Ezel / Tax Rulings / CT
CT Ruling 90-79 Sales and Use Taxes 1990-12-20

Were crane and rigging charges taxable when a company delivered, removed, and set production machinery in place without connecting or repairing it?

Short answer: No. Setting machinery that did not become a structural building component was not a taxable service to industrial, commercial, or income-producing real property. Transporting, offloading, and reinstalling machinery before or after an independent third party repaired it also was not itself a taxable electrical-device or tangible-property repair service, because the crane company performed no connecting, disconnecting, maintenance, or repair work.

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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 Ruling of the Connecticut Department of Revenue Services (DRS), typically issued to a specific taxpayer in response to that taxpayer's request and based on the specific facts presented and the Connecticut tax law in effect when it was issued. DRS may later declare a Ruling obsolete or supersede it by a subsequent Ruling, Policy Statement, or Announcement, so a taxpayer with different facts should not assume it still applies. Taxpayer-identifying details are redacted. Connecticut imposes its 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

A crane and rigging company delivered, removed, offloaded, and set machinery in place at industrial or commercial buildings. The equipment did not become a structural component of the building. Independent third parties handled repair or maintenance, and the crane company did no connecting or disconnecting.

DRS held the work was not subject to sales and use tax. Installing machinery that remained nonstructural was not a taxable service to industrial, commercial, or income-producing real property. Transporting machinery to or from an outside repairer and setting it back in place was also not itself a taxable repair or maintenance service.

What this means for you

The result depended on the limited scope: move and place nonstructural equipment, without repairing, maintaining, connecting, or disconnecting it. Additional work could change the classification.

Common questions

Was setting manufacturing machinery in place taxable? No, because it did not become a structural building component.

Did transport around a third-party repair become repair service? No. The crane company did not perform the repair or maintenance.

Citations and references

  • Conn. Gen. Stat. § 12-407(2)(i)(I) and § 12-407(8)(e).
  • Conn. Gen. Stat. § 12-407(2)(Q) and (DD).

Source

Original ruling text

Ruling 90-79, Crane and Rigging Services

Ruling 90-79

Crane and Rigging Services

FACTS:

Company's transportation, crane and rigging services include the delivery and/or removal of machinery or equipment which does not become a structural component of industrial, commercial, or income-producing real property (for example, delivery and setting in place of manufacturing machinery in a factory building). Such equipment may be repaired or maintained by an independent third party after which Company will pick up, deliver and offload it at the building and set it in place. Company does not perform any of the work involved with connecting or disconnecting the equipment.

RULING:

The installation of manufacturing machinery or some other item which does not become a structural component of a building does not constitute a taxable service to industrial, commercial or income-producing real property under Section 12-407(2)(i)(I) and, therefore, is not subject to sales and use tax under Section 12-407(8)(e).

The services associated with the delivery and removal of machinery or equipment to be repaired or maintained, or installation of machinery or equipment which has been repaired or maintained are not subject to tax under Section 12-407(2)(Q) or (DD) as (i) repairs to electrical or electronic devices or (ii) maintenance or repair service to tangible personal property.

LEGAL DIVISION

December 20, 1990

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