Was a one-time cleaning of a newly constructed store taxable when performed before the certificate of occupancy?

Note -- partly superseded and obsolete historical guidance. DRS marks this ruling "not current," says Policy Statement (PS) 94(6) superseded it in part, and says Announcement (AN) 2000(8) obsoleted it in part.

Plain-English summary

A requester asked whether a one-time cleaning of a newly constructed store was taxable when performed before the store received its certificate of occupancy.

DRS distinguished cleaning from refuse disposal. Under the cited regulation, refuse disposal during new construction of industrial, commercial, or income-producing property was not subject to sales tax.

Janitorial services had once received the same treatment. But DRS said the law changed effective July 1, 1989, making janitorial services taxable in all instances. The one-time new-store cleaning was therefore taxable, even before issuance of a certificate of occupancy.

What this means for you

The historical ruling classified post-construction cleaning as taxable janitorial work rather than nontaxable new-construction refuse disposal. Its official page now says later guidance displaced the ruling in part, so the current boundary must be checked independently.

Common questions

Did cleaning before occupancy avoid tax? No. The timing before the certificate of occupancy did not change the janitorial classification.

Was construction refuse disposal treated the same way? No. The ruling says refuse disposal during qualifying new construction was not taxable under the cited regulation.

Can this ruling establish today's treatment? No. DRS marks it not current, partly superseded, and partly obsolete.

Citations and references

• Conn. Gen. Stat. § 12-407(2)(i)(AA), as amended by 1989 Conn. Pub. Acts 251.
• Conn. Agencies Regs. § 12-426-26.
• Policy Statement (PS) 94(6) and Announcement (AN) 2000(8) -- identified by DRS as later guidance.

Source

• Landing page: Connecticut DRS Rulings
• Ruling: Ruling 90-37

Original ruling text

Ruling 90-37, Janitorial Services

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

Ruling 90-37

Janitorial Services

This Ruling has been superseded in part by   PS 94(6) ;  obsoleted in part by   AN 2000(8)

You have inquired whether a one-time cleaning of the various parts of a new store after the new construction is subject to the sales and use tax.

Refuse disposal during new construction of industrial, commercial and income-producing property would not be subject to sales tax under section 12-426-26 of the Regulations of Connecticut State Agencies.

Prior to July 1, 1989, janitorial services were treated in the same manner. However, pursuant to section 12-407(2)(i)(AA) of the Connecticut General Statutes, as amended by Public Act No. 89-251, janitorial services are now taxable in all instances. Therefore, the one-time cleaning service described herein is now subject to sales and use tax as a janitorial service even when performed prior to the issuance of a certificate of occupancy.

LEGAL DIVISION

April 3, 1990