BUILDING CONTRACTORS’ - Connecticut

1 IP 2006 (35)S T A T E O F C O N N E C T I C U TDEPARTMENT OF REVENUE SERVICESI ssued: March 2007 BUILDINGCONTRACTORS GUIDE TOSALES AND USETAXES2IP 2006(35), BUILDING Contractors' Guide to Sales and Use TaxesThis document is not intended to be used as a legalruling, but as a general guide for the proper treatmentof sales and use taxes as they relate to the every potential tax situation is covered in this you have questions about the taxability of goods orservices you provide, contact the Department ofRevenue Services (DRS) Taxpayer Services Division(see inside back cover).

2 TO ORDER INFORMATIONAL PUBLICATION 2006(35), BUILDING CONTRACTORS GUIDE TO SALES AND USE TAXES,SEND A 9" X 12" SELF-ADDRESSED ENVELOPE WITH $ POSTAGE AFFIXED TO:DEPARTMENT OF REVENUE SERVICESMAIL UNIT, BUILDING CONTRACTORS GUIDE25 SIGOURNEY STREETHARTFORD CT 06106-5032 VISIT THE DRS WEBSITE AT TO PREVIEW ANDDOWNLOAD FORMS AND 2006(35), BUILDING Contractors' Guide to Sales and Use Taxes3 TABLE OF CONTENTSThe BasicsNONTAXABLE Materials .. 14 Purchasing 15 TYPES OF NONTAXABLE With Exempt Organizations .. 15 Contracts With Governmental Agencies .. 16 Federally Recognized Indian Tribes.

3 16 Connecticut Development Authority (CDA) .. 16 Low and Moderate Income Housing .. 16 Waste Treatment Facilities .. 17 Air Pollution Control 17 Out-of-State 18 EXCLUSION FOR SERVICES RELATED TOHAZARDOUS WASTE AND OTHER PERSONAL Sheds, Buildings, and Trailers .. 18 INSTALLATION VERSUS REPAIR OR MAINTENANCEOF TANGIBLE PERSONAL of Systems .. 19 Repair or Maintenance of TangiblePersonal Property (Units).. 19 Warranty 19 EQUIPMENT RENTAL OR SERVICE 20 Equipment CONTRACTS WITHDIRECT PAYMENT PERMIT Construction Projects .. 21 New Construction 21 Construction Projects That InvolveRenovation and New Construction.

4 21 Recurring Taxable Services Providedto Real Property Purchased byDirect Payment Permit Holders .. 22 BOND REQUIREMENTS OFNONRESIDENT 8 OBTAINING A SALES AND USE TAX 8 ACCOUNTING 8 BAD 8 TYPES OF CONSTRUCTION 8 Lump-Sum or Fixed Fee Contract .. 8 Cost-Plus 9 Time and Material Contract With an Upset orGuaranteed Price That May Not Be 9 REAL 9 Types of Real Property .. 9 New ConstructionOwner-Occupied Residential PropertyCommercial PropertyIndustrial PropertyIncome-Producing PropertyPublic Right-of-WayServices Taxable to Certain Real Property .. 10 Services Taxable to All Real Property.

5 10 Site Improvements .. 10 SERVICE 10 Reimbursed 11 contractor s Labor Subject to Tax .. 11 contractor s Labor Not Subject to Tax .. 11 contractor s Purchase of Subcontractor 11 General contractor Issues aResale Certificate to a SubcontractorGeneral contractor Does Not Issue aResale Certificate to a SubcontractorTemporary Employment Agency Services .. 13 MATERIALS USED INCONSTRUCTION OF THE S BILL TO THE FINAL Held in Trust .. 144IP 2006(35), BUILDING Contractors' Guide to Sales and Use TaxesAir Conditioning (See Central Air Conditioning and Ventilation Systems)Alarm 24 Antennas and Communications 24 Appliances (See Kitchens and Telephone,Audio-Visual, and Computer Cable or Wiring)Architectural 25 Audio-Visual Cable or Wiring(See Telephone, Audio-Visual, and ComputerCable or Wiring)Awnings (See also Standard Units of Equipment).

6 25 Bathrooms (See also Standard Units of Equipment) .. 26 26 Cabinets (See Bathrooms, Kitchens, and StandardUnits of Equipment) 27 Carpet Cleaning (See Janitorial Services)Carpeting (See Floor Coverings)Central Air 27 Central Vacuum 28 Chimney 29 Clean Rooms/HVAC Systems(See also Heating Systems and Ventilation Systems) .. 29 Computer Cable or Wiring(See Telephone, Audio-Visual, and ComputerCable or Wiring) 30 Driveways, Parking Lots and Walkways(For asphalt, tar, macadam, andpoured concrete areas, see Paving)(For brick, stone areas, or concrete pavers,see Landscaping and Horticulture Services)Duct Work(See Interior Sheet Metal and Ventilation Systems) 30(Complete wiring or rewiring of structures or theupgrading of the electrical service of a structure)Electrical 31 Elevators and Escalators(See also Inclined Stairway Chairlifts).

7 31 Energy 32 Excavating, Grading, and Land 32 Exterior Sheet Metal Work (See also Gutters) .. 33 Fencing (See also Landscaping and HorticultureServices and Silt Fencing) .. 33 Fire, Water, and Wind Damage(Cleaning, deodorizing, and removalof water or debris) .. 33 Floor 34 Floor 34 Furnaces (See Heating Systems)Garage 35 Garage Door 35 Garbage 36 Gazebos (See Sheds and Gazebos)Gutters (See also Exterior Sheet Metal Workand Maintenance Services to Real Property) .. 36 Hatchways (See Standard Units of Equipment)Heating Systems(See also Clean Rooms/HVAC Systems).

8 36 Home Entertainment/Home Theater 37 Hot Tubs, Spas, and 38 House Washing (See Maintenance Services to RealProperty and Painting, Staining, Varnishing, andWaterproofing)Inclined Stairway 39 Inspections (See Structural Inspections)Interior 40 Interior Sheet Metal (Duct work).. 40 Janitorial Services(See also Maintenance Services to Real Property) .. 40 Landscape Architectural 41 Landscaping and Horticulture 42 Locksmith 42 The DetailsIP 2006(35), BUILDING Contractors' Guide to Sales and Use 43 Maintenance Services to Real 44 Masonry (See Brickwork/Stonework)Moving a 44 Painting, Staining, Varnishing,and 44 Patio (See Landscaping and Horticulture Services)Paving(See also Maintenance Services to Real Property).

9 45 Pest Control (See Exterminating) 45 Power Washing(See Maintenance Services to Real Property)Precast Concrete or Cement Steps(See Standard Units of Equipment)Protection, Patrol Work, and Watchman 46 Refuse 46 Retaining Walls(See Landscaping and Horticulture Services) 47 Saunas(See Hot Tubs, Spas, and Sauna)Septic Systems(See also Standard Units of Equipment) .. 47 Septic System 48 Sheds and 48 Sheet Metal(See Interior Sheet Metal or Exterior Sheet Metal Work) 49 Sign Painting and Lettering 49 Silt 49 Snow Plowing/Removal(See Maintenance Services to Real Property)Spas (See Hot Tubs, Spas, and Sauna)Sprinkler Systems (Interior)(See also Landscaping and Horticulture Services forexterior sprinkler systems).

10 49 Staining (See Painting, Staining, Varnishing,and Waterproofing)Standard Units of 50 Stock Cabinets (See Standard Units of Equipment)Stonework (See Brickwork/Stonework)Structural 51 Sump 51 Swimming Pools(See also Hot Tubs, Spas, and Sauna) .. 51 Telephone, Audio-Visual, and Computer Cableor Wiring(See also Home Entertainment/Home Theater Systems) .. 53 Testing for 53 Underground 53 Underground Storage 53 Varnishing(See Painting, Staining, Varnishing, and Waterproofing)Ventilation Systems(See also Clean Rooms/HVAC Systems) .. 54 Walls(For exterior walls, see alsoLandscaping and Horticulture Services).