This Ruling has been obsoleted in part by AN 2000(8)
As of July 1, 1989, repair and maintenance services are subject to sales and use taxes. The taxes are based on the location of the owner of the property. Thus, a Massachusetts tool firm is not subject to tax on a Connecticut firm sharpening its tools.
However, all Connecticut companies receiving tool sharpening services are subject to sales and use tax. If a Connecticut company uses an out-of-state company to sharpen its tools, a use tax would apply to such service.
It is this Department's goal to protect those providing services in Connecticut from the situation described in your letter. We will vigorously enforce the tax laws of this state against Connecticut companies going outside the state for services.
TIMOTHY F. BANNON
November 6, 1989