CT HB07315

Amends Connecticut General Statutes Section 12-430(4) to allow manufacturer buyback payments to be treated as trade-in allowances for sales tax purposes on replacement vehicles purchased on or after October 1, 2016.

Permits individuals to exclude manufacturer compensation payments from federal emission standard violations from the taxable sale price when purchasing a replacement motor vehicle within one year of receiving the payment.

Requires that the manufacturer payment must be from a court-approved settlement and must be used toward the purchase of a replacement motor vehicle to qualify for the trade-in treatment.

Maintains existing tax liability when a traded-in motor vehicle, aircraft, snowmobile, farm tractor, or vessel is subsequently resold to another consumer or user.

Takes effect from passage and applies to Section 12-430(4) of the general statutes.