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Ezel / Tax Rulings / CT
CT Ruling 90-39 Sales and Use Taxes 1990-04-03

Were waiting-time fees, small-load charges, and separately stated delivery charges taxable on sales of ready-mix concrete?

Short answer: Yes under this ruling. Waiting-time fees and minimum-load charges were part of the seller's gross receipts for ready-mix concrete. Delivery charges were also taxable when delivery occurred before title passed, even if separately stated on the invoice.

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 addressing charges connected with sales of ready-mix concrete under the law and transaction facts then in effect. It does not identify the requesting taxpayer or cite a specific statute, and later legal changes or different title-passage terms can change the result; another taxpayer should not assume it applies. 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 ready-mix concrete seller asked about three transaction charges: a fee when the truck had to wait at the job site before pouring, a minimum-load charge for orders below a prescribed quantity, and transportation charges for delivery.

DRS ruled that the waiting-time fee and minimum-load charge were taxable because both were part of the total gross receipts from selling the concrete.

Delivery charges were also taxable when delivery occurred before title to the concrete passed to the customer. Separately stating transportation on the invoice did not change that result.

What this means for you

Under the ruling, changing the invoice label did not separate charges that were part of completing the concrete sale before title passed. Waiting, small-load, and pre-title delivery charges remained in the taxable amount.

Common questions

Was a fee for waiting at the pour site taxable? Yes. DRS included it in gross receipts from the concrete sale.

Was a minimum-load charge taxable? Yes, including for loads below the seller's prescribed amount.

Did separately stating delivery make it nontaxable? No, when delivery occurred before passage of title.

Citations and references

  • The published ruling cites no specific statute or regulation.

Source

Original ruling text

Ruling 90-39, Gross Receipts

Ruling 90-39

Gross Receipts

In connection with the sale of ready-mix concrete, you have inquired as to whether the sales tax applies to:

fees charged to customers for a waiting period at the site before the concrete is poured; and

minimum load charges for smaller loads which are less than certain prescribed amounts.

It is ruled that the waiting period fees and minimum load charges are part of the total gross receipts for the sales of ready-mix concrete and, therefore, are subject to sales and use tax.

Transportation charges for delivery which occurs prior to the passage of title of the concrete being sold is subject to sales and use tax. The fact that such transportation charges are separately stated on the invoice does not affect the sales and use tax consequences of the transaction.

LEGAL DIVISION

April 3, 1990

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