DRS: Services Subject to Sales and Use Taxes

Doing Business in Connecticut

Web design and mantenance is NOT taxable, but all other computer services are at 1%. Keep your eyes peeled for those services which are taxable at 6%!

--Kate

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);

* 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)

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The termination of the tax on computer and data processing services scheduled to take place on July 1, 2004 has been repealed.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).

* Contractor services (IP 2004(29), A Guide to Connecticut Sales and Use Taxes for Building Contractors; Conn. Agency Regs. 12-426-18);"