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Property is taxable, this exempts the service charge for new construction (since such property is not existing). NOTE: On new construction, materials are still subject to sales tax on purchase by the contractor. 220e The construction of an entirely new building is exempt.
Maintenance of computer software is a computer and data processing service taxable at the 1% rate, whether the software is prewritten or custom.
Section 12-407(2)(i)(F) of the Connecticut General Statutes imposes the sales and use tax on "architectural, building engineering and design services" without regard to the type of building which is designed.
Are services subject to sales tax in Connecticut? "Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Connecticut, specified services are taxable.
Connecticut law imposes a 6.35% sales tax on all retail sales and certain business and professional services (CGS § 12-408). Business and professional services in Connecticut are presumed to be exempt from the state's sales tax unless specifically identified as taxable by state law.
A contractor's labor is not subject to sales or use tax if performed in conjunction with new construction (with some exceptions), owner-occupied residential property (with some exceptions. Overall, from a sales tax compliance perspective, Connecticut is a fairly easy state in which to comply.
Several exemptions are certain types of safety gear, some types of groceries, certain types of clothing, children's car seats, children's bicycle helmets, college textbooks, compact fluorescent light bulbs, most types of medical equipment, and certain motor vehicles.