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Ezel / Tax Rulings / CT
CT Ruling 89-261 Sales and Use Taxes 1989-12-07

Were a youth league's sales of pizza slices, hot dogs, candy bars, or soda for $5 or less exempt when the proceeds supported its youth activities?

Short answer: Yes under this historical ruling. The listed items were exempt when sold for $5 or less and the proceeds were used exclusively for the youth activities the league sponsored and supported. The league still had to register and file sales and use tax returns.

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 applying a historical exemption to one youth league's specified sales. The result depended on the listed items selling for $5 or less and the proceeds being used exclusively for the youth activities the league was formed to sponsor and support; the league still had registration and return-filing duties. The ruling does not state that it remains 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)

Plain-English summary

A youth league sold pizza slices, hot dogs, candy bars, and soda for $5 or less. DRS ruled that those sales were exempt from sales and use tax under the historical statute when the money generated was used exclusively for the youth activities the league was formed to sponsor and support.

The exemption did not eliminate the league's administrative duties. DRS required it to register for sales and use tax and file returns, and suggested requesting annual filing with its registration application.

What this means for you

Under the historical ruling, both the sales-price limit and use of the proceeds mattered. The league also remained responsible for tax registration and returns even though the described sales were exempt.

Common questions

Which sales did the ruling list? Pizza slices, hot dogs, candy bars, and soda.

What was the price limit? $5 or less.

How did the proceeds have to be used? Exclusively for the youth activities the league was formed to sponsor and support.

Did the league still have to register and file returns? Yes. DRS also suggested requesting annual filing when submitting the registration application.

Citations and references

  • Conn. Gen. Stat. § 12-412(26), as cited in the ruling.

Source

Original ruling text

Ruling 89-261, Exemptions

The sales of pizza slices, hot dogs, candy bars and/or soda by the X League [X] that sell for five dollars or less are exempt from sales and use tax pursuant to section 12-412(26) of the Connecticut General Statutes provided the money generated from said sales are used exclusively for purposes of youth activites which X is formed to sponsor and support.

X is required to register for sales and use tax and file sales and use tax returns. We suggest that you request annual filing when you submit an Application for Tax Registration Number, a copy of which is enclosed.

LEGAL DIVISION

December 7, 1989

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