A Managed Compliance Program Guide has been issued by the Connecticut Department of Revenue to explain three major categories: managed audit agreements, managed compliance agreements, and direct pay permits. Some details are given as to what an effective use tax rate is and how a direct payment permit works. An effective use tax rate is “the rate of use tax to be applied against a predetermined base of purchases to compute an eligible taxpayer’s use tax liability for a defined period of time.” This is calculated by obtaining the ratio of taxable purchases to total purchases made during the base period and then multiplying the ratio by 6% (use tax rate). A direct pay permit allows a taxpayer to pay use tax directly to the Department of Revenue rather than having to pay sales tax to a vendor upon purchase. You can view the entire document by clicking on the following link: Connecticut Department of Revenue Managed Compliance Program Guide (Connecticut Department of Revenue, CT-IP 2004(11), April 23, 2004)