Tax on Home Service and Repair Contracts in Connecticut

Wednesday, January 25th, 2017

 
 
Construction workers painting, sanding, and building wall.
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Connecticut
General

The Connecticut Department of Revenue ruled on how to tax warranty contracts on real property.

Connecticut taxes services to industrial, commercial, or income-producing property. These include services to residential property rented to a tenant. Repair services to tangible personal property are also taxable. Services to residential real property occupied by its owner, however, are generally not taxable.

As a result, warranty contracts for income-producing property are taxable. Home warranty contracts for owner-occupied properties are not taxable. If a contract includes taxable services to tangible personal property, the seller can separately state and collect tax on charges for those services.

http://www.ct.gov/drs/cwp/view.asp?A=1513&Q=589344


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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