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Ezel / Tax Rulings / CT
CT Ruling 89-238 Sales and Use Taxes 1989-11-27

Did nursing homes and similar long-term health or chronic-care facilities qualify for Connecticut's residential utility exemption?

Short answer: Yes under this historical ruling. DRS treated convalescent or nursing homes as residential, allowing them to claim the exemption through their utility and heating-oil suppliers and receive bill credits for tax already paid. DRS says PS 94(3.1) superseded the ruling.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 DRS expressly says Policy Statement (PS) 94(3.1) superseded it.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 treatment of long-term health care and chronic-care facilities, supplier-issued exemption certificates, and bill credits 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Note -- superseded historical guidance. DRS states that this ruling was superseded by Policy Statement (PS) 94(3.1).

Plain-English summary

After the 1989 General Assembly narrowed the utility exemption but retained an exemption for residential dwellings, DRS treated long-term health care and chronic-care facilities -- commonly called convalescent or nursing homes -- as residential.

The facilities were to obtain the exemption through their utility companies and heating-oil dealers, rather than DRS. Tax already paid would be returned as a credit on each facility's bill.

What this means for you

The historical ruling recognized nursing homes and similar care facilities as residential for the gas, electricity, and heating-oil exemption. PS 94(3.1) later superseded the guidance.

Common questions

Which facilities qualified? Long-term health care and chronic-care facilities, commonly known as convalescent or nursing homes.

Who issued the exemption? The utility company or fuel-oil dealer, not DRS.

How were previously paid taxes returned? As a credit against the facility's bill.

Citations and references

  • Conn. Gen. Stat. §§ 12-412(3) and (16), as cited in the ruling.
  • 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 89-238, Utility Exempton - Residential

This Ruling has been superseded by PS 94(3.1)

The 1989 Connecticut General Assembly has curtailed the sales and use tax exemption for the sale of gas, electricity and heating oil under Conn. Gen. Stat. §§ 12-412(3) and (16), as amended by Public Act No. 89-251. However, the General Assembly did provide for an exemption for use "in any residential dwelling."

The Department of Revenue Services considers long-term health care and chronic care facilities, commonly known as convalescent or nursing homes, to be residential for the purpose of this exemption.

The exemptions for residential use are issued by the utility companies and fuel oil dealers, and not by the Department of Revenue Services. Therefore, each facility should contact its utility company and heating oil dealer directly in order to complete an exemption certificate and claim the residential exemption. Refunds for sales taxes already paid will be issued in the form of a credit against each facility's bill.

LEGAL DIVISION

November 27, 1989

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