What You Need to Know About Connecticut’s Highway Use Tax

Does your fleet operate out of Connecticut or use Connecticut’s highways? If so, roadway changes within the state may apply to you as a carrier. For example, as of January 1, 2023, Connecticut began imposing fees on carriers using their highway system. 

What does that mean for you?

Most interstate carriers should already know a little about how to file a highway use tax, though the filing process and requirements can differ from state to state. Below, FMCA Filings reports what you need to know about the new Connecticut highway use tax so that you can get on the road feeling well-prepared.  

What Is the Connecticut Highway Use Tax?

The Connecticut Highway Use Tax (HUT) is a type of tax applied to truckers or carriers who operate heavy commercial vehicles within the sovereign government’s territory. State government channels may apply such a tax at any time, with the income earned from their tax typically funding building and maintaining transportation infrastructure. In Connecticut, the state government will use this tax for statewide road and bridge maintenance. 

Although new fees often cause stress and create more paperwork, they ultimately benefit all drivers. These benefits (like beautifully smooth roads) certainly do extend to any operators of commercial motor vehicles and the carriers that employ them, as well.

To Whom Does the Tax Apply?

The highway use tax applies to the owners and operators of the following vehicle types:

• Classes 8 through 13 under the Federal Highway Administration Vehicle Classification System
• Gross vehicle weight of 26,000 pounds or greater
• Interstate operations or operations taking place within the state

If you fall into one or more of the above categories, you may want to double-check whether the tax applies to you to avoid any filing mistakes or avoidable expenses.

How Much Does the Tax Cost?

Your tax rate will depend largely upon the weight of the vehicle and its mileage throughout the state. For example, if the state taxes vehicles weighing 28,000 pounds or less around two-and-a-half cents per mile, vehicles within that weight range that travel 100 miles will pay $250.

The weight scale ranges between 26,000 pounds and 80,001 pounds, with fees increasing accordingly. The Connecticut State Department of Revenue Services provided a calculation list for each weight class and its associated tax fees to provide a comprehensive idea of what you should expect from this new Connecticut Highway Use Tax. 

Carrier Requirements

Like other types of fees, this highway use tax comes with a set of regulations by which drivers and carriers should comply to avoid any penalties. For example, carriers must calculate their vehicles’ taxable amounts and pay them before the monthly deadlines. 

Other requirements include the following:

• Obtain a highway use fee permit from the Connecticut State government
• Implement detailed record-keeping practices, including receipts, invoices, and other pertinent data
• Ensure accurate reporting of those records
• Keep an updated fleet list reflecting all vehicles under their taxable categories

Tax-Related Penalties

Failure to meet the requirements or pay the highway use fee return by the deadline may result in the following consequences:

• 1% interest accrual for missing payment deadlines until the carrier provides a full payment by the next month
• 10% of the amount of any unpaid or late balances
• A hefty fine for carriers that knowingly disregard tax payments and regulations

However, you can easily circumvent these penalties by meeting Connecticut’s monthly deadline, updating your fleet list as it pertains to the specified vehicle classes, and encouraging consistent, detailed record-keeping practices from your drivers and staff.

Tax Registration Information for Fleets

Federal Motor Carrier Authority Filings can help you complete the Connecticut Highway Use Tax forms by working with the Connecticut State Department of Revenue Services on your behalf.

A completed registration will enable your applicable fleet vehicles to operate within the state of Connecticut and easily manage any associated paperwork and processes.

Staying Updated Saves Time and Stress

Even after you’ve registered for your permit and managed any connected balances, your tax and operational terms with Connecticut may be subject to changes. State politicians have a series of bills in mind pertaining to this tax, so ensure your drivers and financial managers stay up to date on all the significant changes regarding the Connecticut Highway Use Tax. 

Connecticut isn’t the only state that imposes taxes on trucking companies; other states also charge fees, such as the Kentucky Weight Distance Tax. These taxes and constant changes can make the filing process a time-consuming endeavor. But Federal Motor Carrier Authority Filings can help you get your time back, so speak with one of our Live Agents and file with us today!