Connecticut Administrative Code › Title 12 - Taxation › 407(2)(i)(DD) - Enumerated Services › Section 12-407(2)(i)(DD)-1 - Repair or maintenance services to tangible personal property and contracts of maintenance, repair or warranty

Current through July 10, 2024
(a)
Definitions.
(1) The term
			 "repair" means to mend or bring back to working order or operating condition an
			 item of tangible personal property that is broken, damaged, malfunctioning or
			 defective. The term "repair" does not include the service of installing new
			 parts or accessories that are not replacements for existing parts or
			 accessories.
(2)
(A) The term "maintenance" means to sustain
			 or maintain safe, efficient or continuous operation of tangible personal
			 property, or to keep tangible personal property in good working order by
			 preventing its decline, failure, lapse or deterioration. Some examples of
			 maintenance include cleaning, oiling, sharpening or polishing tangible personal
			 property.
(B) Because car washing
			 services were separately enumerated as taxable services under subparagraph (N)
			 of section
			 12-407(2)(i)
			 of the general statutes until the repeal of the tax on such services by 1993
			 Conn. Pub. Acts 74, § 23, the term "maintenance" excludes the washing of
			 motor vehicles as defined in section
			 14-1(a)(47)
			 of the general statutes, as from time to time amended. However, the term
			 "maintenance" does include the washing of other types of vehicles not
			 considered "motor vehicles" under said section
			 14-1(a)(47).
(C) Dry cleaning, laundry and tailoring
			 services are not considered repair or maintenance services to tangible personal
			 property as described in this section.
(3) The term "maintenance contract" means a
			 contract that provides for maintenance service to be performed on an item of
			 tangible personal property in the future. Maintenance service is not contingent
			 upon the malfunctioning of the tangible personal property covered under the
			 contract. Gross receipts from the sale of maintenance contracts are
			 taxable.
(4) The term "repair
			 contract" means a contract that provides for repair service to be performed on
			 an item of tangible personal property which is broken, damaged, defective or
			 malfunctioning at the time the parties enter into the contract. Gross receipts
			 from the sale of repair contracts are taxable.
(5) The term "warranty (or guarantee)
			 contract" means a contract that provides for repair service only in the event
			 of a future malfunctioning of an item of tangible personal property. Gross
			 receipts from the sale of warranty contracts are taxable.
(6) The term "integral part" means a part,
			 such as a spring, gear or lens used in photocopier repair, heels or soles used
			 in shoe repair, or chains used in repairing bicycles, that retains its separate
			 identity even after being incorporated into property undergoing repair or
			 maintenance. The term "integral part" does not include a material, such as
			 lubricant, stain, paint, varnish, polish, wire, solder or glue, that does not
			 retain its separate identity after being used to repair or maintain tangible
			 personal property but is consumed by such service provider in rendering
			 maintenance or repair services.