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General Assembly Bill No. 6688
January Session, 2021
LCO No. 10300
Referred to Committee on No Committee
Introduced by:
REP. RITTER M., 1
st
Dist.
SEN. LOONEY, 11
th
Dist.
REP. ROJAS, 9
th
Dist.
SEN. DUFF, 25
th
Dist.
AN ACT CONCERNING A HIGHWAY USE FEE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage and applicable to calendar 1
months commencing on or after January 1, 2023) (a) As used in this section: 2
(1) "Carrier" means any person that operates or causes to be operated 3
on any highway in this state any eligible motor vehicle. "Carrier" does 4
not include the state, any political subdivision of the state, the United 5
States or the federal government; 6
(2) "Commissioner" means the Commissioner of Revenue Services; 7
(3) "Department" means the Department of Revenue Services; 8
(4) "Eligible motor vehicle" means a motor vehicle, as defined in 9
section 14-1 of the general statutes, that (A) has a gross weight of twenty-10
six thousand pounds or more, and (B) carries a classification between 11 Bill No.
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Class 8 and Class 13, inclusive, under the Federal Highway 12
Administration vehicle classification system; 13
(5) "Gross weight" has the same meaning as provided in section 14-1 14
of the general statutes; and 15
(6) "Highway" has the same meaning as provided in section 14-1 of 16
the general statutes. 17
(b) (1) For each calendar month commencing on or after January 1, 18
2023, a tax is imposed on every carrier for the privilege of operating or 19
causing to be operated an eligible motor vehicle on any highway of the 20
state. Use of any such highway shall be measured by the number of 21
miles traveled within the state by each eligible motor vehicle operated 22
or caused to be operated by such carrier during each month. The amount 23
of tax due from each carrier shall be determined in accordance with the 24
provisions of subdivision (2) of this subsection. 25
(2) Each carrier shall calculate the number of miles traveled by each 26
eligible motor vehicle operated or caused to be operated by such carrier 27
within the state during each month. The miles traveled within the state 28
by each eligible motor vehicle shall be multiplied by the tax rate as 29
follows, such rate to be based on the gross weight of each such vehicle: 30
T1 Gross Weight in Pounds Rate in Dollars
T2 26,000-28,000 0.0250
T3 28,001-30,000 0.0279
T4 30,001-32,000 0.0308
T5 32,001-34,000 0.0337
T6 34,001-36,000 0.0365
T7 36,001-38,000 0.0394
T8 38,001-40,000 0.0423
T9 40,001-42,000 0.0452
T10 42,001-44,000 0.0481
T11 44,001-46,000 0.0510 Bill No.
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T12 46,001-48,000 0.0538
T13 48,001-50,000 0.0567
T14 50,001-52,000 0.0596
T15 52,001-54,000 0.0625
T16 54,001-56,000 0.0654
T17 56,001-58,000 0.0683
T18 58,001-60,000 0.0712
T19 60,001-62,000 0.0740
T20 62,001-64,000 0.0769
T21 64,001-66,000 0.0798
T22 66,001-68,000 0.0827
T23 68,001-70,000 0.0856
T24 70,001-72,000 0.0885
T25 72,001-74,000 0.0913
T26 74,001-76,000 0.0942
T27 76,001-78,000 0.0971
T28 78,001-80,000 0.1000
T29 80,001 and over 0.1750
(c) (1) Each carrier shall file with the commissioner, on or before the 31
last day of each month, a return for the calendar month immediately 32
preceding, in such form and containing such information as the 33
commissioner may prescribe. The return shall be accompanied by 34
payment of the amount of the tax shown to be due thereon. Each carrier 35
shall be required to file such return electronically with the department 36
and to make such payment by electronic funds transfer in the manner 37
provided by chapter 228g of the general statutes, irrespective of whether 38
the carrier would have otherwise been required to file such return 39
electronically or to make such payment by electronic funds transfer 40
under the provisions of said chapter. 41
(2) Notwithstanding the provisions of subsection (a) of section 13b-42
61 of the general statutes, the commissioner shall deposit into the Special 43 Bill No.
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Transportation Fund established under section 13b-68 of the general 44
statutes the amounts received by the state from the tax imposed under 45
this section. 46
(d) (1) Each carrier desiring to use any highway of the state on or after 47
January 1, 2023, shall file an application for a permit with the 48
commissioner, in such form and containing such information as the 49
commissioner may prescribe. No carrier may lawfully operate or cause 50
to be operated an eligible motor vehicle in the state on or after January 51
1, 2023, without obtaining a permit from the commissioner. 52
(2) Upon receipt of a fully completed application from a carrier, the 53
commissioner shall grant and issue a permit to such carrier. Such permit 54
shall be valid only for the carrier to which it is issued and the eligible 55
motor vehicles such carrier operates or causes to be operated on the 56
highways of the state and shall not be assignable. The carrier shall 57
maintain a copy of the permit within each eligible motor vehicle that 58
such carrier operates or causes to be operated in the state. 59
(e) (1) Whenever a carrier fails to comply with any provision of this 60
section, the commissioner shall order a hearing to be held, requiring 61
such carrier to show cause why such carrier's permit should not be 62
revoked or suspended. The commissioner shall provide at least ten days' 63
notice, in writing, to such carrier of the date, time and place of such 64
hearing and may serve such notice personally or by registered or 65
certified mail. If, after such hearing, the commissioner revokes or 66
suspends a permit, the commissioner shall not restore such permit to or 67
issue a new permit for such carrier unless the commissioner is satisfied 68
that the carrier will comply with the provisions of this section. 69
(2) Whenever a carrier files returns for four successive monthly 70
periods showing that none of the eligible motor vehicles operated or 71
caused to be operated by such carrier used any highway of the state, the 72
commissioner shall order a hearing to be held, requiring such carrier to 73
show cause why such carrier's permit should not be cancelled. The 74
commissioner shall provide at least thirty days' notice, in writing, to 75 Bill No.
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such carrier of the date, time and place of such hearing and may serve 76
such notice personally or by registered or certified mail. If, after such 77
hearing, the commissioner cancels a permit, the commissioner shall not 78
issue a new permit for such carrier unless the commissioner is satisfied 79
that the carrier will make use of the highways of the state. 80
(f) Each person, other than a carrier, who is required, on behalf of 81
such carrier, to collect, truthfully account for and pay over a tax imposed 82
on such carrier under this section and who wilfully fails to collect, 83
truthfully account for and pay over such tax or who wilfully attempts in 84
any manner to evade or defeat the tax or the payment thereof, shall, in 85
addition to other penalties provided by law, be liable for a penalty equal 86
to the total amount of the tax evaded, or not collected, or not accounted 87
for and paid over, including any penalty or interest attributable to such 88
wilful failure to collect or truthfully account for and pay over such tax 89
or such wilful attempt to evade or defeat such tax, provided such 90
penalty shall only be imposed against such person in the event that such 91
tax, penalty or interest cannot otherwise be collected from such carrier. 92
The amount of such penalty with respect to which a person may be 93
personally liable under this section shall be collected in accordance with 94
the provisions of subsection (n) of this section and any amount so 95
collected shall be allowed as a credit against the amount of such tax, 96
penalty or interest due and owing from the carrier. The dissolution of 97
the carrier shall not discharge any person in relation to any personal 98
liability under this section for wilful failure to collect or truthfully 99
account for and pay over such tax or for a wilful attempt to evade or 100
defeat such tax prior to dissolution, except as otherwise provided in this 101
section. For purposes of this subsection, "person" includes any 102
individual, corporation, limited liability company or partnership and 103
any officer or employee of any corporation, including a dissolved 104
corporation, and a member of or employee of any partnership or limited 105
liability company who, as such officer, employee or member, is under a 106
duty to file a tax return under this section on behalf of a carrier or to 107
collect or truthfully account for and pay over a tax imposed under this 108
section on behalf of such carrier. 109 Bill No.
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(g) (1) The commissioner may examine the records of any carrier 110
subject to a tax imposed under the provisions of this section as the 111
commissioner deems necessary. If the commissioner determines that 112
there is a deficiency with respect to the payment of any such tax due 113
under the provisions of this section, the commissioner shall assess or 114
reassess the deficiency in tax, give notice of such deficiency assessment 115
or reassessment to the taxpayer and make demand upon the taxpayer 116
for payment. Such amount shall bear interest at the rate of one per cent 117
per month or fraction thereof from the date when the original tax was 118
due and payable. When it appears that any part of the deficiency for 119
which a deficiency assessment is made is due to negligence or 120
intentional disregard of the provisions of this section or regulations 121
promulgated thereunder, there shall be imposed a penalty equal to ten 122
per cent of the amount of such deficiency assessment, or fifty dollars, 123
whichever is greater. When it appears that any part of the deficiency for 124
which a deficiency assessment is made is due to fraud or intent to evade 125
the provisions of this section or regulations promulgated thereunder, 126
there shall be imposed a penalty equal to twenty-five per cent of the 127
amount of such deficiency assessment. No taxpayer shall be subject to 128
more than one penalty under this subsection in relation to the same tax 129
period. Subject to the provisions of section 12-3a of the general statutes, 130
the commissioner may waive all or part of the penalties provided under 131
this section when it is proven to the commissioner's satisfaction that the 132
failure to pay any tax was due to reasonable cause and was not 133
intentional or due to neglect. Any decision rendered by any federal 134
court holding that a taxpayer has filed a fraudulent return with the 135
Director of Internal Revenue shall subject the taxpayer to the penalty 136
imposed by this section without the necessity of further proof thereof, 137
except when it can be shown that the return to the state so differed from 138
the return to the federal government as to afford a reasonable 139
presumption that the attempt to defraud did not extend to the return 140
filed with the state. Within thirty days of the mailing of such notice, the 141
taxpayer shall pay to the commissioner, in cash, or by check, draft or 142
money order drawn to the order of the Commissioner of Revenue 143
Services, any additional amount of tax, penalty and interest shown to be 144 Bill No.
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due. 145
(2) Except in the case of a wilfully false or fraudulent return with 146
intent to evade the tax, no assessment of additional tax shall be made 147
after the expiration of more than three years from the date of the filing 148
of a return or from the original due date of a return, whichever is later. 149
If no return has been filed as provided under the provisions of this 150
section, the commissioner may make such return at any time thereafter, 151
according to the best information obtainable and according to the form 152
prescribed. To the tax imposed upon the basis of such return, there shall 153
be added an amount equal to ten per cent of such tax, or fifty dollars, 154
whichever is greater. The tax shall bear interest at the rate of one per 155
cent per month or fraction thereof from the due date of such tax to the 156
date of payment. Where, before the expiration of the period prescribed 157
herein for the assessment of an additional tax, a taxpayer has consented 158
in writing that such period may be extended, the amount of such 159
additional tax due may be determined at any time within such extended 160
period. The period so extended may be further extended by subsequent 161
consents in writing before the expiration of the extended period. 162
(h) (1) Any carrier believing that it has overpaid any taxes due under 163
the provisions of this section may file a claim for refund in writing with 164
the commissioner within three years from the due date for which such 165
overpayment was made, stating the specific grounds upon which the 166
claim is founded. Failure to file a claim within the time prescribed in this 167
section constitutes a waiver of any demand against the state on account 168
of overpayment. The commissioner shall review such claim within a 169
reasonable time and, if the commissioner determines that a refund is 170
due, the commissioner shall credit the overpayment against any amount 171
then due and payable from the carrier under this section or any 172
provision of the general statutes and shall refund any balance 173
remaining. The commissioner shall notify the Comptroller of the 174
amount of such refund and the Comptroller shall draw an order on the 175
Treasurer in the amount thereof for payment to such carrier. If the 176
commissioner determines that such claim is not valid, either in whole or 177
in part, the commissioner shall mail notice of the proposed disallowance 178 Bill No.
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to the claimant, which notice shall set forth briefly the commissioner's 179
findings of fact and the basis of disallowance in each case decided in 180
whole or in part adversely to the claimant. Sixty days after the date on 181
which it is mailed, a notice of proposed disallowance shall constitute a 182
final disallowance except only for such amounts as to which the 183
taxpayer filed, as provided in subdivision (2) of this subsection, a 184
written protest with the commissioner. 185
(2) On or before the sixtieth day after the mailing of the proposed 186
disallowance, the claimant may file with the commissioner a written 187
protest against the proposed disallowance in which the claimant shall 188
set forth the grounds on which the protest is based. If a protest is filed, 189
the commissioner shall reconsider the proposed disallowance and, if the 190
claimant has so requested, may grant or deny the claimant or the 191
claimant's authorized representatives an oral hearing. 192
(3) The commissioner shall mail notice of the commissioner's 193
determination to the claimant, which notice shall set forth briefly the 194
commissioner's findings of fact and the basis of decision in each case 195
decided in whole or in part adversely to the claimant. 196
(4) The action of the commissioner on the claimant's protest shall be 197
final upon the expiration of thirty days from the date on which the 198
commissioner mails notice of the commissioner's action to the claimant 199
unless within such period the claimant seeks judicial review of the 200
commissioner's determination pursuant to subsection (l) of this section. 201
(i) (1) Any person required under this section or regulations adopted 202
thereunder to pay any tax, make a return, keep any record or supply 203
any information, who wilfully fails to pay such tax, make such return, 204
keep such records or supply such information, at the time required by 205
law, shall, in addition to any other penalty provided by law, be fined 206
not more than one thousand dollars or imprisoned not more than one 207
year, or both. Notwithstanding the provisions of section 54-193 of the 208
general statutes, no person shall be prosecuted for a violation of the 209
provisions of this subsection committed on or after January 1, 2023, 210 Bill No.
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except within three years next after such violation has been committed. 211
As used in this subsection, "person" includes any officer or employee of 212
a corporation or a member or employee of a partnership under a duty 213
to pay such tax, make such return, keep such records or supply such 214
information. 215
(2) Any person who wilfully delivers or discloses to the commissioner 216
or the commissioner's authorized agent any list, return, account, 217
statement or other document, known by such person to be fraudulent 218
or false in any material matter, shall, in addition to any other penalty 219
provided by law, be guilty of a class D felony. No person shall be 220
charged with an offense under both subdivision (1) of this subsection 221
and this subdivision in relation to the same tax period but such person 222
may be charged and prosecuted for both such offenses upon the same 223
information. 224
(j) (1) Each carrier shall keep such records, receipts, invoices and other 225
pertinent papers in such form as the commissioner requires. 226
(2) In addition to the requirements set forth under subdivision (1) of 227
this subsection, each carrier shall maintain, on a monthly basis, a list of 228
all the eligible motor vehicles that such carrier operates or causes to 229
operate on a highway in the state during such month. All such lists shall 230
be maintained by the carrier for not less than four years after the date of 231
each such month and shall be made available to the commissioner upon 232
request. 233
(3) The commissioner or the commissioner's authorized agent may 234
examine the records, receipts, invoices, other pertinent papers and 235
equipment of any person liable under the provisions of this section and 236
may investigate the character of the business of such person to verify 237
the accuracy of any return made or, if no return is made by such person, 238
to ascertain and determine the amount required to be paid. 239
(k) Any carrier that is aggrieved by the action of the commissioner or 240
an authorized agent of the commissioner in fixing the amount of any 241
tax, penalty or interest under this section may apply to the 242 Bill No.
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commissioner, in writing, not later than sixty days after the notice of 243
such action is delivered or mailed to such carrier, for a hearing and a 244
correction of the amount of such tax, penalty or interest, setting forth the 245
reasons why such hearing should be granted and the amount by which 246
such tax, penalty or interest should be reduced. The commissioner shall 247
promptly consider each such application and may grant or deny the 248
hearing requested. If the hearing request is denied, the carrier shall be 249
notified forthwith. If the hearing request is granted, the commissioner 250
shall notify the carrier of the date, time and place for such hearing. After 251
such hearing, the commissioner may make such order as appears just 252
and lawful to the commissioner and shall furnish a copy of such order 253
to the carrier. The commissioner may, by notice in writing, order a 254
hearing on the commissioner's own initiative and require a carrier or 255
any other individual who the commissioner believes to be in possession 256
of relevant information concerning such carrier to appear before the 257
commissioner or the commissioner's authorized agent with any 258
specified books of account, papers or other documents, for examination 259
under oath. 260
(l) Any carrier that is aggrieved because of any order, decision, 261
determination or disallowance the commissioner made under 262
subsection (h) or (k) of this section may, not later than thirty days after 263
service of notice of such order, decision, determination or disallowance, 264
take an appeal therefrom to the superior court for the judicial district of 265
New Britain, which appeal shall be accompanied by a citation to the 266
commissioner to appear before said court. Such citation shall be signed 267
by the same authority and such appeal shall be returnable at the same 268
time and served and returned in the same manner as is required in the 269
case of a summons in a civil action. The authority issuing the citation 270
shall take from the appellant a bond or recognizance to the state of 271
Connecticut, with surety, to prosecute the appeal to effect and to comply 272
with the orders and decrees of the court in the premises. Such appeals 273
shall be preferred cases, to be heard, unless cause appears to the 274
contrary, at the first session, by the court or by a committee appointed 275
by the court. Said court may grant such relief as may be equitable and, 276 Bill No.
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if such tax has been paid prior to the granting of such relief, may order 277
the Treasurer to pay the amount of such relief. If the appeal has been 278
taken without probable cause, the court may tax double or triple costs, 279
as the case demands and, upon all such appeals that are denied, costs 280
may be taxed against such carrier at the discretion of the court but no 281
costs shall be taxed against the state. 282
(m) The commissioner and any agent of the commissioner duly 283
authorized to conduct any inquiry, investigation or hearing pursuant to 284
this section shall have power to administer oaths and take testimony 285
under oath relative to the matter of inquiry or investigation. At any 286
hearing ordered by the commissioner, the commissioner or the 287
commissioner's agent authorized to conduct such hearing and having 288
authority by law to issue such process may subpoena witnesses and 289
require the production of books, papers and documents pertinent to 290
such inquiry or investigation. No witness under subpoena authorized 291
to be issued under the provisions of this section shall be excused from 292
testifying or from producing books, papers or documentary evidence on 293
the ground that such testimony or the production of such books, papers 294
or documentary evidence would tend to incriminate such witness, but 295
such books, papers or documentary evidence so produced shall not be 296
used in any criminal proceeding against such witness. If any person 297
disobeys such process or, having appeared in obedience thereto, refuses 298
to answer any pertinent question put to such person by the 299
commissioner or the commissioner's authorized agent, or to produce 300
any books, papers or other documentary evidence pursuant thereto, the 301
commissioner or such agent may apply to the superior court of the 302
judicial district wherein the carrier has a business address or wherein 303
the carrier's business has been conducted, or to any judge of such court 304
if the same is not in session, setting forth such disobedience to process 305
or refusal to answer, and such court or such judge shall cite such person 306
to appear before such court or such judge to answer such question or to 307
produce such books, papers or other documentary evidence and, upon 308
such person's refusal so to do, shall commit such person to a community 309
correctional center until such person testifies, but not for a period longer 310 Bill No.
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than sixty days. Notwithstanding the serving of the term of such 311
commitment by any person, the commissioner may proceed in all 312
respects with such inquiry and examination as if the witness had not 313
previously been called upon to testify. Officers who serve subpoenas 314
issued by the commissioner or under the commissioner's authority and 315
witnesses attending hearings conducted by the commissioner pursuant 316
to this section shall receive fees and compensation at the same rates as 317
officers and witnesses in the courts of this state, to be paid on vouchers 318
of the commissioner on order of the Comptroller from the proper 319
appropriation for the administration of this section. 320
(n) The amount of any tax, penalty or interest due and unpaid under 321
the provisions of this section may be collected under the provisions of 322
section 12-35 of the general statutes. The warrant provided under said 323
section shall be signed by the commissioner or the commissioner's 324
authorized agent. The amount of any such tax, penalty and interest shall 325
be a lien on the real estate of the carrier from the last day of the month 326
next preceding the due date of such civil penalty until such civil penalty 327
is paid. The commissioner may record such lien in the records of any 328
town in which the real estate of such carrier is situated but no such lien 329
shall be enforceable against a bona fide purchaser or qualified 330
encumbrancer of such real estate. When any tax with respect to which a 331
lien has been recorded under the provisions of this subsection has been 332
satisfied, the commissioner shall, upon request of any interested party, 333
issue a certificate discharging such lien, which certificate shall be 334
recorded in the same office in which the lien was recorded. Any action 335
for the foreclosure of such lien shall be brought by the Attorney General 336
in the name of the state in the superior court for the judicial district in 337
which the real estate subject to such lien is situated, or, if such real estate 338
is located in two or more judicial districts, in the superior court for any 339
one such judicial district, and the court may limit the time for 340
redemption or order the sale of such real estate or pass such other or 341
further decree as it judges equitable. 342
(o) No tax credit or credits shall be allowable against the tax imposed 343
under this section. 344 Bill No.
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(p) Any person who knowingly violates any provision of this section 345
for which no other penalty is provided shall be fined one thousand 346
dollars. 347
(q) The commissioner may adopt regulations, in accordance with the 348
provisions of chapter 54 of the general statutes, to implement the 349
provisions of this section. 350
(r) At the close of each fiscal year, commencing with the fiscal year 351
ending June 30, 2023, in which the tax imposed under the provisions of 352
this section is received by the commissioner, the Comptroller is 353
authorized to record as revenue for such fiscal year the amount of such 354
tax that is received by the commissioner not later than five business days 355
from the July thirty-first immediately following the end of such fiscal 356
year. 357
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage and
applicable to calendar
months commencing on or
after January 1, 2023
New section