Which energy, power, environmental, and industrial engineering design services were taxable under Connecticut Ruling 89-206?

Note -- obsolete historical guidance. DRS marks this information "not current" and states that Announcement (AN) 94(3) obsoleted the ruling.

Plain-English summary

DRS said the following engineering design services were not taxable: utility systems energy planning; power delivery and distribution; thermal and hydroelectric power generation; water-resource development; environmental and resource planning; and pulp, paper, and forest-industry work.

Building engineering or building planning and design performed within those projects was taxable on that part of the client bill. Small mobile control buildings that could be easily disassembled were not treated as taxable building engineering. For industrial process and manufacturing facilities, building programs and interior design services were taxable.

What this means for you

The historical ruling separated project engineering from building and interior design. AN 94(3) later obsoleted the guidance.

Common questions

Were the listed energy, power, environmental, and industry engineering services taxable? No under the ruling.

Were building engineering and design taxable? Yes, on that portion of the bill.

Were small mobile control buildings taxable? Not when easily disassembled.

Were building programs and interior design for manufacturing facilities taxable? Yes.

Citations and references

• Conn. Gen. Stat. § 12-407(2)(i)(F), as cited in the ruling.
• Public Act No. 89-251, as cited in the ruling.
• Announcement (AN) 94(3) -- identified by DRS as obsoleting this ruling.

Source

• Landing page: Connecticut DRS Rulings
• Ruling: Ruling 89-206

Original ruling text

Ruling 89-206, Engineering

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

Ruling 89-206

Engineering

This Ruling has been obsoleted by   AN 94(3)

Conn. Gen. Stat. § 12-407(2)(i)(F), as amended by Public Act No. 89-251, imposes the sales and use tax on "architectural, building engineering and building planning or design services, including interior design and decorating services."

The following engineering design services are not subject to the Connecticut sales and use tax under the above statute:

energy planning which entails systems planning for utilities;

power delivery and distribution;

thermal power generation;

hydroelectric power generation and water resources development;

environmental and resource planning; and

pulp, paper and forest industries.

However, your firm should take note that, when building engineering or building planning or design services are rendered in the performance of the types of projects listed herein, sales tax would be due on that portion of the bill to your client relating to such services. In this regard, the Department does not consider the design of small, mobile control buildings that can be easily disassembled to be taxable as building engineering services.

With respect to project services involving "industrial process and manufacturing facilities," these services involve building programs and interior design services that are subject to tax.

LEGAL DIVISION

November 9, 1989