Friday, August 14, 2015
A group of Connecticut’s Shoreline Republican state legislators are proposing legislation to eliminate the state’s gross receipts tax on propane, reports the office of state Sen. Paul Formica. Connecticut assesses a tax on fuel delivered to a customer who uses a propane tank connected to a generator. The 8.81% tax is assessed on the delivery ticket, even if the propane tank also supplies exempt uses such as a home’s space heating equipment, a cook stove, water heater, or pool.
Connecticut law says that in order to be exempt from the gross receipts tax propane “must be used exclusively for heating purposes.” Because propane to a generator produces electricity and not heat, the tax is supposed to be aimed at deliveries to tanks that supply generators exclusively. But emergency power should not be taxed, the lawmakers assert. “After the crazy weather we have experienced in recent years, many people bought generators,” said Formica. “They were trying to be proactive in case of another catastrophic event. Now they are finding out that they are getting taxed for thinking ahead.”
“This tax is unconscionable,” added Rep. Devin Carney. “The government recommends smart storm preparedness, yet taxes homeowners for doing just that. When the legislature meets next session, I intend to propose a bill to create a tax exemption for those using propane for all home and generator use, not just exclusively for heating. I hope my colleagues on the other side of the aisle will do what’s right for the people of Connecticut and support this proposal.”
The 2016 session of the Connecticut General Assembly begins in February. The Shoreline legislators said they would be pressing for a public hearing on the issue so that propane users can speak about the tax. “People are frustrated and want some action,” said Formica. “I intend to bring this up in my capacity as the ranking member of the Energy and Technology Committee.”
Connecticut law says that in order to be exempt from the gross receipts tax propane “must be used exclusively for heating purposes.” Because propane to a generator produces electricity and not heat, the tax is supposed to be aimed at deliveries to tanks that supply generators exclusively. But emergency power should not be taxed, the lawmakers assert. “After the crazy weather we have experienced in recent years, many people bought generators,” said Formica. “They were trying to be proactive in case of another catastrophic event. Now they are finding out that they are getting taxed for thinking ahead.”
“This tax is unconscionable,” added Rep. Devin Carney. “The government recommends smart storm preparedness, yet taxes homeowners for doing just that. When the legislature meets next session, I intend to propose a bill to create a tax exemption for those using propane for all home and generator use, not just exclusively for heating. I hope my colleagues on the other side of the aisle will do what’s right for the people of Connecticut and support this proposal.”
The 2016 session of the Connecticut General Assembly begins in February. The Shoreline legislators said they would be pressing for a public hearing on the issue so that propane users can speak about the tax. “People are frustrated and want some action,” said Formica. “I intend to bring this up in my capacity as the ranking member of the Energy and Technology Committee.”
