Sales Tax State Activity Update - December 2004

Cement Truck Not Exempt in Connecticut

The Connecticut Superior Court recently ruled that a cement pumping truck, having a gross vehicle weight rating in excess of twenty-six thousand pounds, is not a commercial truck for purposes of the statutory sales and use tax exemption.

The Connecticut Department of Revenue assessed use tax on the taxpayer’s purchase of a cement pumping truck for use in its concrete business. The assessed vehicle is basically a truck fitted with a concrete pump, boom and related materials necessary to pump concrete to different heights and distances.

Connecticut statutes provide an exemption from sales and use tax for commercial trucks having a gross vehicle weight rating in excess of twenty-six thousand pounds and operated actively and exclusively during the period commencing upon its purchase and ending one year after the date of purchase for carriage of interstate freight pursuant to a certificate or permit issued by the Interstate Commerce Commission.

Based upon the evidence provided by the taxpayer, the court ruled that the sole function of the truck is to pump concrete and not to transport property. The pump truck meets the statutory definition of a motor vehicle but not a commercial motor vehicle or truck as it does not transport passengers or property. Therefore, the pump truck is not a commercial motor vehicle or truck used to transport freight in interstate commerce and does not meet the statutory requirements for exemption.

Connecticut Superior Court Opinion No. CV 03 052 1776S, Modern Concrete Pumping, Inc. v. Law, November 22, 2004

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