AN 94(3)

Rulings and Administrative Pronouncements Obsolete By Legislation Repealing Sales And Use Taxes On Certain Services

PURPOSE: The purpose of this Announcement is to identify rulings or administrative pronouncements that, while valid when issued, should no longer be relied upon. The Department will declare a ruling or pronouncement to be "obsolete" where, because of changes in the law on which a ruling or pronouncement was based or because a position that was taken in a ruling or pronouncement has been addressed in a subsequently promulgated regulation, the ruling or pronouncement is no longer considered authoritative and should not be relied upon for future transactions. By declaring a ruling or pronouncement to be obsolete, the Department intends to eliminate unnecessary research and to reduce the possibility of erroneous decisions by taxpayers and tax practitioners. The fact that a ruling or pronouncement is "obsolete" does not affect its past validity or its application to past transactions.

ARCHITECTURAL, BUILDING ENGINEERING AND BUILDING PLANNING OR DESIGN SERVICES: In 1989, the General Assembly passed a law treating architectural, building engineering and building planning or design service transactions occurring on or after July 1, 1989 as sales that were subject to the Sales and Use Taxes Act. (See 1989 Conn. Pub. Acts 251, §1, amending Conn. Gen. Stat. §12-407(2)(i)(F).) In 1991 the General Assembly repealed the tax, so that such service transactions occurring on or after October 1, 1991 are no longer treated as sales that are subject to the Sales and Use Taxes Act. (See 1991 Conn. Pub. Acts 3, §103 (June Spec. Sess.).) Accordingly, the following rulings are no longer considered determinative, as of October 1, 1991, with respect to sales occurring on or after that date:

Ruling Nos. 89-31, 89-60 (third paragraph), 89-100, 89-101 (second paragraph), 89-104, 89-134 (third paragraph, to the extent it discusses §12-407(2)(i)(F)), 89-160 (first and second paragraphs), 89-161 (second paragraph), 89-165, 89-166, 89-174, 89-177 (second paragraph), 89-181, 89-184, 89-188, 89-189, 89-191, 89-196, 89-197, 89-203, 89-206, 89-214, 89-223 (second paragraph, to the extent it discusses §12-407(2)(i)(F)), 89-224, 89-242 (second paragraph, to the extent it discusses §12-407(2)(i)(F), third and fourth paragraphs), 89-246 (third paragraph, to the extent it discusses §12-407(2)(i)(F)), 89-276, 89-277, 90-24, 90-25, 90-29 and 90-44

To the extent that the position that was taken in these rulings was that the service transactions described therein were not sales that were subject to the Sales and Use Taxes Act, that position is not affected by these rulings being declared to be obsolete.

LAND SURVEYING SERVICES: In 1989, the General Assembly passed a law treating land surveying services occurring on or after July 1, 1989 as sales that were subject to the Sales and Use Taxes Act. (See 1989 Conn. Pub. Acts 251, §1, adding Conn. Gen. Stat. §12-407(2)(i)(S).) In 1992, the General Assembly repealed the tax, so that such service transactions occurring on or after July 1, 1992 are no longer treated as sales that are subject to the Sales and Use Taxes Act. (See 1992 Conn. Pub. Acts 17, §18 (May Spec. Sess.).) Accordingly, the following rulings are no longer considered determinative, as of July 1, 1992, with respect to sales occurring on or after that date:

Ruling Nos. 89-88, 89-160 (third paragraph), 89-167 (first and third paragraphs), 89-280 and 90-20 (second paragraph)

CAR WASHING SERVICES: In 1989, the General Assembly passed a law treating car washing services occurring on or after July 1, 1989 as sales that were subject to the Sales and Use Taxes Act. (See 1989 Conn. Pub. Acts 251, §1, adding Conn. Gen. Stat. §12-407(2)(i)(N).) Accordingly, Ruling No. 89-11 is no longer considered determinative with respect to transactions occurring on or after July 1, 1989. In 1993, the General Assembly repealed the tax, so that such service transactions occurring on or after January 1, 1994 are no longer treated as sales that are subject to the Sales and Use Taxes Act. (See 1993 Conn. Pub. Acts 74, §23.) Accordingly, Ruling No. 89-23 is no longer considered determinative, as of January 1, 1994, with respect to transactions occurring on or after that date.

MOTOR VEHICLE PARKING SERVICES: In 1989, the General Assembly passed a law treating motor vehicle parking services occurring on or after July 1, 1989 as sales that were subject to the Sales and Use Taxes Act. (See 1989 Conn. Pub. Acts 251, §1, adding Conn. Gen. Stat. §12-407(2)(N).) The Department interpreted the law as applying only to valet parking services, and as not applying to merely providing parking spaces in a garage or lot. (See LSN-94.) In 1991, the General Assembly changed the law so that motor vehicle parking services included the provision of space in a garage or lot. (See 1991 Conn. Pub. Acts 3, §103 (June Spec. Sess.) and SN 91(13).) In 1993, the General Assembly again amended the law so that valet parking service transactions at any airport occurring on or after January 1, 1994 are no longer treated as sales that are subject to the Sales and Use Taxes Act. (See 1993 Conn. Pub. Acts 74, §23.) Accordingly, Ruling No. 89-138 and SN 91(13) (to the extent they relate to airport valet parking services) and Ruling No. 89-175 are no longer considered determinative, as of January 1, 1994, with respect to sales occurring on or after that date.

EFFECT OF THIS DOCUMENT: An Announcement is a document that alerts taxpayers to important information. Such information may involve new Department administrative policies or procedures.

EFFECT ON OTHER DOCUMENTS: The above-listed rulings and SN are obsoleted.

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Website.

Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

AN 94(3)
Sales and Use Tax
Issued: 7/28/94