SN 91(4)

Miscellaneous Personal Services

This publication has been cited in IP 2000(26); and superseded by SN 2001(2)

PURPOSE: This Special Notice describes the sales and use taxes on miscellaneous personal services enacted by 1991 Conn. Pub. Acts 3, §103 (June Spec. Sess.).

EFFECTIVE DATE: Effective-upon issuance and applicable to miscellaneous personal services provided on or after October 1, 1991.

STATUTORY AUTHORITY: 1991 Conn. Pub. Acts 3, §103 (June Spec. Sess.).

Effective October 1, 1991 the sales and use taxes apply at a rate of 6% to the fees charged by the providers of the miscellaneous personal services listed in Industry Group 729 in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 Edition (hereinafter referred to as "Industry Group 729"). Such services are taxable when provided in Connecticut.

SERVICES LISTED IN INDUSTRY GROUP 729 ARE SUBJECT TO TAX: The list below consists of either specific services or locations where specific services are provided. The specific services are taxable wherever provided. Where a service is listed with its business location, e.g., a tanning salon, the specific service, e.g., tanning, is subject to tax. Other taxable services provided at such business location remain subject to tax.

• babysitting bureaus, excluding day care
• bartering services for individuals
• birth certificate agencies
• blood pressure testing, coin operated
• buyers' clubs
• car title and tag service
• checkroom concessions or services
• coin-operated service machine operation: scales, shoeshine, lockers and blood pressure
• college clearing houses*
• comfort station operation
• consumer buying service
• dating service
• debt counseling to individuals
• depilatory salons*
• diet workshops*
• escort service
• genealogical investigation service
• hair removal, electrolysis or hairwaxing
• hair weaving or replacement
• locker rental, except cold storage
• marriage bureaus
• massage parlors
• porter service
• quilting for individuals
• rest room operation
• scalp treatment service
• shopping service for individuals*
• steam baths
• tanning salons
• tattoo parlors
• Turkish baths
• wedding chapels, privately operated
  
  *see definitions

TAXABLE AND NONTAXABLE SERVICES: When the listed services are sold in conjunction with other services that are not subject to the tax, e.g., a tanning salon provides tanning services and manicures, the charge for the listed service must be separately stated from the other charges and the appropriate amount of tax must be charged on the taxable service. Otherwise, the entire charge will be presumed taxable.

Certain services listed in Industry Group 729 continue to be subject to sales and use taxes in the following manner:

• rentals of clothing, tuxedos and wardrobes remain subject to tax. The tax applies to these items when the rental charge is $50 or more.
• computer photographs or portraits remain subject to tax as the sale of tangible personal property.
• valet parking remains taxable under motor vehicle parking.

The following providers of services are included in SIC categories other than Industry Group 729 and are not subject to tax under this provision:

• the services of a babysitter or day care provider are not subject to tax; babysitting placement or referral services are subject to tax.
• bartering services for businesses.
• most services provided by beauty shops and barber shops are not subject to tax, including, but not limited to, haircutting, shampooing, hair coloring and perming. However, if such shops provide services specifically listed herein, such as scalp treatment services, they must charge tax.
• day care centers.
• dietitians involved in health services other than diet workshops.
• physical therapists or their employees.

DEFINITIONS:

• college clearing houses are services to which colleges subscribe for the names of prospective students.
• depilatory salons are engaged in removing hair from the body.
• diet workshops are commercial weight-loss services.
• shopping services for individuals are services which hold themselves out as providing shopping services for individual customers.

GENERAL RULE OF TAXATION: Services provided on or after October 1, 1991 are subject to sales and use taxes regardless of the date of payment.

TRANSITION RULES FOR CERTAIN MISCELLANEOUS PERSONAL SERVICES:

Where the fee for the listed services is for membership, participation or instruction, the following rules will apply:

• Payments before August 22, 1991 for services rendered before and after October 1, 1991 are not subject to tax
• Payments made on or after August 22, 1991 for services rendered before and after October 1, 1991 are subject to tax on that Portion of the services provided on or after October 1, 1991.
• Payments made on or after August 22, 1991 for services provided on or after October 1, 1991 are fully subject to tax. 

SN 91(4)
Sales and Use Taxes
Issued 9/91
TPS/0018d/1091