motor vehicle with the department of motor
vehicles shall be measured by an amount equal to one-half of the net sales
price of such motor vehicle to the franchised dealer of such
manufacturer.
(4) The use tax due
from a motor vehicle dealer which replaces a motor vehicle registered by it
(and no longer in its possession or used by it) with another motor vehicle
registered by it shall be measured by an amount equal to the difference between
such dealer's cost for the replacement motor vehicle and the wholesale value of
the replaced motor vehicle at the time of its replacement. (A standard
reference book acceptable to the commissioner of revenue services shall be used
to determine such wholesale value.)
(5) Sales or use tax at a rate of four
percent shall be due on the sale or transfer of a motor vehicle by a motor
vehicle dealer to a member of the armed forces who is stationed on full-time
active duty in this state but who is a permanent resident of another state.
"Full-time active duty" does not include service as a reservist or national
guardsman. A current personal income tax return filed with such other state and
an operator's license issued by such other state may be relied on by such
dealer to establish the permanent residency of such member in such other state.
An affidavit by such member's commanding officer may be relied on by such
dealer to establish full-time active duty at a duty station in this
state.
(f) Trade-ins.
(1) The sales or use tax due on the sale or
transfer of a motor vehicle, snowmobile or vessel, where a motor vehicle,
snowmobile or vessel, respectively, is traded in and a trade-in allowance given
by a motor vehicle dealer, a retailer of snowmobiles or a retailer of vessels,
respectively, shall be measured by the amount of the difference between the
sales price and the trade-in allowance, provided such purchaser or transferee
owns the motor vehicle, snowmobile or vessel for which a trade-in allowance is
given.
(2) All facts concerning a
trade-in allowance must be recited on Form H-13 or Form B-148, whichever is
applicable.
(g) Credit
for tax paid to another jurisdiction.
(1) If a
motor vehicle, snowmobile, vessel or airplane is purchased or transferred
without this state and such purchaser or transferee has paid a sales or use tax
to another state or political subdivision thereof on such purchase or transfer,
the amount of tax so paid shall be an offset against the use tax due to this
state, provided such payment to such other state or political subdivision
thereof preceded a notice of use tax assessment given by this state to such
purchaser or transferee.
(h) Proof of payment of tax.
(1) Prima facie proof of payment of the sales
or use tax to a motor vehicle dealer, a retailer of snowmobiles or a retailer
of vessels which holds a seller's permit issued by the department of revenue
services is evidenced by the presentation to the department of motor vehicles
of Form H-13 or Form B-148, whichever is applicable, completed and signed by
both the retailer and the purchaser.
(2) Upon the sale or transfer of a motor
vehicle, a snowmobile or vessel by a person other than a motor vehicle dealer,
a retailer of snowmobiles or a retailer of vessels, respectively, which holds a
seller's permit issued by the department of revenue services, the purchaser or
transferee shall-
(A) If such motor vehicle,
snowmobile or vessel is to be registered with the department of motor vehicles,
submit a properly completed Form H-13 or Form SU-F-229 (in lieu of filing Form
O-P 186, the individual use tax return) and pay the tax, or
(B) If such motor vehicle, snowmobile or
vessel is not to be registered with the department of motor vehicles, submit a
properly completed Form O-P 186, the individual use tax return, forthwith to
the department of revenue services and pay the tax.
(3) Upon the sale or transfer of an airplane
by a person other than a retailer of airplanes which holds a seller's permit
issued by the department of revenue services, the purchaser or transferee shall
submit a properly completed Form O-P 186, the individual use tax return,
forthwith to the department of revenue services and pay the tax.
(4) If the purchaser or transferee to whom
subdivision (3) or paragraph (B) of subdivision (2) of this subsection applies
holds a seller's permit issued by the department of revenue services, such
purchase or transfer and any tax due thereon shall be reported and paid at the
time the return due from such purchaser or transferee covering the time of such
purchase or transfer is filed.
(i) Affidavits.
(1) A purchaser and a retailer to whom
paragraph (A) of subdivision (1) of subsection (e) pertains shall complete for
submission to the department of revenue services affidavit SUT-16a-1 or the tax
shall be due.
(2) A purchaser and a
shipbuilder or retailer of vessels to whom paragraph (B) of subdivision (1) of
subsection (e) pertains shall complete for submission to the department of
revenue services affidavit SUT-16a-2 or the tax shall be due.
(3) A purchaser and an airplane manufacturer
to whom paragraph (C) of subdivision (1) of subsection (e) pertains shall
complete for submission to the department of revenue services affidavit
SUT-16a-3 or the tax shall be due.
(4) A retailer issued a seller's permit by
the department of revenue services who sells or transfers a vehicle, a vessel
or an airplane without this state shall, along with the purchaser, complete for
submission to the department of revenue services affidavit SUT-16a-4, SUT-16a-5
or SUT- 16a-6, respectively, or the tax shall be due.
(5) A purchaser and a retailer to whom
subdivision (5) of subsection (e) pertains shall complete for submission to the
department of revenue services affidavit SUT-16a-7 or the tax at the rate of
seven and one-half percent shall be due.
(see Forms on following pages)
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Notes
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