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The Department of Revenue Services in Connecticut has created a spreadsheet program to assist taxpayers in tracking their use tax from mail order and internet purchases. (Press Release, Connecticut Department of Revenue, January 6, 2003.)


To qualify for this taxes, the storage space must be rented to store personal property. Rentals of entire buildings like warehouses are not affected by this notice. See the notice for all details. (Special Notice 2002 (9), Connecticut Department of Revenue Services, July 26, 2002)


A court case decided that a manufacturer did not have to use purchases directly in the manufacturing process in order to be allowed for exemption. The corporation only had to meet a three-prong test to determine if the materials, tools, machinery, fuel, and equipment qualified for Connecticut's aircraft manufacturing exemption. The test included the following requirements: that the goods in question be used or consumed by an aircraft manufacturer, that the manufacturer operate in a manufacturing facility located in Connecticut, and that the goods be used in such a facility. (Connecticut Superior Court, No. CV010509576S, No. CV010509577S, July 3, 2002)


The trial court held that consulting services did not constitute a taxable activity. However, the retroactive application of the amended statute clarified the terms "sale" and "selling" to include the installation and implementation of software programs and systems, even where such services are rendered in connection with the creation, development, or production of canned or custom software subjected the consulting company's services to sales and use tax. (Anderson Consulting LLP, Connecticut Supreme Court, SC 16296, March 27, 2001)


The Connecticut Supreme Court ruled that customized computer software was found to be considered a computer data processing service which is taxable in the state of Connecticut. (Connecticut Supreme Court, Anderson Consulting LLP v. Gavin, No. SC 16296 3/23/01)



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