Sec. 12-408. The sales tax. (1) Imposition and rate of sales tax. For the privilege
of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407,
at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the
rate of six per cent of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail or from the rendering of any services constituting a sale
in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu
of said rate of six per cent, (A) at a rate of twelve per cent with respect to each transfer
of occupancy, from the total amount of rent received for such occupancy of any room
or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive
calendar days, (B) with respect to the sale of a motor vehicle to any individual who is
a member of the armed forces of the United States and is on full-time active duty in
Connecticut and who is considered, under 50 App USC 574, a resident of another state,
or to any such individual and the spouse thereof, at a rate of four and one-half per cent
of the gross receipts of any retailer from such sales, provided such retailer requires and
maintains a declaration by such individual, prescribed as to form by the commissioner
and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's
state of residence under 50 App USC 574, (C) (i) with respect to the sales of computer
and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998,
at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate
of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three
per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent,
on or after July 1, 2001, at the rate of one per cent, (ii) with respect to sales of Internet
access services, on and after July 1, 2001, such services shall be exempt from such tax,
(D) with respect to the sales of labor that is otherwise taxable under subparagraph (C)
or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and
repair or maintenance services on vessels occurring on and after July 1, 1999, such
services shall be exempt from such tax, (E) with respect to patient care services for
which payment is received by the hospital on or after July 1, 1999, and prior to July 1,
2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such
services shall be exempt from such tax. The rate of tax imposed by this chapter shall
be applicable to all retail sales upon the effective date of such rate, except that a new
rate which represents an increase in the rate applicable to the sale shall not apply to any
sales transaction wherein a binding sales contract without an escalator clause has been
entered into prior to the effective date of the new rate and delivery is made within ninety
days after the effective date of the new rate. For the purposes of payment of the tax
imposed under this section, any retailer of services taxable under subparagraph (I) of
subdivision (2) of subsection (a) of section 12-407, who computes taxable income,
for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such
services may make payments related to such tax for the period during which such income
is received, without penalty or interest, without regard to when such service is rendered.
(2) Retailer collects tax from consumer. Credit allowed for tax remitted to state
on worthless account receivable. (A) Reimbursement for the tax hereby imposed shall
be collected by the retailer from the consumer and such tax reimbursement, termed "tax"
in this and the following subsections, shall be paid by the consumer to the retailer and
each retailer shall collect from the consumer the full amount of the tax imposed by this
chapter or an amount equal as nearly as possible or practicable to the average equivalent
thereof. Such tax shall be a debt from the consumer to the retailer, when so added to
the original sales price, and shall be recoverable at law in the same manner as other
debts except as provided in section 12-432a. The amount of tax reimbursement, when
so collected, shall be deemed to be a special fund in trust for the state of Connecticut.
(B) Whenever such tax, payable by the consumer (i) with respect to a charge account
or credit sale occurring on or after July 1, 1984, is remitted by the retailer to the commissioner and such sale as an account receivable is determined to be worthless and is actually
written off as uncollectible for federal income tax purposes, or (ii) to a retailer who
computes taxable income, for purposes of taxation under the Internal Revenue Code of
1986, or any subsequent corresponding internal revenue code of the United States, as
from time to time amended, on the cash basis method of accounting with respect to a
sale occurring on or after July 1, 1989, is remitted by the retailer to the commissioner
and such sale as an account receivable is determined to be worthless, the amount of such
tax remitted may be credited against the tax due on the sales tax return filed by the
retailer for the monthly or quarterly period, whichever is applicable, next following the
period in which such amount is actually so written off, but in no event shall such credit
be allowed later than three years following the date such tax is remitted, unless the credit
relates to a period for which a waiver is given pursuant to subsection (g) of section 12-415. The commissioner shall, by regulations adopted in accordance with chapter 54,
provide standards for proving any such claim for credit. If any account with respect to
which such credit is allowed is thereafter collected by the retailer in whole or in part,
the amount so collected shall be included in the sales tax return covering the period in
which such collection occurs. The tax applicable in any such case shall be determined
in accordance with the rate of sales tax in effect at the time of the original sale.
(C) (i) Any person required to collect tax in accordance with this subsection who
demonstrates to the satisfaction of the Commissioner of Revenue Services by July first
of any year that, in any two quarterly periods as described in section 12-414, within the
most recent four consecutive quarterly periods, such person was a materialman as such
term is used in chapter 847, who has at least fifty per cent of such person's sales of
building materials to contractors, subcontractors or repairmen for the improvement of
real property, and is authorized by said chapter to file a mechanic's lien upon such real
property and improvement shall, with respect to such sales made through the quarterly
period ending the succeeding June thirtieth, collect tax due on such sales, and on sales
to such contractors, subcontractors or repairmen of services described in subdivision
(2) of section 12-407 with respect to such building materials, for such purpose and made
during such July first through June thirtieth period, at the time and to the extent that such
person receives the receipts from, or consideration for, such sales from such contractors,
subcontractors or repairmen, provided if such person receives a portion of such receipts
or consideration, such person shall collect the tax due on such portion at the time the
portion is received. The taxes imposed by this chapter on such receipts and consideration
shall be deemed imposed, solely for purposes of determining when such person is required to collect and pay over such taxes to the commissioner under section 12-414,
when such person has received payment of such receipts or consideration in money, or
money's worth, from such contractor, subcontractor or repairman. A contractor, subcontractor or repairman who purchases building materials or services from such person
pursuant to this subparagraph shall, at the time such contractor, subcontractor or repairman pays any portion of the purchase price, pay to the person the tax due on the portion
of the purchase price so paid. (ii) In the event that a materialman described in this
subparagraph factors any portion of such materialman's receivables, such materialman
shall be deemed to have received payment of such receipts or consideration in money
or money's worth, from the contractor, subcontractor or repairman and shall be required
to pay over tax on such sale with the next return due, with a credit against such tax for
any tax already paid over with respect to such sale. Any such amount of tax paid over
shall be on account of the tax required to be collected on the sale to which it relates and
such materialman may take a credit against any tax paid by such contractor, subcontractor or repairman in the future on such sale, to ensure that tax paid over with respect to
such sale does not exceed the amount of tax imposed on such sale as if the entire purchase
price had been paid at the time of sale. (iii) A materialman described in this subparagraph
who has not collected the tax due on the full purchase price for a sale described in this
subparagraph from a contractor, subcontractor or repairman within one year from the
date of such sale, shall pay over to the commissioner the tax due on any balance of such
full purchase price with such materialman's return for the period which includes the
date which is one year after the date of such sale. (iv) The commissioner may assess
additional tax due with respect to a sale described in this subparagraph not later than
three years from the date the tax is required to be paid over to the commissioner pursuant
to this subparagraph, and in the case of a wilfully false or fraudulent return with intent
to evade the tax, or where no return has been filed such taxpayer shall be subject to the
provisions of section 12-428.
(D) In the case of a sale by a producer or wholesaler of newspapers to a vendor
who is not otherwise required to obtain a permit under this chapter, such producer or
wholesaler shall collect the sales tax on such newspapers at the point of transfer to such
vendor. Such tax shall be based on the stated retail price of such newspapers. Such
vendor may add an amount to the price of the newspapers equal to the amount paid as
sales tax to the producer or wholesaler and such vendor shall not be required to remit
such amount to the state.
(3) Bracket system for adding and collecting tax. For the purpose of adding and
collecting the tax imposed by this chapter, or an amount equal as nearly as possible or
practicable to the average equivalent thereof, by the retailer from the consumer the
following bracket system shall be in force and effect as follows:
Amount of SaleAmount of Tax
$0.00 to $0.08 inclusiveNo Tax
.09 to .24 inclusive1 cent
.25 to .41 inclusive2 cents
.42 to .58 inclusive3 cents
.59 to .74 inclusive4 cents
.75 to .91 inclusive5 cents
.92 to 1.08 inclusive6 cents
On all sales above $1.08, the tax shall be computed at the rate of six per cent.
(4) Unlawful advertising. No retailer shall advertise or hold out or state to the
public or to any consumer, directly or indirectly, that the tax or any part thereof will be
assumed or absorbed by the retailer or that it will not be added to the sales price of the
property sold or that, if added, it or any part thereof will be refunded. Under the provisions
of this section, however, a retailer may advertise the sale of tangible personal property
by any of the following methods: By stating the sales price alone without reference to
the tax; by stating separately the sales price and the amount of tax to be collected thereon;
by stating the sales price "plus tax" or "exclusive of tax" or by stating a sales price which
includes the tax, together with the words "tax included" or "tax incl."; provided the
retailer in the case of all such sales shall maintain his records to show separately the
actual price of such sales and the amount of the tax paid thereon; and provided such
retailer, if requested, shall furnish the consumer with a sales slip or other like evidence
of the sale, showing the tax separately computed thereon. Any person violating any
provision of this subsection shall be fined five hundred dollars for each offense.
(5) Notices, signs or advertisements subject to approval. No retailer shall exhibit
or display on his premises any notice, sign or other advertising matter tending to mislead
the public in connection with the imposition or collection of the tax. The Commissioner
of Revenue Services may approve a form of notice for the purpose of explaining the
operation of the tax.
(6) Regulations related to sales of motor vehicles to certain members of the
armed forces. The Commissioner of Revenue Services shall adopt regulations, in accordance with chapter 54, establishing a procedure for determination of qualifications
with respect to the reduced rate of sales tax in the case of certain sales of motor vehicles
to members of the armed forces as provided in subsection (1) of this section.
(7) Computation of tax for purposes of toll telephone service in coin-operated
telephones. For purposes of the tax imposed by this chapter, with respect to toll telephone service paid by inserting coins in coin-operated telephones, the tax shall be computed to the nearest multiple of five cents, except if the tax is midway between multiples
of five cents, the next higher multiple shall apply.
(1949 Rev., S. 2092; 1951, 1953, June, 1955, S. 1163d, 1164d; November, 1955, S. N144, N145; 1957, P.A. 553, S.
1, 2; 1959, P.A. 578, S. 10; 1961, P.A. 574, S. 1, 2; February, 1965, P.A. 105, S. 1; 381, S. 2; 1967, P.A. 619, S. 1; June,
1969, P.A. 1, S. 18, 19; June, 1971, P.A. 5, S. 105, 106; 8, S. 3, 4; 1972, P.A. 285, S. 1, 2; P.A. 73-288, S. 1, 2; 73-616,
S. 49, 67; P.A. 74-73, S. 1, 2, 5; P.A. 75-2, S. 1, 2, 5; 75-213, S. 23, 53; P.A. 76-114, S. 1, 21; P.A. 77-370, S. 1, 13; 77-604, S. 76, 84; 77-614, S. 139, 610; P.A. 78-71, S. 1, 5; P.A. 80-71, S. 17, 18, 30; June Sp. Sess. P.A. 83-1, S. 8, 15; P.A.
84-362, S. 1, 2; 84-545, S. 1-3; P.A. 85-547, S. 1, 2; P.A. 86-397, S. 3, 10; P.A. 87-314, S. 1, 2; P.A. 88-314, S. 22, 54;
P.A. 89-251, S. 7, 197, 198, 203; P.A. 90-336, S. 1, 3; June Sp. Sess. P.A. 91-3, S. 111, 168; June Sp. Sess. P.A. 91-14,
S. 23, 30; P.A. 92-184, S. 14, 19; May Sp. Sess. P.A. 92-5, S. 26, 37; May Sp. Sess. P.A. 92-17, S. 25, 26, 59; P.A. 93-44,
S. 3, 22, 24; 93-74, S. 22, 67; 93-332, S. 4, 42; P.A. 94-9, S. 16, 41; May Sp. Sess. P.A. 94-4, S. 17, 85; P.A. 95-160, S.
39, 64, 69; P.A. 96-139, S. 12, 13; 96-232, S. 1, 3; P.A. 97-243, S. 17, 67; P.A. 98-110, S. 6, 27; 98-244, S. 17, 35; 98-262, S. 5, 22; P.A. 99-48, S. 8, 10; 99-173, S. 13, 14, 65; P.A. 00-170, S. 7, 42; 00-174, S. 4, 83; 00-230, S. 5; June Sp.
Sess. P.A. 01-6, S. 3, 85; P.A. 02-3, S. 2; 02-103, S. 4; May 9 Sp. Sess. P.A. 02-1, S. 69; P.A. 03-2, S. 25; 03-4, S. 1; June
30 Sp. Sess. P.A. 03-1, S. 95.)
History: 1959 act extended tax to transfers of room occupancy, and appropriated part of the proceeds to state development
commission; 1961 act increased tax rate in Subsec. (1) and revised bracket system to comply with new tax rates; 1965 acts
amended Subsec. (1) to change amount appropriated to development commission from 5% to 7% of gross revenue tax
"for last-preceding year" and amended Subsec. (2) to delete phrase "so far as it can be done" re collection of tax by retailer
from consumer and to add exception to provision for recovery at law; 1967 act changed appropriation amount in Subsec.
(1) to 10% of gross revenue; 1969 act changed appropriation amount in Subsec. (1) to 8.5% and temporarily increased tax
rate on retailers to 5% and 2.5% on sales of $0.10 or less for period from July 1, 1969, to June 30, 1971, and revised bracket
system in Subsec. (3) accordingly; 1971 acts increased appropriation amount to 10% and made temporary increases in tax
rate permanent, revising bracket system in Subsec. (3) accordingly, and later changed appropriation amount to 8% and
raised tax rates to 6.5% and 3.5% on sales of $0.07 or less as of September 1, 1971, added provision re contracts without
escalator clauses in Subsec. (1) and revised Subsec. (3) accordingly; 1972 act increased tax rate to 7%, deleted provisions
re appropriations to development commission in Subsec. (1) and revised Subsec. (3) accordingly; P.A. 73-288 reduced
tax rate to 6.5% in Subsec. (1) and revised Subsec. (3) accordingly; P.A. 73-616 reduced tax rate on sales of $0.07 or less
to 3.25%; P.A. 74-73 reduced tax rates in Subsec. (1) to 6% and 3% on sales of $0.08 or less, revising Subsec. (3) accordingly;
P.A. 75-2 increased rates in Subsec. (1) to 7% and 3.5% on sales of $0.07 or less, revising Subsec. (3) accordingly; P.A.
75-213 included rendering of services under Sec. 12-407(2) in tax; P.A. 76-114 amended Subsec. (1) to include 3.5% rate
on sales of machinery and rendering of services under Sec. 12-407(2)(j)(A)-(M) and defined "machinery" in Subsec. (1);
P.A. 77-370 changed tax rate for machinery to 2.5% and included agricultural machinery and redefined "machinery" to
include "numerically controlled machinery used directly in the manufacturing process"; P.A. 77-604 made technical change
to section reference in Subsec. (1); P.A. 77-614 substituted commissioner of revenue services for tax commissioner,
effective January 1, 1979; P.A. 78-71 deleted definition of "machinery" and provision for 2.5% tax rate on its sale in
Subsec. (1); P.A. 80-71 increased tax rate to 7.5%, deleted provision for 3.5% rate on sales of $0.07 or less in Subsec. (1)
and revised Subsec. (3) accordingly; June Sp. Sess. P.A. 83-1 amended Subsec. (1) by providing that services rendered
constituting a sale in accordance with Sec. 12-407(2)(i) shall be subject to tax at the rate of 7.5% in lieu of 3.5% as previously
provided, effective August 1, 1983; P.A. 84-362 added the provision to Subsec. (2) allowing credit against sales tax due
from a retailer in charge account or credit sales when tax has been remitted to the state and subsequently the account is
determined to be worthless; P.A. 84-545 amended Subsec. (1) to provide for a rate of 4%, in lieu of the rate of 7.5%, in
respect to the sale of any motor vehicle to any person who is a member of the armed forces of the United States and is on full-time active duty in Connecticut but whose permanent residence is in another state and Sec. 2 of the act, re commissioner's
regulatory powers, was added editorially as Subsec. (6), effective July 1, 1984, and applicable to the sale of motor vehicles
on or after that date; P.A. 85-547 amended Subsec. (1) to provide for a reduction in the rate of sales tax to 2% for the sale
of aviation fuel in the period July 1, 1985, to June 30, 1987, provided the fuel is used exclusively for aviation purposes
and the retailer's place of business is upon an established airport within Connecticut, effective July 1, 1985, and applicable
to sales of aviation fuel in the period July 1, 1985, to June 30, 1987, inclusive; P.A. 86-397 amended Subsec. (1) by
providing for a reduction in rate of tax to 5% of gross receipts with respect to sale of any repair or replacement parts
exclusively for use in machinery used directly in a manufacturing or agricultural production process, effective June 11,
1986, and applicable to sales of repair or replacement parts occurring on or after July 1, 1986; P.A. 87-314 amended Subsec.
(1) with respect to the period July 1, 1985, to June 30, 1987, as the period of time during which the rate of 2% of gross
receipts would be applicable in the case of sales of aviation fuel, by deleting the period of time reference, and accordingly
making said rate applicable after June 30, 1987, without limitation as to time, effective July 1, 1987, and applicable to
sales of aviation fuel on or after that date; P.A. 88-314 amended Subsec. (4) by increasing the fine to $500 for each violation
of the provisions of this Subsec., replacing the fine of not more than $100 for each such offense, effective July 1, 1988,
and applicable to any tax which first becomes due and payable on or after said date, to any return or report due on or after
said date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning
on or after said date; P.A. 89-251 increased the rate of tax in Subsec. (1) from 7.5% to 8% of gross receipts, with corresponding changes in the lower rates for certain sales, amended the brackets in Subsec. (3) for certain amounts of sale to reflect
the amounts of tax applicable with respect to the rate of 8% and added Subsec. (7) providing a method of computation of
tax for purposes of toll telephone service in coin-operated telephones; P.A. 90-336 added Subsec. (2)(B) allowing a cash-basis taxpayer to take credits for worthless accounts receivable with respect to sales occurring on or after July 1, 1989;
June Sp. Sess. P.A. 91-3 amended Subsecs. (1) and (3) to reduce the general rate to 6% and amended Subsec. (1) to increase
the rate with respect to the transfer of occupancy to 12%, to set the rate with respect to the sales of vessels to nonresidents
to the lesser of 6% or the rate in the home state of the nonresident and to provide for the payment of the tax on a cash basis
for retailers of services who are cash-basis taxpayers for federal purposes, effective August 22, 1991, and applicable to
sales occurring on or after October 1, 1991; June Sp. Sess. P.A. 91-14 amended Subsec. (1) to make the provisions relating
to vessels effective September 19, 1991; P.A. 92-184 amended Subsec. (1)(B) by adding "or space in a campground",
effective July 1, 1993; May Sp. Sess. P.A. 92-5 amended Subsec. (1) to make various technical and minor changes, effective
June 19, 1992, and applicable to sales occurring on or after July 1, 1992; May Sp. Sess. P.A. 92-17 amended Subsec. (1)
to remove the special rate on aviation fuel, provided for an affidavit, rather than registration in the home state, as proof of
out-of-state residence and made technical changes, effective June 19, 1992, and applicable to sales occurring on or after
July 1, 1992; P.A. 93-44 amended Subsec. (1) to apply provisions to persons rendering services under Sec. 12-407(2)(o)
and Sec. 19a-168b, effective April 23, 1993; P.A. 93-74 amended Subsec. (1) to exclude space in a campground, effective
May 19, 1993, and applicable to sales occurring on and after July 1, 1993; P.A. 93-332 amended Subsec. (2) to provide
that the amount of tax reimbursement shall be deemed a special fund in trust for the state, effective June 25, 1993; P.A.
94-9 amended Subsec. (1) to delete reference to Sec. 12-407(2)(o) and Sec. 19a-168b, effective April 1, 1994; May Sp.
Sess. P.A. 94-4 in Subsec. (1) added schedule for gradually reducing sales tax with respect to the sale of computer and
data processing, effective July 1, 1996, and applicable to sales occurring on or after said date; P.A. 95-160 in Subsec. (1)
delayed by one year schedule for reduction of tax with respect to computer and data processing in Subpara. (E), effective
July 1, 1997, and applicable to sales occurring on and after that date (Revisor's note: P.A. 95-160 also revised effective
date of May Sp. Sess. P.A. 94-4 but without affecting this section); P.A. 96-139 changed effective date of P.A. 95-160 to
make applicable to sales occurring on or after July 1, 1996; P.A. 96-232 amended Subdiv. (1) to provide lower rates for
tax on sale of repair or maintenance services on vessels, effective June 6, 1996, and applicable to sales occurring on and
after July 1, 1997; P.A. 97-243 amended Subsec. (1) to add requirement that retailer maintain an affidavit or other evidence
with respect to sales of motor vehicles to members of the armed forces concerning the buyer's state of residence, to provide
that the tax rate on vessels sold to nonresidents is the lesser of 6% or the tax rate in the state in which the individual resides,
and to make technical and renumbering changes, effective June 24, 1997, and applicable to sales occurring on or after
October 1, 1997; P.A. 98-110 deleted Subsec. (1)(A) re repair or replacement parts and reletter remaining Subdivs., effective
May 19, 1998, and applicable to sales occurring on or after January 1, 1999; P.A. 98-244 amended Subsec. (1)(c) to allow
reduction in tax rate and exemption for military when the name of the spouse is on the title of the motor vehicle, effective
June 8, 1998, and applicable to sales occurring on or after October 1, 1998; P.A. 98-262 amended Subsec. (2) to clarify
language with respect to statute of limitations re bad debt write-off and made technical renumbering and relettering changes,
effective June 8, 1998; P.A. 99-48 amended Subsec. (2) to change reference to Sec. 12-415(8) to Sec. 12-415(g), effective
January 1, 2000; P.A. 99-173 amended Subsec. (1) to make technical changes, to delete provisions re sale of a vessel to
an individual who does not maintain a permanent place of abode in this state, to exempt labor services on vesels, to reduce
the tax rate to 4% effective July 1, 1999, to 2% on July 1, 2000, and eliminate the tax on July 1, 2001, for paving, painting,
staining, wallpapering, roofing, siding, and exterior sheet metal work services on residential properties, and to reduce the
tax rate on hospital services from 6% to 5.75%, and added new Subsec. (2)(C) allowing building material suppliers the
option of remitting sales tax when they receive payment, effective June 23, 1999, and applicable to sales occurring on or
after July 1, 1999; P.A. 00-170 amended Subsec. (1) to phase out the tax on Internet access services on and after July 1,
2001, effective May 26, 2000; P.A. 00-174 amended Subsec. (1) to eliminate affidavit requirement for motor vehicle sales
to armed forces personnel, to add provisions re declaration, to provide an exemption for certain labor to existing vessels
and to delete requirement re furnishing of other states' tax information by the commissioner, effective October 1, 2000,
and applicable to sales made on or after that date; P.A. 00-230 made a technical change in Subsec. (2)(C); June Sp. Sess.
P.A. 01-6 amended Subdiv. (1)(F) to suspend the sales tax on patient care services for the biennium commencing July 1,
2001, and ending June 30, 2003, effective July 1, 2001, and applicable to sales occurring on or after that date; P.A. 02-3
amended Subdiv. (1) to provide that patient care services are those for which payment is received by the hospital, effective
February 28, 2002; P.A. 02-103 made technical changes in Subdiv. (1); May 9 Sp. Sess. P.A. 02-1 amended Subdiv. (1)
to extend the rate for computer and data processing services until July 1, 2004, effective July 1, 2002, and applicable to
sales occurring on or after said date; P.A. 03-2 added Subdiv. (1)(F) re 3% rate for certain advertising and public relations
services, effective February 28, 2003, and applicable to sales occurring on or after April 1, 2003; P.A. 03-4 added Subdiv.
(2)(D) re sale of newspapers, effective April 10, 2003, and applicable to sales occurring on or after April 1, 2003; June 30
Sp. Sess. P.A. 03-1 amended Subdiv. (1) to delete sunset of tax on computer and data processing in Subpara. (C)(i), to
eliminate tax on patient care services in Subpara. (E) and to remove provisions re certain advertising or public relations
services which had been added as Subpara. (F) by P.A. 03-2, effective August 16, 2003, and applicable to sales occurring
on or after July 1, 2003.
Cited. 134 C. 297. Cited. 144 C. 311. Cited. 158 C. 238. It is generally held that a general contractor who purchases
material from a retailer for use in the construction of a building for his customer is the "consumer" of those materials
within the meaning of that term as it appears in the statutes. 168 C. 597. Cited. 183 C. 194. Preprints of advertising matter
are not printed for resale and are therefore subject to sales tax on the transaction between the printer and the advertiser.
Id., 566. Cited. 187 C. 581. Cited. 210 C. 567. Cited. 216 C. 17. Cited. 222 C. 49. Cited. 231 C. 315. Cited. 235 C. 393.
Cited. 238 C. 571; Id., 761. Since statute does not expressly permit assignment of the right to the tax credit, no such
assignment is permitted. 274 C. 196.
Cited. 18 CA 434.
Services of self-employed welder exempt from sales tax. 30 CS 309. Cited. 41 CS 175.
Cited 5 Conn. Cir. Ct. 403.
Subsec. (1):
Tax imposed on rental payments from July 1, 1975, does not result in double taxation since sales tax paid on property
purchased before that date was imposed on lessors and levied on purchase, while tax imposed after that date was imposed
on lessees and is levied on rent. 174 C. 51. Cited. 198 C. 413; Id., 624. Cited. 204 C. 122. Cited. 221 C. 751.
Cited. 2 CA 303.
Receipts of catering business subject to sales tax. Where owner innocently failed to file return for twenty-one years,
held recovery of sales taxes limited to three years and penalty and interest. 31 CS 373. Sales tax to be collected, if at all,
at time of original transfer. 37 CS 642. Cited. 39 CS 234. Cited. 44 CS 1; Id., 133.
Subsec. (2):
Tax is actually imposed upon purchaser and, where government is purchaser, no tax can be levied. 145 C. 161. Cited.
205 C. 51. Computer and data processing services including the development, creation or production of software are subject
to taxation pursuant to Sec. 12-407. 255 C. 498. Subdiv. (B): Tax credit is available only to retailer in initial sales transaction
responsible for remitting tax to Commissioner of Revenue Services. 274 C. 196.
Unless otherwise indicated in an agreement, applicable sales and use taxes are assumed to be included in the contract
price. Accordingly, plaintiff could not prevail on claim that it was authorized to add sales tax to rate set in contract. 96 CA 806.
Failure of a retailer to add the amount of the tax to the sale price at the time of sale precludes the tax from becoming a
debt of the consumer recoverable by the retailer. 36 CS 255. Sales tax to be collected, if at all, at time of original transfer.
37 CS 642. Cited. 44 CS 1.
Subsec. (4):
Subsection is directed to the retailer and would not seem to affect the consumer in any way. 36 CS 255.
Sec. 12-408. The sales tax. (1) Imposition and rate of sales tax. For the privilege
of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407,
at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the
rate of six per cent of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail or from the rendering of any services constituting a sale
in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu
of said rate of six per cent, (A) at a rate of twelve per cent with respect to each transfer
of occupancy, from the total amount of rent received for such occupancy of any room
or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive
calendar days, (B) with respect to the sale of a motor vehicle to any individual who is
a member of the armed forces of the United States and is on full-time active duty in
Connecticut and who is considered, under 50 App USC 574, a resident of another state,
or to any such individual and the spouse thereof, at a rate of four and one-half per cent
of the gross receipts of any retailer from such sales, provided such retailer requires and
maintains a declaration by such individual, prescribed as to form by the commissioner
and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's
state of residence under 50 App USC 574, (C) (i) with respect to the sales of computer
and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998,
at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate
of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three
per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent,
on or after July 1, 2001, at the rate of one per cent, (ii) with respect to sales of Internet
access services, on and after July 1, 2001, such services shall be exempt from such tax,
(D) with respect to the sales of labor that is otherwise taxable under subparagraph (C)
or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and
repair or maintenance services on vessels occurring on and after July 1, 1999, such
services shall be exempt from such tax, (E) with respect to patient care services for
which payment is received by the hospital on or after July 1, 1999, and prior to July 1,
2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such
services shall be exempt from such tax. The rate of tax imposed by this chapter shall
be applicable to all retail sales upon the effective date of such rate, except that a new
rate which represents an increase in the rate applicable to the sale shall not apply to any
sales transaction wherein a binding sales contract without an escalator clause has been
entered into prior to the effective date of the new rate and delivery is made within ninety
days after the effective date of the new rate. For the purposes of payment of the tax
imposed under this section, any retailer of services taxable under subparagraph (I) of
subdivision (2) of subsection (a) of section 12-407, who computes taxable income,
for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such
services may make payments related to such tax for the period during which such income
is received, without penalty or interest, without regard to when such service is rendered.
(2) Retailer collects tax from consumer. Credit allowed for tax remitted to state
on worthless account receivable. (A) Reimbursement for the tax hereby imposed shall
be collected by the retailer from the consumer and such tax reimbursement, termed "tax"
in this and the following subsections, shall be paid by the consumer to the retailer and
each retailer shall collect from the consumer the full amount of the tax imposed by this
chapter or an amount equal as nearly as possible or practicable to the average equivalent
thereof. Such tax shall be a debt from the consumer to the retailer, when so added to
the original sales price, and shall be recoverable at law in the same manner as other
debts except as provided in section 12-432a. The amount of tax reimbursement, when
so collected, shall be deemed to be a special fund in trust for the state of Connecticut.
(B) Whenever such tax, payable by the consumer (i) with respect to a charge account
or credit sale occurring on or after July 1, 1984, is remitted by the retailer to the commissioner and such sale as an account receivable is determined to be worthless and is actually
written off as uncollectible for federal income tax purposes, or (ii) to a retailer who
computes taxable income, for purposes of taxation under the Internal Revenue Code of
1986, or any subsequent corresponding internal revenue code of the United States, as
from time to time amended, on the cash basis method of accounting with respect to a
sale occurring on or after July 1, 1989, is remitted by the retailer to the commissioner
and such sale as an account receivable is determined to be worthless, the amount of such
tax remitted may be credited against the tax due on the sales tax return filed by the
retailer for the monthly or quarterly period, whichever is applicable, next following the
period in which such amount is actually so written off, but in no event shall such credit
be allowed later than three years following the date such tax is remitted, unless the credit
relates to a period for which a waiver is given pursuant to subsection (g) of section 12-415. The commissioner shall, by regulations adopted in accordance with chapter 54,
provide standards for proving any such claim for credit. If any account with respect to
which such credit is allowed is thereafter collected by the retailer in whole or in part,
the amount so collected shall be included in the sales tax return covering the period in
which such collection occurs. The tax applicable in any such case shall be determined
in accordance with the rate of sales tax in effect at the time of the original sale.
(C) (i) Any person required to collect tax in accordance with this subsection who
demonstrates to the satisfaction of the Commissioner of Revenue Services by July first
of any year that, in any two quarterly periods as described in section 12-414, within the
most recent four consecutive quarterly periods, such person was a materialman as such
term is used in chapter 847, who has at least fifty per cent of such person's sales of
building materials to contractors, subcontractors or repairmen for the improvement of
real property, and is authorized by said chapter to file a mechanic's lien upon such real
property and improvement shall, with respect to such sales made through the quarterly
period ending the succeeding June thirtieth, collect tax due on such sales, and on sales
to such contractors, subcontractors or repairmen of services described in subdivision
(2) of section 12-407 with respect to such building materials, for such purpose and made
during such July first through June thirtieth period, at the time and to the extent that such
person receives the receipts from, or consideration for, such sales from such contractors,
subcontractors or repairmen, provided if such person receives a portion of such receipts
or consideration, such person shall collect the tax due on such portion at the time the
portion is received. The taxes imposed by this chapter on such receipts and consideration
shall be deemed imposed, solely for purposes of determining when such person is required to collect and pay over such taxes to the commissioner under section 12-414,
when such person has received payment of such receipts or consideration in money, or
money's worth, from such contractor, subcontractor or repairman. A contractor, subcontractor or repairman who purchases building materials or services from such person
pursuant to this subparagraph shall, at the time such contractor, subcontractor or repairman pays any portion of the purchase price, pay to the person the tax due on the portion
of the purchase price so paid. (ii) In the event that a materialman described in this
subparagraph factors any portion of such materialman's receivables, such materialman
shall be deemed to have received payment of such receipts or consideration in money
or money's worth, from the contractor, subcontractor or repairman and shall be required
to pay over tax on such sale with the next return due, with a credit against such tax for
any tax already paid over with respect to such sale. Any such amount of tax paid over
shall be on account of the tax required to be collected on the sale to which it relates and
such materialman may take a credit against any tax paid by such contractor, subcontractor or repairman in the future on such sale, to ensure that tax paid over with respect to
such sale does not exceed the amount of tax imposed on such sale as if the entire purchase
price had been paid at the time of sale. (iii) A materialman described in this subparagraph
who has not collected the tax due on the full purchase price for a sale described in this
subparagraph from a contractor, subcontractor or repairman within one year from the
date of such sale, shall pay over to the commissioner the tax due on any balance of such
full purchase price with such materialman's return for the period which includes the
date which is one year after the date of such sale. (iv) The commissioner may assess
additional tax due with respect to a sale described in this subparagraph not later than
three years from the date the tax is required to be paid over to the commissioner pursuant
to this subparagraph, and in the case of a wilfully false or fraudulent return with intent
to evade the tax, or where no return has been filed such taxpayer shall be subject to the
provisions of section 12-428.
(D) In the case of a sale by a producer or wholesaler of newspapers to a vendor
who is not otherwise required to obtain a permit under this chapter, such producer or
wholesaler shall collect the sales tax on such newspapers at the point of transfer to such
vendor. Such tax shall be based on the stated retail price of such newspapers. Such
vendor may add an amount to the price of the newspapers equal to the amount paid as
sales tax to the producer or wholesaler and such vendor shall not be required to remit
such amount to the state.
(3) Bracket system for adding and collecting tax. For the purpose of adding and
collecting the tax imposed by this chapter, or an amount equal as nearly as possible or
practicable to the average equivalent thereof, by the retailer from the consumer the
following bracket system shall be in force and effect as follows:
Amount of SaleAmount of Tax
$0.00 to $0.08 inclusiveNo Tax
.09 to .24 inclusive1 cent
.25 to .41 inclusive2 cents
.42 to .58 inclusive3 cents
.59 to .74 inclusive4 cents
.75 to .91 inclusive5 cents
.92 to 1.08 inclusive6 cents
On all sales above $1.08, the tax shall be computed at the rate of six per cent.
(4) Unlawful advertising. No retailer shall advertise or hold out or state to the
public or to any consumer, directly or indirectly, that the tax or any part thereof will be
assumed or absorbed by the retailer or that it will not be added to the sales price of the
property sold or that, if added, it or any part thereof will be refunded. Under the provisions
of this section, however, a retailer may advertise the sale of tangible personal property
by any of the following methods: By stating the sales price alone without reference to
the tax; by stating separately the sales price and the amount of tax to be collected thereon;
by stating the sales price "plus tax" or "exclusive of tax" or by stating a sales price which
includes the tax, together with the words "tax included" or "tax incl."; provided the
retailer in the case of all such sales shall maintain his records to show separately the
actual price of such sales and the amount of the tax paid thereon; and provided such
retailer, if requested, shall furnish the consumer with a sales slip or other like evidence
of the sale, showing the tax separately computed thereon. Any person violating any
provision of this subsection shall be fined five hundred dollars for each offense.
(5) Notices, signs or advertisements subject to approval. No retailer shall exhibit
or display on his premises any notice, sign or other advertising matter tending to mislead
the public in connection with the imposition or collection of the tax. The Commissioner
of Revenue Services may approve a form of notice for the purpose of explaining the
operation of the tax.
(6) Regulations related to sales of motor vehicles to certain members of the
armed forces. The Commissioner of Revenue Services shall adopt regulations, in accordance with chapter 54, establishing a procedure for determination of qualifications
with respect to the reduced rate of sales tax in the case of certain sales of motor vehicles
to members of the armed forces as provided in subsection (1) of this section.
(7) Computation of tax for purposes of toll telephone service in coin-operated
telephones. For purposes of the tax imposed by this chapter, with respect to toll telephone service paid by inserting coins in coin-operated telephones, the tax shall be computed to the nearest multiple of five cents, except if the tax is midway between multiples
of five cents, the next higher multiple shall apply.
(1949 Rev., S. 2092; 1951, 1953, June, 1955, S. 1163d, 1164d; November, 1955, S. N144, N145; 1957, P.A. 553, S.
1, 2; 1959, P.A. 578, S. 10; 1961, P.A. 574, S. 1, 2; February, 1965, P.A. 105, S. 1; 381, S. 2; 1967, P.A. 619, S. 1; June,
1969, P.A. 1, S. 18, 19; June, 1971, P.A. 5, S. 105, 106; 8, S. 3, 4; 1972, P.A. 285, S. 1, 2; P.A. 73-288, S. 1, 2; 73-616,
S. 49, 67; P.A. 74-73, S. 1, 2, 5; P.A. 75-2, S. 1, 2, 5; 75-213, S. 23, 53; P.A. 76-114, S. 1, 21; P.A. 77-370, S. 1, 13; 77-604, S. 76, 84; 77-614, S. 139, 610; P.A. 78-71, S. 1, 5; P.A. 80-71, S. 17, 18, 30; June Sp. Sess. P.A. 83-1, S. 8, 15; P.A.
84-362, S. 1, 2; 84-545, S. 1-3; P.A. 85-547, S. 1, 2; P.A. 86-397, S. 3, 10; P.A. 87-314, S. 1, 2; P.A. 88-314, S. 22, 54;
P.A. 89-251, S. 7, 197, 198, 203; P.A. 90-336, S. 1, 3; June Sp. Sess. P.A. 91-3, S. 111, 168; June Sp. Sess. P.A. 91-14,
S. 23, 30; P.A. 92-184, S. 14, 19; May Sp. Sess. P.A. 92-5, S. 26, 37; May Sp. Sess. P.A. 92-17, S. 25, 26, 59; P.A. 93-44,
S. 3, 22, 24; 93-74, S. 22, 67; 93-332, S. 4, 42; P.A. 94-9, S. 16, 41; May Sp. Sess. P.A. 94-4, S. 17, 85; P.A. 95-160, S.
39, 64, 69; P.A. 96-139, S. 12, 13; 96-232, S. 1, 3; P.A. 97-243, S. 17, 67; P.A. 98-110, S. 6, 27; 98-244, S. 17, 35; 98-262, S. 5, 22; P.A. 99-48, S. 8, 10; 99-173, S. 13, 14, 65; P.A. 00-170, S. 7, 42; 00-174, S. 4, 83; 00-230, S. 5; June Sp.
Sess. P.A. 01-6, S. 3, 85; P.A. 02-3, S. 2; 02-103, S. 4; May 9 Sp. Sess. P.A. 02-1, S. 69; P.A. 03-2, S. 25; 03-4, S. 1; June
30 Sp. Sess. P.A. 03-1, S. 95.)
History: 1959 act extended tax to transfers of room occupancy, and appropriated part of the proceeds to state development
commission; 1961 act increased tax rate in Subsec. (1) and revised bracket system to comply with new tax rates; 1965 acts
amended Subsec. (1) to change amount appropriated to development commission from 5% to 7% of gross revenue tax
"for last-preceding year" and amended Subsec. (2) to delete phrase "so far as it can be done" re collection of tax by retailer
from consumer and to add exception to provision for recovery at law; 1967 act changed appropriation amount in Subsec.
(1) to 10% of gross revenue; 1969 act changed appropriation amount in Subsec. (1) to 8.5% and temporarily increased tax
rate on retailers to 5% and 2.5% on sales of $0.10 or less for period from July 1, 1969, to June 30, 1971, and revised bracket
system in Subsec. (3) accordingly; 1971 acts increased appropriation amount to 10% and made temporary increases in tax
rate permanent, revising bracket system in Subsec. (3) accordingly, and later changed appropriation amount to 8% and
raised tax rates to 6.5% and 3.5% on sales of $0.07 or less as of September 1, 1971, added provision re contracts without
escalator clauses in Subsec. (1) and revised Subsec. (3) accordingly; 1972 act increased tax rate to 7%, deleted provisions
re appropriations to development commission in Subsec. (1) and revised Subsec. (3) accordingly; P.A. 73-288 reduced
tax rate to 6.5% in Subsec. (1) and revised Subsec. (3) accordingly; P.A. 73-616 reduced tax rate on sales of $0.07 or less
to 3.25%; P.A. 74-73 reduced tax rates in Subsec. (1) to 6% and 3% on sales of $0.08 or less, revising Subsec. (3) accordingly;
P.A. 75-2 increased rates in Subsec. (1) to 7% and 3.5% on sales of $0.07 or less, revising Subsec. (3) accordingly; P.A.
75-213 included rendering of services under Sec. 12-407(2) in tax; P.A. 76-114 amended Subsec. (1) to include 3.5% rate
on sales of machinery and rendering of services under Sec. 12-407(2)(j)(A)-(M) and defined "machinery" in Subsec. (1);
P.A. 77-370 changed tax rate for machinery to 2.5% and included agricultural machinery and redefined "machinery" to
include "numerically controlled machinery used directly in the manufacturing process"; P.A. 77-604 made technical change
to section reference in Subsec. (1); P.A. 77-614 substituted commissioner of revenue services for tax commissioner,
effective January 1, 1979; P.A. 78-71 deleted definition of "machinery" and provision for 2.5% tax rate on its sale in
Subsec. (1); P.A. 80-71 increased tax rate to 7.5%, deleted provision for 3.5% rate on sales of $0.07 or less in Subsec. (1)
and revised Subsec. (3) accordingly; June Sp. Sess. P.A. 83-1 amended Subsec. (1) by providing that services rendered
constituting a sale in accordance with Sec. 12-407(2)(i) shall be subject to tax at the rate of 7.5% in lieu of 3.5% as previously
provided, effective August 1, 1983; P.A. 84-362 added the provision to Subsec. (2) allowing credit against sales tax due
from a retailer in charge account or credit sales when tax has been remitted to the state and subsequently the account is
determined to be worthless; P.A. 84-545 amended Subsec. (1) to provide for a rate of 4%, in lieu of the rate of 7.5%, in
respect to the sale of any motor vehicle to any person who is a member of the armed forces of the United States and is on full-time active duty in Connecticut but whose permanent residence is in another state and Sec. 2 of the act, re commissioner's
regulatory powers, was added editorially as Subsec. (6), effective July 1, 1984, and applicable to the sale of motor vehicles
on or after that date; P.A. 85-547 amended Subsec. (1) to provide for a reduction in the rate of sales tax to 2% for the sale
of aviation fuel in the period July 1, 1985, to June 30, 1987, provided the fuel is used exclusively for aviation purposes
and the retailer's place of business is upon an established airport within Connecticut, effective July 1, 1985, and applicable
to sales of aviation fuel in the period July 1, 1985, to June 30, 1987, inclusive; P.A. 86-397 amended Subsec. (1) by
providing for a reduction in rate of tax to 5% of gross receipts with respect to sale of any repair or replacement parts
exclusively for use in machinery used directly in a manufacturing or agricultural production process, effective June 11,
1986, and applicable to sales of repair or replacement parts occurring on or after July 1, 1986; P.A. 87-314 amended Subsec.
(1) with respect to the period July 1, 1985, to June 30, 1987, as the period of time during which the rate of 2% of gross
receipts would be applicable in the case of sales of aviation fuel, by deleting the period of time reference, and accordingly
making said rate applicable after June 30, 1987, without limitation as to time, effective July 1, 1987, and applicable to
sales of aviation fuel on or after that date; P.A. 88-314 amended Subsec. (4) by increasing the fine to $500 for each violation
of the provisions of this Subsec., replacing the fine of not more than $100 for each such offense, effective July 1, 1988,
and applicable to any tax which first becomes due and payable on or after said date, to any return or report due on or after
said date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning
on or after said date; P.A. 89-251 increased the rate of tax in Subsec. (1) from 7.5% to 8% of gross receipts, with corresponding changes in the lower rates for certain sales, amended the brackets in Subsec. (3) for certain amounts of sale to reflect
the amounts of tax applicable with respect to the rate of 8% and added Subsec. (7) providing a method of computation of
tax for purposes of toll telephone service in coin-operated telephones; P.A. 90-336 added Subsec. (2)(B) allowing a cash-basis taxpayer to take credits for worthless accounts receivable with respect to sales occurring on or after July 1, 1989;
June Sp. Sess. P.A. 91-3 amended Subsecs. (1) and (3) to reduce the general rate to 6% and amended Subsec. (1) to increase
the rate with respect to the transfer of occupancy to 12%, to set the rate with respect to the sales of vessels to nonresidents
to the lesser of 6% or the rate in the home state of the nonresident and to provide for the payment of the tax on a cash basis
for retailers of services who are cash-basis taxpayers for federal purposes, effective August 22, 1991, and applicable to
sales occurring on or after October 1, 1991; June Sp. Sess. P.A. 91-14 amended Subsec. (1) to make the provisions relating
to vessels effective September 19, 1991; P.A. 92-184 amended Subsec. (1)(B) by adding "or space in a campground",
effective July 1, 1993; May Sp. Sess. P.A. 92-5 amended Subsec. (1) to make various technical and minor changes, effective
June 19, 1992, and applicable to sales occurring on or after July 1, 1992; May Sp. Sess. P.A. 92-17 amended Subsec. (1)
to remove the special rate on aviation fuel, provided for an affidavit, rather than registration in the home state, as proof of
out-of-state residence and made technical changes, effective June 19, 1992, and applicable to sales occurring on or after
July 1, 1992; P.A. 93-44 amended Subsec. (1) to apply provisions to persons rendering services under Sec. 12-407(2)(o)
and Sec. 19a-168b, effective April 23, 1993; P.A. 93-74 amended Subsec. (1) to exclude space in a campground, effective
May 19, 1993, and applicable to sales occurring on and after July 1, 1993; P.A. 93-332 amended Subsec. (2) to provide
that the amount of tax reimbursement shall be deemed a special fund in trust for the state, effective June 25, 1993; P.A.
94-9 amended Subsec. (1) to delete reference to Sec. 12-407(2)(o) and Sec. 19a-168b, effective April 1, 1994; May Sp.
Sess. P.A. 94-4 in Subsec. (1) added schedule for gradually reducing sales tax with respect to the sale of computer and
data processing, effective July 1, 1996, and applicable to sales occurring on or after said date; P.A. 95-160 in Subsec. (1)
delayed by one year schedule for reduction of tax with respect to computer and data processing in Subpara. (E), effective
July 1, 1997, and applicable to sales occurring on and after that date (Revisor's note: P.A. 95-160 also revised effective
date of May Sp. Sess. P.A. 94-4 but without affecting this section); P.A. 96-139 changed effective date of P.A. 95-160 to
make applicable to sales occurring on or after July 1, 1996; P.A. 96-232 amended Subdiv. (1) to provide lower rates for
tax on sale of repair or maintenance services on vessels, effective June 6, 1996, and applicable to sales occurring on and
after July 1, 1997; P.A. 97-243 amended Subsec. (1) to add requirement that retailer maintain an affidavit or other evidence
with respect to sales of motor vehicles to members of the armed forces concerning the buyer's state of residence, to provide
that the tax rate on vessels sold to nonresidents is the lesser of 6% or the tax rate in the state in which the individual resides,
and to make technical and renumbering changes, effective June 24, 1997, and applicable to sales occurring on or after
October 1, 1997; P.A. 98-110 deleted Subsec. (1)(A) re repair or replacement parts and reletter remaining Subdivs., effective
May 19, 1998, and applicable to sales occurring on or after January 1, 1999; P.A. 98-244 amended Subsec. (1)(c) to allow
reduction in tax rate and exemption for military when the name of the spouse is on the title of the motor vehicle, effective
June 8, 1998, and applicable to sales occurring on or after October 1, 1998; P.A. 98-262 amended Subsec. (2) to clarify
language with respect to statute of limitations re bad debt write-off and made technical renumbering and relettering changes,
effective June 8, 1998; P.A. 99-48 amended Subsec. (2) to change reference to Sec. 12-415(8) to Sec. 12-415(g), effective
January 1, 2000; P.A. 99-173 amended Subsec. (1) to make technical changes, to delete provisions re sale of a vessel to
an individual who does not maintain a permanent place of abode in this state, to exempt labor services on vesels, to reduce
the tax rate to 4% effective July 1, 1999, to 2% on July 1, 2000, and eliminate the tax on July 1, 2001, for paving, painting,
staining, wallpapering, roofing, siding, and exterior sheet metal work services on residential properties, and to reduce the
tax rate on hospital services from 6% to 5.75%, and added new Subsec. (2)(C) allowing building material suppliers the
option of remitting sales tax when they receive payment, effective June 23, 1999, and applicable to sales occurring on or
after July 1, 1999; P.A. 00-170 amended Subsec. (1) to phase out the tax on Internet access services on and after July 1,
2001, effective May 26, 2000; P.A. 00-174 amended Subsec. (1) to eliminate affidavit requirement for motor vehicle sales
to armed forces personnel, to add provisions re declaration, to provide an exemption for certain labor to existing vessels
and to delete requirement re furnishing of other states' tax information by the commissioner, effective October 1, 2000,
and applicable to sales made on or after that date; P.A. 00-230 made a technical change in Subsec. (2)(C); June Sp. Sess.
P.A. 01-6 amended Subdiv. (1)(F) to suspend the sales tax on patient care services for the biennium commencing July 1,
2001, and ending June 30, 2003, effective July 1, 2001, and applicable to sales occurring on or after that date; P.A. 02-3
amended Subdiv. (1) to provide that patient care services are those for which payment is received by the hospital, effective
February 28, 2002; P.A. 02-103 made technical changes in Subdiv. (1); May 9 Sp. Sess. P.A. 02-1 amended Subdiv. (1)
to extend the rate for computer and data processing services until July 1, 2004, effective July 1, 2002, and applicable to
sales occurring on or after said date; P.A. 03-2 added Subdiv. (1)(F) re 3% rate for certain advertising and public relations
services, effective February 28, 2003, and applicable to sales occurring on or after April 1, 2003; P.A. 03-4 added Subdiv.
(2)(D) re sale of newspapers, effective April 10, 2003, and applicable to sales occurring on or after April 1, 2003; June 30
Sp. Sess. P.A. 03-1 amended Subdiv. (1) to delete sunset of tax on computer and data processing in Subpara. (C)(i), to
eliminate tax on patient care services in Subpara. (E) and to remove provisions re certain advertising or public relations
services which had been added as Subpara. (F) by P.A. 03-2, effective August 16, 2003, and applicable to sales occurring
on or after July 1, 2003.
Cited. 134 C. 297. Cited. 144 C. 311. Cited. 158 C. 238. It is generally held that a general contractor who purchases
material from a retailer for use in the construction of a building for his customer is the "consumer" of those materials
within the meaning of that term as it appears in the statutes. 168 C. 597. Cited. 183 C. 194. Preprints of advertising matter
are not printed for resale and are therefore subject to sales tax on the transaction between the printer and the advertiser.
Id., 566. Cited. 187 C. 581. Cited. 210 C. 567. Cited. 216 C. 17. Cited. 222 C. 49. Cited. 231 C. 315. Cited. 235 C. 393.
Cited. 238 C. 571; Id., 761. Since statute does not expressly permit assignment of the right to the tax credit, no such
assignment is permitted. 274 C. 196.
Cited. 18 CA 434.
Services of self-employed welder exempt from sales tax. 30 CS 309. Cited. 41 CS 175.
Cited 5 Conn. Cir. Ct. 403.
Subsec. (1):
Tax imposed on rental payments from July 1, 1975, does not result in double taxation since sales tax paid on property
purchased before that date was imposed on lessors and levied on purchase, while tax imposed after that date was imposed
on lessees and is levied on rent. 174 C. 51. Cited. 198 C. 413; Id., 624. Cited. 204 C. 122. Cited. 221 C. 751.
Cited. 2 CA 303.
Receipts of catering business subject to sales tax. Where owner innocently failed to file return for twenty-one years,
held recovery of sales taxes limited to three years and penalty and interest. 31 CS 373. Sales tax to be collected, if at all,
at time of original transfer. 37 CS 642. Cited. 39 CS 234. Cited. 44 CS 1; Id., 133.
Subsec. (2):
Tax is actually imposed upon purchaser and, where government is purchaser, no tax can be levied. 145 C. 161. Cited.
205 C. 51. Computer and data processing services including the development, creation or production of software are subject
to taxation pursuant to Sec. 12-407. 255 C. 498. Subdiv. (B): Tax credit is available only to retailer in initial sales transaction
responsible for remitting tax to Commissioner of Revenue Services. 274 C. 196.
Unless otherwise indicated in an agreement, applicable sales and use taxes are assumed to be included in the contract
price. Accordingly, plaintiff could not prevail on claim that it was authorized to add sales tax to rate set in contract. 96 CA 806.
Failure of a retailer to add the amount of the tax to the sale price at the time of sale precludes the tax from becoming a
debt of the consumer recoverable by the retailer. 36 CS 255. Sales tax to be collected, if at all, at time of original transfer.
37 CS 642. Cited. 44 CS 1.
Subsec. (4):
Subsection is directed to the retailer and would not seem to affect the consumer in any way. 36 CS 255.
Sec. 12-408. The sales tax. (1) Imposition and rate of sales tax. For the privilege
of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407,
at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the
rate of six per cent of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail or from the rendering of any services constituting a sale
in accordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu
of said rate of six per cent, (A) at a rate of twelve per cent with respect to each transfer
of occupancy, from the total amount of rent received for such occupancy of any room
or rooms in a hotel or lodging house for the first period not exceeding thirty consecutive
calendar days, (B) with respect to the sale of a motor vehicle to any individual who is
a member of the armed forces of the United States and is on full-time active duty in
Connecticut and who is considered, under 50 App USC 574, a resident of another state,
or to any such individual and the spouse thereof, at a rate of four and one-half per cent
of the gross receipts of any retailer from such sales, provided such retailer requires and
maintains a declaration by such individual, prescribed as to form by the commissioner
and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's
state of residence under 50 App USC 574, (C) (i) with respect to the sales of computer
and data processing services occurring on or after July 1, 1997, and prior to July 1, 1998,
at the rate of five per cent, on or after July 1, 1998, and prior to July 1, 1999, at the rate
of four per cent, on or after July 1, 1999, and prior to July 1, 2000, at the rate of three
per cent, on or after July 1, 2000, and prior to July 1, 2001, at the rate of two per cent,
on or after July 1, 2001, at the rate of one per cent, (ii) with respect to sales of Internet
access services, on and after July 1, 2001, such services shall be exempt from such tax,
(D) with respect to the sales of labor that is otherwise taxable under subparagraph (C)
or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and
repair or maintenance services on vessels occurring on and after July 1, 1999, such
services shall be exempt from such tax, (E) with respect to patient care services for
which payment is received by the hospital on or after July 1, 1999, and prior to July 1,
2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such
services shall be exempt from such tax. The rate of tax imposed by this chapter shall
be applicable to all retail sales upon the effective date of such rate, except that a new
rate which represents an increase in the rate applicable to the sale shall not apply to any
sales transaction wherein a binding sales contract without an escalator clause has been
entered into prior to the effective date of the new rate and delivery is made within ninety
days after the effective date of the new rate. For the purposes of payment of the tax
imposed under this section, any retailer of services taxable under subparagraph (I) of
subdivision (2) of subsection (a) of section 12-407, who computes taxable income,
for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
on an accounting basis which recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such
services may make payments related to such tax for the period during which such income
is received, without penalty or interest, without regard to when such service is rendered.
(2) Retailer collects tax from consumer. Credit allowed for tax remitted to state
on worthless account receivable. (A) Reimbursement for the tax hereby imposed shall
be collected by the retailer from the consumer and such tax reimbursement, termed "tax"
in this and the following subsections, shall be paid by the consumer to the retailer and
each retailer shall collect from the consumer the full amount of the tax imposed by this
chapter or an amount equal as nearly as possible or practicable to the average equivalent
thereof. Such tax shall be a debt from the consumer to the retailer, when so added to
the original sales price, and shall be recoverable at law in the same manner as other
debts except as provided in section 12-432a. The amount of tax reimbursement, when
so collected, shall be deemed to be a special fund in trust for the state of Connecticut.
(B) Whenever such tax, payable by the consumer (i) with respect to a charge account
or credit sale occurring on or after July 1, 1984, is remitted by the retailer to the commissioner and such sale as an account receivable is determined to be worthless and is actually
written off as uncollectible for federal income tax purposes, or (ii) to a retailer who
computes taxable income, for purposes of taxation under the Internal Revenue Code of
1986, or any subsequent corresponding internal revenue code of the United States, as
from time to time amended, on the cash basis method of accounting with respect to a
sale occurring on or after July 1, 1989, is remitted by the retailer to the commissioner
and such sale as an account receivable is determined to be worthless, the amount of such
tax remitted may be credited against the tax due on the sales tax return filed by the
retailer for the monthly or quarterly period, whichever is applicable, next following the
period in which such amount is actually so written off, but in no event shall such credit
be allowed later than three years following the date such tax is remitted, unless the credit
relates to a period for which a waiver is given pursuant to subsection (g) of section 12-415. The commissioner shall, by regulations adopted in accordance with chapter 54,
provide standards for proving any such claim for credit. If any account with respect to
which such credit is allowed is thereafter collected by the retailer in whole or in part,
the amount so collected shall be included in the sales tax return covering the period in
which such collection occurs. The tax applicable in any such case shall be determined
in accordance with the rate of sales tax in effect at the time of the original sale.
(C) (i) Any person required to collect tax in accordance with this subsection who
demonstrates to the satisfaction of the Commissioner of Revenue Services by July first
of any year that, in any two quarterly periods as described in section 12-414, within the
most recent four consecutive quarterly periods, such person was a materialman as such
term is used in chapter 847, who has at least fifty per cent of such person's sales of
building materials to contractors, subcontractors or repairmen for the improvement of
real property, and is authorized by said chapter to file a mechanic's lien upon such real
property and improvement shall, with respect to such sales made through the quarterly
period ending the succeeding June thirtieth, collect tax due on such sales, and on sales
to such contractors, subcontractors or repairmen of services described in subdivision
(2) of section 12-407 with respect to such building materials, for such purpose and made
during such July first through June thirtieth period, at the time and to the extent that such
person receives the receipts from, or consideration for, such sales from such contractors,
subcontractors or repairmen, provided if such person receives a portion of such receipts
or consideration, such person shall collect the tax due on such portion at the time the
portion is received. The taxes imposed by this chapter on such receipts and consideration
shall be deemed imposed, solely for purposes of determining when such person is required to collect and pay over such taxes to the commissioner under section 12-414,
when such person has received payment of such receipts or consideration in money, or
money's worth, from such contractor, subcontractor or repairman. A contractor, subcontractor or repairman who purchases building materials or services from such person
pursuant to this subparagraph shall, at the time such contractor, subcontractor or repairman pays any portion of the purchase price, pay to the person the tax due on the portion
of the purchase price so paid. (ii) In the event that a materialman described in this
subparagraph factors any portion of such materialman's receivables, such materialman
shall be deemed to have received payment of such receipts or consideration in money
or money's worth, from the contractor, subcontractor or repairman and shall be required
to pay over tax on such sale with the next return due, with a credit against such tax for
any tax already paid over with respect to such sale. Any such amount of tax paid over
shall be on account of the tax required to be collected on the sale to which it relates and
such materialman may take a credit against any tax paid by such contractor, subcontractor or repairman in the future on such sale, to ensure that tax paid over with respect to
such sale does not exceed the amount of tax imposed on such sale as if the entire purchase
price had been paid at the time of sale. (iii) A materialman described in this subparagraph
who has not collected the tax due on the full purchase price for a sale described in this
subparagraph from a contractor, subcontractor or repairman within one year from the
date of such sale, shall pay over to the commissioner the tax due on any balance of such
full purchase price with such materialman's return for the period which includes the
date which is one year after the date of such sale. (iv) The commissioner may assess
additional tax due with respect to a sale described in this subparagraph not later than
three years from the date the tax is required to be paid over to the commissioner pursuant
to this subparagraph, and in the case of a wilfully false or fraudulent return with intent
to evade the tax, or where no return has been filed such taxpayer shall be subject to the
provisions of section 12-428.
(D) In the case of a sale by a producer or wholesaler of newspapers to a vendor
who is not otherwise required to obtain a permit under this chapter, such producer or
wholesaler shall collect the sales tax on such newspapers at the point of transfer to such
vendor. Such tax shall be based on the stated retail price of such newspapers. Such
vendor may add an amount to the price of the newspapers equal to the amount paid as
sales tax to the producer or wholesaler and such vendor shall not be required to remit
such amount to the state.
(3) Bracket system for adding and collecting tax. For the purpose of adding and
collecting the tax imposed by this chapter, or an amount equal as nearly as possible or
practicable to the average equivalent thereof, by the retailer from the consumer the
following bracket system shall be in force and effect as follows:
Amount of SaleAmount of Tax
$0.00 to $0.08 inclusiveNo Tax
.09 to .24 inclusive1 cent
.25 to .41 inclusive2 cents
.42 to .58 inclusive3 cents
.59 to .74 inclusive4 cents
.75 to .91 inclusive5 cents
.92 to 1.08 inclusive6 cents
On all sales above $1.08, the tax shall be computed at the rate of six per cent.
(4) Unlawful advertising. No retailer shall advertise or hold out or state to the
public or to any consumer, directly or indirectly, that the tax or any part thereof will be
assumed or absorbed by the retailer or that it will not be added to the sales price of the
property sold or that, if added, it or any part thereof will be refunded. Under the provisions
of this section, however, a retailer may advertise the sale of tangible personal property
by any of the following methods: By stating the sales price alone without reference to
the tax; by stating separately the sales price and the amount of tax to be collected thereon;
by stating the sales price "plus tax" or "exclusive of tax" or by stating a sales price which
includes the tax, together with the words "tax included" or "tax incl."; provided the
retailer in the case of all such sales shall maintain his records to show separately the
actual price of such sales and the amount of the tax paid thereon; and provided such
retailer, if requested, shall furnish the consumer with a sales slip or other like evidence
of the sale, showing the tax separately computed thereon. Any person violating any
provision of this subsection shall be fined five hundred dollars for each offense.
(5) Notices, signs or advertisements subject to approval. No retailer shall exhibit
or display on his premises any notice, sign or other advertising matter tending to mislead
the public in connection with the imposition or collection of the tax. The Commissioner
of Revenue Services may approve a form of notice for the purpose of explaining the
operation of the tax.
(6) Regulations related to sales of motor vehicles to certain members of the
armed forces. The Commissioner of Revenue Services shall adopt regulations, in accordance with chapter 54, establishing a procedure for determination of qualifications
with respect to the reduced rate of sales tax in the case of certain sales of motor vehicles
to members of the armed forces as provided in subsection (1) of this section.
(7) Computation of tax for purposes of toll telephone service in coin-operated
telephones. For purposes of the tax imposed by this chapter, with respect to toll telephone service paid by inserting coins in coin-operated telephones, the tax shall be computed to the nearest multiple of five cents, except if the tax is midway between multiples
of five cents, the next higher multiple shall apply.
(1949 Rev., S. 2092; 1951, 1953, June, 1955, S. 1163d, 1164d; November, 1955, S. N144, N145; 1957, P.A. 553, S.
1, 2; 1959, P.A. 578, S. 10; 1961, P.A. 574, S. 1, 2; February, 1965, P.A. 105, S. 1; 381, S. 2; 1967, P.A. 619, S. 1; June,
1969, P.A. 1, S. 18, 19; June, 1971, P.A. 5, S. 105, 106; 8, S. 3, 4; 1972, P.A. 285, S. 1, 2; P.A. 73-288, S. 1, 2; 73-616,
S. 49, 67; P.A. 74-73, S. 1, 2, 5; P.A. 75-2, S. 1, 2, 5; 75-213, S. 23, 53; P.A. 76-114, S. 1, 21; P.A. 77-370, S. 1, 13; 77-604, S. 76, 84; 77-614, S. 139, 610; P.A. 78-71, S. 1, 5; P.A. 80-71, S. 17, 18, 30; June Sp. Sess. P.A. 83-1, S. 8, 15; P.A.
84-362, S. 1, 2; 84-545, S. 1-3; P.A. 85-547, S. 1, 2; P.A. 86-397, S. 3, 10; P.A. 87-314, S. 1, 2; P.A. 88-314, S. 22, 54;
P.A. 89-251, S. 7, 197, 198, 203; P.A. 90-336, S. 1, 3; June Sp. Sess. P.A. 91-3, S. 111, 168; June Sp. Sess. P.A. 91-14,
S. 23, 30; P.A. 92-184, S. 14, 19; May Sp. Sess. P.A. 92-5, S. 26, 37; May Sp. Sess. P.A. 92-17, S. 25, 26, 59; P.A. 93-44,
S. 3, 22, 24; 93-74, S. 22, 67; 93-332, S. 4, 42; P.A. 94-9, S. 16, 41; May Sp. Sess. P.A. 94-4, S. 17, 85; P.A. 95-160, S.
39, 64, 69; P.A. 96-139, S. 12, 13; 96-232, S. 1, 3; P.A. 97-243, S. 17, 67; P.A. 98-110, S. 6, 27; 98-244, S. 17, 35; 98-262, S. 5, 22; P.A. 99-48, S. 8, 10; 99-173, S. 13, 14, 65; P.A. 00-170, S. 7, 42; 00-174, S. 4, 83; 00-230, S. 5; June Sp.
Sess. P.A. 01-6, S. 3, 85; P.A. 02-3, S. 2; 02-103, S. 4; May 9 Sp. Sess. P.A. 02-1, S. 69; P.A. 03-2, S. 25; 03-4, S. 1; June
30 Sp. Sess. P.A. 03-1, S. 95.)
History: 1959 act extended tax to transfers of room occupancy, and appropriated part of the proceeds to state development
commission; 1961 act increased tax rate in Subsec. (1) and revised bracket system to comply with new tax rates; 1965 acts
amended Subsec. (1) to change amount appropriated to development commission from 5% to 7% of gross revenue tax
"for last-preceding year" and amended Subsec. (2) to delete phrase "so far as it can be done" re collection of tax by retailer
from consumer and to add exception to provision for recovery at law; 1967 act changed appropriation amount in Subsec.
(1) to 10% of gross revenue; 1969 act changed appropriation amount in Subsec. (1) to 8.5% and temporarily increased tax
rate on retailers to 5% and 2.5% on sales of $0.10 or less for period from July 1, 1969, to June 30, 1971, and revised bracket
system in Subsec. (3) accordingly; 1971 acts increased appropriation amount to 10% and made temporary increases in tax
rate permanent, revising bracket system in Subsec. (3) accordingly, and later changed appropriation amount to 8% and
raised tax rates to 6.5% and 3.5% on sales of $0.07 or less as of September 1, 1971, added provision re contracts without
escalator clauses in Subsec. (1) and revised Subsec. (3) accordingly; 1972 act increased tax rate to 7%, deleted provisions
re appropriations to development commission in Subsec. (1) and revised Subsec. (3) accordingly; P.A. 73-288 reduced
tax rate to 6.5% in Subsec. (1) and revised Subsec. (3) accordingly; P.A. 73-616 reduced tax rate on sales of $0.07 or less
to 3.25%; P.A. 74-73 reduced tax rates in Subsec. (1) to 6% and 3% on sales of $0.08 or less, revising Subsec. (3) accordingly;
P.A. 75-2 increased rates in Subsec. (1) to 7% and 3.5% on sales of $0.07 or less, revising Subsec. (3) accordingly; P.A.
75-213 included rendering of services under Sec. 12-407(2) in tax; P.A. 76-114 amended Subsec. (1) to include 3.5% rate
on sales of machinery and rendering of services under Sec. 12-407(2)(j)(A)-(M) and defined "machinery" in Subsec. (1);
P.A. 77-370 changed tax rate for machinery to 2.5% and included agricultural machinery and redefined "machinery" to
include "numerically controlled machinery used directly in the manufacturing process"; P.A. 77-604 made technical change
to section reference in Subsec. (1); P.A. 77-614 substituted commissioner of revenue services for tax commissioner,
effective January 1, 1979; P.A. 78-71 deleted definition of "machinery" and provision for 2.5% tax rate on its sale in
Subsec. (1); P.A. 80-71 increased tax rate to 7.5%, deleted provision for 3.5% rate on sales of $0.07 or less in Subsec. (1)
and revised Subsec. (3) accordingly; June Sp. Sess. P.A. 83-1 amended Subsec. (1) by providing that services rendered
constituting a sale in accordance with Sec. 12-407(2)(i) shall be subject to tax at the rate of 7.5% in lieu of 3.5% as previously
provided, effective August 1, 1983; P.A. 84-362 added the provision to Subsec. (2) allowing credit against sales tax due
from a retailer in charge account or credit sales when tax has been remitted to the state and subsequently the account is
determined to be worthless; P.A. 84-545 amended Subsec. (1) to provide for a rate of 4%, in lieu of the rate of 7.5%, in
respect to the sale of any motor vehicle to any person who is a member of the armed forces of the United States and is on full-time active duty in Connecticut but whose permanent residence is in another state and Sec. 2 of the act, re commissioner's
regulatory powers, was added editorially as Subsec. (6), effective July 1, 1984, and applicable to the sale of motor vehicles
on or after that date; P.A. 85-547 amended Subsec. (1) to provide for a reduction in the rate of sales tax to 2% for the sale
of aviation fuel in the period July 1, 1985, to June 30, 1987, provided the fuel is used exclusively for aviation purposes
and the retailer's place of business is upon an established airport within Connecticut, effective July 1, 1985, and applicable
to sales of aviation fuel in the period July 1, 1985, to June 30, 1987, inclusive; P.A. 86-397 amended Subsec. (1) by
providing for a reduction in rate of tax to 5% of gross receipts with respect to sale of any repair or replacement parts
exclusively for use in machinery used directly in a manufacturing or agricultural production process, effective June 11,
1986, and applicable to sales of repair or replacement parts occurring on or after July 1, 1986; P.A. 87-314 amended Subsec.
(1) with respect to the period July 1, 1985, to June 30, 1987, as the period of time during which the rate of 2% of gross
receipts would be applicable in the case of sales of aviation fuel, by deleting the period of time reference, and accordingly
making said rate applicable after June 30, 1987, without limitation as to time, effective July 1, 1987, and applicable to
sales of aviation fuel on or after that date; P.A. 88-314 amended Subsec. (4) by increasing the fine to $500 for each violation
of the provisions of this Subsec., replacing the fine of not more than $100 for each such offense, effective July 1, 1988,
and applicable to any tax which first becomes due and payable on or after said date, to any return or report due on or after
said date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning
on or after said date; P.A. 89-251 increased the rate of tax in Subsec. (1) from 7.5% to 8% of gross receipts, with corresponding changes in the lower rates for certain sales, amended the brackets in Subsec. (3) for certain amounts of sale to reflect
the amounts of tax applicable with respect to the rate of 8% and added Subsec. (7) providing a method of computation of
tax for purposes of toll telephone service in coin-operated telephones; P.A. 90-336 added Subsec. (2)(B) allowing a cash-basis taxpayer to take credits for worthless accounts receivable with respect to sales occurring on or after July 1, 1989;
June Sp. Sess. P.A. 91-3 amended Subsecs. (1) and (3) to reduce the general rate to 6% and amended Subsec. (1) to increase
the rate with respect to the transfer of occupancy to 12%, to set the rate with respect to the sales of vessels to nonresidents
to the lesser of 6% or the rate in the home state of the nonresident and to provide for the payment of the tax on a cash basis
for retailers of services who are cash-basis taxpayers for federal purposes, effective August 22, 1991, and applicable to
sales occurring on or after October 1, 1991; June Sp. Sess. P.A. 91-14 amended Subsec. (1) to make the provisions relating
to vessels effective September 19, 1991; P.A. 92-184 amended Subsec. (1)(B) by adding "or space in a campground",
effective July 1, 1993; May Sp. Sess. P.A. 92-5 amended Subsec. (1) to make various technical and minor changes, effective
June 19, 1992, and applicable to sales occurring on or after July 1, 1992; May Sp. Sess. P.A. 92-17 amended Subsec. (1)
to remove the special rate on aviation fuel, provided for an affidavit, rather than registration in the home state, as proof of
out-of-state residence and made technical changes, effective June 19, 1992, and applicable to sales occurring on or after
July 1, 1992; P.A. 93-44 amended Subsec. (1) to apply provisions to persons rendering services under Sec. 12-407(2)(o)
and Sec. 19a-168b, effective April 23, 1993; P.A. 93-74 amended Subsec. (1) to exclude space in a campground, effective
May 19, 1993, and applicable to sales occurring on and after July 1, 1993; P.A. 93-332 amended Subsec. (2) to provide
that the amount of tax reimbursement shall be deemed a special fund in trust for the state, effective June 25, 1993; P.A.
94-9 amended Subsec. (1) to delete reference to Sec. 12-407(2)(o) and Sec. 19a-168b, effective April 1, 1994; May Sp.
Sess. P.A. 94-4 in Subsec. (1) added schedule for gradually reducing sales tax with respect to the sale of computer and
data processing, effective July 1, 1996, and applicable to sales occurring on or after said date; P.A. 95-160 in Subsec. (1)
delayed by one year schedule for reduction of tax with respect to computer and data processing in Subpara. (E), effective
July 1, 1997, and applicable to sales occurring on and after that date (Revisor's note: P.A. 95-160 also revised effective
date of May Sp. Sess. P.A. 94-4 but without affecting this section); P.A. 96-139 changed effective date of P.A. 95-160 to
make applicable to sales occurring on or after July 1, 1996; P.A. 96-232 amended Subdiv. (1) to provide lower rates for
tax on sale of repair or maintenance services on vessels, effective June 6, 1996, and applicable to sales occurring on and
after July 1, 1997; P.A. 97-243 amended Subsec. (1) to add requirement that retailer maintain an affidavit or other evidence
with respect to sales of motor vehicles to members of the armed forces concerning the buyer's state of residence, to provide
that the tax rate on vessels sold to nonresidents is the lesser of 6% or the tax rate in the state in which the individual resides,
and to make technical and renumbering changes, effective June 24, 1997, and applicable to sales occurring on or after
October 1, 1997; P.A. 98-110 deleted Subsec. (1)(A) re repair or replacement parts and reletter remaining Subdivs., effective
May 19, 1998, and applicable to sales occurring on or after January 1, 1999; P.A. 98-244 amended Subsec. (1)(c) to allow
reduction in tax rate and exemption for military when the name of the spouse is on the title of the motor vehicle, effective
June 8, 1998, and applicable to sales occurring on or after October 1, 1998; P.A. 98-262 amended Subsec. (2) to clarify
language with respect to statute of limitations re bad debt write-off and made technical renumbering and relettering changes,
effective June 8, 1998; P.A. 99-48 amended Subsec. (2) to change reference to Sec. 12-415(8) to Sec. 12-415(g), effective
January 1, 2000; P.A. 99-173 amended Subsec. (1) to make technical changes, to delete provisions re sale of a vessel to
an individual who does not maintain a permanent place of abode in this state, to exempt labor services on vesels, to reduce
the tax rate to 4% effective July 1, 1999, to 2% on July 1, 2000, and eliminate the tax on July 1, 2001, for paving, painting,
staining, wallpapering, roofing, siding, and exterior sheet metal work services on residential properties, and to reduce the
tax rate on hospital services from 6% to 5.75%, and added new Subsec. (2)(C) allowing building material suppliers the
option of remitting sales tax when they receive payment, effective June 23, 1999, and applicable to sales occurring on or
after July 1, 1999; P.A. 00-170 amended Subsec. (1) to phase out the tax on Internet access services on and after July 1,
2001, effective May 26, 2000; P.A. 00-174 amended Subsec. (1) to eliminate affidavit requirement for motor vehicle sales
to armed forces personnel, to add provisions re declaration, to provide an exemption for certain labor to existing vessels
and to delete requirement re furnishing of other states' tax information by the commissioner, effective October 1, 2000,
and applicable to sales made on or after that date; P.A. 00-230 made a technical change in Subsec. (2)(C); June Sp. Sess.
P.A. 01-6 amended Subdiv. (1)(F) to suspend the sales tax on patient care services for the biennium commencing July 1,
2001, and ending June 30, 2003, effective July 1, 2001, and applicable to sales occurring on or after that date; P.A. 02-3
amended Subdiv. (1) to provide that patient care services are those for which payment is received by the hospital, effective
February 28, 2002; P.A. 02-103 made technical changes in Subdiv. (1); May 9 Sp. Sess. P.A. 02-1 amended Subdiv. (1)
to extend the rate for computer and data processing services until July 1, 2004, effective July 1, 2002, and applicable to
sales occurring on or after said date; P.A. 03-2 added Subdiv. (1)(F) re 3% rate for certain advertising and public relations
services, effective February 28, 2003, and applicable to sales occurring on or after April 1, 2003; P.A. 03-4 added Subdiv.
(2)(D) re sale of newspapers, effective April 10, 2003, and applicable to sales occurring on or after April 1, 2003; June 30
Sp. Sess. P.A. 03-1 amended Subdiv. (1) to delete sunset of tax on computer and data processing in Subpara. (C)(i), to
eliminate tax on patient care services in Subpara. (E) and to remove provisions re certain advertising or public relations
services which had been added as Subpara. (F) by P.A. 03-2, effective August 16, 2003, and applicable to sales occurring
on or after July 1, 2003.
Cited. 134 C. 297. Cited. 144 C. 311. Cited. 158 C. 238. It is generally held that a general contractor who purchases
material from a retailer for use in the construction of a building for his customer is the "consumer" of those materials
within the meaning of that term as it appears in the statutes. 168 C. 597. Cited. 183 C. 194. Preprints of advertising matter
are not printed for resale and are therefore subject to sales tax on the transaction between the printer and the advertiser.
Id., 566. Cited. 187 C. 581. Cited. 210 C. 567. Cited. 216 C. 17. Cited. 222 C. 49. Cited. 231 C. 315. Cited. 235 C. 393.
Cited. 238 C. 571; Id., 761. Since statute does not expressly permit assignment of the right to the tax credit, no such
assignment is permitted. 274 C. 196.
Cited. 18 CA 434.
Services of self-employed welder exempt from sales tax. 30 CS 309. Cited. 41 CS 175.
Cited 5 Conn. Cir. Ct. 403.
Subsec. (1):
Tax imposed on rental payments from July 1, 1975, does not result in double taxation since sales tax paid on property
purchased before that date was imposed on lessors and levied on purchase, while tax imposed after that date was imposed
on lessees and is levied on rent. 174 C. 51. Cited. 198 C. 413; Id., 624. Cited. 204 C. 122. Cited. 221 C. 751.
Cited. 2 CA 303.
Receipts of catering business subject to sales tax. Where owner innocently failed to file return for twenty-one years,
held recovery of sales taxes limited to three years and penalty and interest. 31 CS 373. Sales tax to be collected, if at all,
at time of original transfer. 37 CS 642. Cited. 39 CS 234. Cited. 44 CS 1; Id., 133.
Subsec. (2):
Tax is actually imposed upon purchaser and, where government is purchaser, no tax can be levied. 145 C. 161. Cited.
205 C. 51. Computer and data processing services including the development, creation or production of software are subject
to taxation pursuant to Sec. 12-407. 255 C. 498. Subdiv. (B): Tax credit is available only to retailer in initial sales transaction
responsible for remitting tax to Commissioner of Revenue Services. 274 C. 196.
Unless otherwise indicated in an agreement, applicable sales and use taxes are assumed to be included in the contract
price. Accordingly, plaintiff could not prevail on claim that it was authorized to add sales tax to rate set in contract. 96 CA 806.
Failure of a retailer to add the amount of the tax to the sale price at the time of sale precludes the tax from becoming a
debt of the consumer recoverable by the retailer. 36 CS 255. Sales tax to be collected, if at all, at time of original transfer.
37 CS 642. Cited. 44 CS 1.
Subsec. (4):
Subsection is directed to the retailer and would not seem to affect the consumer in any way. 36 CS 255.
