2018 Connecticut General Statutes
Title 12 - Taxation
Chapter 228h - Charges, Fees and Surcharge on Motor Vehicle, Truck and Machinery Rental
Section 12-692 - Individually itemized charges or other fees on passenger motor vehicle rental or rental truck. Machinery rental surcharge. Report and remittance. Penalties. Appeals.
(a) For purposes of this section:
(1) “Passenger motor vehicle” means a passenger vehicle, which is rented without a driver and which is part of a motor vehicle fleet of five or more passenger motor vehicles that are used for rental purposes by a rental company.
(2) “Rental truck” means a (A) vehicle rented without a driver that has a gross vehicle weight rating of twenty-six thousand pounds or less and is used in the transportation of personal property but not for business purposes, or (B) trailer that has a gross vehicle weight rating of not more than six thousand pounds.
(3) “Rental company” means any business entity that is engaged in the business of renting passenger motor vehicles, rental trucks without a driver or machinery in this state to lessees and that uses for rental purposes a motor vehicle fleet of five or more passenger motor vehicles, rental trucks or pieces of machinery in this state, but does not mean any person, firm or corporation that is licensed, or required to be licensed, pursuant to section 14-52, (A) as a new car dealer, repairer or limited repairer, or (B) as a used car dealer that is not primarily engaged in the business of renting passenger motor vehicles or rental trucks without a driver in this state to lessees. “Rental company” does not include a business entity with total annual rental income, excluding retail or wholesale sales of rental equipment, that is less than fifty-one per cent of the total revenue of the business entity in a given taxable year.
(4) “Lessee” means any person who leases a passenger motor vehicle, rental truck or machinery from a rental company for such person’s own use and not for rental to others.
(5) “Machinery” means all equipment owned by a rental company.
(b) (1) A rental company may charge a lessee individually itemized charges or other fees pursuant to a rental agreement, including, but not limited to, a vehicle cost recovery fee, airport access fee or airport concession fee on each passenger motor vehicle or rental truck rented within the state by a rental company to a lessee for a period of less than thirty-one days. If the rental company charges a lessee a vehicle cost recovery fee for a passenger motor vehicle or rental truck, such fee shall (A) represent the rental company’s estimate of the annual costs for any required licensing, titling, registration, tax or inspection of, or number plates for, such vehicle or truck, prorated to a daily rate, and (B) be described in the terms and conditions of the rental agreement as the estimated average per day cost incurred by the rental company to license, title, register, obtain number plates and inspect its passenger motor vehicle or rental truck and to pay any taxes owed on such vehicle or truck.
(2) If the total amount of the vehicle cost recovery fees collected by a rental company under this subsection in any calendar year exceeds such company’s actual costs to license, title, register, obtain number plates and inspect its passenger motor vehicles or rental trucks and pay any taxes owed on such vehicles or trucks, the rental company shall retain the excess amount and reduce its estimated costs to license, title, register, obtain number plates and inspect each passenger motor vehicle or rental truck and to pay any taxes owed on such vehicle or truck the following calendar year, by an amount equivalent to the excess amount. Nothing in this subsection shall be construed to prohibit a rental company from adjusting the amount of vehicle recovery fees charged during any calendar year.
(c) Any charge or fee imposed under subsection (b) of this section shall be imposed on the total amount the rental company charges the lessee for the rental of a motor vehicle. Any such charge or fee shall be in addition to any tax otherwise applicable to any such transaction and shall be includable in the measure of the sales and use taxes imposed under chapter 219.
(d) There is hereby imposed a one and one-half per cent surcharge on machinery rented within the state by a rental company to a lessee for a period of less than three hundred sixty-five days or under an open-ended contract for an undefined period of time. The rental surcharge shall be imposed on the total amount the rental company charges the lessee for the rental of the machinery. Such surcharge shall be in addition to any tax otherwise applicable to any such transaction, and shall be includable in the measure of the sales and use taxes imposed under chapter 219.
(e) Reimbursement for any charge, fee or rental surcharge imposed pursuant to subsections (b) to (d), inclusive, of this section shall be collected by the rental company from the lessee and such reimbursement shall be paid by the lessee to the rental company. Each rental company shall collect from the lessee the full amount of the charge, fee or rental surcharge imposed by said subsections (b) to (d), inclusive. Such charge, fee or rental surcharge shall be a debt from the lessee to the rental company, when so added to the original lease or rental price, and shall be recoverable at law in the same manner as other debts. The rental contract shall separately indicate the charge or fee imposed on each passenger motor vehicle or rental truck or the rental surcharge imposed on each piece of machinery. The rental surcharge imposed under subsection (d) of this section shall, subject to the provisions of subsection (f) of this section, be retained by the rental company.
(f) (1) (A) On or before February 15, 1997, and the fifteenth of February annually thereafter prior to February 15, 2019, each rental company shall file a consolidated report with the Commissioner of Revenue Services detailing the aggregate amount of personal property tax that is actually paid by such company to a Connecticut municipality or municipalities during the preceding calendar year on passenger motor vehicles, rental trucks or pieces of machinery that are used for rental purposes by such company, the aggregate amount of registration and titling fees that are actually paid by such company to the Department of Motor Vehicles of this state during the preceding calendar year on passenger motor vehicles, rental trucks or pieces of machinery that are used for rental purposes by such company and the aggregate amount of the rental surcharge that is actually received, pursuant to this section, by such company during the preceding calendar year on passenger motor vehicles, rental trucks or pieces of machinery that are used for rental purposes by such company. The report shall also show such other information as the commissioner deems necessary for the proper administration of this section.
(B) On or before February 15, 1997, and the fifteenth of February annually thereafter prior to February 15, 2019, each rental company shall remit to the Commissioner of Revenue Services for deposit in the General Fund, the amount by which the aggregate amount of the rental surcharge actually received by such company on such vehicles or machinery during the preceding calendar year exceeds the sum of the aggregate amount of property taxes actually paid by such company on such vehicles or machinery to a Connecticut municipality or municipalities during the preceding calendar year and the aggregate amount of registration and titling fees actually paid by such company on such vehicles or machinery to the Department of Motor Vehicles of this state during the preceding calendar year.
(C) For purposes of this subdivision, in the case of any rental company that leases a passenger motor vehicle, rental truck or piece of machinery from another person and that uses such vehicle or machinery for rental purposes and such lease requires such rental company to pay the registration and titling fees and the property taxes to such other person, the rental company shall include (i) in the aggregate amount of registration and titling fees actually paid by such rental company to the Department of Motor Vehicles of this state, any such registration and titling fees actually paid by such rental company to such other person on such passenger motor vehicle, rental truck or piece of machinery, and (ii) in the aggregate amount of property taxes actually paid by such rental company to a Connecticut municipality or municipalities, any such property taxes actually paid by such rental company to such other person on such passenger motor vehicle or vehicles, rental truck or trucks or one or more pieces of machinery.
(2) (A) On or before February 15, 2019, and the fifteenth of February annually thereafter, each rental company shall file a consolidated report with the Commissioner of Revenue Services detailing the aggregate amount of personal property tax that is actually paid by such company to a Connecticut municipality or municipalities during the preceding calendar year on pieces of machinery that are used for rental purposes by such company, the aggregate amount of registration and titling fees that are actually paid by such company to the Department of Motor Vehicles of this state during the preceding calendar year on pieces of machinery that are used for rental purposes by such company and the aggregate amount of the rental surcharge that is actually received, pursuant to this section, by such company during the preceding calendar year on pieces of machinery that are used for rental purposes by such company. The report shall also show such other information as the commissioner deems necessary for the proper administration of this section.
(B) On or before February 15, 2019, and the fifteenth of February annually thereafter, each rental company shall remit to the Commissioner of Revenue Services for deposit in the General Fund, the amount by which the aggregate amount of the rental surcharge actually received by such company on such machinery during the preceding calendar year exceeds the sum of the aggregate amount of property taxes actually paid by such company on such machinery to a Connecticut municipality or municipalities during the preceding calendar year and the aggregate amount of registration and titling fees actually paid by such company on such machinery to the Department of Motor Vehicles of this state during the preceding calendar year.
(C) For purposes of this subdivision, in the case of any rental company that leases a piece of machinery from another person and that uses such machinery for rental purposes and such lease requires such rental company to pay the registration and titling fees and the property taxes to such other person, the rental company shall include (i) in the aggregate amount of registration and titling fees actually paid by such rental company to the Department of Motor Vehicles of this state, any such registration and titling fees actually paid by such rental company to such other person on such piece of machinery, and (ii) in the aggregate amount of property taxes actually paid by such rental company to a Connecticut municipality or municipalities, any such property taxes actually paid by such rental company to such other person on one or more pieces of machinery.
(g) Any person who fails to pay any amount required to be paid to the Commissioner of Revenue Services under this section within the time required shall pay a penalty of fifteen per cent of such amount or fifty dollars, whichever amount is greater, in addition to such amount, plus interest at the rate of one per cent per month or fraction thereof from the due date of such amount until the date of payment. Subject to the provisions of section 12-3a, the commissioner may waive all or any part of the penalties provided under this section when it is proven to the satisfaction of the commissioner that the failure to pay any amount required to be paid to the commissioner was due to reasonable cause and was not intentional or due to neglect.
(h) The Commissioner of Revenue Services for good cause may extend the time for making any report and paying any amount required to be paid to the commissioner under this section if a written request therefor is filed with the commissioner together with a tentative report which shall be accompanied by a payment of any amount tentatively believed to be due to the commissioner, on or before the last day for filing the report. Any person to whom an extension is granted shall pay, in addition to the amount required to be paid, interest at the rate of one per cent per month or fraction thereof from the date on which such amount would have been due without the extension until the date of payment.
(i) The provisions of sections 12-548 to 12-554, inclusive, and section 12-555a shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections 12-548 to 12-554, inclusive, and section 12-555a had been incorporated in full into this section, except to the extent that any provision is inconsistent with a provision in this section, and except that the term “tax” shall be read as “charge, fee or rental surcharge”.
(P.A. 95-294, S. 1, 2; P.A. 96-129, S. 1, 2; June 18 Sp. Sess. P.A. 97-4, S. 6, 11; June 18 Sp. Sess. P.A. 97-11, S. 63, 65; P.A. 98-262, S. 9, 22; P.A. 02-70, S. 85; P.A. 03-278, S. 30; P.A. 05-163, S. 1; P.A. 07-254, S. 4; P.A. 15-244, S. 107; June Sp. Sess. P.A. 17-2, S. 653.)
History: P.A. 95-294 effective January 1, 1996, and applicable to rentals made on or after said date; P.A. 96-129 amended Subsec. (a)(2) to exclude motor vehicle repair shop from the definition of rental company, effective July 1, 1996, and applicable to rentals made on or after said date; June 18 Sp. Sess. P.A. 97-4 transferred filing requirements from the Secretary of Policy and Management to the Commissioner of Revenue Services, added penalty for failure to file, authorized the commissioner to extend the time for filing report, provided for the application of Secs. 12-548 to 12-554 and 12-555a to this section, changed motor vehicle to passenger motor vehicle and made technical changes, effective June 30, 1997; June 18 Sp. Sess. P.A. 97-11 changed effective date of June 18 Sp. Sess. P.A. 97-4 but without affecting this section; P.A. 98-262 amended Subsec. (a) to revise definition of “rental company” and add definition of “lessee” and added language in Subsec. (d) to clarify provisions re rental companies that lease passenger vehicles and that are contractually obligated to pay registration fees and property taxes, effective June 8, 1998, and applicable to calendar years commencing on or after January 1, 1998; P.A. 02-70 added definition of “rental truck” and made technical changes in Subsec. (a) and added provisions throughout extending the rental surcharge to rental trucks, effective July 1, 2002; P.A. 03-278 made a technical change in Subsec. (a)(2)(A), effective July 9, 2003; P.A. 05-163 added Subsec. (a)(5) defining “machinery”, added new Subsec. (c) imposing surcharge on machinery, redesignated existing Subsecs. (c) to (g) as new Subsecs. (d) to (h) and made conforming changes throughout, effective July 1, 2005; P.A. 07-254 amended Subsec. (c) by adding provision re when period commences and terminates, effective July 1, 2007; P.A. 15-244 amended Subsec. (a) to redefine “rental company” and “machinery”, amended Subsec. (c) to apply surcharge to machinery rentals of less than 365 days or under an open-ended contract for undefined period of time, and delete provisions re commencement and termination of period, and amended Subsec. (e)(1) to add provision requiring filing of consolidated report, effective July 1, 2015; June Sp. Sess. P.A. 17-2 substantially amended Subsec. (b) including by replacing 3 per cent surcharge on passenger motor vehicle or rental truck with reference to individually itemized charges or other fees, adding provisions re vehicle cost recovery fee, and designating existing provision re imposition on total amount rental company charges as Subsec. (c), redesignated existing Subsecs. (c) and (d) as Subsecs. (d) and (e), amended Subsec. (e) by redesignating existing Subdivs. (1) and (2) as Subsec. (f)(1)(A) and (B) and amending same by adding “prior to February 15, 2019”, redesignating existing Subdiv. (3) as Subsec. (f)(1)(C), and adding Subdiv. (2) re filing of consolidated report and remittance of rental surcharge on or before February 15, 2019, and the fifteenth of February annually thereafter, redesignated existing Subsecs. (f) and (g) as Subsecs. (g) and (h), and redesignated existing Subsec. (h) as Subsec. (i), and made technical and conforming changes, effective January 1, 2018.
