Connecticut State Department of Revenue Services

Walk-in services at all DRS branch office locations remain suspended. Email DRS at drs@po.state.ct.us. Email the Priority One Taxpayer Assistance Program: DRSPriorityOne_CollectionsAssist@po.state.ct.us. Please check our Frequently Asked Questions page.

Ruling 89-263, Renovation

The initial finish out work or fit out work provided to the two floors that have never been finished or occupied is not subject to sales and use tax because it is considered to be new construction pursuant to section 12-407(2)(i)(I) of the Connecticut General Statutes, as amended by Public Act No. 89-251. However, if any use, e.g., storage (other than building materials) is made of the unfinished portion of the building prior to the initial fit out work being performed, then the finish out work would be taxable as a renovation to the building.

LEGAL DIVISION

December 7, 1989