Ezel / Tax Rulings / CT
CT Ruling 90-19 Sales and Use Taxes 1990-02-07

Which farm-equipment repair and farm-structure charges were exempt or taxable under Connecticut's agricultural exemption?

Short answer: Separately itemized repair parts for machinery used exclusively in agricultural production were exempt, but repair labor was taxable. Labor to renovate farm structures was taxable, while lumber, hardware, and materials sold directly to farmers to build or repair structures used exclusively in agricultural production were exempt.

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This page answers the general question as of 1990. Ezel answers yours, under current Connecticut tax law, with citations.

Currency note: this ruling is from 1990
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 1990 Connecticut Department of Revenue Services Ruling applying the agricultural exemptions then in effect to farm-equipment repairs and farm structures. The published text cites no specific statute and does not state that the ruling remains current; later legal changes, different billing, or nonexclusive agricultural use can change the result, so another taxpayer should not assume it applies. 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.
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Plain-English summary

DRS separated farm repair and construction charges into taxable labor and qualifying exempt property:

  • Exempt: repair parts for farming machinery or equipment used exclusively in agricultural production, if the parts were separately itemized on the bill.
  • Taxable: labor charges to repair tangible personal property used exclusively in agricultural production.
  • Taxable: labor to renovate farm structures.
  • Exempt: lumber, hardware, and materials sold directly to farmers to construct or repair farm structures used exclusively in agricultural production.

What this means for you

Under the ruling, exclusive agricultural use did not exempt service labor. It exempted qualifying parts and materials, with separate itemization required for repair parts.

Common questions

Were farm-machinery repair parts exempt? Yes, if used exclusively in agricultural production and separately itemized.

Was the repair labor exempt too? No.

Were materials for a farm structure exempt? Yes, when sold directly to farmers for structures used exclusively in agricultural production.

Citations and references

  • The published ruling cites no specific statute or regulation.

Source

Original ruling text

Ruling 90-19, Agricultural Exemption

Ruling 90-19

Agricultural Exemption

The sales of repair parts for farming machinery or equipment used exclusively in agricultural production are exempt from sales and use tax. The charges for said repair parts must be separately itemized on the bill. Labor charges for repair services performed on tangible personal property used exclusively in agricultural production are subject to sales and use tax.

Labor charges for renovation services rendered to farm structures are subject to sales and use tax. The sales of lumber, hardware and materials which are sold directly to farmers for the construction or repair of farm structures used exclusively in agricultural production are exempt from sales and use tax.

LEGAL DIVISION

February 7, 1990

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