AN 95(5)

Modifications And Corrections To IP 95(1), A Guide To Connecticut Sales And Use Taxes For Building Contractors

PURPOSE: The purpose of this Announcement is to identify modifications and corrections to IP 95(1), A Guide to Connecticut Sales and Use Taxes For Building Contractors, issued February 16, 1995. On June 5, 1995, IP 95 (1.1) was issued which added information and corrected errors included in the first edition. This announcement identifies and explains those changes.

Because this announcement includes all the corrections and additions to IP 95(1), it is not necessary to order a copy of the new edition. All other information contained in IP 95(1), except the areas specifically referenced in this announcement, remains accurate and reliable.

CORRECTIONS:

On Page 15 of IP 95(1), the references to "See Example..." should read as follows:

(See Example 1 on Page 51 of this manual.)

(See Example 2 on Page 52 of this manual.)

(See Example 4 on Page 54 of this manual.)

On Page 16 of IP 95(1), the reference to "See Example..." should read as follows:

(See Example 3 and 4 on Pages 53 and 54 of this manual.)

On Page 46 of IP 95(1), the second bullet under WATER HEATERS in the Repairs and Maintenance section erroneously mentioned an exemption when performed under a "sewer" contract. Corrected, the complete bullet should read:

repairs to or maintenance of the hot water heater (except when performed under a service contract and no additional charge is made for the repair).

On Page 52 of IP 95(1), in Example 2, in the box containing the BREAKDOWN OF GENERAL CONTRACTOR'S BOOKS, the Contract Price should be $100,000.00. (Originally listed as "Subcontracts: $100,00.00".) The correct line in the example should read:

Contract Price $100,000.00

ADDITIONS:

On Page 19 of IP 95(1), under Air Pollution Control Facilities, the Materials section should read as follows:

Materials: If the item appears on the "List Of Approved Air Pollution Equipment" contained in PS 99(2), Tax Credit And Exemptions For Certain Air Pollution Equipment,

and

the item is intended to be incorporated into or used and consumed in the operation of facilities, the primary purpose of which is the reduction, control or elimination of air pollution, the contractor may purchase the item exempt from sales or use tax by issuing to his or her supplier a completed CERT 117, Certificate for Purchases of Tangible Personal Property Incorporated Into or Consumed in Air Pollution Control Facilities.

If the item does not appear on the list in PS 99(2) but the purchaser intends to use or consume it in the operation of such facilities, the purchaser must receive written approval from the Commissioner of Environmental Protection indicating that such item is approved for use in an air pollution control facility. The purchaser would then buy the item exempt from sales or use tax by issuing both the approval letter and a completed CERT 117 to his or her supplier. (PS 99(2) and CERT 117 are available from the department's Forms Unit.)

The contractor must pay sales or use tax on all material and supplies that are not covered by this exemption.

On Page 42 of IP 95(1), a new topic, SILT FENCING, has been added and reads:

Silt fencing is installed around a construction site as an erosion control measure. When the construction is complete, the silt fencing is removed.

Materials: The silt fencing contractor pays sales or use tax on all purchases of materials.

Labor: The contractor does not charge sales tax when installing the silt fence on:

New construction

Owner-occupied residential property

The contractor must charge sales tax when installing the silt fence on:

Existing commercial property

Existing industrial property

Existing income-producing property

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

EFFECT ON OTHER DOCUMENTS: IP 95(1) (issued 2/16/95), A Guide To Connecticut Sales and Use Taxes For Building Contractors, has been corrected and modified. The information in this announcement identifies all of the changes made to IP 95(1). All other information contained in IP 95(1) remains accurate and reliable.

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 95(5)
Sales and use taxes
Issued: 7/6/95