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Ezel / Tax Rulings / CT
CT Ruling 89-113 Sales and Use Taxes 1989-09-26

How did Connecticut Ruling 89-113 treat landscape design, excavation, grading, land clearing, and septic-system work?

Short answer: Landscape design and excavation, clearing, or grading integral to landscaping were taxable, including design for new construction. Those site-work services and septic installation were nontaxable for new construction when not connected with landscaping. The ruling is obsolete.

Apply this to your situation

This page answers the general question as of 1989. Ezel answers yours, under current Connecticut tax law, with citations.

Currency note: this ruling is from 1989
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official 1989 Connecticut Department of Revenue Services Ruling, but its page expressly says the information is not current, was obsoleted in part by AN 94(4), and was obsoleted by AN 2000(8). It is presented only as historical reference and should not be used as current law. Connecticut imposes sales and use tax solely at the state level: there are no local or municipal sales taxes. This summary is informational only and is not legal or tax advice. Consult a licensed Connecticut tax professional about current treatment.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Total receipts for landscape-design services were taxable. Excavating, land clearing, and grading were also taxable when performed as an integral part of a landscaping job. Landscape design remained taxable when supplied to contractors for new construction.

By contrast, septic-system installation and excavating, land-clearing, or grading services for new construction were not taxable when they were not performed in connection with landscaping.

The official page says the ruling is not current, was obsoleted in part by AN 94(4), and was obsoleted by AN 2000(8).

What this means for you

The historical ruling turned on the connection to landscaping: site work integrated into landscaping was taxable, while the named new-construction work was not taxable when separate from landscaping. Because the ruling is obsolete, current projects require current guidance.

Common questions

Were landscape-design services taxable? Yes, on total gross receipts.

Was excavation taxable when part of landscaping? Yes, as were land clearing and grading.

Did new construction make landscape design exempt? No. Design services supplied to new-construction contractors were taxable.

When was the named site work nontaxable? When rendered to new construction and not performed in connection with landscaping.

Citations and references

  • Conn. Gen. Stat. § 12-407(2)(i)(X), as amended by Public Act No. 89-251, as cited in the ruling.
  • AN 94(4) and AN 2000(8), identified by the official page as obsoleting the ruling.

Source

Original ruling text

Ruling 89-113, Landscaping - Service Contractors

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

This Ruling is obsoleted in part by AN 94(4) ;  obsoleted by AN 2000(8)

The total gross receipts for landscape design services are subject to sales and use tax pursuant to section 12-407(2)(i)(X) of the Connecticut General Statutes, as amended by Public Act No. 89-251. Charges for excavating, land clearing and grading services that are performed as an integral part of landscaping jobs are subject to sales and use tax.

Landscape design services rendered to contractors for new construction are subject to sales and use tax.

Installations of septic systems, excavating, land clearing and grading services rendered to new construction are not subject to sales and use tax provided they are not performed in connection with landscaping services.

LEGAL DIVISION

September 26, 1989

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