New Connecticut Highway Use Fee
Starting in January 1, 2023, Connecticut will be imposing a new use fee on certain carriers for the “privilege of operating” certain heavy, multi-unit motor vehicles on any highway in Connecticut. Companies such as transportation or construction companies will be impacted by this as it applies to class 8 through 13 vehicles. Here’s a chat show what is and isn’t subject to the new HUT:
The new highway use fee will be calculated based on the vehicles weight and the number of miles driving inside Connecticut. The per-mile fee rate increases based on the carrier’s gross weight, ranging from 2.5 cents per miles up to 17.5 cents per mile. Below is a chart of what this will look like:
Connecticut has starting sending out notices to carriers informing them of the new law, and letting them know that carriers are required to register with the Connecticut Department of Revenue Services (CT DRS) by January 1, 2023. The first Highway Use Fee Return is due on or before February 28, 2023.
Here’s a link to the CT DRS website proving more information.
Andy is a CPA and trusted advisor with 15 years of experience providing tax, accounting, assurance, and consulting services to transportation industry owners and operators. He is a tax principal with CLA in the Minneapolis, MN office. He also consults with high net worth individuals and owners of closely-held transportation businesses on all aspects of tax planning, estate planning, and retirement planning. Andy is also the tax leader for transportation industry across CLA.
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