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.
Do membership fees and monthly dues at a chain of Bally Total Fitness/Bally Sports Clubs locations in New York City -- which aren't all identical -- owe New York's social/athletic club dues tax or New York City's separate gym/health-salon tax?
Generally no, but it's location-by-location. Membership fees and dues at these Bally-affiliated clubs are not taxable as social/athletic club dues under state law, because members have no ownership in…
Were the city's park, beach, and convention-center concession rents exempt from sales tax?
Yes. Florida treated the beachfront park and maintained public beach as recreational facilities and the convention center as a listed facility. The total rents and license fees for the food-and-drink …
An accountant wants to offer telephone technical support answering bookkeeping 'how to' questions and software questions to clients — does that require charging Texas sales tax?
Technical support answering questions about accounting or bookkeeping procedures is not subject to Texas sales tax. But a charge for software technical support IS taxable specifically if the person pr…
Does the April 1, 2000 over-the-counter drugs and medicines exemption relieve a direct sales organization from collecting sales tax on vitamin, mineral, and dietary supplement sales?
Yes. Effective April 1, 2000, sales of over-the-counter drugs and medicines are exempt — a qualifying product must be a drug or medicine, meaning an article or substance intended for use in the diagno…
Are offshore feeder (Spoke) funds doing business in New York merely by being partners in a New York-present master (Hub) fund that only trades securities or commodities for its own account?
No. Under the self-trading exemption in section 209.2-a, an offshore (alien) Spoke feeder fund is not deemed to be doing business, employing capital, or maintaining an office in New York merely becaus…
Does weighing/scale equipment at a Texas food processing facility qualify for the manufacturing exemption, and does the answer change depending on where in the process the scale is used?
It depends on the scale's specific function. A scale used as part of the manufacturing line to ensure the correct weight of ingredients going into a formula qualifies for exemption. A scale used to ve…
When a company sells vacation packages bundling hotel rooms, meals, amusement services, and incentive certificates, which components does it collect sales tax on, and which does it just pay tax on itself as the purchaser?
The company must collect tax from the customer on any amusement services charge that's separately stated within the travel package (or where surrounding additional costs are inconsequential), per Rule…
Which horse, farm-equipment, trailer, and pickup sales were tax-exempt at a Texas farm auction?
Horse sales were exempt unless part of an amusement service. Qualifying equipment had to be used exclusively for listed farm or ranch purposes, and trailers had to be designed and used primarily as fa…
A retailer sells its credit-card receivables to a financial institution but is contractually obligated to buy back (with recourse) any accounts that go uncollectible — can the retailer still claim a sales tax bad debt deduction on those charged-back accounts?
Yes. A retailer that assigns or factors its receivables to a third party (like a financial institution financing its credit card) may claim a bad debt deduction on accounts that get written off due to…
Is the 'assets minus debts minus stated capital' formula used to compute earned surplus, and do already-paid expenses count as debts?
That formula computes surplus for the taxable-capital component, not earned surplus, and expenses already paid are generally not debts. A taxpayer completing the short (no tax due) form was unsure how…
After retiring and moving out of Utah, will Utah still tax the monthly income from a university pension and a charitable remainder trust set up through the university?
Once you genuinely transfer your domicile out of Utah, federal law (Public Law 104-95) bars Utah from taxing distributions from a qualified pension plan or a qualifying charitable remainder trust, eve…
Were an interstate carrier's tractor-mounted satellite units subject to Florida sales or use tax?
The satellite units qualified as motor-vehicle parts eligible for the interstate-mileage proration. But these units were purchased, delivered, and installed outside Florida, so Florida imposed no sale…
For the Texas franchise tax, can a leveraged ESOP's unpaid-shares contra account be netted against surplus, and is an ESOP counted as one shareholder for the officer/director compensation add-back?
The unpaid-ESOP account nets against surplus only if it is a statutory debt, and an ESOP is one shareholder if the shares are held in its name. A corporation with a leveraged ESOP asked how to report …
Does the Texas franchise tax allow the phased-in IRC Section 179 expense deduction in computing earned surplus, and which year's amount applies to a 2000 report?
Yes - Texas allows the IRC Section 179 phase-in for earned surplus, and the amount depends on the corporation's federal accounting period. Tax Code Sec. 171.001(b)(5) ties the Texas definition of the …
Which equipment-lease and dealer-financing documents owed Florida documentary stamp tax?
The master equipment lease and incorporated schedule were taxable because they fixed a sum certain, but the assignment of lease payments was not. The wholesale and business financing agreements were n…
Which hotel, catering, and floral cancellation charges were taxable?
It depended on what the payment secured. A deposit that only held a reservation until a time certain was not taxable, while a deposit guaranteeing the room for the stay was taxable. Room-block attriti…
New Mexico estimated a closed bar's unfiled gross receipts tax using its best months from years earlier. Could the buyer who paid that inflated bill get a refund?
Partially granted. When a bar failed to file returns, the Department issued a provisional (estimated) assessment based on its highest-earning months from 1989-1992 — but receipts had since fallen shar…
Does microwave equipment that relays a TV news truck's signal back to the television station qualify for the manufacturing exemption?
No. Microwave equipment used to relay a signal from a television news truck to the station does not qualify for exemption under either Tex. Tax Code § 151.318 or § 151.3185, whether the signal is ulti…
After the Governor declared Tarrant County a disaster area, is labor to repair damaged property in the area exempt from Texas sales tax?
Yes. Once the Governor declares an area a disaster area, labor to restore real or tangible personal property damaged within that area by the condition that caused the disaster declaration is exempt fr…
The new OTC drugs and medicines exemption covers diabetic test strips — does it also cover the lancets used in diabetic monitoring machines?
No, not automatically. Lancets are not exempt as over-the-counter drugs or medicines on their own. They do qualify for exemption, however, if sold under a doctor's prescription.
Is a water-works corporation that is an instrumentality of a town water authority and a section 1411 not-for-profit local development corporation subject to New York franchise or utility taxes?
No. Country Knolls Water Works -- whose sole member is the Town of Clifton Park Water Authority (a public benefit corporation) and which was reincorporated in 1995 as a not-for-profit local developmen…
If a New York resident owns a Delaware LLC that only trades securities for its own account, and the LLC's other member is a trust with an out-of-state trustee, does New York tax the LLC or the trust?
Neither the LLC nor Petitioner (its NY-resident managing member) is 'carrying on a business' in New York, because trading and managing assets solely for one's own account under Tax Law § 631 doesn't c…
When two construction companies form a joint venture and each contributes equipment plus an operator under a subcontract arrangement, is that a taxable equipment rental to the joint venture, or a non-taxable service, and how does 'dominion and control' over the equipment decide which?
It depends on who actually keeps control of the equipment. A joint venture is treated as a separate entity from its corporate partners for sales tax purposes, so a partner furnishing equipment and an …
Is a monthly real-estate magazine that's almost entirely advertising and property listings, with only a handful of short articles, an exempt 'periodical' under New York's sales tax law?
No. Even though 'Showcase of Homes' is published monthly and contains a few short articles by different authors, the Department found it doesn't qualify as an exempt periodical because it's devoted al…
Does a building-cleaning company have to pay sales tax on the paper towels, garbage bags, rock salt, and cleaning agents it buys to perform its cleaning services, even though it separately bills customers for supplies?
It depends on what happens to the item. Supplies a cleaning company uses up performing its own service -- like garbage bags, rock salt, and general cleaning agents -- are taxable purchases, even if th…
Is a fuel surcharge added to a customer's bill subject to Kansas sales tax?
Yes. The Department ruled that a retailer should collect and remit Kansas sales tax on the total invoice amount, which includes fuel surcharges. A fuel surcharge is part of the 'selling price' / 'gros…
A company sold half its employees to a new, commonly-owned company and now leases those employees back at cost plus a markup — is that lease of employees exempt from sales tax as staff leasing?
This arrangement appears to qualify as exempt staff leasing under Rule 3.364, but only if the leasing company meets the legitimate staff-leasing-company requirements in Rule 3.364(a)(5), and the clien…
A contractor doing improvement-to-realty work for a tax-exempt entity (an airport) rents equipment for the job — is that equipment rental taxable, even though the airport's own purchases would be exempt?
Yes, equipment rented or leased by the contractor for use in performing the contract is taxable — the exempt-purchaser status of the airport doesn't flow through to the contractor's own equipment rent…
A Laredo communications center lets customers make collect long-distance calls and also buys items online on customers' behalf for in-store pickup — how is each service taxed, and do local taxes apply the same way to intrastate versus interstate/international calls?
Charges to customers for using a phone to make collect long-distance calls are taxable telecommunications services either way, but the tax rate depends on the call type. Intrastate collect calls (with…
Some insurance companies (especially out-of-state ones) refuse to pay Texas sales tax on medical case management services performed for a Texas resident — is that tax actually owed, and who's on the hook if it isn't collected?
Case management services are taxable as insurance claims adjusting/claims processing services under Tex. Tax Code §§ 151.0039 and 151.0101(a)(9) and 34 Tex. Admin. Code Rule 3.355(a)(5) and (b). Rule …
Is sales tax due on a mail-in rebate a retailer pays through a third-party clearinghouse, even though the rebate coupon says 'sales tax is not refundable'? And does a manufacturer's rebate tied to a specific retailer's receipt work the same way?
For the retailer-funded rebate: no additional tax analysis needed to exclude it — a cash discount rebated to the customer after the sale by the retailer is excludable from the tax base, even when a th…
A company operates private phone systems in office buildings and hotels, buying telecom service wholesale and reselling it to tenants/guests -- plus charging separately for wiring, phone jacks, moving/installing phones, and equipment maintenance. Which of these charges are taxable, which can be bought tax-free for resale, and does bundling vs itemizing change anything?
A multi-part breakdown for a private telephone system operator reselling telecom service to tenants/guests. The operator must collect sales tax on its ENTIRE charge to tenants/guests for telecommunica…
Can another state independently audit a Utah-based trucking fleet's trailer mileage under the International Registration Plan, and can Utah force that fleet to register its trailers separately from its power units?
Yes to the audit question: another IRP member jurisdiction can independently audit a Utah-based registrant's mileage and fees for that jurisdiction, even without a joint-audit agreement with Utah, and…
When a nail technician sells a customer three custom-molded sets of fingernails and applies one set as part of the visit, is that a taxable sale of nails or a nontaxable personal service, and does the wholesale manufacturer owe tax on its sale to the technician?
The nail technician's sale to the customer is a taxable sale of tangible personal property (the nails), not a nontaxable service -- so the technician must collect and remit sales tax on the FULL retai…
Does Kansas publish a list of businesses that are exempt from sales tax?
There is no such list — Kansas does not publish one. The Department advised that, unlike many other states, Kansas 'does not publish a list of businesses that are allowed to claim resale exemption' be…
Are sales, parts, and repair services for fire extinguishers provided to Kansas churches taxable?
They are exempt. The Department ruled that sales to Kansas churches for use in places like their sanctuaries and administrative facilities are exempt from sales tax — and this covers the fire extingui…
Is a foreign parent's election to become a financial holding company under Gramm-Leach-Bliley a registration under the Bank Holding Company Act for section 1452(a)(9)?
No. A foreign parent corporation that owns a foreign bank and elects to be treated as a 'financial holding company' under the Gramm-Leach-Bliley Act has not thereby 'registered under the federal Bank …
Can a multi-state corporate group get Utah to use a different apportionment formula instead of the standard three-factor UDITPA formula when it distorts the group's Utah income?
Partially granted. The Commission refused to let the group use separate accounting, but agreed to modify the standard three-factor UDITPA apportionment formula so that securities held in inventory (in…
Are concrete cutting and coring labor services on sidewalks, steps, and walls subject to Kansas sales tax?
Yes, generally taxable. The Department ruled that concrete cutting and coring labor services are subject to Kansas sales tax under K.S.A. 79-3603(q), because concrete is tangible personal property tha…
Is a regional education service center exempt from Texas sales and use tax the same way a school district is, and does that exemption extend to the center's employees?
Yes for the center itself, no for its employees. Regional education service centers — and all other regional education service centers statewide — are exempt from paying Texas sales and use taxes, bec…
Is a nonprofit senior center exempt from Kansas sales tax, and does it have to collect tax on its fundraising sales?
Not exempt. The Department ruled that a nonprofit senior center does not enjoy an exemption from Kansas sales tax — not every nonprofit does. An exemption for senior centers would require a change to …
Was an over-the-counter drug or medicine exempt from Texas sales tax in 2000 just because it had an NDC (National Drug Code) number, even if the number didn't appear on the label?
As of this March 2000 email response, yes — an OTC drug or medicine with an NDC number was exempt from Texas sales tax even if the number wasn't printed on the label. STAR has since attached a currenc…
A New Mexico resident cashed out 'phantom stock' he had earned over years of work in Illinois. Could he allocate most of that payment away from New Mexico?
Denied. Because the couple were full-year New Mexico residents in the year the phantom-stock payment came in, they had to allocate the entire payment to New Mexico. The payout was deferred compensatio…
Were repairs to the scrap-metal company's shredding and sorting equipment exempt?
No. Although the company used industrial machinery to shred and sort scrap metal, its full operation was classified under wholesale-trade SIC code 5093, which was not one of the codes eligible for the…
A contractor bought materials for a New Mexico State Library project and was reimbursed. Did the reimbursements owe gross receipts tax, or were they tax-free agency pass-throughs?
Denied. Reimbursements for expenses are taxable gross receipts unless the person spent the money as a disclosed agent — and agency requires the power to bind the principal so the vendor could enforce …
Did Walton County's surtax apply to furniture later shipped to a buyer in a nonsurtax county?
Yes. All four items were subject to Walton County's 1% discretionary sales surtax because title and possession passed to the buyer at the Walton County store. The buyer, not the retailer, hired and pa…
When was Florida sales tax due on a health-studio membership paid in monthly installments?
The full tax was due when the membership agreement was entered into, not as each monthly payment was received. The one-to-three-year agreement obligated the member for the full price and functioned as…
Is cable television installation subject to Kansas sales tax when done at a residence versus at a commercial building?
It depends on the location. The Department ruled that cable television installation performed at a residence is exempt from Kansas sales tax under the 1998 residential-services exemption (K.S.A. 79-36…
Could a corporation use the remainder of a 1996 Texas franchise-tax business loss on its 2000 final report after using part on its 2000 annual report?
Yes. Section 171.110(d) allowed a business loss to offset net taxable earned surplus for up to five taxable years after the loss year. On the facts presented, a loss created on the corporation's 1996 …
Did amendments to a real-property financing arrangement turn the parties' stated lease into a taxable lease?
No. Considering all agreements together, Florida continued to treat the arrangement as mortgage financing rather than a real-property lease. The increased borrowing, added property, loan syndication, …
Was Florida documentary stamp tax due when a foreign corporation's Florida real estate passed to a foreign partnership by statutory merger?
No, on the stated facts. Delaware law vested the corporation's Florida real estate in the surviving limited partnership by operation of law, and no deed or other conveyance instrument would be recorde…
Are subscriber access fees and advertising space on an online 'electronic bulletin board' subject to Kansas sales tax?
No, those fees are not taxable. The Department ruled that fees subscribers pay to access a nationwide 'electronic bulletin board' — an online data bank of information, articles, and advertising, reach…
Were promissory notes and mortgages involving Agricultural Credit Associations exempt from Florida documentary stamp tax?
Yes, for the described Agricultural Credit Associations. Florida's rule treated mortgages and notes between nonexempt parties and specified federal agencies or instrumentalities, including Agricultura…
When a company charges donors a separate fee to notify a recipient (by letter or by e-mail) that a charitable gift was made in their name, is that notification fee taxable in Texas?
It depends on how the notification is sent. A separately stated charge to notify the recipient by e-mail is a taxable telecommunications service under Rule 3.344. A separately stated charge to send th…
When did a strategic-investment-area project qualify for Texas's former capital investment credit, and could pre-2000 costs enter the credit calculation?
Property first placed in service in a strategic investment area on or after January 1, 2000 could qualify, and eligible expenditures incurred before that date could be included in the credit computati…
Could a Florida county buy materials for airport-terminal renovations tax exempt while its contractor handled requisitions and delivery?
Yes, if the county was the purchaser in substance: it had to use its own purchase orders and exemption number, receive direct invoices, pay vendors directly, take title and liability at delivery, and …
Could a Florida county buy airport-construction materials tax exempt while its contractor handled requisitions and delivery?
Yes, for purchases made under the described amendment on or after December 7, 1999, if the county—not the contractor—used its purchase orders, gave vendors its exemption certificate, took title and li…
A plumbing subcontractor overpaid gross receipts tax for 1993-1994 and its accountant never filed the refund claim. Could New Mexico still refund the money years later?
Denied. A gross receipts tax refund claim must be filed within three years of the end of the year the tax was originally due (Section 7-1-26). The plumber's 1993-1994 overpayments became time-barred a…
Is a golf course's 'trail fee' — charged to a member who brings and uses his own golf cart on the club's cart paths — subject to Texas sales tax?
Yes. A country club's trail fee, charged to a golfer for using his own privately owned cart on the club's cart paths, is taxable as a sale of an amusement service under Rule 3.298(b).
Did a Texas pharmacy need a doctor's prescription on file to sell diabetic test strips and lancets tax-free, and did that change in 2000?
As of this March 2000 letter, yes — diabetic test strips and lancets were exempt therapeutic devices only when sold to an individual with a licensed practitioner's prescription on file; without one, t…
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.