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  Sales and Use Tax
    Rental Surcharge

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  Business that rents passenger motor vehicles for periods of 30 consecutive calendar days or less consolidate the sales tax and surcharges.
  Question
  Q: May a business that rents passenger motor vehicles for periods of 30 consecutive calendar days or less consolidate the sales tax and surcharges that are imposed under Connecticut law?
  Answer
 

A: No. Each of the Connecticut taxes or surcharges must be calculated and displayed individually.

Connecticut imposes the following tax and surcharges on the rental of a motor vehicle for a period of 30 consecutive calendar days or less:

  • 3% motor vehicle rental surcharge;
  • 9.35% sales tax;
  • $1.00 a day tourism account surcharge

See Policy Statement 2002(5), The Motor Vehicle Rental Surcharge and the Tourism Account Surcharge for details on how to properly calculate the motor vehicle rental surcharge and the sales tax.

Example:A rental company rents a passenger motor vehicle to a lessee for five days. The rental company charges the lessee $40 per day for the rental of the motor vehicle.

This is an example of a proper invoice:

Rental charge
($40 multiplied by 5 days)

$200.00

Motor vehicle rental surcharge
(3%, or .03 multiplied by $200)

+ 6.00

Amount on which sales tax
must be charged and collected

$206.00

Sales tax
(9.35%, or .0935 multiplied by $206)

+ 19.26

Subtotal

$225.26

Tourism account surcharge
($1 multiplied by 5 days)

+ 5.00

Total

$230.26

(Updated: 2015)

This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services.  It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).  However, it is not intended to serve as a legal ruling.

 
 
 
  
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