Ezel / Tax Rulings / CT
CT Ruling 89-7 Sales and Use Taxes 1989-05-08

When did Connecticut's production-materials exemption apply to a quarry's asphalt under Ruling 89-7?

Short answer: The exemption applied when the quarry sold asphalt as a separately stated item. It did not apply when the quarry used asphalt in a construction contract and did not separately sell it.

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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 1989 Connecticut Department of Revenue Services Ruling addressed one quarry operator's asphalt under the production-materials exemption and the law then in effect. It does not state that it is current, and a business with different sales or construction-contract facts should not assume the same result applies today. 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 production-material and contractor rules.
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 production-materials exemption applied to asphalt that X Company sold as a separately stated item.

The exemption did not apply when X Company, or another quarry owner, used asphalt as part of a construction contract and did not separately sell the asphalt.

What this means for you

Under this historical ruling, the distinction was between a separately stated sale of asphalt and the quarry's use of asphalt in performing a construction contract.

Common questions

Did separately sold asphalt qualify? Yes.

Did asphalt used in a construction contract qualify? No, when it was not separately sold.

Citations and references

  • Conn. Gen. Stat. § 12-412(18), as cited in the ruling.

Source

Original ruling text

Ruling 89-7, Production Materials

Our opinion relates to the application of Conn. Gen. Stat. §12-412(18) to quarries -- in particular, to that portion of the exemption for production materials that relate to property sold. To the extent that X Company sells asphalt as a separately-stated item, the exemption would apply. To the extent that X Company (or any other quarry owner) uses asphalt as part of a construction contract where the asphalt is not separately sold, the exemption would not apply.

LEGAL DIVISION

May 8, 1989

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