Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2012 Page 5
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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 is 6.35% for purchases of taxable
not pay Connecticut sales tax to a retailer. The use tax is
goods or services. The sales tax rate on computer and data
complementary to the sales tax. Together, the sales and use
processing services is 1%. However, the sales tax rate
taxes treat taxable purchases of goods and services that are
on certain items of tangible personal property is 7%. See
used in Connecticut equally, whether the goods and services
Schedule 4, Individual Use Tax, on Page 31.
are purchased within or outside Connecticut. If Connecticut
6. When must individuals pay use tax?
sales tax is not paid to the retailer at the time of purchase, you
You must pay use tax no later than April 15 for purchases
must pay the use tax directly to the Department of Revenue.
made during the preceding calendar year. Your use tax
2. On what kinds of goods or services must I pay
liability may be reported either on Form OP-186, Form
use tax?
CT-1040, or CT-1040NR/PY. If you are not required to fi le
You must pay use tax on taxable goods whether purchased,
a Connecticut income tax return, you must fi le and pay your
leased or rented, and taxable services. Examples of taxable
use tax liability using Form OP-186 no later than April 15.
goods include furniture, jewelry, automobiles, appliances,
You may fi le one Form OP-186 for the entire year or you may
cameras, computers, and computer software. Examples of
fi le several returns throughout the year.
taxable services include repair services to your television,
If you are engaged in a trade or business, you must register
motor vehicle, or computer; landscaping services for your
with DRS for business use tax and report purchases made in
home; and reupholstering services for your household
connection with your trade or business on Form OS-114,
furniture.
Sales and Use Tax Return.
3. Are there exemptions from the use tax?
7. Are there penalties and interest for not paying
Yes. Generally, any purchase or lease of goods or services
the use tax?
exempted from Connecticut sales tax is also exempted
Yes. The penalty is 10% of the tax due. Interest is charged at
from Connecticut use tax. Some examples are newspapers,
the rate of 1% per month from the due date of the tax return.
magazines by subscription, compact fl uorescent light bulbs,
There are also criminal sanctions for willful failure to fi le a
Internet access services, and repair and maintenance services
tax return.
to vessels.
8. How does an individual calculate their use tax
4. Do I owe Connecticut use tax on all my out-
liability?
of-state purchases of goods that are taxable in
Calculate the use tax by multiplying the total cost of the
Connecticut?
taxable goods or services purchased, including separately
No. If all the goods purchased and brought into Connecticut at
stated charges such as shipping and handling, by the
one time total $25 or less, you do not have to pay Connecticut
applicable sales tax rate (6.35%, 7%, or 1%).
use tax. The $25 exemption does not apply to goods shipped
or mailed to you.
9. What if I buy taxable goods or services in
another state and the vendor charges sales tax
Generally, if you purchased taxable goods from mail order
for the other state?
companies or over the Internet and had those goods shipped to
If the goods or services were purchased for use in Connecticut
Connecticut, or if you purchased taxable goods at out-of-state
and the tax paid in the other state is less than the Connecticut
locations and brought those goods back into Connecticut for
tax, you must report and pay the use tax. Your use tax due is
use in Connecticut, you must pay the Connecticut use tax if
the difference between the Connecticut tax and the tax paid
you did not pay Connecticut sales tax.
to the other state.
Electronic Filing!
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Page 5
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