130 White Street
Danbury, CT 06810
Toll Free: 800-932-8084
Phone: (203) 748-3535
Fax: (203) 616-2100
Sat: 9:00AM-2PM (Showroom Only)
The CT Department of Revenue Services (DRS) has a new interpretation of a 1995 Law that will result in all your future propane deliveries being subject to the 8.81% gross receipts tax if you use a common propane tank to supply a propane powered generator.
The Connecticut tax statute (12-587(2)(D)) makes all propane and fuel oil sales in CT subject to the CT Gross Receipts tax but grants an exemption for fuel used exclusively for heating purposes. Heating has been defined by the DRS to include heating space, water, food, clothing or virtually anything else you can think of as heating. The generator use (except for extended power outages) is minimal compared to the other uses and the department previously exempted the entire delivery unless the sole use of the gas being delivered to a tank was to run only a generator.
Effective immediately we need to treat deliveries to tanks that feed a generator and anything else as fully taxable because it does not meet the “exclusively for heating” exemption since the purpose of a generator is to create electricity which provides illumination in addition to powering furnaces and boilers. This is the State’s strict interpretation of the law.
The solution to this is for you to call the Governor’s office and your state senator and state representative and tell them that penalizing people who have invested considerable expense to protect themselves against extended power outages by installing generators is unconscionable and was never the intent of the legislation passed in 1995 when virtually no one in the state had a propane powered generator. Your collective voices are our best hope for a legislative fix in the 2016 session!
Please follow this link to find ways to contact our Governor at http://portal.ct.gov/governor/ & you can also determine who your state senator and state representative is specific to the town you reside in by visiting http://www.cga.ct.gov/asp/menu/cgafindleg.asp
If you have turned off your generator valve or it is no longer functional for whatever reason and therefore qualify for the exclusively used for heating exemption for all of the propane going into the tank, you need to complete CERT-116 tax form (available at http://www.ct.gov/drs/lib/drs/forms/2008forms/salesandusetax/cert-116.pdf)
by checking the third box, sign, date and return the form to us. You will be assuming all responsibility for any potential tax liability and we will not be required to collect the tax from you.
We strive everyday to exceed our Better Business Bureau A+ Rating. We stand behind our commitment of good core values, honesty, reliability, and integrity. Here at Leahy's we understand what it takes to provide consistent quality care proudly proven time & time again over our 98 plus years in business serving the greater Danbury area & its community.
Our mission is to continue the tradition of providing quality products and services at competitive prices by promoting growth and loyalty through total customer satisfaction.
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