Highway Use Fee - Registration is now open for certain carriers to register for the new Connecticut Highway Use Fee - Click here for more information.

IMPORTANT INFORMATION - the following tax types are now available in myconneCT: Individual Income Tax, Attorney Occupational Tax, Unified Gift and Estate Tax, Controlling Interest Transfer Tax, and Alcoholic Beverage Tax. - Click here for the latest information.

Ruling 89-110, Forestry Management Services

This Ruling has been obsoleted in part by AN 2000(8)

According to the information presented in your letter, forestry management services involve an inventory of all trees by type on the land. A plan is prepared and submitted to the land owner containing recommendations for tree care, harvesting and planting. When the plan is approved by the land owner, an implementation phase is performed whereby trees are selected for harvest and removed from the land. The forestry manager makes an arrangement for the sale of the timber and receives a commission based on a percentage of the proceeds for his forestry management services.

Land planning services involve studying the most efficient use of the land and providing recommendations to assist in the subdivision of land. Soil testing services are also rendered by your client.

The total gross receipts for forestry management services are taxable as landscaping services pursuant to §12-407(2)(i)(X) of the Connecticut General Statutes, as amended by Public Act No. 89-251. Broker fees for arranging the sale of the timber are taxable pursuant to §12-407(2)(i)(U) of the Connecticut General Statutes, as amended by Public Act No. 89-251. Soil testing services are exempt from sales and use tax. Land planning services are not subject to sales and use tax.


September 26, 1989