Ezel / Tax Rulings / CT
CT Ruling 89-173 Sales and Use Taxes 1989-10-30

Could a landscaper accept a resale certificate for work under a federal, state, or municipal government construction contract?

Short answer: Yes under this historical ruling when the landscaping benefited real property owned by the exempt government entity. Landscaping and tree removal were otherwise taxable on total gross receipts. DRS says AN 2000(8) obsoleted 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 reflecting the landscaping and government-contract resale rules then in effect. DRS expressly marks the information 'not current' and says Announcement (AN) 2000(8) obsoleted it. Its resale result depended on a government construction contract and benefit to real property owned by the exempt entity. 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 your specific situation.
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)

Note -- obsolete historical guidance. DRS marks this information "not current" and states that Announcement (AN) 2000(8) obsoleted the ruling.

Plain-English summary

Landscaping services were taxable on total gross receipts, and tree removal counted as landscaping.

A landscaper could accept a resale certificate from a construction contractor fulfilling a federal, state, or municipal government contract when the landscaping benefited real property owned by the exempt entity.

What this means for you

The historical resale treatment depended on both the government contract and ownership of the benefited real property. AN 2000(8) later obsoleted the guidance.

Common questions

Were landscaping and tree removal taxable? Yes under the ruling.

Could a government contractor issue a resale certificate? Yes under the stated conditions.

Who had to own the benefited property? The exempt government entity.

Citations and references

  • Conn. Gen. Stat. § 12-408(2)(i)(X), as cited in the ruling.
  • Public Act No. 89-251, as cited in the ruling.
  • Announcement (AN) 2000(8) -- identified by DRS as obsoleting this ruling.

Source

Original ruling text

Ruling 89-173, Exemption - Governmental

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

Ruling 89-173, Exemption - Governmental

This Ruling has been obsoleted by AN 2000(8)

The total gross receipts for landscaping services are subject to sales and use tax pursuant to section 12-408(2)(i)(X) of the Connecticut General Statutes, as amended by Public Act No. 89-251. Tree removal services are considered to be part of landscaping services.

Landscapers may accept resale certificates from construction contractors for fulfilling federal, state or municipal government contracts provided the benefit of the landscaping service is to the real property owned by the exempt entity.

LEGAL DIVISION

October 30, 1989

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