Table of Contents Sec. 12-406. Title. This chapter is known and shall be cited as the "Sales and Use
Taxes Act". Sec. 12-407. Definitions. Whenever used in this chapter: Sec. 12-407a. Basis for determining whether a telecommunications service is
subject to tax under this chapter. (a) The rendering of telecommunications service
shall be subject to tax under this chapter as a sale, for purposes of subdivision (k) of
subsection (2) of section 12-407 when such service is (1) (A) originated in this state
and terminated in this state, (B) originated in this state and terminated outside this state
and with respect to which such service is charged to a telephone number, customer or
account located in this state or to the account of any transmission instrument in this state
or (C) originated outside this state and terminated in this state and with respect to which
such service is charged to a telephone number, customer or account located in this state
or to the account of any transmission instrument in this state or (2) rendered by providing
a private interstate telecommunications line on which the customer for such line has
two or more locations connected to such line and the charges for which are related to
(A) the number of customer locations connected to such line in this state, (B) the distance
between customer locations connected to such line in this state and (C) a portion of such
line determined by a ratio, the numerator of which is the number of air miles between
the state border and the denominator of which is the number of air miles between said
closest connection to the state border in this state and the customer location connected
to such line which is closest to the state border outside this state. Sec. 12-407b. Basis for determining whether a transportation service is subject to tax under this chapter. Section 12-407b is repealed, effective July 1, 1996. Sec. 12-407c. Treatment of certain persons as agents. If any person described
in subdivision (e) of subsection (12) of section 12-407 is acting in concert with any
person described in subdivision (f) of said subsection, the Commissioner of Revenue
Services, in the commissioner's discretion, may deem and treat such persons as principal
and agent, respectively, when the commissioner deems it necessary for the efficient
administration of this chapter and may hold such persons jointly and severally liable
for the collection and payment of the taxes imposed by this chapter. An unaffiliated
person providing fulfillment services, as defined in subparagraph (C) of subsection (15)
of section 12-407, to a purchaser of such services shall not be treated as a retailer by
the commissioner under this section with respect to such activity. Sec. 12-407d. Tax suspended for one week in August for sales of clothing or
footwear of less than three hundred dollars. From the third Sunday in August until
the Saturday next succeeding, inclusive, the provisions of this chapter shall not apply
to sales of any article of clothing or footwear intended to be worn on or about the human
body the cost of which article to the purchaser is less than three hundred dollars. For
purposes of this section, clothing or footwear shall not include (A) any special clothing
or footwear primarily designed for athletic activity or protective use and which is not
normally worn except when used for the athletic activity or protective use for which it
was designed, and (B) jewelry, handbags, luggage, umbrellas, wallets, watches and
similar items carried on or about the human body but not worn on the body in the manner
characteristic of clothing intended for exemption under this section. Sec. 12-408. The sales tax. (1) Imposition and rate of sales tax. For the privilege
of making any sales, as defined in subdivision (2) of section 12-407, at retail, in this
state for a consideration, a tax is hereby imposed on all retailers at the rate of six per
cent of the gross receipts of any retailer from the sale of all tangible personal property
sold at retail or from the rendering of any services constituting a sale in accordance with
subdivision (2) of section 12-407, except, in lieu of said rate of six per cent, (A) at a
rate of twelve per cent with respect to each transfer of occupancy, from the total amount
of rent received for such occupancy of any room or rooms in a hotel or lodging house
for the first period not exceeding thirty consecutive calendar days, (B) with respect to
the sale of a motor vehicle to any individual who is a member of the armed forces of
the United States and is on full-time active duty in Connecticut and who is considered,
under 50 App USC 574, a resident of another state, or to any such individual and the
spouse thereof, at a rate of four and one-half per cent of the gross receipts of any retailer
from such sales, provided such retailer requires and maintains a declaration by such
individual, prescribed as to form by the commissioner and bearing notice to the effect
that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App
USC 574, (C) (i) with respect to the sales of computer and data processing services
occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent,
on or after July 1, 1998, and prior to July 1, 1999, at the rate of four per cent, on or after
July 1, 1999, and prior to July 1, 2000, at the rate of three per cent, on or after July 1,
2000, and prior to July 1, 2001, at the rate of two per cent, on or after July 1, 2001, and
prior to July 1, 2002, at the rate of one per cent and on and after July 1, 2002, such
services shall be exempt from such tax, (ii) with respect to sales of Internet access
services, on and after July 1, 2001, such services shall be exempt from such tax, (D)
with respect to the sales of labor that is otherwise taxable under subdivision (c) or (g)
of subsection (2) of section 12-407 on existing vessels and repair or maintenance services
on vessels occurring on and after July 1, 1999, such services shall be exempt from such
tax, (E) with respect to sales of the renovation and repair services of paving of any sort,
painting or staining, wallpapering, roofing, siding and exterior sheet metal work, to
other than industrial, commercial or income-producing real property, occurring on or
after July 1, 1999, and prior to July 1, 2000, at the rate of four per cent, with respect to
such sales occurring on or after July 1, 2000, but prior to July 1, 2001, at the rate of two
per cent, and on and after July 1, 2001, sales of such renovation and repair services shall
be exempt from such tax, and (F) with respect to patient care services occurring on or
after July 1, 1999, at the rate of five and three-fourths per cent. The rate of tax imposed
by this chapter shall be applicable to all retail sales upon the effective date of such rate,
except that a new rate which represents an increase in the rate applicable to the sale
shall not apply to any sales transaction wherein a binding sales contract without an
escalator clause has been entered into prior to the effective date of the new rate and
delivery is made within ninety days after the effective date of the new rate. For the
purposes of payment of the tax imposed under this section, any retailer of services
taxable under subdivision (2)(i) of section 12-407, who computes taxable income, for
purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, on
an accounting basis which recognizes only cash or other valuable consideration actually
received as income and who is liable for such tax only due to the rendering of such
services may make payments related to such tax for the period during which such income
is received, without penalty or interest, without regard to when such service is rendered. On all sales above $1.08, the tax shall be computed at the rate of six per cent. Sec. 12-408a. Payment of certain sales tax revenue for use at Bradley International Airport. Notwithstanding any other provision of the general statutes to the contrary, fifty per cent of all moneys received or collected by the state or any officer or
employee of the state from the tax imposed pursuant to this chapter on the sale or use
of any aviation fuel or lubricant which is sold or used at Bradley International Airport
shall be paid to the trustee under the trust indenture created pursuant to subsection (g)
of section 15-101l for credit to the Bradley International Airport Revenue Fund held by
said trustee. Sec. 12-408b. Recovery of sales tax from consumer related to certain sales of
renewable energy systems or systems using cogeneration technology. On and after
July 1, 1991, any person, firm or corporation who pays a sales and use tax, which tax
would not have been due prior to July 1, 1991, pursuant to subsection (39) of section
12-412 of the general statutes, revision of 1958, revised to January 1991, shall recover
the tax paid by (1) adding such tax to any amounts otherwise payable under a sales
contract approved by the Department of Public Utility Control pursuant to subsection
(d) of section 16-243a and (2) amortizing such tax, together with interest at the rate paid
on front-loaded payments, over the life of a sales contract approved by the department
pursuant to said subsection. Sec. 12-408c. Refund of taxes for certain purchases in this state for sole use
or consumption outside this state. (a)(1) Whenever any person carrying on a trade,
occupation, business or profession in this state purchases from a retailer tangible personal property for use or consumption in carrying on such trade, occupation, business
or profession, (A) for purposes of subsequently transporting such property outside this
state by common or contract carrier for use or consumption thereafter solely outside
this state, or (B) for the purpose of being processed, fabricated or manufactured into,
attached to or incorporated into, other tangible personal property to be transported outside this state by common or contract carrier, and thereafter used or consumed solely
outside this state, such person may claim a refund of the taxes imposed by this chapter
on the purchase of such property. A claim for refund of the taxes imposed by this chapter
on all such purchases of property during the calendar year may be filed, along with
substantiating documentation, annually with the Commissioner of Revenue Services
on a form prepared for such purpose by the commissioner not later than the first day of
the fourth month next succeeding the end of the calendar year for which such claim
is filed. Sec. 12-409. Permits. (1) Permit required. No person shall engage in or transact
business as a seller within this state, unless a permit or permits have been issued to him
as hereinafter prescribed. Sec. 12-409a. Direct payment permits. (a) Issuance of permit. Any person who
purchases tangible personal property or services may apply to the Commissioner of
Revenue Services for a direct payment permit. At the time of making an application,
the applicant shall pay to the commissioner a permit fee of twenty dollars for each
permit. If the commissioner finds that (1) the collection of the sales and use taxes will
not be jeopardized by the issuance of such a permit, (2) because of the nature of the
applicant's business, the permit will significantly reduce the work of administering the
taxes under this chapter, (3) the applicant's accounting system will clearly indicate the
amount of tax that the applicant owes under this chapter, and (4) the applicant makes
taxable purchases in sufficient volume to justify the expense of regular audits by the
commissioner, the commissioner may, in the commissioner's discretion, issue such a
permit to the purchaser. Such direct payment permit shall bear an identifying registration
number. No vendor making a sale to a direct payment permit holder shall be required
to collect the sales tax otherwise payable on such sale. Each direct payment permit
holder shall report, on a form designated by the commissioner, and pay directly to the
commissioner the tax due on any tangible personal property or services acquired by
such permit holder pursuant to such permit. The use of a direct payment permit shall
be subject to such conditions, including the obligation to make payment of the tax due
in accordance with the provisions of chapter 228g, as the commissioner shall determine
to be appropriate to insure the collection of the tax and may be suspended or revoked
by the commissioner at any time if the commissioner determines that the collection of
any tax due from the permit holder is in jeopardy or that the permit holder has not
complied with the conditions to which the permit is subject. The commissioner may
adopt regulations in accordance with chapter 54 to carry out the provisions of this section. Sec. 12-410. Presumptions and resale certificates. (1) Presumption of taxability; resale certificate. For the purpose of the proper administration of this chapter and
to prevent evasion of the sales tax it shall be presumed that all receipts are gross receipts
that are subject to the tax until the contrary is established. The burden of proving that
a sale of tangible personal property or service constituting a sale in accordance with
subsection (2) of section 12-407 is not a sale at retail is upon the person who makes the
sale unless such person takes in good faith from the purchaser a certificate to the effect
that the property or service is purchased for resale. Sec. 12-411. The use tax. (1) Imposition and rate. An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible
personal property purchased from any retailer for storage, acceptance, consumption or
any other use in this state, the acceptance or receipt of any services constituting a sale
in accordance with subdivision (2) of section 12-407, purchased from any retailer for
consumption or use in this state, or the storage, acceptance, consumption or any other
use in this state of tangible personal property which has been manufactured, fabricated,
assembled or processed from materials by a person, either within or without this state,
for storage, acceptance, consumption or any other use by such person in this state, to
be measured by the sales price of materials, at the rate of six per cent of the sales price
of such property or services, except, in lieu of said rate of six per cent, (A) at a rate of
twelve per cent of the rent paid for occupancy of any room or rooms in a hotel or lodging
house for the first period of not exceeding thirty consecutive calendar days, (B) with
respect to the storage, acceptance, consumption or use in this state of a motor vehicle
purchased from any retailer for storage, acceptance, consumption or use in this state by
any individual who is a member of the armed forces of the United States and is on full-
time active duty in Connecticut and who is considered, under 50 App USC 574, a resident
of another state, or to any such individual and the spouse of such individual at a rate of
four and one-half per cent of the sales price of such vehicle, provided such retailer
requires and maintains a declaration by such individual, prescribed as to form by the
commissioner and bearing notice to the effect that false statements made in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the
purchaser's state of residence under 50 App USC 574, (C) with respect to the acceptance
or receipt in this state of labor that is otherwise taxable under subdivision (c) or (g) of
subsection (2) of section 12-407 on existing vessels and repair or maintenance services
on vessels occurring on and after July 1, 1999, such services shall be exempt from such
tax, (D) with respect to the acceptance or receipt in this state of computer and data
processing services purchased from any retailer for consumption or use in this state
occurring on or after July 1, 1997, and prior to July 1, 1998, at the rate of five per cent
of such services, on or after July 1, 1998, and prior to July 1, 1999, at the rate of four
per cent of such services, on or after July 1, 1999, and prior to July 1, 2000, at the rate
of three per cent of such services, on or after July 1, 2000, and prior to July 1, 2001, at
the rate of two per cent of such services, on and after July 1, 2001, and prior to July 1,
2002, at the rate of one per cent of such services and on and after July 1, 2002, such
services shall be exempt from such tax, (E) with respect to the acceptance or receipt in
this state of patient care services purchased from any retailer for consumption or use in
this state occurring on or after July 1, 1999, at the rate of five and three-fourths per cent,
and (F) with respect to acceptance of the renovation and repair services of paving of
any sort, painting or staining, wallpapering, roofing, siding and exterior sheet metal
work, to other than industrial, commercial or income-producing real property, occurring
on or after July 1, 1999, and prior to July 1, 2000, at the rate of four per cent, with respect
to such sales occurring on or after July 1, 2000, and prior to July 1, 2001, at the rate of
two per cent, and on and after July 1, 2001, sales of such renovation and repair services
shall be exempt from such tax. Sec. 12-411a. Conditional tax on out-of-state mail order companies for sales
of merchandise shipped to purchasers in Connecticut. Circumstances under which
tax will be implemented. Section 12-411a is repealed effective July 1, 1989, and applicable to sales from outside the state to destinations in the state on or after that date. Sec. 12-412. *(See end of section for amended version of subdivisions (19) and
(55), new subdivisions (111) and (112) and effective dates.) Exemptions. Taxes imposed by this chapter shall not apply to the gross receipts from the sale of and the storage,
use or other consumption in this state with respect to the following items: *Note: On and after July 1, 2001, and applicable to sales occurring on and after
that date, subdivisions (19) and (55) of this section, as amended by sections 1 and 4,
respectively, of public act 00-170, and subdivisions (111) and (112) of this section,
added by section 5 of public act 00-170, are to read as follows: Sec. 12-412a. Exemption for certain equipment purchased for transfer to the
state. Section 12-412a is repealed. Sec. 12-412b. Regulations related to exemption for any article of clothing or
footwear costing less than fifty dollars. The Commissioner of Revenue Services shall
prescribe regulations, to be adopted in accordance with chapter 54, for purposes of
implementing the provisions of subdivision (47) of section 12-412, which regulations,
when reasonably designed to carry out the intents and purposes of said subdivision (47),
shall be prima facie evidence of its proper interpretation. Sec. 12-412c. Mobile manufactured home, modular or prefabricated home
subject to sales tax when sold by manufacturer and subject to tax as a conveyance
of realty when sold at its location in a mobile manufactured home park. (a) On or
after July 1, 1986, the sale of a new mobile manufactured home, and on or after July 1,
1993, the sale of a new modular or prefabricated home, from a manufacturer shall be
subject to sales and use taxes under this chapter, except that for purposes of said taxes
the sales price of such new mobile manufactured home or new modular or prefabricated
home shall be deemed to be seventy per cent of the manufacturer's sales price applicable
with respect to such sale. For the purpose of this subsection, "mobile manufactured
home" means a home at least twelve feet in width, which cannot proceed under its own
power, which is towed or placed on flatbed trucks to be taken to its destination and
which requires a limited duration oversize load permit in order to be transported on the
highways of this state, and a "new modular or prefabricated home" means a modular
or prefabricated home, as defined in section 21-85, which has not been previously sold
or occupied as a dwelling unit. Sec. 12-412d. Refund of sales tax paid on repair or replacement parts sold
exclusively for machinery in a manufacturing production process. Section 12-412d
is repealed, effective May 18, 1998, and applicable to sales occurring on or after that date. Sec. 12-412e. Exemption from sales tax for items purchased with federal food
stamp coupons. Factors determining effective date thereof. (a) The exemption from
sales tax with respect to sales of any items purchased with federal food stamp coupons,
as provided in subsection (57) of section 12-412, shall be applicable to any such sales
occurring on or after October 1, 1986, subject to the provisions of subsections (b) and
(c) of this section. Sec. 12-412f. Exemption from sales tax for services rendered between parent
companies and wholly-owned subsidiaries. Applicable to certain services prior to
June 30, 1987. Provisions for refund of tax paid on such services. (a) The exemption
from sales tax allowed in accordance with subsection (62) of section 12-412 shall be
applicable to sales of certain services as provided in said subsection (62) and additionally, with respect to such sales of services rendered in the period December 1, 1981, to
June 30, 1987, inclusive. Sec. 12-412g. Calculation of sales tax on transfer of vehicles used in state's
interest-free vanpool program. The tax imposed by chapter 219 on the transfer of
motor vehicles used in the Department of Transportation's interest-free vanpool program authorized pursuant to 23 USC 146, to the person assigned the use of such vehicle
under such program, shall be calculated on the basis of such vehicle's fair market value
as determined by the Commissioner of Transportation at the time of such transfer. Sec. 12-412h. Exemption for gas, electricity and fuel for heating when sold for
use in agricultural production, fabrication of a product or manufacturing. Burden
of proving that sale is for an exempt purpose. For purposes of the exemptions from
sales and use tax under subsections (3) and (16) of section 12-412, applicable to sales
for use directly in agricultural production, fabrication of a finished product to be sold
or furnishing of power to an industrial manufacturing plant, the burden of proving that
a sale under said subsections is not subject to tax is upon the person making such sale
unless such person takes a certificate from the purchaser, in good faith, to the effect that
such sale is for an exempt purpose under the applicable subsection. Such certificate
shall be signed by and bear the name and address of the manufacturer or producer and
shall be on a form furnished by the commissioner for such purpose. Sec. 12-412i. Partial exemption for materials, tools, fuels, machinery and
equipment used in manufacturing. (a) The taxes imposed by this chapter shall not
apply to the percentage set forth in subsection (c) of this section of the gross receipts
from the sale of and the storage, use and consumption in this state of the following items:
(1) Materials, tools and fuels or any substitute therefor which become an ingredient or
component part of tangible personal property to be sold or which are used or consumed
in an industrial plant in the manufacturing, processing or fabricating of products to be
sold, in any process preparatory or related thereto or in the measuring or testing of such
products or (2) machinery and equipment which will be used primarily in the process
of manufacturing, processing or fabricating tangible personal property if: (A) The machinery or equipment is used for research and development, measuring or testing with
respect to or in furtherance of the manufacturing, processing or fabricating of tangible
personal property; (B) the machinery or equipment is used at any stage of the manufacturing, processing or fabricating process from the time any raw materials are received
to the time the product is ready for delivery or storage, including overpacking and crating; (C) the machinery or equipment is used primarily to maintain or repair any machinery or equipment described in subparagraph (A) or (B) of this subdivision, or (D) the
machinery or equipment is used primarily for metal finishing, provided this exemption
shall not apply to any materials, tools, fuels, machinery or equipment which is used
primarily in administration, general management, sales or any other activity which does
not constitute manufacturing, processing or fabricating. The exemption under this subsection shall not apply to any materials, tools, fuels, machinery or equipment which is
exempt under any other provision of this chapter. Sec. 12-412j. Exemption for value of core parts. In any sale at retail of any new
or remanufactured part of an item of tangible personal property to a purchaser, which
sale is made by a retailer of such parts who will accept in return from such purchaser a
core component or core part of such tangible personal property, the sales or use tax with
respect to such sale shall be imposed on the difference between the purchase price and
the amount allowed by the retailer on the returned core component or core part, provided
the retailer shall collect the tax, at the time of sale, on the purchase price and, when the
core component or core part is returned, shall refund such tax on the amount allowed
by the retailer on the returned core component or core part. When any such core component or core part traded in is subsequently sold to a consumer or user, the taxes imposed
under this chapter shall be applicable to such sale. Sec. 12-413. Exemptions from use tax. (1) Where sales tax applicable. The
storage, acceptance, consumption or other use in this state of services or property, the
gross receipts from the sale of which are required to be included in the measure of the
sales tax, is exempted from the use tax. Sec. 12-413a. Exemption from use tax for vessels brought into the state exclusively for storage, maintenance or repair. Notwithstanding the provisions of section
12-411, the tax imposed thereunder shall not be applicable, in the period commencing
on the first day of October in any year to and including the thirtieth day of April next
succeeding, with respect to the use of any vessel within this state exclusively for purposes
of (1) delivery of such vessel to a facility in this state for storage, including dry storage
and storage in water by means of apparatus preventing ice damage to the hull, maintenance or repair or (2) the actual process of storage, maintenance or repair of such vessel.
The provisions of this section shall have no effect upon liability for tax under this chapter
related to the sale or use of such vessel other than such liability which may be established
in relation to the specific use of such vessel as described in this section. Sec. 12-413b. Credit for capital resources provided to institutions of higher
education for electronic commerce studies or work force development programs.
(a) The Commissioner of Higher Education may select a direct pay permit holder, as
described in section 12-409a, for a pilot program in accordance with the provisions of
this section. Sec. 12-414. Returns and payment. (1) Due date; exception. The taxes imposed
by this chapter are due and payable to the commissioner monthly on or before the last
day of the month next succeeding each monthly period except that every person whose
total tax liability for the twelve-month period ended on the preceding September thirtieth
was less than four thousand dollars shall file returns on a quarterly basis. "Quarterly"
means a period of three calendar months commencing on the first day of January, April,
July or October of each year or, if any seller commences business on a date other than
the first day of January, April, July or October, a period beginning on the date of commencement of business and ending on March thirty-first, June thirtieth, September thirtieth or December thirty-first, respectively. Sec. 12-414a. Liability for wilful nonpayment of taxes collected. Each person,
other than a retailer, who is required, on behalf of a retailer, to collect, truthfully account
for and pay over the tax imposed on such retailer under this chapter and who wilfully
fails to collect such tax or truthfully account for and pay over such tax or who wilfully
attempts in any manner to evade or defeat the tax or the payment thereof, shall, in
addition to other penalties provided by law, be liable for a penalty equal to the total
amount of the tax evaded, or not collected, or not accounted for and paid over, including
any penalty or interest attributable to such wilful failure to collect or truthfully account
for and pay over such tax or such wilful attempt to evade or defeat such tax, provided
such penalty shall only be imposed against such person in the event that such tax, penalty
or interest cannot otherwise be collected from the retailer itself in accordance with section 12-420. The amount of such penalty with respect to which a person may be personally liable under this section shall be collected in accordance with said section 12-420
and any amount so collected shall be allowed as a credit against the amount of such tax,
penalty or interest due and owing from the retailer. The dissolution of the retailer shall
not discharge any person in relation to any personal liability under this section for wilful
failure to collect or truthfully account for and pay over such tax or for a wilful attempt
to evade or defeat such tax prior to dissolution, except as otherwise provided in this
section. For purposes of this section, "person" includes any individual, corporation,
limited liability company or partnership and any officer or employee of any corporation,
including a dissolved corporation, and a member or employee of any partnership or
limited liability company who, as such officer, employee or member, is under a duty to
file a tax return under this chapter on behalf of a retailer or to collect or truthfully account
for and pay over the tax imposed under this chapter on behalf of a retailer. Sec. 12-415. Deficiency assessments. (a) Deficiency assessments. If the commissioner is not satisfied with the return or returns of the tax or the amount of tax required
to be paid to the state by any person, the commissioner may compute and assess the
amount required to be paid upon the basis of the facts contained in the return or returns
or upon the basis of any information which is in or that may come into the commissioner's
possession. Except in the case of fraud or intent to evade or in the case of new information
that may come into the commissioner's possession, the commissioner may not make
more than one assessment for a tax period for which a return has been filed. Sec. 12-416. Assessments if no return made. (a) Assessment; failure to file return. If any person fails to make a return, the commissioner shall make an estimate of
the amount of the gross receipts of the person or, as the case may be, of the amount of
the total sales price of services or tangible personal property sold or purchased by the
person, the storage, acceptance, consumption or other use of which in this state is subject
to the use tax. The estimate shall be made for the period or periods in respect to which
the person failed to make a return and shall be based upon any information which is in
or may come into the commissioner's possession. To the tax imposed upon the basis of
such estimate, there shall be added an amount equal to fifteen per cent of such tax, or
fifty dollars, whichever is greater. No person shall be subject to a penalty under both
this section and section 12-419. Except in the case of new information that may come
into the commissioner's possession, the commissioner may not make more than one
assessment for a tax period for which a tax return has not been filed. Sec. 12-416a. Sharing of certain information and tax revenue with municipal
agencies. The Commissioner of Revenue Services is authorized to pay to a municipal
agency an amount not to exceed fifty per cent of the tax actually collected as the result
of an assessment made under section 12-415 or 12-416 against the purchaser of a vessel,
as defined in subdivision (24) of section 12-407, if said commissioner, in the commissioner's sole discretion, determines that information provided by such agency was instrumental in the making of such assessment. Notwithstanding the provisions of section
12-15, the commissioner may disclose to a municipal agency that receives a payment
under this section the name and address of the person against whom the assessment is
made, the amount of the tax actually assessed and the amount of the tax actually collected
with respect to which such a payment may be made. Sec. 12-416b. Revenue sharing of certain tax revenue with revenue agencies
of other states. The Commissioner of Revenue Services is authorized to pay to a revenue
agency of another state an amount not to exceed fifty per cent of the tax actually collected
as the result of an assessment made under section 12-416 against any purchaser of
tangible personal property or services described in subsection (2) of section 12-407 if
said commissioner, in his sole discretion, determines that information provided by such
agency was instrumental in the making of such assessment. Sec. 12-417. Jeopardy assessments. (1) Jeopardy assessment. Notice. If the
commissioner believes that the collection of any tax or any amount of tax required to
be collected and paid to the state or of any assessment will be jeopardized by delay, the
commissioner shall make an assessment of the tax or amount of tax required to be
collected, noting that fact upon the assessment and serving written notice thereof, personally or by mail, in the manner prescribed for service of notice of a deficiency assessment, on the person against whom the jeopardy assessment is made. Ten days after the
date on which such notice is served on such person, such notice shall constitute a final
assessment except only for such amounts as to which such person has filed a written
petition for reassessment with the commissioner, as provided in subsection (3) of this
section.
Sec. 12-406. Title.
Sec. 12-407. Definitions.
Sec. 12-407a. Basis for determining whether a telecommunications service is subject to
tax under this chapter.
Sec. 12-407b. Basis for determining whether a transportation service is subject to tax
under this chapter.
Sec. 12-407c. Treatment of certain persons as agents.
Sec. 12-407d. Tax suspended for one week in August for sales of clothing or footwear of
less than three hundred dollars.
Sec. 12-408. The sales tax.
Sec. 12-408a. Payment of certain sales tax revenue for use at Bradley International
Airport.
Sec. 12-408b. Recovery of sales tax from consumer related to certain sales of renewable
energy systems or systems using cogeneration technology.
Sec. 12-408c. Refund of taxes for certain purchases in this state for sole use or consumption outside this state.
Sec. 12-409. Permits.
Sec. 12-409a. Direct payment permits.
Sec. 12-410. Presumptions and resale certificates.
Sec. 12-411. The use tax.
Sec. 12-411a. Conditional tax on out-of-state mail order companies for sales of merchandise shipped to purchasers in Connecticut. Circumstances under which tax will be implemented.
Sec. 12-412. *(See end of section for amended version of subdivisions (19) and (55), new
subdivisions (111) and (112) and effective dates.) Exemptions.
Sec. 12-412a. Exemption for certain equipment purchased for transfer to the state.
Sec. 12-412b. Regulations related to exemption for any article of clothing or footwear
costing less than fifty dollars.
Sec. 12-412c. Mobile manufactured home, modular or prefabricated home subject to sales
tax when sold by manufacturer and subject to tax as a conveyance of realty when sold at
its location in a mobile manufactured home park.
Sec. 12-412d. Refund of sales tax paid on repair or replacement parts sold exclusively
for machinery in a manufacturing production process.
Sec. 12-412e. Exemption from sales tax for items purchased with federal food stamp coupons. Factors determining effective date thereof.
Sec. 12-412f. Exemption from sales tax for services rendered between parent companies and
wholly-owned subsidiaries. Applicable to certain services prior to June 30, 1987. Provisions for refund of tax paid on such services.
Sec. 12-412g. Calculation of sales tax on transfer of vehicles used in state's interest-
free vanpool program.
Sec. 12-412h. Exemption for gas, electricity and fuel for heating when sold for use in
agricultural production, fabrication of a product or manufacturing. Burden of proving that
sale is for an exempt purpose.
Sec. 12-412i. Partial exemption for materials, tools, fuels, machinery and equipment used
in manufacturing.
Sec. 12-412j. Exemption for value of core parts.
Sec. 12-413. Exemptions from use tax.
Sec. 12-413a. Exemption from use tax for vessels brought into the state exclusively for
storage, maintenance or repair.
Sec. 12-413b. Credit for capital resources provided to institutions of higher education
for electronic commerce studies or work force development programs.
Sec. 12-414. Returns and payment.
Sec. 12-414a. Liability for wilful nonpayment of taxes collected.
Sec. 12-415. Deficiency assessments.
Sec. 12-416. Assessments if no return made.
Sec. 12-416a. Sharing of certain information and tax revenue with municipal agencies.
Sec. 12-416b. Revenue sharing of certain tax revenue with revenue agencies of other
states.
Sec. 12-417. Jeopardy assessments.
Sec. 12-418. Reassessments.
Sec. 12-419. Interest and penalties.
Sec. 12-419a. Sales tax liability subject to penalty or interest and which is outstanding
on July 1, 1990.
Sec. 12-419b. Failure to file return when no tax is due.
Sec. 12-420. Collection of taxes. Delinquent taxes.
Sec. 12-420a. Managed compliance and audit agreements: Definitions.
Sec. 12-420b. Managed compliance agreements, generally.
Sec. 12-420c. Managed audit agreements.
Sec. 12-421. Hearing by commissioner.
Sec. 12-422. Appeal.
Sec. 12-423. Abatement of taxes.
Sec. 12-424. Payment on termination of business and successor's liability.
Sec. 12-425. Overpayments and refunds.
Sec. 12-425a. Time limit on claims for certain deficiency assessments or awards.
Sec. 12-426. Administration.
Sec. 12-427. Disposition of proceeds.
Sec. 12-428. Wilful violations and corresponding penalties.
Sec. 12-429. Oaths and subpoenas.
Sec. 12-430. Miscellaneous provisions.
Sec. 12-430a. Determination of sales tax on certain construction equipment or machinery
when such equipment or machinery is traded in on purchase.
Sec. 12-431. Tax on casual sales of motor vehicles, vessels, snowmobiles and aircraft.
Sec. 12-432. Use of proceeds.
Sec. 12-432a. Civil action related to mail-order sales from outside Connecticut not allowed by retailer failing to comply with this chapter re such sales.
Sec. 12-432b. Severability in application of sales and use tax to mail-order sales from
outside Connecticut.
(1949 Rev., S. 2090; 1953, S. 1161d; P.A. 73-288, S. 6, 8; P.A. 89-123, S. 8.)
History: P.A. 73-288 changed name of act from "Education, Welfare and Public Health Tax Act" to "Sales and Use
Tax Act"; P.A. 89-123 changed the chapter title from "Sales and Use Tax Act" to "Sales and Use Taxes Act".
Cited. 145 C. 161.
(Return to TOC) (Return to Chapters) (Return to Titles)
(1) "Person" means and includes any individual, firm, copartnership, joint venture,
association, association of persons however formed, social club, fraternal organization,
corporation, limited liability company, foreign municipal electric utility as defined in
section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the United States, this
state or any political subdivision thereof or any group or combination acting as a unit,
and any other individual or officer acting under the authority of any court in this state.
(2) "Sale" and "selling" mean and include: (a) Any transfer of title, exchange or
barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible
personal property for a consideration; (b) any withdrawal, except a withdrawal pursuant
to a transaction in foreign or interstate commerce, of tangible personal property from
the place where it is located for delivery to a point in this state for the purpose of the
transfer of title, exchange or barter, conditional or otherwise, in any manner or by any
means whatsoever, of the property for a consideration; (c) the producing, fabricating,
processing, printing or imprinting of tangible personal property for a consideration for
consumers who furnish either directly or indirectly the materials used in the producing,
fabricating, processing, printing or imprinting, including but not limited to, sign construction, photofinishing, duplicating and photocopying; (d) the furnishing and distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others; (e) the furnishing, preparing, or serving for a
consideration of food, meals or drinks; (f) a transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price;
(g) a transfer for a consideration of the title of tangible personal property which has
been produced, fabricated or printed to the special order of the customer, or of any
publication, including but not limited to, sign construction, photofinishing, duplicating
and photocopying; (h) a transfer for a consideration of the occupancy of any room or
rooms in a hotel or lodging house for a period of thirty consecutive calendar days or
less; (i) the rendering of certain services for a consideration, exclusive of such services
rendered by an employee for the employer, as follows: (A) Computer and data processing
services, including, but not limited to, time, programming, code writing, modification
of existing programs, feasibility studies and installation and implementation of software
programs and systems even where such services are rendered in connection with the
development, creation or production of canned or custom software or the license of
custom software, and exclusive of services rendered in connection with the creation,
development hosting or maintenance of all or part of a web site which is part of the
graphical, hypertext portion of the Internet, commonly referred to as the World-Wide
Web, (B) credit information and reporting services, (C) services by employment agencies and agencies providing personnel services, (D) private investigation, protection,
patrol work, watchman and armored car services, exclusive of services of off-duty police
officers and off-duty firefighters, (E) painting and lettering services, (F) photographic
studio services, (G) telephone answering services, (H) stenographic services, (I) services
to industrial, commercial or income-producing real property, including, but not limited
to, such services as management, electrical, plumbing, painting and carpentry and excluding any such services rendered in the voluntary evaluation, prevention, treatment,
containment or removal of hazardous waste, as defined in section 22a-115, or other
contaminants of air, water or soil, provided income-producing property shall not include
property used exclusively for residential purposes in which the owner resides and which
contains no more than three dwelling units, or a housing facility for low and moderate
income families and persons owned or operated by a nonprofit housing organization,
as defined in subsection (29) of section 12-412, (J) business analysis, management,
management consulting and public relations services, excluding (i) any environmental
consulting services, and (ii) any training services provided by an institution of higher
education licensed or accredited by the Board of Governors of Higher Education pursuant to section 10a-34, (K) services providing "piped-in" music to business or professional establishments, (L) flight instruction and chartering services by a certificated air
carrier on an aircraft, the use of which for such purposes, but for the provisions of
subsection (4) of section 12-410 and subsection (12) of section 12-411, would be deemed
a retail sale and a taxable storage or use, respectively, of such aircraft by such carrier,
(M) motor vehicle repair services, including any type of repair, painting or replacement
related to the body or any of the operating parts of a motor vehicle, (N) motor vehicle
parking, including the provision of space, other than metered space, in a lot having thirty
or more spaces, excluding (i) space in a seasonal parking lot provided by a person who
is exempt from taxation under this chapter pursuant to subsection (1), (5) or (8) of section
12-412, (ii) space in a parking lot owned or leased under the terms of a lease of not
less than ten years' duration and operated by an employer for the exclusive use of its
employees, (iii) valet parking provided at any airport, and (iv) space in municipally-
operated railroad parking facilities in municipalities located within an area of the state
designated as a severe nonattainment area for ozone under the federal Clean Air Act,
(O) radio or television repair services, (P) furniture reupholstering and repair services,
(Q) repair services to any electrical or electronic device, including, but not limited to,
equipment used for purposes of refrigeration or air-conditioning, (R) lobbying or consulting services for purposes of representing the interests of a client in relation to the
functions of any governmental entity or instrumentality, (S) services of the agent of any
person in relation to the sale of any item of tangible personal property for such person,
exclusive of the services of a consignee selling works of art, as defined in subsection
(b) of section 12-376c, or articles of clothing or footwear intended to be worn on or
about the human body other than (i) any special clothing or footwear primarily designed
for athletic activity or protective use and which is not normally worn except when used
for the athletic activity or protective use for which it was designed, and (ii) jewelry,
handbags, luggage, umbrellas, wallets, watches and similar items carried on or about
the human body but not worn on the body in the manner characteristic of clothing
intended for exemption under subdivision (47) of section 12-412, under consignment,
exclusive of services provided by an auctioneer, (T) locksmith services, (U) advertising
or public relations services, including layout, art direction, graphic design, mechanical
preparation or production supervision, not related to the development of media advertising or cooperative direct mail advertising, (V) landscaping and horticulture services,
(W) window cleaning services, (X) maintenance services, (Y) janitorial services, (Z)
exterminating services, (AA) swimming pool cleaning and maintenance services, (BB)
renovation and repair services as set forth in this subparagraph, to other than industrial,
commercial or income-producing real property: Paving of any sort, painting or staining,
wallpapering, roofing, siding and exterior sheet metal work, (CC) miscellaneous personal services included in industry group 729 in the Standard Industrial Classification
Manual, United States Office of Management and Budget, 1987 edition, or U.S. industry
532220, 812191, 812199 or 812990 in the North American Industrial Classification
System United States manual, United States Office of Management and Budget, 1997
edition, exclusive of (i) services rendered by massage therapists licensed pursuant to
chapter 384a, and (ii) services rendered by a hypertrichologist licensed pursuant to chapter 388, (DD) any repair or maintenance service to any item of tangible personal property
including any contract of warranty or service related to any such item, (EE) business
analysis, management or managing consulting services rendered by a general partner,
or an affiliate thereof, to a limited partnership, provided (i) that the general partner, or
an affiliate thereof, is compensated for the rendition of such services other than through
a distributive share of partnership profits or an annual percentage of partnership capital
or assets established in the limited partnership's offering statement, and (ii) the general
partner, or an affiliate thereof, offers such services to others, including any other partnership. As used in subparagraph (EE)(i) "an affiliate of a general partner" means an entity
which is directly or indirectly owned fifty per cent or more in common with a general
partner; and (FF) notwithstanding the provisions of section 12-412, except subsection
(87) thereof, patient care services, as defined in subsection (29) of this section by a
hospital; (j) the leasing or rental of tangible personal property of any kind whatsoever,
including, but not limited to, motor vehicles, linen or towels, machinery or apparatus,
office equipment and data processing equipment, provided for purposes of this subdivision and the application of sales and use tax to contracts of lease or rental of tangible
personal property, the leasing or rental of any motion picture film by the owner or
operator of a motion picture theater for purposes of display at such theater shall not
constitute a sale within the meaning of this subsection; (k) the rendering of telecommunications service, as defined in subsection (26) of this section, for a consideration on or
after January 1, 1990, exclusive of any such service rendered by an employee for the
employer of such employee, subject to the provisions related to telecommunications
service in accordance with section 12-407a; (l) the rendering of community antenna
television service, as defined in subsection (27) of this section, for a consideration on
or after January 1, 1990, exclusive of any such service rendered by an employee for the
employer of such employee; (m) the transfer for consideration of space or the right to
use any space for the purpose of storage or mooring of any noncommercial vessel,
exclusive of dry or wet storage or mooring of such vessel during the period commencing
on the first day of November in any year to and including the thirtieth day of April of
the next succeeding year; (n) the sale for consideration of naming rights to any place of
amusement, entertainment or recreation within the meaning of subdivision (3) of section
12-540; (o) the transfer for consideration of a prepaid telephone calling service, as defined in subsection (34) of this section, and the recharge of a prepaid telephone calling
service, provided, if the sale or recharge of a prepaid telephone calling service does not
take place at the retailer's place of business and an item is shipped by the retailer to the
customer, the sale or recharge shall be deemed to take place at the customer's shipping
address, but, if such sale or recharge does not take place at the retailer's place of business
and no item is shipped by the retailer to the customer, the sale or recharge shall be
deemed to take place at the customer's billing address or the location associated with
the customer's mobile telephone number. Wherever in this chapter reference is made
to the sale of tangible personal property or services, it shall be construed to include sales
described in this subsection, except as may be specifically provided to the contrary.
(3) (A) "Retail sale" or "sale at retail" means and includes a sale for any purpose
other than resale in the regular course of business of tangible personal property or a
transfer for a consideration of the occupancy of any room or rooms in a hotel or lodging
house for a period of thirty consecutive calendar days or less, or the rendering of any
service described in subdivision (2) of this section. The delivery in this state of tangible
personal property by an owner or former owner thereof or by a factor, if the delivery is
to a consumer pursuant to a retail sale made by a retailer not engaged in business in this
state, is a retail sale in this state by the person making the delivery. Such person shall
include the retail selling price of the property in such person's gross receipts.
(B) "Retail sale" or "sale at retail" does not include any sale of any tangible personal
property, where, no later than one hundred twenty days after the original sale, the original
purchaser sells or becomes contractually obligated to sell such property to a retailer who
is contractually obligated to lease such property back to such original purchaser in a lease
that is taxable under this chapter or the sale of such property by the original purchaser to
the retailer who is contractually obligated to lease such property back to such original
purchaser in a lease that is taxable under this chapter. If the original purchaser has paid
sales or use tax on the original sale of such property to the original purchaser, such
original purchaser may (i) claim a refund of such tax under the provisions of section
12-425, upon presentation of proof satisfactory to the commissioner that the mutual
contractual obligations described in this subparagraph were undertaken no later than
one hundred twenty days after the original sale and that such tax was paid to the original
retailer on the original sale and was remitted to the commissioner by such original retailer
or by such original purchaser, or (ii) issue at the time of such original sale or no later
than one hundred twenty days thereafter a certificate, in the form prescribed by the
commissioner, to the original retailer certifying that the mutual contractual obligations
described in this subparagraph have been undertaken. If such certificate is issued to the
original retailer at the time of the original sale, no tax on the original sale shall be
collected by the original retailer from the original purchaser. If the certificate is issued
after the time of the original sale but no later than one hundred twenty days thereafter,
the original retailer shall refund to the original purchaser the tax collected on the original
sale and, if the original retailer has previously remitted the tax to the commissioner, the
original retailer may either treat the amount so refunded as a credit against the tax due
on the return next filed under this chapter, or claim a refund under section 12-425. If
such certificate is issued no later than one hundred twenty days after the time of the
original sale but the tangible personal property originally purchased is not, in fact, subsequently leased by the original purchaser, such original purchaser shall be liable for and
be required to pay the tax due on the original sale.
(4) "Storage" includes any keeping or retention in this state for any purpose except
sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer.
(5) "Use" includes the exercise of any right or power over tangible personal property
incident to the ownership of that property, except that it does not include the sale of that
property in the regular course of business.
(6) "Storage" and "use" do not include (A) keeping, retaining or exercising any
right or power over tangible personal property shipped or brought into this state for the
purpose of subsequently transporting it outside the state for use thereafter solely outside
the state, or for the purpose of being processed, fabricated or manufactured into, attached
to or incorporated into, other tangible personal property to be transported outside the
state and thereafter used solely outside the state, or (B) keeping, retaining or exercising
any right or power over tangible personal property acquired by the customer of a commercial printer while such property is located at the premises of the commercial printer
in this state pursuant to a contract with such printer for printing and distribution of
printed material if the commercial printer could have acquired such property without
application of tax under this chapter.
(7) "Purchase" and "purchasing" means and includes: (a) Any transfer, exchange or
barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible
personal property or of the occupancy of any room or rooms in a hotel or lodging house
for a period of thirty consecutive calendar days or less for a consideration; (b) a transaction whereby the possession of property is transferred but the seller retains the title as
security for the payment of the price; (c) a transfer for a consideration of tangible personal
property which has been produced, fabricated or printed to the special order of the
customer, or of any publication; (d) when performed outside this state or when the
customer gives a resale certificate pursuant to section 12-410, the producing, fabricating,
processing, printing or imprinting of tangible personal property for a consideration for
consumers who furnish either directly or indirectly the materials used in the producing,
fabricating, processing, printing or imprinting; (e) the acceptance or receipt of any service described in any of the subdivisions of subsection (2) of this section; (f) any leasing
or rental of tangible personal property. Wherever in this chapter reference is made to
the purchase or purchasing of tangible personal property, it shall be construed to include
purchases as described in this subsection.
(8) (A) "Sales price" means the total amount for which tangible personal property
is sold by a retailer, the total amount of rent for which occupancy of a room is transferred
by an operator, the total amount for which any service described in subsection (2) of
this section is rendered by a retailer or the total amount of payment or periodic payments
for which tangible personal property is leased by a retailer, valued in money, whether
paid in money or otherwise, which amount is due and owing to the retailer or operator
and, subject to the provisions of subsection (1) of section 12-408, whether or not actually
received by the retailer or operator, without any deduction on account of any of the
following: (i) The cost of the property sold; (ii) the cost of materials used, labor or
service cost, interest charged, losses or any other expenses; (iii) for any sale occurring
on or after July 1, 1993, any charges by the retailer to the purchaser for shipping or
delivery, notwithstanding whether such charges are separately stated in a written contract, or on a bill or invoice rendered to such purchaser or whether such shipping or
delivery is provided by the retailer or a third party. The provisions of subparagraph (A)
(iii) shall not apply to any item exempt from taxation pursuant to section 12-412. Such
total amount includes any services that are a part of the sale; except as otherwise provided
in subparagraph (B)(v) or (B)(vi) of this subsection, any amount for which credit is
given to the purchaser by the retailer, and all compensation and all employment-related
expenses, whether or not separately stated, paid to or on behalf of employees of a retailer
of any service described in subsection (2) of this section. (B) "Sales price" does not
include any of the following: (i) Cash discounts allowed and taken on sales; (ii) any
portion of the amount charged for property returned by purchasers, which upon rescission of the contract of sale is refunded either in cash or credit, provided the property is
returned within ninety days from the date of purchase; (iii) the amount of any tax, not
including any manufacturers' or importers' excise tax, imposed by the United States
upon or with respect to retail sales whether imposed upon the retailer or the purchaser;
(iv) the amount charged for labor rendered in installing or applying the property sold,
provided such charge is separately stated and exclusive of such charge for any service
rendered within the purview of subparagraph (I) of subdivision (i) of subsection (2) of
this section; (v) unless the provisions of subsection (4) of section 12-430 or of section
12-430a are applicable, any amount for which credit is given to the purchaser by the
retailer, provided such credit is given solely for property of the same kind accepted in
part payment by the retailer and intended by the retailer to be resold; (vi) the full face
value of any coupon used by a purchaser to reduce the price paid to a retailer for an item
of tangible personal property, whether or not the retailer will be reimbursed for such
coupon, in whole or in part, by the manufacturer of the item of tangible personal property
or by a third party; (vii) the amount charged for separately stated compensation, fringe
benefits, workers' compensation and payroll taxes or assessments paid to or on behalf
of employees of a retailer who has contracted to manage a service recipient's property
or business premises and renders management services described in subdivision (i) of
subsection (2) of this section, provided, the employees perform such services solely for
the service recipient at its property or business premises and "sales price" shall include
the separately stated compensation, fringe benefits, workers' compensation and payroll
taxes or assessments paid to or on behalf of any employee of the retailer who is an
officer, director or owner of more than five per cent of the outstanding capital stock of
the retailer. Determination whether an employee performs services solely for a service
recipient at its property or business premises for purposes of this subdivision shall be
made by reference to such employee's activities during the time period beginning on
the later of the commencement of the management contract, the date of the employee's
first employment by the retailer or the date which is six months immediately preceding
the date of such determination; (viii) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to
or on behalf of (I) a leased employee, or (II) a worksite employee by a professional
employer organization pursuant to a professional employer agreement. For purposes of
this subparagraph, an employee shall be treated as a leased employee if the employee
is provided to the client at the commencement of an agreement with an employee leasing
organization under which at least seventy-five per cent of the employees provided to
the client at the commencement of such initial agreement qualify as leased employees
pursuant to Section 414(n) of the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
or the employee is added to the client's workforce by the employee leasing organization
subsequent to the commencement of such initial agreement and qualifies as a leased
employee pursuant to Section 414(n) of said Internal Revenue Code of 1986 without
regard to subparagraph (B) of paragraph (2) thereof. A leased employee, or a worksite
employee subject to a professional employer agreement, shall not include any employee
who is hired by a temporary help service and assigned to support or supplement the
workforce of a temporary help service's client; and (ix) any amount received by a retailer
from a purchaser as the battery deposit that is required to be paid under subsection (a)
of section 22a-245h; the refund value of a beverage container that is required to be paid
under subsection (a) of section 22a-244; or a deposit that is required by law to be paid
by the purchaser to the retailer and that is required by law to be refunded to the purchaser
by the retailer when the same or similar tangible personal property is delivered as required by law to the retailer by the purchaser, if such amount is separately stated on the
bill or invoice rendered by the retailer to the purchaser.
(9) (A) "Gross receipts" means the total amount of the sales price from retail sales
of tangible personal property by a retailer, the total amount of the rent from transfers
of occupancy of rooms by an operator, the total amount of the sales price from retail
sales of any service described in subsection (2) of this section by a retailer of services,
or the total amount of payment or periodic payments from leases or rentals of tangible
personal property by a retailer, valued in money, whether received in money or otherwise, which amount is due and owing to the retailer or operator and, subject to the
provisions of subsection (1) of section 12-408, whether or not actually received by the
retailer or operator, without any deduction on account of any of the following: (i) The
cost of the property sold; however, in accordance with such regulations as the Commissioner of Revenue Services may prescribe, a deduction may be taken if the retailer has
purchased property for some other purpose than resale, has reimbursed his vendor for
tax which the vendor is required to pay to the state or has paid the use tax with respect
to the property, and has resold the property prior to making any use of the property other
than retention, demonstration or display while holding it for sale in the regular course
of business. If such a deduction is taken by the retailer, no refund or credit will be allowed
to his vendor with respect to the sale of the property; (ii) the cost of the materials used,
labor or service cost, interest paid, losses or any other expense; (iii) for any sale occurring
on or after July 1, 1993, except for any item exempt from taxation pursuant to section 12-
412, any charges by the retailer to the purchaser for shipping or delivery, notwithstanding
whether such charges are separately stated in the written contract, or on a bill or invoice
rendered to such purchaser or whether such shipping or delivery is provided by the
retailer or a third party. The total amount of the sales price includes any services that
are a part of the sale; all receipts, cash, credits and property of any kind; except as
otherwise provided in subparagraph (B)(v) or (B)(vi) of this subsection, any amount for
which credit is allowed by the retailer to the purchaser; and all compensation and all
employment-related expenses, whether or not separately stated, paid to or on behalf of
employees of a retailer of any service described in subsection (2) of this section. (B)
"Gross receipts" do not include any of the following: (i) Cash discounts allowed and
taken on sales; (ii) any portion of the sales price of property returned by purchasers,
which upon rescission of the contract of sale is refunded either in cash or credit, provided
the property is returned within ninety days from the date of sale; (iii) the amount of any
tax, not including any manufacturers' or importers' excise tax, imposed by the United
States upon or with respect to retail sales whether imposed upon the retailer or the
purchaser; (iv) the amount charged for labor rendered in installing or applying the property sold, provided such charge is separately stated and exclusive of such charge for any
service rendered within the purview of subparagraph (I) of subdivision (i) of subsection
(2) of this section; (v) unless the provisions of subsection (4) of section 12-430 or of
section 12-430a are applicable, any amount for which credit is given to the purchaser
by the retailer, provided such credit is given solely for property of the same kind accepted
in part payment by the retailer and intended by the retailer to be resold; (vi) the full face
value of any coupon used by a purchaser to reduce the price paid to the retailer for an
item of tangible personal property, whether or not the retailer will be reimbursed for
such coupon, in whole or in part, by the manufacturer of the item of tangible personal
property or by a third party; (vii) the amount charged for separately stated compensation,
fringe benefits, workers' compensation and payroll taxes or assessments paid to or on
behalf of employees of a retailer who has contracted to manage a service recipient's
property or business premises and renders management services described in subdivision (i) of subsection (2) of this section, provided the employees perform such services
solely for the service recipient at its property or business premises and "gross receipts"
shall include the separately stated compensation, fringe benefits, workers' compensation
and payroll taxes or assessments paid to or on behalf of any employee of the retailer
who is an officer, director or owner of more than five per cent of the outstanding capital
stock of the retailer. Determination whether an employee performs services solely for
a service recipient at its property or business premises for purposes of this subdivision
shall be made by reference to such employee's activities during the time period beginning on the later of the commencement of the management contract, the date of the
employee's first employment by the retailer or the date which is six months immediately
preceding the date of such determination; (viii) the amount charged for separately stated
compensation, fringe benefits, workers' compensation and payroll taxes or assessments
paid to or on behalf of (I) a leased employee, or (II) a worksite employee by a professional
employer organization pursuant to a professional employer agreement. For purposes of
this subparagraph, an employee shall be treated as a leased employee if the employee
is provided to the client at the commencement of an agreement with an employee leasing
organization under which at least seventy-five per cent of the employees provided to
the client at the commencement of such initial agreement qualify as leased employees
pursuant to Section 414(n) of the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
or the employee is added to the client's workforce by the employee leasing organization
subsequent to the commencement of such initial agreement and qualifies as a leased
employee pursuant to Section 414(n) of said Internal Revenue Code of 1986 without
regard to subparagraph (B) of paragraph (2) thereof. A leased employee, or a worksite
employee subject to a professional employer agreement, shall not include any employee
who is hired by a temporary help service and assigned to support or supplement the
workforce of a temporary help service's client; and (ix) the amount received by a retailer
from a purchaser as the battery deposit that is required to be paid under subsection (a)
of section 22a-256h; the refund value of a beverage container that is required to be paid
under subsection (a) of section 22a-244 or a deposit that is required by law to be paid
by the purchaser to the retailer and that is required by law to be refunded to the purchaser
by the retailer when the same or similar tangible personal property is delivered as required by law to the retailer by the purchaser, if such amount is separately stated on the
bill or invoice rendered by the retailer to the purchaser.
(10) "Business" includes any activity engaged in by any person or caused to be
engaged in by him with the object of gain, benefit or advantage, either direct or indirect.
(11) "Seller" includes every person engaged in the business of selling tangible personal property or rendering any service described in any of the subdivisions of subsection
(2) of this section, the gross receipts from the retail sale of which are required to be
included in the measure of the sales tax and every operator as defined in subsection (18)
of this section.
(12) "Retailer" includes: (A) Every person engaged in the business of making sales
at retail or in the business of making retail sales at auction of tangible personal property
owned by the person or others; (B) every person engaged in the business of making
sales for storage, use or other consumption or in the business of making sales at auction
of tangible personal property owned by the person or others for storage, use or other
consumption; (C) every operator as defined in subsection (18) of this section; (D) every
seller rendering any service described in subsection (2) of this section; (E) every person
under whom any salesman, representative, peddler or canvasser operates in this state,
or from whom such salesman, representative, peddler or canvasser obtains the tangible
personal property that is sold; (F) every person with whose assistance any seller is
enabled to solicit orders within this state; (G) every person making retail sales from
outside this state to a destination within this state and not maintaining a place of business
in this state who engages in regular or systematic solicitation of sales of tangible personal
property in this state (i) by the display of advertisements on billboards or other outdoor
advertising in this state, (ii) by the distribution of catalogs, periodicals, advertising flyers
or other advertising by means of print, radio or television media, or (iii) by mail, telegraphy, telephone, computer data base, cable, optic, microwave or other communication
system, for the purpose of effecting retail sales of tangible personal property, provided
such person has made one hundred or more retail sales from outside this state to destinations within this state during the twelve-month period ended on the September thirtieth
immediately preceding the monthly or quarterly period with respect to which such person's liability for tax under this chapter is determined; (H) any person owned or controlled, either directly or indirectly, by a retailer engaged in business in this state which
is the same as or similar to the line of business in which such person so owned or
controlled is engaged; (I) any person owned or controlled, either directly or indirectly,
by the same interests that own or control, either directly or indirectly, a retailer engaged
in business in this state which is the same as or similar to the line of business in which
such person so owned or controlled is engaged; (J) any assignee of a person engaged
in the business of leasing tangible personal property to others, where leased property
of such person which is subject to taxation under this chapter is situated within this state
and such assignee has a security interest, as defined in subsection (37) of section 42a-
1-201, in such property; and (K) every person making retail sales of items of tangible
personal property from outside this state to a destination within this state and not maintaining a place of business in this state who repairs or services such items, under a
warranty, in this state, either directly or indirectly through an agent, independent contractor or subsidiary.
(13) "Tangible personal property" means personal property which may be seen,
weighed, measured, felt or touched or which is in any other manner perceptible to the
senses including canned or prewritten computer software. Tangible personal property
includes the distribution, generation or transmission of electricity.
(14) "In this state" or "in the state" means within the exterior limits of the state of
Connecticut and includes all territory within these limits owned by or ceded to the United
States of America.
(15) (A) "Engaged in business in the state" means and includes but shall not be
limited to the following acts or methods of transacting business: (i) Selling in this state,
or any activity in this state in connection with selling in this state, tangible personal
property for use, storage or consumption within the state; (ii) engaging in the transfer
for a consideration of the occupancy of any room or rooms in a hotel or lodging house
for a period of thirty consecutive calendar days or less; (iii) rendering in this state any
service described in any of the subdivisions of subsection (2) of this section; (iv) maintaining, occupying or using, permanently or temporarily, directly or indirectly, through
a subsidiary or agent, by whatever name called, of any office, place of distribution, sales
or sample room or place, warehouse or storage point or other place of business or having
any representative, agent, salesman, canvasser or solicitor operating in this state for the
purpose of selling, delivering or taking orders; (v) notwithstanding the fact that retail
sales are made from outside this state to a destination within this state and that a place
of business is not maintained in this state, engaging in regular or systematic solicitation
of sales of tangible personal property in this state by the display of advertisements on
billboards or other outdoor advertising in this state, by the distribution of catalogs,
periodicals, advertising flyers or other advertising by means of print, radio or television
media, or by mail, telegraphy, telephone, computer data base, cable, optic, microwave
or other communication system, for the purpose of effecting retail sales of tangible
personal property, provided one hundred or more retail sales from outside this state to
destinations within this state are made during the twelve-month period ended on the
September thirtieth immediately preceding the monthly or quarterly period with respect
to which liability for tax under this chapter is determined; (vi) being owned or controlled,
either directly or indirectly, by a retailer engaged in business in this state which is the
same as or similar to the line of business in which the retailer so owned or controlled
is engaged; (vii) being owned or controlled, either directly or indirectly, by the same
interests that own or control, either directly or indirectly, a retailer engaged in business
in this state which is the same as or similar to the line of business in which the retailer
so owned or controlled is engaged; (viii) being the assignee of a person engaged in the
business of leasing tangible personal property to others, where leased property of such
person is situated within this state and such assignee has a security interest, as defined
in subsection (37) of section 42a-1-201, in such property; and (ix) notwithstanding the
fact that retail sales of items of tangible personal property are made from outside this
state to a destination within this state and that a place of business is not maintained in
this state, repairing or servicing such items, under a warranty, in this state, either directly
or indirectly through an agent, independent contractor or subsidiary.
(B) A retailer who has contracted with a commercial printer for printing and distribution of printed material shall not be deemed to be engaged in business in this state
because of the ownership or leasing by the retailer of tangible or intangible personal
property located at the premises of the commercial printer in this state, the sale by the
retailer of property of any kind produced or processed at and shipped or distributed
from the premises of the commercial printer in this state, the activities of the retailer's
employees or agents at the premises of the commercial printer in this state, which activities relate to quality control, distribution or printing services performed by the printer,
or the activities of any kind performed by the commercial printer in this state for or on
behalf of the retailer.
(C) A retailer not otherwise a retailer engaged in business in the state who purchases
fulfillment services carried on in this state by a person other than an affiliated person,
or who owns tangible personal property located on the premises of an unaffiliated person
performing fulfillment services for such retailer shall not be deemed to be engaged in
business in the state. For purposes of this subparagraph, persons are affiliated persons
with respect to each other where one of such persons has an ownership interest of more
than five per cent, whether direct or indirect, in the other, or where an ownership interest
of more than five per cent, whether direct or indirect, is held in each of such persons by
another person or by a group of other persons who are affiliated persons with respect
to each other. For purposes of this subparagraph, "fulfillment services" means services
that are performed by a person on its premises on behalf of a purchaser of such services
and that involve the receipt of orders from the purchaser of such services or an agent
thereof, which orders are to be filled by the person from an inventory of products that
are offered for sale by the purchaser of such services, and the shipment of such orders
to customers of the purchaser of such services.
(16) "Hotel" means any building regularly used and kept open as such for the feeding
and lodging of guests where any person who conducts himself properly and who is able
and ready to pay for such services is received if there are accommodations for him and
which derives the major portion of its operating receipts from the renting of rooms and
the sale of food. "Hotel" shall include any apartment hotel wherein apartments are rented
for fixed periods of time, furnished or unfurnished, while the keeper of such hotel supplies food to the occupants thereof, if required.
(17) "Lodging house" means any building or portion of a building, other than a
hotel or apartment hotel, in which persons are lodged for hire with or without meals,
including, but not limited to, any motel, motor court, motor inn, tourist court or similar
accommodation; provided the terms "hotel", "apartment hotel" and "lodging house"
shall not be construed to include: (a) Privately owned and operated convalescent homes,
residential care homes, homes for the infirm, indigent or chronically ill; (b) religious
or charitable homes for the aged, infirm, indigent or chronically ill; (c) privately owned
and operated summer camps for children; (d) summer camps for children operated by
religious or charitable organizations; (e) lodging accommodations at educational institutions; or (f) lodging accommodations at any facility operated by and in the name of any
nonprofit charitable organization, provided the income from such lodging accommodations at such facility is not subject to federal income tax.
(18) "Operator" means any person operating a hotel or lodging house in the state,
including, but not limited to, the owner or proprietor of such premises, lessee, sublessee,
mortgagee in possession, licensee or any other person otherwise operating such hotel
or lodging house.
(19) "Occupancy" means the use or possession, or the right to the use or possession,
of any room or rooms in a hotel or lodging house or the right to the use or possession
of the furnishings or the services and accommodations accompanying the use and possession of such room or rooms, for the first period of not exceeding thirty consecutive
calendar days.
(20) "Room" means any room or rooms of any kind in any part or portion of a hotel
or lodging house let out for use or possession for lodging purposes.
(21) "Rent" means the consideration received for occupancy valued in money,
whether received in money or otherwise, including all receipts, cash, credits and property
or services of any kind or nature, and also any amount for which credit is allowed by
the operator to the occupant, without any deduction therefrom whatsoever.
(22) "Certificated air carrier" means a person issued a certificate or certificates by
the Federal Aviation Administration pursuant to Title 14, Chapter I, Subchapter G, Part
121, 135, 139 or 141 of the Code of Federal Regulations or the Civil Aeronautics Board
pursuant to Title 14, Chapter II, Subchapter A, Parts 201 to 208, inclusive, and 298 of
the Code of Federal Regulations, as such regulations may hereafter be amended or
reclassified.
(23) "Aircraft" means aircraft, as the term is defined in section 15-34.
(24) "Vessel" means vessel, as the term is defined in section 15-127.
(25) "Licensed marine dealer" means a marine dealer, as the term is defined in
section 15-141, who has been issued a marine dealer's certificate by the Commissioner
of Environmental Protection.
(26) (a) "Telecommunications service" means the transmission of any interactive
electromagnetic communications including but not limited to voice, image, data and
any other information, by means of but not limited to wire, cable, including fiber optical
cable, microwave, radio wave or any combinations of such media, and the leasing of
any such service. "Telecommunications service" includes but is not limited to basic
telephone service, including any facility or service provided in connection with such
basic telephone service, toll telephone service and teletypewriter or computer exchange
service, including but not limited to residential and business service, directory assistance, two-way cable television service, cellular mobile telephone or telecommunication
service, specialized mobile radio and pagers and paging service, including any form of
mobile two-way communication. "Telecommunications service" does not include (1)
nonvoice services in which computer processing applications are used to act on the
information to be transmitted, (2) any one-way radio or television broadcasting transmission, (3) any telecommunications service (A) rendered by a company in control of such
service when rendered for private use within its organization (B) used, allocated or
distributed by a company within its organization, including in such organization affiliates, as defined in section 33-840, for the purpose of conducting business transactions
of the organization if such service is purchased or leased from a company rendering
telecommunications service and such purchase or lease is subject to tax under this chapter, and (4) access or interconnection service purchased by a provider of telecommunications service from another provider of such service for purposes of rendering such service, provided the purchaser submits to the seller a certificate attesting to the applicability
of this exclusion, upon receipt of which the seller is relieved of any tax liability for such
sale so long as the certificate is taken in good faith by the seller.
(b) For purposes of the tax imposed under this chapter (1) gross receipts from the
rendering of telecommunications service shall include any subscriber line charge or
charges as required by the Federal Communications Commission and any charges for
access service collected by any person rendering such service unless otherwise excluded
from such gross receipts under this chapter; (2) gross receipts from the rendering of
telecommunications service shall not include any local charge for calls from public or
semipublic telephones; and (3) gross receipts from the rendering of telecommunications
service shall not include any charge for calls purchased using a prepaid telephone calling
service, as defined in subsection (34) of this section.
(27) "Community antenna television service" means (1) the one-way transmission
to subscribers of video programming or information by cable, fiber optics, satellite,
microwave or any other means, and subscriber interaction, if any, which is required for
the selection of such video programming or information and (2) noncable communications service, as defined in section 16-1.
(28) "Hospital" means a hospital included within the definition of health care facilities or institutions under section 19a-630 and licensed as a short-term general hospital
by the Department of Public Health but, does not include (A) any hospital which, on
January 30, 1997, is within the class of hospitals licensed by the department as children's
general hospitals, or (B) a short-term acute hospital operated exclusively by the state
other than a short-term acute hospital operated by the state as a receiver pursuant to
chapter 920.
(29) "Patient care services" means therapeutic and diagnostic medical services provided by the hospital to inpatients and outpatients including tangible personal property
transferred in connection with such services.
(30) "Another state" or "other state" means any state of the United States or the
District of Columbia excluding the state of Connecticut.
(31) "Professional employer agreement" means a written contract between a professional employer organization and a service recipient whereby the professional employer
organization agrees to provide at least seventy-five per cent of the employees at the
service recipient's worksite, which contract provides that such worksite employees are
intended to be permanent employees rather than temporary employees, and employer
responsibilities for such worksite employees, including hiring, firing and disciplining,
are allocated between the professional employer organization and the service recipient.
(32) "Professional employer organization" means any person that enters into a professional employer agreement with a service recipient whereby the professional employer organization agrees to provide at least seventy-five per cent of the employees at
the service recipient's worksite.
(33) "Worksite employee" means an employee, the employer responsibilities for
which, including hiring, firing and disciplining, are allocated, under a professional employer agreement, between a professional employer organization and a service recipient.
(34) "Prepaid telephone calling service" means the right to exclusively purchase
telecommunications service, that must be paid for in advance and that enables the origination of calls using an access number or authorization code, or both, whether manually
or electronically dialed, provided the remaining amount of units of service that have
been prepaid shall be known on a continuous basis.
(35) "Canned or prewritten software" means all software, other than custom software, that is held or existing for general or repeated sale, license or lease. Software
initially developed as custom software for in-house use and subsequently sold, licensed
or leased to unrelated third parties shall be considered canned or prewritten software.
(36) "Custom software" means a computer program prepared to the special order
of a single customer.
(1949 Rev., S. 2091; June, 1955, S. 1162d; 1957, P.A. 472; September, 1957, P.A. 17, S. 1; March, 1958, P.A. 27, S.
19; 1959, P.A. 578, S. 1−9; February, 1965, P.A. 381, S. 1; 1971, P.A. 205; June, 1971, P.A. 8, S. 2; 1972, P.A. 267; P.A.
73-442, S. 6; P.A. 75-213, S. 15−22, 53; 75-567, S. 46, 67, 80; P.A. 76-114, S. 2, 21; 76-372, S. 1−3; P.A. 77-395, S. 1,
3; 77-604, S. 74, 75, 84; 77-614, S. 139, 610; P.A. 79-584, S. 1, 2; P.A. 82-48, S. 1, 2; P.A. 83-541, S. 1, 2; P.A. 84-507,
S. 2, 4; P.A. 85-240, S. 1, 2, 6; 85-513, S. 1, 3; P.A. 86-397, S. 7, 10; P.A. 87-1, S. 5, 7; 87-340, S. 1, 2; P.A. 88-6, S. 1,
2; P.A. 89-41, S. 1, 2, 6; 89-123, S. 1−3; 89-251, S. 1, 2, 203; P.A. 90-148, S. 31, 34; 90-186, S. 1, 3; 90-295, S. 1, 2, 5;
P.A. 91-132, S. 1, 2, 4; June Sp. Sess. P.A. 91-3, S. 103−108, 168; June Sp. Sess. P.A. 91-14, S. 26, 30; P.A. 92-184, S.
9−13, 19; 92-202, S. 4; May Sp. Sess. P.A. 92-17, S. 17−24, 59; P.A. 93-44, S. 1, 2, 20, 21, 24; 93-74, S. 17−21, 23, 24,
67; 93-332, S. 1, 7, 25, 26, 28; 93-381, S. 9, 39; 93-435, S. 59, 95; P.A. 94-9, S. 14, 15, 20, 41; 94-175, S. 22, 23, 25, 32;
May Sp. Sess. P.A. 94-4, S. 13−15, 80, 85; May 25 Sp. Sess. P.A. 94-1, S. 126, 127, 130; P.A. 95-79, S. 31, 189; 95-160,
S. 48, 49, 64, 69; 95-257, S. 12, 21, 58; P.A. 96-104, S. 2−4; 96-139, S. 12, 13; 96-165, S. 1, 2, 9; 96-222, S. 7, 41; 96-
271, S. 159, 254; P.A. 97-2, S. 3, 8; 97-112, S. 2, 4; 97-243, S. 12−16, 67; 97-316, S. 6, 7, 11; P.A. 98-28, S. 116, 117; 98-
110, S. 5, 27; 98-244, S. 15, 16, 35; Dec. Sp. Sess. P.A. 98-1, S. 29, 43; P.A. 99-173, S. 10−12, 65; 99-285, S. 10, 12; P.A.
00-170, S. 17, 18, 42; 00-174, S. 1−3, 69, 71−73, 83; 00-196, S. 3, 66; 00-227, S. 1; June Sp. Sess. P.A. 00-1, S. 27, 46.)
History: 1959 act added subdivision (2)(h), added provisions for transferring room occupancy in Subsecs. (3), (7) and
(15), included rent received in "sales price" and "gross receipts," included operators as "sellers" and "retailers" and added
Subsecs. (16) to (21); 1965 act included in definition of "retailer" persons soliciting orders through catalogs or advertising
circulars; 1971 acts substituted "or" for "and" between Subdivs. (a) and (b) of Subsec. (15) and redefined "sale" and "selling"
in Subsec. (2) by removing exception in Subdiv. (g) for tangible personal property consisting of original visualization or
design and by adding Subdiv. (i) re sales of utilities; 1972 act redefined "purchase" in Subsec. (7) by removing exception
in Subdiv. (c) for tangible personal property consisting of original visualization or design; P.A. 73-442 redefined "person"
in Subsec. (1) to include foreign municipal electric utilities; P.A. 75-213 amended Subsec. (2) to delete from Subdiv. (i)
telephone, telegraph, community antenna television and cable services and water, gas or electricity sales and to add Subdivs.
(j) and (k) and amended Subsecs. (3), (7), (8), (9), (11), (12) and (15) to reflect amendments in Subsec. (2); P.A. 75-567
clarified Subsec. (8) by specifying applicability to services "rendered on or after July 1, 1975," and including total amount
of payment or periodic payments "received for leasing or rental of tangible personal property for the term of any such lease
or rental occurring on or after July 1, 1975" and amended Subsec. (9) to specify services, leases or rentals occurring on
July 1, 1975, as well as after that date; P.A. 76-114 amended Subpara. (K) of Subdiv. (j) in Subsec. (2) to specify applicability
to real property and to specifically exclude renovation services if cost is capitalized for federal income tax purposes; P.A.
76-372 added Subdivs. (e) in both Subsecs. (8) and (9) including charges for labor "in installing or applying the property
sold" in definitions of "sales price" and "gross receipts"; P.A. 77-395 deleted Subdiv. (i) re sale of steam, coolants and
atomic power in Subsec. (2), relettering remaining Subdivs. accordingly, effective June 20, 1977, and applicable to any
sale or furnishing of steam on or after March 1, 1974; P.A. 77-604 made technical changes in Subsecs. (8) and (9); P.A.
77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 79-584 included
as tangible personal property in Subdivs. (c) and (g) of Subsec. (2) computer programming, sign construction, photofinishing, duplicating and copying and deleted references to those services in Subdiv. (i) relettering Subparas. as necessary; P.A.
82-48 amended Subsec. (12) to provide that "retailer" includes anyone from whom a sales representative obtains property
sold or anyone assisting a sales representative in solicitation of orders and that such "retailer" and sales representative
shall be deemed to be principal and agent, respectively, for purposes of sales tax, deleting former Subsecs. (d) and (e);
P.A. 83-541 amended Subsecs. (8) and (9) to provide that "sales price" and "gross receipts" as used therein do not include
any portion of the amount charged which is refunded upon rescission of sale, and accordingly, the refund includes tax
collected on the amount refunded, effective July 1, 1983, and applicable to any refund of the amount charged upon rescission
on or after said date; P.A. 84-507 amended Subdiv. (i) of Subsec. (2) to exempt from the definition of "sale" or "selling"
services rendered for the voluntary containing or removing of hazardous waste; P.A. 85-240 amended Subsec. (2) by
adding Subparagraph (M) concerning flight instruction and chartering services by a certificated air carrier to the list of
services subject to sales tax under Subdiv. (i) of Subsec. (2) and added editorially Subsec. (22) defining "certificated air
carrier"; P.A. 85-513 amended Subdiv. (j) of Subsec. (2) to provide that the lease or rental of any motion picture film by
the owner of a theater shall not constitute a sale subject to tax as in the case of other tangible personal property so leased
or rented, effective July 1, 1985, and applicable to contracts of lease or rental of motion picture films becoming effective on
or after July 1, 1985; P.A. 86-397 amended Subsec. (2) by eliminating "commercial and industrial marketing, development,
testing and research services" under Subdiv. (i), subject to sales tax under Subsec. (1) of Sec. 12-408, effective June 11,
1986, and applicable to sales of certain services occurring on or after July 1, 1986; P.A. 87-1 made technical corrections;
P.A. 87-340 amended Subsec. (2) to delete collection agencies from the list of taxable services, effective July 1, 1987, and
applicable to services performed by collection agencies on or after that date; P.A. 88-6 amended Subsec. (2) by substituting
"aircraft" for "airplane" wherever the latter word appears, and added Subsec. (23) defining "aircraft"; P.A. 89-41 amended
Subdiv. (e) in Subsec. (12) by deleting (A) description of every dealer, distributor or employer in any sale as the principal
and any salesman, representative, peddler or canvasser operating under such dealer, distributor or employer in such sale
as the agent and (B) the related reference to their joint and several liability for payment of the tax, and by adding Subdivs.
(f) and (g) describing the conditions under which a person making sales from outside the state to within the state, and not
maintaining a place of business in this state, shall be considered a retailer and liable for tax and amended Subsec. (15) by
adding Subdiv. (e) providing that retail sales from outside this state, when the seller does not maintain a place of business
in this state and when such sales are effected by the methods described, shall be considered as engaging in business in this
state, effective July 1, 1989, and applicable to sales from outside this state to destinations in this state on or after that date;
P.A. 89-123 amended Subsec. (8) by changing the reference to Subpara. (K) to Subpara. (I) under Subdiv. (e) of said
Subsec. (8), which is the correct reference under the meaning of said Subdiv. (e), amended Subsec. (9) by changing the
reference to Subpara. (K) to Subpara. (I) under Subdiv. (e) of said Subsec. (9), which is the correct reference under the
meaning of said Subdiv. (e) and added new Subsecs. defining "vessel" and "licensed marine dealer", respectively, as they
are used in provisions related to sales and use taxes; P.A. 89-251 amended Subdiv. (i) in Subsec. (2) as follows: (1) Added
architectural, building engineering and planning or design as services subject to tax, (2) under services to income-producing
real property in Subpara. (I), removed maintenance, janitorial and landscaping services because of their inclusion as services
subject to tax when rendered with respect to any real property under Subparas. (Z), (AA) and (X) respectively, and removed
the exclusion from tax for services rendered in a renovation when the cost is capitalized for federal income tax purposes,
(3) in Subpara. (J), added consulting and public relations services and (4) added the services listed in Subparas. (M) to
(DD), inclusive, as services to be considered as sales and subject to tax, amended Subsec. (2) by adding Subdiv. (k)
providing that telecommunications service shall be considered a sale and subject to sales tax when rendered on or after
January 1, 1990, and Subdiv. (l) providing that community antenna television service shall be considered a sale and subject
to sales tax when rendered on or after January 1, 1990 and added new Subsecs. defining "telecommunications service"
and "community antenna television service", respectively; P.A. 90-148 amended Subsec. (2) by (1) changing the description
of the service under subparagraph (J) of Subdiv. (i) so that "consulting and public relations services" are described as
"management consulting and public relations services", which accordingly constitute a sale subject to tax and (2) providing
that the services of an agent described under subparagraph (U) of Subdiv. (i), as constituting a sale and accordingly subject
to tax, shall not include services of a consignee selling works of art or articles of clothing, except certain athletic or protective
clothing or handbags, luggage, jewelry and similar items, effective July 1, 1990, and applicable to sales of services on or
after that date; P.A. 90-186 added Subdiv. (f) in Subsec. (17) describing lodging accommodations at any facility operated
by a nonprofit charitable organization as a facility with respect to which charges for occupancy are not subject to sales
tax; P.A. 90-295 amended Subsec. (12) by adding Subdivs. (h) and (i) defining as a retailer for purposes of sales tax, any
person owned or controlled by a retailer in Connecticut engaged in the same line of business, or owned or controlled by
the same interests that own or control such a retailer in Connecticut, and amended Subsec. (15) by adding Subdivs. (f) and
(g) defining "engaged in business in this state" as including (1) a retailer owned or controlled by a retailer in the same line
of business and engaged in business in Connecticut or (2) a retailer owned or controlled by the same interests that own or
control a retailer in the same line of business and engaged in business in Connecticut, effective July 1, 1990, and applicable
to retail sales from outside Connecticut to a destination within the state occurring on or after that date; P.A. 91-132 redefined
"retailer" and "engaged in business in the state" to include Subdivs. (j) and (h), respectively, concerning assignees of
persons engaged in the business of leasing tangible personal property, effective July 1, 1991, and applicable to all assignments occurring on or after that date; June Sp. Sess. P.A. 91-3 redefined "sale" and "selling" as follows: (1) Deleted
architectural, building engineering and planning or design services, including interior design and decorating services, (2)
expanded motor vehicle repair services to all repairs, (3) clarified the scope of motor vehicle parking and car wash services,
(4) excluded cooperative direct mail advertising from advertising and public relations services, (5) excluded landscape
services provided by a licensed landscape architect, (6) extended repair and maintenance services to include contracts of
warranty or service, and (7) included photographic studio services, certain renovation and repair services, amusement and
recreation services, miscellaneous personal services and tax preparation services, added Subdivs. (m), concerning the
rendering of transportation services, and (n), concerning the storage or mooring of vessels, to Subsec. (2) redefined "sales
price" and "gross receipts" to exclude a portion of the payments made for the services of leased employees, redefined
"occupancy" to include the first period of not exceeding thirty consecutive calendar days, redefined "telecommunications
service" to remove the exclusion for charges specifically related to a service or the sale of a product that is not a telecommunications service and added Subsec. (28) defining "transportation services", effective August 22, 1991, and applicable to
sales occurring on or after October 1, 1991; June Sp. Sess. P.A. 91-14 amended Subdiv. (n) of Subsec. (2), defining "sale"
and "selling" to limit its application to noncommercial vessels; P.A. 92-184 inserted "or space in a campground" in Subsec.
(2)(h), Subsec. (3), Subsec. (7)(a), Subsec. (15)(b) and Subsec. (19) and inserted "or a campground" in Subsec. (18),
effective July 1, 1993; P.A. 92-202 amended Subsec. (2)(i)(FF) to exempt services of licensed massage therapists; May
Sp. Sess. P.A. 92-17 (1) in Sec. 17 amended Subsec. (2)(i)(W) to delete exception re media advertising subject to taxation
under Subdiv. (N) and amended Subsec. (2)(i)(EE) to exclude services rendered in a facility owned or managed by governmental entity from the definition of amusement and recreation services, effective June 19, 1992, and applicable to sales
occurring on or after October 1, 1991; (2) in Sec. 18 amended Subsec. (2)(i) (N) to exclude certain parking services rendered
to employees, amended Subsec. (2)(i)(S) to replace land surveying services with tax preparation services which was
previously numbered Subsec. (2)(i)(GG), amended Subsec. (2) (i)(W) by deleting exception for media advertising subject
to taxation under Subdiv. (n), amended Subsec. (2)(i)(X) to include landscaping services provided by a licensed landscape
architect, amended Subsec. (2)(i)(EE) to make the following changes with regard to amusement and recreation services:
(1) Exclude dance lessons, (2) include services offered by a governmental entity which entitle the patron to participate in
an athletic or sporting activity, other than swimming, which is not organized exclusively for patrons under the age of
nineteen, and (3) exclude any service provided without additional charge for which a charge subject to the admissions or
dues tax is paid, amended Subsec. (2)(i)(FF) to exclude services rendered by licensed massage therapist, effective June
19, 1992, and applicable to sales occurring on or after July 1, 1992; (3) in Sec. 19 further amended Subdiv. (2)(i)(EE) to
remove exclusion for swimming, effective June 19, 1992, and applicable to sales occurring on or after July 1, 1993, (4) in
Secs. 20, 21, 22 and 23 amended Subsecs. (8) and (9) to provide for the total exclusion of separately stated compensation
under Subdiv. (f) and to remove the limitation with regard to the performance of only repair, maintenance and other routine
services to real property, applicable to sales occurring on or after January 1, 1986, and to provide for the specific inclusion
of compensation and employment related expenses, applicable to sales occurring on or after July 1, 1992, and (5) in Sec.
24 amended Subsec. (28) to set forth as a test for inclusion that the person must be required to be licensed by the department
of transportation or the Interstate Commerce Commission and to exclude any person causing to be operated a commercial
motor vehicle, effective June 19, 1992, and applicable to sales occurring on or after July 1, 1992; P.A. 93-44 amended
Subsec. (2) to add new Subdiv. (o) re hospital charges and added new Subsec. (29) defining "hospital", effective April 23,
1993; P.A. 93-74 amended Subdivs. (2), (3), (7), (15), (18) and (19) to exclude space in a campground, effective May 19,
1993, and applicable to sales occurring on and after July 1, 1993, and further amended Subdiv. (2)(h) to delete reference
to campground spaces, amended Subdiv. (2)(i)(N) to remove exclusion for car-washing services and to add exclusion for
valet parking provided at any airport, Subdiv. (2)(i)(U) to include motor vehicles sold at auction to wholesalers, deleted
Subdiv. (2)(i)(EE) re amusements and recreation services and relettered the remaining Subdiv. accordingly and Subsec.
(2)(n) excluding certain dry or wet storage or mooring of noncommercial vessels, effective May 19, 1993, and applicable
to sales occurring on and after January 1, 1994, and amended Subdiv. (2)(i)(S) excluding tax preparation services provided
for a business, corporation, partnership and business schedules, effective May 19, 1993, and applicable to sales occurring
on and after January 1, 1995; P.A. 93-332 amended Subsec. (2) defining "sale" or "selling" to include business analysis,
management or managing consulting services rendered by a general partner to a limited partnership, effective June 25,
1993, and applicable to sales occurring on or after January 1, 1994, and amended Subsec. (8) and (9) defining "sale price"
and "gross receipts" to provide for the inclusion of shipping and delivery charges, deleting prior provisions which had
distinguished between transportation costs before and after purchase of property, and to provide for the exclusion of
separately stated compensation, fringe benefits, workers' compensation and payroll taxes under Subdiv. (f), effective June
25, 1993, and applicable to sales occurring on or after July 1, 1993, and amended Subsec. (19) defining "occupancy" to
exclude space in a campground, effective June 25, 1993, and applicable to sales occurring on and after July 1, 1993; P.A.
93-381 and 93-435 authorized substitution of department of public health and addiction services for department of health
services in Subsec. (29), effective July 1, 1993; P.A. 94-9 amended Subsec. (2)(i) to add new Subpara. (HH) re patient
care services by a hospital and to delete Subdiv. (o) re hospital charges for patient care services, effective January 1, 1994,
and applicable to sales on and after that date and also added new Subsec. (30) re patient care services, effective April 1,
1994; P.A. 94-175 amended Subsec. (2)(i)(HH) to add exception re Subdiv. (86) of Sec. 12-412 and redefined "patient
care services" in Subsec. (30) to include tangible personal property, effective June 2, 1994, and applicable to sales on and
after April 1, 1994; May Sp. Sess. P.A. 94-4, S. 13, in Subpara. (I) of Subdiv. (i) of Subsec. (2) excluded the evaluation,
prevention, treatment, containment or removal of hazardous waste or other contaminants of air, water or soil and in Subpara.
(J) of Subdiv. (i) of Subsec. (2) excluded environmental consulting services, effective June 9, 1994, and applicable to
income years occurring on or after July 1, 1989; May Sp. Sess. P.A. 94-4, S. 14 repealed Subpara. (R) of Subdiv. (i) of
Subsec. (2) re tax on health and athletic club services and relettered remaining Subparas. accordingly, and in Subpara.
(EE) of Subdiv. (i) of Subsec. (2) excluded certain compensation to general partners or affiliates thereof, effective January
1, 1995, and applicable to sales occurring on or after said date; May Sp. Sess. P.A. 94-4, S. 15, repealed Subpara. (S) of
Subdiv. (i) of Subsec. (2) re tax on tax preparation services and relettered the remaining Subparas. accordingly, and in
Subsec. (2)(i) (R)(ii) expanded exclusion to include all services provided by an auctioneer, effective July 1, 1996, and
applicable to sales occurring on or after said date, and relettered remaining Subparas. accordingly; May Sp. Sess. P.A. 94-
4, S. 80 changed effective date of P.A. 94-175, S. 23 from June 2, 1994, to January 1, 1995, effective June 9, 1994; May
25 Sp. Sess. P.A. 94-1, S. 126 and 127 in Subdiv. (2) made technical changes, effective January 1, 1995, and July 1, 1996,
respectively, and applicable to sales occurring on or after said dates; P.A. 95-79 redefined "person" to include a limited
liability company, effective May 31, 1995; P.A. 95-160, S. 48 amended Subdiv. (2) to add new Subpara. (R) re tax
preparation services, relettered the remaining Subparas., deleted exclusive of services provided by an auctioneer, and made
technical correction to change reference to Subsecs. (86) to (87) of Sec. 12-412, effective July 1, 1996, and applicable to
sales occurring on or after that date; P.A. 95-160, S. 49 amended Subpara. (D) to exclude services of off-duty police officers
at construction sites, added new Subpara. (N)(iv) re space in municipally-operated railroad parking facilities in severe
nonattainment areas for ozone, deleted Subpara. (R) re tax preparation services and relettered the remaining Subparas.,
added exclusion re services of an auctioneer, added new Subpara. (CC)(ii) re services of a hypertrichologist, effective July
1, 1997, and applicable to sales occurring on or after that date (Revisor's note: P.A. 95-160 also revised effective date of
May Sp. Sess. P.A. 94-4 but without affecting this section); P.A. 95-257 replaced Commissioner and Department of Public
Health and Addiction Services with Commissioner and Department of Public Health, effective July 1, 1995; P.A. 96-104
made existing Subdiv. (6), Subpara. (A) and added Subpara. (B) re property acquired by a customer of a commercial printer
and amended Subdiv. (15) by adding exclusion re retailers who contract with a commercial printer and made technical
corrections, effective July 1, 1996, and applicable to sales occurring on or after said date; P.A. 96-139 changed effective
date of P.A. 95-160 but without affecting this section; P.A. 96-165 eliminated from the definition of "sale" and "selling"
in Subsec. (2) the provisions of Subdiv. (m) re the rendering of transportation service, relettering the remaining Subdiv.
accordingly and eliminated the definition of "transportation service" in Subsec. (28), renumbering the remaining Subsecs.
accordingly, effective July 1, 1996; P.A. 96-222 amended definition of "transportation service" to insert "or its successor
agency" after "Interstate Commerce Commission", effective July 1, 1996, but failed to take effect, that definition having
been deleted by P.A. 96-165; P.A. 96-271 amended definition of "telecommunications service" in Subsec. (26) to replace
reference to Sec. 33-374a with Sec. 33-840, effective January 1, 1997; P.A. 97-2 amended Subdiv. (28) to exclude children's
general hospitals effective January 30, 1997, and applicable to sales occurring on or after February 1, 1997; P.A. 97-112
amended Subdiv. (17) to replace "homes for the aged" with "residential care homes"; P.A. 97-243 amended Subsec. (2)
to provide that services to industrial commercial or income-producing property are not taxable when provided to a housing
facility owned or operated by a nonprofit housing organization and deleted obsolete reference to computer programming,
amended Subsecs. (8) and (9) to delete obsolete dates, to reword portions of Subsecs. to clarify that a retailer is liable for
sales tax whether or not payment is received by the retailer and to make technical changes, amended Subsec. (12) to include
any service described in Subsec. (2) instead of Subdiv. (i) of Subsec. (2), and to make technical changes, amended Subsec.
(27) to add cable, fiber optics, satellite and microwave as means by which service provided, and added new Subsec. (30)
defining "another state" or "other state", effective June 24, 1997, and applicable to sales occurring on or after October 1,
1997; P.A. 97-316 amended Subsec. (2) to exclude all services of off-duty police officers and fire fighters and services
related to creation, development, hosting or maintenance of a web site, and amended Subsecs. (8) and (9) to delete existing
definitions of and add new provisions re when an employee is considered a leased employee for purposes of subsection,
effective July 10, 1997, and applicable to sales occurring on or after July 1, 1997; P.A. 98-28 redefined "tangible personal
property" to include distribution, generation or transmission of electricity, effective April 29, 1998; P.A. 98-110 amended
Subsecs. (8) and (9) to add new Subdivs. (B)(v) and (vi) re coupons and new Subdiv. (B)(ix) re deposits and relettered and
made technical changes to existing text, effective May 19, 1998, and applicable to sales occurring on or after July 1, 1998
(Revisor's note: In Subsec. (9)(B)(ix) the word "the" was added editorially by the Revisors immediately following the
"(ix)" designator); P.A. 98-244 redefined "retailer" to include persons from outside the state who make retail sales to
destinations within the state and who provide repair or service, under warranty, either directly or through an agent, independent contractor or subsidiary, on items sold by such persons, and amended Subsec. (15) to specify that making regular
repairs in or making regular deliveries into Connecticut is engaging in business in this state, effective June 8, 1998; Dec.
Sp. Sess. P.A. 98-1 amended Subdiv. (2) to add new Subpara. (n) re sale of naming rights, effective January 12, 1999;
P.A. 99-173 amended Subdiv. (2) to exclude training services provided by higher education institutions, amended Subdiv.
(3) to make technical changes and to provide that sale-leaseback transactions be treated as a single transaction for sales
tax purposes, and amended Subdiv. (28) to exempt short-term acute care hospitals run by the state from the sales tax on
hospital patient care services, effective June 23, 1999, and applicable to sales occurring on or after July 1, 1999; P.A. 99-
285 amended Subdiv. (2) in language identical to that used in P.A. 99-173, effective July 1, 1999; P.A. 00-170 added
Subdivs. (8)(B)(viii)(II) and (9)(B)(viii)(II) to exclude from the definition of "sales price" and "gross receipts" amounts
paid to worksite employees of professional employer organizations and added Subdivs. (31) to (33), inclusive, to define
"professional employer agreement", "professional employer organization" and "worksite employee", effective July 1,
2000; P.A. 00-174 amended Subdiv. (2) to specify programming, code writing and similar services, including such services
related to canned or custom software, within the scope of computer and data processing services for purposes of the
definition of "sale" or "selling", amended Subdiv. (13) to include canned or prewritten computer software in the definition
of "tangible personal property", amended Subdiv. (29) to include tangible personal property transferred in connection with
patient care services in the definition of such services, and added new Subdivs. designated as (35) and (36) defining "canned
or prewritten software" and "custom software", respectively, effective May 26, 2000, and applicable to all tax periods
open on said date, and further amended section to amend Subdiv. (2) by adding new Subpara. (o) re prepaid telephone
calling services, revising the standard industrial classification codes used in the definition of "sale" and "selling" and
making technical changes, to amend Subdiv. (26) by adding new Subpara. (b)(3) re prepaid telephone calling service, and
to add new Subdiv. designated as (34) to define prepaid telephone calling services, effective October 1, 2000, and applicable
to sales made on or after that date; P.A. 00-196 made technical changes in Subdiv. (2); P.A. 00-227 amended Subdiv. (15)
by designating existing provisions as Subparas. (A) and (B), making conforming technical changes thereto, and by adding
Subpara. (C) re treatment of fulfillment services under this section; June Sp. Sess. P.A. 00-1 amended new Subdiv. (35)
to add provision that software subsequently sold, licensed or leased to unrelated third parties shall be considered canned
or prewritten software, and amended new Subdiv. (36) to delete provision that the combining of two or more prewritten
programs or modification of prewritten software to accommodate the individual hardware requirements of a customer does
not constitute custom software, effective June 21, 2000, and applicable to all open tax periods.
Cited. 135 C. 245. Cited. 170 C. 556, 560. Cited. 206 C. 253, 259. Cited. 216 C. 17, 27, 28. Cited. 231 C. 315, 316,
321, 326.
Cited. 43 CS 5, 8.
Subsec. (2):
Under definition of "sale" party to whom title is transferred is party to whom sale is made even though others may
participate in transaction. 145 C. 161. If real objective is procuring of skilled engineering services, then not a "sale" under
this section. 145 C. 176. Subdiv. (a). Cited. 168 C. 597. Subdiv. (k). Cited. 171 C. 172, 175. Cited. 174 C. 51, 58. Cited.
176 C. 604, 606. Subdiv. (k) cited. Id., 604, 606, 607. Cited. 183 C. 194, 195−197. Subdiv. (j) cited. Id., 194, 196. Subdiv.
(a) cited. Id., 566, 577. Cited. 198 C. 413, 419. Determining when title passes for sales tax purposes discussed. 198 C. 624,
626, 629. Subdiv. (j) cited. 210 C. 401, 404. Subdiv. (i)(C) cited. Id., 413−415, 418−420, 422. Subdiv. (a): Transaction
essentially the conveyance of intangible right to free meals, the membership fees involved are not subject to sales tax. Id.,
567, 569. Subdiv. (i)(A) cited. 211 C. 246−248, 250. Subdiv. (i)(G) cited. Id., 246, 249. Subdiv. (i)(I) cited. Id. Subdiv.
(i)(J) cited. Id. 246, 252. Cited. 212 C. 639, 645. Subdiv. (i): Exclusion provided for by statute not applicable to services
rendered to dog track which were of a private nature and thus subject to sales tax. 213 C. 269, 275, 276. Subdiv. (i)(E)
cited. Id., 269, 270, 272, 274, 276, 277. Cited. 216 C. 17, 21. Subdiv. (i)(I) cited. 220 C. 749−753, 755, 756, 759, 761.
Subdiv. (i)(J): "Management services" includes day-to-day operational management as well as services of a consultative
nature. 221 C. 751, 752, 754, 755, 757, 758, 760−762. Subdiv. (i) cited. Id., 751, 755. Cited. Id., 751, 763. Subdiv. (c)
cited. 222 C. 49, 58. Subdiv. (i)(I): For purposes of sales and use tax under this section, term "services" does not include
tangible personal property purchased and consumed by asbestos removal contractors. 231 C. 315−318, 320, 321, 325, 327.
Cited. Id., 315, 320−322, 325. Subdiv. (a) cited. Id., 315, 322. Subdiv. (b) cited. Id. Subdiv. (c) cited. Id. Subdiv. (d) cited.
Id. Subdiv. (f) cited. Id. Subdiv. (g) cited. Id. Subdiv. (i) cited. Id. Subdiv. (j) cited. Id. Subdiv. (k) cited. Id. Subdiv. (l)
cited. Id. Subdiv. (m) cited. Id. Subdiv. (j) cited. 235 C. 393, 395. Subdiv. (i) cited. Id., 737, 738. Cited. 238 C. 571. Cited.
Id., 761. Sec. 2091(3)(1949) cited. Id. Subdiv. (i) cited. Id.
Cited. 2 CA 303, 305. Subdiv. (i)(c) cited. 6 CA 661, 663. Subdiv. (i)(A) cited. 18 CA 434−436. Cited. 24 CA 72, 75.
Subdiv. (i) cited. 35 CA 72, 74, 79, 80. Sec. 12-407(2)(i)(A)−(GG) cited. Id., 72, 79, 80.
Subdiv. (i) cited. 39 CS 234, 237. Subdiv. (j) cited. Id. Cited. 41 CS 175, 177. Subdiv. (i)(C) cited. 43 CS 5, 7. Subdiv.
(j) cited. Id., 5, 6, 9. Cited. 44 CS 133, 134, 139. Subdiv. (i) cited. Id., 133, 135. Subdiv. (i)(I): Service of collecting scrap
tires falls within the hazardous waste removal exemption from the sales and use tax. 45 CS 508.
Subsec. (3):
If plaintiff cannot prove the purchase is for resale in the regular course of business, then sale to plaintiff is "sale at
retail." 145 C. 176. Cited. 174 C. 51, 61. Cited. 183 C. 566, 577. Cited. 210 C. 401, 404. Cited. Id., 413, 416, 417, 418.
Cited. Id., 567, 570. Cited. 235 C. 393, 395. Cited. 238 C. 571. Cited. Id., 761.
Cited. 18 CA 434−436.
Facilities purchased to be turned over to federal government were not sold in regular course of business for purposes
of this subsection. 19 CS 333.
Cited. 5 Conn. Cir. Ct. 403.
Subsec. (4):
Cited. 235 C. 393, 395.
Subsec. (5):
Cited. 145 C. 161. Plaintiff procured property for government but held title during transportation, held taxable use. 145
C. 176. Cited. 235 C. 393, 395. Cited. Id., 737, 740. Cited. 236 C. 613, 617, 624. Cited. 238 C. 761. Sec. 2091(6)(1949)
cited. Id. Cited. 240 C. 531.
Cited. 42 CA 310.
Cited. 39 CS 234, 238. Cited. 44 CS 133, 135, 142.
Subsec. (7):
Subdiv. (f) cited. 174 C. 51, 58. Cited. 183 C. 194, 195. Cited. 222 C. 49, 58. Subdiv. (e) cited. 238 C. 761.
Subsec. (8):
Cited. 187 C. 581, 582. Cited. 216 C. 17, 21.
Cited. 2 CA 303, 305. Cited. 6 CA 261, 262, 264.
Cited. 30 CS 309. Subdiv. (d) cited. 43 CS 5, 8. Cited. 44 CS 133, 140.
Subsec. (9):
Cited. 174 C. 51, 58. Tax applied to payments for the use of personal property occurring after effective date of amendment
although prepayment made before effective date. 183 C. 194−196. Cited. 187 C. 581, 582. Cited. 216 C. 17, 19, 21, 22,
24, 26−28. Subdiv. (c) cited. Id., 17, 22. Subdiv. (d) cited. Id., 17, 22, 26.
Cited. 2 CA 303, 305, 306. Cited. 5 CA 532, 537. Cited. 6 CA 261, 262, 264.
Cited. 31 CS 373. Subdiv. (d) cited. 43 CS 5, 8.
Subsec. (12):
Cited. 238 C. 571.
Subsec. (13):
Cited. 176 C. 604, 606. Cited. 210 C. 567, 570, 571.
Cited. 43 CS 5, 6.
Subsec. (15):
Cited. 217 C. 220, 222, 223.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) For purposes of determining the application of tax under this chapter to cellular
mobile telecommunications service in accordance with subdivision (1) of subsection
(a) of this section, (A) a call originated from a cellular mobile telephone shall be deemed
to have originated in this state if the first site in a cellular telephone system, at which
messages to or from cellular mobile telephones are transmitted or received, to establish
a completed call is located in this state, (B) a call terminated at a cellular mobile telephone
shall be deemed to have terminated in this state if the first such site to transmit the call
to such telephone is located in this state, (C) a call originated in this state as described
in subparagraph (A) of this subsection shall be deemed to have originated and terminated
in this state if the call terminates in this state and (D) a call terminated in this state as
described in subparagraph (B) of this subsection shall be deemed to have originated and
terminated in this state if the call originates in this state.
(P.A. 89-251, S. 3, 203; June Sp. Sess. P.A. 91-3, S. 109, 168.)
History: June Sp. Sess. P.A. 91-3 amended Subsec. (a) to clarify that services which originate or terminate outside this
nation, as well as in another state, are subject to the tax, effective August 22, 1991, and applicable to sales occurring on
or after October 1, 1991.
(Return to TOC) (Return to Chapters) (Return to Titles)
(June Sp. Sess. P.A. 91-3, S. 110, 168; P.A. 96-165, S. 8, 9.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 91-132, S. 3, 4; P.A. 00-227, S. 2.)
History: P.A. 00-227 added provisions exempting unaffiliated persons providing fulfillment services from coverage
under this section and made technical changes for purposes of gender neutrality.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 00-170, S. 15, 42.)
History: P.A. 00-170 effective July 1, 2000, and applicable to sales occurring on or after that date.
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) Retailer collects tax from consumer. Credit allowed for tax remitted to state
on worthless account receivable. (A) Reimbursement for the tax hereby imposed shall
be collected by the retailer from the consumer and such tax reimbursement, termed "tax"
in this and the following subsections, shall be paid by the consumer to the retailer and
each retailer shall collect from the consumer the full amount of the tax imposed by this
chapter or an amount equal as nearly as possible or practicable to the average equivalent
thereof. Such tax shall be a debt from the consumer to the retailer, when so added to
the original sales price, and shall be recoverable at law in the same manner as other
debts except as provided in section 12-432a. The amount of tax reimbursement, when
so collected, shall be deemed to be a special fund in trust for the state of Connecticut.
(B) Whenever such tax, payable by the consumer (i) with respect to a charge account
or credit sale occurring on or after July 1, 1984, is remitted by the retailer to the commissioner and such sale as an account receivable is determined to be worthless and is actually
written off as uncollectible for federal income tax purposes, or (ii) to a retailer who
computes taxable income, for purposes of taxation under the Internal Revenue Code of
1986, or any subsequent corresponding internal revenue code of the United States, as
from time to time amended, on the cash basis method of accounting with respect to a
sale occurring on or after July 1, 1989, is remitted by the retailer to the commissioner
and such sale as an account receivable is determined to be worthless, the amount of such
tax remitted may be credited against the tax due on the sales tax return filed by the
retailer for the monthly or quarterly period, whichever is applicable, next following the
period in which such amount is actually so written off, but in no event shall such credit
be allowed later than three years following the date such tax is remitted, unless the credit
relates to a period for which a waiver is given pursuant to subsection (g) of section 12-
415. The commissioner shall, by regulations adopted in accordance with chapter 54,
provide standards for proving any such claim for credit. If any account with respect to
which such credit is allowed is thereafter collected by the retailer in whole or in part,
the amount so collected shall be included in the sales tax return covering the period in
which such collection occurs. The tax applicable in any such case shall be determined
in accordance with the rate of sales tax in effect at the time of the original sale.
(C) (i) Any person required to collect tax in accordance with this subsection who
demonstrates to the satisfaction of the Commissioner of Revenue Services by July first
of any year that, in any two quarterly periods as described in section 12-414, within the
most recent four consecutive quarterly periods, such person was a materialman as such
term is used in chapter 847, who has at least fifty per cent of such person's sales of
building materials to contractors, subcontractors or repairmen for the improvement of
real property, and is authorized by said chapter to file a mechanic's lien upon such real
property and improvement shall, with respect to such sales made through the quarterly
period ending the succeeding June thirtieth, collect tax due on such sales, and on sales
to such contractors, subcontractors or repairmen of services described in subdivision
(2) of section 12-407 with respect to such building materials, for such purpose and made
during such July first through June thirtieth period, at the time and to the extent that such
person receives the receipts from, or consideration for, such sales from such contractors,
subcontractors or repairmen, provided if such person receives a portion of such receipts
or consideration, such person shall collect the tax due on such portion at the time the
portion is received. The taxes imposed by this chapter on such receipts and consideration
shall be deemed imposed, solely for purposes of determining when such person is required to collect and pay over such taxes to the commissioner under section 12-414,
when such person has received payment of such receipts or consideration in money, or
money's worth, from such contractor, subcontractor or repairman. A contractor, subcontractor or repairman who purchases building materials or services from such person
pursuant to this subparagraph shall, at the time such contractor, subcontractor or repairman pays any portion of the purchase price, pay to the person the tax due on the portion
of the purchase price so paid. (ii) In the event that a materialman described in this
subparagraph factors any portion of such materialman's receivables, such materialman
shall be deemed to have received payment of such receipts or consideration in money
or money's worth, from the contractor, subcontractor or repairman and shall be required
to pay over tax on such sale with the next return due, with a credit against such tax for
any tax already paid over with respect to such sale. Any such amount of tax paid over
shall be on account of the tax required to be collected on the sale to which it relates and
such materialman may take a credit against any tax paid by such contractor, subcontractor or repairman in the future on such sale, to ensure that tax paid over with respect to
such sale does not exceed the amount of tax imposed on such sale as if the entire purchase
price had been paid at the time of sale. (iii) A materialman described in this subparagraph
who has not collected the tax due on the full purchase price for a sale described in this
subparagraph from a contractor, subcontractor or repairman within one year from the
date of such sale, shall pay over to the commissioner the tax due on any balance of such
full purchase price with such materialman's return for the period which includes the
date which is one year after the date of such sale. (iv) The commissioner may assess
additional tax due with respect to a sale described in this subparagraph not later than
three years from the date the tax is required to be paid over to the commissioner pursuant
to this subparagraph, and in the case of a wilfully false or fraudulent return with intent
to evade the tax, or where no return has been filed such taxpayer shall be subject to the
provisions of section 12-428.
(3) Bracket system for adding and collecting tax. For the purpose of adding and
collecting the tax imposed by this chapter, or an amount equal as nearly as possible or
practicable to the average equivalent thereof, by the retailer from the consumer the
following bracket system shall be in force and effect as follows:
Amount of Sale Amount of Tax $0.00 to $0.08 inclusive No Tax .09 to .24 inclusive 1 cent .25 to .41 inclusive 2 cents .42 to .58 inclusive 3 cents .59 to .74 inclusive 4 cents .75 to .91 inclusive 5 cents .92 to 1.08 inclusive 6 cents
(4) Unlawful advertising. No retailer shall advertise or hold out or state to the
public or to any consumer, directly or indirectly, that the tax or any part thereof will be
assumed or absorbed by the retailer or that it will not be added to the sales price of the
property sold or that, if added, it or any part thereof will be refunded. Under the provisions
of this section, however, a retailer may advertise the sale of tangible personal property
by any of the following methods: By stating the sales price alone without reference to
the tax; by stating separately the sales price and the amount of tax to be collected thereon;
by stating the sales price "plus tax" or "exclusive of tax" or by stating a sales price which
includes the tax, together with the words "tax included" or "tax incl."; provided the
retailer in the case of all such sales shall maintain his records to show separately the
actual price of such sales and the amount of the tax paid thereon; and provided such
retailer, if requested, shall furnish the consumer with a sales slip or other like evidence
of the sale, showing the tax separately computed thereon. Any person violating any
provision of this subsection shall be fined five hundred dollars for each offense.
(5) Notices, signs or advertisements subject to approval. No retailer shall exhibit
or display on his premises any notice, sign or other advertising matter tending to mislead
the public in connection with the imposition or collection of the tax. The Commissioner
of Revenue Services may approve a form of notice for the purpose of explaining the
operation of the tax.
(6) Regulations related to sales of motor vehicles to certain members of the
armed forces. The Commissioner of Revenue Services shall adopt regulations, in accordance with chapter 54, establishing a procedure for determination of qualifications
with respect to the reduced rate of sales tax in the case of certain sales of motor vehicles
to members of the armed forces as provided in subsection (1) of this section.
(7) Computation of tax for purposes of toll telephone service in coin-operated
telephones. For purposes of the tax imposed by this chapter, with respect to toll telephone service paid by inserting coins in coin-operated telephones, the tax shall be computed to the nearest multiple of five cents, except if the tax is midway between multiples
of five cents, the next higher multiple shall apply.
(1949 Rev., S. 2092; 1951, 1953, June, 1955, S. 1163d, 1164d; November, 1955, S. N144, N145; 1957, P.A. 553, S.
1, 2; 1959, P.A. 578, S. 10; 1961, P.A. 574, S. 1, 2; February, 1965, P.A. 105, S. 1; 381, S. 2; 1967, P.A. 619, S. 1; June,
1969, P.A. 1, S. 18, 19; June, 1971, P.A. 5, S. 105, 106; 8, S. 3, 4; 1972, P.A. 285, S. 1, 2; P.A. 73-288, S. 1, 2; 73-616,
S. 49, 67; P.A. 74-73, S. 1, 2, 5; P.A. 75-2, S. 1, 2, 5; 75-213, S. 23, 53; P.A. 76-114, S. 1, 21; P.A. 77-370, S. 1, 13; 77-
604, S. 76, 84; 77-614, S. 139, 610; P.A. 78-71, S. 1, 5; P.A. 80-71, S. 17, 18, 30; June Sp. Sess. P.A. 83-1, S. 8, 15; P.A.
84-362, S. 1, 2; 84-545, S. 1−3; P.A. 85-547, S. 1, 2; P.A. 86-397, S. 3, 10; P.A. 87-314, S. 1, 2; P.A. 88-314, S. 22, 54;
P.A. 89-251, S. 7, 197, 198, 203; P.A. 90-336, S. 1, 3; June Sp. Sess. P.A. 91-3, S. 111, 168; June Sp. Sess. P.A. 91-14,
S. 23, 30; P.A. 92-184, S. 14, 19; May Sp. Sess. P.A. 92-5, S. 26, 37; May Sp. Sess. P.A. 92-17, S. 25, 26, 59; P.A. 93-44,
S. 3, 22, 24; 93-74, S. 22, 67; 93-332, S. 4, 42; P.A. 94-9, S. 16, 41; May Sp. Sess. P.A. 94-4, S. 17, 85; P.A. 95-160, S.
39, 64, 69; P.A. 96-139, S. 12, 13; 96-232, S. 1, 3; P.A. 97-243, S. 17, 67; P.A. 98-110, S. 6, 27; 98-244, S. 17, 35; 98-
262, S. 5, 22; P.A. 99-48, S. 8, 10; 99-173, S. 13, 14, 65; P.A. 00-170, S. 7, 42; 00-174, S. 4, 83; 00-230, S. 5.)
History: 1959 act extended tax to transfers of room occupancy, and appropriated part of the proceeds to state development
commission; 1961 act increased tax rate in subsection (1) and revised bracket system to comply with new tax rates; 1965
acts amended Subsec. (1) to change amount appropriated to development commission from five to seven per cent of gross
revenue tax "for last-preceding year" and amended Subsec. (2) to delete phrase "so far as it can be done" re collection of
tax by retailer from consumer and to add exception to provision for recovery at law; 1967 act changed appropriation amount
in Subsec. (1) to ten per cent of gross revenue; 1969 act changed appropriation amount in Subsec. (1) to eight and one-
half per cent and temporarily increased tax rate on retailers to five per cent and two and one-half per cent on sales of ten
cents or less for period from July 1, 1969, to June 30, 1971, and revised bracket system in Subsec. (3) accordingly; 1971
acts increased appropriation amount to ten per cent and made temporary increases in tax rate permanent, revising bracket
system in Subsec. (3) accordingly, and later changed appropriation amount to eight per cent and raised tax rates to six and
one-half and three and one-half per cent on sales of seven cents or less as of September 1, 1971, added provision re contracts
without escalator clauses in Subsec. (1) and revised Subsec. (3) accordingly; 1972 act increased tax rate to seven per cent,
deleted provisions re appropriations to development commission in Subsec. (1) and revised Subsec. (3) accordingly; P.A.
73-288 reduced tax rate to six and one-half per cent in Subsec. (1) and revised Subsec. (3) accordingly; P.A. 73-616 reduced
tax rate on sales of seven cents or less to three and one-quarter per cent; P.A. 74-73 reduced tax rates in Subsec. (1) to six
per cent and three per cent on sales of eight cents or less, revising Subsec. (3) accordingly; P.A. 75-2 increased rates in
Subsec. (1) to seven per cent and three and one-half per cent on sales of seven cents or less, revising Subsec. (3) accordingly;
P.A. 75-213 included rendering of services under Sec. 12-407(2) in tax; P.A. 76-114 amended Subsec. (1) to include three
and one-half per cent rate on sales of machinery and rendering of services under Sec. 12-407(2)(j)(A)−(M) and defined
"machinery" in Subsec. (1); P.A. 77-370 changed tax rate for machinery to two and one-half per cent and included agricultural machinery and redefined "machinery" to include "numerically controlled machinery used directly in the manufacturing process"; P.A. 77-604 made technical change to section reference in Subsec. (1); P.A. 77-614 substituted commissioner
of revenue services for tax commissioner, effective January 1, 1979; P.A. 78-71 deleted definition of "machinery" and
provision for two and one-half per cent tax rate on its sale in Subsec. (1); P.A. 80-71 increased tax rate to seven and one-
half per cent, deleted provision for three and one-half per cent rate on sales of seven cents or less in Subsec. (1) and revised
Subsec. (3) accordingly; June Sp. Sess. P.A. 83-1 amended Subsec. (1) by providing that services rendered constituting a
sale in accordance with Subdiv. (i) of Subsec. (2) of Sec. 12-407 shall be subject to tax at the rate of seven and one-half
per cent in lieu of three and one-half per cent as previously provided, effective August 1, 1983; P.A. 84-362 added the
provision to Subsec. (2) allowing credit against sales tax due from a retailer in charge account or credit sales when tax has
been remitted to the state and subsequently the account is determined to be worthless; P.A. 84-545 amended Subsec. (1)
to provide for a rate of four per cent, in lieu of the rate of seven and one-half per cent, in respect to the sale of any motor
vehicle to any person who is a member of the armed forces of the United States and is on full-time active duty in Connecticut
but whose permanent residence is in another state and Sec. 2 of the act, re commissioner's regulatory powers, was added
editorially as Subsec. (6), effective July 1, 1984, and applicable to the sale of motor vehicles on or after that date; P.A. 85-
547 amended Subsec. (1) to provide for a reduction in the rate of sales tax to two per cent for the sale of aviation fuel in
the period July 1, 1985, to June 30, 1987, provided the fuel is used exclusively for aviation purposes and the retailer's
place of business is upon an established airport within Connecticut, effective July 1, 1985, and applicable to sales of aviation
fuel in the period July 1, 1985, to June 30, 1987, inclusive; P.A. 86-397 amended Subsec. (1) by providing for a reduction
in rate of tax to five per cent of gross receipts with respect to sale of any repair or replacement parts exclusively for use in
machinery used directly in a manufacturing or agricultural production process, effective June 11, 1986, and applicable to
sales of repair or replacement parts occurring on or after July 1, 1986; P.A. 87-314 amended Subsec. (1) with respect to
the period July 1, 1985, to June 30, 1987, as the period of time during which the rate of two per cent of gross receipts would
be applicable in the case of sales of aviation fuel, by deleting the period of time reference, and accordingly making said
rate applicable after June 30, 1987, without limitation as to time, effective July 1, 1987, and applicable to sales of aviation
fuel on or after that date; P.A. 88-314 amended Subsec. (4) by increasing the fine to five hundred dollars for each violation
of the provisions of this Subsec., replacing the fine of not more than one hundred dollars for each such offense, effective
July 1, 1988, and applicable to any tax which first becomes due and payable on or after said date, to any return or report
due on or after said date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period
next beginning on or after said date; P.A. 89-251 increased the rate of tax in Subsec. (1) from seven and one-half per cent
to eight per cent of gross receipts, with corresponding changes in the lower rates for certain sales, amended the brackets
in Subsec. (3) for certain amounts of sale to reflect the amounts of tax applicable with respect to the rate of eight per cent
and added Subsec. (7) providing a method of computation of tax for purposes of toll telephone service in coin-operated
telephones; P.A. 90-336 added Subdiv. (B) of Subsec. (2) allowing a cash-basis taxpayer to take credits for worthless
accounts receivable with respect to sales occurring on or after July 1, 1989; June Sp. Sess. P.A. 91-3 amended Subsecs.
(1) and (3) to reduce the general rate to six per cent and amended Subsec. (1) to increase the rate with respect to the transfer
of occupancy to twelve per cent, to set the rate with respect to the sales of vessels to nonresidents to the lesser of six per
cent or the rate in the home state of the nonresident and to provide for the payment of the tax on a cash basis for retailers
of services who are cash-basis taxpayers for federal purposes, effective August 22, 1991, and applicable to sales occurring
on or after October 1, 1991; June Sp. Sess. P.A. 91-14 amended Subsec. (1) to make the provisions relating to vessels
effective September 19, 1991; P.A. 92-184 amended Subdiv. (B) of Subsec. (1) by adding "or space in a campground",
effective July 1, 1993; May Sp. Sess. P.A. 92-5 amended Subsec. (1) to make various technical and minor changes, effective
June 19, 1992, and applicable to sales occurring on or after July 1, 1992; May Sp. Sess. P.A. 92-17 amended Subsec. (1)
to remove the special rate on aviation fuel, provided for an affidavit, rather than registration in the home state, as proof of
out-of-state residence and made technical changes, effective June 19, 1992, and applicable to sales occurring on or after
July 1, 1992; P.A. 93-44 amended Subsec. (1) to apply provisions to persons rendering services under Subdiv. (o) of
Subsec. (2) of Sec. 12-407 and Sec. 19a-168b, effective April 23, 1993; P.A. 93-74 amended Subsec. (1) to exclude space
in a campground, effective May 19, 1993, and applicable to sales occurring on and after July 1, 1993; P.A. 93-332 amended
Subsec. (2) to provide that the amount of tax reimbursement shall be deemed a special fund in trust for the state, effective
June 25, 1993; P.A. 94-9 amended Subsec. (1) to delete reference to Sec. 12-407(2)(o) and Sec. 19a-168b, effective April
1, 1994; May Sp. Sess. P.A. 94-4 in Subsec. (1) added schedule for gradually reducing sales tax with respect to the sale
of computer and data processing, effective July 1, 1996, and applicable to sales occurring on or after said date; P.A. 95-
160 in Subsec. (1) delayed by one year schedule for reduction of tax with respect to computer and data processing in
Subpara. (E), effective July 1, 1997, and applicable to sales occurring on and after that date (Revisor's note: P.A. 95-160
also revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section); P.A. 96-139 changed effective
date of P.A. 95-160 to make applicable to sales occurring on or after July 1, 1996; P.A. 96-232 amended Subdiv. (1) to
provide lower rates for tax on sale of repair or maintenance services on vessels, effective June 6, 1996, and applicable to
sales occurring on and after July 1, 1997; P.A. 97-243 amended Subsec. (1) to add requirement that retailer maintain an
affidavit or other evidence with respect to sales of motor vehicles to members of the armed forces concerning the buyer's
state of residence, to provide that the tax rate on vessels sold to nonresidents is the lesser of six per cent or the tax rate in
the state in which the individual resides, and to make technical and renumbering changes, effective June 24, 1997, and
applicable to sales occurring on or after October 1, 1997; P.A. 98-110 amended Subsec. (1) to repeal Subdiv. (A) re repair
or replacement parts and reletter remaining Subdivs., effective May 19, 1998, and applicable to sales occurring on or after
January 1, 1999; P.A. 98-244 amended Subsec. (1)(c) to allow reduction in tax rate and exemption for military when the
name of the spouse is on the title of the motor vehicle, effective June 8, 1998, and applicable to sales occurring on or after
October 1, 1998; P.A. 98-262 amended Subsec. (2) to clarify language with respect to statute of limitations re bad debt
write-off and made technical renumbering and relettering changes, effective June 8, 1998; P.A. 99-48 amended Subsec.
(2) to change reference to Sec. 12-415(8) to Sec. 12-415(g), effective January 1, 2000; P.A. 99-173 amended Subsec. (1)
to make technical changes, to delete provisions re sale of a vessel to an individual who does not maintain a permanent
place of abode in this state, to exempt labor services on vesels, to reduce the tax rate to four per cent effective July 1, 1999,
to two per cent on July 1, 2000, and eliminate the tax on July 1, 2001, for paving, painting, staining, wallpapering, roofing,
siding, and exterior sheet metal work services on residential properties, and to reduce the tax rate on hospital services from
six to five and three-fourths per cent, and amended Subsec. (2) to add new Subdiv. (C) allowing building material suppliers
the option of remitting sales tax when they receive payment, effective June 23, 1999, and applicable to sales occurring on
or after July 1, 1999; P.A. 00-170 amended Subsec. (1) to phase out the tax on Internet access services on and after July
1, 2001, effective May 26, 2000; P.A. 00-174 amended Subsec. (1) to eliminate affidavit requirement for motor vehicle
sales to armed forces personnel, to add provisions re declaration, to provide an exemption for certain labor to existing
vessels and to delete requirement re furnishing of other states' tax information by the commissioner, effective October 1,
2000, and applicable to sales made on or after that date; P.A. 00-230 made a technical change in Subsec. (2)(C).
Cited. 134 C. 297; 144 C. 311; 158 C. 238. It is generally held that a general contractor who purchases material from
a retailer for use in the construction of a building for his customer is the "consumer" of those materials within the meaning
of that term as it appears in the statutes. 168 C. 597. Cited. 183 C. 194, 197. Preprints of advertising matter are not printed
for resale and are therefore subject to sales tax on the transaction between the printer and the advertiser. Id., 566, 569, 577.
Cited. 187 C. 581, 584. Cited. 210 C. 567, 570, 571. Cited. 216 C. 17, 21. Cited. 222 C. 49, 51. Cited. 231 C. 315, 319.
Cited. 235 C. 393, 394. Cited. 238 C. 571. Cited. Id., 761.
Cited. 18 CA 434, 435.
Services of self-employed welder exempt from sales tax. 30 CS 309. Cited. 41 CS 175, 177.
Cited 5 Conn. Cir. Ct. 403.
Subsec. (1):
Tax imposed on rental payments from July 1, 1975, does not result in double taxation since sales tax paid on property
purchased before that date was imposed on lessors and levied on purchase, while tax imposed after that date was imposed
on lessees and is levied on rent. 174 C. 51, 63. Cited. 187 C. 581, 584. Cited. 198 C. 413, 418. Cited. Id., 624, 625, 629.
Cited. 204 C. 122, 132. Cited. 210 C. 567, 570, 571. Cited. 216 C. 17, 22. Cited. 221 C. 751, 754, 755, 763, 765, 766.
Cited. 2 CA 303, 305. Cited. 18 CA 434, 435.
Receipts of catering business subject to sales tax. Where owner innocently failed to file return for twenty-one years,
held recovery of sales taxes limited to three years and penalty and interest. 31 CS 373. Sales tax to be collected, if at all,
at time of original transfer. 37 CS 642−644. Cited. 39 CS 234, 236. Cited. 41 CS 175, 177. Cited. 44 CS 1, 2. Cited. Id.,
133, 134.
Subsec. (2):
Tax is actually imposed upon purchaser and, where government is purchaser, no tax can be levied. 145 C. 161. Cited.
187 C. 581, 584. Cited. 205 C. 51, 56.
Failure of a retailer to add the amount of the tax to the sale price at the time of sale precludes the tax from becoming a
debt of the consumer recoverable by the retailer. 36 CS 255. Sales tax to be collected, if at all, at time of original transfer.
37 CS 642−644. Cited. 41 CS 175, 177. Cited. 44 CS 1−3.
Subsec. (4):
Subsection is directed to the retailer and would not seem to affect the consumer in any way. 36 CS 255, 256.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 86-393, S. 2, 3; P.A. 93-44, S. 4, 24; P.A. 94-9, S. 17, 41.)
History: P.A. 93-44 added new Subsec. (b) re payment of certain sales tax revenue to the uncompensated care pool,
effective April 23, 1993; P.A. 94-9 deleted Subsec. (b) re uncompensated care pool funds, effective April 1, 1994.
(Return to TOC) (Return to Chapters) (Return to Titles)
(June Sp. Sess. P.A. 91-3, S. 118, 168.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) The commissioner shall make a determination as to any such claim not later
than ninety days after receipt thereof and, if approved, transmit such approval to the
State Comptroller who shall draw his order on the State Treasurer for payment of such
refund. If the commissioner determines that such claim is not valid, either in whole or
in part, notice of the proposed disallowance shall be mailed to the claimant and such
notice shall set forth briefly the commissioner's findings of fact and the basis of disallowance in each case decided in whole or in part adversely to the claimant. Sixty days after
the date on which it is mailed, a notice of proposed disallowance shall constitute a final
disallowance except for such amounts as to which the claimant has filed, as provided
in subdivision (3) of this subsection, a written protest with the commissioner.
(3) Within sixty days after the mailing of a proposed disallowance, the claimant
may file with the commissioner a written protest against the proposed disallowance in
which the claimant shall set forth the grounds on which the protest is based. If a protest
is filed, the commissioner shall reconsider the proposed disallowance and, if the claimant
has so requested, may grant or deny the claimant or the claimant's authorized representatives an oral hearing.
(4) Notice of the commissioner's determination shall be mailed to the claimant and
such notice shall set forth briefly the commissioner's findings of fact and the basis of
decision in each case decided in whole or in part adversely to the claimant.
(5) The action of the commissioner on the claimant's protest shall be final upon the
expiration of one month from the date on which he mails notice of his action to the
claimant unless within such period the claimant seeks judicial review of the commissioner's determination pursuant to section 12-422.
(6) The commissioner may, at any time within three years after the date of receipt
of such claim for refund, examine such claim and supporting documentation and, in the
case of any error is disclosed by such examination, mail a notice of assessment in the
manner provided in section 12-415 as if a return had been filed with which the commissioner was not satisfied. In such event, the claimant may petition for reassessment in
the time and manner provided in section 12-418. The order or decision of the commissioner upon the petition for reassessment shall be subject to judicial review in the time
and manner provided in section 12-422.
(b) (1) Whenever any holder of a permit issued under this subsection purchases
from a retailer tangible personal property for use or consumption in carrying on the trade,
occupation, business or profession of such person, (A) for the purpose of subsequently
transporting it outside this state for use or consumption thereafter solely outside this
state or (B) for the purpose of being processed, fabricated or manufactured into, attached
to or incorporated into, other tangible personal property to be transported outside this
state and thereafter used or consumed solely outside this state, such holder may purchase
such property without payment of the taxes otherwise imposed by this chapter on the
purchase of such property.
(2) The Commissioner of Revenue Services may pursuant to regulations adopted in
accordance with chapter 54 issue a permit to any person carrying on a trade, occupation,
business or profession in this state who purchases from a retailer tangible personal
property for use or consumption in carrying on such trade, occupation, business or profession, (A) for the purpose of subsequently transporting it outside this state for use or
consumption thereafter solely outside this state or (B) for the purpose of being processed,
fabricated or manufactured into, attached to or incorporated into, other tangible personal
property to be transported outside this state and thereafter used or consumed solely
outside this state, if the commissioner determines that the person is carrying on a trade,
occupation, business or profession in this state and is filing the returns required to be
filed by such person under section 12-414 and that the enforcement of the provisions
of this chapter shall not be adversely affected.
(3) The permit issued under subdivision (2) of this subsection shall authorize the
holder to the extent and in the manner specified in the regulations adopted under said
subdivision (2), to purchase tangible personal property from a retailer on which the
taxes imposed by this chapter shall not be payable. The regulations adopted under this
subsection shall require (A) a declaration, prescribed as to form by the commissioner and
bearing notice to the effect that false statements made in such declaration are punishable,
stating that such property is purchased for a purpose permitted by this subsection, (B)
a report to be submitted with, and to be a part of, each return that is required to be filed
under section 12-414 by the holder of such permit detailing the persons from whom
such tangible personal property was purchased during the period covered by such return,
the quantities in which and the dates on which such property was purchased and any
other information deemed necessary by the commissioner, and (C) periodic registration,
at least annually, for the purpose of the issuance of a permit, including procedures relating to the application for the permit and notice concerning the penalty for misuse of the
permit.
(P.A. 97-243, S. 48, 67; P.A. 00-174, S. 63, 83.)
History: P.A. 97-243 effective June 24, 1997; P.A. 00-174 deleted requirement for an affidavit for certain information
required to be submitted, deleted provision re notarization of permit application and added provisions re declaration,
effective July 1, 2000.
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) Application for permit. Every person desiring to engage in or conduct business
as a seller within this state shall file with the commissioner an application for a permit
for each place of business. Every application for a permit shall be made upon a form
prescribed by the commissioner and shall set forth the name under which the applicant
transacts or intends to transact business, the location of his place or places of business
and such other information as the commissioner requires. The application shall be signed
by the owner if a natural person; in the case of an association or partnership, by a member
or partner; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application.
(3) Permit fee. At the time of making an application the applicant shall pay to the
Commissioner of Revenue Services a permit fee of twenty dollars for each permit. On
or after July 1, 1985, any permit issued prior to or on or after said date shall expire
biennially on the anniversary date of the issuance of such permit unless renewed in
accordance with such procedure and application form as prescribed by the commissioner.
(4) Issuance and display of permit. After compliance with subsections (1), (2)
and (3) of this section by the applicant, the commissioner shall grant and issue to such
applicant a separate permit for each place of business within the state. A permit is not
assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. It shall at all times be conspicuously
displayed at the place for which issued.
(5) Reissuance of permit. A seller whose permit has been suspended or revoked
shall pay to the Commissioner of Revenue Services a fee of fifty dollars for the reissuance
of a permit.
(6) Revocation or suspension of permit. Whenever any person fails to comply
with any provision of this chapter relating to the sales tax or any regulation of the commissioner relating to the sales tax prescribed and adopted under this chapter or whenever
any seller files returns for four successive monthly or quarterly periods, as the case may
be, showing no sales, the commissioner, upon hearing, after giving such person ten
days' notice in writing specifying the time and place of hearing and requiring him to
show cause why his permit or permits should not be revoked, may revoke or suspend
any one or more of the permits held by the person. The notice may be served personally
or by registered or certified mail. The commissioner shall not issue a new permit after
the revocation of a permit unless he is satisfied that the former holder of the permit will
comply with the provisions of this chapter relating to the sales tax and the regulations
of the commissioner.
(7) Unlawful acts. Any person who knowingly violates any provision of this section
shall be fined not more than five hundred dollars or imprisoned not more than three
months or both for each offense.
(1949 Rev., S. 2093; P.A. 77-614, S. 139, 610; P.A. 81-39, S. 1, 2; Nov. Sp. Sess. P.A. 81-4, S. 19, 32; P.A. 82-325,
S. 3, 7; P.A. 85-357, S. 1, 2; P.A. 87-38, S. 1, 2; P.A. 88-314, S. 23, 54.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 81-39 increased fee for reissuance of permit under Subsec. (5) from five dollars to fifty dollars; Nov. Sp. Sess. P.A.
81-4 amended Subsec. (3) to raise permit fee from one dollar to twenty dollars and added provisions re annual expiration
and renewal fee; P.A. 82-325 revised effective date of Nov. Sp. Sess. act but without affecting this section; P.A. 85-357
amended Subsec. (3) to provide that any permit issued prior to or on or after July 1, 1985, shall expire biennially and to
delete provision re ten-dollar renewal fee, effective June 16, 1985, and applicable to renewals occurring on or after July
1, 1985; P.A. 87-38 amended Subsec. (6) to allow revocation or suspension of permit whenever any seller files returns for
four successive monthly or quarterly periods without sales; P.A. 88-314 amended Subsec. (7) by (1) requiring that the
violation must have occurred knowingly, (2) increasing the fine to five hundred dollars or imprisonment of not more than
three months, or both for each offense and (3) deleting the description of what constitutes a separate offense for purposes
of this subsection, effective July 1, 1988, and applicable to any tax which first becomes due and payable on or after said
date, to any return or report due on or after said date, or in the case of any ongoing obligation imposed in accordance with
said act, to the tax period next beginning on or after said date.
Cited. 134 C. 309; 145 C. 176.
Cited. 30 CS 309.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) Acceptance of certificate. The acceptance in good faith by any vendor of a
certificate from a direct payment permit holder stating that he is in possession of a valid
direct payment permit shall relieve such vendor of any obligation to collect the sales
tax from the permit holder. Such certificate shall be signed by and bear the name, address
and registration number of the permit holder.
(P.A. 91-143; P.A. 99-173, S. 63, 65.)
History: P.A. 99-173 amended Subsec. (a) to add Subdivs. (2), (3) and (4) re nature of applicant's business, applicant's
accounting system and applicant's volume of business, respectively, to allow the commissioner to adopt regulations and
to make technical changes.
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) Effect of certificate. The certificate relieves the seller from the burden of proof
only if taken in good faith from a person who is engaged in the business of selling
tangible personal property or services constituting a sale in accordance with subsection
(2) of section 12-407 and who holds the permit provided for in section 12-409 and who,
at the time of purchasing the tangible personal property or service: (A) Intends to sell
it in the regular course of business; (B) intends to utilize such personal property in the
delivery of landscaping or horticulture services, provided the total sale price of all such
landscaping and horticulture services are taxable under this chapter or (C) is unable to
ascertain at the time of purchase whether the property or service will be sold or will be
used for some other purpose. The burden of establishing that a certificate is taken in
good faith is on the seller. A certificate to the effect that property or service is purchased
for resale taken from the purchaser by the seller shall be deemed to be taken in good
faith if the tangible personal property or service purchased is similar to or of the same
general character as property or service which the seller could reasonably assume would
be sold by the purchaser in the regular course of business.
(3) Form of certificate. The certificate shall be signed by and bear the name and
address of the purchaser, shall indicate the number of the permit issued to the purchaser
and shall indicate the general character of the tangible personal property or service sold
by the purchaser in the regular course of business. The certificate shall be substantially
in such form as the commissioner prescribes.
(4) Liability of purchaser. (a) If a purchaser who gives a certificate makes any use
of the service or property other than retention, demonstration or display while holding it
for sale in the regular course of business, the use shall be deemed a retail sale by the
purchaser as of the time the service or property is first used by him, and the cost of the
service or property to him shall be deemed the gross receipts from such retail sale.
(b) Notwithstanding the provisions of subdivision (a) of this subsection, any use
by a certificated air carrier of an aircraft for purposes other than retention, demonstration
or display while holding it for sale in the regular course of business shall not be deemed
a retail sale by such carrier as of the time the aircraft is first used by such carrier, irrespective of the classification of such aircraft on the balance sheet of such carrier for accounting and tax purposes.
(5) Conditions under which a sale of service shall be considered a sale for resale.
For the purpose of the proper administration of this chapter and to prevent evasion of
the sales tax, a sale of any service described in subdivision (i) of subsection (2) of section
12-407 shall be considered a sale for resale only if the service to be resold is an integral,
inseparable component part of a service described in said subdivision (i) which is to be
subsequently sold by the purchaser to an ultimate consumer. The purchaser of the service
for resale shall maintain, in such form as the commissioner requires, records which
substantiate: (A) From whom the service was purchased and to whom the service was
sold, (B) the purchase price of the service and (C) the nature of the service to demonstrate
that the services were an integral, inseparable component part of a service described in
subdivision (i) of subsection (2) of section 12-407 which was subsequently sold to a
consumer.
(1949 Rev., S. 2094; P.A. 75-213, S. 24, 25, 53; P.A. 85-240, S. 3, 6; P.A. 88-6, S. 3; P.A. 90-148, S. 22, 34; June Sp.
Sess. P.A. 91-3, S. 112, 168; May Sp. Sess. P.A. 92-17, S. 45, 59; P.A. 93-74, S. 64, 67; P.A. 94-21, S. 1, 2; P.A. 95-359,
S. 10, 19; P.A. 97-243, S. 18, 67; P.A. 00-174, S. 5, 83.)
History: P.A. 75-213 included references to sale of "service" in Subsecs. (1) and (4) and deleted provision in Subsec.
(4) re inclusion of rent charged rather than cost of property to purchaser in gross receipts; P.A. 85-240 amended Subsec.
(4) to provide that aircraft held for sale by a certificated air carrier, if used for purposes other than retention, demonstration
or display, shall not be deemed to have been sold at retail and subject to sales tax; P.A. 88-6 amended Subdiv. (b) of Subsec.
(4) by substituting "aircraft" for "airplane" wherever the latter word appears; P.A. 90-148 added Subsec. (5) describing
conditions under which a sale of service shall be considered a sale for resale, effective July 1, 1990, and applicable to sales
of service for resale on or after that date; June Sp. Sess. P.A. 91-3 amended Subsec. (2) to provide a standard for determining
when a certificate to the effect that property is purchased for resale is taken in good faith by the seller; May Sp. Sess. P.A.
92-17 amended Subsec. (2) to include utilization of property in landscaping or horticultural services; P.A. 93-74 added
Subsec. (6) re certificate of use for sales of commercial motor vehicles and motor buses to qualify for exemption from the
sales tax, effective May 19, 1993, and applicable to sales occurring on and after January 1, 1994; P.A. 94-21 eliminated
provision requiring the purchaser of the service for resale to separately state the service being resold and the cost thereof
on the invoice and required the purchaser of the service for resale to maintain appropriate records concerning the service
and its cost, effective May 2, 1994; P.A. 95-359 deleted Subdiv. (6) re exempt purchases under Subdivs. (82) and (83) of
Sec. 12-412, effective July 13, 1995; P.A. 97-243 amended Subsecs. (1) and (2) to specify that all receipts are presumed
to be gross receipts subject to tax and that burden of establishing that a certificate is taken on good faith is on the seller
and to change the term horticultural to horticulture, effective June 24, 1997, and applicable to sales occurring on or after
October 1, 1997; P.A. 00-174 amended Subsecs. (1) to (3), inclusive, to allow use of resale certificates in the case of sales
of services, effective October 1, 2000, and applicable to sales made on or after that date.
See note to Sec. 12-407 (3).
Plaintiff procured property for government and any ownership by plaintiff could have endured only for theoretical
instant, held not taxable under this section. 145 C. 176. Cited. 174 C. 51, 61. Cited. 198 C. 413, 418. Cited. 211 C. 246,
256. Cited. 216 C. 17, 26, 28. Cited. 238 C. 571.
Cited. 18 CA 434, 438.
Day book records adequate proof of nature of sale, when. 30 CS 309. Cited. 43 CA 598.
Subsec. (1):
Cited. 183 C. 566, 577. Cited. 198 C. 413, 416, 420. Cited. 216 C. 17, 23, 24, 26, 28. Cited. 231 C. 315, 319.
Cited. 18 CA 434, 436.
Cited. 43 CS 253, 259, 260.
Subsec. (2):
Cited. 198 C. 413, 416, 420.
Cited. 43 CA 598.
Subsec. (4):
Cited. 198 C. 413, 416, 420, 423.
Cited. 43 CA 598. Subdiv. (a) cited. Id.
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) Liability for tax. Every person storing, accepting, consuming or otherwise using in this state services or tangible personal property purchased from a retailer for
storage, acceptance, consumption or any other use in this state and every person storing,
accepting, consuming or otherwise using in this state tangible personal property which
has been manufactured, fabricated, assembled or processed from materials purchased
from a retailer by such person, either within or without this state, for storage, acceptance,
consumption or any other use by such person in this state is liable for the tax. His liability
is not extinguished until the tax has been paid to this state, except that a receipt from a
retailer engaged in business in this state or from a retailer who is authorized by the
commissioner, under such regulations as he may prescribe, to collect the tax and who
is, for the purposes of this chapter relating to the use tax, regarded as a retailer engaged
in business in this state, given to the purchaser pursuant to subsection (3) of this section
is sufficient to relieve the purchaser from further liability for the tax to which the receipt
refers.
(3) Collection by retailer. Every retailer engaged in business in this state and making sales of services or of tangible personal property for storage, acceptance, consumption or any other use in this state, not exempted under this chapter, shall, at the time of
making a sale or, if the storage, acceptance, consumption or other use is not then taxable
hereunder, at the time the storage, acceptance, consumption or use becomes taxable,
collect the use tax from the purchaser and give to the purchaser a receipt therefor in the
manner and form prescribed by the commissioner. For the purpose of uniformity of tax
collection by the retailer the tax brackets set forth in subsection (3) of section 12-408
pertaining to the sales tax shall be employed in the computation of the tax imposed by
this section.
(4) Tax as debt. Amount collected deemed a special fund in trust for state. The
tax required to be collected by the retailer constitutes a debt owed to the retailer by the
person purchasing tangible personal property or services from such retailer. The amount
of tax, when so collected, shall be deemed to be a special fund in trust for the state of
Connecticut.
(5) Unlawful advertising. The provisions of subsection (4) of section 12-408 pertaining to the sales tax shall apply with equal force to the use tax.
(6) Separate statement of tax. The tax required to be collected by the retailer from
the purchaser shall be displayed separately from the list price, the price advertised in
the premises, the marked price, or other price on the sales check or other proof of sales.
(7) Unlawful acts. Any person violating the provisions of subsection (3), (5) or (6)
shall be fined five hundred dollars for each offense.
(8) Registration by retailers. Every retailer selling services or tangible personal
property for storage, acceptance, consumption or any other use in this state shall register
with the commissioner and give the name and address of all agents operating in this
state, the location of all distribution or sales houses or offices or other places of business
in this state and such other information as the commissioner may require.
(9) Presumption of purchase for use; resale certificate. For the purpose of the
proper administration of this chapter and to prevent evasion of the use tax and the duty
to collect the use tax, it shall be presumed that services or tangible personal property
sold by any person for delivery in this state is sold for storage, acceptance, consumption
or other use in this state until the contrary is established. The burden of proving the
contrary is upon the person who makes the sale unless such person takes from the purchaser a certificate to the effect that the services or property is purchased for resale.
(10) Effect of certificate. The certificate relieves the person selling the services or
property from the burden of proof only if taken in good faith from a person who is
engaged in the business of selling services or tangible personal property and who holds
the permit provided for by section 12-409 and who, at the time of purchasing the services
or tangible personal property, intends to sell it in the regular course of business or is
unable to ascertain at the time of purchase whether the service or property will be sold
or will be used for some other purpose.
(11) Form of certificate. The certificate shall be signed by and bear the name and
address of the purchaser, shall indicate the number of the permit issued to the purchaser
and shall indicate the general character of the service or tangible personal property sold
by the purchaser in the regular course of business. The certificate shall be substantially
in such form as the commissioner may prescribe.
(12) Liability of purchaser. (a) If a purchaser who gives a certificate makes any
storage or use of the service or property other than retention, demonstration or display
while holding it for sale in the regular course of business, the storage or use is taxable
as of the time the service or property is first so stored or used.
(b) Notwithstanding the provisions of subdivision (a) of this subsection, any storage
or use by a certificated air carrier of an aircraft for purposes other than retention, demonstration or display while holding it for sale in the regular course of business shall not
be deemed a taxable storage or use by such carrier as of the time the aircraft is first
stored or used by such carrier, irrespective of the classification of such aircraft on the
balance sheet of such carrier for accounting and tax purposes.
(13) Presumption of purchase from retailer. It shall be presumed that tangible
personal property shipped or brought to this state by the purchaser was purchased from
a retailer for storage, use or other consumption in this state.
(14) Conditions under which a purchase of service shall be considered a sale
for resale. For the purpose of the proper administration of this chapter and to prevent
evasion of the use tax, a purchase of any service described in subdivision (i) of subsection
(2) of section 12-407 shall be considered a sale for resale only if the service to be resold
is an integral, inseparable component part of a service described in said subdivision (i)
which is to be subsequently sold by the purchaser to an ultimate consumer. The purchaser
of the service for resale shall maintain, in such form as the commissioner requires,
records which substantiate: (A) From whom the service was purchased and to whom
the service was sold; (B) the purchase price of the service; and (C) the nature of the
service to demonstrate that the service was an integral, inseparable component part of
a service described in subdivision (i) of subsection (2) of section 12-407 which was
subsequently sold to a consumer.
(1949 Rev., S. 2095; 1951, 1953, June, 1955, S. 1165d; November, 1955, S. N146; 1957, P.A. 553, S. 3; 1961, P.A.
574, S. 3, 4; June, 1969, P.A. 1, S. 20; June, 1971, P.A. 5, S. 107; 8, S. 5; 1972, P.A. 285, S. 3; P.A. 73-288, S. 3, 8; P.A.
74-73, S. 3, 5; 74-338, S. 74, 94; P.A. 75-2, S. 3, 5; 75-213, S. 26−32, 53; P.A. 76-114, S. 20, 21; 76-322, S. 21, 27; P.A.
77-370, S. 11, 13; 77-604, S. 77, 84; P.A. 78-71, S. 2, 5; P.A. 80-71, S. 19, 30; June Sp. Sess. P.A. 83-1, S. 9, 15; P.A. 85-
240, S. 4, 6; P.A. 88-6, S. 4; 88-314, S. 24, 54; P.A. 89-123, S. 4; 89-251, S. 199, 203; P.A. 90-148, S. 23, 34; June Sp.
Sess. P.A. 91-3, S. 113, 168; June Sp. Sess. P.A. 91-14, S. 24, 30; May Sp. Sess. P.A. 92-5, S. 27, 37; May Sp. Sess. P.A.
92-17, S. 27, 59; P.A. 93-332, S. 2, 5, 40, 42; P.A. 93-361, S. 12, 17; P.A. 95-359, S. 1, 19; P.A. 96-232, S. 2, 3; P.A. 97-
243, S. 19, 20, 67; P.A. 98-110, S. 7, 27; 98-244, S. 18, 35; P.A. 99-173, S. 15, 65; P.A. 00-174, S. 6, 7, 83.)
History: 1961 act increased tax rate from three to three and one-half per cent; 1969 act temporarily increased tax rate
to five per cent for period from July 1, 1969, to June 30, 1971; 1971 acts made five per cent rate permanent and later
increased rate to six and one-half per cent as of September 1, 1971; 1972 act increased rate to seven per cent; P.A. 73-288
reduced rate to six and one-half per cent; P.A. 74-73 reduced rate to six per cent, effective May 31, 1974, and applicable
to taxes imposed on and after May 1, 1974; P.A. 74-338 made technical changes; P.A. 75-2 increased rate to seven per
cent; P.A. 75-213 included references to "acceptance" and "services" in Subsecs. (1) to (3) and (8) to (12); P.A. 76-114
set tax rate at three and one-half per cent for machinery and services rendered pursuant to Sec. 12-407(2)(j)(A)−(M); P.A.
76-322 clarified Subsec. (1) by specifying seven per cent "of the sales price of the property"; P.A. 77-370 reduced tax rate
on machinery to two and one-half per cent; P.A. 77-604 made technical change to section reference in Subsec. (1); P.A.
78-71 deleted provision re two and one-half per cent tax rate on machinery; P.A. 80-71 increased tax rate to seven and
one-half per cent; June Sp. Sess. P.A. 83-1 amended Subsec. (1) by providing that the acceptance or receipt of any services
constituting a sale in accordance with Subdiv. (i) of Subsec. (2) of Sec. 12-407 shall be subject to tax at the rate of seven
and one-half per cent in lieu of three and one-half per cent as previously provided; P.A. 85-240 amended Subsec. (12) to
provide that aircraft held for sale by a certificated air carrier, if stored or used for purposes other than retention, demonstration
or display, shall not be deemed to have been stored or used in a manner subject to sales tax; P.A. 88-6 amended Subdiv.
(b) of Subsec. (12) by substituting "aircraft" for "airplane" wherever the latter word appears; P.A. 88-314 amended Subsec.
(7) by increasing the fine to five hundred dollars from not more than one hundred dollars, effective July 1, 1988, and
applicable to any tax which first becomes due and payable on or after said date, to any return or report due on or after said
date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period next beginning on or
after said date; P.A. 89-123 added provisions to Subsec. (1) to establish uniformity with sales tax provisions in Subsec.
(1) of Sec. 12-408; P.A. 89-251 increased the rate of tax in Subsec. (1) from seven and one-half per cent to eight per cent
of the sales price of the property, with corresponding changes in the lower rates applicable to certain items of personal
property; P.A. 90-148 added Subsec. (14) describing conditions under which a purchase of service shall be considered a
sale for resale, effective July 1, 1990, and applicable to any purchase of service for resale on or after that date; June Sp.
Sess. P.A. 91-3 amended Subsec. (1) to reduce the general rate to six per cent, to increase the rate with respect to the
transfer of occupancy to twelve per cent and to set the rate with respect to the storage, acceptance, consumption or use of
vessels by nonresidents at the lesser of six per cent or the rate in the home state of the nonresident, effective August 22,
1991, and applicable to sales occurring on or after October 1, 1991; June Sp. Sess. P.A. 91-14 amended Subsec. (1) to
make the provisions relating to vessels effective September 19, 1991; May Sp. Sess. P.A. 92-5 amended Subsec. (1) to
make various technical and minor changes, effective June 19, 1992, and applicable to sales occurring on or after July 1,
1992; May Sp. Sess. P.A. 92-17 amended Subsec. (1) to remove the special rate on aviation fuel, provided for an affidavit,
rather than registration in the home state, as proof of out-of-state residence and made technical changes and amended
Subsecs. (1) and (2) to clarify the standards for taxation of imported property, effective June 19, 1992, and applicable to
sales occurring on or after July 1, 1992; P.A. 93-332 amended Subsec. (1) to provide that the sale of manufactured,
fabricated, assembled or processed from materials be measured by the sales price of materials, effective June 25, 1993,
and applicable to sales on or after July 1, 1993, and to exclude from tax mail order purchases of two hundred dollars or
less, effective July 1, 1993, and applicable to sales occurring on or after July 1, 1993, and amended Subsec. (4) to provide
that the tax collected constitutes a debt owed to the retailer by the purchaser and shall be deemed to be held in trust for the
state, where previously tax was considered a debt owed by the retailer, effective June 25, 1993; P.A. 93-361 amended
Subsec. (1) to delete exclusion from tax with regard to mail order purchase of two hundred dollars or less which had been
added by P.A. 93-332, effective July 1, 1993, and applicable to sales occurring on or after July 1, 1993; P.A. 95-359
amended Subdiv. (14) to add provisions re maintenance of records by purchaser of services for resale and added Subparas.
(A) to (C) listing requirements, effective July 13, 1995; P.A. 96-232 amended Subdiv. (1) to provide lower rates for tax
on sale of repair or maintenance services on vessels, effective June 6, 1996, and applicable to sales occurring on and after
July 1, 1997; P.A. 97-243 amended Subsec. (1) to add phase out of tax on computer and data processing, to add requirement
that retailer maintain affidavit or other evidence with respect to sales of motor vehicles to members of the armed forces
concerning the buyer's state of residence, to provide that the tax rate on vessels sold to nonresidents is the lesser of six per
cent or the tax rate in the state in which the individual resides, and to make technical changes and amended Subsec. (7) to
clarify that the fine is for each offense, effective June 24, 1997, and applicable to sales occurring on or after October 1,
1997; P.A. 98-110 amended Subsec. (1) to repeal Subdiv. (A) re repair or replacement parts and reletter remaining Subdivs.,
effective May 19, 1998, and applicable to sales occurring on or after January 1, 1999; P.A. 98-244 amended Subsec. (1)(c)
to allow reduction in tax rate and exemption for military when the name of the spouse is on the title of the motor vehicle,
effective June 8, 1998, and applicable to sales occurring on or after October 1, 1998; P.A. 99-173 amended Subsec. (1) to
make a technical change, to reduce the tax rate to four per cent effective July 1, 1999, to two per cent on July 1, 2000, and
eliminate the tax on July 1, 2001, for paving, painting, staining, wallpapering, roofing, siding, and exterior sheet metal
work services on residential properties, and to reduce the tax rate on hospital services from six to five and three-fourths
per cent effective June 23, 1999, and applicable to sales occurring on or after July 1, 1999; P.A. 00-174 amended Subsec.
(1) to eliminate an affidavit requirement for motor vehicle sales to armed forces personnel, to add provisions re declaration,
to delete former Subdiv. (C) re tax on certain vessels and make conforming technical changes, to provide an exemption
for certain labor to existing vessels in redesignated Subdiv. (C) and to delete requirement re furnishing of other states' tax
information by the commissioner, and amended Subsec. (9) to allow use of resale certificates in the case of sales of services
and to make a technical change for purposes of gender neutrality, effective October 1, 2000, and applicable to sales made
on or after that date.
The use tax is not a tax on property but is in the nature of an excise tax upon the privilege of using, storing or consuming
property. 134 C. 295. The use tax is meant to complement the sales tax. 168 C. 597. Cited. 198 C. 168, 175. Cited. Id.,
413, 418. Cited. 206 C. 253, 254, 256, 257. Cited. 210 C. 401, 405. Cited. 213 C. 365, 367. Cited. 214 C. 292, 293, 302.
Cited. 235 C. 393, 394. Cited. Id., 737, 738. Cited. 236 C. 613, 614, 617, 624. Cited. Id., 701, 702. Cited. 238 C. 761.
Cited. 240 C. 531.
Cited. 2 CA 165, 166; reversed and case remanded with direction that judgment of trial court be set aside with judgment
directed in favor of defendant, see 198 C. 413 et seq. Cited. 24 CA 72, 75. Cited. 42 CA 310. Cited. 43 CA 744.
Cited. 19 CS 334. Cited. 44 CS 1, 2.
Subsec. (1):
Intended to complement sales tax by creating equality of taxation of purchasers. 145 C. 161. Three conditions of
subsection must exist to create taxability. 152 C. 649. Tax imposed on rental payments from July 1, 1975, does not result
in double taxation since use tax paid on property brought into the state before that date was imposed on lessors and levied
on use, while tax after that date is imposed on lessees and levied on rent. 174 C. 51, 63. Cited. 198 C. 413, 419. Cited. 211
C. 246, 255. Cited. 221 C. 166, 169, 170, 172. "Conversion of raw materials into identifiably different building components
precludes levy of the use tax on these raw materials". 222 C. 49, 50, 52−56, 59, 61, 62. Cited. 235 C. 737, 738. Cited. 238
C. 761. Cited. 240 C. 531.
Cited. 6 CA 661, 663. Cited. 42 CA 310. Cited. 43 CA 744.
Cited. 39 CS 234, 236. Cited. 44 CS 1, 3, 4. Cited. Id., 133, 135, 140, 142.
Subsec. (2):
"Storage" and "consumption" must be incident to ownership for tax to apply. 145 C. 161. Cited. 198 C. 168, 183. Cited.
Id., 413, 419. Cited. 240 C. 531.
Cited. 42 CA 310. Cited. 43 CA 744.
Cited. 39 CS 234, 237. Cited. 44 CS 1, 2. Cited. Id., 133, 142.
Subsec. (3):
Cited. 5 Conn. Cir. Ct. 403.
Subsec. (6):
Failure of contract to mention tax is not such a failure to describe condition of sale as to make reservation of title in
seller invalid as against attaching creditor of buyer. Unilateral contract does not require signature or acknowledgment of
seller. 144 C. 311.
Subsec. (8):
Cited. 217 C. 220, 222.
Subsec. (9):
Cited. 198 C. 413, 416, 419, 420.
Cited. 39 CS 234, 237.
Subsec. (10):
Cited. 198 C. 413, 416, 420.
Cited. 39 CS 234, 237.
Subsec. (12):
Cited. 198 C. 413, 416, 420, 423.
Cited. 39 CS 234, 237, 238.
Subsec. (13):
Cited. 222 C. 49, 55.
Subsec. (14):
Cited. 238 C. 761.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 88-188, S. 1, 2; P.A. 89-41, S. 5, 6.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(1) The United States, the state or subdivisions. (A) Sales of tangible personal
property or services to the United States, the state of Connecticut or any of the political
subdivisions thereof, or its or their respective agencies; (B) sales of tangible personal
property or services used to develop property which the state of Connecticut is under
contract to purchase through a long-term financing contract; (C) sales and use of any
services or tangible personal property to be incorporated into or used or otherwise consumed in (i) the demolition, remediation or preparation of the Adriaen's Landing site
and the stadium facility site for purposes of the overall project, each as defined in section
32-651, (ii) the construction of the convention center, the stadium facility and the related
parking facilities and site preparation and infrastructure improvements, each as defined
in section 32-651, or (iii) the construction of any future capital improvement to the
convention center, the stadium facility or the related parking facilities.
(2) Federal exemptions. Sales of tangible personal property or services which this
state is prohibited from taxing under the constitution or laws of the United States.
(3) Certain utilities. (A) Gas and electricity for residential use and certain
manufacturing or agricultural production. The sale, furnishing or service of gas,
including bottled gas, and electricity when delivered to consumers through mains, lines,
pipes or bottles for use (i) in any residential dwelling or (ii) directly in agricultural
production, fabrication of a finished product to be sold or an industrial manufacturing
plant, provided the exemption under this subdivision (ii) shall only be allowed with
respect to a metered building, location or premise at which not less than seventy-five per
cent of the gas, including bottled gas, or electricity consumed at such metered building,
location or premise is used for the purpose of such production, fabrication or manufacturing. Bottled gas as used in this subsection means L.P. (propane) gas.
(B) Telephone and cable television service prior to January 1, 1990. The sale
or furnishing of telephone service and community antenna television and cable service,
provided the exemption for services described in this subparagraph shall not be applicable to any such service rendered on or after January 1, 1990.
(C) Water, steam and telegraph. The sale, furnishing or service of water, steam
and telegraph when delivered to consumers through mains, lines, pipes or bottles.
(D) Monthly charges of one hundred fifty dollars or less for electricity not
otherwise exempt. The sale or furnishing of electricity, not subject to the exemption
under subparagraph (A) of this subsection, with respect to that portion of the charges
applicable to such electricity for any month of service which is not in excess of one
hundred fifty dollars.
(E) Gas, water, steam or electricity used in furnishing same to consumers. The
sale, furnishing or service of gas, water, steam or electricity for use directly in the furnishing of gas, water, steam or electricity delivered to consumers through mains, lines or
pipes.
(4) Prescription medicine, syringes and needles. Sales of and the storage, use or
other consumption of medicine only by prescription as defined by federal or state law,
including such medicine provided for no consideration and the sales of syringes and
needles only by prescription. Sales of and the storage, use or other consumption of
materials, including materials used in packaging, which become an ingredient or component part of medicine only by prescription, as defined by federal or state law.
(5) Nonprofit charitable hospitals, nursing homes, rest homes and residential
care homes. Sales of tangible personal property or services to and by nonprofit charitable
hospitals in this state, nonprofit nursing homes, nonprofit rest homes and nonprofit
residential care homes licensed by the state pursuant to chapter 368v for the exclusive
purposes of such institutions except any such service transaction as described in subparagraph (FF) of subdivision (i) of subsection (2) of section 12-407.
(6) Newspapers and magazines. (A) Sales of magazines, including publications
which only contain puzzles, by subscription; (B) sales of newspapers.
(7) Cigarettes. Former subsection (g) repealed by P.A. 80-71, S. 21, 30.
(8) Organizations exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, as determined by the U.S. Treasury Department.
Exemption qualification requirements. Sales of tangible personal property or services
to any organization that is exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, and that the United States Treasury
Department has expressly determined, by letter, to be an organization that is described
in Section 501(c)(3) or (13) of said internal revenue code. At the time of the sale that
is exempt under this subsection, the organization shall, in order to qualify for said exemption, do one of the following: (A) Present to the retailer (i) a copy of the United States
Treasury Department determination letter that was issued to such organization and (ii)
a certificate, in such form as the commissioner may prescribe, certifying that a United
States Treasury Department determination letter has been issued to such organization
and has not been revoked and that the tangible personal property or services that are
being purchased from the retailer by such organization are to be used or consumed
exclusively for the purposes for which such organization was established or (B) present
to the retailer (i) a copy of the exemption permit that was issued pursuant to this subsection by the commissioner to such organization before July 1, 1995, after a determination
of eligibility by the commissioner and (ii) a certificate, in such form as the commissioner
may prescribe, certifying that an exemption permit was issued pursuant to this subsection
by the commissioner to such organization before July 1, 1995, and was not revoked and
that the tangible personal property or services that are being purchased from the retailer
by such organization are to be used or consumed exclusively for the purposes for which
the organization was established. The organization shall be liable for the tax otherwise
imposed if such tangible personal property or services are not used or consumed exclusively for the purposes for which the organization was established.
(9) Food products sold in educational institutions and certain health and care
facilities. Sales of food products, meals, candy, confectionery and beverages, except
alcoholic beverages, in a student cafeteria, dining-hall, dormitory, fraternity or sorority
maintained in a private, public or parochial school, college or university, to members
of such institutions or organizations, including all sales of such items to such members
at such institutions or organizations using prepaid meal plan cards or arrangements; and
sales of food products, meals, candy, confectionery and beverages to patients, residents
or care recipients in hospitals, residential care homes, assisted living facilities, senior
centers, day care centers, convalescent homes, nursing homes and rest homes.
(10) Exemption of children's clothing. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(11) Personal services. Professional, insurance or personal service transactions,
except any such service transaction described in subsection (2) of section 12-407, which
involve sales as inconsequential elements for which no separate charges are made.
(12) Livestock, rabbits and poultry; feed; seeds and certain tree seedlings; fertilizer; plants; horses, except those racing at commercial race tracks. Repealed by
June Sp. Sess. P.A. 91-3, S. 166, 168.
(13) Food products. Sales of food products for human consumption. "Food products" include cereals and cereal products, milk and milk products, oleomargarine, meat
and meat products, fish and fish products, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices and salt, sugar and sugar products other
than candy and confectionery; coffee and coffee substitutes, tea, cocoa and cocoa products other than candy and confectionery. "Food products" do not include spirituous,
malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed
at bars and soda fountains, or in connection therewith, medicines except by prescription,
tonics and preparations in liquid, powdered, granular, tablet, capsule, lozenge and pill
form sold as dietary supplements or adjuncts. "Food products" also do not include meals
sold by an eating establishment or caterer. "Meal" means food products which are furnished, prepared or served in such a form and in such portions that they are ready for
immediate consumption. A meal as defined in this subsection includes food products
which are sold on a "take out" or "to go" basis and which are actually packaged or
wrapped. The sale of a meal, as defined in this subsection, is a taxable sale. "Eating
establishment" means a place where meals are sold and includes a restaurant, cafeteria,
grinder shop, pizzeria, drive-in, fast food outlet, ice cream truck, hot dog cart, refreshment stand, sandwich shop, private or social club, cocktail lounge, tavern, diner, snack
bar, or hotel or boarding house which furnishes both lodging and meals to its guests.
(14) Containers. (A) Nonreturnable containers and returnable dairy product containers when sold without the contents to persons who place the contents in the container
and sell the contents together with the container; (B) containers when sold with the
contents if the sales price of the contents is not required to be included in the measure
of the taxes imposed by this chapter; (C) returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling. As used
herein, "returnable containers" means containers of a kind customarily returned by the
buyer of the contents for reuse, but does not mean nonrefillable beverage containers, as
defined in subsection (10) of section 22a-243. All other containers are "nonreturnable
containers". Nothing in this subsection shall be construed so as to tax the gross receipts
from the sale of or the storage, use or other consumption in this state of bags in which
feed for livestock and poultry, as defined in subsection (12) of this section, is customarily
contained.
(15) Motor vehicle fuel. Sales of and the storage, use or other consumption in this
state of motor vehicle fuel (A) for use in any motor vehicle licensed or required to be
licensed to operate upon the public highways of this state, whether or not the tax imposed
under chapter 221 has been paid on such fuel, or (B) for any other use, if the tax imposed
under chapter 221 has been paid on such fuel and has not been refunded under the
provisions of chapter 221.
(16) Fuel for heating purposes. Sales of fuel used for heating purposes (i) in any
residential dwelling or (ii) in any building, location or premise utilized directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this subdivision (ii) shall only be allowed
with respect to a building, location or premise in which not less than seventy-five per
cent of the fuel used in such building, location or premise is used for the purpose of
such production, fabrication or manufacturing.
(17) Sale of meals. Former subsection (q) repealed by P.A. 83-18, S. 4, 5.
(18) Production materials. Sales of and the storage or use of materials, rope, fishing nets, tools and fuel or any substitute therefor, which become an ingredient or component part of tangible personal property to be sold or which are used directly in the fishing
industry or in an industrial plant in the actual fabrication of the finished product to be
sold. Sales of and the storage or use of materials, tools and fuel or any substitute therefor,
when such products are used directly in the furnishing of power to an industrial manufacturing plant or in the furnishing of gas, water, steam or electricity when delivered to
consumers through mains, lines or pipes.
*(19) Oxygen, blood plasma, prostheses, custom-made wigs or hairpieces,
hearing aids, crutches, walkers and wheel chairs, vital life support equipment,
apnea monitors and related repair or replacement parts and repair services. Sales
of and the storage, use or other consumption of (A) oxygen, blood or blood plasma when
sold for medical use in humans or animals; (B) artificial devices individually designed,
constructed or altered solely for the use of a particular handicapped person so as to
become a brace, support, supplement, correction or substitute for the bodily structure,
including the extremities of the individual, and repair or replacement parts and repair
services rendered to property described in this subparagraph; (C) artificial limbs, artificial eyes and other equipment worn as a correction or substitute for any functioning
portion of the body, custom-made wigs or hairpieces for persons with medically diagnosed total and permanent hair loss as a result of disease or the treatment of disease,
and artificial hearing aids when designed to be worn on the person of the owner or user,
and repair or replacement parts and repair services rendered to property described in
this subparagraph; (D) crutches, walkers, wheel chairs and inclined stairway chairlifts
for the use of invalids and handicapped persons, and repair or replacement parts and
repair services to property described in this subparagraph; and (E) any equipment used
in support of or to supply vital life functions, including oxygen supply equipment used
for humans or animals, kidney dialysis machines and any other such device used in
necessary support of vital life functions, and apnea monitors, and repair or replacement
parts and repair services rendered to property described in this subparagraph. Repair or
replacement parts are exempt whether purchased separately or in conjunction with the
item for which they are intended, and whether such parts continue the original function
or enhance the functionality of such item. As used in this subdivision, "repair services"
means services that are described in subparagraph (Q) or (EE) of subdivision (2)(i) of
section 12-407.
(20) Flyable aircraft. Sales of and the storage, use or other consumption, by a
manufacturer of aircraft located in this state, of flyable aircraft complete with necessary
equipment and modifications, but not separate engines and parts thereof, sold to persons
taking delivery and using such aircraft as certificated or licensed carriers of persons or
property in interstate or foreign commerce under authority of the laws of the United
States or any foreign government, or sold to any foreign government for use by such
government outside of this state, or sold to persons who are not residents of this state
and who will not use such aircraft in this state otherwise than in the removal of such
aircraft from this state.
(21) Personal property for incorporation into or used in waste treatment facilities. Sales of and the storage, use or other consumption of tangible personal property
acquired for incorporation into or used and consumed in the operation of facilities for
the treatment of industrial waste before the discharge thereof into any waters of the state
or into any sewerage system emptying into such waters, the primary purpose of which
is the reduction, control or elimination of pollution of such waters, certified as approved
for such purpose by the Commissioner of Environmental Protection. For the purposes
of this subdivision "industrial waste" means any harmful thermal effect or any liquid,
gaseous or solid substance or combination thereof resulting from any process of industry,
manufacture, trade or business or from the development or recovery of any natural
resource.
(22) Personal property incorporated into or consumed in air pollution control
facilities. Sales of and the storage, use or other consumption of tangible personal property or supplies acquired for incorporation into or used and consumed in the operation
of facilities, the primary purpose of which is the reduction, control or elimination of air
pollution, certified as approved for such purpose by the Commissioner of Environmental
Protection. Said commissioner may certify to a portion of such tangible personal property or supplies acquired for incorporation into such facilities to the extent that such
portion shall have as its primary purpose the reduction, control or elimination of air
pollution.
(23) United States and Connecticut state flags. Sales of United States and Connecticut state flags.
(24) Municipal publications, sales by public libraries or by municipal auction
and book sales by library support groups. Sales of municipal publications such as
information booklets and zoning regulations, tangible personal property sold by public
libraries, the sale of any property at auction by a municipality, and book sales by library
support groups.
(25) Unregistered motor vehicles in interstate commerce. Repealed by P.A. 95-
359, S. 18, effective July 13, 1995.
(26) Items not costing more than twenty dollars each by certain nonprofit organizations and schools. Sales of items for not more than twenty dollars each by any
Connecticut eleemosynary organization, for purposes of youth activities which such
organization is formed to sponsor and support, and by any accredited elementary or
secondary school for purposes of such school or of organized activities of the students
enrolled therein.
(27) Vending machine sales of fifty cents or less. Vending machine sales of food
products. (A) Sales of any items for fifty cents or less from vending machines; or (B)
sales of food products, as defined in subsection (23) of this section, sold through coin-
operated vending machines.
(28) Ambulance-type motor vehicles. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(29) Personal property and services used or consumed in development, construction, rehabilitation, renovation, repair or operation of housing facilities for
low and moderate income families and persons. (A) Sales of and the storage, use or
other consumption of tangible personal property acquired for incorporation into or used
and consumed in the operation of housing facilities for low and moderate income families and persons and sales of and the acceptance, use or other consumption of any service
described in subdivision (2) of section 12-407 that is used and consumed in the development, construction, rehabilitation, renovation, repair or operation of housing facilities
for low and moderate income families and persons, provided such facilities are constructed under the sponsorship of and owned or operated by nonprofit housing organizations or housing authorities, as defined in subsection (b) of section 8-39. The nonprofit
housing organization or housing authority sponsoring the construction of or owning or
operating such housing facility shall obtain from the commissioner a letter of determination that the housing facility has, to the satisfaction of said commissioner, met all the
requirements for exemption under this subsection. At the time of any sale or purchase
that is exempt under this subsection, the purchaser shall present to the retailer a copy
of the determination letter that was issued to the nonprofit housing organization or
housing authority together with a certificate from the purchaser, in such form as the
commissioner may prescribe, certifying that the tangible personal property or services
that are being purchased from the retailer are to be used or consumed exclusively for
the purposes of incorporation into or in the development, construction, rehabilitation,
renovation, repair or operation of the housing facility identified in the letter of determination. For the purposes of this subsection, (i) "nonprofit housing organization" means
any organization which has as one of its purposes the development, construction, sponsorship or ownership of housing for low and moderate income families as stated in its
charter, if it is incorporated, or its constitution or bylaws, if it is unincorporated, and
which has received exemption from federal income tax under the provisions of Section
501(c) of the Internal Revenue Code, as amended from time to time, provided the charter
of such organization, if it is incorporated, or its constitution or bylaws, if unincorporated,
shall contain a provision that no officer, member or employee thereof shall receive or
at any future time may receive any pecuniary profit from the operation thereof, except
a reasonable compensation for services in effecting the purposes of the organization;
(ii) "housing facilities" means facilities having as their primary purpose the provision
of safe and adequate housing and related facilities for low and moderate income families
and persons, notwithstanding that said housing provides other dwelling accommodations in addition to the primary purpose of providing dwelling accommodations for low
and moderate income families; (iii) "related facilities" means those facilities defined in
subsection (d) of section 8-243; and (iv) "low and moderate income families" means
those families as defined in subsection (h) of said section 8-243.
(B) Sales of and the acceptance, use or other consumption of any service described
in subdivision (2) of section 12-407 that is used or consumed in the development, construction, renovation or operation of housing facilities for low and moderate income
families and persons, provided such facilities are owned or sponsored by a mutual housing association, as defined in subsection (b) of section 8-214f, and operated as mutual
housing by such association at a location that was conveyed to such association by the
United States Secretary of Housing and Urban Development prior to September 1, 1995.
(30) Commodities in the form traded on boards of trade and not converted to
use by purchaser. Sales and storage of any commodity in the form traded on any contract
market or other board of trade as defined in the Commodity Exchange Act, as amended,
provided this exemption shall not apply to any commodity subsequently converted to
use by a purchaser and in such event such purchaser shall be liable for the tax under
section 12-411 unless otherwise exempt under any of the provisions of this section.
(31) Printed material manufactured for purchaser in Connecticut to be delivered for use outside the state. Sales of any printed material which has been manufactured in Connecticut to the special order of a purchaser and which, within thirty days
following delivery to such purchaser, is to be delivered for use outside Connecticut,
provided such purchaser presents written certification to the seller when such material
is received by such purchaser that such material shall be delivered for use outside Connecticut within thirty days.
(32) Vessels sold in Connecticut by shipbuilder or marine dealer to be transported immediately for use out of state. Repealed by June Sp. Sess. P.A. 91-3, S. 166,
168 and June Sp. Sess. P.A. 91-14, S. 27, 30.
(33) Solar energy systems. Former subsection (gg) repealed by P.A. 84-507, S. 3, 4.
(34) Machinery used in manufacturing. Sales of and the storage, use or other
consumption of machinery used directly in a manufacturing production process. The
word "machinery" as used in this subsection means the basic machine itself, and includes
all of its component parts and contrivances, such as belts, pulleys, shafts, moving parts,
operating structures and equipment or devices, which component parts and contrivances
are used or required to control, regulate or operate the machinery or to enhance or alter
its productivity or functionality, whether such component parts and contrivances are
purchased separately or in conjunction with such machine and all replacement and repair
parts for the basic machine or for its component parts and contrivances, whether such
replacement or repair parts are purchased separately or in conjunction with such machine. For the purposes of this subsection, "machinery" includes machinery used exclusively to control or monitor an activity occurring during the manufacturing production
process and machinery used exclusively during the manufacturing production process
to test or measure materials and products being manufactured but shall not include office
equipment or data processing equipment other than numerically controlled machinery
used directly in the manufacturing process.
(35) Centers of service for elderly persons. Sales of tangible personal property
or services to any center of service for elderly persons as described in subdivision (d)
of section 17b-425.
(36) Motor vehicle driving service performed out of state. The sale of any motor
vehicle driving service to the extent of that proportionate part of gross receipts from
such service rendered which is directly related to actual driving performance outside
the state.
(37) Fuel for use in certain high-occupancy commuter vehicles. Sales of and the
storage, use or other consumption of any fuel with respect to which the tax imposed
under chapter 221 has been refunded under subdivision (11) of subsection (a) of section
12-459.
(38) Telephone equipment designed exclusively for deaf or blind persons. Sales
of and the storage, use or other consumption of any equipment designed exclusively for
use by persons who are deaf or blind for purposes of communication by telephone.
(39) Renewable energy systems or systems using cogeneration technology. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(40) Commercial fishing vessels and machinery or equipment for use thereon.
(A) Sales of and the storage, use or other consumption of any vessel, as defined in
section 15-127, used exclusively in commercial fishing and any machinery or equipment
for use on a commercial fishing vessel, provided in the purchaser's taxable year ending
immediately preceding the taxable year during which any such sale, storage, use or other
consumption occurred, not less than fifty per cent of the gross income of the purchaser,
as reported for federal income tax purposes, shall have been derived from commercial
fishing, subject to proof satisfactory to the Commissioner of Revenue Services.
(B) (i) Sales of and the storage, use or other consumption of any vessel used exclusively in commercial fishing and any machinery or equipment for use on a commercial
fishing vessel, where in the purchaser's taxable year ending immediately preceding the
taxable year during which any such sale, storage, use or other consumption occurred,
less than fifty per cent of gross income of the purchaser, as reported for federal income
tax purposes, shall have been derived from commercial fishing, provided such purchaser
has satisfied the commissioner that the purchaser intends to carry on commercial fishing
as a trade or business for at least two years after the date of such purchase.
(ii) Such purchaser shall be liable for the tax otherwise imposed, during the period
commencing upon the purchase of such vessel, machinery or equipment and ending two
years after the date of such purchase, if commercial fishing is not carried on as a trade
or business by such applicant during such entire period.
(iii) Such purchaser shall also be liable for the tax otherwise imposed, during the
period commencing upon the purchase of such vessel, machinery or equipment and
ending two years after the date of such purchase, if less than fifty per cent of the gross
income of such purchaser, as reported for federal income tax purposes, shall have been
derived from commercial fishing for the taxable year immediately preceding the taxable
year during which such two-year period ends or if, on average, less than fifty per cent
of the gross income of such purchaser, as reported for federal income tax purposes,
shall have been derived from commercial fishing for the two taxable years immediately
preceding the taxable year during which such two-year period ends.
(iv) Any purchaser liable for tax under subparagraph (ii) or (iii) of this subsection
shall not be eligible to make another purchase under subparagraph (i) of this subparagraph.
(C) For purposes of this subsection, commercial fishing vessels shall include any
vessel with a certificate of documentation issued by the United States Coast Guard for
coastwise fishery.
(41) Services to determine effect on human health of consumption or use of a
product or substance. Sales of services used to determine the probable consequences
in relation to human health of the consumption or other use of any product, substance
or element.
(42) Aircraft held for resale by certain air carriers and used for purposes other
than retention, demonstration or display. Repealed by P.A. 85-240, S. 5, 6.
(43) Replacement parts in enterprise zones. Sales of any replacement parts for
machinery to any business entity located in any enterprise zone designated pursuant to
section 32-70 for use within such zone.
(44) Certain motion picture, video, television and radio production and broadcast equipment. (A) Sales of and the storage, use or other consumption of any filmed
and taped television and radio programs and any materials which become an ingredient
or component part of films or tapes which are used directly in the production and transmission of finished programs (i) broadcast to the general public by a television or radio
station or (ii) used on or after October 1, 1986, for purposes of accredited medical or
surgical training, including any equipment used for such purpose; (B) sales of and the
storage, use, rental, lease or other consumption of any motion picture or video production
equipment or sound recording equipment purchased or leased for use in this state for
production activities which become an ingredient or component part of any master tapes,
records, video tapes or film produced for commercial entertainment, commercial advertising or commercial educational purposes; or (C) sales of and the storage, use, rental
or lease of equipment, including, but not limited to, antennas used directly in the production or broadcast of programs to the general public by a television or radio station.
(45) Gold or silver bullion, legal tender of any nation, rare and antique coins.
Sales of and the storage or use of rare or antique coins, gold or silver bullion and gold
or silver legal tender of any nation, traded according to its value as precious metal,
provided such exemption shall not be applicable with respect to any such sale, storage
or use in which the total value of such bullion or legal tender sold by the retailer is less
than one thousand dollars.
(46) Meals delivered to homes of persons who are elderly, disabled or otherwise
confined. Sales of home delivered meals to elderly, disabled and other homebound
persons.
(47) Articles of clothing or footwear costing under seventy-five dollars. Sales
of any article of clothing or footwear intended to be worn on or about the human body
the cost of which to the purchaser is less than seventy-five dollars. For purposes of this
subdivision clothing or footwear shall not include (A) any special clothing or footwear
primarily designed for athletic activity or protective use that is not normally worn except
when used for the athletic activity or protective use for which it was designed, and (B)
jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on
or about the human body but not worn on the body in the manner characteristic of
clothing intended for exemption under this subdivision.
(48) Nonprescription drugs and medicines. Sales of the following drugs or medicines available for purchase without prescription for use in or on the body: Vitamin or
mineral concentrates; dietary supplements; natural or herbal drugs or medicines; products intended to be taken for coughs, colds, asthma or allergies; antihistamines; laxatives;
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral and antifungal
medicines; antiseptics; astringents; anesthetics; steroidal medicines; anthelmintics;
emetics and antiemetics; antacids; and any medication prepared to be used in the eyes,
ears or nose, excluding cosmetics, dentifrices, mouthwash, shaving and hair care products, soaps and deodorants.
(49) Property tax payments under motor vehicle leases. Any payment made by
a lessee of a motor vehicle to a lessor for the purpose of paying the property taxes on
any such vehicle under a lease which is otherwise subject to the taxes imposed by this
chapter if such lease requires the lessee to pay such property taxes and if a separate
statement of the amount of any such property tax payment is contained in such lease or
in any bill rendered pursuant to such lease.
(50) Lease or rental of any motion picture film for display by theater owner
or operator. The leasing or rental of any motion picture film by the owner or operator
of a motion picture theater for purposes of display at such theater.
(51) Any meal the cost of which is less than two dollars. Repealed by P.A. 89-
251, S. 202, 203.
(52) Cloth or fabric purchased for noncommercial sewing. Any sale of cloth or
fabric for purposes of noncommercial sewing, made of natural or synthetic fibers and
of such composition, weight and texture as to be used commonly in clothing, and including in addition to such cloth or fabric, any items necessary in such sewing which become
a component part of the clothing so made.
(53) Disposable pads used for incontinency. Sales of certain disposable pads prepared for use in the manner of a diaper or as an underpad, and commonly used by persons
who are incontinent.
(54) Test strips and tablets, lancets and glucose monitoring equipment used in
care of diabetes and associated repair or replacement parts. Sales of test strips and
tablets, lancets and glucose monitoring equipment for purposes of certain tests and
monitoring required in the care of diabetes and repair or replacement parts for such
equipment, whether such repair or replacements parts are purchased separately or in
conjunction with the sale of such equipment, and whether such parts continue the original
function or enhance the functionality of such equipment.
*(55) Personal property used in burial or cremation with value up to two thousand five hundred dollars for any single funeral. Sales of tangible personal property
by any funeral establishment performing the primary services in preparation for and the
conduct of burial or cremation, provided any such property must be used directly in the
performance of such services and the total amount of such exempt sales with respect to
any single funeral may not exceed two thousand five hundred dollars.
(56) Sales of certain items by nursing homes, rest homes, residential care
homes, convalescent homes or adult day care centers. Sales of items for not more
than one hundred dollars each by any nursing home, rest home, residential care home,
convalescent home or any adult day care center approved for such purpose by the Commissioner of Social Services, provided (1) such sales are made through a gift shop located
in such home or center and (2) any profits from such sales are retained by such home
or center for the benefit of the patients, in the case of any such home, or persons using
any such adult day care center.
(57) Items purchased with federal food stamp coupons. Sales of any items purchased with federal food stamp coupons, subject to the provisions of section 12-412e.
(58) Services related to personnel, management or research when company
rendering service and recipient are participating in a joint venture for purposes
of research and new product development. Sales of any services rendered for purposes
of (A) personnel services, (B) commercial or industrial marketing, development, testing
or research services, or (C) business analysis and management services, whenever, pursuant to a joint venture agreement, the recipient of any such services is either a corporation or a partnership and such services are rendered by one or more corporate shareholders or a corporate partner in such joint venture, and in accordance with which the
company rendering such service must have an ownership interest equivalent to not less
than twenty-five per cent of total ownership in such joint venture, provided (i) the purpose of such joint venture is directly related to production or development of new or
experimental products or systems and the marketing and support thereof, (ii) at least one
of the corporations participating in such joint venture shall have been actively engaged in
business in this state for not less than ten years, and (iii) exemption for such sales in
accordance with this subsection, with respect to any single joint venture, shall not be
allowed for a period in excess of ten consecutive years, or in the case of a joint venture
in existence prior to January 1, 1986, within the aircraft industry, for a period in excess
of thirty consecutive years, and such exemption shall be applicable to sales of such
services rendered on or after January 1, 1986.
(59) Aviation fuel used exclusively and directly in the experimental testing of
any product. Sales of and the storage, use or other consumption of any aviation fuel
used exclusively and directly in the experimental testing of any product.
(60) Motor vehicle or vessel purchased but not registered in this state by a
person who is not a resident of this state. The sale of any motor vehicle or vessel, as
defined in section 15-127, in this state when the purchaser of such motor vehicle or
vessel is not a resident of this state and does not maintain a permanent place of abode
in this state, provided such motor vehicle or vessel is not presented for registration with
the Department of Motor Vehicles in this state and such purchaser submits a declaration,
prescribed as to form by the commissioner and bearing notice to the effect that false
statements made in such declaration are punishable, or other evidence as may be requested by the Commissioner of Revenue Services concerning such purchaser's residency or place of abode.
(61) Ambulances. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(62) Services rendered between parent companies and wholly-owned subsidiaries. (A) Sales of any of the services enumerated in subdivisions (2) (i), (2) (k) or (2)
(l) of section 12-407 that are rendered for a business entity affiliated with the business
entity rendering such service in such manner that (i) either business entity in such
transaction owns a controlling interest in the other business entity, or (ii) a controlling
interest in each business entity in such transaction is owned by the same person or
persons or business entity or business entities.
(B) For purposes of this subdivision, (i) "business entity" means a corporation, trust,
estate, partnership, limited partnership, limited liability partnership, limited liability
company, single member limited liability company, sole proprietorship and nonstock
corporation; (ii) "controlling interest" means, in the case of a business entity that is a
corporation, ownership of stock possessing one hundred per cent of the total combined
voting power of all classes of stock entitled to vote or one hundred per cent of the total
value of shares of all classes of stock of such corporation; in the case of a business entity
that is a trust or estate, ownership of a beneficial interest of one hundred per cent in such
trust or estate; in the case of a business entity that is a partnership, limited partnership
or limited liability partnership, ownership of one hundred per cent of the profits interest
or capital interest in such partnership, limited partnership or limited liability partnership;
in the case of a limited liability company with more than one member, ownership of
one hundred per cent of the profits interest, capital interest or membership interests in
such limited liability company; in the case of a business entity that is a sole proprietorship or single member limited liability company, ownership of such sole proprietorship
or single member limited liability company; in the case of a business entity that is a
nonstock corporation with voting members, control of one hundred per cent of all voting
membership interests in such corporation; and in the case of a business entity that is a
nonstock corporation with no voting members, control of one hundred per cent of the
board of directors of such corporation; (iii) whether a controlling interest in a business
entity is owned shall be determined in accordance with Section 267 of the Internal
Revenue Code of 1986, or any subsequent corresponding internal revenue code of the
United States, as from time to time amended, provided where a controlling interest is
owned in a business entity other than a stock corporation, the term "stock" as used in
said Section 267 of the Internal Revenue Code means, in the case of a partnership,
limited partnership, limited liability partnership or limited liability company treated as
a partnership for federal income tax purposes, the profits interest or capital interest in
such partnership, in the case of a business entity that is a trust or estate, the beneficial
interests in such trust or estate, and in the case of a business entity that is a nonstock
corporation, the voting membership interests in such corporation, or if it has no voting
members, the control of the board of directors; (iv) a business entity has "control of"
the board of directors of a nonstock corporation if one hundred per cent of the voting
members of the board of directors are either representatives of, including ex-officio
directors, or persons appointed by such business entity, or "control of" one hundred
per cent of the voting membership interests in a nonstock corporation if one hundred
per cent of the voting membership interests are held by the business entity or by representatives of, including ex-officio members, or persons appointed by such business entity.
(63) Items sold for use in agricultural production by a farmer engaged in such
production as a business. (A) Sales of and the storage, use or other consumption of
tangible personal property exclusively for use in agricultural production, as defined in
this subsection, by a farmer engaged in agricultural production as a trade or business
and to whom the Department of Revenue Services has issued a farmer tax exemption
permit, provided such farmer's gross income from such agricultural production, as reported for federal income tax purposes, shall have been (i) not less than two thousand
five hundred dollars for the immediately preceding taxable year, or (ii) on average, not
less than two thousand five hundred dollars for the two immediately preceding taxable
years.
(B) The Commissioner of Revenue Services shall adopt regulations in accordance
with chapter 54 requiring periodic registration for purposes of the issuance of farmer
tax exemption permits, including (i) a procedure related to the application for such
permit, such application to include a declaration, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made
in such declaration are punishable, to be signed by the applicant, and (ii) a form of notice
concerning the penalty for misuse of such permit.
(C) As used in this subsection, (i) "agricultural production" means engaging, as a
trade or business, in (I) the raising and harvesting of any agricultural or horticultural
commodity, (II) dairy farming, (III) forestry, (IV) the raising, feeding, caring for, shearing, training or management of livestock, including horses, bees, poultry, fur-bearing
animals or wildlife or (V) the raising and harvesting of fish, oysters, clams, mussels or
other molluscan shellfish; and (ii) "farmer" means any person engaged in agricultural
production as a trade or business.
(D) The Department of Revenue Services may issue a farmer tax exemption permit
to a farmer, notwithstanding the fact that, in the farmer's immediately preceding taxable
year, such farmer's gross income from agricultural production engaged in as a trade or
business may have been less than two thousand five hundred dollars, provided (i) such
farmer purchased, during such farmer's current or immediately preceding taxable year,
an agricultural trade or business from a seller who was issued a farmer tax exemption
permit by such department at the time of such purchase and (ii) such agricultural production shall be carried on as a trade or business by such purchaser during the period commencing upon the purchase and ending two years after the date of purchase. Such purchaser shall be liable for the tax otherwise imposed, during the period commencing
upon such purchase and ending two years after the date of purchase, if such agricultural
production is not carried on as a trade or business by such purchaser during the period
commencing upon such purchase and ending two years after the date of purchase.
(E) (i) The Department of Revenue Services, under such regulations as the Commissioner of Revenue Services may adopt in accordance with the provisions of chapter
54, may issue a farmer tax exemption permit to an applicant, provided such applicant
has satisfied the commissioner that the applicant intends to carry on agricultural production as a trade or business for at least two years, notwithstanding the fact that the applicant
was not engaged in agricultural production as a trade or business in the immediately
preceding taxable year or, if the applicant was engaged in agricultural production as a
trade or business in the immediately preceding taxable year, notwithstanding the fact
that the applicant's gross income from such agricultural production, as reported for
federal income tax purposes, was less than two thousand five hundred dollars for the
immediately preceding taxable year or, on average, less than two thousand five hundred
dollars for the two immediately preceding taxable years.
(ii) Such applicant shall be liable for the tax imposed under this chapter during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit if agricultural production is not carried on as a trade or business
by such applicant during such entire period.
(iii) Such applicant shall also be liable for the tax otherwise imposed, during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit, if (I) such applicant's gross income from such agricultural
production, as reported for federal income tax purposes, is less than two thousand five
hundred dollars for the immediately preceding taxable year or, on average, less than
two thousand five hundred dollars for the two immediately preceding taxable years, and
(II) such applicant's expenses from such agricultural production, as reported for federal
income tax purposes, are less than two thousand five hundred dollars for the immediately
preceding taxable year or, on average, less than two thousand five hundred dollars for
the two immediately preceding taxable years.
(iv) Any applicant liable for tax under subparagraph (ii) or (iii) of this paragraph
shall not be eligible to be issued another permit under subparagraph (i) of this subdivision.
(64) Computer-related cleaning equipment. Sales of and the storage, use or other
consumption of equipment used directly in the production and cleaning of computer
discs for purposes of creating and maintaining the atmospheric environment necessary
in the area immediately surrounding such production and cleaning process, including
with respect to such area, climate control, air quality and a positive pressure mode
adapted to the particular climate and air quality requirements of such production and
cleaning process.
(65) Molds, dies, patterns and sand handling equipment for metal casting
foundries. The purchase and sale by metal casting foundries of molds, dies, patterns
and sand handling equipment.
(66) Molds, dies and patterns for pattern shops and metal casting foundries.
The sale by pattern shops of molds, dies and patterns to metal casting foundries or their
customers for use in such foundries, and the purchase and use of such items by pattern
shops in connection with any such sales.
(67) New motor vehicles exclusively powered by clean alternative fuels. Sales
of and the storage, use or other consumption, prior to January 1, 2002, of a new motor
vehicle which is exclusively powered by a clean alternative fuel. As used in this subsection and subsections (68) and (69), "clean alternative fuel" shall mean natural gas or
electricity when used as a motor vehicle fuel or propane when used as a motor vehicle
fuel if such a vehicle meets the federal fleet emissions standards under the federal Clean
Air Act or any emissions standards adopted by the Commissioner of Environmental
Protection as part of the state's implementation plan under said act.
(68) Conversion equipment associated with converting vehicles to exclusive
use of clean alternative fuels or dual use of such fuel and any other fuel. Sales
of and the storage, use or other consumption, prior to January 1, 2002, of conversion
equipment incorporated into or used in converting vehicles powered by any other fuel
to either exclusive use of a clean alternative fuel or dual use of any other fuel and a
clean alternative fuel, including, but not limited to, storage cylinders, cylinder brackets,
regulated mixers, fill valves, pressure regulators, solenoid valves, fuel gauges, electronic
ignitions and alternative fuel delivery lines.
(69) Equipment associated with compressed natural gas filling or electric recharging station. Sales of and the storage, use or other consumption, prior to January
1, 2002, of equipment incorporated into or used in a compressed natural gas filling or
electric recharging station for vehicles powered by a clean alternative fuel, including, but
not limited to, compressors, storage cylinders, associated framing, tubing and fittings,
valves, fuel poles and fuel delivery lines used for clean alternative fuel storage and
filling facilities.
(70) Commercial trucks, truck tractors, tractors and semitrailers and vehicles
used in combination therewith. (A) Sales of and the storage, use or other consumption
of commercial trucks, truck tractors, tractors and semitrailers, and vehicles used in combination therewith, which (i) have a gross vehicle weight rating in excess of twenty-six
thousand pounds or (ii) are operated actively and exclusively during the period commencing upon its purchase and ending one year after the date of purchase for the carriage
of interstate freight pursuant to a certificate or permit issued by the Interstate Commerce
Commission or its successor agency. As used in this subsection, "gross vehicle weight
rating" means the value specified by the manufacturer as the loaded weight of the single
or combination vehicle and, if the manufacturer has not specified a value for a towed
vehicle, means the value specified for the towing vehicle plus the loaded weight of the
towed unit.
(B) Each purchaser of a commercial truck, truck tractor, tractor or semitrailer or
vehicle used in combination therewith exempt from tax pursuant to the provisions of
subparagraph (A)(ii) of this subsection shall, in order to qualify for said exemption,
present to the retailer (i) a copy of the certificate or permit that was issued by the Interstate
Commerce Commission or its successor agency to the purchaser and (ii) a certificate,
in such form as the commissioner may prescribe, certifying that such commercial truck,
truck tractor, tractor or semitrailer or vehicle used in combination therewith will be
operated actively and exclusively for the carriage of interstate freight. The purchaser
shall be liable for the tax otherwise imposed if, during the period commencing upon its
purchase and ending one year after the date of purchase, such commercial truck, truck
tractor, tractor or semitrailer or vehicle used in combination therewith is not operated
actively and exclusively for the carriage of interstate freight.
(71) Machinery, equipment, tools, materials and supplies used in commercial
printing. Sales of and the storage, use or other consumption of machinery, equipment,
tools, materials and supplies used predominantly in the production of printed material
by a commercial printer or publisher. For purposes of this subsection, "the production
of printed material" is defined to include all processes necessary to convert manuscript
copy into printed material, including but not limited to, layout, color separation and
typesetting.
(72) Machinery, equipment, tools, materials and supplies for typesetting, color
separation, finished copy, or similar products. Sales of and the storage, use or other
consumption of machinery, equipment, tools, materials and supplies used predominantly in the production of typesetting, color separation, finished copy with type proofs
and artwork or similar content mounted for photomechanical reproduction, or other
similar products to be sold for use in the production of printed materials.
(73) Component parts for assembly of manufacturing machinery. The sale of
any part of a machine purchased exclusively for the purpose of assembling a machine
for use directly in a manufacturing production process, provided the purchaser submits
a certified statement at the time of such purchase, on a form prepared by the Commissioner of Revenue Services, certifying that such part is purchased exclusively for use
in a machine to be assembled by the purchaser, or someone acting on behalf of the
purchaser, and that such machine shall be used directly in a manufacturing production
process. The purchaser shall prepare a record of the use of such part which shall be
maintained by the purchaser for a period of not less than three years following the date
of purchase.
(74) Certain sales of computer and data processing services. (A) Sales of computer and data processing services rendered to a customer (i) by a retailer which, on or
after July 1, 1991, acquired the operations of a data processing facility from the customer,
provided such customer operated the facility for its own use or (ii) by a retailer which,
on or after July 1, 1993, acquired the operations of the data processing facility from the
retailer described in subparagraph (A)(i) of this subsection, provided such customer
formerly operated the facility for its own use. (B) Sales of computer and data processing
services rendered to a customer by a retailer which, on or after July 1, 1995, acquired
the data processing operations from the customer, provided such customer formerly
conducted such data processing operations for its own use. Sales of and the storage, use
or other consumption of computers or data processing equipment, when sold to the
retailer described in this subparagraph and used by such retailer to provide the services
described in this subparagraph. The provisions in this subparagraph shall not apply if
the retailer is a related person, as defined in section 12-217w, with respect to the customer
or the customer is a related person, as defined therein, with respect to the retailer.
(75) Aviation fuel. Sales of and the storage, use or other consumption of aviation
fuel used exclusively for aviation purposes.
(76) Aircraft repair or replacement parts. Sales of and the storage, use or other
consumption of repair or replacement parts exclusively for use (A) (i) in aircraft owned
or leased by a certificated air carrier or (ii) in aircraft having a maximum certificated
takeoff weight of six thousand pounds or more or (B) in the significant overhauling or
rebuilding of aircraft or aircraft parts or components on a factory basis.
(77) Aircraft repair services. Sales of aircraft repair services when such services
are rendered in connection with (A) (i) aircraft owned or leased by a certificated air
carrier or (ii) aircraft having a maximum certificated takeoff weight of six thousand
pounds or more or (B) the significant overhauling or rebuilding of aircraft or aircraft
parts or components on a factory basis.
(78) Materials, tools, fuel, machinery and equipment in an aircraft manufacturing facility. On or after July 1, 1993, sales of and the storage, use or other consumption by an aircraft manufacturer operating an aircraft manufacturing facility in this state
of materials, tools, fuel, machinery and equipment used in such facility. For purposes
of this subsection, (A) "machinery and equipment" means tangible personal property
(i) which is installed in an aircraft manufacturing facility operated by an aircraft manufacturer and (ii) the predominant use of which is for the manufacturing of aircraft or
aircraft parts or components or for the significant overhauling or rebuilding of aircraft or
aircraft parts or components on a factory basis and (B) "aircraft manufacturing facility"
means that portion of a plant, building or other real property improvement used for the
manufacturing of aircraft or aircraft parts or components or for the significant overhauling or rebuilding of aircraft or aircraft parts or components on a factory basis.
(79) Marine fuel. Sales and the storage, use or other consumption of bunker fuel
oil, intermediate fuel, marine diesel oil and marine gas oil for use in any vessel having a
displacement exceeding four thousand dead weight tons or for use in any vessel primarily
engaged in interstate commerce.
(80) Equipment and associated repair and replacement parts installed in motor
vehicles for persons with physical disabilities. Sales and the storage, use or other
consumption of special equipment installed in a motor vehicle for the exclusive use of
a person with physical disabilities and repair or replacement parts for such equipment,
whether such repair or replacement parts are purchased separately or in conjunction
with such equipment, and whether such parts continue the original function or enhance
the functionality of such equipment.
(81) Machinery, equipment, tools and materials used in fabricating optical
lenses. Sales of and the storage, use or other consumption of machinery, equipment,
tools and materials used exclusively in the fabrication of optical lenses.
(82) Sales of commercial motor vehicles where seventy-five per cent of day-in-
service revenue derives from trips involving other states. (A) The sale of and the
storage, use or other consumption of any commercial motor vehicle as defined in subparagraphs (A) and (B) of subdivision (11) of section 14-1, that is operating pursuant
to the provisions of section 13b-88 or 13b-89, during the period commencing upon its
purchase and ending one year after the date of purchase provided seventy-five per cent
of its revenue from its days in service is derived from out-of-state trips or trips crossing
state lines.
(B) Each purchaser of a commercial motor vehicle exempt from tax pursuant to the
provisions of this subsection shall, in order to qualify for said exemption, present to the
retailer a certificate, in such form as the commissioner may prescribe, certifying that
seventy-five per cent of such vehicle's revenue from its days in service will be derived
from out-of-state trips or trips crossing state lines. The purchaser of the motor vehicle
shall be liable for the tax otherwise imposed if, during the period commencing upon its
purchase and ending one year after the date of purchase, seventy-five per cent of the
vehicle's revenue from its days in service is not derived from out-of-state trips or trips
crossing state lines.
(83) Sales of motor buses where seventy-five per cent of day-in-service revenues derives from trips involving other states. (A) The sale of and the storage, use
or other consumption of any motor bus, as defined in subdivision (44) of section 14-1,
that is operating pursuant to the provisions of section 13b-88 or 13b-89, during the
period commencing upon its purchase and ending one year after the date of purchase
provided seventy-five per cent of its revenue from its days in service is derived from
out-of-state trips or trips crossing state lines.
(B) Each purchaser of a motor bus exempt from tax pursuant to the provisions of
this subsection shall, in order to qualify for said exemption, present to the retailer a
certificate, in such form as the commissioner may prescribe, certifying that seventy-
five per cent of such bus's revenue from its days in service will be derived from out-
of-state trips or trips crossing state lines. The purchaser of the motor bus shall be liable
for the tax otherwise imposed if, during the period commencing upon its purchase and
ending one year after the date of purchase, seventy-five per cent of the bus's revenue
from its days in service is not derived from out-of-state trips or trips crossing state lines.
(84) Sales of goods and services to The University of Connecticut Educational
Properties, Incorporated. Sales of tangible personal property and services to The University of Connecticut Educational Properties, Incorporated, with regard to Connecticut
Technology Park.
(85) Landscaping, horticulture, window cleaning or maintenance services rendered to certain disabled persons. Sales of any landscaping and horticultural services,
window cleaning services or maintenance services, as described in subdivision (i) of
subsection (2) of section 12-407, on or after July 1, 1994, which are rendered to a person
determined to be eligible for, and currently receiving, total disability benefits under the
Social Security Act, provided such services are rendered at the residence of such person.
(86) Sales by an affiliate participating in certain community economic development programs. Sales of services by an affiliate participating in implementation of the
community economic development program established pursuant to section 8-240k to
another affiliate participating in said program.
(87) Sales of eligible benefits under Title XVIII or XIX of Social Security Act
or CHAMPUS. Sales of items that are eligible benefits and that are made to an eligible
beneficiary pursuant to Title XVIII, 42 USC Section 1395 et seq., or Title XIX, 42 USC
Section 1396 et seq., of the Social Security Act or pursuant to the federal Civilian Health
and Medical Program of the Uniformed Services, 10 USC Section 1071 et seq.
(88) Commercial photographic film and paper processing materials. Sales of
and the storage, use or other consumption of machinery, equipment, tools and materials
used exclusively in the commercial processing of photographic film and paper.
(89) Machinery, equipment, tools, materials, supplies and fuel used in the biotechnology industry. Sales of and the storage, use or other consumption of machinery,
equipment, tools, materials, supplies and fuel used directly in the biotechnology industry. For the purposes of this subsection, "biotechnology" means the application of technologies, such as recombinant DNA techniques, biochemistry, molecular and cellular
biology, genetics and genetic engineering, biological cell fusion techniques, and new
bioprocesses, using living organisms, or parts of organisms, to produce or modify products, to improve plants or animals, to develop microorganisms for specific uses, to
identify targets for small molecule pharmaceutical development, to transform biological
systems into useful processes and products or to develop microorganisms for specific
uses.
(90) Water companies. Sales of and the storage, use or other consumption of any
personal property or any services to a water company, as defined in section 16-1, for
use in maintaining, operating, managing or controlling any pond, lake, reservoir, stream,
well or distributing plant or system employed for the purpose of supplying water to fifty
or more consumers.
(91) Safety apparel. Sales of and the storage, use or other consumption of safety
apparel. For the purposes of this subsection "safety apparel" means any item of clothing
or protective equipment worn by an employee for protection during the course of the
employee's employment.
(92) Services or tangible personal property for the operation of projects of
the Connecticut Resource Recovery Authority. The sales and use of any services or
tangible personal property to be incorporated into or used or otherwise consumed in the
operation of any project of the Connecticut Resource Recovery Authority established
pursuant to section 22a-261 whether such purchases are made directly by the authority
or are reimbursed by the authority to the lessee or operator of such project.
(93) Tangible personal property or services to tourism districts. Sales of tangible personal property or services to any tourism district, as defined in section 32-302.
(94) Tangible personal property at bazaars, fairs, picnics, tag sales by nonprofit organizations. Sales of tangible personal property by nonprofit organizations at
bazaars, fairs, picnics, tag sales or similar events to the extent of five such events of a
day's duration held during any calendar year.
(95) Services or tangible personal property used or consumed in operating
solid waste-to-energy facilities. The sales or use of any services or tangible personal
property to be incorporated into or used or otherwise consumed in the operation of a solid
waste-to-energy facility, certified as approved for such purpose by the Commissioner of
Environmental Protection, whether such purchases are made directly by an authority or
an operating committee, or are reimbursed by an authority or operating committee to
the lessee or operator of such facility.
(96) Vegetable seeds. Sales of vegetable seeds suitable for planting to produce food
for human consumption.
(97) Yarn. Any sale of yarn for noncommercial use made of natural or synthetic
fibers.
(98) Tangible personal property by historical societies. Sales of tangible personal property by historical societies.
(99) Certain aircraft. Sales of and the storage, use or other consumption of, aircraft
having a maximum certificated takeoff weight of six thousand pounds or more. "Certificated takeoff weight" means the maximum such weight contained in the type certificate
or airworthiness certificate.
(100) Services used or consumed in the development, construction, rehabilitation, renovation or repair of housing facilities for low and moderate income families
in Qualified Census Tracts or Difficult Development Areas. Sales of and the acceptance, use or other consumption of any service described in subsection (2) of section 12-
407 that is accepted, used or consumed in the development, construction, rehabilitation,
renovation or repair of housing facilities for low and moderate income families and
persons, provided such facilities are situated in Qualified Census Tracts or Difficult
Development Areas as designated by the Secretary of the United States Department of
Housing and Urban Development and provided, further, that the development of such
facilities is assisted by an allocation of Low Income Housing Tax Credits pursuant to
Section 42 of the Internal Revenue Code. For purposes of this subsection, (A) "housing
facilities" means facilities having as their primary purpose the provision of safe and
adequate housing and related facilities for low and moderate income families and persons, notwithstanding that said housing provides other dwelling accommodations for
low and moderate income families; (B) "related facilities" means those facilities defined
in subsection (d) of section 8-243; and (C) "low and moderate income families" means
those families as defined in subsection (h) of said section 8-243.
(101) Firearm safety devices. Sales of and the storage, use or other consumption
of firearm safety devices. For purposes of this subdivision, "firearm safety devices"
shall include safes, lock boxes, trigger and barrel locks and other items designed to
enhance home firearm safety.
(102) Bicycle helmets. Sales of and the storage, use or other consumption of bicycle
helmets. For the purposes of this subdivision, "bicycle" means any vehicle propelled
by the person riding the same by foot or hand power and "helmet" means protective
headgear which conforms to the minimum specifications established by the American
National Standards Institute or the Snell Memorial Foundation's Standard for Protective
Headgear for Use in Bicycling.
(103) Machinery, equipment and supplies of freight railroads. Sales of and the
storage, use or other consumption of railroad locomotives, track ballasts, ties, rails,
machinery and equipment used to maintain the railroad right-of-way which is used or
operated exclusively for the carriage of freight.
(104) Calibration services. Sales, use or other consumption of (A) calibration services for machinery, equipment or instrumentation used in a manufacturing production
process; or (B) other sales, use or other consumption of services or compliance practices
associated with registration and compliance of quality management and quality assurance standards as part of standards created by the International Organization of Standards. For purposes of this subdivision, "calibration services" means independent inspection services performed to verify accuracy in the provision, calibration or
recalibration of equipment used to test, measure, monitor or gage any quality, process
or environmental equipment used in conjunction with maintaining quality standards or
meeting regulatory requirements.
(105) Shoe repair services. Sales of shoe repair services.
(106) "Call before you dig" services. Sales of services enumerated in subparagraph (J) of subdivision (2)(i) of section 12-407, on or after July 1, 1999, which services
are rendered to the central clearinghouse organized and operated under the direction of
the Department of Public Utility Control, by the public utilities of this state for receiving
and giving the notices required by section 16-349.
(107) Diesel fuel used in portable generators. Sales of, and the storage, use or
other consumption of, diesel fuel to be used exclusively in portable power system generators that are larger than one hundred fifty kilowatts.
(108) Child car seats. Sales of child car seats.
(109) College textbooks. Sales of college textbooks to full and part-time students
enrolled at institutions of higher education, provided the student presents a valid student
identification card. For purposes of this subdivision, "college textbooks" means new or
used books and related workbooks required or recommended for a course at an institution
of higher education.
(110) High mileage motor vehicles. On and after July 1, 2000, and prior to July
1, 2002, the sale of any passenger car that has a United States Environmental Protection
Agency estimated highway gasoline mileage rating of at least fifty miles per gallon.
(1949 Rev., S. 2096; 1953, S. 1167d; 1953, 1955, S. 1166d; 1955, S. 1168d; 1957, P.A. 195; 389; 390; 1959, P.A. 578,
S. 11; 1961, P.A. 80; 1967, P.A. 57, S. 28; 754, S. 20; 1969, P.A. 187; 188; 758, S. 14; June, 1969, P.A. 1, S. 23; 1971,
P.A. 455; 516, S. 1; 794, S. 1, 2; 872, S. 38, 150; June, 1971, P.A. 5, S. 129; 8, S. 6, 7; 1972, P.A. 46, S. 1; 285, S. 4; P.A.
73-196, S. 1, 2; 73-288, S. 4, 8; 73-299, S. 1, 2; 73-439; 73-452, S. 1, 2; P.A. 74-4, S. 1−3; 74-200; 74-263, S. 1, 2; P.A.
75-213, S. 33, 52, 53; 75-495, S. 1, 2; 75-567, S. 47, 48, 80; 75-607, S. 1; 75-613, S. 2, 4; P.A. 76-390, S. 1, 2; 76-435, S.
47, 82; P.A. 77-46; 77-266, S. 1, 2; 77-370, S. 9, 13; 77-395, S. 2, 3; 77-427, S. 1, 2; 77-457; P.A. 78-71, S. 3−5; 78-172,
S. 1, 2; P.A. 79-33, S. 1, 2; 79-400, S. 1, 2; 79-419, S. 1, 2; 79-547, S. 1, 2; 79-627, S. 1, 6; P.A. 80-71, S. 21, 30; 80-98,
S. 1, 2; 80-406, S. 2, 5; P.A. 81-323, S. 1, 2; 81-327, S. 1, 2; 81-399, S. 1, 3; 81-445, S. 5, 11; P.A. 82-25, S. 8, 10; 82-
192, S. 1, 2; 82-416, S. 2, 3; 82-444; 82-467, S. 1, 3; P.A. 83-18, S. 1, 4, 5; 83-509, S. 1, 3; P.A. 84-415, S. 1−3; 84-507,
S. 1, 3, 4; P.A. 85-3, S. 1, 3; 85-159, S. 7, 8, 16, 19; 85-240, S. 5, 6; 85-435, S. 1, 2; 85-462, S. 1, 2; 85-469, S. 4, 6; 85-
513, S. 2, 3; 85-534, S. 3, 5; P.A. 86-120, S. 1, 2; 86-397, S. 1, 5, 10; P.A. 87-50; 87-119, S. 1, 2; 87-177, S. 1, 2; 87-238,
S. 1, 2; 87-311, S. 1, 2; 87-315, S. 1, 2; 87-422, S. 2, 3; July Sp. Sess. P.A. 87-1, S. 1, 9; P.A. 88-307, S. 1, 4; 88-364, S.
19, 123; P.A. 89-123, S. 5, 9−11; 89-190; 89-251, S. 12−14, 202, 203; P.A. 90-255, S. 1, 2; 90-262, S. 3, 4; 90-295, S. 4,
5; 90-336, S. 2, 3; P.A. 91-179, S. 2, 5; June Sp. Sess. P.A. 91-3, S. 114−117, 166, 168; June Sp. Sess. P.A. 91-14, S. 27,
30; P.A. 92-133, S. 8, 9; 92-188, S. 2, 4; 92-193, S. 7, 8; May Sp. Sess. P.A. 92-5, S. 28, 37; May Sp. Sess. P.A. 92-17, S.
28, 29, 40, 59; P.A. 93-44, S. 19, 24; 93-74, S. 27−31, 67; 93-122; 93-199, S. 3, 6; 93-262, S. 1, 87; 93-332, S. 14, 20, 23,
42; 93-360, S. 16, 17, 19; 93-361, S. 14, 17; Sept. Sp. Ses. P.A. 93-1, S. 29, 35; P.A. 94-9, S. 19, 41; 94-82, S. 4, 5; 94-
175, S. 24, 26, 32; May Sp. Sess. P.A. 94-4, S. 18, 19, 75, 80, 85; P.A. 95-160, S. 40−47, 64, 69; 95-359, S. 2−7, 18, 19;
P.A. 96-139, S. 12, 13; 96-172, S. 2, 3; 96-222, S. 8, 9, 41; 96-252, S. 5, 8; P.A. 97-112, S. 2; 97-243, S. 21−25, 67; 97-
295, S. 6, 25; 97-315, S. 1, 4; 97-316, S. 1−4, 8−11; June 18 Sp. Sess. P.A. 97-4, S. 5, 11; June 18 Sp. Sess. P.A. 97-11,
S. 63, 65; P.A. 98-110, S. 8, 9, 27; 98-262, S. 6, 14, 22; Dec. Sp. Sess. P.A. 98-1, S. 30, 43; P.A. 99-173, S. 16−27, 65;
99-241, S. 54, 66; P.A. 00-140, S. 22, 40; 00-170, S. 2, 3, 6, 42; 00-174, S. 8−12, 64, 75, 83; 00-196, S. 6, 66.)
"(19) Oxygen, blood plasma, protheses, custom-made wigs or hairpieces, hearing and vision aids, canes, crutches, walkers and wheel chairs, vital life support
equipment, apnea monitors, support hose and related repair or replacement parts
and repair services. Sales of and the storage, use or other consumption of (A) oxygen,
blood or blood plasma when sold for medical use in humans or animals; (B) artificial
devices individually designed, constructed or altered solely for the use of a particular
handicapped person so as to become a brace, support, supplement, correction or substitute for the bodily structure, including the extremities of the individual, and repair or
replacement parts and repair services rendered to property described in this subparagraph; (C) artificial limbs, artificial eyes and other equipment worn as a correction or
substitute for any functioning portion of the body, custom-made wigs or hairpieces for
persons with medically diagnosed total and permanent hair loss as a result of disease
or the treatment of disease, artificial hearing aids when designed to be worn on the
person of the owner or user, closed circuit television equipment used as a reading aid
by persons who are visually impaired and repair or replacement parts and repair services
rendered to property described in this subparagraph; (D) canes, crutches, walkers, wheel
chairs and inclined stairway chairlifts for the use of invalids and handicapped persons,
and repair or replacement parts and repair services to property described in this subparagraph; (E) any equipment used in support of or to supply vital life functions, including
oxygen supply equipment used for humans or animals, kidney dialysis machines and
any other such device used in necessary support of vital life functions, and apnea monitors, and repair or replacement parts and repair services rendered to property described
in this subparagraph; and (F) support hose that is specially designed to aid in the circulation of blood and is purchased by a person who has a medical need for such hose. Repair
or replacement parts are exempt whether purchased separately or in conjunction with the
item for which they are intended, and whether such parts continue the original function or
enhance the functionality of such item. As used in this subdivision, "repair services"
means services that are described in subparagraph (Q) or (EE) of subdivision (2)(i) of
section 12-407."
"(55) Personal property used in burial or cremation with value up to two thousand five hundred dollars per funeral and caskets. Sales of (A) tangible personal
property by any funeral establishment performing the primary services in preparation
for and the conduct of burial or cremation, provided any such property must be used
directly in the performance of such services and the total amount of such exempt sales
with respect to any single funeral may not exceed two thousand five hundred dollars,
or (B) caskets used for burial."
"(111) Products which aid in the cessation of smoking. Sales of specially formulated gum, inhalants or similar products designed to aid in the cessation of a smoking
habit.
(112) Equipment transmitting information at not less than two hundred kilobits per second. Sales of equipment to a telecommunications company or community
antenna television company, as defined under section 16-1, that is used to provide telecommunications, high-speed data transmission or broad-band Internet services which
offer the capability to transmit information at a rate that is not less than two hundred
kilobits per second in at least one direction."
(1949 Rev., S. 2096; 1953, S. 1167d; 1953, 1955, S. 1166d; 1955, S. 1168d; 1957, P.A. 195; 389; 390; 1959, P.A. 578,
S. 11; 1961, P.A. 80; 1967, P.A. 57, S. 28; 754, S. 20; 1969, P.A. 187; 188; 758, S. 14; June, 1969, P.A. 1, S. 23; 1971,
P.A. 455; 516, S. 1; 794, S. 1, 2; 872, S. 38, 150; June, 1971, P.A. 5, S. 129; 8, S. 6, 7; 1972, P.A. 46, S. 1; 285, S. 4; P.A.
73-196, S. 1, 2; 73-288, S. 4, 8; 73-299, S. 1, 2; 73-439; 73-452, S. 1, 2; P.A. 74-4, S. 1−3; 74-200; 74-263, S. 1, 2; P.A.
75-213, S. 33, 52, 53; 75-495, S. 1, 2; 75-567, S. 47, 48, 80; 75-607, S. 1; 75-613, S. 2, 4; P.A. 76-390, S. 1, 2; 76-435, S.
47, 82; P.A. 77-46; 77-266, S. 1, 2; 77-370, S. 9, 13; 77-395, S. 2, 3; 77-427, S. 1, 2; 77-457; P.A. 78-71, S. 3−5; 78-172,
S. 1, 2; P.A. 79-33, S. 1, 2; 79-400, S. 1, 2; 79-419, S. 1, 2; 79-547, S. 1, 2; 79-627, S. 1, 6; P.A. 80-71, S. 21, 30; 80-98,
S. 1, 2; 80-406, S. 2, 5; P.A. 81-323, S. 1, 2; 81-327, S. 1, 2; 81-399, S. 1, 3; 81-445, S. 5, 11; P.A. 82-25, S. 8, 10; 82-
192, S. 1, 2; 82-416, S. 2, 3; 82-444; 82-467, S. 1, 3; P.A. 83-18, S. 1, 4, 5; 83-509, S. 1, 3; P.A. 84-415, S. 1−3; 84-507,
S. 1, 3, 4; P.A. 85-3, S. 1, 3; 85-159, S. 7, 8, 16, 19; 85-240, S. 5, 6; 85-435, S. 1, 2; 85-462, S. 1, 2; 85-469, S. 4, 6; 85-
513, S. 2, 3; 85-534, S. 3, 5; P.A. 86-120, S. 1, 2; 86-397, S. 1, 5, 10; P.A. 87-50; 87-119, S. 1, 2; 87-177, S. 1, 2; 87-238,
S. 1, 2; 87-311, S. 1, 2; 87-315, S. 1, 2; 87-422, S. 2, 3; July Sp. Sess. P.A. 87-1, S. 1, 9; P.A. 88-307, S. 1, 4; 88-364, S.
19, 123; P.A. 89-123, S. 5, 9−11; 89-190; 89-251, S. 12−14, 202, 203; P.A. 90-255, S. 1, 2; 90-262, S. 3, 4; 90-295, S. 4,
5; 90-336, S. 2, 3; P.A. 91-179, S. 2, 5; June Sp. Sess. P.A. 91-3, S. 114−117, 166, 168; June Sp. Sess. P.A. 91-14, S. 27,
30; P.A. 92-133, S. 8, 9; 92-188, S. 2, 4; 92-193, S. 7, 8; May Sp. Sess. P.A. 92-5, S. 28, 37; May Sp. Sess. P.A. 92-17, S.
28, 29, 40, 59; P.A. 93-44, S. 19, 24; 93-74, S. 27−31, 67; 93-122; 93-199, S. 3, 6; 93-262, S. 1, 87; 93-332, S. 14, 20, 23,
42; 93-360, S. 16, 17, 19; 93-361, S. 14, 17; Sept. Sp. Ses. P.A. 93-1, S. 29, 35; P.A. 94-9, S. 19, 41; 94-82, S. 4, 5; 94-
175, S. 24, 26, 32; May Sp. Sess. P.A. 94-4, S. 18, 19, 75, 80, 85; P.A. 95-160, S. 40−47, 64, 69; 95-359, S. 2−7, 18, 19;
P.A. 96-139, S. 12, 13; 96-172, S. 2, 3; 96-222, S. 8, 9, 41; 96-252, S. 5, 8; P.A. 97-112, S. 2; 97-243, S. 21−25, 67; 97-
295, S. 6, 25; 97-315, S. 1, 4; 97-316, S. 1−4, 8−11; June 18 Sp. Sess. P.A. 97-4, S. 5, 11; June 18 Sp. Sess. P.A. 97-11,
S. 63, 65; P.A. 98-110, S. 8, 9, 27; 98-262, S. 6, 14, 22; Dec. Sp. Sess. P.A. 98-1, S. 30, 43; P.A. 99-173, S. 16−27, 65;
99-241, S. 54, 66; P.A. 00-140, S. 22, 40; 00-170, S. 1−6, 42; 00-174, S. 8−12, 64, 75, 83; 00-196, S. 4, 66.)
History: 1959 act made technical changes and added definition of "machinery" to Subsec. (r) (now (18)); 1961 act
added subdivision (l)(6) (now (12)(F)); 1967 acts added Subsecs. (u) (now (21)) and (v) (now (22)) re industrial waste and
air pollution control facilities; 1969 acts amended Subsecs. (u) (now (21)) and (v) (now (22)) to include property "...used
and consumed in the operation of facilities", substituted clean air commission for air pollution control commission in
Subsec. (v) (now (22)) and allowed certification of portions of property which reduce, control or eliminate air pollution;
and amended Subsec. (j) (now (10)) to exempt only clothing for children less than ten years old for period between July
1, 1969, and July 1, 1971; 1971 acts included syringes and needles in Subsec. (d) (now (4)), specified applicability to
manufacturers of aircraft located in this state, specifically included "take out" meals as taxable in Subsec. (m) (now (13))
and amended Subsec. (q) (now (17)) accordingly, substituted commissioner of environmental protection for water resources
commission and clean air commission in Subsecs. (u) (now (21)) and (v) (now (22)) respectively, made exemption limited
to clothing for children under ten permanent in Subsec. (j) (now (10)), clarified utility exemption in Subsec. (c) (now (3))
by including specific provisions for each type of utility service and amended Subsec. (p) (now (16)) to include gas and
electricity sold for domestic purposes; 1972 acts included food products and meals sold to patients in hospitals, nursing
homes, etc. in Subsec. (i) (now (9)) and amended Subsec. (c) (now (3)) to exempt utility services to first ten dollars a month
rather than to first twenty dollars; P.A. 73-196 added Subsec. (w) (now (23)) re flags; P.A. 73-288 deleted references to
"consumption" in Subsec. (r) (now (18)); P.A. 73-299 added Subsec. (x) (now (24)) re municipal publications, etc.; P.A.
73-439 added Subsec. (y) (now (25)) re motor vehicles sold for use outside state; P.A. 73-452 added Subsec. (z) (now
(26)) re sales of two dollars or less for items sold by eleemosynary organizations; P.A. 74-4 amended Subsec. (c) (now
(3)) to include sales of bottled gas and community antenna television and cable services and to delete special provisions
added in 1971 and amended Subsec. (p) (now (16)) to refer simply to fuel for heating purposes rather than to list specific
fuel sources, effective March 1, 1974, and applicable to all sales, furnishing or service of gas, including bottled gas, water,
electricity, community antenna television and cable services, telephone, telegraph and heating fuel for billing periods
commencing on and after that date; P.A. 74-200 amended Subsec. (l)(6) (now (12)(F)) to exempt sales of all horses except
race horses rather than just sales of draft horses; P.A. 74-263 added Subsec. (aa) (now (27)) re one-cent vending machines;
P.A. 75-213 added exception in Subsec. (k) (now (11)) and included references to "services" in Subsecs. (a) (now (1)) and
(b) (now (2)); P.A. 75-495 amended Subsec. (c) (now (3)) to state that bottled gas is propane gas; P.A. 75-567 included
references to "services" in Subsecs. (e) (now (5)) and (h) (now (8)); P.A. 75-607 added Subsec. (bb) (now (28)) re ambulance-
type vehicles; P.A. 75-613 added Subsec. (cc) (now (29)) re housing facilities for low and moderate income persons and
families; P.A. 76-390 included vital life support equipment in Subsec. (s) (now (19)); P.A. 76-435 make technical changes;
P.A. 77-46 replaced "crippled" with "handicapped" in Subsec. (s) (now (19)); P.A. 77-266 added Subsec. (dd) (now (30))
re commodities; P.A. 77-370 added Subsec. (ee) (now (31)) re special order printing for use outside state; P.A. 77-395
included sales of steam in Subsec. (c) (now (3)), effective June 20, 1977, and applicable to any sale or furnishing of steam
on or after March 1, 1974; P.A. 77-427 added Subsec. (ff) (now (32)) re vessels sold for use outside state; P.A. 77-457
added Subsec. (gg) (now (33)) re solar collectors; P.A. 78-71 deleted provisions re machinery in Subsec. (r) (now (18))
and added Subsec. (hh) (now (34)) re machinery; P.A. 78-172 clarified exemption re newspapers in Subsec. (f) (now (6));
P.A. 79-33 included sales of walkers in Subsec. (s) (now (19)); P.A. 79-400 added Subsec. (ii) (now (35)) re centers of
service for the elderly; P.A. 79-419 added Subsec. (jj) (now (36)) re motor vehicle driving services; P.A. 79-547 extended
provisions of Subsec. (gg) (now (33)) to apply to solar energy systems rather than just to collectors; P.A. 79-627 added
Subsec. (kk) (now (37)) re fuel for use in high-occupancy commuter vehicles, effective July 1, 1979, and applicable to
sale of fuel with respect to which motor fuel tax is refunded on or after July 1, 1979; P.A. 80-71 repealed Subsec. (g) (now
(7)) re cigarettes; P.A. 80-98 added Subsec. (ll) (now (38)) re special telephone equipment for the deaf or blind; P.A. 80-
406 added Subsec. (mm) (now (39)) re alternative energy systems; P.A. 81-323 added Subsec. (nn) (now (40)) allowing
exemption for sales or use of commercial fishing vessels and machinery or equipment designed exclusively for use in such
vessels; P.A. 81-327 added Subsec. (oo) (now (41)) allowing exemption for sales of services used to determine the effect
on human health of consumption or use of a certain product or substance, effective July 1, 1981, and applicable to services
rendered on or after that date; P.A. 81-399 added Subsec. (pp) (now (42)) allowing exemption from sales and use tax for
aircraft held for resale by certain air carriers and used for purposes other than retention, demonstration or display, but
receipts from uses of such aircraft are not exempt, effective July 1, 1981, and applicable to any purchase of such aircraft
by such air carriers on or after January 1, 1977; P.A. 81-445 added Subsec. (qq) (now (43)) concerning replacement parts
for machinery in enterprise zones, effective July 1, 1982; P.A. 82-25 changed statutory reference in Subsec. (kk) (now
(37)) re the type of high-occupancy commuter vehicle with respect to which sales of fuel for use therein are exempt,
conforming with amendments to Sec. 12-459 and repeal of Sec. 12-460 in said P.A. 82-25, effective July 1, 1982, and
applicable to fuel sales by distributors on or after that date; P.A. 82-192 eliminated requirement in Subsec. (mm) (now
(39)) that exemption is only applicable if such vessel or machinery or equipment was designed exclusively for use in
commercial fishing, substituting in lieu thereof that such vessel or machinery or equipment be used exclusively in commercial fishing; P.A. 82-416 amended Subsec. (ff) (now (32)), which allows exemption from sales tax for sale of or vessel by
a shipbuilder to a nonresident for use outside the state, by allowing the same exemption when sale is made by a marine
dealer; P.A. 82-444 added Subdiv. (rr) (now (44)) re exemption for materials or equipment becoming part of or used in
production or transmission of radio or television broadcasts; P.A. 82-467 amended Subsec. (pp) (now (42)) so that the
exemption thereunder for aircraft held for resale by certain air carriers, which exemption is applicable although such aircraft
is used for purposes other than retention, demonstration or display, shall be applicable irrespective of the classification of
such aircraft for accounting and tax purposes. (Previously it was deemed necessary that such aircraft would have to be
classified as inventory to be eligible for the exemption under this subsection), effective June 8, 1982, and applicable to
use of aircraft by certificated air carriers on or after July 1, 1981; P.A. 83-18 amended Subsec. (l) (now (12)) to delete the
exemption for seeds and fertilizer unless used directly in an agricultural production process, amended Subsec. (m) (now
(13)) to delete the exemption for meals the total charge for which is less than one dollar and repealed former Subsec. (q)
(now (17)) which had exempted meals under one dollar from sales tax; P.A. 83-509 added Subsec. (ss) (now (45)), effective
July 1, 1983, and applicable to sales of gold or silver bullion and gold or silver legal tender occurring on or after said date;
P.A. 84-415 amended the definition of food products in Subsec. (m) (now (13)) by clarifying the meaning of meals which
when served by an eating establishment are not exempt from sales tax as in the case of the food products constituting such
meals and added Subsec. (tt) (now (46)) re home-delivered meals, effective July 1, 1984, and applicable to sales occurring
on or after that date; P.A. 84-507 repealed Subsec. (gg) (now (33)), merging its provisions into Subsec. (mm) (now (39))
and extending the exemption under Subsec. (mm) (now (39)) to July 1, 1986; substitution of numeric Subsec. indicators
for alphabetic Subsec. indicators and of alphabetic Subdiv. indicators for numeric Subdiv. indicators was made editorially
by the Revisors in 1984, and first published in the general statutes revised to 1985; P.A. 85-3 added Subdiv. (47) re
exemption for articles of clothing or footwear, with certain exceptions, costing under fifty dollars, effective March 15,
1985, and applicable to sales of clothing or footwear occurring on or after April 1, 1985; P.A. 85-159 further amended
Subdiv. (47) by changing the applicable price for clothing exempted to seventy-five dollars, effective May 16, 1985, and
applicable to sales occurring on or after October 1, 1985, amended Subdiv. (12) to restore exemption for all seeds and
fertilizer deleted by P.A. 83-18, effective May 16, 1985, and applicable with respect to sales occurring on or after April
1, 1986, and added Subdiv. (48) re exemption of nonprescription drugs and medicines, effective May 16, 1985, and
applicable with respect to sales occurring on or after July 1, 1985; P.A. 85-240 repealed Subdiv. (42) which had exempted
aircraft held for resale by certain air carriers and used for purposes other than retention, demonstration or display; P.A.
85-435 added Subdiv. (49) concerning payments of property taxes under motor vehicle leases, effective July 1, 1985; P.A.
85-462 amended Subdiv. (26) by increasing the maximum allowable sales price for exempt items from two to five dollars,
effective July 1, 1985, and applicable to sales occurring on or after July 1, 1985; P.A. 85-469 revised effective date of P.A.
85-159 but without affecting this section; P.A. 85-513 added Subdiv. (50) providing exemption from sales tax for the lease
or rental of any motion picture film by the owner or operator of a theater for display at such theater, effective July 1, 1985,
and applicable to contracts of lease or rental of motion picture films becoming effective on or after July 1, 1985; P.A.
85-534 applied exemption under Subdiv. (39) to systems utilizing cogeneration technology, extended expiration of said
exemption from July 1, 1986, to July 1, 1991, and added definition of "cogeneration technology"; P.A. 86-120 added new
Subsec., designated as Subsec. (58), providing exemption for sales of services related to personnel, management or research
when company rendering service and recipient are participating in a joint venture for purposes of research and new product
development; P.A. 86-397 added Subsecs. (51), (52), (53), (54), (55) and (56), effective June 11, 1986, and applicable to
sales of meals and certain tangible personal property occurring on or after July 1, 1986, and also added Subsec. (57)
providing exemption from sales tax for items purchased with federal food stamp coupons, effective June 11, 1986, and
applicable to purchases with food stamps on or after October 1, 1986, except as such date may be deferred in accordance
with Sec. 12-412e; P.A. 87-50 amended Subsec. (14) by providing that returnable containers do not include nonrefillable
beverage containers; P.A. 87-119 added Subsec. (59) providing exemption from sales tax for aviation fuel used exclusively
and directly in the experimental testing of any product, effective July 1, 1987, and applicable to sales occurring on or after
that date; P.A. 87-177 amended Subsec. (13) to provide that a meal exempt from sales tax under Subsec. (51) may include
a nonalcoholic beverage which is not a food product, and added a statement as to when a meal is a taxable sale, effective
July 1, 1987, and applicable to sales of meals occurring on or after that date; P.A. 87-238 added Subsec. (60) providing
exemption from sales tax for a motor vehicle purchased but not registered in this state by a person who is not a resident
and does not maintain a permanent place of abode in this state, effective July 1, 1987, and applicable to sales of motor
vehicles occurring on or after that date; P.A. 87-311 amended Subsec. (56) to increase the limit to one hundred dollars and
to include nonprofit adult day care centers, effective July 1, 1987, and applicable to sales occurring on or after that date;
P.A. 87-315 amended Subsec. (48) by adding any medication to be used in a person's eyes for care and treatment of any
disease of the eyes to the list of medicines available without prescription and exempt from sales tax, effective July 1, 1987,
and applicable to sales of medication for diseases of the eye on or after that date; P.A. 87-422 added Subsec. (61) providing
exemption from sales tax for the storage, use or other consumption of ambulances operating in accordance with Sec. 19a-
180, effective April 1, 1988, and applicable to sale of any ambulance on or after that date; July Sp. Sess. P.A. 87-1 added
Subsec. (62) allowing exemption from sales tax for certain sales of services between parent companies and wholly-owned
subsidiaries; P.A. 88-307 amended Subsec. (62) by deleting June 30, 1988, as the date for termination of the exemption
and allowing the exemption to continue without a date for termination; P.A. 88-364 made minor change in wording of
Subsec. (54); P.A. 89-123 amended Subsec. (18) by removing the exemption for certain items used in agricultural production
because of the addition by this act of Subsec. (63) providing exemption for all items sold exclusively for use in agricultural
production, amended Subsec. (34) by removing the exemption for machinery used in agricultural production because of
the addition by this act of Subsec. (63) providing exemption for all items sold exclusively for use in agricultural production,
amended Subsec. (56) by making a technical change in the description of the sale of items to which the exemption applies
and added Subsec. (63) providing exemption for sales of any items for use in agricultural production by a farmer engaged
in such production as a business, with a certain minimum income requirement from such business, and providing for
issuance of an agricultural sales tax exemption permit; P.A. 89-190 amended Subsec. (35) by eliminating the requirement
that elderly service centers qualified for the exemption had to be approved for such purpose by the tax assessor in the
municipality, and accordingly the commissioner of revenue services is authorized to approve such centers for purposes of
the exemption; P.A. 89-251 amended Subsec. (3) to provide the following: (1) Continued exemption for gas and electricity
in the case of residential use, (2) limited exemption for gas and electricity in the case of agricultural production, fabrication
of products to be sold or manufacturing, requiring that at the location of such production, fabrication or manufacturing at
least seventy-five per cent of the gas or electricity consumed is for such purpose, (3) exemption for telephone and cable
television service to remain in effect until January 1, 1990, when such service is to be subject to sales tax, (4) exemption
of charges for electricity not exceeding one hundred fifty dollars per month, if not otherwise exempt and (5) exemption
for gas, water, steam or electricity used in furnishing same to consumers, deleted reference in Subsec. (13) to exemption
for any meal the cost of which is less than two dollars, as provided under Subsec. (51) which is repealed by this act and
amended Subsec. (16) to provide the following: (1) Continued exemption in the case of residential use and (2) limited
exemption in the case of agricultural production, fabrication of products to be sold or manufacturing, requiring that at the
location of such production, fabrication or manufacturing at least seventy-five per cent of the fuel consumed is for heating
in the building used for such production, fabrication or manufacturing; P.A. 90-255 amended Subsec. (26) by increasing
the maximum amount of such exempt sales from five to twenty dollars each; P.A. 90-262 added Subsec. (64) providing
an exemption for the sales, storage, use or other consumption of certain computer related cleaning equipment, effective
June 8, 1990, and applicable to sales occurring on or after July 1, 1990; P.A. 90-295 amended Subsec. (44) by providing
for exemption, in addition to that already allowed under said Subsec. (44), applicable to material or equipment used directly
in production and transmission of programs, on or after October 1, 1986, for purposes of accredited medical or surgical
training; P.A. 90-336 added Subsec. (64) providing an exemption for molds, dies, patterns and sand handling equipment
for metal casting foundries and Subsec. (65) providing an exemption for molds, dies and patterns for pattern shops and
metal casting foundries, effective June 12, 1990, and applicable to purchases and sales occurring on or after April 1, 1985;
P.A. 91-179 added Subdivs. (67), (68) and (69) providing exemptions from sales tax for the sale of a motor vehicle powered
by clean alternative fuel, for equipment used to convert a vehicle to a vehicle powered by clean alternative fuel and for
equipment used in a natural gas filling station, respectively, effective October 1, 1991, and applicable to sales occurring
on or after that date; June Sp. Sess. P.A. 91-3 (1) amended Subsec. (6) to provide that the exemption for newspapers would
apply to subscriptions only, (2) amended Subsec. (44) to narrow the exemption for broadcast materials and equipment, (3)
amended Subsec. (47) to reduce the exemption for clothing from seventy-five to fifty dollars, (4) added Subsecs. (70),
concerning commercial vehicles, (71) and (72), concerning printed materials, and (73), concerning component parts, and
(5) repealed Subsecs. (10), (12), (28), (32), (39) and (61), effective August 22, 1991, and applicable to sales occurring on
or after October 1, 1991; June Sp. Sess. P.A. 91-14 repealed Subsec. (32); P.A. 92-133 amended Subsec. (40) to expand
the definition of commercial vessels to vessels with a certain certification from the United States Coast Guard; P.A. 92-
188 amended Subsecs. (67), (68) and (69) to authorize an exemption from the sales and use tax for vehicles powered by
electricity, effective July 1, 1992, and applicable to sales made on or after July 1, 1992; P.A. 92-193 added Subsec. (74)
providing an exemption for sales of computer and data processing services rendered by a retailer which acquired the
operations of a data processing facility from the customer receiving such services, effective July 1, 1992, and applicable
to sales occurring on or after January 1, 1993; May Sp. Sess. P.A. 92-5 amended Subsec. (71) to make a technical change,
effective June 19, 1992, and applicable to sales occurring on or after July 1, 1992; May Sp. Sess. P.A. 92-17 (1) amended
Subsec. (14) to include returnable dairy product containers, effective June 19, 1991, and applicable to sales occurring on
or after July 1, 1992, (2) amended Subsec. (40) to change the words "coastwide fishing" to "coastwise fishery", effective
June 19, 1992, and applicable to sales occurring on or after October 1, 1991, and (3) added Subsec. (75), concerning
aviation fuel, Subsec. (76), concerning aircraft repair or replacement parts, Subsec. (77), concerning aircraft repair services,
Subsec. (78), concerning materials, tools, fuel, machinery and equipment in an aircraft manufacturing facility, Subsec.
(79), concerning marine fuel, and Subsec. (80), concerning equipment for persons with physical disabilities installed in
motor vehicles, effective June 19, 1992, and applicable to sales occurring on or after July 1, 1992; P.A. 93-44 amended
Subsec. (5) to except any transaction under Subdiv. (o) of Subsec. (2) of Sec. 12-407, effective April 23, 1993; P.A. 93-
74 amended Subsec. (8) to include sales to nonprofit organizations which receive at least seventy-five per cent of their
funding from the state or municipality to provisions of exemption, amended Subsec. (19) by adding custom-made wigs or
hairpieces for persons with medically diagnosed hair loss, hearing aid repairs and apnea monitors to provisions of exemption,
amended Subsec. (27) to eliminate nonprofit requirement, to add rest homes and homes for the aged to qualify for the
exemption and to delete Subdiv. (3) which had required that gift shop staff be provided by a nonprofit auxiliary service
organization, amended Subsec. (44) by adding equipment used for medical or surgical training to provisions of exemption,
and added Subsecs. (82) to (85), inclusive, providing exemption from the sales tax for certain commercial motor vehicles
and buses deriving seventy-five per cent of day's revenue from out-of-state trips, for sales of tangible personal property
and services to The University of Connecticut Educational Properties, Inc. with regard to Connecticut Technology Park
and for sales of certain services to persons eligible to receive permanent total disability benefits under Social Security,
effective May 19, 1993, and applicable to sales occurring on and after January 1, 1994; P.A. 93-122 amended Subsec. (63)
to clarify the qualifications for the exemption for certain property used in agriculture; P.A. 93-199 made Subsecs. (67),
(68) and (69) applicable to sales prior to January 1, 1998, redefined "clean alternative fuel" in Subsec. (67) to include
propane and added reference to electric recharging stations in Subsec. (69), effective July 1, 1993, and applicable to sales
occurring on or after July 1, 1993; P.A. 93-262 authorized substitution of commissioner and department of social services
for commissioner and department on aging in Subsec. (56), effective July 1, 1993; P.A. 93-332 amended Subsec. (5) by
exempting from the sales and use tax nonprofit nursing homes, nonprofit rest homes and nonprofit homes for the aged,
amended Subsec. (8) by deleting language added in section 28 of public act 93-74 and providing that in determining
exemption under the provisions of said Subsec. funds received by 501(c)(3) organizations shall be considered private
donations, and amended Subsec. (74) by making existing language Subdiv. (A) and adding a Subdiv. (B) exempting
computer and data processing services to a customer by a retailer which acquired the operations of the data processing
facility from the retailer described in Subdiv. (A) from the sales and use tax, effective June 25, 1993, and applicable to
sales occurring on and after July 1, 1993; P.A. 93-360 amended Subsec. (4) to clarify exemption of prescription medicine
and apply the exemption to medicine provided for no consideration and materials which become an ingredient or component
part of medicine, effective July 1, 1993, and applicable to sales and the storage, use or other consumption occurring on or
after January 1, 1990, and added Subsec. (81) re machinery, equipment, tools and materials used in fabrication of optical
lenses, effective July 1, 1993, and applicable to sales occurring on or after July 1, 1993; P.A. 93-361 amended Subsec. (1)
by making existing Subsec. a Subdiv. (A) and adding a new Subdiv. (B) exempting sale of personal property or services
used to develop property which the state is under contract to purchase through a long-term financing contract from the
sales tax, effective July 1, 1993; Sept. Sp. Sess. P.A. 93-1 amended Subsec. (1) by adding new Subdiv. (C) exempting sale
of personal property or services used to construct or equip the stadium facility, the stadium facility site, the practice facility
or the practice facility site, effective September 28, 1993; P.A. 94-9 amended Subsec. (5) to delete reference to Subdiv.
(o) and add reference to Subdiv. (i) of Sec. 12-407(2), effective April 1, 1994; P.A. 94-82 added Subdiv. (86) providing
an exemption to sales of services by an affiliate participating in the community economic development program established
pursuant to Sec. 8-240k to another affiliate participating in said program, effective May 25, 1994; P.A. 94-175 amended
Subsec. (5) to add reference to Subpara. (GG), (Revisor's note: On and after July 1, 1996, this subparagraph is relettered
as (FF)), effective June 2, 1994, and applicable to sales on and after April 1, 1994, and added new Subsec. (87) concerning
sales of items that are eligible benefits under federal Title XVIII or Title XIX or CHAMPUS, effective June 1, 1994, and
applicable to sales on and after April 1, 1994; May Sp. Sess. P.A. 94-4 amended (1) Subsec. (6) to include publications
which only contain puzzles, effective July 1, 1996, and applicable to sales occurring on or after said date, (2) in Subsec.
(34) specified that "machinery" is limited to equipment directly related to manufacturing processes, effective June 9, 1994,
and applicable to income years commencing on or after July 1, 1989, (3) added new Subsecs. concerning water companies
and safety apparel, respectively, effective July 1, 1996, and applicable to sales occurring on or after said date and revised
effective date of P.A. 94-175 but without affecting this section (Revisor's note: New Subsecs. enacted by May Sp. Sess.
P.A. 94-4 were originally codified in Connecticut General Statutes, Revision of 1958, revised to 1995, as Subsecs. (88)
and (89), but because of their delayed effective date were redesignated by the Revisors as Subsecs. (90) and (91) to
accommodate intervening legislation); P.A. 95-160 (1) amended Subsec. (19) to add repair services, effective July 1, 1995,
applicable to sales occurring on or after that date, (2) amended Subsec. (24) to include book sales by library support groups,
amended Subsec. (27) to add sales of food products from vending machines, and amended Subsec. (44) to add Subpara.
(B) re motion picture and video production and sound recording equipment, effective July 1, 1997, and applicable to sales
occurring on or after that date, (3) amended Subsec. (45) to add rare and antique coins, effective July 1, 1996, and applicable
to sales occurring on or after that date, (4) amended Subsec. (74) to add new Subpara. (B) re computer and data processing
services rendered to a customer by a retailer which acquired the data processing operations from the customer, effective
July 1, 1995, and applicable to sales occurring on or after that date, (5) amended Subsec. (79) to add vessels primarily used
in interstate commerce, and added new Subdiv. (92) re projects of the Connecticut Resource Recovery Authority, effective
July 1, 1997, and applicable to sales occurring on or after that date and (6) changed effective date of May Sp. Sess. P.A.
94-4, S. 19, which added new Subsecs. (88) and (89) (codified by the Revisors as Subsecs. (90) and (91) because of the
delayed effective date), to July 1, 1997, and applicable to sales on or after that date; P.A. 95-359 (1) amended Subdiv. (8)
by deleting reference to charitable and religious organizations and substituting requirement that organization is exempt
under Section 501(a) of the Internal Revenue Code of 1986 and that the U.S. Treasury Department has expressly determined
by letter that the organization is an organization described in Section 501(c)(3) or (13) of the Internal Revenue Code and
set out the exemption requirements, (2) amended Subdiv. (19) to extend exemption for oxygen, blood and blood plasma
to animals as well as humans, (3) repealed Subdiv. (25) re unregistered motor vehicles in interstate commerce, (4) amended
Subdiv. (63) to add conditions under which department may issue a farmer exemption permit when a farmer's gross income
from agricultural production is less than two thousand five hundred dollars, (5) amended Subdiv. (70) to require vehicle
purchased under exemption to be operated actively and exclusively for the carriage of interstate freight during the one-
year period commencing with the date of purchase and added Subpara. (B) re qualifications for exemption under Subpara.
(A)(ii), (6) amended Subdivs. (82) and (83) to require that the vehicles purchased under exemption derive seventy-five
per cent of their revenue from their days in service from out-of-state trips or trips crossing state lines during the one-year
period commencing with the date of purchase and (7) amended Subdiv. (85) to make technical changes and added requirement that recipient is currently receiving disability benefits, all changes effective July 13, 1995, and applicable to sales
occurring on or after July 1, 1995, and July 1, 1996; P.A. 96-139 changed effective date of P.A. 95-160 but without
affecting this section; P.A. 96-172 added new Subdiv. (88) re machinery, equipment, tools and materials used in commercial
processing of photographic film and paper, effective July 1, 1996, and applicable to sales occurring on or after said date;
P.A. 96-222 amended Subsec. (70) to insert "or its successor agency" after "Interstate Commerce Commission", effective
July 1, 1996; P.A. 96-252 added Subsec. (89) re machinery, equipment, tools, materials, supplies and fuel used in the
biotechnology industry, effective July 1, 1996, and applicable to sales made on or after that date; P.A. 97-112 replaced
"home for the aged" with "residential care home"; P.A. 97-243 amended Subsec. (29) to add sales of services used and
consumed in development, construction, rehabilitation, renovation, repair and operation of housing facilities for low and
moderate income families, to add requirements re letter of determination from the commissioner and to make technical
changes, amended Subsec. (62) to delete expense allocation requirement and to make technical changes, amended Subsecs.
(71) and (72) to change use requirement from exclusive to predominant, and amended Subsec. (85) to delete Subpara.
references and insert landscaping and horticulture services, window cleaning services and maintenance services, effective
June 24, 1997, and applicable to sales occurring on or after October 1, 1997, and further amended Subsec. (79) to clarify
exemption of fuels for use in vessel primarily engaged in interstate commerce, effective June 24, 1997, and applicable to
sales occurring on or after July 1, 1997; P.A. 97-295 amended Subsec. (74) to change reference from Sec. 12-217m to Sec.
12-217w, effective July 8, 1997, and applicable to income years commencing on or after January 1, 1998; P.A. 97-315
amended Subdiv. (29) to add provisions re services described in Subsec. (2) of Sec. 12-407, effective July 10, 1997, and
applicable to sales occurring on and after September 1, 1995; P.A. 97-316 amended Subsec. (19) to exempt oxygen supply
equipment used for animals and Subsec. (44) to add Subpara. (C) re broadcast equipment, effective July 10, 1997, and
applicable to sales occurring on or after July 1, 1997, amended Subsecs. (76) and (77) to add aircraft having a maximum
certificated takeoff weight of six thousand pounds or more, effective July 10, 1997, and applicable to sales occurring on
or after October 1, 1997, added new Subsec. (93) re sales of tangible personal property or services to tourism districts,
effective July 10, 1997, and applicable to sales occurring on or after May 28, 1996, added new Subsec. (94) re sales by
nonprofit organizations at certain events up to five days a year, effective July 10, 1997, and applicable to sales occurring
on or after June 1, 1997, added new Subsecs. (95) to (98) re property or services to be incorporated, used or consumed in solid
waste to energy facilities, sales of vegetable seeds, yarn and tangible personal property by historical societies, respectively,
effective July 10, 1997, and applicable to sales occurring on or after July 1, 1997, and added new Subsec. (99) re aircraft
having a maximum certificated takeoff weight of six thousand pounds or more, effective July 10, 1997, and applicable to
sales occurring on or after October 1, 1997; June 18 Sp. Sess. P.A. 97-4 added new Subsec. (100) re low and moderate
income housing facilities located in Qualified Census Tracks or Difficult Development Areas, effective June 30, 1997,
and applicable to sales occurring on or after January 1, 1997; June 18 Sp. Sess. P.A. 97-11 changed effective date of June
18 Sp. Sess. P.A. 97-4 but without affecting this section; P.A. 98-110 amended Subsec. (6)(B) to delete subscription sales,
effective May 19, 1998, and applicable to sales occurring on or after July 1, 1998, and amended Subsec. (34) to exclude
component parts and contrivances whether purchased separately or in conjunction with a machine, effective May 19, 1998,
and applicable to sales occurring on or after January 1, 1999; P.A. 98-262 amended Subsec. (13) to remove vending
machines from the definition of "eating establishments", effective June 8, 1998, and revised effective date of P.A. 97-295,
but without affecting this section; Dec. Sp. Sess. P.A. 98-1 amended Subdiv. (1) to delete existing language in Subpara.
(C) and insert new provisions re the stadium facility and site, training facility and site, infrastructure improvements and
the NFL pavilion, effective January 12, 1999; P.A. 99-173 amended Subdiv. (19) to exempt inclined chairlifts, repair and
replacement parts for wheelchairs and other vital life function equipment, and artificial limbs and to make technical changes,
amended Subdiv. (29) to make technical changes, to designate existing provisions as Subpara. (A) and expand the exemption
for certain goods and services used or consumed in the construction, development and rehabilitation of housing facilities
for low and moderate income housing to projects run by housing authorities and to add Subpara. (B) re services for mutual
housing, amended Subdiv. (48) to expand the list of drugs and medicines to which the exemption applies, amended Subdiv.
(54) to exempt repair and replacement parts for glucose monitoring devices, amended Subdiv. (58) to make technical
changes, to add "and the marketing and support thereof" in Subpara. (c)(i), and to allow exemption for thirty years of joint
venture in existence prior to January 1, 1986, within the aircraft industry, amended Subdiv. (60) to add vessels, and amended
Subdiv. (62) to make technical changes, to expand exemption to include sales of services between noncorporate business
entities when one hundred per cent wholly-owned and to eliminate the tax on telecommunication and cable services rendered
between parent companies and wholly-owned subsidiaries, effective June 23, 1999, and applicable to sales occurring on
or after July 1, 1999, amended Subdivs. (67), (68) and (69) to extend the sunset for exemption to January 1, 2002, effective
June 23, 1999, and applicable to sales occurring on or after January 1, 1998, amended Subdiv. (80) to exempt repair and
replacement parts, effective June 23, 1999, and applicable to sales occurring on or after July 1, 1999, and added new
Subdivs. (101) to (107), inclusive, re fire arm safety devices, bicycle helmets, machinery, equipment and supplies of freight
railroads, calibration services, shoe repair services, "call before you dig" services and diesel fuel used in portable generators,
respectively, effective June 23, 1999, and applicable to sales occurring on or after July 1, 1999; P.A. 99-241 amended
Subdiv. (1) to delete stadium facility site and training facility site and add convention center site, sportsplex site and parking
facilities site, effective July 1, 1999; P.A. 00-140 amended Subdiv. (1)(C) to delete references to former convention center
site, sportsplex site and parking facilities site and add references to the Adriaen's Landing and the stadium facility site,
effective May 2, 2000; P.A. 00-170 (1) amended Subdiv. (27) to exempt sales of items for fifty cents or less from vending
machines, amended Subdiv. (47) to exempt articles of clothing or footwear which are less than seventy-five dollars and
to make technical changes and added Subdivs. (108) to (110), inclusive, re child car seats, college textbooks and cars with
mileage ratings of at least fifty miles per gallon, respectively, effective July 1, 2000, and applicable to sales occurring on
or after that date, and (2) amended Subdiv. (19) to include exemptions for closed circuit television equipment used as a
reading aid, canes and medically necessary support hose, amended Subdiv. (55) to exempt caskets used for burial and
added Subdiv. (111) re smoking cessation products and Subdiv. (112) re certain high-speed telecommunications equipment,
effective July 1, 2001, and applicable to sales occurring on or after that date; P.A. 00-174 (1) amended Subsec. (60) to
delete requirement for an affidavit for certain information required to be submitted and to add provisions re declaration,
effective July 1, 2000, and (2) amended Subdiv. (5) to make a technical change, amended Subdiv. (9) to exempt candy,
confectionery and nonalcoholic beverages sold at educational institutions and certain health care and adult living facilities,
amended Subdiv. (15) to specify that the exemption for motor vehicle fuels is for fuel sold for use in licensed motor
vehicles, whether or not the tax under Ch. 221 has been paid or for any other use if said tax has been paid but not refunded,
amended Subdiv. (40) to divide existing provisions into Subparas. (A) and (C), to coordinate requirements for the exemption
under this section with the taxpayer's federal return in Subpara. (A) and to add Subpara. (B) allowing certain start-up
commercial fishermen to avail themselves of the provisions of this section, amended Subdiv. (48) to delete requirement
that exempted drugs and medicines be for use in or on the human body and amended Subdiv. (63) to divide existing
provisions into Subparas. (A) to (D), inclusive, to make technical changes, to add provisions re declaration and delete
requirement re notarization in Subpara. (B), to change "five years" to "two years" in Subpara. (D) and to add Subpara.
(E), to facilitate issuance of permits for certain start-up farmers, effective October 1, 2000, and applicable to sales made
on or after that date; P.A. 00-196 made a technical change in Subdiv. (5). (Revisor's note: The beginning sentence of
Subdiv. (13) which reads "Sales of food products for human consumption", that had been carried as a bold face Subdiv.
catchline in the general statutes, was re-instated by the Revisors for the 2001 revision as part of the Subdiv. text, to reflect
Sec. 1 of P.A. 87-177, and the Subdiv. catchline revised to read "Food products".)
Subsec. (21):
See Sec. 22a-423 for definitions pertaining to water pollution control.
The express mention in a statute of one exemption precludes reading others into it. 134 C. 295. Cited. 168 C. 597. Cited.
174 C. 419, 422. Cited. 176 C. 604, 610. Cited. 213 C. 365, 367, 368, 371. Cited. 216 C. 17, 18, 25. Cited. 222 C. 49, 61.
Cited. 231 C. 315, 320, 321, 323, 325, 326. Cited. 238 C. 761.
Cited. 44 CS 328.
Subsec. (1) (Formerly Subsec. (a)):
Goods procured by plaintiff but with title passing immediately to government held exempt. 145 C. 161. Cited. 198 C.
413, 418. Cited. 210 C. 401, 406. Cited. Id., 413, 417. Cited. 231 C. 315, 325. Agent of a tax-exempt municipality is eligible
for the exception afforded its disclosed principal. 236 C. 613, 614, 617, 618, 620−622, 624. Cited. 238 C. 761. Former
Subsec. (a) cited. Id. Sec. 2096(a)(1949) cited. Id.
Where plaintiff purchased facilities to be turned over to the federal government under certain conditions, and no relationship of agency was shown, it was not entitled to exemptions. 19 CS 333. Cited. 39 CS 234, 239. Cited. 43 CS 253, 255.
Subsec. (2) (Formerly Subsec. (b)):
Cited. 231 C. 315, 325.
Cited. 18 CS 286. See note under subsection (a).
Subsec. (3) (Formerly Subsec. (c)):
Subdiv. (B) cited. 231 C. 315, 325.
Subsec. (5) (Formerly Subsec. (e)):
Cited. 231 C. 315, 325.
Subsec. (6) (Formerly Subsec. (f)):
Preprints of advertising matter do not qualify as "newspapers" within meaning of this statute. 183 C. 566, 569, 570,
573, 575, 578, 579. Cited. 221 C. 166−168, 170−172, 176, 177, 183.
Subdiv. (B) cited. 44 CS 472.
Subsec. (8) (Formerly Subsec. (h)):
In order to achieve "charitable organization" status, organization must not only have a charitable purpose but must
achieve its purpose through funds derived from benevolence of private sources. 170 C. 556, 557, 560. Cited. 228 C. 375,
382. Cited 231 C. 315, 325. Cited. Id., 378−380. Cited. 236 C. 613, 623. Cited. 238 C. 761.
Cited. 9 CA 448, 457.
Cited. 41 CS 469, 471, 483. Cited. 43 CS 253−255, 260.
Subsec. (9)(Formerly Subsec. (i)):
Cited. 242 C. 599.
Subsec. (11) (Formerly Subsec. (k)):
Critical factor is whether intent is to buy an individual's skills or a tangible end product of those skills. Personal service
exemption inapplicable to salable tangible end product. 176 C. 604, 607, 608, 610, 612. Cited. 202 C. 412, 427, 428. Cited.
231 C. 315, 325.
Subsec. (12) (Formerly Subsec. (l)):
Cited. 221 C. 751, 755, 766.
Subsec. (13) (Formerly Subsec. (m)):
Cited. 174 C. 419, 421, 422. Cited. 242 C. 599.
Just because restaurant does not sell coleslaw by weight does not mean it is not a bulk sale and exempt from sales tax.
47 CA 694. Three or more pieces of fish as "take-out" constitutes a meal, the sale of which is therefore subject to sales
tax. Id.
Subsec. (18) (Formerly Subsec. (r)):
Under former statute exempting such materials used in an industrial plant "in the process of the manufacture of tangible
personal property to be sold" word "process" indicates an intention to include any use made of property as a necessary
preliminary to delivery of finished product. 145 C. 176. Raw materials used directly in manufacture of products for sale,
as distinguished from their use in procuring plaintiff's engineering services, held exempt. Id. Cited. 178 C. 493, 496,
497, 501−503. Preprints of advertising matter do not become ingredient or component part of newspaper thus precluding
applicability of statutory exemption. 183 C. 566, 569, 575, 576, 578, 579. Cited. 204 C. 122. Cited. 205 C. 761, 763, 764,
766, 767. "Clearwells" are exempt from sales and use tax under this section 206 C. 337, 340, 345, 346. Cited. 212 C. 454,
455. Cited. 220 C. 749, 758, 759.
Cited. 24 CA 72, 74, 76, 78.
Cited. 30 CS 309.
Subsec. (19) (Formerly Subsec. (s)):
Gross receipts derived by dental laboratories from sales of dentures to licensed dentists are exempt from sales tax. 148
C. 94.
Subsec. (21) (Formerly Subsec. (u)):
Cited. 231 C. 315, 324.
Subsec. (22) (Formerly Subsec. (v)):
Cited. 231 C. 315, 324.
Subsec. (24) (Formerly Subsec. (x)):
Cited. 231 C. 378−380.
Cited. 43 CS 253−255, 258, 260.
Subsec. (29) (Formerly Subsec. (cc)):
Cited. 228 C. 375, 382. Cited. 231 C. 315, 324.
Subsec. (34) (Formerly Subsec. (hh)):
"A component part of a machine must constitute a machine in and of itself or be purchased in conjunction with a
machine in order to be exempt" from sales and use tax. 204 C. 122−130, 133−136. Cited. Id., 137, 138, 141−143, 147.
Cited. 205 C. 761, 763, 766. Transformation of raw water into finished potable water at company's treatment plant does
not constitute "manufacturing" within meaning of this section. 206 C. 337, 340, 341, 344, 346. Cited. 212 C. 454, 455,
457, 459. Cited. 213 C. 365−368, 371. Cited. 220 C. 749, 759, 761, 762.
Cited. 24 CA 72, 78, 80.
Subsec. (35) (Formerly Subsec. (ii)):
Cited. 231 C. 315, 325.
Subsec. (36) (Formerly Subsec. (jj)):
Cited. 231 C. 315, 325.
Subsec. (41) (Formerly Subsec. (oo)):
Cited. 231 C. 315, 325.
Subsec. (51):
Cited. 242 C. 599.
Subsec. (55):
Cited. 231 C. 315, 324.
Subsec. (58):
Cited. 231 C. 315, 325.
Subsec. (62):
Cited. 231 C. 315, 325.
Subsec. (68):
Cited. 231 C. 315, 324.
Subsec. (73):
Cited. 231 C. 315, 324.
Subsec. (74):
Cited. 231 C. 315, 325.
Subsec. (76):
Cited. 231 C. 315, 324.
Subsec. (77):
Cited. 231 C. 315, 325.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 75-613, S. 3, 4; P.A. 82-472, S. 182, 183.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 85-3, S. 2, 3; 85-159, S. 9, 19; 85-469, S. 4, 6.)
History: P.A. 85-3 effective March 15, 1985, and applicable to sales of clothing or footwear occurring on or after April
1, 1985; P.A. 85-159 made technical changes; P.A. 85-469 revised effective date of P.A. 85-159 but without affecting
this section.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) On or after July 1, 1986, the resale of any mobile manufactured home located
in a mobile manufactured home park licensed pursuant to chapter 412 or located on a
single-family lot as a permitted nonconforming use or as otherwise permitted by the
zoning regulations of the municipality in which the home is located, and on or after July
1, 1993, the resale of any modular home, shall be exempt from the sales and use taxes
imposed by this chapter and shall be taxed as a conveyance of realty in accordance with
the provisions of chapter 223.
(P.A. 85-512, S. 8; P.A. 86-310, S. 2, 4; P.A. 88-364, S. 20, 123; P.A. 93-332, S. 3, 42.)
History: P.A. 86-310 added provision to Subsec. (a) that sale of new mobile manufactured home by a manufacturer
shall be subject to sales tax and for purposes of such tax, the sales price shall be deemed to be seventy per cent of the
manufacturer's price applicable to such sale, effective July 1, 1986, and applicable to the assessment year in any municipality
commencing October 1, 1986, and each assessment year thereafter; P.A. 88-364 in Subsec. (a) corrected the word "loan"
to read "load"; P.A. 93-332, S. 3, amended Subsec. (a) to apply to sales of new modular or prefabricated homes and defined
"new modular or prefabricated home" and amended Subsec. (b) to apply with respect to resale of modular homes, effective
June 25, 1993, and applicable on or after July 1, 1993.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 86-397, S. 2, 10; P.A. 88-307, S. 3, 4; P.A. 89-123, S. 12; P.A. 97-243, S. 55, 67; P.A. 98-110, S. 26, 27.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) In accordance with the provisions of Section 1505 of the federal Food Stamp
Act of 1985, and notwithstanding the provisions of section 17b-8, the Commissioner
of Social Services shall prepare for submission by the Governor to the United States
Department of Agriculture, a request for waiver of the requirements under said Section
1505 concerning collection of state sales tax on the sale of certain items which may be
purchased with food stamp coupons, including the following as reasons for such waiver,
(1) the adverse and disruptive effect of implementation of such requirements by October
1, 1986, on the food stamp program and (2) the inadequate time for retail stores to
implement the necessary changes in sales tax collection procedure. In the event the
United States Department of Agriculture rejects, or has failed to approve, by August 1,
1986, the application for waiver to be submitted as provided in this subsection, the
Commissioner of Revenue Services, in consultation with the Commissioner of Social
Services, shall prepare and submit a plan, implementing by October 1, 1986, said provisions of Section 1505 of the Food Stamp Act of 1985, to the joint standing committee
having cognizance of matters related to finance, revenue and bonding. Within thirty days
after receipt of such plan, said joint standing committee shall advise the Commissioner of
Revenue Services, of its approval, denial or modifications, if any, of such plan. The
Commissioner of Revenue Services shall take any action necessary to implement such
plan in accordance with the authority under section 12-426.
(c) In the event such request for waiver of requirements in Section 1505 of the
Food Stamp Act of 1985, submitted in accordance with subsection (b) of this section,
is approved by the United States Department of Agriculture prior to October 1, 1986,
subsection (57) of section 12-412 shall be applicable with respect to such sales occurring
on or after the date when waiver of said requirements is terminated, as acknowledged
by the Commissioner of Revenue Services, and said commissioner shall, not less than
sixty days prior to the date of termination of such waiver, take such action as deemed
necessary to implement compliance with requirements in said Section 1505 of the Food
Stamp Act of 1985, as of the date of such termination.
(P.A. 86-397, S. 9, 10; P.A. 93-262, S. 1, 87.)
History: P.A. 93-262 authorized substitution of commissioner of social services for commissioner of income maintenance, effective July 1, 1993.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) Any sales tax which has been paid to the state as a result of such sales of services
rendered in said period December 1, 1981, to June 30, 1987, inclusive, shall be subject
to refund to the corporation from which such payment was received. The Commissioner
of Revenue Services shall establish a procedure for submission of claims related to such
refunds, including preparation of a form appropriate for inclusion of such information
as may be necessary in determining the validity of such claim. When such form is
available for distribution the commissioner shall implement a notification procedure
for corporations that may be eligible for such refund. Such notification shall include
dates for commencement and termination of a period, not exceeding ninety days as
established by the commissioner, during which such claims for refund may be submitted.
The commissioner shall notify each applicant for refund by mail as to approval or disapproval of such claim. Refund of such tax to any taxpayer whose application is approved
with respect to such tax paid in the period July 1, 1982, to June 30, 1987, inclusive, shall
be made not later than June 30, 1988. Refund of such tax paid in the period December 1,
1981, to June 30, 1982, inclusive, may not be allowed unless the corporation (1) paid
the tax under protest or (2) filed a claim for refund prior to July 31, 1985. The commissioner shall not be required to notify any applicant for refund as to approval or disapproval with respect to any claim for refund of tax paid in the period December 1, 1981,
to June 30, 1982, inclusive. Any taxpayer whose application for refund has been disapproved may apply to the commissioner for a hearing in the manner allowed under section
12-421 for any taxpayer aggrieved by action of the commissioner in fixing the amount
of any tax.
(July Sp. Sess. P.A. 87-1, S. 2, 9; P.A. 88-307, S. 2, 4.)
History: P.A. 88-307 amended the exemption from sales tax for certain services rendered in the period July 1, 1982,
to June 30, 1987, inclusive, to be applicable additionally to such services in the period December 1, 1981, to June 30, 1982,
inclusive, and added provisions pertaining to refund of tax paid for services rendered in such period.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 87-445, S. 1, 2.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 89-251, S. 201, 203.)
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(b) As used in this section: (1) "Manufacturing" means the activity of converting
or conditioning tangible personal property by changing the form, composition, quality
or character of the property for ultimate sale at retail or use in the manufacturing of a
product to be ultimately sold at retail. Changing the quality of property shall include
any substantial overhaul of the property that results in a significantly greater service life
than such property would have had in the absence of such overhaul or with significantly
greater functionality within the original service life of the property, beyond merely
restoring the original functionality for the balance of the original service life; (2) "fabricating" means to make, build, create, produce or assemble components or tangible personal property so that they work in a new or different manner; (3) "processing" means
the physical application of the materials and labor necessary to modify or change the
characteristics of tangible personal property; (4) "machinery" means the basic machine
itself, including all of its component parts and contrivances such as belts, pulleys, shafts,
moving parts, operating structures and all equipment or devices used or required to
control, regulate or operate the machinery, including, without limitation, computers
and data processing equipment, together with all replacement and repair parts therefor,
whether purchased separately or in conjunction with a complete machine, and regardless
of whether the machine or component parts thereof are assembled by the taxpayer or
another party; (5) "equipment" means any device separate from machinery but essential
to a manufacturing, processing or fabricating process; and (6) "measuring or testing"
includes both nondestructive and destructive measuring or testing, and the alignment and
calibration of machinery, equipment and tools, in the furtherance of the manufacturing,
processing or fabricating of tangible personal property.
(c) The gross receipts from the sale of and the storage, use and consumption in this
state of the items set forth in subsection (a) of this section shall be exempt from the
taxes imposed by this chapter, to the following extent: (1) For sales made on or after
January 1, 1993, and prior to July 1, 1993, ten per cent of the gross receipts from such
items; (2) for sales made on or after July 1, 1993, and prior to July 1, 1994, twenty per
cent of the gross receipts from such items; (3) for sales made on or after July 1, 1994,
and prior to July 1, 1995, thirty per cent of the gross receipts from such items; (4) for
sales made on or after July 1, 1995, and prior to July 1, 1996, forty per cent of the gross
receipts from such items; and (5) for sales made on or after July 1, 1996, fifty per cent
of the gross receipts from such items.
(d) The burden of proving that an item is subject to the exemption set forth in this
section is upon the person who makes the sale unless he takes from the purchaser a
certificate to the effect that the property is subject to such exemption. The certificate
relieves the seller from the burden of proof only if taken in good faith by the seller.
The certificate shall be signed by and bear the name and address of the purchaser. The
certificate shall be substantially in such form as the commissioner prescribes.
(e) If a purchaser who gives a certificate makes any use of the property other than
the purposes set forth in this section, the use shall be deemed a use by the purchaser in
accordance with this chapter, as of the time the property is first used by him, and the
property shall be taxable to such purchaser in accordance with this chapter.
(P.A. 92-193, S. 6, 8; P.A. 94-175, S. 29, 32; May Sp. Sess. P.A. 94-4, S. 80, 85; P.A. 95-160, S. 64, 69; 95-359, S. 8,
19; P.A. 97-243, S. 26, 67.)
History: P.A. 92-193 effective July 1, 1992, and applicable to sales occurring on or after January 1, 1993; P.A. 94-175
made technical changes in Subsecs. (a) and (b), effective June 2, 1994; May Sp. Sess. P.A. 94-4 revised effective date of
P.A. 94-175 but without affecting this section; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without
affecting this section; P.A. 95-359 amended Subsec. (a) to make technical change, effective July 13, 1995; P.A. 97-243
amended Subsecs. (d) and (e) to delete reference to certificate number and services, effective June 24, 1997.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 95-327, S. 1, 10; P.A. 96-172, S. 1, 3; P.A. 98-110, S. 10, 27.)
History: P.A. 95-327, S. 1 effective July 1, 1995, and applicable to sales occurring on or after that date; P.A. 96-172
applied provisions to motor bus parts and defined "motor bus", effective July 1, 1996, and applicable to sales occurring
on or after said date; P.A. 98-110 added proviso that the retailer must collect the tax on the purchase price when the core
component or part is returned and refund the tax on the amount allowed on the returned component or part, effective May
19, 1998, and applicable to sales occurring on or after January 1, 1999.
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) Property purchased from United States. The storage, use or other consumption in this state of property purchased from any incorporated agency or instrumentality
of the United States, except (a) any property reported to the Surplus Property Board of
the United States or any successor thereto, as surplus property by any owning agency;
and (b) any property included in any contractor inventory, is exempted from the use
tax. "Surplus property", "owning agency", and "contractor inventory" as used in this
section have the meanings ascribed to them in that act of the Congress of the United
States known as the "Surplus Property Act of 1944".
(3) Purchase brought into state by resident. The use tax shall not apply to the
purchase of any articles of tangible personal property which have been brought into this
state on the person of a resident of this state when the purchase price of the same does
not exceed twenty-five dollars; provided such purchase shall be for personal use or
consumption in this state and not for use or consumption in carrying on a trade, occupation, business or profession.
(4) Property donated to governmental entity or tax-exempt organization. The
use tax shall not apply to the purchase of any articles of tangible personal property by
a retailer for resale, if those articles are subsequently withdrawn from inventory and
donated by the retailer to (A) the United States, the state of Connecticut or any of the
political subdivisions thereof, or its or their respective agencies, or (B) any organization
that is exempt from federal income tax under Section 501(a) of the Internal Revenue
Code of 1986, or any subsequent corresponding internal revenue code of the United
States, as from time to time amended, and that the United States Treasury Department
has expressly determined, by letter, to be an organization that is described in Section
501(c)(3) of said internal revenue code.
(1949 Rev., S. 2097; June, 1955, S. 1169d; P.A. 75-213, S. 34, 53; P.A. 00-174, S. 13, 83.)
History: P.A. 75-213 added references to "acceptance" and "services" in Subsec. (1); P.A. 00-174 added Subdiv. (4)
re exemption for items donated to the government or to charity, effective October 1, 2000, and applicable on or after that date.
Cited. 43 CA 744.
Subsec. (1):
Cited. 211 C. 246, 247, 253−255.
Cited. 43 CA 744.
Cited. 44 CS 1, 3, 4−7.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 83-455, S. 1, 4.)
History: P.A. 83-455 effective July 1, 1983, and applicable to such use of vessels occurring on or after said date.
Cited. 44 CS 1, 7.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) There shall be allowed a credit to such direct pay permit holder in an amount
equal to the amount of a qualified investment, as defined in subsection (c) of this section,
that is made on or after July 1, 2000, against the use tax liability that is incurred under
this chapter by such holder in making purchases on or after July 1, 2000, of computer
equipment to be used in this state in electronic commerce. The total amount of such
credits allowed under this section shall not exceed two million dollars in the aggregate.
No credit shall be allowed under this section unless the Commissioner of Higher Education certifies, in a manner satisfactory to the Commissioner of Revenue Services, that
a qualified investment has been made by the direct pay permit holder and that projects
related to such investment have been completed. The Commissioner of Revenue Services may adopt regulations, in accordance with the provisions of chapter 54, which
prescribe the procedures for the direct pay permit holder to claim the credit allowed
under this section.
(c) For purposes of this section, "qualified investment" means resources, including,
but not limited to, cash, property or services provided by a direct pay permit holder to
a public or private college or university in this state, for the design, planning, construction
or renovation of buildings or classrooms, the acquisition of computer equipment or the
acquisition of other property or licenses necessary for operation of computer programs
which will be used in the instruction of students in business studies related to electronic
commerce or in work force development programs.
(P.A. 00-170, S. 21, 42.)
History: P.A. 00-170 effective July 1, 2000, and applicable to sales occurring on or after that date.
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) Return. On or before the last day of the month following each monthly or
quarterly period, as the case may be, a return for the preceding period shall be filed with
the commissioner in such form as the commissioner may prescribe. For purposes of the
sales tax a return shall be filed by every seller. For purposes of the use tax a return shall
be filed by every retailer engaged in business in the state and by every person purchasing
services or tangible personal property, the storage, acceptance, consumption or other
use of which is subject to the use tax, who has not paid the use tax due a retailer required
to collect the tax, except that every person making such purchases for personal use or
consumption in this state, and not for use or consumption in carrying on a trade, occupation, business or profession, need file only one use tax return covering purchases during
a calendar year. Such return shall be filed and the tax due thereon paid on or before the
fifteenth day of the fourth month succeeding the end of the calendar year for which such
return is filed. Returns shall be signed by the person required to file the return or by his
authorized agent but need not be verified by oath, provided a return required to be filed
by a corporation shall be signed by an officer of such corporation.
(3) Contents of return. For purposes of the sales tax the return shall show the gross
receipts of the seller during the preceding reporting period. For purposes of the use tax,
in case of a return filed by a retailer, the return shall show the total sales price of the
services or property sold by him, the storage, acceptance, consumption or other use of
which became subject to the use tax during the preceding reporting period; in case of a
return filed by a purchaser, the return shall show the total sales price of the service or
property purchased by him, the storage, acceptance, consumption or other use of which
became subject to the use tax during the preceding reporting period. The return shall
also show the amount of the taxes for the period covered by the return in such manner
as the commissioner may require and such other information as the commissioner deems
necessary for the proper administration of this chapter. The Commissioner of Revenue
Services is authorized in his discretion, for purposes of expediency, to permit returns
to be filed in an alternative form wherein the person filing the return may elect to report
his gross receipts, including the tax reimbursement to be collected as provided for herein,
as a part of such gross receipts or to report his gross receipts exclusive of the tax collected
in such cases where the gross receipts from sales have been segregated from tax collections. In the case of the former, ninety-four and three-tenths per cent of such gross
income may be considered to be the gross receipts from sales exclusive of the taxes
collected thereon.
(4) Filing return. Returns, together with the amount of the tax due thereon, shall
be filed with the Commissioner of Revenue Services.
(5) Return periods. The commissioner, if he deems it necessary in order to insure
payment to or facilitate the collection by the state of the amount of taxes, may permit
or require returns and payment of the amount of taxes for other than monthly or quarterly
periods.
(6) Extension of time. The commissioner for good cause may extend the time for
making any return and paying any amount required to be paid under this chapter, if a
written request therefor is filed with the commissioner together with a tentative return
which must be accompanied by a payment of the tax, which shall be estimated in such
tentative return, on or before the last day for filing the return. Any person to whom an
extension is granted shall pay, in addition to the tax, interest at the rate of one per cent
per month or fraction thereof from the date on which the tax would have been due
without the extension until the date of payment.
(1949 Rev., S. 2098; 1951, 1953, June, 1955, S. 1170d; November, 1955, S. N147; 1957, P.A. 553, S. 4; 1961, P.A.
574, S. 5; June, 1969, P.A. 1, S. 21; June, 1971, P.A. 5, S. 108; 8, S. 8; 1972, P.A. 285, S. 5; P.A. 73-288, S. 5, 8; P.A. 74-
73, S. 4, 5; P.A. 75-2, S. 4, 5; 75-213, S. 35, 53; Dec. Sp. Sess. P.A. 75-1, S. 1−4, 12; P.A. 76-322, S. 9, 27; P.A. 77-614,
S. 139, 610; P.A. 80-71, S. 20, 30; 80-307, S. 17, 31; P.A. 81-399, S. 2, 3; 81-411, S. 25, 42; P.A. 82-467, S. 2, 3; P.A.
85-316, S. 1, 7; P.A. 89-251, S. 200, 203; P.A. 90-148, S. 9, 34; June Sp. Sess. P.A. 91-3, S. 119, 168; May Sp. Sess. P.A.
92-5, S. 30, 37; P.A. 93-44, S. 5, 24; 93-74, S. 32, 67; P.A. 94-9, S. 18, 41; May Sp. Sess. P.A. 94-4, S. 37, 85; P.A. 95-
160, S. 64, 69; P.A. 96-139, S. 5, 13; 96-180, S. 27, 166.)
History: 1961 act changed technical language in Subsec. (3) and changed amount of gross income considered as gross
receipts from ninety-seven per cent to ninety-six and six-tenths per cent; 1969 act amended Subsec. (3) to lower amount
of gross income considered as gross receipts from ninety-six and six-tenths per cent to ninety-five and two-tenths per cent
for period from July 1, 1969, to June 30, 1971; 1971 acts made ninety-five and two-tenths per cent the permanent amount,
then changed it to ninety-three and nine-tenths per cent as of September 1, 1971; 1972 act changed amount to ninety-three
and one-half per cent; P.A. 73-288 changed amount to ninety-three and nine-tenths per cent; P.A. 74-73 changed amount
to ninety-four and three-tenths per cent; P.A. 75-2 changed amount to ninety-three and one-half per cent; P.A. 75-213
included references to "services" and "acceptance" in Subsecs. (2) and (3); Dec. Sp. Sess. P.A. 75-1 changed section to
reflect monthly and quarterly payments, provisions for which were detailed in Subsec. (1), amended Subsec. (5) to allow
commissioner to permit payments on basis other than monthly or quarterly and increased interest rate in Subsec. (6) from
one-half to three-quarters of one per cent; P.A. 76-322 increased interest rate in Subsec. (6) to one per cent; P.A. 77-614
substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 80-71 changed amount
of gross income which may be considered as gross receipts to ninety-three per cent; P.A. 80-307 temporarily increased
interest rate in Subsec. (6) to one and one-fourth per cent for taxes due on or after July 1, 1980, but not later than June 30,
1981; P.A. 81-399 amended Subsec. (4) by providing that any return and payment shall be deemed to have been filed
within the time required if postmarked on or before the date such return and payment are required to be filed; P.A. 81-411
continued interest applicable under Subsec. (6) when an extension of time for payment is granted at one and one-fourth
per cent per month, effective July 1, 1981, and applicable to taxes becoming due on or after that date; P.A. 82-467 amended
Subsec. (1) by eliminating certain redundant language and changing the order of certain dates in the definition of "quarterly"
for clarification; P.A. 85-316 amended Subsec. (2) so as to require that a return filed by a corporation shall be signed by
an officer of such corporation; P.A. 89-251 amended Subsec. (3) with respect to a person filing a return who elects to
report gross receipts including the taxes collected, changing the percentage of gross receipts considered to be from sales,
exclusive of taxes, to ninety-two and one-half per cent of gross receipts, corresponding to the eight per cent rate of tax;
P.A. 90-148 amended Subdiv. (6) to increase the rate of interest added during the period of extension from one and one-
fourth to one and two-thirds per cent per month, effective July 1, 1990, and applicable to taxes becoming due on or after
that date; June Sp. Sess. P.A. 91-3 amended Subsec. (3) with respect to a person filing a return who elects to report gross
receipts including the taxes collected, changing the percentage of gross receipts considered to be from sales, exclusive of
taxes, to ninety-four and three-tenths per cent of gross receipts, corresponding to the six per cent rate of tax, effective
August 22, 1991, and applicable to sales occurring on or after October 1, 1991; May Sp. Sess. P.A. 92-5 amended Subsec.
(2) to change the return date from the last day of the month following the end of the calendar year to the fifteenth day of
the fourth month following the end of the calendar year, effective June 19, 1992, and applicable to sales occurring on or
after July 1, 1992; P.A. 93-44 amended Subsec. (1) to add Subdiv. (b) re persons rendering services covered by Subdiv.
(o) of Subsec. (2) of Sec. 12-407, effective April 23, 1993; P.A. 93-74 amended Subsec. (4) by deleting provision re time
document is postmarked and filed, effective May 19, 1993, and applicable to taxable years commencing on and after
January 1, 1993; P.A. 94-9 amended Subsec. (1) to delete former Subdiv. (b) re quarterly filing by persons rendering
services covered under Sec. 12-407(2)(o) and making payments in accordance with Sec. 19a-168b, effective April 1, 1994;
May Sp. Sess. P.A. 94-4 in Subsec. (6) reduced interest rate from one and two-thirds per cent to one per cent, effective
July 1, 1995, and applicable to taxes due and owing on or after said date; P.A. 95-160 revised effective date of May Sp.
Sess. P.A. 94-4 but without affecting this section; P.A. 96-139 and 96-180 both changed return due date from last day of
the month succeeding the end of a calendar year to "fifteenth day of the fourth month" succeeding end of year, effective
May 29, 1996, and June 3, 1996, respectively.
Subsec. (1):
Cited. 183 C. 117, 119.
Subsec. (2):
Cited. 12 CA 417, 425.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 82-272, S. 1, 3; P.A. 97-243, S. 27, 67.)
History: P.A. 97-243 extended liability of officer of a corporate retailer for wilful failure to pay over taxes to any other
responsible person and made applicable whether retailer a corporation or other form of business entity, effective June 24,
1997, and applicable to taxable periods commencing on or after July 1, 1997.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) Interest. The amount of the assessment, exclusive of penalties, shall bear interest at the rate of one per cent per month or fraction thereof from the last day of the month
succeeding the period for which the amount or any portion thereof should have been
returned until the date of payment.
(c) Deficiency due to negligence or intentional disregard. When it appears that
any part of the deficiency for which a deficiency assessment is made is due to negligence
or intentional disregard of the provisions of this chapter or regulations promulgated
thereunder, there shall be imposed a penalty equal to fifteen per cent of the amount of
such deficiency assessment, or fifty dollars, whichever is greater.
(d) Twenty-five per cent penalty. When it appears that any part of the deficiency
for which a deficiency assessment is made is due to fraud or intent to evade the provisions
of this chapter or regulations promulgated thereunder, there shall be imposed a penalty
equal to twenty-five per cent of the amount of such deficiency assessment. No taxpayer
shall be subject to a penalty under both subsection (c) of this section and this subsection
in relation to the same tax period.
(e) Notice of assessment. The commissioner shall give to the retailer or person
storing, accepting, consuming or otherwise using services or tangible personal property
written notice of the commissioner's assessment. The notice may be served personally
or by mail. If by mail, it shall be addressed to the retailer or person storing, accepting,
consuming or otherwise using services or tangible personal property at the address as
it appears in the records of the commissioner's office.
(f) Limitations on deficiency assessments. Except in the case of fraud, intent to
evade this chapter or authorized regulations, failure to make a return, or claim for additional amount pursuant to subsection (3) of section 12-418, every notice of a deficiency
assessment shall be mailed within three years after the last day of the month following
the period for which the amount is proposed to be assessed or within three years after
the return is filed, whichever period expires later. The limitation specified in this subsection does not apply in case of a sales tax proposed to be assessed with respect to sales
of services or property for the storage, acceptance, consumption or other use of which
notice of a deficiency assessment has been or is given pursuant to subsection (e) of this
section, subsection (c) of section 12-416, subsection (1) of section 12-417 and this
subsection. The limitation specified in this subsection does not apply in case of an
amount of use tax proposed to be assessed with respect to storage, acceptance, consumption or other use of services or property for the sale of which notice of a deficiency
assessment has been or is given pursuant to said subsections and this subsection.
(g) Waiver. If, before the expiration of the time prescribed in subsection (f) of this
section for the mailing of a notice of deficiency determination, the taxpayer has consented in writing to the mailing of the notice after such time, the notice may be mailed
at any time prior to the expiration of the period agreed upon. The period so agreed upon
may be extended by subsequent agreements in writing made before the expiration of
the period previously agreed upon.
(1949 Rev., S. 2099; 1951, S. 1171d; 1969, P.A. 388, S. 9, 10; P.A. 75-213, S. 36, 53; Dec. Sp. Sess. P.A. 75-1, S. 5,
6, 12; P.A. 76-322, S. 10, 11, 27; P.A. 80-307, S. 18, 19, 31; P.A. 81-64, S. 7, 23; 81-411, S. 26, 27, 42; P.A. 85-316, S.
2, 7; P.A. 88-314, S. 25, 54; P.A. 90-148, S. 10, 34; May Sp. Sess. P.A. 94-4, S. 38, 48, 85; P.A. 95-160, S. 64, 69; P.A.
97-243, S. 28, 67; P.A. 98-262, S. 7, 22; P.A. 99-48, S. 6, 10; 99-121, S. 12, 28.)
History: 1969 act changed interest rates in Subsecs. (2) and (3) from one-half to three-quarters of one per cent; P.A.
75-213 added references to "acceptance" and "services" in Subsec. (6); Dec. Sp. Sess. P.A. 75-1 deleted word "quarterly"
from references re payment periods in Subsecs. (2) and (7), effective January 1, 1976, and applicable to taxes imposed by
chapter 219 on or after that date; P.A. 76-322 increased interest rates in Subsecs. (2) and (3) to one per cent; P.A. 80-307
temporarily increased interest rates in Subsecs. (2) and (3) to one and one-fourth per cent for assessments and payments
due on or after July 1, 1980, but not later than June 30, 1981; P.A. 81-64 amended Subsec. (4) to include a minimum
penalty of fifty dollars; P.A. 81-411 continued the rate of interest applicable to a deficiency assessment under Subsec. (2)
at one and one-fourth per cent per month and continued the rate of interest applicable with respect to overpayments and
underpayments as provided in Subsec. (3) at one and one-fourth per cent per month, effective July 1, 1981, and applicable
to taxes becoming due on or after that date; P.A. 85-316 amended Subsec. (3) by deleting reference to penalties on underpayments as an item against which overpayments may be offset, retaining interest on underpayments as an item subject
to such offset; P.A. 88-314 made technical changes in Subsecs. (4) and (5) for purposes of clarification, effective July 1,
1988, and applicable to any tax which first becomes due and payable on or after said date, to any return or report due on
or after said date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period next
beginning on or after said date; P.A. 90-148 increased the rate of interest added under Subsecs. (2) and (3) from one and
one-fourth to one and two-thirds per cent per month and increased the penalty for deficiency assessment from ten to fifteen
per cent of the assessment as provided under Subsec. (4), effective July 1, 1990, and applicable to taxes becoming due on
or after that date; May Sp. Sess. P.A. 94-4 made existing Subsec. (1) a Subdiv. (A) and added provision that commissioner
may not make more than one assessment for a tax period and added a new Subdiv. (B) re supplemental assessment, effective
June 9, 1994, and in Subsecs. (2) and (3) reduced interest rate from one and two-thirds per cent to one per cent, effective
July 1, 1995, and applicable to taxes due and owing on or after said date; P.A. 95-160 revised effective date of May Sp.
Sess. P.A. 94-4 but without affecting this section; P.A. 97-243 amended Subsec. (1) to allow commissioner to make more
than one assessment if new information comes into his possession and deleted requirement to adopt regulations, effective
July 1, 1997; P.A. 98-262 amended Subsec. (7) to change reference from Subsec. (5) to Subsec. (4) of Sec. 12-416, effective
June 8, 1998; P.A. 99-48 replaced numeric Subsec. indicators with alphabetic indicators, deleting former Subsec. (3) re
offsets by the commissioner, and made technical changes, effective January 1, 2000; P.A. 99-121 amended Subsecs. (6)
and (7) to make technical changes and delete obsolete language, effective June 3, 1999.
Cited. 168 C. 597. Cited. 187 C. 581, 582. Cited. 210 C. 401, 403. Cited. 231 C. 315, 318.
Cited. 12 CA 417, 425.
Cited. 44 CS 297.
Subsec. (2):
Cited. 187 C. 581, 584, 587.
Cited. 43 CA 744.
Cited. 44 CS 297.
Subsec. (4):
Cited. 187 C. 581, 583, 587. Cited. 210 C. 401, 411. Cited. 235 C. 393, 395.
Subsec. (5):
Cited. 187 C. 581, 587. Cited. 210 C. 401, 411.
Subsec. (7):
Cited. 31 CS 373.
(Return to TOC) (Return to Chapters) (Return to Titles)
(b) Interest. The amount of the assessment shall bear interest at the rate of one per
cent per month or fraction thereof from the last day of the month succeeding the period
for which the amount or any portion thereof should have been returned until the date
of payment.
(c) Notice of assessment. Promptly after making the assessment the commissioner
shall give to the person written notice of the estimate, assessment and penalty, the notice
to be served personally or by mail in the manner prescribed for service of notice of a
deficiency assessment.
(1949 Rev., S. 2100; March, 1958, P.A. 27, S. 20; 1969, P.A. 388, S. 11, 12; P.A. 75-213, S. 37, 53; Dec. Sp. Sess.
P.A. 75-1, S. 7, 12; P.A. 76-322, S. 12, 13, 27; P.A. 80-307, S. 20, 21, 31; P.A. 81-64, S. 8, 9, 23; 81-411, S. 28, 29, 42;
P.A. 85-316, S. 3, 7; P.A. 88-314, S. 26, 54; P.A. 90-148, S. 11, 34; May Sp. Sess. P.A. 94-4, S. 39, 76, 85; P.A. 95-160,
S. 64, 69; P.A. 97-243, S. 29, 67; P.A. 99-48, S. 7, 10.)
History: 1969 act increased interest rates in Subsecs. (2) and (3) from one-half to three-quarters of one per cent; P.A.
75-213 added references to "acceptance" and "services" in Subsec. (1); Dec. Sp. Sess. P.A. 75-1 deleted "quarterly" with
reference to payment period in Subsec. (3), effective January 1, 1976, and applicable to taxes imposed by chapter 219 on
or after that date; P.A. 76-322 increased interest rates in Subsecs. (2) and (3) to one per cent; P.A. 80-307 temporarily
increased interest rates in Subsecs. (2) and (3) to one and one-fourth per cent for payments and assessments due on or after
July 1, 1980, but not later than June 30, 1981; P.A. 81-64 amended Subsec. (1) to include a minimum penalty of fifty
dollars, and amended Subsec. (4) to include waiver of penalty provision applicable to other state taxes; P.A. 81-411
continued interest applicable to overpayments and underpayments related to assessment by the commissioner under Subsec.
(2) at one and one-fourth per cent per month, and continued interest applicable to an assessment by the commissioner
under Subsec. (3) at the rate of one and one-fourth per cent per month, effective July 1, 1981, and applicable to taxes
becoming due on or after that date; P.A. 85-316 amended Subsec. (2) by deleting reference to penalties on underpayments
as an item against which overpayments may be offset, retaining interest on underpayments as an item subject to such offset;
P.A. 88-314 amended Subsec. (1) by a restatement of the commissioner's estimate of tax when no return is filed and the
penalty to be added thereto, and deleted Subsec. (4) concerning failure of any person to file a return due to fraud or intent
to evade the tax and the applicable penalties because this provision is covered in another section of chapter 219, effective
July 1, 1988, and applicable to any tax which first becomes due and payable on or after said date, to any return or report
due on or after said date, or in the case of any ongoing obligation imposed in accordance with said act, to the tax period
next beginning on or after said date; P.A. 90-148 increased the rate of penalty added in Subsec. (1) from ten to fifteen per
cent of the tax and increased the rate of interest applicable under Subsecs. (2) and (3) from one and one-fourth to one and
two-thirds per cent per month, effective July 1, 1990, and applicable to taxes becoming due on or after that date; May Sp.
Sess. P.A. 94-4 made existing Subsec. (1) a Subdiv. (A) and added provision that commissioner may not make more than
one assessment for a tax period and added a new Subdiv. (B) re supplemental assessment, effective June 9, 1994, and in
Subsecs. (2) and (3) reduced interest rate from one and two-thirds per cent to one per cent, effective July 1, 1995, and
applicable to taxes due and owing on or after said date; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but
without affecting this section; P.A. 97-243 amended Subsec. (1) to allow commissioner to make more than one assessment
if new information comes into his possession and deleted requirement to adopt regulations, effective July 1, 1997; P.A.
99-48 replaced numeric Subsec. indicators with alphabetic indicators, deleting former Subsec. (2) re offsets by the commissioner, and made technical changes, effective January 1, 2000.
Cited. 206 C. 253, 254. Cited. 235 C. 737, 740.
Cited. 44 CS 297.
Subsec. (1):
Cited. 221 C. 166, 169.
Cited. 31 CS 373.
Subsec. (3):
Cited. 31 CS 373.
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(P.A. 97-229, S. 1, 3; P.A. 00-174, S. 14, 83.)
History: P.A. 97-229 effective June 24, 1997; P.A. 00-174 added provision allowing sharing of certain information
with the municipal agency receiving payment under this section, effective July 1, 2000, and applicable to assessments
made on or after that date.
(Return to TOC) (Return to Chapters) (Return to Titles)
(P.A. 98-244, S. 19, 35.)
History: P.A. 98-244 effective June 8, 1998.
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(2) Due date. Collection. Interest and penalty. The amount assessed is due and
payable no later than the tenth day after service of the notice of assessment, unless on
or before such tenth day the person against whom such assessment is made has obtained
a stay of collection, as provided in subsection (3) of this section. To the extent that
collection has not been stayed, the commissioner may enforce collection of such tax by
using the method provided in section 12-35 or by using any other method provided for
in the general statutes relating to the enforced collection of taxes, provided, if the amount
of such tax has been definitely fixed, the amount so fixed shall be assessed and collected,
and if the amount of such tax has not been definitely fixed, the commissioner shall assess
and collect such amount as, in the commissioner's opinion, from the facts available to
the commissioner, is sufficient. If the amount specified in the notice of jeopardy assessment is not paid on or before the tenth day after service of notice thereof upon the person
against whom the jeopardy assessment is made, the delinquency penalty and the interest
provided in section 12-419 shall attach to the amount of the tax or the amount of the
tax required to be collected.
(3) Petition for reassessment. Stay of collection. Security. The person against
whom a jeopardy assessment is made may file a petition for the reassessment thereof,
pursuant to section 12-418, with the commissioner on or before the tenth day after the
service upon such person of notice of the jeopardy assessment. Such person may obtain
a stay of collection of the whole or any part of the amount of such jeopardy assessment
by filing with the commissioner, on or before such tenth day, a bond of a surety company
authorized to do business in this state or other security acceptable to the commissioner
in such an amount not exceeding double the amount as to which the stay is desired, as
the commissioner deems necessary to ensure compliance with this chapter, conditioned
upon payment of as much of the amount, the collection of which is stayed by the bond,
as is found to be due from such person. The security may be sold by the commissioner
in the manner prescribed by section 12-430. At any time thereafter in respect to the
whole or any part of the amount covered by the bond, such person may waive the stay,
and if as the result of such waiver, any part of the amount covered by the bond is paid,
the bond shall, at the request of such person, be proportionately reduced.
(1949 Rev., S. 2101; P.A. 99-121, S. 13, 28.)
History: P.A. 99-121 made technical changes and added provisions re jeopardy assessment, how served, when payable,
how collected, how stayed and waiver of stay, effective June 3, 1999.