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regardless of where the vehicle is subsequently used

or ultimately dropped off.

Part II. Motor Vehicle Rental Surcharge

In addition, if a lessee rents a passenger motor

Definitions: For purposes of the motor vehicle

vehicle from a person that is not a lessor or rents a

rental surcharge:

motor vehicle other than a passenger motor

Passenger motor vehicle means every vehicle that is a

vehicle, the rental is not subject to the tourism

“passenger motor vehicle,” as defined in Conn. Gen.

account surcharge.

Stat. §14-1(a)(59) (see above), that is rented without a

United States Government: A rental of a

driver and that is part of a motor vehicle fleet of five

passenger motor vehicle by an agency of the U.S.

or more passenger motor vehicles used for rental

government is not subject to the tourism account

purposes by a rental company. A passenger motor

surcharge as long as the agency (and not one of its

vehicle may be registered either with DMV or with a

employees) is the lessee.

similar department of another state.

United States Government Employees: The

Rental company means any business entity engaged

in the business of renting passenger motor vehicles

rental of a passenger motor vehicle by an employee of

without drivers in Connecticut to lessees and that uses

a U.S. government agency is subject to the surcharge

for rental purposes a motor vehicle fleet of five or

unless the rental company directly invoices and

more passenger motor vehicles in Connecticut.

charges the agency for the rental and the agency

directly pays the rental company for the rental. The

Rental company does not include any person, firm or

agency must pay with a check drawn on its own

corporation licensed or required to be licensed under

account or with a credit card issued in its name (and

Conn. Gen. Stat. §14-52 as a new car dealer, repairer

not in the name of one of its employees, unless the

or limited repairer. Rental company also does not

credit card is an exempt “GSA SmartPay” card).

include any person, firm or corporation licensed or

Subject to the conditions set out in Policy Statement

required to be licensed under Conn. Gen. Stat. §14-52

2000(1.1), Retailer’s Acceptance of U.S. Government

as a used car dealer, if the person, firm or corporation

“GSA SmartPay” Credit Card for Exempt Purchases,

is not primarily engaged in the business of renting

a rental of a passenger motor vehicle by an employee

passenger

motor

vehicles

without

drivers

of a U.S. government agency using an exempt “GSA

Connecticut to lessees.

Any affiliated or related

SmartPay” credit card issued in the name of the

person, firm or corporation that is otherwise a rental

employee is not subject to the tourism account

company but is not itself licensed or required to be

surcharge. However, a rental by an employee of a

licensed under Conn. Gen. Stat. §14-52 as a new car

U.S. government agency using any other credit card

dealer, used car dealer, repairer or limited repairer is

issued in the name of the employee or paying cash is

included in the definition of “rental company.”

subject to the surcharge.

Lessee means any person who rents a passenger motor

Diplomats:

Subject to the conditions set out in

vehicle from a rental company for the person’s own

Policy Statement 93(2), Sales and Use Tax

use and not for rental to others.

Exemptions for Diplomatic Personnel, the rental of a

passenger motor vehicle by a diplomat is not subject

Imposition of Surcharge: A 3% motor vehicle

to the surcharge.

rental surcharge is imposed on the total amount that

a rental company charges a lessee for the rental of a

All Other Rentals Subject to Tourism

passenger motor vehicle, where the vehicle is

Account Surcharge: All other leases or rentals of

delivered to a lessee in Connecticut for a period of 30

passenger motor vehicles for a term of 30 consecutive

consecutive calendar days or less. The surcharge

calendar days or less are subject to the tourism

applies

regardless

where

the

vehicle

account surcharge. This includes leases or rentals that

subsequently used or ultimately dropped off. The

are exempt from sales and use taxes, such as leases or

rental contract must separately state the amount of the

rentals to an agency of the State of Connecticut (or an

motor vehicle rental surcharge. The rental surcharge is

employee of the agency), a Connecticut municipality

added to the total amount that the rental company

(or an employee of the municipality), or a tax-exempt

charges the lessee for the rental of the vehicle. The

organization.

6% Connecticut sales tax must be charged and

collected on that sum.

Page of 4

Form Ps 2000(5) - The Motor Vehicle Rental Surcharge And The Tourism Account Surcharge - Instructions Page 2

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