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.

This information is not current and is being provided for reference purposes only

Ruling 89-28

Utility Exemption - Residential

This Ruling has been superseded by PS 94(3)

You have inquired as to how the sales tax on gas and electric bills pertains to the property management industry.

In imposing a sales tax on certain uses of gas and/or electricity on or after July 1, 1989, the General Assembly clearly stated that residential use would be exempt.

Therefore, the term "residential dwelling" applies to apartment buildings and to houses being rented out and managed on behalf of the building's non-resident owner. In addition, during such periods when apartment units or rental homes are vacant, they are still considered to be residential dwellings and, as a result, retain their exemption from the sales tax.

LEGAL DIVISION

July 14, 1989