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Ezel / Tax Rulings / CT
CT Ruling 89-235 Sales and Use Taxes 1989-11-22

Did Connecticut's residential utility exemption cover electricity and heating fuel used in condominium common areas and recreation facilities?

Short answer: Yes under this historical ruling, if the entire condominium complex was predominantly residential. The exemption covered association-billed common areas and a condominium social club's on-site recreation facilities. DRS says PS 94(3.1) superseded the ruling.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 residential utility exemption then in effect. DRS expressly says Policy Statement (PS) 94(3.1) superseded it. Its condominium result depended on the entire complex being predominantly occupied for residential dwelling purposes; different occupancy or uses were not addressed. 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Note -- superseded historical guidance. DRS states that this ruling was superseded by Policy Statement (PS) 94(3.1).

Plain-English summary

The ruling states that electricity used in a residential dwelling and heating fuel used for a residential dwelling were exempt under the cited statutes as amended in 1989.

When a utility billed a condominium association for electricity or heating fuel used in common areas, the charge was exempt if the entire condominium complex was predominantly occupied as residential dwellings. The same result applied to electricity or heating fuel sold to the condominium association's social club for recreation facilities located within the complex, subject to that same residential-occupancy condition.

What this means for you

The historical ruling extended the residential utility exemption to the described condominium common areas and recreation facilities based on the predominantly residential character of the whole complex. PS 94(3.1) later superseded the guidance.

Common questions

Were condominium common-area utilities exempt? Yes, if the entire complex was predominantly residential.

Did the exemption include an association social club's recreation facilities? Yes, when the facilities were part of the predominantly residential complex.

Which utilities did the ruling address? Electricity and heating fuel.

Citations and references

  • Conn. Gen. Stat. § 12-412(13), as cited for residential electricity.
  • Conn. Gen. Stat. § 12-412(16), as cited for residential heating fuel.
  • Public Act No. 89-251, as cited in the ruling.
  • Policy Statement (PS) 94(3.1) -- identified by DRS as superseding this ruling.

Source

Original ruling text

Ruling 89-235, Utility Exemption - Residential

This Ruling has been superseded by PS 94(3.1)

The sale of electricity used in any residential dwelling is exempt from sales and use tax pursuant to section 12-412(13) of the Connecticut General Statutes, as amended by Public Act No. 89-251. The sale of fuel used for heating purposes in any residential dwelling is exempt from sales and use tax pursuant to section 12-412(16) of the Connecticut General Statutes, as amended by Public Act No. 89-251.

When the electric company or heating fuel company bills a condominium association for the electricity or heating fuel used in the common areas of the condominium complex, the sales and use tax would not apply to said charges provided the entire condominium complex, inclusive of all units contained therein, is predominately occupied for residential dwelling purposes. Accordingly, the sales of electricity or heating fuel to a condominium association social club for use in the recreation facilities situated on and a part of the condominium complex are not subject to sales and use tax provided said complex is predominately occupied for residential dwelling purposes.

LEGAL DIVISION

November 22, 1989

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