Ezel / Tax Rulings / CT
CT Ruling 91-18 Sales and Use Taxes 1991-05-16

Are charges for placing advertisements on the sides of trailer-trucks subject to Connecticut sales tax as advertising services?

Short answer: Not taxable -- it counts as media advertising. A company charged for placing advertisements on the sides of its trailer-trucks. Connecticut taxes advertising services only when they are NOT related to developing 'media advertising' (Conn. Gen. Stat. § 12-407(2)(i)(W)); media advertising itself is excluded. DRS ruled that ads on the sides of trailer-trucks that are used on, or stationed in public view along, public thoroughfares are 'media advertising' -- the same as ads on billboards, buses, trains and taxicabs (per TSSN-30) -- because they are placed in a medium whose audience is the public at large. So charges related to developing that advertising are NOT subject to Connecticut sales and use taxes.

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This page answers the general question as of 1991. Ezel answers yours, under current Connecticut tax law, with citations.

Currency note: this ruling is from 1991
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; confirm the current law. This Ruling was later cited in Ruling 93-8. 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.
View original ruling (PDF)

Plain-English summary

A company charged clients for placing their advertisements on the sides of its trailer-trucks. It asked whether the term "media advertising" — which is treated favorably under Connecticut's advertising-services tax rule — covers ads on the sides of trucks.

Here's the framework. Connecticut taxes advertising services, but only the kind "not related to the development of media advertising." In other words, developing media advertising is outside the tax (Conn. Gen. Stat. § 12-407(2)(i)(W)). DRS's guidance TSSN-30 defines "media advertising" as ads in newspapers and magazines and on radio, television and cable — and also ads placed on billboards, buses or taxicabs.

DRS ruled that truck-side ads are media advertising. The key idea in TSSN-30 is that "media advertising" means advertising placed in a medium whose audience is the public at large. Ads on the sides of trailer-trucks that are used on, or stationed in public view along, public thoroughfares are seen by the general public exactly the way ads on buses, trains and taxicabs are. So DRS treated them the same. The result: charges related to developing that truck-side advertising are not subject to sales and use taxes.

What this means for you

"Media advertising" turns on reaching the public at large

The line Connecticut drew is not about the physical object the ad sits on — it's about whether the ad is placed in a medium aimed at the general public. Billboards, buses, taxicabs, trains and (per this ruling) advertising trucks all qualify because the public at large is the audience.

Developing media advertising is outside the advertising-services tax

Section 12-407(2)(i)(W) taxes advertising services except those related to developing media advertising. If what you produce is media advertising, the development work is not taxed under this provision. Non-media advertising services (for example, direct, targeted, or in-house promotional work that isn't aimed at the public at large) can fall on the taxable side of the line.

Watch how the charge is characterized

The ruling is about charges related to the development of the media advertising. As always, keep records that show what the charge is for, and remember that a different mix of services, or a charge for something other than developing the public-facing ad, could be analyzed differently.

Common questions

Q: Are ads on the sides of trucks subject to Connecticut sales tax?
A: No. DRS ruled that ads on trailer-trucks used on, or stationed in public view along, public roads are "media advertising," so charges related to developing them are not subject to sales and use tax.

Q: What counts as "media advertising" in Connecticut?
A: Per TSSN-30, advertisements in newspapers and magazines and on radio, television and cable, plus ads on billboards, buses or taxicabs — anything placed in a medium whose audience is the public at large. This ruling adds advertising trucks to that list.

Q: Why does media advertising get better treatment?
A: Connecticut's advertising-services tax reaches services "not related to the development of media advertising." Developing media advertising is carved out, so it is not taxed under § 12-407(2)(i)(W).

Q: Is every advertising service tax-free, then?
A: No. Only services related to developing media advertising are excluded. Advertising services that are not media advertising can be taxable.

Citations and references

Statutes and guidance:

  • Conn. Gen. Stat. § 12-407(2)(i)(W) — advertising services "not related to the development of media advertising" are a taxable sale; media advertising is excluded
  • TSSN-30 (NEW 6-90) — defines "media advertising" (newspapers, magazines, radio, television, cable; billboards, buses, taxicabs)

Related DRS guidance:

  • Ruling 93-8 later cited this Ruling. The same "media advertising is not taxed" principle runs through Connecticut's later advertising rulings, including Ruling 92-1 (selling ad space in a periodically distributed trade directory treated as exempt media advertising).

Source

Original ruling text

Ruling 91-18, Sales and Use Taxes / Advertising Services

Ruling 91-18

Sales and Use Taxes Advertising Services

This Ruling has been cited in  Ruling 93-8

ISSUE:

Does the term "media advertising", as used in Conn. Gen. Stat. §12-407(2)(i)(W), include advertisements placed on the sides of trailer-trucks?

FACTS:

Company charges for the placement of advertisements on the sides of its trailer trucks.

DISCUSSION:

The rendering of advertising services "not related to the development of media advertising" constitutes a "sale" or "selling"; Conn. Gen. Stat. §12-407(2)(i)(W). "Media advertising means advertisements in newspapers and magazines and on radio, television and cable television stations. Media advertising also includes advertisements placed on billboards, buses or taxicabs." TSSN-30 (NEW 6-90). The term "media advertising" is intended to encompass advertisements placed in a medium that has as its audience the public at large. The placement of advertisements on the sides of trailer-trucks that are used on, or stationed along, public thoroughfares will not be treated differently than the placement of advertisements on buses, trains and taxicabs.

RULING:

The term "media advertising", as used in Conn. Gen. Stat. §12-407(2)(i)(W), includes advertisements placed on the sides of trailer-trucks that are either used on, or stationed in public view along, public thoroughfares, and charges related to the development of such advertising are not subject to sales and use taxes.

LEGAL DIVISION

MAY 16, 1991

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