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This Ruling has been obsoleted in part by AN 94(3)

Ruling 89-242


Your firm is involved in the evaluation, feasibility studies, environmental analysis and designs for the development of waterfront properties in relation to specific marina complexes or projects.

Feasibility studies and analyses necessary to determine the approach for such designs are not subject to the sales and use tax unless an enumerated service such as "land surveying" or "architectural, building engineering and building planning or design" is involved. Thus, bathymetric or hydrographic surveys are taxable as land surveying services. The portion of preliminary layout design and site plans attributable to building engineering and building planning or design is subject to tax.

The following services would not be subject to tax:

  • environmental surveys, evaluations and reports;
  • borings;
  • core sampling and laboratory testing of bottom sediments;
  • site visits, evaluations and investigations;
  • parking plans;
  • market studies;
  • financial feasibility studies; and
  • meetings with regulatory agencies governing the design parameters.

Your sealed engineering designs and drawings are taxable only to the extent that they involve building engineering and building planning or design.

The preparation of permit applications, the preparation of non-sealed permit application plans and drawings that are not construction drawings, the coordinating of the permit application review processes, and meetings with various regulatory agencies are subject to tax only to the extent that building engineering and building planning or design are involved.


November 27, 1989