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Connecticut Enacts Lessor Relief.


Leasing

In recently enacted legislation, a 1.5% surcharge has been imposed on machinery rented in the state for any period less than 31 days. This surcharge will be collected by the lessor. The lessor then must file an annual report by February 15th of each year detailing the amount collected from this surcharge. If the amount received is less than the amount the lessor paid in property taxes or vehicle registration and titling fees, no further action is required. If the amount of surcharge collected is greater than these taxes, the excess amount must be remitted to the state. The surcharge is in addition to any tax otherwise applicable to such a transaction. A piece of machinery is defined as being “heavy equipment without an operator that may be used for construction, mining or forestry.” This includes bulldozers, cranes and other such equipment. (Connecticut Senate Bill 1230, Effective July 1, 2005)

(11/21/2005)
(Archived)
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