DRS: Services Subject to Sales and Use Taxes

 

Services Subject to Sales and Use Taxes


  • Advertising - Sales of non-media advertising and public relations services and direct mail advertising services, other than cooperative direct mail (TSSN 30; PS 95(5));
  • Business analysis, management, management consulting and public relations services, excluding any environmental consulting services or services rendered in connection with aircraft leased or owned by a certificated air carrier or in connection with an aircraft with a maximum certificated take-off weight of six thousand pounds or more.   (2002 Conn. Pub. Acts 1, 65, 67 (May 9 Spec. Sess.); Conn. Agencies Regs. 12-407(2)(i)(J)-1)

  • Cable and satellite television services (SN 2003(15));

  • Computer and data processing services, including but not limited to, charges for on-line access to computer services, providing computer time, storing and filing of information, retrieving or providing access to information, designing, implementing or converting systems, providing consulting services, and conducting feasibility studies, programming, code writing, modification of existing programs, and installation and implementation of software programs and systems even where such services are rendered in connection with the development, creation or production of canned or custom software or the license of custom software. Computer and data processing services are taxed at 1%.(services rendered in connection with the creation, development, hosting or maintenance of all or part of a Web site which is part of the Internet, commonly referred to as the World Wide Web are not taxable)

(PS 2004(2), Sales and Use Taxes on Access to the Internet and Other On-line Sales of Goods and Services, and PS 2006(8),  Sales and Use Taxes on Computer-Related Services and Sales of Tangible Personal Property) Conn. Gen. Stat. 12-407(2)(i)(A), as amended by 2003 Conn. Pub. Acts 1 (June 30 Spec. Sess.), Sections 95 & 96.).

NOTE: The termination of the tax on computer and data processing services scheduled to take place on July 1, 2004 has been repealed.  The services will remain taxable at 1%. See SN 2003(10)

Prepaid telephone calling services means advance payment for the right to purchase telecommunications service, that enables origination of calls using an access number or code, with a continuous means of knowing the amount or remaining units of prepaid services; (SN 2000(3.1), 2000 Legislation Affecting Sales and Use Taxes and Admission Dues Tax);