Federal & State Regulations | Motor carrier fuel/Highway use/Mileage tax - Connecticut

International Fuel Tax Agreement (IFTA)

IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and that:

Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
Has three or more axles regardless of weight; or
Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

IFTA fees

IFTA license, no fee

IFTA decals, $10 per vehicle

Temporary decal permit

Connecticut will issue a 30-day temporary decal permit until permanent decals are issued.

Fuel use tax

Connecticut has a fuel reporting law that applies to all fuels and to all qualified non-IFTA motor vehicles used, designed, or maintained for transportation of persons or property and (1) having two axles and a gross vehicle weight, or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms; or (2) having three or more axles regardless of weight; or (3) being used in combination when the combined gross vehicle weight or registered gross vehicle weight exceeds 26,000 pounds or 11,797 kilograms.

Carriers operating solely within Connecticut are not required to file quarterly reports but must sign, under penalty of law, an annual declaration on Form REG-3-MC that:

All of their qualified vehicles will be operated solely within Connecticut,
All of the motor fuel used in operating those vehicles will be purchased solely within Connecticut, and
Connecticut motor fuels tax will be paid on each such purchase.

Fees

Connecticut Motor Carrier Road Tax decals (2) — $10 per vehicle (renewable annually)

Mileage/highway use taxes

Beginning January 1, 2023, Connecticut imposes a highway use tax (HUT) on every “carrier” for the privilege of operating, or causing to be operated, certain heavy, multi-unit motor vehicles on any highway (i.e., public road) in the state. The HUT is calculated based on a vehicle’s weight and the number of miles driven in the state. Per-mile tax rates increase based on vehicle gross weight, ranging from 2.5 cents per mile for vehicles weighing 26,000-28,000 pounds to 17.5 cents per mile for vehicles weighing more than 80,000 pounds.

Carriers must register with the Department of Revenue Services (DRS), obtain HUT permits, and then file returns and remit the tax to the DRS.

Tax refunds or credits

IFTA

Connecticut will allow full credit for tax paid purchases on the quarterly IFTA return. Any excess of tax paid over tax liability in any member jurisdiction will be credited in full to the licensee's tax liability in other member jurisdictions, or to the licensee's account ledger as appropriate.

Under IFTA, a licensee will receive full credit or refund for tax-paid fuel used outside the jurisdiction where the fuel was purchased. The base jurisdiction shall allow credits and issue refunds for all of its licensees on behalf of all member jurisdictions. Refund to licensees will be made only when all tax liabilities, including audit assessments, have been satisfied to all member jurisdictions.

Information regarding credits or refunds under IFTA is included in the IFTA Agreement manual located at the beginning of this guide in Section XIII Credits and Refunds.

PTO/Reefer fuel

Connecticut does allow refunds for tax-paid fuel used in “reefer” or off-highway units or in power take-off equipment as long as the fuel is not consumed from the same fuel tank used to propel the power vehicle and the carrier can substantiate use. Refunds may be applied for by filing Form AU-724, Motor Vehicle Fuels Tax Refund Claim Off Highway, Governmental, & School Bus Use, as long as the claim pertains to at least 200 gallons of fuel eligible for refund, the slips or invoices issued at the time of purchase are submitted with the claim, and the claim is submitted on or before the last day of May following the calendar year during which the tax-paid fuel was purchased.

Refunds for fuel used during idle time are not allowed.

['Fleet Taxes']

['Highway use - Mileage tax']

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Motor carrier fuel/Highway use/Mileage tax - Connecticut