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Ezel / Tax Rulings / CT
CT Ruling 89-45 Sales and Use Taxes 1989-08-15

Were a new truck chassis and the separately stated charge to install it taxable under Connecticut Ruling 89-45?

Short answer: The chassis sale was taxable, but a separately stated charge to install the new chassis on a motor vehicle for a truck dealer or end user was not. A truck dealer could buy the chassis for resale without tax by giving a bona fide resale certificate.

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 the law then in effect to sales and installation of new motor-vehicle chassis and to truck-dealer resale purchases. Later statutory or administrative changes may produce a different result, and another seller, installer, or dealer should not assume this historical ruling controls a current transaction. 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 current treatment.
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

The sale of a chassis was subject to sales and use tax, but a separately stated charge to install a new chassis on a motor vehicle for a truck dealer or end user was not taxable under this ruling.

A truck dealer could buy the chassis for resale without paying sales tax if it gave the seller a bona fide resale certificate.

What this means for you

The historical ruling separated the taxable chassis from the nontaxable installation charge and required that installation charge to be stated separately. It also required resale-certificate documentation for a dealer's tax-free purchase for resale.

Common questions

Was the chassis taxable? Yes.

Was installation taxable? No, when the charge to install the new chassis was separately stated.

Could a truck dealer buy the chassis tax-free? Yes, for resale in the regular course of business with a bona fide resale certificate.

Citations and references

  • Conn. Agencies Regs. § 12-426-1, as cited in the ruling.

Source

Original ruling text

Ruling 89-45, Installation

Ruling 89-45

Installation

The sale of a chassis is subject to the sales and use tax. A separately-stated charge for the installation of a new chassis on a motor vehicle for truck dealers or end users is not taxable.

Truck dealers may purchase the chassis for resale in the regular course of business without payment of sales tax providing they furnish you with a bona fide Resale Certificate pursuant to section 12-426-1 of the Regulations of Connecticut State Agencies.

LEGAL DIVISION
August 15, 1989

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