Which landscaping, excavation, grading, sprinkler, lighting, sidewalk, and parking services were taxable under Connecticut's historical rules?

Note -- obsolete historical guidance. DRS marks this ruling "not current," says Announcement (AN) 94(4) obsoleted it in part, and says Announcement (AN) 2000(8) obsoleted it. The official text contains no signature date, so issued_date remains blank.

Plain-English summary

DRS treated planting trees, shrubs, and sod as taxable landscaping services. That result applied to new construction, residential real estate, and industrial, commercial, or income-producing property.

Excavation and rough grading performed for new construction were not taxable by themselves. They became taxable when performed as an integral part of a landscaping job. An excavating contractor working for a landscaper had to charge tax unless the landscaper issued a bona fide resale certificate.

The ruling also placed in-ground sprinkler systems, ground lighting, sidewalks, and the listed parking installation under the historical real-property services provision. Those installation services were not taxable when performed on new construction.

What this means for you

The historical rule depended on both the kind of work and its role in the overall project. Rough grading for new construction could be nontaxable, while the same work integrated into landscaping was taxable. Later announcements obsoleted the ruling, so current classifications must be checked independently.

Common questions

Was planting at new construction exempt? No. Trees, shrubs, and sod were taxable landscaping.

When was grading taxable? When it was an integral part of a landscaping job.

Could a landscaper buy excavation without tax? The ruling allowed a bona fide resale certificate for excavation purchased for a landscaping job.

Why is the issue date blank? The official published text ends with "LEGAL DIVISION" and provides no date.

Citations and references

• Conn. Gen. Stat. § 12-407(2)(i)(I), as amended by 1989 Conn. Pub. Acts 251.
• Announcements (AN) 94(4) and 2000(8) -- identified by DRS as obsoleting the ruling.

Source

• Landing page: Connecticut DRS Rulings
• Ruling: Ruling 90-23

Original ruling text

Ruling 90-23, Landscaping Services

This information is not current and is being provided for reference purposes only

Ruling 90-23

Landscaping Services

This Ruling has been obsoleted in part by   AN 94(4) ; obsoleted by   AN 2000(8)

The planting of trees, shrubs and sod are considered to be landscaping services. Landscaping services rendered to new construction, residential real estate, and industrial, commercial or income-producing property are subject to sales and use tax.

Excavating and rough grading services rendered to new construction are not taxable. However, excavating and grading services which are performed as an integral part of landscaping jobs are taxable. Excavating and grading services provided to landscapers for landscaping jobs are subject to sales tax unless the landscaper issues a bonafide resale certificate to the excavating contractor.

The installation of in ground sprinkler systems and ground lighting as well as installations of sidewalks and amosite parking fall under the purview of Section 12-407(2)(i)(I) of the Connecticut General Statutes as amended by Public Act 89-251. Accordingly, these services are not taxable when they are performed on new construction.

LEGAL DIVISION