AN ACT CONCERNING THE SALES TAX LIABILITY OF ASPHALT MANUFACTURERS.
AN ACT CONCERNING THE SALES TAX LIABILITY OF ASPHALT MANUFACTURERS.
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Connecticut Seal  

General Assembly

Raised Bill No. 5939

February Session, 2008

LCO No. 3453

*03453_______FIN*

Referred to Committee on Finance, Revenue and Bonding

Introduced by:

(FIN)

AN ACT CONCERNING THE SALES TAX LIABILITY OF ASPHALT MANUFACTURERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective from passage) (a) (1) For purposes of subparagraph (A) of subdivision (3) and subdivision (18) of section 12-412 of the 2008 supplement to the general statutes, and section 12-412i of the general statutes, a sale to a purchaser who will be making a finished product referred to in said sections, which sale would otherwise qualify for sales and use tax exemption pursuant to said sections except for the fact that such finished product is used by such purchaser to fulfill a paving contract, shall qualify for such exemption in the same manner as if such purchaser made a sale of such finished product.

(2) Nothing in subdivision (1) of this subsection shall apply the exemption under said subdivision (18) of section 12-412 to a sale to a purchaser of materials that become an ingredient or component part of a finished product that is used by such purchaser to fulfill a paving contract to real property.

(b) For purposes of subdivision (34) of section 12-412 of the 2008 supplement to the general statutes, a sale of machinery to a purchaser that would otherwise qualify for sales and use tax exemption pursuant to said section, except for the fact that the manufactured products being manufactured with the purchased machinery are used by such purchaser to fulfill a paving contract, shall qualify for such exemption in the same manner as if such manufactured products were being sold by the purchaser.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Statement of Purpose:

To clarify the sales tax liability of asphalt manufacturers who not only sell their output to third parties, but also install the asphalt sold directly to property owners.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]