A: The sale of a warranty contract that covers materials and/or labor to service a roof is not taxable, regardless of whether the warranty contract covers new construction, existing residential property, or existing commercial, industrial or income-producing real property. If sold with the installation of a roof, the price for the roof and for the warranty contract must be separately stated, and the price of the warranty must be reasonable and in line with industry-standard pricing.
This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services. It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS). However, it is not intended to serve as a legal ruling.