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This Ruling has been revoked by PS 93(3)

Ruling 89-205

Personnel Services

Conn. Agencies Regs. § 12-426-27(b)(3) provides as follows:

Employment services mean and include the procurement or offer to procure for a consideration: Jobs or positions for those seeking employment; or employees for employers seeking the services of employees.

According to the information presented in your letter, X Company operates an entertainment agency whereby it books independent bands for its clients. These bands do not have contractual agreements, either written or oral, with X Company and have their own individual styles and names. Once the bands have been booked by X Company, they may enter into contracts directly with X Company's clients.

Based on the above set of facts, X Company procures jobs for bands at the request of its clients. X Company operates as an employment agency pursuant to Conn Agencies Regs. § 12-426-27. The regulation does not require that an employment agency renders its services on an ongoing basis and does not provide a distinction between entertainment agencies that have strict control over its employees versus the entertainment agencies that only book first time bands. X Company must apply tax to its fees for booking the bands at Connecticut locations whether it charges the clients or the bands. However, payments received directly by the bands from the third party clients are not subject to the sales and use tax.


November 8, 1989