DANBURY, Conn. – State Rep. Dan Carter (R-Danbury, Redding) recently warned homeowners that they could face extra costs this winter if they use emergency generators hooked up to propane tanks used for heating.
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. The current effective gross receipts tax rate on propane is 8.81 percent.
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.
“Folks may have to look into acquiring separate propane tanks for their generators,” said Carter, “which is an inconvenience, and another expense in itself.”
To avoid this tax, homeowners can turn off their generator valve or disconnect their generator from the propane tank to ensure that propane deliveries will be tax exempt, he said.
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