Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2011 Page 5
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52Q & A About the Connecticut Individual Use Tax
For additional information, see Informational Publication 2011(15), Q&A on the Connecticut Individual Use Tax.
1. What is use tax?
5. What are the sales and use tax rates?
Use tax is the tax you are required to pay when you do
The general sales tax rate, effective for sales occurring on and
not pay Connecticut sales tax to a retailer. The use tax is
after July 1, 2011, is 6.35% for purchases of taxable goods
complementary to the sales tax. Together, the sales and use
or services; for sales occurring before July 1, 2011, is 6%.
taxes treat taxable purchases of goods and services that are
The sales tax rate on computer and data processing services
used in Connecticut equally, whether the goods and services
remains at 1%. However, the sales tax rate on certain items of
are purchased within or outside Connecticut. If Connecticut
tangible personal property purchased on or after July 1, 2011,
sales tax is not paid to the retailer at the time of purchase, you
is 7%. See Use Tax, on Page 4.
must pay the use tax directly to the Department of Revenue.
6. When must individuals pay use tax?
2. On what kinds of goods or services must I pay
You must pay use tax no later than April 15 for purchases
use tax?
made during the preceding calendar year. Your use tax
You must pay use tax on taxable goods whether purchased,
liability may be reported either on Form OP-186, Form
leased or rented, and taxable services. Examples of taxable
CT-1040, or CT-1040NR/PY. If you are not required to fi le
goods include furniture, jewelry, automobiles, appliances,
a Connecticut income tax return, you must fi le and pay your
cameras, computers, and computer software. Examples of
use tax liability using Form OP-186 no later than April 15.
taxable services include repair services to your television,
You may fi le one Form OP-186 for the entire year or you may
motor vehicle, or computer; landscaping services for your
fi le several returns throughout the year.
home; and reupholstering services for your household
If you are engaged in a trade or business, you must register
furniture.
with DRS for business use tax and report purchases made in
connection with your trade or business on Form OS-114,
3. Are there exemptions from the use tax?
Sales and Use Tax Return.
Yes. Generally, any purchase or lease of goods or services
exempted from Connecticut sales tax is also exempted
7. Are there penalties and interest for not paying
from Connecticut use tax. Some examples are newspapers,
the use tax?
magazines by subscription, compact fl uorescent light bulbs,
Yes. The penalty is 10% of the tax due. Interest is charged at
Internet access services, and repair and maintenance services
the rate of 1% per month from the due date of the tax return.
to vessels.
There are also criminal sanctions for willful failure to fi le a
tax return.
4. Do I owe Connecticut use tax on all my out-
of-state purchases of goods that are taxable in
8. How does an individual calculate their use tax
Connecticut?
liability?
No. If all the goods purchased and brought into Connecticut at
Calculate the use tax by multiplying the total cost of the
one time total $25 or less, you do not have to pay Connecticut
taxable goods or services purchased, including separately
use tax. The $25 exemption does not apply to goods shipped
stated charges such as shipping and handling, by the
or mailed to you.
applicable sales tax rate (6.0 %, 6.35%; 7%, or 1%).
Generally, if you purchased taxable goods from mail order
9. What if I buy taxable goods or services in
companies or over the Internet and had those goods shipped to
another state and the vendor charges sales tax
Connecticut, or if you purchased taxable goods at out-of-state
for the other state?
locations and brought those goods back into Connecticut for
If the goods or services were purchased for use in Connecticut
use in Connecticut, you must pay the Connecticut use tax if
and the tax paid in the other state is less than the Connecticut
you did not pay Connecticut sales tax.
tax, you must report and pay the use tax. Your use tax due is
the difference between the Connecticut tax and the tax paid
to the other state.
Electronic Filing!
Free and secure!
Page 5
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial