Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200




LCO No.: 5938

File Copy No.: 672

Senate Calendar No.: 275

OFA Fiscal Note

State Impact:

Agency Affected


FY 17 $

FY 18 $

Resources of the General Fund

GF - Revenue Gain



Department of Motor Vehicles

TF - Revenue Gain

up to $10,000

up to $10,000

Note: GF=General Fund; TF=Transportation Fund

Municipal Impact: None


The amendment results in a potential revenue gain of up to $10,000 to the Special Transportation Fund by expanding car dealer license eligibility to additional manufacturers, which is dependent on the number of licenses issued by the Department of Motor Vehicles.

The amendment also increases the potential sales tax revenue to the General Fund. The actual revenue gain in sales tax would be dependent upon any potential shift in consumer purchases from out-of-state to in-state purchases.

Connecticut requires sales tax to be paid on vehicles registered for less than thirty days in another state, upon registration of the vehicle in this state; however, Connecticut does provide credit for sales tax paid out-of-state if the registrant provides supporting documentation.

Of the adjacent states, Massachusetts is the only state that charges sales tax on the purchase of motor vehicles on nonresidents.1 Vehicle purchases from Massachusetts are therefore likely to qualify for the sales tax credit for out-of-state purchases. Any potential shift in sales from Massachusetts to Connecticut under this bill, would result in the full sales tax payment in Connecticut, rather than an out-of-state sales tax credit, and therefore may result in a potential revenue gain.

subject to the number of new or used dealers established in Connecticut.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 New York State does not currently tax purchases of motor vehicles by nonresidents. Rhode Island does not charge Connecticut residents on the purchase of motor vehicles.