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General Assembly Committee Bill No. 5290
January Session, 2023
LCO No. 4995
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT SUNSETTING THE HIGHWAY USE TAX.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-493a of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) As used in this section: 3
(1) "Carrier" means any person that operates or causes to be operated 4
on any highway in this state any eligible motor vehicle. "Carrier" does 5
not include the state, any political subdivision of the state, the United 6
States or the federal government; 7
(2) "Commissioner" means the Commissioner of Revenue Services; 8
(3) "Department" means the Department of Revenue Services; 9
(4) "Eligible motor vehicle" means a motor vehicle, as defined in 10
section 14-1, that (A) has a gross weight of twenty-six thousand pounds 11
or more, and (B) carries a classification between Class 8 and Class 13, 12
inclusive, under the Federal Highway Administration vehicle 13
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classification system. "Eligible motor vehicle" does not include a motor 14
vehicle carrying or transporting milk or dairy product to or from a dairy 15
farm that holds a license to ship milk; 16
(5) "Gross weight" has the same meaning as provided in section 14-1; 17
and 18
(6) "Highway" has the same meaning as provided in section 14-1. 19
(b) (1) For each calendar month commencing on or after January 1, 20
2023, and prior to July 1, 2023, a tax is imposed on every carrier for the 21
privilege of operating or causing to be operated an eligible motor vehicle 22
on any highway of the state. Use of any such highway shall be measured 23
by the number of miles traveled within the state by each eligible motor 24
vehicle operated or caused to be operated by such carrier during each 25
month. The amount of tax due from each carrier shall be determined in 26
accordance with the provisions of subdivision (2) of this subsection. 27
(2) Each carrier shall calculate the number of miles traveled by each 28
eligible motor vehicle operated or caused to be operated by such carrier 29
within the state during each month. The miles traveled within the state 30
by each eligible motor vehicle shall be multiplied by the tax rate as 31
follows, such rate to be based on the gross weight of each such vehicle: 32
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
T12 46,001-48,000 0.0538
T13 48,001-50,000 0.0567
T14 50,001-52,000 0.0596
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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 33
last day of each month, a return for the calendar month immediately 34
preceding, in such form and containing such information as the 35
commissioner may prescribe. The return shall be accompanied by 36
payment of the amount of the tax shown to be due thereon. Each carrier 37
shall be required to file such return electronically with the department 38
and to make such payment by electronic funds transfer in the manner 39
provided by chapter 228g, irrespective of whether the carrier would 40
have otherwise been required to file such return electronically or to 41
make such payment by electronic funds transfer under the provisions of 42
said chapter. 43
(2) Notwithstanding the provisions of subsection (a) of section 13b-44
61, the commissioner shall deposit into the Special Transportation Fund 45
established under section 13b-68 the amounts received by the state from 46
the tax imposed under this section. 47
(d) (1) Each carrier desiring to use any highway of the state on or after 48
January 1, 2023, and prior to July 1, 2023, shall file an application for a 49
permit with the commissioner, in such form and containing such 50
information as the commissioner may prescribe. No carrier may 51
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lawfully operate or cause to be operated an eligible motor vehicle in the 52
state on or after January 1, 2023, and prior to July 1, 2023, without 53
obtaining a permit from the commissioner. 54
(2) Upon receipt of a fully completed application from a carrier, the 55
commissioner shall grant and issue a permit to such carrier. Such permit 56
shall be valid only for the carrier to which it is issued and the eligible 57
motor vehicles such carrier operates or causes to be operated on the 58
highways of the state and shall not be assignable. The carrier shall 59
maintain a copy of the permit within each eligible motor vehicle that 60
such carrier operates or causes to be operated in the state. 61
(e) (1) Whenever a carrier fails to comply with any provision of this 62
section, the commissioner shall order a hearing to be held, requiring 63
such carrier to show cause why such carrier's permit should not be 64
revoked or suspended. The commissioner shall provide at least ten days' 65
notice, in writing, to such carrier of the date, time and place of such 66
hearing and may serve such notice personally or by registered or 67
certified mail. If, after such hearing, the commissioner revokes or 68
suspends a permit, the commissioner shall not restore such permit to or 69
issue a new permit for such carrier unless the commissioner is satisfied 70
that the carrier will comply with the provisions of this section. 71
(2) Whenever a carrier files returns for four successive monthly 72
periods showing that none of the eligible motor vehicles operated or 73
caused to be operated by such carrier used any highway of the state, the 74
commissioner shall order a hearing to be held, requiring such carrier to 75
show cause why such carrier's permit should not be cancelled. The 76
commissioner shall provide at least thirty days' notice, in writing, to 77
such carrier of the date, time and place of such hearing and may serve 78
such notice personally or by registered or certified mail. If, after such 79
hearing, the commissioner cancels a permit, the commissioner shall not 80
issue a new permit for such carrier unless the commissioner is satisfied 81
that the carrier will make use of the highways of the state. 82
(f) Each person, other than a carrier, who is required, on behalf of 83
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such carrier, to collect, truthfully account for and pay over a tax imposed 84
on such carrier under this section and who wilfully fails to collect, 85
truthfully account for and pay over such tax or who wilfully attempts in 86
any manner to evade or defeat the tax or the payment thereof, shall, in 87
addition to other penalties provided by law, be liable for a penalty equal 88
to the total amount of the tax evaded, or not collected, or not accounted 89
for and paid over, including any penalty or interest attributable to such 90
wilful failure to collect or truthfully account for and pay over such tax 91
or such wilful attempt to evade or defeat such tax, provided such 92
penalty shall only be imposed against such person in the event that such 93
tax, penalty or interest cannot otherwise be collected from such carrier. 94
The amount of such penalty with respect to which a person may be 95
personally liable under this section shall be collected in accordance with 96
the provisions of subsection (n) of this section and any amount so 97
collected shall be allowed as a credit against the amount of such tax, 98
penalty or interest due and owing from the carrier. The dissolution of 99
the carrier shall not discharge any person in relation to any personal 100
liability under this section for wilful failure to collect or truthfully 101
account for and pay over such tax or for a wilful attempt to evade or 102
defeat such tax prior to dissolution, except as otherwise provided in this 103
section. For purposes of this subsection, "person" includes any 104
individual, corporation, limited liability company or partnership and 105
any officer or employee of any corporation, including a dissolved 106
corporation, and a member of or employee of any partnership or limited 107
liability company who, as such officer, employee or member, is under a 108
duty to file a tax return under this section on behalf of a carrier or to 109
collect or truthfully account for and pay over a tax imposed under this 110
section on behalf of such carrier. 111
(g) (1) The commissioner may examine the records of any carrier 112
subject to a tax imposed under the provisions of this section as the 113
commissioner deems necessary. If the commissioner determines that 114
there is a deficiency with respect to the payment of any such tax due 115
under the provisions of this section, the commissioner shall assess or 116
reassess the deficiency in tax, give notice of such deficiency assessment 117
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or reassessment to the taxpayer and make demand upon the taxpayer 118
for payment. Such amount shall bear interest at the rate of one per cent 119
per month or fraction thereof from the date when the original tax was 120
due and payable. When it appears that any part of the deficiency for 121
which a deficiency assessment is made is due to negligence or 122
intentional disregard of the provisions of this section or regulations 123
promulgated thereunder, there shall be imposed a penalty equal to ten 124
per cent of the amount of such deficiency assessment, or fifty dollars, 125
whichever is greater. When it appears that any part of the deficiency for 126
which a deficiency assessment is made is due to fraud or intent to evade 127
the provisions of this section or regulations promulgated thereunder, 128
there shall be imposed a penalty equal to twenty-five per cent of the 129
amount of such deficiency assessment. No taxpayer shall be subject to 130
more than one penalty under this subsection in relation to the same tax 131
period. Subject to the provisions of section 12-3a, the commissioner may 132
waive all or part of the penalties provided under this section when it is 133
proven to the commissioner's satisfaction that the failure to pay any tax 134
was due to reasonable cause and was not intentional or due to neglect. 135
Any decision rendered by any federal court holding that a taxpayer has 136
filed a fraudulent return with the Director of Internal Revenue shall 137
subject the taxpayer to the penalty imposed by this section without the 138
necessity of further proof thereof, except when it can be shown that the 139
return to the state so differed from the return to the federal government 140
as to afford a reasonable presumption that the attempt to defraud did 141
not extend to the return filed with the state. Within thirty days of the 142
mailing of such notice, the taxpayer shall pay to the commissioner, in 143
cash, or by check, draft or money order drawn to the order of the 144
Commissioner of Revenue Services, any additional amount of tax, 145
penalty and interest shown to be due. 146
(2) Except in the case of a wilfully false or fraudulent return with 147
intent to evade the tax, no assessment of additional tax shall be made 148
after the expiration of more than three years from the date of the filing 149
of a return or from the original due date of a return, whichever is later. 150
If no return has been filed as provided under the provisions of this 151
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section, the commissioner may make such return at any time thereafter, 152
according to the best information obtainable and according to the form 153
prescribed. To the tax imposed upon the basis of such return, there shall 154
be added an amount equal to ten per cent of such tax, or fifty dollars, 155
whichever is greater. The tax shall bear interest at the rate of one per 156
cent per month or fraction thereof from the due date of such tax to the 157
date of payment. Where, before the expiration of the period prescribed 158
herein for the assessment of an additional tax, a taxpayer has consented 159
in writing that such period may be extended, the amount of such 160
additional tax due may be determined at any time within such extended 161
period. The period so extended may be further extended by subsequent 162
consents in writing before the expiration of the extended period. 163
(h) (1) Any carrier believing that it has overpaid any taxes due under 164
the provisions of this section may file a claim for refund in writing with 165
the commissioner within three years from the due date for which such 166
overpayment was made, stating the specific grounds upon which the 167
claim is founded. Failure to file a claim within the time prescribed in this 168
section constitutes a waiver of any demand against the state on account 169
of overpayment. The commissioner shall review such claim within a 170
reasonable time and, if the commissioner determines that a refund is 171
due, the commissioner shall credit the overpayment against any amount 172
then due and payable from the carrier under this section or any 173
provision of the general statutes and shall refund any balance 174
remaining. The commissioner shall notify the Comptroller of the 175
amount of such refund and the Comptroller shall draw an order on the 176
Treasurer in the amount thereof for payment to such carrier. If the 177
commissioner determines that such claim is not valid, either in whole or 178
in part, the commissioner shall mail notice of the proposed disallowance 179
to the claimant, which notice shall set forth briefly the commissioner's 180
findings of fact and the basis of disallowance in each case decided in 181
whole or in part adversely to the claimant. Sixty days after the date on 182
which it is mailed, a notice of proposed disallowance shall constitute a 183
final disallowance except only for such amounts as to which the 184
taxpayer filed, as provided in subdivision (2) of this subsection, a 185
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written protest with the commissioner. 186
(2) On or before the sixtieth day after the mailing of the proposed 187
disallowance, the claimant may file with the commissioner a written 188
protest against the proposed disallowance in which the claimant shall 189
set forth the grounds on which the protest is based. If a protest is filed, 190
the commissioner shall reconsider the proposed disallowance and, if the 191
claimant has so requested, may grant or deny the claimant or the 192
claimant's authorized representatives an oral hearing. 193
(3) The commissioner shall mail notice of the commissioner's 194
determination to the claimant, which notice shall set forth briefly the 195
commissioner's findings of fact and the basis of decision in each case 196
decided in whole or in part adversely to the claimant. 197
(4) The action of the commissioner on the claimant's protest shall be 198
final upon the expiration of thirty days from the date on which the 199
commissioner mails notice of the commissioner's action to the claimant 200
unless within such period the claimant seeks judicial review of the 201
commissioner's determination pursuant to subsection (l) of this section. 202
(i) (1) Any person required under this section or regulations adopted 203
thereunder to pay any tax, make a return, keep any record or supply 204
any information, who wilfully fails to pay such tax, make such return, 205
keep such records or supply such information, at the time required by 206
law, shall, in addition to any other penalty provided by law, be fined 207
not more than one thousand dollars or imprisoned not more than one 208
year, or both. Notwithstanding the provisions of section 54-193, no 209
person shall be prosecuted for a violation of the provisions of this 210
subsection committed on or after January 1, 2023, and prior to July 1, 211
2023, except within three years next after such violation has been 212
committed. As used in this subsection, "person" includes any officer or 213
employee of a corporation or a member or employee of a partnership 214
under a duty to pay such tax, make such return, keep such records or 215
supply such information. 216
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(2) Any person who wilfully delivers or discloses to the commissioner 217
or the commissioner's authorized agent any list, return, account, 218
statement or other document, known by such person to be fraudulent 219
or false in any material matter, shall, in addition to any other penalty 220
provided by law, be guilty of a class D felony. No person shall be 221
charged with an offense under both subdivision (1) of this subsection 222
and this subdivision in relation to the same tax period but such person 223
may be charged and prosecuted for both such offenses upon the same 224
information. 225
(j) (1) Each carrier shall keep such records, receipts, invoices and other 226
pertinent papers in such form as the commissioner requires. 227
(2) In addition to the requirements set forth under subdivision (1) of 228
this subsection, each carrier shall maintain, on a monthly basis on and 229
after January 1, 2023, and prior to July 1, 2023, a list of all the eligible 230
motor vehicles that such carrier operates or causes to operate on a 231
highway in the state during such month. All such lists shall be 232
maintained by the carrier for not less than four years after the date of 233
each such month and shall be made available to the commissioner upon 234
request. 235
(3) The commissioner or the commissioner's authorized agent may 236
examine the records, receipts, invoices, other pertinent papers and 237
equipment of any person liable under the provisions of this section and 238
may investigate the character of the business of such person to verify 239
the accuracy of any return made or, if no return is made by such person, 240
to ascertain and determine the amount required to be paid. 241
(k) Any carrier that is aggrieved by the action of the commissioner or 242
an authorized agent of the commissioner in fixing the amount of any 243
tax, penalty or interest under this section may apply to the 244
commissioner, in writing, not later than sixty days after the notice of 245
such action is delivered or mailed to such carrier, for a hearing and a 246
correction of the amount of such tax, penalty or interest, setting forth the 247
reasons why such hearing should be granted and the amount by which 248
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such tax, penalty or interest should be reduced. The commissioner shall 249
promptly consider each such application and may grant or deny the 250
hearing requested. If the hearing request is denied, the carrier shall be 251
notified forthwith. If the hearing request is granted, the commissioner 252
shall notify the carrier of the date, time and place for such hearing. After 253
such hearing, the commissioner may make such order as appears just 254
and lawful to the commissioner and shall furnish a copy of such order 255
to the carrier. The commissioner may, by notice in writing, order a 256
hearing on the commissioner's own initiative and require a carrier or 257
any other individual who the commissioner believes to be in possession 258
of relevant information concerning such carrier to appear before the 259
commissioner or the commissioner's authorized agent with any 260
specified books of account, papers or other documents, for examination 261
under oath. 262
(l) Any carrier that is aggrieved because of any order, decision, 263
determination or disallowance the commissioner made under 264
subsection (h) or (k) of this section may, not later than thirty days after 265
service of notice of such order, decision, determination or disallowance, 266
take an appeal therefrom to the superior court for the judicial district of 267
New Britain, which appeal shall be accompanied by a citation to the 268
commissioner to appear before said court. Such citation shall be signed 269
by the same authority and such appeal shall be returnable at the same 270
time and served and returned in the same manner as is required in the 271
case of a summons in a civil action. The authority issuing the citation 272
shall take from the appellant a bond or recognizance to the state of 273
Connecticut, with surety, to prosecute the appeal to effect and to comply 274
with the orders and decrees of the court in the premises. Such appeals 275
shall be preferred cases, to be heard, unless cause appears to the 276
contrary, at the first session, by the court or by a committee appointed 277
by the court. Said court may grant such relief as may be equitable and, 278
if such tax has been paid prior to the granting of such relief, may order 279
the Treasurer to pay the amount of such relief. If the appeal has been 280
taken without probable cause, the court may tax double or triple costs, 281
as the case demands and, upon all such appeals that are denied, costs 282
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may be taxed against such carrier at the discretion of the court but no 283
costs shall be taxed against the state. 284
(m) The commissioner and any agent of the commissioner duly 285
authorized to conduct any inquiry, investigation or hearing pursuant to 286
this section shall have power to administer oaths and take testimony 287
under oath relative to the matter of inquiry or investigation. At any 288
hearing ordered by the commissioner, the commissioner or the 289
commissioner's agent authorized to conduct such hearing and having 290
authority by law to issue such process may subpoena witnesses and 291
require the production of books, papers and documents pertinent to 292
such inquiry or investigation. No witness under subpoena authorized 293
to be issued under the provisions of this section shall be excused from 294
testifying or from producing books, papers or documentary evidence on 295
the ground that such testimony or the production of such books, papers 296
or documentary evidence would tend to incriminate such witness, but 297
such books, papers or documentary evidence so produced shall not be 298
used in any criminal proceeding against such witness. If any person 299
disobeys such process or, having appeared in obedience thereto, refuses 300
to answer any pertinent question put to such person by the 301
commissioner or the commissioner's authorized agent, or to produce 302
any books, papers or other documentary evidence pursuant thereto, the 303
commissioner or such agent may apply to the superior court of the 304
judicial district wherein the carrier has a business address or wherein 305
the carrier's business has been conducted, or to any judge of such court 306
if the same is not in session, setting forth such disobedience to process 307
or refusal to answer, and such court or such judge shall cite such person 308
to appear before such court or such judge to answer such question or to 309
produce such books, papers or other documentary evidence and, upon 310
such person's refusal so to do, shall commit such person to a community 311
correctional center until such person testifies, but not for a period longer 312
than sixty days. Notwithstanding the serving of the term of such 313
commitment by any person, the commissioner may proceed in all 314
respects with such inquiry and examination as if the witness had not 315
previously been called upon to testify. Officers who serve subpoenas 316
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issued by the commissioner or under the commissioner's authority and 317
witnesses attending hearings conducted by the commissioner pursuant 318
to this section shall receive fees and compensation at the same rates as 319
officers and witnesses in the courts of this state, to be paid on vouchers 320
of the commissioner on order of the Comptroller from the proper 321
appropriation for the administration of this section. 322
(n) The amount of any tax, penalty or interest due and unpaid under 323
the provisions of this section may be collected under the provisions of 324
section 12-35. The warrant provided under said section shall be signed 325
by the commissioner or the commissioner's authorized agent. The 326
amount of any such tax, penalty and interest shall be a lien on the real 327
estate of the carrier from the last day of the month next preceding the 328
due date of such civil penalty until such civil penalty is paid. The 329
commissioner may record such lien in the records of any town in which 330
the real estate of such carrier is situated but no such lien shall be 331
enforceable against a bona fide purchaser or qualified encumbrancer of 332
such real estate. When any tax with respect to which a lien has been 333
recorded under the provisions of this subsection has been satisfied, the 334
commissioner shall, upon request of any interested party, issue a 335
certificate discharging such lien, which certificate shall be recorded in 336
the same office in which the lien was recorded. Any action for the 337
foreclosure of such lien shall be brought by the Attorney General in the 338
name of the state in the superior court for the judicial district in which 339
the real estate subject to such lien is situated, or, if such real estate is 340
located in two or more judicial districts, in the superior court for any one 341
such judicial district, and the court may limit the time for redemption or 342
order the sale of such real estate or pass such other or further decree as 343
it judges equitable. 344
(o) No tax credit or credits shall be allowable against the tax imposed 345
under this section. 346
(p) Any person who knowingly violates any provision of this section 347
for which no other penalty is provided shall be fined one thousand 348
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dollars. 349
(q) The commissioner may adopt regulations, in accordance with the 350
provisions of chapter 54, to implement the provisions of this section. 351
(r) At the close of [each fiscal year, commencing with] the fiscal year 352
ending June 30, 2023, [in which the tax imposed under the provisions of 353
this section is received by the commissioner,] the Comptroller is 354
authorized to record as revenue for such fiscal year the amount of such 355
tax that is received by the commissioner not later than five business days 356
from the July thirty-first immediately following the end of such fiscal 357
year. 358
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 12-493a
Statement of Purpose:
To sunset the highway use tax.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]
Co-Sponsors: REP. CANDELORA V., 86th Dist.; REP. O'DEA, 125th Dist.
REP. RUTIGLIANO, 123rd Dist.; REP. ACKERT, 8th Dist.
REP. PERILLO J., 113th Dist.; REP. ZUPKUS, 89th Dist.
REP. ZAWISTOWSKI, 61st Dist.; REP. CARNEY, 23rd Dist.
REP. DELNICKI, 14th Dist.; REP. FISHBEIN, 90th Dist.
REP. ANDERSON, 62nd Dist.; REP. NUCCIO, 53rd Dist.
H.B. 5290