AN 94(4)

Rulings and Administrative Pronouncements Obsolete By Subsequently Promulgated Sales And Use Tax Regulations

PURPOSE: The purpose of this Announcement is to identify rulings and administrative pronouncements that, while valid when issued, should no longer be relied upon. The Department will declare a ruling or pronouncement to be "obsolete" where, because of changes in the law on which a ruling or pronouncement was based or because a position that was taken in a ruling or pronouncement has been addressed in a subsequently promulgated regulation, the ruling or pronouncement is no longer considered authoritative and should not be relied upon for future transactions. By declaring a ruling or pronouncement to be obsolete, the Department intends to eliminate unnecessary research and to reduce the possibility of erroneous decisions by taxpayers and tax practitioners. The fact that a ruling or pronouncement is "obsolete" does not affect its past validity or its application to past transactions.

REPLACING OLD SALES TAX MANUFACTURING REGULATION WITH NEW ONES: In 1991, the Regulation Review Committee of the General Assembly approved the adoption of Conn. Agencies Regs. §12-412(18)-1 (Materials, tools and fuel used directly in an industrial plant in the actual fabrication of finished products to be sold) and Conn. Agencies Regs. §12-412(34)-1 (Machinery used directly in a manufacturing production process) and the repeal of Conn. Agencies Regs. §12-426-11b (Machinery, materials, tools and fuel). The new regulations apply to sales and purchases occurring on or after July 1, 1991, and the old regulation ceased to apply to sales and purchases occurring on or after that date. Accordingly, the following rulings, which interpreted the old regulation, are no longer considered determinative with respect to sales or purchases occurring on or after July 1, 1991:

Ruling Nos. 89-3 and 89-222

REPLACING OLD SERVICES TO INCOME-PRODUCING REAL PROPERTY REGULATION WITH NEW ONE: In 1991, the Regulation Review Committee of the General Assembly approved the adoption of Conn. Agencies Regs. §12-407(2)(i)(I)-1 (Services to industrial, commercial or income-producing real property) and the repeal of Conn. Agencies Regs. §12-426-26. The new regulation applies to sales and purchases occurring on or after July 1, 1991, and the old regulation ceased to apply to sales and purchases occurring on or after that date. Accordingly, the following rulings, which interpreted the old regulation, are no longer considered determinative with respect to sales or purchases occurring on or after July 1, 1991:

Ruling Nos. 89-208, 89-209, 89-281 and 90-82

Ruling No. 89-9, which interpreted a portion of Conn. Agencies Regs. §12-426-26, the statutory basis for which had been repealed by 1989 Conn. Pub. Acts 251, §1, is not determinative with respect to transactions occurring on or after July 1, 1989.

A previously issued ruling or administrative pronouncement may not be considered authoritative because a position taken in the ruling or pronouncement has been addressed in a subsequently promulgated regulation. Accordingly, the following rulings or pronouncements, which took positions that were addressed in the subsequently promulgated Conn. Agencies Regs. §12-407(2)(i)(I)-1, are no longer considered determinative with respect to sales or purchases occurring on or after July 1, 1991:

Ruling Nos. 89-38 (second, third and fourth paragraphs), 89-47, 89-54, 89-60 (first and second paragraphs), 89-78 (to the extent the material is discussed in subsection (g) (2) of Conn. Agencies Regs. §12-407(2)(i)(I)-1, 89-113 (to the extent the material is discussed in subsections (c)(2) and (g)(2) of Conn. Agencies Regs. §12-407(2)(i)(I)-1), 89-123 (third paragraph), 89-145, 89-148, 89-185 (first paragraph), 89-194, 89-260, 90-5, 90-12, 90-13 (first paragraph), 90-18, 90-23 (second and third paragraphs), 90-31, 90-45 and 90-57; LSN-91 (to the extent not already superseded by SN 92(23)); and Bulletin No. 38

REPLACING OLD BUSINESS MANAGEMENT AND BUSINESS ANALYSIS SERVICES REGULATION WITH NEW ONE: In 1991, the Regulation Review Committee of the General Assembly approved the adoption of Conn. Agencies Regs. §12-407(2)(i)(J)-1 (Business analysis, business management, business management consulting and business public relations services) and the repeal of subsections (b) (4) and (10) of Conn. Agencies Regs. §12-426-27. The new regulation applies to sales and purchases occurring on or after July 1, 1991, and the old regulation ceased to apply to sales and purchases occurring on or after that date. Accordingly, the following rulings, which interpreted the old regulation, are no longer considered determinative with respect to sales or purchases occurring on or after July 1, 1991:

Ruling Nos. 89-4, 89-15, 89-61, 89-70, 90-42, 90-46 and 90-56

A previously issued ruling may not be considered authoritative because a position taken in the ruling has been addressed in a subsequently promulgated regulation. Accordingly, the following rulings, which took positions that were addressed in the subsequently promulgated Conn. Agencies Regs. §12-407(2)(i)(J)-1, are no longer considered determinative with respect to sales or purchases occurring on or after July 1, 1991:

Ruling Nos. 89-27, 89-53, 89-58, 89-65, 89-82, 89-129, 89-151 (second paragraph), 89-180 (second paragraph), 90-22, 90-32, 90-55, 90-76, 91-1 and 91-8

EFFECT OF THIS DOCUMENT: An Announcement is a document that alerts taxpayers to important information. Such information may involve new Department administrative policies or procedures.

EFFECT ON OTHER DOCUMENTS: The above-listed rulings, LSN and Bulletin are obsolete.

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Website.

Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

AN 94(4)
Sales and Use Taxes
Issued: 7/28/94