Connecticut State Department of Revenue Services

Ruling 90-77

Crane and Rigging Services

FACTS:

Company is in the business of providing services such as crane work, "rigging" services, hauling services and trucking services. Company always furnishes a truck and driver for its transportation services and an operator with the crane or other equipment which it uses. Company retains control over all of the equipment as to when, how, and if it is to be used. Its customers contract for performance of specific jobs such as transportation or rigging of specific items as opposed to the use of Company's equipment.

ISSUE:

Whether, under the facts stated above, Company is performing a contract for services or is engaged in the rental of equipment.

RULING:

Company's contract is for the performance of services because it contracts to do a specific job and maintains control over how, when and if the equipment is used. Section 12-426-25 of the Regulation of Connecticut State Agencies provides rules for determining whether a contract will be one for services or a lease of tangible personal property. Section 12-426-25(d) states,

...[Where an operator is supplied with the equipment, the contract is entered into for a specific job or operation, and where the owner of the equipment through the operator retains complete control over the equipment and retains discretion as to when and how to perform, said contract will be one for services and not for lease.

LEGAL DIVISION

December 20, 1990