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PS 90(1)

Dog Breeders

The responsibility of the Department of Revenue Services is to enforce the laws of taxation as detailed in the Connecticut General Statutes. Section 12-407(2) of the sales and use tax statute defines "sale" as "Any transfer of title, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration". Section 12-407(15) defines "Engaged in business in the state" as "selling in this state, or any activity in this state in connection with selling in this state, tangible personal property for use, storage or consumption within the state . . ."; Section 12-409(1) states that "no person shall engage in or transact business as a seller within this state, unless a permit or permits have been issued to him. . ."

It is not the intention of the Department to register individuals who do not hold themselves out to be sellers of dogs and who breed their dog on an infrequent basis (no more than every other year). Section 12-426-17(b)(1) of the Regulations of Connecticut State Agencies defines "casual or isolated sales" as "infrequent sales of a nonrecurring nature made by a person not engaged in the business of selling tangible personal property.

The casual sale provision would include sales on less than an annual basis, for example, one litter every other year. However, when a person sells a litter of dogs every year or on a recurring basis, this would qualify that person as a seller and subject them to the provisions outlined above. While it is impossible to provide an answer in this notice for every conceivable fact pattern that may arise, the Department will apply the casual sale provision where the facts of each case permit.

However, those who breed their dog or dogs on a regular basis, including commercial breeders, "back-yard" breeders, individuals who advertise puppies for sale, or hobbyists, are considered by statute to be engaged in business in this state. Those people who must register with the Department to obtain a seller's permit and must charge sales tax on their sales. 

Issued: 5-90