Were land-use planning, development-team coordination, and regulatory-process administration services subject to Connecticut sales and use tax?

Note -- partially obsolete historical guidance. DRS states that Announcement (AN) 94(3) and Announcement (AN) 2000(8) obsoleted this ruling in part.

Plain-English summary

X Company provided land-use planning, development-team coordination, and administration of the regulatory process.

DRS said those services were not taxable under the cited provisions for architectural, building engineering, or building planning and design services; business analysis, management, consulting, and public relations services; or lobbying and consulting that represents a client's interests before a governmental entity or instrumentality.

What this means for you

The historical classification was specific to X Company's described work. AN 94(3) and AN 2000(8) later obsoleted the ruling in part.

Common questions

Were X Company's services taxable? No under the ruling.

What services did X Company provide? Land-use planning, development-team coordination, and regulatory-process administration.

Which taxable-service categories did DRS consider? Architectural and building-design services, business consulting and public relations, and governmental lobbying or consulting.

Citations and references

• Conn. Gen. Stat. § 12-407(2)(i)(F), (J), and (T), as cited in the ruling.
• Public Act No. 89-251, as cited in the ruling.
• Announcement (AN) 94(3) and Announcement (AN) 2000(8) -- identified by DRS as partly obsoleting this ruling.

Source

• Landing page: Connecticut DRS Rulings
• Ruling: Ruling 89-223

Original ruling text

Ruling 89-223, Consulting

Ruling 89-223

Consulting

This Ruling has been obsoleted in part by  AN 94(3)  and  AN 2000(8)

You have inquired as to whether the services rendered by X Company are subject to sales and use tax. X Company provides services in land use planning, development team coordination and administration of the regulatory process.

Such services rendered by Company X are not subject to the sales and use tax under section 12-407(2)(i) of the Connecticut General Statutes, as amended by Public Act No. 89-251, as:

architectural, building engineering and building planning or design services under section 12-407(2)(i)(F) of the Connecticut General Statutes;

business analysis, management, consulting and public relations services under section 12-407(2)(i)(J) of the Connecticut General Statutes;

lobbying or consulting services for the purpose of representing the interests of a client in relation to the functions of any governmental entity or instrumentality under section 12-407(2)(i)(T) of the Connecticut General Statutes.

LEGAL DIVISION

November 20, 1989