Ruling 89-51

Repairs

This Ruling has been obsoleted by AN 2000(8)

You have inquired about the taxability of labor to repair production machinery.

The sales of repair or replacement parts for machinery used directly in the manufacturing production process are subject to 5.5% sales or use tax. Labor charges to repair production machinery in a manufacturing facility are applicable to the sales and use tax.

Section 12-412d of the Connecticut General Statutes, as amended by Public Act No. 89-123, does not provide a $7,500 refund for labor charges to manufacturers for repairs to production machinery in a manufacturing facility. The $7,500 refund applies to purchases of repair or replacement parts for machinery used directly in the manufacturing production process.

LEGAL DIVISION

August 15, 1989