HB 5290 Summary: Sunsetting the Highway Use Tax

• Imposes a highway use tax on carriers operating eligible motor vehicles (gross weight 26,000+ pounds, Class 8-13 vehicles) on Connecticut highways for the period January 1, 2023 through June 30, 2023 only.

• Tax rate ranges from $0.0250 to $0.1750 per mile based on vehicle gross weight, calculated monthly by multiplying miles traveled in-state by the applicable rate.

• Carriers must obtain permits from the Commissioner of Revenue Services, file monthly returns with electronic payment by the last day of each month, and maintain records of eligible vehicles for four years.

• Tax revenue is deposited into the Special Transportation Fund; establishes enforcement mechanisms including permit revocation, penalties up to 25% for fraud, personal liability for responsible individuals, and liens on carrier real estate for unpaid taxes.

• Milk and dairy product transport vehicles are exempt from the tax.