Substitute Senate Bill No. 1237
         Substitute Senate Bill No. 1237

              PUBLIC ACT NO. 97-316


AN  ACT  CONCERNING EXEMPTIONS AND EXCLUSIONS FROM
THE SALES AND USE TAX.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section 1. Subsection  (44)  of section 12-412
of the general  statutes, as amended by section 43
of  public  act   95-160,   is  repealed  and  the
following is substituted in lieu thereof:
    (44) (A) Sales  of  and  the  storage,  use or
other  consumption  of   any   filmed   and  taped
television and radio  programs  and  any materials
which become an  ingredient  or  component part of
films or tapes  which  are  used  directly  in the
production and transmission  of  finished programs
(i)  broadcast  to   the   general   public  by  a
television or radio  station  or  (ii)  used on or
after October 1,  1986, for purposes of accredited
medical  or  surgical   training,   including  any
equipment used for such purpose; [or] (B) sales of
and  the storage,  use,  rental,  lease  or  other
consumption  of  any   motion   picture  or  video
production equipment or  sound recording equipment
purchased or leased  for  use  in  this  state for
production activities which  become  an ingredient
or component part  of  any  master tapes, records,
video  tapes  or   film  produced  for  commercial
entertainment,    commercial    advertising     or
commercial educational purposes;  OR  (C) SALES OF
AND  THE  STORAGE,   USE,   RENTAL   OR  LEASE  OF
EQUIPMENT, INCLUDING, BUT NOT LIMITED TO, ANTENNAS
USED DIRECTLY IN  THE  PRODUCTION  OR BROADCAST OF
PROGRAMS TO THE  GENERAL PUBLIC BY A TELEVISION OR
RADIO STATION.
    Sec. 2. Section 12-412 of the general statutes
is amended by adding subsection (93) as follows:
    (NEW) (93) Sales of tangible personal property
or services to any tourism district, as defined in
section 32-302.
    Sec. 3. Section 12-412 of the general statutes
is amended by adding subsection (94) as follows:
    (NEW) (94) Sales of tangible personal property
by  nonprofit  organizations  at  bazaars,  fairs,
picnics, tag sales or similar events to the extent
of five such  events  of  a  day's  duration  held
during any calendar year.
    Sec. 4. Section 12-412 of the general statutes
is amended by  adding  subsections  (95)  to (98),
inclusive, as follows:
    (NEW) (95) The sales or use of any services or
tangible personal property to be incorporated into
or used or  otherwise consumed in the operation of
a  solid waste-to-energy  facility,  certified  as
approved for such  purpose  by the Commissioner of
Environmental Protection, whether  such  purchases
are made directly  by an authority or an operating
committee, or are  reimbursed  by  an authority or
operating committee to  the  lessee or operator of
such facility.
    (NEW) (96) Sales  of  vegetable seeds suitable
for   planting   to   produce   food   for   human
consumption.
    (NEW) (97) Any  sale of yarn for noncommercial
use made of natural or synthetic fibers.
    (NEW) (98) Sales of tangible personal property
by historical societies.
    Sec. 5. Section 32-23h of the general statutes
is repealed and  the  following  is substituted in
lieu thereof:
    The exercise of  the  powers  granted  by this
chapter, chapter 578 and subsection (a) of section
10-321  shall constitute  the  performance  of  an
essential governmental function  and the authority
shall  not  be   required  to  pay  any  taxes  or
assessments upon or  in  respect  of a project, or
any property or moneys of the authority, levied by
any  municipality  or   political  subdivision  or
special  district  having  taxing  powers  of  the
state, nor shall  the authority be required to pay
state taxes of  any  kind,  and the authority, its
projects, property and  moneys  and  any bonds and
notes issued under the provisions of said chapters
and  sections,  their   transfer  and  the  income
therefrom, including any  profit  made on the sale
thereof, shall at  all times be free from taxation
of every kind  by  the  state except for estate or
succession taxes and by the municipalities and all
other political subdivisions  or special districts
having taxing powers  of  the  state; provided any
person, leasing a project from the authority shall
pay  to  the   municipality   or  other  political
subdivision  or  special  district  having  taxing
powers,  in  which  such  project  is  located,  a
payment in lieu  of  taxes  which  shall equal the
taxes on real  and  personal  property,  including
water and sewer  assessments,  which  such  lessee
would have been  required  to  pay had it been the
owner of such property during the period for which
such payment is made and neither the authority nor
its projects, properties, money or bonds and notes
shall be obligated,  liable  or subject to lien of
any  kind  for   the  enforcement,  collection  or
payment thereof. THE  SALE  OF  TANGIBLE  PERSONAL
PROPERTY OR SERVICES  BY  THE  AUTHORITY IS EXEMPT
FROM THE SALES  TAX  UNDER  CHAPTER  219,  AND THE
STORAGE, USE OR OTHER CONSUMPTION IN THIS STATE OF
TANGIBLE PERSONAL PROPERTY  OR  SERVICES PURCHASED
FROM THE AUTHORITY  IS  EXEMPT  FROM  THE  USE TAX
UNDER  CHAPTER 219.  If  and  to  the  extent  the
proceedings under which the bonds authorized to be
issued under the  provisions  of said chapters and
sections so provide,  the  authority  may agree to
cooperate  with  the   lessee   of  a  project  in
connection  with any  administrative  or  judicial
proceedings for determining the validity or amount
of such payments  and  may  agree  to  appoint  or
designate and reserve  the  right  in and for such
lessee to take  all action which the authority may
lawfully take in  respect of such payments and all
matters  relating thereto,  provided  such  lessee
shall bear and  pay  all costs and expenses of the
authority thereby incurred  at the request of such
lessee or by  reason  of  any such action taken by
such lessee in behalf of the authority. Any lessee
of a project which has paid the amounts in lieu of
taxes required by  this  section  to be paid shall
not be required  to  pay any such taxes in which a
payment in lieu thereof has been made to the state
or to any  such  municipality  or  other political
subdivision  or  special  district  having  taxing
powers,  any  other   statute   to   the  contrary
notwithstanding. Any industrial  pollution control
facility financed under said chapters and sections
shall be subject  to  such  approvals,  as  may be
required by law,  of  any  agency of the state and
any   agency   of   the   United   States   having
jurisdiction in the  matter and, in the discretion
of the authority,  may be acquired, constructed or
improved as part  of  or  jointly with a pollution
control facility undertaken  by  a municipality or
political subdivision or  special  district having
taxing powers in  the  state  and the authority is
authorized to cooperate and execute contracts with
such a municipality  or  political  subdivision or
special district.
    Sec. 6. Subdivision  (2)  of section 12-407 of
the general statutes,  as amended by section 49 of
public act 95-160,  is  repealed and the following
is substituted in lieu thereof:
    (2) "Sale" and "selling" mean and include: (a)
Any  transfer  of   title,   exchange  or  barter,
conditional or otherwise,  in any manner or by any
means whatsoever, of  tangible  personal  property
for a consideration;  (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a point in  this  state  for  the  purpose  of the
transfer of title, exchange or barter, conditional
or  otherwise, in  any  manner  or  by  any  means
whatsoever, of the  property  for a consideration;
(c)   the  producing,   fabricating,   processing,
printing  or  imprinting   of   tangible  personal
property for a  consideration  for  consumers  who
furnish   either  directly   or   indirectly   the
materials  used  in  the  producing,  fabricating,
processing, printing or  imprinting, including but
not  limited  to,   computer   programming,   sign
construction,   photofinishing,  duplicating   and
photocopying; (d) the  furnishing and distributing
of tangible personal  property for a consideration
by social clubs  and  fraternal  organizations  to
their  members  or  others;  (e)  the  furnishing,
preparing, or serving for a consideration of food,
meals or drinks;  (f)  a  transaction  whereby the
possession  of property  is  transferred  but  the
seller  retains the  title  as  security  for  the
payment  of  the  price;  (g)  a  transfer  for  a
consideration of the  title  of  tangible personal
property which has  been  produced,  fabricated or
printed to the  special  order of the customer, or
of any publication,  including but not limited to,
computer    programming,    sign     construction,
photofinishing, duplicating and  photocopying; (h)
a transfer for a consideration of the occupancy of
any room or  rooms in a hotel or lodging house for
a period of  thirty  consecutive  calendar days or
less; (i) the  rendering of certain services for a
consideration, exclusive of such services rendered
by an employee  for  his employer, as follows: (A)
Computer and data  processing  services, including
but  not  limited   to,  time,  AND  EXCLUSIVE  OF
SERVICES RENDERED IN CONNECTION WITH THE CREATION,
DEVELOPMENT HOSTING OR  MAINTENANCE OF ALL OR PART
OF A WEB  SITE  WHICH  IS  PART  OF THE GRAPHICAL,
HYPERTEXT  PORTION  OF   THE   INTERNET,  COMMONLY
REFERRED TO AS  THE  WORLD  WIDE  WEB,  (B) credit
information and reporting  services,  (C) services
by  employment  agencies  and  agencies  providing
personnel  services,  (D)  private  investigation,
protection, patrol work,  watchman and armored car
services, exclusive of services of off-duty police
officers [at construction sites] AND OFF-DUTY FIRE
FIGHTERS, (E) painting and lettering services, (F)
photographic   studio  services,   (G)   telephone
answering services, (H) stenographic services, (I)
services    to    industrial,     commercial    or
income-producing real property,  including but not
limited   to,   such   services   as   management,
electrical, plumbing, painting  and  carpentry and
excluding  any  such   services  rendered  in  the
voluntary   evaluation,   prevention,   treatment,
containment  or removal  of  hazardous  waste,  as
defined in section  22a-115, or other contaminants
of air, water  or  soil, provided income-producing
property   shall   not   include   property   used
exclusively for residential  purposes in which the
owner resides and  which  contains  no  more  than
three dwelling units,  or  a  housing facility for
low and moderate income families and persons owned
by  an  organization  which  has  as  one  of  its
purposes the ownership  of  housing  for  low  and
moderate income families,  and  which organization
has been granted  exemption  from  federal  income
taxation,  (J)  business   analysis,   management,
management   consulting   and   public   relations
services, excluding any  environmental  consulting
services, (K) services  providing "piped-in" music
to business or  professional  establishments,  (L)
flight instruction and  chartering  services  by a
certificated air carrier  on  an aircraft, the use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12) of section  12-411,  would be deemed a retail
sale and a  taxable  storage or use, respectively,
of  such  aircraft  by  such  carrier,  (M)  motor
vehicle repair services,  including  any  type  of
repair, painting or  replacement  related  to  the
body or any  of  the  operating  parts  of a motor
vehicle, (N) motor  vehicle parking, including the
provision of space, other than metered space, in a
lot having thirty  or  more  spaces, excluding (i)
space in a  seasonal  parking  lot  provided  by a
person who is  exempt  from  taxation  under  this
chapter pursuant to  subsection (1), (5) or (8) of
section 12-412, (ii)  space in a parking lot owned
or leased under  the  terms of a lease of not less
than  ten  years   duration  and  operated  by  an
employer for the  exclusive  use of its employees,
(iii) valet parking  provided  at any airport, and
(iv)   space  in   municipally-operated   railroad
parking  facilities  in   municipalities   located
within an area of the state designated as a severe
nonattainment area for  ozone  under  the  federal
Clean Air Act,  (O)  radio  or  television  repair
services, (P) furniture  reupholstering and repair
services, (Q) repair services to any electrical or
electronic device, including  but  not limited to,
such equipment used  for purposes of refrigeration
or air-conditioning, (R)  lobbying  or  consulting
services   for  purposes   of   representing   the
interests of a client in relation to the functions
of any governmental entity or instrumentality, (S)
services of the agent of any person in relation to
the sale of any item of tangible personal property
for such person,  exclusive  of  the services of a
consignee selling works  of  art,  as  defined  in
subsection (b) of  section 12-376c, or articles of
clothing or footwear  intended  to  be  worn on or
about the human  body  other  than (i) any special
clothing  or  footwear   primarily   designed  for
athletic activity or  protective  use and which is
not  normally  worn   except  when  used  for  the
athletic activity or  protective  use for which it
was designed and  (ii) jewelry, handbags, luggage,
umbrellas,  wallets,  watches  and  similar  items
carried on or about the human body but not worn on
the body in  the manner characteristic of clothing
intended for exemption  under  subdivision (47) of
section 12-412, under  consignment,  exclusive  of
services provided by  an auctioneer, (T) locksmith
services,  (U)  advertising  or  public  relations
services, including layout, art direction, graphic
design,  mechanical  preparation   or   production
supervision, not related  to  the  development  of
media  advertising  or   cooperative  direct  mail
advertising,  (V)  landscaping   and  horticulture
services,  (W)  window   cleaning   services,  (X)
maintenance services, (Y) janitorial services, (Z)
exterminating   services,   (AA)   swimming   pool
cleaning and maintenance services, (BB) renovation
and  repair  services   as   set   forth  in  this
subparagraph, to other than industrial, commercial
or income-producing real  property:  Paving of any
sort, painting or staining, wallpapering, roofing,
siding  and  exterior   sheet   metal  work,  (CC)
miscellaneous   personal  services   included   in
industry  group 729  in  the  Standard  Industrial
Classification  Manual, United  States  Office  of
Management and Budget,  1987 edition, exclusive of
(i)  services  rendered   by   massage  therapists
licensed  pursuant  to   chapter  384a,  and  (ii)
services rendered by  a hypertrichologist licensed
pursuant  to  chapter  388,  (DD)  any  repair  or
maintenance  service  to   any  item  of  tangible
personal  property  including   any   contract  of
warranty or service related to any such item; (EE)
business   analysis,   management    or   managing
consulting services rendered by a general partner,
or an affiliate thereof, to a limited partnership,
provided  (i) that  the  general  partner,  or  an
affiliate   thereof,  is   compensated   for   the
rendition of such  services  other  than through a
distributive share of  partnership  profits  or an
annual percentage of partnership capital or assets
established in the  limited partnership's offering
statement, and (ii)  the  general  partner,  or an
affiliate thereof, offers such services to others,
including  any  other   partnership.  As  used  in
subparagraph (EE)(i) "an  affiliate  of  a general
partner" means an  entity  which  is  directly  or
indirectly owned fifty  per cent or more in common
with a general  partner;  and (FF) notwithstanding
the   provisions   of   section   12-412,   except
subsection (87) thereof, patient care services, as
defined in subsection  (30)  of  this section by a
hospital; (j) the  leasing  or  rental of tangible
personal   property  of   any   kind   whatsoever,
including  but not  limited  to,  motor  vehicles,
linen or towels,  machinery  or  apparatus, office
equipment and data  processing equipment, provided
for  purposes  of   this   subdivision   and   the
application of sales  and  use tax to contracts of
lease or rental of tangible personal property, the
leasing or rental  of  any  motion picture film by
the owner or  operator of a motion picture theater
for purposes of  display at such theater shall not
constitute  a sale  within  the  meaning  of  this
subsection;     (k)     the      rendering      of
telecommunications   service,   as    defined   in
subsection   (26)   of   this   section,   for   a
consideration  on  or   after   January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee  for  his   employer,   subject   to  the
provisions related to  telecommunications  service
in  accordance  with   section  12-407a;  (l)  the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a  consideration on  or  after  January  1,  1990,
exclusive  of any  such  service  rendered  by  an
employee for his  employer;  (m)  the transfer for
consideration of space  or  the  right  to use any
space for the purpose of storage or mooring of any
noncommercial  vessel, exclusive  of  dry  or  wet
storage  or mooring  of  such  vessel  during  the
period commencing on  the first day of November in
any year to  and  including  the  thirtieth day of
April of the  next  succeeding  year.  Wherever in
this chapter reference  is  made  to  the  sale of
tangible personal property  or  services, it shall
be construed to  include  sales  described in this
subsection, except as may be specifically provided
to the contrary.
    Sec. 7. Subdivisions  (8)  and  (9) of section
12-407 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (8) "Sales price"  means  the total amount for
which  tangible personal  property  is  sold,  the
total amount of rent received for occupancy or the
total amount received  for any service rendered on
or after July  1,  1975,  or  the  total amount of
payment or periodic  payments received for leasing
or rental of  tangible  personal  property for the
term of any  such  lease or rental occurring on or
after July 1,  1975, valued in money, whether paid
in money or  otherwise,  without  any deduction on
account of any  of  the following: (a) The cost of
the property sold; (b) the cost of materials used,
labor or service cost, interest charged, losses or
any other expenses;  (c) for any sale occurring on
or after July  1,  1993, any charges by the seller
to  the  purchaser   for   shipping  or  delivery,
notwithstanding   whether   such    charges    are
separately stated in  a  written contract, or on a
bill or invoice  rendered  to  such  purchaser  or
whether such shipping  or  delivery is provided by
the seller or  a  third  party.  The provisions of
subdivision (c) of this subsection shall not apply
to  any item  exempt  from  taxation  pursuant  to
section 12-412. Such  total amounts include all of
the following: (a) Any services that are a part of
the sale; (b) any amount for which credit is given
to  the  purchaser   by   the   seller;   (c)  all
compensation and all  employment-related expenses,
whether or not  separately  stated,  paid to or on
behalf of employees  of  a retailer of any service
described in subdivision  (i) of subsection (2) of
this section. "Sales  price"  does not include any
of the following:  (a)  Cash discounts allowed and
taken on sales;  (b)  any  portion  of  the amount
charged for property  returned by customers, which
upon  rescission  of   the  contract  of  sale  is
refunded either in  cash  or  credit, provided the
property is returned  within  ninety days from the
date of purchase;  (c)  the amount of any tax, not
including any manufacturers'  or importers' excise
tax, imposed by  the  United  States  upon or with
respect to retail  sales  whether imposed upon the
retailer or the  consumer;  (d) the amount charged
for labor rendered  in  installing or applying the
property sold, provided  such charge is separately
stated  and  exclusive  of  such  charge  for  any
service   rendered   within    the    purview   of
subparagraph (I) of  subdivision (i) of subsection
(2) of this  section;  (e)  the amount charged for
separately stated compensation,  fringe  benefits,
workers'  compensation  and   payroll   taxes   or
assessments paid to or on behalf of employees of a
retailer who has  contracted  to  manage a service
recipient's  property  or  business  premises  and
renders   management   services    described    in
subdivision (i) of subsection (2) of this section,
provided (A) the  employees  perform such services
solely for the  service  recipient at its property
or business premises  and  (B) "sales price" shall
include the separately stated compensation, fringe
benefits, workers' compensation  and payroll taxes
or  assessments  paid  to  or  on  behalf  of  any
employee  of  the  retailer  who  is  an  officer,
director or owner  of  more  than five per cent of
the outstanding capital  stock  of  the  retailer.
Determination   whether   an   employee   performs
services solely for  a  service  recipient  at its
property or business premises for purposes of this
subdivision shall be  made  by  reference  to such
employee's  activities  during   the  time  period
beginning on the  later of the commencement of the
management contract, the  date  of  the employee's
first employment by the retailer or the date which
is six months  immediately  preceding  the date of
such determination; and (f) the amount charged for
separately stated compensation,  fringe  benefits,
workers'  compensation  and   payroll   taxes   or
assessments paid to  or on behalf of [an] A LEASED
employee.  [, as  defined  as  a  leased  employee
pursuant to Section 414(n) of the Internal Revenue
Code  of 1986,  or  any  subsequent  corresponding
internal  revenue  code   of  the  United  States,
provided a leased  employee  shall  not include an
employee who is  hired by a temporary help service
and  assigned  to   support   or   supplement  the
workforce of a  temporary  help  service's client]
FOR PURPOSES OF  THIS  SUBPARAGRAPH,  AN  EMPLOYEE
SHALL BE TREATED  AS  A LEASED EMPLOYEE IF (1) THE
EMPLOYEE  IS  PROVIDED   TO   THE  CLIENT  AT  THE
COMMENCEMENT  OF AN  AGREEMENT  WITH  AN  EMPLOYEE
LEASING   ORGANIZATION  UNDER   WHICH   AT   LEAST
SEVENTY-FIVE PER CENT OF THE EMPLOYEES PROVIDED TO
THE CLIENT AT  THE  COMMENCEMENT  OF  SUCH INITIAL
AGREEMENT QUALIFY AS  LEASED EMPLOYEES PURSUANT TO
SECTION 414(n) OF  THE  INTERNAL  REVENUE  CODE OF
1986,  OR ANY  SUBSEQUENT  CORRESPONDING  INTERNAL
REVENUE CODE OF THE UNITED STATES, AS FROM TIME TO
TIME AMENDED, OR  (2) THE EMPLOYEE IS ADDED TO THE
CLIENT'S  WORKFORCE  BY   THE   EMPLOYEE   LEASING
ORGANIZATION  SUBSEQUENT TO  THE  COMMENCEMENT  OF
SUCH INITIAL AGREEMENT  AND  QUALIFIES AS A LEASED
EMPLOYEE  PURSUANT  TO   SECTION  414(n)  OF  SAID
INTERNAL REVENUE CODE  OF  1986  WITHOUT REGARD TO
SUBPARAGRAPH  (B)  OF  PARAGRAPH  (2)  THEREOF.  A
LEASED EMPLOYEE SHALL NOT INCLUDE ANY EMPLOYEE WHO
IS HIRED BY  A TEMPORARY HELP SERVICE AND ASSIGNED
TO  SUPPORT  OR  SUPPLEMENT  THE  WORKFORCE  OF  A
TEMPORARY HELP SERVICE'S CLIENT.
    (9) "Gross receipts" means the total amount of
the sales price, of the retail sales of retailers,
or the total  amount  of  the  rent  received  for
occupancy or the  total  amount  received  for any
service rendered on  or after July 1, 1975, or the
total  amount  of  payment  or  periodic  payments
received  for  leasing   or   rental  of  tangible
personal property for  the  term of any such lease
or rental occurring  on  or  after  July  1, 1975,
valued in money,  whether  received  in  money  or
otherwise, without any deduction on account of any
of the following:  (a)  The  cost  of the property
sold; however, in accordance with such regulations
as  the  Commissioner   of  Revenue  Services  may
prescribe,  a  deduction   may  be  taken  if  the
retailer has purchased  property  for  some  other
purpose than resale, has reimbursed his vendor for
tax which the  vendor  is  required  to pay to the
state or has  paid the use tax with respect to the
property, and has  resold  the  property  prior to
making  any  use   of   the  property  other  than
retention, demonstration or  display while holding
it for sale  in the regular course of business. If
such a deduction  is  taken  by  the  retailer, no
refund or credit  will  be  allowed  to his vendor
with respect to  the sale of the property; (b) the
cost of the materials used, labor or service cost,
interest paid, losses  or  any  other expense; (c)
for any sale  occurring  on or after July 1, 1993,
any charges by  the  seller  to  the purchaser for
shipping or delivery, notwithstanding whether such
charges  are  separately  stated  in  the  written
contract, or on a bill or invoice rendered to such
purchaser or whether  such shipping or delivery is
provided by the  seller  or  a  third  party.  The
provisions of subdivision  (c)  of this subsection
shall not apply  to  any item exempt from taxation
pursuant to section  12-412.  The  total amount of
the sales price includes all of the following: (a)
Any services that  are a part of the sale; (b) all
receipts, cash, credits  and property of any kind;
(c) any amount  for which credit is allowed by the
seller to the  purchaser; (d) all compensation and
all employment-related expenses,  whether  or  not
separately  stated,  paid   to  or  on  behalf  of
employees of a  retailer  of any service described
in  subdivision (i)  of  subsection  (2)  of  this
section. "Gross receipts"  do  not  include any of
the  following: (a)  Cash  discounts  allowed  and
taken on sales; (b) any portion of the sales price
of  property returned  by  customers,  which  upon
rescission of the  contract  of  sale  is refunded
either in cash or credit, provided the property is
returned within ninety days from the date of sale;
(c) the amount  of  any  tax,  not  including  any
manufacturers' or importers'  excise  tax, imposed
by the United  States  upon  or  with  respect  to
retail sales whether  imposed upon the retailer or
the consumer; (d)  the  amount  charged  for labor
rendered in installing  or  applying  the property
sold, provided such  charge  is  separately stated
and  exclusive of  such  charge  for  any  service
rendered within the purview of subparagraph (I) of
subdivision (i) of subsection (2) of this section;
(e)  the  amount  charged  for  separately  stated
compensation,     fringe    benefits,     workers'
compensation and payroll taxes or assessments paid
to or on behalf of employees of a retailer who has
contracted  to  manage   a   service   recipient's
property   or  business   premises   and   renders
management services described  in  subdivision (i)
of subsection (2)  of  this  section, provided (A)
the employees perform such services solely for the
service  recipient at  its  property  or  business
premises and (B)  "gross  receipts"  shall include
the   separately   stated   compensation,   fringe
benefits, workers' compensation  and payroll taxes
or  assessments  paid  to  or  on  behalf  of  any
employee  of  the  retailer  who  is  an  officer,
director or owner  of  more  than five per cent of
the outstanding capital  stock  of  the  retailer.
Determination   whether   an   employee   performs
services solely for  a  service  recipient  at its
property or business premises for purposes of this
subdivision shall be  made  by  reference  to such
employee's  activities  during   the  time  period
beginning on the  later of the commencement of the
management contract, the  date  of  the employee's
first employment by the retailer or the date which
is six months  immediately  preceding  the date of
such determination; and (f) the amount charged for
separately stated compensation,  fringe  benefits,
workers'  compensation  and   payroll   taxes   or
assessments paid to  or on behalf of [an] A LEASED
employee.  [, as  defined  as  a  leased  employee
pursuant to Section 414(n) of the Internal Revenue
Code  of 1986,  or  any  subsequent  corresponding
internal  revenue  code   of  the  United  States,
provided a leased  employee  shall  not include an
employee who is  hired by a temporary help service
and  assigned  to   support   or   supplement  the
workforce of a  temporary  help  service's client]
FOR PURPOSES OF  THIS  SUBPARAGRAPH,  AN  EMPLOYEE
SHALL BE TREATED  AS  A LEASED EMPLOYEE IF (1) THE
EMPLOYEE  IS  PROVIDED   TO   THE  CLIENT  AT  THE
COMMENCEMENT  OF AN  AGREEMENT  WITH  AN  EMPLOYEE
LEASING   ORGANIZATION  UNDER   WHICH   AT   LEAST
SEVENTY-FIVE PER CENT OF THE EMPLOYEES PROVIDED TO
THE CLIENT AT  THE  COMMENCEMENT  OF  SUCH INITIAL
AGREEMENT QUALIFY AS  LEASED EMPLOYEES PURSUANT TO
SECTION 414(n) OF  THE  INTERNAL  REVENUE  CODE OF
1986,  OR ANY  SUBSEQUENT  CORRESPONDING  INTERNAL
REVENUE CODE OF THE UNITED STATES, AS FROM TIME TO
TIME AMENDED, OR  (2) THE EMPLOYEE IS ADDED TO THE
CLIENT'S  WORKFORCE  BY   THE   EMPLOYEE   LEASING
ORGANIZATION  SUBSEQUENT TO  THE  COMMENCEMENT  OF
SUCH INITIAL AGREEMENT  AND  QUALIFIES AS A LEASED
EMPLOYEE  PURSUANT  TO   SECTION  414(n)  OF  SAID
INTERNAL REVENUE CODE  OF  1986  WITHOUT REGARD TO
SUBPARAGRAPH  (B)  OF  PARAGRAPH  (2)  THEREOF.  A
LEASED EMPLOYEE SHALL NOT INCLUDE ANY EMPLOYEE WHO
IS HIRED BY  A TEMPORARY HELP SERVICE AND ASSIGNED
TO  SUPPORT  OR  SUPPLEMENT  THE  WORKFORCE  OF  A
TEMPORARY HELP SERVICE'S CLIENT.
    Sec. 8. Subsection  (19)  of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (19) Sales of  and  the  storage, use or other
consumption of (A)  oxygen,  blood or blood plasma
when sold for  medical  use  in humans or animals;
(B)  artificial  devices   individually  designed,
constructed or altered  solely  for  the  use of a
particular handicapped person  so  as  to become a
brace,   support,   supplement,    correction   or
substitute for the bodily structure, including the
extremities of the individual, and repair services
rendered   to   property    described    in   this
subparagraph;  (C)  artificial  limbs,  artificial
eyes and other  equipment  worn as a correction or
substitute  for any  functioning  portion  of  the
body, custom-made wigs  or  hairpieces for persons
with medically diagnosed  total and permanent hair
loss as a  result  of  disease or the treatment of
disease, and artificial hearing aids when designed
to be worn on the person of the owner or user, and
repair services rendered  to property described in
this subparagraph; (D) crutches, walkers and wheel
chairs for the  use  of  invalids  and handicapped
persons, and repair  services rendered on or after
January 1, 1991,  to  property  described  in this
subparagraph; and any equipment used in support of
or  to  supply  vital  life  functions,  including
oxygen  supply  equipment   USED   FOR  HUMANS  OR
ANIMALS, kidney dialysis  machines  and  any other
such device used  in  necessary  support  of vital
life functions, and  apnea  monitors,  and  repair
services rendered to  property  described  in this
subparagraph. As used in this subdivision, "repair
services" means services  that  are  described  in
subparagraph (Q) or  (EE)  of  subdivision  (i) of
subsection (2) of section 12-407.
    Sec. 9. Subsections  (76)  and (77) of section
12-412 of the  general  statutes  are repealed and
the following is substituted in lieu thereof:
    (76) [On and  after July 1, 1993, sales] SALES
of and the  storage,  use  or other consumption of
repair or replacement  parts  exclusively  for use
(A)  (i)  in   aircraft   owned  or  leased  by  a
certificated  air  carrier  OR  (ii)  IN  AIRCRAFT
HAVING A MAXIMUM  CERTIFICATED  TAKEOFF  WEIGHT OF
SIX  THOUSAND  POUNDS   OR  MORE  or  (B)  in  the
significant overhauling or  rebuilding of aircraft
or  aircraft parts  or  components  on  a  factory
basis.
    (77) [On or  after  July 1, 1993, sales] SALES
of aircraft repair services when such services are
rendered in connection with (A) (i) aircraft owned
or leased by  a  certificated  air carrier OR (ii)
AIRCRAFT  HAVING A  MAXIMUM  CERTIFICATED  TAKEOFF
WEIGHT OF SIX  THOUSAND  POUNDS  OR MORE or [with]
(B) the significant  overhauling  or rebuilding of
aircraft or aircraft  parts  or  components  on  a
factory basis.
    Sec.  10.  Section   12-412   of  the  general
statutes is amended  by  adding subsection (99) as
follows:
    (NEW) (99) Sales  of  and  the storage, use or
other consumption of,  aircraft  having  a maximum
certificated takeoff weight of six thousand pounds
or more. "Certificated  takeoff  weight" means the
maximum  such  weight   contained   in   the  type
certificate or airworthiness certificate.
    Sec. 11. This  act  shall take effect from its
passage except that  section 2 shall be applicable
to sales occurring  on  or  after  May  28,  1996,
section 3 shall  be  applicable to sales occurring
on or after  June  1, 1997, sections 1 and 4 to 8,
inclusive, shall be  applicable to sales occurring
on or after  July  1,  1997, and sections 9 and 10
shall be applicable to sales occurring on or after
October 1, 1997.

Approved July 10, 1997