Ezel / Tax Rulings / CT
CT Ruling 89-174 Sales and Use Taxes 1989-10-30

When did an out-of-state architect have Connecticut sales-tax nexus and registration duties under Ruling 89-174?

Short answer: Entering Connecticut to view a project site or inspect construction created nexus even when architectural work occurred elsewhere. Post-July 1, 1989 services were taxable despite an earlier contract, and integral construction inspections were taxable. DRS says AN 94(3) obsoleted it.

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 architect nexus, registration, contract-timing, and inspection rules then in effect. DRS expressly marks the information 'not current' and says Announcement (AN) 94(3) obsoleted it. Its physical-presence and service-timing conclusions should not be assumed current. 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) 94(3) obsoleted the ruling.

Plain-English summary

Out-of-state architects doing business in Connecticut had to register, collect tax, and file sales and use tax returns. An architect created Connecticut nexus by entering the state to view the intended building site or inspect construction, even if the architectural service itself was performed outside Connecticut.

Services performed after July 1, 1989 were taxable even under a contract signed before that date. Construction inspections performed as an integral part of architectural services were also taxable.

What this means for you

The historical ruling connected registration to in-state project visits and taxed services by performance date rather than contract date. AN 94(3) later obsoleted the guidance.

Common questions

Did an out-of-state architect have to register? Yes when engaged in business in Connecticut.

Could a site visit or construction inspection create nexus? Yes.

Did a pre-July 1, 1989 contract protect later services? No.

Were integral construction inspections taxable? Yes.

Citations and references

  • Announcement (AN) 94(3) -- identified by DRS as obsoleting this ruling.

Source

Original ruling text

Ruling 89-174, Architectural Services

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

Ruling 89-174

Architectural Services

This Ruling has been obsoleted by   AN 94(3)

Out-of-state architects who are engaged in business in Connecticut are required to register for collection of Connecticut sales and use tax, charge the applicable tax and file sales and use tax returns.

An out-of-state architect who comes into Connecticut to either look at the real estate where the building is intended to be constructed or inspect construction has a nexus to Connecticut and is required to register for sales and use tax even if the architectural service is performed outside this state.

Architectural services performed after July 1, 1989 under a contract signed before July 1, 1989 are subject to sales and use tax.

Inspections to the construction of projects that are performed as an integral part of architectural services are subject to sales and use tax.

LEGAL DIVISION

October 30, 1989

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