![]() Review the list of five vehicles that fall under this state tax exemption: Some vehicles sold by dealers in the state of Connecticut might be exempt from the sales tax. ![]() Exempted Vehicles from Connecticut's Sales Tax After filling out the form, they need to submit it to a licensed dealer in the state with the required documents listed on it. Members of the military who qualify for Connecticut's reduced sales tax rate must complete a form CERT-135 through the DRS. How Are Vehicles of Military Personnel Taxed?Ĭonnecticut's DMV states that members of the United States armed forces who are Connecticut residents must pay the 6.35 percent rate on their vehicle's purchase.Ī full-time active duty member in Connecticut who is a resident of another state can buy a motor vehicle from a licensed dealer within the state at a sales tax rate of 4.5 percent.Ī military member's spouse can make a joint purchase on a vehicle if it's being purchased in the state. Gains or losses to the person who owns the vehicle do not show up on your federal income taxes due to the provisions stated in the Internal Revenue Code. If the car owner is a stockholder of a company that's transferring the vehicle. ![]() You have to list your car's make, year, model, and identification number to be eligible for this exemption. If you give proof of the previous taxable sale, transfer or use of your vehicle, and if you had to pay a sales or use tax to the State of Connecticut.Provide the date when you filed the exemption to Connecticut's Secretary of State. If a company transfers or sells a vehicle in connection with an organization or liquidation of limited liability business, according to the state's DRS.Here are four conditions for the Connecticut sales tax exemption on your vehicle: What Are the Four Conditions before a Company Vehicle Can Be Exempted from Sales Tax?Ĭompanies operating outside the state of Connecticut can get company vehicles exempted from sales tax. Documentation fees from the dealership for compiling sales documents.Ĭonnecticut's Department of Revenue Services (DRS) mandates that the Application for Registration and Title must list a vehicle's sales tax information and/or the total cost at the time of purchase.Some of the additional fees when purchasing a new vehicle include: These taxes differ from the state tax, and the state's DMV collects them. Aside from Sales Tax, What Are the Other Fees to Buy a Vehicle?Īccording to the Sales Tax Handbook, Connecticut residents or car buyers traveling to the state should expect to pay other fees when they purchase a vehicle. You can buy high-quality vehicles in 2020, as listed by Car and Driver, and get a good deal from the dealership. Since Connecticut is in the Northeast, consider buying a vehicle that can survive snow during the winter months and rain during the spring and the summer. The average shelf life of vehicles driven in Connecticut is 11.1 years, which is slightly shorter than the national average. You need to pay the tax for each car purchased, so it's important to stay mindful of how much mileage the car has at the time of purchase to make an economical choice. According to 2018 data gathered by Auto Alliance, the state of Connecticut made almost $476 million in total state tax revenue, with $377 million coming from state taxes on new vehicles. How Big Is the Vehicle Purchase Industry in Connecticut?Ī vehicle is one of the most common purchases made in Connecticut. Let's discuss more information related to Connecticut's sales tax on cars. According to Connecticut's Department of Motor Vehicles (DMV), you must pay a 6.35 percent sales tax (or 7.75 percent sales tax on vehicles over $50,000) upon the purchase of your vehicle from a licensed dealer. Knowing Connecticut's sales tax on cars is useful for when you're buying a vehicle in the state.
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