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 89-98, Nexus

The issue you presented was whether or not you are liable for the collection and remittance of a sales tax when, as a delivery agent for a tax-exempt charitable organization, you transport firearms in accordance with federal and local firearm regulations to the individuals who purchase these firearms at such auctions.

Pursuant to Conn. Gen. Stat. §12-408(1), the sales tax is imposed on the privilege of making any sale at the rate of 8% on the gross receipts of retail sales of all tangible personal property. It is the retailer of such property who must remit the tax to the State of Connecticut and collect such amount from the consumer; Conn. Gen. Stat. §12-408(2).

Under the facts as described above, the auctioneer would be considered to be the retailer of the tangible personal property (the firearms) and as such, would be required to collect and remit the sales tax; Conn. Gen. Stat. §12-407(12)(a) and (b) and Conn. Agencies Regs. §12-426-17(d).

The delivery services performed by X Company will not render it liable to collect a sales tax on the amount charged for the firearms.

LEGAL DIVISION

September 19, 1989