Connecticut State Department of Revenue Services

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Ruling 91-13

Repair Services

Ruling has been clarified by Ruling 94-4; obsoleted in part by AN 2000(8)

FACTS:

In manufacturing kitchen cabinets from wood products, Company uses round carbide-tipped saw blades in the manufacturing process for cutting and grooving various cabinet pieces for assembly. Because the saw blades wear out quickly, Company continually replaces them with new replacement blades or with blades which have been sent out to be retipped. The retipping process involves the removal of the worn carbide steel blade tips and the soldering on of the new replacement tips.

ISSUE:

Does the retipping of the saw blades constitute a repair service subject to sales and use taxes under Conn. Gen. Stat. §12-407(2)(i)(DD)?

RULING:

The retipping of the saw blades constitutes a taxable repair or maintenance service under Conn. Gen. Stat. §12-407(2)(i)(DD). This process merely refurbishes the saw, which is a tool, and does not constitute the purchase of a new replacement blade.

New replacement blades may be purchased exempt from sales and use taxes under Conn. Gen. Stat. §12-412(18) which exempts tools used directly in a manufacturing plant in the actual fabrication of the finished product to be sold.

LEGAL DIVISION

April 9, 1991