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)
