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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Which hybrid-vehicle equipment costs qualified for Louisiana's former clean-burning motor-vehicle fuel-property credit?
Equipment used to convert a gasoline vehicle to a hybrid qualified, but equipment used to convert a diesel vehicle did not. For hybrids originally built by a manufacturer, qualifying equipment costs…
Are custom-molded ear plugs sold to protect hearing during loud work or performances exempt from New York sales tax as a 'medical device'?
No, not as a medical device. Custom ear plugs sold for hearing protection during loud activities (music, construction, machinery) don't qualify for New York's medical-equipment exemption, because…
Does a newsstand owe sales tax on ordinarily-exempt snack and drink items (like potato chips, fruit juice, and ice cream) when the only way in or out of the newsstand is through an adjoining shared area that has tables and chairs available to customers?
Yes, taxable. Even though items like potato chips, 70%+ fruit juice, and ice cream are ordinarily exempt when sold for off-premises consumption, that exemption doesn't apply if the food/drink is…
Can a manufacturing tenant claim the energy-tax credit when its landlord passes through utility taxes, and does submetering versus a per-square-foot charge matter?
It depends on how the charge is measured. Energy taxes imposed on a landlord can be passed through to a manufacturing-business tenant and qualify for the section 14-a IMB credit, but only if the…
Are an independent power producer's receipts for maintaining electric generating capacity taxable as gross operating income under section 186-a?
No. Although an independent power producer's receipts for maintaining electric generating capacity are receipts from furnishing electric service, the capacity is a component of the electricity that…
Did one purchase order for department-store fixtures receive one $5,000 surtax limitation despite multiple invoices or shipments?
Yes. A purchase order covering the specified department or entire store was one bulk sale for the $5,000 discretionary sales surtax limitation when it stated a definite quantity and required…
If a nondomiciliary long-term-leases a hotel room or buys an apartment in New York with no cooking facility, does that count as a permanent place of abode for statutory residency purposes?
Yes. The Department ruled that both the long-term-leased hotel room and the apartment with cooking facilities removed would be permanent places of abode, because both would be maintained year-round…
When a gas station's pumps straddle a city/county boundary line, how does the retailer determine which local jurisdiction's sales tax applies to each fuel sale, and how should it report and document this on its returns?
The applicable local sales tax jurisdiction is determined pump by pump, based on exactly where physical delivery of the fuel occurs — not by where the station's overall address or cash register…
Is a teleservices firm's purchase of telephone-number verification and correction services — which append or fix phone numbers on the firm's own customer lists — taxable as an information service?
Yes, taxable. Even though the corrected phone numbers are matched to the specific individual names on the teleservices firm's own list, the underlying source is presumably a shared database (like…
When an out-of-state distributor with New York nexus drop-ships candy and cookie dough directly to an in-state third party on behalf of a wholesaler customer with no New York nexus, does the distributor have to collect New York sales tax, and what paperwork does it need from the wholesaler?
Cookie dough is exempt food, so the distributor never needs to collect tax on it regardless of paperwork. Candy is different — it's specifically excluded from the food exemption and presumed taxable…
Can a uniform-and-medical-gown laundry service buy its inventory of shirts, pants, and gowns (each under $110) tax-free under New York's clothing exemption, and if so, does it still owe local use tax when those items are used at customer locations outside New York City?
Yes, the laundry company's purchases of uniform shirts, pants, and medical gowns costing under $110 each qualify for New York's clothing exemption and escape the 4% state tax — and since the items…
Do a carrier's sales of telecommunication services to a foreign prepaid calling card reseller qualify for the section 186-e sale-for-resale exclusion?
Only if the foreign buyer would qualify as a carrier. A New York carrier's sales of telecommunication services to a foreign prepaid calling card reseller (FORCO) are excluded from the section 186-e…
Are Guaranteed Auto Protection (GAP) premiums subject to Kansas sales tax?
No. A Guaranteed Auto Protection (GAP) premium is viewed as the sale of insurance in Kansas, so the premium is not subject to Kansas sales tax. The Kansas sales tax is imposed on selling tangible…
If a business fails to pay New Mexico gross receipts tax for years because a tax-department employee wrongly told it no tax was due, can it get the penalty and the interest waived?
The penalty was waived but not the interest — the protest was GRANTED IN PART. Micro-Treat didn't pay New Mexico gross receipts tax for six years because a Department employee wrongly told its owner…
When could a county assessor change real-property value outside a countywide reassessment year under the bulletin?
A sale alone did not permit reassessment, but completed improvements could be added uniformly; the assessor also had to consider more than sales price alone.
Was stand-alone push-to-talk dispatch service subject to Florida communications services tax?
Yes. The provider's stand-alone push-to-talk dispatch service—instant one-to-one or one-to-many radio communication within a predefined talk group—was a communications service subject to Florida…
Were Company A's construction-material and equipment purchases eligible for a Rhode Island sales and use tax rebate through its RIIFC-financed manufacturing project?
Yes. Purchases of construction materials and manufacturing, office, and computer equipment were rebate-eligible, but only within the project's $15 million cost ceiling after accounting for other…
If a nonprofit reclassifies a worker as an independent contractor and hands her a New Mexico nontaxable transaction certificate, does she owe gross receipts tax on her fees — and can a slow tax department or financial hardship reduce the bill?
Yes, she owed the tax, and the protest was DENIED (except a stipulated abatement on a $6,900 profit-sharing payout). Misty Blue's marketing fees were independent-contractor receipts subject to gross…
Could a Florida corporate group stop using its grandfather consolidated-return election after the filing member converted to a single-member LLC?
Yes. Florida allowed the former grandfather-election filer to stop that filing method and allowed the parent and its entire affiliated group to elect normal consolidated filing, but only if three…
Were customized banking software, its monthly service contract, and exclusive electronic reports taxable?
No. The contract required customer-specific modifications that made the program unusable for another customer without more work, so the software was custom and nontaxable. Its related service…
Were home-use pulsed colon-irrigation systems exempt prescription medicines?
No. The system applied treatment but was neither implanted nor worn and was not required by a surgically created waste opening. Its sales were taxable; the seller's status as a nonpharmacist…
Are gate receipts charged for admission to a trade show subject to Kansas sales tax?
Yes. Gate receipts charged for admission to a trade show are subject to Kansas sales tax. K.S.A. 79-3603(e) taxes the gross receipts from the sale of admissions to any place providing amusement,…
When did Louisiana's direct-from-the-farm exemption apply to livestock, poultry, produce, and horticultural products?
The product had to remain in the form produced on the farm and be sold by its producer. The sales location did not matter, but processed derivatives and products acquired from another producer did…
How did a corporate owner compute Louisiana corporation franchise tax when all business activity occurred through its wholly owned single-member LLC?
The LLC itself was not subject to franchise tax, but its corporate member was. The corporation included its investment in the LLC in its base, attributed property and revenue to Louisiana under…
Can New Mexico waive penalty and interest on a gross receipts tax payment that was one day late because of a bookkeeper's error, when the state received the hand-delivered payment on the same day a timely mailed one would have arrived?
No. Interest and penalty were mandatory. Harry's Roadhouse paid its October 2000 CRS (gross receipts, compensating and withholding) taxes one day late after a bookkeeper fell behind, and the…
Did California owe credit interest when it approved a vehicle manufacturer's Lemon Law claim for sales-tax reimbursement?
No. Civil Code section 1793.25(c) excluded the Revenue and Taxation Code provision authorizing credit interest from manufacturer Lemon Law reimbursement claims.
Is the sale of a discount-membership program (discounts at restaurants, stores, theaters, hotels, etc.) subject to Kansas sales or use tax?
No. The sale of a discount-membership program — giving members discounts at restaurants, retail stores, sporting events, movie theaters, hotels, and other providers, plus an 800 line and a members'…
For Texas franchise tax, is selling compiled information an intangible or a service, and where is it apportioned?
Compiling information and selling it is the performance of a service, not the sale of an intangible - and the format in which the information is delivered does not change that. So the receipts are…
Was a separately stated, optional guaranteed auto protection charge included in the taxable sales price of a financed vehicle?
No. The GAP waiver was strictly optional at the purchaser's sole discretion, was not required to obtain the vehicle loan, and carried a separately stated one-time charge. On those facts, the charge…
For Texas franchise tax, are sales of commodity futures contracts reported gross or net, and how are the receipts apportioned - by the exchange or the buyer's domicile?
Two separate questions. First, gross vs net: calling a futures contract an intangible does not decide it - that only affects apportionment, not the amount of gross receipts. If the taxpayer holds…
Which mandatory country-club assessments for capital-project debt were exempt from Florida admissions tax?
Only qualifying assessments paid by stock-owning equity members were exempt, and only while used for capital improvements or debt financing those improvements under the rule's accounting and use…
Where did Tennessee source royalties from licensing manufacturing patents and know-how for the receipts-factor apportionment formula?
Royalties were sourced to Tennessee when a taxpayer doing business in the state licensed patents, know-how, or other intellectual property to a Tennessee person and payment was based on the…
Can a university's 501(c)(3) status let contractors buy construction materials for its buildings tax-free, and does it matter whether the university is public or private?
Yes, with conditions. A university recognized under IRC § 501(c)(3) qualifies as a "religious or charitable institution" under § 59-12-104(8)(a) regardless of whether it's a private or state school…
Does a digital color copier used to print business cards, signs, and banners instead of using a traditional offset printing press qualify for Utah's manufacturing equipment sales tax exemption?
No. The manufacturing exemption under § 59-12-104(14) applies only to equipment used at a "manufacturing facility," defined by § 59-12-102(15) as an establishment falling under SIC codes 2000-3999.…
Which Tennessee taxes applied when an out-of-state company occasionally sold, installed, and maintained security systems in the state?
Franchise and excise, sales or use, and business taxes applied because employee installation and maintenance visits created Tennessee nexus. Sales-tax treatment depended on fixture status: systems…
Did computer-equipment leases owned by out-of-state trusts or their Florida-connected grantor create taxable Florida intangibles?
No tax applied on the stated facts. The out-of-state trusts lacked a Florida commercial domicile or business situs, so their leases had no taxable Florida situs. The grantor's Florida lease activity…
Which disputed delinquent tax items could be excluded when deciding whether a lottery retailer or vendor qualified for Louisiana tax clearance?
Only an item already under a properly filed Board of Tax Appeals proceeding or payment-under-protest refund suit could be excluded. Administrative review did not count, and an unfiled appeal did not…
Could a hotel bill an airline late for its contractual room minimum and preserve the over-six-month lease exemption?
Yes. The one-year agreement required the airline to pay for 29 rooms nightly even when fewer were occupied. Florida found no statutory payment-timing rule that barred the hotel from billing omitted…
When was a wheelchair and occupant securement system exempt from Florida sales tax?
A direct sale to a patient was exempt when made under a physician's prescription. Sales for resale to manufacturers, distributors, or other resellers, and documented sales to government or nonprofit…
How did California calculate the historical $100,000 net-income limit for the convention and trade-show nexus safe harbor?
Staff used gross income minus ordinary and necessary expenses. California trade-show sales and orders counted; revenue wholly unrelated to those activities did not.
Do business cards showing a salesperson's local Texas phone number - but no local address - create earned-surplus franchise tax nexus beyond PL 86-272?
No. Merely handing out business cards showing the salesperson's local telephone number - without a local address - does not go beyond Public Law 86-272 and does not subject the represented…
Can a dealer offset an administrative fee, an extended warranty, and VIN etch/car care against the motor-vehicle trade-in allowance?
It depends on whether the charge is part of the vehicle sale. An administrative fee is part of the gross receipts from the sale of the vehicle, so it can be offset against (reduced by) the trade-in…
Does the organization qualify as an exempt religious organization under the Kansas Retailers' Sales Tax Act, and what purchases are exempt?
Yes. The Department determined the organization is a religious organization under the Kansas Retailers' Sales Tax Act, so its direct purchases of tangible personal property and services used…
Does the organization qualify as an exempt religious organization under the Kansas Retailers' Sales Tax Act, and what purchases are exempt?
Yes. The Department determined the organization is a religious organization under the Kansas Retailers' Sales Tax Act, so its direct purchases of tangible personal property and services used…
Could a Florida section 501(c)(3) nonprofit buy or print its magazines and catalogs without sales tax?
Yes. Because the organization qualified under section 501(c)(3), held a Florida Consumer's Certificate of Exemption, and used the publications in its customary nonprofit activities, it could give…
When will the South Carolina Department of Revenue completely or partially waive a tax penalty?
A complete waiver requires reasonable cause; a partial waiver may be available for significant mitigating factors. The taxpayer must submit a signed written explanation.
Who owned, reported, and paid personal property tax on computer equipment under the two capital leases in SC PRO 02-4?
The lessee. Because the lessee was assumed to be the income-tax owner and bore the benefits and risks of ownership, the opinion treated it as property-tax owner for both capital-lease types and made…
Are wheelchairs, scooters, wheelchair lifts, ramps, and handicap-equipped vehicles exempt from Kansas sales tax?
It depends on the item. The Department's opinion is that an electric or manual wheelchair (whether sold or rented), a motorized scooter, and a wheelchair lift that attaches to a vehicle are exempt…
Were point-based timeshare memberships taxable when Florida regulators classified them as timeshare estates?
No. The points could be used only for club accommodations, carried perpetual occupancy rights, and had been classified as timeshare estates. Florida treated their sale as a real-property purchase…
If a New Mexico taxpayer overclaims a tax credit because the return form didn't say 'see instructions' on that line, do they still owe the extra tax plus penalty and interest?
Yes. The protest was DENIED. Robert Harris claimed a $1,331 prescription-drug credit on his 1998 New Mexico return when the law caps it at $300, because he filled out the form without reading the…
What South Carolina per-capita income figure did RIB 02-20 publish for the corporate-headquarters credit?
It published $24,886 as the most recently available South Carolina per-capita income figure for testing the personal-property component of the headquarters credit.
Are public wholesale water supply districts exempt from Kansas sales tax on their purchases?
Generally yes, with a condition. The Department indicated that a public wholesale water supply district (PWWSD) organized or operating under K.S.A. 19-3545 qualifies for the sales tax exemption on…
If an out-of-state company sells equipment to another out-of-state buyer but delivers it to a customer in New Mexico, is that sale taxed by New Mexico — and can the seller avoid the negligence penalty by saying the rules were unclear or the mistakes were tiny?
Yes, it's taxable, and the penalty stood — the protest was DENIED (except a stipulated Mevatech abatement). A Texas seller with New Mexico locations owed gross receipts tax on sales delivered to New…
Were mandatory homeowners' association assessments for common recreational facilities taxable club admissions?
No. After the recreational facilities became association common property, the assessments were mandatory conditions of owning or occupying the affected parcels, maintained an easement running with…
What documents and dates are covered by South Carolina's September 30, 2002 advisory-opinion index?
It is a subject index of South Carolina advisory opinions and informational bulletins issued from 1987 through September 30, 2002, not substantive tax guidance.
What did South Carolina's September 30, 2002 citator say about the status of earlier advisory opinions?
It identified opinions believed affected by later advisory opinions through September 30, 2002, but did not account for changes from statutes, regulations, or court decisions.
Is a natural gas pipeline company's charge for transporting gas taxable when it is not the supplier of the gas?
It depends on who supplied the gas. When the pipeline company is also the supplier of the natural gas, its charges to transport that gas to the customer are part of the taxable sale of the gas and…
Is there a fee to apply for a Nebraska lodging tax permit, and who must file for one?
There is no application fee. Under Revenue Ruling 68-02-1, Laws 2002, Second Special Session, LB 32, Section 2 repealed the fee for applying for a Nebraska lodging tax permit, effective October 1,…
Is there a fee to apply for a Nebraska litter fee permit, and who has to register?
There is no application fee. Under Revenue Ruling 28-02-1, Laws 2002, Second Special Session, LB 32, Section 2 repealed the fee for manufacturers, wholesalers, and retailers applying for a litter…
Which services became subject to Nebraska sales tax on October 1, 2002, and what do those service categories cover?
Effective October 1, 2002, Laws 2002, LB 1085 imposed Nebraska (and applicable local option) sales and use tax on the gross receipts of nine enumerated services, and Revenue Ruling 01-02-9 defines…
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