Rep. Carter Counsels Homeowners on Winter Preparation; Propane Tax Will Create Additional Emergency Generator Use Costs

State Rep. Dan Carter (R- Bethel, Danbury, Newtown & Redding) today warned homeowners that they could face extra costs this winter if they use emergency generators that are hooked up to propane tanks used for heating.

Report by Paula Antolini
September 15, 2015 11:57AM EDT

Rep. Carter Counsels Homeowners on Winter Preparation; Propane Tax Will Create Additional Emergency Generator Use Costs

HARTFORD – State Rep. Dan Carter (R- Bethel, Danbury, Newtown & Redding) today warned homeowners that they could face extra costs this winter if they use emergency generators that are hooked up to propane tanks used for heating.

The current effective Gross Receipts Tax rate on Propane is 8.81%, and residents of Connecticut are currently being charged this amount on the entire volume of propane they purchase for heating.

“Folks may have to look into acquiring separate propane tanks for their generators,” said Rep. Carter, “which is an inconvenience, and another expense in itself. Unfortunately, a bill was proposed to the Energy and Technology Committee this session dealing with this issue, but the committee failed to raise it to a public hearing. I plan to propose a bill next session to remove this tax, or at least give an exemption for emergency generators. I hope that the Energy and Technology Committee will give it the consideration it deserves,” he said.

Current state law, which has been in place since 1995, requires the gross receipts tax to be imposed on the sale of all propane unless it is used solely for the purpose of home heating. After a recent Department of Revenue audit, DRS notified dealers that the propane is exempt from the gross receipts tax only if it is used exclusively for heating. Distribution companies have had to start charging customers the gross receipts tax if they have a generator hooked up to their propane tank even though the generator may only use a small portion of the propane.

To avoid this tax, homeowners can also turn off their generator valve or disconnect their generator from the propane tank to ensure that propane deliveries will be tax exempt and speak with their propane dealer.

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CT State Representative Dan Carter
2nd General Assembly District
Representing Bethel, Danbury, Newtown, and Redding, CT