Ezel / Tax Rulings / CT
CT Ruling 89-260 Sales and Use Taxes 1989-12-07

Was grinding existing pavement and reusing it as the base for a new parking lot taxable when no new materials were added?

Short answer: No under this historical ruling. Recycling the pavement into the base of a new parking lot, without adding new materials during recycling, was treated as nontaxable new construction. DRS states that AN 94(4) 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 construction-service classification then in effect. DRS expressly says Announcement (AN) 94(4) obsoleted it. Its result depended on grinding existing pavement, reusing it as the base for a new parking lot, and adding no new materials during recycling; different paving or reconstruction work should not be assumed to receive the same treatment. 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 states that this ruling was obsoleted by Announcement (AN) 94(4).

Plain-English summary

Existing pavement was ground up and reused as the base for a new parking lot. No new materials were added during the recycling process.

DRS treated the work as new construction and ruled that it was not subject to sales and use tax under the historical provision.

What this means for you

The historical result was narrow: it covered on-site pavement recycling into a new parking-lot base without adding new materials. AN 94(4) later obsoleted the guidance.

Common questions

Was the pavement-recycling service taxable? No under the ruling.

Why was it nontaxable? DRS classified it as new construction.

Did the facts include adding fresh materials? No. The ruling expressly says no new materials were added during recycling.

Citations and references

  • Conn. Gen. Stat. § 12-407(2)(i)(I), as amended by 1989 Conn. Pub. Acts 251.
  • Announcement (AN) 94(4) -- identified by DRS as obsoleting this ruling.

Source

Original ruling text

Ruling 89-260, Contracting

This Ruling has been obsoleted by AN 94(4)

The service to real property that involves recycling a pavement that is ground up and used as the base for a new parking lot without new materials being added during the recycling process is regarded as new construction and is not subject to sales and use tax pursuant to section 12-407(2)(i)(I) of the Connecticut General Statutes, as amended by Public Act No. 89-251.

LEGAL DIVISION

December 7, 1989

Get today's answer for your situation

You just read a 1989 ruling on this question. Ezel checks current Connecticut tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.