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Ezel / Tax Rulings / CT
CT Ruling 90-32 Sales and Use Taxes 1990-03-12

Were a wedding coordinator's full-service, partial-service, referral, or commission fees subject to Connecticut sales and use tax?

Short answer: No under this historical ruling. DRS said wedding-coordinator service fees were not taxable, but tangible personal property sold by the coordinator was taxable. Tax on caterers, photographers, videographers, and similar services was charged to the coordinator or whoever agreed to pay those providers. DRS says AN 94(4) obsoleted the ruling.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Connecticut tax law, with citations.

Currency note: this ruling is from 1990
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 1990 Connecticut Department of Revenue Services Ruling reflecting the wedding-coordinator service rules then in effect. DRS expressly marks it 'not current' and says Announcement (AN) 94(4) obsoleted it. Its classifications of coordinator fees, sold property, and subcontracted vendor services should not be assumed current or applied to different arrangements. 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 -- obsolete historical guidance. DRS marks this ruling "not current" and states that it was obsoleted by Announcement (AN) 94(4).

Plain-English summary

A wedding coordinator could offer full service, partial service, referrals, or commission-based arrangements. A full-service coordinator handled all necessary services and subcontracted work such as limousines, catering, photography, and videography. A partial-service coordinator referred clients to providers, charged a retainer, and might receive a finder's fee.

Under DRS's then-current interpretation, the wedding coordinator's service fee was not taxable. The result changed for other transaction components:

  • Tangible personal property sold by the coordinator was subject to sales and use tax.
  • Sales tax connected with caterers, photographers, videographers, and similar providers was charged to the coordinator or other person responsible for paying those services.

What this means for you

The historical ruling separated the coordinator's planning and referral compensation from taxable goods and vendor services. Because AN 94(4) later obsoleted the ruling, current bundled-event and vendor-payment rules must be checked independently.

Common questions

Were referral or retainer fees taxable? The ruling broadly says fees for wedding-coordinator services were not taxable under the Department's interpretation at that time.

What if the coordinator sold physical items? Those items were taxable.

Who paid tax on caterers and photographers? The coordinator or whoever assumed responsibility for paying those services.

Citations and references

  • Announcement (AN) 94(4) -- identified by DRS as obsoleting this ruling.

Source

Original ruling text

Ruling 90-32, Consulting Service

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

Ruling 90-32

Consulting Service

This Ruling has been obsoleted by   AN 94(4)

Your have inquired about the application of the sales and use tax to the services of a wedding coordinator/consultant.

A wedding coordinator/consultant is responsible for coordinating the plans of the wedding. This service may be performed in several ways: full service, partial service, referral service and commissions.

A full service coordinator will handle all the necessary services. Services such as limousines, caterers, photographers, videographers are subcontracted.

A partial service coordinator refers business to other services and charges a retainer fee for doing so. A partial service coordinator may receive a finders fee from a referral to a service provider.

Based upon the Department's present interpretation of the sales and use tax laws, the fee for the services of a wedding coordinator are not subject to sales and use tax. If the coordinator sells tangible personal property, those items would be subject to sales and use tax. The sales tax associated with the use of caterers, photographers, videographers etc. should be charged to the wedding coordinator or whomever assumes the responsibility of paying for such services.

James F. Meehan

Commissioner

March 12, 1990

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