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

Ruling 89-161


Environmental site assessments are not subject to the sales tax either when rendered prior to the design and construction of a building, during new construction, or to existing commercial, industrial or income-producing property. Such assessments or inspections to non-physical aspects of a building are not taxable. Thus, air, soil and water testing are not taxable.

Ancillary designs, such as sewers, septic systems, etc., are not subject to the sales tax.

Consulting services rendered by a licensed professional engineer with respect to planning the remediation of a contaminated site or the removal of underground storage tanks, either from a vacant site or a site with structures on it, are not subject to the sales tax. Likewise, the removal of underground storage tanks is not subject to sales tax.

X Engineering is the final consumer of materials and taxable services, such as land surveying, which X Engineering uses in rendering its services. Accordingly, X Engineering must pay sales tax on these purchases.


October 27, 1989