Ezel / Tax Rulings / CT
CT Ruling 90-47 Sales and Use Taxes 1990-05-03

Were asbestos-abatement consulting services excluded from Connecticut sales and use tax as services for voluntarily containing or removing hazardous waste?

Short answer: Yes under this historical ruling. DRS treated asbestos as hazardous waste and excluded the listed assessment, bid, monitoring, clearance, and documentation services from tax as services for voluntary hazardous-waste containment or removal. DRS marks the ruling not current, cited in Ruling 94-5, and superseded by SN 95(17).

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 asbestos-service rules then in effect. DRS expressly marks it 'not current,' says it was cited in Ruling 94-5, and says it was superseded by Special Notice (SN) 95(17). Its exclusion 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Note -- superseded historical guidance. DRS marks this ruling "not current" and states that it was superseded by Special Notice (SN) 95(17). DRS also says Ruling 94-5 cited it.

Plain-English summary

X Company advised building owners on asbestos-abatement projects. Its listed services included asbestos assessments, contractor bid specifications and pre-bid meetings, technical bid review, abatement-contractor monitoring, clearance monitoring, and documentation.

Conn. Gen. Stat. § 12-407(2)(i)(I) historically taxed services to industrial, commercial, or income-producing real property but excluded services for the voluntary containment or removal of hazardous waste. DRS considered asbestos to be hazardous waste and therefore ruled that the listed consulting services qualified for the exclusion.

The official page now says the ruling is not current and was superseded by SN 95(17).

What this means for you

The ruling historically extended the hazardous-waste exclusion to consulting work directly supporting voluntary asbestos abatement, not just physical removal. Because DRS superseded the ruling, current treatment must be confirmed.

Common questions

What services were covered? The ruling lists assessments, bid preparation and review, meetings, contractor and clearance monitoring, and documentation.

Why were they excluded? DRS treated asbestos as hazardous waste and the services as supporting its voluntary containment or removal.

Can this ruling be relied on now? No. DRS marks it not current and superseded by SN 95(17).

Citations and references

  • Conn. Gen. Stat. § 12-407(2)(i)(I).
  • Ruling 94-5 -- identified by DRS as citing this ruling.
  • Special Notice (SN) 95(17) -- identified by DRS as superseding this ruling.

Source

Original ruling text

Ruling 90-47, Asbestos Removal

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

Ruling 90-47

Asbestos Removal

This Ruling has been cited in   Ruling 94-5   and superseded by   SN 95(17)

ISSUE:

Whether asbestos-related consulting services enjoy the exclusion from the sales and use tax pursuant to Section 12-407(2)(i)(I) of the Connecticut General Statutes.

FACTS:

X Company is a full service industrial hygiene consulting firm. With respect to asbestos abatement projects, X Company provides a wide range of services for building owners to ensure that appropriate abatement activities are specified and conducted in a safe manner in accordance with all applicable state and federal regulations.

X Company provides the following asbestos consulting services:

asbestos assessments, preparation of contractor bid specifications, contractor pre-bid meeting and walk through, technical review of contractor bids, abatement contractor monitoring, clearance monitoring, and documentation.

RULING:

Section 12-407(2)(i)(I) of the Connecticut General Statutes imposes the sales and use tax on "services to industrial, commercial or income-producing real property" but excludes "any such services rendered for the voluntary containing or removing of hazardous waste." The Department considers asbestos to be a hazardous waste.

Accordingly, the asbestos-related consulting services listed above are excluded from the sales and use tax under Section 12-407(2)(i)(I) as "any such services rendered for the voluntary containing or removing of hazardous waste."

LEGAL DIVISION

May 3, 1990

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