DRS: Ruling 89-228, Utility Sales Tax

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

Ruling 89-228

Utility Sales Tax


You state that beginning July 1, 1989, a sales and use tax was imposed on gas and electricity consumption exceeding $150.00. X Foundation's "property, income, obligations and activities" are exempt from taxes pursuant to Conn. Gen. Stat. 10a-209. X Foundation recently constructed a building as its corporate headquarters and has leased a portion of the building.

You inquire whether you have an obligation to pay the sales and use tax (assuming consumption is greater than $150), and if utilities are included as part of the base rent, i.e., the tenant is not billed for utilities, whether there is still an obligation to pay the tax.

It is our opinion that no sales tax is due on utility services purchased by X Foundation.

LEGAL DIVISION

November 21, 1989