Stay up to date with sales tax: Join our mailing list!


Connecticut's Department of Revenue Services has released a bulletin (IP 2004(11)) describing the department's managed audit agreement, managed compliance agreement, and direct payment permit programs. Information included in the bulletin includes criteria for who qualifies for the programs, benefits, procedures, and other important details for each of the programs. The bulletin and other valuable information can be found at www.ct.gov/DRS. (Connecticut Department of Revenue Services, IP 2004(11), April 23, 2004)

(05/15/2004)

Connecticut's Department of Revenue Services has released a bulletin (IP 2004(11)) describing the department's managed audit agreement, managed compliance agreement, and direct payment permit programs. Information included in the bulletin includes criteria for who qualifies for the programs, benefits, procedures, and other important details for each of the programs. The bulletin and other valuable information can be found at www.ct.gov/DRS. (Connecticut Department of Revenue Services, IP 2004(11), April 23, 2004)

(05/15/2004)

The policy statement makes it clear that exempt entities must follow specific guidelines and submit the proper information to the Connecticut Department of Revenue Services at least three weeks in advance to purchase meals and lodging tax exempt for a specific event. It is also possible that the department will issue a blanket exemption certificate to certain exempt organizations. The policy statement also outlines the procedures for specific exempt organizations that are allowed to purchase meals and then resell them tax exempt at up to five events per year. (Policy Statement 2003(4), January 13, 2004.)

(04/15/2004)

Dell Catalog Sales has a service repair contract with BancTec USA, Inc, an unrelated computer repair company. Under the contract BancTec will perform onsite repairs for Dell Catalog Sales consumers when computer issues can not be resolved by Dell Catalog's technical support department over the phone and the customer has previously purchased a Dell service contract. Dell Catalog Sales does not have any physical presence in Connecticut. They sell computers by advertising through national media and they only accept orders in Texas placed by telephone, facsimile, mail, email, or through the internet. All Dell Catalog Sales deliveries are made through common carrier. The argument against Dell Catalog Sales was that BancTec was acting as a representative of Dell to service Dell computers. However, it was agreed that Dell had no direct control over BancTec operations. It was ruled that BancTec performed a minimal number of on-site calls based on the revenue allocations for all Dell customer service contracts. (Dell earned 90% and BancTec earned 10%) As a result, it was ruled Dell Catalog Sales does not have more than a slight presence in Connecticut and this is below the threshold necessary to establish nexus in the state. Dell Catalog Sales agrees that sales of service contracts by BancTec to Connecticut customers are taxable. (Connecticut Superior Court, Dell Catalog Sales v. Commissioner of Revenue Services., July 10, 2003.)

(12/15/2003)

During the week of Sunday, August 17, 2003 through Saturday, August 23, 2003 clothing and footwear generally considered necessary for day-to-day activities and priced under $300 will be exempt from Connecticut sales and use tax. This replaces during the every-day exemption for these items when they cost less that $50 for the week. Items such as special clothing and footwear designed for athletics or protective use, jewelry, wallets, and umbrellas remain subject to tax. (Sales Tax Holiday, Department of Revenue Services, August 20, 2003)

(08/15/2003)

Pages

Scroll to Top