Ezel / Tax Rulings / CT
CT Ruling 89-226 Sales and Use Taxes 1989-11-21

Were barter-club membership fees, sales-agent services, and bartered transactions subject to Connecticut sales tax?

Short answer: Membership trade-account fees were not subject to sales tax or admissions, dues, and cabaret tax. Sales-agent services were taxable, and Connecticut businesses had to charge sales tax on barter transactions. DRS says AN 2000(8) partly 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 barter-club and sales-agent rules then in effect. DRS expressly marks the information 'not current' and says Announcement (AN) 2000(8) obsoleted it in part. Its separate treatment of membership fees, agency services, and barter transactions 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 -- partially obsolete historical guidance. DRS marks this information "not current" and states that Announcement (AN) 2000(8) obsoleted the ruling in part.

Plain-English summary

Trade-account fees paid to become a member of a barter club were not subject to sales tax or admissions, dues, and cabaret tax.

The ruling separately said that services as an agent for the sale of personal property were subject to sales tax beginning July 1, 1989. A person doing business in Connecticut also had to charge sales tax on bartered transactions.

What this means for you

The historical ruling did not treat every barter-club charge alike: membership fees were not taxable under the listed taxes, while sales-agent services and taxable business transactions conducted by barter remained subject to sales tax. AN 2000(8) later obsoleted the ruling in part.

Common questions

Were barter-club membership fees taxable? Not under sales tax or admissions, dues, and cabaret tax.

Were sales-agent services taxable? Yes, effective July 1, 1989.

Did barter avoid tax on a Connecticut business's transaction? No. The business still had to charge sales tax.

Citations and references

  • Announcement (AN) 2000(8) -- identified by DRS as partly obsoleting this ruling.

Source

Original ruling text

Ruling 89-226, Barter

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

Ruling 89-226

Barter

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

Trade account fees to become a member of a barter club are not subject to sales tax or admissions dues and cabaret tax.

The services of an agent for the sale of personal property are subject to sales tax effective July 1, 1989.

Please note that a person engaged in business in Connecticut must charge sales tax on bartered transactions.

LEGAL DIVISION

November 21, 1989

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