With boating season upon us, here’s a quick run-down of how Connecticut treats boats and boat-related services for sales tax purposes.
Boat sales: subject to 6.35% tax if the purchaser is a Connecticut resident. Nonresidents that do not have a home in Connecticut and do not register their boats here are exempt. So are boats docked in the state for less than 60 days.
Boat repair and maintenance: exempt if separately stated from other costs, but parts and materials are taxable.
Fabrication labor (i.e., labor to customize or assemble components onto a boat): exempt if separately stated from other costs, but parts and materials are taxable.
Contracts for boat maintenance, repair, and warranty: exempt, but parts and materials used to fulfill the contracts are taxable.
Boat brokerage services: exempt.
Boat mooring and storage services: taxable from June 1 through September 30; exempt from October 1 through May 31.
Sources: CGS §§ 12-412(60), 12-408(1)(E), 12- 411(1)(D), 12- 412(116), 12-407(2)(M); DRS Informational Publication 2006(12)