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.
Can an auditor adjust a corporation's Texas earned surplus based on a federal Form 1139 tentative-refund application carrying back an NOL?
Yes, an auditor may adjust the corporation's net taxable earned surplus. The taxpayer filed a federal Form 1139 (Application for Tentative Refund) carrying back NOLs, which reduced a prior-year…
In a section 338(h)(10) stock sale, is a subsidiary's actual distribution of unwanted assets to its parent treated as part of a complete liquidation for Article 9-A?
It follows the federal treatment. Where a target corporation actually distributes unwanted assets to its selling parent in connection with a section 338(h)(10) stock sale, and the distribution is…
Were charges for high-speed satellite downloading, bundled or satellite-only Internet access, dedicated lines, and purchased Internet access taxable in the four scenarios presented?
No. Downloading was an excluded information service, Internet access was protected by the then-applicable federal moratorium, dedicated lines were sourced outside Louisiana, and purchased Internet…
Does the federal FSC Repeal and Extraterritorial Income Exclusion Act of 2000 affect the Texas franchise tax, and how is a Foreign Sales Corporation treated?
The federal FSC Repeal and Extraterritorial Income Exclusion Act of 2000 has no effect for Texas franchise tax purposes. Texas franchise tax is calculated under the Internal Revenue Code of 1986 as…
When a subsidiary with federal NOLs liquidates into its parent, do the losses carry over to the parent for Texas franchise tax?
No. A parent (P) bought all the stock of a subsidiary (S) that had unused federal net operating losses (NOLs), then liquidated S into P with non-recognition under IRC Sections 332 and 337, and under…
Was use tax due when an affiliated Mexican company drove promotional pens into California and delivered them to the USPS for mailing as gifts?
Yes. The donor retained control until its affiliate's driver delivered the pens to the USPS in California, completing the gifts after importation ceased; that California use was taxable.
Could a tribe make a non-Indian contractor and its subcontractors tax-exempt purchasing agents for reservation construction materials?
No. Contract labels did not transfer tribal sovereign immunity. Materials and equipment sold to non-Indian contractors remained taxable, subject to specific direct-sale rules.
When a Texas parent's LLC (taxed federally as a partnership) sells all its assets, is the gain included in the parent corporation's Texas franchise-tax receipts?
No. The taxpayer (a corporation) owns an LLC that elected to be taxed federally as a partnership; the LLC sold all of its telecommunications assets to a buyer, and the taxpayer did not sell any of…
Does a water company's discounted (bargain) sale of open space land and conservation easements to the State and a nonprofit qualify for the open space land donation tax credit, and how is 'use value' measured given the land's restrictions?
Yes -- the discounted (bargain) sale qualifies for the credit, and 'use value' is measured net of the land's restrictions. A water company that sells Class II/III land and Class I conservation…
For an interstate ferry crew and onshore staff, whose wages are subject to Connecticut income tax withholding and Connecticut income tax, given the federal law that preempts state taxation of vessel crew?
Federal maritime law (46 U.S.C. section 11108) controls the ferry crew. For masters and seamen who work on the interstate ferries (including those with de minimis onshore duties), Connecticut CANNOT…
Could South Carolina use-tax liability be reduced by sales or use tax paid to another state on the same property?
Yes, if the other state's tax was due and paid and that state allowed a substantially similar credit; any South Carolina tax exceeding the credit remained due.
Does a local 501(c)(3) charity that helps cancer patients qualify for a Kansas sales-tax exemption?
No. The Department advised that a local charity that assists cancer patients — even with federal 501(c)(3) status — does not qualify for a Kansas sales-tax exemption. Exemptions are narrowly…
Does a 501(c)(3) charity that grants wishes to seriously ill children qualify for a Kansas sales-tax exemption?
No. The Department advised that a local chapter of a wish-granting charity for children with life-threatening illnesses — even with federal 501(c)(3) status, a charitable solicitation license, and a…
Does the newly enacted federal Job Creation and Worker Assistance Act of 2002 change the Texas franchise tax?
No. The new provisions of the federal Job Creation and Worker Assistance Act of 2002 have no effect for Texas franchise tax purposes. Texas franchise tax is calculated under the Internal Revenue…
Are sales from Texas-Mexico border duty-free stores, picked up in 'No Man's Land,' Texas receipts for franchise tax even though the goods are exported?
Yes. Sales of goods from border duty-free stores (Class 9 U.S. customs bonded warehouses) - where a store employee delivers the goods to the customer in 'No Man's Land' at the border - are Texas…
When were sales or leases of kinetic-therapy and pressure-reduction medical beds exempt from Florida sales tax?
Beds sold or leased for an individual patient's use under a physician's prescription were exempt. A hospital or treatment facility's purchase for general on-premises use was taxable. A facility…
What must a cooperative (organized as an LLC) show to get the Texas franchise-tax cooperative-association exemption, and can it use the marketing-association exemption instead?
To qualify for the Texas franchise-tax exemption for a cooperative association under Tax Code Sec. 171.075, the cooperative must be incorporated under (or, if foreign, abide by the provisions of)…
Must a museum collect Kansas sales tax on tour-ticket admissions and gift-shop sales?
Yes to both. The Department advised that a museum must collect Kansas sales tax on the sale of tour tickets that admit people to the museum, because K.S.A. 79-3603(e) taxes the gross receipts from…
Were Tennessee cleaning, recoating, restoring, and repair services taxable for equipment owned by in-state and out-of-state businesses?
Generally yes. Services performed in Tennessee were taxable on the full charge even when customers and return destinations were outside the state. Repair of qualifying industrial machinery could be…
Does warehousing products in Texas for less than a week qualify as a 'necessary delay in transit,' or are the receipts subject to the throwback rule?
The Texas warehousing here is not a 'necessary delay in transit,' so the receipts are Texas sales subject to the throwback rule. Franchise Tax Rules 3.549(e)(41)(G) and 3.557(e)(37)(G) recognize no…
Does a nonprofit providing housing and job-training services qualify for the Texas franchise-tax charitable exemption?
No, not under the state charitable exemption. To qualify under Texas Tax Code Sec. 171.062, a corporation must devote all or substantially all of its activities to the alleviation of disease,…
Did a nominee company owe Florida annual intangible tax on claim-expense-fund assets it held as agent for an exempt insurer?
No. The nominee itself was not an insurer, but it held the assets only as agent for a licensed motor-vehicle service-agreement company that qualified as an exempt insurer. Because the principal had…
How did Florida tax a long-term vehicle lease after a vehicle leased in another state was moved to and registered in Florida?
Florida allowed credit when the other state required an upfront like tax from the lessee and allowed no refund after removal. If that tax rate was lower than Florida's state and applicable surtax…
Did a publisher owe Florida sales tax on the paper, printing, folding, and binding used to produce a free apartment advertising guide?
No. The Department reviewed the guide and found that its regular free distribution through newsstands in public venues, primarily as apartment advertising, satisfied Florida's exemption for…
Could a school board buy materials tax exempt for additions at three elementary schools under its proposed direct-purchase procedures?
Yes. The procedures made the school board the purchaser because it issued purchase orders with its exemption number, received direct invoices, paid vendors directly, took title and liability at…
Could a school board buy materials tax exempt for a junior-high media-center project under its proposed direct-purchase procedures?
Yes. The procedures made the school board the purchaser because it issued purchase orders with its exemption number, received direct invoices, paid vendors directly, took title and liability at…
When are an interior designer's design fees, product charges, and real-property improvement work subject to Florida sales tax?
Standalone consultation and design fees were not taxable when no tangible personal property was sold with them. Fees that were part of a furniture or other property sale were taxable even if…
How did South Carolina's 2002 GEAR procedure let the Department of Revenue collect debts for other governmental entities?
A participating government certified that appeal rights were exhausted, then the Department could use tax-collection tools such as setoff, levy, garnishment, or payment plans.
Does a personal shopper who buys and delivers items for a customer charge Kansas sales tax on the service fee?
No. The Department advised that personal-shopping services — buying and delivering groceries, gifts, restaurant food, flowers, toys, and similar items for the customer who hires you — are not an…
Are concert/show tickets given away in barter (for advertising, airtime, or sponsorship) subject to Kansas sales tax?
It depends on whether the ticket is exchanged for value. Kansas taxes barter because 'selling price' (K.S.A. 79-3602(g), K.A.R. 92-19-46) is the total consideration given — including by exchange or…
Did Tennessee sales tax continue on vehicle lease payments after the lessee moved the vehicle to Illinois?
Yes. Tennessee sales tax continued on all remaining lease payments because delivery of the leased vehicle to the lessee in Tennessee was the taxable transaction. Later relocation and use in Illinois…
Could an enterprise-zone business claim Florida's property-tax credit when an affiliated LLC owned the building and paid the assessed ad valorem tax?
No. The affiliated LLC owned the building, was assessed for the ad valorem tax, funded the mortgage escrow, and held the tax receipt. The operating business's rent and additional expense payments…
Can a cigarette retailer advertise a manufacturer buy-down price, and how must sales tax be shown?
Yes, with conditions. Under Revenue Ruling 57-02-1, a cigarette retailer taking part in a manufacturer's buy-down promotion may use promotional signs and displays to advertise either the…
What South Carolina interest rate applied to tax underpayments and overpayments from April through June 2002?
The rate was 6% for April 1 through June 30, 2002, compounded daily except that simple interest applied to underpaid declarations of estimated tax.
Does a 501(c)(3) adult day-care program for severely disabled young adults qualify for a Kansas sales-tax exemption?
No. The Department advised that a 501(c)(3) adult day-care program for young adults with severe or multiple physical and mental disabilities does not qualify for a Kansas sales-tax exemption.…
Did a mobile-fueling wholesaler's gasoline and diesel deliveries to a federal agency meet Florida's 500-gallon fuel-tax exemption threshold?
Yes. Section 206.62 required each sale and delivery to the federal agency to be a bulk lot of at least 500 gallons for exclusive federal use. The wholesaler's invoices showed that the agency was…
Did Tennessee tax software-license fees, downloads, support, contract changes, and late fees charged by an out-of-state developer?
Generally yes. The ruling treated licensed software delivered by disk, CD, or download as a taxable lease or rental when used in Tennessee, and treated contract-change and late fees as taxable gross…
Did a family real-estate LLC and its tiered entities qualify for Tennessee's family-owned noncorporate franchise and excise tax exemption?
The parent LLC qualified while the stated requirements remained satisfied: at least 95% of ownership units were family-owned and more than 90% of receipts were rental income. But its subsidiary LLCs…
Were a nonprofit association's membership fees subject to Florida admissions tax when membership did not provide recreational or fitness facilities?
No. Association membership did not entitle members to use recreational or physical-fitness facilities, so the dues were not taxable admissions. Affiliated clubs could collect the association's fees…
What 2001 South Carolina tax relief did temporary RPB 02-1 provide to military personnel serving in the Afghanistan combat zone?
It extended affected service members' and spouses' 2001 individual income-tax filing and payment deadline until 180 days after combat-zone service ended.
When could a retailer deduct an unpaid sale as a bad debt under the historical South Carolina sales-and-use-tax rules?
A retailer could deduct the taxable sales price after a qualifying account became worthless and was charged off for income-tax purposes, subject to the historical one-year deadline.
Does a farm tire repair machine qualify for Kansas's farm machinery and equipment sales-tax exemption?
No. The Department advised that a farm tire repair machine is not exempt as farm machinery and equipment, because it is repair equipment — not farm production equipment. Although sod production is…
When was an MRI scanner an immovable hospital component rather than taxable movable equipment for Louisiana sales-tax purposes?
A traditional MRI wired into a specially designed imaging room was an immovable component, so dealers paid tax on acquisition or repair parts rather than charging tax on the scanner transaction.…
Were collagen-based implants administered to patients by physicians exempt from Florida sales tax as medical products?
Yes. The collagen implants were medical products administered to patients under the guidance and supervision of prescribing physicians. The Department concluded that products dispensed by a…
Before Louisiana's 2002 QSub legislation took effect, how did an S-corporation parent and qualified Subchapter S subsidiary report Louisiana income and franchise tax?
Both remained separate Louisiana taxpayers and filed separate income and franchise returns, but used a consolidated statement eliminating intercompany items. Revenue normally attributed all…
Must a federally tax-exempt homeowners association still file a Texas franchise tax report, and how can it get exempt?
Being exempt from federal tax does not by itself relieve a homeowners association from the Texas franchise tax. The franchise tax is imposed on all corporations, including nonprofit corporations, so…
When must an entertainment promoter accrue Kansas sales tax on admission tickets provided to performers, vendors, media, the public, or employees?
Tickets transferred under a contract in exchange for something of value — such as performance, advertising, venue, sponsorship, signage, or radio services — were taxable admission sales, and the…
Can a New Mexico service provider deduct receipts from selling services for resale when she never actually had the buyer's nontaxable transaction certificate (NTTC) in her possession?
No. Sharon Steinberg sold patient-counseling services to a doctor who resold them to his patients, and claimed the Section 7-9-48 sale-for-resale deduction. But that deduction requires the buyer to…
How did Florida's intangible-tax exemption apply to a securities firm's margin-account receivables for 1999, 2000, and 2001?
Margin-account receivables were one-third exempt for 1999, two-thirds exempt for 2000, and fully exempt for tax years beginning on or after January 1, 2001. The firm could seek a refund for excess…
Were mortgage-secured promissory notes owned by section 501(c)(3) nonprofit lenders exempt from Florida's nonrecurring intangible tax?
Yes, while the lending corporations retained their section 501(c)(3) charitable status. Their notes and mortgages qualified for Florida's nonprofit charitable-institution exemption. If a note and…
Can New Mexico recover fuel-tax refunds it mistakenly paid on erroneous IFTA returns, and does the Department's uneven enforcement or lack of training estop it from assessing one carrier?
Yes, the state can recover them. Cimarron Oilfield Service filed IFTA fuel-tax returns that wrongly deducted off-highway miles and omitted tax on fuel moved from IFTA vehicles into off-highway…
What did South Carolina's March 2002 citator say about the status of earlier advisory opinions?
It identified opinions believed affected by later advisory opinions through March 31, 2002, but did not account for changes from statutes, regulations, or court decisions.
Did a state university's proposed direct-purchase program qualify construction materials for Florida's government sales-tax exemption?
Yes, if the controlling documents made the university the buyer. It had to issue purchase orders with its exemption number, receive invoices, pay vendors directly, take title and liability at…
Is a federal land bank association's personal property — including a registered vehicle — exempt from Utah property tax and the uniform fee in lieu of it?
Yes. Federal law (12 U.S.C. § 2098) exempts a federal land bank association's personal property from state and local taxation entirely (only its real estate can be taxed), and because Utah's uniform…
Did the intermodal-container use-tax exclusion cover generator sets first attached to cargo containers and used in California?
No. The generators could not become container components until attachment, and because attachment and first functional use occurred in California, their use did not qualify.
Could a country club satisfy Florida's customer-refund requirement through a board resolution creating automatic member credits?
Yes. The board resolution legally obligated the club to give each current member an automatic house-account credit for that member's share of any state refund, with an option to contribute it to the…
Could a parent company stop filing Florida consolidated corporate income-tax returns after substantial changes in its affiliated group and operations?
Yes, conditionally. Although the group did not show a harmful law change or substantial adverse tax effect, the Department found major changes in its market, size, organizational structure, and…
Are Internet service and web-hosting services subject to Kansas sales tax?
No. The Department advised that Internet service and web-hosting services are not subject to Kansas sales tax, because they are not among the services specifically enumerated as taxable in the sales…
Does a contractor qualify for the Enterprise Zone sales tax exemption on a new facility as a 'nonmanufacturing business'?
Yes -- the exemption was granted and a refund ordered. A contractor sought the Enterprise Zone business-and-job sales tax exemption (K.S.A. 79-3606(cc)) for a new Wichita facility. As a 'retail…
Was a foreign-beer importer liable for South Carolina beer excise tax when it sold through wholesalers?
No. On the stated facts, the importer was a producer rather than the wholesaler liable for beer excise tax. The South Carolina wholesaler owed the tax, while the importer still had to satisfy the…
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.