This information is not current and is being provided for reference purposes only
Company X is in the process of undertaking a "closure plan" as mandated by the Department of Environmental Protection in order to eliminate the pollution of the groundwater system adjacent to its plant. Section 12-407(2)(i)(I) of the General Statutes excludes from the sales and use tax "any such services rendered for the voluntary containing or removing of hazardous waste."
Whether hazardous waste containment or removal services rendered in accordance with a mandate or order from the Department of Environmental Protection are considered to be "voluntary" with the meaning of Section 12-407(2)(i)(I)?
In order to be excluded from sales and use tax as being "voluntary" within the language of Section 12-407(2)(i)(I), a company must act solely on its own initiative in the containment or removal of hazardous waste. The removal or containment of hazardous waste is not "voluntary" when performed following an order or mandate issued by a federal or state agency or by a court order. Thus, Company X must pay sales tax in undertaking the closure plan mandated by the Department of Environmental Protection.
February 11, 1991