Ruling 89-189

Architectural Services

This Ruling has been obsoleted by AN 94(3)

You have asked for a ruling on the sales and use tax consequences of certain feasibility studies performed by architects.

The specific type of feasibility study in question is a study where architects determine if a particular office space will accommodate their client. Typical client concerns include whether there is sufficient space for personnel, equipment and expected growth. The architect evaluates the office space in light of the client's needs and renders his opinion as to whether the space meets the client's expectation.

Section 12-407(2)(i)(F) imposes the sales and use tax on "architectural, building engineering and building planning or design services, including interior design and decorating services." It is our opinion that feasibility studies rendered by architects concerning office space are taxable as "building planning or design services."

LEGAL DIVISION

October 31, 1989