Ezel / Tax Rulings / CT
CT Ruling 90-27 Sales and Use Taxes 1990-02-16

Did the historical exemption for repairing nonbusiness motor vehicles cover labor on boats or snowmobiles?

Short answer: No under this historical ruling. DRS said the exemption for repairs to motor vehicles not used in a trade or business did not apply to boats or snowmobiles. Labor charges for repairing either were therefore subject to sales and use tax. DRS marks the ruling not current and obsoleted by AN 2000(8).

Apply this to your situation

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 reflecting the repair-service exemption then in effect. DRS expressly marks it 'not current' and says Announcement (AN) 2000(8) obsoleted it. Its classification of boat and snowmobile repair labor should not be assumed current, and 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.
View original ruling (PDF)

Note -- obsolete historical guidance. DRS marks this ruling "not current" and states that it was obsoleted by Announcement (AN) 2000(8).

Plain-English summary

Connecticut historically exempted repair services for motor vehicles not used in a trade or business.

DRS ruled that the exemption did not extend to boats or snowmobiles. Labor charges for repairing either type of property were therefore subject to sales and use tax.

What this means for you

The historical ruling did not treat boats and snowmobiles as qualifying motor vehicles for this repair-labor exemption. Because AN 2000(8) later obsoleted the ruling, current repair-service treatment must be checked independently.

Common questions

Did personal rather than business use exempt the repair? No. The motor-vehicle exemption still did not cover boats or snowmobiles.

Did the ruling tax repair labor? Yes, expressly.

Citations and references

  • Announcement (AN) 2000(8) -- identified by DRS as obsoleting this ruling.

Source

Original ruling text

Ruling 90-27, Motor Vehicle Repair Service

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

Ruling 90-27

Motor Vehicle Repair Service

This Ruling has been obsoleted by   AN 2000(8)

The exemption for repair services provided to motor vehicles which are not used in a trade or business does not apply to boats or snowmobiles. Accordingly, labor charge for repair services performed on boats or snowmobiles are subject to sales and use tax.

LEGAL DIVISION

February 16, 1990

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