CEMA tax seminar held on Aug. 30

Over 60 people attended a lively seminar on sales and fuel taxes held at the CEMA offices earlier this week. Presenting were Edward Shore and Daryl Ostergren, auditors for the CT Department of Revenue Services. Here are some of the key notes presented by DRS at this session.

A frequent question regards taxes on fuels sold for electrical generators. Here is the definitive answer from these auditors.
  • Diesel fuel sold to a portable generator greater than 150 kw is exempt from excise tax and sales tax.
  • Diesel fuel sold to a portable generator less than 150 kw is subject to the excise tax and sales tax.
  • Diesel fuel sold to a fixed generator with a dedicated tank and no pump is exempt from the excise tax, but is subject to the sales tax.
  • Propane fuel sold for use in a residential generator exclusively for backup electricity is subject to the gross earnings tax and is exempt from the sales tax.
  • Propane sold for use in a residential generator primarily for heating but also for use in a backup generator is exempt from the gross earnings tax and sales tax.
In general, sale of propane fuel that is delivered to consumers for use at a residence, for any purpose, is exempt from the sales tax. That means commercial sale is subject to the sales tax (unless to an organization that is sales tax exempt). And fuel not delivered to a residence is subject to the sales tax; e.g. a propane bottle is purchased and picked up at your place of business, or a bottle is refilled at your place of business.

CT sales taxes on environmental and tank work:
  • Testing of soil: commercial testing is subject to the sales tax, residential is not subject to sales tax.
  • Removal of soil: commercial removal is subject to the sales tax, residential is not subject to sales tax.
  • Sale of an underground tank: commercial sale of the UST (parts) is subject to the sales tax, residential is subject to sales tax
  • Labor on installation of a UST: commercial labor install cost is not subject to sales tax; residential labor install is not subject to sales tax
  • Testing of a UST: commercial testing is subject to sales tax; residential is not subject to sales tax
  • Removal of a UST: commercial is not subject to sales tax; residential is not subject to sales tax