Substitute House Bill No. 5667
          Substitute House Bill No. 5667

              PUBLIC ACT NO. 98-190


AN  ACT CONCERNING  SCHOOL  BUSES  AND  THE  MOTOR
VEHICLE FUELS TAX.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 1. Subdivision  (3)  of subsection (a)
of section 12-458  of  the  general  statutes,  as
amended by section  34  of  public  act 97-243 and
section 2 of  public  act  97-281, is repealed and
the following is substituted in lieu thereof:
    (3) Said tax shall not be payable on such fuel
as may have  been  (A)  sold to the United States,
(B) sold to  a municipality of this state, (i) for
use by any  contractor  performing  a  service for
such municipality in  accordance  with a contract,
provided such fuel  is  used  by  such  contractor
exclusively for the  purposes of and in accordance
with such contract  OR (ii) FOR USE EXCLUSIVELY IN
A SCHOOL BUS,  AS  DEFINED  IN SECTION 14-275, (C)
sold to a  municipality  of  this state, a transit
district of this  state,  or  this state, at other
than a retail  outlet,  for  governmental purposes
and for use  in  vehicles  owned  and operated, or
leased and operated  by  such  municipality,  such
transit district or  this  state,  (D)  sold  to a
person licensed as  a  distributor  in  this state
under section 12-456, (E) transferred from storage
within  this state  to  some  point  without  this
state, (F) sold  to  the holder of a permit issued
under section 12-458a for sale or use without this
state, (G) sold  to  the holder of a permit issued
under subsection (63)  of section 12-412, provided
(i)  such fuel  is  not  used  in  motor  vehicles
registered or required to be registered to operate
upon the public  highways  of  this  state, unless
such fuel is  used  in  motor  vehicles registered
exclusively for farming  purposes,  (ii) such fuel
is not delivered,  upon  such  sale,  to a tank in
which such person keeps fuel for personal and farm
use and (iii)  an affidavit, prescribed as to form
by the Commissioner of Revenue Services, affirming
that such fuel  is  used  exclusively  for farming
purposes,  is submitted  by  such  person  to  the
distributor, (H) sold exclusively to furnish power
for an industrial  plant in the actual fabrication
of  finished products  to  be  sold,  or  for  the
fishing industry, (I) sold exclusively for heating
purposes, (J) sold  exclusively  to  furnish  gas,
water,  steam  or  electricity,  if  delivered  to
consumers through mains,  lines or pipes, (K) sold
to  the owner  or  operator  of  an  aircraft,  as
defined in section 15-34, exclusively for aviation
purposes,  provided  (i)   for  purposes  of  this
subdivision,  "aviation purposes"  means  for  the
purpose of powering  an  aircraft  or  an aircraft
engine, (ii) such  fuel  is  delivered,  upon such
sale, to a  tank in which fuel is kept exclusively
for aviation purposes,  and  (iii)  an  affidavit,
prescribed  as to  form  by  the  Commissioner  of
Revenue Services, affirming that such fuel is used
exclusively for aviation purposes, is submitted by
such person to  the  distributor,  (L)  sold  to a
dealer who is  licensed  under  section 12-462 and
whose  place  of   business  is  located  upon  an
established  airport within  this  state,  or  (M)
diesel fuel sold  exclusively  for use in portable
power system generators  that  are larger than one
hundred fifty kilowatts.
    Sec. 2. Subsection  (a)  of  section 12-459 of
the general statutes,  as  amended by section 1 of
public act 97-232,  is  repealed and the following
is substituted in lieu thereof:
    (a) The payment  of  the  tax  provided for by
section  12-458 shall  be  subject  to  refund  as
provided herein when  such  fuel has been sold for
use of any of the following: (1) Any person, other
than one engaged  in the business of farming, when
such fuel is  used  other  than  in motor vehicles
licensed or required  to  be  licensed  to operate
upon the public  highways  of  this  state, except
that no tax  paid  on  fuel  which is taken out of
this state in  a  fuel  tank  connected  with  the
engine of a  motor  vehicle  and which is consumed
without this state  shall  be  refunded;  (2)  any
person engaged in  the  business  of farming, when
such fuel is  used  other  than  in motor vehicles
licensed or required  to  be  licensed  to operate
upon the public  highways  of  this  state or such
fuel  is  used   in   motor   vehicles  registered
exclusively for farming  purposes,  except that no
tax paid on  fuel which is taken out of this state
in a fuel  tank  connected  with  the  engine of a
motor vehicle and  which  is consumed without this
state shall be  refunded;  (3)  the United States;
(4) a Connecticut motor bus company, as defined in
subsection (e) of  section 12-455a, engaged in the
business of carrying  passengers  for hire in this
state in common  carrier  motor  vehicles,  or any
person, association or  corporation engaged in the
business  of  operating  taxicabs  in  this  state
pursuant to a certificate under chapter 244a, when
such fuel is  used  in  such  common carrier motor
vehicle or taxicab  on roads in this state, except
that with respect  to  such fuel used in a taxicab
only  fifty per  cent  of  the  tax  paid  on  any
purchase of fuel  applicable  to  mileage  on  any
roads in this  state  shall  be  refunded; (5) any
person, association or  corporation engaged in the
business of operating  a  motor  vehicle in livery
service pursuant to  a permit issued under chapter
244b, or a  motor  bus  over  highways within this
state and between  points  within and without this
state pursuant to  a  permit  issued under chapter
244, when such  fuel  is used in such motor bus on
roads in this  state  for the exclusive purpose of
transporting  passengers  for   hire  to  or  from
airport facilities, except  that  with  respect to
any such motor  vehicle in livery service pursuant
to a permit  issued  under chapter 244b only fifty
per cent of  the  tax paid on any purchase of fuel
applicable to mileage  on  any roads in this state
shall  be  refunded;   (6)   this   state   or   a
municipality of this state, when such fuel is used
in vehicles owned  and  operated,  or  leased  and
operated,  by  this   state  or  municipality  for
governmental purposes; (7) [a municipality of this
state,  when such  fuel  is  used  by  school  bus
contractors   for   the   exclusive   purpose   of
transporting  children to  and  from  school]  ANY
SCHOOL BUS AS  DEFINED  IN  SECTION  14-275; (8) a
hospital, when such  fuel  is used in an ambulance
owned by such  hospital;  (9)  a  nonprofit  civic
organization approved by  the  commissioner,  when
such fuel is  used  in  an ambulance owned by such
organization; (10) a transit district formed under
chapter 103a or any special act, when such fuel is
used in vehicles owned and operated, or leased and
operated,  by  such   transit   district  for  the
purposes  of  such   transit   district;   (11)  a
corporation or an  employee of a corporation or of
the United States, this state or a municipality of
this  state,  when   such   fuel   is  used  in  a
high-occupancy commuter vehicle, which is owned or
leased by such corporation or such employee, which
seats at least  ten  but  not  more  than  fifteen
passengers and which  has  a minimum average daily
passenger usage of  nine persons to and from work,
for the purpose of transporting such passengers to
and from work daily; (12) a person, corporation or
association operating a  motor  vehicle  in livery
service which is registered in accordance with the
provisions of section 13b-83; and (13) a federally
funded   nutrition   program   approved   by   the
commissioner, when such fuel is used in a delivery
vehicle that is  used exclusively for the delivery
of meals to senior citizens.
    Sec. 3. This  act  shall  take  effect July 1,
1998, and shall  be  applicable to sales occurring
on or after said date.

Approved June 4, 1998