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CT Ruling 89-107 Sales and Use Taxes 1989-09-26

When did Connecticut Ruling 89-107 exempt electricity used to produce frozen desserts?

Short answer: Electricity sold for direct use in producing frozen desserts was exempt if at least 75% was consumed in fabrication. The exemption covered only electricity, not other purchases. DRS says PS 94(3) superseded the ruling.

Apply this to your situation

This page answers the general question as of 1989. Ezel answers yours, under current Connecticut tax law, with citations.

Currency note: this ruling is from 1989
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official 1989 Connecticut Department of Revenue Services Ruling, but its page expressly says the information is not current and that PS 94(3) superseded the ruling. It is presented only as historical reference and should not be used as current law. Connecticut imposes sales and use tax solely at the state level: there are no local or municipal sales taxes. This summary is informational only and is not legal or tax advice. Consult a licensed Connecticut tax professional about current utility-exemption requirements.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Electricity sold to the company for direct use in producing frozen desserts was exempt when at least 75% of the electricity was consumed in fabricating those desserts.

The ruling accepted the company's gas-and-electricity exemption certificate. It also limited the conclusion to electricity and said it did not affect sales tax on other purchases.

The official page says PS 94(3) superseded the ruling.

What this means for you

The historical exemption depended on both direct production use and a 75% consumption threshold. Because DRS marks the ruling superseded, current manufacturers should use current exemption guidance and certificates.

Common questions

What percentage of electricity had to be used in fabrication? At least 75%.

Did the ruling accept the exemption certificate? Yes.

Did the exemption cover the company's other purchases? No. The ruling expressly limited it to electricity.

Is the ruling current? No. PS 94(3) superseded it.

Citations and references

  • PS 94(3), identified by the official page as superseding this ruling.

Source

Original ruling text

Ruling 89-107, Utility Exemption - Manufacturing

This information is not current and is being provided for reference purposes only

This Ruling has been superseded by PS 94(3)

The sale of electricity to X Company for direct use in the production of frozen desserts is exempt from sales and use tax provided 75% or more of the electricity is consumed in the fabrication of the frozen desserts.

The Sales and Use Tax Exemption Certificate for Purchases of Gas and Electricity that X Company located at 92 Farmington Avenue, Hartford furnished to you is acceptable.  Editor's Note:   The Department of Revenue Services' address is now: 25 Sigourney Street, Hartford, Connecticut 06106.

This exemption pertains solely to the sale of electricity and has no bearing to the sales tax applicable to other purchases.

LEGAL DIVISION

September 26, 1989

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