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This information is not current and is being provided for reference purposes only

Ruling 89-148

Renovations

This Ruling has been obsoleted by AN 94(4)


Situation 1 involves the excavation of the ground level of an existing building, the lowering of the building's foundation and the construction of a new concrete footing. This new construction is necessary for the addition of a new complete floor of leasable retail square footage in the building. (The ground level is currently used for storage and loading areas for trucks.) As this type of construction would be an expansion of a building below its existing foundation, it would be new construction.

Situation 2 involves the lowering of the parking lot in certain areas adjacent to the building so that visitors to the building will have access to the new ground level floor (as described in Situation 1).

Situation 2 is considered to be renovation to existing commercial, industrial or income-producing real property.

Situation 3 involves the reconfiguration of the roadways near the building to permit access to the new ground floor level.

In situation 3, the reconfiguration of an existing roadway is a renovation to the real estate. However, building a new roadway or an expansion area of an existing roadway would be considered new construction.

Situation 4 involves the removal of part of the building's existing roof and joints and the construction of a new roof and skylights approximately nine feet higher than the existing roof. The result of this new construction will be the addition of new square footage inside the building.

Situation 5 involves the construction of a new partial floor in the area of the existing building where the roof will be raised (as described in item number 4 above). This new additional square footage will be leased or used as new common areas.

In situations 4 and 5, the removal of the existing roof and joints and the installation of the new partial floor in the area of the existing building where the roof was located are renovations to the real estate. The construction performed within the approximately nine feet higher area would generally be deemed new construction.

Situation 6 involves the addition of a new building which will be connected to the existing building.

In situation 6, the addition of a new building that will be connected to the existing building is considered to be new construction.

Situation 7 involves the demolition of part of the existing building so that the new addition (as described in Situation 6 above) may be connected to the existing building and the reconstruction of new leasable square footage in an area where there will be a walkway to the new addition.

In situation 7, demolition in connection with new construction is not subject to tax as long as the demolition is part of the contract for the new construction. In all other instances involving existing industrial, commercial and income-producing property, demolition is subject to sales tax pursuant to section 12-407(2)(i)(I) of the Connecticut General Statutes and section 12-426-26(b) of the Regulations of Connecticut State Agencies.

LEGAL DIVISION

October 12, 1989