State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
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Can a meat processing plant buy aprons/frocks, refuse receptacles, and liquid soap/disinfectants tax-free under the public-health-compliance manufacturing exemption?
Mixed result across three items. LIQUID SOAP AND DISINFECTANTS for hand/equipment cleaning ARE exempt under Section 151.318(a)(10), because 9 C.F.R. Section 307.2(f) affirmatively requires them for sa…
Does Texas motor vehicle tax apply when an interstate bus carrier buys or rents charter buses from a foreign manufacturer?
Partially superseded. A rental beginning in Texas for 31 days or more was subject to 6.25% motor vehicle rental tax even if the bus operated interstate. The old purchase-exemption statement changed in…
Are pasture cleaning, barn cleaning, excavation, and fence installation performed with a skid-steer subject to Kansas sales tax?
Mostly not taxable. The Department ruled that land clearing/maintaining, barn (or any structure) cleaning, and excavation - digging, drilling, and boring in soil or rock - are not subject to Kansas sa…
Are green fees taxable at a city-owned golf course when the course is actually operated day-to-day by an independent contractor, even though revenue flows to the city and the city closely controls operations?
Yes, taxable. Amusement services are exempt from Texas sales tax only when EXCLUSIVELY provided by a governmental entity (the state, a municipality, county, school district, special district, or other…
Is a charge to play a for-fun blackjack table at a bar -- where players buy chips but can't win money, keep chips, or receive prizes -- taxable as an amusement service?
Yes. A charge for admission to play blackjack, or a charge for the chips used to play, is subject to Texas sales tax as an amusement service under Rule 3.298 -- even though the game is purely recreati…
Could two Florida corporations deconsolidate after a reverse cash merger placed them in a new federal group headed by a parent without Florida nexus?
Yes. The new federal consolidated group included a parent without Florida nexus, so the two Florida corporations could not file a state return for only a subset of federal members. Separate filing beg…
I'm buying a cooperative apartment unit for over $1 million that has been used exclusively as doctors' offices for at least 40 years, is configured with exam rooms instead of a kitchen or residential bathroom, and whose certificate of occupancy only permits professional-office use -- even though I plan to convert it to a residence after closing. Do I owe New York's 1% 'mansion tax' (the additional residential conveyance tax) on this purchase?
No mansion tax due -- what matters is the property's actual use and legal occupancy status at the moment of conveyance, not the buyer's future plans. Petitioner purchased a cooperative unit for over $…
Are the services of procuring temporary workers and management services over the internet subject to Kansas sales tax?
Not taxable. The Department ruled that Kansas, unlike a number of other states, does not impose sales tax on the services of temporary-service providers. A company (Temp-X) that procures temporary wor…
May a New York-chartered trust company allocate its entire net income within and without New York based on custodial services performed outside the state through agents and sub-custodians, and how are the custody fees sourced?
It may allocate within and without New York, and may use sub-custodian costs to source the out-of-state fees. If Sumitomo performs custodial services outside New York through agents or sub-custodians,…
Were free monthly advertising publications exempt when distributed at newsstands in Florida or shipped by the printer to other states?
Yes. Both monthly periodicals were distributed free through newsstands and consisted primarily of advertising, so they met section 212.08(7)(w). Printer shipments by common carrier to other states als…
How much did Kansas motor fuel tax rates rise on July 1, 2001, and what inventory tax applied?
1999 House Bill 2071 increased all Kansas motor fuel tax rates by $.01 per gallon effective July 1, 2001. The new per-gallon rates were: gasoline $.21, gasohol $.21, special fuel (diesel) $.23, and L.…
Does a restaurant owe sales tax on a gift certificate that expires unredeemed, and does charging a monthly maintenance fee that reduces the certificate's value to zero change the answer?
No sales tax liability in either scenario. A restaurant does not owe sales tax when a sold gift certificate expires unredeemed, because Tax Code Section 151.051(a) taxes sales, and Section 151.005(6) …
Can a nonprofit like a Friends of the Library group get a Texas franchise-tax exemption, and does that also exempt its purchases from sales tax?
The organization qualified for a franchise-tax exemption but not a sales-tax exemption. The Comptroller confirmed that the nonprofit (a library-support group that had requested exemption under Tax Cod…
Does incinerating waste into ash for disposal count as tax-exempt 'processing' or 'manufacturing' of tangible personal property, or is it a nontaxable waste-disposal service instead?
Not processing/manufacturing, as structured in this case. A limited partnership that incinerates waste into ash, where the operation's purpose is waste disposal (not creating a marketable product) and…
Can a telecommunications company claim the manufacturing machinery exemption for equipment used to provide phone service?
No -- the refund denial was sustained. The manufacturing machinery and equipment exemption in K.S.A. 79-3606(kk) requires that the taxpayer process tangible personal property for resale. A telecommuni…
Is a separate annual vehicle registration fee that a SUNY college charges students, faculty, and staff subject to New York sales tax as a parking charge?
No. SUNY College at Oneonta's separate $5 annual vehicle registration fee is not subject to sales tax as a parking, garaging, or storing charge, because it is legally and financially distinct from the…
If a telephone answering service passes through the cost of its dedicated phone lines to customers as part of its bill, does New York sales tax apply to that charge too, on top of the tax already paid when the service bought the lines?
Yes. New York taxed the answering service's purchase of its dedicated phone lines as a taxable expense it consumes in its own business, and separately taxed the full charge it bills customers (includi…
If a delicatessen sells frozen pizzas and made-to-order sandwiches wholesale to bars for resale to their patrons, does it have to charge sales tax on those wholesale sales?
It depends on the item. The delicatessen's uncooked frozen personal-size pizzas are exempt because they're commonly sold unheated, in the same form, by ordinary food stores. But its cold-cut, eggplant…
Are the gross receipts from selling market research reports and consulting - delivered in binders with diskettes and maps - subject to Kansas sales tax?
No sales tax. The Department ruled that no imposition exists in Kansas law to tax the information service described - selling market research reports (printed in 3-ring binders with computer diskettes…
We're RIOC, developing the Southtown Project on Roosevelt Island. Private developers will borrow from outside lenders to fund construction, and we'll be named mortgagee before assigning our interest to the real lenders. Is that mortgage -- and its later refinancings and modifications -- exempt from mortgage recording tax?
Exempt, if RIOC is named mortgagee and presents the mortgage for recording. The Roosevelt Island Operating Corporation (RIOC), created by the state Legislature in 1984 as successor to the Urban Develo…
A housing development fund company (HDFC) financed a whole subdivision with one exempt construction loan mortgage on its fee interest, then severed it into separate substitute mortgages as individual houses are sold to buyers who assume permanent financing. Are those substitute mortgages, and the later buyer assumption/extension agreements, still exempt from mortgage recording tax?
Exempt at every stage. Housing development fund companies (HDFCs), organized under Private Housing Finance Law Article XI to develop affordable housing on a nonprofit basis, commonly secure project fi…
Are lump-sum distributions from a nonqualified deferred compensation plan to terminated nonresident employees exempt from New York personal income tax, and when must the paying company withhold tax on such distributions?
Yes - because the plan is a nonqualified deferred compensation arrangement under IRC § 3121(v)(2)(C) whose lump-sum payments meet the federal 'retirement income' definition, distributions to terminate…
Is a health and sporting facility's membership fee subject to New York's social/athletic club dues tax, or to New York City's separate tax on gyms and health salons?
No, on both counts. La Palestra's membership charges are not taxable as social/athletic club dues under state law, because members have no control over the club's activities, membership selection, or …
Is a VEBA that receives and invests demutualization proceeds subject to the New York Article 13 tax on unrelated business taxable income?
No. Although a VEBA's demutualization proceeds are federal unrelated business taxable income under section 512(a)(3) and the VEBA is subject to the federal section 511 tax, the VEBA is not regularly c…
Is a motorcycle escort service for funeral processions — where the escort provider supplies both the motorcycle and driver — subject to New York sales tax as a vehicle rental?
No. Because the escort provider keeps full dominion and control over the motorcycle and driver — hiring and firing the driver, choosing the route, and paying all operating costs — the funeral director…
Was a utility's federally mandated transfer of transmission-grid control to a regional operator a taxable lease or a nontaxable management arrangement?
It was a nontaxable management arrangement. The utility kept ownership, FERC—not the operator—determined its revenue requirement, the operator collected that revenue on the utility's behalf, and feder…
When are a contractor's repairs for a school district exempt from Kansas sales tax, and when is a project exemption certificate required?
It depends on whether the work touches real property. The Department ruled that under K.S.A. 79-3606(d), a contractor's purchases of materials to construct, repair, or remodel a building for a school …
Does a multi-level marketing company or its independent distributors have to collect and remit Texas sales and use tax on distributor sales?
The direct sales organization itself — not its independent distributors — is legally the retailer responsible for collecting and remitting Texas state and local sales and use tax on sales its distribu…
Are data processing services subject to Kansas sales tax?
Not taxable. The Department ruled that because Kansas taxes only specifically enumerated services, data processing services are not currently subject to Kansas sales tax. The provider must, however, p…
Could a corporate group stop filing Florida consolidated returns because of routine reorganizations, the parent's lost Florida nexus, and administrative cost?
No. The group's manufacturing and distribution business remained the same despite mergers, acquisitions, sales, and dissolutions. Neither the parent's lost Florida nexus nor the cost of preparing the …
Were payments under a synthetic real-estate lease taxable commercial rent, or were they debt payments under a mortgage financing?
They were nontaxable financing payments. The special-purpose lessor held bare title as security, rent exactly matched loan interest and holder yield, the lessee was treated as owner outside financial …
Is a single-member LLC treated as a "person" and "vendor" that must collect and remit Utah sales and use tax, even though it's disregarded for federal income tax purposes?
Yes. A single-member LLC (SMLLC) is a "person" under Utah Code section 59-12-102(19) even though SMLLCs aren't named in that 1933-era statute, because Utah's Limited Liability Company Act treats an LL…
Does a snack/candy retailer located next to a movie theater — selling popcorn, hot dogs, fountain drinks, and other grab-and-go items — have to collect Utah's restaurant tax?
Yes, the business must collect the restaurant tax — the Commission denied the exemption request. Utah's restaurant tax applies to prepared foods/beverages sold by a 'restaurant,' defined broadly to in…
Does a mail-order retailer owe Utah sales or use tax on catalogs mailed to Utah customers, and does using a Utah printer create nexus even if the retailer itself has none?
It depends on who has nexus. A mail-order retailer that already has Utah nexus owes use tax on catalogs mailed to Utah customers even if the catalogs are entirely printed and mailed from outside Utah.…
Was a qualifying lump-sum retirement distribution taxable to a Louisiana resident when it was excluded from federal adjusted gross income?
No, to the extent the lump-sum distribution was properly excluded from federal adjusted gross income. Louisiana tax-table income started with federal adjusted gross income and made no separate modific…
What Texas motor vehicle tax applied when a parent corporation transferred trucks to a subsidiary and leased them back?
The subsidiary owed motor vehicle sales tax on each truck acquired from the parent. Assuming a lease term of at least 180 days, the management-fee leaseback was not a taxable rental. A true financing …
Which county-park concession rents were exempt as food-and-drink services within publicly owned recreational facilities?
Only the snack-bar and food-concession contracts were exempt. They provided food and drink within publicly owned recreational facilities, and beach-merchandise sales did not defeat the exemption. Fish…
Does the Boys and Girls Clubs of America qualify as a qualified after-school care program operator for the Texas franchise-tax after-school care credit?
Yes. For purposes of the Texas franchise-tax credit for after-school care, the Comptroller confirmed that a local Boys and Girls Club is a qualified after-school care program operator. Franchise Tax R…
Does a Texas car dealer owe use tax on parts used for a free repair when there's no written warranty, but the repair happens right after the sale?
A Texas motor vehicle dealer that makes a free repair within seven calendar days of selling the vehicle, where the repair isn't covered by any written warranty, owes no use tax on the parts because th…
Are the gross receipts from coin-operated video games located in Kansas subject to sales tax?
Taxable. The Department ruled that gross receipts from coin-operated video games located in Kansas are subject to sales tax under K.S.A. 79-3603(f), which taxes the operation of any coin-operated devi…
Could Louisiana garnish a resident seaman's or master's federal income-tax refund to collect past-due state tax?
Yes. The Department treated an income-tax refund as a debt owed to the taxpayer rather than protected wages, so the federal refund of a seaman or master who was a Louisiana resident could be garnished…
Is the service of weighing vehicles on a commercial scale subject to Kansas sales tax?
Not taxable. The Department ruled that the service of weighing vehicles on a commercial scale is not subject to Kansas sales tax. Because it is a nontaxable service, the provider must pay sales tax on…
Could a professional shopper avoid Florida sales tax on mandatory delivery charges by stating them separately from the delivered goods?
No. The independent contractor used its own funds, bore the risk of loss, and transferred title and possession when delivery succeeded, making it the retail seller rather than the consumer's purchasin…
Is plumbing labor taxable in Kansas, and how are the materials and non-residential jobs treated?
It depends on residence vs. materials. The Department ruled that plumbing labor services are exempt from Kansas sales tax when performed for a residence under K.S.A. 79-3603(p) (including the land imp…
Are retail sales of herbal fiberblend and barley green supplements subject to Kansas sales tax?
Taxable. The Department ruled that herbal fiberblend and barley green supplements are subject to Kansas sales tax. Unlike states that exempt food, Kansas taxes retail sales of food and food products, …
Which web, branding, campaign, direct-mail, and annual-report charges of a qualifying advertising agency were taxable?
Web production and hosting without tangible property were nontaxable, while qualifying branding, campaign, and related advertising services were exempt. Direct-mail development and design were exempt …
Does a New Mexico resident owe gross receipts tax on pay for consulting work performed entirely outside the state?
No — the protest was GRANTED and the assessment was abated in full. Hilliard Griffin, a New Mexico resident, was assessed gross receipts tax after the IRS told the Department he had reported $28,670.3…
Are surgically implanted items like pacemakers, hip/knee/shoulder replacements, bone, and cornea implants exempt from Utah sales tax as 'medicine' or as 'home medical equipment'?
No, neither exemption applies, contrary to informal phone guidance the hospital had received from a Tax Commission employee. The medicine exemption under § 59-12-104(10)/§ 59-12-102(16) is narrowly de…
Is work on a private alley or drive tax-exempt just because the owner plans to eventually dedicate it to the city?
No. Work on an alley or drive is only exempt as work performed for a city on city property if the property has actually been dedicated to and accepted by the city (even conditionally or as of a future…
What did the original 2001 advisement say about a club's separately billed employee service charge, and was that answer later revised?
The original advisement said the charge was nontaxable because it was separately stated, fully distributed to employees, and gave the club no benefit, regardless of billing frequency. Florida later re…
Would amended building leases become mortgage financing when the lessee acquired the lessor but retained title and leases to preserve bond debt?
Yes. The taxpayer would acquire and control the lessor, keep title there only as security for existing notes, pay amounts tied to debt service, bear ownership duties and risk, grant mortgage and forec…
How did Florida sales tax apply to a section 501(c)(3) rodeo's admissions, facility rentals, exempt purchases, and merchandise sales?
Rodeo admissions were exempt, and purchases for the organization's exempt purposes were exempt when invoiced to and paid by the organization using its certificate. Facility rentals were generally taxa…
Are a nonprofit museum's renovation purchases (including for its gift shop) exempt from Kansas sales tax, and are visitor donations taxable as admissions?
Exempt. The Department ruled that the nonprofit organization qualifies as a museum under K.S.A. 79-3606(qq), so its direct purchases of tangible personal property and services used to renovate the bui…
If the state wrongly applies my income tax refund to someone else's tax bill, can I get it back years later or just stop paying my current taxes to make up for it?
No — the protest was DENIED. Satya Deb Misra was one of four partners in the Redwood Lodge motel partnership, which had registered for New Mexico's combined reporting system (CRS) taxes. He withdrew i…
Was a charity exempt from Texas motor vehicle sales tax when purchasing a van to transport schoolchildren?
No general charity exemption existed under Chapter 152 for the schoolchildren's van. A STAR alert adds narrow exemptions effective September 1, 2025, for qualifying nonprofit food-bank vehicles and ce…
Did a county's direct-purchase procedures make convention-center construction materials exempt from Florida sales tax?
Yes, if the county remained the purchaser in substance and form. It had to issue purchase orders and its exemption certificate, receive direct vendor invoices, pay vendors directly, take title and lia…
How should a corporation document the Kansas sales-tax exception when vehicles or trailers transfer with all of its assets to another corporation?
Complete the Kansas Designated or Generic Exemption Certificate, Form ST-28, and present it to the county treasurer instead of paying sales or use tax when title transfers. The form should cite K.S.A.…
Is cable television installation subject to Kansas sales tax at a residence, and does the answer change at a commercial building?
Not taxable at a residence. The Department ruled that installing cable television at a residence is exempt from Kansas sales tax under K.S.A. 79-3603(p), which exempts services to install or apply tan…
May a seller accept a Missouri exemption certificate for carpet shipped to a Kansas retailer before the carpet is transported to Missouri for installation?
Do not accept the Missouri exemption certificate for a sale shipped to a Kansas retailer. The carpet nevertheless qualified for Kansas's temporary-storage exemption because it entered Kansas only for …
Were repair parts and repair services for exempt Kansas manufacturing machinery taxable after July 1, 2000?
No, for qualifying exempt machinery. Since July 1, 2000, repair parts and repair services for exempt manufacturing machinery and equipment were exempt from Kansas sales tax. Earlier periods differed: …
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