State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
No rulings match these filters
Try a different search term or clear the filters.
Is a ferry company that runs New York City interborough routes under a city lease taxed under Article 9 (sections 183/184) or Article 9-A, and how are its ferry receipts allocated to New York?
It is taxed under Article 9-A, not sections 183/184. A ferry company operating between New York City boroughs under a lease granted by the city is exempt from both the section 183 franchise tax and th…
Does a Florida resident's ownership of out-of-state entities give their intangible property taxable situs in Florida?
None of them owed Florida intangible tax on the stated facts. The non-Florida businesses had no Florida business situs, and the corporation kept its ordinary executive, management, and operational fun…
How did South Carolina classify software, ASP access, and software-maintenance contracts under Revenue Ruling 05-13?
RR 05-13 treated software delivered by disk, tape, load-and-leave media, or as part of a computer system as taxable, while software delivered solely electronically from a remote location was generally…
How did South Carolina tax warranty, maintenance, and similar service contracts under Revenue Ruling 05-12?
For transactions beginning October 1, 2005, RR 05-12 treated sales and renewals of warranty, maintenance, and similar service contracts as taxable whether optional or mandatory, except qualifying moto…
Were farmers' notes and mortgages held by agricultural credit associations exempt from Florida intangible tax after the Farm Credit entities merged?
Partly. Notes and mortgages originated and owned by the agricultural credit associations were exempt under the federal statute cited in the revised ruling. But obligations originally issued through a …
Did truck trips conducted entirely within another state count toward Louisiana's 80% interstate-commerce threshold for the heavy-truck sales-tax exemption?
No. A trip beginning and ending in the same other state, with the goods at rest there and no state-line crossing, was intrastate mileage and could not count toward the exemption's 80% interstate-use t…
Is a fiber optic network company's monthly charge to lease dark (unlit) fiber optic cable subject to New York sales tax as a telephone service, and what about its lit fiber/WDM/Metro Ethernet services?
No for dark fiber, yes for lit services -- because the company merely leases unpowered physical cable without providing the equipment to activate it, its monthly dark-fiber charges are treated like a …
Are infrared thermographic scanning services and the written reports provided with them subject to Kansas sales tax?
No. Infrared thermographic scanning was not an enumerated taxable service, and the explanatory report was incidental to that nontaxable service. The provider therefore did not collect tax from custome…
Does a fire-protection installation contractor owe sales tax on the labor portion of components fabricated for it by a commonly owned sister company?
Yes -- even though the two companies share the same two owners, officers, and workplace, because each maintains its own employees, payroll, books, and sales tax registration, they're treated as genuin…
Were the listed facilities, equipment, machinery, materials, and chemicals used for pollution control in a Florida phosphate operation exempt from sales and use tax?
Yes. The listed items qualified under the 2005 version of section 212.051 because the company represented that they were used more than 50% to control pollution as required by Florida DEP at a phospha…
Does the time a Texas tax refund claim spends under informal review pause (toll) the statute of limitations?
It depends on when the claim was filed. For refund claims filed BEFORE June 20, 2003, the Third Court of Appeals held in Strayhorn v. Willow Creek Resources, Inc. that the period a claim is under info…
Could an affiliated corporate group stop filing Florida consolidated returns because it misunderstood the election and later sold a Florida subsidiary?
No. The Department denied permission to deconsolidate because inadequate advice about the original election was not good cause, the group had benefited by paying less Florida tax, and buying and selli…
How does Kansas sales tax apply to an auto retailer's various charges — warranties, tire fees, core charges, coupons, labor, and warranty repairs?
It varies by charge. The Department ruled that road-hazard warranties (K.S.A. 79-3603(r)), tire recycling/disposal fees, core charges, and general merchandise like clothing, food, and soda (all under …
Does a contractor who installs underground telephone conduit and cable for a phone company owe New York sales tax on rented construction equipment, purchased materials, and its installation charges?
Mostly yes on rented equipment and most purchased materials, but the installation labor itself is usually exempt -- the contractor always owes tax on renting its own construction equipment (at the hig…
Was an implanted device used to treat degenerative spine disease exempt as a prosthetic device in SC PLR 05-3?
No, for the taxpayer and device in this PLR. The spinal implant was taxable because it prevented or corrected a deformity or malfunction but did not replace a missing part of the body, which the regul…
May a retail copy-and-duplicating service buy or lease copiers and binding machines tax-free under Kansas's integrated production exemption?
No. Purchases and leases of copiers, binding machines, and other production equipment by a retail copying service were subject to Kansas sales and use tax. The integrated production exemption in K.S.A…
Are a corporate partner's allocations of a limited partnership's trading profits investment income or business income for New York Article 9-A purposes?
The character flows through from the partnership. Under the aggregate method (Regulations section 3-13.3), a corporate partner is treated as realizing each partnership item directly from its original …
When an Empire Zone company has a short tax year with none of the four quarterly measuring dates, how does it count employees for the EZ and QEZE credits?
Use the headcount on the last day of the short year. The EZ wage credit, EZ employment incentive credit, QEZE tax reduction credit, and QEZE real property tax credit normally average employees measure…
Are a dental laboratory's charges to dentists for bite blocks, models, and impression trays used to make dentures, crowns, and bridges subject to New York sales tax?
No -- because dentures, crowns, bridges, and similar prosthetic devices are exempt prosthetic aids, and the bite blocks, models, and impression trays are really just tools the lab uses (and bills as l…
How did Florida documentary stamp tax and surtax apply when a hotel ground lessee assigned its purchase option, the fee parcel was conveyed, and the lease was terminated?
All three parts were taxable. The deed's consideration included the option-assignment payment plus the remaining fee purchase price; the fee conveyance was taxed on its consideration; and lease termin…
Were parts and labor for federally mandated railcar inspections and repairs under railroad car-service agreements exempt from Florida sales tax without a resale certificate?
Yes. The Department concluded that parts and labor for the federally mandated repairs were exempt when charged under railroad car-service agreements. The repairer did not need resale documentation for…
Could a quality-assurance consultant avoid gross receipts tax as an employee or service-for-resale seller without an NTTC?
No. Yvonne Barnum was an independent contractor who invoiced Vendor Surveillance Corporation, received a Form 1099-MISC for $25,352.25, and reported Schedule C business income, so the employee-wage ex…
Are an affiliate's receipts from selling mobile-phone equipment subject to New York's section 186-e telecommunications excise tax, and do they pass through to its members or partners?
No, the equipment receipts are not subject to section 186-e. An affiliate (Equipco) that sells mobile-telecommunications equipment but does not sell the telecommunications service itself is not a prov…
How much New Mexico tax refund could Texas residents receive after casino winnings, partly documented losses, and an incorrectly allocated Texas business loss?
The Arizpes received a $6,397 refund, not the full $11,252 withheld. All $187,535 of Sunland Park slot winnings had to be allocated to New Mexico, and the $22,215 loss from Antonieta Arizpe's Texas bu…
Does a New Mexico welding business owe gross receipts tax on material charges passed to customers at cost when it paid tax to its suppliers and did not use NTTCs?
Yes. Kevin’s Kustom Welding owed gross receipts tax on the entire amount received from welding jobs, including separately stated materials passed to customers at cost. The supplier's sale to the busin…
How did South Carolina calculate and prorate the capital-based corporate license fee under Revenue Ruling 05-11?
Under RR 05-11, most covered corporations calculated the annual fee as $15 plus $1 per $1,000, or fraction, of capital stock and paid-in or capital surplus, subject to a $25 minimum. Multistate corpor…
Can the manufacturing machinery and equipment exemption apply to electrical work on a main breaker that powers production equipment?
Yes, with one exception. Work on a main breaker that supplies power to production machinery can qualify for the manufacturing machinery and equipment exemption, because K.S.A. 79-3606(kk)(3)(I) treats…
Is an out-of-state company's electronic medical-billing service subject to Kansas sales or use tax?
No. An out-of-state company that prepares a provider's medical billings electronically and submits them electronically to insurers — producing no paper invoices — is providing a service that is not su…
How is a direct-selling company's Kansas sales tax sourced when distributors pick up orders at its fulfillment center versus having them shipped?
It depends on delivery. When in-state and out-of-state distributors pick up their packages at the company's Kansas regional distribution (fulfillment) center, the pick-up point is the situs of the sal…
Did checking a Kansas sales-tax exemption number online replace the retailer's duty to keep the purchaser's exemption certificate?
No. Kansas created an online service allowing a registered retailer to verify a Department-issued exemption number and view the exempt entity's identifying information and certificate expiration date.…
Are the speech, occupational, and physical therapists who provide preschool special-education and early-intervention services independent contractors or employees for New York withholding tax purposes?
The therapists are employees, not independent contractors. Early Learning controls the means and methods of their work - setting hours, assigning children, and requiring supervised progress reports - …
Could Florida assess 2001 intangible tax more than three years after it was due when the taxpayer had filed a telephonic zero-liability return?
No, unless the Department could prove fraud. The taxpayer documented a telephonic 2001 zero-liability return with a confirmation number, and the Department verified the filing. Because the audit began…
Were profit distributions from two single-member LLC occupants to their parent company taxable as rent for the parent's commercial property?
Yes, under the existing records. The two LLCs occupied their parent's property and distributed all income and cash flow to it, while the parent paid the property expenses. Because the proposed no-rent…
Were distributions from a restaurant corporation to its related property owner taxable as consideration for using the commercial real estate?
Yes, under the documents and history presented. The Department treated the distributions as taxable rent because the restaurant occupied related-party property, had previously deducted rent, and the c…
Which purchases qualified for South Carolina's annual August sales-tax holiday under RR 05-9?
During the three-day August holiday, qualifying clothing, accessories, footwear, school supplies, computers, printers, software, printer supplies, and specified bed-and-bath items were exempt. Jewelry…
How did South Carolina's 2005 sales tax holiday apply to online orders, delivery charges, alterations, exchanges, rain checks, and layaway?
Qualifying items were exempt during the three-day August holiday if delivered and paid for then, or ordered, paid for, and accepted for immediate shipment. Delivery and alteration charges tied to an e…
How did Louisiana treat capitalized lease assets in the corporation franchise-tax and income-tax property factors?
Franchise tax treated a genuine lease as a rental, excluding the asset from the lessee's property factor. Income tax followed federal ownership: include the asset when the lessee was federally treated…
Are a trade-show display company's charges for delivery, freight, drayage, assembly, and dismantling subject to New York sales tax?
It depends which charge and when -- delivery, drayage, and assembly charges billed as part of selling or renting a display are just part of the taxable sale price and can't be carved out, but assembly…
Does a car dealer owe sales or use tax on loaner vehicles it provides free to customers under an extended warranty's rental-car benefit?
No -- because the dealer's rental-fleet vehicles are used exclusively for rental purposes, the dealer can buy them tax-free for resale in the first place, the manufacturer's reimbursement to the deale…
Did a deed transferring unencumbered real property for no consideration between two sister LLCs with identical 50/50 owners owe more than minimum documentary stamp tax?
No. The deed was subject only to minimum documentary stamp tax because the property was free and clear, the sister LLCs had the same two 50/50 owners, and no consideration or other exchange of value a…
When and at what local rate does a roofing contractor that fabricates panels on-site pay Kansas sales tax on its coil and materials?
As a contractor, it pays tax when it takes delivery of the materials, at the local rate where delivery occurs. A business that fabricates standing-seam roof panels, framing, and flashing at the job si…
How does a New York resident compute the use tax owed when bringing a custom-built vessel, constructed and outfitted out of state, into New York for use?
The use tax is based on the full cost of the vessel and everything used to build and outfit it -- purchase price of the vessel, all incorporated materials, plus the cost of any taxable fabrication/ins…
Does a coating company that processes its customers' tools and precision components for them qualify as a 'producer' entitled to New York's production exemption on its own machinery, tools, and utilities?
Yes, but only to the extent its work is really part of its customer's manufacturing process -- because the company's coating work changes the nature of its customers' tools and components (harder, mor…
Is a sign painter's charge for painting temporary advertising on car dealers' windshields and building windows subject to New York sales tax?
No -- painting advertising copy on the windshields of cars a dealer holds for sale is a nontaxable 'printing/imprinting' service because the dealer isn't buying the cars for its own use (they're held …
Is a public university's separate vehicle-registration fee subject to New York sales tax, and what about its parking fee?
No for the registration fee, yes for the parking fee -- because the university charges a genuinely separate $20 vehicle-registration fee that confers NO parking privileges (distinct from an ordinary p…
Is a movie theater company's purchase of armored courier service to transport cash receipts subject to New York sales or use tax?
Yes -- armored car and bonded courier services are taxable 'protective and detective services' under New York law, and because the cash bags the theater's bank picks up are ultimately delivered to the…
Did deeds transferring three unencumbered rental properties from an individual to separate wholly owned LLCs owe more than minimum Florida documentary stamp tax?
No. Each deed owed only the 70-cent minimum because the properties were unencumbered, each LLC was already wholly owned by the transferor, and the transferor received no additional LLC interest or oth…
How did Florida sales tax apply to a cruise-to-nowhere operator's tickets, gaming, meeting rooms, vessel costs, berth, and shuttles?
Florida reached mixed results. Gaming receipts were not taxable; food and drinks were taxable in Florida waters but exempt outside; boarding fees and Florida-contracted meeting-room rentals were taxab…
Were both deeds in a construction-loan arrangement subject to South Carolina's deed recording fee?
Yes. In the ruling's example, the owner's deed to the builder so the builder could obtain financing was taxed on the land's $22,000 fair market value, subject to the property-tax-value election. The b…
What South Carolina sales-tax exemptions were available to motion picture companies under RR 05-7?
A certified production expecting at least ,000 of South Carolina spending within 12 months could exempt qualifying in-state production expenditures from state and Department-administered local sales a…
Could a taxpayer avoid interest and penalty after cashing a 1997 refund that a later amended return tried to apply to his unpaid 1998 New Mexico income tax?
No. Errol Chaisson remained liable for interest and penalty after he and his wife cashed a $5,179 refund that their later amended return had attempted to apply toward 1998 tax. Their conflicting refun…
Was software developed and heavily customized for one retail customer exempt from Florida sales tax, and was its maintenance agreement also exempt?
Yes. The software was an exempt customized service because the developer and customer had agreed to its development before the license sale and the program required extensive customer-specific work. T…
Could an affiliated group stop filing Florida consolidated returns after major growth, acquisitions, diversification, and geographic expansion changed the business?
Yes. The Department found that the group's acquisitions, diversification, expanded product lines and markets, and substantial growth materially changed the circumstances of its old election. It permit…
What were the major 2005 Kansas legislative changes to the taxes and motor-vehicle programs administered by the Department of Revenue?
This notice summarizes the major 2005 Kansas tax and motor-vehicle enactments. Highlights include new income-tax credits (the Individual Development Account credit on Schedule K-68, a science/math tea…
What portion of a building lease was exempt when the tenant subleased about 10% of the space for mobile-communications equipment?
Ten percent was exempt. The communications company used about 1,000 of 9,668 square feet for qualifying mobile-communications property, so the Department accepted a square-footage allocation: $9,900 o…
Was feed for horses, cattle, swine, and other specifically named livestock exempt from Florida sales tax regardless of why the animals were kept?
Yes. Feed for specifically named livestock—including horses, cattle, swine, goats, sheep, and mules—was exempt regardless of whether the animal was kept commercially or domestically. The commercial-pu…
Are USDA GMP-mandated building materials (special flooring, wall paint, doors) exempt under Kansas's manufacturing exemption?
No. A pharmaceutical manufacturer's purchases of USDA GMP-mandated special floor coatings, wall paint, sheet rock, interior doors, and flooring are taxable. The integrated plant exemption in K.S.A. 79…
Were monthly fees for customers to access software on the seller's server through the internet subject to Florida sales tax?
No. Monthly charges for customers to use software residing on the seller's server were not taxable when access was entirely electronic and no tangible personal property transferred. By contrast, the s…
Were raw meal kits containing meats, sauces, spices, and pasta exempt from Florida sales tax when customers had to cook them away from the store?
Yes. The kits qualified as exempt food for human consumption because customers assembled them from raw ingredients, took them away in bags or trays, and had to cook them before eating. They were not s…
Are payments from the Kansas Board of Regents Retirement Plan subject to Kansas income tax, and how is the exemption claimed?
Benefits from the Kansas Board of Regents Retirement Plan -- a 403(b) defined-contribution plan for Regents faculty and unclassified staff (K.S.A. 74-4925) -- are exempt from Kansas income tax under K…
How these rulings are useful
- See how the rule applies: A letter ruling shows how a state revenue department actually applied the tax law to a specific business and set of facts.
- Plan with confidence: Find a ruling with facts close to yours before you charge, remit, or claim an exemption.
- Binding only on the requester: A ruling is binding on the department only for the taxpayer who asked. It is persuasive, not a substitute for your own ruling or professional advice.
- Research across states: Compare how different states treat the same issue, from SaaS and food exemptions to nexus and contractor purchases.