DMV: Tax Exempt Vehicles

Tax Exempt Vehicles

Effective July 1, 2011, the sales tax will be 6.35 percent for vehicles purchased at $50,000 or less.  In addition, the sales tax will be 7 percent for vehicles over $50,000.

A. FARM VEHICLES:

This vehicle is exempt from the 6% Connecticut sales/use tax if it is used directly in the agricultural production process. For tax exemption, you must present a valid Farmer's Tax Exemption Permit (form OR248 or R657) from:

Department of Revenue Services
25 Sigourney Street
Hartford, CT 06106


Note: The Farmer's Tax Exemption Permit (form OR248 or R657) must be in the same name as the farm registration in order to qualify for the tax exemption.


B. AMBULANCE VEHICLES:

The purchase of ambulance-type vehicles is tax exempt if the vehicles are used exclusively to transport medically incapacitated individuals who have no obligation to pay for transportation. Purchaser must supply a statement attesting that the conditions of this exemption are met.


C. DRIVER TRAINING VEHICLES:

Sometimes vehicle dealers provide free use of vehicles to high schools for driver training programs. If the vehicle is registered in the name of the high school or Board of Education, no tax is due. However, if the vehicle is registered in the dealer's name, a tax is due from the user based on the purchase price paid by the dealer to the manufacturer.


D. VEHICLES INVOLVED IN INTERSTATE COMMERCE:

No tax is due on the sale or lease of vehicles which are delivered outside Connecticut by seller to purchaser and are used within the borders of Connecticut only for carrying payloads (of passengers or freight). The vehicle must be used for interstate commerce exclusively over the life of the vehicle.


E. COMMERCIAL VEHICLES:

Commercial trucks, truck tractors, trailers, and semi-trailers are exempt from tax on the sale, rental, or lease if they have a gross vehicle weight rating in excess of 26,000 lbs.


F. HYBRID AND HIGH MILES PER GALLON (MPG) VEHICLES:

On and after October 1, 2004, and prior to October 1, 2008, Section 12-412(115) of Connecticut General Statutes exempts from sales or use tax, the sale of any passenger car utilizing hybrid technology that has a United States Environmental Protection Agency estimated highway gasoline mileage rating of at least forty miles per gallon. Public Act 2004-231,Section 7
At this time the following vehicles have been recognized by the Department of Revenue Services: This includes new and used vehicles.

                  1) Honda Civic Hybrid - 2003 through 2008

                  
2) Honda Insight - 2000 through 2007

                  
3) Toyota Prius - 2001 through 2008

For more information regarding tax exemption for Hybrid Vehicles Please visit the Department of Revenue Services Website.

On and after January 1, 2008, and prior to July 1, 2010, Section 12-412(110) of the Connecticut General Statute exempts from sales or use tax the sale of any high miles per gallon (mpg) passenger motor vehicle, as defined in section 14-1, that has a United States Environmental Protection Agency estimated city or highway gasoline mileage rating of at least forty miles per gallon.

For more information please visit the Department of Revenue Services website.





Content Last Modified on 6/29/2011 2:43:28 PM