Ruling 89-206

Engineering

This Ruling has been obsoleted by AN 94(3)

Conn. Gen. Stat. § 12-407(2)(i)(F), as amended by Public Act No. 89-251, imposes the sales and use tax on "architectural, building engineering and building planning or design services, including interior design and decorating services."

The following engineering design services are not subject to the Connecticut sales and use tax under the above statute:

1. energy planning which entails systems planning for utilities;
2. power delivery and distribution;
3. thermal power generation;
4. hydroelectric power generation and water resources development;
5. environmental and resource planning; and
6. pulp, paper and forest industries.

However, your firm should take note that, when building engineering or building planning or design services are rendered in the performance of the types of projects listed herein, sales tax would be due on that portion of the bill to your client relating to such services. In this regard, the Department does not consider the design of small, mobile control buildings that can be easily disassembled to be taxable as building engineering services.

With respect to project services involving "industrial process and manufacturing facilities," these services involve building programs and interior design services that are subject to tax.

LEGAL DIVISION

November 9, 1989