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Ruling 89-170

Engineering


You render traffic engineering services whereby you conduct traffic impact studies to developments being proposed for municipalities and private development companies. The traffic impact study involves providing advice concerning whether a proposed development will have an impact on the surrounding roadway network. When the impact on the traffic flow will be adverse, you make recommendations to improve the traffic that will be generated by the site. You may design roadway improvements, as well as traffic signals.

Based on the above set of facts, the traffic engineering services that you perform are not subject to sales and use tax.

LEGAL DIVISION

October 30, 1989