Connecticut State Department of Revenue Services

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AN 94(5)

Rulings And Administrative Pronouncements Obsolete By Legislation Affecting Sales And Use Tax Exemptions

PURPOSE: The purpose of this Announcement is to identify rulings and 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.

AGRICULTURAL PRODUCTION: Prior to 1989, sales and purchases of materials, tools, fuel or machinery used directly in an agricultural production process were exempt from sales and use taxes. In 1989, the General Assembly repealed these old exemptions and created new exemptions from sales and use taxes for sales and purchases occurring on or after October 1, 1989. The exemptions are for sales and purchases of tangible personal property exclusively for use in agricultural production by a farmer who is engaged in agricultural production as a trade or business and to whom the Department has issued a farmer tax exemption permit. (See 1989 Conn. Pub. Acts 123, §§9, 10, 11 and 12, adding Conn. Gen. Stat. §12-412(63) and amending Conn. Gen. Stat. §§12-412(18) and (34) and 12-412d(a).) Accordingly, the following rulings and administrative pronouncements, which involve the repealed exemptions, are no longer considered determinative with respect to sales and purchases occurring on or after October 1, 1989:

Ruling Nos. 89-19, 89-24, 89-25 and 89-136 (first paragraph); and Bulletin Nos. 2 and 14

FEED FOR LIVESTOCK: In 1991, the General Assembly repealed an exemption from sales and use taxes for sales and purchases on or after October 1, 1991 of feed for livestock, rabbits and poultry of a kind which ordinarily constitute food for human consumption. (See 1991 Conn. Pub. Acts 3, §166 (June Spec. Sess.), repealing Conn. Gen. Stat. §12-412(12).) Accordingly, Ruling No. 89-233 (first paragraph) is no longer considered determinative with respect to sales and purchases occurring on or after October 1, 1991.

CUSTOM-MADE WIGS: In 1993, the General Assembly expanded an existing exemption from sales and use taxes for sales and purchases of medical devices or prostheses to include sales or purchases on or after January 1, 1994 of "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." (See 1993 Conn. Pub. Acts 74, §29, amending Conn. Gen. Stat. §12-412(19).) Accordingly, Ruling No. 92-12, which held that sales or purchases of wigs and hairpieces were not exempt from sales and use taxes under Conn. Gen. Stat. §12-412(19), is no longer considered determinative with respect to sales or purchases on or after January 1, 1994 of such custom-made wigs or hairpieces.

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 Bulletins are obsolete.

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(5)
Sales and Use Tax
Issued: 7/28/94