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 (drs@po.state.ct.us) 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: DRSPriorityOne_CollectionsAssist@po.state.ct.us.

Please check our Frequently Asked Questions page.

This Ruling has been obsoleted in part by AN 94(4)

Ruling 89-38

Renovations


The answers to the questions raised in your letter are as follows:

  1. New construction includes services up to the occupancy of the first tenant.
  2. It is still permissible to show the total with the words, "Tax Included" as long as records are maintained to support the various parts of the total amount billed.
  3. The service portion is the total bill (including profit) minus the cost of material (including sales tax). The general contractor should purchase the services of the subcontractor on resale.
  4. The sales tax is payable when the services are rendered. In this instance, sales tax should be applied to the installments.


LEGAL DIVISION

August 1, 1989