DMV: Sales Tax on Registrations

Sales Tax on Registrations

The Department of Revenue Services (DRS) requires that the sales tax information and/or purchase price be included on the Application for Registration and Title (form H-13).

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New Connecticut Residents - New Connecticut residents are not required to pay sales tax if the vehicle was registered in the same name in another state for at least 30 days prior to establishing Connecticut residency. You must complete section #6, if tax exemption is claimed on the Application for Registration and Title (form H-13). The proper code is #4. Write in order, (1) the state in which you were residing when you purchased the vehicle, (2) the date the vehicle was purchased, (3) the date the vehicle was registered in that state, and (4) the date the vehicle first moved to Connecticut.

Private (Casual) Sales - The purchase of passenger vehicles and light duty trucks (1991 model year and newer) purchased from private owners is subject to 6.35% (or 7% for vehicles over $50,000) Connecticut Sales and Use Tax based on the NADA average trade-in value or bill of sale value (whichever is higher). The purchase price must be written on the Application for Registration and Title (form H-13).

The procedure for anyone disputing the Sales and Use Tax valuation is to file a  Claim for Refund of Motor Vehicle Tax (form CERT-106) with the Department of Revenue Services.  This form is also available in DMV branch offices.   

Private sales of vehicles other than passenger cars and light duty trucks mentioned above are charged 6.35% (or 7% for vehicles over $50,000) sales and use tax based on the purchase price of the vehicle. A Bill of Sale is required.  

 

Out-of-State Purchases - Credit for sales tax paid out-of-state will be granted if the registrant provides supporting documentation (purchase invoice and tax receipt) showing submission of sales tax to the appropriate state agency. If the registrant paid less than 6.35% (or 7% for vehicles over $50,000) sales tax in another state they will be required to pay the additional tax to DMV when the vehicle is registered. 

If credit is not allowed due to insufficient documentation the registrant  will be required to pay the tax (6.35% or 7% for vehicles over $50,000) at the time of registration and may request a refund from Department of Revenue Services (DRS) by completing a Claim for Refund of Motor Vehicle Tax (form CERT-106) refund request form. 

Sales From Licensed Dealers - If the vehicle was purchased from a licensed dealer, the 6.35% (or 7% for vehicles over $50,000) sales and use tax is based on the purchase price. Full trade-in credit is allowed when computing the Connecticut Sales and Use tax, if the vehicle was purchased from a licensed dealer. 
 




Content Last Modified on 8/29/2013 11:06:12 AM