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 fewer or different words, check the spelling, or clear the filters to browse everything.
Were the notes, mortgages, credit-enhancement agreements, and related documents for higher-education revenue bonds subject to Florida taxes?
No. Statutory exemptions covered the specified trust indentures, loan agreements, letter-of-credit and reimbursement agreements, and related bank and insurer mortgages for the Series 2002A and 2002B…
If an auto body shop didn't get the required certificates from dealer customers and never charged them tax, does it still owe gross receipts tax — and does its accountant's bad advice at least waive the penalty?
Yes on the tax, no on the penalty — a split result. JM Body Shop deducted receipts from work for auto dealers but never got the required nontaxable transaction certificates in time, so those…
Are dietary supplements such as protein drinks subject to Kansas sales tax?
Yes. The Department advised that Kansas sales and use tax law provides no exemption for dietary supplements such as protein drinks, so the seller must collect and remit Kansas sales/use tax on those…
Can a nonprofit that promotes a specific county, city, or area get the Texas franchise-tax exemption, and what must it show?
A nonprofit corporation organized solely to promote the public interest of a specific county, city, town, or other area within Texas can qualify for a franchise-tax exemption under Tax Code Sec.…
If a New Mexico taxpayer misses the 30-day deadline to protest a tax assessment, can the Administrative Hearings Office still review the assessment on the merits?
No. Gilman Construction did not protest a 1998 gross receipts tax assessment within the 30 days that Section 7-1-24 requires. Years later, after a Department collection letter, it wrote in disputing…
What deed-tax and sales-tax registration results followed a partnership's conversion to an LLC and later transfers to subsidiary LLCs?
A deed recorded solely for the partnership-to-LLC statutory conversion was not subject to documentary stamp tax because title vested by operation of law. Later deeds from the parent LLC to…
Was documentary stamp tax due when an individual transferred unencumbered Florida property to a newly formed wholly owned corporation?
No. The individual was the property's sole owner, would be the corporation's sole shareholder, received no consideration for the transfer, and the property had no mortgage. Applying Kuro, the…
How did California treat gain when one insurance-exchange attorney-in-fact liquidated wholly owned attorney-in-fact subsidiaries under a transaction intended to qualify under section 332?
California split the gain by the assets that produced it. Gain attributable to assets used in the principal attorney-in-fact insurance business was exempt from corporation franchise tax under the…
If my corporation claimed federal bonus depreciation, does it have to add part of it back on its Nebraska corporate income tax return?
Yes, in part. Under Revenue Ruling 24-02-1, a corporation that claimed federal bonus depreciation under the Job Creation and Worker Assistance Act of 2002 (Internal Revenue Code sections 168(k) or…
If a trust or estate claimed federal bonus depreciation, must it add part of it back on its Nebraska fiduciary income tax return?
Yes, in part. Under Revenue Ruling 23-02-1, a fiduciary (estate or trust) that claimed federal bonus depreciation under the Job Creation and Worker Assistance Act of 2002 (Internal Revenue Code…
If I claimed federal bonus depreciation, do I have to add part of it back on my Nebraska individual income tax return?
Yes, in part. Under Revenue Ruling 22-02-1, individuals who claimed federal bonus depreciation under the Job Creation and Worker Assistance Act of 2002 (Internal Revenue Code sections 168(k) or…
Is meat bought to be processed and then sold at retail exempt from Kansas sales tax as an ingredient or component part?
Yes. The Department advised that meat purchased to be processed and ultimately sold at retail to consumers is exempt from Kansas sales tax as an ingredient or component part under K.S.A. 79-3606(m).…
When did communications services sold to resort-condominium owners qualify for Florida's residential household exemption?
Permanent residents and seasonal residents who left their units vacant qualified for the residential household exemption. Units placed in an on-site manager's licensed public-lodging program did…
Are garage doors, repair parts, and repair services at a salt-manufacturing plant exempt as integrated production equipment?
No. Garage doors provided access to the manufacturing building but did not receive, move, transform, test, control, package, power, or otherwise perform any function of integrated production…
How did Louisiana tax a dealer's sale of a movable building, and when did a permanently installed structure instead make the seller a contractor?
A temporarily installed movable building was tangible personal property taxed on its full price, including fabrication, overhead, and profit; optional separately stated delivery and installation…
How does a Nebraska estate or trust figure its 2001 credit for prior year minimum tax?
Recompute the federal credit for Nebraska. Under Revenue Ruling 23-01-2 (a corrected version), Neb. Rev. Stat. §77-2717 requires an estate or trust to recalculate the federal credit for prior year…
Did a county's airport public-works agreement make the county the tax-exempt purchaser of construction materials?
No. The agreement did not clearly include any of six required protections: county purchase orders with its exemption number, county title and liability at job-site delivery, direct vendor invoices,…
How did Tennessee tax materials and carpet for a church sanctuary addition with classrooms, kitchen, and a multipurpose room?
The addition qualified as church construction because it served recognized church functions, had no revenue-generating purpose, and was expected to remain property-tax exempt. Church-purchased…
Were a church and its contractor taxed when the church bought materials for a sanctuary addition and held title to them?
Generally no. A church with a valid exemption certificate could buy materials tax-free, and its contractor could use church-owned materials in qualifying church construction without use tax. But a…
Could sellers avoid tax on an asset sale by first contributing the assets to a new LLC and concurrently selling the LLC interest for cash?
No. The interdependent agreements formed one integrated sale of tangible personal property for cash. The purchaser's binding commitment to buy the new LLC interest was additional consideration, so…
Does the federal 'bonus depreciation' from the Job Creation and Worker Assistance Act of 2002 apply for the Texas franchise tax?
It depends on which component. For the earned surplus component of the Texas franchise tax, bonus depreciation has no effect: earned surplus is calculated under the Internal Revenue Code of 1986 as…
Were university revenue bonds issued by a direct-support organization on behalf of a state board exempt from Florida taxes?
Yes. The direct-support association acted as agent for the state university board, and Chapter 243 separately exempted the bond issuance. The Series 2001 bonds were exempt from documentary stamp…
Could a parent company stop Florida consolidated filing after organizational changes left only the parent with Florida nexus?
Yes, subject to four conditions. The affiliated group had changed substantially after Florida-operating subsidiaries were sold or dissolved and only the parent retained Florida nexus. Permission…
Could a banking group stop filing Florida consolidated corporate income-tax returns after major legal and business changes?
Yes. The Department found the group met the rule's good-cause standard based on changes in law and fundamental changes in business activities, including ownership, scale, customer base, and…
If I ship merchandise directly to a Utah customer on behalf of a foreign reseller I sold it to, do I have to collect Utah sales or use tax?
No. When an out-of-state vendor sells merchandise to a foreign reseller with no Utah nexus and ships it directly to the reseller's Utah customer, the sale to the reseller is a sale for resale — the…
Under Utah's HB 1006, is interest earned by a mutual fund holding out-of-state municipal bonds taxable, and does it matter when the mutual fund itself (versus the underlying bonds) was purchased?
It depends on the purchase date and whether reciprocity applies — and the Commission later flagged this exact ruling for reconsideration. Under the ruling's original interpretation, HB 1006 taxes…
Are a nonprofit ice arena's skating sessions, lessons, hockey leagues, and concession sales exempt from Utah sales tax as a charitable organization?
Mostly yes, with one carve-out. Public skating, lessons, hockey and figure/speed skating fees, event admission, skate sharpening, related equipment sales, advertising, and donations are exempt…
How did Utah's 2001 legislation affect Utah income tax on interest from out-of-state government bonds held through mutual funds or investment trusts?
In its April 2002 response, Utah said interest from a mutual fund bought before January 1, 2003 would remain outside Utah tax even if the fund later changed its bond holdings. Dividend reinvestments…
How is a general partner in an independent power producer taxed, and are PSC-mandated contract termination payments taxable utility income?
An IPP general partner is taxed under Article 9-A for years beginning on or after January 1, 2000 (after section 186 was repealed); for earlier years it fell under section 186 only if it was…
Does a nonprofit association of teaching physicians qualify for Kansas's educational-institution sales-tax exemption?
No. The Department advised that a newly formed nonprofit 'institute' — an association of teaching physicians organized as a 501(c)(3) school — does not qualify for the Kansas educational-institution…
Was Georgia IRT due on a security instrument recorded in Georgia when the lender had no Georgia principal office and the loan transactions occurred elsewhere?
Yes. Georgia denied the refund because IRT applies to the privilege of recording the security instrument in Georgia, regardless of the lender's principal office or where the loan transactions occurred.
Was a long-term note subject to Georgia IRT when Georgia real property secured it but was not the note's primary security?
Yes. Georgia denied the refund because the long-term note was secured by real property. The fact that the property was not the note's primary security did not remove the IRT.
Was Georgia IRT due on the proposed filing when the instrument's beneficial owner held exempt public property?
No. Georgia found the proposed filing exempt because the instrument's beneficial owner held public property. The letter did not base its holding on the index's 'no business situs' label.
How are receipts from internet sales of gift certificates and gift checks sourced for the New York receipts factor?
They are intangible other business receipts sourced to where the customer accesses the website. Selling merchant certificates, gift certificates, and gift checks over the internet is not a sale of…
Are purchases Utah state agencies and local governments make with the State Purchasing Card exempt from sales and use tax?
Yes. Purchases made with the State Purchasing Card are exempt from Utah sales and use tax because the card is paid for directly by the State of Utah — the issuing bank bills the state, which pays it…
Can a New Mexico company get back the interest and penalty on a late gross receipts tax (CRS) payment because a temporary employee later mailed the payment check to the wrong state agency, or because the company has a long, clean filing record?
No. Commodore Advanced Sciences paid $105,404.76 of September 2000 CRS (gross receipts) taxes one month and three days late, triggering two months of interest and penalty totaling $6,851.31 under…
Is a person who delivers mail for the U.S. Postal Service under a highway contract route an employee exempt from New Mexico gross receipts tax, or a taxable independent contractor?
She is a taxable independent contractor, so her mail-route payments are subject to gross receipts tax. Cynthia King delivered mail under a U.S. Postal Service highway contract route (HCR) and…
Was licensed practice-management software exempt as customized software because it took more than a year to implement and integrate?
No. A lengthy implementation and integration into the customer's proprietary platform did not establish customized software. The contract described sale or licensing of the vendor's proprietary…
Were a tenant's monthly repayments of a landlord-funded improvement allowance taxable as part of commercial rent?
Yes. The lease treated the reimbursements as additional rent, required payment to retain occupancy, priced the base rent with the improvements in mind, and gave the improvements to the lessor at…
What South Carolina tax relief did RPB 02-1 provide to military personnel serving in the Afghanistan combat zone and their spouses?
It extended affected service members' and spouses' 2001 individual income-tax filing and payment deadline until 180 days after combat-zone service ended.
Were purchases made with federal employee credit cards exempt from South Carolina sales and use tax under the historical guidance?
It depended on who was billed. Direct federal-government purchases were exempt, while employee-billed purchases followed by reimbursement were taxable.
Which educational software qualified as a tax-exempt textbook under South Carolina's 2002 opinion?
Only Programs G and H qualified on the stated facts because students used them like workbooks to practice grammar, punctuation, and usage. Programs A-F, I, and J were assessment, diagnostic,…
How do Connecticut's sales, use, admissions, and motor vehicle fuels taxes apply to a federally recognized Indian tribe's purchases and sales, both inside and outside its Indian country?
It depends on who legally bears the tax and where value is generated. Under U.S. Supreme Court doctrine, if a tax's legal incidence falls on the Tribe for a sale made inside Indian country,…
When a contractor installs kitchen appliances for hotels, institutions, and tax-exempt organizations, which appliances are taxable free-standing property and which are tax-exempt capital improvements — and does it matter when title to the appliances transfers or whether the customer is tax-exempt?
Free-standing appliances like dishwashers, refrigerators, ovens, and stoves remain taxable tangible personal property even when installed as part of a larger project, but built-in appliances…
If a New Mexico Department employee reviews your income tax return and tells you it looks correct, can the state still charge you penalty and interest when the return turns out to be wrong?
The penalty is abated, but the interest stands. Joseph Apodaca wrongly claimed a $16,000 over-65 deduction his income was too high to allow, then took the return to a Department office where a…
Does a New Mexico business owe interest on unpaid gross receipts tax when it mistakenly deducted its receipts from a government day-care program, even though the underpayment was innocent and the state took years to audit?
Yes. Kid’s Kountry, a day care, wrongly deducted all of its payments from a state program (CYF). While sales of food to the government are exempt, sales of services to the government are taxable —…
When a corporation gets a franchise-tax extension but doesn't file by November 15, does the statute of limitations run from May 15 or November 15?
It depends on how the extension was obtained. If the corporation got its extension by paying 100% of the tax reported in the prior period, Texas Tax Code Sec. 171.202(c)(2)(B) makes the extension…
Are labor services performed on a fraternity house at a state university exempt from Kansas sales tax as work on a residence?
Yes — the labor is exempt. The Department advised that a fraternity (or sorority) house is a residence — an enclosure constructed for human habitation — so labor services to repair it qualify for…
Is a religious organization's direct purchase of hotel accommodations exempt from Kansas sales tax with a proper exemption certificate?
Yes. The Department advised that a direct purchase of hotel accommodations by a Kansas or out-of-state religious organization is exempt from Kansas sales tax when supported by a properly completed…
Is the rental of construction equipment to a contractor installing manufacturing machinery exempt from Kansas sales or use tax?
No. The Department advised that Kansas law does not exempt the purchase or rental of construction equipment by a contractor for the purpose of installing manufacturing machinery, so the rental of…
Are royalties from licensing patents and other intellectual property to manufacturers sourced to New York based on where the licensee manufactures?
Yes. Royalties from licensing product and process patents are allocated to New York under section 210.3(a)(2)(C) when the licensee uses the patents in New York, and royalties from licensing trade…
Could an LLC formed by a tax-free corporate merger claim Tennessee's family-owned noncorporate franchise and excise tax exemption?
The merger itself did not prevent the LLC from qualifying in the next year, and a federally tax-free asset transfer was also tax-free for Tennessee excise tax. But an LLC electing C-corporation or…
What are the carryback and carryforward rules for a corporate franchise-tax 'business loss,' and is it the same as a federal NOL?
A Texas franchise-tax 'business loss' is defined by Texas Tax Code Sec. 171.110(e) and Franchise Tax Rule 3.555(b)(1), which allow it to be carried forward to the five successive years following the…
Is a web-hosting company's purchase of internet 'bandwidth' from telecommunications carriers exempt from New York sales tax as interstate or international telephone service?
No, it's taxable. Even though most of the web site's visitor traffic comes from outside New York, the bandwidth purchase itself is treated as intrastate telephone service delivered to and consumed…
Are refundable 'land fund' security deposits that a country club requires as a condition of membership subject to New York's social/athletic club dues tax?
Yes. A 'land fund' deposit that a country club requires new members to pay as a condition of joining is an 'initiation fee' subject to sales tax, regardless of the fact that it's kept in a…
Can a bus company get a New York sales tax refund on the portion of its diesel fuel purchase price that corresponds to federal excise tax the IRS later refunds to it?
No. Because the sales tax is computed on the full price the vendor actually received at the time of the sale -- which properly includes the federal excise tax embedded in that price -- a later…
Is an elk farmer's purchase of a hydraulic elk squeeze and handling system exempt from New York sales and use tax as farming production equipment?
Yes, as long as it's used more than half the time for that purpose. Because the elk squeeze and its handling pens are used to immobilize elk for artificial insemination, semen collection, antler…
Does selling candy and snacks from open, unlocked vending trays for 75 cents or less qualify for New York's coin-operated vending machine sales tax exemption?
No. An open vending tray where customers simply take candy or snacks and drop payment in a nearby coin box is not a 'vending machine' under New York's sales tax law, so sales through it don't…
I'm a 99% limited partner in a partnership that owns one piece of commercial real estate worth $51 million (with $41 million in mortgages). I'm considering transferring my entire limited partnership interest into an irrevocable grantor retained annuity trust (GRAT), which will pay me an annuity for seven years and then pass the remaining trust principal to a discretionary trust for my husband and children. Does either transfer -- into the GRAT, or later out of it -- trigger New York's Real Estate Transfer Tax?
Two different answers for the two transfers -- taxable going IN to the GRAT, exempt coming OUT. Petitioner held a 99% limited partnership interest in a partnership whose only asset was commercial…
What documents and dates are covered by South Carolina's March 2002 advisory-opinion index?
It is a subject index of South Carolina advisory opinions and informational bulletins issued from 1987 through March 31, 2002, not substantive tax guidance.
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.