DRS: SN 2005(13.1), Sales Tax Holiday for Home Weatherization Products

 
 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 
 
This Special Notice has been modified and superseded by SN 2005(13.2)
 
 
SN 2005(13.1)
 
Sales Tax Holiday for Home Weatherization Products
 

 
Purpose: This Special Notice describes an exclusion from sales and use taxes of residential weatherization products during the period of November 25, 2005, through April 1, 2006.  This Special Notice has been revised because the original legislation was amended.
 

Effective Date: The exclusion begins on November 25, 2005, and ends on April 1, 2006, except that residential weatherization products added to the exclusion in the legislative amendment are not subject to tax for sales occurring on or after December 15, 2005, through April 1, 2006.
 

 
Statutory Authority: 2005 Conn. Pub. Acts 2, §4 (October 25 Spec. Sess.), as amended by House Bill 7601 (October 25 Spec. Sess.)
 

 
Definition: The term residential weatherization products means the following:
  • Programmable thermostats;
  • Window film;
  • Caulking of a type marketed for preventing drafts, such as window and door caulking;
  • Window and door weather strips, including door sweeps;
  • Insulation, for example attic and wall insulation, spray foam insulation, water pipe insulation, heating duct insulation, and switch and outlet insulators;
  • Water heater blankets;
  • Water heaters;
  • Boilers.  On or after December 15, 2005, only sales of boilers that meet the federal Energy Star standard qualify for the exclusion (Energy Star qualified boilers have an annual fuel utilization efficiency (AFUE) rating of 85% or greater);
  • Natural gas furnaces that meet the federal Energy Star standard;
  • *  Propane furnaces that meet the federal Energy Star standard;
  • Windows that meet the federal Energy Star standard (note that storm windows do not have an Energy Star standard and are not included in this tax exclusion);
  • * Doors that meet the federal Energy Star standard (note that storm doors do not have an Energy Star standard and are not included in this tax exclusion);
  • Oil furnaces that are not less than 85% efficient based on the Annual Fuel Utilization Efficiency (AFUE) rating; and
  • * Ground-based heat pumps that meet the minimum federal energy efficiency rating. 
The exclusion applies only to the items listed above. In order to qualify as a residential weatherization product, the item must be designed and marketed for residential use and not for commercial use.
 

Items that are exempted on and after December 15, 2005, through April 1, 2006 are marked with an asterisk (*).

 


 
Nontaxable Sales of Residential Weatherization Products: Sales and use taxes do not apply to sales of residential weatherization products during the period that begins on November 25, 2005 (except as noted above for items that become exempt on December 15, 2005), and ends on April 1, 2006The exemption applies provided the sale occurs within the exclusion period. The exclusion applies to sales make by Connecticut retailers, sales made by out-of-state retailers required to collect Connecticut use tax on sales to Connecticut customers, and purchases by Connecticut customers on which they would otherwise be required to self-assess use tax.
 


Building Contractors: The exclusion applies whether the purchaser of residential weatherization products is a property owner, a tenant, or a contractor, and whether the products are to be used in existing real property or new construction.  This exclusion only covers the residential weatherization products; it does not exempt any taxable contractor labor. See Informational Publication 2004(29), Building Contractor’s Guide to Sales and Use Taxes, for more information.

 


 

Mail Order, Telephone, and Internet Sales: Tax does not apply to the sale of a residential weatherization product sold during the exclusion period by mail, telephone, or over the Internet.

 


Rain Checks: A residential weatherization product purchased during the exclusion period using a rain check is not taxable.  If a retailer issues a rain check to a customer during the exclusion period for a residential weatherization product and the customer purchases the item after the exclusion period has ended using the rain check, the item is taxable.
 


Reporting Requirements: Sales of residential weatherization products are reported on Line 1 of Form OS-114, Sales and Use Tax Return. The nontaxable sales of residential weatherization products sold during the exclusion period are deducted on Line 79 of Form OS-114.

 


 

Effect on Other Documents:  Special Notice 2005(13), Sales Tax Holiday for Home Weatherization Products, is modified and superseded.

 

Informational Publication 2004(29), Building Contractors’ Guide to Sales and Use Taxes, is modified and superseded to the extent it applies to residential weatherization products sold during the period from November 25, 2005 through April 1, 2006.

 


Effect of This Document: A Special Notice announces a new policy or practice in response to changes in state or federal laws or regulations or to judicial decisions. A Special Notice indicates an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).

 


 
For Further Information: Call DRS during business hours, Monday through Friday:
  • 1-800-382-9463 (in-state), or
  • 860-297-5962 (from anywhere)
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
 

 

Forms and Publications: Forms and publications are available anytime by:

  • Internet: Preview and download forms and publications from the DRS Web site at www.ct.gov/DRS
  • Telephone: Call 860-297-4753 (from anywhere), or 1-800-382-9463 (in-state) and select Option 2 from a touch-tone phone.

 
Paperless Filing Methods (fast, easy, free, and confidential):
  • For business returns: Use Fast-File to file sales and use taxes, business use tax, room occupancy tax, estimated corporation business tax, business entity tax, or withholding tax returns over the Internet.  Visit the DRS Web site at www.ct.gov/DRS and click on File/Register OnLine.
  • For resident income tax returns: Use WebFile to file personal income tax returns over the Internet. Visit the DRS Web site at www.ct.gov/DRS and click on File/Register OnLine.

 
DRS E-News Service: Get connected to the latest news from DRS.  Receive notification by e-mail of changes to legislation, policies, and procedures.  DRS E-News is easy to sign up for – visit www.ct.gov/DRS and follow the directions.  Subscription services are available for employer’s withholding tax, Fast-File information, Alerts, News – Press Releases, and Top 100 Delinquency List.
 

SN 2005(13.1)
Sales Tax Holiday for Home Weatherization Products
Issued: 12/6/05