This Ruling has been superseded in part by SN 95(17)

Ruling 89-187

Engineering

Forensic engineering services that involve the inspections of pipes in existing commercial, industrial or income-producing buildings to determine the corrosion rate, estimate the remaining life of the piping systems and/or determine the effectiveness of water treatment programs are subject to sales and use tax.

Inspections of pipes performed in new construction or in one, two or three family, exclusively residential owner-occupied homes are not taxable.

The total gross receipts for forensic engineering services rendered whereby you conduct failure analysis and inspection services on industrial equipment are exempt from sales and use tax.

LEGAL DIVISION

October 31, 1989