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Ezel / Tax Rulings / CT
CT Ruling 89-51 Sales and Use Taxes 1989-08-15

Were parts and labor to repair manufacturing production machinery taxable under Connecticut Ruling 89-51?

Short answer: Yes. Repair or replacement parts and repair labor for production machinery were subject to 5.5% sales or use tax. The statute's $7,500 manufacturer refund applied to qualifying parts, not labor charges. The ruling is obsolete.

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 1989 Connecticut Department of Revenue Services Ruling is not current. The official page says it was obsoleted by Announcement 2000(8), so it is provided only as historical reference and should not be used as current authority. The 5.5% rate and $7,500 refund described were the law then in effect and 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 current manufacturing exemptions, rates, and repair 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

Repair or replacement parts for machinery used directly in manufacturing production were subject to 5.5% sales or use tax under this ruling. Labor to repair production machinery in a manufacturing facility was also taxable.

The ruling said the $7,500 manufacturer refund under Conn. Gen. Stat. § 12-412d applied to qualifying repair or replacement parts, not to repair labor.

The official archive says this ruling was obsoleted by Announcement 2000(8).

What this means for you

The historical ruling treated both parts and labor as taxable but allowed the stated refund only for parts. Its tax rate, refund amount, and obsolete status mean it does not establish current treatment.

Common questions

Were repair parts taxable? Yes, at the ruling's stated 5.5% rate.

Was repair labor taxable? Yes.

Did the $7,500 refund cover labor? No. It applied to qualifying repair or replacement parts.

Citations and references

  • Conn. Gen. Stat. § 12-412d, as cited in the ruling.
  • Public Act No. 89-123, as cited in the ruling.

Source

Original ruling text

Ruling 89-51, Repairs

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

Ruling 89-51

Repairs

This Ruling has been obsoleted by   AN 2000(8)

You have inquired about the taxability of labor to repair production machinery.

The sales of repair or replacement parts for machinery used directly in the manufacturing production process are subject to 5.5% sales or use tax. Labor charges to repair production machinery in a manufacturing facility are applicable to the sales and use tax.

Section 12-412d of the Connecticut General Statutes, as amended by Public Act No. 89-123, does not provide a $7,500 refund for labor charges to manufacturers for repairs to production machinery in a manufacturing facility. The $7,500 refund applies to purchases of repair or replacement parts for machinery used directly in the manufacturing production process.

LEGAL DIVISION

August 15, 1989

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