Highway Use Fee - Registration is now open for certain carriers to register for the new Connecticut Highway Use Fee - Click here for more information.

IMPORTANT INFORMATION - the following tax types are now available in myconneCT: Individual Income Tax, Attorney Occupational Tax, Unified Gift and Estate Tax, Controlling Interest Transfer Tax, and Alcoholic Beverage Tax. - Click here for the latest information.

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

Ruling 90-22

Consulting Services

This Ruling has been obsoleted by AN 94(4)

Typically, a bank, which has extended mortgages to their client for a construction project, hires X, an architect, to inspect the project in order to verify the clients "Request for Payment Certificate" in light of the progress of construction of the project.

It is our opinion that these services are subject to the sales and use tax as a business consulting service. The Department does not view X's services as being services to new construction under Conn Agencies Reg. 26 and thus exempt from the tax.

X has been hired by the bank to represent its interests as a lending institution and, as a result, X's services are directly related to the bank's core business which is the lending of money. Therefore, X's services are subject to tax as a business consulting service, pursuant to Section 12-407(2)(i)(J) of the General Statutes, as amended by Public Act No. 89-251, because X provides advice to the bank on matters relating to the operations of its core business activities. In this instance, X's services are not subject to tax on the basis that they are architectural services.


February 13, 1990