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General Assembly Raised Bill No. 6931
January Session, 2023
LCO No. 6474
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING THE REPORTING FREQUENCY FOR 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 Section 12-493a of the general statutes is repealed and the 1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 July 1, 2023): 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 Raised Bill No. 6931
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inclusive, under the Federal Highway Administration vehicle 13
classification system. "Eligible motor vehicle" does not include a motor 14
vehicle carrying or transporting milk or dairy [product] products to or 15
from a dairy 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, and for each calendar quarter 21
commencing on or after July 1, 2023, a tax is imposed on every carrier 22
for the privilege of operating or causing to be operated an eligible motor 23
vehicle on any highway of the state. Use of any such highway shall be 24
measured by the number of miles traveled within the state by each 25
eligible motor vehicle operated or caused to be operated by such carrier 26
during each month prior to July 1, 2023, and during each calendar 27
quarter commencing on or after July 1, 2023. The amount of tax due from 28
each carrier shall be determined in accordance with the provisions of 29
subdivision (2) of this subsection. 30
(2) Each carrier shall calculate the number of miles traveled by each 31
eligible motor vehicle operated or caused to be operated by such carrier 32
within the state during each month prior to July 1, 2023, and during each 33
calendar quarter commencing on or after July 1, 2023. The miles traveled 34
within the state by each eligible motor vehicle shall be multiplied by the 35
tax rate as follows, such rate to be based on the gross weight of each 36
such vehicle: 37
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 Raised Bill No. 6931
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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
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 a return, (A) on or 38
before the last day of each month [, a return] prior to July 1, 2023, for the 39
calendar month immediately preceding, and (B) on or before the last day 40
of each month following the last day of a calendar quarter commencing 41
on or after July 1, 2023, for the calendar quarter immediately preceding, 42
in such form and containing such information as the commissioner may 43
prescribe. The return shall be accompanied by payment of the amount 44
of the tax shown to be due thereon. Each carrier shall be required to file 45
such return electronically with the department and to make such 46
payment by electronic funds transfer in the manner provided by chapter 47
228g, irrespective of whether the carrier would have otherwise been 48
required to file such return electronically or to make such payment by 49
electronic funds transfer under the provisions of said chapter. 50
(2) Notwithstanding the provisions of subsection (a) of section 13b-51
61, the commissioner shall deposit into the Special Transportation Fund 52
established under section 13b-68 the amounts received by the state from 53 Raised Bill No. 6931
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the tax imposed under this section. 54
(d) (1) Each carrier desiring to use any highway of the state on or after 55
January 1, 2023, shall file an application for a permit with the 56
commissioner, in such form and containing such information as the 57
commissioner may prescribe. No carrier may lawfully operate or cause 58
to be operated an eligible motor vehicle in the state on or after January 59
1, 2023, without obtaining a permit from the commissioner. 60
(2) Upon receipt of a fully completed application from a carrier, the 61
commissioner shall grant and issue a permit to such carrier. Such permit 62
shall be valid only for the carrier to which it is issued and the eligible 63
motor vehicles such carrier operates or causes to be operated on the 64
highways of the state and shall not be assignable. The carrier shall 65
maintain a copy of the permit within each eligible motor vehicle that 66
such carrier operates or causes to be operated in the state. 67
(e) (1) Whenever a carrier fails to comply with any provision of this 68
section, the commissioner shall order a hearing to be held, requiring 69
such carrier to show cause why such carrier's permit should not be 70
revoked or suspended. The commissioner shall provide at least ten days' 71
notice, in writing, to such carrier of the date, time and place of such 72
hearing and may serve such notice personally or by registered or 73
certified mail. If, after such hearing, the commissioner revokes or 74
suspends a permit, the commissioner shall not restore such permit to or 75
issue a new permit for such carrier unless the commissioner is satisfied 76
that the carrier will comply with the provisions of this section. 77
(2) Whenever a carrier files returns for four successive monthly 78
periods prior to July 1, 2023, or two successive calendar quarters on or 79
after July 1, 2023, showing that none of the eligible motor vehicles 80
operated or caused to be operated by such carrier used any highway of 81
the state, the commissioner shall order a hearing to be held, requiring 82
such carrier to show cause why such carrier's permit should not be 83
cancelled. The commissioner shall provide at least thirty days' notice, in 84
writing, to such carrier of the date, time and place of such hearing and 85 Raised Bill No. 6931
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may serve such notice personally or by registered or certified mail. If, 86
after such hearing, the commissioner cancels a permit, the commissioner 87
shall not issue a new permit for such carrier unless the commissioner is 88
satisfied that the carrier will make use of the highways of the state. 89
(f) Each person, other than a carrier, who is required, on behalf of 90
such carrier, to collect, truthfully account for and pay over a tax imposed 91
on such carrier under this section and who wilfully fails to collect, 92
truthfully account for and pay over such tax or who wilfully attempts in 93
any manner to evade or defeat the tax or the payment thereof, shall, in 94
addition to other penalties provided by law, be liable for a penalty equal 95
to the total amount of the tax evaded, or not collected, or not accounted 96
for and paid over, including any penalty or interest attributable to such 97
wilful failure to collect or truthfully account for and pay over such tax 98
or such wilful attempt to evade or defeat such tax, provided such 99
penalty shall only be imposed against such person in the event that such 100
tax, penalty or interest cannot otherwise be collected from such carrier. 101
The amount of such penalty with respect to which a person may be 102
personally liable under this section shall be collected in accordance with 103
the provisions of subsection (n) of this section and any amount so 104
collected shall be allowed as a credit against the amount of such tax, 105
penalty or interest due and owing from the carrier. The dissolution of 106
the carrier shall not discharge any person in relation to any personal 107
liability under this section for wilful failure to collect or truthfully 108
account for and pay over such tax or for a wilful attempt to evade or 109
defeat such tax prior to dissolution, except as otherwise provided in this 110
section. For purposes of this subsection, "person" includes any 111
individual, corporation, limited liability company or partnership and 112
any officer or employee of any corporation, including a dissolved 113
corporation, and a member of or employee of any partnership or limited 114
liability company who, as such officer, employee or member, is under a 115
duty to file a tax return under this section on behalf of a carrier or to 116
collect or truthfully account for and pay over a tax imposed under this 117
section on behalf of such carrier. 118
(g) (1) The commissioner may examine the records of any carrier 119 Raised Bill No. 6931
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subject to a tax imposed under the provisions of this section as the 120
commissioner deems necessary. If the commissioner determines that 121
there is a deficiency with respect to the payment of any such tax due 122
under the provisions of this section, the commissioner shall assess or 123
reassess the deficiency in tax, give notice of such deficiency assessment 124
or reassessment to the taxpayer and make demand upon the taxpayer 125
for payment. Such amount shall bear interest at the rate of one per cent 126
per month or fraction thereof from the date when the original tax was 127
due and payable. When it appears that any part of the deficiency for 128
which a deficiency assessment is made is due to negligence or 129
intentional disregard of the provisions of this section or regulations 130
promulgated thereunder, there shall be imposed a penalty equal to ten 131
per cent of the amount of such deficiency assessment, or fifty dollars, 132
whichever is greater. When it appears that any part of the deficiency for 133
which a deficiency assessment is made is due to fraud or intent to evade 134
the provisions of this section or regulations promulgated thereunder, 135
there shall be imposed a penalty equal to twenty-five per cent of the 136
amount of such deficiency assessment. No taxpayer shall be subject to 137
more than one penalty under this subsection in relation to the same tax 138
period. Subject to the provisions of section 12-3a, the commissioner may 139
waive all or part of the penalties provided under this section when it is 140
proven to the commissioner's satisfaction that the failure to pay any tax 141
was due to reasonable cause and was not intentional or due to neglect. 142
Any decision rendered by any federal court holding that a taxpayer has 143
filed a fraudulent return with the Director of Internal Revenue shall 144
subject the taxpayer to the penalty imposed by this section without the 145
necessity of further proof thereof, except when it can be shown that the 146
return to the state so differed from the return to the federal government 147
as to afford a reasonable presumption that the attempt to defraud did 148
not extend to the return filed with the state. Within thirty days of the 149
mailing of such notice, the taxpayer shall pay to the commissioner, in 150
cash, or by check, draft or money order drawn to the order of the 151
Commissioner of Revenue Services, any additional amount of tax, 152
penalty and interest shown to be due. 153 Raised Bill No. 6931
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(2) Except in the case of a wilfully false or fraudulent return with 154
intent to evade the tax, no assessment of additional tax shall be made 155
after the expiration of more than three years from the date of the filing 156
of a return or from the original due date of a return, whichever is later. 157
If no return has been filed as provided under the provisions of this 158
section, the commissioner may make such return at any time thereafter, 159
according to the best information obtainable and according to the form 160
prescribed. To the tax imposed upon the basis of such return, there shall 161
be added an amount equal to ten per cent of such tax, or fifty dollars, 162
whichever is greater. The tax shall bear interest at the rate of one per 163
cent per month or fraction thereof from the due date of such tax to the 164
date of payment. Where, before the expiration of the period prescribed 165
herein for the assessment of an additional tax, a taxpayer has consented 166
in writing that such period may be extended, the amount of such 167
additional tax due may be determined at any time within such extended 168
period. The period so extended may be further extended by subsequent 169
consents in writing before the expiration of the extended period. 170
(h) (1) Any carrier believing that it has overpaid any taxes due under 171
the provisions of this section may file a claim for refund in writing with 172
the commissioner within three years from the due date for which such 173
overpayment was made, stating the specific grounds upon which the 174
claim is founded. Failure to file a claim within the time prescribed in this 175
section constitutes a waiver of any demand against the state on account 176
of overpayment. The commissioner shall review such claim within a 177
reasonable time and, if the commissioner determines that a refund is 178
due, the commissioner shall credit the overpayment against any amount 179
then due and payable from the carrier under this section or any 180
provision of the general statutes and shall refund any balance 181
remaining. The commissioner shall notify the Comptroller of the 182
amount of such refund and the Comptroller shall draw an order on the 183
Treasurer in the amount thereof for payment to such carrier. If the 184
commissioner determines that such claim is not valid, either in whole or 185
in part, the commissioner shall mail notice of the proposed disallowance 186
to the claimant, which notice shall set forth briefly the commissioner's 187 Raised Bill No. 6931
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findings of fact and the basis of disallowance in each case decided in 188
whole or in part adversely to the claimant. Sixty days after the date on 189
which it is mailed, a notice of proposed disallowance shall constitute a 190
final disallowance except only for such amounts as to which the 191
taxpayer filed, as provided in subdivision (2) of this subsection, a 192
written protest with the commissioner. 193
(2) On or before the sixtieth day after the mailing of the proposed 194
disallowance, the claimant may file with the commissioner a written 195
protest against the proposed disallowance in which the claimant shall 196
set forth the grounds on which the protest is based. If a protest is filed, 197
the commissioner shall reconsider the proposed disallowance and, if the 198
claimant has so requested, may grant or deny the claimant or the 199
claimant's authorized representatives an oral hearing. 200
(3) The commissioner shall mail notice of the commissioner's 201
determination to the claimant, which notice shall set forth briefly the 202
commissioner's findings of fact and the basis of decision in each case 203
decided in whole or in part adversely to the claimant. 204
(4) The action of the commissioner on the claimant's protest shall be 205
final upon the expiration of thirty days from the date on which the 206
commissioner mails notice of the commissioner's action to the claimant 207
unless within such period the claimant seeks judicial review of the 208
commissioner's determination pursuant to subsection (l) of this section. 209
(i) (1) Any person required under this section or regulations adopted 210
thereunder to pay any tax, make a return, keep any record or supply 211
any information, who wilfully fails to pay such tax, make such return, 212
keep such records or supply such information, at the time required by 213
law, shall, in addition to any other penalty provided by law, be fined 214
not more than one thousand dollars or imprisoned not more than one 215
year, or both. Notwithstanding the provisions of section 54-193, no 216
person shall be prosecuted for a violation of the provisions of this 217
subsection committed on or after January 1, 2023, except within three 218
years next after such violation has been committed. As used in this 219 Raised Bill No. 6931
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subsection, "person" includes any officer or employee of a corporation 220
or a member or employee of a partnership under a duty to pay such tax, 221
make such return, keep such records or supply such information. 222
(2) Any person who wilfully delivers or discloses to the commissioner 223
or the commissioner's authorized agent any list, return, account, 224
statement or other document, known by such person to be fraudulent 225
or false in any material matter, shall, in addition to any other penalty 226
provided by law, be guilty of a class D felony. No person shall be 227
charged with an offense under both subdivision (1) of this subsection 228
and this subdivision in relation to the same tax period but such person 229
may be charged and prosecuted for both such offenses upon the same 230
information. 231
(j) (1) Each carrier shall keep such records, receipts, invoices and other 232
pertinent papers in such form as the commissioner requires. 233
(2) In addition to the requirements set forth under subdivision (1) of 234
this subsection, each carrier shall maintain, on a monthly basis prior to 235
July 1, 2023, and on a quarterly basis on and after July 1, 2023, a list of 236
all the eligible motor vehicles that such carrier operates or causes to 237
operate on a highway in the state during such month or quarter, as 238
applicable. All such lists shall be maintained by the carrier for not less 239
than four years after the date of each such month or the last day of each 240
such quarter, as applicable, and shall be made available to the 241
commissioner upon request. 242
(3) The commissioner or the commissioner's authorized agent may 243
examine the records, receipts, invoices, other pertinent papers and 244
equipment of any person liable under the provisions of this section and 245
may investigate the character of the business of such person to verify 246
the accuracy of any return made or, if no return is made by such person, 247
to ascertain and determine the amount required to be paid. 248
(k) Any carrier that is aggrieved by the action of the commissioner or 249
an authorized agent of the commissioner in fixing the amount of any 250
tax, penalty or interest under this section may apply to the 251 Raised Bill No. 6931
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commissioner, in writing, not later than sixty days after the notice of 252
such action is delivered or mailed to such carrier, for a hearing and a 253
correction of the amount of such tax, penalty or interest, setting forth the 254
reasons why such hearing should be granted and the amount by which 255
such tax, penalty or interest should be reduced. The commissioner shall 256
promptly consider each such application and may grant or deny the 257
hearing requested. If the hearing request is denied, the carrier shall be 258
notified forthwith. If the hearing request is granted, the commissioner 259
shall notify the carrier of the date, time and place for such hearing. After 260
such hearing, the commissioner may make such order as appears just 261
and lawful to the commissioner and shall furnish a copy of such order 262
to the carrier. The commissioner may, by notice in writing, order a 263
hearing on the commissioner's own initiative and require a carrier or 264
any other individual who the commissioner believes to be in possession 265
of relevant information concerning such carrier to appear before the 266
commissioner or the commissioner's authorized agent with any 267
specified books of account, papers or other documents, for examination 268
under oath. 269
(l) Any carrier that is aggrieved because of any order, decision, 270
determination or disallowance the commissioner made under 271
subsection (h) or (k) of this section may, not later than thirty days after 272
service of notice of such order, decision, determination or disallowance, 273
take an appeal therefrom to the superior court for the judicial district of 274
New Britain, which appeal shall be accompanied by a citation to the 275
commissioner to appear before said court. Such citation shall be signed 276
by the same authority and such appeal shall be returnable at the same 277
time and served and returned in the same manner as is required in the 278
case of a summons in a civil action. The authority issuing the citation 279
shall take from the appellant a bond or recognizance to the state of 280
Connecticut, with surety, to prosecute the appeal to effect and to comply 281
with the orders and decrees of the court in the premises. Such appeals 282
shall be preferred cases, to be heard, unless cause appears to the 283
contrary, at the first session, by the court or by a committee appointed 284
by the court. Said court may grant such relief as may be equitable and, 285 Raised Bill No. 6931
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if such tax has been paid prior to the granting of such relief, may order 286
the Treasurer to pay the amount of such relief. If the appeal has been 287
taken without probable cause, the court may tax double or triple costs, 288
as the case demands and, upon all such appeals that are denied, costs 289
may be taxed against such carrier at the discretion of the court but no 290
costs shall be taxed against the state. 291
(m) The commissioner and any agent of the commissioner duly 292
authorized to conduct any inquiry, investigation or hearing pursuant to 293
this section shall have power to administer oaths and take testimony 294
under oath relative to the matter of inquiry or investigation. At any 295
hearing ordered by the commissioner, the commissioner or the 296
commissioner's agent authorized to conduct such hearing and having 297
authority by law to issue such process may subpoena witnesses and 298
require the production of books, papers and documents pertinent to 299
such inquiry or investigation. No witness under subpoena authorized 300
to be issued under the provisions of this section shall be excused from 301
testifying or from producing books, papers or documentary evidence on 302
the ground that such testimony or the production of such books, papers 303
or documentary evidence would tend to incriminate such witness, but 304
such books, papers or documentary evidence so produced shall not be 305
used in any criminal proceeding against such witness. If any person 306
disobeys such process or, having appeared in obedience thereto, refuses 307
to answer any pertinent question put to such person by the 308
commissioner or the commissioner's authorized agent, or to produce 309
any books, papers or other documentary evidence pursuant thereto, the 310
commissioner or such agent may apply to the superior court of the 311
judicial district wherein the carrier has a business address or wherein 312
the carrier's business has been conducted, or to any judge of such court 313
if the same is not in session, setting forth such disobedience to process 314
or refusal to answer, and such court or such judge shall cite such person 315
to appear before such court or such judge to answer such question or to 316
produce such books, papers or other documentary evidence and, upon 317
such person's refusal so to do, shall commit such person to a community 318
correctional center until such person testifies, but not for a period longer 319 Raised Bill No. 6931
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than sixty days. Notwithstanding the serving of the term of such 320
commitment by any person, the commissioner may proceed in all 321
respects with such inquiry and examination as if the witness had not 322
previously been called upon to testify. Officers who serve subpoenas 323
issued by the commissioner or under the commissioner's authority and 324
witnesses attending hearings conducted by the commissioner pursuant 325
to this section shall receive fees and compensation at the same rates as 326
officers and witnesses in the courts of this state, to be paid on vouchers 327
of the commissioner on order of the Comptroller from the proper 328
appropriation for the administration of this section. 329
(n) The amount of any tax, penalty or interest due and unpaid under 330
the provisions of this section may be collected under the provisions of 331
section 12-35. The warrant provided under said section shall be signed 332
by the commissioner or the commissioner's authorized agent. The 333
amount of any such tax, penalty and interest shall be a lien on the real 334
estate of the carrier from the last day of the month next preceding the 335
due date of such civil penalty until such civil penalty is paid. The 336
commissioner may record such lien in the records of any town in which 337
the real estate of such carrier is situated but no such lien shall be 338
enforceable against a bona fide purchaser or qualified encumbrancer of 339
such real estate. When any tax with respect to which a lien has been 340
recorded under the provisions of this subsection has been satisfied, the 341
commissioner shall, upon request of any interested party, issue a 342
certificate discharging such lien, which certificate shall be recorded in 343
the same office in which the lien was recorded. Any action for the 344
foreclosure of such lien shall be brought by the Attorney General in the 345
name of the state in the superior court for the judicial district in which 346
the real estate subject to such lien is situated, or, if such real estate is 347
located in two or more judicial districts, in the superior court for any one 348
such judicial district, and the court may limit the time for redemption or 349
order the sale of such real estate or pass such other or further decree as 350
it judges equitable. 351
(o) No tax credit or credits shall be allowable against the tax imposed 352
under this section. 353 Raised Bill No. 6931
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(p) Any person who knowingly violates any provision of this section 354
for which no other penalty is provided shall be fined one thousand 355
dollars. 356
(q) The commissioner may adopt regulations, in accordance with the 357
provisions of chapter 54, to implement the provisions of this section. 358
(r) At the close of each fiscal year, commencing with the fiscal year 359
ending June 30, 2023, in which the tax imposed under the provisions of 360
this section is received by the commissioner, the Comptroller is 361
authorized to record as revenue for such fiscal year the amount of such 362
tax that is received by the commissioner not later than five business days 363
from the July thirty-first immediately following the end of such fiscal 364
year. 365
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 12-493a
Statement of Purpose:
To authorize carriers to file a return for and pay the highway use tax on
a quarterly basis rather than monthly on and after July 1, 2023.
[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.]