To the extent that X Company is the lessor of the equipment covered by the computer maintenance agreement and its client is the lessee of such equipment, section 12-426-25(c) of the Regulations of Connecticut State Agencies provides in part that a lessor's gross receipts that are subject to sales tax "include all charges including but not limited to maintenance and service contracts ... whether or not such amounts are separately stated."
To the extent that X Company is not the lessor of the equipment covered by the computer maintenance agreement, sales that are subject to sales and use taxes include "any repair or maintenance service to any item of tangible personal property." Section 12-407(2)(i)(DD) of the Connecticut General Statutes. Computer hardware and computer software are considered by the Department to be tangible personal property.
September 8, 1989