The Connecticut gross receipts tax, formally called the gross earnings tax, applies only to three industries: petroleum product distributors and importers, gas and electric utilities, and cable, satellite, and certified competitive video providers. Rates run from 4% to 8.5% depending on the industry and, for utilities, whether the customer is residential. Returns are filed quarterly through the state’s myconneCT portal. If your business is outside those three sectors, this tax does not apply to you.
Who Owes the Tax
Connecticut’s gross earnings tax is not a broad levy on business revenue. General retailers, service firms, contractors, and professional practices do not pay it. The tax reaches three specific groups.
Petroleum distributors and importers. Companies that refine or distribute petroleum products and sell them within Connecticut owe the tax on gross earnings from the first sale. Covered products include gasoline, kerosene, jet fuels, lubricating oils, asphalt, liquefied petroleum gases, and greases. Importers bringing petroleum products into Connecticut for sale, use, or consumption also owe the tax when the consideration exceeds $3,000 in a single quarter.1Connecticut State Department of Revenue Services. Petroleum Product Gross Earnings Tax Information
Gas and electric companies. Companies that manufacture, sell, or distribute gas for light, heat, or power pay the tax on gross earnings from Connecticut operations. Electric distribution companies are taxed on their transmission and distribution revenue.2Justia Law. Connecticut Code 12-264 – Tax on Gross Earnings Electric generation services are not subject to the tax.
Cable, satellite, and video providers. Community antenna television operators, satellite television services, and certified competitive video service companies pay on gross earnings from their Connecticut operations.3Justia Law. Connecticut Code 12-258 – Apportionment of Gross Earnings, Rates of Tax
Rates by Industry
The rate depends on industry classification, and for utilities also on customer class.
Petroleum Products
Distributors and importers pay 8.1% on gross earnings from the first sale of petroleum products in Connecticut. This rate has applied to calendar quarters beginning on or after July 1, 2013.4Justia Law. Connecticut Code 12-587 – Definitions, Imposition of Tax, Exemptions, Rate For importers, 8.1% applies to the total consideration given for imported products when that amount exceeds $3,000 in a quarter.
Gas Companies
Gas manufacturers, sellers, and distributors pay 5% on gross earnings, with a reduced 4% rate on earnings from residential service. Municipal gas utilities file under the same structure.5Justia Law. Connecticut Code 12-265 – Rate, Deductions
Electric Distribution
Electric distribution companies pay 8.5% on non-residential transmission and distribution earnings, and 6.8% on residential. Only transmission and distribution are taxable; generation has been exempt since January 1, 2000.
Cable, Satellite, and Video
Community antenna television operators, satellite television providers, and certified competitive video service companies all pay 5% on gross earnings. CATV operators can offset their liability by any assessments made under CGS § 16-49 attributable to the same tax year.3Justia Law. Connecticut Code 12-258 – Apportionment of Gross Earnings, Rates of Tax
Petroleum Exemptions That Change the Taxable Base
The petroleum gross earnings tax excludes a long list of products, and those exclusions can significantly reduce what a distributor owes. The exemptions most likely to matter:
- Number 2 heating oil used exclusively for heating, and kerosene (number 1 oil) delivered alongside number 2 oil by metered truck to a residential dwelling
- Propane used primarily for heating
- Propane used as fuel for a school bus
- Petroleum products sold for export from Connecticut for sale or use outside the state
- Diesel fuel, other than diesel used in electric generating facilities
- All aviation fuel
- Bunker fuel oil, marine diesel, and marine gas oil used in vessels exceeding 4,000 dead weight tons or primarily engaged in interstate commerce
- Commercial heating oil blends containing at least 10% alternative fuels derived from agricultural produce, food waste, waste vegetable oil, or municipal solid waste
The complete list, including paraffin waxes, cosmetic-grade mineral oil, and grade number 6 fuel oil used by manufacturers, appears in CGS § 12-587(b)(2).6Connecticut General Assembly. Connecticut General Statutes Chapter 227 – Sale of Petroleum Products Gross Earnings Tax Claiming any exemption during an audit requires documentation showing the product qualified at the time of sale.
Quarterly Filing: Deadlines, Forms, and the Portal
Returns are due on or before the last day of the month following each calendar quarter: January 31, April 30, July 31, and October 31. You must file even when no tax is owed for the quarter.7Connecticut State Department of Revenue Services. Gross Earnings Tax Information
Each industry uses its own form:
- Petroleum distributors: Form OP-161, which includes line items for deducting exempt products such as heating oil and exports8Department of Revenue Services. Form OP-161 Petroleum Products Gross Earnings Tax Return
- Gas companies and municipal gas utilities: Form UCT-212
- Electric distribution companies: Form UCT-212 EDC
- Community antenna television operators: Form 211 CATV
- Satellite television companies: Form 211 SATV
- Certified competitive video providers: Form 211 CCV
- Combined cable, satellite, and video: Form 211 CSV
Current forms are on the DRS forms page.9Connecticut State Department of Revenue Services. Gross Earnings Tax Forms
Once DRS notifies a taxpayer that they are registered for a gross earnings tax, filing and payment must be done electronically. The state will not mail paper forms for taxes under the electronic mandate.10Connecticut State Department of Revenue Services. Filing and Paying Filing runs through myconneCT, and payment is made by electronic funds transfer.11Connecticut State Department of Revenue Services. myconneCT A one-year hardship waiver is available by submitting Form DRS-EWVR at least 30 days before the first electronic filing deadline.
Penalties for Late Filing or Payment
For the petroleum products tax, late or underpaid amounts carry a penalty of 10% of the tax due or $50, whichever is greater.1Connecticut State Department of Revenue Services. Petroleum Product Gross Earnings Tax Information Interest also accrues on unpaid balances. Connecticut adjusts its delinquent-tax interest rate periodically, so verify the current rate on the DRS site before calculating what you owe.
A federal filing extension does not extend your Connecticut gross earnings tax deadline. These are quarterly excise taxes with their own fixed due dates, and the state expects payment by the original deadline regardless of any federal extension.
Records to Keep
You must keep the records needed to determine your correct tax liability for at least three years from the extended due date of the return, unless the Commissioner of Revenue Services notifies you in writing that they are no longer needed.12Connecticut eRegulations. Regulations of Connecticut State Agencies – Section 12-2-12 Required records include books of account, invoices, sales receipts, purchase orders, exemption certificates, and the schedules and working papers used to prepare returns. For petroleum sellers, that means shipping manifests for exports, metered delivery tickets for heating oil, and certificates documenting exempt sales. Records must be made available on request.
Federal Deduction
Connecticut’s gross earnings tax is generally deductible on your federal return as an ordinary and necessary business expense under IRC § 162, which covers state and local taxes paid in connection with a trade or business.13Office of the Law Revision Counsel. 26 U.S. Code 162 – Trade or Business Expenses The deduction is claimed in the tax year you actually pay, not the quarter the liability accrues, so tracking quarterly payments carefully protects the full federal deduction.