A: If the warranty contract covers a roof on existing commercial, industrial, or income producing real property, any charge for services to repair the roof is subject to sales and use taxes under Conn. Gen. Stat. §12-407(a)(37)(I). See the following examples:
- A warrantor performs services to a roof under a warranty contract, and does not purchase the services from a subcontractor or charge the property owner an additional amount. In this case, the services are not taxable.
- A warrantor hires a subcontractor to perform repairs to the roof. In this case, the roofing warrantor is the consumer of the service and pays tax to the subcontractor.
If the warrantor bills an amount to the property owner for servicing the roof that is not covered under the warranty contract, such as a deductible or an amount over a maximum coverage contained in the warranty contract, this amount is taxable when the services are performed on existing commercial, industrial or income-producing real property.
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.