Propane users are paying a new tax - WFSB 3 Connecticut

Propane users are paying a new tax

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(WFSB) (WFSB)
OLD LYME, CT (WFSB) -

People who have a generator that is fueled by propane may notice they are suddenly paying a new tax.

It is called a gross earnings tax and was enacted 20 years ago by the state legislature, but it was never enforced until this year.

The legislature and the state’s Department of Revenue services interpreted the law saying generators are not used for creating heat, so it is taxable, thus generating money for the general fund.

"I called my accountant and he says that’s because you have propane. Supposed I put in a gasoline generator or a diesel in there...he said ‘oh no, no tax, only for the propane’,” said Robert Staab, who owns a generator.

Republican State Senator Paul Formica (D-20) said it isn’t a fair tax to those trying to protect their property with a backup generator.

"What happens now is that we have to have a removal of the clause that causes that exclusivity of the propane,” Formica said.

Donna Sykes, who also owns a generator, said if she took delivery of 100 gallons at $3 per gallon she would pay $26.43 in gross earnings tax.

"That's my only choice here. There is no natural gas in this area so propane is my only option,” she said.

Sykes, like many gas customers, received a letter this summer from their supplier explaining the tax, urging them to contact a legislator.

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