CT Ruling 89-15 Sales and Use Taxes 1989-06-12

Were vocational and psychological testing services taxable in Connecticut under Ruling 89-15?

Short answer: It depended on the customer. Vocational aptitude testing and counseling for the general public were not taxable. Psychological testing and profiles for prospective or existing employees were taxable specialized management consulting services. The ruling is obsolete.

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

Disclaimer: This 1989 Connecticut Department of Revenue Services Ruling is not current. The official page says it was obsoleted by Announcement 94(4), so it is provided only as historical reference and should not be used as current authority. It addressed one provider's vocational and psychological testing services under the law then in effect. 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 tax treatment of testing, counseling, and management consulting services.

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

Vocational aptitude tests and related counseling provided to members of the general public were not subject to Connecticut sales and use tax.

Psychological tests given to prospective employees for corporations, with candidate profiles delivered to those corporations, were taxable specialized management consulting services.

Psychological profiles for existing employees, with psychological profiles or vocational aptitudes provided to the employer, were also taxable specialized management consulting services.

The official archive says the ruling was obsoleted by Announcement 94(4).

What this means for you

The historical result turned on whom the testing served and how the results were used: services for the general public were treated differently from employee-related profiles delivered to an employer. Current service classifications must be checked separately.

Common questions

Was vocational testing for the general public taxable? No.

Was psychological testing of job candidates for an employer taxable? Yes.

What about profiles of existing employees? Those services were also taxable.

Citations and references

Conn. Agencies Regs. § 12-426-27(10)(b), as cited in the ruling.

Source

Landing page: Connecticut DRS Rulings
Ruling: Ruling 89-15

Original ruling text

Ruling 89-15, Testing

Ruling 89-15

Testing

This Ruling has been obsoleted by AN 94(4)

You have asked our opinion as to whether the following services are subject to the sales and use tax:

administering vocational aptitude tests and providing counseling regarding the results to members of the general public;

administering psychological tests to prospective employees on behalf of corporations and providing the corporations with psychological profiles of candidates considered for employment; and

administering psychological profiles to existing employees and providing the employer with psychological profiles and/or vocational aptitudes of these employees.

Item 1 is being rendered to the general public and is not subject to the sales and use tax. Items 2 and 3 are considered to be specialized management consulting services pursuant to section 12-426-27(10)(b) of the Regulations of Connecticut State Agencies and are subject to the Connecticut sales and use tax.

LEGAL DIVISION

June 12, 1989

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