Ezel / Tax Rulings / CT
CT Ruling 89-48 Sales and Use Taxes 1989-08-15

Were monthly motor-vehicle lease payments taxable for lease periods beginning on or after July 1, 1989 under Connecticut Ruling 89-48?

Short answer: Yes. Monthly motor-vehicle lease payments were subject to sales tax for lease periods on or after July 1, 1989. The referenced 90-day transition rule applied only to tangible-property sales contracted before July 1 with delivery afterward, not to vehicle lease payments.

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This page answers the general question as of 1989. Ezel answers yours, under current Connecticut tax law, with citations.

Currency note: this ruling is from 1989
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official 1989 Connecticut Department of Revenue Services Ruling addressing motor-vehicle lease periods on or after July 1, 1989 and a specific transition rule under the law then in effect. Its dates are historical and later statutory or administrative changes may produce a different result, so another lessor or lessee should not assume it states current treatment. Connecticut imposes sales and use tax solely at the state level: there are no local or municipal sales taxes. This summary is informational only and is not legal or tax advice. Consult a licensed Connecticut tax professional about current vehicle-lease taxation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Monthly motor-vehicle lease payments were subject to sales tax for lease periods on or after July 1, 1989.

The ruling rejected use of a referenced 90-day transition rule for those lease payments. That rule applied only when tangible personal property was sold under a contract entered before July 1 and delivered after that date.

What this means for you

The ruling treated each lease period on or after the effective date as taxable and distinguished leases from the specific transitional rule for property sales. Both the date and rule were tied to the 1989 law and do not establish current treatment.

Common questions

Which lease periods were taxable? Those on or after July 1, 1989.

Did the 90-day transition rule protect the lease payments? No.

What transactions did that rule cover? Sales of tangible personal property contracted before July 1 with delivery after that date.

Citations and references

  • No statutory section number was cited in the ruling text.

Source

Original ruling text

Ruling 89-48, Leasing

Ruling 89-48

Leasing

Please be advised that monthly lease payments for motor vehicles are subject to sales tax for those lease periods on or after July 1, 1989. The statutory provisions relating to the ninety day period for the prior sales tax relate solely to the sale of tangible personal property where a sales contract is entered into before July 1 and delivery takes place after that date.

LEGAL DIVISION
August 15, 1989

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