Connecticut State Department of Revenue Services

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Ruling 89-18

Utility Exemption - Manufacturing

This Ruling was superseded by PS 94(3)

Effective July 1, 1989, section 12-412(3) of the Connecticut General Statutes, as amended by Public Act No. 89-251, exempts, under certain circumstances, the sales of fuel, electricity, etc. One of the establishments which falls under this exemption is an industrial manufacturing plant.

"Manufacturing" means the performance as a business of an integrated series of operations which places personal property in a form, composition or character different from that in which it was acquired for sale in the regular course of business by the manufacturer. The change in form, composition, or character must be a substantial change, and it must result in the transformation of property into a different product having a distinctive name, nature and use.

The cleaning of garments would not fall under this definition of "manufacturing." Therefore, the exemption described above is not available with respect to the fuel sales to such laundry and dry cleaning business.

LEGAL DIVISION

June 30, 1989