Despite Tuesday's storm, DRS employees are answering emails and phone calls, and completing other essential agency functions. If you have a question about state taxes administered by DRS, email ( or call us (860-297-5962) during regular business hours. Phone wait times are minimal.

Walk-in services at all DRS branch office locations remain suspended.

Email the Priority One Taxpayer Assistance Program:

Please check our Frequently Asked Questions page.

This information is not current and is being provided for reference purposes only

Ruling 89-168

Utility Sales Tax

This Ruling has been superseded by PS 94(3)

The Legal Division has reviewed your request for guidance on behalf of utility companies concerning the implementation of the sales tax on gas and electric services.

1. Tax refunds should be processed by each utility by crediting the customer's account and by deducting the refund amount from a subsequent sales tax payment. Thus, the Department of Revenue Services will not be directly involved in this process.

When the customer completes the exemption certificate before the utility has paid the customer's sales tax to the State, the utility may credit the customer's account and deduct the refund amount from the sales tax then due and payable to the State.

When the customer completes his exemption certificate after the utility has paid the customer's sales tax to the state, the utility may credit the refund amount to the customer's sales tax and deduct the refund amount against a subsequent sales tax payment due and payable to the State.

2. With respect to the miscellaneous charges outlined in your letter, the utility sales tax would apply to service charges. The sales tax on utility bills does not apply to:

a. installation charges;

b. charges for the replacement or repair of utility-owned equipment;

c. charges for maintenance or repair to customer-owned equipment is subject to the sales tax on maintenance and repair services to tangible personal property under Conn. Gen. Stat. § 12-407(2)(i)(DD);

d. service plans are taxable in accordance with Special Notice LSN-92 enclosed herewith;

e. late payment charges are not subject to the sales tax; and

f. bad-check charges are not subject to the sales tax.

3. The utility may rely on an exemption certificate even though the customer fails to state its SIC Code(s) or tax registration number.


October 27, 1989