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General Assembly Raised Bill No. 6406
January Session, 2021
LCO No. 2918
Referred to Committee on HIGHER EDUCATION AND
EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
AN ACT EXEMPTING WOR KFORCE DEVELOPMENT P ROGRAMS
FROM THE SALES TAX.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subdivision (37) of subsection (a) of section 12-407 of the 1
general statutes is repealed and the following is substituted in lieu 2
thereof (Effective January 1, 2022): 3
(37) "Services" for purposes of subdivision (2) of this subsection, 4
means: 5
(A) Computer and data processing services, including, but not 6
limited to, time, programming, code writing, modification of existing 7
programs, feasibility studies and installation and implementation of 8
software programs and systems even where such services are rendered 9
in connection with the development, creation or production of canned 10
or custom software or the license of custom software, but excluding 11
digital goods; 12
(B) Credit information and reporting services; 13 Raised Bill No. 6406
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(C) Services by employment agencies and agencies providing 14
personnel services; 15
(D) Private investigation, protection, patrol work, watchman and 16
armored car services, exclusive of (i) services of off-duty police officers 17
and off-duty firefighters, and (ii) coin and currency services provided to 18
a financial services company by or through another financial services 19
company. For purposes of this subparagraph, "financial services 20
company" has the same meaning as provided under subparagraphs (A) 21
to (H), inclusive, of subdivision (6) of subsection (a) of section 12-218b; 22
(E) Painting and lettering services; 23
(F) Photographic studio services; 24
(G) Telephone answering services; 25
(H) Stenographic services; 26
(I) Services to industrial, commercial or income-producing real 27
property, including, but not limited to, such services as management, 28
electrical, plumbing, painting and carpentry, provided income-29
producing property shall not include property used exclusively for 30
residential purposes in which the owner resides and which contains no 31
more than three dwelling units, or a housing facility for low and 32
moderate income families and persons owned or operated by a 33
nonprofit housing organization, as defined in subdivision (29) of section 34
12-412; 35
(J) Business analysis, management, management consulting and 36
public relations services, excluding (i) any environmental consulting 37
services, (ii) any workforce development or training services provided 38
by an institution of higher education licensed or accredited by the Board 39
of Regents for Higher Education or Office of Higher Education pursuant 40
to sections 10a-35a and 10a-34, respectively, or by a third party to an 41
employer for the development or training of the employees of such 42
employer, and (iii) on and after January 1, 1994, any business analysis, 43 Raised Bill No. 6406
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management, management consulting and public relations services 44
when such services are rendered in connection with an aircraft leased or 45
owned by a certificated air carrier or in connection with an aircraft 46
which has a maximum certificated take-off weight of six thousand 47
pounds or more; 48
(K) Services providing "piped-in" music to business or professional 49
establishments; 50
(L) Flight instruction and chartering services by a certificated air 51
carrier on an aircraft, the use of which for such purposes, but for the 52
provisions of subdivision (4) of section 12-410 and subdivision (12) of 53
section 12-411, would be deemed a retail sale and a taxable storage or 54
use, respectively, of such aircraft by such carrier; 55
(M) Motor vehicle repair services, including any type of repair, 56
painting or replacement related to the body or any of the operating parts 57
of a motor vehicle; 58
(N) Motor vehicle parking, excluding space in a parking lot owned or 59
leased under the terms of a lease of not less than ten years' duration and 60
operated by an employer for the exclusive use of its employees; 61
(O) Radio or television repair services; 62
(P) Furniture reupholstering and repair services; 63
(Q) Repair services to any electrical or electronic device, including, 64
but not limited to, equipment used for purposes of refrigeration or air-65
conditioning; 66
(R) Lobbying or consulting services for purposes of representing the 67
interests of a client in relation to the functions of any governmental 68
entity or instrumentality; 69
(S) Services of the agent of any person in relation to the sale of any 70
item of tangible personal property for such person, exclusive of the 71 Raised Bill No. 6406
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services of a consignee selling works of art, as defined in subsection (b) 72
of section 12-376c, or articles of clothing or footwear intended to be worn 73
on or about the human body other than (i) any special clothing or 74
footwear primarily designed for athletic activity or protective use and 75
which is not normally worn except when used for the athletic activity or 76
protective use for which it was designed, and (ii) jewelry, handbags, 77
luggage, umbrellas, wallets, watches and similar items carried on or 78
about the human body but not worn on the body, under consignment, 79
exclusive of services provided by an auctioneer; 80
(T) Locksmith services; 81
(U) Advertising or public relations services, including layout, art 82
direction, graphic design, mechanical preparation or production 83
supervision, not related to the development of media advertising or 84
cooperative direct mail advertising; 85
(V) Landscaping and horticulture services; 86
(W) Window cleaning services; 87
(X) Maintenance services; 88
(Y) Janitorial services; 89
(Z) Exterminating services; 90
(AA) Swimming pool cleaning and maintenance services; 91
(BB) Miscellaneous personal services included in industry group 729 92
in the Standard Industrial Classification Manual, United States Office of 93
Management and Budget, 1987 edition, or industry group 532220, 94
812191, 812199 or 812990 of the North American Industry Classification 95
System United States Manual, United States Office of Management and 96
Budget (NAICS), 1997 edition, exclusive of (i) services rendered by 97
massage therapists licensed pursuant to chapter 384a, and (ii) services 98
rendered by an electrologist licensed pursuant to chapter 388; 99 Raised Bill No. 6406
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(CC) Any repair or maintenance service to any item of tangible 100
personal property including any contract of warranty or service related 101
to any such item; 102
(DD) Business analysis, management or managing consulting 103
services rendered by a general partner, or an affiliate thereof, to a 104
limited partnership, provided (i) the general partner, or an affiliate 105
thereof, is compensated for the rendition of such services other than 106
through a distributive share of partnership profits or an annual 107
percentage of partnership capital or assets established in the limited 108
partnership's offering statement, and (ii) the general partner, or an 109
affiliate thereof, offers such services to others, including any other 110
partnership. As used in this subparagraph "an affiliate of a general 111
partner" means an entity which is directly or indirectly owned fifty per 112
cent or more in common with a general partner; 113
(EE) Notwithstanding the provisions of section 12-412, except 114
subdivision (87) of said section 12-412, patient care services, as defined 115
in subdivision (29) of this subsection by a hospital, except that "sale" and 116
"selling" does not include such patient care services for which payment 117
is received by the hospital during the period commencing July 1, 2001, 118
and ending June 30, 2003; 119
(FF) Health and athletic club services, exclusive of (i) any such 120
services provided without any additional charge which are included in 121
any dues or initiation fees paid to any such club, which dues or fees are 122
subject to tax under section 12-543, and (ii) any such services provided 123
by a municipality or an organization that is described in Section 501(c) 124
of the Internal Revenue Code of 1986, or any subsequent corresponding 125
internal revenue code of the United States, as amended from time to 126
time; 127
(GG) Motor vehicle storage services, including storage of motor 128
homes, campers and camp trailers, other than the furnishing of space as 129
described in subparagraph (P) of subdivision (2) of this subsection; 130 Raised Bill No. 6406
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(HH) Packing and crating services, other than those provided in 131
connection with the sale of tangible personal property by the retailer of 132
such property; 133
(II) Motor vehicle towing and road services, other than motor vehicle 134
repair services; 135
(JJ) Intrastate transportation services provided by livery services, 136
including limousines, community cars or vans, with a driver. Intrastate 137
transportation services shall not include transportation by taxicab, 138
motor bus, ambulance or ambulette, scheduled public transportation, 139
nonemergency medical transportation provided under the Medicaid 140
program, paratransit services provided by agreement or arrangement 141
with the state or any political subdivision of the state, dial-a-ride 142
services or services provided in connection with funerals; 143
(KK) Pet grooming and pet boarding services, except if such services 144
are provided as an integral part of professional veterinary services, and 145
pet obedience services; 146
(LL) Services in connection with a cosmetic medical procedure. For 147
purposes of this subparagraph, "cosmetic medical procedure" means 148
any medical procedure performed on an individual that is directed at 149
improving the individual's appearance and that does not meaningfully 150
promote the proper function of the body or prevent or treat illness or 151
disease. "Cosmetic medical procedure" includes, but is not limited to, 152
cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft 153
tissue fillers, dermabrasion and chemical peel, laser hair removal, laser 154
skin resurfacing, laser treatment of leg veins and sclerotherapy. 155
"Cosmetic medical procedure" does not include reconstructive surgery. 156
"Reconstructive surgery" includes any surgery performed on abnormal 157
structures caused by or related to congenital defects, developmental 158
abnormalities, trauma, infection, tumors or disease, including 159
procedures to improve function or give a more normal appearance; 160
(MM) Manicure services, pedicure services and all other nail services, 161 Raised Bill No. 6406
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regardless of where performed, including airbrushing, fills, full sets, nail 162
sculpting, paraffin treatments and polishes; 163
(NN) Spa services, regardless of where performed, including body 164
waxing and wraps, peels, scrubs and facials; 165
(OO) Car wash services, including coin-operated car washes; 166
(PP) Dry cleaning services and laundry services, excluding coin-167
operated services; 168
(QQ) Interior design services described in industry group 54141 of 169
the NAICS, 2017 edition, as amended from time to time. 170
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2022 12-407(a)(37)
HED Joint Favorable C/R FIN