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Ezel / Tax Rulings / CT
CT Ruling 89-230 Sales and Use Taxes 1989-11-21

Which asbestos-removal, relocation, restoration, and renovation services were excluded from Connecticut sales tax?

Short answer: Actual asbestos removal, containment, and disposal were excluded, as were directly related relocation and comparable-material restoration services. Renovations that enhanced or improved the area were taxable. DRS says SN 95(17) superseded the ruling.

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 reflecting the asbestos-service rules then in effect. DRS expressly marks the information 'not current' and says Special Notice (SN) 95(17) superseded it. Its distinctions among removal, directly related relocation, comparable-material restoration, and improvements should not be assumed current. 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 your specific situation.
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)

Note -- superseded historical guidance. DRS marks this information "not current" and states that Special Notice (SN) 95(17) superseded the ruling.

Plain-English summary

DRS treated asbestos as hazardous waste. Services directly performing the physical removal, containment, and disposal of asbestos were excluded from sales tax.

Moving and relocating personnel and tangible personal property were also excluded when directly related to the asbestos-removal and containment project. After removal or containment, the exclusion covered only services needed to restore the affected area to its former condition using comparable materials. Renovation that enhanced or improved the work area or building was taxable.

What this means for you

The historical ruling drew a line between restoration and improvement: comparable-material work restoring the former condition was excluded, while enhancement or renovation was taxable. SN 95(17) later superseded the guidance.

Common questions

Were asbestos removal, containment, and disposal taxable? No under the ruling.

Were moving and relocation services excluded? Yes, when directly related to the actual asbestos project.

How much restoration was excluded? Only work necessary to restore the area to its former condition with comparable materials.

Were improvements taxable? Yes. Renovation that enhanced or improved the area or building was taxable.

Citations and references

  • Conn. Gen. Stat. § 12-407(2)(i)(I), as cited in the ruling.
  • Special Notice (SN) 95(17) -- identified by DRS as superseding this ruling.

Source

Original ruling text

Ruling 89-230, Hazardous Waste

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

Ruling 89-230

Hazardous Waste

This Ruling has been superseded by   SN 95(17)

Conn. Gen. Stat. § 12-407(2)(i)(I) imposes the sales and use tax on "services to industrial, commercial or income-producing real property" but excludes "any such services rendered for the voluntary containing or removing of hazardous waste."

The Department considers asbestos to be a hazardous waste. Accordingly, the services rendered directly in the actual physical removal, containment and disposal of asbestos are not subject to sales tax. Similarly, the services of moving and relocating personnel and tangible personal property are not subject to tax as long as such services are directly related to the actual project of asbestos removal and containment.

After the removal or containment of the asbestos, the services excluded from sales tax are strictly limited to those services necessary to restoring the affected area to its former condition through the use of comparable materials. Renovation work which enhances and improves the work area or building itself is subject to tax.

TIMOTHY F. BANNON

COMMISSIONER

November 21, 1989

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