Ezel / Tax Rulings / CT
CT Ruling 89-262 Sales and Use Taxes 1989-12-07

Were gross receipts from auditing residential or commercial mortgages subject to Connecticut sales and use tax?

Short answer: No under this ruling. Connecticut DRS stated that the total gross receipts from a service auditing residential or commercial mortgages were not subject to sales and use tax.

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 stating a narrow result for a service auditing residential or commercial mortgages. The short published text gives no requester facts, contract terms, statutory citation, or statement that the ruling remains current; services beyond the described mortgage audit may be treated differently. 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)

Plain-English summary

DRS ruled that the total gross receipts from a service auditing residential or commercial mortgages were not subject to sales and use tax.

The published ruling is very short. It does not describe the audit process, customer, contract, or any related services.

What this means for you

The stated result is limited to a service that audits residential or commercial mortgages. The ruling should not be extended to mortgage origination, servicing, collection, consulting, or other work not addressed in the text.

Common questions

Were the mortgage-auditing receipts taxable? No under the ruling.

Did the ruling distinguish residential from commercial mortgages? No. It gave the same result for both.

Did DRS cite a statute? No.

Citations and references

  • The published ruling cites no specific statute or regulation.

Source

Original ruling text

Ruling 89-262, Management

The total gross receipts for a service that involves auditing residential or commercial mortgages are not subject to sales and use tax.

LEGAL DIVISION

December 7, 1989

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