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.
Will a state-prescribed Texas sales tax exemption certificate that a customer completes electronically, signs with an electronic signature pad, and stores only in electronic form pass muster in a Comptroller audit?
Yes. The Comptroller's audit division accepts certificates with electronic signatures, in addition to certificates that have been scanned, faxed, or microfiched -- so a system that creates a non-alter…
I bought a $1,175,000 property that includes a vacant, un-modernized one-family house, intending to redevelop it as a residential subdivision or assisted-living facility -- I have no intention of using the existing house as anyone's personal residence, and the seller didn't live there either. I paid the 1% mansion tax at closing but I'm seeking a refund since neither of us actually used or intended to use the house as a residence. Am I entitled to that refund?
No refund -- the mansion tax was correctly assessed. Petitioner purchased property in New Rochelle, New York for $1,175,000 that included an existing, vacant, un-modernized one-family dwelling, and pa…
Are a billing-services company's separately stated charges for preparing customer bills, supplying extra report copies, reimbursed pass-through expenses, and envelope stuffing/postage all taxable in New York?
It splits by item. The core bill-preparation service (data processing, printing, formatting, plus bill stock/forms/envelopes) is not taxable, since preparing customer bills isn't an enumerated service…
Does a standalone casket retailer that sells directly to consumers (not through a funeral home) have to charge New York sales tax, even though funeral homes don't charge tax on the caskets they sell?
Yes, taxable. New York's sales tax exemption for caskets only applies when sold by a mortician, undertaker, or funeral director -- a standalone casket retailer selling directly to consumers, without b…
Was net gain from selling trademarks, goodwill, source code, patents, and other intangibles to a California corporation a Texas receipt?
No. The Comptroller treated the trademark, customer base, workforce in place, goodwill, source code, patents, and intellectual property as capital-asset intangibles. Net gain from their sale was a gro…
Is the labor to install a dome roof on an existing storage tank taxable, or exempt as original construction?
Taxable — installing a dome roof on top of an existing storage tank is not exempt "original construction," so the installation labor is subject to Kansas sales tax. Under K.S.A. 79-3603(p), installing…
Are a boar stud operation's semen sales, delivery charges, and supplies exempt from Kansas sales tax?
A boar stud operation's sales of semen dosages to Kansas hog producers are exempt when the buyer furnishes an exemption certificate, because semen bought by those breeding and raising hogs for ultimat…
Is welding rod a farmer buys to repair machinery exempt from Kansas sales tax?
Taxable — welding rod a farmer buys to repair machinery is a taxable welding supply, not exempt. It is not "farm machinery and equipment" or a "repair and replacement part" under the K.S.A. 79-3606(t)…
Did adding a general partner make renewed partnership notes and mortgages subject to new Florida stamp or intangible tax?
No, if the executed amendment preserved the same partnership and obligor and all statutory renewal requirements were met.
Did an obligation secured by a Florida leasehold mortgage owe annual or nonrecurring intangible tax?
It owed the one-time nonrecurring intangible tax because the leasehold estate was classified as real property; annual intangible tax did not apply.
Must a group that buys weather-alert radios with grant funds and resells them at cost collect Kansas sales tax?
Yes — a community group that bought weather-alert radios with FEMA Project Impact grant funds and resells them to residents and businesses is a retailer and must collect and remit Kansas sales tax, ev…
Are periodicals and writings sold by a church exempt from Texas sales tax, and does that exemption extend to formats other than print, like video tape, audio tape, or computer disk?
Yes. Tax Code Section 151.312 exempts periodicals and writings published and distributed by a religious, philanthropic, charitable, historical, scientific, or similar nonprofit organization. Effective…
A phone customer noticed their bill includes an FCC line charge, which they understood to be a federal charge tied to the number of incoming lines, within the total that Texas sales tax is calculated on. Since it looks like a federal tax/fee, should Texas sales tax apply to it?
Yes. The FCC line charge isn't a federal tax on the customer -- according to the FCC, it applies to all subscribers regardless of long-distance usage and is simply another way for the phone carrier to…
How did Florida's comprehensive arena TAA tax tickets, service charges, concessions, and event-facility rent?
Generally, ticket charges and required facility-lease payments were taxable, including convenience fees and mandatory operating-cost reimbursements. The TAA also recognized specific admission exemptio…
Could a Florida school board buy materials tax-free for school additions under its direct-purchase procedures?
Yes, if the board directly ordered and paid vendors, took title and liability at delivery, and bore the risk of loss before the materials were installed.
Was a thoroughbred sold at a Florida auction taxable when the seller delivered it by common carrier to the buyer in another state?
No, if the seller delivered the horse outside Florida through the common carrier and followed the interstate-sale rule. Tax applied if the buyer took possession in Florida.
Did an aircraft owner have Texas franchise-tax nexus when it leased planes to a carrier operating flights involving Texas?
It depended on the carrier's Texas activity. The aircraft owner was subject to franchise tax if its planes were leased to common carriers providing intrastate Texas transportation or maintaining Texas…
A commercial monitoring company separately bills clients for security-system monitoring and fire-alarm-system monitoring, subcontracting the actual monitoring to its parent company. Are separately stated charges for monitoring a fire alarm system taxable the same way as security system monitoring charges, and what about the telecommunications lines used to run both?
No -- separately stated charges for monitoring FIRE alarm systems are NOT subject to Texas state and local sales tax, while separately stated charges for monitoring SECURITY systems ARE taxable. On th…
Did Florida's 1999 TAA tax a contribution of unencumbered land to a wholly owned LLC?
Historically, yes—but this TAA is expressly marked obsolete. The Department's 1999 position treated the increased value of the owners' LLC interests as consideration and taxed the deed based on the la…
Did endorsing a Loanliner advance check create a Florida documentary-stamp-taxable written obligation to pay money?
Yes. The borrower's endorsement made the check a taxable written obligation because the reverse side stated that the borrower agreed to pay the amount shown on the accompanying voucher.
Which foodservice products sold to restaurants, nursing homes, and schools are exempt from Kansas sales tax?
It depends on the item and the buyer. Disposable foodservice items a restaurant passes to the customer with the meal — napkins, straws, doilies, toothpicks, disposable cups and silverware, carryout co…
Is demolition labor taxable in Kansas, or exempt when tied to original construction?
Taxable — on these facts the demolition labor is subject to Kansas sales tax, and the contractor's purchases of materials and supplies to perform the contract are taxable too. K.S.A. 79-3603(p) taxes …
Is a domestic violence shelter's food purchases exempt from Kansas sales tax?
Taxable — a domestic violence group shelter is not exempt from Kansas sales tax on the food it buys to prepare meals for its residents. The Department explained that not every nonprofit organization e…
Does a corporation owe Texas franchise tax just because it owns, or is affiliated with, a limited partner in a Texas limited partnership?
Merely owning or being affiliated with a limited partner does not create franchise-tax nexus, but putting people in Texas can. The Comptroller declined to rule that two Florida corporations were free …
A commercial photography studio creates images (conventional film transparencies or digital media) for advertising clients and, on request, does pre-press production work (scanning, color-adjusting, image-setting, and proofing) to prepare 4-color film and proofs for the client's printer. Which of the studio's cameras, computers, scanners, and other equipment qualify for Texas's manufacturing exemption?
The studio qualifies as a manufacturer under Sec. 151.318 because it fabricates tangible personal property (transparencies, electronic media, 4-color film, proofs) for sale. Under new Sec. 151.318(t) …
How were GNMA mortgage-backed security interest receipts apportioned when the underlying mortgagors could not be identified?
Rule 3.549(e)(13)(D) applied. The Comptroller rejected the taxpayer's argument that the private securities issuer was the payor, maintained that a GNMA security holder owned an undivided beneficial in…
If a retailer refunds an extended warranty charge, must it also refund the sales tax collected on it?
Yes — when a retailer refunds an extended warranty charge (here, by sending a check to the finance company to reduce the loan principal), the state and local sales tax that was collected on that warra…
If a worker files a 'zero income' return claiming a refund of all withholding and then stops filing, can New Mexico add a 50% fraud penalty on top of the back tax?
Yes — and it did. The protest was mostly denied. A U.S. West employee who had paid New Mexico income tax jointly with his wife for 1994 and 1995 suddenly filed a 1996 return reporting zero income and …
Was a motor vehicle sale to the Kickapoo Indian Tribe exempt from Texas motor vehicle sales tax, and did the exemption extend to individual members?
A sale directly to the Kickapoo Indian Tribe was exempt. The letter said a federal statute exempted the Alabama-Coushatta, Kickapoo, and Tigua tribes from state sales and excise taxes. But the buyer h…
Are video captioning services taxable in Kansas, and can the blank tape be bought exempt?
Video captioning is a taxable service in Kansas, so the company must collect sales tax on the gross receipts it charges customers for captioning. Kansas taxes the service of servicing or altering tang…
For a private club's construction/renovation contracts billed lump-sum, what kind of written statement or contract language satisfies Rule 3.286(d)(3)'s requirement that a stated price includes sales tax, and which of several possible documents (purchase order, bid, signed contract, invoice) controls for that purpose? Separately, is a CPA firm's computer-prepared payroll tax reports for the club a taxable data processing service?
For 'tax included' lump-sum billing, Rule 3.286(d)(3) requires either the tax be separately stated OR a written statement that the price includes tax; whether a given letter/purchase order/bid satisfi…
Are charges for audio-conference bridging services -- conference management without providing the transmission -- subject to New York sales tax or to the section 186-e and 186-a gross receipts taxes?
No. When a provider supplies only audio-conference bridging services -- reserving and programming a bridge, issuing passcodes, verifying participants and assisting them, while the participants buy tra…
How did Texas treat lease acquisition fees, roadside assistance, credit-card rebates, and resale-inventory vehicles used as trade-ins?
A lease-document fee paid to the lessor or lienholder was outside the vehicle's taxable sales price, and roadside assistance was not taxed. A non-captive credit-card contribution was taxable considera…
Could a restructuring banking group stop filing Florida consolidated corporate income tax returns?
Yes. Florida found good cause in the banking group's major restructuring and approved separate filing for 1998 and later years, subject to four conditions concerning timing, deferred items, tax neutra…
Were golf tournament fees taxable to members, and which county's local surtax applied to a course spanning two counties?
Member tournament fees were not taxable when existing membership already allowed course use at no extra charge; nonmember fees were taxable. On these multicounty facts, no surtax was due because payme…
When were Internet sales of tangible personal property Texas franchise-tax receipts under the former delivery and throwback rules?
The sales method did not matter. Tangible personal property sold online or otherwise was a Texas receipt when shipped or delivered to a Texas buyer. Property delivered from Texas to an out-of-state pu…
When a direct sales organization's independent distributor has overpaid sales tax (e.g., on products kept for personal use, sold out of state, or discounted below suggested retail price), how should the distributor get that overpaid tax refunded or credited -- directly from the Comptroller, or from the direct sales organization itself?
From the direct sales organization itself, not the Comptroller. Because the Comptroller treats the direct sales organization as the seller (requiring tax to be initially collected on the suggested ret…
When a retailer sells on credit, is sales tax due on the full accounts receivable balance right away, or only as payments are actually collected over time?
It depends on the retailer's own accounting method. If the retailer uses ACCRUAL basis accounting, the ENTIRE tax on the credit sale is due and must be reported at the time of the sale. If the retaile…
A sawmill sells railroad ties to railroad companies and also manufactures lumber generally. Are the railroad ties exempt from sales tax, and separately, do lubricants used in the sawmill's manufacturing machinery qualify for the manufacturing exemption?
Yes to both, with certificates required either way. A railroad company can give the sawmill an exemption certificate to buy railroad ties tax-free under Sec. 151.331 (rolling stock/locomotive fuel and…
Two companies provide liability-investigation services to attorneys representing plaintiffs and defendants in injury cases -- not directly to insurance companies -- and argue that because they don't work on 'first-party' claims (an insured's own claim under their policy) and any insurance involved is only incidental to determining liability between litigants, their services shouldn't count as taxable insurance services. Is that right?
No. The companies are providing taxable insurance services whenever they're paid to investigate a loss pertaining to a policy of insurance, regardless of who hires them or whether the claim is a first…
Which wheelchairs, walkers, chairs, beds, mattresses, and massage products were exempt from Florida sales tax?
Wheelchairs, mobility scooters serving as powered wheelchairs, and three- or four-wheel push walkers were exempt without a prescription. The reviewed chairs, beds, mattresses, loungers, and massage de…
Are a nonprofit club's Christmas-tree fundraising sales exempt from Kansas sales tax?
Taxable — a nonprofit 501(c)(4) club that sells Christmas trees to raise funds for other nonprofits gets no Kansas sales tax exemption for those sales. The Department found that Kansas law does not co…
Does a separately incorporated group that includes churches, businesses, and lay persons qualify for the Kansas religious-organization exemption?
No — a separately incorporated organization whose membership includes not only churches but also businesses and lay persons does not qualify as a "religious organization" for the Kansas sales tax exem…
Did receiving financial assistance from a development corporation qualify a business for the former Texas enterprise-zone deductions?
No. Section 171.1015 required both designation as an enterprise project by the Texas Department of Economic Development and qualifying investment in an approved enterprise zone. Receiving financial as…
Someone selling mail order products from home (supplied by a California company) asked whether they need a Texas sales tax permit, and how local tax is determined when the business operates out of a home or apartment.
Yes, a sales tax permit is required, and the seller is responsible for collecting and remitting state and local sales tax on Texas sales (sales shipped outside Texas are exempt). The home itself is th…
Why can't an independent distributor of a direct sales/multi-level marketing company simply give the company a resale certificate and buy products tax-free, the way an ordinary reseller would?
Because Tax Code Section 151.024 authorizes the Comptroller to treat the direct sales organization itself -- not the individual salesperson/distributor -- as the retailer responsible for the tax, spec…
Is a youth baseball nonprofit exempt from Kansas sales tax on its purchases?
Taxable — a youth baseball nonprofit is not exempt from Kansas sales tax and must pay tax on its purchases of tangible personal property and taxable services. The Department explained that not every n…
A manufacturing facility that handles powder ingredients asked about the taxability of an equipment enhancement: silos, scale hoppers, filters/receivers, piping/fittings/valves, instrumentation, a motor control center, and a bag dump station with a convey air compressor. Which of these qualify for the manufacturing exemption?
Mostly taxable, with narrow exceptions tied to quality control. Silos (storage of raw powder) are taxable. Scale hoppers are exempt ONLY if they actually measure the recipe amounts used in the mixers …
A retailer demolished most of an existing 49,887-square-foot store -- removing the floor slab, all electrical, all plumbing, the fire protection system, the roof, and the entire parking lot -- but kept one side wall, the rear wall, and the steel columns/joists, then expanded the footprint to 59,666 square feet. Is this project taxed as new construction or as taxable remodeling?
Mostly remodeling, with one new-construction carve-out. Total demolition means removing the ENTIRE structure except the slab -- since this project kept a side wall, rear wall, and the steel columns/jo…
Can caterers, party planners, florists, and bridal consultants who rent tables, linens, china, vases, and candelabras to re-rent to their own customers use a resale certificate instead of paying tax on the rental?
It depends on whether the renter serves prepared food. Food service operators -- restaurants, caterers, party planners, bridal consultants, and others who serve prepared food -- may NOT purchase, leas…
Did contributing Texas real estate to a partnership and liquidating two single-member LLCs change their taxable earned surplus when federal law recognized no gain or loss?
No, if the stated federal nonrecognition held. Two single-member LLCs would contribute Texas commercial property to a Virginia limited partnership for a combined 99% interest, then liquidate and distr…
Can a Texas movie theater buy admission tickets tax-free for resale, and does the same rule apply to the gift certificates, envelopes, and passbooks it buys?
Movie tickets may be purchased for resale under Rule 3.298(f)(1), so a theater that already paid tax on tickets can get a refund by issuing its supplier a resale certificate (limited to a four-year st…
Does a 501(c)(3) counseling agency qualify for the Kansas religious-organization sales tax exemption?
No — a 501(c)(3) nonprofit counseling agency does not qualify as a "religious organization" for the Kansas sales tax exemption under K.S.A. 79-3606(aaa), and a sales tax exemption it holds in another …
Could a single-member LLC deduct the owner's one-half self-employment-tax adjustment when computing taxable earned surplus?
No. Rule 3.562(f) allowed income and deductions relating to the LLC but barred compensation deductions for the owner, who was not an LLC employee for federal purposes. The one-half self-employment-tax…
If a Texas defense contractor's gas and electricity use is exempt because it makes defense/national-security electronics for the U.S. Government, does the exemption also cover indirect uses like offices, cafeterias, and restrooms?
No. The Section 151.317(c)(2)(A)(vi) exemption applies only to gas and electricity actually used in performing the listed defense-related activities (manufacturing precision-guided weapons, radar, nig…
If I move my home and domicile out of New York but keep working for my New York-based employer from my new state, is my pay still taxed as New York-source income?
No, not once you have actually relocated. New York's Department of Taxation and Finance concluded that a stockbroker who changed his domicile from Westchester County to Wyoming, stopped reporting to t…
Does an interfaith council of congregations and individual delegates qualify as a Kansas religious organization?
No — an interfaith council whose membership includes congregations, several religious organizations, and individual delegates does not qualify as a "religious organization" for the Kansas sales tax ex…
Does a Texas company that performs artificial insemination of cattle on ranches owe sales tax on its semen, insemination labor, and the AI supplies/equipment it uses to perform the service?
No. Charges for semen and insemination labor are not subject to sales tax at all, and Tax Code Section 151.316's farm/ranch exemption covers AI supplies, AI equipment, animal care products, liquid nit…
Did moving a vehicle's turn-signal control to the right side of the steering column qualify for Texas's disability vehicle exemption?
Yes. Moving the turn-signal control to the right side of the steering column was a qualifying modification for the driver with left-side paralysis. The modification had to be required at the time the …
If a Texas retailer gift-wraps an exempt item like a Bible for an extra charge, is the gift-wrapping charge taxable?
No. Gift wrapping is not itself a taxable service, and a charge for gift-wrapping an item follows the tax treatment of the item being wrapped. Because Bibles and other books are exempt from Texas sale…
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.