Ezel / Tax Rulings / CT
CT Ruling 89-62 Sales and Use Taxes 1989-08-22

Who had to pay or collect Connecticut use tax on pads delivered by an out-of-state seller under Ruling 89-62?

Short answer: The Connecticut purchaser owed the tax. If the out-of-state seller met Public Act 89-41's registration requirement, it had to register, collect, and bill the tax; otherwise, if it did not register, the purchaser had to pay Connecticut directly.

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 applying Public Act 89-41 to an out-of-state seller and a Connecticut purchaser under the law then in effect. Nexus and remote-seller collection rules have changed substantially since 1989, so another seller or purchaser should not assume this historical ruling states current obligations. 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 current registration, collection, and payment duties.
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

The Connecticut business that bought pads delivered into the state was required to pay Connecticut use tax.

Who remitted the tax depended on the out-of-state seller's status under Public Act 89-41. If X Company met the Act's registration requirement, it had to register, add Connecticut tax to its bill, and collect the tax. If it was not required to register and did not voluntarily register, the purchaser had to pay the use tax directly to Connecticut.

What this means for you

The ruling separated the purchaser's underlying tax liability from the seller's collection duty. The purchaser still owed tax even when the out-of-state seller did not have to register and collect it.

This was a 1989 nexus ruling. It does not describe current remote-seller thresholds or registration rules.

Common questions

Did the Connecticut purchaser owe tax? Yes.

When did the seller collect it? When X Company met Public Act 89-41's requirements and registered to collect Connecticut use tax.

What if the seller did not have to register and did not register? The purchaser paid the use tax directly to Connecticut.

Citations and references

  • Public Act No. 89-41, as cited in the ruling.

Source

Original ruling text

Ruling 89-62, Nexus

Public Act No. 89-41 makes certain out-of-state retailers, who deliver tangible personal property into Connecticut from out-of-state locations, liable for collection of the Connecticut use tax.

The business that has purchased the pads from X Company is required to pay the Connecticut tax for goods delivered into Connecticut. If X Company meets the requirement of Public Act No. 89-41, it must register to collect the Connecticut use tax. X Company will then apply the Connecticut tax to the charge billed to the business for goods delivered into Connecticut. If X Company is not required to register for collection of Connecticut use tax and does not register for use tax in this State, then the business has a liability to pay the use tax directly to the State of Connecticut.

LEGAL DIVISION

August 22, 1989

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