SB 476 Summary

• Removes existing vessel-related sales and use tax exemptions effective July 1, 2018, making vessels, vessel motors, and vessel trailers subject to the standard 6.35% sales tax and applicable use tax rates

• Imposes sales and use taxes on labor, repair, and maintenance services for vessels, and on dry/wet storage and mooring of noncommercial vessels from October 1 through May 31 each year

• Eliminates vessel trade-in provisions from the tax code, ending the practice of allowing dealers to tax only the difference between purchase price and trade-in value for vessels

• Creates a licensing system for marine fuel dock operators to sell dyed diesel fuel tax-exempt exclusively for marine purposes, with required record-keeping and oversight by the Commissioner of Revenue Services

• Removes vessels from the non-resident exemption for sales to out-of-state purchasers not registering the property in Connecticut