Sec. 12-412. Exemptions. Taxes imposed by this chapter shall not apply to the
gross receipts from the sale of and the storage, use or other consumption in this state
with respect to the following items:
(1) The United States, the state or subdivisions. (A) Sales of tangible personal
property or services to the United States, the state of Connecticut or any of the political
subdivisions thereof, or its or their respective agencies; (B) sales of tangible personal
property or services used to develop property which the state of Connecticut is under
contract to purchase through a long-term financing contract; (C) sales and use of any
services or tangible personal property to be incorporated into or used or otherwise consumed in (i) the demolition, remediation or preparation of the Adriaen's Landing site
and the stadium facility site for purposes of the overall project, each as defined in section
32-651, (ii) the construction of the convention center, the Connecticut Center for Science
and Exploration, the stadium facility and the related parking facilities and site preparation and infrastructure improvements, each as defined in section 32-651, or (iii) the
construction of any future capital improvement to the convention center, the stadium
facility or the related parking facilities.
(2) Federal exemptions. Sales of tangible personal property or services which this
state is prohibited from taxing under the Constitution or laws of the United States.
(3) Certain utilities. (A) Gas and electricity for residential use and certain
manufacturing or agricultural production. The sale, furnishing or service of gas,
including bottled gas, and electricity when delivered to consumers through mains, lines,
pipes or bottles for use (i) in any residential dwelling or (ii) directly in agricultural
production, fabrication of a finished product to be sold or an industrial manufacturing
plant, provided the exemption under this subdivision (ii) shall only be allowed with
respect to a metered building, location or premise at which not less than seventy-five per
cent of the gas, including bottled gas, or electricity consumed at such metered building,
location or premise is used for the purpose of such production, fabrication or manufacturing. Bottled gas as used in this subsection means L.P. (propane) gas.
(B) Telephone and cable television service prior to January 1, 1990. The sale
or furnishing of telephone service and community antenna television and cable service,
provided the exemption for services described in this subparagraph shall not be applicable to any such service rendered on or after January 1, 1990.
(C) Water, steam and telegraph. The sale, furnishing or service of water, steam
and telegraph when delivered to consumers through mains, lines, pipes or bottles.
(D) Monthly charges of one hundred fifty dollars or less for electricity not
otherwise exempt. The sale or furnishing of electricity, not subject to the exemption
under subparagraph (A) of this subsection, with respect to that portion of the charges
applicable to such electricity for any month of service which is not in excess of one
hundred fifty dollars.
(E) Gas, water, steam or electricity used in furnishing same to consumers. The
sale, furnishing or service of gas, water, steam or electricity for use directly in the furnishing of gas, water, steam or electricity delivered to consumers through mains, lines or
pipes.
(4) Prescription medicine, syringes and needles. Sales of and the storage, use or
other consumption of medicine only by prescription as defined by federal or state law,
including such medicine provided for no consideration and the sales of syringes and
needles only by prescription. Sales of and the storage, use or other consumption of
materials, including materials used in packaging, which become an ingredient or component part of medicine only by prescription, as defined by federal or state law.
(5) Nonprofit charitable hospitals, nursing homes, rest homes, residential care
homes and acute care for-profit hospitals. (A) Sales of tangible personal property
or services to and by nonprofit charitable hospitals in this state, nonprofit nursing homes,
nonprofit rest homes and nonprofit residential care homes licensed by the state pursuant
to chapter 368v for the exclusive purposes of such institutions except any such service
transaction as described in subparagraph (EE) of subdivision (37) of subsection (a) of
section 12-407.
(B) Sales of tangible personal property by any organization that is exempt from
federal income tax under Section 501(a) of the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States, as from time to
time amended, and that the United States Treasury Department has expressly determined, by letter, to be an organization that is described in Section 501(c)(3) of said
internal revenue code, which sales are made on the premises of a hospital.
(C) Sales of tangible personal property or services to an acute care, for-profit hospital, operating as an acute care, for-profit hospital as of May 12, 2004, for the purposes
of such institution in connection with the constructing and equipping of any facility of
such hospital for which a certificate of need was filed before, and is pending on, May
12, 2004.
(6) Newspapers and magazines. Repealed by P.A. 03-2, S. 58, effective April
1, 2003.
(7) Cigarettes. Former subsection (g) repealed by P.A. 80-71, S. 21, 30.
(8) Organizations exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, as determined by the U.S. Treasury Department.
Exemption qualification requirements. Sales of tangible personal property or services
to any organization that is exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, and that the United States Treasury
Department has expressly determined, by letter, to be an organization that is described
in Section 501(c)(3) or (13) of said internal revenue code. At the time of the sale that
is exempt under this subsection, the organization shall, in order to qualify for said exemption, do one of the following: (A) Present to the retailer (i) a copy of the United States
Treasury Department determination letter that was issued to such organization and (ii)
a certificate, in such form as the commissioner may prescribe, certifying that a United
States Treasury Department determination letter has been issued to such organization
and has not been revoked and that the tangible personal property or services that are
being purchased from the retailer by such organization are to be used or consumed
exclusively for the purposes for which such organization was established or (B) present
to the retailer (i) a copy of the exemption permit that was issued pursuant to this subsection by the commissioner to such organization before July 1, 1995, after a determination
of eligibility by the commissioner and (ii) a certificate, in such form as the commissioner
may prescribe, certifying that an exemption permit was issued pursuant to this subsection
by the commissioner to such organization before July 1, 1995, and was not revoked and
that the tangible personal property or services that are being purchased from the retailer
by such organization are to be used or consumed exclusively for the purposes for which
the organization was established. The organization shall be liable for the tax otherwise
imposed if such tangible personal property or services are not used or consumed exclusively for the purposes for which the organization was established.
(9) Food products sold in educational institutions and certain health and care
facilities. Sales of food products, meals, candy, confectionery and beverages, except
alcoholic beverages, in a student cafeteria, dining-hall, dormitory, fraternity or sorority
maintained in a private, public or parochial school, college or university, to members
of such institutions or organizations, including all sales of such items to such members
at such institutions or organizations using prepaid meal plan cards or arrangements; and
sales of food products, meals, candy, confectionery and beverages to patients, residents
or care recipients in hospitals, residential care homes, assisted living facilities, senior
centers, day care centers, convalescent homes, nursing homes and rest homes.
(10) Exemption of children's clothing. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(11) Personal services. Professional, insurance or personal service transactions,
except any such service transaction described in subdivision (2) of subsection (a) of
section 12-407, which involve sales as inconsequential elements for which no separate
charges are made.
(12) Livestock, rabbits and poultry; feed; seeds and certain tree seedlings; fertilizer; plants; horses, except those racing at commercial race tracks. Repealed by
June Sp. Sess. P.A. 91-3, S. 166, 168.
(13) Food products. Sales of food products for human consumption. "Food products" include cereals and cereal products, milk and milk products, oleomargarine, meat
and meat products, fish and fish products, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices and salt, sugar and sugar products other
than candy and confectionery; coffee and coffee substitutes, tea, cocoa and cocoa products other than candy and confectionery. "Food products" do not include spirituous,
malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed
at bars and soda fountains, or in connection therewith, medicines except by prescription,
tonics and preparations in liquid, powdered, granular, tablet, capsule, lozenge and pill
form sold as dietary supplements or adjuncts. "Food products" also do not include meals
sold by an eating establishment or caterer. "Meal" means food products which are furnished, prepared or served in such a form and in such portions that they are ready for
immediate consumption. A meal as defined in this subsection includes food products
which are sold on a "take out" or "to go" basis and which are actually packaged or
wrapped. The sale of a meal, as defined in this subsection, is a taxable sale. "Eating
establishment" means a place where meals are sold and includes a restaurant, cafeteria,
grinder shop, pizzeria, drive-in, fast food outlet, ice cream truck, hot dog cart, refreshment stand, sandwich shop, private or social club, cocktail lounge, tavern, diner, snack
bar, or hotel or boarding house which furnishes both lodging and meals to its guests.
(14) Containers. (A) Nonreturnable containers and returnable dairy product containers when sold without the contents to persons who place the contents in the container
and sell the contents together with the container; (B) containers when sold with the
contents if the sales price of the contents is not required to be included in the measure
of the taxes imposed by this chapter; (C) returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling. As used
herein, "returnable containers" means containers of a kind customarily returned by the
buyer of the contents for reuse, but does not mean nonrefillable beverage containers,
as defined in subdivision (10) of section 22a-243. All other containers are "nonreturnable
containers". Nothing in this subsection shall be construed so as to tax the gross receipts
from the sale of or the storage, use or other consumption in this state of bags in which feed
for livestock and poultry, as defined in subdivision (12) of this section, is customarily
contained.
(15) Motor vehicle fuel. Sales of and the storage, use or other consumption in this
state of motor vehicle fuel (A) for use in any motor vehicle licensed or required to be
licensed to operate upon the public highways of this state, whether or not the tax imposed
under chapter 221 has been paid on such fuel, or (B) for any other use, if the tax imposed
under chapter 221 has been paid on such fuel and has not been refunded under the
provisions of chapter 221.
(16) Fuel for heating purposes. Sales of fuel used for heating purposes (i) in any
residential dwelling or (ii) in any building, location or premise utilized directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this subdivision (ii) shall only be allowed
with respect to a building, location or premise in which not less than seventy-five per
cent of the fuel used in such building, location or premise is used for the purpose of
such production, fabrication or manufacturing.
(17) Sale of meals. Former subsection (q) repealed by P.A. 83-18, S. 4, 5.
(18) Production materials. Sales of and the storage or use of materials, rope, fishing nets, tools and fuel or any substitute therefor, which become an ingredient or component part of tangible personal property to be sold or which are used directly in the fishing
industry or in an industrial plant in the actual fabrication of the finished product to be
sold. Sales of and the storage or use of materials, tools and fuel or any substitute therefor,
when such products are used directly in the furnishing of power to an industrial manufacturing plant or in the furnishing of gas, water, steam or electricity when delivered to
consumers through mains, lines or pipes.
(19) Oxygen, blood plasma, prostheses, custom-made wigs or hairpieces, hearing and vision aids, canes, crutches, walkers and wheel chairs, vital life support
equipment, apnea monitors, support hose and related repair or replacement parts
and repair services. Sales of and the storage, use or other consumption of (A) oxygen,
blood or blood plasma when sold for medical use in humans or animals; (B) artificial
devices individually designed, constructed or altered solely for the use of a particular
handicapped person so as to become a brace, support, supplement, correction or substitute for the bodily structure, including the extremities of the individual, and repair or
replacement parts and repair services rendered to property described in this subparagraph; (C) artificial limbs, artificial eyes and other equipment worn as a correction or
substitute for any functioning portion of the body, custom-made wigs or hairpieces for
persons with medically diagnosed total and permanent hair loss as a result of disease
or the treatment of disease, artificial hearing aids when designed to be worn on the
person of the owner or user, closed circuit television equipment used as a reading aid
by persons who are visually impaired and repair or replacement parts and repair services
rendered to property described in this subparagraph; (D) canes, crutches, walkers, wheel
chairs and inclined stairway chairlifts for the use of invalids and handicapped persons,
and repair or replacement parts and repair services to property described in this subparagraph; (E) any equipment used in support of or to supply vital life functions, including
oxygen supply equipment used for humans or animals, kidney dialysis machines and
any other such device used in necessary support of vital life functions, and apnea monitors, and repair or replacement parts and repair services rendered to property described
in this subparagraph; and (F) support hose that is specially designed to aid in the circulation of blood and is purchased by a person who has a medical need for such hose. Repair
or replacement parts are exempt whether purchased separately or in conjunction with the
item for which they are intended, and whether such parts continue the original function or
enhance the functionality of such item. As used in this subdivision, "repair services"
means services that are described in subparagraph (Q) or (CC) of subdivision (37) of
subsection (a) of section 12-407.
(20) Flyable aircraft. Sales of and the storage, use or other consumption, by a
manufacturer of aircraft located in this state, of flyable aircraft complete with necessary
equipment and modifications, but not separate engines and parts thereof, sold to persons
taking delivery and using such aircraft as certificated or licensed carriers of persons or
property in interstate or foreign commerce under authority of the laws of the United
States or any foreign government, or sold to any foreign government for use by such
government outside of this state, or sold to persons who are not residents of this state
and who will not use such aircraft in this state otherwise than in the removal of such
aircraft from this state.
(21) Personal property for incorporation into or use in waste treatment facilities. Sales of and the storage, use or other consumption of tangible personal property
acquired for incorporation into or used and consumed in the operation of facilities for
the treatment of industrial waste before the discharge thereof into any waters of the state
or into any sewerage system emptying into such waters, the primary purpose of which
is the reduction, control or elimination of pollution of such waters, certified as approved
for such purpose by the Commissioner of Environmental Protection. For the purposes
of this subdivision "industrial waste" means any harmful thermal effect or any liquid,
gaseous or solid substance or combination thereof resulting from any process of industry,
manufacture, trade or business or from the development or recovery of any natural
resource.
(22) Personal property incorporated into or consumed in air pollution control
facilities. Sales of and the storage, use or other consumption of tangible personal property or supplies acquired for incorporation into or used and consumed in the operation
of facilities, the primary purpose of which is the reduction, control or elimination of air
pollution, certified as approved for such purpose by the Commissioner of Environmental
Protection. Said commissioner may certify to a portion of such tangible personal property or supplies acquired for incorporation into such facilities to the extent that such
portion shall have as its primary purpose the reduction, control or elimination of air
pollution.
(23) United States and Connecticut state flags. Sales of United States and Connecticut state flags.
(24) Municipal publications, sales by public libraries or by municipal auction
and book sales by library support groups. Sales of municipal publications such as
information booklets and zoning regulations, tangible personal property sold by public
libraries, the sale of any property at auction by a municipality, and book sales by library
support groups.
(25) Unregistered motor vehicles in interstate commerce. Repealed by P.A. 95-359, S. 18, effective July 13, 1995.
(26) Items not costing more than twenty dollars each by certain nonprofit organizations and schools. Sales of items for not more than twenty dollars each by any
Connecticut eleemosynary organization, for purposes of youth activities which such
organization is formed to sponsor and support, and by any accredited elementary or
secondary school for purposes of such school or of organized activities of the students
enrolled therein.
(27) Vending machine sales of fifty cents or less. Meals sold through vending
machines or "honor boxes". (A) Sales of any items for fifty cents or less from vending
machines; or (B) notwithstanding the provisions of subdivision (13) of this section,
meals sold through coin-operated vending machines or at unattended "honor boxes".
(28) Ambulance-type motor vehicles. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(29) Personal property and services used or consumed in development, construction, rehabilitation, renovation, repair or operation of housing facilities for
low and moderate income families and persons. (A) Sales of and the storage, use or
other consumption of tangible personal property acquired for incorporation into or used
and consumed in the operation of housing facilities for low and moderate income families and persons and sales of and the acceptance, use or other consumption of any service
described in subdivision (2) of section 12-407 that is used and consumed in the development, construction, rehabilitation, renovation, repair or operation of housing facilities
for low and moderate income families and persons, provided such facilities are constructed under the sponsorship of and owned or operated by nonprofit housing organizations or housing authorities, as defined in subsection (b) of section 8-39. The nonprofit
housing organization or housing authority sponsoring the construction of or owning or
operating such housing facility shall obtain from the commissioner a letter of determination that the housing facility has, to the satisfaction of said commissioner, met all the
requirements for exemption under this subsection. At the time of any sale or purchase
that is exempt under this subsection, the purchaser shall present to the retailer a copy
of the determination letter that was issued to the nonprofit housing organization or
housing authority together with a certificate from the purchaser, in such form as the
commissioner may prescribe, certifying that the tangible personal property or services
that are being purchased from the retailer are to be used or consumed exclusively for
the purposes of incorporation into or in the development, construction, rehabilitation,
renovation, repair or operation of the housing facility identified in the letter of determination. For the purposes of this subsection, (i) "nonprofit housing organization" means
any organization which has as one of its purposes the development, construction, sponsorship or ownership of housing for low and moderate income families as stated in its
charter, if it is incorporated, or its constitution or bylaws, if it is unincorporated, and
which has received exemption from federal income tax under the provisions of Section
501(c) of the Internal Revenue Code, as amended from time to time, provided the charter
of such organization, if it is incorporated, or its constitution or bylaws, if unincorporated,
shall contain a provision that no officer, member or employee thereof shall receive or
at any future time may receive any pecuniary profit from the operation thereof, except
a reasonable compensation for services in effecting the purposes of the organization;
(ii) "housing facilities" means facilities having as their primary purpose the provision
of safe and adequate housing and related facilities for low and moderate income families
and persons, notwithstanding that said housing provides other dwelling accommodations in addition to the primary purpose of providing dwelling accommodations for low
and moderate income families; (iii) "related facilities" means those facilities defined in
subsection (d) of section 8-243; and (iv) "low and moderate income families" means
those families as defined in subsection (h) of said section 8-243.
(B) Sales of and the acceptance, use or other consumption of any service described
in subdivision (2) of section 12-407 that is used or consumed in the development, construction, renovation or operation of housing facilities for low and moderate income
families and persons, provided such facilities are owned or sponsored by a mutual housing association, as defined in subsection (b) of section 8-214f, and operated as mutual
housing by such association at a location that was conveyed to such association by the
United States Secretary of Housing and Urban Development prior to September 1, 1995.
(30) Commodities in the form traded on boards of trade and not converted to
use by purchaser. Sales and storage of any commodity in the form traded on any contract
market or other board of trade as defined in the Commodity Exchange Act, as amended,
provided this exemption shall not apply to any commodity subsequently converted to
use by a purchaser and in such event such purchaser shall be liable for the tax under
section 12-411 unless otherwise exempt under any of the provisions of this section.
(31) Printed material manufactured for purchaser in Connecticut to be delivered for use outside the state. Sales of any printed material which has been manufactured in Connecticut to the special order of a purchaser and which, within thirty days
following delivery to such purchaser, is to be delivered for use outside Connecticut,
provided such purchaser presents written certification to the seller when such material
is received by such purchaser that such material shall be delivered for use outside Connecticut within thirty days.
(32) Vessels sold in Connecticut by shipbuilder or marine dealer to be transported immediately for use out of state. Repealed by June Sp. Sess. P.A. 91-3, S. 166,
168 and June Sp. Sess. P.A. 91-14, S. 27, 30.
(33) Solar energy systems. Former subsection (gg) repealed by P.A. 84-507, S. 3, 4.
(34) Machinery used in manufacturing. Sales of and the storage, use or other
consumption of machinery used directly in a manufacturing production process. The
word "machinery" as used in this subsection means the basic machine itself, and includes
all of its component parts and contrivances, such as belts, pulleys, shafts, moving parts,
operating structures and equipment or devices, which component parts and contrivances
are used or required to control, regulate or operate the machinery or to enhance or alter
its productivity or functionality, whether such component parts and contrivances are
purchased separately or in conjunction with such machine and all replacement and repair
parts for the basic machine or for its component parts and contrivances, whether such
replacement or repair parts are purchased separately or in conjunction with such machine. For the purposes of this subsection, "machinery" includes machinery used exclusively to control or monitor an activity occurring during the manufacturing production
process and machinery used exclusively during the manufacturing production process
to test or measure materials and products being manufactured but shall not include office
equipment or data processing equipment other than numerically controlled machinery
used directly in the manufacturing process.
(35) Centers of service for elderly persons. Sales of tangible personal property
or services to any center of service for elderly persons as described in subdivision (d)
of section 17b-425.
(36) Motor vehicle driving service performed out of state. The sale of any motor
vehicle driving service to the extent of that proportionate part of gross receipts from
such service rendered which is directly related to actual driving performance outside
the state.
(37) Fuel for use in certain high-occupancy commuter vehicles. Sales of and the
storage, use or other consumption of any fuel with respect to which the tax imposed
under chapter 221 has been refunded under subdivision (11) of subsection (a) of section
12-459.
(38) Telephone equipment designed exclusively for deaf or blind persons. Sales
of and the storage, use or other consumption of any equipment designed exclusively for
use by persons who are deaf or blind for purposes of communication by telephone.
(39) Renewable energy systems or systems using cogeneration technology. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(40) Commercial fishing vessels and machinery or equipment for use thereon.
(A) Sales of and the storage, use or other consumption of any vessel exclusively for
use in commercial fishing and any machinery or equipment exclusively for use on a
commercial fishing vessel by a fisherman engaged in commercial fishing as a trade or
business and to whom the Department of Revenue Services has issued a fisherman tax
exemption permit, provided (i) for the immediately preceding taxable year, or (ii) on
average, for the two immediately preceding taxable years, not less than fifty per cent
of the gross income of the purchaser, as reported for federal income tax purposes, shall
have been derived from commercial fishing, subject to proof satisfactory to the Commissioner of Revenue Services.
(B) The commissioner shall adopt regulations, in accordance with the provisions
of chapter 54, requiring periodic registration for purposes of the issuance of fisherman
tax exemption permits, including (i) a procedure related to the application for such
permit, which application shall include a declaration, in a form prescribed by the commissioner and bearing notice to the effect that false statements made in such declaration
are punishable, to be signed by the applicant, and (ii) a form of notice concerning the
penalty for misuse of such permit.
(C) (i) The Commissioner of Revenue Services may issue a fisherman tax exemption permit to an applicant, provided such applicant has satisfied the commissioner that
the applicant intends to carry on commercial fishing as a trade or business for at least
two years, notwithstanding the fact that the applicant was not engaged in commercial
fishing as a trade or business in the immediately preceding taxable year or, if the applicant
was engaged in commercial fishing as a trade or business in such immediately preceding
taxable year, notwithstanding the fact that, for such immediately preceding taxable year,
or, on average, for the two immediately preceding taxable years, less than fifty per cent
of the gross income of the applicant, as reported for federal income tax purposes, was
derived from commercial fishing.
(ii) Such applicant shall be liable for the tax otherwise imposed, during the period
commencing upon the issuance of the permit and ending two years after the date of
issuance of the permit, if commercial fishing is not carried on as a trade or business by
such applicant during such entire period.
(iii) Such applicant shall also be liable for the tax otherwise imposed, during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit, if less than fifty per cent of the gross income of such applicant,
as reported for federal income tax purposes, shall have been derived from such commercial fishing for the immediately preceding taxable year, or, on average, for the two
immediately preceding taxable years.
(iv) Any applicant liable for tax under clause (ii) or (iii) of this subparagraph shall
not be eligible to be issued another permit under clause (i) of this subparagraph.
(D) The Commissioner of Revenue Services may issue a fisherman tax exemption
permit to an applicant, notwithstanding the fact that, in the applicant's immediately
preceding taxable year, less than fifty per cent of the gross income of the applicant, as
reported for federal income tax purposes, was derived from commercial fishing, provided (i) such applicant purchased, during the applicant's current or immediately preceding taxable year, a commercial fishing trade or business from a seller who was issued
a fisherman tax exemption permit by said commissioner at the time of such purchase,
and (ii) such commercial fishing shall be carried on as a trade or business by such
applicant during the period commencing upon the purchase and ending two years after
the date of purchase. Such applicant shall be liable for the tax otherwise imposed, during
the period commencing upon such purchase and ending two years after the date of
purchase, if such applicant does not carry on such commercial fishing as a trade or
business during the period commencing upon such purchase and ending two years after
the date of purchase.
(E) For purposes of this subdivision, "commercial fishing vessel" shall include any
vessel with a certificate of documentation issued by the United States Coast Guard for
coastwise fishery.
(41) Services to determine effect on human health of consumption or use of a
product or substance. Sales of services used to determine the probable consequences
in relation to human health of the consumption or other use of any product, substance
or element.
(42) Aircraft held for resale by certain air carriers and used for purposes other
than retention, demonstration or display. Repealed by P.A. 85-240, S. 5, 6.
(43) Replacement parts in enterprise zones. Sales of any replacement parts for
machinery to any business entity located in any enterprise zone designated pursuant to
section 32-70 for use within such zone.
(44) Certain motion picture, video, television and radio production and broadcast equipment. (A) Sales of and the storage, use or other consumption of any filmed
and taped television and radio programs and any materials which become an ingredient
or component part of films or tapes which are used directly in the production and transmission of finished programs (i) broadcast to the general public by a television or radio
station or (ii) used on or after October 1, 1986, for purposes of accredited medical or
surgical training, including any equipment used for such purpose; (B) sales of and the
storage, use, rental, lease or other consumption of any motion picture or video production
equipment or sound recording equipment purchased or leased for use in this state for
production activities which become an ingredient or component part of any master tapes,
records, video tapes or film produced for commercial entertainment, commercial advertising or commercial educational purposes; or (C) sales of and the storage, use, rental
or lease of equipment, including, but not limited to, antennas used directly in the production or broadcast of programs to the general public by a television or radio station.
(45) Gold or silver bullion, legal tender of any nation, rare and antique coins.
Sales of and the storage or use of rare or antique coins, gold or silver bullion and gold
or silver legal tender of any nation, traded according to its value as precious metal,
provided such exemption shall not be applicable with respect to any such sale, storage
or use in which the total value of such bullion or legal tender sold by the retailer is less
than one thousand dollars.
(46) Meals delivered to homes of persons who are elderly, disabled or otherwise
confined. Sales of home delivered meals to elderly, disabled and other homebound
persons.
(47) Articles of clothing or footwear costing under fifty dollars. Sales of any
article of clothing or footwear intended to be worn on or about the human body the cost
of which to the purchaser is less than fifty dollars. For purposes of this subdivision
clothing or footwear shall not include (A) any special clothing or footwear primarily
designed for athletic activity or protective use that is not normally worn except when
used for the athletic activity or protective use for which it was designed, and (B) jewelry,
handbags, luggage, umbrellas, wallets, watches and similar items carried on or about
the human body but not worn on the body in the manner characteristic of clothing
intended for exemption under this subdivision.
(48) Nonprescription drugs and medicines. Sales of the following drugs or medicines available for purchase without prescription for use in or on the body: Vitamin or
mineral concentrates; dietary supplements; natural or herbal drugs or medicines; products intended to be taken for coughs, colds, asthma or allergies; antihistamines; laxatives;
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral and antifungal
medicines; antiseptics; astringents; anesthetics; steroidal medicines; anthelmintics;
emetics and antiemetics; antacids; and any medication prepared to be used in the eyes,
ears or nose, excluding cosmetics, dentifrices, mouthwash, shaving and hair care products, soaps and deodorants.
(49) Property tax payments under motor vehicle leases. Any payment made by
a lessee of a motor vehicle to a lessor for the purpose of paying the property taxes on
any such vehicle under a lease which is otherwise subject to the taxes imposed by this
chapter if such lease requires the lessee to pay such property taxes and if a separate
statement of the amount of any such property tax payment is contained in such lease or
in any bill rendered pursuant to such lease.
(50) Lease or rental of any motion picture film for display by theater owner
or operator. The leasing or rental of any motion picture film by the owner or operator
of a motion picture theater for purposes of display at such theater.
(51) Any meal the cost of which is less than two dollars. Repealed by P.A. 89-251, S. 202, 203.
(52) Cloth or fabric purchased for noncommercial sewing. Any sale of cloth or
fabric for purposes of noncommercial sewing, made of natural or synthetic fibers and
of such composition, weight and texture as to be used commonly in clothing, and including in addition to such cloth or fabric, any items necessary in such sewing which become
a component part of the clothing so made.
(53) Disposable pads used for incontinency. Sales of certain disposable pads prepared for use in the manner of a diaper or as an underpad, and commonly used by persons
who are incontinent.
(54) Test strips and tablets, lancets and glucose monitoring equipment used in
care of diabetes and associated repair or replacement parts. Sales of test strips and
tablets, lancets and glucose monitoring equipment for purposes of certain tests and
monitoring required in the care of diabetes and repair or replacement parts for such
equipment, whether such repair or replacements parts are purchased separately or in
conjunction with the sale of such equipment, and whether such parts continue the original
function or enhance the functionality of such equipment.
(55) Certain personal property used in burial or cremation. Sales of (A) tangible
personal property by any funeral establishment performing the primary services in preparation for and the conduct of burial or cremation, provided any such property must be
used directly in the performance of such services and the total amount of such exempt
sales with respect to any single funeral may not exceed two thousand five hundred
dollars, or (B) caskets used for burial or cremation.
(56) Sales of certain items by nursing homes, rest homes, residential care
homes, convalescent homes or adult day care centers. Sales of items for not more
than one hundred dollars each by any nursing home, rest home, residential care home,
convalescent home or any adult day care center approved for such purpose by the Commissioner of Social Services, provided (1) such sales are made through a gift shop located
in such home or center and (2) any profits from such sales are retained by such home
or center for the benefit of the patients, in the case of any such home, or persons using
any such adult day care center.
(57) Items purchased with federal food stamp coupons. Sales of any items purchased with federal food stamp coupons, subject to the provisions of section 12-412e.
(58) Services related to personnel, management or research when company
rendering service and recipient are participating in a joint venture for purposes
of research and new product development. Sales of any services rendered for purposes
of (A) personnel services, (B) commercial or industrial marketing, development, testing
or research services, or (C) business analysis and management services, whenever, pursuant to a joint venture agreement, the recipient of any such services is either a corporation, a partnership, or a limited liability company, and such services are rendered by
one or more corporate shareholders, or a corporate partner or corporate member in such
joint venture, and in accordance with which the company rendering such service must
have an ownership interest equivalent to not less than twenty-five per cent of total ownership in such joint venture, provided (i) the purpose of such joint venture is directly
related to production or development of new or experimental products or systems and
the marketing and support thereof, (ii) at least one of the corporations participating in
such joint venture shall have been actively engaged in business in this state for not less
than ten years, and (iii) exemption for such sales in accordance with this subsection,
with respect to any single joint venture, shall not be allowed for a period in excess of
twenty consecutive years from the date of such venture's incorporation, formation or
organization, or in the case of a joint venture in existence prior to January 1, 1986,
within the aircraft industry, for a period in excess of thirty consecutive years, and such
exemption shall be applicable to sales of such services rendered on or after January
1, 1986.
(59) Aviation fuel used exclusively and directly in the experimental testing of
any product. Sales of and the storage, use or other consumption of any aviation fuel
used exclusively and directly in the experimental testing of any product.
(60) Motor vehicle or vessel purchased but not registered in this state by a
person who is not a resident of this state. The sale of any motor vehicle or vessel, as
defined in section 15-127, in this state when the purchaser of such motor vehicle or
vessel is not a resident of this state and does not maintain a permanent place of abode
in this state, provided such motor vehicle or vessel is not presented for registration with
the Department of Motor Vehicles in this state and such purchaser submits a declaration,
prescribed as to form by the commissioner and bearing notice to the effect that false
statements made in such declaration are punishable, or other evidence as may be requested by the Commissioner of Revenue Services concerning such purchaser's residency or place of abode.
(61) Ambulances. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(62) Services rendered between parent companies and wholly-owned subsidiaries. (A) Sales of any of the services enumerated in subpragraph (I), (K) or (L) of
subdivision (2) of subsection (a) of section 12-407 that are rendered for a business entity
affiliated with the business entity rendering such service in such manner that (i) either
business entity in such transaction owns a controlling interest in the other business entity,
or (ii) a controlling interest in each business entity in such transaction is owned by the
same person or persons or business entity or business entities.
(B) For purposes of this subdivision, (i) "business entity" means a corporation, trust,
estate, partnership, limited partnership, limited liability partnership, limited liability
company, single member limited liability company, sole proprietorship, nonstock corporation or a federally-recognized Indian tribe; (ii) "controlling interest" means, in the
case of a business entity that is a corporation, ownership of stock possessing one hundred
per cent of the total combined voting power of all classes of stock entitled to vote or
one hundred per cent of the total value of shares of all classes of stock of such corporation;
in the case of a business entity that is a trust or estate, ownership of a beneficial interest
of one hundred per cent in such trust or estate; in the case of a business entity that is a
partnership, limited partnership or limited liability partnership, ownership of one hundred per cent of the profits interest or capital interest in such partnership, limited partnership or limited liability partnership; in the case of a limited liability company with more
than one member, ownership of one hundred per cent of the profits interest, capital
interest or membership interests in such limited liability company; in the case of a business entity that is a sole proprietorship or single member limited liability company,
ownership of such sole proprietorship or single member limited liability company; in
the case of a business entity that is a nonstock corporation with voting members, control
of one hundred per cent of all voting membership interests in such corporation; and in
the case of a business entity that is a nonstock corporation with no voting members,
control of one hundred per cent of the board of directors of such corporation; (iii) whether
a controlling interest in a business entity is owned shall be determined in accordance
with Section 267 of the Internal Revenue Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as from time to time amended, provided
where a controlling interest is owned in a business entity other than a stock corporation,
the term "stock" as used in said Section 267 of the Internal Revenue Code means, in
the case of a partnership, limited partnership, limited liability partnership or limited
liability company treated as a partnership for federal income tax purposes, the profits
interest or capital interest in such partnership, in the case of a business entity that is a
trust or estate, the beneficial interests in such trust or estate, and in the case of a business
entity that is a nonstock corporation, the voting membership interests in such corporation, or if it has no voting members, the control of the board of directors; (iv) a business
entity has "control of" the board of directors of a nonstock corporation if one hundred
per cent of the voting members of the board of directors are either representatives of,
including ex-officio directors, or persons appointed by such business entity, or "control
of" one hundred per cent of the voting membership interests in a nonstock corporation
if one hundred per cent of the voting membership interests are held by the business
entity or by representatives of, including ex-officio members, or persons appointed by
such business entity.
(63) Items sold for use in agricultural production by a farmer engaged in such
production as a business. (A) Sales of and the storage, use or other consumption of
tangible personal property exclusively for use in agricultural production, as defined in
this subsection, by a farmer engaged in agricultural production as a trade or business
and to whom the Department of Revenue Services has issued a farmer tax exemption
permit, provided such farmer's gross income from such agricultural production, as reported for federal income tax purposes, shall have been (i) not less than two thousand
five hundred dollars for the immediately preceding taxable year, or (ii) on average, not
less than two thousand five hundred dollars for the two immediately preceding taxable
years.
(B) The Commissioner of Revenue Services shall adopt regulations in accordance
with chapter 54 requiring periodic registration for purposes of the issuance of farmer
tax exemption permits, including (i) a procedure related to the application for such
permit, such application to include a declaration, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made
in such declaration are punishable, to be signed by the applicant, and (ii) a form of notice
concerning the penalty for misuse of such permit.
(C) As used in this subsection, (i) "agricultural production" means engaging, as a
trade or business, in (I) the raising and harvesting of any agricultural or horticultural
commodity, (II) dairy farming, (III) forestry, (IV) the raising, feeding, caring for, shearing, training or management of livestock, including horses, bees, poultry, fur-bearing
animals or wildlife or (V) the raising and harvesting of fish, oysters, clams, mussels or
other molluscan shellfish; and (ii) "farmer" means any person engaged in agricultural
production as a trade or business.
(D) The Department of Revenue Services may issue a farmer tax exemption permit
to a farmer, notwithstanding the fact that, in the farmer's immediately preceding taxable
year, such farmer's gross income from agricultural production engaged in as a trade or
business may have been less than two thousand five hundred dollars, provided (i) such
farmer purchased, during such farmer's current or immediately preceding taxable year,
an agricultural trade or business from a seller who was issued a farmer tax exemption
permit by such department at the time of such purchase and (ii) such agricultural production shall be carried on as a trade or business by such purchaser during the period commencing upon the purchase and ending two years after the date of purchase. Such purchaser shall be liable for the tax otherwise imposed, during the period commencing
upon such purchase and ending two years after the date of purchase, if such agricultural
production is not carried on as a trade or business by such purchaser during the period
commencing upon such purchase and ending two years after the date of purchase.
(E) (i) The Department of Revenue Services, under such regulations as the Commissioner of Revenue Services may adopt in accordance with the provisions of chapter
54, may issue a farmer tax exemption permit to an applicant, provided such applicant
has satisfied the commissioner that the applicant intends to carry on agricultural production as a trade or business for at least two years, notwithstanding the fact that the applicant
was not engaged in agricultural production as a trade or business in the immediately
preceding taxable year or, if the applicant was engaged in agricultural production as a
trade or business in the immediately preceding taxable year, notwithstanding the fact
that the applicant's gross income from such agricultural production, as reported for
federal income tax purposes, was less than two thousand five hundred dollars for the
immediately preceding taxable year or, on average, less than two thousand five hundred
dollars for the two immediately preceding taxable years.
(ii) Such applicant shall be liable for the tax imposed under this chapter during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit if agricultural production is not carried on as a trade or business
by such applicant during such entire period.
(iii) Such applicant shall also be liable for the tax otherwise imposed, during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit, if (I) such applicant's gross income from such agricultural
production, as reported for federal income tax purposes, is less than two thousand five
hundred dollars for the immediately preceding taxable year or, on average, less than
two thousand five hundred dollars for the two immediately preceding taxable years, and
(II) such applicant's expenses from such agricultural production, as reported for federal
income tax purposes, are less than two thousand five hundred dollars for the immediately
preceding taxable year or, on average, less than two thousand five hundred dollars for
the two immediately preceding taxable years.
(iv) Any applicant liable for tax under clause (ii) or (iii) of this subparagraph shall
not be eligible to be issued another permit under clause (i) of this subparagraph.
(64) Computer-related cleaning equipment. Sales of and the storage, use or other
consumption of equipment used directly in the production and cleaning of computer
discs for purposes of creating and maintaining the atmospheric environment necessary
in the area immediately surrounding such production and cleaning process, including
with respect to such area, climate control, air quality and a positive pressure mode
adapted to the particular climate and air quality requirements of such production and
cleaning process.
(65) Molds, dies, patterns and sand handling equipment for metal casting
foundries. The purchase and sale by metal casting foundries of molds, dies, patterns
and sand handling equipment.
(66) Molds, dies and patterns for pattern shops and metal casting foundries.
The sale by pattern shops of molds, dies and patterns to metal casting foundries or their
customers for use in such foundries, and the purchase and use of such items by pattern
shops in connection with any such sales.
(67) New motor vehicles exclusively powered by clean alternative fuels. Sales
of and the storage, use or other consumption, prior to July 1, 2008, of a new motor vehicle
which is exclusively powered by a clean alternative fuel. As used in this subdivision and
subdivisions (68) and (69) of this section, "clean alternative fuel" shall mean natural
gas, hydrogen or electricity when used as a motor vehicle fuel or propane when used
as a motor vehicle fuel if such a vehicle meets the federal fleet emissions standards
under the federal Clean Air Act or any emissions standards adopted by the Commissioner
of Environmental Protection as part of the state's implementation plan under said act.
(68) Conversion equipment associated with converting vehicles to exclusive
use of clean alternative fuels or dual use of such fuel and any other fuel. Sales of
and the storage, use or other consumption, prior to July 1, 2008, of conversion equipment
incorporated into or used in converting vehicles powered by any other fuel to either
exclusive use of a clean alternative fuel or dual use of any other fuel and a clean alternative fuel, including, but not limited to, storage cylinders, cylinder brackets, regulated
mixers, fill valves, pressure regulators, solenoid valves, fuel gauges, electronic ignitions
and alternative fuel delivery lines.
(69) Equipment associated with compressed natural gas filling or electric recharging station. Sales of and the storage, use or other consumption, prior to July 1,
2008, of equipment incorporated into or used in a compressed natural gas or hydrogen
filling or electric recharging station for vehicles powered by a clean alternative fuel,
including, but not limited to, compressors, storage cylinders, associated framing, tubing
and fittings, valves, fuel poles and fuel delivery lines used for clean alternative fuel
storage and filling facilities.
(70) Commercial trucks, truck tractors, tractors and semitrailers and vehicles
used in combination therewith. (A) Sales of and the storage, use or other consumption
of commercial trucks, truck tractors, tractors and semitrailers, and vehicles used in combination therewith, which (i) have a gross vehicle weight rating in excess of twenty-six
thousand pounds or (ii) are operated actively and exclusively during the period commencing upon its purchase and ending one year after the date of purchase for the carriage
of interstate freight pursuant to a certificate or permit issued by the Interstate Commerce
Commission or its successor agency. As used in this subsection, "gross vehicle weight
rating" means the value specified by the manufacturer as the loaded weight of the single
or combination vehicle and, if the manufacturer has not specified a value for a towed
vehicle, means the value specified for the towing vehicle plus the loaded weight of the
towed unit.
(B) Each purchaser of a commercial truck, truck tractor, tractor or semitrailer or
vehicle used in combination therewith exempt from tax pursuant to the provisions of
subparagraph (A)(ii) of this subsection shall, in order to qualify for said exemption,
present to the retailer (i) a copy of the certificate or permit that was issued by the Interstate
Commerce Commission or its successor agency to the purchaser and (ii) a certificate,
in such form as the commissioner may prescribe, certifying that such commercial truck,
truck tractor, tractor or semitrailer or vehicle used in combination therewith will be
operated actively and exclusively for the carriage of interstate freight. The purchaser
shall be liable for the tax otherwise imposed if, during the period commencing upon its
purchase and ending one year after the date of purchase, such commercial truck, truck
tractor, tractor or semitrailer or vehicle used in combination therewith is not operated
actively and exclusively for the carriage of interstate freight.
(71) Machinery, equipment, tools, materials and supplies used in commercial
printing. Sales of and the storage, use or other consumption of machinery, equipment,
tools, materials and supplies used predominantly in the production of printed material
by a commercial printer or publisher. For purposes of this subsection, "the production
of printed material" is defined to include all processes necessary to convert manuscript
copy into printed material, including but not limited to, layout, color separation and
typesetting.
(72) Machinery, equipment, tools, materials and supplies for typesetting, color
separation, finished copy, or similar products. Sales of and the storage, use or other
consumption of machinery, equipment, tools, materials and supplies used predominantly in the production of typesetting, color separation, finished copy with type proofs
and artwork or similar content mounted for photomechanical reproduction, or other
similar products to be sold for use in the production of printed materials.
(73) Component parts for assembly of manufacturing machinery. The sale of
any part of a machine purchased exclusively for the purpose of assembling a machine
for use directly in a manufacturing production process, provided the purchaser submits
a certified statement at the time of such purchase, on a form prepared by the Commissioner of Revenue Services, certifying that such part is purchased exclusively for use
in a machine to be assembled by the purchaser, or someone acting on behalf of the
purchaser, and that such machine shall be used directly in a manufacturing production
process. The purchaser shall prepare a record of the use of such part which shall be
maintained by the purchaser for a period of not less than three years following the date
of purchase.
(74) Certain sales of computer and data processing services. (A) Sales of computer and data processing services rendered to a customer (i) by a retailer which, on or
after July 1, 1991, acquired the operations of a data processing facility from the customer,
provided such customer operated the facility for its own use or (ii) by a retailer which,
on or after July 1, 1993, acquired the operations of the data processing facility from the
retailer described in subparagraph (A)(i) of this subsection, provided such customer
formerly operated the facility for its own use. (B) Sales of computer and data processing
services rendered to a customer by a retailer which, on or after July 1, 1995, acquired
the data processing operations from the customer, provided such customer formerly
conducted such data processing operations for its own use. Sales of and the storage, use
or other consumption of computers or data processing equipment, when sold to the
retailer described in this subparagraph and used by such retailer to provide the services
described in this subparagraph. The provisions in this subparagraph shall not apply if
the retailer is a related person, as defined in section 12-217w, with respect to the customer
or the customer is a related person, as defined therein, with respect to the retailer.
(75) Aviation fuel. Sales of and the storage, use or other consumption of aviation
fuel used exclusively for aviation purposes.
(76) Aircraft repair or replacement parts. Sales of and the storage, use or other
consumption of repair or replacement parts exclusively for use (A) in aircraft, or (B) in
the significant overhauling or rebuilding of aircraft or aircraft parts or components on
a factory basis.
(77) Aircraft repair services. Sales of aircraft repair services when such services
are rendered in connection with (A) aircraft, or (B) the significant overhauling or rebuilding of aircraft or aircraft parts or components on a factory basis.
(78) Materials, tools, fuel, machinery and equipment in an aircraft manufacturing facility. On or after July 1, 1993, sales of and the storage, use or other consumption by an aircraft manufacturer operating an aircraft manufacturing fa
Sec. 12-412. Exemptions. Taxes imposed by this chapter shall not apply to the
gross receipts from the sale of and the storage, use or other consumption in this state
with respect to the following items:
(1) The United States, the state or subdivisions. (A) Sales of tangible personal
property or services to the United States, the state of Connecticut or any of the political
subdivisions thereof, or its or their respective agencies; (B) sales of tangible personal
property or services used to develop property which the state of Connecticut is under
contract to purchase through a long-term financing contract; (C) sales and use of any
services or tangible personal property to be incorporated into or used or otherwise consumed in (i) the demolition, remediation or preparation of the Adriaen's Landing site
and the stadium facility site for purposes of the overall project, each as defined in section
32-651, (ii) the construction of the convention center, the Connecticut Center for Science
and Exploration, the stadium facility and the related parking facilities and site preparation and infrastructure improvements, each as defined in section 32-651, or (iii) the
construction of any future capital improvement to the convention center, the stadium
facility or the related parking facilities.
(2) Federal exemptions. Sales of tangible personal property or services which this
state is prohibited from taxing under the Constitution or laws of the United States.
(3) Certain utilities. (A) Gas and electricity for residential use and certain
manufacturing or agricultural production. The sale, furnishing or service of gas,
including bottled gas, and electricity when delivered to consumers through mains, lines,
pipes or bottles for use (i) in any residential dwelling or (ii) directly in agricultural
production, fabrication of a finished product to be sold or an industrial manufacturing
plant, provided the exemption under this subdivision (ii) shall only be allowed with
respect to a metered building, location or premise at which not less than seventy-five per
cent of the gas, including bottled gas, or electricity consumed at such metered building,
location or premise is used for the purpose of such production, fabrication or manufacturing. Bottled gas as used in this subsection means L.P. (propane) gas.
(B) Telephone and cable television service prior to January 1, 1990. The sale
or furnishing of telephone service and community antenna television and cable service,
provided the exemption for services described in this subparagraph shall not be applicable to any such service rendered on or after January 1, 1990.
(C) Water, steam and telegraph. The sale, furnishing or service of water, steam
and telegraph when delivered to consumers through mains, lines, pipes or bottles.
(D) Monthly charges of one hundred fifty dollars or less for electricity not
otherwise exempt. The sale or furnishing of electricity, not subject to the exemption
under subparagraph (A) of this subsection, with respect to that portion of the charges
applicable to such electricity for any month of service which is not in excess of one
hundred fifty dollars.
(E) Gas, water, steam or electricity used in furnishing same to consumers. The
sale, furnishing or service of gas, water, steam or electricity for use directly in the furnishing of gas, water, steam or electricity delivered to consumers through mains, lines or
pipes.
(4) Prescription medicine, syringes and needles. Sales of and the storage, use or
other consumption of medicine only by prescription as defined by federal or state law,
including such medicine provided for no consideration and the sales of syringes and
needles only by prescription. Sales of and the storage, use or other consumption of
materials, including materials used in packaging, which become an ingredient or component part of medicine only by prescription, as defined by federal or state law.
(5) Nonprofit charitable hospitals, nursing homes, rest homes, residential care
homes and acute care for-profit hospitals. (A) Sales of tangible personal property
or services to and by nonprofit charitable hospitals in this state, nonprofit nursing homes,
nonprofit rest homes and nonprofit residential care homes licensed by the state pursuant
to chapter 368v for the exclusive purposes of such institutions except any such service
transaction as described in subparagraph (EE) of subdivision (37) of subsection (a) of
section 12-407.
(B) Sales of tangible personal property by any organization that is exempt from
federal income tax under Section 501(a) of the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States, as from time to
time amended, and that the United States Treasury Department has expressly determined, by letter, to be an organization that is described in Section 501(c)(3) of said
internal revenue code, which sales are made on the premises of a hospital.
(C) Sales of tangible personal property or services to an acute care, for-profit hospital, operating as an acute care, for-profit hospital as of May 12, 2004, for the purposes
of such institution in connection with the constructing and equipping of any facility of
such hospital for which a certificate of need was filed before, and is pending on, May
12, 2004.
(6) Newspapers and magazines. Repealed by P.A. 03-2, S. 58, effective April
1, 2003.
(7) Cigarettes. Former subsection (g) repealed by P.A. 80-71, S. 21, 30.
(8) Organizations exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, as determined by the U.S. Treasury Department.
Exemption qualification requirements. Sales of tangible personal property or services
to any organization that is exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, and that the United States Treasury
Department has expressly determined, by letter, to be an organization that is described
in Section 501(c)(3) or (13) of said internal revenue code. At the time of the sale that
is exempt under this subsection, the organization shall, in order to qualify for said exemption, do one of the following: (A) Present to the retailer (i) a copy of the United States
Treasury Department determination letter that was issued to such organization and (ii)
a certificate, in such form as the commissioner may prescribe, certifying that a United
States Treasury Department determination letter has been issued to such organization
and has not been revoked and that the tangible personal property or services that are
being purchased from the retailer by such organization are to be used or consumed
exclusively for the purposes for which such organization was established or (B) present
to the retailer (i) a copy of the exemption permit that was issued pursuant to this subsection by the commissioner to such organization before July 1, 1995, after a determination
of eligibility by the commissioner and (ii) a certificate, in such form as the commissioner
may prescribe, certifying that an exemption permit was issued pursuant to this subsection
by the commissioner to such organization before July 1, 1995, and was not revoked and
that the tangible personal property or services that are being purchased from the retailer
by such organization are to be used or consumed exclusively for the purposes for which
the organization was established. The organization shall be liable for the tax otherwise
imposed if such tangible personal property or services are not used or consumed exclusively for the purposes for which the organization was established.
(9) Food products sold in educational institutions and certain health and care
facilities. Sales of food products, meals, candy, confectionery and beverages, except
alcoholic beverages, in a student cafeteria, dining-hall, dormitory, fraternity or sorority
maintained in a private, public or parochial school, college or university, to members
of such institutions or organizations, including all sales of such items to such members
at such institutions or organizations using prepaid meal plan cards or arrangements; and
sales of food products, meals, candy, confectionery and beverages to patients, residents
or care recipients in hospitals, residential care homes, assisted living facilities, senior
centers, day care centers, convalescent homes, nursing homes and rest homes.
(10) Exemption of children's clothing. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(11) Personal services. Professional, insurance or personal service transactions,
except any such service transaction described in subdivision (2) of subsection (a) of
section 12-407, which involve sales as inconsequential elements for which no separate
charges are made.
(12) Livestock, rabbits and poultry; feed; seeds and certain tree seedlings; fertilizer; plants; horses, except those racing at commercial race tracks. Repealed by
June Sp. Sess. P.A. 91-3, S. 166, 168.
(13) Food products. Sales of food products for human consumption. "Food products" include cereals and cereal products, milk and milk products, oleomargarine, meat
and meat products, fish and fish products, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices and salt, sugar and sugar products other
than candy and confectionery; coffee and coffee substitutes, tea, cocoa and cocoa products other than candy and confectionery. "Food products" do not include spirituous,
malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed
at bars and soda fountains, or in connection therewith, medicines except by prescription,
tonics and preparations in liquid, powdered, granular, tablet, capsule, lozenge and pill
form sold as dietary supplements or adjuncts. "Food products" also do not include meals
sold by an eating establishment or caterer. "Meal" means food products which are furnished, prepared or served in such a form and in such portions that they are ready for
immediate consumption. A meal as defined in this subsection includes food products
which are sold on a "take out" or "to go" basis and which are actually packaged or
wrapped. The sale of a meal, as defined in this subsection, is a taxable sale. "Eating
establishment" means a place where meals are sold and includes a restaurant, cafeteria,
grinder shop, pizzeria, drive-in, fast food outlet, ice cream truck, hot dog cart, refreshment stand, sandwich shop, private or social club, cocktail lounge, tavern, diner, snack
bar, or hotel or boarding house which furnishes both lodging and meals to its guests.
(14) Containers. (A) Nonreturnable containers and returnable dairy product containers when sold without the contents to persons who place the contents in the container
and sell the contents together with the container; (B) containers when sold with the
contents if the sales price of the contents is not required to be included in the measure
of the taxes imposed by this chapter; (C) returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling. As used
herein, "returnable containers" means containers of a kind customarily returned by the
buyer of the contents for reuse, but does not mean nonrefillable beverage containers,
as defined in subdivision (10) of section 22a-243. All other containers are "nonreturnable
containers". Nothing in this subsection shall be construed so as to tax the gross receipts
from the sale of or the storage, use or other consumption in this state of bags in which feed
for livestock and poultry, as defined in subdivision (12) of this section, is customarily
contained.
(15) Motor vehicle fuel. Sales of and the storage, use or other consumption in this
state of motor vehicle fuel (A) for use in any motor vehicle licensed or required to be
licensed to operate upon the public highways of this state, whether or not the tax imposed
under chapter 221 has been paid on such fuel, or (B) for any other use, if the tax imposed
under chapter 221 has been paid on such fuel and has not been refunded under the
provisions of chapter 221.
(16) Fuel for heating purposes. Sales of fuel used for heating purposes (i) in any
residential dwelling or (ii) in any building, location or premise utilized directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this subdivision (ii) shall only be allowed
with respect to a building, location or premise in which not less than seventy-five per
cent of the fuel used in such building, location or premise is used for the purpose of
such production, fabrication or manufacturing.
(17) Sale of meals. Former subsection (q) repealed by P.A. 83-18, S. 4, 5.
(18) Production materials. Sales of and the storage or use of materials, rope, fishing nets, tools and fuel or any substitute therefor, which become an ingredient or component part of tangible personal property to be sold or which are used directly in the fishing
industry or in an industrial plant in the actual fabrication of the finished product to be
sold. Sales of and the storage or use of materials, tools and fuel or any substitute therefor,
when such products are used directly in the furnishing of power to an industrial manufacturing plant or in the furnishing of gas, water, steam or electricity when delivered to
consumers through mains, lines or pipes.
(19) Oxygen, blood plasma, prostheses, custom-made wigs or hairpieces, hearing and vision aids, canes, crutches, walkers and wheel chairs, vital life support
equipment, apnea monitors, support hose and related repair or replacement parts
and repair services. Sales of and the storage, use or other consumption of (A) oxygen,
blood or blood plasma when sold for medical use in humans or animals; (B) artificial
devices individually designed, constructed or altered solely for the use of a particular
handicapped person so as to become a brace, support, supplement, correction or substitute for the bodily structure, including the extremities of the individual, and repair or
replacement parts and repair services rendered to property described in this subparagraph; (C) artificial limbs, artificial eyes and other equipment worn as a correction or
substitute for any functioning portion of the body, custom-made wigs or hairpieces for
persons with medically diagnosed total and permanent hair loss as a result of disease
or the treatment of disease, artificial hearing aids when designed to be worn on the
person of the owner or user, closed circuit television equipment used as a reading aid
by persons who are visually impaired and repair or replacement parts and repair services
rendered to property described in this subparagraph; (D) canes, crutches, walkers, wheel
chairs and inclined stairway chairlifts for the use of invalids and handicapped persons,
and repair or replacement parts and repair services to property described in this subparagraph; (E) any equipment used in support of or to supply vital life functions, including
oxygen supply equipment used for humans or animals, kidney dialysis machines and
any other such device used in necessary support of vital life functions, and apnea monitors, and repair or replacement parts and repair services rendered to property described
in this subparagraph; and (F) support hose that is specially designed to aid in the circulation of blood and is purchased by a person who has a medical need for such hose. Repair
or replacement parts are exempt whether purchased separately or in conjunction with the
item for which they are intended, and whether such parts continue the original function or
enhance the functionality of such item. As used in this subdivision, "repair services"
means services that are described in subparagraph (Q) or (CC) of subdivision (37) of
subsection (a) of section 12-407.
(20) Flyable aircraft. Sales of and the storage, use or other consumption, by a
manufacturer of aircraft located in this state, of flyable aircraft complete with necessary
equipment and modifications, but not separate engines and parts thereof, sold to persons
taking delivery and using such aircraft as certificated or licensed carriers of persons or
property in interstate or foreign commerce under authority of the laws of the United
States or any foreign government, or sold to any foreign government for use by such
government outside of this state, or sold to persons who are not residents of this state
and who will not use such aircraft in this state otherwise than in the removal of such
aircraft from this state.
(21) Personal property for incorporation into or use in waste treatment facilities. Sales of and the storage, use or other consumption of tangible personal property
acquired for incorporation into or used and consumed in the operation of facilities for
the treatment of industrial waste before the discharge thereof into any waters of the state
or into any sewerage system emptying into such waters, the primary purpose of which
is the reduction, control or elimination of pollution of such waters, certified as approved
for such purpose by the Commissioner of Environmental Protection. For the purposes
of this subdivision "industrial waste" means any harmful thermal effect or any liquid,
gaseous or solid substance or combination thereof resulting from any process of industry,
manufacture, trade or business or from the development or recovery of any natural
resource.
(22) Personal property incorporated into or consumed in air pollution control
facilities. Sales of and the storage, use or other consumption of tangible personal property or supplies acquired for incorporation into or used and consumed in the operation
of facilities, the primary purpose of which is the reduction, control or elimination of air
pollution, certified as approved for such purpose by the Commissioner of Environmental
Protection. Said commissioner may certify to a portion of such tangible personal property or supplies acquired for incorporation into such facilities to the extent that such
portion shall have as its primary purpose the reduction, control or elimination of air
pollution.
(23) United States and Connecticut state flags. Sales of United States and Connecticut state flags.
(24) Municipal publications, sales by public libraries or by municipal auction
and book sales by library support groups. Sales of municipal publications such as
information booklets and zoning regulations, tangible personal property sold by public
libraries, the sale of any property at auction by a municipality, and book sales by library
support groups.
(25) Unregistered motor vehicles in interstate commerce. Repealed by P.A. 95-359, S. 18, effective July 13, 1995.
(26) Items not costing more than twenty dollars each by certain nonprofit organizations and schools. Sales of items for not more than twenty dollars each by any
Connecticut eleemosynary organization, for purposes of youth activities which such
organization is formed to sponsor and support, and by any accredited elementary or
secondary school for purposes of such school or of organized activities of the students
enrolled therein.
(27) Vending machine sales of fifty cents or less. Meals sold through vending
machines or "honor boxes". (A) Sales of any items for fifty cents or less from vending
machines; or (B) notwithstanding the provisions of subdivision (13) of this section,
meals sold through coin-operated vending machines or at unattended "honor boxes".
(28) Ambulance-type motor vehicles. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(29) Personal property and services used or consumed in development, construction, rehabilitation, renovation, repair or operation of housing facilities for
low and moderate income families and persons. (A) Sales of and the storage, use or
other consumption of tangible personal property acquired for incorporation into or used
and consumed in the operation of housing facilities for low and moderate income families and persons and sales of and the acceptance, use or other consumption of any service
described in subdivision (2) of section 12-407 that is used and consumed in the development, construction, rehabilitation, renovation, repair or operation of housing facilities
for low and moderate income families and persons, provided such facilities are constructed under the sponsorship of and owned or operated by nonprofit housing organizations or housing authorities, as defined in subsection (b) of section 8-39. The nonprofit
housing organization or housing authority sponsoring the construction of or owning or
operating such housing facility shall obtain from the commissioner a letter of determination that the housing facility has, to the satisfaction of said commissioner, met all the
requirements for exemption under this subsection. At the time of any sale or purchase
that is exempt under this subsection, the purchaser shall present to the retailer a copy
of the determination letter that was issued to the nonprofit housing organization or
housing authority together with a certificate from the purchaser, in such form as the
commissioner may prescribe, certifying that the tangible personal property or services
that are being purchased from the retailer are to be used or consumed exclusively for
the purposes of incorporation into or in the development, construction, rehabilitation,
renovation, repair or operation of the housing facility identified in the letter of determination. For the purposes of this subsection, (i) "nonprofit housing organization" means
any organization which has as one of its purposes the development, construction, sponsorship or ownership of housing for low and moderate income families as stated in its
charter, if it is incorporated, or its constitution or bylaws, if it is unincorporated, and
which has received exemption from federal income tax under the provisions of Section
501(c) of the Internal Revenue Code, as amended from time to time, provided the charter
of such organization, if it is incorporated, or its constitution or bylaws, if unincorporated,
shall contain a provision that no officer, member or employee thereof shall receive or
at any future time may receive any pecuniary profit from the operation thereof, except
a reasonable compensation for services in effecting the purposes of the organization;
(ii) "housing facilities" means facilities having as their primary purpose the provision
of safe and adequate housing and related facilities for low and moderate income families
and persons, notwithstanding that said housing provides other dwelling accommodations in addition to the primary purpose of providing dwelling accommodations for low
and moderate income families; (iii) "related facilities" means those facilities defined in
subsection (d) of section 8-243; and (iv) "low and moderate income families" means
those families as defined in subsection (h) of said section 8-243.
(B) Sales of and the acceptance, use or other consumption of any service described
in subdivision (2) of section 12-407 that is used or consumed in the development, construction, renovation or operation of housing facilities for low and moderate income
families and persons, provided such facilities are owned or sponsored by a mutual housing association, as defined in subsection (b) of section 8-214f, and operated as mutual
housing by such association at a location that was conveyed to such association by the
United States Secretary of Housing and Urban Development prior to September 1, 1995.
(30) Commodities in the form traded on boards of trade and not converted to
use by purchaser. Sales and storage of any commodity in the form traded on any contract
market or other board of trade as defined in the Commodity Exchange Act, as amended,
provided this exemption shall not apply to any commodity subsequently converted to
use by a purchaser and in such event such purchaser shall be liable for the tax under
section 12-411 unless otherwise exempt under any of the provisions of this section.
(31) Printed material manufactured for purchaser in Connecticut to be delivered for use outside the state. Sales of any printed material which has been manufactured in Connecticut to the special order of a purchaser and which, within thirty days
following delivery to such purchaser, is to be delivered for use outside Connecticut,
provided such purchaser presents written certification to the seller when such material
is received by such purchaser that such material shall be delivered for use outside Connecticut within thirty days.
(32) Vessels sold in Connecticut by shipbuilder or marine dealer to be transported immediately for use out of state. Repealed by June Sp. Sess. P.A. 91-3, S. 166,
168 and June Sp. Sess. P.A. 91-14, S. 27, 30.
(33) Solar energy systems. Former subsection (gg) repealed by P.A. 84-507, S. 3, 4.
(34) Machinery used in manufacturing. Sales of and the storage, use or other
consumption of machinery used directly in a manufacturing production process. The
word "machinery" as used in this subsection means the basic machine itself, and includes
all of its component parts and contrivances, such as belts, pulleys, shafts, moving parts,
operating structures and equipment or devices, which component parts and contrivances
are used or required to control, regulate or operate the machinery or to enhance or alter
its productivity or functionality, whether such component parts and contrivances are
purchased separately or in conjunction with such machine and all replacement and repair
parts for the basic machine or for its component parts and contrivances, whether such
replacement or repair parts are purchased separately or in conjunction with such machine. For the purposes of this subsection, "machinery" includes machinery used exclusively to control or monitor an activity occurring during the manufacturing production
process and machinery used exclusively during the manufacturing production process
to test or measure materials and products being manufactured but shall not include office
equipment or data processing equipment other than numerically controlled machinery
used directly in the manufacturing process.
(35) Centers of service for elderly persons. Sales of tangible personal property
or services to any center of service for elderly persons as described in subdivision (d)
of section 17b-425.
(36) Motor vehicle driving service performed out of state. The sale of any motor
vehicle driving service to the extent of that proportionate part of gross receipts from
such service rendered which is directly related to actual driving performance outside
the state.
(37) Fuel for use in certain high-occupancy commuter vehicles. Sales of and the
storage, use or other consumption of any fuel with respect to which the tax imposed
under chapter 221 has been refunded under subdivision (11) of subsection (a) of section
12-459.
(38) Telephone equipment designed exclusively for deaf or blind persons. Sales
of and the storage, use or other consumption of any equipment designed exclusively for
use by persons who are deaf or blind for purposes of communication by telephone.
(39) Renewable energy systems or systems using cogeneration technology. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(40) Commercial fishing vessels and machinery or equipment for use thereon.
(A) Sales of and the storage, use or other consumption of any vessel exclusively for
use in commercial fishing and any machinery or equipment exclusively for use on a
commercial fishing vessel by a fisherman engaged in commercial fishing as a trade or
business and to whom the Department of Revenue Services has issued a fisherman tax
exemption permit, provided (i) for the immediately preceding taxable year, or (ii) on
average, for the two immediately preceding taxable years, not less than fifty per cent
of the gross income of the purchaser, as reported for federal income tax purposes, shall
have been derived from commercial fishing, subject to proof satisfactory to the Commissioner of Revenue Services.
(B) The commissioner shall adopt regulations, in accordance with the provisions
of chapter 54, requiring periodic registration for purposes of the issuance of fisherman
tax exemption permits, including (i) a procedure related to the application for such
permit, which application shall include a declaration, in a form prescribed by the commissioner and bearing notice to the effect that false statements made in such declaration
are punishable, to be signed by the applicant, and (ii) a form of notice concerning the
penalty for misuse of such permit.
(C) (i) The Commissioner of Revenue Services may issue a fisherman tax exemption permit to an applicant, provided such applicant has satisfied the commissioner that
the applicant intends to carry on commercial fishing as a trade or business for at least
two years, notwithstanding the fact that the applicant was not engaged in commercial
fishing as a trade or business in the immediately preceding taxable year or, if the applicant
was engaged in commercial fishing as a trade or business in such immediately preceding
taxable year, notwithstanding the fact that, for such immediately preceding taxable year,
or, on average, for the two immediately preceding taxable years, less than fifty per cent
of the gross income of the applicant, as reported for federal income tax purposes, was
derived from commercial fishing.
(ii) Such applicant shall be liable for the tax otherwise imposed, during the period
commencing upon the issuance of the permit and ending two years after the date of
issuance of the permit, if commercial fishing is not carried on as a trade or business by
such applicant during such entire period.
(iii) Such applicant shall also be liable for the tax otherwise imposed, during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit, if less than fifty per cent of the gross income of such applicant,
as reported for federal income tax purposes, shall have been derived from such commercial fishing for the immediately preceding taxable year, or, on average, for the two
immediately preceding taxable years.
(iv) Any applicant liable for tax under clause (ii) or (iii) of this subparagraph shall
not be eligible to be issued another permit under clause (i) of this subparagraph.
(D) The Commissioner of Revenue Services may issue a fisherman tax exemption
permit to an applicant, notwithstanding the fact that, in the applicant's immediately
preceding taxable year, less than fifty per cent of the gross income of the applicant, as
reported for federal income tax purposes, was derived from commercial fishing, provided (i) such applicant purchased, during the applicant's current or immediately preceding taxable year, a commercial fishing trade or business from a seller who was issued
a fisherman tax exemption permit by said commissioner at the time of such purchase,
and (ii) such commercial fishing shall be carried on as a trade or business by such
applicant during the period commencing upon the purchase and ending two years after
the date of purchase. Such applicant shall be liable for the tax otherwise imposed, during
the period commencing upon such purchase and ending two years after the date of
purchase, if such applicant does not carry on such commercial fishing as a trade or
business during the period commencing upon such purchase and ending two years after
the date of purchase.
(E) For purposes of this subdivision, "commercial fishing vessel" shall include any
vessel with a certificate of documentation issued by the United States Coast Guard for
coastwise fishery.
(41) Services to determine effect on human health of consumption or use of a
product or substance. Sales of services used to determine the probable consequences
in relation to human health of the consumption or other use of any product, substance
or element.
(42) Aircraft held for resale by certain air carriers and used for purposes other
than retention, demonstration or display. Repealed by P.A. 85-240, S. 5, 6.
(43) Replacement parts in enterprise zones. Sales of any replacement parts for
machinery to any business entity located in any enterprise zone designated pursuant to
section 32-70 for use within such zone.
(44) Certain motion picture, video, television and radio production and broadcast equipment. (A) Sales of and the storage, use or other consumption of any filmed
and taped television and radio programs and any materials which become an ingredient
or component part of films or tapes which are used directly in the production and transmission of finished programs (i) broadcast to the general public by a television or radio
station or (ii) used on or after October 1, 1986, for purposes of accredited medical or
surgical training, including any equipment used for such purpose; (B) sales of and the
storage, use, rental, lease or other consumption of any motion picture or video production
equipment or sound recording equipment purchased or leased for use in this state for
production activities which become an ingredient or component part of any master tapes,
records, video tapes or film produced for commercial entertainment, commercial advertising or commercial educational purposes; or (C) sales of and the storage, use, rental
or lease of equipment, including, but not limited to, antennas used directly in the production or broadcast of programs to the general public by a television or radio station.
(45) Gold or silver bullion, legal tender of any nation, rare and antique coins.
Sales of and the storage or use of rare or antique coins, gold or silver bullion and gold
or silver legal tender of any nation, traded according to its value as precious metal,
provided such exemption shall not be applicable with respect to any such sale, storage
or use in which the total value of such bullion or legal tender sold by the retailer is less
than one thousand dollars.
(46) Meals delivered to homes of persons who are elderly, disabled or otherwise
confined. Sales of home delivered meals to elderly, disabled and other homebound
persons.
(47) Articles of clothing or footwear costing under fifty dollars. Sales of any
article of clothing or footwear intended to be worn on or about the human body the cost
of which to the purchaser is less than fifty dollars. For purposes of this subdivision
clothing or footwear shall not include (A) any special clothing or footwear primarily
designed for athletic activity or protective use that is not normally worn except when
used for the athletic activity or protective use for which it was designed, and (B) jewelry,
handbags, luggage, umbrellas, wallets, watches and similar items carried on or about
the human body but not worn on the body in the manner characteristic of clothing
intended for exemption under this subdivision.
(48) Nonprescription drugs and medicines. Sales of the following drugs or medicines available for purchase without prescription for use in or on the body: Vitamin or
mineral concentrates; dietary supplements; natural or herbal drugs or medicines; products intended to be taken for coughs, colds, asthma or allergies; antihistamines; laxatives;
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral and antifungal
medicines; antiseptics; astringents; anesthetics; steroidal medicines; anthelmintics;
emetics and antiemetics; antacids; and any medication prepared to be used in the eyes,
ears or nose, excluding cosmetics, dentifrices, mouthwash, shaving and hair care products, soaps and deodorants.
(49) Property tax payments under motor vehicle leases. Any payment made by
a lessee of a motor vehicle to a lessor for the purpose of paying the property taxes on
any such vehicle under a lease which is otherwise subject to the taxes imposed by this
chapter if such lease requires the lessee to pay such property taxes and if a separate
statement of the amount of any such property tax payment is contained in such lease or
in any bill rendered pursuant to such lease.
(50) Lease or rental of any motion picture film for display by theater owner
or operator. The leasing or rental of any motion picture film by the owner or operator
of a motion picture theater for purposes of display at such theater.
(51) Any meal the cost of which is less than two dollars. Repealed by P.A. 89-251, S. 202, 203.
(52) Cloth or fabric purchased for noncommercial sewing. Any sale of cloth or
fabric for purposes of noncommercial sewing, made of natural or synthetic fibers and
of such composition, weight and texture as to be used commonly in clothing, and including in addition to such cloth or fabric, any items necessary in such sewing which become
a component part of the clothing so made.
(53) Disposable pads used for incontinency. Sales of certain disposable pads prepared for use in the manner of a diaper or as an underpad, and commonly used by persons
who are incontinent.
(54) Test strips and tablets, lancets and glucose monitoring equipment used in
care of diabetes and associated repair or replacement parts. Sales of test strips and
tablets, lancets and glucose monitoring equipment for purposes of certain tests and
monitoring required in the care of diabetes and repair or replacement parts for such
equipment, whether such repair or replacements parts are purchased separately or in
conjunction with the sale of such equipment, and whether such parts continue the original
function or enhance the functionality of such equipment.
(55) Certain personal property used in burial or cremation. Sales of (A) tangible
personal property by any funeral establishment performing the primary services in preparation for and the conduct of burial or cremation, provided any such property must be
used directly in the performance of such services and the total amount of such exempt
sales with respect to any single funeral may not exceed two thousand five hundred
dollars, or (B) caskets used for burial or cremation.
(56) Sales of certain items by nursing homes, rest homes, residential care
homes, convalescent homes or adult day care centers. Sales of items for not more
than one hundred dollars each by any nursing home, rest home, residential care home,
convalescent home or any adult day care center approved for such purpose by the Commissioner of Social Services, provided (1) such sales are made through a gift shop located
in such home or center and (2) any profits from such sales are retained by such home
or center for the benefit of the patients, in the case of any such home, or persons using
any such adult day care center.
(57) Items purchased with federal food stamp coupons. Sales of any items purchased with federal food stamp coupons, subject to the provisions of section 12-412e.
(58) Services related to personnel, management or research when company
rendering service and recipient are participating in a joint venture for purposes
of research and new product development. Sales of any services rendered for purposes
of (A) personnel services, (B) commercial or industrial marketing, development, testing
or research services, or (C) business analysis and management services, whenever, pursuant to a joint venture agreement, the recipient of any such services is either a corporation, a partnership, or a limited liability company, and such services are rendered by
one or more corporate shareholders, or a corporate partner or corporate member in such
joint venture, and in accordance with which the company rendering such service must
have an ownership interest equivalent to not less than twenty-five per cent of total ownership in such joint venture, provided (i) the purpose of such joint venture is directly
related to production or development of new or experimental products or systems and
the marketing and support thereof, (ii) at least one of the corporations participating in
such joint venture shall have been actively engaged in business in this state for not less
than ten years, and (iii) exemption for such sales in accordance with this subsection,
with respect to any single joint venture, shall not be allowed for a period in excess of
twenty consecutive years from the date of such venture's incorporation, formation or
organization, or in the case of a joint venture in existence prior to January 1, 1986,
within the aircraft industry, for a period in excess of thirty consecutive years, and such
exemption shall be applicable to sales of such services rendered on or after January
1, 1986.
(59) Aviation fuel used exclusively and directly in the experimental testing of
any product. Sales of and the storage, use or other consumption of any aviation fuel
used exclusively and directly in the experimental testing of any product.
(60) Motor vehicle or vessel purchased but not registered in this state by a
person who is not a resident of this state. The sale of any motor vehicle or vessel, as
defined in section 15-127, in this state when the purchaser of such motor vehicle or
vessel is not a resident of this state and does not maintain a permanent place of abode
in this state, provided such motor vehicle or vessel is not presented for registration with
the Department of Motor Vehicles in this state and such purchaser submits a declaration,
prescribed as to form by the commissioner and bearing notice to the effect that false
statements made in such declaration are punishable, or other evidence as may be requested by the Commissioner of Revenue Services concerning such purchaser's residency or place of abode.
(61) Ambulances. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(62) Services rendered between parent companies and wholly-owned subsidiaries. (A) Sales of any of the services enumerated in subpragraph (I), (K) or (L) of
subdivision (2) of subsection (a) of section 12-407 that are rendered for a business entity
affiliated with the business entity rendering such service in such manner that (i) either
business entity in such transaction owns a controlling interest in the other business entity,
or (ii) a controlling interest in each business entity in such transaction is owned by the
same person or persons or business entity or business entities.
(B) For purposes of this subdivision, (i) "business entity" means a corporation, trust,
estate, partnership, limited partnership, limited liability partnership, limited liability
company, single member limited liability company, sole proprietorship, nonstock corporation or a federally-recognized Indian tribe; (ii) "controlling interest" means, in the
case of a business entity that is a corporation, ownership of stock possessing one hundred
per cent of the total combined voting power of all classes of stock entitled to vote or
one hundred per cent of the total value of shares of all classes of stock of such corporation;
in the case of a business entity that is a trust or estate, ownership of a beneficial interest
of one hundred per cent in such trust or estate; in the case of a business entity that is a
partnership, limited partnership or limited liability partnership, ownership of one hundred per cent of the profits interest or capital interest in such partnership, limited partnership or limited liability partnership; in the case of a limited liability company with more
than one member, ownership of one hundred per cent of the profits interest, capital
interest or membership interests in such limited liability company; in the case of a business entity that is a sole proprietorship or single member limited liability company,
ownership of such sole proprietorship or single member limited liability company; in
the case of a business entity that is a nonstock corporation with voting members, control
of one hundred per cent of all voting membership interests in such corporation; and in
the case of a business entity that is a nonstock corporation with no voting members,
control of one hundred per cent of the board of directors of such corporation; (iii) whether
a controlling interest in a business entity is owned shall be determined in accordance
with Section 267 of the Internal Revenue Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as from time to time amended, provided
where a controlling interest is owned in a business entity other than a stock corporation,
the term "stock" as used in said Section 267 of the Internal Revenue Code means, in
the case of a partnership, limited partnership, limited liability partnership or limited
liability company treated as a partnership for federal income tax purposes, the profits
interest or capital interest in such partnership, in the case of a business entity that is a
trust or estate, the beneficial interests in such trust or estate, and in the case of a business
entity that is a nonstock corporation, the voting membership interests in such corporation, or if it has no voting members, the control of the board of directors; (iv) a business
entity has "control of" the board of directors of a nonstock corporation if one hundred
per cent of the voting members of the board of directors are either representatives of,
including ex-officio directors, or persons appointed by such business entity, or "control
of" one hundred per cent of the voting membership interests in a nonstock corporation
if one hundred per cent of the voting membership interests are held by the business
entity or by representatives of, including ex-officio members, or persons appointed by
such business entity.
(63) Items sold for use in agricultural production by a farmer engaged in such
production as a business. (A) Sales of and the storage, use or other consumption of
tangible personal property exclusively for use in agricultural production, as defined in
this subsection, by a farmer engaged in agricultural production as a trade or business
and to whom the Department of Revenue Services has issued a farmer tax exemption
permit, provided such farmer's gross income from such agricultural production, as reported for federal income tax purposes, shall have been (i) not less than two thousand
five hundred dollars for the immediately preceding taxable year, or (ii) on average, not
less than two thousand five hundred dollars for the two immediately preceding taxable
years.
(B) The Commissioner of Revenue Services shall adopt regulations in accordance
with chapter 54 requiring periodic registration for purposes of the issuance of farmer
tax exemption permits, including (i) a procedure related to the application for such
permit, such application to include a declaration, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made
in such declaration are punishable, to be signed by the applicant, and (ii) a form of notice
concerning the penalty for misuse of such permit.
(C) As used in this subsection, (i) "agricultural production" means engaging, as a
trade or business, in (I) the raising and harvesting of any agricultural or horticultural
commodity, (II) dairy farming, (III) forestry, (IV) the raising, feeding, caring for, shearing, training or management of livestock, including horses, bees, poultry, fur-bearing
animals or wildlife or (V) the raising and harvesting of fish, oysters, clams, mussels or
other molluscan shellfish; and (ii) "farmer" means any person engaged in agricultural
production as a trade or business.
(D) The Department of Revenue Services may issue a farmer tax exemption permit
to a farmer, notwithstanding the fact that, in the farmer's immediately preceding taxable
year, such farmer's gross income from agricultural production engaged in as a trade or
business may have been less than two thousand five hundred dollars, provided (i) such
farmer purchased, during such farmer's current or immediately preceding taxable year,
an agricultural trade or business from a seller who was issued a farmer tax exemption
permit by such department at the time of such purchase and (ii) such agricultural production shall be carried on as a trade or business by such purchaser during the period commencing upon the purchase and ending two years after the date of purchase. Such purchaser shall be liable for the tax otherwise imposed, during the period commencing
upon such purchase and ending two years after the date of purchase, if such agricultural
production is not carried on as a trade or business by such purchaser during the period
commencing upon such purchase and ending two years after the date of purchase.
(E) (i) The Department of Revenue Services, under such regulations as the Commissioner of Revenue Services may adopt in accordance with the provisions of chapter
54, may issue a farmer tax exemption permit to an applicant, provided such applicant
has satisfied the commissioner that the applicant intends to carry on agricultural production as a trade or business for at least two years, notwithstanding the fact that the applicant
was not engaged in agricultural production as a trade or business in the immediately
preceding taxable year or, if the applicant was engaged in agricultural production as a
trade or business in the immediately preceding taxable year, notwithstanding the fact
that the applicant's gross income from such agricultural production, as reported for
federal income tax purposes, was less than two thousand five hundred dollars for the
immediately preceding taxable year or, on average, less than two thousand five hundred
dollars for the two immediately preceding taxable years.
(ii) Such applicant shall be liable for the tax imposed under this chapter during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit if agricultural production is not carried on as a trade or business
by such applicant during such entire period.
(iii) Such applicant shall also be liable for the tax otherwise imposed, during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit, if (I) such applicant's gross income from such agricultural
production, as reported for federal income tax purposes, is less than two thousand five
hundred dollars for the immediately preceding taxable year or, on average, less than
two thousand five hundred dollars for the two immediately preceding taxable years, and
(II) such applicant's expenses from such agricultural production, as reported for federal
income tax purposes, are less than two thousand five hundred dollars for the immediately
preceding taxable year or, on average, less than two thousand five hundred dollars for
the two immediately preceding taxable years.
(iv) Any applicant liable for tax under clause (ii) or (iii) of this subparagraph shall
not be eligible to be issued another permit under clause (i) of this subparagraph.
(64) Computer-related cleaning equipment. Sales of and the storage, use or other
consumption of equipment used directly in the production and cleaning of computer
discs for purposes of creating and maintaining the atmospheric environment necessary
in the area immediately surrounding such production and cleaning process, including
with respect to such area, climate control, air quality and a positive pressure mode
adapted to the particular climate and air quality requirements of such production and
cleaning process.
(65) Molds, dies, patterns and sand handling equipment for metal casting
foundries. The purchase and sale by metal casting foundries of molds, dies, patterns
and sand handling equipment.
(66) Molds, dies and patterns for pattern shops and metal casting foundries.
The sale by pattern shops of molds, dies and patterns to metal casting foundries or their
customers for use in such foundries, and the purchase and use of such items by pattern
shops in connection with any such sales.
(67) New motor vehicles exclusively powered by clean alternative fuels. Sales
of and the storage, use or other consumption, prior to July 1, 2008, of a new motor vehicle
which is exclusively powered by a clean alternative fuel. As used in this subdivision and
subdivisions (68) and (69) of this section, "clean alternative fuel" shall mean natural
gas, hydrogen or electricity when used as a motor vehicle fuel or propane when used
as a motor vehicle fuel if such a vehicle meets the federal fleet emissions standards
under the federal Clean Air Act or any emissions standards adopted by the Commissioner
of Environmental Protection as part of the state's implementation plan under said act.
(68) Conversion equipment associated with converting vehicles to exclusive
use of clean alternative fuels or dual use of such fuel and any other fuel. Sales of
and the storage, use or other consumption, prior to July 1, 2008, of conversion equipment
incorporated into or used in converting vehicles powered by any other fuel to either
exclusive use of a clean alternative fuel or dual use of any other fuel and a clean alternative fuel, including, but not limited to, storage cylinders, cylinder brackets, regulated
mixers, fill valves, pressure regulators, solenoid valves, fuel gauges, electronic ignitions
and alternative fuel delivery lines.
(69) Equipment associated with compressed natural gas filling or electric recharging station. Sales of and the storage, use or other consumption, prior to July 1,
2008, of equipment incorporated into or used in a compressed natural gas or hydrogen
filling or electric recharging station for vehicles powered by a clean alternative fuel,
including, but not limited to, compressors, storage cylinders, associated framing, tubing
and fittings, valves, fuel poles and fuel delivery lines used for clean alternative fuel
storage and filling facilities.
(70) Commercial trucks, truck tractors, tractors and semitrailers and vehicles
used in combination therewith. (A) Sales of and the storage, use or other consumption
of commercial trucks, truck tractors, tractors and semitrailers, and vehicles used in combination therewith, which (i) have a gross vehicle weight rating in excess of twenty-six
thousand pounds or (ii) are operated actively and exclusively during the period commencing upon its purchase and ending one year after the date of purchase for the carriage
of interstate freight pursuant to a certificate or permit issued by the Interstate Commerce
Commission or its successor agency. As used in this subsection, "gross vehicle weight
rating" means the value specified by the manufacturer as the loaded weight of the single
or combination vehicle and, if the manufacturer has not specified a value for a towed
vehicle, means the value specified for the towing vehicle plus the loaded weight of the
towed unit.
(B) Each purchaser of a commercial truck, truck tractor, tractor or semitrailer or
vehicle used in combination therewith exempt from tax pursuant to the provisions of
subparagraph (A)(ii) of this subsection shall, in order to qualify for said exemption,
present to the retailer (i) a copy of the certificate or permit that was issued by the Interstate
Commerce Commission or its successor agency to the purchaser and (ii) a certificate,
in such form as the commissioner may prescribe, certifying that such commercial truck,
truck tractor, tractor or semitrailer or vehicle used in combination therewith will be
operated actively and exclusively for the carriage of interstate freight. The purchaser
shall be liable for the tax otherwise imposed if, during the period commencing upon its
purchase and ending one year after the date of purchase, such commercial truck, truck
tractor, tractor or semitrailer or vehicle used in combination therewith is not operated
actively and exclusively for the carriage of interstate freight.
(71) Machinery, equipment, tools, materials and supplies used in commercial
printing. Sales of and the storage, use or other consumption of machinery, equipment,
tools, materials and supplies used predominantly in the production of printed material
by a commercial printer or publisher. For purposes of this subsection, "the production
of printed material" is defined to include all processes necessary to convert manuscript
copy into printed material, including but not limited to, layout, color separation and
typesetting.
(72) Machinery, equipment, tools, materials and supplies for typesetting, color
separation, finished copy, or similar products. Sales of and the storage, use or other
consumption of machinery, equipment, tools, materials and supplies used predominantly in the production of typesetting, color separation, finished copy with type proofs
and artwork or similar content mounted for photomechanical reproduction, or other
similar products to be sold for use in the production of printed materials.
(73) Component parts for assembly of manufacturing machinery. The sale of
any part of a machine purchased exclusively for the purpose of assembling a machine
for use directly in a manufacturing production process, provided the purchaser submits
a certified statement at the time of such purchase, on a form prepared by the Commissioner of Revenue Services, certifying that such part is purchased exclusively for use
in a machine to be assembled by the purchaser, or someone acting on behalf of the
purchaser, and that such machine shall be used directly in a manufacturing production
process. The purchaser shall prepare a record of the use of such part which shall be
maintained by the purchaser for a period of not less than three years following the date
of purchase.
(74) Certain sales of computer and data processing services. (A) Sales of computer and data processing services rendered to a customer (i) by a retailer which, on or
after July 1, 1991, acquired the operations of a data processing facility from the customer,
provided such customer operated the facility for its own use or (ii) by a retailer which,
on or after July 1, 1993, acquired the operations of the data processing facility from the
retailer described in subparagraph (A)(i) of this subsection, provided such customer
formerly operated the facility for its own use. (B) Sales of computer and data processing
services rendered to a customer by a retailer which, on or after July 1, 1995, acquired
the data processing operations from the customer, provided such customer formerly
conducted such data processing operations for its own use. Sales of and the storage, use
or other consumption of computers or data processing equipment, when sold to the
retailer described in this subparagraph and used by such retailer to provide the services
described in this subparagraph. The provisions in this subparagraph shall not apply if
the retailer is a related person, as defined in section 12-217w, with respect to the customer
or the customer is a related person, as defined therein, with respect to the retailer.
(75) Aviation fuel. Sales of and the storage, use or other consumption of aviation
fuel used exclusively for aviation purposes.
(76) Aircraft repair or replacement parts. Sales of and the storage, use or other
consumption of repair or replacement parts exclusively for use (A) in aircraft, or (B) in
the significant overhauling or rebuilding of aircraft or aircraft parts or components on
a factory basis.
(77) Aircraft repair services. Sales of aircraft repair services when such services
are rendered in connection with (A) aircraft, or (B) the significant overhauling or rebuilding of aircraft or aircraft parts or components on a factory basis.
(78) Materials, tools, fuel, machinery and equipment in an aircraft manufacturing facility. On or after July 1, 1993, sales of and the storage, use or other consumption by an aircraft manufacturer operating an aircraft manufacturing fa
Sec. 12-412. Exemptions. Taxes imposed by this chapter shall not apply to the
gross receipts from the sale of and the storage, use or other consumption in this state
with respect to the following items:
(1) The United States, the state or subdivisions. (A) Sales of tangible personal
property or services to the United States, the state of Connecticut or any of the political
subdivisions thereof, or its or their respective agencies; (B) sales of tangible personal
property or services used to develop property which the state of Connecticut is under
contract to purchase through a long-term financing contract; (C) sales and use of any
services or tangible personal property to be incorporated into or used or otherwise consumed in (i) the demolition, remediation or preparation of the Adriaen's Landing site
and the stadium facility site for purposes of the overall project, each as defined in section
32-651, (ii) the construction of the convention center, the Connecticut Center for Science
and Exploration, the stadium facility and the related parking facilities and site preparation and infrastructure improvements, each as defined in section 32-651, or (iii) the
construction of any future capital improvement to the convention center, the stadium
facility or the related parking facilities.
(2) Federal exemptions. Sales of tangible personal property or services which this
state is prohibited from taxing under the Constitution or laws of the United States.
(3) Certain utilities. (A) Gas and electricity for residential use and certain
manufacturing or agricultural production. The sale, furnishing or service of gas,
including bottled gas, and electricity when delivered to consumers through mains, lines,
pipes or bottles for use (i) in any residential dwelling or (ii) directly in agricultural
production, fabrication of a finished product to be sold or an industrial manufacturing
plant, provided the exemption under this subdivision (ii) shall only be allowed with
respect to a metered building, location or premise at which not less than seventy-five per
cent of the gas, including bottled gas, or electricity consumed at such metered building,
location or premise is used for the purpose of such production, fabrication or manufacturing. Bottled gas as used in this subsection means L.P. (propane) gas.
(B) Telephone and cable television service prior to January 1, 1990. The sale
or furnishing of telephone service and community antenna television and cable service,
provided the exemption for services described in this subparagraph shall not be applicable to any such service rendered on or after January 1, 1990.
(C) Water, steam and telegraph. The sale, furnishing or service of water, steam
and telegraph when delivered to consumers through mains, lines, pipes or bottles.
(D) Monthly charges of one hundred fifty dollars or less for electricity not
otherwise exempt. The sale or furnishing of electricity, not subject to the exemption
under subparagraph (A) of this subsection, with respect to that portion of the charges
applicable to such electricity for any month of service which is not in excess of one
hundred fifty dollars.
(E) Gas, water, steam or electricity used in furnishing same to consumers. The
sale, furnishing or service of gas, water, steam or electricity for use directly in the furnishing of gas, water, steam or electricity delivered to consumers through mains, lines or
pipes.
(4) Prescription medicine, syringes and needles. Sales of and the storage, use or
other consumption of medicine only by prescription as defined by federal or state law,
including such medicine provided for no consideration and the sales of syringes and
needles only by prescription. Sales of and the storage, use or other consumption of
materials, including materials used in packaging, which become an ingredient or component part of medicine only by prescription, as defined by federal or state law.
(5) Nonprofit charitable hospitals, nursing homes, rest homes, residential care
homes and acute care for-profit hospitals. (A) Sales of tangible personal property
or services to and by nonprofit charitable hospitals in this state, nonprofit nursing homes,
nonprofit rest homes and nonprofit residential care homes licensed by the state pursuant
to chapter 368v for the exclusive purposes of such institutions except any such service
transaction as described in subparagraph (EE) of subdivision (37) of subsection (a) of
section 12-407.
(B) Sales of tangible personal property by any organization that is exempt from
federal income tax under Section 501(a) of the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United States, as from time to
time amended, and that the United States Treasury Department has expressly determined, by letter, to be an organization that is described in Section 501(c)(3) of said
internal revenue code, which sales are made on the premises of a hospital.
(C) Sales of tangible personal property or services to an acute care, for-profit hospital, operating as an acute care, for-profit hospital as of May 12, 2004, for the purposes
of such institution in connection with the constructing and equipping of any facility of
such hospital for which a certificate of need was filed before, and is pending on, May
12, 2004.
(6) Newspapers and magazines. Repealed by P.A. 03-2, S. 58, effective April
1, 2003.
(7) Cigarettes. Former subsection (g) repealed by P.A. 80-71, S. 21, 30.
(8) Organizations exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, as determined by the U.S. Treasury Department.
Exemption qualification requirements. Sales of tangible personal property or services
to any organization that is exempt from federal income tax under Section 501(a) of the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, and that the United States Treasury
Department has expressly determined, by letter, to be an organization that is described
in Section 501(c)(3) or (13) of said internal revenue code. At the time of the sale that
is exempt under this subsection, the organization shall, in order to qualify for said exemption, do one of the following: (A) Present to the retailer (i) a copy of the United States
Treasury Department determination letter that was issued to such organization and (ii)
a certificate, in such form as the commissioner may prescribe, certifying that a United
States Treasury Department determination letter has been issued to such organization
and has not been revoked and that the tangible personal property or services that are
being purchased from the retailer by such organization are to be used or consumed
exclusively for the purposes for which such organization was established or (B) present
to the retailer (i) a copy of the exemption permit that was issued pursuant to this subsection by the commissioner to such organization before July 1, 1995, after a determination
of eligibility by the commissioner and (ii) a certificate, in such form as the commissioner
may prescribe, certifying that an exemption permit was issued pursuant to this subsection
by the commissioner to such organization before July 1, 1995, and was not revoked and
that the tangible personal property or services that are being purchased from the retailer
by such organization are to be used or consumed exclusively for the purposes for which
the organization was established. The organization shall be liable for the tax otherwise
imposed if such tangible personal property or services are not used or consumed exclusively for the purposes for which the organization was established.
(9) Food products sold in educational institutions and certain health and care
facilities. Sales of food products, meals, candy, confectionery and beverages, except
alcoholic beverages, in a student cafeteria, dining-hall, dormitory, fraternity or sorority
maintained in a private, public or parochial school, college or university, to members
of such institutions or organizations, including all sales of such items to such members
at such institutions or organizations using prepaid meal plan cards or arrangements; and
sales of food products, meals, candy, confectionery and beverages to patients, residents
or care recipients in hospitals, residential care homes, assisted living facilities, senior
centers, day care centers, convalescent homes, nursing homes and rest homes.
(10) Exemption of children's clothing. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(11) Personal services. Professional, insurance or personal service transactions,
except any such service transaction described in subdivision (2) of subsection (a) of
section 12-407, which involve sales as inconsequential elements for which no separate
charges are made.
(12) Livestock, rabbits and poultry; feed; seeds and certain tree seedlings; fertilizer; plants; horses, except those racing at commercial race tracks. Repealed by
June Sp. Sess. P.A. 91-3, S. 166, 168.
(13) Food products. Sales of food products for human consumption. "Food products" include cereals and cereal products, milk and milk products, oleomargarine, meat
and meat products, fish and fish products, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices and salt, sugar and sugar products other
than candy and confectionery; coffee and coffee substitutes, tea, cocoa and cocoa products other than candy and confectionery. "Food products" do not include spirituous,
malt or vinous liquors, soft drinks, sodas or beverages such as are ordinarily dispensed
at bars and soda fountains, or in connection therewith, medicines except by prescription,
tonics and preparations in liquid, powdered, granular, tablet, capsule, lozenge and pill
form sold as dietary supplements or adjuncts. "Food products" also do not include meals
sold by an eating establishment or caterer. "Meal" means food products which are furnished, prepared or served in such a form and in such portions that they are ready for
immediate consumption. A meal as defined in this subsection includes food products
which are sold on a "take out" or "to go" basis and which are actually packaged or
wrapped. The sale of a meal, as defined in this subsection, is a taxable sale. "Eating
establishment" means a place where meals are sold and includes a restaurant, cafeteria,
grinder shop, pizzeria, drive-in, fast food outlet, ice cream truck, hot dog cart, refreshment stand, sandwich shop, private or social club, cocktail lounge, tavern, diner, snack
bar, or hotel or boarding house which furnishes both lodging and meals to its guests.
(14) Containers. (A) Nonreturnable containers and returnable dairy product containers when sold without the contents to persons who place the contents in the container
and sell the contents together with the container; (B) containers when sold with the
contents if the sales price of the contents is not required to be included in the measure
of the taxes imposed by this chapter; (C) returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling. As used
herein, "returnable containers" means containers of a kind customarily returned by the
buyer of the contents for reuse, but does not mean nonrefillable beverage containers,
as defined in subdivision (10) of section 22a-243. All other containers are "nonreturnable
containers". Nothing in this subsection shall be construed so as to tax the gross receipts
from the sale of or the storage, use or other consumption in this state of bags in which feed
for livestock and poultry, as defined in subdivision (12) of this section, is customarily
contained.
(15) Motor vehicle fuel. Sales of and the storage, use or other consumption in this
state of motor vehicle fuel (A) for use in any motor vehicle licensed or required to be
licensed to operate upon the public highways of this state, whether or not the tax imposed
under chapter 221 has been paid on such fuel, or (B) for any other use, if the tax imposed
under chapter 221 has been paid on such fuel and has not been refunded under the
provisions of chapter 221.
(16) Fuel for heating purposes. Sales of fuel used for heating purposes (i) in any
residential dwelling or (ii) in any building, location or premise utilized directly in agricultural production, fabrication of a finished product to be sold or an industrial manufacturing plant, provided the exemption under this subdivision (ii) shall only be allowed
with respect to a building, location or premise in which not less than seventy-five per
cent of the fuel used in such building, location or premise is used for the purpose of
such production, fabrication or manufacturing.
(17) Sale of meals. Former subsection (q) repealed by P.A. 83-18, S. 4, 5.
(18) Production materials. Sales of and the storage or use of materials, rope, fishing nets, tools and fuel or any substitute therefor, which become an ingredient or component part of tangible personal property to be sold or which are used directly in the fishing
industry or in an industrial plant in the actual fabrication of the finished product to be
sold. Sales of and the storage or use of materials, tools and fuel or any substitute therefor,
when such products are used directly in the furnishing of power to an industrial manufacturing plant or in the furnishing of gas, water, steam or electricity when delivered to
consumers through mains, lines or pipes.
(19) Oxygen, blood plasma, prostheses, custom-made wigs or hairpieces, hearing and vision aids, canes, crutches, walkers and wheel chairs, vital life support
equipment, apnea monitors, support hose and related repair or replacement parts
and repair services. Sales of and the storage, use or other consumption of (A) oxygen,
blood or blood plasma when sold for medical use in humans or animals; (B) artificial
devices individually designed, constructed or altered solely for the use of a particular
handicapped person so as to become a brace, support, supplement, correction or substitute for the bodily structure, including the extremities of the individual, and repair or
replacement parts and repair services rendered to property described in this subparagraph; (C) artificial limbs, artificial eyes and other equipment worn as a correction or
substitute for any functioning portion of the body, custom-made wigs or hairpieces for
persons with medically diagnosed total and permanent hair loss as a result of disease
or the treatment of disease, artificial hearing aids when designed to be worn on the
person of the owner or user, closed circuit television equipment used as a reading aid
by persons who are visually impaired and repair or replacement parts and repair services
rendered to property described in this subparagraph; (D) canes, crutches, walkers, wheel
chairs and inclined stairway chairlifts for the use of invalids and handicapped persons,
and repair or replacement parts and repair services to property described in this subparagraph; (E) any equipment used in support of or to supply vital life functions, including
oxygen supply equipment used for humans or animals, kidney dialysis machines and
any other such device used in necessary support of vital life functions, and apnea monitors, and repair or replacement parts and repair services rendered to property described
in this subparagraph; and (F) support hose that is specially designed to aid in the circulation of blood and is purchased by a person who has a medical need for such hose. Repair
or replacement parts are exempt whether purchased separately or in conjunction with the
item for which they are intended, and whether such parts continue the original function or
enhance the functionality of such item. As used in this subdivision, "repair services"
means services that are described in subparagraph (Q) or (CC) of subdivision (37) of
subsection (a) of section 12-407.
(20) Flyable aircraft. Sales of and the storage, use or other consumption, by a
manufacturer of aircraft located in this state, of flyable aircraft complete with necessary
equipment and modifications, but not separate engines and parts thereof, sold to persons
taking delivery and using such aircraft as certificated or licensed carriers of persons or
property in interstate or foreign commerce under authority of the laws of the United
States or any foreign government, or sold to any foreign government for use by such
government outside of this state, or sold to persons who are not residents of this state
and who will not use such aircraft in this state otherwise than in the removal of such
aircraft from this state.
(21) Personal property for incorporation into or use in waste treatment facilities. Sales of and the storage, use or other consumption of tangible personal property
acquired for incorporation into or used and consumed in the operation of facilities for
the treatment of industrial waste before the discharge thereof into any waters of the state
or into any sewerage system emptying into such waters, the primary purpose of which
is the reduction, control or elimination of pollution of such waters, certified as approved
for such purpose by the Commissioner of Environmental Protection. For the purposes
of this subdivision "industrial waste" means any harmful thermal effect or any liquid,
gaseous or solid substance or combination thereof resulting from any process of industry,
manufacture, trade or business or from the development or recovery of any natural
resource.
(22) Personal property incorporated into or consumed in air pollution control
facilities. Sales of and the storage, use or other consumption of tangible personal property or supplies acquired for incorporation into or used and consumed in the operation
of facilities, the primary purpose of which is the reduction, control or elimination of air
pollution, certified as approved for such purpose by the Commissioner of Environmental
Protection. Said commissioner may certify to a portion of such tangible personal property or supplies acquired for incorporation into such facilities to the extent that such
portion shall have as its primary purpose the reduction, control or elimination of air
pollution.
(23) United States and Connecticut state flags. Sales of United States and Connecticut state flags.
(24) Municipal publications, sales by public libraries or by municipal auction
and book sales by library support groups. Sales of municipal publications such as
information booklets and zoning regulations, tangible personal property sold by public
libraries, the sale of any property at auction by a municipality, and book sales by library
support groups.
(25) Unregistered motor vehicles in interstate commerce. Repealed by P.A. 95-359, S. 18, effective July 13, 1995.
(26) Items not costing more than twenty dollars each by certain nonprofit organizations and schools. Sales of items for not more than twenty dollars each by any
Connecticut eleemosynary organization, for purposes of youth activities which such
organization is formed to sponsor and support, and by any accredited elementary or
secondary school for purposes of such school or of organized activities of the students
enrolled therein.
(27) Vending machine sales of fifty cents or less. Meals sold through vending
machines or "honor boxes". (A) Sales of any items for fifty cents or less from vending
machines; or (B) notwithstanding the provisions of subdivision (13) of this section,
meals sold through coin-operated vending machines or at unattended "honor boxes".
(28) Ambulance-type motor vehicles. Repealed by June Sp. Sess. P.A. 91-3, S.
166, 168.
(29) Personal property and services used or consumed in development, construction, rehabilitation, renovation, repair or operation of housing facilities for
low and moderate income families and persons. (A) Sales of and the storage, use or
other consumption of tangible personal property acquired for incorporation into or used
and consumed in the operation of housing facilities for low and moderate income families and persons and sales of and the acceptance, use or other consumption of any service
described in subdivision (2) of section 12-407 that is used and consumed in the development, construction, rehabilitation, renovation, repair or operation of housing facilities
for low and moderate income families and persons, provided such facilities are constructed under the sponsorship of and owned or operated by nonprofit housing organizations or housing authorities, as defined in subsection (b) of section 8-39. The nonprofit
housing organization or housing authority sponsoring the construction of or owning or
operating such housing facility shall obtain from the commissioner a letter of determination that the housing facility has, to the satisfaction of said commissioner, met all the
requirements for exemption under this subsection. At the time of any sale or purchase
that is exempt under this subsection, the purchaser shall present to the retailer a copy
of the determination letter that was issued to the nonprofit housing organization or
housing authority together with a certificate from the purchaser, in such form as the
commissioner may prescribe, certifying that the tangible personal property or services
that are being purchased from the retailer are to be used or consumed exclusively for
the purposes of incorporation into or in the development, construction, rehabilitation,
renovation, repair or operation of the housing facility identified in the letter of determination. For the purposes of this subsection, (i) "nonprofit housing organization" means
any organization which has as one of its purposes the development, construction, sponsorship or ownership of housing for low and moderate income families as stated in its
charter, if it is incorporated, or its constitution or bylaws, if it is unincorporated, and
which has received exemption from federal income tax under the provisions of Section
501(c) of the Internal Revenue Code, as amended from time to time, provided the charter
of such organization, if it is incorporated, or its constitution or bylaws, if unincorporated,
shall contain a provision that no officer, member or employee thereof shall receive or
at any future time may receive any pecuniary profit from the operation thereof, except
a reasonable compensation for services in effecting the purposes of the organization;
(ii) "housing facilities" means facilities having as their primary purpose the provision
of safe and adequate housing and related facilities for low and moderate income families
and persons, notwithstanding that said housing provides other dwelling accommodations in addition to the primary purpose of providing dwelling accommodations for low
and moderate income families; (iii) "related facilities" means those facilities defined in
subsection (d) of section 8-243; and (iv) "low and moderate income families" means
those families as defined in subsection (h) of said section 8-243.
(B) Sales of and the acceptance, use or other consumption of any service described
in subdivision (2) of section 12-407 that is used or consumed in the development, construction, renovation or operation of housing facilities for low and moderate income
families and persons, provided such facilities are owned or sponsored by a mutual housing association, as defined in subsection (b) of section 8-214f, and operated as mutual
housing by such association at a location that was conveyed to such association by the
United States Secretary of Housing and Urban Development prior to September 1, 1995.
(30) Commodities in the form traded on boards of trade and not converted to
use by purchaser. Sales and storage of any commodity in the form traded on any contract
market or other board of trade as defined in the Commodity Exchange Act, as amended,
provided this exemption shall not apply to any commodity subsequently converted to
use by a purchaser and in such event such purchaser shall be liable for the tax under
section 12-411 unless otherwise exempt under any of the provisions of this section.
(31) Printed material manufactured for purchaser in Connecticut to be delivered for use outside the state. Sales of any printed material which has been manufactured in Connecticut to the special order of a purchaser and which, within thirty days
following delivery to such purchaser, is to be delivered for use outside Connecticut,
provided such purchaser presents written certification to the seller when such material
is received by such purchaser that such material shall be delivered for use outside Connecticut within thirty days.
(32) Vessels sold in Connecticut by shipbuilder or marine dealer to be transported immediately for use out of state. Repealed by June Sp. Sess. P.A. 91-3, S. 166,
168 and June Sp. Sess. P.A. 91-14, S. 27, 30.
(33) Solar energy systems. Former subsection (gg) repealed by P.A. 84-507, S. 3, 4.
(34) Machinery used in manufacturing. Sales of and the storage, use or other
consumption of machinery used directly in a manufacturing production process. The
word "machinery" as used in this subsection means the basic machine itself, and includes
all of its component parts and contrivances, such as belts, pulleys, shafts, moving parts,
operating structures and equipment or devices, which component parts and contrivances
are used or required to control, regulate or operate the machinery or to enhance or alter
its productivity or functionality, whether such component parts and contrivances are
purchased separately or in conjunction with such machine and all replacement and repair
parts for the basic machine or for its component parts and contrivances, whether such
replacement or repair parts are purchased separately or in conjunction with such machine. For the purposes of this subsection, "machinery" includes machinery used exclusively to control or monitor an activity occurring during the manufacturing production
process and machinery used exclusively during the manufacturing production process
to test or measure materials and products being manufactured but shall not include office
equipment or data processing equipment other than numerically controlled machinery
used directly in the manufacturing process.
(35) Centers of service for elderly persons. Sales of tangible personal property
or services to any center of service for elderly persons as described in subdivision (d)
of section 17b-425.
(36) Motor vehicle driving service performed out of state. The sale of any motor
vehicle driving service to the extent of that proportionate part of gross receipts from
such service rendered which is directly related to actual driving performance outside
the state.
(37) Fuel for use in certain high-occupancy commuter vehicles. Sales of and the
storage, use or other consumption of any fuel with respect to which the tax imposed
under chapter 221 has been refunded under subdivision (11) of subsection (a) of section
12-459.
(38) Telephone equipment designed exclusively for deaf or blind persons. Sales
of and the storage, use or other consumption of any equipment designed exclusively for
use by persons who are deaf or blind for purposes of communication by telephone.
(39) Renewable energy systems or systems using cogeneration technology. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(40) Commercial fishing vessels and machinery or equipment for use thereon.
(A) Sales of and the storage, use or other consumption of any vessel exclusively for
use in commercial fishing and any machinery or equipment exclusively for use on a
commercial fishing vessel by a fisherman engaged in commercial fishing as a trade or
business and to whom the Department of Revenue Services has issued a fisherman tax
exemption permit, provided (i) for the immediately preceding taxable year, or (ii) on
average, for the two immediately preceding taxable years, not less than fifty per cent
of the gross income of the purchaser, as reported for federal income tax purposes, shall
have been derived from commercial fishing, subject to proof satisfactory to the Commissioner of Revenue Services.
(B) The commissioner shall adopt regulations, in accordance with the provisions
of chapter 54, requiring periodic registration for purposes of the issuance of fisherman
tax exemption permits, including (i) a procedure related to the application for such
permit, which application shall include a declaration, in a form prescribed by the commissioner and bearing notice to the effect that false statements made in such declaration
are punishable, to be signed by the applicant, and (ii) a form of notice concerning the
penalty for misuse of such permit.
(C) (i) The Commissioner of Revenue Services may issue a fisherman tax exemption permit to an applicant, provided such applicant has satisfied the commissioner that
the applicant intends to carry on commercial fishing as a trade or business for at least
two years, notwithstanding the fact that the applicant was not engaged in commercial
fishing as a trade or business in the immediately preceding taxable year or, if the applicant
was engaged in commercial fishing as a trade or business in such immediately preceding
taxable year, notwithstanding the fact that, for such immediately preceding taxable year,
or, on average, for the two immediately preceding taxable years, less than fifty per cent
of the gross income of the applicant, as reported for federal income tax purposes, was
derived from commercial fishing.
(ii) Such applicant shall be liable for the tax otherwise imposed, during the period
commencing upon the issuance of the permit and ending two years after the date of
issuance of the permit, if commercial fishing is not carried on as a trade or business by
such applicant during such entire period.
(iii) Such applicant shall also be liable for the tax otherwise imposed, during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit, if less than fifty per cent of the gross income of such applicant,
as reported for federal income tax purposes, shall have been derived from such commercial fishing for the immediately preceding taxable year, or, on average, for the two
immediately preceding taxable years.
(iv) Any applicant liable for tax under clause (ii) or (iii) of this subparagraph shall
not be eligible to be issued another permit under clause (i) of this subparagraph.
(D) The Commissioner of Revenue Services may issue a fisherman tax exemption
permit to an applicant, notwithstanding the fact that, in the applicant's immediately
preceding taxable year, less than fifty per cent of the gross income of the applicant, as
reported for federal income tax purposes, was derived from commercial fishing, provided (i) such applicant purchased, during the applicant's current or immediately preceding taxable year, a commercial fishing trade or business from a seller who was issued
a fisherman tax exemption permit by said commissioner at the time of such purchase,
and (ii) such commercial fishing shall be carried on as a trade or business by such
applicant during the period commencing upon the purchase and ending two years after
the date of purchase. Such applicant shall be liable for the tax otherwise imposed, during
the period commencing upon such purchase and ending two years after the date of
purchase, if such applicant does not carry on such commercial fishing as a trade or
business during the period commencing upon such purchase and ending two years after
the date of purchase.
(E) For purposes of this subdivision, "commercial fishing vessel" shall include any
vessel with a certificate of documentation issued by the United States Coast Guard for
coastwise fishery.
(41) Services to determine effect on human health of consumption or use of a
product or substance. Sales of services used to determine the probable consequences
in relation to human health of the consumption or other use of any product, substance
or element.
(42) Aircraft held for resale by certain air carriers and used for purposes other
than retention, demonstration or display. Repealed by P.A. 85-240, S. 5, 6.
(43) Replacement parts in enterprise zones. Sales of any replacement parts for
machinery to any business entity located in any enterprise zone designated pursuant to
section 32-70 for use within such zone.
(44) Certain motion picture, video, television and radio production and broadcast equipment. (A) Sales of and the storage, use or other consumption of any filmed
and taped television and radio programs and any materials which become an ingredient
or component part of films or tapes which are used directly in the production and transmission of finished programs (i) broadcast to the general public by a television or radio
station or (ii) used on or after October 1, 1986, for purposes of accredited medical or
surgical training, including any equipment used for such purpose; (B) sales of and the
storage, use, rental, lease or other consumption of any motion picture or video production
equipment or sound recording equipment purchased or leased for use in this state for
production activities which become an ingredient or component part of any master tapes,
records, video tapes or film produced for commercial entertainment, commercial advertising or commercial educational purposes; or (C) sales of and the storage, use, rental
or lease of equipment, including, but not limited to, antennas used directly in the production or broadcast of programs to the general public by a television or radio station.
(45) Gold or silver bullion, legal tender of any nation, rare and antique coins.
Sales of and the storage or use of rare or antique coins, gold or silver bullion and gold
or silver legal tender of any nation, traded according to its value as precious metal,
provided such exemption shall not be applicable with respect to any such sale, storage
or use in which the total value of such bullion or legal tender sold by the retailer is less
than one thousand dollars.
(46) Meals delivered to homes of persons who are elderly, disabled or otherwise
confined. Sales of home delivered meals to elderly, disabled and other homebound
persons.
(47) Articles of clothing or footwear costing under fifty dollars. Sales of any
article of clothing or footwear intended to be worn on or about the human body the cost
of which to the purchaser is less than fifty dollars. For purposes of this subdivision
clothing or footwear shall not include (A) any special clothing or footwear primarily
designed for athletic activity or protective use that is not normally worn except when
used for the athletic activity or protective use for which it was designed, and (B) jewelry,
handbags, luggage, umbrellas, wallets, watches and similar items carried on or about
the human body but not worn on the body in the manner characteristic of clothing
intended for exemption under this subdivision.
(48) Nonprescription drugs and medicines. Sales of the following drugs or medicines available for purchase without prescription for use in or on the body: Vitamin or
mineral concentrates; dietary supplements; natural or herbal drugs or medicines; products intended to be taken for coughs, colds, asthma or allergies; antihistamines; laxatives;
antidiarrheal medicines; analgesics; antibiotic, antibacterial, antiviral and antifungal
medicines; antiseptics; astringents; anesthetics; steroidal medicines; anthelmintics;
emetics and antiemetics; antacids; and any medication prepared to be used in the eyes,
ears or nose, excluding cosmetics, dentifrices, mouthwash, shaving and hair care products, soaps and deodorants.
(49) Property tax payments under motor vehicle leases. Any payment made by
a lessee of a motor vehicle to a lessor for the purpose of paying the property taxes on
any such vehicle under a lease which is otherwise subject to the taxes imposed by this
chapter if such lease requires the lessee to pay such property taxes and if a separate
statement of the amount of any such property tax payment is contained in such lease or
in any bill rendered pursuant to such lease.
(50) Lease or rental of any motion picture film for display by theater owner
or operator. The leasing or rental of any motion picture film by the owner or operator
of a motion picture theater for purposes of display at such theater.
(51) Any meal the cost of which is less than two dollars. Repealed by P.A. 89-251, S. 202, 203.
(52) Cloth or fabric purchased for noncommercial sewing. Any sale of cloth or
fabric for purposes of noncommercial sewing, made of natural or synthetic fibers and
of such composition, weight and texture as to be used commonly in clothing, and including in addition to such cloth or fabric, any items necessary in such sewing which become
a component part of the clothing so made.
(53) Disposable pads used for incontinency. Sales of certain disposable pads prepared for use in the manner of a diaper or as an underpad, and commonly used by persons
who are incontinent.
(54) Test strips and tablets, lancets and glucose monitoring equipment used in
care of diabetes and associated repair or replacement parts. Sales of test strips and
tablets, lancets and glucose monitoring equipment for purposes of certain tests and
monitoring required in the care of diabetes and repair or replacement parts for such
equipment, whether such repair or replacements parts are purchased separately or in
conjunction with the sale of such equipment, and whether such parts continue the original
function or enhance the functionality of such equipment.
(55) Certain personal property used in burial or cremation. Sales of (A) tangible
personal property by any funeral establishment performing the primary services in preparation for and the conduct of burial or cremation, provided any such property must be
used directly in the performance of such services and the total amount of such exempt
sales with respect to any single funeral may not exceed two thousand five hundred
dollars, or (B) caskets used for burial or cremation.
(56) Sales of certain items by nursing homes, rest homes, residential care
homes, convalescent homes or adult day care centers. Sales of items for not more
than one hundred dollars each by any nursing home, rest home, residential care home,
convalescent home or any adult day care center approved for such purpose by the Commissioner of Social Services, provided (1) such sales are made through a gift shop located
in such home or center and (2) any profits from such sales are retained by such home
or center for the benefit of the patients, in the case of any such home, or persons using
any such adult day care center.
(57) Items purchased with federal food stamp coupons. Sales of any items purchased with federal food stamp coupons, subject to the provisions of section 12-412e.
(58) Services related to personnel, management or research when company
rendering service and recipient are participating in a joint venture for purposes
of research and new product development. Sales of any services rendered for purposes
of (A) personnel services, (B) commercial or industrial marketing, development, testing
or research services, or (C) business analysis and management services, whenever, pursuant to a joint venture agreement, the recipient of any such services is either a corporation, a partnership, or a limited liability company, and such services are rendered by
one or more corporate shareholders, or a corporate partner or corporate member in such
joint venture, and in accordance with which the company rendering such service must
have an ownership interest equivalent to not less than twenty-five per cent of total ownership in such joint venture, provided (i) the purpose of such joint venture is directly
related to production or development of new or experimental products or systems and
the marketing and support thereof, (ii) at least one of the corporations participating in
such joint venture shall have been actively engaged in business in this state for not less
than ten years, and (iii) exemption for such sales in accordance with this subsection,
with respect to any single joint venture, shall not be allowed for a period in excess of
twenty consecutive years from the date of such venture's incorporation, formation or
organization, or in the case of a joint venture in existence prior to January 1, 1986,
within the aircraft industry, for a period in excess of thirty consecutive years, and such
exemption shall be applicable to sales of such services rendered on or after January
1, 1986.
(59) Aviation fuel used exclusively and directly in the experimental testing of
any product. Sales of and the storage, use or other consumption of any aviation fuel
used exclusively and directly in the experimental testing of any product.
(60) Motor vehicle or vessel purchased but not registered in this state by a
person who is not a resident of this state. The sale of any motor vehicle or vessel, as
defined in section 15-127, in this state when the purchaser of such motor vehicle or
vessel is not a resident of this state and does not maintain a permanent place of abode
in this state, provided such motor vehicle or vessel is not presented for registration with
the Department of Motor Vehicles in this state and such purchaser submits a declaration,
prescribed as to form by the commissioner and bearing notice to the effect that false
statements made in such declaration are punishable, or other evidence as may be requested by the Commissioner of Revenue Services concerning such purchaser's residency or place of abode.
(61) Ambulances. Repealed by June Sp. Sess. P.A. 91-3, S. 166, 168.
(62) Services rendered between parent companies and wholly-owned subsidiaries. (A) Sales of any of the services enumerated in subpragraph (I), (K) or (L) of
subdivision (2) of subsection (a) of section 12-407 that are rendered for a business entity
affiliated with the business entity rendering such service in such manner that (i) either
business entity in such transaction owns a controlling interest in the other business entity,
or (ii) a controlling interest in each business entity in such transaction is owned by the
same person or persons or business entity or business entities.
(B) For purposes of this subdivision, (i) "business entity" means a corporation, trust,
estate, partnership, limited partnership, limited liability partnership, limited liability
company, single member limited liability company, sole proprietorship, nonstock corporation or a federally-recognized Indian tribe; (ii) "controlling interest" means, in the
case of a business entity that is a corporation, ownership of stock possessing one hundred
per cent of the total combined voting power of all classes of stock entitled to vote or
one hundred per cent of the total value of shares of all classes of stock of such corporation;
in the case of a business entity that is a trust or estate, ownership of a beneficial interest
of one hundred per cent in such trust or estate; in the case of a business entity that is a
partnership, limited partnership or limited liability partnership, ownership of one hundred per cent of the profits interest or capital interest in such partnership, limited partnership or limited liability partnership; in the case of a limited liability company with more
than one member, ownership of one hundred per cent of the profits interest, capital
interest or membership interests in such limited liability company; in the case of a business entity that is a sole proprietorship or single member limited liability company,
ownership of such sole proprietorship or single member limited liability company; in
the case of a business entity that is a nonstock corporation with voting members, control
of one hundred per cent of all voting membership interests in such corporation; and in
the case of a business entity that is a nonstock corporation with no voting members,
control of one hundred per cent of the board of directors of such corporation; (iii) whether
a controlling interest in a business entity is owned shall be determined in accordance
with Section 267 of the Internal Revenue Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as from time to time amended, provided
where a controlling interest is owned in a business entity other than a stock corporation,
the term "stock" as used in said Section 267 of the Internal Revenue Code means, in
the case of a partnership, limited partnership, limited liability partnership or limited
liability company treated as a partnership for federal income tax purposes, the profits
interest or capital interest in such partnership, in the case of a business entity that is a
trust or estate, the beneficial interests in such trust or estate, and in the case of a business
entity that is a nonstock corporation, the voting membership interests in such corporation, or if it has no voting members, the control of the board of directors; (iv) a business
entity has "control of" the board of directors of a nonstock corporation if one hundred
per cent of the voting members of the board of directors are either representatives of,
including ex-officio directors, or persons appointed by such business entity, or "control
of" one hundred per cent of the voting membership interests in a nonstock corporation
if one hundred per cent of the voting membership interests are held by the business
entity or by representatives of, including ex-officio members, or persons appointed by
such business entity.
(63) Items sold for use in agricultural production by a farmer engaged in such
production as a business. (A) Sales of and the storage, use or other consumption of
tangible personal property exclusively for use in agricultural production, as defined in
this subsection, by a farmer engaged in agricultural production as a trade or business
and to whom the Department of Revenue Services has issued a farmer tax exemption
permit, provided such farmer's gross income from such agricultural production, as reported for federal income tax purposes, shall have been (i) not less than two thousand
five hundred dollars for the immediately preceding taxable year, or (ii) on average, not
less than two thousand five hundred dollars for the two immediately preceding taxable
years.
(B) The Commissioner of Revenue Services shall adopt regulations in accordance
with chapter 54 requiring periodic registration for purposes of the issuance of farmer
tax exemption permits, including (i) a procedure related to the application for such
permit, such application to include a declaration, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made
in such declaration are punishable, to be signed by the applicant, and (ii) a form of notice
concerning the penalty for misuse of such permit.
(C) As used in this subsection, (i) "agricultural production" means engaging, as a
trade or business, in (I) the raising and harvesting of any agricultural or horticultural
commodity, (II) dairy farming, (III) forestry, (IV) the raising, feeding, caring for, shearing, training or management of livestock, including horses, bees, poultry, fur-bearing
animals or wildlife or (V) the raising and harvesting of fish, oysters, clams, mussels or
other molluscan shellfish; and (ii) "farmer" means any person engaged in agricultural
production as a trade or business.
(D) The Department of Revenue Services may issue a farmer tax exemption permit
to a farmer, notwithstanding the fact that, in the farmer's immediately preceding taxable
year, such farmer's gross income from agricultural production engaged in as a trade or
business may have been less than two thousand five hundred dollars, provided (i) such
farmer purchased, during such farmer's current or immediately preceding taxable year,
an agricultural trade or business from a seller who was issued a farmer tax exemption
permit by such department at the time of such purchase and (ii) such agricultural production shall be carried on as a trade or business by such purchaser during the period commencing upon the purchase and ending two years after the date of purchase. Such purchaser shall be liable for the tax otherwise imposed, during the period commencing
upon such purchase and ending two years after the date of purchase, if such agricultural
production is not carried on as a trade or business by such purchaser during the period
commencing upon such purchase and ending two years after the date of purchase.
(E) (i) The Department of Revenue Services, under such regulations as the Commissioner of Revenue Services may adopt in accordance with the provisions of chapter
54, may issue a farmer tax exemption permit to an applicant, provided such applicant
has satisfied the commissioner that the applicant intends to carry on agricultural production as a trade or business for at least two years, notwithstanding the fact that the applicant
was not engaged in agricultural production as a trade or business in the immediately
preceding taxable year or, if the applicant was engaged in agricultural production as a
trade or business in the immediately preceding taxable year, notwithstanding the fact
that the applicant's gross income from such agricultural production, as reported for
federal income tax purposes, was less than two thousand five hundred dollars for the
immediately preceding taxable year or, on average, less than two thousand five hundred
dollars for the two immediately preceding taxable years.
(ii) Such applicant shall be liable for the tax imposed under this chapter during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit if agricultural production is not carried on as a trade or business
by such applicant during such entire period.
(iii) Such applicant shall also be liable for the tax otherwise imposed, during the
period commencing upon the issuance of the permit and ending two years after the date
of issuance of the permit, if (I) such applicant's gross income from such agricultural
production, as reported for federal income tax purposes, is less than two thousand five
hundred dollars for the immediately preceding taxable year or, on average, less than
two thousand five hundred dollars for the two immediately preceding taxable years, and
(II) such applicant's expenses from such agricultural production, as reported for federal
income tax purposes, are less than two thousand five hundred dollars for the immediately
preceding taxable year or, on average, less than two thousand five hundred dollars for
the two immediately preceding taxable years.
(iv) Any applicant liable for tax under clause (ii) or (iii) of this subparagraph shall
not be eligible to be issued another permit under clause (i) of this subparagraph.
(64) Computer-related cleaning equipment. Sales of and the storage, use or other
consumption of equipment used directly in the production and cleaning of computer
discs for purposes of creating and maintaining the atmospheric environment necessary
in the area immediately surrounding such production and cleaning process, including
with respect to such area, climate control, air quality and a positive pressure mode
adapted to the particular climate and air quality requirements of such production and
cleaning process.
(65) Molds, dies, patterns and sand handling equipment for metal casting
foundries. The purchase and sale by metal casting foundries of molds, dies, patterns
and sand handling equipment.
(66) Molds, dies and patterns for pattern shops and metal casting foundries.
The sale by pattern shops of molds, dies and patterns to metal casting foundries or their
customers for use in such foundries, and the purchase and use of such items by pattern
shops in connection with any such sales.
(67) New motor vehicles exclusively powered by clean alternative fuels. Sales
of and the storage, use or other consumption, prior to July 1, 2008, of a new motor vehicle
which is exclusively powered by a clean alternative fuel. As used in this subdivision and
subdivisions (68) and (69) of this section, "clean alternative fuel" shall mean natural
gas, hydrogen or electricity when used as a motor vehicle fuel or propane when used
as a motor vehicle fuel if such a vehicle meets the federal fleet emissions standards
under the federal Clean Air Act or any emissions standards adopted by the Commissioner
of Environmental Protection as part of the state's implementation plan under said act.
(68) Conversion equipment associated with converting vehicles to exclusive
use of clean alternative fuels or dual use of such fuel and any other fuel. Sales of
and the storage, use or other consumption, prior to July 1, 2008, of conversion equipment
incorporated into or used in converting vehicles powered by any other fuel to either
exclusive use of a clean alternative fuel or dual use of any other fuel and a clean alternative fuel, including, but not limited to, storage cylinders, cylinder brackets, regulated
mixers, fill valves, pressure regulators, solenoid valves, fuel gauges, electronic ignitions
and alternative fuel delivery lines.
(69) Equipment associated with compressed natural gas filling or electric recharging station. Sales of and the storage, use or other consumption, prior to July 1,
2008, of equipment incorporated into or used in a compressed natural gas or hydrogen
filling or electric recharging station for vehicles powered by a clean alternative fuel,
including, but not limited to, compressors, storage cylinders, associated framing, tubing
and fittings, valves, fuel poles and fuel delivery lines used for clean alternative fuel
storage and filling facilities.
(70) Commercial trucks, truck tractors, tractors and semitrailers and vehicles
used in combination therewith. (A) Sales of and the storage, use or other consumption
of commercial trucks, truck tractors, tractors and semitrailers, and vehicles used in combination therewith, which (i) have a gross vehicle weight rating in excess of twenty-six
thousand pounds or (ii) are operated actively and exclusively during the period commencing upon its purchase and ending one year after the date of purchase for the carriage
of interstate freight pursuant to a certificate or permit issued by the Interstate Commerce
Commission or its successor agency. As used in this subsection, "gross vehicle weight
rating" means the value specified by the manufacturer as the loaded weight of the single
or combination vehicle and, if the manufacturer has not specified a value for a towed
vehicle, means the value specified for the towing vehicle plus the loaded weight of the
towed unit.
(B) Each purchaser of a commercial truck, truck tractor, tractor or semitrailer or
vehicle used in combination therewith exempt from tax pursuant to the provisions of
subparagraph (A)(ii) of this subsection shall, in order to qualify for said exemption,
present to the retailer (i) a copy of the certificate or permit that was issued by the Interstate
Commerce Commission or its successor agency to the purchaser and (ii) a certificate,
in such form as the commissioner may prescribe, certifying that such commercial truck,
truck tractor, tractor or semitrailer or vehicle used in combination therewith will be
operated actively and exclusively for the carriage of interstate freight. The purchaser
shall be liable for the tax otherwise imposed if, during the period commencing upon its
purchase and ending one year after the date of purchase, such commercial truck, truck
tractor, tractor or semitrailer or vehicle used in combination therewith is not operated
actively and exclusively for the carriage of interstate freight.
(71) Machinery, equipment, tools, materials and supplies used in commercial
printing. Sales of and the storage, use or other consumption of machinery, equipment,
tools, materials and supplies used predominantly in the production of printed material
by a commercial printer or publisher. For purposes of this subsection, "the production
of printed material" is defined to include all processes necessary to convert manuscript
copy into printed material, including but not limited to, layout, color separation and
typesetting.
(72) Machinery, equipment, tools, materials and supplies for typesetting, color
separation, finished copy, or similar products. Sales of and the storage, use or other
consumption of machinery, equipment, tools, materials and supplies used predominantly in the production of typesetting, color separation, finished copy with type proofs
and artwork or similar content mounted for photomechanical reproduction, or other
similar products to be sold for use in the production of printed materials.
(73) Component parts for assembly of manufacturing machinery. The sale of
any part of a machine purchased exclusively for the purpose of assembling a machine
for use directly in a manufacturing production process, provided the purchaser submits
a certified statement at the time of such purchase, on a form prepared by the Commissioner of Revenue Services, certifying that such part is purchased exclusively for use
in a machine to be assembled by the purchaser, or someone acting on behalf of the
purchaser, and that such machine shall be used directly in a manufacturing production
process. The purchaser shall prepare a record of the use of such part which shall be
maintained by the purchaser for a period of not less than three years following the date
of purchase.
(74) Certain sales of computer and data processing services. (A) Sales of computer and data processing services rendered to a customer (i) by a retailer which, on or
after July 1, 1991, acquired the operations of a data processing facility from the customer,
provided such customer operated the facility for its own use or (ii) by a retailer which,
on or after July 1, 1993, acquired the operations of the data processing facility from the
retailer described in subparagraph (A)(i) of this subsection, provided such customer
formerly operated the facility for its own use. (B) Sales of computer and data processing
services rendered to a customer by a retailer which, on or after July 1, 1995, acquired
the data processing operations from the customer, provided such customer formerly
conducted such data processing operations for its own use. Sales of and the storage, use
or other consumption of computers or data processing equipment, when sold to the
retailer described in this subparagraph and used by such retailer to provide the services
described in this subparagraph. The provisions in this subparagraph shall not apply if
the retailer is a related person, as defined in section 12-217w, with respect to the customer
or the customer is a related person, as defined therein, with respect to the retailer.
(75) Aviation fuel. Sales of and the storage, use or other consumption of aviation
fuel used exclusively for aviation purposes.
(76) Aircraft repair or replacement parts. Sales of and the storage, use or other
consumption of repair or replacement parts exclusively for use (A) in aircraft, or (B) in
the significant overhauling or rebuilding of aircraft or aircraft parts or components on
a factory basis.
(77) Aircraft repair services. Sales of aircraft repair services when such services
are rendered in connection with (A) aircraft, or (B) the significant overhauling or rebuilding of aircraft or aircraft parts or components on a factory basis.
(78) Materials, tools, fuel, machinery and equipment in an aircraft manufacturing facility. On or after July 1, 1993, sales of and the storage, use or other consumption by an aircraft manufacturer operating an aircraft manufacturing fa
