Sec. 12-407. Definitions.
Sec. 12-407. Definitions. (a) Whenever used in this chapter:
(1) "Person" means and includes any individual, firm, copartnership, joint venture,
association, association of persons however formed, social club, fraternal organization,
corporation, limited liability company, foreign municipal electric utility as defined in
section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the United States, this
state or any political subdivision thereof or any group or combination acting as a unit,
and any other individual or officer acting under the authority of any court in this state.
(2) "Sale" and "selling" mean and include:
(A) Any transfer of title, exchange or barter, conditional or otherwise, in any manner
or by any means whatsoever, of tangible personal property for a consideration;
(B) Any withdrawal, except a withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property from the place where it is located
for delivery to a point in this state for the purpose of the transfer of title, exchange or
barter, conditional or otherwise, in any manner or by any means whatsoever, of the
property for a consideration;
(C) The producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly
the materials used in the producing, fabricating, processing, printing or imprinting, including, but not limited to, sign construction, photofinishing, duplicating and photocopying;
(D) The furnishing and distributing of tangible personal property for a consideration
by social clubs and fraternal organizations to their members or others;
(E) The furnishing, preparing, or serving for a consideration of food, meals or
drinks;
(F) A transaction whereby the possession of property is transferred but the seller
retains the title as security for the payment of the price;
(G) A transfer for a consideration of the title of tangible personal property which
has been produced, fabricated or printed to the special order of the customer, or of any
publication, including, but not limited to, sign construction, photofinishing, duplicating
and photocopying;
(H) A transfer for a consideration of the occupancy of any room or rooms in a hotel
or lodging house for a period of thirty consecutive calendar days or less;
(I) The rendering of certain services, as defined in subdivision (37) of this subsection, for a consideration, exclusive of such services rendered by an employee for the
employer;
(J) The leasing or rental of tangible personal property of any kind whatsoever, including, but not limited to, motor vehicles, linen or towels, machinery or apparatus,
office equipment and data processing equipment, provided for purposes of this subdivision and the application of sales and use tax to contracts of lease or rental of tangible
personal property, 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 shall not
constitute a sale within the meaning of this subsection;
(K) The rendering of telecommunications service, as defined in subdivision (26)
of this subsection, for a consideration on or after January 1, 1990, exclusive of any such
service rendered by an employee for the employer of such employee, subject to the
provisions related to telecommunications service in accordance with section 12-407a;
(L) (i) The rendering of community antenna television service, as defined in subdivision (27) of this subsection, for a consideration on or after January 1, 1990, exclusive
of any such service rendered by an employee for the employer of such employee. For
purposes of this chapter, "community antenna television service" includes service provided by a holder of a certificate of cable franchise authority pursuant to section 16-331p,
and service provided by a community antenna television company issued a certificate of
video franchise authority pursuant to section 16-331e for any service area in which it
was not certified to provide community antenna television service pursuant to section
16-331 on or before October 1, 2007;
(ii) The rendering of certified competitive video service, as defined in subdivision
(38) of this subsection, for consideration on or after October 1, 2007, exclusive of any
such service rendered by an employee for the employer of such employee;
(M) The transfer for consideration of space or the right to use any space for the
purpose of storage or mooring of any noncommercial vessel, exclusive of dry or wet
storage or mooring of such vessel during the period commencing on the first day of
November in any year to and including the thirtieth day of April of the next succeeding year;
(N) The sale for consideration of naming rights to any place of amusement, entertainment or recreation within the meaning of subdivision (3) of section 12-540;
(O) The transfer for consideration of a prepaid telephone calling service, as defined
in subdivision (34) of this subsection, and the recharge of a prepaid telephone calling
service, provided, if the sale or recharge of a prepaid telephone calling service does not
take place at the retailer's place of business and an item is shipped by the retailer to the
customer, the sale or recharge shall be deemed to take place at the customer's shipping
address, but, if such sale or recharge does not take place at the retailer's place of business
and no item is shipped by the retailer to the customer, the sale or recharge shall be
deemed to take place at the customer's billing address or the location associated with
the customer's mobile telephone number; and
(P) The furnishing by any person, for a consideration, of space for storage of tangible
personal property when such person is engaged in the business of furnishing such space,
but "sale" and "selling" do not mean or include the furnishing of space which is used
by a person for residential purposes. As used in this subparagraph, "space for storage"
means secure areas, such as rooms, units, compartments or containers, whether accessible from outside or from within a building, that are designated for the use of a customer,
where the customer can store and retrieve property, including self-storage units, mini-storage units and areas by any other name to which the customer has either unlimited
free access or free access within reasonable business hours or upon reasonable notice
to the service provider to add or remove property, but does not mean the rental of an
entire building, such as a warehouse. For purposes of this subparagraph, furnishing
space for storage shall not include general warehousing and storage, where the warehouse typically handles, stores and retrieves a customer's property using the warehouse's staff and equipment and does not allow the customer free access to the storage
space and shall not include accepting specific items of property for storage, such as
clothing at a dry cleaning establishment or golf bags at a golf club.
(3) (A) "Retail sale" or "sale at retail" means and includes a sale for any purpose
other than resale in the regular course of business of tangible personal property or a
transfer for a consideration of the occupancy of any room or rooms in a hotel or lodging
house for a period of thirty consecutive calendar days or less, or the rendering of any
service described in subdivision (2) of this subsection. The delivery in this state of
tangible personal property by an owner or former owner thereof or by a factor, if the
delivery is to a consumer pursuant to a retail sale made by a retailer not engaged in
business in this state, is a retail sale in this state by the person making the delivery. Such
person shall include the retail selling price of the property in such person's gross receipts.
(B) "Retail sale" or "sale at retail" does not include any sale of any tangible personal
property, where, no later than one hundred twenty days after the original sale, the original
purchaser sells or becomes contractually obligated to sell such property to a retailer who
is contractually obligated to lease such property back to such original purchaser in a lease
that is taxable under this chapter or the sale of such property by the original purchaser to
the retailer who is contractually obligated to lease such property back to such original
purchaser in a lease that is taxable under this chapter. If the original purchaser has paid
sales or use tax on the original sale of such property to the original purchaser, such
original purchaser may (i) claim a refund of such tax under the provisions of section
12-425, upon presentation of proof satisfactory to the commissioner that the mutual
contractual obligations described in this subparagraph were undertaken no later than
one hundred twenty days after the original sale and that such tax was paid to the original
retailer on the original sale and was remitted to the commissioner by such original retailer
or by such original purchaser, or (ii) issue at the time of such original sale or no later
than one hundred twenty days thereafter a certificate, in the form prescribed by the
commissioner, to the original retailer certifying that the mutual contractual obligations
described in this subparagraph have been undertaken. If such certificate is issued to the
original retailer at the time of the original sale, no tax on the original sale shall be
collected by the original retailer from the original purchaser. If the certificate is issued
after the time of the original sale but no later than one hundred twenty days thereafter,
the original retailer shall refund to the original purchaser the tax collected on the original
sale and, if the original retailer has previously remitted the tax to the commissioner, the
original retailer may either treat the amount so refunded as a credit against the tax due
on the return next filed under this chapter, or claim a refund under section 12-425. If
such certificate is issued no later than one hundred twenty days after the time of the
original sale but the tangible personal property originally purchased is not, in fact, subsequently leased by the original purchaser, such original purchaser shall be liable for and
be required to pay the tax due on the original sale.
(4) "Storage" includes any keeping or retention in this state for any purpose except
sale in the regular course of business or subsequent use solely outside this state of
tangible personal property purchased from a retailer.
(5) "Use" includes the exercise of any right or power over tangible personal property
incident to the ownership of that property, except that it does not include the sale of that
property in the regular course of business.
(6) "Storage" and "use" do not include (A) keeping, retaining or exercising any
right or power over tangible personal property shipped or brought into this state for the
purpose of subsequently transporting it outside the state for use thereafter solely outside
the state, or for the purpose of being processed, fabricated or manufactured into, attached
to or incorporated into, other tangible personal property to be transported outside the
state and thereafter used solely outside the state, or (B) keeping, retaining or exercising
any right or power over tangible personal property acquired by the customer of a commercial printer while such property is located at the premises of the commercial printer
in this state pursuant to a contract with such printer for printing and distribution of
printed material if the commercial printer could have acquired such property without
application of tax under this chapter.
(7) "Purchase" and "purchasing" means and includes: (A) Any transfer, exchange or
barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible
personal property or of the occupancy of any room or rooms in a hotel or lodging house
for a period of thirty consecutive calendar days or less for a consideration; (B) a transaction whereby the possession of property is transferred but the seller retains the title as
security for the payment of the price; (C) a transfer for a consideration of tangible personal property which has been produced, fabricated or printed to the special order of
the customer, or of any publication; (D) when performed outside this state or when the
customer gives a resale certificate pursuant to section 12-410, the producing, fabricating,
processing, printing or imprinting of tangible personal property for a consideration for
consumers who furnish either directly or indirectly the materials used in the producing,
fabricating, processing, printing or imprinting; (E) the acceptance or receipt of any
service described in any of the subparagraphs of subdivision (2) of this subsection; (F)
any leasing or rental of tangible personal property. Wherever in this chapter reference
is made to the purchase or purchasing of tangible personal property, it shall be construed
to include purchases as described in this subsection.
(8) (A) "Sales price" means the total amount for which tangible personal property
is sold by a retailer, the total amount of rent for which occupancy of a room is transferred
by an operator, the total amount for which any service described in subdivision (2) of
this subsection is rendered by a retailer or the total amount of payment or periodic
payments for which tangible personal property is leased by a retailer, valued in money,
whether paid in money or otherwise, which amount is due and owing to the retailer or
operator and, subject to the provisions of subdivision (1) of section 12-408, whether or
not actually received by the retailer or operator, without any deduction on account of
any of the following: (i) The cost of the property sold; (ii) the cost of materials used,
labor or service cost, interest charged, losses or any other expenses; (iii) for any sale
occurring on or after July 1, 1993, any charges by the retailer to the purchaser for shipping
or delivery, notwithstanding whether such charges are separately stated in a written
contract, or on a bill or invoice rendered to such purchaser or whether such shipping or
delivery is provided by the retailer or a third party. The provisions of subparagraph (A)
(iii) of this subdivision shall not apply to any item exempt from taxation pursuant to
section 12-412. Such total amount includes any services that are a part of the sale; except
as otherwise provided in subparagraph (B)(v) or (B)(vi) of this subdivision, any amount
for which credit is given to the purchaser by the retailer, and all compensation and all
employment-related expenses, whether or not separately stated, paid to or on behalf of
employees of a retailer of any service described in subdivision (2) of this subsection.
(B) "Sales price" does not include any of the following: (i) Cash discounts allowed
and taken on sales; (ii) any portion of the amount charged for property returned by
purchasers, which upon rescission of the contract of sale is refunded either in cash or
credit, provided the property is returned within ninety days from the date of purchase;
(iii) the amount of any tax, not including any manufacturers' or importers' excise tax,
imposed by the United States upon or with respect to retail sales whether imposed upon
the retailer or the purchaser; (iv) the amount charged for labor rendered in installing or
applying the property sold, provided such charge is separately stated and exclusive of
such charge for any service rendered within the purview of subparagraph (I) of subdivision (37) of this subsection; (v) unless the provisions of subdivision (4) of section 12-430 or of section 12-430a are applicable, any amount for which credit is given to the
purchaser by the retailer, provided such credit is given solely for property of the same
kind accepted in part payment by the retailer and intended by the retailer to be resold;
(vi) the full face value of any coupon used by a purchaser to reduce the price paid to a
retailer for an item of tangible personal property, whether or not the retailer will be
reimbursed for such coupon, in whole or in part, by the manufacturer of the item of
tangible personal property or by a third party; (vii) the amount charged for separately
stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of employees of a retailer who has contracted to manage
a service recipient's property or business premises and renders management services
described in subparagraph (I) or (J) of subdivision (37) of this subsection, provided, the
employees perform such services solely for the service recipient at its property or business premises and "sales price" shall include the separately stated compensation, fringe
benefits, workers' compensation and payroll taxes or assessments paid to or on behalf
of any employee of the retailer who is an officer, director or owner of more than five per
cent of the outstanding capital stock of the retailer. Determination whether an employee
performs services solely for a service recipient at its property or business premises for
purposes of this subdivision shall be made by reference to such employee's activities
during the time period beginning on the later of the commencement of the management
contract, the date of the employee's first employment by the retailer or the date which
is six months immediately preceding the date of such determination; (viii) the amount
charged for separately stated compensation, fringe benefits, workers' compensation and
payroll taxes or assessments paid to or on behalf of (I) a leased employee, or (II) a
worksite employee by a professional employer organization pursuant to a professional
employer agreement. For purposes of this subparagraph, an employee shall be treated
as a leased employee if the employee is provided to the client at the commencement of
an agreement with an employee leasing organization under which at least seventy-five
per cent of the employees provided to the client at the commencement of such initial
agreement qualify as leased employees pursuant to Section 414(n) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United
States, as from time to time amended, or the employee is added to the client's workforce
by the employee leasing organization subsequent to the commencement of such initial
agreement and qualifies as a leased employee pursuant to Section 414(n) of said Internal
Revenue Code of 1986 without regard to subparagraph (B) of paragraph (2) thereof. A
leased employee, or a worksite employee subject to a professional employer agreement,
shall not include any employee who is hired by a temporary help service and assigned
to support or supplement the workforce of a temporary help service's client; (ix) any
amount received by a retailer from a purchaser as the battery deposit that is required to
be paid under subsection (a) of section 22a-245h; the refund value of a beverage container that is required to be paid under subsection (a) of section 22a-244; or a deposit
that is required by law to be paid by the purchaser to the retailer and that is required by
law to be refunded to the purchaser by the retailer when the same or similar tangible
personal property is delivered as required by law to the retailer by the purchaser, if such
amount is separately stated on the bill or invoice rendered by the retailer to the purchaser;
and (x) the amount charged for separately stated compensation, fringe benefits, workers'
compensation and payroll taxes or assessments paid to a media payroll services company, as defined in this subsection.
(9) (A) "Gross receipts" means the total amount of the sales price from retail sales
of tangible personal property by a retailer, the total amount of the rent from transfers
of occupancy of rooms by an operator, the total amount of the sales price from retail sales
of any service described in subdivision (2) of this subsection by a retailer of services, or
the total amount of payment or periodic payments from leases or rentals of tangible
personal property by a retailer, valued in money, whether received in money or otherwise, which amount is due and owing to the retailer or operator and, subject to the
provisions of subdivision (1) of section 12-408, whether or not actually received by the
retailer or operator, without any deduction on account of any of the following: (i) The
cost of the property sold; however, in accordance with such regulations as the Commissioner of Revenue Services may prescribe, a deduction may be taken if the retailer has
purchased property for some other purpose than resale, has reimbursed the retailer's
vendor for tax which the vendor is required to pay to the state or has paid the use tax
with respect to the property, and has resold the property prior to making any use of the
property other than retention, demonstration or display while holding it for sale in the
regular course of business. If such a deduction is taken by the retailer, no refund or credit
will be allowed to the retailer's vendor with respect to the sale of the property; (ii) the
cost of the materials used, labor or service cost, interest paid, losses or any other expense;
(iii) for any sale occurring on or after July 1, 1993, except for any item exempt from
taxation pursuant to section 12-412, any charges by the retailer to the purchaser for
shipping or delivery, notwithstanding whether such charges are separately stated in the
written contract, or on a bill or invoice rendered to such purchaser or whether such
shipping or delivery is provided by the retailer or a third party. The total amount of the
sales price includes any services that are a part of the sale; all receipts, cash, credits and
property of any kind; except as otherwise provided in subparagraph (B)(v) or (B)(vi)
of this subdivision, any amount for which credit is allowed by the retailer to the purchaser; and all compensation and all employment-related expenses, whether or not separately stated, paid to or on behalf of employees of a retailer of any service described in
subdivision (2) of this subsection.
(B) "Gross receipts" do not include any of the following: (i) Cash discounts allowed
and taken on sales; (ii) any portion of the sales price of property returned by purchasers,
which upon rescission of the contract of sale is refunded either in cash or credit, provided
the property is returned within ninety days from the date of sale; (iii) the amount of any
tax, not including any manufacturers' or importers' excise tax, imposed by the United
States upon or with respect to retail sales whether imposed upon the retailer or the
purchaser; (iv) the amount charged for labor rendered in installing or applying the property sold, provided such charge is separately stated and exclusive of such charge for
any service rendered within the purview of subparagraph (I) of subdivision (37) of this
subsection; (v) unless the provisions of subdivision (4) of section 12-430 or of section
12-430a are applicable, any amount for which credit is given to the purchaser by the
retailer, provided such credit is given solely for property of the same kind accepted in
part payment by the retailer and intended by the retailer to be resold; (vi) the full face
value of any coupon used by a purchaser to reduce the price paid to the retailer for an
item of tangible personal property, whether or not the retailer will be reimbursed for
such coupon, in whole or in part, by the manufacturer of the item of tangible personal
property or by a third party; (vii) the amount charged for separately stated compensation,
fringe benefits, workers' compensation and payroll taxes or assessments paid to or on
behalf of employees of a retailer who has contracted to manage a service recipient's
property or business premises and renders management services described in subparagraph (I) or (J) of subdivision (37) of this subsection, provided the employees perform
such services solely for the service recipient at its property or business premises and
"gross receipts" shall include the separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of any employee
of the retailer who is an officer, director or owner of more than five per cent of the
outstanding capital stock of the retailer. Determination whether an employee performs
services solely for a service recipient at its property or business premises for purposes
of this subdivision shall be made by reference to such employee's activities during the
time period beginning on the later of the commencement of the management contract,
the date of the employee's first employment by the retailer or the date which is six
months immediately preceding the date of such determination; (viii) the amount charged
for separately stated compensation, fringe benefits, workers' compensation and payroll
taxes or assessments paid to or on behalf of (I) a leased employee, or (II) a worksite
employee by a professional employer organization pursuant to a professional employer
agreement. For purposes of this subparagraph, an employee shall be treated as a leased
employee if the employee is provided to the client at the commencement of an agreement
with an employee leasing organization under which at least seventy-five per cent of the
employees provided to the client at the commencement of such initial agreement qualify
as leased employees pursuant to Section 414(n) of the Internal Revenue Code of 1986,
or any subsequent corresponding internal revenue code of the United States, as from
time to time amended, or the employee is added to the client's workforce by the employee
leasing organization subsequent to the commencement of such initial agreement and
qualifies as a leased employee pursuant to Section 414(n) of said Internal Revenue Code
of 1986 without regard to subparagraph (B) of paragraph (2) thereof. A leased employee,
or a worksite employee subject to a professional employer agreement, shall not include
any employee who is hired by a temporary help service and assigned to support or
supplement the workforce of a temporary help service's client; (ix) the amount received
by a retailer from a purchaser as the battery deposit that is required to be paid under
subsection (a) of section 22a-256h; the refund value of a beverage container that is
required to be paid under subsection (a) of section 22a-244 or a deposit that is required
by law to be paid by the purchaser to the retailer and that is required by law to be refunded
to the purchaser by the retailer when the same or similar tangible personal property is
delivered as required by law to the retailer by the purchaser, if such amount is separately
stated on the bill or invoice rendered by the retailer to the purchaser; and (x) the amount
charged for separately stated compensation, fringe benefits, workers' compensation and
payroll taxes or assessments paid to a media payroll services company, as defined in
this subsection.
(10) "Business" includes any activity engaged in by any person or caused to be
engaged in by any person with the object of gain, benefit or advantage, either direct or
indirect.
(11) "Seller" includes every person engaged in the business of selling tangible personal property or rendering any service described in any of the subparagraphs of subdivision (2) of this subsection, the gross receipts from the retail sale of which are required
to be included in the measure of the sales tax and every operator as defined in subdivision
(18) of this subsection.
(12) "Retailer" includes: (A) Every person engaged in the business of making sales
at retail or in the business of making retail sales at auction of tangible personal property
owned by the person or others; (B) every person engaged in the business of making
sales for storage, use or other consumption or in the business of making sales at auction
of tangible personal property owned by the person or others for storage, use or other
consumption; (C) every operator, as defined in subdivision (18) of this subsection; (D)
every seller rendering any service described in subdivision (2) of this subsection; (E)
every person under whom any salesman, representative, peddler or canvasser operates
in this state, or from whom such salesman, representative, peddler or canvasser obtains
the tangible personal property that is sold; (F) every person with whose assistance any
seller is enabled to solicit orders within this state; (G) every person making retail sales
from outside this state to a destination within this state and not maintaining a place of
business in this state who engages in regular or systematic solicitation of sales of tangible
personal property in this state (i) by the display of advertisements on billboards or other
outdoor advertising in this state, (ii) by the distribution of catalogs, periodicals, advertising flyers or other advertising by means of print, radio or television media, or (iii) by
mail, telegraphy, telephone, computer data base, cable, optic, microwave or other communication system, for the purpose of effecting retail sales of tangible personal property,
provided such person has made one hundred or more retail sales from outside this state
to destinations within this state during the twelve-month period ended on the September
thirtieth immediately preceding the monthly or quarterly period with respect to which
such person's liability for tax under this chapter is determined; (H) any person owned
or controlled, either directly or indirectly, by a retailer engaged in business in this state
which is the same as or similar to the line of business in which such person so owned
or controlled is engaged; (I) any person owned or controlled, either directly or indirectly,
by the same interests that own or control, either directly or indirectly, a retailer engaged
in business in this state which is the same as or similar to the line of business in which
such person so owned or controlled is engaged; (J) any assignee of a person engaged
in the business of leasing tangible personal property to others, where leased property
of such person which is subject to taxation under this chapter is situated within this state
and such assignee has a security interest, as defined in subdivision (35) of subsection
(b) of section 42a-1-201, in such property; and (K) every person making retail sales of
items of tangible personal property from outside this state to a destination within this
state and not maintaining a place of business in this state who repairs or services such
items, under a warranty, in this state, either directly or indirectly through an agent,
independent contractor or subsidiary.
(13) "Tangible personal property" means personal property which may be seen,
weighed, measured, felt or touched or which is in any other manner perceptible to the
senses including canned or prewritten computer software. Tangible personal property
includes the distribution, generation or transmission of electricity.
(14) "In this state" or "in the state" means within the exterior limits of the state of
Connecticut and includes all territory within these limits owned by or ceded to the United
States of America.
(15) (A) "Engaged in business in the state" means and includes but shall not be
limited to the following acts or methods of transacting business: (i) Selling in this state,
or any activity in this state in connection with selling in this state, tangible personal
property for use, storage or consumption within the state; (ii) engaging in the transfer
for a consideration of the occupancy of any room or rooms in a hotel or lodging house
for a period of thirty consecutive calendar days or less; (iii) rendering in this state any
service described in any of the subparagraphs of subdivision (2) of this subsection; (iv)
maintaining, occupying or using, permanently or temporarily, directly or indirectly,
through a subsidiary or agent, by whatever name called, any office, place of distribution,
sales or sample room or place, warehouse or storage point or other place of business or
having any representative, agent, salesman, canvasser or solicitor operating in this state
for the purpose of selling, delivering or taking orders; (v) notwithstanding the fact that
retail sales are made from outside this state to a destination within this state and that a
place of business is not maintained in this state, engaging in regular or systematic solicitation of sales of tangible personal property in this state by the display of advertisements
on billboards or other outdoor advertising in this state, by the distribution of catalogs,
periodicals, advertising flyers or other advertising by means of print, radio or television
media, or by mail, telegraphy, telephone, computer data base, cable, optic, microwave
or other communication system, for the purpose of effecting retail sales of tangible
personal property, provided one hundred or more retail sales from outside this state to
destinations within this state are made during the twelve-month period ended on the
September thirtieth immediately preceding the monthly or quarterly period with respect
to which liability for tax under this chapter is determined; (vi) being owned or controlled,
either directly or indirectly, by a retailer engaged in business in this state which is the
same as or similar to the line of business in which the retailer so owned or controlled
is engaged; (vii) being owned or controlled, either directly or indirectly, by the same
interests that own or control, either directly or indirectly, a retailer engaged in business
in this state which is the same as or similar to the line of business in which the retailer
so owned or controlled is engaged; (viii) being the assignee of a person engaged in the
business of leasing tangible personal property to others, where leased property of such
person is situated within this state and such assignee has a security interest, as defined
in subdivision (35) of subsection (b) of section 42a-1-201, in such property; and (ix)
notwithstanding the fact that retail sales of items of tangible personal property are made
from outside this state to a destination within this state and that a place of business is
not maintained in this state, repairing or servicing such items, under a warranty, in this
state, either directly or indirectly through an agent, independent contractor or subsidiary.
(B) A retailer who has contracted with a commercial printer for printing and distribution of printed material shall not be deemed to be engaged in business in this state
because of the ownership or leasing by the retailer of tangible or intangible personal
property located at the premises of the commercial printer in this state, the sale by the
retailer of property of any kind produced or processed at and shipped or distributed
from the premises of the commercial printer in this state, the activities of the retailer's
employees or agents at the premises of the commercial printer in this state, which activities relate to quality control, distribution or printing services performed by the printer,
or the activities of any kind performed by the commercial printer in this state for or on
behalf of the retailer.
(C) A retailer not otherwise a retailer engaged in business in the state who purchases
fulfillment services carried on in this state by a person other than an affiliated person,
or who owns tangible personal property located on the premises of an unaffiliated person
performing fulfillment services for such retailer shall not be deemed to be engaged in
business in the state. For purposes of this subparagraph, persons are affiliated persons
with respect to each other where one of such persons has an ownership interest of more
than five per cent, whether direct or indirect, in the other, or where an ownership interest
of more than five per cent, whether direct or indirect, is held in each of such persons by
another person or by a group of other persons who are affiliated persons with respect
to each other. For purposes of this subparagraph, "fulfillment services" means services
that are performed by a person on its premises on behalf of a purchaser of such services
and that involve the receipt of orders from the purchaser of such services or an agent
thereof, which orders are to be filled by the person from an inventory of products that
are offered for sale by the purchaser of such services, and the shipment of such orders
to customers of the purchaser of such services.
(D) A retailer not otherwise a retailer engaged in business in this state that participates in a trade show or shows at the convention center, as defined in subdivision (3)
of section 32-600, shall not be deemed to be engaged in business in this state, regardless
of whether the retailer has employees or other staff present at such trade shows, provided
the retailer's activity at such trade shows is limited to displaying goods or promoting
services, no sales are made, any orders received are sent outside this state for acceptance
or rejection and are filled from outside this state, and provided further that such participation is not more than fourteen days, or part thereof, in the aggregate during the retailer's
income year for federal income tax purposes.
(16) "Hotel" means any building regularly used and kept open as such for the feeding
and lodging of guests where any person who conducts himself properly and who is able
and ready to pay for such services is received if there are accommodations for such
person and which derives the major portion of its operating receipts from the renting of
rooms and the sale of food. "Hotel" shall include any apartment hotel wherein apartments
are rented for fixed periods of time, furnished or unfurnished, while the keeper of such
hotel supplies food to the occupants thereof, if required.
(17) "Lodging house" means any building or portion of a building, other than a
hotel or apartment hotel, in which persons are lodged for hire with or without meals,
including, but not limited to, any motel, motor court, motor inn, tourist court or similar
accommodation; provided the terms "hotel", "apartment hotel" and "lodging house"
shall not be construed to include: (A) Privately owned and operated convalescent homes,
residential care homes, homes for the infirm, indigent or chronically ill; (B) religious
or charitable homes for the aged, infirm, indigent or chronically ill; (C) privately owned
and operated summer camps for children; (D) summer camps for children operated
by religious or charitable organizations; (E) lodging accommodations at educational
institutions; or (F) lodging accommodations at any facility operated by and in the name
of any nonprofit charitable organization, provided the income from such lodging accommodations at such facility is not subject to federal income tax.
(18) "Operator" means any person operating a hotel or lodging house in the state,
including, but not limited to, the owner or proprietor of such premises, lessee, sublessee,
mortgagee in possession, licensee or any other person otherwise operating such hotel
or lodging house.
(19) "Occupancy" means the use or possession, or the right to the use or possession,
of any room or rooms in a hotel or lodging house or the right to the use or possession
of the furnishings or the services and accommodations accompanying the use and possession of such room or rooms, for the first period of not exceeding thirty consecutive
calendar days.
(20) "Room" means any room or rooms of any kind in any part or portion of a hotel
or lodging house let out for use or possession for lodging purposes.
(21) "Rent" means the consideration received for occupancy valued in money,
whether received in money or otherwise, including all receipts, cash, credits and property
or services of any kind or nature, and also any amount for which credit is allowed by
the operator to the occupant, without any deduction therefrom whatsoever.
(22) "Certificated air carrier" means a person issued a certificate or certificates by
the Federal Aviation Administration pursuant to Title 14, Chapter I, Subchapter G, Part
121, 135, 139 or 141 of the Code of Federal Regulations or the Civil Aeronautics Board
pursuant to Title 14, Chapter II, Subchapter A, Parts 201 to 208, inclusive, and 298 of
the Code of Federal Regulations, as such regulations may hereafter be amended or
reclassified.
(23) "Aircraft" means aircraft, as the term is defined in section 15-34.
(24) "Vessel" means vessel, as the term is defined in section 15-127.
(25) "Licensed marine dealer" means a marine dealer, as the term is defined in
section 15-141, who has been issued a marine dealer's certificate by the Commissioner
of Environmental Protection.
(26) (A) "Telecommunications service" means the electronic transmission, conveyance or routing of voice, image, data audio, video or any other information or signals
to a point or between or among points. "Telecommunications service" includes such
transmission, conveyance or routing in which computer processing applications are
used to act on the form, code or protocol of the content for purposes of transmission,
conveyance or routing without regard to whether such service is referred to as a voice
over Internet protocol service or is classified by the Federal Communications Commission as enhanced or value added. "Telecommunications service" does not include (i)
value-added nonvoice data services, (ii) radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance or routing of such services by the programming service provider. Radio and
television audio and video programming services shall include, but not be limited to,
cable service as defined in 47 USC 522(6), audio and video programming services
delivered by commercial mobile radio service providers, as defined in 47 CFR 20, and
video programming service by certified competitive video service providers, (iii) any
telecommunications service (I) rendered by a company in control of such service when
rendered for private use within its organization, or (II) used, allocated or distributed by
a company within its organization, including in such organization affiliates, as defined
in section 33-840, for the purpose of conducting business transactions of the organization
if such service is purchased or leased from a company rendering telecommunications
service and such purchase or lease is subject to tax under this chapter, (iv) access or
interconnection service purchased by a provider of telecommunications service from
another provider of such service for purposes of rendering such service, provided the
purchaser submits to the seller a certificate attesting to the applicability of this exclusion,
upon receipt of which the seller is relieved of any tax liability for such sale so long as
the certificate is taken in good faith by the seller, (v) data processing and information
services that allow data to be generated, acquired, stored, processed or retrieved and
delivered by an electronic transmission to a purchaser where such purchaser's primary
purpose for the underlying transaction is the processed data or information, (vi) installation or maintenance of wiring equipment on a customer's premises, (vii) tangible personal property, (viii) advertising, including, but not limited to, directory advertising,
(ix) billing and collection services provided to third parties, (x) Internet access service,
(xi) ancillary services, and (xii) digital products delivered electronically, including, but
not limited to, software, music, video, reading materials or ring tones.
(B) For purposes of the tax imposed under this chapter (i) gross receipts from the
rendering of telecommunications service shall include any subscriber line charge or
charges as required by the Federal Communications Commission and any charges for
access service collected by any person rendering such service unless otherwise excluded
from such gross receipts under this chapter, and such gross receipts from the rendering
of telecommunications service shall also include any charges for vertical service, for
the installation or maintenance of wiring equipment on a customer's premises, and for
directory assistance service; (ii) gross receipts from the rendering of telecommunications
service shall not include any local charge for calls from public or semipublic telephones;
and (iii) gross receipts from the rendering of telecommunications service shall not include any charge for calls purchased using a prepaid telephone calling service, as defined
in subdivision (34) of this subsection.
(27) "Community antenna television service" means (A) the one-way transmission
to subscribers of video programming or information by cable, fiber optics, satellite,
microwave or any other means, and subscriber interaction, if any, which is required for
the selection of such video programming or information, and (B) noncable communications service, as defined in section 16-1, unless such noncable communications service
is purchased by a cable network as that term is used in subsection (l) of section 12-218.
(28) "Hospital" means a hospital included within the definition of health care facilities or institutions under section 19a-630 and licensed as a short-term general hospital
by the Department of Public Health but, does not include (A) any hospital which, on
January 30, 1997, is within the class of hospitals licensed by the department as children's
general hospitals, or (B) a short-term acute hospital operated exclusively by the state
other than a short-term acute hospital operated by the state as a receiver pursuant to
chapter 920.
(29) "Patient care services" means therapeutic and diagnostic medical services provided by the hospital to inpatients and outpatients including tangible personal property
transferred in connection with such services.
(30) "Another state" or "other state" means any state of the United States or the
District of Columbia excluding the state of Connecticut.
(31) "Professional employer agreement" means a written contract between a professional employer organization and a service recipient whereby the professional employer
organization agrees to provide at least seventy-five per cent of the employees at the
service recipient's worksite, which contract provides that such worksite employees are
intended to be permanent employees rather than temporary employees, and employer
responsibilities for such worksite employees, including hiring, firing and disciplining,
are allocated between the professional employer organization and the service recipient.
(32) "Professional employer organization" means any person that enters into a professional employer agreement with a service recipient whereby the professional employer organization agrees to provide at least seventy-five per cent of the employees at
the service recipient's worksite.
(33) "Worksite employee" means an employee, the employer responsibilities for
which, including hiring, firing and disciplining, are allocated, under a professional employer agreement, between a professional employer organization and a service recipient.
(34) "Prepaid telephone calling service" means the right to exclusively purchase
telecommunications service, that must be paid for in advance and that enables the origination of calls using an access number or authorization code, or both, whether manually
or electronically dialed, provided the remaining amount of units of service that have
been prepaid shall be known on a continuous basis.
(35) "Canned or prewritten software" means all software, other than custom software, that is held or existing for general or repeated sale, license or lease. Software
initially developed as custom software for in-house use and subsequently sold, licensed
or leased to unrelated third parties shall be considered canned or prewritten software.
(36) "Custom software" means a computer program prepared to the special order
of a single customer.
(37) "Services" for purposes of subdivision (2) of this subsection, means:
(A) Computer and data processing services, including, but not limited to, time,
programming, code writing, modification of existing programs, feasibility studies and
installation and implementation of software programs and systems even where such
services are rendered in connection with the development, creation or production of
canned or custom software or the license of custom software, and exclusive of services
rendered in connection with the creation, development hosting or maintenance of all or
part of a web site which is part of the graphical, hypertext portion of the Internet, commonly referred to as the World Wide Web;
(B) Credit information and reporting services;
(C) Services by employment agencies and agencies providing personnel services;
(D) Private investigation, protection, patrol work, watchman and armored car services, exclusive of (i) services of off-duty police officers and off-duty firefighters, and
(ii) coin and currency services provided to a financial services company by or through
another financial services company. For purposes of this subparagraph, "financial services company" has the same meaning as provided under subparagraphs (A) to (H),
inclusive, of subdivision (6) of subsection (a) of section 12-218b;
(E) Painting and lettering services;
(F) Photographic studio services;
(G) Telephone answering services;
(H) Stenographic services;
(I) Services to industrial, commercial or income-producing real property, including,
but not limited to, such services as management, electrical, plumbing, painting and
carpentry and excluding any such services rendered in the voluntary evaluation, prevention, treatment, containment or removal of hazardous waste, as defined in section 22a-115, or other contaminants of air, water or soil, provided income-producing property
shall not include property used exclusively for residential purposes in which the owner
resides and which contains no more than three dwelling units, or a housing facility for
low and moderate income families and persons owned or operated by a nonprofit housing
organization, as defined in subdivision (29) of section 12-412;
(J) Business analysis, management, management consulting and public relations
services, excluding (i) any environmental consulting services, (ii) any training services
provided by an institution of higher education licensed or accredited by the Board of
Governors of Higher Education pursuant to section 10a-34, and (iii) on and after January
1, 1994, any business analysis, management, management consulting and public relations services when such services are rendered in connection with an aircraft leased or
owned by a certificated air carrier or in connection with an aircraft which has a maximum
certificated take-off weight of six thousand pounds or more;
(K) Services providing "piped-in" music to business or professional establishments;
(L) Flight instruction and chartering services by a certificated air carrier on an aircraft, the use of which for such purposes, but for the provisions of subdivision (4) of
section 12-410 and subdivision (12) of section 12-411, would be deemed a retail sale
and a taxable storage or use, respectively, of such aircraft by such carrier;
(M) Motor vehicle repair services, including any type of repair, painting or replacement related to the body or any of the operating parts of a motor vehicle;
(N) Motor vehicle parking, including the provision of space, other than metered
space, in a lot having thirty or more spaces, excluding (i) space in a seasonal parking
lot provided by a person who is exempt from taxation under this chapter pursuant to
subdivision (1), (5) or (8) of section 12-412, (ii) space in a parking lot owned or leased
under the terms of a lease of not less than ten years' duration and operated by an employer
for the exclusive use of its employees, (iii) valet parking provided at any airport, and
(iv) space in municipally-operated railroad parking facilities in municipalities located
within an area of the state designated as a severe nonattainment area for ozone under
the federal Clean Air Act or space in a railroad parking facility in a municipality located
within an area of the state designated as a severe nonattainment area for ozone under
the federal Clean Air Act owned or operated by the state on or after April 1, 2000;
(O) Radio or television repair services;
(P) Furniture reupholstering and repair services;
(Q) Repair services to any electrical or electronic device, including, but not limited
to, equipment used for purposes of refrigeration or air-conditioning;
(R) Lobbying or consulting services for purposes of representing the interests of a
client in relation to the functions of any governmental entity or instrumentality;
(S) Services of the agent of any person in relation to the sale of any item of tangible
personal property for such person, exclusive of the services of a consignee selling works
of art, as defined in subsection (b) of section 12-376c, or articles of clothing or footwear
intended to be worn on or about the human body other than (i) any special clothing
or footwear primarily designed for athletic activity or protective use and which is not
normally worn except when used for the athletic activity or protective use for which it
was designed, and (ii) 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 subdivision (47) of section 12-412, under consignment, exclusive of services provided by an auctioneer;
(T) Locksmith services;
(U) Advertising or public relations services, including layout, art direction, graphic
design, mechanical preparation or production supervision, not related to the development of media advertising or cooperative direct mail advertising;
(V) Landscaping and horticulture services;
(W) Window cleaning services;
(X) Maintenance services;
(Y) Janitorial services;
(Z) Exterminating services;
(AA) Swimming pool cleaning and maintenance services;
(BB) Miscellaneous personal services included in industry group 729 in the Standard Industrial Classification Manual, United States Office of Management and Budget,
1987 edition, or U.S. industry 532220, 812191, 812199 or 812990 in the North American
Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition, exclusive of (i) services rendered by massage therapists
licensed pursuant to chapter 384a, and (ii) services rendered by an electrologist licensed
pursuant to chapter 388;
(CC) Any repair or maintenance service to any item of tangible personal property
including any contract of warranty or service related to any such item;
(DD) Business analysis, management or managing consulting services rendered by
a general partner, or an affiliate thereof, to a limited partnership, provided (i) the general
partner, or an affiliate thereof, is compensated for the rendition of such services other
than through a distributive share of partnership profits or an annual percentage of partnership capital or assets established in the limited partnership's offering statement, and (ii)
the general partner, or an affiliate thereof, offers such services to others, including any
other partnership. As used in this subparagraph "an affiliate of a general partner" means
an entity which is directly or indirectly owned fifty per cent or more in common with
a general partner;
(EE) Notwithstanding the provisions of section 12-412, except subdivision (87) of
said section 12-412, patient care services, as defined in subdivision (29) of this subsection by a hospital, except that "sale" and "selling" does not include such patient care
services for which payment is received by the hospital during the period commencing
July 1, 2001, and ending June 30, 2003;
(FF) Health and athletic club services, exclusive of (i) any such services provided
without any additional charge which are included in any dues or initiation fees paid to
any such club, which dues or fees are subject to tax under section 12-543, (ii) any such
services provided by a municipality or an organization that is described in Section 501(c)
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 (iii) yoga instruction
provided at a yoga studio.
(38) "Media payroll services company" means a retailer whose principal business
activity is the management and payment of compensation, fringe benefits, workers'
compensation, payroll taxes or assessments to individuals providing services to an eligible production company pursuant to section 12-217jj.
(39) "Certified competitive video service" means video programming service provided through wireline facilities, a portion of which are located in the public right-of-way, without regard to delivery technology, including Internet protocol technology.
"Certified competitive video service" does not include any video programming provided
by a commercial mobile service provider, as defined in 47 USC 332(d); any video
programming provided as part of community antenna television service; any video programming provided as part of, and via, a service that enables users to access content,
information, electronic mail or other services over the Internet.
(40) "Directory assistance" means an ancillary service of providing telephone number information or address information.
(41) "Vertical service" means an ancillary service that is offered in connection with
one or more telecommunications services, offering advanced calling features that allow
customers to identify callers and to manage multiple calls and call connections, including
conference bridging services.
(b) Wherever in this chapter reference is made to the sale of tangible personal property or services, it shall be construed to include sales described in subdivision (2) of
subsection (a) of this section, except as may be specifically provided to the contrary.
(1949 Rev., S. 2091; June, 1955, S. 1162d; 1957, P.A. 472; September, 1957, P.A. 17, S. 1; March, 1958, P.A. 27, S.
19; 1959, P.A. 578, S. 1-9; February, 1965, P.A. 381, S. 1; 1971, P.A. 205; June, 1971, P.A. 8, S. 2; 1972, P.A. 267; P.A.
73-442, S. 6; P.A. 75-213, S. 15-22, 53; 75-567, S. 46, 67, 80; P.A. 76-114, S. 2, 21; 76-372, S. 1-3; P.A. 77-395, S. 1,
3; 77-604, S. 74, 75, 84; 77-614, S. 139, 610; P.A. 79-584, S. 1, 2; P.A. 82-48, S. 1, 2; P.A. 83-541, S. 1, 2; P.A. 84-507,
S. 2, 4; P.A. 85-240, S. 1, 2, 6; 85-513, S. 1, 3; P.A. 86-397, S. 7, 10; P.A. 87-1, S. 5, 7; 87-340, S. 1, 2; P.A. 88-6, S. 1,
2; P.A. 89-41, S. 1, 2, 6; 89-123, S. 1-3; 89-251, S. 1, 2, 203; P.A. 90-148, S. 31, 34; 90-186, S. 1, 3; 90-295, S. 1, 2, 5;
P.A. 91-132, S. 1, 2, 4; June Sp. Sess. P.A. 91-3, S. 103-108, 168; June Sp. Sess. P.A. 91-14, S. 26, 30; P.A. 92-184, S.
9-13, 19; 92-202, S. 4; May Sp. Sess. P.A. 92-17, S. 17-24, 59; P.A. 93-44, S. 1, 2, 20, 21, 24; 93-74, S. 17-21, 23, 24,
67; 93-332, S. 1, 7, 25, 26, 28; 93-381, S. 9, 39; 93-435, S. 59, 95; P.A. 94-9, S. 14, 15, 20, 41; 94-175, S. 22, 23, 25, 32;
May Sp. Sess. P.A. 94-4, S. 13-15, 80, 85; May 25 Sp. Sess. P.A. 94-1, S. 126, 127, 130; P.A. 95-79, S. 31, 189; 95-160,
S. 48, 49, 64, 69; 95-257, S. 12, 21, 58; P.A. 96-104, S. 2-4; 96-139, S. 12, 13; 96-165, S. 1, 2, 9; 96-222, S. 7, 41; 96-271, S. 159, 254; P.A. 97-2, S. 3, 8; 97-112, S. 2, 4; 97-243, S. 12-16, 67; 97-316, S. 6, 7, 11; P.A. 98-28, S. 116, 117; 98-110, S. 5, 27; 98-244, S. 15, 16, 35; Dec. Sp. Sess. P.A. 98-1, S. 29, 43; P.A. 99-173, S. 10-12, 65; 99-285, S. 10, 12; P.A.
00-170, S. 17, 18, 42; 00-174, S. 1-3, 69, 71-73, 83; 00-196, S. 3, 66; 00-227, S. 1; June Sp. Sess. P.A. 00-1, S. 27, 46;
P.A. 01-109, S. 2; June Sp. Sess. P.A. 01-6, S. 1, 85; P.A. 02-3, S. 1; 02-103, S. 1; May 9 Sp. Sess. P.A. 02-1, S. 65-68;
May 9 Sp. Sess. P.A. 02-4, S. 13-16; P.A. 03-2, S. 27; 03-278, S. 28, 29; June 30 Sp. Sess. P.A. 03-1, S. 97; P.A. 04-136,
S. 44; P.A. 05-109, S. 45, 46; 05-260, S. 5; P.A. 06-187, S. 81; P.A. 07-236, S. 7-9; 07-253, S. 30-32; June Sp. Sess. P.A.
07-5, S. 8.)
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