The Connecticut State Supreme Court reversed the trial court’s ruling regarding the taxability of consulting services.

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)

Posted on April 15, 2001